Internship report PepsiCo Distribution

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INTRODUCTION
ABOUT PEPSICO
PepsiCo products are enjoyed by consumers one billion times a day in more than 200
countries and territories around the world. PepsiCo generated more than US $63 billion
dollars in net revenue in 2015, driven by a complementary food and beverage portfolio that
includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo's product portfolio
includes a wide range of enjoyable foods and beverages, including 22 brands that generate
more than US $1 billion dollars each in estimated annual retail sales. At the heart of PepsiCo
is Performance with Purpose – our goal to deliver top-tier financial performance while
creating sustainable growth and shareholder value. In practice, Performance with Purpose
means providing a wide range of foods and beverages from treats to healthy eats; finding
innovative ways to minimize our impact on the environment and reduce our operating costs;
providing a safe and inclusive workplace for our employees globally; and respecting,
supporting and investing in the local communities where we operate.
PepsiCo India Region:Leadership through Performance with Purpose
PepsiCo entered India in 1989 and in a short period, has grown into one of the largest MNC
food and beverage businesses in the country. PepsiCo’s growth in India has been guided by
“Performance with Purpose”, its goal to deliver top-tier financial performance while creating
sustainable growth and shareholder value.
Large investor in India with strong brands
PepsiCo has been consistently investing in India, in the areas of product innovation, increasing
manufacturing capacity, ramping up market infrastructure, strengthening supply chain and
expanding company’s agriculture programme. The company has built an expansive beverage
and snack food business supported by 62 plants across the country. In two decades, the
company has been able to organically grow eight brands each of which generate Rs. 1000
crores or more in estimated annual retail sales and are household names, trusted across the
country.

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A growing portfolio of enjoyable and wholesome snacks andbeverages
PepsiCo India’s diverse portfolio reflects its commitment to nourish consumers with a
diverse range of fun and healthier products and includes iconic brands like Pepsi, Lay’s,
Kurkure, Tropicana, Gatorade and Quaker. In addition to the recently launched Lay’s Maxx,
7UP Revive and Tropicana Slice Alphonso, the portfolio includes several healthier treats like
Quaker Oats, Tropicana juices, rehydrator Gatorade, Tata Water Plus and Quaker flavoured
oats.
Modelpartnership with over24,000 farmers
PepsiCo India has pioneered and established a model of partnership with farmers and now
works with over 24,000 happy farmers across nine states. More than 45 percent of these are
small and marginal farmers with a land holding of one acre or less. PepsiCo provides 360-
degree support to the farmer through assured buy back of their produce at pre-agreed prices,
quality seeds, extension services, disease control packages, bank loans, weather insurance,
and the latest technological practices. The association with PepsiCo India has not only raised
the incomes of small and marginal farmers, but also their social standing.
Global leader in water conservation
In 2009, PepsiCo India achieved a significant milestone, by becoming the first business to
achieve ‘Positive Water Balance’ in the beverage world, and has been Water Positive since
then. In 2015, PepsiCo India saved 12.75 billion litres more that it consumed in its
manufacturing operations. The company made this possible through innovative irrigation
practices like direct seeding, community water recharging initiatives, and by reducing the
consumption of water in its manufacturing facilities. PepsiCo is lauded for its efforts for water
conservation and has received numerous awards such as CII National award for water
management.
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Care for the environment
PepsiCo India is focused on reducing its carbon footprint. In 2015, PepsiCo’s India’s Food and
Beverage plants had a 78% and 41% share from renewable energy sources, respectively such
as bio mass and rice husk boilers and wind turbines. Initiatives such as reduction in use of
chemicals, eco-friendly packaging initiatives and efficient waste management help reduce load
on the environment. PepsiCo in partnership with the NGO Exnora and local municipalities has
also been working on a unique waste collection and treatment model programme called ‘Waste-
to-Wealth’. The award winning programme has positively impacted more than 5, 00,000
people.
Following the successful implementation of the Waste to Wealth model programme, PepsiCo
India has handed over four municipalities in Tamil Nadu (Chennai, Nagapattinam, Tenkasi,
Cuddalore) and one municipal corporation in Haryana (Panipat), to the respective authority
for sustained delivery.
Exemplary employment practices
PepsiCo India provides direct and indirect employment to almost 2, 00,000 people. The
company believes in providing employment and growth opportunities to local talent. Its
‘College of Leadership’, ensures early identification of talent, and employees’ focused
development through critical experiences. PepsiCo firmly believes that encouraging diversity
means encouraging policies and systems that respect people’s special needs. Not only does
PepsiCo have a vibrant and diverse workforce, it takes the utmost care to make dynamic
business leaders of its employees and foster their career and personal growth through
differentiated experiences and a robust leadership development model.

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Our Mission
As one of the largest food and beverage companies in the world, our mission is to provide
consumers around the world with delicious, affordable, convenient and complementary foods
and beverages from wholesome breakfasts to healthy and fun daytime snacks and beverages
to evening treats. We are committed to investing in our people, our company and the
communities where we operate to help position the company for long-term, sustainable
growth.
Our Vision
At PepsiCo, we're committed to achieving business and financial success while leaving a
positive imprint on society – delivering what we call Performance with Purpose.
In practice, Performance with Purpose means providing a wide range of foods and beverages
from treats to healthy eats; finding innovative ways to minimize our impact on the
environment and reduce our operating costs; providing a safe and inclusive workplace for our
employees globally; and respecting, supporting and investing in the local communities where
we operate.
Wherever we do business, Performance with Purpose is our guide. We believe that delivering
for our consumers and customers, protecting the environment, sourcing with integrity and
investing in our employees are not simply good things to do, but that these actions fuel our
returns and position PepsiCo for long-term, sustainable growth.

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Guiding Principles
Care for our customers, our consumers and the world we live in.
We are driven by the intense, competitive spirit of the marketplace, but we direct this spirit
toward solutions that benefit both our company and our constituents. We see our success as
inextricably linked to that of our customers, consumers and communities.
Sell only products we can be proud of.
The true test of our standards is our own consumption and endorsement of the products we
sell. Without reservation. Our confidence helps ensure the quality of our products, from the
moment we purchase ingredients to the moment it reaches the consumer's hand
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Speak with truth and candour
We tell the whole story, not just what's convenient to our individual goals. In addition to
being clear, honest and accurate, we are responsible for ensuring our communications are
understood.
Win with diversity and inclusion.
We embrace people with diverse backgrounds, traits and ways of thinking. Our diversity
brings new perspectives into the workplace and encourages innovation, as well as the ability
to identify new market opportunities.
Balance short-term and long-term.
In every decision, we weigh both short-term and long-term risks and benefits. Maintaining this
balance helps sustain our growth and ensures our ideas and solutions are relevant both now and
in the future.

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Respect others and succeed together
Our mutual success depends on mutual respect, inside and outside the company. It requires
people who are capable of working together as part of a team or informal collaboration
.While our company is built on individual excellence, we also recognize the importance and
value of teamwork in turning our goals into accomplishments.

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Our Global Code of Conduct: Doing Business the Right Way
At PepsiCo, we believe acting ethically and responsibly is not only the right thing to do, but
also the right thing to do for our business.
Our PepsiCo Global Code of Conduct (our "Code") has been revised effective October 1,
2012 to address changing laws that impact our business. It is designed to provide our
employees with specific guidance.
All PepsiCo employees are expected to embrace the principles of our Code and:
• show respect in the workplace;
• act with integrity in the marketplace;
• ensure ethics in our business activities; and
• Perform work responsibly for our shareholders.
Our Code remains our roadmap and compass for doing business the right way.
Speak up If you suspecta possible violation of our Code, we encourage you
to Speak Up and report it
At PepsiCo, our Speak Up hotline provides associates, as well as consumers, business
partners and others with a means to report potential violations of the PepsiCo Global Code of
Conduct, our policies or applicable law.
This hotline is an important part of our culture of ethics and compliance at PepsiCo. All
employees have an obligation to report suspected Code of Conduct violations, and to ask
questions, raise issues and seek guidance when a course of action is unclear. The Speak Up
hotline is available worldwide on a 24/7 basis. Reports may be made by phone at 1-866-729-
4888 in the United States or to dedicated phone lines in other countries throughout the world.
The Speak Up line is an important part of our culture of ethics and compliance at PepsiCo.
All employees have an obligation to report suspected Code of Conduct violations, and to ask
questions, raise issues and seek guidance when a course of action is unclear. The Speak Up
line is widely used and a key component of conducting business ethically and with integrity
at PepsiCo.
Reports may also be made electronically by using the Speak up Web line .The same
protections of confidentiality and, where permitted, anonymity are provided through our

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telephone lines and Webline.
PepsiCo is committed to protecting the rights of those individuals who report issues to
PepsiCo. We prohibit retaliation against any individual who, in good faith, reports a
suspected violation of the law or the Code of Conduct. Any instance of retaliation against an
employee for reporting a concern in good faith is itself a serious violation of our Code of
Conduct, and should be reported. Any employee found to have engaged in such retaliation
will be subject to appropriate discipline.
The Speak Up hotline is widely used and a key component of conducting business ethically
and with integrity at PepsiCo. The total number of Speak Up reports and contacts are
published on an annual basis. The most recently available information is provided below.
Performance with Purpose is our goalto deliver sustainedfinancial
performance by
• Providing a wide range of foods and beverages from treats to healthy eats.
• Finding innovative ways to minimize our impact on the environment and reduce our
operating costs.
• Providing a safe and inclusive workplace for our employees globally.
• Respecting, supporting and investing in the local communities where we operate.
Our Performance with Purpose Goals
Since their introduction in 2007, our Performance with Purpose goals have guided our
strategy and operations every step along our journey. They are integral to how we strive to
“future-proof” PepsiCo for long-term success by aligning what is good for our business with
what is good for society and the planet. Our goals will continue to evolve and adjust to the
changing external environment in which we operate.
Performance with Purpose is built on three pillars:
• Human Sustainability
• Environmental Sustainability

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Human Sustainability
It's a promise to encourage people to live healthier by offering a portfolio of both enjoyable
and wholesome foods and beverages.
Global goals include:
• Increasing the whole grains, fruits and vegetables, nuts, seeds and low-fat dairy in its
product portfolio.
• Reducing the average sodium per serving in key global food brands in key markets by 25
percent by 2015.
• Reducing the average saturated fat per serving in key global food brands in key markets by
15 percent by 2020.
• Reducing the average added sugar per serving in key global beverage brands in key
markets by 25 percent by 2020.
PepsiCo India has been at the forefront of leading the human sustainability agenda and some
of the initiatives include:
• The decision to eliminate the direct sale of full-sugar soft drinks to primary and secondary
schools around the globe.
• Frito Lay's products are MSG and trans-fat free and contain voluntary on pack nutritional
labelling.
• Breakfast cereal, Quaker Oats, is rich in soluble fibre, beta-glucan which helps in lowering
cholesterol.
• The new Lay's Classic Salted has been launched with 25 percent less sodium.
• Lehar Gluco+ is a lemon-flavored drink with glucose, electrolytes and iron that provides
instant energy and refreshment to consumers.
• Tropicana 100% juice range provides fruit nutrients
• PepsiCo offers products with zero or reduced calories such as Diet Pepsi, and Aquafina
packaged water and bulk water.
• Gatorade, the world's leading sports drink, has valuable re-hydration benefits and is
scientifically formulated to replenish electrolytes, and refuel carbohydrate energy.
• Most of PepsiCo's products are available in a range of packages so consumers can choose a
size suited to particular consumption occasion, and offering choices for portion
control.
• Lehar Iron Chusti is an extruded snack fortified with best form of iron (NaEDTA) to

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address pervasive problem of Iron Deficiency Anaemia for base of pyramid
population at an affordable price. Nutritionally a single pack delivers 25 percent of
iron RDA and 50 percent of Vitamin B1, B12 and folate RDA for adolescent girls.
The product has been specifically designed for adolescent girls recognizing the impact
of micronutrient deficiency in context of intergenerational cycle of malnutrition. The
product is made with wholesome local grains like ragi, soya and rice.
• Human Rights Workplace Policy
PepsiCo respects the dignity of our associates in the workplace, and we are accountable to
ensure our associates’ rights to personal security, a safe, clean and healthful workplace, and
freedom from harassment or abuse of any kind.
We deal fairly and honestly with our associates regarding wages, benefits and other
conditions of employment, and recognize our associates’ right to freedom of association. We
do not use compulsory or child labour.
We do not tolerate discrimination and work to ensure equal opportunity for all associates.
We comply with all applicable laws, regulations and other employment standards, wherever
we operate or work.
We encourage our partners, suppliers, contractors and vendors to support these policies, and
we place substantial value on working with others who share our commitment to human
rights.
Environmental Sustainability
It is a promise to be a good citizen of the world, protecting the Earth's natural resources
through innovation and more efficient use of land, energy, water and packaging in our
operations.
Our business focuses on sustainable growth and relies on the Earth's natural resources every
day. As our business grows in developed, developing and emerging countries, we remain
committed to minimizing the impact it has on the environment. We strive to use only
methods and tools that are scientifically proven, socially responsible and economically sound.
In India, we operate three ongoing initiatives to better the environment. These are closely

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linked to our business and are areas in which we believe we can make a very positive impact.
• Our initiative to replenish water has been a major success. 2009 was a milestone for us –
we were able to achieve a positive water balance, giving back more water than we
consumed through our various initiatives of recharging, replenishing and reusing
water.
• Our efforts to convert waste to wealth have been very fruitful. We have educated
community members on how to segregate and recycle their waste. In a project
employing over 500 people, we transform bio-degradable waste into organic manure
through vermi-culture.
• We have also partnered with farmers across the country to help them boost their
productivity and income. We have pioneered contract farming, developed robust,
high-quality potato seeds, arranged for farmer loans, and aided citrus growers in a
variety of ways.
Our Goals and Commitments
In 2009, we announced 15 global goals and commitments to guide our work to protect the
Earth's natural resources through innovation and more efficient use of land, energy, water and
packaging in our operations. We are focusing our work where we can make the most positive
impact (water, packaging, climate change and agriculture) and on key policies and
partnerships to help provide solutions to address the world's environmental challenges.
Water: Respect the human right to water through world-class efficiency in our
operations, preserving water resources and enabling access to safe water
• Improve our water use efficiency by 20 percent per unit of production by 2015.
• Strive for positive water balance in our operations in water-distressed areas.
• Provide access to safe water to 3 million people in developing countries by end of 2015.
Land and Packaging: Rethink the way we grow, source, create, package and deliver our
products to minimize our impact on land
• Continue to lead the industry by incorporating at least 10 percent recycled polyethylene

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terephthalate (PET) in our primary soft drink containers in the US, and broadly
expand the use of PET across key international markets.
• Reduce packaging weight by 350 million pounds, avoiding the creation of 1 billion pounds
of landfill waste by 2012.
• Work to eliminate all solid waste to landfills from our production facilities.
Climate Change: Reduce the carbon footprint of our operations
• Improve our electricity use efficiency by 20 percent per unit of production by 2015.
• Reduce our fuel use intensity by 25 percent per unit of production by 2015.
• Commit to an absolute reduction in GHG emissions across global operations.
Community: Respect and responsibly use natural resources in our
businesses and in the local communities we serve
• Apply proven sustainable agricultural practices on our farmed land.
• Provide funding, technical support and training to local farmers.
• Promote environmental education and best practices among our associates and business
partners.
Integrate our policies and actions on human health, agriculture and the environment to
make sure they support each other.
TALENT SUSTAINABILITY
To the employees of PepsiCo…
It is a promise to invest in them to help them succeed, to work continually to develop
and retain exceptional people and to create employment opportunities in the communities we
serve.

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As PepsiCo continues its journey of sustainable growth, we must continue to hire, retain and
develop our leadership bench and a highly skilled and diverse workforce. After all, our
employees are our greatest strength.
We have an extraordinary talent base across our organization — in our manufacturing
facilities, our sales and distribution organization, our marketing groups, our staff functions
and our general managers.
As we expand our business, we are heightening our focus on ensuring that we maintain an
inclusive environment and develop the careers of our employees. Our goal is to continue to
have the leadership talent, capabilities and experience necessary to grow our business well
into the future.
Our Goals and Commitments
In 2009, we announced 12 new goals and commitments to achieve Talent
Sustainability. These reinforce our promise to develop our employees. Our commitments
include enabling our associates to thrive in a diverse, inclusive culture; providing a safe and
empowering workplace; providing opportunities that strengthen our associates' skills and
capabilities; and contributing to better living standards in the communities we serve.
Culture: Enable our people to thrive by providing a supportive and
empowering workplace.
• Ensure high levels of employee engagement and satisfaction as compared with other
Fortune 500 companies.
• Foster diversity and inclusion by developing a workforce that reflects local
communities.
• Encourage our employees to lead healthier lives by offering workplace wellness
programmes.
• Ensure a safe workplace by continuing to reduce Lost-Time Injury Rates while
striving to improve other occupational health and safety metrics through best
practices.
• Support ethical and legal compliance through annual training in our Code of Conduct,
which outlines PepsiCo's unwavering commitment to its human rights policy,
including treating every employee with dignity and respect.

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Career: Provide opportunities that strengthen our employees' skills and
capabilities to drive sustainable growth.
• Become universally recognized through top rankings as one of the best companies in
the world for leadership development.
• Create a work environment in which employees know that their skills, talents and
interests can fully develop.
• Conduct training for employees from the frontline to senior management, in order to
ensure that employees have the knowledge and skills required to achieve performance
goals.
Community: Contribute to better living standards in the communities we
serve.
• Create local jobs by expanding operations in developing countries.
• Support education through PepsiCo Foundation grants.
• Support associate volunteerism and community involvement through company-
sponsored programmes and initiatives.
COMMUNITYINITIATIVES
• PepsiCo India HIV/AIDS Initiative
PepsiCo India embarked on the HIV / AIDS journey in 2005, along with our
Technical partner The International Labor Organization (ILO), with the purpose of spreading
awareness amongst all our stakeholders. We have built the whole program in a manner to
build capacity within and externally and have focused on the “Each one Teach one” approach
to ensure sustainability. The program was kicked off by creating a pool of Master Trainers
and Peer Educators who could cascade the program across all our work locations along with
NGOs who were also trained along with PepsiCo employees. We started the program by
cascading HIV / AIDS awareness amongst our employees. This was progressively enhanced
to cover other stakeholders including spouses of employees, business partners, distributors,
contractual workers, and our bottling partners. We further strengthened the impact of our
efforts through community outreach programs where we leveraged our NGO partners across
the country.

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Today we have 58 Master Trainers and 175 Peer Educators across both businesses and our
endeavor is to continue to create more and most Master Trainers and Peer Educators. PepsiCo
India has been awarded TERI Corporate Award for Business Response to HIV/AIDS in
2009.
• PepsiCo India – Akshaya Patra Partnership
PepsiCo India has partnered with Akshaya Patra, an NGO that supports the "Mid-day
meal" program launched by Government of India feeding over 1.4 million underprivileged
students every day of the school year, in 20 locations, across 9 states in India. For children
belonging to the weaker economic sections of society, a full meal, even once a day, is a
strong incentive to stay in school. This program enables hunger free education and it has led
to a significant rise in enrolment and attendance. So this partnership has a simple but
powerful mission - to change the trajectory of countless lives in our community. In the first
stage, PepsiCo India is funding equipment and vehicles to set up a kitchen, near Kapashera,
Delhi which has the capacity to feed 75,000 children through the mid-day meal program.
Through this program PepsiCo India employees can participate in this cause by contributing
as little as Rs 3375 (@ Rs. 675 per child) to keep 5 children in a school in a year. PepsiCo
foundation will match the employee contribution and double the impact.
PEPSICO FOUNDATION
PepsiCo Foundationactivities in India
PepsiCo's philanthropic anchor, PepsiCo Foundation is committed to developing
sustainable partnerships and programmes that provide opportunities for improved health and
inclusion and a better environment.
• The total funding for India has been $11mn (2008–10)
• The programmes have benefited more than 300,000 people in nine States of India
The foundation supports projects in the following focus areas:
Health: Food security; Improved and optimum nutrition; Energy balance

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• Health Alliance
Project: This research project focuses on reducing chronic diseases by promoting healthy diets
and physical activity and controlling tobacco use. The project is being implemented through
integrated interventions to drive policy and environmental changes.
Impact: Lower rates of obesity and chronic diseases (cardiovascular problems and diabetes).
Reach: 12,000 people in Kerala.
India grant: $1.13mn during 2007–10.
 Save the Children
Project: The project catalyzes community-based interventions to deliver integrated health and
nutrition solutions to children under 5, young mothers and pregnant and lactating women. Save
the Children works with community health educators to provide families important information
about health, nutrition, water, sanitation and hygiene.
Reach: 100,000 people in Rajasthan. (The project reaches 50,000 beneficiaries including
children under 5, young mothers and pregnant and lactating women through health and
nutrition interventions. It reaches another 50,000 people through water and sanitation
initiatives.
• Environment: Watersecurity; Sustainable agriculture; Adaptive
approaches to our changing climate
Earth Institute at Columbia University
Project: The project tests methods that deliver 'more crop per drop'. This approach focuses on
water security through water harvesting, recharging, watershed management and innovative
irrigation practices. It is envisaged that the project will empower private and public
communities with practical new methods to use water more efficiently both now and in the
future. The project is developing research, tools, and strategies to improve agricultural income
and water use through policy reform and private sector contributions to the agricultural value
chain in terms of market development, technology transfer and risk management.
Reach: 500 farmers across Punjab and Gujarat.

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• Safe WaterNetwork
Project: This project focuses on providing affordable potable water at the community level by
harvesting rainwater, installing small water village kiosk purification systems and building
cisterns and community tanks.
Reach: 55,000 people across Rajasthan and Andhra Pradesh. India grant: $1.1mn during 2008
Water.org
Project: The project acts as a catalyst to introduce micro finance to the water and sanitation
sector and provides household water connections and toilets.
Reach: 150,000 people in Tamil Nadu, Karnataka, Andhra Pradesh, Orissa and Maharashtra.
Water.org is one of the Foundation's largest partnerships in terms of reach.
India grant: $3.64mm during 2008–10.

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WORK GUIDE PROFILE
NAME: CHIDAMBARESH ESHWAR
EMAIL:chidambaresh.subbiah@pepsico.com
CareerProfile
-Enthusiastic professional with more than 15 years of experience
-Experience of working in the FMCG industries
-He Has good knowledge about the food and beverage market
-He has good terms with all distributors in Chennai
-Has a lot of experience in the Sales section
Key Skills
-Excellent in Market research
-Excellent in understanding of the organisation structure and development
-Excellent in understanding and analysing complex information
-Strong knowledge in FMCG sector
PersonalityTraits
-Excellent verbal and writing skills
-Excellent problem solving skills
-Strong analytical and interpersonal skills
Achivements
-Recognized for best sales head for Tamil Nadu in 2015
-Participated in state chess championship
Academic Qualifications
-MBA from Xavier Delhi with first Class
-B.com from PSG Coimbatore with first class

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CONCEPTOF FINANCE
Finance is a field that deals with the study of investments. It includes the dynamics
of assets and liabilities over time under conditions of different degrees of uncertainty and risk.
Finance can also be defined as the science of money management. Finance aims to price assets
based on their risk level and their expected rate of return. Finance can be broken into three
different sub-categories: public finance, corporate finance and personal finance.
Finance to be more precise is concerned with the management of:
 Owned funds (promoter contribution)
 Raised funds (equity share, preference share, etc.)
 Borrowed funds (loans, debentures, overdrafts, etc.).
At the same time, Finance also encompasses wider perspective of managing the business
generated assets and other valuables more efficiently.
Nature of Finance/Financial Management
Finance management is a long term decision making process which involves lot of planning,
allocation of funds, discipline and much more. Let us understand the nature of financial
management with reference of this discipline.
 Finance management is one of the important disciplines which has been realized word
wide. Now a day’s people are undergoing through various specialization courses of
financial management. Many people have chosen financial management as their
profession.
 The nature of financial management is never a separate entity. Even as an operational
manager or functional manager one has to take responsibility of financial management.
 Finance is a foundation of economic activities. The person who manages finance is
called as financial manager. Important role of financial manager is to control finance
and implement the plans. For any company financial manager plays a crucial role in it.
Many times, lack of skills or wrong decisions can lead to heavy losses to an
organization.

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 Nature of financial management is multi-disciplinary. Financial management depends
upon various other factors like accounting, banking, inflation, economy, etc. for the
better utilization of finances.
AREAS IN FINANCE
Personal Finance
Questions in personal finance revolve around:
 Protection against unforeseen personal events, as well as events in the wider economies
 Transference of family wealth across generations (bequests and inheritance)
 Effects of tax policies (tax subsidies and/or penalties) on management of personal finances
 Effects of credit on individual financial standing
 Development of a savings plan or financing for large purchases (auto, education, home)
 Planning a secure financial future in an environment of economic instability
Personal finance may involve paying for education, financing durable goods such as real
estate and cars, buying insurance, e.g. health and property insurance, investing and saving
for retirement.
Personal finance may also involve paying for a loan, or debt obligations.
Corporate Finance
Corporate finance deals with the sources of funding and the capital structure of corporations,
the actions that managers take to increase the value of the firm to the shareholders, and the
tools and analysis used to allocate financial resources. Although it is in principle different from
managerial finance which studies the financial management of all firms, rather than
corporations alone, the main concepts in the study of corporate finance are applicable to the
financial problems of all kinds of firms. Corporate finance generally involves balancing risk
and profitability, while attempting to maximize an entity's assets, net incoming cash flow and
the value of its stock, and generically entails three primary areas of capital resource allocation.

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Corporate finance also includes within its scope business valuation, stock investing,
or investment management. An investment is an acquisition of an asset in the hope that it will
maintain or increase its value over time that will in hope give back a higher rate of return when
it comes to disbursing dividends. In investment management – in choosing a portfolio – one
has to use financial analysis to determine what, how much and when to invest. To do this, a
company must:
 Identify relevant objectives and constraints: institution or individual goals, time horizon,
risk aversion and tax considerations;
 Identify the appropriate strategy: active versus passive hedging strategy
 Measure the portfolio performance
Public Finance
Public finance describes finance as related to sovereign states and sub-national entities
(states/provinces, counties, municipalities, etc.) and related public entities (e.g. school districts)
or agencies. It usually encompasses a long-term, strategic perspective regarding investment
decisions that affect public entities. These long-term, strategic periods usually encompass five
or more years. Public finance is primarily concerned with:
 Identification of required expenditure of a public sector entity
 Source(s) of that entity's revenue
 The budgeting process
 Debt issuance (municipal bonds) for public works projects
Central banks, such as the Federal Reserve System banks in the United States and Bank of
England in the United Kingdom, are strong players in public finance, acting as lenders of last
resort as well as strong influences on monetary and credit conditions in the economy.

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Objectives of Finance
The main objectives of financial management are:-
 Profit maximization
The main objective of financial management is profit maximization. The finance
manager tries to earn maximum profits for the company in the short-term and the long-
term. He cannot guarantee profits in the long term because of business uncertainties.
However, a company can earn maximum profits even in the long-term, if:-
The Finance manager takes proper financial decisions.
He uses the finance of the company properly.
 Wealth maximization
Wealth maximization (shareholders' value maximization) is also a main objective of
financial management. Wealth maximization means to earn maximum wealth for the
shareholders. So, the finance manager tries to give a maximum dividend to the
shareholders. He also tries to increase the market value of the shares. The market value
of the shares is directly related to the performance of the company. Better the
performance, higher is the market value of shares and vice-versa. So, the finance
manager must try to maximise shareholder's value.
 Proper estimation of total financial requirements
Proper estimation of total financial requirements is a very important objective of
financial management. The finance manager must estimate the total financial
requirements of the company. He must find out how much finance is required to start
and run the company. He must find out the fixed capital and working capital
requirements of the company. His estimation must be correct. If not, there will be
shortage or surplus of finance. Estimating the financial requirements is a very difficult
job. The finance manager must consider many factors, such as the type of technology
used by company, number of employees employed, scale of operations, legal
requirements, etc.
 Proper mobilisation
Mobilisation (collection) of finance is an important objective of financial management.
After estimating the financial requirements, the finance manager must decide about the
sources of finance. He can collect finance from many sources such as shares,

23
debentures, bank loans, etc. There must be a proper balance between owned finance
and borrowed finance. The company must borrow money at a low rate of interest.
 Proper utilisation of finance
Proper utilisation of finance is an important objective of financial management. The
finance manager must make optimum utilisation of finance. He must use the finance
profitable. He must not waste the finance of the company. He must not invest the
company's finance in unprofitable projects. He must not block the company's finance
in inventories. He must have a short credit period.
 Maintaining proper cash flow
Maintaining proper cash flow is a short-term objective of financial management. The
company must have a proper cash flow to pay the day-to-day expenses such as purchase
of raw materials, payment of wages and salaries, rent, electricity bills, etc. If the
company has a good cash flow, it can take advantage of many opportunities such as
getting cash discounts on purchases, large-scale purchasing, giving credit to customers,
etc. A healthy cash flow improves the chances of survival and success of the company.
 Survival of company
Survival is the most important objective of financial management. The company must
survive in this competitive business world. The finance manager must be very careful
while making financial decisions. One wrong decision can make the company sick, and
it will close down.
 Creating reserves
One of the objectives of financial management is to create reserves. The company must
not distribute the full profit as a dividend to the shareholders. It must keep a part of it
profit as reserves. Reserves can be used for future growth and expansion. It can also be
used to face contingencies in the future.
 Proper coordination
Financial management must try to have proper coordination between the finance
department and other departments of the company.

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 Create goodwill
Financial management must try to create goodwill for the company. It must improve
the image and reputation of the company. Goodwill helps the company to survive in
the short-term and succeed in the long-term. It also helps the company during bad times.
 Increase efficiency
Financial management also tries to increase the efficiency of all the departments of the
company. Proper distribution of finance to all the departments will increase the
efficiency of the entire company.
 Financial discipline :
Financial management also tries to create a financial discipline. Financial discipline
means:- 1.To invest finance only in productive areas. This will bring high returns
(profits) to the company. 2. To avoid wastage and misuse of finance.
 Reduce cost of capital
Financial management tries to reduce the cost of capital. That is, it tries to borrow
money at a low rate of interest. The finance manager must plan the capital structure in
such a way that the cost of capital it minimised.
 Reduce operating risks
Financial management also tries to reduce the operating risks. There are many risks and
uncertainties in a business. The finance manager must take steps to reduce these risks.
He must avoid high-risk projects. He must also take proper insurance.
 Prepare capital structure
Financial management also prepares the capital structure. It decides the ratio between
owned finance and borrowed finance. It brings a proper balance between the different
sources of capital. This balance is necessary for liquidity, economy, flexibility and
stability.

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Scope of Finance
 Estimating Financial Requirements
The first task of financial manager is to estimate short term and long-term financial
requirements of his business. For this purpose, he will prepare a financial plan for present as
well as for future. The amount required for purchasing fixed assets as well as for working
capital will have to be ascertained.
 Deciding Capital Structure
The capital structure refers to the kind and proportion of different securities for raising funds.
After deciding about the quantum of funds required, it should be decided which type of
securities should be raised. It may be wise to finance fixed assets through long-term debts and
current assets through short-term debts.
 Selecting a Source of Finance
After preparing capital structure, an appropriate source of finance is selected. Various sources
from which finance may be raised include: share capital, debentures, financial institutions,
commercial banks, public deposits etc. If finance is needed for short period then banks, public
deposits and financial institutions may be appropriate. On the other hand, if long-term finance
is required then, share capital, and debentures may be useful.
 Selecting a pattern of Investment
When funds have been procured then a decision about investment pattern is to be taken. The
selection of an investment pattern is related to the use of funds. A decision will have to be taken
as to which asset is to be purchased. The funds will have to be spent first on fixed assets and
then an appropriate portion will be retained for working capital. The decision-making
techniques such as capital budgeting, opportunity cost analysis etc. may be applied in making
decisions about capital expenditures.
 Proper cash Management

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Cash management is an important task of finance manager. He has to assess various cash needs
at different times and then make arrangements for arranging cash. The cash management
should be such that neither there is a shortage of it and nor it is idle. Any shortage of cash will
damage the credit worthiness of the enterprise. The idle cash with the business will mean that
it is not properly used. Cash flow statements are used to find out various sources and application
of cash.
 Implementing Financial Controls
An efficient system of financial management necessitates the use of various control devises.
Financial control devises generally used are budgetary control, break even analysis; cost
control, ratio analysis etc. The use of various techniques by the finance manager will help him
in evaluating the performance in various areas and take corrective measures whenever needed.
 Proper use of Surplus
The utilization of profit or surplus is also an important factor in financial management. A
judicious use of surpluses is essential for expansion and diversification plan and also in
protecting the interest of shareholders. The finance manager should consider the following
factors before declaring the dividend;
a. Trend of earnings of the enterprise
b. Expected earnings in future.
c. Market value of shares.
d. Shareholders interest.
e. Needs of fund for expansion etc.
Importance of Finance
Financial management is important mainly because it helps to make decisions towards the
maximization of value of the firm. The importance of financial management to a firm are as
follows:
 It Helps Setting A Clear Goal
Clarity of the goal is important for any firm. Financial management defines the goal of
the firm in clear terms (maximization of the shareholders wealth). Setting goal helps to

27
judge whether the decisions taken are in the best interest of the shareholders or not.
Financial management also direct the efforts of all functional areas of business towards
achieving the goal and facilitates among the functional areas of the firm.
 It Helps In Efficient Utilization Of Resources
Firms use fixed as well as current assets which involve huge investment. Acquiring
and holding assets that do not earn minimum return do not add value to the
shareholders. Moreover, wrong decision regarding the purchase and disposal of fixed
assets can cause threat to the survival of the firm. The application of financial
management techniques (such as capital budgeting techniques) helps to answer the
questions like which asset to buy, when to buy and whether to replace the existing
asset with new one or not.
The firm also requires current assets for its operation. They absorb significant amount
of a firm's resources. Excess holdings of these assets mean inefficient use and
inadequate holding exposes the firm into higher risk. Therefore, maintaining proper
balance of these assets and financing them from proper sources is a challenge to a
firm. Financial management helps to decide what level of current assets is to be
maintained in a firm and how to finance them so that these assets are utilized
efficiently.
 It Helps Deciding The Sources Of Financing
Firms collect long-term funds mainly for purchasing permanent assets. The sources of
long term finance may be equity shares, preference shares, bond, term loan etc. The
firm needs to decide the appropriate mix of these sources and amount of long-term
funds; otherwise the firm will have to bear higher cost and expose to higher risk.
Financial management (capital structure theories) guides in selecting these sources of
financing.
 It Helps In Making Dividend Decisions

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Dividend is the return to the shareholders. The firm is not legally obliged to pay
dividend to the shareholders. However, how much to pay out of the earning is a vital
issue. Financial management (dividend policies and theories) helps a firm to decide
how much to pay as dividend and how much to retain in the firm. It also suggests
answering questions such as when and in what form (cash dividend or stock dividend)
should the dividend be paid?
The importance of financial management is not limited to the managers who make
decisions in the firm. Proper financial management will help firms to supply better
product to its customers at lower prices, pay higher salary to its employees and still
provide greater return to investors.
Role of a Financial Manager
Financial managers perform data analysis and advise senior managers on profit-maximizing
ideas. Financial managers are responsible for the financial health of an organization. They
produce financial reports, direct investment activities, and develop strategies and plans for the
long-term financial goals of their organization. Financial managers typically:
 Prepare financial statements, business activity reports, and forecasts
 Monitor financial details to ensure that legal requirements are met
 Supervise employees who do financial reporting and budgeting
 Review company financial reports and seek ways to reduce costs
 Analyse market trends to find opportunities for expansion or for acquiring other companies
 Help management make financial decisions
The role of the financial manager, particularly in business, is changing in response to
technological advances that have significantly reduced the amount of time it takes to produce
financial reports. Financial managers' main responsibility used to be monitoring a
company's finances, but they now do more data analysis and advice senior managers on ideas
to maximize profits. They often work on teams, acting as business advisors to top executives.

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Financial Statements
This is an example of a financial statement that financial managers are
responsible for preparing and interpreting.
Financial managers also do tasks that are specific to their organization or industry. For
example, government financial managers must be experts on government appropriations and
budgeting processes, and healthcare financial managers must know about issues in healthcare
finance. Moreover, financial managers must be aware of special tax laws and regulations that
affect their industry.
Capital Investment Decisions
Capital investment decisions are long-term corporate finance decisions relating to
fixed assets and capital structure. Decisions are based on several inter-related criteria.
Corporate management seeks to maximize the value of the firm by investing in projects which
yield a positive net present value when valued using an appropriate discount rate in
consideration of risk. These projects must also be financed appropriately. If no such
opportunities exist, maximizing shareholder value dictates that management must return excess

30
cash to shareholders (i.e., distribution via dividends). Capital investment decisions thus
comprise an investment decision, a financing decision, and a dividend decision.
Management must allocate limited resources between competing opportunities (projects) in a
process known as capital budgeting. Making this investment decision requires estimating the
value of each opportunity or project, which is a function of the size, timing and predictability
of future cash flows.
Achieving the goals of corporate finance requires that any corporate investment be financed
appropriately. The sources of financing are, generically, capital self-generated by the firm and
capital from external funders, obtained by issuing new debt or equity.
Professional Qualifications
There are several related professional qualifications that can lead to the field:
Generalist Finance Qualifications
 Master of Science in Finance (MSF)
 Master of Finance (M. Fin)
 Master of Financial Economics, Master of Applied Finance, Master of Liberal
Arts in Finance (ALM. Fin)
 Chartered Financial Analyst (CFA)
 Certified Treasury Professional (CTP)
 Certified International Investment Analyst (CIIA)
 Financial Risk Manager (FRM)
 Professional Risk Manager (PRM)

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 Association of Corporate Treasurers (ACT)
 Certified Market Analyst (CMA/FAD)
 Corporate Finance Qualification (CF)
 Chartered Alternative Investment Analyst(CAIA)
 Chartered Investment Manager (CIM)
Quantitative Finance Qualifications
 Master of Financial Engineering (MSFE)
 Master of Quantitative Finance (MQF)
 Master of Computational Finance (MCF)
 Master of Financial Mathematics (MFM)
 Certificate in Quantitative Finance (CQF)
Accountancy Qualifications:
 Chartered Certified Accountant (ACCA, UK certification)
 Chartered Accountant (ACA - England & Wales certification / CA - certification
in Scotland and Commonwealth countries)
 Certified Public Accountant (CPA, US certification)

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 ACMA/FCMA (Associate/Fellow Chartered Management Accountant) from
Chartered Institute of Management Accountant (CIMA), UK
 Chartered Cost Accountant CCA Designation from AAFM
Business Qualifications:
 Master of Business Administration (MBA)
 Master of Management (MM)
 Master of Commerce (M. Com)
 Master of Science in Management(MSM)
 Doctor of Business Administration (DBA)
TYPES OF COMPANIES:
(A) On the basis of incorporation:
On the basis of incorporation, companies can be classified as:
(i) Chartered companies
(ii) Statutory companies
(iii) Registered companies
(i) Chartered companies:
The crown in exercise of the royal prerogative has power to create a corporation by the grant
of a charter to persons assenting to be incorporated. Such companies or corporations are known
as chartered companies. Examples of this type of companies are Bank of England (1694), East
India Company (1600). The powers and the nature of business of a chartered company are

33
defined by the charter which incorporates it. After the country attained independence, these
types of companies do not exist in India.
(ii) Statutory companies:
A company may be incorporated by means of a special Act of the Parliament or any state
legislature. Such companies are called statutory companies, Instances of statutory companies
in India are Reserve Bank of India, the Life Insurance Corporation of India, the Food
Corporation of India etc. The provisions of the Companies Act 1956 apply to statutory
companies except where the said provisions are inconsistent with the provisions of the Act
creating them. Statutory companies are mostly invested with compulsory powers.
(iii) Registered companies:
Companies registered under the Companies Act 1956, or earlier Companies Acts are called
registered companies. Such companies come into existence when they are registered under the
Companies Act and a certificate of incorporation is granted to them by the Registrar.
(B) On the basis of liability:
On the basis of liability the company can be classified into:
(i) Companies limited by shares
(ii) Companies limited by guarantee
(iii) Unlimited companies.
(i) Companies limited by shares:
When the liability of the members of a company is limited to the amount if any unpaid on the
shares, such a company is known as a company limited by shares. In a company limited by
shares the liability of the members is limited to the amount if any unpaid on the shares
respectively held by them. The liability can be enforced during existence of the company as
well as during the winding up. Where the shares are fully paid up, no further liability rests on
them.
(ii) Companies limited by guarantee:
It is a registered company in which the liability of members is limited to such amounts as they
may respectively undertake by the memorandum to contribute to the assets of the company in

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the event of its being wound up. In the case of such companies the liability of its members is
limited to the amount of guarantee undertaken by them. Clubs, trade associations, research
associations and societies for promoting various objects are various examples of guarantee
companies.
(iii) Unlimited companies:
A company not having a limit on the liability of its members is termed as unlimited company.
In case of such a company every member is liable for the debts of the company as in an ordinary
partnership in proportion to his interest in the company. Such companies are not popular in
India.
(C) On the basis of number of members:
(i) Private company:
A private company means a company which by its articles of association:
(i) Restricts the right to transfer its shares
(ii) Limits the number of its members to fifty (excluding members who are or were in the
employment of the company) and
(iii) Prohibits any invitation to the public to subscribe for any shares or debentures of the
company.
(iv) Where two or more persons hold one or more shares in a company jointly, they are treated
as a single member. There should be at least two persons to form a private company and the
maximum number of members in a private company cannot exceed 50. A private limited
company is required to add the words “Private Ltd” at the end of its name.
(ii) Public company:
A public company means a company which is not a private company. There must be at least
seven persons to form a public company. It is of the essence of a public company that its articles
do not contain provisions restricting the number of its members or excluding generally the
transfer of its shares to the public or prohibiting any invitation to the public to subscribe for its
shares or debentures. Only the shares of a public company are capable of being dealt in on a
stock exchange.

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(D) According to Domicile:
(i) Foreign company:
It means a company incorporated outside India and having a place of business in India.
According to Section 591 a foreign company is one incorporated outside India:
(a) Which established a place of business within India after the commencement of this Act or
(b) Which had a place of business within India before the commencement of this Act and
continues to have the same at the commencement of this Act.
(ii) Indian Companies:
A company formed and registered in India is known as an Indian Company.
(E) Miscellaneous Category:
(i) Government Company:
It means any company in which not less than 51 percent of the paid up share capital is held by
the Central Government, and/or by any State Government or Governments or partly by the
Central Government and partly by one or more State Governments. The subsidiary of a
Government company is also a Government company.
(ii) Holding and subsidiary companies:
A company is known as the holding company of another company if it has control over another
company. A company is known as subsidiary of another company when control is exercised
by the latter over the former called a subsidiary company. A company is to be deemed to be
subsidiary company of another
(a) If the other:
(a) Controls the composition of its Board of directors or
(b) Exercises or controls more than half of its total voting power where it is an existing
company in respect where of the holders of preference shares issued before the commenceme nt
of the Act have the same voting rights as the holders of equity shares or
(c) In the case of any other company holds more than half in nominal value of its equity share
capital or

36
(b) If it is a subsidiary of a third company which is subsidiary of the controlling company.
(iii) One man Company:
This is a company in which one man holds practically the whole of the share capital of the
company and in order to meet the statutory requirement of minimum number of members, some
dummy members hold one or two shares each. The dummy members are usually nominees of
principal shareholder. The principal shareholder is in a position to enjoy the profits of the
business with limited liability. Such type of companies are perfectly valid and not illegal.
TYPES OF IMPORT
There are two basic types of import:
1. Industrial and consumer goods
2. Intermediate goods and services
Companies import goods and services to supply to the domestic market at a cheaper price and
better quality than competing goods manufactured in the domestic market. Companies import
products that are not available in the local market.
There are three broad types of importers:
1. Looking for any product around the world to import and sell.
2. Looking for foreign sourcing to get their products at the cheapest price.
3. Using foreign sourcing as part of their global supply chain.
Direct-import refers to a type of business importation involving a major retailer (e.g. Wal-
Mart) and an overseas manufacturer. A retailer typically purchases products designed by local
companies that can be manufactured overseas. In a direct-import program, the retailer bypasses
the local supplier (colloquial middle-man) and buys the final product directly from the
manufacturer, possibly saving in added cost data on the value of imports and their quantities
often broken down by detailed lists of products are available in statistical collections on
international trade published by the statistical services of intergovernmental organizations.

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Warehousing
A warehouse is a commercial building for storage of goods. Warehouses are used
by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They
are usually large plain buildings in industrial areas of cities, towns and villages.
They usually have loading docks to load and unload goods from trucks. Sometimes warehouses
are designed for the loading and unloading of goods directly from railways, airports,
or seaports. They often have cranes and forklifts for moving goods, which are usually placed
on ISO standard pallets loaded into pallet racks. Stored goods can include any raw materials,
packing materials, spare parts, components, or finished goods associated with agriculture,
manufacturing and production. In Indian English a warehouse may be referred to as a godown.
Warehouse Function
Historically, warehouses were a dominant part of the urban landscape from the start of
the Industrial Revolution through the 19th century and into the twentieth century. The buildings
remained when their original usage had changed. There are four identifiable types of
warehouse. The cotton industry rose with the development of the warehouse, and all five types
were represented in Manchester in the United Kingdom. Warehouses of that period in
Manchester were often lavishly decorated, but modern warehouses are more functional.
Warehouses allow transport optimization along the supply chain, and allow companies to work
with an optimal inventory (economic order quantity) regarding service quality. For example,
at the terminal point of a transport system it is necessary to stockpile produce until a full load
can be transported. Warehouses can also be used to store the unloaded goods from the vessel.
In industries whose goods require a period of maturation between production and retail, such
as viniculture and cheese-making, warehouses can be used to store the goods in large quantities.

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Inventory
Inventory or stock means to the goods and materials that a business holds for the ultimate
purpose of resale (or repair).
Inventory management is a discipline primarily about specifying the shape and placement of
stocked goods. It is required at different locations within a facility or within many locations of
a supply network to precede the regular and planned course of production and stock of
materials.
The concept of inventory, stock or work-in-process has been extended from manufacturing
systems to service businesses and projects, by generalizing the definition to be "all work within
the process of production- all work that is or has occurred prior to the completion of
production." In the context of a manufacturing production system, inventory refers to all work
that has occurred - raw materials, partially finished products, finished products prior to sale
and departure from the manufacturing system. In the context of services, inventory refers to all
work done prior to sale, including partially process information.
Definition of Meeting
One Merriam-Webster dictionary defines a meeting as "an act or process of coming together"
-for example "as an assembly for a common purpose.
A meeting is a gathering of two or more people that has been convened for the purpose of
achieving a common goal through verbal interaction, such as sharing information or reaching
agreement. Meetings may occur face-to-face or virtually, as mediated by communications
technology, such as, a call skyped conference or a videoconference.
One can distinguish a meeting from other gatherings, such as a chance encounter (not
convened), a sports game or a concert (verbal interaction is incidental), a party or the company
of friends (no common goal is to be achieved) and a demonstration (whose common goal is
achieved mainly through the number of demonstrators present, not through verbal interaction).
Meeting planners and other meeting professionals may use the term "meeting" to denote an
event booked at a hotel, or any other venue dedicated to such gatherings. In this sense, the term
"meeting" covers a lecture (one presentation), seminar (typically several presentations, small
audience, one day), conference (mid-size, one or more days), congress (large, several

39
days), exhibition or trade show (with manned stands being visited by passer-
by), workshop (smaller, with active participants), training course, team-building
session and kick-off event.
Types of Meetings
Common types of meeting include:
 Ad-hoc meeting, a meeting called for a special purpose
 Away-day, which takes place off-site and away from the participants' regular office
surroundings
 Board meeting, a meeting of the board of directors of an organization
 Breakfast meeting
 Committee meeting, a coming-together of a defined subset of an organization
 Investigative meeting, generally when conducting a pre-interview, exit interview or a
meeting among the investigator and representative
 Kick-off meeting, the first meeting with a project team and the client of the project to
discuss the role of each team-member
 Management meeting, a meeting among managers
 Off-site meeting, also called "offsite retreat" and known as an Away-day meeting in the
UK
 One-on-one meeting, between two individuals
 Pre-Bid Meeting, a meeting of various competitors and or contractors to visually inspect a
jobsite for a future project. The meeting is normally hosted by the future customer or
engineer who wrote the project specification to ensure all bidders are aware of the details
and services expected of them. Attendance at a Pre-Bid Meeting may be mandatory. Failure
to attend usually results in a rejected bid.
 Staff meeting, typically a meeting between a manager and those that report to that manager
 Stand-up meeting, a meeting with attendees typically standing. The discomfort of standing
for long periods helps to keep the meetings short.
 Team meeting, in project contexts - a meeting among colleagues working on various
aspects of a team project
 Town hall meeting, an informal public gathering

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 Work meeting, which produces a product or intangible result such as a decision
Meeting Frequency Options
Since a meeting can be held once or often, the meeting organizer has to determine the repetition
and frequency of occurrence of the meeting. Options generally include the following:
 A one-time meeting is the most common meeting type and covers events that are self-
contained. While they may repeat often, the individual meeting is the entirety of the event.
This can include a 2006 conference. The 2007 version of the conference is a stand-alone
meeting event.
 A recurring meeting is a meeting that recurs periodically, such as an every Monday staff
meeting from 9:00AM to 9:30 AM. The meeting organizer wants the participants to be at
the meeting on a constant and repetitive basis. A recurring meeting can be ongoing, such
as a weekly team meeting, or have an end date, such as a 5-week training meeting, held
every Friday afternoon.
 A series meeting is like a recurring meeting, but the details differ from meeting to meeting.
One example of a series meeting is a monthly "lunch and learn" event at a company, church,
club or organization. The placeholder is the same, but the agenda and topics to be covered
vary. This is more of a recurring meeting with the details to be determined.
Marketing
The marketing Management refers to planning, organizing, directing, control of the activities
which facilitate the exchange of goods and services between the producers to end consumers.
Firms today need to spend money to create time, place and ownership utilities .The main
features of modern marketing are as follows: Marketing is a science as well as art: Marketing
has evolved from the economics but it has a closer relationships with social and behavioural
sciences. Marketing is closely associated with streams of science as well humanities and
subject lines such as Economics, Law, Psychology, Anthropology, Sociology, Information
Technology etc. Marketing heavily depends upon the demographic features of the target
market, political environment, philosophy, mathematics, statistics etc. Exchange is essence of
marketing: Marketing revolves around commercial exchange. This also involves exchange of
technology, exchange of information and exchange of ideas. Marketing is Goal Oriented: The

41
ultimate goal of marketing is to generate profits through the satisfaction of the customer.
Marketing is a continuous process: marketing is not an isolated, static process but is a complex,
continuous and interrelated process. It involves continuous planning, implementation and
control. It is an important functional area of the management. Marketing is Consumer Oriented:
All firms exist because of their business to satisfy the human needs, wants and demands. The
ultimate objective of marketing is to find out what the consumer wants and how to fulfil
consumer need. This leads to production of the goods and services as per the needs of the
customer. Marketing starts with consumer and ends with consumer: Marketing is consumer
oriented and it is very important to know what the consumer wants.
Definitions of Marketing
“Marketing is the process by which companies create customer interest in products or services.
It generates the strategy that underlies sales techniques, business communication, and business
development. It is an integrated process through which companies build strong customer
relationships and create value for their customers and for themselves.”
“Marketing is the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and
society at large.” — American Marketing Association
“Marketing is the social process by which individuals and groups obtain what they need and
want through creating and exchanging products and value with others.” — Philip Kotler
“Marketing is the process whereby society, to supply its consumption needs, evolves
distributive systems composed of participants, who, interacting under constraints – technical
(economic) and ethical (social) – create the transactions or flows which resolve market
separations and result in exchange and consumption.” – Bartles.

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“Marketing is any contact that your business has with anyone who isn’t a part of your business.
Marketing is also the truth made fascinating. Marketing is the art of getting people to change
their minds. Marketing is an opportunity for you to earn profits with your business, a chance
to cooperate with other businesses in your community or your industry and a process of
building lasting relationships.” — Jay Conrad Levinson
What is a 'Trade'
Trade is a basic economic concept involving the buying and selling of goods and services,
with compensation paid by a buyer to a seller, or the exchange of goods or services between
parties. The most of the medium of exchange for these transactions is money, but trade may
also be executed with the exchange of goods or services between both parties, referred to as a
barter, or payment with virtual currency, the most popular of which is bitcoin. In financial
markets, trading refers to the buying and selling of securities, such as the purchase of stock
on the floor of the New York Stock Exchange (NYSE).
BREAKING DOWN 'Trade'
Trade refers to transactions ranging in complexity from the exchange of baseball cards
between collectors to multinational policies setting protocols for imports and exports between
countries. Regardless of the complexity of the transaction, trading is facilitated through three
primary types of exchanges. Trades are executed with the payment of sovereign currency, the
exchange of goods and services, or payment with a virtual currency.
Currency as a Medium of Exchange
Money, which also functions as a unit of account and a store of value, is the most common
medium of exchange, providing a variety of methods for fund transfers between buyers and
sellers, including cash, ACH transfers, credit cards and wired funds. Money’s attribute as a
store of value also provides assurance that funds received by sellers as payment for goods or
services can be used to make purchases of equivalent value in the future.

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Barter Transactions
Cashless trades involving the exchange of goods or services between parties are referred to as
barter transactions. While barter is often associated with primitive or undeveloped societies,
these transactions are also used by large corporations and individuals as a means of gaining
goods in exchange for excess, underutilized or unwanted assets. For example, in the 1970s,
PepsiCo Inc. set up a barter agreement with the Russian government to trade cola syrup for
Stolichnaya vodka. In 1990, the deal was expanded to $3 billion dollars and included 10
Russian-built ships, which PepsiCo leased or sold in the years following the agreement.
Virtual Currencies
As the newest medium of exchange, virtual currencies do not expose holders to foreign
exchange risks, provide anonymity between trading partners if desired and avoid the often-
significant processing fee for credit cards. The most popular virtual currency is bitcoin, which
was introduced in 2009. Bitcoins are held in virtual wallets and can be used with a growing
number of merchants, including WordPress.com and Overstock.com. The virtual currency is
also popular with small businesses, due in part to the lack of processing fees.
ETHICS
At its simplest, ethics is a system of moral principles. They affect how people make decisions
and lead their lives.
Ethics is concerned with what is good for individuals and society and is also described as
moral philosophy.
The term is derived from the Greek word ethos which can mean custom, habit, character or
disposition.
Ethics covers the following dilemmas:
 how to live a good life
 our rights and responsibilities
 the language of right and wrong

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 Moral decisions - what is good and bad?
Our concepts of ethics have been derived from religions, philosophies and cultures. They
infuse debates on topics like abortion, human rights and professional conduct.
Approaches to ethics
Philosophers nowadays tend to divide ethical theories into three areas: meta-ethics, normative
ethics and applied ethics.
 Meta-ethics deals with the nature of moral judgement. It looks at the origins and meaning
of ethical principles.
 Normative ethics is concerned with the content of moral judgements and the criteria for
what is right or wrong.
 Applied ethics looks at controversial topics like war, animal rights and capital punishment
What use is ethics?
If ethical theories are to be useful in practice, they need to affect the way human beings
behave.
Some philosophers think that ethics does do this. They argue that if a person realises that it
would be morally good to do something then it would be irrational for that person not to do it.
But human beings often behave irrationally - they follow their 'gut instinct' even when their
head suggests a different course of action.
However, ethics does provide good tools for thinking about moral issues.
Ethics can provide a moral map
Most moral issues get us pretty worked up - think of abortion and euthanasia for starters.
Because these are such emotional issues we often let our hearts do the arguing while our
brains just go with the flow.
But there's another way of tackling these issues, and that's where philosophers can come in -
they offer us ethical rules and principles that enable us to take a cooler view of moral
problems.

45
So ethics provides us with a moral map, a framework that we can use to find our way through
difficult issues.
Ethics can pinpoint a disagreement
Using the framework of ethics, two people who are arguing a moral issue can often find that
what they disagree about is just one particular part of the issue, and that they broadly agree
on everything else.
That can take a lot of heat out of the argument, and sometimes even hint at a way for them to
resolve their problem.
But sometimes ethics doesn't provide people with the sort of help that they really want.
Ethics doesn't give right answers
Ethics doesn't always show the right answer to moral problems.
Indeed more and more people think that for many ethical issues there isn't a single right
answer - just a set of principles that can be applied to particular cases to give those involved
some clear choices.
Some philosophers go further and say that all ethics can do is eliminate confusion and clarify
the issues. After that it's up to each individual to come to their own conclusions.
Ethics can give severalanswers
Many people want there to be a single right answer to ethical questions. They find moral
ambiguity hard to live with because they genuinely want to do the 'right' thing, and even if
they can't work out what that right thing is, they like the idea that 'somewhere' there is one
right answer.
But often there isn't one right answer - there may be several right answers, or just some least
worst answers - and the individual must choose between them.
For others moral ambiguity is difficult because it forces them to take responsibility for their
own choices and actions, rather than falling back on convenient rules and customs.
Ethics and people

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Ethics is about the 'other'
At the heart of ethics is a concern about something or someone other than ourselves and our
own desires and self-interest.
Ethics is concerned with other people's interests, with the interests of society, with God's
interests, with "ultimate goods", and so on.
So when a person 'thinks ethically' they are giving at least some thought to something beyond
themselves.
Ethics as source of group strength
One problem with ethics is the way it's often used as a weapon.
If a group believes that a particular activity is "wrong" it can then use morality as the
justification for attacking those who practice that activity.
When people do this, they often see those who they regard as immoral as in some way less
human or deserving of respect than themselves; sometimes with tragic consequences.
Goodpeople as well as goodactions
Ethics is not only about the morality of particular courses of action, but it's also about the
goodness of individuals and what it means to live a good life.
Virtue Ethics is particularly concerned with the moral character of human beings.
Searching for the source ofright and wrong
At times in the past some people thought that ethical problems could be solved in one of two
ways:
 by discovering what God wanted people to do
 by thinking rigorously about moral principles and problems
If a person did this properly they would be led to the right conclusion.
But now even philosophers are less sure that it's possible to devise a satisfactory and
complete theory of ethics - at least not one that leads to conclusions.

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Modern thinkers often teach that ethics leads people not to conclusions but to 'decisions'.
In this view, the role of ethics is limited to clarifying 'what's at stake' in particular ethical
problems.
Philosophy can help identify the range of ethical methods, conversations and value systems
that can be applied to a particular problem. But after these things have been made clear, each
person must make their own individual decision as to what to do, and then react appropriately
to the consequences.
Are EthicalStatements Objectively True
Do ethical statements provide information about anything other than human opinions and
attitudes?
 Ethical realists think that human beings discover ethical truths that already have an
independent existence.
 Ethical non-realists think that human beings invent ethical truths.
The problem for ethical realists is that people follow many different ethical codes and moral
beliefs. So if there are real ethical truths out there (wherever!) then human beings don't seem
to be very good at discovering them.
One form of ethical realism teaches that ethical properties exist independently of human
beings, and that ethical statements give knowledge about the objective world.
To put it another way; the ethical properties of the world and the things in it exist and remain
the same, regardless of what people think or feel - or whether people think or feel about them
at all.
Four ethical 'isms'
When a person says "murder is bad" what are they doing?
That's the sort of question that only a philosopher would ask, but it's actually a very useful
way of getting a clear idea of what's going on when people talk about moral issues.
The different 'isms' regard the person uttering the statement as doing different things.

48
We can show some of the different things I might be doing when I say 'murder is bad' by
rewriting that statement to show what I really mean:
 I might be making a statement about an ethical fact
 "It is wrong to murder"
 This is moral realism
 I might be making a statement about my own feelings
 "I disapprove of murder"
 This is subjectivism
 I might be expressing my feelings
 "Down with murder"
 This is emotivism
 I might be giving an instruction or a prohibition
 "Don't murder people"
 This is prescriptivism
Moralrealism
Moral realism is based on the idea that there are real objective moral facts or truths in the
universe. Moral statements provide factual information about those truths.
Subjectivism
Subjectivism teaches that moral judgments are nothing more than statements of a person's
feelings or attitudes, and that ethical statements do not contain factual truths about goodness
or badness.
In more detail: subjectivists say that moral statements are statements about the feelings,
attitudes and emotions that that particular person or group has about a particular issue.
If a person says something is good or bad they are telling us about the positive or negative
feelings that they have about that something.
So if someone says 'murder is wrong' they are telling us that they disapprove of murder.

49
These statements are true if the person does hold the appropriate attitude or have the
appropriate feelings. They are false if the person doesn't.
Emotivism
Emotivism is the view that moral claims are no more than expressions of approval or
disapproval.
This sounds like subjectivism, but in emotivism a moral statement doesn't provide
information about the speaker's feelings about the topic but expresses those feelings.
When an emotivist says "murder is wrong" it's like saying "down with murder" or "murder,
yecch!" or just saying "murder" while pulling a horrified face, or making a thumbs-down
gesture at the same time as saying "murder is wrong".
So when someone makes a moral judgement they show their feelings about something. Some
theorists also suggest that in expressing a feeling the person gives an instruction to others
about how to act towards the subject matter.
Prescriptivism
Prescriptivists think that ethical statements are instructions or recommendations.
So if I say something is good, I'm recommending you to do it, and if I say something is bad,
I'm telling you not to do it.
There is almost always a prescriptive element in any real-world ethical statement: any ethical
statement can be reworked (with a bit of effort) into a statement with an 'ought' in it. For
example: "lying is wrong" can be rewritten as "people ought not to tell lies".
Where does ethics come from?
Philosophers have several answers to this question:
 God and religion
 Human conscience and intuition
 a rational moral cost-benefit analysis of actions and their effects
 the example of good human beings

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 a desire for the best for people in each unique situation
 political power
God-basedethics - supernaturalism
Supernaturalism makes ethics inseparable from religion. It teaches that the only source of
moral rules is God.
So, something is good because God says it is, and the way to lead a good life is to do what
God wants.
Intuitionism
Intuitionists think that good and bad are real objective properties that can't be broken down
into component parts. Something is good because it's good; its goodness doesn't need
justifying or proving.
Intuitionists think that goodness or badness can be detected by adults - they say that human
beings have an intuitive moral sense that enables them to detect real moral truths.
They think that basic moral truths of what is good and bad are self-evident to a person who
directs their mind towards moral issues.
So good things are the things that a sensible person realises are good if they spend some time
pondering the subject.
Don't get confused. For the intuitionist:
 moral truths are not discovered by rational argument
 moral truths are not discovered by having a hunch
 moral truths are not discovered by having a feeling
It's more a sort of moral 'aha' moment - a realisation of the truth.
Consequentialism
This is the ethical theory that most non-religious people think they use every day. It bases
morality on the consequences of human actions and not on the actions themselves.

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Consequentialism teaches that people should do whatever produces the greatest amount of
good consequences.
One famous way of putting this is 'the greatest good for the greatest number of people'.
The most common forms of consequentialism are the various versions of utilitarianism,
which favor actions that produce the greatest amount of happiness.
Despite its obvious common-sense appeal, consequentialism turns out to be a complicated
theory, and doesn't provide a complete solution to all ethical problems.
Two problems with consequentialism are:
 it can lead to the conclusion that some quite dreadful acts are good
 predicting and evaluating the consequences of actions is often very difficult
Non-consequentialismordeontologicalethics
Non-consequentialism is concerned with the actions themselves and not with the
consequences. It's the theory that people are using when they refer to "the principle of the
thing".
It teaches that some acts are right or wrong in themselves, whatever the consequences, and
people should act accordingly.
Virtue ethics
Virtue ethics looks at virtue or moral character, rather than at ethical duties and rules, or the
consequences of actions - indeed some philosophers of this school deny that there can be
such things as universal ethical rules.
Virtue ethics is particularly concerned with the way individuals live their lives, and less
concerned in assessing particular actions.
It develops the idea of good actions by looking at the way virtuous people express their inner
goodness in the things that they do.

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To put it very simply, virtue ethics teaches that an action is right if and only if it is an action
that a virtuous person would do in the same circumstances, and that a virtuous person is
someone who has a particularly good character.
Situation ethics
Situation ethics rejects prescriptive rules and argues that individual ethical decisions should
be made according to the unique situation.
Rather than following rules the decision maker should follow a desire to seek the best for the
people involved. There are no moral rules or rights - each case is unique and deserves a
unique solution.
Ethicsandideology
Some philosophers teach that ethics is the codification of political ideology, and that the
function of ethics is to state, enforce and preserve particular political beliefs.
They usually go on to say that ethics is used by the dominant political elite as a tool to control
everyone else.
More cynical writers suggest that power elites enforce an ethical code on other people that
helps them control those people, but do not apply this code to their own behaviour.

53
WORK EXPERIENCEAT PEPSICO INDIAHOLDINGS
My work experience in PepsiCo India Holdings was amazing and great opportunity for me to
have an idea of multinational company atmosphere and it was at a whole new level and the
office setup where I worked was in Sudha centre Mylapore Chennai, and it was located in
fourth floor of that building and the office was neatly maintained and there were around 40
other employees working there each taking care of separate brands under PepsiCo so it was
good opportunity for me to learn and also gain experience.
During my first I was basically introduced to all the senior level employees and was shown
around the office and was also introduced to my work guide Mr. Chidambaresh Eshwar
who has been with PepsiCo India Holdings for the past 13 years and has great experience in
the field of food and beverages and he was giving me an outline of PepsiCo works and what
are the kind of day to day work they do and what type of difficulties they face and all other
factors regarding the company. So my basic work was to visit all the distributors of Chennai
on behalf of the company and help the distributors around in stock management, financial
deals with the company, and also to solve distributor issues if anything arises and to also go
through certain accounts work in the office.
So this was all the most important work that was given to me by my work guide Eshwar and
as a couple of days past I got to meet many new distributors and got an idea of how the
supply chain of PepsiCo products works and got to see how they store the products and how
it was supplied to all kinds of stores, bakery’s, hotels etc. All the distributors used a software
called SAMNA which is a software for PepsiCo and is given to all distributors and the
company send Pepsi Sales Representative who go to all customers and take orders according
to their necessity and then sync it in their electronic tablet and that gets downloaded through
the software in the distributor warehouse and then stock is loaded the next day in many
vehicles according to the routes and then it is supplied to the customer accordingly.
This is the basic process what happens in a distributor warehouse and while viewing this I got
an idea of how the supply to all the customers and back in the main PepsiCo office I had to
report to Eshwar on my visit to the distributors and see how they function and he also made

54
me learn all the brands that are under PepsiCo and what type of products does in consist so it
me made me gain knowledge in the company history.
While working in PepsiCo I got to meet all types of senior officials and they were mostly
from Delhi and they came regularly for routine checks and it was very useful for meet to
meet this people from the company headquarters and the head in the Chennai office was
Rishi Singh and he is the head for PepsiCo Tamil Nadu and so all the officials came usually
to meet Rishi and at certain meetings even I was involved and it gave me an idea of how they
discuss about many issues and what matters they carry forward in a meeting and I had an idea
of how many people should be present for a particular period meeting and the things that had
to be organised for the meeting. So very frequently many officials from Delhi used to visit
the Chennai corporate for meetings and then I used to accompany them to the Chennai
distributors a for their official visit and they used go around to see check the particular stocks
and the warehouse conditions and to see if the stock is maintained properly and we used to
interact with the distributors asking if the supply to all the stores were made properly and if
our company support to them was good so we had an idea of PepsiCo was dealing with its
distributors.
The company was holding an annual conference in Delhi for which I had an opportunity to
attend it and it was held on 20th and 21st of December 2016 and it was a conference for all
strategic distributor partners (SDP,s), the bottlers and all the top level employees were
present there in the meeting and over all there were around 1000 people present there and it
was headed by the Indian CEO Mr D.Shivkumar who initiated the programme and the
theme for the programme was Mt. Everest and it was to never rest until we reach the top. So
all the decorations were according to that theme and at first Mr. Shivkumar spoke about all
the main facts about PepsiCo and this annual years performance and how the company’s
CSR(Corporate Social Responsibilities) have been to add to that they showed us
promotional videos of those CSR activities and saw after seeing that we had an idea of how
much positive factors that PepsiCo as a company was adding to the company. Then we were
given breaks and interacting sessions between the meetings and we got meet all top officials
from all over the country affiliated with PepsiCo and was good to know all of them as they
came from all parts of the country.

55
Then as the meeting continued they were done according to the brands under PepsiCo and
they all showed PowerPoint presentation of their particular products and its performance and
how it has improved for this particular year and what changes it has brought in that product
for the upcoming year and they all showed us the market share of all those products and then
finally they showed the new products that PepsiCo was going to launch in the year 2017
and they spoke about the company’s focus on also nutrious products and how they are also
reducing the sugar levels in all their CSD(carbonated soft drinks) so that they can be
consumed by all types of people and then after the meeting we had dinner and they had their
PepsiCo party and the night ended.
The next day was for snacks and foods and in this they showed us presentations on all chips
brands and for the Nutrition part on Quaker Oats as it was their most recent association with
PepsiCo and they showed us their plan and the agenda for 2017
Then back in Chennai I was going on the same routine looking into certain financial areas
and going distributors and through the internship I also continued to educate myself in many
new areas and was learning about this sector because I was passionate in this field and was
very keen to gain knowledge in this particular field so whenever I had extra time during this
internship I used to go to all the experienced household speak to them about this line of
business and how it works and were are all the potential areas and key areas we need to focus
in order to be successful in this line.
So this was very useful for me and all the senior level employees in the Chennai corporate
office were all very kind and generous and were ready to help me in any way needed so that I
could understand the working conditions of the company in a better way and to have a clear
idea of this company and we also had a lot of problems of facing criticism from the public
and the company knew about the morale of the company and how it worked on an ethical
principal and they told that people outside the company would just speak that its using too
much of water from rivers and the farmers are being affected because of that but the actual
truth is that PepsiCo gives back more than it takes and it on Positive Water Balance and as
on 2016 it has saved 12.5 billion litres of water around Tamil Nadu, and they provide jobs to
over 12500 people in and around Tamil Nadu, they also pay a sum of 250 crores as sales tax

56
to the Tamil Nadu government. So all these factors prove that PepsiCo is an ethical company
and has done a lot of CSR activities in the state.

57
SKILLS ACQUIRED
During the course of my four-week internship, it is obvious that I indeed gained knowledge
and acquired certain skills that I otherwise would not have. I learnt so much and experienced a
whole lot of new things and I am sure to say that I have become much better as a person as a
whole and that I am more experienced now, especially in the finance sector. In fact, this type
of experience is one of a kind. I acquired the following skills during my internship:
Punctuality
This is the first thing that I learned while working in PEPSICO the Head, Mr. Raj Rishi Singh
is very strict when it comes to punctuality and you have to be punctual in order to get into his
good books. I would not say that I was unpunctual before but after this internship I think that I
realised the importance of discipline in an organisation. All the employees’ half day salary was
cut if they arrived late into the office.
I realised that being three hours earlier is better than being a minute late for work. Punctuality
is the factor by which all superiors assess their subordinates’ capability.
Accounting and Finance
This is one of the main skills that I acquired during my four-week internship at JBIPL. Even
though I am a student of Commerce and have adequate knowledge on accounting, I learnt the
various types of accounting used in the company, how to make simple financial statements and
reports, create tallies, prepare statistical analysis, etc. I also gained knowledge about the various
types of expenditures and incomes of the company. I must admit that the final accounts seen
in a company is almost totally different from the final accounts that I used to put in my accounts
notebook in college. This helped me to put my theoretical knowledge into practical use.
Communication Skills
Before going to PEPSICO, I was unaware that even written communication was an important
factor that determined a person’s level of communication. As I had to deal with foreign clients
and customers, I learnt how to communicate effectively orally as well as through writing. I was
made to send business mails to foreign clients and this demanded a lot of skill in

58
communication. Though I was not great in the beginning, I think I bucked up a little towards
the end. My grammar and vocabulary in English has also improved to a great extent.
I have known so many people who get selected into top companies only because of their
communication skills and their fluency in English even though their grades are not that
satisfactory. I understood then, the importance of communication skills.
Perseverance
Without this skill, I think that it is not easy for any company to survive, not just PEPSICO.
Every person who works for the company has to be determined to gain organisational
objectives. As I got to know the company and its workers, I started integrating my work more
towards the betterment of the company and I learnt that one must never give up and persevere
till the very end until he or she succeeds or get what he or she needs.
There is an old saying that Perseverance Conquers All and I think that it is apt for any
organisation and its people. It is determination that helps people get to the top and not just
simply trying for the sake of it. In fact, the main motto of the Managing Director is to strive till
the very end, even if the situation does not promise you any success because one never knows
what will happen and how things can turn out to be good unexpectedly.
Management
The management of all the activities and men within the organisation is indeed the most
challenging task. It does not involve any routine work and instead it involves skill and talent. I
learnt how to manage the organisation’s men, materials, machines and money efficiently. I
learnt to manage all the activities happening around me simultaneously and also make sure that
no error occurred in between.
Dexterity
I learnt how to be dexterous in using my hands for calculating, creating accounts and making
tally on the computer. I improved in my typing skills and mathematical skills as well. I was
made to do at least one tally per day on the computer on daily expenses incurred and incomes
received.

Internship report PepsiCo Distribution

Internship report PepsiCo Distribution

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