These boots ain’t made for walking

IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA

In fact, Adi Godrej was one of the first Indian entrepreneurs to recognise the value of tying up with multinational companies soon after reforms struck the Indian marketplace like a thunderbolt after 1991. He has taken the lead in the Godrej Group forging strategic alliances with such venerable companies and brands like Sara Lee, Hershey’s, Procter & Gamble and even the iconic GE. The Sara Lee and the Hershey’s tie ups are still going strong. But the loss of P&G and GE as partners did represent lost opportunities for the group in the FMCG and the white goods segment. Not that there was much that Adi Godrej or his group could do about it. According to him, the joint venture with P&G was doing extremely well from day one till partner P&G took a strategic decision to shift focus from soaps to detergents. Ariel replaced Camay as the central thrust of the multinational in India. So they parted friends. But Godrej is still nostalgic about those exciting days. They had launched a soap brand called Ganga, using film star Govinda as the brand ambassador. The brand had an immediate emotional connect with the Indian consumer and was a huge hit. “But then, folks at P&G decided not to use the emotional connect. And that was that,” he says. Even the joint venture with GE for white goods died a natural death because, in Godrej’s words, “the then Chairman, Jack Welch, had taken a strategic decision to take GE out of segments where the company was not in the top three. In white goods in Asia, GE was not in the top three.” The group has moved on since then, but there remain the tantalising prospects of opportunities lost.

But, history and nostalgia are not important for the group at the moment. The future beckons, along with the challenges and opportunities. And one of the biggest challenges in recent times has been to manage the sprawling product and service portfolio of the conglomerate. In the FMCG sector alone, there are three companies. Then there is a presence in security systems (locks), white goods, agri-business, real estate, retail and food, among others. Can the whole group discover and leverage the synergies of various business segments to forge a coherent group strategy for future growth?

Enter an entity called Strategic Marketing Group (SMG) and the next generation of the business family. The SMG is a kind of umbrella organisation that will adopt marketing strategies across the group and leverage synergies wherever possible. It is headed by the 30-year-old daughter of Adi Godrej, Tanya Dubash, whose formal designation is Executive Director and President (Marketing), Godrej Industries Ltd. It is this SMG headed by Tanya that is now credited with a series of brainstorming sessions that has led to the new logo, the new catch line. “We are getting quicker…we are getting faster” and a whole new focus on the young generation. “We want to be youthful and do something for the future that benefits all the citizens and this needed to be conveyed to our consumers in a big way,” says Tanya Dubash. In fact, most top managers have embraced the concept of the SMG wholeheartedly and now realise that future growth will come from the strategies devised by this core group. “We have big plans for the FMCG sector and now the overall group will work together to leverage from all possible ways. Like in the case of logistics, publicity and retail presence will have a common base that will help us leverage all the three FMCG companies. This common base is Strategic Marketing Group (SMG),” declares Dr. Rakesh Kumar Sinha, COO, Marketing & Operations, Godrej Consumer Products Ltd. (GCPL). Though there is no official confirmation, insiders revel in revealing the fact that –through SMG – the group is planning to spend Rs.1 billion every year on branding exercises.

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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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Microsoft Xbox 360

IIPM Programme :- SUPERIOR COURSE CONTENTS

Technical Specification

Hard Disk – 20 GB removable; RAM – 512 MB
PRICE: Rs.19,990
WARRANTY: 1 year

With a 20GB HDD capacity and a 512 RAM, the Microsoft X360 has a video output capacity of 256-bit - 2D/3D graphics acceleration and a cracking sound output of 16-bit Surround sound. It features 3 PowerPC-based cores running at 3.2 GHz. Plus, it has a 500-MHz graphics chip. With Microsoft backing up in technology terms, the 4.5 kg Xbox 360 has indeed done enough in terms of performance to give its competitors some sleepless nights... Xbox is the first company to advertise so aggressively in the gaming sphere in India and it has paid them off too. As Rahul Dutta, Marketing Manager, Xbox states, “The Xbox provides you the complete family entertainment which makes it an attractive product.” Adding to it Gagandeep Sapra, Chairman & CEO, System 3 Group asserts, “The realism in the games is what makes it a value for money purchase.” With many renowned titles like Halo, Ace Combat, Ninja Gaiden et al, Xbox 360 is no less than a cult!

Marketers’ delight: The product has a strong brand name associated to it and its earlier versions are tried and tested before...

Tester’s note: Pros – Friendly user interface, Mass market appeal, Seamless online connectivity. Cons – High price, needs a killer application to run, demands a high-definition TV monitor.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
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iPod Touch 16GB

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Technical Spcification

Backlight - Lines of text: 7 - Resolution: QQVGA, 160 x 128 pixels, 65K colours; Type: LCD - Diagonal screen size (inch): 1.8 inch; Memory- 2GB ; Data can be transferred using USB 2.0
PRICE: Rs.5,000 without taxes
WARRANTY: 1 year (on site)

With a cult behind it, the Apple iPod is one with the killer looks. This most recent version too is a perfect piece to pick up for music lovers. Apart from a great sound quality, the iPod touch has a whole new generation of features including gorgeous 3.5-inch wide-screen display and a built-in accelerometer. “The iPod touch is a landmark iPod, ushering-in a whole new generation of features based on its revolutionary multi-touch interface and built-in Wi-Fi wireless networking,” says Steve Jobs, CEO, Apple Inc. The iPod touch includes Wi-Fi wireless networking, the first on any iPod. The iPod touch is an unbelievable 8 mm thin, and is caries a decent price tag. As far as the amazement factor is concerned, Steve remarks, “People are going to be amazed at how thin it is and how much it does.”

Marketers’ delight: After introducing the iPod shuffle, this one is another piece of art by Apple.

Tester’s note: Pros – Multi-touch display. Wi-Fi access. Excellent user interface. Easy to browse. Access to YouTube content. Slim. Cons – Can’t purchase video via WiFi. Earpiece is anything but impressive (sucks?!).

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
Now IIPM's World-Class Education... for everybody!!
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Change beckons

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The tectonic shift in power equations did not end with the auto sector. Even in consumer durables the First World has lost out on its stronghold

From 1945 till the early 1970s, American and European consumer durable players were dominating the sector globally. GE, Westinghouse, Maytag, Whirlpool, Electrolux, Thomson, Philips, Grundeig, to name a few were at the forefront of the durable sphere of the world. However, during the mid-60s Japanese players like Sony, Toshiba, Hitachi and National arrived on to the scene. But these players were treated in a derogatory manner by the western consumer durable giants. They were considered to be poor quality imitations by the western consumers. Only the less affluent could afford their products; the premium class looked down upon them. And at this juncture, players like LG & Samsung were never even heard off.

But gradually by the late 1960s a kind of shift started taking place. Japanese players started improving the quality of their products. They came up with well though-out strategic & marketing plans. Suddenly, by the early 1970s, one could see consumers’ outlook towards these companies changing. A tectonic shift in the power equation happened with the launch of the Sony Walkman, which is heralded as the harbinger of Japanese supremacy in the durable space. After Walkman, innovation was no longer the domain of just the western world. The Japanese had arrived with a bang. Sony’s rise is heralded as the rise of not only Japan but had also of Asia in this sector.

According to Jagdeep Kapoor, CMD, Samsika Marketing, “There were mainly three reasons for the shift in consumer preference from American & European goods to the Japanese – affordability, quality and the sense of novelty. And 1973 was a period when consumers wanted innovation and quality and were not bothered where the brand was coming from. US marketers failed to create adaptability between the brand and the consumer. The Japanese took advantage of this and therefore succeeded.

Till the 1990s, Japanese players completely dominated the durable space and the American & European players were nowhere in the picture. However, by early 1990s, the Japanese economy went into a tailspin, another shift occurred and this time it was the Korean chaebols LG & Samsung that took the electronics world with surprise. In just a matter of few years, they overthrew Sony and became the top two globally. The 1990s and the first decade of 2000 have been completely dominated by LG & Samsung. But by 2010, another shift will happen that has already started to make waves.

Indian & Chinese consumer durable companies are now inching their way upwards to book their seats in the top echelons of consumer durable space. Chinese players Haier (with its acquisition of Maytag) & Lenovo (with its take over of IBM’s Personal Computing Division) are creating ripples globally. Currently, Haier is the no. 2 player in the US.

Indian companies are not too far behind. Videocon has already taken over Thomson’s picture tube unit and the marketing rights of the iconic Electrolux brand in India. Despite its failed attempt to acquire Daewoo Electronics Corp. of Korea, it has not given up on its acquisition spree. The company is now making waves after announcing its intentions to buy Motorola’s handset unit. Even players like Godrej Electronics, Mirc Electronics (owners of Onida) and BPL are making strong comebacks. Undoubtedly, the next few years will see the rise of Indian & Chinese players in this space. The tables have decisively turned!

By vareen ray

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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
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RON SOMERS - Building bridges with diplomacy

IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA

RON SOMERS
Building bridges with diplomacy

Ron Somers, a known figure in Indian Business circuit has previously served in Unocal Corporation as its CEO in India where he helped develop business opportunities in India’s promising energy market. Prior to that, Ron Somers served as MD of Cogentrix Energy, where he facilitated the setting up a 1000 MW electric power project in Karnataka. Currently, Ron serves as head of the Manhattan India Investment Roundtable in New York that comprise of the top 20 Fortune 500 financial service institutions, banks & insurance companies investing in India. A seasoned India-hand, Ron will be India’s man in Washington in the coming decades. His relations with Fulbright Scholarship endowment program will also help Indian students make it big in US. In fact, Ron is known as a ‘Friend of India’ in the US business circuit. Payal Tak, one of the leading women entrepreneurs in Washington area says that Ron is “one individual who is the primary link between the US and India and is a man who has potential to change the dynamics of the relation between the two countries.”

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
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KIRAN KUMAR GRANDHI - Port of good hope

IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA

KIRAN KUMAR GRANDHI
Port of good hope
The first glimpse for many foreigners coming to India for the Commonwealth Games (CWG) 2010 in New Delhi will be its modern and swanky airport in Delhi. And working hard and fast to complete it on or before time is Kiran Kumar Grandhi, the Managing Director of Delhi International Airport Pvt. Ltd.

If the performance of Grandhi as MD of GMR Hyderabad International Airport (GHAIL) in launching the Rajiv Gandhi International Airport, Hyderabad, is any indication, the visitors to the CWG 2010 will be pleasantly surprised. The airport was built in record time and will break-even in 2-3 years. To manage the PPP between GMR Group, Malaysia Airports Holdings Berhad, the state Government of Andhra Pradesh and Airports Authority of India (AAI), Grandhi had to draw on lessons learnt from his father, GMR Group Chairman & MD Mr. G.M. Rao. Aligning the board members and the government nominees was testing for the young man, just twenty eight years old at that time. The airports segment contributes over one-third of the group’s revenue and growth, and the group plans to expand strongly in non-aero businesses, as well as expand geographically in south-east Asian countries. In addition, the company will set up a 3300 acre SEZ (Special Economic Zone) in Tamil Nadu. The group also plans to venture into the IT arena of Business Services Provisioning.

At the age of 21, Grandhi joined the family business and never looked back. His guiding principles have been perseverance and focus to deliver a quality product that meets world-class standards. Grandhi is surely going to need all this to put up a good face when the visitors start coming in for CWG 2010.

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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).


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Health is Wealth

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‘Health is wealth’, and for those million of poor people ‘health is the only wealth’. The sole principle of the Bhore committee ‘no individual should fail to secure adequate medical care because of inability to pay for it’ remains unattainable in the country shamefully even after 60 years of independence. The Bhore committee in 1946 had recommended achieving minimum 567 hospital beds, 62 doctors, and 151 nurses per 100,000 populations. Unfortunately, the country has achieved 40 doctors, a mere 100 hospital beds per 100,000 populations. Thus it results in 2.2 million plus infants dying every year, 407+ mothers die due to pregnancy related causes for every 100,000 live births even today, 540 maternal deaths per 100,000 live births, over 0.5 million people die every year due to tuberculosis et al. Major damages happen to the rural India where health facilities are beyond the reach of common people.

Unfortunately, in such a big country like India, there are about 22,400 primary health centers, 11,200 hospitals, and 27,400 dispensaries. Though private players’ penetration has improved the health facilities in India, Bharat remains deprived of it. The country of a billion plus population has around 1.5 million doctors, 0.9 million nurses. Inspite of the fact that the rate at which India is producing MBBS is very low; limited seat availability for post graduate programmes is forcing many pass-outs to choose foreign destinations. In order to produce more quality doctors, 75 AIIMS like institute should be opened across India. In order to provide million of people medical facilities under one roof, 75 Special Hospitals Zones should be started, wherein almost all facilities and equipment should be available. Moreover, these Special Hospital Zones should have almost all form of specialised department. One more indicator to add salt to the wound is inadequate health insurance coverage where barely 3% of the countrymen are covered by social or private insurance.

However, the importance of health can never be ignored. Failure to provide health facilities will simply break the very foundation of the society. Hence increasing the numbers with adequate public-private partnership will help achieve at least what Mr. Bhore recommended 50 years ago.
For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
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The ‘once upon a time’ heroes are now sliders

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Temporary sliders are the exception. These former achievers enter in their descent for the long haul

Que: What do you do about an employee whose performance has declined from stellar to mediocre? Believe me, I have tried talking to this person for several times, but six months have passed with no improvement in results and he is beginning to affect the entire team. Is it time to let him go or what should I do? Please advice. (Anonymous, Nairobi, Kenya)

Ans: Six months of warning seems a little brief for a person who once turned in stellar results, but still, we’d have to answered yes to your question. But we feel you’re onto one of the incontrovertible facts of organisational life. It is very hard to reverse the course of a slider – and that’s what you have to do.

There are other problems also: A high achiever who has checked out and before they begin to suck the team into their negative energy field and drag it down with their poor example. Indeed, this we’ve seen it time and time again: Sliders pollute. We’re not suggesting, of course, that managers dismiss all their sliders at dawn. Sometimes high performers do hit a wall and need time to regroup and restart.

Consider this, they might be working through a personal crisis, like sickness or a divorce. Or they might be bored, and sincerely need your help finding more challenge or even other difficulties in their jobs.

But temporary sliders are the exception. Typically, these former achievers enter in their descent for the long haul. And the reason is not very difficult to understand from former achievers angle:

They think and strongly believe they can. That is, they perceive their previous glory protects them. And often, they’re not wrong. Many organisations do have employees that are sacred cows: the scientist who, 15 years back, discovered the breakthrough compound upon which the company is built; the art director who once won the industry’s biggest creative award and there are more.


There’s the slider whose protective armour is the company’s largest client, which loves him for a terrific idea he had five years ago, and the other side is, the slider whose claim to fame is that she was there, taking customer orders and volunteering for midnight pizza runs, when the company was first started in a garage. So, whatever is the reason, sliders usually begin their progression imperceptibly. One day, they start contributing a little less and usually start showing up a little less too. The result is that nothing happens – there may be a few hushed conversations, but no real consequences – and so the downward spiral will keep on continuing forever.

Eventually, the sliders’ under-performance and the organisation’s lack of reaction become embedded, and the sliders land in an awkward bubble of silence and acceptance. The problem with this dynamic, of course, is that sliders are often organisational heroes, especially to old-timers, and their behaviour sets the tone. For newer employees, who aren’t as familiar with a slider’s past glories, but the impact can be even more damaging and destroying.

Sliders show them that the organisation permits employees who are doing nothing. Either way, a slider’s mood and his under-performance can really change the pace and rhythm of a business. They round off the edge you need to win. It doesn’t sound like you’re there yet with your slider, but chances are high that you will be before long. So, yes, let him go now so he can find an organisation that re-energises him. And know that in doing so, you’re sending a critical message to the organisation. When it comes to performance, the past may be nice to recall, but nothing matters like the present, so focus on that.

Que: This month, after nine long years of education in the United States, I return to my family company, where my father has asked me to lead a major turnaround. It’s a major challenge as most of the upper management team remembers me as a boy of 17. What advice can you give me to change this perception? ( Alister Aranha, Dubai, United Arab Emirates)

Ans: First and foremost, recognise that the management team that remembers you “as a boy” knows full well that you are an adult now – and you’re back to take over and lead. Indeed, they’ve been expecting your return for a long time. And most of them, if not all, are ready to fall into line and listen to you.

For that, perhaps some credit goes to your hierarchical culture. But even if you weren’t returning to the Middle East, employees at most family companies know the score. You’re the boss now.

Our advice: Do not go heavy on establishing your authority. Instead, spend your time listening to your new team, show your care, demonstrating how eager you are to hear their perspectives and engage their intellect.

Make sure they know you are truly open to new ideas. Show them you are not a know-it-all, but a learn-it-all. Look, if you’re going to turn your company around in the next few years, your new job is really very straightforward and be focused to it. You’ve got your people’s bodies. Now win their hearts and minds and that’s not difficult for you.

Jack Welch & Suzy Welch

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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
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Back to square one!

IIPM : EXECUTIVE EDUCATION

Bush performs another peace ritual in Palestine towards the fag end of his presidency even while the region continues to burn

President Bush wrapped up his Israel trip last week, visiting the Mt. of Beatitudes in Jerusalem where Jesus is believed to have said “blessed are the peace-makers” & ruins of the biblical city Capernaum on the Sea of Galilee. Quite symbolical a start is for a man who has waged two ugly wars in the name of fighting terrorism. Given the past seven years in power, nobody would doubt Bush’s ability to make rhetoric on all the issues, whether it is the domestic economy, ‘war on terror’ or the West Asian peace process. Does his recent visit to the Holy Land mean anything other than a damage control exercise organised by conservatives in the White House?

Well, before the November 2007 Annapolis peace conference, observers had issued sceptical notes against Bush’s diplomatic gambling. Invariably, American presidents in their last year in power, use soft hands in dealing with the West Asian conflict. And now, it’s Bush’s turn. After holding talks with Palestinian Authority (PA) President Abu Mazen in Ramalla, West Bank, Bush challenged the “sceptics” saying, “I believe it’s going to happen that there will be a signed peace treaty by the time I leave office.” Is it as easy as taking a decision to bomb a weak Saddam Hussein regime in Baghdad? Many experts would disagree. Speaking to B&E, the Director of Gulf Studies Programme at JNU, Prof. Gulshan Dietl said, “Bush’s political clout is weaning tremendously. This visit is a theatre set for his own personal history.

Not only that, the leaders who have to reach an agreement are domestically too weak to take any decision. So, this visit is not going to change anything in the ground.” Two months after Annapolis, it’s obvious that the US & Israel are unlikely to take any step beyond their conventional understanding of the national identity of Palestinians. All this is happening amid reports that Israel, with the tacit support of the PA, would attack and reoccupy the Gaza strip, which has been under the control of Hamas since last June. Hamas on the other side declared, “The only dialogue with the enemy will be with rifles & rockets.” If Israel is going to do that, the entire region would be plunged into a civil war. Even if the PA, by any chance, reaches a political agreement with Israel, as years go by, the number of “core issues” only goes up, not down.

B&E edit bureau: John Stanly

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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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We’ll rein in the horses, err... as soon as we find them!

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When announcing Japan’s surrender in 1945, Emperor Hirohito famously explained his decision thus: “The war situation has developed not necessarily to Japan’s advantage.” There was a definite Hirohito feel to the explanation Ben Bernanke, the Fed chairman, gave this week for the Fed’s decision to modestly strengthen regulation of the mortgage industry: “Market discipline has in some cases broken down, and the incentives to follow prudent lending procedures have, at times, eroded.” Rather, the explosion of “innovative” home lending in the middle years of this decade was an unmitigated disaster. But maybe Bernanke was afraid to be blunt. After all, straight talk would amount to a direct rebuke of his predecessor, Alan Greenspan, who ignored pleas to lock the barn door while the horse was still inside.

Apologists for the mortgage industry claim, as Greenspan does in his new book, that “the benefits of broadened home ownership” justified the risks of unregulated lending. But home ownership didn’t broaden. The great bulk of dubious subprime lending took place from 2004 to 2006 – yet home ownership rates are already back down to mid-2003 levels.

During the bubble years, the mortgage industry lured millions of people into borrowing more than they could afford, and simultaneously duped investors into investing vast sums in risky assets wrongly labelled ‘AAA.’ Regulators were blinded by ideology. “Fed shrugged as subprime crisis spread,” the headline of a New York Times report, may have been a discreet dig at Greenspan’s history as a disciple of Ayn Rand, the high priestess of unfettered capitalism. In a 1963 essay for Rand’s newsletter, Greenspan dismissed as a “collectivist” myth, the idea that businessmen left to their own devices, “would attempt to sell unsafe food & drugs, fraudulent securities & shoddy buildings.” Rather, “it’s in the self-interest of every businessman to have a reputation for honest dealings & a quality product.” No wonder he ignored warnings of deceptive lending practices.

But Greenspan wasn’t the only one. Consider the press conference on June 3, 2003 to announce a new initiative to reduce the regulatory burden on banks. Representatives of four of five government agencies responsible for financial supervision used tree shears to attack a stack of paper representing bank regulations. The fifth, James Gilleran, Office of Thrift Supervision, wielded a chainsaw. Also attending were representatives of financial industry trade associations. As far as I can tell from press reports, consumer interests weren’t represented. Two months after that event, the Office of the Comptroller of the Currency, one of the tree-shears-wielding agencies, moved to exempt national banks from state regulations that protect consumers against predatory lending.

The Democrats must aggressively make it an issue for the 2008 election. There’s hardly a more graphic demonstration of what’s wrong with their opponents’ economic beliefs.

Paul Krugman

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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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Oil never melts in water

IIPM’s 36th Glorious Year of Academic Excellence

Water scarcity may lead to doomsday, globally

Geo-politics with water is a new concern, albeit it takes the second fiddle to oil as a political tool. Fresh water is only 0.4% of the total water bodies on Earth and its availability is decreasing, by 30% to 40% over next 20 years. Middle East, though oil rich, is not water rich. This region has 1% of total water reserves, being shared by 5% of world’s population, it’s home to. The politics over water in Middle East has already started. As always, Israel is the bully in the region, depriving Jordan, Syria & Palestine of their due share of water. In 1994, Israel and Jordan signed a ‘peace treaty’ in which Israel promised to provide 50 million cubic metres of water per year. Israel changed like a chameleon, refusing to honour the treaty in 1999. Back home, there was a conflict of interest between India and Bangladesh over water sharing of Ganga. The construction of Farakka Barrage, became bone of contention between the two. An amicable agreement was reached in late 1990s to share the water more equitably. The misuse, pollution and wastage of water is making it a scarce to humans. The alarm bell is ringing, where mankind should act fast or repent.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
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Taking things easy

IIPM’s 36th Glorious Year of Academic Excellence

How much does the fuel price-rise affect the business?

A lot! If there is fuel price rise, we will definitely be forced to levysurcharge and the tickets will get costlier. This eventually results into a loss of business.

Is Kingfisher Airlines looking for ward to hedging the fuel in future. Oil prices have soared tremendously in the past?

Yes! We can go for hedging and are looking into the matter. But nothing has been decided yet, as no one knows which way oil price will go.

Any plans to cut flights?
Not taken any decision on it yet. But if the ATF price does not stabilise then we will for sure. Since there is fixed cost involved with every flight, if losses would increase due to fuel, we will be left with no other option but to do that.

According to you, what are the issues which need to be urgently addressed in the current scenario, when the sector is facing losses?

Rationalisation of fuel, reduction in the sales tax, modernisation of airports by investing more and route dispersal guidelines are the key ones. I think there should be no route dispersal guideline at all. There should be free routing for all and one should be allowed to add and reduce as many flights according to the needs commensurate with profits and losses. Compare with China we are no where near in terms of infrastructure.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
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Tamil Nadu

IIPM Ranked No. 1 B-School In Global Exposre - Zee...

It’s called the Detroit of Asia. So, what is it that makes it a favoured destination for trade among investors, explores surbhi chawla ...

Nicknamed as ‘The Detroit of Asia’ Chennai, the capital of Tamil Nadu, has always been a prime manufacturing location in the country. Even during the British era, the region was an important trading centre for raw hides and skins. Although leather still continues to be a significant part of the trade from this region, keeping up pace with the changing time there are many new avenues for trade that are coming up. In fact, today Tamil Nadu is one of the highly industrialised states of the country, has attracted over Rs.190 billion through FDIs, only in the past two years and has generated employment for nearly 140,000 people in the country.

Global companies like Ford, Renault, Nissan, Caterpillar, Hyundai, Komatsu, BMW, Mitsubishi, Ashok Leyland, Royal Enfield, Mahindra & Mahindra, TVS, et al have already set up manufacturing centres in the state. As a result it is also come up as a breeding ground for many auto ancillary companies. Moreover, the latest company to pour money into the state is Renault-Nissan, who has kicked off their operations at Oragadam near Chennai. They are expected to pump in $1.2 billion and are planning to produce about 400,000 cars a year from its facility that spans across 678 acres.

Certainly, the state had always housed many heavy engineering and manufacturing-based companies and seeing this even companies in electronic manufacturing such as Nokia, Flextronics, Motorola, Sony-Ericsson, Foxconn, Samsung, Cisco, and Dell have chosen Tamil Nadu as their South Asian manufacturing hub. “The major reason for Tamil Nadu having presence on the international map is because of the transparent and responsive government. We have got a new industrial policy and one of the objectives of the policy is to spread the impact of industrialisation throughout the state by following suitable strategies,” M. F. Farooqi, Industries Secretary, Tamil Nadu tells 4Ps B&M.

Moreover, availability of trained people also enables Tamil Nadu to contribute its bit in the IT and BPO sectors. Tamil Nadu is the third largest software exporter by value in India. In fact, software exports from Tamil Nadu have zoomed to Rs.207 billion in 2006-07 from a miniscule Rs.76 billion in 2003-04 (NASSCOM).

Coming back to industries, “this year alone 14 MoUs have been signed till now and another 14 MoUs are yet to be cleared. Tamil Nadu government has set a target for industrial investment in 2008 at Rs.300 billion. What’s more, the state accounts for 33 Notified SEZs. Besides, 59 SEZs have got formal approvals and 12 projects have got GoI’s in principle approval,” avers Farooqi enthusiastically. Even, according to CMIE, in May 1996, investment in pipeline for Tamil Nadu was Rs.906.5 billion, in June 2006 it was 1,735.29 billion; and by March 2008 it shot up to 3,487.04 billion. In the last two years alone the investment has grown by over 100%.

Although people would normally not associate tourism with Tamil Nadu, still the state has been taking initiatives to promote it. “The year 2006 registered a remarkable increase of 21% in tourist arrivals in Tamil Nadu. In 2007 the state received 5,235 million tourists, which was an all time high growth of 29.2%. It was due to many new initiatives like ‘Virunthinar Potruthum Virunthinar Potruthum’ (Guest Care) campaign policy blitz-krieg, cultural festivals et al”, V. Irai Anbu, Secretary, Tourism and Culture shares with 4Ps B&M. To boost the tourist inflow in the state, the government is also looking at new and emerging forms of tourism like Eco-Tourism and Rural Tourism. The tourism department is also creating awareness by conducting commercial and advertising campaigns. “To promote local guest care a lot of word of mouth publicity is being done,” M. Rajaram, Commissioner of Tourism tells 4Ps B&M.

Certainly, the state has always remained at the helm when it comes to industries. However, the major bottle neck that is hampering the pace of industrial development in the state is infrastructure. But once taken care of, this Detroit of Asia certainly has no stopping it!

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
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The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
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domain-b.com : IIPM ranked ahead of IIMs

Abhijit Awasthi, National Creative Director, O&M

IIPM Ranked No. 1 B-School In Global Exposre - Zee...

Ram is a young guy and he is one of those rare people who always try to do something different or something original. I think what helps Ram is his slightly different sensibilities and that he is a little more edgy in his thinking and thus certain pieces of his work shine quite brightly. He’s got a restless mind just like a lot of creative guys – they will never be satisfied with their work and will always want to try something different. He’s done an absolute fantastic job for the Neo Sports campaign, which has the tagline – ‘Get used to tension.’ I think the campaign is absolutely smashing!

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

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Are they heading for doldrums?

IIPM Ranked No. 1 B-School In Global Exposre - Zee...

Fundamentals & technicals are words of the past, it’s the sentiment that is driving the market back & forth now, say Manish K. Pandey & Gyanendra Kashyap

It hasn’t been long since January 10, 2008 - the day when the Indian benchmark index Sensex touched its lifetime high of 21,206. The Sensex, many predicted, could easily cross 25,000-points mark, in no time, as the bull moved ahead with rampant optimism. Nothing seemed to bother it. But a deep cut of 1,408 points (the biggest intraday fall in the history of Sensex) on January 21, 2008 and the raging bull was at its knees. The morose pessimism could be seen among the investors too as the Sensex dropped to an appalling low of 15,332 the very next day (on January 22, 2008). And since that day it’s nothing else but skepticism, ambiguity and apprehension that’s ruling the market along with bears. The result - Sensex crashes by over 27% (since January 11, 2008) with almost every major listed company losing anything between 30% and 40% of their market capitalisation till date (March 25, 2008).

From fears of a recession in the US to Reliance Power mega issue (that sucked out a whopping $180 billion from the market), from rising inflation to escalating commodity and bullion prices, from heavy selling done by FIIs to anything and everything under the sun, got its share of the blame. But with domestic factors largely been taken care of, as of now, the market doesn’t seem to stabilise. Then what’s it now, if it’s none of these? “Skepticism is still there” says Satish Kannav, Senior Analyst, Arihant Capital Markets. “Certainly it will take time before confidence returns,” he adds on. So is it sentiments that have taken over all fundamental, technical and economical factors? Yes, to some extent (or should we say totally).“Market is driven by fundamentals but behavioural science puts premium to sentiments. While long term fundamentals become hazy, shorter term risk aversion increases. Naturally we are seeing this extremely negative sentiment in the market,” agrees Amitabh Chakraborty, President (Equity), Religare Securities. “90% sentimental, 10% fundamental,” another Delhi based analyst sums up the current swing in a simple phrase.

Let’s look at some recent examples to have a fair understanding of this so called ‘bear’ mindset of wary investors. On March 17, 2008, as the news filters in that JP Morgan is buying the beleaguered investment bank Bear Stearns for a mere $2 per share ($270 million in total) – a price which is about 15 times less than its ongoing trading price in the stock markets – the Sensex tanks over 951 points. The very next day the US policy makers further slash the Fed rate by 75 basis points (bps) and the Indian bourses bask in the glory of the same next week. “Greater integration of Indian markets and the economy through increased capital flows has made the Indian market more susceptible to global cues. So it may not be wrong to infer that global factors especially the US subprime led fears of a global recession have been the key reasons for this increased market volatility,” avers Sachchidanand Shukla, Economist with Enam Securities.

Well, blame it on the ‘foreign hand’ if nothing else. It is evident that despite all the brave talk on our part of robust and sustainable growth rate, domestic money et al, the foreign institutional investors (FIIs) still remains the most important driver of our markets as they account for 17% of the total equity turnover. So, it’s them that seem to face the obvious brunt. Questions put forth to a cross section of analysts reveal that the FII pullout has been at the main reason for the more than often bloodbath at the bourses. If we look at the numbers, their claim seems logical. For the month of January and March this year, FIIs net investments in the Indian stock market stood at a negative Rs.130.35 billion and Rs.22.76 billion (till March 25, 2008) respectively. So it’s this bunch of shrewd investors that seem running the market as of now (or always!).

But then, in the past, there have been several occasions when FIIs sold but the domestic investors ensured that the indices went up. For instance, on October 23, 2007, FIIs pulled out a massive Rs.12.1 billion, but the benchmark index rose by 4.9%. In the same way Federal rate cuts too haven’t had a consistent impact on the bourses. The latest being the rate cut on October 31, 2007 which took the Sensex down by 0.5% instead taking it up as it’s now. The same is true with the domestic issues too. On February 11, 2008, the Sensex crashed by 834 points on inflation worries as it went past 4%. However, it was the same indicator which stood firm when inflation was hovering around 6% during March last year.

The reasons are simple. “Over the last few months the markets have been plagued by a slew of bad news, both domestic and international, which has unnerved a lot of investors. Further, the events have also increased the confusion with respect to the direction that the markets would take hereon and hence it’s not surprising that they are reacting to all this and are becoming more volatile,” explains Hitesh Agrawal, Head, Research, Angel Broking. But then an imminent yet persistent question naturally crops up – how long and at what levels?

“We would be happy with about 12-13x forward Price Earnings (PE) multiple, given the extreme pessimism in the market. That brings us a range between 12,350 and 13,300 in short term. Longer term, fundamentals should prevail, and a 15-18% CAGR from a base of 13,000 Sensex probably takes us to 30,000-level in 3-4 years time,” says Chakraborty with great optimism. Although there is no way to foretell when the sentiment will turn but the ongoing bear phase has definitely made the valuations more realistic (PE, which was pegged at 27.67 at the start of 2008, has come down to 19.16 as on March 18, 2008). So, it shouldn’t come as a surprise if one sees the bull back in action shortly. But until then, let’s dance to the bear tune.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

For More IIPM Info, Visit below mentioned IIPM articles.
4Ps Power Brand Awards 2007
When IIPM comes to education, never compromise
IIPM, GURGAON
IIPM - Admission Procedure
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!