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

Monday, June 03, 2013

Small films, big gains

Mumbai directors who followed their hearts and fought a dour, unflinching battle to protect their cinematic vision from market-imposed dilution have come up trumps at the 60th National Film Awards. The Sunday Indian analyses why ‘Bollywood’ movies that are not made for the 100-crore club are really the only ones that are worth celebrating

The 60th National Film Awards announced on Monday, more than anything else, have come as a strong vindication of the efficacy of independent cinema that blends the need for entertainment with a spirit of creative adventure. Nowhere is that truer than in the case of the healthy complement of Hindi-language films that have been adjudged worthy of being feted by the President of India.

The value of the National Film Awards stem primarily from the fact that they aren’t, as a rule, influenced by extraneous commercial considerations or the crowd-pulling capacity of the reigning movie stars, which, incidentally, are the two principal pillars on which all the Mumbai cinema-dominated, made-for-television award shows firmly stand.

The National Awards are meant to recognize excellence in Indian cinema – and that, barring stray aberrations, is exactly what they do. This year has been a perfect demonstration of what sets these awards well apart from the all the other glitzy star-driven events that are avowedly about showcasing the biggest and the brightest of the industry and not necessarily about celebrating cinema for its own sake.

Hindi, Malayalam and Marathi cinema have cornered the lion’s share of the major National Awards this year, with cinema in the national language securing a greater presence on the honours list than usual.

Tigmanshu Dhulia’s critically acclaimed Paan Singh Tomar has been adjudged the best film of the year gone by. The film’s male lead, the redoubtable Irrfan Khan, has won the best actor. Nothing could have been better for Hindi cinema – the two awards for Paan Singh Tomar are not only richly deserved, they provide a fillip to filmmakers who, while staying within the parameters of the Mumbai movie industry, desire and strive to carve their own niche.

The jury, in its citation, has lauded Paan Singh Tomar for its “sleek and sensitive handling of a not-too-common subject with remarkable aplomb”. Indeed, unwavering authenticity of location and lingo is the prime strength of the film, which narrates a gritty tale of the eponymous athlete-turned-brigand whose brief run from the law in the ravines of Chambal ended in dusty death in a police encounter in the early 1980s.

It certainly wasn’t easy for Dhulia to bring to the screen the compelling story of an ordinary villager, soldier and steeplechase champion who was forced by rural oppression and lack of redress to take up arms against the law.

The director worked on the idea for close to a decade, researched his subject thoroughly and, when he eventually got down to filming, he shot on actual locations, including the places in Chambal and the barracks in Roorkee where the real Paan Singh Tomar lived.

After it was wrapped up, Paan Singh Tomar languished in the cans for a year and a half for want of takers despite the critical applause it earned at festivals around the world. The film finally hit the screens in March 2012 and instantly garnered both critical accolades and commercial success. The rest, as they say, is history.
Recognition for Paan Singh Tomar at the National Awards is also recognition for the kind of culture-specific and rooted cinema that the Mumbai film industry has all but abandoned in its unthinking pursuit of big box office returns.

Significantly, all the other Hindi films that have won National Awards this year have emerged from independent spaces where funds weren’t plentiful and star power was barely available. These films swam against the tide with intent: one revolved around a heroine who is heavily pregnant all through a narrative set in Kolkata, the other dealt with the travails of a young sperm donor in Delhi.

Neither Kahaani nor Vicky Donor left any stone unturned to capture the essence of city that it was set in, even resorting to hit-and-run guerrilla filmmaking methods (especially in the case of the former) to shoot scenes on crowded streets and bylanes. Despite being fictional stories with dramatic twists, both films had a real feel to them.  

In both Kahaani, which has fetched director Sujoy Ghosh the best original screenplay award, and Vicky Donor, which has been named the “best popular film providing wholesome entertainment”, the script was supreme. The actors, outstanding as they were, had to play second fiddle. It was cinema that was the ultimate winner.
Indeed, who would have imagined that a film about a guy who works for a fertility clinic with little-known actors in the cast would go on to conquer all manner of scepticism and score big at the box office and in the critical ratings? An unqualified triumph for director Shoojit Sircar, Vicky Donor also fetched two best supporting actor awards – for Annu Kapoor and Dolly Ahluwalia. What a story that!

The jury noted that Vicky Donor is “a wholesome entertainer presented in a breezy and humorous fashion” and went on to praise the filmmaker for “deftly avoiding falling into the beaten track of formula films”.

Kahaani was definitely no less. Vidya Balan may have been beaten to the best actress prize by Usha Jadhav (who won for her powerful performance in the Marathi film, Dhag), but the suspense drama, whose editor Namrata Rao won a well deserved nod from the jury chaired by veteran filmmaker Basu Chatterjee, proved that there can be no substitute for artistic integrity.

The director made no compromises with his vision – the refusal to kowtow to demands of the marketplace served to make Kahaani a huge success story that it eventually became. The National Awards are only the icing on the cake.

It is significant that all the three Mumbai-based directors in question – Dhulia, Ghosh and Sircar – dared to follow their hearts in a movie industry where it is customary for superstars and big banners to call the shots and determine what kind of cinema gets into the distribution chain. These directors are among those that are spearheading a much-needed revolution and the National Awards for their work is proof that they are well on course.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA

Wednesday, May 08, 2013

Lack of connectivity and inadequate mechanization

A raft of infrastructure issues is affecting the growth and prospects of our ports. In the face of capacity constraints, lack of connectivity and inadequate mechanization, ports are burdened with excess traffic they can’t handle

The total available capacity at Indian ports during FY2012 was 1,172.93 MT while the total projected traffic for the same period is expected to reach 876.7 MT as per the National Maritime Development Programme. This translates into a Berth Occupancy Factor (BOF) of 74.7%. Going by the recommendations of the Major Port Development Plan prepared by the Port of Rotterdam, this is more than the acceptable berth congestion level. Against the ideal BOF of 60-70%, as recommended in the Plan, a majority of Indian ports operate with wavering BOFs. In 2010-11, while ports at Haldia, Vishakapattnam, Paradip and JNPT had an average BOF higher than the prescribed 70%, those at Cochin, Chennai, Goa, New Mangalore and Mumbai fell below the 60% threshold. Only Kandla port fell into the perfect mix of occupancy with an average BOF of 69.95%.

Non-adherence to the prescribed BOF levels directly impacts the efficiency of ports, something that Indian ports seem to be deeply plagued with. Another indicator of inefficiency is the cumulative average turnaround time for ships entering major ports of India, which aggregates 4.67 days. This is phenomenally high when compared to the turnaround time at the Singapore port, which is less than a day. While the delay in turnaround time can still be explained away as a result of large vessels needing more evacuation time, the tardiness in the matter of pre-berthing directly points to shoddy infrastructure and lack of ample berthing space at the ports. The fact that such pre-berthing delays were a regular feature throughout the year shows that there is an urgent need to undertake capacity expansion at the earliest. In order to quicken turnaround time as well, there is a need to have greater use of mechanization in the evacuation process rather than relying on conventional methods.

The practice and prevalence of conventional methods for port operations have been the bane at most Indian ports. In the case of Paradip port, it’s the inability to adopt modernisation that has bestowed on it the dubious distinction of having the longest turnaround time amongst Indian ports. Between FY2009-10 and FY2010-11, while the availability of modern wharf cranes at Paradip port increased from 75.3% to 95.23% during the period, its utilization rate increased by a meagre 0.3% from 20.85% to 21.15%. The situation was no different in the case of forklift trucks - while being available for use 97.21% of the time during the year, they were used only for 3.69% of the time that they were available. This sorry plight of low utilisation of modern machinery goes to show that Indian ports, instead of moving forward towards modernization, are still stuck on using tedious and slow conventional methods.

Even the Ministry of Shipping, which is the nodal agency for framing the policy agenda for port development, has not been able to spur port operators to adopt greater levels of efficiency and productivity. Its lackadaisical attitude towards port management is reflected in the fact that the MoS accepted less than appropriate target levels for performance improvement of ports. The only port to show some performance worth speaking of has been the Jawaharlal Nehru Port Trust (JNPT), which reported utilization rates above 60% and availability above 90% in 2009-10. No wonder that amongst all Indian ports, JNPT is India’s busiest container port, accounting for over 55% all Indian containerised cargo traffic.


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, May 03, 2013

Force MPs to use government hospitals

Government hospitals are in a terrible state but forcing Indian MPs to get treated there could be the beginning of actual change

Union Minister Vilasrao Deshmukh died on 14 August 2012 after suffering from critical illness and kidney and liver failure at Global Hospital (a privately run multi-organ transplant centre), Chennai. God rest his soul, but one wonders why Mr. Deshmukh wasn’t admitted to a government hospital for recovery? Was it because of a ready acceptance that government hospitals in India are nothing but a pathetic and shameful set of institutions existing purely to add to the corruption quagmire in India than to provide world-class health care facilities to patients, especially poor?

Of course, Mrs. Sonia Gandhi’s medical treatment in US and her routine checkups there could be attributed to the fact that she might have an urgent need to keep her medical conditions private. It’s unfortunate that 700 million Indians living below or just around the poverty line cannot afford to entertain either such lavish ambitions or destinations.

Similar is the case with P. Chidambaram, evidently with quite a lesser need for privacy than Mrs. Gandhi, who was admitted to Apollo Hospital recently for a laparoscopy procedure. Sir, would not your surgery have been better at, say, Deen Dayal Upadhyay Hospital, a government hospital in Delhi, which now has even had to employ professional ‘bouncers’ to protect their clearly inefficient medical staff from the relatives of patients who’ve been shortchanged or even maimed. No, Mr. Chidambaram, the nation needs you. Please continue not using government hospitals.

The examples are unending, how leading politicians and MPs specifically avoid getting their requisite operations conducted in their own government hospitals. But what about those MPs brave enough to employ the famed services of these institutions? Well, the courageous Union Minister of State for External Affairs Preneet Kaur in July this year, after visiting Rajindra Hospital, a government hospital in Patiala, Punjab, was clearly shocked beyond expectations. She subsequently beseeched the Punjab Chief Minister Parkash Badal to improve the disturbing conditions existing in the hospital. Similar was the case with Minister for Water Supply and Sanitation Laxmanrao Dhoble, who valiantly went to a government civil hospital in Chandrapur.

The Wall Street Journal wrote last year about India’s utterly caustic government hospitals, “Overall, the nation’s vast, government-run health system can be a dangerous place. Hospitals are decades out of date, short-staffed and filthy. Patients frequently sleep two to a bed. The Indian government invests only 1% of gross domestic product in health care, according to the Organization for Economic Cooperation and Development. Only seven countries spend less.” A report conducted by WHO in 2008 on healthcare sorted countries by their total expenditure on health at Purchasing Power Parity (PPP) per capita, and as a percentage of Gross Domestic Product (GDP). The report ranks India at 145th position, which is behind countries like Sudan, Mongolia and Yemen to name a few.

As the government readies itself to introduce Universal Health Coverage (UHC) in the 12th Plan to drastically improve the lives of Indians, the goal can only be achieved when the political classes who brand themselves as representatives of the people get their treatments done in government hospitals. In fact, it could even be made mandatory!


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

Thursday, May 02, 2013

RIP: Fannie Mae, Freddie Mac, 2012

The recent changes in bailout agreements indicate that the Federal Government is now gearing up the process to end the era of mortgage giants Fannie Mae and Freddie Mac. But is it the right time? Is the US housing market ready to accept this and move on with the reform process to a new system? An analysis of why this is essential.

The United States government couldn’t have been clearer on this. The latest changes to the US Treasury bailout agreements with government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac clearly indicate that it’s just a matter of days when the official words will be out to wind them up; the process has started though. As per the changes made to the agreements, the mortgage finance giants have been asked to turn over all profits to the government and wind down their large investment portfolios at 15% per year rather than 10% as stated earlier. Result: The US government would soon take over all business controlled by the two GSEs for which it has been acting as the primary guarantor since both the institutions announced bankruptcy in 2008. The fact is that when the US government decided to continue the two agencies after bankruptcy, everyone knew that sooner or later they will be asked to shut their shops. They only existed because the government wanted them for reviving the distressed US housing market. Now, when the government looks decisive, the question remains, has the US housing market stabilised enough to say goodbye to Fannie and Freddie? It’s a point worth exploring besides understanding how the two mortgage giants have contributed to the overall US housing scenario.

The story of Fannie Mae is certainly interesting in this regard for the fact that it was commissioned in 1938 after the Great Depression provide the necessary impetus to the US housing market as a part of the New Deal (a series of economic programmes enacted in US between 1933 and 1936). Interestingly, it was this mortgage giant that ended up initiating the second biggest financial crisis ever. In fact, by the time Global Financial Crisis started (in the second quarter of 2008) Fannie Mae and Freddie Mac (the younger counter art of Fannie Mae was commissioned in 1970 to give competition to the former) had been exposed to subprime/Alt-A loans worth a mind-boggling $388 billion and $392 billion respectively. Certainly, considering that the annual Private-label Mortgage-backed Securities issuances remained at over $800 billion per year in 2005 and 2006, one cannot say that these GSEs caused the crisis, but they for sure were the biggest contributors. Perhaps this was what prompted Senator John McCain to say that “the catalyst for this housing crisis” was Fannie Mae and Freddie Mac. In one of the debates during the Presidential campaign in 2008, he had claimed that these two GSEs “caused the subprime lending situation that now caused the housing market in America to collapse.”

However, with the taxpayers owing close to 80% of the two GSEs post bankruptcy, the onus was on the government to use them to reorganise the US housing market. And as it can be seen, the job is done, at least to some extent. After long, the US housing market seems gaining legs. What is more interesting is the fact that now it’s in a situation where people have started looking forward to it as a growth driver. Agrees Celia Chen, West Chester based Senior Director at Moody’s Analytics, as she tells B&E, “Housing, once the Achilles’ heel of the US economy, is starting to look like a source of strength in a recovery that has lost its vigor and faces significant roadblocks. That housing is now a bright spot speaks more about the weakness of the recovery than absolute strength in housing.” This comes as a relief at a time when the other drivers of growth are faltering. Housing is about to turn from being a drag on the broader economy to being a driver. 


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

Saturday, April 27, 2013

Meeting the sub-7 degree challenge

An economic slowdown is bad enough, and prevailing sentiment on India's prospects due to the oft cited 'policy paralysis' makes it worse. However, considering the long term demand potential, the profit leaders of India Inc. should take the lead in bringing investments, growth and faith back.

India’s growth engine slowed to a rate of 6.5% in the previous financial year, which presents India Inc. with what we call the sub-7o challenge (GDP growth falling below 7%). Perceptions of the country’s potential, though, went down by several notches. To be fair, optimism on India will continue to ebb and flow in future as well, but what remains unchanged is the paradox that characterises India. In the month of June, we became, most unwillingly, the flavour of global economic debate, when Standard & Poor’s revealed that we risked being the first among BRIC nations to lose our investment grade rating. Interestingly we receive this warning despite outgrowing Brazil ( GDP growth of 2.7%) and Russia (GDP growth of 4.3% in 2011)! In the same month, India, along with fellow BRIC nations pledged $75 billion to the IMF fund for the Eurozone, where the likes of S&P should be giving ‘rescue’ ratings and developing an altogether new scale. Some experts even project this as a fitting reply to the S&P rating! You do not need to look at the report to ascertain the rationale for this bearish sentiment. A government that predicted GDP growth of around 8.2% for the last fiscal initially, seems to be either too laid back or too constrained to make amends for the reduced figure, and the central bank isn’t helping either. But for the 50 basis points cut in April, RBI has kept interest rates high. The industry laments the RBI’s lack of concern for growth and fails to understand why interest rates are being kept high despite manufacturing inflation having come down. Unfortunately, if one looks at the HSBC Manufacturing Purchase Manager’s Index for June 2012, rate cuts could be delayed even further. The index read 55 in June compared to 54.8 in May, and

the report claims that input and output prices have risen significantly in June. Furthermore, a weak monsoon threatens an upward push to an already high WPI of 7.55% in May. However, delaying rate cuts has a detrimental effect from another perspective. High interest rates are leading to heightened incidence of debt defaults among SMEs, due to which toxic assets are entering our banking system at an alarming rate. Furthermore, investor uncertainty has reached new heights following the announcement of GAAR. Though it has been rolled back, no one is sure when it will return. There’s no timeline for the implementation of GST. Economists insist that FDI in retail could be a major step towards improving supply chain deficiencies in agriculture and bringing down inflation, but the government remains locked in a political logjam. Considering that there isn’t much fiscal room, urgent policy measures are needed to improve investor sentiment. India has received an impressive $36.5 billion in FDI equity inflows in FY 2011-12, a growth by 88% yoy (Department of Industrial Policy & Promotion). It’s important that this momentum is not lost.

Mention the word strategy to India Inc. and they would, with reasonable certainty, point an accusing finger towards monetary & fiscal policy. But then, even in this environment, there are businesses that continue to outperform. A look at our B&E Power 100 list this year as compared to the list five years ago provides some interesting insights. There are 32 new entrants, & some of the prominent ones include DLF, Jaypee Infratech, Adani Ports, Yes Bank, Axis Bank, Sun TV Network and Cadila Healthcare. Notable exits include Suzlon Energy, Reliance Communications, HCL Technologies, Unitech, MTNL, VSNL, Tata Tea, Tata Chemicals, Videocon & United Spirits. The reasons vary greatly, but the crux is that 68 members in the list have stayed the course and continue to be part of the list. And six of them remain in the top 10. Credit it to their world class practices, or their overwhelming hold on the market, they have managed to excel in the best & the worst of times.


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

Wednesday, April 24, 2013

“We’re looking at optimisation in terms of the right structures”

Carlo Chiarello, Executive Vice President – Smartphone division, Research In Motion talks to B&E about the future strategic direction of the company

B&E: After the appointment of Thorsten Heins as CEO in January 2012 how are things shaping up at Research In Motion?
Carlo Chiarello (CC)):
It’s business as usual, specifically in terms of what Thorsten has announced. We’re looking at optimisation in terms of having the right structures at the right places. As we have something important to announce, the media will be involved.

B&E: You have recently launched the BlackBerry Mobile Fusion software which will also support competing smartphones. Don’t you think the move undermines your ability to promote BlackBerry smartphones in the enterprise segment?
CC:
Not at all. We feel very strongly that we are absolutely open to making sure our enterprise customers have the best management solutions possible for all their devices. And BlackBerry Fusion is a result of a lot of our enterprise customers saying that they need solutions for other products that couldn’t really use our network infrastructure. We don’t think it’s bad at all. We think that we are helping a lot of enterprises do the job that we started doing for BlackBerry by allowing other devices to use it as well.

B&E: So the BlackBerry 10 devices would be based on the QNX Operating System...
CC:
At its core, yes. QNX has been a great company that we acquired a while back. So the BlackBerry 10 infrastructure would be based on technology developed by QNX.

B&E: The PlayBook was the first device to use a version of the QNX OS and had some compatibility issues with your network. Do you think devices with the new OS will manage to utilise RIM’s entire network infrastructure?
CC:
I’m not sure how severe this issue was, but the BlackBerry Mobile Fusion will not just help secure other platforms such as iOS and Android but will also take care of issues that customers might have encountered with the PlayBook, additionally supporting BlackBerry 10 devices.

B&E: The BlackBerry Messenger is one of those features which make BlackBerry devices extremely lucrative for customers. Are you planning to introduce BBM on the PlayBook anytime soon?
CC:
That is something that our development teams are looking at. I can’t make a commitment in terms of when it’s going to happen. But what we’ve found so far, from people using the PlayBook, is that they use it with their BlackBerry device. The BlackBerry Bridge app makes BBM work on the tablet. So we’re still exploring. If it’s feasible, then we’ll definitely have a BBM app for the PlayBook.


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

Friday, April 19, 2013

Can he be a change agent for his party?

Keeping in mind the mood of the electorate, which has become increasingly clamorous for change and development, Akhilesh Yadav appears to be going about in earnest giving his party a much-needed makeover.

Way back in the 1980s two Young Turks set out on a mission to transform Indian politics. One of them was Ajit Singh - the America-returned son of Chaudhary Charan Singh (aka kisan neta), the former Prime Minister of India. A computer engineer who spent 17 years in the US, Ajit made Baghpat his pocket borough, travelling the length and breadth of the constituency. He went all out to court the youth and dreamt of bringing about a massive change in the state’s political scenario.

The other young man was none other than former Prime Minister Indira Gandhi’s son, Rajiv Gandhi. A Cambridge University alumnus, Rajiv became a beacon of hope for the educated youth of the country.

Both Ajit and Rajiv went on to achieve huge success in terms of winning thousands of followers. Most still fondly recall Rajiv while Ajit Singh, now a Cabinet minister in the UPA government, is known as one of the most opportunistic political leaders of our times.

Flash forward to the present and there is an unmistakable sense of déjà vu. Once again we see a young duo trying to change the political scenario of the state. One of them is Rajiv’s son, Rahul Gandhi, and the other one is former UP chief minister Mulayam Singh Yadav’s son, Akhilesh Yadav. Both are ‘foreign educated’.

Recent months have seen Rahul take upon himself the challenge of resurrecting his party from the state of political wilderness in which it has been moldering since 1989. In a bid to revive his party’s challenge in UP and galvanise an otherwise moribund party apparatus in the state, Rahul has undertaken numerous stump tours and has been organising party and public meetings in different parts of the state. The Gandhi scion, in his campaign speeches, has repeatedly harped on the issues of employment and development and has talked of transforming the fortunes of the state if his party is voted to power. And though Rahul has staked his own political credibility in the polls most political observers are not very optimistic about Congress’s chances. But that has, however, not prevented senior Congress leaders such as Pramod Tewari from claiming that the Congress would be able to win majority on its own.

Though both Rahul and Akhilesh have their own challenges to face, the latter’s task seems more difficult. As the State President of the Samajwadi Party - an outfit accused of promoting casteism and sometimes even called the ‘goonda’ party. - not only does he need to change the party’s image, he also needs to bring it back to power. Sanjay Lathar, National President of Samajwadi Yuvjan Sabha and the man in-charge of Akhilesh’s political campaign, says, “We have the largest number of youths and females contesting the elections. About 122 of them are highly educated first-timers and 75% have held positions in student unions. We have also created history by giving tickets to 40 women.” According to Lathar, the party was approached by about 50 candidates with muscle power. “Around 30 to 35 of them would have won the elections. Yet the party decided not to embrace them,” he added.


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

Tuesday, April 16, 2013

Drafting a better future?

The Draft National Telecom Policy 2011 has introduced amendments which benefit the industry. Changes have also been made to clauses pertaining to M&As and exit routes. However, a lot more needs to be done in order to ensure welfare of telecom operators.

One look at the Indian M&A outcomes of 2010, and the dynamics of the Indian telecom industry instantly become clear. According to statistics compiled by Assocham, the combined value of the telecom M&A deals in India stood at $22.7 billion in 2010, which roughly makes up for 67.19% of the entire deal volume across India Inc. In fact, at any given point of time, there are 14 odd players competing to extend their presence in the world’s second fastest growing telecom market after China.

No doubt, Indian telecom has emerged as one of the greatest economic success stories, registering a consistent overall growth rate of more than 35% over the past decade in terms of subscribers (according to a World Bank study, a 10% increase in teledensity is known to boost GDP growth by 1.3%), but when it comes to regulatory framework the industry still lags behind it global counterparts and as such needs radical reforms. More so because the dream run of new entrants (including Videocon, Etisalat, STel, and MTS) – who ended up paying Rs.81 crore for acquiring 3G licences – keeps hitting roadblocks as more players join the bandwagon further increasing competition in an already cluttered business segment.

Further, entry costs are exorbitantly high and operating margins are overwhelmingly low. In fact, currently only the top four private telecom companies are EBITDA-positive. Although the operating environment has improved after Bharti’s July 2011 initiative to increase on-net, pre-paid and SMS tariffs by 20% was followed by major competitors, their margins still remain under pressure. This leaves telecom operators with no choice but to consolidate in order to put a cap on the ever rising costs. However, under the current contours of the regulatory norms established by the Telecom Regulatory Authority of India (TRAI), the largest telecom entity can consolidate to command a market share of up to 30%. Anything beyond that is subject to scrutiny and does not get necessary regulatory approvals. As such, while players like Bharti Airtel consolidated their position both nationally as well as globally (it acquired Zain’s African business for $10.7 billion), others such as BPL, Max Hutchinson, AT&T, Telstra had no choice but exit.

Therefore, consolidation and exit are two of the most important issues that need to be addressed in order to make the Indian telecom industry more efficient. This is where the new Draft Telecom Policy 2011 (introduced on October 10, 2011) becomes significantly important. As per the recent amendments incorporated, a deal giving birth to an entity with up to 35% market share will have no interventions from regulatory authorities. Deals which gives a company market share of up to 60% will be examined on a case to case basis. However, any deal where the new entity crosses the 60% barrier will come under strict interventions from TRAI. This seems like a move that will boost consolidation. But the fact that the draft NTP does not provide relaxations on restrictive M&A regulations offsets any benefit. As per a recent report issued by Fitch Ratings titled Indian Telecom Services: Regulatory Uncertainty to Continue, “TRAI’s recommendations to require a minimum of six operators per circle, for entities not to have over 30% market share or maximum spectrum of 14.4Mhz for GSM and 10Mhz for CDMA, effectively block consolidation in the sector.” But having said that the agency still believes that consolidation among the existing 10-13 service providers in each circle is inevitable and that the Indian telecom sector can sustain at most six or seven players in the long run.


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

B&E This Fortnight

INTERNATIONAL

BUSINESS, ECONOMY & FINANCE
He end of Gaddafi

In what will probably be remembered as a landmark event in the history of dictatorships, Muammar Gaddafi, the man who ruled Libya for 42 years was captured, beaten ruthlessly and finally killed on October 21, 2011, as he tried to escape with his convoy. Although it is not clear how the tyrant was murdered, videos shot by bystanders and interviews of eye witnesses reveal the disturbing events which led to his death. Most of the videos circulating on the internet are graphic in nature and give an extremely violent account of his death. The entire drama led to an intervention by the US Secretary of State Hillary Clinton, who has even suggested a possible enquiry into the incident given its chaotic nature. However, the more important question is the risk of a power struggle, primarily because Libya has the ninth largest oil reserves in the world. According to data released by the CIA World Factbook, the country produced 1.789 million barrels of oil a day before the unrest started. This accounted for roughly 25% of the GDP. In the aftermath of these events, oil production has fallen to 400,000 barrels a day. More importantly, even if Libya does manage to restore production, it is not enough to fulfill the employment needs of all Libyans demanding jobs. The developments need to be closely monitored by the US in order to establish a healthy democratic system..

The netflix syndrome

‘Strategy’ has turned out to be one of the most alluring and elusive business terminologies ever conceived. What Apple has achieved through strategy, HP has destroyed. In yet another case of a strategically and financially sound company getting it wrong, Netflix has almost undone what it had managed to do over the past several years. A few weeks back, Reed Hastings, co-founder and CEO of Netflix, announced that he would be splitting up the company into two parts. While Netflix will continue to provide streaming service, the DVD rental business would be christened Qwikster. The idea has been hailed by some and criticised by many. The poorly introduced pricing and service alterations ended up upsetting customers. In fact, analysts are estimating that Netflix might have lost as many as 600,000 US subscribers since July. The announcements did not alienate the customers of its live streaming service who continued to opt for the $7.99 monthly rental plan. The backlash came from subscribers who were used to receiving DVDs in red envelopes. It appears that they perceived the streaming service as a free add-on. Now, the CEO has suddenly decided to backtrack on the plans. How the company will regain lost ground is still a question, but this was a very bad move on the part of Hastings (no wonder he’s on the board of Microsoft).


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, March 28, 2013

“It’s a Problem if firms cannot Grow without The Founder”

As an Academician who was also on The Corporate side, Dr. Michel Kalika, Dean, EM Strasbourg Business School, has seen The Best & Worst of both worlds. In This Exclusive interview, he discusses Contemporary Business Issues and Compares Indian Students to those overseas

In a career span of over 26 years, he has been a professor, a corporate professional, a researcher and now the Dean of EM Strasbourg Business School, University of Strasbourg, based in France. Dr. Michel Kalika resumed his new job in 2008 and under his supervision, the school has grown from 1400 to 2300 students and has become one of best B-schools in France and the second best in R&D. He has co-authored twenty books and approximately a hundred other publications. In an exclusive interview with B&E’s Bhuvnesh Talwar, Dr. Kalika talks about his affinity for Indian students and the international scenario on education and careers.

B&E: How should the academic mix be at B-schools? Specifically, how do you intermingle industry inputs and theory in your business school?
Michel Kalika (MK):
In France, you have two great systems: you have the elite Grande Ecole programmes, and you have the traditional university system. While universities accept everybody, the Grande Ecole programmes – like the one at our business school – are competitive courses. In these, it’s not just about classroom teaching and creating book bugs. Industry interface comes only with enough practical teachings in the classroom. This is what happens at Strasbourg. Managerial practice and theoretical knowledge go together, because we have a strong support from the chamber of commerce. For instance, we have 170 companies who are supporting the B-school, and we have 104 faculties. Around 300 practitioners are coming and teaching during the courses. We are well known for the creation of case studies. Each week at the business school, we have one or two conferences on different topics. Practitioners are very often invited to speak at the B-school. They come and often offer the students jobs and internships. That is why our students find jobs very easily. Three to four months after the programme, 80% of the students are working. Around 40% of our students find jobs outside France.

B&E: In this era where B-schools teach their students to be founding entrepreneurs, what are the advantages and disadvantages of having the company’s founder as the CEO?
MK:
The competencies of a founder are not the competencies of a CEO. When you are a founder, you focus on entrepreneurship. You are creative, imaginative, and want to grow the company. But, I feel very often, founders need the help of professional managers. It is very difficult for a founder to keep control on the company, when the company is growing more and more. So, I will say that the two functions are complementary; there’s a synergy between the two. What I say to my students is that if you start as a founder of a company, please be careful. You need to be able to understand when you will need the help of the manager. And I say to the professional managers that you must understand how the founder is thinking to be able to help him maintain the control on his company.

B&E: What is your thought on optimal timing for the exit of a founder CEO, and what factors should be counted?
MK:
I don’t have a general answer. Sometimes a founder needs a strong help of the manager, after I would say 5-7 years. But, the founder can stay in the company. It would depend on the relationship between the manager and the founder. When you have served in the development of a company, you have steps. The steps are in the form of 5 year and 7 year plans. So, there is the first step after 5-7 years, and then another step after 11-12 years. It thus depends on the rate of growth of the company. If the company is only in domestic markets and another competitor is developing internationally, then you need a professional manager very soon. The founder is not always very good in understanding the culture of a different country. As the founder is focussed on his business, he may have difficulty in understanding another country’s business practices and culture.


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, February 08, 2013

The legitimacy of the UNSC

West’s shifting of the goalpost on Iran and its disregard for the Turkey-Brazil brokered Nuclear Swap deal has jeopardised the legitimacy of the UNSC, says Saurabh Kumar Shahi

“Two confident and growing economic powers, from what the world once referred to as the ‘Third World’, have now asserted critical political sway on a prestigious global security question. Turkey and Brazil, thus, have signalled that Washington can no more unilaterally characterise conditions for managing such matters,” says Flynt Leverett, noted Washington based Iran analyst, while talking to B&E.

Therefore, the unfolding excitement of the deal and the knee-jerk reaction of the Obama regime to quickly move a draft sanctions resolution in the United Nations Security Council will have long-term consequences on the texture of international relations. For those who still question the viability or the possibility of the post-American world, the deal is a wake-up call. Also, by countering Brazil and Turkey’s astonishing diplomatic coup by an egotistical show of the Big-5’s power, the Obama regime has taken an itinerary that could not only inflict serious damage on America’s reputation but also on the legitimacy of the Security Council itself.

And as coming weeks will unfold, getting the P-5 to see a common ground on a considerably diluted and deficient draft resolution in UNSC is far easier than managing the mandatory nine assenting votes to pass it. In all probability, even though Washington is able to hammer in new rounds of sanctions through an extremely fractured and divided Security Council, the initiative will profoundly damage its credibility. By now, Turkish Prime Minister Erdogan has already started questioning the UNSC’s “credibility” to resolve Iranian impasse. And if the US torpedoes the TRR deal before giving it a chance, as it will do in all probability, expect Turkey and Brazil to dent UNSC’s legitimacy with a generous help from “non-aligned” nations. As it happens, NAM is not dead as of yet.

So, Secretary of State Hillary Clinton’s announcement of the text of new draft of sanctions before even officially going through the nitty-gritty of the TRR deal reflects extensive disrespect, to say the least, for Brazilian and Turkish diplomatic pains. But what has the US achieved? Merely a watered down text.

To bring the Russians and the Chinese on the table, the US had to drop any idea of a prohibition on fresh ventures or other ideas that could have hampered Iran’s capability to generate and export hydrocarbons.


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.

Thursday, January 17, 2013

WHY DO THEY DISLIKE INDIA?

The governments of Pakistan, China, Sri Lanka, Nepal, Bhutan and Bangladesh reveal to akram hoque of B&E...

Nehru’s dreams started unraveling in 1947 itself when the founder of modern Burma, Aang San was assassinated and Indians were forced to leave everything and flee. By the winter of 1948, Nehru had got a first taste of jihad in Kashmir, a jihad that now threatens to debilitate India even as it destroys Pakistan. Two more shocks awaited Nehru and his vision of a peaceful and comradely South Asia in 1959. The leader of Sri Lanka, Solomon Bandarnaike was assassinated and the genie of anti-Tamil policies uncorked; the resultant civil war has just about reached a lull. And of course, China annexed Tibet, claiming it was always a part of China, forcing the Dalai Lama to flee and get exile in India. By 1962, when the Chinese military humiliated India, Nehru’s dreams of a ‘friendly’ neighbourhood were utterly and completely demolished. Since then, India has simply not been able to forge really close and friendly ties with the people and governments of its neighbours.

Let’s face it. No matter how many times Sonia Gandhi and Manmohan Singh stand in front of the mirror and ask “who is the fairest of them all?”, the fact is that India is not very popular in the neighbourhood. Perhaps the only saving grace is that it is usually the governments of these neighbouring countries that are more hostile towards India than their citizens. For Nepal, Sri Lanka and Bangladesh, India is the Big Brother and Bully that has a nasty habit of throwing tantrums and throwing its weight around. For Pakistan - or at least a large part of the ruling establishment in Pakistan - India is the Eternal Enemy that defines the existential rationale for the nation state. For China, India is a ‘hegemonistic’ upstart that needs to be taught a lesson every now and then. Why, even Bhutan has problems with India.

This is particularly galling for Indians and Indian policy makers. India is a unique country amongst major powers - including Japan, China, Russia, Germany, France, Britain and the United States - that has never invaded a neighbour. India is the only country amongst major powers that has actually ‘lost’ homeland territory in the last 100 years. India is known for its unique culture of tolerance, co-existence, respect for all religions and openness to new ideas and identities. And yet, why is it that people and governments in Sri Lanka, Nepal and Bangladesh think that India is a Big Bully which threatens their very existence? Somewhere deep down, Indians are downright offended by the very notion that India can play the Big Bully against any country. And yet, the perceptions persist...


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

“No schemes! No gimmicks!!”

LG finally had it right the third time in india. now it is decisively upping the stakes

B&E: What factors have worked for you in India?

VT:
We have been in the Indian market for 14 years now, and believe that our foresight and belief in the country and commitment to the telecom market, along with work with the government have helped grow the telecom industry. Nokia devices today straddle a comprehensive range of products at every price point for all segments. India is not only its second largest market globally, but is also one of the only three countries, where Nokia has an end-to-end presence, including a manufacturing unit, R&D centres and over 10,000 employees.

B&E: What strategy did you adopt in the initial days to help you penetrate the Indian market?

VT:
Nokia had a holistic approach towards developing the market and growing its consumer base. Our strategy has hence been focused on investing before time, understanding different consumer needs, building a strong product portfolio that caters to all segments of the market and making our products and services relevant to the Indian market. We were the first to invest in setting up a robust distribution network, to understand the potential of having an effective after sales network. Today, our reach and scale is amongst the best in consumer durable industry, let alone handset industry.


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