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

Monday, June 03, 2013

A few bad men

Why do Maharashtrians make such lousy home ministers? Yemon Ganguly Shukla probes this intriguing feature in a state with a rich warrior legacy 

It is not easy being a Home Minister in a country like India. Ask L.K. Advani, the leader who so desperately craved to be recognized as the natural inheritor of the legacy left behind by India's first Home Minister Sardar Patel. Despite his image as a hard liner and a nationalist, Advani himself knows that his performance as Union Home Minister was not something that historians will rave about. But he can find comfort in the fact that his far from sterling performance looks incredibly good when you compare it with some politicians from Maharashtra. Just pause and think about it for a moment: how can a state that has given so many towering leaders throw up such abysmal home ministers?

This correspondent wrote a cover story in 2007 for this magazine with the headline: Where Next? That story basically told what everybody in Delhi and beyond already knew. It was about how clueless the dapper Shivraj Patil was as Union Home Minister in UPA-1 and how he appeared more interested in changing his clothes after a terror attack than goading his officials to go after terrorists. In case you have forgotten, the track record of UPA-1 when it comes to terror attacks is worse than that of the NDA regime when terrorists attacked the Indian Parliament and when India had to suffer the ignominy and indignity of the hijacking of the Indian Airlines flight to Kandhar. The capital Delhi was rocked in 2005 by a series of bomb blasts that left hundreds dead and more scarred for life. The next year, bombs planted in local trains in Mumbai killed scores of innocent commuters and inspired a film called "A Wednesday" where Nasseruddin Shah plays an "aam aadmi" who sets out to kill terrorists in his own unique way. In the meanwhile, Naxalites had been rampaging in Bihar, Chhattisgarh, Jharkhand and Odisha. Then came the shocking exposures that most Indians were afraid to admit: the first that some Indian Muslims via the Indian Mujahideen were waging their own twisted version of Jihad and second, that some Hindu groups were plotting terror strikes of their own as revenge. Of course, our honourable Home Minister seemed to prefer calling all these bloodthirsty killers misguided Indians. Even as terrorists struck at will across India, Shivraj Patil seemed very secure in his job and kept proclaiming his undying loyalty to the Gandhi family. By the time the Batla house encounter, where some alleged terrorists and a policeman were killed, Shivraj Patil had become a national joke. And yet he remained the Home Minister and kept changing his dress before every TV appearance. It was only the outrage and perfidy of 26/11 that perhaps persuaded the real ruler of India Sonia Gandhi to let go of this embarrassment of a Home Minister called Shivraj Patil. In any other functional democracy, this man would have been hounded and exiled for his abject failure to protect Indian lives. But then, we have democracy Indian style so the dapper gentleman is now a Governor.

It would be difficult even for the cynical to compare Shivraj Patil with fellow politician from his state Sushil Kumar Shinde who now embarrasses the country almost every week with his laughable performance as the Home Minister. Shinde is another Congressman who pledges and proclaims his undying loyalty to the Gandhi family. Just recall how he reacted and behaved after the horrific gang-rape and murder of Nirbhaya when citizens in Delhi took to the streets to protest. He sounded genuinely puzzled in an interview with the behaviour of the protestors who refused to be cowed down by police brutality. In his opinion, Madam Sonia Gandhi had given an audience to some protestors and listened to them and so the grateful citizens of Delhi should have gone back to their homes because Madam had heard them. Just look at the perverse audacity of his sycophancy.

But then, Sushil Kumar Shinde, like fellow Maharashtrian Shivraj Patil is in the race to be anointed the worst Home Minister ever by future historians. So don't be surprised when he actually manages to repeat a statement in the Parliament without realising he is making a fool of himself on live television. In fact, his appointment as Union Home Minister reflects the casual arrogance with which the Congress treats Indian citizens as subjects.

When Shinde was Minister of Power, half the country shut down because of an unprecedented collapse of the power grid that prompted many across the world to laugh and mock at the sheer incompetence of Indians. Within 48 hours of this disgrace, Shinde was rewarded with the critical post of Home Minister. He has since performed as expected, with the nonchalant incompetence that only a sycophantic courtier can manage.

There is indeed a mystery here: the abysmal performance of Maharashtra politicians as home ministers. The whole world blames the then Prime Minister P.V. Narashima Rao for his failure to prevent the demolition of the Babri Masjid and its horrific aftermath that India is still suffering from. But how many remember that it was S.B. Chavan who was the Union Home Minister at that time? For that matter, do you know that Narashima Rao, though a product of Andhra Pradesh, used to contest Lok Sabha elections from Maharashtra? The irony is: Rao was Union Home Minister in 1984 when Indira Gandhi was assassinated by her own body guards and the Congress presided over the massacre of innocent Sikhs.


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

Friday, April 26, 2013

International

facebook: ipo debacle

The sizzle and fizzle of the most hyped IPO

Apple’s co-founder Steve Wozniak had reportedly warned Mark Zuckerberg about the glitches he might face on taking Facebook public. But when the hottest and most awaited IPO finally made it to Nasdaq on Friday, May 18, the mood was ebullient. Facebook’s public debut seemed like the greatest coming-out party in Wall Street’s history. Nobody thought that the euphoria would come crashing down barely hours later. For all the frenzy and ecstasy that went into the making of the Facebook IPO, the stock’s performance on the bourse has been quite anticlimactic. In a portentous sign of all that could go wrong and take the whoop out of investors’ joy, the IPO’s execution of trade was delayed by nearly 30 minutes on the first day itself. And things have gone from bad to worse thereafter. The share price tanked by nearly 13.1% by day five of trading. Even earlier, by day three itself, it had become clear that the breathlessly hyped $16-billion IPO would face difficulty in living up to its giddy expectations. The fall in the stock’s value and the accompanying embarrassment turned decidedly disconcerting after news emerged that Morgan Stanley, the lead underwriter of the Facebook IPO, had played some hokey-pokey by not fully disclosing the company’s revenue forecast in the run-up to the IPO. As a result of these avoidable shenanigans, not only is the stock still trading well below its initial offering price of $38 over a week after listing, the company is also now having to contend with shareholder lawsuits and government investigations. The IPO, which was universally touted as the poster child of the business of social media, could well become the new whipping boy for more Wall Street reform. However, not all investors have lost hope. Many believe that the IPO can still take Facebook’s valuation to nearly $104 billion and churn out money in the long run. But the ranks of believers are fast diminishing.

Nokia: Troubled business

Can Nokia pull itself up again?

It has been more than two years now since Finnish handset maker Nokia began losing steam to players like Apple and Samsung. The company has lost nearly 23.8% in global handset market share. Nokia’s handset shipments stood at 82.7 million units in the 1st quarter of 2012 (down from 108.5 million units in Q1, 2011). Analysts fear that considering the rate at which Nokia is burning its cash reserves, it may not be able to ward off the risk of debt default. Just five years ago, Nokia had piled up a whopping $12.54 billion in cash reserves, but over the past five quarters, it has used up $2.7 billion to prop up its faltering business. And there could be another outgo of $2.51 billion in the next quarter. The company’s short-term bonds for 2014 have already been rated as junk by Standard & Poor’s and Fitch.


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

Saturday, April 20, 2013

Do ‘Megatrends’ mean ‘Megabucks’ for DuPont?

Post economic meltdown, Ellen Kullman, CEO – DuPont, has focused the company around innovation through science. The idea is to use DuPont’s formidable research capabilities to meet the needs of diverse growth markets. And that’s where the real challenge lies.

It’s not easy to manage a 210-year-old company – a company that is credited with having invented the modern business model. From an explosives maker to a chemical company, DuPont has reinvented itself twice since 1802 and is yet again in the process of doing it for the third time as it moves towards becoming what it calls “a science based discovery business”. But if one looks at the way employees are groomed at the Delaware-based innovation giant, it becomes clear how such a diverse conglomerate is stably managed.

Take the President, Chair and CEO – Ellen Kullman – for instance. Her ascent to the top has been quite unusual. As an amateur in the industry, Kullman joined GE where she got the chance of observing Jack Welch while working under the then GE Vice-Chairman Edward E. Hood Jr.. After selling CT Scanners for the US based multinational, Kullman moved on to DuPont in 1988. Within a decade, she was running the company’s titanium dioxide business. In fact, she became the first woman Vice President ever at DuPont, managing 6,000 employees and a business generating $2 billion. In August 1998, Kullamn was summoned by Chad Holliday (then CEO). He discussed the possibility of setting up a consulting business around DuPont’s safety practices and suggested that Kullman spearhead it. On the face of it, asking her to leave a key position and initiating something that was completely unrelated to DuPont’s core business areas was like saying, “We don’t need you here. In the meanwhile, try this new project till you get a real job.” After giving considerable thought (and despite her close associates advising her not to take the plunge), she accepted the offer and made the project a $6 million business. It is perhaps this sort of experience that made her an ideal candidate for the top job.

However, when Kullman became CEO in January 2009, the financial crisis had gobbled up growth prospects around the globe. In fact, the economic meltdown revealed that despite catering to a distinct set of customers, there were formidable cracks in the company’s business model. Net income for 2008 fell to $2 billion as against $2.98 billion in 2007. As the crisis unfolded, sales declined by more than 50% in some divisions. First quarter earnings per share in 2009 declined by 59% to $0.54 (compared to the same period last year) . From a high of $52.62 in July 2007, the stock fell to an all time low of $16.87 in March 2009. As a response, Kullman attempted one of the most radical restructuring initiatives in the company’s history. Through 2009, DuPont’s 23 business units were integrated into 13. The initiative resulted in a reduction of 2,500 jobs (primarily in the the motor vehicle and construction related businesses in Western Europe and US). By the end of the year, DuPont had achieved $1.1 billion in fixed cost productivity. Although it was a bitter experience, it gave management a chance to look at new opportunities. As Kullman puts it, “When we looked at the strategic level during the financial crisis we asked ourselves, where are we headed as a company?” One key observation was that the agriculture and nutrition business contributed $8.3 billion to revenues (amounting to 31% of total sales volume). Encouragingly, it was more or less insulated from the after effects of the financial crisis. As a result, DuPont decided to diversify from its key products – Kevlar fabrics (used to manufacture a wide array of blades) and titanium dioxide pigment – to heavily focus on the food and nutrition business by acquiring Danisco (a Danish producer of nutrition and health-related products and enzymes) for $6 billion. It also forayed into innovative markets like solar energy, enabling materials for electronic components, and enzymes that help turn crops, like switch grass, into energy. So what is it that is forcing a 210-year-old chemical giant to initiate such a big shift?


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

Tuesday, April 16, 2013

Mindful leadership – When east meets west

In an exclusive B&E feature, Prof. William George, Professor of Management Practice at Harvard Business School, talks to sean silverthorne, editor-in-chief of hbs working knowledge, about how He looks to the East as a model for developing strong business leaders and how Leaders with low emotional intelligence (EQ), despite having a high IQ, often lack self-awareness and self-compassion, leading to a lack of self-regulation and loss of their very own jobs.

Prof. William George of Harvard Business School, an expert on leadership development, recently teamed with Tibetan Buddhist meditation master Yongey Mingyur Rinpoche to present a conference on “mindful leadership,” a secular process to explore the roles of self-awareness and self-compassion in developing strong and effective leaders. “To our knowledge, this is the first time that a Buddhist Rinpoche and a leadership professor have joined forces to explore this subject and see how Eastern teaching can inform our Western thinking about leadership and vice versa,” George says. For George, leaders who don’t develop self-awareness are subject to becoming seduced by external rewards, such as power, money, and recognition. They also have difficulty acknowledging mistakes, an Achilles’ heel that has crippled a number of CEOs who have appeared in the news recently. Excerpts from the interview:

Q: What is mindful leadership, and what are its benefits?
William George (WG):
Mindfulness is a state of being fully present, aware of oneself and other people, and sensitive to one’s reactions to stressful situations. Leaders who are mindful tend to be more effective in understanding and relating to others, and motivating them toward shared goals. Hence, they become more effective in leadership roles.

Q: How does one become mindfully aware?
WG:
I would not claim to be an expert in this area. Our Mindful Leadership seminar focused on the practice of meditation as one of those ways, with a variety of meditation techniques taught by Rinpoche. This was strictly a secular teaching, not a Buddhist one. In my experience I have observed that people become more mindful through prayer, introspective discussions, therapy, & the use of reflective techniques & exercises.

Q: You have said that few leaders lose their jobs because of lack of intelligence, but many do so because of lack of emotional intelligence. Can you talk about this a little more and cite a few examples?
WG:
Leaders with low emotional intelligence (EQ) often lack self-awareness and self-compassion, which can lead to a lack of self-regulation. This also makes it very difficult for them to feel compassion and empathy for others. Thus, they struggle to establish sustainable, authentic relationships. Leaders who do not take time for introspection and reflection may be vulnerable to being seduced by external rewards, such as power, money, and recognition. Or they may feel a need to appear so perfect to others that they cannot admit vulnerabilities and acknowledge mistakes. Some of the recent difficulties of Hewlett-Packard, British Petroleum, CEOs of failed Wall Street firms, and dozens of leaders who failed in the post-Enron era are examples of this.

Q: The two essential aspects of effective leaders, you explain, are self-awareness and self-compassion. Could you please elaborate?
WG:
An essential aspect of all effective leaders is authenticity; that is, being genuine and true to one’s beliefs, values, and principles that make up what we call someone’s True North. Authenticity is developed by becoming more self-aware and having compassion for oneself, without which it is very difficult to feel genuine compassion for others. Self-awareness starts with understanding one’s life story and the impact of one’s crucibles, and reflecting on how these contribute to motivations and behaviours. As people come to accept the less-favoured parts of themselves that they do not like or have rejected, as well as learning from failures and negative experiences, they gain compassion for themselves and authenticity in relating to the world around them.


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 04, 2013

Will Indian Online travel Boom invite M&As?

The Indian Online Travel Industry has witnessed tremendous growth since 2004. Today, it’s the most Crowded space in The E-Commerce Segment with new players joining The Race every year. Question is – how will this Overcrowded space grow spacious?

As more and more Indians turn to the web for their travel needs, the online travel portal market in the country is gearing up for a bigger action in the coming days. With travel portals now offering a host of new services – putting forth their travel packages and providing safer mode of payments – booking travel online is no more confined to getting a low-cost airline ticket. In fact, these portals are now becoming travel guides rather than just ticketing stations. As per comScore’s data for April 2011, the number of visitors to travel sites in India increased 32% compared to last year. The study by the US-based digital market research company revealed that around 18.5 million visitors (age 15 or older visited) turned to the Internet for their travel needs in April 2011. While Indian Railways led the list of the top 10 visited sites, registering 8.4 million visitors this year (an increase of 8% from the previous year), Online Travel Agency sites (OTAs) secured the remainder of the four top spots in the category. MakeMyTrip reached nearly 3.9 million visitors (up 63%) followed by Yatra Online with 3.5 million visitors (up 82%) and ClearTrip.com with more than 2.1 million visitors (up 80%). Interestingly, the US-based Expedia Inc. secured the #5 position with 1.8 million visitors (up 12%).

This clearly indicates that there is a distinct shift in consumer preference as more and more people now prefer to plan and book their travel, and holiday needs online. According to travel industry research company PhoCusWright, India’s online travel market is the fastest-growing online travel market in the Asia Pacific region. What’s more? The company expects the Indian online travel industry to grow at a whopping 28% rate to top $7 billion by 2012. And it’s because of this reason that OTAs are now exploring newer avenues to generate revenues. In fact, revenue from advertising has already taken a backseat, and the focus now is more on cross selling of products, combination of products, et al. Further, with the rise in the sales of non-air products, industry players are confident that newer product categories will be explored in the travel and holiday space.

The increased pumping of money in the sector has also helped portals spend more to attract customers. In the last couple of years, most of the sites broke-even, securing a comfortable position. For instance, Nasdaq-listed MakeMyTrip registered a profit of $3.7 million in Q4 FY2011 as compared to a loss of $1.3 million in the same period last year. Even for the financial year ending March 2011, it had a profit of $4.8 million as against a loss of $6.2 million in FY 2010.


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

For More IIPM Info, Visit below mentioned IIPM articles

Thursday, March 07, 2013

The Kid in Liz

One thing that Liz Hurley can’t sleep without is reading an Enid Blyton book! The English beauty revealed that her biggest literary influence were books by this children’s author. Liz still tucks up with Noddy and Big Ears, and has also converted her son into a fan. Liz was reading Famous Five en route to India and Tweeted regretfully about forgetting her book on the plane. Whether we’re reading Enid Blyton books at 45 or not, let’s hope we manage to look as glamorous as Liz does at 45!


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

Friday, January 11, 2013

NARESH GUPTA, MD, ADOBE india

I realised... if I pay them the ransom, my son would be back...

B&E: What was your first reaction when you discovered that your son Anant was kidnapped?

Naresh Gupta (NG):
Obviously, it wasn’t a very happy moment for me or my family. Infact when the incident happened, I was in Hong Kong for business purpose. I immediately flew back and after some discussions with some of my close associates, we decided to hire an expert from Philippines. That was my first reaction and the first step I took. I didn’t want to compromise on anything and we decided that taking expert opinion and consulting was the best way to get out of the situation and get my son back, safe.

B&E: How were the state of affairs at home? You being the head of the family, did you get into that assurance mode that all would be set right?

NG:
Of course not! I was as worried as they were, and I simply told them to handle their own tears. I had to be practical and had to keep my mind off all the grief and think clearly. I had to spend more quality time thinking about what can happen rather than waste time in grief, thinking about what happened!

B&E: So how did the family come to know about Anant’s kidnapping?

NG:
The family received a phone call stating the obvious. Then the police was immediately involved and I openly decided to involve the media as well. We were very open about it and hoped that telling the world would make it easier for us to nab the kidnappers. There were people telling me how two men on a motorcycle had picked up my son from where he would catch his school bus everyday. He was just in the pre-nursery standard then, and it would have been a rather easy task to kidnap a kid, who was totally unguarded, totally unarmed or forewarned.


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

Thursday, January 10, 2013

Indian consumers were not ready for them

when they entered, indian consumers were not ready for them. but reebok began relentless expansion. the strategy has worked...

Didn’t over expansion result out in cannibalizing their own sales? For instance, in many localities (like South Ex in Delhi) they have two stores. Actually Reebok managed its retail strategy through product proliferation and brand extension strategies. Explains Subhinder, “In one store, the first floor has lifestyle products and on the second floor, we have sports goods. In the second store, the first floor has women’s apparel and the second floor, men’s... It might sound very simplistic, but this is indeed what helped us to run our stores in same locality phenomenally!” The company also rolled out its premium brand Rockport in India in 2000 and started creating brands for entering into new segments followed by opening new stores for the same. India insights worked well. For instance, Reebok launched shoes with broader forefoots, that suit the Indian customer, unlike the offerings of its international rivals (IBEF).

Finally today, these strategies have helped the company earn a turnover of Rs.14 billion for the year ended 2008. Their focus has also shifted now, since women’s apparel is contributing to 30% and Reebok Classic (the lifestyle venture) is contributing 10% of its Indian turnover. In fact, the women audience is being pampered with the recently launched Easy Tone shoes. By just walking in them, women can get a well toned butt. Irrespective of catering into so many segments, still the company wants to resist the temptation to create its own manufacturing hub in India and is cashing in on the sourcing hub of Adidas.


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

India reveals how they made it…

In an exclusive conversation with B&E, V. Vasantha Kumar, Senior VP and Head – Marketing & Communications, ABN AMRO Bank, India reveals how they made it…

B&E: Can you share a latest marketing initiative that has bought in really good results for ABN?

VVK:
Well, we have signed Sachin Tendulkar as our brand Ambassador which symbolises our commitment to high performance with consistency. In fact, we have launched a series of events where we give our customers a chance to express their thoughts and ideas about a variety of topics.

B&E: What are the factors that ABN keeps in mind while deciding upon the marketing mix?

VVK:
Our marketing mix directly depends on the customer segmentation that we do. We do comprehensive marketing research and then decide upon the kind of communications strategy and the channels to be used. Moreover, word of mouth publicity is critical in our kind of business, particularly for the niche segment.


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

Wednesday, December 12, 2012

JEFFERY IMMELT: WORST EVER CEO OF GE

...atleast that name has GE written on it!

Now how does destroying shareholder value in the long term, and dangerous short-term double-digit decline in earnings indicate “performing well”? We fail to understand! Worse, to cover up the real ‘gloomy’ air floating around the GE campus, Immelt further announced a remorseless $12 million in bonus to reward performance.

And if you thought that was plain numerical criticism, then contrast this: during the same time as this ‘magnanimous doling out of mercies’ is happening, GE has announced its first dividend cut since the Great Depression (that’s 71 long years back!) – a massive 70% cut to just 10 cents a share per quarter.

Bill Rothschild, who once worked GE’s strategy team also comments, “I believe that one of the reasons that GE is in the current situation is that it’s Go Big/Go Global strategies were wrong...” Sad, Immelt thought he was on the right track! One major issue for Immelt is the fact that he took over from a man who ensured that GE’s Mcap rose by more than 1100% during his tenure of 19 years; what a contrast! Surely, Welch’s ‘neutronic’ HR policies worked well for GE’s shareholders, and now it’s time for Immelt to put that rule back into action; question is: who’ll go first? Well, the world can wait for another century, and it will. GE too can, and it will, but only if Immelt puts his name on the ‘first-to-go list’. Dear Welch, your successor wasn’t wrong, his ‘ego’ was... Perhaps you never told him this, allow us to: You don’t have to be right all the time Jeff; you don’t. But you can also never forget your top priority – your shareholders? You did & you deserve the ‘Worst CEO of the century’ award for it.


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

For More IIPM Info, Visit below mentioned IIPM articles.

Monday, December 10, 2012

RICK WAGONER: EXIT

32 long years did this Harvard MBA take to understand GM; one fine day it took the US Senate to fire him! No more gambles, Rick...

Then there are other issues that will keep you fresh in our memories. Your utmost detest for fuel-efficiency and your scrapping of the futuristic EV1 ‘electric car’ project wins you our fan cards! Really Rick, we admire your awareness, and the manner in which you forgot how the global auto market is more elastic than the US army. Afterall, you belong to the Harvard MBA Class of '77, right?

Oh yes, read your bio too – was interesting! Born: February 9, 1953, in Delaware, to George Sr. & Martha. Post-MBA, you chose GM over other lucrative jobs. Commendable! Your big break came in 1992, when the-then CEO Smith appointed you as the CFO. Your low-key lifestyle and the fact that you command a high popularity quotient amongst your employees, makes you most respected as a friend; but as a leader, there are complaints that you lacked that “ruthless streak needed to make the tough decisions required to bring GM back from the brink of bankruptcy.”

But Rick, we still stand by your ox-like faith in hybrids; an engine type which despite having existed commercially for 15 long years, accounts for a pathetic 2.15% of world automotive sales! Now 2.15% does not define majority, does it? But it’s ok Rick; poor mathematics is not a turn-off for us. But it sure did get your pants on fire, and we couldn''t do anything about it. [Sorry about that; for oil supply may be increasing, but water is really scarce in our parts of the world.]

Next, come to geography. Rick seriously, what were your grades in school? CEOs of manufacturing entities realised years back that shifting operations to emerging economies can help cut costs tremendously. You did too, but like the kid who skips homework, you jumped out of the window of sanity, and trashed your vision into the nearest garbage tank… and enjoyed playing football on American grounds. Oh yes, GM is an American legacy brand; how can GM cars be produced in emerging third-world, Hydrogen sulphide emitting lands? Well, thanks to your ‘Be American, buy American’ ideology, every GM vehicle produced in the past two years has cost GM $4,500 in just welfare cost. Rick, you rock! Your drained out industrial relation skills & super-confused branding philosophy have also put GM in a fix. Today, the cost of pension & healthcare per GM man-hour is a high $24 – a blood-freezing 100% more than at Toyota, Honda & Nissan! Now beat that!


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

For More IIPM Info, Visit below mentioned IIPM articles.

Saturday, December 08, 2012

Welcome to the Chernin ranks!

Peter Chernin will no longer remain at News Corp. But why is he leaving? And who will be his successor?

Raising a toast to goodbye seems to be the flavour tailored for this season, across boards, and across companies; and even the big boy of the media world, News Corporation stands as a no exception. The company’s second in command (only after Chairman and CEO, Rupert Murdoch) Peter Chernin, President & COO, News Corp, has decided to step down after his two decade-long stint at the company. So what led to Chernin’s decision? And more importantly, who will fill in the void once Chernin moves out in June 2009?

Chernin, famous as one of the most ‘powerful’ executives in the media world, was promoted to the post of President and COO after seven years of his service at News Corp, and today has earned great repute, so much so that many in the media refer to him as Murdoch #2 or News Corp #2. Chernin’s biggest strength was his keen eye for the right assets, and thanks to him, News Corp acquired many right assets at the right times. He took Fox Film Studios to the pinnacle of success and supervised everyone with the production of the world’s highest grosser ever – Titanic. He was involved in the launch of Fox Network’s biggest show ‘American Idol’ which continues to be the most watched TV show in US even in its eighth season. His other significant achievements include the MySpace buyout, negotiating the writer’s guild strike and the more recent deal with NBC Universal to launch a free online video destination named Hulu. Acknowledging Chernin’s contributions, even Rupert Murdoch has said, “Peter’s contributions to the company over the past two decades have been immeasurable.” But that is where the trouble starts; knowing that you can never become the top guy, with Murdoch around?


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

For More IIPM Info, Visit below mentioned IIPM articles.

Friday, December 07, 2012

The Multi-national Comex!

MCX still has a long way to go despite the multi-billion rupee achievements. A B&E exclusive interview....

B&E: What degree of importance has MCX SX attained so far?
JS:
We started stock exchange in currency in the first week of September, 2008. Three months after the first stock exchange became operational in the country, trading volumes had increased by 65% on a month-to-month basis. In terms of share, we had gained around 50.5% of the total market by January 2009, with an average daily turnover at Rs.12.20 billion. While these figures may look impressive in a short journey of around 6 months, we have a long way to go, considering the huge potential for currency derivatives that exists in India. Most of the corporates, with exposure to currency risks are still operating though over-the-counter market, and are in the process, not only paying higher transaction costs, but also facing other challenges including high counter-party risks. Sometimes, they get lured by structured currency derivative products which they purchase without any knowledge of the underlying and without thorough understanding of the terms of conditions under which these products are offered. Our challenge lies in creating awareness among the stakeholders about benefits of participating through exchange-operated currency derivatives route. We are currently focussed on reaching out to SMEs, who have suffered most in the current global turmoil & related currency risks.

B&E: Innovative ideas and expansion have been the key areas for MCX over the years. How decisive are they for the success of MCX?
JS:
Like our counterparts in the BFSI sector, it is innovative products and expanding tie-ups with benchmark markets that have led the MCX growth story. Our efforts to reach-out to market players with awareness about products and information about the market ecosystem through various other media sources played an equally important role in propelling MCX to the position it has attained today.


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

For More IIPM Info, Visit below mentioned IIPM articles.


 

Why so sore, Charles?

Indian aviation players must follow a selective pricing policy in order to maximise their revenues

“She stoops to conquer”! That’s the title of a hilarious play written by Oliver Goldsmith, which tells the story of Kate Hardcastle, a girl of wealthy lineage, who pretends to be a commoner to win over the love of Charles Malrow, a man who is uncomfortable with wealthy women! Analogously, Indian air carriers have stooped often in the past few years by slashing airfares to conquer the hearts of consumers, who are distinctly uncomfortable of their ‘class pricing’ act.

This was evident even recently when domestic Indian air carriers like Kingfisher, Air India, SpiceJet and IndiGo had slashed air fares by up to 50% in January to boost the dwindling air traffic (air traffic declined by 14.65% in January on a yoy basis). However, they haven’t stooped too long this time. Airlines have once again increased fares by 15-20% earlier this month. Jet Airways was an exception, as it was pressurised by the Civil Aviation ministry against doing so.

With this, tall claims of passing the benefits of the air turbine fuel (ATF) price cut to the consumers are biting the dust. If ATF prices have dropped by 60% in the last five months, then why this reverse pricing strategy? Well, ‘Charles’ refuses to be impressed this time around! According to reports by Centre for Asia Pacific Aviation (CAPA), after Indian air carriers slashed prices to lure back passengers in January, revenues of full-service carriers and low cost carriers fell by 50% and 40% respectively. Hatim Broachwala, Aviation Analyst, Khandwala Securities Limited, avers, “The strategy failed miserably and now they have gone for a reverse strategy to increase yields.” A majority of air carriers have completely scrapped the basic fare of Rs.1 to Rs.100 from their price bucket with immediate affect.


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

For More IIPM Info, Visit below mentioned IIPM articles.