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		<title>Do you agree that Attention is a costly commodity?</title>
		<link>https://drvidyahattangadi.com/attention-is-a-costly-commodity-do-you-agree/</link>
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		<dc:creator><![CDATA[Dr Vidya Hattangadi]]></dc:creator>
		<pubDate>Thu, 20 Sep 2018 01:03:40 +0000</pubDate>
				<category><![CDATA[GENERAL]]></category>
		<category><![CDATA[Attention]]></category>
		<category><![CDATA[attention seeking conspicuous consumption]]></category>
		<category><![CDATA[crisis]]></category>
		<category><![CDATA[Dr. Vidya Hattangadi]]></category>
		<category><![CDATA[emergency]]></category>
		<category><![CDATA[good looks]]></category>
		<category><![CDATA[personality]]></category>
		<category><![CDATA[psychological disorder]]></category>
		<category><![CDATA[richness]]></category>
		<category><![CDATA[success]]></category>
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					<description><![CDATA[There are many people who only thrive on attention, everyone needs attention, and it’s nice to get it now and then. It depends largely for you get attention; whether it’s for your looks, the way you have dressed up, for a fabulous job, for something new you bought or is it for being pulled up [&#8230;]]]></description>
										<content:encoded><![CDATA[<p style="text-align: justify;">There are many people who only thrive on attention, everyone needs attention, and it’s nice to get it now and then. It depends largely for you get attention; whether it’s for your looks, the way you have dressed up, for a fabulous job, for something new you bought or is it for being pulled up by boss, for some accusation, for some wrong publicity against you. Attention is slippery, it doesn’t say for long if it’s for a good reason, but if it is for a wrong reason, it will stay for longer time. How often do we mull over the concept of getting noticed by others, and for what? It is imperative to choose for what are you seeking somebody’s attention. Remember this, attention comes at some cost; in fact it is quite expensive commodity. I heard RJ Malishka of 93.5 Red FM on Ted Talks on the same topic; she drove the point so well.</p>
<p style="text-align: justify;"><a href="http://drvidyahattangadi.com/wp-content/uploads/2018/08/attention1.jpg"><img fetchpriority="high" decoding="async" class="alignright wp-image-5213 size-medium" src="http://drvidyahattangadi.com/wp-content/uploads/2018/08/attention1-300x192.jpg" alt="" width="300" height="192" /></a>The film stars get large fan following; fans always surround their favourite stars wherever they see them. The fans feel like touching the stars, take selfies with them, take their autograph etc. Now there is no logic in this why should people follow the film starts, singers and models but the obsession sometimes crosses the boundaries. Some fans become too excited and they go to any extent and end up injuring the celebs they claim to love.</p>
<p style="text-align: justify;">Bollywood actress Katrina Kaif was attacked by a mob of fans on her way back from promoting her movie <strong><em>Tees Maar Khan</em></strong>.The crazy fans trying to touch her and number increased to an extent when there was no control of the security personnel. But her co-star macho man Akshay Kumar came to damsel&#8217;s rescue and made a shield around Katrina with his arms, and saved her from further harassment. In another incident On her way back from the unveiling of the Diwali special edition of a magazine, Deepika was mobbed by fans who tried to touch her inappropriately and refused to let her go. Thankfully, with the help of her security, Deepika fled the scene.</p>
<p style="text-align: justify;">While good looks can give some advantages in some walks of life, they also come with drawbacks. While there are of course some definite perks, it turns out that the bubble of beauty can make certain aspects of life much more difficult. Beautiful girls and also boys get chased by the wrong people. Some men, who fall for a beautiful woman and get dejected by her go to extent of murdering her, rape her or even attack her with acid and what not. Young school going teenage girls get chased by elderly men.</p>
<h4 style="text-align: justify;">R.J.Malishka</h4>
<p><iframe src="https://www.youtube.com/embed/Wy_klhFt3nY" width="560" height="315" frameborder="0" allowfullscreen="allowfullscreen"></iframe></p>
<p style="text-align: justify;">Seeking attention habitually, to be desperate to gain notice is an obsessive behaviour. It is a psychological disorder. Most affluent people have similar traits of behaviour such as buying styles or life style choices. They spend tons of money on buying luxury cars, sports cars, private planes and golf resorts. They would also be keen on spending tons of money on engagements wedding, partying, exotic travels etc. They simply like to show off. Wealthy people like to indulge in some conspicuous behavior to seek attention from others. If you show off, it may make you famous or infamous, depending upon your intention, situation, circumstances and background.</p>
<p style="text-align: justify;">Rich people face threats and worst consequence; their children become lazy, incompetent, non-self-reliant adults, they are worried about kids getting kidnapped, we see many high profile kidnapping cases. They are susceptible to lawsuits; where there is money, there are lawsuits. Strangers, family members and friends ask for money.   Slowly, they don’t trust people around them.</p>
<p style="text-align: justify;">So if you are successful, you will find many enemies. You will find envious, bitter, jealous, suspicious, distrustful people around you.  Unwanted attention costs peace of mind.</p>
<p style="text-align: justify;">At times when we need genuine attention, we don’t get it. Therefore it is called slippery. A crisis is a situation that poses an immediate risk to health, life, environment, property, career, bank balance, an important relation etc. Most emergencies require urgent intervention to prevent a worsening of the situation, although in some situations, mitigation may not be possible. Situations like these &#8211; when you rush your near and dear one to hospital, and you need attention from the hospitals staff and doctor; when you need to catch a flight, you are late, the staff at the airport does not pay attention to you; when you need to go to reach your destination at the earliest and the roads are crowded; when you try to tell your teacher/professor that you have not committed a mistake he/she does not pay attention to you; when you need to urgently withdraw cash from bank and the queue is big nobody is ready to pay attention; you are giving a presentation and people are not giving enough attention, these and in many other crisis situations  when you need attention most, you don’t get it.</p>
<p style="text-align: justify;">The fact is we are living in a world where human attention as a scarce commodity. The phrase &#8216;to pay attention’ has a connotation of giving something of yourself to another. Typically, paying is normally associated with money, so we don&#8217;t need to specify anything when money is paid. But to pay attention is still giving your time, your concentration, your mind to another person.  And ultimately attention is the key to everything related to our lives.</p>
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		<title>Why Performance Appraisals are important?</title>
		<link>https://drvidyahattangadi.com/why-performance-appraisals-are-important/</link>
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		<dc:creator><![CDATA[Dr Vidya Hattangadi]]></dc:creator>
		<pubDate>Wed, 22 Jul 2015 00:47:17 +0000</pubDate>
				<category><![CDATA[Human Resources Management]]></category>
		<category><![CDATA[Management]]></category>
		<category><![CDATA[appraisal]]></category>
		<category><![CDATA[company]]></category>
		<category><![CDATA[creativity]]></category>
		<category><![CDATA[Dr. Vidya Hattangadi]]></category>
		<category><![CDATA[human resource]]></category>
		<category><![CDATA[important]]></category>
		<category><![CDATA[job satisfaction]]></category>
		<category><![CDATA[not general]]></category>
		<category><![CDATA[performance]]></category>
		<category><![CDATA[personal]]></category>
		<category><![CDATA[Review]]></category>
		<category><![CDATA[success]]></category>
		<category><![CDATA[Why Performance Appraisals are important]]></category>
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					<description><![CDATA[Why Performance Appraisals are important? A well-written and well documented performance appraisal is of great importance in all organizations, no matter what type of business it is in. Employee appraisal can serve as a platform for employees to bring forth questions and concerns. This can help increase employee perseverance, creativity, and job satisfaction. Reviews allow [&#8230;]]]></description>
										<content:encoded><![CDATA[<h1><strong>Why Performance Appraisals are important?</strong></h1>
<p style="text-align: justify;"><a href="http://drvidyahattangadi.com/wp-content/uploads/2015/06/Performance1.jpg"><img decoding="async" class="alignleft wp-image-2581 size-full" src="http://drvidyahattangadi.com/wp-content/uploads/2015/06/Performance1.jpg" alt="Performance1" width="550" height="295" /></a>A well-written and well documented performance appraisal is of great importance in all organizations, no matter what type of business it is in. Employee appraisal can serve as a platform for employees to bring forth questions and concerns. This can help increase employee perseverance, creativity, and job satisfaction. Reviews allow the organizations to evaluate employees for increased responsibilities and future promotions. The PA acts as a road map for both organization and its employees.</p>
<p style="text-align: justify;">PAs help organizations with useful information such as employee&#8217;s skill, knowledge, capability their knowledge up gradation, attitude, aptitude, health changes if any etc. In fact PA helps to improve the communication system of the organization and to review the potentiality of employees so that their future capability is anticipated. It helps in setting marketing and sales goals, operational goals, outsourcing function, infrastructural capability, R&amp;D etc.</p>
<p style="text-align: justify;">Rank and Yank is a term used to describe a process by which a company ranks its employees against each other, and terminates the employment of the people at the lowest end of the ranking (that&#8217;s the yank). The term probably came into being to describe the process used at General Electric (GE), and is associated with former CEO Jack Welch. In his view, the real term was “differentiation.” He looked at appraisals for building great thorough consistency, transparency and openness. Welch has written that “It’s about aligning performance with the organization’s mission and values. It’s about making sure that all employees know where they stand.” What happens to the yanks? According to Welch, the employees at bottom line 10% employees (the poor performers) will never feel let down, when PAs are done on regular intervals and are transparent.</p>
<p style="text-align: justify;">A transparent, ethical PA system is never demoralizing or inhuman. What’s inhumane is failing to make the organization’s standards and values clear and transparent and letting people know where they stand. According to Welch, managers owe frankness and sincerity to their subordinates; they must never create environment in which the subordinates keep guessing about what the organization thinks of them. Employees must know exactly what organization feels about them.</p>
<p style="text-align: justify;">During the hiring process, recruiters and hiring managers must tell employees when and how they will receive performance appraisals. Employees trust employers to follow throughout all promises; from paying employees on time, to giving employees holidays, enhancing career, and timely evaluation of their performance. Therefore, conducting systematic and timely performance appraisals is an important consideration when it comes to placing value on the company’s human capital.</p>
<p style="text-align: justify;"><a href="http://drvidyahattangadi.com/wp-content/uploads/2015/06/performance2.png"><img decoding="async" class="alignleft wp-image-2582 size-full" src="http://drvidyahattangadi.com/wp-content/uploads/2015/06/performance2.png" alt="performance2" width="640" height="196" /></a>Following are some specific tips for drafting better performance evaluations:</p>
<ul style="text-align: justify;">
<li><strong>Be specific and avoid generalization</strong>: Phrases such as ‘maintain time limit’, ‘work harder,’ ‘increase production’ are not specific. They create ambiguity in minds of employees. Be specific by mentioning exactness. Such as ‘increase sales by 20% in the next three months,’ ‘you need to work from 9am to 5 pm,’ these are measurable objectives, and assist both the employee and employer.</li>
<li><strong>Focus on what you want the employee to do, not what you want him/her to be</strong>: A performance evaluation is not about finding flaws in an employee’s personality or discussing only weaknesses. You cannot change the employee’s basic personality traits in a performance evaluation. Managers must objectively state exactly what is expected out of the employee.</li>
<li><strong>Use real details</strong>: Use the correct and full name of the employee, his joining date, cadre, salary, exact designation, detailed duties, family background etc. Be specific.  Be clear about his Key Result Areas (KRA) what is expected from the employee and the date it is expected. For documenting performance issues, get as detailed as possible instead of merely using phrases such as ‘is a trouble maker’ instead, document incidents where the employee’s attitude was inappropriate, stating the date, place, incident, witnesses, behavior(s), and the unfavorable effect of the employee’s conduct on those around him, as well as the specific organizational policies and procedures to be used when employee’s behavior is violated.</li>
<li><strong>Set only a limited number of objectives</strong>: The employee needs to be able to do the work; people can’t achieve an objective that is not within their scope of influence or current capability. The employee must have the tools, resources, and access required to get the work done. Expectations must be well defined, and the employee must have sufficient time and assistance to meet milestones. Remember, more than seven objectives are excessive.</li>
<li><strong>Appraisal biases</strong>: should be avoided as far as possible. In performance appraisal halo bias is termed as Matthew Effect. It is said to occur where employees tend to keep receiving the same appraisal results, year in and year out judged or based on an early performance evaluation. If an employee did well on the early evaluation, he will be more trusted than other employees and all of his work will be seen in a favorable light. If he did poorly, he will have a very hard time earning trust or a positive evaluation from his boss. Their appraisal results tend to become self-fulfilling: if they have done well, they will continue to do well; if they have done poorly, they will continue to do poorly. The Matthew Effect suggests that no matter how hard an employee strives, their past appraisal records will prejudice their future attempts to improve.</li>
</ul>
<p style="text-align: justify;"><a href="http://drvidyahattangadi.com/wp-content/uploads/2015/06/performance3.png"><img loading="lazy" decoding="async" class="alignleft wp-image-2583 size-full" src="http://drvidyahattangadi.com/wp-content/uploads/2015/06/performance3.png" alt="performance3" width="678" height="425" /></a>Often organizations overlook importance of timely performance appraisal, though it is  powerful for enhancing employee satisfaction and retention. The timely and accurate performance reviews are a key factor in retaining a satisfied and productive workforce. Feedback, whether positive or negative, can help employees understand the company’s expectations and perceptions and provides a pathway to improvement. Providing timely feedback lets good employees know you appreciate their accomplishments. While identifying what an employee can or needs to do better is a critical function of performance reviews, other equally critical yet often overlooked functions include showing the company’s appreciation for employees who are successful, showing passion and accountability for their work, and letting them know they are important to the success of the company.</p>
<p style="text-align: justify;">Training and development is another area which can be used with help of PA. Training and development are used together to bring about the overall familiarization, improvement, and education of an organization&#8217;s employees.  In general, training programs have very specific and quantifiable goals, such as operating a particular piece of machinery, understanding a specific process, or performing certain procedures with great precision. On the other hand, developmental programs concentrate on broader skills that are applicable to a wider variety of situations, such as decision making, leadership skills, and goal setting.<br />
Google schedules their performance reviews twice a year; major one at the end of the year and a smaller one mid-year. Each review consists of a self-assessment, a set of peer reviews, and if an employee is applying for a promotion, reasons for why he should be promoted to the next level.  Each review component is submitted via an online tool.  Around performance review time, it&#8217;s not exceptional to see many engineers taking a day or more just to write the reviews through the tool. In the self-assessment, the employee summarizes his major accomplishments and contributions since the last review. He is asked to describe his strengths and areas for improvement; the employee is expected to frame them with respect to the job expectations described in his career ladder.  For peer reviews, employees are expected to choose around 3-8 peers (fellow engineers, product managers, or others that can comment on their work) to write their peer reviews.  Often, managers assign additional individuals to write peer reviews for one of their reports, particularly newer or younger employees who may be less familiar with the process are chosen. Peers comment on an employee’s contribution in a project, on his strengths, and on areas for improvement.  If an employee applies for a promotion, the peer reviews become more relevant for considering his promotion.</p>
<p style="text-align: justify;">An accurate performance reviews is critical because it helps exceptional employees being  rewarded with exceptional performance ratings and the benefits that go along with those ratings, while poor performers should be rated and rewarded accordingly. Employees talk among themselves and share information. It can be extremely demoralizing for a high-performing employee to learn that marginal or poor performers have received the same rating, pay raise, and other benefits.</p>
<p style="text-align: justify;">Finally, change is constant in business; the PA system should also change accordingly.</p>
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		<title>Business Clusters offer competitive advantage</title>
		<link>https://drvidyahattangadi.com/business-clusters-offer-competitive-advantage/</link>
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		<dc:creator><![CDATA[Dr Vidya Hattangadi]]></dc:creator>
		<pubDate>Tue, 19 Aug 2014 18:02:52 +0000</pubDate>
				<category><![CDATA[Current Affairs]]></category>
		<category><![CDATA[Management]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[advantage]]></category>
		<category><![CDATA[Business]]></category>
		<category><![CDATA[Business Clusters offer competitive advantage]]></category>
		<category><![CDATA[chanderi]]></category>
		<category><![CDATA[cluster]]></category>
		<category><![CDATA[competitive]]></category>
		<category><![CDATA[development]]></category>
		<category><![CDATA[Dr. Vidya Hattangadi]]></category>
		<category><![CDATA[Dr.Alfred Marshall]]></category>
		<category><![CDATA[economist]]></category>
		<category><![CDATA[entrepreneurs]]></category>
		<category><![CDATA[firm]]></category>
		<category><![CDATA[fruit hub]]></category>
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		<category><![CDATA[Maharashtra]]></category>
		<category><![CDATA[numerous studies]]></category>
		<category><![CDATA[pathani]]></category>
		<category><![CDATA[peer pressure]]></category>
		<category><![CDATA[processed foods]]></category>
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					<description><![CDATA[Business Clusters offer competitive advantage  The term business cluster, also known as an industry cluster, was introduced and popularized by Michael Porter in his book The Competitive Advantage of Nations (1990). Cluster Development has since become a focus for many government programs. The underlying concept of business cluster which economists have referred to as agglomeration [&#8230;]]]></description>
										<content:encoded><![CDATA[<h1 style="text-align: justify;"><strong>Business Clusters offer competitive advantage </strong></h1>
<p style="text-align: justify;"><a href="http://drvidyahattangadi.com/wp-content/uploads/2014/08/Pic1.jpg"><img loading="lazy" decoding="async" class="alignleft wp-image-1273 size-medium" src="http://drvidyahattangadi.com/wp-content/uploads/2014/08/Pic1-300x227.jpg" alt="Pic1" width="300" height="227" /></a>The term business cluster, also known as an industry cluster, was introduced and popularized by Michael Porter in his book The Competitive Advantage of Nations (1990). Cluster Development has since become a focus for many government programs. The underlying concept of business cluster which economists have referred to as agglomeration economies dates back to 1890 in the work of economist Alfred Marshall.</p>
<p style="text-align: justify;">Industry clusters are groups of similar and related firms in a defined geographic area that share common markets, technologies, worker skill needs, and which are often linked by buyer-seller relationships. A cluster can be formed when at least 100 enterprises exist in it and the cluster’s turnover is over 100 million. Units in these clusters function with hired workers. These clusters include a mix of micro, small, medium and a few large firms.</p>
<p style="text-align: justify;">Firms and workers in an industry cluster draw competitive advantage from their proximity to competitors, skilled workforce, specialized suppliers and a shared base of sophisticated knowledge about an industry. At present in India the estimated figure of business clusters is about 400 for modern Small Scale Enterprises and 2000 rural and artisan based clusters in India. As far as export is concerned, these contribute up to 60 percent of India&#8217;s manufactured exports. Although location remains fundamental to competition, its role today differs vastly compared to past. Besides location advantage the competition is driven heavily by input costs, locations with some important endowment—a natural harbor for example, or a supply of cheap labor, nearness to port/railway station/airport — these factors add to the comparative advantages while forming clusters.</p>
<p style="text-align: justify;"><a href="http://drvidyahattangadi.com/wp-content/uploads/2014/08/Picture331.jpg"><img loading="lazy" decoding="async" class="alignright wp-image-1275 size-full" src="http://drvidyahattangadi.com/wp-content/uploads/2014/08/Picture331.jpg" alt="Picture33" width="290" height="174" /></a></p>
<p style="text-align: justify;"><strong>Silicon Valley</strong>: In the mid- to late 1990s several successful computer technology related companies emerged in Silicon Valley in California. This led anyone who wished to create a startup company to do so in Silicon Valley. The surge in the number of Silicon Valley startups led to a number of venture capital firms relocating to or expanding their Valley offices. This in turn encouraged more entrepreneurs to locate their startups there.</p>
<p style="text-align: justify;">In other words venture capitalists (sellers of finance) and the buyers of finance (IT startup firms) “clustered&#8221; in and around California.</p>
<p style="text-align: justify;">The cluster effect in the capital market also led to a cluster effect in the labor market. As an increasing number of companies started up in Silicon Valley, programmers, engineers etc. realized that they would find greater job opportunities by moving to Silicon Valley. This concentration of technically skilled people in the valley meant that startups around the country knew that their chances of finding job candidates with the proper skill-sets were higher in the valley, hence giving them added incentive to move there. This in turn led to more high-tech workers moving there. Similar effects have also been found in the Cambridge IT Cluster (UK).</p>
<p style="text-align: justify;">Competition in today’s economy is far more dynamic. Companies can mitigate many input-cost disadvantages through global sourcing, rendering the old notion of comparative advantage less relevant. Instead, competitive advantage rests on making more productive use of inputs, which requires continual innovation</p>
<p style="text-align: justify;">Porter describes the following benefits of doing business in clusters:</p>
<p style="text-align: justify;">Better access to suppliers and flexibility.</p>
<ul style="text-align: justify;">
<li> Access to specialized information through personal relationships.</li>
<li> Joint marketing.</li>
<li> Local rivalry and peer pressure.</li>
<li> Innovation through having information on new markets and technological advances.</li>
<li> Complementary products (e.g. tourist attractions).</li>
<li> Reputation of an area.</li>
<li> Pool of experienced labor.</li>
<li>Access to institutions and public goods.</li>
<li>Conducive to new businesses.</li>
</ul>
<p style="text-align: justify;"><a href="http://drvidyahattangadi.com/wp-content/uploads/2014/08/Picture34.jpg"><img loading="lazy" decoding="async" class="alignleft wp-image-1276 size-full" src="http://drvidyahattangadi.com/wp-content/uploads/2014/08/Picture34.jpg" alt="Picture34" width="274" height="184" /></a>Numerous studies show that on an average, a business located in a cluster has a stronger growth and survival rate than those located outside it. This is partly because the physical proximity of the companies facilitates exchanges of information and talent among the competing firms. Clusters normally include highly specialized vendors, service providers, investors, analysts, students, university faculty and staff, trade association members, consultants, and other useful specialists. In addition, industry-specific equipment is often more readily available within a cluster. The clusters draw their strengths from the private sector. Government agencies, both federal and local which offer industry-friendly incentives and regulatory policies to companies that locate in clusters. The government&#8217;s motivation is not purely altruistic. Clusters help the economic growth of a region by increasing job creation and increased tax revenues.</p>
<p style="text-align: justify;">The development and upgrading of clusters is an important agenda for governments of developing nations. Cluster development initiatives are an important new direction in economic policy, building on earlier efforts in macroeconomic stabilization, privatization, and market opening, and reducing the costs of doing business.</p>
<p style="text-align: justify;"><a href="http://drvidyahattangadi.com/wp-content/uploads/2014/08/Picture35.gif"><img loading="lazy" decoding="async" class="aligncenter wp-image-1277 size-full" src="http://drvidyahattangadi.com/wp-content/uploads/2014/08/Picture35.gif" alt="Picture35" width="514" height="116" /></a></p>
<p style="text-align: justify;"><strong>Example</strong>: Panchgani near Pune, Maharashtra is a thriving hub of food processing units today. Pune/Panchgani is surrounded by vast tracts of arable, agricultural land and is known for its agriculture and agro-business. Panchagani’s proximity to urbanized markets such as Mumbai, Nasik, Nagpur, Aurangabad etc, changing food habits and dependence on ready to eat food, cosmopolitan nature of the city, connectivity to JNPT port has made the processed food cluster of Panchagani very famous. It exports jams, jellies, toffees, pickles, chtanis to many foreign countries. Panchagani cluster is developing very fast and is home to about 3000 plus small and micro entrepreneurs. The cluster produces a range of products comprising semi-processed ready mix products, pickles, jams, jellies, squashes &amp; syrups, Ready to Eat/Ready to Cook products ground &amp; processed spices and papad.</p>
<p style="text-align: justify;">Business clusters work on the logic of nature’s basic goodness such as: grapevines that are planted just close enough together are forced to compete for nutrients in the soil. Stress causes the plants to put more energy into their reproductive processes, increasing the quantity and quality of the grapes. The same logic is applied while forming clusters. When businesses are located together in clusters, they strive to get maximum benefits offered in the cluster and hence show better results. Michael Porter claims that clusters have the potential to affect competition in three ways: by increasing the productivity of the companies in the cluster, by driving innovation in the field, and by stimulating new businesses in the field. According to Porter, in the modern global economy, certain locations have special inheritance such as harbor, cheap labor, packaging units in the vicinity to overcome heavy input costs.</p>
<p style="text-align: justify;">With a contribution of 40% to the country&#8217;s industrial output and 35% to direct exports, the Small-Scale Industry (SSI) sector has achieved significant milestones for the industrial development of India. Within the SSI sector, an important role is played by the numerous clusters that have been in existence for decades and sometimes even for centuries. According to a UNIDO survey of Indian SSI clusters undertaken in 1996 (later updated in 1998), there are 350 SSI clusters. Also, there are approximately 2000 rural and artisan based clusters in India. It is estimated that these clusters contribute 60% of the manufactured exports from India. The SSI clusters in India are estimated to have a significantly high share in employment generation.</p>
<p style="text-align: justify;">One key factor for the cluster success is the specialization of small firms in same or complementary areas of the production process. Each firm can use its limited resources in its core competency and its operation is complemented by other specializing firms in the supply chain within the cluster. This not only helps individual firms to excel, but also the cluster to flourish. The other important success factor in a cluster is cooperation. When firms help each other together they facilitate (a) sub-contracting: when a firm receives big orders it can sub-contract the order for processing to other firms, (b) flexibility:  when diversity of order types can be achieved involving multiple firms a lot of elasticity can be enjoyed and (c) presence of a good local governance or support institutes encourage inter-firm co-ordination which in turn lowers the entry barrier for new start-ups.</p>
<p style="text-align: justify;">Some Indian SME clusters are so big that they account for 90 per cent of India&#8217;s total production output in selected product category. As for example, the knitwear clusters of Ludhiana. Almost the entire Gems and Jewelers exports are from the clusters of Surat and Mumbai. Similarly, the clusters of Chennai, Agra, Kanpur and Kolkata are well known for leather and leather products.</p>
<p style="text-align: justify;">In Indian context clusters have played a significant role in product/service diversification. The clusters in India have been classified as (1) industrial (SME), (2) handloom, (3) handicraft, (4) micro-enterprise (rural and urban) and (5) service-oriented. However, only in recent years with the liberalization of economies, there is a concentrated effort in cluster-growth by Indian government and different support institutions like United Nations Industrial Development Organization (UNIDO), Small Industries Development Bank of India (SIDBI) for promoting the growth of SMEs. Cluster development initiatives include up-gradation of technology, forging of strong intra-cluster network, and networking with external associations.</p>
<p style="text-align: justify;"><a href="http://drvidyahattangadi.com/wp-content/uploads/2014/08/Picture36.jpg"><img loading="lazy" decoding="async" class="alignright wp-image-1278 size-full" src="http://drvidyahattangadi.com/wp-content/uploads/2014/08/Picture36.jpg" alt="Picture36" width="275" height="183" /></a><strong>Paithani Sarees – Paithan</strong>: This handicraft sector is very small with not more than hundred workers; they are so specialized that no other places in the world matches their skills and the quality of their output. This is the case of the Paithani sarees cluster in Aurangabad, Maharashtra. It is said that Paithan at one time, was visited by Greek traders, between 400 and 200 BC, during the Satavahana era, for the Paithani weaves. This exquisite Paithani silk soon came to be exported to many countries and was traded for gold and precious stones in barter. Such was its value! According to some sources, this technique possibly came to India from Central Asia and was developed into a fine art in the Deccan region and slowly evolved into the contemporary version you see today. The Peshwa rulers were big patrons of this art and even today among the Maharashtrians women prefer wearing Paithani sarees in marriages and special functions. The classy fabric stands out and is considered as an propitious fabric.</p>
<p style="text-align: justify;"><a href="http://drvidyahattangadi.com/wp-content/uploads/2014/08/Picture37.jpg"><img loading="lazy" decoding="async" class="alignleft wp-image-1279 size-medium" src="http://drvidyahattangadi.com/wp-content/uploads/2014/08/Picture37-300x152.jpg" alt="Picture37" width="300" height="152" /></a><strong>Chanderi Sarees:  </strong>Chanderi is a town in Ashok nagar District, Madhya Pradesh. The town of Chanderi has a rich history that was shared between Pratihara kings, Delhi sultans, Mandu sultans, Bundela kings and Scindias of Gwalior. Located on the borders of the cultural regions of Malwa and Bundelkhand, Chanderi fell on an important arterial route to the ancient ports of Gujarat as well as to Malwa, Mewar, Central India and Deccan. Chanderi’s setting made it into a natural fortress. The living tradition of weaving has been prevalent since the past six hundred years and continues to sustain almost half of the population of Chanderi.</p>
<p style="text-align: justify;">The town of Chanderi is divided into mohallas or residential neighborhoods. The mohallas of the different communities of the weavers are important part of the urban morphology. The 13th century Moroccan visitor Ibn Batuta remarked: “it is a big city with thronged market places” like Sadar bazaar. The sadar bazaar of the city is today stocked with shops of delicate and artistic Chanderi sarees. The three storied shops, projecting one over other, originally planned to be on the level with riders on elephants, on horses and on foot, give a unique profile to the street.</p>
<p style="text-align: justify;">The spacious weaver houses were integral to the production of the cloth and its quality. Chanderi houses weavers from Rajasthan, Marwar and Gujrat who are skilled particularly to weave the delicate, silky, colorful Chanderi sarees. The weavers have a unique weaving techniques and requirements. Platforms built outside the houses provide additional work areas and for stretching yarns. Architecture also serves as an inspiration to the craftsmen. The patterns on sarees are largely inspired by ornamentation on buildings.</p>
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