Showing posts with label IIPM-Article. Show all posts
Showing posts with label IIPM-Article. Show all posts

Saturday, May 25, 2013

Herr Bose?

Netaji's ideological grounding was weak and his lack of political acumen only compounded his mistakes

The ideological commitment of any individual is best tested when he or she is pushed to the wall. Because it is here that the option to take an easy way out or strike a compromise appeals the most. And it is in such circumstances that one of India’s most prominent nationalist leaders Netaji Subhash Chandra Bose made some of the biggest strategic mistakes of his life.

Bose's tryst with Nazism and Fascism has always remained a matter of debate. Experts have variously called his decision a “tactical folly”, “lack of political acumen” and “genuine flirtation”. The truth – as always – lies somewhere in between.

Let's consider Bose's initial tryst with the ideology. Throughout the 1930s and even later, Bose's basic ideology was grounded in socialism. Sugata Bose – grandnephew of the INA leader and professor of history at Harvard – writes that Bose's differences with MK Gandhi were primarily because he thought that the latter had no plan in place whatsoever for a post-independence India. Besides, Bose’s idea that the independence movement “should depend, for its strength, influence and power on such movements as the labour movement, youth movement, peasant movement, women's movement, student's movement” was abominable to right-wingers like Vallabhbhai Patel.

Bose tried to reach out to the leaders of both Fascist and Nazi regimes in the late 1930s but without much success. Some suggest that he secretly entertained middle-rung Nazi leaders in Bombay in 1938 when he was president of the Indian National Congress (INC) for a brief period. However, his efforts to connect with Nazi forces till then were mostly based in and around the principle that an “enemy's enemy is my friend”. He certainly displayed no particular liking for the Nazi or Fascist ideology as a whole. The admiration was selective. And that was not unnatural because even Gandhi had praised Mussolini’s “care of the poor, his opposition to super-urbanisation, his efforts to bring about coordination between capital and labour”.

Around the same time, Hitler, who was clearly in awe of the British Empire and definitely wanted to have a respectful share in its sphere of influence rather than  substituting it with a German empire, saw little strategic value in entertaining Bose. “The land for us, the seas for England,” visualised Hitler. However, he did see the tactical benefit in using Bose as a chip to bargain with the British. On the other hand, Bose was sceptical of Hitler's hatred for the Soviet Union and was uncomfortable discussing it. Hitler was shrewd enough to judge that and advised him to reach an agreement with the Japanese to avoid "psychological mistakes".

Ideologically speaking, they did not particularly admire each other – at least it was not the kind of mutual admiration that Mussolini and Bose shared. In fact, during his initial tryst, Bose tried hard to have Hitler's racist references to Indians excised from further editions of Mein Kampf. The relationship grew worse as Bose had by then little appetite for racism and went as far as to rebuke Hitler at a press conference in Geneva after yet another rabid racist speech by the latter. Some historians claim that he even asked for a trade boycott against Nazi Germany.


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 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
 

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

Monday, April 15, 2013

Keep the recourse ready

For JSW Steel, the mining ban in Karnataka has had significant short term implications. Although temporary, they do hold valuable long term lessons

Abad quarter can come once in a while as an aberration. But sometimes, even aberrations have a tendency to outdo themselves.

For the $7 billion JSW Group, the second quarter of the current fiscal is a case in point, for the company suffered a whopping 71% dip yoy in its net profit. In the midst of a legal quagmire over availability of iron ore for its 10 mtpa (million tonne per annum) Vijaynagar plant, its production level has also dropped to half its original capacity. JSW did post higher sales and production numbers, but its Profit After Tax (PAT) still shrank to Rs.1.27 billion from Rs.4.45 billion for the same quarter last year. The turnover and net sales for the second quarter stood at Rs.82.42 billion and Rs.76.25 billion respectively, showing a growth of 33% yoy, mainly due to a higher volume and an improved sales realisation. EBIDTA for the quarter is Rs.13.32 billion, up by 15% yoy. The company has posted a net profit after tax of Rs.1.27 billion after considering foreign exchange translation losses.

The shortage of its prime raw material iron ore is the main reason why the company is facing this perilous situation. Ironically, there is little that the company can do at the moment. After the SC order to ban mining in Bellary, Tumkur and Chitradurga in Karnataka after the controversies over significant iron ore degradation in the region, a number of steel companies have been affected. For JSW Steel, which is planning to take the capacity of its mega steel plant in Vijaynagarto 12 MTPA by 2014 (10.2 MTPA currently), the impact is much greater. Although the SC allowed NMDC to mine 1 million tonnes per month from its two minesa and allowed e-auctions of 1.5 million tonnes every month, the output is far from adequate for the steel producers. Due to that, the prices of the ore have also gone up drastically. As an alternate measure, the company is attempting to source some amount of iron ore from neighbouring Goa, Orissa & Chattisgarh. In August, production levels at the Vijaynagar plant dipped to 28% owing to the shortage, which officials say have improved to about 50 to 60% levels in October. “High procurement cost of iron ore from neighbouring states and the subsequent e-auction basis to sustain an optimum level of steel production from its Vijayanagar plant, the company’s cost of production went up by Rs.1,500 per tonne in Q2 FY12 as against Q2 FY11,” JSW’s group CFO Seshagiri Rao shared with B&E. The company’s production was lower at least by 4,50,000 tonnes due to acute shortage of iron ore and higher procurement cost of iron ore also increased the cost of production of steel by about Rs.1,500 per tonne during the quarter.

JSW took the cue from the Supreme Court permissions and procured 2.08 million tonnes in the e-auctions. But the company is yet to improve capacity utilisation significantly from existing levels as the receipt of the e-auction material is taking a considerably longer time due to procedural delays and logistical constraints. They have received only around 18% of the supplies committed. No wonder then that the company is forced to revise its outlook for steel production further downwards to 7.5 mtpa (crude steel production, original guidance 8.75 mtpa) and 7.8 mtpa (saleable steel sales, original guidance 9 mtpa) for the full year ending March 2012.


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

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

Monday, March 18, 2013

Banking on Retail to Grow Fast

From a Development Bank IDBI Bank Changed its Course to a Schedu-led Bank in 2004. Since then, its Retail focus has Given it Enough dope to Become India’s 17th Fastest Growing Company.

The genesis of this entity can be owed to the inspiration sought from Industrial Bank for Reconstruction and Development (IBRD) set up in 1945 to reconstruct countries devastated post World War II. It was set up in 1964 as a wholly owned subsidiary of RBI and has to its credit building some of the biggest financial corporations in India today like NSE, the Stock Holding Corporation of India, the Export Import Bank of India and the Small Industries Development bank of India (SIDBI). But for IDBI Bank, which became a full fledged scheduled bank from being a ‘development bank’ in 2004, such laurels did not suffice. An entity which used to generate 70% of its total business from the corporate sector, has achieved one of the most successful transformations in India Inc.’s history to give its retail business an equal footing – not only in terms of products, but marketing and investments too.

During the last fiscal, IDBI Bank registered a mind-boggling 97.9% growth in its operating profit. Net interest income grew to Rs.22.67 billion in FY10 as compared to Rs.12.39 billion in the previous year, translating into a growth of 82.9%. Going deeper, the bank’s net profit grew 46% (year-on-year basis), fee based income increased by 53%, deposits grew 36%, advances grew 38%, aggregate assets rose 29% and the total business of the bank registered a growth of 37%. Interestingly, this happened during a period when most of the Indian banking giants were still recovering from the slowdown blues. The financial year 2010-11 has already witnessed IDBI Bank’s aggression in terms of marketing and promotional activities. The year has been special for IDBI Bank owing to its renewed focus on retail banking as it has realised the powers of numbers well on time, and also about how to survive the cut-throat competition.

In fact, IDBI has been a major ground level innovator and fast mover, quite unlike a government entity. Some of its major initiatives are aimed at taking it on a very long term growth trajectory especially in retail banking. Firstly, to attract more retail business and achieve its goal of lowering cost of deposits, it has gone a step ahead of competitors by waiving charges on many of its current account and savings account (CASA) services including account closure, ATM Interchange, demand draft cancellation et al. Secondly, it has taken the tactical move to install 100,000 point of sale (PoS) machines to get hold of the mass by facilitating higher financial inclusion. Thirdly, it is ramping up its branch-wise penetration. It is setting up around 250 new branches to increase its tally to 1,000 branches and plans to set up between 4,000 to 5,000 ATMs in the next three years. Not just in distribution and marketing, the bank is contemplating major capital raising in the near future to enhance its financial inclusion objective. As per R M Malla, CMD, IDBI Bank, “As part of IDBI Bank’s financial inclusion strategy, the bank may consider raising equity capital, thereby diluting the Government’s stake over the next 12-15 months.”


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


Saturday, February 9, 2013

VENEZUELA: RECESSION

Chávez’ inadequate macroeconomic and exchange rate policies have worsened the ongoing recession. He needs to get back to the drawing board if he wants to prevent Venezuela from a disaster. by Manish k Pandey
 

It’s not as if the Venezuelan Central Bank doesn’t realise the magnitude of the government’s fiscal troubles. In fact, with regards to fiscal condition, Banco Central de Venezuela has already submitted a report to Congress which clearly mentions that Venezuela’s fiscal deficit has already reached a 10-year high of 5.4% of GDP (2009), up sharply from 2.2% in the previous year. But it seems as if the Chávez administration has been sleeping over it as it continues with its policy of heavy public spending. In fact, it’s interesting to note that though the fiscal spending has reached 26.8% of GDP in 2009 (up from 26.2% in 2008), capital spending has actually fallen in 2009. This makes the situation further difficult for the policymakers who are already struggling to tame the galloping inflation which is all set to cross the 40% mark in 2010 (Royal Bank of Scotland estimate).

Further, a sharp decline in oil revenues is continuously widening the budget gap. Government oil revenues have already fallen as a share of GDP from 12.3% in 2008 to just 7.6% in 2009. But then, that’s a small problem, once the oil price in international market moves up, the revenues are likely to increase. What is more worrisome is that it’s the royalty revenues (For starters: Decline in royalty revenues reflects a sharp contraction in output) which have seen a major fall during this period, from 9% of GDP to just 5.1%. This points towards intensifying operational problems, and a lack of investment. In fact, oil production has already contracted by 10.2% in Q4 2009, which means a serious dent in revenue flow for the Venezuelan economy.

Though Venezuela’s international reserves – which despite higher oil price have fallen by about 20% since the end of 2009 and were at $28.97 billion on April 9, 2010, the lowest level in over a year – remain at a still-comfortable level (reserves currently cover about 10 months of imports, a relatively good ratio compared with other developing nations), yet the decline in reserves, if prolonged (a more likely phenomenon), can be really dangerous. Since Venezuela has limited access to international markets, a sharp drop in reserves could even lead to an external debt default. Moreover, such a scenario would certainly prompt a new devaluation of the bolivar extending stagflation. No doubt, as a counter step, Chávez has reopened Venezuela’s bond market which he had shut down on May 19, 2010, but how far will that help in controlling the situation is still a big question. Through the new system (which gives government full control of the exchange rate as companies will now necessarily have to buy dollar-denominated bonds rather than conducting direct sales of bolívars for foreign currency) Chávez plans to prevent the speculative trading that fuels inflation, but then the move only follows the trend of Chávez’ Leftist recession-fighting policies such as nationalisation of industries, controls on prices, et al, which have been a major reason for the outflow of capital from the country. In fact, critics feel the new system will actually increase inflation by another 5%.


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.

Friday, February 8, 2013

Killings over water

When it was predicted about a decade back that the next World War would be fought for control of water, sceptics dismissed it as a mere hyperbole. Now, with killings over water being reported from across the country, the spectre of the past is becoming a scary reality. The team of anil sharma, raju kumar and nishant bhadreshwar take stock of the situation

The scenario in the state capital Jaipur is no better, where water is being supplied once in a day, and that too only for an hour. “To add to our woes, we have heard that the government is planning to make it once in 48 hours. How would we live,” says Ashok Kumar Sharma, a resident of the walled city area.

Gone are the days when people would man pyaos to give water to the thirsty. Now, people are manning water bodies to keep the thirsty away from them. Water shortage has forced the residents of a village near Bikaner to maintain a tight vigil on the village water bodies to prevent water theft. “There is always a threat of water theft, so we have appointed watchmen to keep a vigil on our water bodies,” says Bhola Ram, a resident of Pugal village in Bikaner district.

It is feared that the availability would fall below 450 cubic metres by the year 2050. As per the international accepted norms, availability of water below 500 cubic metres is considered as absolute water scarcity.

Although the Ashok Gehlot government is trying to take steps to ease the crisis, but so far the problem persists. “We are doing whatever best we can. Supplying water through tankers and running water trains. We have decided to supply water through tankers to more than 10,000 villages during May and June,” a senior official of the water department tells B&E. “We have also decided to focus on community-based water management solutions instead of predominantly engineering-based ones,” he adds.

The situation in the neighbouring Madhya Pradesh is probably worse. Brawls over water are resulting in people eventually killing each other at many places in the state. Incidents of the killing of three people of the same family in Bhopal, two people in Indore, a person in Bilkhiriya village and a person in Devas dot the 2009 calendar.


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.

Monday, February 4, 2013

Model A to Z of failure...

...rather of failure in terms of product innovation!

Alan Mulally may well be on his way to driving Ford out of its problems, innovatively sans any grants from the Fed, but that really doesn’t imply a century sans a single error at innovation! Ford’s Model A and Edsel are two cases proving the point. Ford’s decision to halt the production of Model A (as it was preparing the launch of its first low-priced V8) in 1932, cost it millions in dollar revenues. Why? Introduced in 1927, Model A was the second most popular product from Ford’s stable after Model T. Then came Edsel in 1952, which proved a bigger commercial failure, as the product wasn’t able to match buyers’ expectations after the success of the Thunderbird model. The car was positioned against GM’s Oldsmobile. But the old & conventional Ford design and more importantly, the name which resembled an image of a tractor (Edson) finally resulted in cooking up a complete product failure in the US automobile market.


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.

Friday, February 1, 2013

The ‘Nixon shock’

How the Viet-war ended the gold standard

The hugely respected Joel Kurtzman, erstwhile editor of Harvard Business Review coined the term ‘Death of money’. Little did people know how meaningful it would be in their lives. Stuck between the double-trouble of widening balance of payment deficit and trade deficit on account of the Vietnam war and increased domestic spending, US rampantly printed dollars to fuel its war expenses. As a result, the gold backup for the paper dollar fell from 55% to a meagre 22%. Considering the deterioration in dollar’s position, countries with dollar holdings started to demand gold against the dollar, which meant a sharp fall in dollar’s value.

57To counter the situation, President Richard Nixon, in a shock to the world, closed the gold window making the dollar non-convertible to gold directly. It simply meant that gold standards were no more applicable to the dollar. In the short term, it seemingly saved the US from a currency crisis; but in the long run, it created even bigger threats for the entire world. It is because of this move that today we see non-existing electronic currencies building up castles in thin air and then destroying them within seconds. The modern financial world has moved far from reality.


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.

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)

Friday, January 18, 2013

Hotel Poseidon

The hotel's named after Poseidon, the ancient Greek God of the seas. Located in Positano, a small town in Amalfi, this hotel is an ideal place for a divine holiday. Enjoy a warm afternoon on the hotel’s sun terrace or relax your tired muscles with a swim at the open-air swimming pool. Binge on the local specialities at the hotel’s restaurant or pamper yourself at the beauty centre, which offers a Turkish bath carved in to a rock. The hotel also has a fully-equipped gym to burn those extra kilos. All in all, a hotel that has it all and even more!

The view:
Perched on a rocky mountain slope, right in the heart of Positano, Hotel Poseidon provides a spectacular view of the ‘vertical village’ and Amalfi. From the hillside, one can enjoy a picturesque view of the emerald sea flowing through Amalfi.

Archi type: The hotel is a mix of traditional and contemporary Mediterranean style. The thick walls are coated with pastel colours, giving out a soothing effect. There is a certain warmth about its décor, which makes the guests feel at home at once.

Bon appétit: Forget the diet chart and indulge in the exquisite dishes offered at the Poseidon restaurant. The dishes are of Neapolitan tradition, particularly pastas, fish dishes and fresh vegetables. For warmer days, the meals are served on the panoramic terrace, covered by a very beautiful bougainvillea and grape pergola, that has a wood-burning oven and a grill.

Around the corner: Located right in the heart of Positano, Poseidon provides the perfect base for tourists to explore other enchanting towns like Praiano, Conca of Marini and Furore. While the beach of Positano is just a short walk away, a walk in the maze of picturesque lanes of the historic centre – a stone's throw distance from the hotel – is priceless.


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.

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)

Friday, January 11, 2013

“In india, for india...”

B&E: How did you started off in India?

VR:
GE Healthcare came to India in the year 1990 through a joint venture with Wipro Corporation. We obviously started at the bottom of the table as most of the big players had established business in India. GE Healthcare was represented through a GE business unit called IGE, which had some presence in the X-ray imaging business. Thus, our immediate vision was to establish ourselves as a top-of-the-line medical equipment supplier and a preferred partner for Indian healthcare practitioners.

B&E: So, how has been your journey till date?

VR:
The biggest challenge we faced was do get business from the government. As we were a new entrant in the market therefore we could not grab a good mind share and were able manage only a meager percentage of its business. It took us time to educate them on our technology and service capabilities. However, today, with our investments in technologies, resources, education, et al, we are getting a good chunk of government business as well. Other learning was to bring in more local products and solutions for the local market. We believe we could have accelerated with “In India, for India” solution a lot earlier.

B&E: What is your advice to a MNC that plans to enter the Indian market in the near future?

VR:
India is a huge market, but it’s a unique market. On one hand, it has an urban market, which is at par with the developed world, on the other it has a huge under-developed market that is crying for basic necessities. I would say that the key to growth in India to get a deep understanding of the Indian consumer. One should be patient enough to play a long innings and should bring out products/solutions that are aligned to Indian consumer needs. 
 
 
Source : IIPM Editorial, 2012.
An Initiative of IIPMMalay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles.

Monday, January 7, 2013

RELATION: IRAN-SAUDI ARABIA

Reasons behind Iran-Saudi rivalry

Though there was improvement in their relationship later on (one: as the oil price fell down to $10 in 1986, both economies suffered, and misery loves...; two: common enemy Iraq invaded Kuwait, and then the Persian Gulf War took place in 1991), civilities remained generally ambiguous because of many reasons. Firstly, the sectarian conflict between Shias and Sunnis added to the irritant factor between the two nations as Iran remains Shia dominated and Saudi Arabia Sunni dominated (an encouraging fact for Obama’s advisors). Secondly, Iran, as the second largest oil producer in OPEC, regularly and deliberately produces more oil than allowed in its OPEC quota, leading to worsening competition with the world’s largest oil producer, namely Saudi Arabia. Thirdly, and ironically, Saudi Arabia is non-democratic and clearly pro-America; Iran is democratic and clearly anti-America. How can Saudi Arabia rectify this situation from here on? Uh, why would they want to?!


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