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Monday, May 28, 2007

It’s all thanda for Coca-Cola!!!


IIPM BEST B-SCHOOL

Home soil is not proving to be fertile enough for the cola behemoth. Coca-Cola has been browbeaten by the step motherly treatment from Americans and CEO Neville Isdell is expecting sluggish sales in 2007. A report unleashed by ‘Beverage Digest’ in the USA, evinces that the market of carbonated drinks moved towards south by 0.6% in 2006 and, excluding energy drinks, this decline could be as much as 1.5%. Well, it’s no surprise that Coke is now eying on the energy drink-maker Glaceau. Also, the report highlighted the fact that Coke’s domestic market share reached 42.9% as compared to 43.1% in the year 2005, explaining the fact that Coke’s executives are losing their sleep.

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Source :
IIPM Editorial, 2007

An
IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Monday, May 21, 2007

...and walk away with the crème de la crème of brand communication


IIPM BUSINESS AND ECONOMY

Nestlé and L’Oréal were the clients that enticed Publicis Worldwide to enter India. The presence of the likes of HP, Whirlpool and Coke in India added fuel to fire. Having worked with most of its desired clients, Publicis India is one of the top agencies of the country today. Part of the Publicis Group (the world’s fifth largest agency network), the agency has utilised its vanguard vision to good use since its very inception in 2003.

Interestingly, Publicis India is not the only agency of the group in the country. It also has Ambience Publicis, as another independent competing agency, and both share a common top management team. On potential conflicts between the functioning of the two agencies, Nakul Chopra, MD and CEO, Publicis India, says, “Honestly, there wasn’t any (conflict) because what we wanted was clearly conveyed and done with full agreement, so whether it was the management at that time or the organisation as a whole, all the key constituents agreed on a plan and it was executed with no difficulty.”

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Source :
IIPM Editorial, 2007

An
IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Wednesday, May 16, 2007

If it was steel that was responsible for the downfall of Group


IIPM BEST B-SCHOOL

If it was steel that was responsible for the downfall of Group, it was steel that also started their resurgence after 2001 when steel prices started rising & kept rising

Strangely, if it was steel that was responsible for the downfall of the Essar Group, it was steel that also started their resurgence and resurrection. After 2001, when the Essar Group looked truly down and out for the count, the global steel industry saw a sudden reversal of fortunes. Backed by surging demand in China and a global economic recovery post 9/11, steel prices started rising and have kept rising since then. Suddenly, Essar Steel started making money and the Ruias realised they now had a golden opportunity to bounce back. Even corporate and equity analysts started looking at the Group with new respect and grudging approval. Along with a sustained revival in steel, came the dramatic telecom revolution in the country. Since 2002, the mobile phone industry in India has been growing at dizzying rates and telecom has become a rock solid hot property for investors across the world.

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Source :
IIPM Editorial, 2007

An
IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Friday, May 11, 2007

The Hershey Company and employees are proud of the role


IIPM BUSINESS AND ECONOMY

As our interaction with the honcho at Hershey moves on to his leadership credo, this unassuming leader brims with humility, “Well, I guess leadership is about empowering individuals and at Hershey we certainly believe in doing so. You need to nurture talent and bring out the best in them.” He points out that integrity and conviction is a vital value to the growth of this company and attributes it to the founder of the company. “Our founder Milton S. Hershey transformed the business of making chocolates when he established an enduring model of responsible communities and gave his entire personal fortune to a trust that administers a school for disadvantaged children,” he explains, adding that ‘trust’ is the largest shareholder in The Hershey Company and employees are proud of the role that the school plays in the lives of these children. In fact, the act of endowment seems to have even influenced Richard and his wife Susan deeply. The couple have vowed $750,000 for the J. Mack Robinson College of Business.

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Source :
IIPM Editorial, 2007

An
IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Wednesday, May 09, 2007

Night Without End


IIPM BEST B-SCHOOL

The inept handling of power sector by the political class for years has rendered one of the fastest growing economies in the world to suffer the ignominy of being branded as an ill-governed state. Summer after summer, people continue to bear the heat without any respite. But sadly, the corruptionridden political leadership just refuses to come out of their deep slumber

Year-after-year, we face the same scenario of protracted power outages. Once again we are in the midst of an annual national event of grueling elongated summers without fans and light. Compared to the earlier years, this time the hue-and-cry has started much before the actual onset of summer. The situation is so precarious that any situation which saves power even a bit causes the power distribution companies to feel elated. Here is an example: the whole of the country might be mourning the failure of Dravid & Co., but State Electricity Boards are a happy lot. With India out of contention, people will not remain awake throughout the night to watch cricket and thus the demand for power will drastically reduce.

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Source :
IIPM Editorial, 2007

An
IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Wednesday, May 02, 2007

The Enemy Lies Within


IIPM BUSINESS AND ECONOMY

While the whole nation was watching wide-eyed for the first bird to fall from the domestic skies, Naresh Goyal seized the opportunity and proved yet again why Jet Airways is such a hit with the media. Is the Sahara deal a brilliant strategic move to remain afloat? Or some unavoidable curse? For now, what matters is that Jet seems to be losing altitude... and fast!

Friday the 13th! Cursed, you said? Sure it is in Western culture, but could the association with this day find a parallel in the Indian aviation sector? For it is this fateful day in the year of 2007 that Jet Airways Chairman Naresh Goyal chose to finally announce that Jet & Sahara have finally decided to make it to the aisle; a move that has industry experts shaking their heads in candid disapproval of the strategic logic.

This one’s a no-brainer: What would you call a company that’s publicly-listed, but one in which the Chairman (who fits the title of ‘king’) commands a filthy 80% of total voting power, while the very public owns a practically negligible and hopelessly heart-rending 3.05% of total shares? Yes, it’s the erstwhile mighty Jet Airways we’re referring to, which survived when all other private fliers closed shops, led by its king and today a top(pled) gun, Naresh Goyal! Both form the perfect mishmash that proved ideal for a resounding malfunction on the bourses ever since it came out with its IPO. Ever since it got listed on NSE, Jet shareholders have found their total worth deplete by a dishonourable 54.7% to just Rs.45.5 billion as on April 13, 2006. So where is Jet headed in a business environment that’s nothing short of a bloody battle?

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Source :
IIPM Editorial, 2007

An
IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

 

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