Showing posts with label IIPM BEST MBA INSTITUTE. Show all posts
Showing posts with label IIPM BEST MBA INSTITUTE. 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

Saturday, June 01, 2013

The Survivor

The wafer-thin margin of win in the Venezuelan presidential elections means that Nicolas Maduro will have to deliver results in governance and fast

This was supposed to be an easy victory. But when it came, it turned out to be a bitterly contested one. One that brought in its share of worries and introspection.

Venezuela's interim President Nicolas Maduro has triumphed in the Venezuelan presidential election with 50.66 percent of the vote against 49.07 percent for opposition candidate Henrique Capriles Radonski. According to the “first bulletin” results that were declared by the president of the Venezuelan National Electoral Council (CNE), Tibisay Lucena, with 99.12 percent of the votes totaled, President Maduro had bagged enough votes to make his victory irreversible.

Of the total popular vote polled, Nicolas Maduro received a total of 7,505,338 votes, against 7,270,403 for opposition candidate Henrique Capriles, with the margin of victory coming down to a wire-thin 234,935 votes. Total turnout was 78.71 percent, close to three percent down from the previous election last year when Chavez had easily trumped Capriles.

Of the 24 provinces and special territories, Capriles won a majority in eight, namely Zulia, Miranda, Lara, Anzoátegui, Táchira, Mérida, Nueva Esparta and Bolívar. Maduro bagged a  majority in the other sixteen. However, in contrast with the present election, in the October 2012 polls, Hugo Chavez had managed to easily win all but provinces of Merida and Tachira in the Andean region. And even in these two provinces, Capriles had barely managed to outsmart Chavez.

As this story goes to print, the opposition had refused to acknowledge the results and wanted a hundred percent manual audit of the results as opposed to 54 percent audit limit set by the National Electoral Council. President Maduro, on his part, immediately accepted the challenge. However, the Venezuelan electoral system is a wll-nigh fool-proof mechanism that consists of both digital vote recording as well as manual ballot punching. And that is why it is almost certain that the audit is not likely to change the numbers substantially.

Two of the biggest election observers' groups, The Union of South American Nations (UNASUR) electoral accompaniment mission and OAS declared the process valid and asked the opposition to respect the results and the National Electoral Council. International Electoral Observers, a group of over 40 observers that were deployed by the opposition MUD coalition to observe the process supported MUD's demand of a manual recount but refused to call the process a fraud in a setback to the opposition. Under the circumstances, the National Electoral Council has declared Maduro, president-elect.

However, the results has shocked the Chavistas and has raised questions over the strength of the movement following the death of Chavez. Experts suggest there are several factors that led to the less than impressive performance by the ruling coalition.

The biggest factor is the media campaign. Contrary to the popular belief, the media in Venezuela is largely private and owned either by big corporation aligned to the opposition or in many case the opposition figures themselves. The government owned media has a viewership of merely six percent and it has, by law, to show the campaigns of both the candidates. The private media is not bind by any such restrictions and thus lead a spirited campaign against Maduro. In the past too, situation was not much different, but Chavez's charisma was enough to offset any campaign. Not Maduro's.

“Maduro’s campaign itself had its challenges and weaknesses. Unlike Capriles, who had already run in February (in primaries), and in October, then in December to win as governor of Miranda, Maduro had never campaigned before. He had little time to learn how to do it, and to consolidate himself as a possible leader in people’s eye,” says Ewan Robertson, a political analyst who keeps an eye on the Venezuelan politics and runs an analysis website.

Also, there are areas where Maduro's government will have to show improvements and fast. There appears to be a perennial shortage of some food and other items from the market. As most of these businessmen and suppliers are opposition supporters, the evidence suggesting sabotage did not came as a surprise. However, voters are not going to listen to excuses. If it is sabotage, it wants the government to crack down on them and make stringent laws in order to address the problems at hand. Similarly, other economic issues need to be explained to the people outside the margins of rhetoric. The setback will definitely make the government take notice.

“Most of the western press has been unsuccessfully forecasting imminent economic collapse in Venezuela for 14 years, and this theme has been prominent lately. The press, which relies almost completely on opposition sources, will be wrong again,” says Mark Weisbrot, a Venezuelan political analyst.

Also, there was a massive misinformation campaign launched by the opposition in order to confuse the voters. For example, Capriles, who has always opposed Bolivarian Revolution in the past, actually promised the voters that not only will he carry on the Missions program started by Chavez and will deliver as many as 2,00,000 new house every year, he also promised, again like Chavez, to raise the minimum wages. In fact, Capriles left no opportunity to tacitly make voters believe that he is sort of a successor to Chavez. This clearly confused many voters who decided to give chance to a known face as opposed to a relatively unknown ex-Foreign Minister.


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

Friday, May 31, 2013

Luxury goes for the premium plunge

After tasting initial success, the three top players in the luxury car market are getting even more aggressive on price. Is the effort really worth it? By Deepanshu Taumar

Things were quite straightforward way back in 1994, when German luxury car maker Mercedes entered India to enjoy the first mover advantage and tap the small, but growing, affluent class in the country. It enjoyed a decade of monopoly in the luxury car segment till the time Audi (the luxury arm of Volkswagen) decided to make an entry in 2004. In 2006, markets dynamics were shaken further when another German player BMW eyed the growing market. From thereon, the trio has been locked in an intense competition, which saw Mercedes lose its position to BMW in 2009. Subsequently, catching up has been rather hard for the pioneer.

On initial impressions, all the three players seem to have a very similar kind of positioning – they are high-end luxury car makers whose customers are driven by the aspirational values of their products as opposed to functional values. But a closer look reveals significant differences. First of all, BMW changed the game by addressing a younger population – in the 30-40 years age group – as opposed to Mercedes, which was targeting individuals above the age of 40. Secondly, the company introduced the concept of affordable luxury. It tapped commercial users of luxury cars such as premium hotels and cab owners by selling stripped down versions of traditional models to them. Later, BMW introduced these versions to retail customers, which led to an unprecedented momentum in sales figures. The BMW 3 series came first, and next year in 2010, the company launched the BMW X1, which was their lowest priced car. The 3 series, which was a runaway success, was redefined in July 2012. BMW is positioned as a youthful brand that symbolises aggression and speed. Audi, on the other hand, is positioned as a stylish car backed by a great passion for engineering with the tagline 'Vorsprung durch Technik' in German, which means 'Lead by Technology'.

How is the erstwhile leader looking at this transformation in fortunes? “In the traditional luxury market i. e. above the Rs.30 lakh bracket, Mercedes is way ahead of the competition. But there are no volumes or numbers that we can share,” proclaims Debashis Mitra, Director, Sales & Marketing, Mercedes India. But even Mercedes is changing its positioning after around 16 years from a chauffeur-driven car, which was favored mostly by senior executives; to a more youth oriented brand that is associated with the Formula One. Last year, Mercedes launched the AMG driving academy, which has top drivers from the world teaching those who enroll for its course. The experience is aimed at building a strong association for Mercedes with sportiness. Further, to counter the advances of these two players, Mercedes has launched its B-class at a competitive price of Rs.21.04 lakh as compared to BMW X1 (Rs.22.40 lakh) and Audi Q3 (Rs.26.71 lakh), which were launched this year in June.

The traditional luxury car market is defined as cars that are priced above Rs.30 lakh. Cars like the B-Class, BMW X1 and Audi Q3 have defined a completely new segment in the luxury car market (Rs.25-30 lakh), as they are closer to the premium segment in terms of pricing. Companies are deliberately pursuing a downmarket stretch to generate volumes. That was the reason why the BMW introduced its sub-brand Mini Cooper in this Auto Expo with three different models - Mini Cooper, Mini Cooper convertible and Countryman - priced aggressively between Rs.24.90 lakh & Rs.31.99 lakh.

In addition, the war for market share now will depend quite significantly on how these three players leverage markets beyond the metros. Recently, BMW took up the initiative of introducing mobile showrooms to tap its new target markets like Karnal, Agra, Dehradun, Jamshedpur, Patna, Bhopal and Nashik. BMW believes that a lot of potential lies in these places for their entry level vehicles. Presently, the company has 25 dealerships in 18 cities and aims to open 40 more by the end of 2012, with 80% of cars financed by its financing arm. Mercedes is not far behind when it comes to tapping the potential of Tier II cities and is expected to open more dealerships in Ranchi, Bhubaneswar, Patna, Karnal and Raipur. It already has 60 dealerships in 29 cities. Audi, which also enjoys economies of scale with parent brand Volkswagen and with sibling Skoda in terms of manufacturing, has only 15 dealers in 15 cities.

However, Audi now intends to take the volume game to a new level by 2015, when it will be launching the Audi A3, which is expected to be priced at Rs.20 lakh. On the other hand, BMW is increasing its capacity to 11,000 units per year by investing Rs.1.8 billion in India, which also includes the facility at Tamil Nadu. Currently, the BMW group also sells Mini and Rolls-Royce apart from the core brand. By 2020, Mercedes aims to regain its crown, which it had lost to BMW in 2009. The former will launch cars that would be priced at less than Rs.25 lakh, starting from the A-class next year. Mitra admits that the company is waiting for the market to get more mature before going for an aggressive spree of model launches.

And things are just getting started. More potential entrants are expected to put their cards on the table. Volvo is restructuring its plan to be number 3 in the Indian luxury car market by 2020 with competitive launches in the entry level premium segment.


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

Wednesday, May 29, 2013

A man with two faces

Despite his liberal facade, Anwar Ibrahim’s connections suggest a hidden agenda

Malaysia, a  vital member of ASEAN, has been facing a huge turmoil in the last couple of years with hard-core Islamist fundamentalists hell bent on  turning the nation into an Islamist state based on the Shariat . There are many provinces in Malaysia which follow the Shariat like Selangor, Penang  and others. It is also an accepted reality that Malaysia turned Islamic way back in the 1960s, when Islam became the state religion with 60 per cent of the country’s population following one or the other form of Islam. However, the constitution of Malaysia guarantees equal freedom of religion to all.

But matters might not stay rosy for too long. Malaysia does have a brutal history of ethnic violence and witnessed severe riots against the Chinese minority in 1960’s and ‘70s and more recently against Indians two years ago. The dangers loom large with Anwar Ibrahim,  leader of the main Opposition People’s Alliance, a rainbow collation of many parties including the hard core Islamist Party, openly supporting it. Anwar tries to project a liberal democratic Western educated face for himself but the reality is totally different. The kind of connections he keeps portrays a different picture of Anwar, a potrait different from his public persona.

At first glance, people unfamilar with Anwar’s brand of politics would be seriously impressed with his political thoughts which he preaches openly and candidly in public, a staunch advocate of liberalism on many issues with freedom of expression and religion in Malaysian society as the centrepiece of his  pro-West approach.

At the same time, the kind of friendly equation which he maintains with powerful American Liberals like Paul Wolfowitz and other influential democrats as well as former US Vice President Al Gore, would make him the darling of the developed world. With elections looming large in Malaysia and the gap between the ruling party and the Opposition narrowing down with every passing day, the recent activities of Anwar Ibrahim have raised many eyebrows.

His recent travel in early 2012 to Arab countries like Turkey, Saudi Arabia and Qatar and meeting leading Muslim figures there like Sheikh Yusuf Qaradawi, a leading Islamic theologian, has raised eyebrows. Qaradawi is the unofficial leader of the Islamic world and he supports suicide bombings against Israel as well as female circumcisions. At Qaradawi’s house Anwar Ibrahim also met Khalid Mashaal, as per unofficial reports. Mashaal has claimed responsibility for numerous suicide bombings, killing and wounding innocent civilians, including helpless women and children. The trip, as many have claimed could be a part of damage control on part of Anwar Ibrahim after his open support to Israel’s defense of national security, a comment which did not go down too well in his own Malaysia.

Not just this. Many well placed sources believe that Anwar Ibrahim has close and personal contacts with key leaders of the Specially Designated Global Terrorists (SDGT). He is reported to have personal connections with  Youssef Al Nada until at least 2011. Reports claim Nada personally visited Anwar when the latter was on a visit to the USA in 2011.

Nada is an Egyptian banker who has been designated by the US, the UN and Switzerland as having financed terrorism through an extensive financial network and providing support for terrorist-related activities, including those undertaken by Osama bin Laden and Al-Qaida. Nada founded Bank Al Taqwa, a financial institution known to have provided cash transfers and investment advice to Al Qaida in preparation for 9/11.

Other close friends of Anwar include Hisham Al-Talib, former director of one of Al Nada’s companies and now with Ibrahim’s International Institute for Islamic Thought (IIIT) in the US as well as Dr Mohammed Manzoor Alam,  co-founder of the Al Taqwa Bank in union with Nada. Anwar has also served on the board of the Al-Baraka Bank which the US claims to be one of the main conduits for funding Al Qaida and other terror outfits. Anwar is also one of the founding members of  the IIIT which is currently under investigation by US Federal law enforcement agencies since the late 1990s, for the suspected financing of mega terror outfits like Al Qaida.


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

Saturday, May 25, 2013

Subhash Chandra Bose- Man, Myth & Mystery

He had the audacity to swim against the tide and the guts to chase impossible dreams. Over 67 years after his purported death in a plane crash, subhash chandra bose retains his unending enigma, writes Sutanu Guru with Dhrutikam Mohanty

Everything changes, and then it looks as if nothing has changed in an ancient land like India. Just a few kilometers away, people have been vehemently protesting the scheduled arrival of the Pakistani women cricket team to practice and play a World Cup match. Just about a month and a half ago, thousands gathered nearby in the shadows of a majestic fort to celebrate what is called the Bali Yatra. This festival goes back at least two thousand years when brave traders ventured into the Bay  of Bengal to travel to lands called Bali, Java and Sumatra (modern day Indonesia).


But for the motley crowd gathered in a neighborhood called Odia Bazaar in Cuttack (Odisha) on January 23, 2012 – the sense of history is neither as recent, nor as ancient. They have gathered to celebrate the birth anniversary of one of the most loved, most mysterious, most talked about and perhaps most tragically flawed heroes of 20th century India. Yes, we are talking about Netaji Subhash Chandra Bose, who was born in this very locality in 1897. Typical of how the state works in India, the government of Odisha has declared January 23 as a public holiday. And the sprawling L-shaped house in Odia Bazaar is now a museum that commemorates and celebrates Subhash Bose and his legacy. You can tread gently and gape at the bed in which he slept when he was a student of Stewart School. You can watch the uniform he wore as the Commander of the Indian National Army. You also look at sepia tinted impressions of women soldiers of the Rani of Jhansi Regiment of the INA. A self appointed guide points out how the swords carried by the women soldiers were smaller than those carried by the males. "You see, it was already difficult for the women to carry the heavy .303 Enfield rifles," he says. The people running the museum have identified five surviving soldiers of the INA belonging to Odisha who actually fought along with the likes of Subhash Bose and Captain Lakhsmi Sehgal in Burma, which is now Myanmar. All are in their nineties and all five will be felicitated during a special function that will be held some days after the birth anniversary.


These men have grown frail and their memories are failing. But some still have the fire smoldering in their eyes when they recall those 'heroic' days of battle against the British forces. Just a short distance away from the now sprawling capital city of Bhubaneswar, with its malls and Infosys offices is a village called Chimpello. This village is known in local folklore as the village of INA soldiers. Hear it from Bramhachari Uttaray, who says he is about 90 years old, "Due to poverty, a group of youths from our village had gone to Rangoon to work as labourers. At Rangoon, we came to know that Netaji had given a call to all Indians to join INA to fight against the British. Under the leadership of Biswanath Samant, 23 of us from the same village joined the INA at Rangoon. We all signed on a paper with our own blood in front of  Netaji in a meeting at Mangla in Rangoon to fight for the country. Netaji also put 'blood tilak' on our foreheads and told us that it is impossible to get freedom without blood. We all joined the war and fought against the British between 1943 and 1945... my memory fails me now but I can never forget the fiery speeches of Netaji till I die." These facts become folklore and then mythology with a hop, skip and jump of our collective imaginations!


If nostalgia were a currency, you could be running a mint near this museum. The men and the women appear suitably awestruck, and some men whisper about how Netaji has always been given a raw deal by the Congress. Some of the louder ones talk of Rahul Gandhi being anointed the heir apparent ready to rule India. They talk of how the Nehru-Gandhi dynasty has always been insecure about the power and influence of Subhash Bose and his so called ability to mesmerise people. Wild conspiracy theories, as is wont with anything to do with Subhash Bose, fly thick and fast as nods and murmurs of encouragement lead to further criticism of dynastic politics practiced by the Nehru- Gandhi family. Incidentally, but for a five year spell when the Congress had won a surprise victory, the father-son duo of the late Biju Patnaik and Naveen Patnaik have ruled Odisha as chief ministers since 1990.


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

ExecutiveMBA

Saturday, May 11, 2013

Weathering heights

Has the concept of weather weapons evolved from being a matter of sci-fi fantasy to reality? Has US stolen the march over us through HAARP?

Conventionally, the concept of weather weapons look more like a plot of a Hollywood sci-fi movie or a hypothesis derived from some fictional tale of Michael Crichton. Clearly, the hypothesis seems to be finding growing empirical support.

Weather warfare technology is not a very recent technology. An American scientist John Von Neumann, (from the US Department of Defense) was found undertaking similar researches back in 1940s for the American military. Similarly, a report by a BBC investigation team (dated August 30, 2001) revealed that the destruction caused by 90 million tonnes of water that literally washed away Lynmouth in August, 1952, was a result of a military experiment.

Today, the concept of weather weapons apparently is a reality being tested and engineered in ultra-sophisticated military control rooms – but of course, in complete secrecy. You see, most nations have to still contend with a three-decade old United Nations treaty prohibiting weather weapons development, which came into force on October 5, 1978, after the Convention on the prohibition of military or any other hostile use of environmental modification techniques.

The convention perhaps got momentum due to the Vietnam War, during which the US used various hostile weather influencing methods, including cloud seeding – a method that hastens rainfall by seeding clouds with catalyzing agents – to block enemy’s reinforcement channels; a fact revealed by the Weather Modification Hearings before the Subcommittee on Oceans and International Environment of the Committee on Foreign Relations, held during 1973-74.

Despite the UN Convention treaty, weather modification weapons are becoming a reality. In a conference on ‘Terrorism, Weapons of Mass Destruction, and US Strategy’ (April 28, 1997, University of Georgia), the then US Secretary of Defence, William Cohen fantastically revealed, “Others are engaging even in an eco-type of terrorism whereby they can alter the climate, set off earthquakes, volcanoes remotely through the use of electromagnetic waves.” For decades, Russia and even China have reportedly used this technology to get rid of untimely and unwanted rainfall, or to hasten rainfall on parched regions. In 2011, Iran’s President Ahmadinejad was found asking the US and Europe “to stop causing droughts [in Iran]” by forcing the clouds to rain before they reach Iran. Back home, the 2010 cloudburst in Leh was alleged to have been engineered by China.


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

ExecutiveMBA

Saturday, 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
 

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
 
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Saturday, April 13, 2013

Global top 10 debt analysis

The top 10 indebted nations of the world are the countries who are currently struggling from the financial downturn. While US tops The list in terms of absolute value, japan stands out in terms of debt to gdp ratio. Though raising of the debt ceiling by the us has already triggered a fear of double dip recession, there are others as well who are giving the world sleepless nights.

Everybody knows it

The raising of the debt ceiling by the Obama government followed by S&P’s downgrade of US treasury bonds says it all. With the country now sitting on top of a debt pile that is a notch higher than its GDP of $14.7 trillion, the largest in the world, the global economy is now teetering on the brink. But the gradual escalation in debt, which has been happening for over a decade before it just shot up to $10.5 trillion in 2008 after a $700 billion bailout package, doesn’t seem to be taking a breather. IMF forecasts US debt will increase to $15.15 trillion by 2015. Obama’s ratings have apparently fallen to the lowest ever. If one could prove a negative correlation of his ratings with debt, would that motivate him enough to reduce US debt?

Do the world like japan

If the US showcases the highest national debt, Japan is not too far behind with a total debt of 1,055.54 trillion Japanese Yen ($13.75 trillion using exchange rates prevailing on August 17, 2011). Considering the current sensitivity of the global financial market, the impact of the dire fiscal position of Japan could be felt worldwide as it is also capable of creating a domino effect on the sovereign debt front. The country has so far been able to save itself despite a huge debt load since the days of the real estate bubble burst (early 1990s). Also, a major reason why the country is still not considered to be in a financial-crisis mode is that it owes most of that debt to itself. Moreover, IMF forecasts Japan’s debt will grow at a slower rate than the US.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
 
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Tuesday, March 26, 2013

B&E This Fortnight

INTERNATIONAL

ECONOMY & BUSINESS STRATEGY

Time Inc.’s CEO – Fired!

After six months on the job, Jack Griffin, who took charge as CEO of the world’s largest magazine publisher Time Inc. last August, has been shown the door. Meanwhile, the division will be temporarily run by an interim management committee comprising three Time Inc. executives – Editor-in-chief John Huey, General Counsel Maurice Edelson and CFO Howard Averill – until a new CEO is hired. This is what Jeffrey Bewkes, CEO of Time Inc.’s parent company (Time Warner) conveyed to Time Inc.’s employees through an email. Griffin’s short tenure and untimely departure comes as a shock to most, including the sacked CEO. Despite his reputation of being an extremely accomplished veteran in the industry, the company claims that his leadership style and approach at work did not gel well with the culture in place. There are rumours doing the rounds that Griffin was axed because Edelson and Averill wanted him out for personal reasons (they were apparently unhappy of having been left out of an executive summit planned for March 2011), it is no secret that this former President of Meredith Corp.’s national media group, had failed to gain the trust of his employees and the top management at Time Inc. in the many months that he had spent at the company. Therefore, his exit was perhaps necessary to prevent other key executives from leaving the company.

AMAZON’s free deal?
Amazon, in an open war with Netfix (which offers online streaming service) unveiled its “free”, instant movie and TV show streaming option for those who are willing to pay (or are already paying) for its $79 Amazon Prime service. The company announced this on February 22, 2011. When news of this became public, shares of its competitor – Netflix, dropped by nearly 6%. Interestingly, even investors of the Amazon stock did not find the news too amusing as its shares fell by 3.2%. The move puts Amazon on a collision course with Netflix, which aims to dominate the online streaming market. The giant has claimed that it will make 5,000 films and TV shows available for “free”, just 25% in count of that offered by Netflix. Also, Amazon’s claims are not finding many buyers as its “free” selection is only a mere proportion of the 90,000 titles and shows that are mentioned in its catalog. Sample this: Actually, Amazon currently offers five of this year’s 10 Best Picture Oscar nominees, but none are included in the free offer. So, if you want to watch The Social Network, it will still cost you $3.99 for a 24-hour rental or $14.99 to buy permanent viewing rights, whether you are subscribed to its Prime service or not.

Sanofi’s $20 bn bet

French drug giant Sanofi-Aventis announced on February 16, 2011, that it is all set to buy the $4.5 billion-a-year profit-making Genzyme in an all-cash deal worth $20.1 billion. This represents a premium of 4.4% on the share price of the target (as on October 4, 2010, the first day of offer). This second biggest deal in the biotech space will give Sanofi a foothold in the market of diseases with small patient populations. Genzyme, which produces expensive medicines for disorders such as Fabry, Gaucher, and Pompe diseases, will help Sanofi compensate for declining revenue from drugs that it is set to lose patent rights.


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, February 06, 2013

Expecting too much?

Appointing an expat CEO, for traditional Indian companies, has always been a high stakes game, especially as their being ‘culture unfriendly’ is a huge disadvantage! Then why do Indian companies still take expat CEOs? Any valuable lessons yet?

As the troubled General Motors was busy finalising its restructuring process and doing some heavy duty pondering over hard decisions of retaining and shedding various brands under its vast portfolio post the bankruptcy filing under Chapter 11, home-grown Tata Motors was keeping a close eye on the developments. Around the same period, Carl-Peter Forster, President of GM’s European operations, had a decision to make of his own; one, a bigger job at General Motors – perhaps even the global head – and, two, becoming Group CEO of Tata Motors. Having worked at companies like GM, BMW and McKinsey, the Tatas knew that if Forster could be convinced, he would bring a lot of valuable experience on the table. For the London-born Forster (raised in Bonn and Athens, worked across the globe), India could promise to be an enlightening experience. But Forster also knew that if he were to join the Tatas, however hard he tries, he would – by rote nomenclature – be known as an ‘Expat CEO’ (short for expatriate CEO). Along with the bouquets that accompany this garnishing, Forster would have had the benefit of being brandished with the standard ignominious accusations reserved with honour for expat CEOs. But really, why do typically Indian companies take expat CEOs in the first place? Are there any lessons?

To be fair, this is not the first case of an Indian company headhunting for an expat CEO; and it definitely won’t be the last. In fact, the Tata group itself has believed heavily in global talent for top positions; which is logical since a huge 65% of the group’s revenues come from overseas markets. Raymond Bickson, MD, Indian Hotels (of the Tata Group), contributed heavily to the company’s global expansion through innovative acquisitions and tie ups with luxury hotel chains and cruise lines. But taking in Daryl Green as MD of Tata Teleservices wasn’t as rewarding as Green quit in two years, citing personal reasons and amid rumours attributing his resignation to his inability to mingle with the culture of the Tata Group.


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.

Tuesday, February 05, 2013

A grand, glitzy but shallow show

A 34% rise in India Inc.’s Q3 profit may bring smiles to many, but it’s nothing more than a statistical jugglery of an ultra-low base founded in the third quarter of FY2009. Though things have started looking better, India Inc. still has miles to before they can really celebrate by Deepak Ranjan Patra

“This has been a good quarter for Dabur with all-round improvement. We sustained good growth momentum across key consumer categories and geographies... Revenue from key categories is scaling up along expectations and costs are being better managed… The business outlook for our company continues to be robust.” These very words said by a visibly confident Sunil Duggal, CEO, Dabur India indicate how the last quarter has boosted the company’s confidence. But the question remains: does it represent India Inc.’s sentiment as a whole? Well, by and large, yes! After all, gauged on a year-on-year basis the last quarter was the best for corporate India since the day when Lehman Brothers collapsed. But Dalal Street is still apprehensive, raising some food for thought.

Validating the talks about the green shoots of recovery, 467 companies of the BSE 500 constituents (results declared till February 12, 2010) posted a cumulative net profit of Rs.661 billion, up by a sound 34% from profit after tax of Rs.493 billion recorded by the same companies in the year-ago period. Top line of these companies also swelled to Rs.6.78 trillion as compared to Rs.6.02 trillion in the corresponding year of the previous fiscal. While the rise in profit is more than what experts at the market place expected, growth of 12.5% in revenues is more in line with the market estimations. With India Inc. flaunting its superb result card after a relatively longer period, it certainly should have been a party time for many. But surprisingly the one which matters- Dalal Street, has shown little interest in these results.

Since the day the results season kick started in January, the Bombay Stock Exchange benchmark index, Sensex dipped over 8% from a closing of 17,526 on January 11 to 16,038 at the closing of the market on February 15. The advocates of the green shoots theory would certainly blame it to the global cues. But is not a fact that India Inc.’s performance also gets affected by those so called ‘global cues’ (read: US unemployment rate, burgeoning US fiscal deficit, debt crisis in Greece, weak housing sector, sluggish growth in consumer spending in the US…)? Nevertheless, while we are flooded with concepts all around, it’s no surprise that the markets care less about hedging, inventory costs and interest cycle... and so on! They simply weigh the companies on one parameter – real performance, not just results dressed to look good.


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

For More IIPM Info, Visit below mentioned IIPM articles.

Saturday, January 19, 2013

A recess from work!

Learn priceless lessons for life as you teach the lesser privileged children and work at making inequity in education history...

Having previously taught primary school children, I am particularly inclined to indulging them and endlessly listening to them prattle. Once, as I observed two innately sharp and eager kids from two different economic strata of society, it dawned on me how our country’s misdeeds (towards an ever-widening educational inequity) were limiting the growth of lakhs of bright children. For while the 8-year-old Sudhir (a helper’s child who went to a government-run school) was as witty and keen as the same-aged Sarah (a financial consultant’s daughter studying at a ‘reputed’ public school with world-class standards), his lack of exposure to the learning experience as hers (despite the same education board), had exponentially widened the gap between their respective banks of knowledge, apart from also impeding his ability to grasp new concepts.

Though this existing system of education can’t be turned around in the short-run, an innovative initiative – Teach for India – formally started in 2008 by a group of young leaders, shows promise of bridging this educational inequity. Inspired by the success of Wendy Kopp’s Teach for America initiative, and the positive results of the study carried to learn about the feasibility of similar implementation in India, the organisation is recruiting ‘outstanding college graduates and young professionals’ for its full-time two-year Fellowship. ‘Committing two-years to teach full-time in under-resourced schools’, these fellows are trained to become successful teachers and leaders.


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.