IIPM Education: January 2013

Wednesday, January 30, 2013

At the mercy of the State

Not much has changed for India Inc. since the UPA took the power seat in 2004. Genuine business interests continued to suffer, analyses VIRAT BAHRI

It would be wrong to say that the UPA regime was not one of great transformation. And their claim to fame (or the opposite!) in this regard is not just the landmark Indo-US nuclear deal. One entire industry revved up its engines, took off with elan, and all but crash landed in the course of their term. Yes, we are talking about the aviation industry, an industry that decisively led the rest of them in gasping for breath, for the players were bleeding red much before Lehman Brothers actually sounded the alarm bells that shook the world.

Surely, the first question that comes to mind is: What did the government have to do with that? Indeed, as Binit Somaiya, Regional Director, CAPA rightly points out, “A large part of the responsibility for the revival of the aviation industry rests with the industry players themselves and not with the government.” But then, there were critical support systems needed for the industry, which the government failed to provide. In particular the lack of an Airport Regulatory Authority was a major unresolved issue, which, according to Binit, can be quite unnerving for investors; whose role was critical for the industry’s growth. Allegations of corruption in the bidding process for airports made matters only worse. Moreover the horse-before-the-cart philosophy prevailed here as well, as airport infrastructure lagged miserably behind schedule, as players went ballistic on expanding their fleet and routes.

The aviation industry only highlights the glaring twin opportunities that the UPA government sorely missed throughout its tenure, when it comes to India Inc. – to make the industry more competitive through genuine support systems and to minimise the incidence of crony capitalism, that is the sordid saga of unfair state patronage of Indian business.

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2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)

Sunday, January 27, 2013

Insiders make more sense...

Chandrasekaran is perhaps the right person to take over the baton of TCS from Ramadorai

Ramadorai joined Tata Consultancy Services (TCS) in 1972 as junior engineer. He was appointed as the Chief Executive Officer of the company in 1996. Later in 2004 he also became the Managing Director of this Tata Group company. He holds a Bachelor of Engineering in Electronics and Telecommunications from Indian Institute of Science, Bangalore and a Masters degree in Computer Science from the University of California. He has more than 36 years of experience and has received Padma Bhushan in 2006 for his contribution towards the development of the IT industry. He has been instrumental in building TCS to a $5.7 billion global software and services company and he is recognised amongst other influential IT leaders in the world.

N. Chandrasekaran, the Chief Operating Officer of TCS is more likely to take over the mantle from Ramadorai. He has leadership qualities needed to ensure success in the global environment, including global aptitude, long-term perspective, skilled communication and literacy in technology. Under his leadership TCS ventured into new markets, including Europe, China and Latin America. He served as Global Operations Director, Executive Vice President, Global Head of Sales & Operations and Head of European operations of Tata Consultancy Services. Chandrasekaran was also named by Consulting Magazine in the USA as one of the top 25 most influential consultants in the world.

His career path travels a similar path as that of Ramadorai. He holds a Bachelor’s degree in Applied Sciences & a Master’s degree in Computer Applications. He started his career with TCS in 1987. By and large successful companies believe more in the tried and tested abilities of home grown executives to lead the organisation, having a clear cut succession plan well in advance. Chandrasekaran has all the ingredients in his leadership skills to take TCS to a new & higher orbit of success in the days to come.

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Friday, January 25, 2013

Virgin by choice!

The most reckoned tourist destination in the tropics is on the south-western borders of the Caribbean Sea. Its legendary global reputation is not solely based on immaculate sand, tropical climate, and crystal-clear waters, but also on the most racially diverse, ethnically rich, and creatively vibrant society amongst the islands.

United States Virgin Islands, an archipelago belonging to the family of Virgin Islands is a physically distinct area of the US. Saint Croix, Saint John, Saint Thomas and Water Island are the main islands and even have popular names suiting their character: "Twin City" (St. Croix), "Rock City" (St. Thomas), "Love City" (St. John), and "Small City" (Water Island). All islands have a beautiful mixture of races with African descendents forming the majority. Although the prominent language is an English-based Creole since the 19th century, the islands are much more receptive to English language than any other.

The US Virgins offer a superior and gratifying vacation through astounding national parks, secluded beaches, exotic tropical forests and authentic campgrounds. They don’t just look good, but also keep one busy through thrilling kayaking, hiking, ecological tours, world-class diving, superb sailing, duty-free shopping, local crafts, island art, sunbathing, fine dining and rocking nightlife. Phew!

St. Croix, the biggest of them all, clings to the Buck Island Reef, the unique United States National Monument, which is underwater. The reef’s two major underwater trails – Turtle Bay Trail and East End Trail, can be explored through numerous boats which operate off the dock in Christiansted. It also has a cautiously restored Fort, built in 1774, to protect the town's harbour which has intriguing and photogenic battlements and dungeons to allure tourists.

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Monday, January 21, 2013

The race to the bottom

THOUGH LATIN AMERICAN ECONOMIES LIKE ARGENTINA, VENEZUELA AND COLOMBIA HAVE SHOWN SOME RESILIENCE AGAINST THE OVERRIDING DOWNTURN IN THE RECENT PAST. BUT, WITH HUGE SOVEREIGN DEBTS AND THEIR GROWING INCAPABILITY TO SERVICE THEM AT A STANDARD RATE, THEY STILL STAND ON THE VERGE OF COLLAPSE, FEELS MANISH K. PANDEY…

They say easy money always fuels economies. Yes, it does, but can it forever? Latin American economies believe so quite passionately, and in their speedy race to the bottom based on a foxy premise, are on the verge of collapse. A closer look at the numbers and the state of utter economic shambles could well stun the reader! While with CPDs (cumulative probabilities of default) of 55.49% and 49.72%, Venezuela and Argentina respectively capture the second and third slot globally in the latest CMA rankings (of nations who have the highest probabilities of default), Colombia with CPD of 10.15% too has found itself a place in the list of countries who are steadily heading towards a default situation.

No doubt, a massive government spending in the first half of 2009 and a recently improved global economy have so far prevented these economies from a deeper downturn, but then how long? In fact, case by case examination of these three Latin American economies only suggests that they are heading towards a massive fall, smiles and conferences notwithstanding!

Though with a new debt swap in place, Argentine President Christina Fernandez de Kirchner plans to end the eight-year-long muddle that started from a massive default in 2001, but then, most of it seems inconsistent with the reality of macroeconomic indicators, and in some cases even ridiculous. To put it flatly, Argentina’s overall fiscal deficit has reached 2.2 billion pesos in September 2009 compared with a 2.2 billion peso surplus a year ago. In fact, September’s fiscal deficit is the largest so far this year, which guarantees the government will post its first annual deficit since 2002. So, in such a scenario, there is hardly any chance that the economy will escape the forthcoming financial tornado.

While Argentina’s fiscal spending grew 28.5% yoy in September and 27.6% through the first nine months of 2009, the total fiscal revenues increased by just 7.5% and 11.5% during the same period. Tax revenues alone (excluding social security and other non-tax receipts) have fallen by 1.8% in the first nine months – a drop of over 15% in real, inflation-adjusted terms.

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Sunday, January 20, 2013

BEAUTIFUL BOUNTIFUL LOFOTEN

Situated 123 miles north of the Arctic Circle, the Lofoten islands, are a 118-mile-long archipelago of small fishing communities. The area is characterised by a narrow coastline, steep mountain formations and strong tidal currents. Breathe in pure air and take in infinite shades of green and yellow at this steep island. The skies are filled with cuckoos, curlews and eagles while the ground bursts forth with wild flowers and berries and the water churns with migrating cod and salmon. The sun shines over the beaches of white sand, cosy rorbus and crystal-clear waters.

Known for excellent fishing, picturesque villages and whale safaris, Lofoten is better explored on foot. Watch out for the killer whales as you go rafting in the Trollfjord. Once in Lofoten, witness one of the most spectacular light constellations – The Northern lights or get transported back to the Viking age at the Lofotr Viking Museum. Experience midnight golf at the Lofoten Golf Links course; with its proximity to the ocean and rugged mountain terrain, it promises a great golfing experience. Enjoy mountaineering with panoramic views or play fisherman for a day. At Lofoten, the sun never sets!

The seven principal islands of Lofoten are Austvagoy, Gimsøy, Vestvagoy, Flakstadoy, Moskenesoy, Vaeroy and Røst. Spend a day bird watching at Rost. Situated at the tip of Lofoten, the island of Røst, is home to the largest number of nesting birds in Norway. Climb up to the Skomvaer lighthouse, which is the final outpost overlooking the Atlantic Ocean. Hop on a boat and tour through Moskstrommen, for a date with the natural elements. Don’t forget to visit Refsvikhula cave, a gigantic and awe-inspiring coastal cavern which has about 3000-year-old cave paintings sketched on its walls.

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Friday, January 18, 2013

And it all began with a wish, minus the genie!

B&E’s Pawan Chabria meets up with some individuals who opted to go barefoot in search of success, rather than lazily stepping into the comfort of guaranteed, cushioned golden shoes offered by well set organisations...

Often labelled as the land of agriculture and farmers, India has also surprisingly achieved many a milestone when it comes to churning out new-age entrepreneurs. If truth be told, then gone are the days when every fresh MBA-labelled individual was found salivating for those temptingly fat pay packages offered by multinationals; rather these days, many are much more enthusiastic about registering a start-up, and moulding it into a new capitalistic force. B&E presents a handful of such real-life tales of MBA entrepreneurs who either shunned the very sight of a 9-to-5 job from a distance or those who grew tired of the luxury and convenience offered by a follow-the-clock-to-the-hilt profile.

Anuj Guglani, CEO of Ace Associates, worked for auto majors like Honda (for 3 years) and GM (for 4 years) after completion of his MBA course from IIT Delhi, before starting his own venture. He was involved at various middle-management levels during his stint with Honda, and was handling the showroom workforce training for GM before he left his job, only four months after his marriage. That was of course not an easy decision to make. Anuj smilingly recollects, “There was a lot of pressure... but my family supported me all the way.” When asked about how much his management education had helped him in his venture, he explained that those two years played a critical role in ensuring the success of his company today. “MBA education is very important for starting or handling a business today. It cultivates a vision and completely changes the way your thought-process operates,” he adds. Anuj started his dream run with little money (as he had spent almost all his savings on a Switzerland trip with his newly-wed wife), but immediate success within a short interval greatly improved his cash-position; he explains, “Since I was lucky to get a client like Mitsubishi just days after the launch of the business, it really took no time to break-even.” In fact, Anuj has today diversified into areas like social networking portals with the newly launched World Auto Forum (for auto-lovers).

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Source : IIPM Editorial, 2012.

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

For More IIPM Info, Visit below mentioned IIPM articles.
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)

Thursday, January 17, 2013

Obama’s secret weapon!

Countries like Iran and India have strangely not realised the importance of Rahm Emanuel; it is time...

Rahm Emanuel is a name that irritates many more than it intended to in the first place; some say because the man shoots first and doesn’t even ask later. That Obama is using Rahm to straighten numerous issues in America’s foreign policy – be it for Afghanistan or Israel or Arabs – is now well known, but what might not be known is that it was William Daroff (who directs the Washington office of the United Jewish Communities or the UJC) who first called Rahm Emanuel “Obama’s secret weapon.”

For the uninitiated, ‘Rahmbo’ Emanuel began his political career raising money for several Democratic campaigns and later in 1991, became a fund-raiser for Bill Clinton’s Presidential bid. A few years later, in 2006, he was central in devising the Democratic takeover of Congress. Currently, Rahm is Obama’s Chief-of-Staff – a position widely accepted to be the second most powerful in the US government – and although Obama may not like the inference, Emanuel is believed to be the cerebral force and pusher behind Obama’s ‘do-everything-at-once’ strategy. From supporting and promoting Obama’s stimulus package plan, to helping overhaul the healthcare bill and getting it passed, Rahm has worked fanatically for most of Obama’s initiatives, lobbied with numerous research groups, fought for the bailout, the budget bill and much more, not just for the sake of the nation, but as Obama states, for a friend.

Both Obama and Emanuel’s political legacy can be found in Chicago. They have known each other since their early political career. But the truth behind their personal friendship perhaps became starkly clear to the world only after Obama’s official speech, which he gave after inviting Rahm to be the Chief of Staff this year, “I am pleased to announce that my good friend, Congressman Rahm Emanuel, has agreed to serve as my White House Chief of Staff...

Read more......

Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)

Wednesday, January 16, 2013

Singapore, here we come!

Comparisons of national GDPs with respective salaries of heads of state reveals some interesting facts

Much is being discussed and debated on the issue of who gets to decide on the CEOs’ remuneration in a listed company. This is true especially in US, where shareholders felt cheated by the recession and excesses by CEOs; both in terms of pay and in the way they took excessive risks to take their companies, and shareholder wealth, to newer lows. So if it’s all about taking accountability to the highest level, it does make sense to look at remunerations of the ultimate CEOs – the heads of state. After all, their role is far greater than any of the corporate leaders.

Voters in a democracy don’t exactly have a say on what their head of state gets, in fact, many of them may not have even seriously considered that an issue. But then, is there a pay to performance link at work? We decided to check for a correlation between remunerations of some heads of state with GDP performance of their respective nations; and came up with some interesting revelations.

To start off, the US shows greater parity. The concept of compensating the President took shape during 1790s in the US. In as early as 1789, the basic salary of the US President was $25,000 annually, the value of which in 2009 dollars is $566,000 when the GDP of the country was over International $527 million (the currency being used at that time). Exactly 84 years later, in March 1893, the basic salary of the President was doubled to $50,000, value of which in 2009 dollars is $865,000, while the GDP of the economy grew by 187 times. Salary was again hiked in 1909 to $75,000, the current value of which is an astonishing $1,714,000; even as the US became the second largest economy of the world after the UK, with a GDP of International $517.38 billion. The salary was revised to $100,000 in 1949, even as US became the largest economy of the world with a GDP of about International $1,456 billion. The salary was further raised to $200,000 on Jan 20, 1969; while the size of the economy nearly doubled. And when the basic salary was given its final boost – to $400,000 on Jan 20, 2001, the size of the economy increased to $10.29 trillion. Since then, the economy has not done quite well, with the current GDP at $13.84 trillion, and interestingly, the basic salary of the President has remained the same.

Read more.....

Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)

Tuesday, January 15, 2013

Roach’s good face!

Why you have no idea what’s going on in the Arctic and the Antarctic!

When it comes to environment and environmental concerns, nothing can beat the global warming issue. Global warming already contributes to anything above 150,000 deaths and five million illnesses annually, as per research reports by the World Health Organisation and the University of Wisconsin. But then, as they say, there’s a good face to every roach that lived. Since civilisation, the Arctic and the Antarctic were the only two regions that did not experience any kind of colonisation. How much longer, you ask? We say, a question too late. A few countries are all set to turn the tables in their favour and commercially exploit this melting issue. With global warming intensifying, new resources and new avenues of commercialisation are gradually getting exposed. So what, you ask again – well, weren’t countries already studying penguins in these caps? Wake up Rip, you really have no idea what’s going on!

The North Pole first. The Arctic icecap is rapidly melting, thus opening up access to massive natural resources and creating shipping shortcuts that could save billions of dollar. It is estimated that over 50% of the ice cover in the Arctic region has disappeared since the last 2-3 years, resulting in the opening up of new sea routes. Countries like Russia, Canada, Denmark and Norway are leaving no opportunity to claim their control over this area. Since August 2007, strategic bomber patrol flights (predominantly Russian) are a regular affair over the region. Not for anything else, but to keep an eye over the activities of other countries over this region. In the same year, in 2007, Canadian Prime Minister Stephen Harper also showed his interest in sending naval patrol vessels to Arctic and setting up a training centre along the Northwest Passage. He further announced the building of a deep-sea port (at Nanisivik) and a military base (at Resolute Bay). The very next year, in 2008, Canada conducted its largest military exercise ever. A few months back, in July 2009, Denmark’s MPs approved plans to set up an Arctic military command and task force. Likewise, Norway is also considering exploration for oil and natural gas in its Arctic volcanic island of Jan Mayen.

If Russia thought it had had a head start, today, the region is covered by strategic bomber flights of Canada, Norway and Denmark too – of course, with the Russian navy patrolling the waters.

Read more.....

Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)

Licensed to...

Where are the PSC regulations?

In the last few decades, specialised private security companies (PSCs) have come a long way and have increasingly assisted police and military in almost all levels of security. Their legacy is quite deep – private security companies assisted the British even during the US war for independence. More recently, the malaise caused in Iraq has opened up a new chapter, thanks to Blackwater – the largest PSC handling operations then.

A former Blackwater employee made a series of damning allegations against Blackwater’s owner Erik Prince in August, 2009 in a federal court in Virginia. As per this former employee, Prince “views himself as a Christian crusader tasked with eliminating Muslims and the Islamic faith from the globe” and that Prince was personally responsible for certain killings in Iraq. Although the judge has been sceptical about the claim, Prince has been accused of deploying medically unfit personnel for carrying lethal weaponry, just for earning more money. Blackwater has gone through several rebranding process (it’s now known as Xe Services) and has created more than a dozen affiliate companies (some allege, to transfer funds).

Read more......

Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)

Sunday, January 13, 2013

SMES: STOCK EXCHANGE

DSE’s SME exchange is worthy of applause, but they have to avoid becoming OTCEI

While getting funds is the problem for SMEs, the biggest road block for VCs and PEs in funding SMEs is lack of appropriate exit routes. And that is what the new exchange should provide. Avers K. G. Alai, Chief General Manager, SIDBI, “The entry norms should be relaxed with low listing and maintenance cost, and of course, investors interest must be safeguarded. Further, it must be ensured that the market has requisite liquidity.”

Certainly, if investors find it tough to dispose their holdings, that will be the biggest repulsive factor for them. And lack of investors will straight away bring the new SME exchange at par with OTCEI. That’s not all. Warns Vijay Chandok, Global Head – SME, ICICI Bank Ltd., “Like all cricketers on Indian streets do not get a place in Indian team, not all SMEs are worth listing.” For this the exchange need to check the quality of issuers to keep investors safe, and that necessarily means that the pool of SMEs DSE is looking at will shrink by a good margin.

Before opening up the exchange on October 2, 2009 (as planned) DSE must look into the fact that if AIM is successful today, then LSE’s direct support to the exchange has a bigger role to play in that. Though, MCX’s recently launched stock exchange MCXSX is a partner in this venture, considering their limited experience in the arena, DSE will need an active support from the bigger brothers, NSE and BSE. After all, it’s an opportunity that, if grabbed properly, can bring windfall gains for all and sundry.

Read more....

Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)

Thursday, January 10, 2013

Fast food chain spread its reach in the indian market

there was hardly anything ‘fast’ in the manner in which this fast food chain spread its reach in the indian market. but mcdonald’s would still look back at the past 19 years with satisfaction, for indians have accepted them quite well

So the decision to go global was taken in the 1950s, but India came on their radar four decades later. Not only that, it took them six years to get ready with an investment of Rs.4 billion for deploying a robust supply-chain model. It was crucial in a country where agriculture was aimed largely towards end consumption at Indian homes and was not tuned to serve the needs of the processed foods industry at that time. Unlike other players who opted for the subsidiary model, McDonald’s resorted to roping in Indian partners for a franchisee model. The company eventually roped in two franchisee partners, and selected Vikram Bakshi and Amit Jatia for North East and South West regions respectively. Both Vikram Bakshi and Amit Jatia, JV partners of McDonald’s in India, avow that initially they had to go through many rounds of meetings and appointments to convince McDonald’s of their eligibility. Of course, that was followed by rigorous training of the Indian management on McDonald’s core values, which it wanted to standardise across all its outlets in India. Then from 1990-95, work began on initial market testing, followed by a research across four major metros in India; and then on the elephantine task of setting up the supply chain. “We wanted to have everything in place before we opened our first store in Delhi,” explains Vikram Bakshi, MD of McDonald’s India (North and East).

But initially, the company failed to cater to the specific tastes of the Indian consumers and rolled out mutton products (which it later withdrew). Moreover, there was the challenge of ensuring that every big Mac outlet across the country serves the same taste. Then the perception that the oil that the company uses contains beef also led to a phenomenal negative publicity that made the Indian market look like a huge load of quicksand. The challenge persists even today. Still, keeping a balance between vegetarian and non-vegetarian food has ensured that McDonald’s was able to win quite a few Indian hearts. They have even gone to the extent of inviting customers at any point of time behind the counter to see how the preparations for vegetarian and non-vegetarian items are done separately.

Read more.....

Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

Bubbling inside

More trouble lies ahead in China as scores die after clashes between ethic groups in Xinjiang

In an outburst of fury in China, Uighurs, a Muslim ethnic group with Turkic genesis, clashed with Han Chinese in Urumqi, the capital city of the western province of Xinjiang. A mass demonstration by ethnic Uighurs turned into a full-blown street clash when the police and Han Chinese watching protest were smashed by the horde. This protest was called in the wake of last month’s violence when a faction of Uighur workers in southern China was whacked to death by Han Chinese. Meanwhile, Chinese establishment have detained almost 1,500 people and locked down the capital of Xinjiang province as the toll of dead mounted to 150 people and at least 800 injured. As this report went to prints, protests spread to other cities as well. Meanwhile, the local head of the Chinese Communist Party was reportedly seen pleading weapon wielding mob on road with folded hands. The situation is so bad that President Hu Jintao abandoned the G8 summit in Italy to deal with the lethal outburst of ethnic turmoil.

Xinjiang—on record an autonomous province in China’s west—was sparingly inhabited till 90’s and boasted of huge reserves of oil, gas and minerals. Formerly a key shipment point on the old Silk Road linking China to Europe, the province was briefly independent during late 40’s when it was named East Turkestan. In the 90’s Chinese government encouraged the migration of Han Chinese, who now account for half the population of the province.

Read more......

Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

Tuesday, January 8, 2013

A burden with legacy, and a burden without...

Global case studies of struggling brands show that similar to the concept of a PLC (Product Life Cycle), revival strategies must depend on the stage of life cycle that the brand is in as well as the real reasons why it has lost its connect with its customers. When properly applied, brands can survive many PLCs

On November 29 last year, American Airlines had two key status updates – a change in its CEO and a declaration of bankruptcy. Once the country’s largest airline and harbinger of innovations like the frequent flyer program into the industry, American faces a host of issues; as its competitors United Airlines and Delta have grown larger, and the company has a hard time filling seats. On the other hand, it faces the second whammy of high labour costs, and while declaring Chapter 11, the company admitted that the difference in cost structures with its competitors is untenable.

“I never watch that sort of thing. Never.”
New CEO Thomas W. Horton plans to increase revenues by $2 billion in savings and $1 billion in extra revenues every year; the latter through joint business agreements with major airlines. The critical aspect he seems to be ignoring is the brand perspective. He made the above statement to the Associated Press when asked about satirical online videos of AMR (American’s parent company) top management.

By marketing logic, Horton needs to know everything being said on the web, and on the ground, for employees of the airline have also formed pickets on airports of late. Such bad news travels fast and far. Already, American has been voted among the worst three US airlines with respect to on time performance for five years in a row by the Middle Seat scorecard in the Wall Street Journal. Traditional US airlines in general are doing a bad job of retaining brand equity compared to low cost airlines. As per the J. D. Power North American Airline Satisfaction Study 2011, American ranks 4th among traditional carriers with a score of 656 on overall satisfaction, while the lowest rated low cost player is Frontier Airlines with a score of 688. Traditional airlines have suffered most with passenger perspectives on costs and fees. Interestingly, American Airlines started the policy of charging customers a fee for the first checked in bag. After the cost cutting that happened post 9/11, airlines became increasingly stingy on various customer metrics. Some of them, including American, stopped taking customer complaints on lost baggage by phone and gave e-mail addresses.

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Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

Monday, January 7, 2013

5ES OF ADVERTISING

How advertisers are redefining the 5Es of advertising

Recently, Gerard J. Tellis, a professor and director of the Center for Global Innovation at the Marshall School of Business, University of Southern California, undertook a research with Raj Sethuraman and Richard Briesch, through which they attempted to establish the impact of advertising on market share. They analysed 750 cases between 1960 and 2008 across brands, product categories and countries. The results were startling. Half of the ads were ineffective, the average effect of advertising was half as much as previously believed – they found that a 1% increase in ad expenditure results in a 0.1% increase in market share. They concluded that while advertising remains a powerful tool, its impact has declined over the years.

When you take an analytical view, all successful advertising campaigns are a result of combining one or more (definitely, the more the merrier) of the five essential elements – Engage, Entertain, Educate, Enrich & Empower. The first three link to how the creative is designed and executed to keep customers involved while driving home the right dose of information. The last two relate to ensuring that the customers realise and retain in memory how the product or service can give them a better experience and also enable them to make some aspect of their life better. In the past few years, while advertisers have retained their obsession with the 5Es, they are redefining them quite decisively in tune with the times.

ENGAGE:

How well is your advertisement able to typically involve the audience and incite a call for action? The penetration of the Internet and rise of convergence has changed the dynamics of media consumption. If you look at the number of patents that researchers are filing in US pertaining to quantitative, statistical and complex algorithms for media planning, it becomes evident that human judgement is no longer reliable. There is just too much data. This is changing the very vehicles that carry the message. Depending upon their marketing budgets, companies are now spending millions on buying audiences on the web. A study undertaken by MediaMath in association with KN Dime store showed that “audience buying raised brand awareness by 26% and brand preference by 39% compared to unexposed consumers.” According to recent statistics, the information consumed on the Internet every day is enough to fill 168 million DVDs. 294 billion e-mails are sent every day and 2 million blog posts are written.

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Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.