Showing posts with label IIPM Ranking. Show all posts
Showing posts with label IIPM Ranking. Show all posts

Monday, June 3, 2013

The past catches up

The inaction on the part of Rajapaksha Government assured that Sri Lanka faced a far tougher challenge at Geneva this year than it had faced anytime before

A couple of weeks ago, the Palais des Nations in Geneva, which is no stranger to diplomatic dramas, witnessed probably the most stunning of them all in the recent years. After the screening of 'No Fire Zone', a documentary exposing the war crimes committed by its forces, the Sri Lankan ambassador to Geneva, denounced the movie and censured the UN human rights council for having given the permission to screen it in a UN building. Generally, after such speeches, the representatives and ambassadors of the friendly nations applause. Only in this case, there was a stunning silence. Considering the gathering also had substantial numbers of diplomats who were in Geneva to participate in the current session of the council that is all set to discuss Lanka's human rights record, the silence mush have been heard till Colombo.

This year proved to be the toughest for Sri Lanka as far as the diplomatic efforts are concerned. Increasingly, and more so since the last such vote took place, human rights organizations have dug up information and evidence that indicates towards possible involvement of Sri Lankan Armed Forces in committing gross violation of human rights amounting to war crimes.

It has also been suggested variously that during the most intense and final days of the war, the forces failed, either inadvertently or deliberately, to differentiate between combatants and civilians. Similarly, documentary evidence in terms of photos and footage, subject to its authenticity, also confirm that many of whom surrendered, including children, were summarily executed. However, the government of President Rajapaksha has so far refused to look into the charges. Organization such as International Crisis Group have damned the government for not even ordering a credible looking committee to do so.

The criticism is particularly severe among Tamil groups inside Sri Lanka. Tamil National Alliance (TNA), a coalition of Sri Lankan Tamil political parties which dropped the demand for separate Tamil Eelam for more regional autonomy, has time and again asked the government to take the matter seriously but for no avail.

“When the Channel 4 footage was first released, the Government of Sri Lanka vigorously opposed it. Yet the government-appointed Lessons Learnt and Reconciliation Commission too recommended that it should be investigated to ascertain its authenticity. We will co-operate with any investigation to uncover the truth. It is the truth that will lead to any kind of meaningful reconciliation and that is how the on-going violations will stop,” said M.A. Sumanthiran, a Sri Lankan Tamil leader and a TNA parliamentarian.

However, the international community has started showing signs of restlessness and is expected to come out more solidly against the Lankan position than they did last year. In the previous resolution, the US, also the sponsor of it, had to cajole some of the weak African, Asian and other Third World Nations to fall in line. This year, it did not so much as to move a finger.

Meanwhile Journalists for Democracy in Sri Lanka (JDS), a group that advocates the investigation of war crime, has claimed that it has photos indicating Balachandran Prabhakaran, V.P. Prabhakaran's 12-year-old son, in the custody of the army, alive and well just hours before his violent death. The authorities have maintained that the boy died in an exchange of fire between the forces and LTTE fighters. On the other hand, the photos that were taken at 10:14 AM and 12:01 PM on the day of his death, initially show the boy well and having chocolate, and then dead with five visible marks of bullets on his body, respectively.

“Certainly Sri Lanka’s legal framework has permitted and indeed, actively encouraged crimes such as extra judicial executions and enforced disappearances. In view of state complicity in acts of terror, it was not surprising that when national and international pressure intensified in regard to taking action against perpetrators of abuses during the second JVP insurrection, good investigations and prosecutions were rare and, if at all only against junior officers,” asserts Kishali Pinto Jayawardene, a Sri Lankan political analyst.

The government had realized that Geneva was a lost cause but was still trying to save some face. After initially deciding to send a low key delegation for the meeting, President Rajapaksha changed its mind at the last moment. Less than a week before the Council session was about to begin, the President asked Mahinda Samarasinghe, who also happens to be his Special Envoy on Human Rights, to lead the delegation instead of Ambassador Aryasinha, who, although a good diplomat, is considered a lightweight. However, the delegation consisting of 10 members was still small compared to the 50 members leviathan sent for diplomatic dealings last year.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
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

ExecutiveMBA

Saturday, May 11, 2013

Be kind on the ‘ney

Stringent laws and complicated procedures are delaying the kidney transplantation process killing more people in the process

Anation like India, already severely affected by numerous pandemics, has tried to put its maximum effort to combat diseases like AIDS, polio to say the least. But amidst all these diseases, one of the largest killers in the world (even in India), the kidney disorder, has got swept under the carpet. This is in spite of the fact that in India, two deaths occur every five minutes (that translates to 200,000 deaths in a year) due to permanent kidney failure. Timely kidney transplantation is undoubtedly the only saviour for these patients but the stringent rules regarding kidney donation and lack of adequate kidney banks are acting as blockades. Sadly, unnecessary delays to get approvals for kidney transplantation in India are pushing many lives towards death.

Till today, kidney ailments are not seen as being fatal – despite the reality being completely opposite. Most of the times, the detection for the same happens at the last stage. And now, the scenario of kidney problems in India has reached a situation where it is set to damage the so-called ‘demographic dividend’ massively. Doctors estimated on the last World Kidney Day (March 8, 2012) that anywhere between 200,000 and 400,000 people develops end-stage kidney disease (kidney failure) every year in India. In the same light, the National Kidney Foundation of India projected that 100 people in a million suffer from kidney diseases in India. As per the Multi-Organ Harvesting Aid Network Foundation, merely 3000-3500 kidney transplants take place every year as against 150,000 requirements. Out of all transplants, only 5% come from brain-dead patients while the rest are contributions from healthy donors.

Of course, the recent years have also seen the illegal kidney transplant racket growing. The infamous kidney racket scandal in Gurgaon is a case in point. Several reports highlighted that hundreds of poor labourers had been duped or forced into donating organs to wealthy clients, including foreigners. The government subsequently took the professed noble initiative to protect them and the rules governing unrelated kidney transplant became very stringent since 2008, following an amendment to the Transplantation of the Human Organs Act, 1994. The law states that “only medically compatible relatives are permitted to donate organs.” However, “non-related and willing live donors can supply a part of themselves by reason of affection or attachment towards the recipient or for any other special reasons, provided that the transplantations have the approval of the Authorisation Committee, established under the Act.”


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
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
BBA Management Education

Thursday, May 9, 2013

It is critical for organisations to adopt a scientific approach

It is critical for organisations to adopt a scientific approach to understanding how they can meet customer needs, and to firmly ingrain a customer-focused culture throughout the organisation

1. Make a list of the values you’d like your company to exemplify. Then, examine your current culture, and ask yourself if those values are apparent in your company and driving your everyday efforts. 2. Before you can convince your company’s end customers of your focus on satisfaction and service, you need to convince an even more important customer audience – your internal customers – the employees who represent your company to the world. Talk with all your employees about corporate values and ask for input and suggestions. 3. Customer focused companies constantly seek and document feedback. They have a system to analyze and feed this information back into the loop so that response is immediate and not an annual feat 4. A strong customer orientation also demands that the company treats customer complaints positively. They not only make toll-free numbers and helpdesks available, but also staff it with knowledgeable people to work on them. 5. This means that they get back to these customers within an acceptable time frame So how does one tell if the customer is truly on your side? Most companies survey their customers in some way, shape or form – formally or informally. After decades of forms, interviews and focus groups, studies have shown that in gauging a particular customer’s overall satisfaction, a single question is needed to provide a fairly accurate answer: “Would you recommend us to your family, friends and colleagues?” If the answer is “Yes,” you are meeting or exceeding that customer’s expectations; if it’s “No”, it’s time to get to work.

It’s important to have carefully defined, written standards for a customer service-centric culture. Don’t be afraid to keep raising the bar; after all, that’s exactly what your competition will be doing. By visibly measuring – and rewarding – superior customer service, you’ll establish it as a top priority in employees’ mindsets. By holding associates accountable for the agreed-upon standards, you’ll build a high level of trust—one from which your customers will ultimately benefit. At the same time, it’s important to take advantage of “coachable moments” when employees occasionally fail to meet established standards. Don’t “blame”, but just analyze the situation and offer encouraging, constructive feedback. In time, your employees may actually welcome the occasional complaint as an opportunity to improve service.

Globally, companies like Apple and IBM have reaped rich rewards by being customer focused. In India, Microsoft aims to become relevant to the country’s one billion population; it made a start by introducing the Windows 2000 and Office 2000 range, which supports Hindi/ Devanagari and Tamil scripts. In 2001, it launched the Office XP and Windows XP, which supported 11 Indian languages. It also launched Project Bhasha to promote local language computing in 2003.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
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

ExecutiveMBA

Wednesday, May 8, 2013

20 years of change after Rajiv Gandhi

Known as one of the brightest stars in Indian politics, Rajiv Gandhi’s assassination shook up the foundation of the Congress party. A documentation of how his death reversed fortunes of the party, and dramatically altered the Indian political scenario...

Twenty one years ago on May 21, 1991, a bomb explosion killed Rajiv Gandhi, while he was campaigning for the Congress party in Sriperumbudur, about 40 km from Chennai, on the second day of the 10th Lok Sabha elections. [Rajiv who had served as the PM of India between 1984-89 (at the age of 40 – he was the youngest ever PM of India) is till this day regarded as perhaps the most charismatic figure that ever took the stage of Indian politics.] The sudden, premature demise of Rajiv not only shocked the world, it also marked an end of an era that saw India being led by the Nehru-Gandhi dynasty for all but five years since independence.

Though nobody took immediate responsibility, the attack was blamed on Rajiv’s arch enemies, the LTTE, that was fighting for a separate homeland for the Tamils in Lanka. Rajiv could not contain the political problems afflicting India, and found refuge in international entanglements and commitments. He committed the so-called Indian Peace Keeping Force (IPKF) to Lanka in July 1987 in an endeavour to help the government there to eradicate militants agitating for a separate Tamil homeland. [The IPKF had to be withdrawn in 32 months.] His period in office was marred by scandals and allegations of corruption on so huge a scale that he undoubtedly lost the election of 1989 partly on account of public perception. The Congress suffered an electoral defeat. His successor, V. P. Singh, could not hold office for long, and Rajiv started campaigning in earnest in 1991. But then, his assassination put an end to his half-finished political career.

Most people remember Rajiv as a visionary who encouraged foreign investment, a freer economy and rejuvenated his own party. “People had sympathy for Rajiv. He was not aware of the problems of the people at the grassroots level. However, he was a very dynamic person,” recalls Mohan Dharia, a former Union Minister who had served in the Indira Gandhi cabinet, but resigned on his differences with her ideologies. He remembers Rajiv as someone who wanted to modernise India.

When US denied to give India the technology of supercomputing, it was Rajiv who encouraged the creation of the indigenous Param Super Computers. Agrees Dr. M. P. Narayanan, former Chairman of Coal India (1988-91), who says that with the demise of Rajiv, India not only lost a visionary, but a receptive and encouraging human being. “His leadership style was such that would even allow mid-level officers to walk up to him and he would listen to their ideas. I wonder if subsequent PMs have ever found time for that,” he says.

Rajiv’s vision for India was that of a modern nation that takes full advantage of technology. We’re living his vision today. Says political observer Suvrokamal Dutta, “Many people believe that it was Narasimha Rao that initiated the globalisation process. However, it was Rajiv who created the ground for that process. He was also working on various missile treaties with Western countries.” Rajiv’s other revolutionary move was to lower the voting age to 18 from 21 years in India. Having said thus, it is important to note that Rajiv’s political career also became mired with allegations and scandals. The Bofors scandal is an unsettled blot on his otherwise glorious career. It cost him three-quarters of his MPs.

Read more....

Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles

Thursday, May 2, 2013

Why everybody at SpiceJet loves Raymond

Two years back, Neil Raymond Mills took over as SpiceJet’s new chief. Then, the airline was unwell. He began by slashing costs. Strategies that didn’t make economic sense were forgotten. Today, the airline appears a turnaround tale. Reality is, the job isn’t over yet. Worse, harsh history could repeat itself

A simple analogy. If you drive a car at a constant speed minus stops, you burn less fuel. The gains don’t become apparent after each short drive. But in a quarter of a year, the reduction in fuel consumption starts to show. The results become more pronounced in a year. Much is saved in gas and cash. Common sense. But most airlines in India ignore such small money-saving acts. SpiceJet is not one of them. At the airline, this “constant speed” philosophy is communicated as a compulsory key message to each of its newly recruited pilots. These cockpit handlers are supposed to remember it every time they leave an air strip. The idea is to get the pilots to save anywhere between 0.5% to 1% of the airline’s fuel bill. A small chunk saved. But at SpiceJet, if a cost can be avoided, it is.

Cost-cutting doesn’t always help
The company’s hardheaded emphasis on lowering costs does affect its operational efficiency metrics. Unfavourably at times. In July 2012, SpiceJet’s On-Time Performance (OTP) on domestic routes was 84.3%. That meant, about 16 of every 100 flights were delayed beyond 15 minutes. Much of this is can be blamed on the constant speed norm that is in place at the airline. This makes the airline’s record only better than the havoc-stricken Air India’s (OTP of 81.2%) and now-stripped-to-the-bone Kingfisher Airlines’ (81%). All other airlines recorded OTPs in the 90%-plus range [IndiGo: 95.3%, GoAir: 90.3%, and Jet: 91.6%]. The company isn’t one to worry about offloading passengers to peer carriers (and cancelling flights) either, when load factors don’t justify economics. The carrier strives to maintain an average load factor (LF) of over 75%, and plans to increase it over the quarters to come [in Q1, FY2012-13, LF was 80.8%]. Result: SpiceJet’s flight cancellation record (2%) is only better than those of Air India (3.2%) and Kingfisher (8.2%). Others boast of a lower figure (IndiGo: 0.1%, Jet:1.4%, GoAir: 1.6%).

Mills... a number-loving turnaround guy
But CEO Neil Mills, who has turned around the airline in the past two years, knows that these numbers only tell a part of the SpiceJet story. He is familiar with how budget airlines work. An industry veteran of over 20 years, this former CFO of Middle-Eastern LCC Flydubai knows his numbers fall on the rational side. He measures every paragraph in the book by weighing data. That is exactly how he helped build Flydubai from scratch. He plugged cost holes at the company, and improved its balance sheet, helping the airline grow from a drawing on the whiteboard to a fleet of nine operating aircraft in just a year-and-a-half. Before Flydubai, he was at easyJet for 12 long years. Under him, the company grew from 4 to 174 aircraft, and became one of the biggest, most profitable airlines in Europe.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 

Saturday, April 27, 2013

“The challenge is to judge prices of diesel & petrol”

Vishnu Mathur, Director General, SIAM, talks to B&E about what automakers feel about the trend towards dieselisation

B&E: The market dynamics in relation to petrol-powered and diesel-driven cars is changing in favour of the latter, mainly due to the big price differential between the two fuels. How does the automobile industry view this shift?
Vishnu Mathur (VM):
The government should provide some more clarity with respect to the pricing policy of both the fuels so that automobile companies can plan accordingly. One of the biggest challenges for the automobile industry this year is how to judge the future price movement of diesel and petrol.

B&E: Will it be a more desirable thing for the automobile industry if the price disparity between diesel and petrol is reduced?
VM:
Clearly, there is a need to bring some parity between petrol and diesel prices. The government should focus on reducing the price differential between petrol and diesel because if it continues to widen, it will not be good for the industry and the overall economy. At this point in time, diesel is very artificially priced and it cannot hold on forever. There is a need to implement a step by step program to rectify this scenario. As per our study, out of the total diesel consumption in the country, only 13-15% is consumed by the farmer community for which diesel is subsidised. What is happening in the process of taking care of this 15% is that the fuel is getting subsidised for the other 85% as well. The biggest question in front of the government today is how to take care of this 15%.

B&E: However, considering the fact that diesel will continue to be cheaper than petrol even in future as the government may prefer to keep it subsidised at some level, do you believe it is better for the industry to sell more diesel cars in the long run?
VM:
Diesel is the future technology. Not only because of the fact that it is cheaper and more fuel-efficient than petrol. If oil companies can invest in new technology for this fuel and lower the sulphur content, cleaner diesel technology will be beneficial for all. Even though the percentage difference in the prices of petrol and diesel hasn’t changed much, it is only during the past one year that the market scenario has become such that the demand for diesel cars have gone up substantially.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
 

Wednesday, April 24, 2013

Misinformed media

Morphed videos, tampered pictures, and misinformation drive Western media reporting on Syria

International media coverage on Syria is often based on flimsy grounds. A report of a 3-year old child battered by Assad’s forces and having bruises all over her body was covered in hundreds of western media outlets that created nothing short of a storm in a teacup. This media campaign’s entire basis was nullified after 3 days when it was found out that the girl child’s identity and her battered condition was nothing but a figment of imagination.

It isn’t entirely surprising. Top notch media giants like CNN, BBC and France 24 report from second hand sources regarding Syria. Most interestingly, the main material for such ground-reality-check stories is sourced from a UK-based NGO called The Syrian Observatory for Human Rights (SOHR), which is partially funded by western governments. Most of the Western media houses, including the likes of BBC, The Guardian & The Telegraph rely on a man named Rami Abdulrahman of SOHR for Syrian stories. However, in a shocking revelation, it was unearthed that this man doesn’t exist on the roster of SOHR!

Due to the lack of primary sources of information, the reportage is often full of contradictions. For instance, a reporting spree that sustained for 10 days narrated a back-to-the-wall situation for Baba Amr and its people, who were trapped in their houses against a counter offensive by Syrian forces, which was supposedly creating a humanitarian crisis there. The Syrian army supplied this piece of information as Western journalists were barred from being in the country for a first hand conformation. The report was covered in the most distinguished houses like CNN, France 24, The New York Times and The Washington Post. However, the Syrian Army changed their stand with counter claims that the civilians were relocated to safe zones! While the media as well as the Free Syrian Army admitted that there were hundreds of armed fighters in Baba Amr, every armed fighter who died in the battle was somehow shown as civilian to swell the number of civilian causalities. More interesting, however, is the story of ‘Syria Danny’, a 22-year-old British citizen of Syrian descent, who travelled to Homs during the year end and started appearing as a witness on western media channels, especially CNN. His daily ritual would include videos showing him ducking as shots were fired in the background, while he begged for armed intervention from the West and Israel. His, as well as CNN’s, luck ran out when a video appeared exposing how he asks his friend to start firing when he goes live and how footage from Libya was used. Similar wrong reporting appeared in BBC too!

Similarly, one Mousab Azzawi, claiming to be working for SOHR was paraded by BBC and CNN during live programs for no less than two months. Later, it was proven that the fellow had never seen even the inside of the SOHR campus, leave alone working for them. In the same month, a blog purportedly written by a lesbian woman in Syria, which described among other things, the massacre by Syrian forces, was picked by all the above mentioned visual and print outlets. A month later, it was revealed that the owner of the blog was one Tom MacMaster, an American studying in Scotland.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 

Tuesday, April 16, 2013

US housing market report

With US facing the fears of a double dip recession, investments in real estate remains sluggish. However, continuous fall in home prices and mortgage rates have brought in a great opportunity. Though the post-crisis over-cautious approach of lenders and borrowers is still playing spoilsport, current valuations and demographic dynamics may soon change the scenario.

Housing crisis continues

Housing boom in the US that began in the late 1990s led to an exponential growth in home sales. In fact, the demand remained quite strong during the period and outpaced the supply of new built as well as old homes on sale. As per reports, average sales of houses stayed at around five million per year. But with the economic crisis coming into picture, demand dipped thick and fast from over five million to less than four million. Since then, inventories have been on a painfully slow drift downward as a drop in demand offset much of the impact of the collapse in home building. However, by August of this year, combined new and existing homes listed for sale have fallen to 3.6 million units, having completed roughly 70% of the journey back to normal.

Mortgage payment at record low

With a sharp dip in mortgage rates, US Families have to leash out very low rates out of their income to pay for mortgages. As per Freddie Mac, by October 7, 2011 mortgage rates have fallen to an average annual level of 3.94%. Assuming the use of a fixed rate mortgage with 20% down, it will make the median mortgage payment on a single family existing home just 6.9% of per household personal income, compared to an average of 14.4% since 1966. While this presents a downside market, it also emphasises on the long-term gain that one can achieve by investing in the cheaper than average houses locking in cheaper long term financing available at present. Because, any demand pull in future will also pull these prices up.


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

Saturday, April 13, 2013

B&E Indicators

Growing rural-urban divide

After a phase of robust growth, the Indian telecom juggernaut appears to be slowing down. The number of net mobile connection additions in May 2011 was about 35% less as compared to March 2011. Further, the gap between urban and rural teledensity has widened over the last decade. This is evidenced by rural mobile teledensity of only 35% as compared to urban mobile teledensity of 156% in June 2011.

Slowdown in growth in rural areas

The gap can widen even further as rural growth slows. It’s evident that the urban markets are almost saturated whereas, there is a lot of untapped demand in rural India. Thus, additional investments are required for rolling out services to the unconnected population in rural areas. Moreover, with India’s broadband penetration being abysmally low at about 1%, investments are needed to deploy 3G services and meet the latent demand for broadband across India.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 

Friday, April 12, 2013

Can optimism change reality?

Becoming The #4 Globally in Terms of Sales Volumes is not an Easy Task. Not even for The Largest Korean Carmaker. But having Achieved that, how fast can it Grab The #3 Spot?

This summer started on a rather busy note for Land Securities Group. The commercial realty giant has been put in charge of changing the neon light-lit gigantic 1,250 sq. ft.hoarding at Piccadilly Circus (London’s equivalent of Times Square) to an LED screen (which will be ready by October this year). It is a rare event. Those signboards do not change often (the last time it happened was 17 years back!). So what landed Land Securities a new customer willing to pay a massive $3.29 million-a-year for the space? Call it economics – unable to convert failure mystically into cash-flow, Sanyo, the earlier client, was forced to give up the space to a car company, Hyundai Motors. Taking up the billboard is a metaphorical move for the Korean car-maker, and clearly goes beyond catching the attention of the 56 million visitors who flock to Piccadilly, every year.

It’s a move that personifies Hyundai’s attempts to finally break into the top three carmakers of the world. Nobody believed they could do that. Many still don’t. Well, nobody thought the Sanyo billboard would ever be taken over by another company. That’s how metaphorical it can become...

And that’s how a company strives to ensure a perception change within the global audience. For starters, before the turn of the new millennium, the Seoul-based outfit was regarded as just another manufacturer of affordable hatchbacks. No more. Thanks to huge dollars spent on its marketing and advertising strategies, the company has witnessed astounding high growth across many markets over the past two years.

Today, together with its sister company Kia Motors, Hyundai looks all set to break into the top three ranking of the world’s auto market (in sales volume). How soon will that happen? Very, if it continues to grow the way it did in 2010. The company recorded total sales figures of 5.74 million units in CY2010 – a y-o-y growth of 23.97%. It was the highest growth recorded amongst the five largest automakers in the world. While Toyota’s sales rose by 8% (to touch 8.55 million units), GM’s rose by 6% (8.39 million), Volkswagen’s by 13.5% (7.14 million) and Ford’s by 19% (5.31 million). Taking advantage of the streamlining that Ford went through in 2009 & 2010, the Hyundai-Kia combination ran past it to occupy the #4 spot in CY2010. But rising further will be a much bigger challenge.

As per estimates by IHS Global, Hyundai will remain where it is even when 2011 ends. The Korean company, having sold over 2.1 million vehicles during the first four months of 2011, is well on its way to clocking total deliveries of 6.3 million units during CY2011 – a y-o-y rise of 9.76%. On the other hand, Toyota is forecasted to sell 8.6 million units, GM – 8.5 million & VW – 7.5 million. Good news is – when 2011 ends, if all goes well, Hyundai will be much closer to the #3 spot, with the deficit between the Korean and the #3 VW reduced by 1.2 million units.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 

Thursday, April 4, 2013

B&E Indicators

Asian liquidity remains solid

Liquidity remains solid for non-financial, speculative-grade companies in Asia. The region’s Liquidity Stress Index was 12.3% in June, unchanged from May, and far below the 37% high it hit during Q4 2008 amid the global economic recession. In fact, the Asian Liquidity Stress Index has remained near its current level since the start of 2011 and is at its lowest levels in three years.

A low probability of default in the region

The high level of corporate liquidity in Asia suggests a low probability of default for the region’s speculative-grade companies. In fact, there were no defaults during the first half of 2011. Even the Asia-Pacific (ex Japan) trailing-12 month speculative-grade default rate has remained at 1.7% since the beginning of 2011. This situation, coupled with manageable refinancing needs, indicates that the default rate will continue to stay low for the rest of the year as well.

Read more...

Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles

Thursday, March 28, 2013

Can we See Some Accountability... Please?

While there are Mixed Reactions over The Impact of SC’s Verdict on P. J. Thomas’ Appointment as CVC, The Nation Actually needs to Focus on Politicians who run The Show.

The office of the Central Vigilance Commission (CVC), the apex vigilance institution, has lately been in the news for all the wrong reasons. In a first of its kind in India, a three-member Supreme Court (SC) bench on March 3 quashed appointment of P. J. Thomas, a 1973-batch IAS officer of the Kerala cadre, declaring it as “un est” in law.

Thomas’ current woes date back to a palmolein import case in 1991 when he was the Food Secretary in the Congress-led UDF government in Kerala. In 1996, the Left government in Kearla had ordered a vigilance inquiry into the cabinet decision taken by the then Congress-led Government to import 15,000 metric tonne of palmolein oil, which allegedly caused a revenue loss of Rs.20 million to the state. Thomas was selected to the post in September, 2010, by a committee consisting of the PM, Union Home minister P. Chidambaram and Leader of Opposition, Sushma Swaraj.

Meanwhile, with the Prime Minister accepting responsibility for the “error in judgement” as the final signing authority that approved Thomas’ appointment as CVC, the move has just become a blessing in disguise that Thomas would like. According to Thomas’ counsel Wills Mathews, Thomas has now moved to SC challenging the very legality of the verdict that set aside his appointment as CVC. “The constitutional provisions mandate that the matter be heard by a five-judge bench as opposed to the three-judge bench that handed the verdict in this case. Moreover, the selection of Thomas was carried out by a government committee and the error has been accepted by the PM himself,” Mathews told B&E. When asked about the future course of action, Mathews said that since the error had been committed by the Union of India, it was for the government to rectify it. “Once the mistake is corrected, Thomas will automatically be reinstated,” he said.

Amidst all this chaos also lies a threat to the confidence of whistleblowers who had utmost faith in the CVC when it came to reporting matters pertaining to corruption in government offices. For Dhanraj Singh (name changed on request), a whistleblower involved in bringing the Chairman of a CPSE to book after he took matters to the CVC, “Reporting matters to the CVC is not a routine affair and takes a lot of courage to go ahead with pursuing the matter due to the constant fear of consequences.” While getting matters attended to has been a cause of concern, there is also sheer disappointment when one finds that the appointment of the highest anti-corruption authority was taken lightly. “The anxiety among many of us is on how future complaints will be treated,” Dhanraj adds. Alongside this sense of disappointment within a section of “honest” government servants, there is also a separate school of thought. “The Apex court’s verdict annulling the appointment of the CVC has come as a major jolt to the government and we can expect an overhaul in the manner in which the anti-corruption watchdog functions. We expect more sincerity from the CVC now,” says another whistleblower on condition of anonimity.


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, March 26, 2013

Can Opportunity Reveal their Genius?

Buoyant car sales offer an Unprecedented Opportunity for The Indian The Auto-Component industry to ramp up its Investments and Innovation. Can they meet The Demand?

From its small beginnings in the 1940s to the spectacular growth over the last couple of decades, the Indian auto component sector has come a long way. In fact, the industry is one of the front runners for grabbing the global auto components outsourcing market estimated to be worth $700 billion by 2015. As India’s consumption story for cars is expected to remain strong, component manufacturers are gearing up to meet the challenges and demands set by the automobile sector. “The automobile industry is growing at a pace of 30% vis-à-vis the economy growth of 8-9%, so there is bound to be a correction sooner or later. However, the last three years have been full of surprises and we hope the growth will continue,” says Anil Gadi, Executive Director, Shriram Pistons. Car sales for fiscal year ending March 31, 2011 are forecasted to grow by at least 25% from a year earlier, according to the Society of Indian Automobile Manufacturers (SIAM).

According to the Automotive Component Manufacturers’ Association (ACMA), an industry body, the total passenger car production in the country will jump four times to reach nine million cars by 2020. On the other hand, the Indian auto component industry is expected to also grow by over four-fold to $113 billion by 2020. “India would be among the top five vehicle producing countries in the world by 2020,” says Vinnie Mehta, Executive Director, ACMA. A recent ACMA report puts the turnover of the auto component industry at about $26 billion in 2010-11, up 18% from $22 billion in 2009-10. The report states that 40% of the auto component industry is dominated by body and structural products, 20% by engines and exhaust, and 10% each by suspension and braking parts, transmission and steering parts, electronics and electrical and interiors.

However, the road to growth is not without hiccups. The Indian auto-component industry is up against challenges such as lack of good infrastructure, increasing input costs, et al, which could slow down growth. ACMA estimates that an investment of $35 billion must be made over the next decade to help car makers realise their targets. But the parts industry invested a measly $1.7 billion in 2009-10, half of the required rate.

Doubts over the sector’s ability to cope with the unprecedented demand have a strong basis. The second half of 2010 was characterised by long waiting periods at car dealerships of popular models. For instance, Maruti Suzuki Swift had a waiting period of over three month while the recently launched Polo from German car maker Volkswagen had a waiting period of over six months. Industry veterans ascribe the reason for the delays to component shortages, which adversely impacted the production cycle. Take, for instance, the case of utility vehicle maker Mahindra, which suffered a 10% production loss in the first quarter of FY 2010-11, mainly due to shortage of components like tyres, fuel injections and castings. At the other end, players like Maruti and Volkswagen were forced to keep consumers waiting because of the inability of their vendors to supply components as per schedule. Similarly, Volvo Eicher Commercial Vehicles also took a 20% hit in the production numbers, as their component manufacturers were not able to match pace with the orders.


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, March 12, 2013

In the Pink!

Recently pop-star Pink was at a chat show and when asked the secret to her glow, she revealed that she was eating for two of late! While the media has been abuzz with rumours of Pink being on the way to motherhood, she has stayed tight-lipped about it as she has previously suffered a miscarriage. She also mentioned that a doctor inadvertently let it slip that she’s expecting a baby girl!


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

Wednesday, March 6, 2013

Rana Kapoor

Managing Director and CEO, Yes Bank, speaks to Avneesh Singh about how the six year old bank has grown commendably over the years and looks forward to making it even bigger given the opportunities in India

Within a period of six years, Yes Bank’s Rana Kapoor has made much judicious use of opportunities; at this juncture, with the focus being on brand building, Rana reveals his views on how being a new entrant feels:

B&E: How is the banking sector performing in totality? What do you think will be the future scenario ?

Rana Kapoor (RK):
The banking sector, in my opinion, is positively tuned. Be it the private sector or the public sector, the constant motivation has been to progress further. Statistics say that foreign banks are a little quiet, private sector banks are pacing fast and the public sector banks are also gearing up. Thus, the future scenario seems to be promising.

B&E: RBI has been very strict with its monetary policy. What are your views on it?

RK:
I think the monetary policy of the RBI is very much on the expected lines and balanced as well. It is absolutely clear that they want to anchor inflation without compromising on growth. There is a growth plus inflation management chapter and RBI is taking care of that. The steps of RBI also signal that there is a belief in the system that inflation cannot be only managed by monetary or fiscal actions. It also requires management through supply side economics. As a nation we need to increase our production either through new capacity addition or full utilisation of installed capacity and finally, make sure that the demand pull is normalised.

B&E: Being a relatively new entrant in this sector, how are you competing with the big banks?

RK:
I think there are abundant opportunities in India. For a young bank like ours, which has been growing exponentially at almost 75 to 80%, it is terrific. Thus, with a free footing along with agile management systems and good credit systems, we ideally should respond to the growth opportunities. So, whether it is the large, medium or even the small corporations, our turnaround time is a very important differentiator. We can turnaround most of the credit proposals within two to four days. But the crux of the matter is that we have to grow in all aspects and different segments of the economic parameters.

B&E: Financial inclusion does not comprise microfinance only. It has other products lined up as well. But your bank has bene looking only at microfinance... Or are there other products too?

RK:
With a meagre experience of six years, we are going through a lot of transition in management and strategy. So we have to make use of the most important bread and butter opportunities which are coming from wholesale and commercial banking. The linear earnings from those businesses are being invested in branch banking, SME banking and also across the board in terms of deposit management. This will provide sustenance for a long time because the top line in the bank is very good. We now have to work towards making it completely SME driven and consumer driven in the next 5 years to come.


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

For More IIPM Info, Visit below mentioned IIPM articles