Showing posts with label IIPM New Delhi. Show all posts
Showing posts with label IIPM New Delhi. Show all posts

Thursday, September 19, 2013

Stonewalling transparency

There is a unanimous opposition from political parties to the CIC order that puts them under the ambit of the RTI Act. Parimal Peeyush has the details.

There was distinct unanimity on television screens after an order by the Central Information Commission (CIC) put six national parties under the ambit of the Right to Information (RTI) Act. Setting ideological and personal differences aside, the political class has united in their quest to prove why the act does not and should not apply to them and that the CIC had acted beyond its mandate.

On June 3, 2013, a full bench headed by Chief Information Commissioner Satyananda Mishra, held that the ‘‘INC, BJP, CPI(M), CPI, NCP and BSP have been substantially financed by the Central Government under section 2(h)(ii) of the RTI Act. The criticality of the role being played by these political parties in our democratic set up and the nature of duties performed by them also point towards their public character, bringing them in the ambit of section 2(h). The constitutional and legal provisions discussed herein above also point towards their character as public authorities... it is held that AICC/INC, BJP, CPI(M), CPI, NCP and BSP are public authorities under section 2(h) of the RTI Act.”

In October 2010, NGO Association for Democratic Reforms (ADR) and Subhash Chandra Aggarwal had filed RTIs seeking information regarding contributions received by the various political parties. In response, except the CPI, all other parties refused to disclose information stating that they don’t fall under the purview of the RTI Act. Subsequently, a complaint was filed with the CIC in March 2011 requesting that political parties be declared as public authorities.

Since then, political parties have launched an all out attack on the CIC for going beyond its mandate and explaining how and why they just could not be held accountable. And the consensus was breathtaking. Said Congress’s Janardan Dwivedi,‘‘It is not acceptable. Such an adventurist approach will damage democratic institutions’’.  Sharad Yadav, Janata Dal (United) believed that the ‘‘CIC has acted outside its jurisdiction. The government should step in.’’ Congress’s archrival, BJP’s Nirmala Seetharaman, concurred. ‘‘Political parties are already giving information to the Election Commission (EC) and the Income Tax (IT) department. How many authorities are we going to respond to?’’ The CPM could not agree more with the BJP. Says CPM’s Nilotpal Basu, ‘‘this order opens doors to interference in the internal functioning of political parties. There also needs to be clarity on whether political parties are public bodies in the sense as laid down by the Constitution.’’

Political parties are wary when it comes to transparency in their own functioning. Their major contention: we cannot be defined as pubic authorities since we have not been established or constituted by and under the Constitution, nor by any other law made by Parliament or the State Legislature, nor are these bodies owned or controlled by any appropriate government.

The CIC agrees but declares them as public authority due to the substantial funding they receive from the government in the form of land, accommodation, free air time on state-run Doordarshan and All India Radio, electoral rolls, income tax exemptions and other services availed at highly subsidised rates.

Other major points that parties have raised include ambiguity on being answerable to multiple authorities and that the information, particularly related to funding of political parties, is already being furnished to the IT department and the EC. But critics are unimpressed. “They do not know the ABC of the RTI Act. There is a misconception that they will now be answerable to two authorities - the EC and the CIC. RTI Act does not say that public authorities are accountable to the CIC. It says that they are accountable to the public. The role of the CIC comes much later,’’ RTI activist and petitioner in this case Subhash Chandra told TSI.

Another concern is interference in internal party affairs. However, activists point out that there are provisions under Section 8 of the RTI Act that enables them to withhold information. “It is the fear of the unknown that is making political parties so wary,’’ says founder member of ADR Jagdeep Chhokar.  He adds,‘‘When the RTI Act was being implemented, there was stiff opposition from the bureaucracy. Later, a survey revealed that over 60 per cent of RTI petitions filed came from government servants. In the present context too, it is the political leaders who are scared of RTI, not the rank and file,’’ he adds.

Parties are apprehensive on the issue of funding, most of which comes in the form of donations. Under the Representation of People Act, 1951, parties are required to submit contribution details received in excess of Rs 20,000 from any person or a company. Politicians however do not include in it multiple donations made by the same person, entity or company aggregating Rs 20,000 or above during the year. Political parties have also adopted the coupon system for collecting funds by issuing of coupons in lieu of receipts to donors for cash contributions. Since these are cash donations, it becomes all the more difficult to establish the identity of the donor. This implies that a lot of cash donations received remain unaccounted for in the books of accounts as only those amounts would be recorded for which a receipt has been issued.

Data obtained through RTI makes a strong case for transparency. Income of political parties from 2004-05 to 2010-11 shows steady growth. The total income of INC went from Rs 222 crore in 2004-05 to Rs 307.08 crore in 2010-11. This was followed by the BJP whose income rose from Rs 104 crores in 2004-05 to Rs 168 crores in 2010-11 and the Bahujan Samaj Party (BSP) which registered a growth from Rs 4.2 crores in 2004-05 to Rs 115.7 crores in 2010-11.

When it comes to the share of donations received in excess of Rs 20,000 in total income, BSP has declared that the party has not received any donations above Rs 20,000 though its total income from the party's ITR has been declared at Rs 17267.84 lakh; of the national parties, 57.02 per cent of total income for CPI has been received through donations above Rs 20,000 while BJP’s donations above Rs 20,000 amount to 22.76 per cent of the total income. Of the regional parties, RJD (56.13 percent) and TDP (37 percent) derive maximum income from donations above Rs 20,000.


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

Monday, September 9, 2013

Movie Review: The Great Gatsby

The best Gatsby...

F. Scott Fitzgerald's magnum opus, The Great Gatsby, has historically proven to be a tough beast to tame for the big screen. There have been four attempts previously and none of them were good. Try staying awake through the one made in 1974 , for example.

This time, Baz Luhrmann steps in along with an all star cast, takes a good shot at it and succeeds. Why does he succeed? Just by looking at the scenes, or his earlier work, you would understand that Luhrmann’s greatest strength is his style and flair with which he directs. And The Great Gatsby, desperately needed that to make it a success.

Talking about the plot, the film shows America in all its early 1900’s glory. The new rich made the country a place where everything was larger than life - the great American dream was beginning, and in such a setting the mega star cast was really well chosen.

Leonardo DiCaprio and his real life friend Tobey Maguire play the characters of Gatsby and Nick Carraway respectively, in a manner only they can. DiCaprio’s performance makes this the best Gatsby so far, delicately balanced by Maguire’s charmingly delicate performance. Speaking about charmingly delicate, Amitabh Bachchan, even in his small cameo, makes a hearty mark as Meyer Wolfsheim.

Overall, the film carries with it all the style of its director and cast. However, what made the story so popular and loved, was not the dazzle but its heart. That is where this film falls short and becomes just a feast for the eyes, not so much for the heart


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

Tuesday, June 4, 2013

Movie Review: Django Unchained

Is that a nigger on a horse?

Welcome to Tarantino’s history lesson number 2. In our last outing, Inglourious Basterds, we learnt that Hitler didn’t commit suicide but was assassinated by French revolutionaries.

Now we get to know that in the antebellum era, a time when black slavery was at its heights, a black slave called Django, gets to ride a horse, eat white cake and shoot white people.

Tarantino makes you fall in love with cinema once again. He truly shows what this art form is capable of. Django Unchained tells the story of a freed slave who treks across the United States with a bounty hunter on a mission to rescue his wife from a cruel plantation owner.

Jamie Foxx plays Django; a role which has to be played with just the right amount of hesitation and steadily growing confidence as Django’s mentality slowly evolves from that of a slave to a man who bows to no one.

 Dr. King Schultz, the bounty hunter who frees Django, played by the amazing Christoph Waltz is the star of the film. Having played an impossible role earlier in Basterds, Waltz returns to sizzle the screen with an impeccable performance as the bounty hunter who trains Django to live his life as a free man.

Leonardo DiCaprio appears as Calvin Candie, the plantation owner with a hell lot of charisma but with a deviant streak of cruelty. Having been warned by his house slave Stephen (Samuel L. Jackson) of Django and Schultz’s plans, Candie is killed by Schultz before all hell breaks loose. Django is finally confronted with an epic western shootout, which he finally wins and takes his wife safely away.

The word “nigger” is sprayed around as if it was running out and Tarantino often crosses the line with bloody slave fights and gruesome revenges. But hey, it wouldn’t be a Tarantino film otherwise. Go watch it. It will be one of the best films you see in your lifetime…


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

Who directed Ek Tha Tiger, Khiladi 786,Son Of Sardar ? Who Cares? !

Monojit Lahiri probes the status of today’s B-town directors, rocking the fashionable Rs 100 crore club and discovers, shockingly, that most of them are invisible!

The redoubtable genius, stormy and controversial polish director Roman Polanski (Knife in the water, Rosemary’s Baby) had once categorically stated that “the director is always a superstar. The best films are best because of nobody, but the director. You speak of classics – Citizen Kane, 8 ½, Seven Samurai, Gold Rush and City Lights – it’s the director who is the star. He and he alone makes and creates the film.”  Actually, Europe has always been the Camelot for directors. Comparatively, in Hollywood, they were – thanks to the feudal studio system – on a tight leash. The director was usually a hireling along with the writer, cameraman and wardrobe lady. He was apprenticed at the studio where he got his tutoring and he tunneled (as best as he could) through someone else’s choice of cast, script and editor, as effectively possible. Sure there were exceptions (Hitchcock, Billy Wilder, John Ford, Billy Wilder) but then, most of them were Producer-Director. The rule was simple. The Producer ran the show and the studio put its stamp upon it.  Formulae were sacred. Directors were not, and eminently interchangeable at will!

In year 2013, doesn’t this diktat apply scarily to B-town as well?  Does any mainstream director have the guts to say, ‘I think of myself not as a director, but a filmmaker; someone who strategically and creatively uses people and equipment to make a personal expression that will resonate with my audiences?’ Before anything, however, let’s get some facts straight and perspective in place.  As SRK has repeatedly pointed out, stars in Bollywood dominate the minds and hearts of the Indian audience and their presence remains the single biggest magnet for the insane popularity and craze of the blockbusters.  The truth is there for all to see. The late Manmohan Desai and Prakash Mehra may have propelled some of Amitabh Bachchan’s greatest box-office successes (Zanjeer, Namak Halal, Sharabi, Muqaddar ka Sikander, Amar, Akbar, Anthony; Coolie, Mard) but what has been their scorecard before and after the Big B connect happened? Farah Khan’s twin successes were also with SRK (Main Hoon Na & OSO) and flops with Akki (Tees Maar Khan). And so on and so forth…

Cut to the present scenario. The recent Ajay Devgn starrer, Son of Sardar was a hi-decibel, hi-profile offering chewing miles of publicity due to its public spat with Yash Raj Film’s (YRF) Jab Tak Hai Jaan (JTHJ), remember?  Now, can you remember the name of the director?  Okay, who is the director of Akki’s return to the Khiladi franchise, Khiladi 786?  Next, the biggest, YRF’s Dhoom 3 is one of the most eagerly awaited release of 2013, both because of the dazzling and popular franchise value and the first-time-pairing of Aamir Khan (playing baddie!) and Kat Kaif. Guess who wields the megaphone? Do I see an entire ocean of blank faces? Chill. Not your fault, guys. The age and ritual of celebrating the director -  Bimal Roy, Mehboob Khan, Guru Dutt, Raj Kapoor,  Hrishikesh Mukherjee, Gulzar and Basu Chatterjee among others – is clearly over and it’s the star who categorically calls the shots in the mainstream universe. Get any one of the Khans, Hrithik, Ajay or Akshay or even Saif  and chances are half your battles are over in terms of funds, audience connect or media exposure. Chuck in Katrina, Priyanka, Kareena or Deepika and the project, overnight, takes a life of its own! Which production house? Who’s directing? Who cares?! For your information, the director of Son of Sardar was Ashwini Dhar and the director of Khiladi 786, Ashish R. Mohan. For the Dhoom 3 project, the earlier helmsman Sanjay Ghadvi (now on a huge downer with two back-to-back bombs Ajab Ghazab Love and Kidnap) has given way to a Vijay Krishna Acharya, best known for a flop named Tashan.  Clearly, the powers are that have clearly seen and read the writing on the wall and run with red-hot star-charisma rather than promoting the director. When you have Ajay Devgn, Akshay Kumar and Aamir–Katrina as your headliners, does anyone give a damn about anything else? Sure there are exceptions – Karan Johar, Rajkumar Hirani, Rohit Shetty, Sajid Khan, Aditya Chopra – but (quite honestly) they too depend mostly on star power. Don’t agree? Okay, check out their strike rate with non-stars…

The one area, however, where the director as a visionary and moving force works is the crossover / small films. Anurag Kashyap, Dibakar Banerjee, Tigmanshu Dhulia, Shoojit Sarkar, Sujoy Bose, Anurag Basu, Habib Faisal and gang have proved that they are the real stars and actors are their great, gifted collaborators helping them to flesh their vision with the appropriate passion and purpose. It is amply clear from Wasseypur and Shanghai, Vicky Donor and Ishaqzaade, Sahib, Bibi… and Paan Singh Tomar; who called the shots and whose shadow coloured the narrative. Critic Rauf Ahmed wraps up this discourse offering his learned observations. “There is a huge, mistaken belief that today’s movie-going audiences, unlike early times, are smart, sharp, knowledgeable and discriminating and will dismiss any film that is not focused and does not engage their attention. While it is true that this audience base has indeed powered several unknown non-glam directors and non-starry projects to win attention, awards and modest returns, for the larger part, clearly it is star power that has rocketed the big projects up, up and up!  Undoubtedly, the director had a part to play in the success of the hits, but can you honestly think of JTHJ without SRK, Dabangg 2 without Salman, Rowdy Rathore sans Akshay, and Talaash without Aamir? And how many people know (or care to know) and remember the name of the extremely talented Reema Kagti as the person who helmed Talaash?”  So, as SRK always reminds us, directors are wonderful and actors are great… However, in India and B-town, it is the stars who dazzle!


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 3, 2013

“We seek to apply our solutions in multiple contexts & markets”

Meera Sampath, Director, Xerox Research Centre, India, asserts that Xerox would like to work on ‘locally inspired, yet globally relevant’ innovations

B&E: How important is the Xerox India Innovation Centre to the company’s emerging market strategy?
Meera Sampath (MS):
All our research centres support Xerox’s innovation needs across its different lines of businesses – be it our traditional documentation technologies-related research, which would be research related to our design and development of our devices, the works/ applications connected with that, et al as well as associated services in our existing lines of business, like management of large imaging centres, taking over and running infrastructure of large enterprises as well as SMEs and creation of customer communication material. Other lines of business that have recently been added to Xerox post the acquisition of ACS, have been innovation that supports the IT outsourcing (ITO) business and innovation in support of the BPO business. Two things were very clear from the outset when we set up the R&D centre here. The first was that the centre had to support innovation for expanding and rapidly growing Xerox’s businesses in emerging markets. The second was that given India’s unique set of skills and competencies and given Xerox’s need to expand its services over and beyond emerging markets, this research centre would endeavour to leverage the talent in India to significantly contribute to accelerating innovation in services delivery for our global customers. 

B&E: In your experience, how are needs for developed and developing markets different? 
MS: It depends on the vertical or market segment we are looking at. In terms of large enterprises, the needs and pain points may not be so significantly different as compared to developed markets. But in other segments, we may be significantly different. For instance, we are developing a smart banking solution to significantly improve costs and operational efficiencies and turnaround times for the banking industry. This leverages unique expertise in terms of the capabilities of our devices, document management or smarter document technologies and our capabilities in imaging, et al. This is a solution that we found – locally inspired but globally relevant. Interestingly, we have found takers for it in Brazil, Canada, Mexico and even US. We at our research lab consider that as the typical space we would like to play in. We develop fundamental technologies, fundamental concepts and solve research problems, which can be applied in multiple offerings, contexts and geographies.

B&E: How do you tackle the critical talent shortage issue in India?
MS:
It becomes important for us to form the right partnerships, rather than competing for talent. We work with partners to ensure that they become part of the Xerox research family and the Xerox research group without becoming ‘employees’ of Xerox. Every researcher has a mandate to not only work on internal research projects, but to also actively participate in open research projects in partnership with universities.


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

Saturday, April 27, 2013

So far, it just about fits the prescription

In the past couple of years in particular, Indian pharma companies are seeing the fruits of their labour, particularly in the US generics market. However, retaining their competitive edge may not be as simple

For Big Pharma, this is a period of unprecedented difficulty, a time to retrospect on past failures. However, Indian generic firms are bang in the middle of a potential dream run. As a recent Frost & Sullivan report points out, drugs worth around $150 billion are expected to go off patent protection globally. This naturally opens a huge window of opportunities for Indian drug manufacturers. Are they ready?

Profitability figures certainly suggest that some players are moving away from the shadow of a difficult past in the latter part of the previous decade. Sun Pharma, which has got the highest number of drugs in its ANDA (Abbreviated New Drug Application) pipeline, reported revenues of Rs.40.15 billion, a growth of 29.3% yoy. Its net profit stood at Rs.19.27 billion, growing by 39% yoy; and it gained 13 places in the Power 100 list to rank at 41. The US business of Sun Pharma alone grew by nearly 30% in the same period. Cipla’s profit rose by 16% yoy to reach Rs.11.23 billion in FY 2011-12 and it was ranked 65 in the Power 100 (a gain of 12 positions). Dr. Reddy’s Laboratories, which has just entered the BSE-30, also reported a healthy 28% rise in topline in the fiscal to reach Rs.67.39 billion. Its net profit, however, grew by just 2.1% yoy to Rs.9.12 billion, even as it gained two places to be ranked 80 in the B&E Power 100. The company was stung by the poor performance of its generic version of Zyprexa and falling margins in its core business. Contrarily, launches of generic versions of Caudet and Zyprexa have helped Lupin. It managed double digit growth in US. However, its PAT for FY 2011-12 shrank nominally and stood at Rs.8.04 billion owing to high depreciation and interest costs; taking its rank to 86 (a gain by two positions). The BSE Healthcare Index surged by around 5.6% yoy and has outperformed the Sensex by around 14 percentage points.

In 2010 and 2011, companies like Glenmark, Aurobindo and Sun Pharma were able to further consolidate their positions in the US generics market by bagging around 33% of ANDA approvals from the US Food and Drug Administration (FDA). The FDA approved a 2,244 ANDAs between 2007 and 2011, of which Indian companies grabbed final approval for 694.

Considering the intense competition from their BRICS counterparts, the figure holds high significance. During the same period, aggregate tentative approvals by FDA reached 518, out of which Indian companies secured 200 (FDA data).

Also, Indian companies are consistently growing their para IV filings and niche complex chemistry molecules. Most of these segments, especially injectables, inhalers, ophthalmic, oral contraceptives and controlled release products are set to lose patent guard beyond 2012. Moreover, being characterized by complex manufacturing techniques, entailing greater investments in R&D and manufacturing, these segments have higher entry barriers and thereby potential for higher profitability. Also, the percentage of US FDA approvals won by Indian firms has jumped from 27% to 33%. Raghavendra Saha, Senior Advisor, CII asserts, “In the past 15 years, not even a single new molecule has been found. Hence, it isn’t hard to claim that the era of blockbuster drugs has gone and the future belongs to generics.”

However, Indian companies need to manage their litigation processes well, since this led to massive cost escalations in the past, particularly with Ranbaxy Laboratories (incidentally, the Daiichi Sankyo-owned company declared a loss of Rs.30.52 billion for the nine months ending December 2011, as per its most recent report). Dr. Kamal Kumar Sharma, MD, Lupin Ltd. says, “At Lupin, we do not chase any and everything possible. We try to sort out and identify cases where we have a decent chance of winning.”


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

Saturday, April 20, 2013

Can Japan break the deflation cycle?

With deflation the major drag on growth and the biggest long-run economic threat, pressure was growing on the Bank of Japan to respond. And it did – with yet another round of quantitative easing and by announcing an inflation target of 1%. But then, are these measures enough to bring the Japanese economy back on track?

At a time when major economies across the globe are finding it hard to rein in galloping inflation, the Bank of Japan (BoJ) has stunned the world by announcing its intention to hit a newly established (for the first time ever) near-term inflation target of 1%. Economic growth, currency devaluation, or drag on productivity: what’s the motive?

The reason is simple. To break the deflation cycle and a strong yen, both of which have been choking off Japan’s economic growth over the past 15 years. In fact, the two problems are interconnected. Typically when central banks pump liquidity into markets following recessions, businesses and consumers borrow, growth picks up and eventually inflation rises. This is not the case in Japan, where deeply entrenched deflationary expectations and other factors weigh on loan demand. The combination of deflation in Japan and inflation elsewhere pushes up the purchasing power of the yen relative to other currencies. A strong yen in turn weighs on exports, the main driver of growth in the Japanese economy. And that’s exactly what is happening in the “Land of the Rising Sun”. Japan’s economy shrank for the third time (between October & December 2011) in the last four quarters. The first estimate of Japan’s fourth quarter GDP showed the economy contracted 0.6%, significantly worse than consensus forecast of a 0.3% decline. This is equivalent to a 2.3% fall in GDP on an annualised basis. Further, while Japan’s monthly trade deficit widened to ¥613 billion in January, following December’s ¥569 billion shortfall, yen sits high at ¥80.30 against the dollar.

Sadly, deflation also adds to the real burden of public debt, which is a major problem for Japan. With a public debt figure to GDP ratio hovering around the 200% mark (The Bank of International Settlement projects that even under “a best case scenario” Japan’s debt could zoom past 400% by 2040!), its situation is worse than even the most recent citadel that fell – Greece. Interestingly, all the while the country’s GDP hasn’t moved an inch. Japan’s nominal GDP is almost the same as it was about 15 years ago ($5.58 trillion today as compared to $5.24 trillion in 1995). Unbearable debt amidst close to zero growth in over 15 years puts Japan in an awkward macroeconomic situation!

Thus, to get out of this status quo Japan is once again relying on a technique called quantitative easing (QE). As opposed to flooding the money supply with newly printed currency, the BoJ has announced to pump 10 trillion yen ($130 billion) into the economy through purchases of government bonds by the end of 2012. But while the QE will lift the supply of money, policymakers face a greater challenge in trying to get households and businesses to borrow. So, will the BoJ’s latest move succeed in breaking the deflation cycle?

Previous bouts of quantitative easing and currency intervention did not have a sustained downward impact on the yen, lift inflation, or provide a meaningful boost to the real economy. Agrees Matthew Circosta, the Sydney based Economist at Moody’s Analytics as he tells B&E, “These policies have been rendered useless because of the deflation mind-set embedded in Japanese consumers and businesses.” Excluding the oil-induced inflation spike before the 2008 crisis, core inflation hasn’t reached 1% since 1997.


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

Friday, April 19, 2013

The agony & hope for India’s domestic airlines: call it ‘FDI’

B&E analyses the outcome of allowing foreign carriers to invest in India’s domestic airlines. Finally some good news, many presume. The reality is actually quite the opposite.

If North American carriers have set standards of growth over the years, so have airlines in India. Only difference is – for India’s domestic industry, growth has always come in a package of losses. And over the years, despite optimism galore, all we can discuss aloud are the canyons of losses which have been etched into their financial books. Exaggerated? Turn the clock back to 2006, when airlines around the world returned to their profit-making ways after half-a-decade-long patch of drought. Since then (leading up to FY2010), global airlines have recorded profits amounting to $18.70 billion. Of this, North American carriers contributed $5.7 billion. The Indian carriers on the other hand, have been living on a prayer. Despite a 48.83% jump in total passengers carried (in FY2010-11), a 64% increase in the number of operational airports (to 82), and a 158.13% jump in fleet size, their losses have only escalated. During a five year period, when global airlines made billions, India’s domestic carriers lost $5.43 billion.

The carnage on Indian airstrips for years now, has been visible. Woebegone tales of the big three – Air India (AI), Kingfisher (KFA) and Jet Airways (Jet) – requiring urgent cash infusion have become a daily back-fence talk in the aviation circles. [A fast fact: since FY1997-98 the big three have recorded losses and debt to the tune of $3.186 trillion – roughly three times India’s GDP in FY2010.] So have strikes by pilots and other staff, winding up of operational arms to reduce losses, and problems with ATF prices and taxes levied on it by various States. The big domestic airlines got into a mode of unceremonious self-slaughter by trying to outdo each other played against them. The stifling environment did the rest.

So what is the Ministry of Civil Aviation’s (MoCA) last resort to keep the industry afloat, especially the big three? Attract investments by foreign carriers through the FDI route – MoCA suggests the limit should be 24%, while the Department of Industrial Policy and Promotion (DIPP) recommends that it should be anywhere between 26% to 49%. A piece of smile-winning news after long. But will this prove manna to the ailing Indian carriers?

Many suggest that this move could open up the gates for dollars to flood the Indian aviation space. And if ever foreign airlines would require any convincing, it should not be more bothersome than a tiny gastric event in a marathon. Let us not get befuddled. Forecasting the outcome of allowing FDI in an airline industry that is – to say the least – battered, is no easy task. Forget India, this has been true even in a liberal, transparent environment like US. There was much hope that foreign airline participation and their involvement in the strategic decision-making process would make life easy for ailing US carriers when times got tough. It was not to be. Between 1975 and 2010, US carriers lost a total of $273 billion, and 44 filed for bankruptcy. And how many foreign carriers did we see come to the rescue? For the sake of a 25% ownership – zero!


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

Monday, April 15, 2013

What America really wants from the Middle East

US has its reasons to interfere in political and policy matters in the Middle Eastern countries. Ushering in an era of liberal democracy is not one of them.

Following the death of Libya’s Muammar el-Qaddafi, Libya’s interim government announced the “liberation” of the country. It also declared that a system based on Sharia (Islamic law) – including polygamy – would replace the secular dictatorship that Qaddafi ran for 42 years. Swapping one form of authoritarianism for another seems a cruel letdown after seven months of NATO airstrikes in the name of democracy.

In fact, the Western powers that brought about a regime change in Libya have made little effort to prevent its new rulers from establishing a theocracy. But this is the price that the West willingly pays in exchange for the privilege of choosing the new leadership. Indeed, the cloak of Islam helps to protect the credibility of leaders who might otherwise be seen as foreign puppets. For the same reason, the West has condoned the rulers of the oil sheikhdoms for their longstanding alliance with radical clerics. For example, the decadent House of Saud, backed by the United States, not only practices Wahhabi Islam – the source of modern Islamic fundamentalism – but also exports this fringe form of the faith, gradually snuffing out more liberal Islamic traditions. Yet, when the Saudi Crown Prince died recently, the US stood by silently as the ruling family appointed its most reactionary Islamist as the new heir to the throne.

So intrinsic have the Arab monarchs become to US interests that the Americans have failed to stop these cloistered royals from continuing to fund Muslim extremist groups and Madrasas in other countries. From Africa to South and Southeast Asia, Arab petrodollars have played a key role in fomenting militant Islamic fundamentalism that targets the West, Israel, and India as its enemies. The US interest in maintaining pliant regimes in oil-rich countries trumps all other considerations.

With Western support, the oil monarchies, have been able to ride out the Arab Spring, emerging virtually unscathed. For the US, the sheikhdoms that make up the Gulf Cooperation Council – Saudi Arabia, Kuwait, Bahrain, Qatar, UAE and Oman – are critical for geostrategic reasons as well. After withdrawing its forces from Iraq, US is considering using Kuwait as a new military hub to expand its military presence in the Persian Gulf region and foster a US-led “security architecture,” under which its air and naval patrols would be regionally integrated. NATO-led regime change in Libya – which holds the world’s largest reserves of the light sweet crude oil that American and European refineries prefer – was not really about ushering in an era of liberal democracy. The new Libya faces uncertain times. The only certain element is that its new rulers will remain beholden to those who helped to install them. US Senator John McCain has already announced that the new Libyan rulers are “willing to reimburse us and our allies” for the costs of effecting a regime change. America’s troubling ties with Islamist rulers and groups were cemented in the 1980s, when the Reagan administration used Islam as an ideological tool to spur armed resistance to the Soviet occupation of Afghanistan. In 1985, at a White House ceremony attended by several Afghan mujahideen – the jihadists out of which the Taliban and al-Qaeda evolved – Reagan gestured toward his guests and declared, “These gentlemen are the moral equivalent of America’s Founding Fathers.” Yet the lessons of the anti-Soviet struggle in Afghanistan have already been forgotten, including the need to focus on long-term goals rather than short-term victories. The Obama administration’s current effort to strike a Faustian bargain with the Taliban, for example, ignores America’s own experience of the consequences of following the path of expediency.
 

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

A farewell to nuclear arms – will that become a reality?

Mikhail Gorbachev, former President of USSR, writes about how we need to put aside all forms of procrastinations, and work towards a compelling plan for nuclear disarmament.

MOSCOW – Twenty-five years ago this month, I sat across from Ronald Reagan in Reykjavik, Iceland, to negotiate a deal that would have reduced, and could have ultimately eliminated by 2000, the fearsome arsenals of nuclear weapons held by the United States and the Soviet Union. For all our differences, Reagan and I shared the strong conviction that civilised countries should not make such barbaric weapons the linchpin of their security. Even though we failed to achieve our highest aspirations in Reykjavik, the summit was nonetheless, in the words of my former counterpart, “a major turning point in the quest for a safer and secure world.”

The next few years may well determine if our shared dream of ridding the world of nuclear weapons will ever be realised. Critics present nuclear disarmament as unrealistic at best, and a risky utopian dream at worst. They point to the Cold War’s “long peace” as proof that nuclear deterrence is the only means of staving-off a major war.

As someone who has commanded these weapons, I strongly disagree. Nuclear deterrence has always been a hard and brittle guarantor of peace. By easily failing to propose a compelling plan for nuclear disarmament, nations like US, Russia, and the remaining nuclear powers are promoting through inaction a future in which nuclear weapons will inevitably be used. But that catastrophe must be forestalled.

As I, along with George P. Shultz, William J. Perry, Henry A. Kissinger, Sam Nunn, and others, pointed out five years ago, nuclear deterrence becomes less reliable and more risky as the number of nuclear-armed states increases. Barring preemptive war (which has proven counter-productive) or effective sanctions (which have thus far proven insufficient), only sincere steps toward nuclear disarmament can furnish the mutual security needed to forge tough compromises on arms control and nonproliferation matters. The trust and understanding built at Reykjavik paved the way for two historic treaties. The 1987 Intermediate-Range Nuclear Forces (INF) Treaty destroyed the feared quick-strike missiles then threatening Europe’s peace. And, in 1991, the first Strategic Arms Reduction Treaty (START I) cut the bloated US and Soviet nuclear arsenals by 80% over a decade.

But prospects for progress on arms control and non-proliferation are darkening in the absence of a credible push for nuclear disarmament. I learned during those two long days in Reykjavik that disarmament talks could be as constructive as they are arduous. By linking an array of interrelated matters, Reagan and I built the trust and understanding needed to moderate a nuclear-arms race of which we had lost control.

In retrospect, the Cold War’s end heralded the coming of a messier arrangement of global power and persuasion. The nuclear powers should adhere to the requirements of the 1968 Non-Proliferation Treaty and resume “good faith” negotiations for disarmament. This would augment the diplomatic and moral capital available to diplomats as they strive to restrain nuclear proliferation in a world where more countries than ever have the wherewithal to construct a nuclear bomb.

Only a serious program of universal nuclear disarmament can provide the reassurance and the credibility needed to build a global consensus that nuclear deterrence is a dead doctrine. We can no longer afford, politically or financially, the discriminatory nature of the current system of nuclear “haves” and “have-nots.”


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

Friday, April 12, 2013

Is Corporate Culture The Ultimate Strategic Asset?

Some Companies Believe Strongly in their culture – they swear by it. And while many have brushed aside this concept of culture as just another soft factor, the truth remains – corporate culture can become the very reason why your company performs well at the stock market and why it creates bottomlines which are far superior than those of industry peers.

During the past few decades, the term “corporate culture” has become widely used in business. It is now well-recognised that corporate culture is a significant aspect of organisational health and performance [Read: Siehl, C. and Martin, J. “Organizational Culture: A Key to Financial Performance?; Kotter, J. and Heskitt, J (1992), Corporate Culture and Performance, New York, NY: The Free Press].

what is “corporate culture”?
Although there are many different definitions of the concept of “Corporate Culture,” the central notion is that culture relates to core organisational values. All organisations – regardless of size – have cultures which influence the way people behave in a variety of areas, such as treatment of customers, standards of performance, innovation, et al.

“strong” and “weak” cultures
Companies where there is a clearly-defined culture, where the company invests time in communicating and reinforcing this culture, and where all employees are behaving in ways consistent with this culture are defined as having “strong cultures.” A “strong” culture is one that people clearly understand and can articulate. A “weak” culture is one that employees have difficulty defining, understanding, or explaining. The culture may not have been defined and/or it is not being actively “managed.” As a result, employees are let to interpret the company’s values for themselves, which sometimes results in the company having not one, but many different cultures.

functional and dysfunctional cultures are assets or liabilities
Strong culture companies can be either positive (an asset) or negative (a liability). If the company’s values are constructive and support its goals, then having a strong culture is an asset. We define this as a “functional” culture. If the company’s values are negative or dysfunctional, then having a strong culture will be a liability. We define this as a “dysfunctional culture.”

impact of culture on financial performance: wal-mart vs. k-mart
Culture can impact financial performance, so that a culture can truly be an “asset” in the technical accounting sense of “things of value-owned or controlled.” To see this, compare the performance of Wal-Mart with its (at least on the surface) “identical” competitor K-Mart. There is virtually no product that Wal-Mart has that K-Mart does not have; have the same kinds of stores and they operate in similar locations. They market to the same customers and recruit from the same pool of people. Yet in spite of these similarities, one of them (Wal-Mart) has produced a vastly different financial result for investors than the other.

Examining the financial returns to investors measured in terms of stock prices, we see a very clear story of the different performance of Wal-Mart and K-Mart. For the decade of the 1990s, the stock price of K-Mart almost doubled. An original investment of $10,000 would have been worth almost $20,000 by 1999. During the same period, the stock price of Wal-Mart increased several-fold. An investor who made an original investment of $10,000 in 1990 would have seen the value of that investment increase to approximately $280,000! This is an astounding difference, especially when these companies are not like Microsoft or Amgen, where there is proprietary intellectual property. These companies (Wal-Mart and K-Mart) are selling essentially the same commodities, but with vastly different results. They are both into retail, are exposed equally to the downturn issue, and yet, both of them performed so very differently. One shone bright, the other just fizzled out.


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

Monday, April 1, 2013

“Despite a Saturated UAE Market, our Subscriber Base Grew”

With 135 million mobile subscribers, UAE’s Emirates Telecom Corp. (Etisalat), is a $9 billion-a-year topline earning name. Ahmed Bin Ali, Group Sr. VP & Global Spokesperson for Etisalat, talks to B&E’s steven philip warner, about his company’s fight in a saturated domestic market, its 4G dreams, multi-billion capex plans and why the company scrapped a $122 million plan to bid for Syria’s third mobile licence.

B&E: Emirates Telecommunications Corporation, Etisalat, currently operates in 18 countries across Asia, the Middle East and Africa. There is speculation that you are looking to expand into new geographies outside the continents you are currently operating in. Is that true?
Ahmed Bin Ali (ABA):
No. Actually, for the present, Etisalat is focussed on expanding strategically within our core markets of Asia, the Middle East and Africa. You need to understand that we are in a position where we have already developed a significant footprint and established a presence in the most active and fastest growing markets in these regions. Our operations in these regions are growing strongly, and we are quite a satisfied company with our current continents where we operate in, for now.

B&E: So you say, you sit very comfortable in terms of geographies. Since 2006, Etisalat has invested close to $5.74 billion as capex in these markets – a larger chunk of which was in overseas markets, outside the UAE. But there are some danger signs when it comes to your payoffs. As compared to the previous year, your net profit actually fell by 13.6% in FY2010. Do we take this as a sign of some uncertainty in your international investment strategy?
ABA:
In FY2010, our international operations increased their contribution to our Group’s revenues to 23% from 16% in 2009, and profits to 7% from less than 1% the year before. Given the relative young age of our operations, these are good indicators that our investment strategy is on track. Today, we continue to have a strong balance sheet and are rated amongst the most creditworthy operators in the world by global credit rating agencies. This means we even have the ability to engage in acquisitions.

B&E: In March this year, the company withdrew plans to bid for Syria’s third mobile licence. The company said that the terms of the deal did not offer sufficient value for its shareholders. Could you please elaborate?
ABA:
True. Earlier this year, Etisalat decided not to proceed and compete in the Syrian mobile bid, despite having earlier qualified to participate in the process. Etisalat conducted an extensive and careful study alongside financial advisors, legal experts and technicians and determined that the terms and conditions of the bid would not enable Etisalat to achieve its objectives regarding the technology and value we wished to bring to the market. We worked hard to develop this opportunity, but we had hoped the terms and conditions would have been more attractive.


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

Monday, March 25, 2013

Put them Down Again, Shall We?

A number of Dalit Entrepreneurs have come up in India Despite Innumerable Odds. But Shamefully, Our society is still quite Reluctant to Accept them.

“Our country has stuck to ancient norms with respect to caste. Thus, a Shudra can never be a businessman or progress more than his previous generation. All Dalit businessmen that we see now are first generation businessmen who have their own [caste related] tales of struggle,” Chandrabhan Prasad, major Dalit activist, anthropologist and social reformer mirrors the thoughts of various other social commentators, while discussing the issue with B&E. Critically speaking, the metro entrepreneur might and perhaps always would rush post haste to imagine that in India, while cast issues may be prevalent in lower and labour class communities, the same possibly would not exist in business communities.

Now, if you are ‘the’ metro entrepreneur in question, and if your definition of ‘business community’ starts from multi millionaires and quasi billionaires, you may be perfectly right – as is obvious, stinking rich entrepreneurs in India can easily request Union and Chief Ministers to bend their Shylockean backs to provide timely serpentine camaraderie. But if the term ‘business community’ is defined appropriately as any entrepreneur and innovator who provides employment to even one additional person in order to progress his business, you have the fiendish cast wolves running a riot, and almost a lynch mob if you see where to see – and the Dalit business community would surely be a great starting point.

Perhaps you’ve never heard of Devanand Londhe, the director of Payod Industries, who is a manufacturer and exporter of garments exported to Japan and Korea. Or about Rajendra Gaikwad, Director, G. T. Pest Control Pvt Ltd, who is into the business of pest control export fumigation and pre-construction anti-termites. But the stories of their achievements, their struggle with casteism issues and their humble rise to prominence are inspirations for many Dalit entrepreneurs; of course, because the protagonists are themselves Dalits. From having to face open admonition by their business peers to having even banks and other government departments reject their applications, evidently because of their background, the well documented struggles of these businessmen are a mirror to the pitiful scenario of a nation that has been unable to shed away its issues that have lasted for centuries.

J. S. Fuliya, CEO, Signet Freight Export Pvt Ltd, into the business of global logistics with an yearly turnover of Rs.30 million, quite candidly shares with B&E the casteist issues he had to face in terms of education and financial discrimination. The same goes for Sushil Kumar, manufacturer and exporter of automobile parts, sheet metal, press tools components, dies & fixtures and special purpose service tools, who has an yearly turnover of Rs.250 million. Sushil laments about the debilitating behaviour of individuals and communities en masse against businessmen with Dalit backgrounds. And encouragingly, these Dalit entrepreneurs are not running away from their identity. Instead, they’re trying to be proactive in finding social solutions to the situation.


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