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

Saturday, June 01, 2013

Spinach and other alternatives to a plate full of kryptonite

I promised you a gusher of a fountain of youth on your plates last week. And here it is, as promised. And it isn’t about the donts but the dos of a good diet… Basically, stuff you must stuff yourself with, everyday, to get the most out of yourself and the day, for all the days that you have in you.

But before I begin, a caveat: this dietary opus is the inspired work of a man exploring vegetarianism and would therefore include his bumbling stumbling along the green walls of that world. Vegetarian but not vegan, so figure that one out before you wonder why eggs figure in my list of recommendations and soy doesn’t. And no meat or fish either, but I will offer substitutes.

Fish was a tough one to let go of. Omega-3 fatty acids are absolutely essential for good health and for keeping the two vital organs at the two ends of the spine healthy and functional into our swinging seventies and the decades beyond. And fish, especially marine fish, are some the most plentiful sources of omega-3. It was the presence of this essential fatty acid that made parents pump their kids full with ‘Seven Seas Cod Liver Oil’ in the eighties and nineties. The fish in turn get if from algae and sea-weed and coastal diets like those in Japan and Okinawa often get enough omega-3 from weeds like nori alone. But where was I going to find nori in New Delhi? And so the dilemma about fish continued until I discovered flaxseeds. They do just as well, and better, because with flaxseed or flaxseed oil, your system does not have to contend with the heavy toxic metals that are found in coastal fish.

Another problem with a largely vegetarian diet is the lack of vitamin B12, found mostly in animal products. And while the lack of omega-3 affects the body over a relatively longer period of time, B12 deficiency can hit you hard and fast. So if you’ve gone vegetarian and then had problems with digestion and are generally not feeling as full of beans as you used, your body might be complaining about not getting its regular dose of B12. So avoid the meats by all means but compensate with eggs, milk and cheeses.
If I may, my two pennies worth on balanced diets before moving on to the super foods…

 For most of us, the usual recommendations of two-three servings of lean protein, similar servings of dairy products (low fat if you aren’t particularly active and walking the dog for 20 minutes or a round of golf doesn’t qualify as active, training like a Navy SEAL does), five to twelve servings of whole-grain carbohydrates are all par for the course for most of us. It is the remaining two categories, fruits (about two to four servings) and vegetables (up to about five servings or more) that don’t quite measure up on our plates, especially if we eat out often. So take note and take care…

And at last the super foods, i.e foods that have the power to change a lot of whats wrong with your body and set it right. These are foods that fight diseases like coronary heart disease and cancer, lower cholesterol and free radicals and keep you feeling upbeat through a beat-up day. And while every expert has his or her own list of favourites and top-tens, let me introduce you to the ones that show up on almost every list and are ones that you would find at your doorstep and not necessarily only when you’re on vacation to a first world destination or a tropical paradise.

First up on the list, a little fruit family - the berries. Blue and black and every hue, cran and rasp and strawberries too, these little do-gooders and vigilantes protect the body from a variety of cancers, keep the immune system in top gear and are packed with antioxidants that keep the body healthy and fight signs of ageing. No breakfast’s complete without a handful of these.

Garlics, onions and other alliums is the next category of super foods. Cooking styles in most parts of India have a healthy dose of these foods and if not overcooked, are very good at maintain cholesterol levels and fighting certain cancers.

So just dig into the alliums and don’t worry about the breath and the tears for the next superfood will take care of that.

Coconuts! These big hairy guys must be amongst the happiest of fruits. They usually have a great view growing up on those swaying palms by the sea and that makes them rather giving. There’s the flesh and the oil and best of all, the water.

Tender coconut water is perhaps the best sports drink on earth. Bursting with electrolytes and without the preservatives, sugars and chemicals that make a lot of sports drinks rather murky, this is the drink to reach for after a sweaty workout or a long day in the sun.

Herbal Tea is one of the best sources of antioxidants that fight cancer and what is even cooler is the fact that green tea for instance had these anti-ageing agents that drive off chemical residues in the body that trigger the ageing process. So before you look up that botox surgeon your aunt recommended, go buy yourself a pack of green tea and give them a chance to turn back the clock.

Nuts and seeds are an absolute must for everybody, and even more so for vegetarians. I have already documented the joys of a mouthful of flaxseeds. And now I must let you in on another secret. Brazil nuts are a rich source of selenium which by the way is essential for rebuilding muscles. Seafood is a good source of selenium but if you want to stay vegetarian, Brazil nuts and barley are even better options.

Nuts and seeds are full of good fats, proteins and fibre. And walnuts are great for correcting heart arrhythmias and are for a must for a healthy heart.

Read more....

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

Wednesday, May 08, 2013

Productivity Unveiled – learning by doing

A look inside an auto plant reveals how learning by practically doing leads to higher productivity

For a period of 15 years beginning in the mid-1930s, the Horndal steelworks plant in central Sweden had been neglected. Except for minor repairs and replacement of broken equipment, no new investments were made to modernise the plant. Despite this apparent neglect, output per worker at the plant rose steadily at about 2% per year. Erik Lundberg, the Swedish economist who first observed the “Horndal effect” called it a case of “pure productivity.”

One oft-cited source of productivity is learning by doing, which is the ability of workers to raise productivity through experience. In fact, economists have credited the Horndal effect to learning by doing. The longer workers do the same type of job the better they get. The result is higher production without having to put in new machines or hire more workers.

Several studies have looked into the overall dynamics of the learning process - how fast productivity gains accrue, and whether knowledge acquired from experience can be forgotten over time and if it spills over to other areas of production. But partly because of lack of data, these studies reveal little about how learning occurs at a plant, making it seem as though productivity improvements from learning by doing arise spontaneously as production increases, without any scope for managers to affect outcomes.

To find out the specific mechanisms through which learning takes place, I along with Steven D. Levitt and John A. List, professors in the University of Chicago’s Department of Economics, analysed detailed production records from a major carmaker’s assembly plant. Beyond showing evidence of rapid learning by doing, our study, Toward an Understanding of Learning by Doing: Evidence from an Automobile Assembly Plant, provides insights into how workers’ experiences at a plant can lead to greater productivity.

The study finds that the knowledge individual workers gained while working at the plant was quickly incorporated into the production process. Workers, together with plant managers, made adjustments to the assembly line based on what they learned, changes that benefited the next batch of workers and boosted overall productivity. It’s instructive as to how piecemeal, even mundane changes can add up to substantial improvements in the production process.

LOOKING UNDER THE HOOD

We measured productivity increases from learning by doing by looking at the assembly plant’s defect rates over the course of a year. The plant assembled three variants of a model built on a common midsize-car platform. The shared platform means the three variants had similar body frames and powertrains but required different parts and assembly procedures. Immediately before we started our study, large changes were made at the assembly plant. The platform had just undergone a major redesign that included both mechanical and aesthetic changes. The automaker also altered the assembly line’s physical layout, brought in new machines and equipment, and modified the production process to emphasize that teams, rather than individual workers, would carry responsibility for a particular task in the line.
 

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

Saturday, April 27, 2013

B&E Infographics

Annual results: India inc.

India Inc. report card FY 2012

Events in the global arena kept india inc. in distress throughout the year. Gloomy macroeconomic conditions on the domestic front further added to their woes. though corporate India managed to save their topline during the past financial year, increased input costs played spoilsport for them as the bottomline shrank by over 8%, as suggested by the aggregate financials of 275 BSE 500 companies, which announced results by May 18, 2012.

Tough year on all fronts

Aggregate yoy revenue growth for BSE 500 companies (275 companies that announced their results by May 18) in FY 2012 remained at a healthy 23.9% with a marginal improvement over last year’s 23.03%. However, increased input costs have hit margins. Aggregate net profit after tax shrank by 8.79% for the above-mentioned period as compared to a superb growth of 24.39% in the previous year. With global markets still under pressure and the European epidemic getting worse by the day, the current fiscal, too, looks quite challenging and the key issue for India Inc. would be to keep their costs under check to safeguard their margins. Nevertheless, corporate India may soon get a breather from raw material costs as analysts expect commodity prices to settle down in the near future.

Banks post strong growth

The banking sector managed to achieve a 34.4% growth in revenues yoy, the highest among the sectors picked. Revenues for BSE IT companies increased by 25.58% yoy as compared to 19.73% recorded in the previous fiscal. However, a look at public sector companies shows a starkly contrasting picture. The aggregate revenues of all PSUs, which are part of the BSE PSU index, grew by 22.92% yoy in FY 2012 as compared to a growth of 25.87% in FY 2010-11. Both Banking and IT sectors surpassed the aggregate of Sensex constituents, which posted a revenue growth of 23.8% for the last fiscal. Going forward, considering the demand situation in India, analysts expect the situation with revenues to remain optimistic, but margins may continue to be stressed.


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

For More IIPM Info, Visit below mentioned IIPM articles
 

Wednesday, April 24, 2013

“Regulatory processes are complex & non-transparent”

Dr. Gopichand Katragadda, Managing Director, GE India Technology Center talks to B&E about how India can build a world class ecosystem for itself

B&E: What is your view on the ecosystem in India with respect to the R&D outcomes that GE seeks?
Gopichand Katragadda (GK):
A research ecosystem was one of the critical considerations for GE to set up the John F. Welch Technology Center in Bangalore. A good intellectual property culture and law, the presence of several successful R&D establishments, and a good pipeline of talent are amongst the things working for India.

B&E: How does GE perceive R&D ecosystems from a strategic perspective, and what initiatives are you taking to from your end?
GK:
GE has contributed to the Indian innovation ecosystem in multiple ways – interacting with academia through funded projects; funding students research through GE fund scholarships; awarding best Ph.D thesis with an environmental impact; funding innovative student run programs such as fuel-efficient cars; conducting and participating in thought leadership symposiums with topics in innovation and intellectual property; participation in policy development and advocacy. Our team members have written extensively, in books and journals, on innovation in the context of India. Over the past three years, the team has also focused on product delivery to the India market with specific focus on energy, healthcare & locomotives.

B&E: What sort of efforts and stakeholder collaborations are required to bring R&D in India at par with global standards?
GK:
Focussing on a few areas might actually make this a century of Indian innovation.
• There needs to be greater collaboration between industries & universities. Today, there is enormous government support for research at some universities. However, it is now time for the government to mandate university-industry collaborations as a criteria to access some of these funds and then use strategic intellectual property as a metric of success on these projects. A good model to look at in this context is the Semiconductor Research Corporation (SRC). It was originally setup in 1981 in response to the US steadily losing integrated circuit market share to Japan. SRC’s charter was to provide a competitive edge to its member companies by sponsoring cutting edge university research. Over the past 24 years, SRC has channeled $854 million in cutting-edge semi-conductor research. Today, through the efforts of SRC & others, the market trend in the semiconductor industry is now in favour of the US.


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
 

Monday, April 01, 2013

Do Outsider CEOs really Add Value?

Contemporary Evidence suggests that Outsiders may be likely to Excel and Outperform Insiders at Companies that are in crisis. But Historical and Empirical Research Suggests otherwise. Where does reality stand?

It was the spring of 1985, and the board of Apple Computer decided it no longer needed the services of one Steven P. Jobs. The main dramatis persona in the tech world’s biggest unfolding drama of a quarter-century ago was John Sculley, the Pepsi executive whom Apple’s board had brought in as CEO to oversee Jobs and grow the company — similar to Eric Schmidt’s role with Google founders Larry Page and Sergey Brin — in 1983.

Was Apple’s board right in bringing outsider Sculley to revive the waning fortunes of the company? The truth is that, depending on the company and its situation, it can be just as important to bring in outsiders as it is to develop homegrown talent. Around the time Sculley came on board, Apple was struggling with low Macintosh sales and there was a need to bring some order to the creative chaos Jobs had unleashed. Sculley got Jobs out of his hair two years after taking over Apple. In the course of undertaking his major reorganisation, Sculley fired 1,200 employees (20% of the total workforce) and put the broken parts of the company together to form one unified Apple and delivered its biggest growth, percentage wise, in its history prior to the return of Steve Jobs in 1997.

Like Apple, there are many global companies that are famous for promoting talent and grooming leaders from within but have all brought in outsiders when they needed to. According to analysts, the health, stability and competitive position of the company at the time of transition are the critical factors in determining whether an insider or an outsider is the best choice. Experts contend that insiders perform more consistently when their companies are in a healthy state at the time of appointment, whereas outsiders perform better when the company is in some form of crisis.

Ford CEO Alan Mulally, a longtime former Boeing executive, transformed an iconic American company that was on the brink of bankruptcy. Under Mulally, decision-making became more transparent, once-fractious divisions began working together, and cars of better quality started rolling faster from design studio to showroom. Mulally may be getting the rewards and accolades now, but who remembers what Ford was like in ’06, ‘07 and ‘08 when bold and difficult decisions were being made and people wondered if the aerospace executive could cut it in the automotive world. “Many doubted Mulally’s ability when he first came to Ford. There are doubters no more. He has proved to be an outstanding leader, and helped the company reach new heights,” said Michelle Krebs, an automotive expert and Senior Analyst for auto experts Edmunds.com. To get a sense of Mulally’s contribution to Ford’s turnaround, take a look at the increase in the value of the company from 2008 to 2011 as measured by its market capitalisation. During the period there has been over 1000% increase or an increase of $51.26 billion. A 1% share of that would be $512 million. The share price of the company has soared from a low of $1.26 on November 19, 2008, to $18.97 on January 13, 2011 and is currently trading around the $15 mark.


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

Thursday, March 28, 2013

Towards More Globalised Highways

The Booming Indian CV market has been Seeing a slew of MNCs Lining up to be Among The Numbers. Can they do an Encore of The Script that played out in The Passenger Vehicle Segment?

Just months after the world saw the banking sector in developed countries in a hell bound state, slowdown blues made their way into the Indian market. However, much before the cautionary signals were made public, the commercial vehicle (CV) segment was already feeling the heat and the months ahead took the sector deeper into the woods. This gave credence to a well accepted viewpoint in the industry; that commercial vehicle sales are a barometer of economic activity.

The industry showed a decline in sales by 21.69% yoy for FY 2008-09 with the so-called highly profitable M&HCV segment dipping by 37.01% to record sales of 1.48 lakh units as compared to the 2.35 lakh units sold in FY 2007-08. While Ashok Leyland managed to sell only 47,632 vehicles in the same period with a decline of 37.34%, market leader Tata Motors also felt the heat and its sales declined by 22% to 2,33,843 units.

However, to the respite of CV makers and supporters of the ‘barometer’ analogy, the market took little time in taking a U-turn, as the economy stabilised and started moving back on the growth charts; well in time before the economy also made a strong rebound.

“There is a lot of scope in the CV segment and the projected healthy GDP growth rates also suggest the same,” says Rakesh Kalra, CEO, Mahindra Navistar. The recent budget highlighted the strong investment push needed to develop infrastructure in India and this would boost the demand for M&HCVs (16T & above) & LCVs (less than 3.5T). Domestic sales figures show a yoy growth of 34.18% for M&HCVs and 24.08% for LCVs for the period of April 2010-February 2011 as per SIAM. Three wheelers displayed a rise of 19.96% yoy for the same period. By all counts, such numbers do not hurt! In addition, taxes have not been increased on CVs in this year’s budget. It is not surprising, therefore, that a number of global players have made their entry recently, or are looking for a foothold in this space. Over time, MNCs have virtually dominated the passenger vehicles segment in India. Will they be able to do an encore in the CV segment?

When you look at the incumbents, it looks to be quite a daunting challenge, for the market is dominated by three large players. Tata Motors still holds the pole position with sales of 3,48,544 units and a growth of 22.36% during the April 2010-February 2011 period, followed by M&M that dispatched 92,768 vehicles towards Indian roads with a growth of 23.13%. So far, Tata Motors, M&M and Ashok Leyland account for more than 80% of the total market in India. When it comes to MNCs, the leading company is SML Isuzu (Swaraj Mazda’s alliance with Japanese player Isuzu) posted the best performance with sales of 10,444 followed by Piaggio with sales of 8,444 units. The Volvo-Eicher JV came next with 932 units, while Volvo Buses posted sales of 488 units.


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 06, 2013

How about riding the green wave?

Though Carrier was one of the early entrants into the residential AC segment in the country, it somehow got overshadowed when rivals arrived. However, it’s clawed its way back into the sweepstakes by sheer market tactics. B&E does a walkthrough across Carrier’s strategic plants and plans

As we entered the production facility of Carrier Air-conditioning & Refrigeration Ltd (Carrier India) situated at Narsinghpur in Gurgaon (the plant is an exact replica of their China plant), we realise that we were venturing into a territory that had remained under wraps for years. There’s a reason we’re a-visiting the 20 acre plant. While at one point Carrier was the undisputed number one in India, with the likes of LG, Panasonic, Samsung, and even Voltas, Godrej, Videocon, Whirlpool et al coming into the AC market big time, Carrier’s market shares have steadily declined. Now, with a new MD, Gaurang Pandya, and with renewed efforts, Carrier claims to be clawing its way back – and we took up the offer of checking them out.

Our swift steps inside the plant are matched by Krishan Sachdev, Director Marketing & Strategy, Carrier India, who humours us, “People often ask us why our air conditioners (ACs) have larger structures than others? Our answer to this question is simple – we put in more components in our product.” This is actually that time of the year in the AC industry, when humour works better than anything else – well, sales start dipping at around this time of the year, and by the time winter hits, sales falls down to close to negligible amounts. This time around, while till the middle of the year, sales were growing at a thrillingly healthy rate of around 25%, due to the unexpectedly heavy monsoon, sales crashed within a month to abysmal figures across the industry. This is reflected in the Index of Industrial Production (IIP) too. While the consumer durables share of the IIP peaked at around 47% in June 2010, the same has fallen expectably to below 10% since then. But the year per se has been kind, what with the astounding heat wave experienced last year running into this year. As per Consumer Electronics and Appliances Manufacturers Association (CEAMA) figures, the AC market in India sold 3.5 million units in 2009; and has had a yoy growth of 15% this year. The Centre for Monitoring of Indian Economy (CMIE) reported recently that refrigerator and AC sales combined will rise at 24.4% for 2010-11 as compared to 18.8% in 2009-10.

MD Gaurang Pandya knows these figures by heart; and he’s betting on the fact that this year, Carrier’s sales (which makes up around 45% of the total India group sales of United Technologies, the parent company) will beat the forecasts. Although Pandya has just replaced Zubin Irani (who has been promoted to the position of Senior Managing Director of UTC Corporation in India) as MD of Carrier India, he is not new to the company. Pandya has in the past held many senior positions, hopping around functions like finance, operations, and sales & marketing. “I am really passionate about ACE”, says Pandya, 33, as we settle down in his office inside the factory premises. ACE stands for Achieving Competitive Excellence, and is Carrier’s in-house six sigma approach. “The difference between other approaches and ACE is that it’s more customer-centric. It takes inputs from the customers at all levels and then puts it back into the system,” he tells us. But is that enough to beat the flagrant competition? Pandya defends that this customer centric approach has helped Carrier India move ahead swiftly in the last few years (at a CAGR of 15%). For the financial year ending March 31, 2010, the company has recorded a turnover of Rs.8.9 billion and a net profit of Rs.835 million.


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 08, 2013

3G in India

3G in India is clearly too expensive on a rational and logical basis

The impact of the prices paid in India will result in an increase of capital employed for Idea, Bharti and Reliance of roughly 3.0%, 3.4% and 10.4% compared to the 255% increase for Vodafone. The immediate impact on the ROCE is to reduce the returns in the range of 0.2% to 0.9% which is relatively benign compared to the damage inflicted in the UK. Furthermore, unlike the UK, the Indian operators will be able to deploy their networks more cheaply and achieve greater performance by jumping to 3.5G in the form of HSPA. The spectrum will be used immediately to relieve congestion on the 2G voice networks and India will quickly emerge as the centre of innovation for low cost smart phones, applications and new mobile business models. The auction winners will not have to wait 10 years before they can start earning a return. Indian 3G prices for Mumbai, Delhli and Kolkata were certainly high and above expectations but they were not anywhere near as exuberant as those of the UK or Germany.

As regards the business case for the 3G spectrum, the 3G spectrum in India is both about voice and mobile broadband. Accessing the Internet from handsets i.e. the small screen will be a much bigger phenomena in emerging markets compared to developed countries. This is already apparent in some markets such as Egypt, Morocco and the Philippines. What matters now in India is not how much was paid for 3G spectrum, and as a classic “sunk cost” it should have little bearing on future decision making, but how quickly can a more rational market structure be established. Greater certainty over the future regulatory environment, including 2G spectrum pricing, along with consolidation and an end to the brutal price war will have a far more pervasive impact on future returns than the prices paid for 3G spectrum.


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 04, 2013

“It might be a jagged recovery with false starts along the way...”

Is the current stock market rally in India for real or is it just another bubble before a plunge?

B&E: Is the current stock market rally in India really a building block for the next bull run or is the momentum just short lived?
MM:
Yes, the rally is the beginning of the next bull run. The market is forming a bottoming structure which will be very volatile, so we can expect substantial downturns along the way. The fundamental fact, however, is that currently a base is being built for a long-term bull market. One thing to remember is that with the high volatility we experience these days, bull markets can go and come in a relatively short period of time, so you can have a number of short bull and bear markets before a large base is built for a longer term steady bull market.

B&E: What about other markets, particularly emerging markets? Are they also on the same track?
MM:
All emerging markets are up substantially from their low points.

B&E: What impact do you think the current political developments in India will play on the stock markets in the medium to long term?
MM:
The political developments have been very positive for the market since businesses, both foreign and local, see the opportunity to build infrastructure, extend schooling, housing and health care, and provide the predictable rule of law, which businesses need to thrive.

B&E: There are many economists who believe that the shape of economic recovery is going to be W. What’s your take on the same?
MM:
It will be more like a number of W’s... a jagged recovery with false starts along the way might be possible.

B&E: Is it the right time to invest in stock markets or should a retail investor still wait for some time before taking the final plunge into the stock market?
MM:
The best time to invest is when you have money. No one knows exactly when there will be a bull or bear market beginning or ending. We do know, however, that bull markets last longer than bear markets and bull markets go up more than bear markets go down. You are thus better off being in the market than out. However, that does not mean that you should blindly buy when there is a lot of bullish excitement. Cost averaging into the market is important with an extended one or two year time frame putting in the same amount month after month.


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, January 18, 2013

Barefoot in search of success

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

So what’s the latest offering from Ace Associates? Well, it comes in the form of a mobile service called, ‘Top five points’ through which a particular salesperson is provided with five reasons for justifying why a certain brand of automobile is preferable over a competitive brand whenever he feels a need to convince his customers. As Anuj claims, he has already roped-in two big auto brands as potential customers for this new service venture. At present, he is also on the lookout for new talent who can take care of his new ventures. And this too isn’t posing any problems to Anuj, “Surprisingly, the response to a start-up venture like ours, has been more than expected, which proves the fact that new-gen MBAs are more than willing to work with start-ups...”

Udit Bhandari, CEO of Indimoto.com, an MBA (with specialisation in Marketing) from The University of East London, UK shares some similarities with Anuj. He too joined the auto sector after his management education, where he worked in GM for about six months. As he says, his MBA education made it easier for him to establish his online second-hand car & bike portal in the country. “The MBA programme helped me in increasing my understanding of business and its various modalities. While setting up Indimoto.com, the learning received in management school helped me to realise various value propositions and to create a strong full-time team, a business plan and a marketing strategy,” he explains. Indimoto.com caught people’s attention via its carpooling initiative, which encouraged commuters to share vehicles to save fuel; clever enough an advertising strategy! Rashmi Vaswani, Founder, Rage Chocolatier, is also one of those who are following their passion with a purpose to strike gold; the only difference was that she couldn’t wait to get started and got down to business right after she completed her post-graduate diploma in management. Her passion was manufacturing chocolates, which she took up as a business opportunity in 2005, and success for her has been sweeter than the product itself.


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)

Wednesday, January 16, 2013

TELECOM: 3G LICENCING

While auctioning of 3G licensing has been announced, there are still doubts on its successful launch

It is noteworthy that the current prices are Rs.15 billion steeper than the ceiling prices proposed by TRAI. So if a company wishes to offer 3G, it would have to shell out Rs.35 billion to just get spectrum and then a further amount to get the processes in place.

As Anil Sardana, MD, Tata Teleservices Ltd. told B&E, “If there had to be bidding, it would have been better if the market prices had to determine the price for 3G rather than have such a high ceiling price as it would impact the plans especially in the B and C circles.” It is well known that India is a price sensitive market and if 3G services have to be used, especially in the rural hinterlands, then it would have to price appropriately.

“With the way the prices stand today, all the telecom companies would have to go back to their drawing boards and see if 3G fits in their revenue models,” shares a telecom company official on conditions of anonymity. Also, as the government is now planning to offer only three-four 3G slots (depending upon the circle) as opposed to seven as earlier proposed, there would not be enough competition in this sphere that would drive down the prices and ring in affordability as brought about in the voice services. So one wonders whether India will see 3G at all!


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)

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.

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.