Showing posts with label IIPM Think Tank. Show all posts
Showing posts with label IIPM Think Tank. Show all posts

Tuesday, June 04, 2013

The Enduring Shame of Khaki

Why Indian cops are the most brutal and brutalised lot in this so called feudal democracy.

Most of us have our favourite cop stories, ranging from the gruesome to the bizarre. Here goes my favourite cop story: back in the 1990s, my parents were staying in a town in one of the BIMARU states. They went back home after a few weeks of holidaying in Delhi and found the house ransacked by thieves. Virtually everything that could be carted away was taken, including the LPG cylinder and the stove. They went hesitantly to the local police station where the cop in charge was actually very polite with them but made it clear that my parents should forget about the whole thing. Typical of many Indians, they decided to fall back upon `connections'. They called up one of my cousin uncles who is a very senior cop. In less than 24 hours, the station house officer (SHO) paid a visit to our house and promised action in double quick time. He also sheepishly suggested that if my parents had disclosed their ‘connections’, he would have been spared a dressing down from his boss. In another 12 hours, the thieves were arrested and virtually all stolen items, including cassette tapes, recovered. My parents were astonished at the speed and efficiency with which the cops acted.

That tale just about sums up the state of Indian police and the nature of cops in this country. In many ways, they are a perverted version of Dr Jekyll and Mr Hyde. Which face you get to see depends on ‘who’ you are. If you are an unknown girl in Punjab who goes to the cops to complains about harassment and lewd remarks, and if you don't ‘know’ anyone, chances are that the cops will beat you up instead of taking action against offenders. If you are the poor mother of a six -year-old girl in Aligarh who has been raped and killed, you will be thrashed brutally and in full public view if you have the effrontery of demanding justice. If your five-year-old daughter in a poor locality of Delhi goes missing, the cops will refuse to register an FIR despite the new anti rape law. Worse, after the girl has been discovered raped and brutalized, the cops will offer you Rs 2,000 to keep your mouth shut. And of course, if you are a member of the ruling class, you don't even have to pay a visit to the police station. The cops will come to you and pull out all stops and use the entire might of the state machinery to help you. No amount of breast beating and debating the desperate need for police reforms (see related story) will hide this ugly reality of Indian cops. Kiran Bedi can go on and on in television studios about the need to sensitize the men in uniform. And yet, an ACP rank officer of Delhi Police named Ahlawat nonchalantly slaps a 17 -year-old girl activist in full glare of TV cameras as if he is cuddling her.

What are the adjectives that instantly come to mind when you think about Indian cops? Overbearing, brutal, callous, insensitive, rude, corrupt and inhuman are just some of the more common adjectives that spring to mind when we think of cops. Sociologists and  pop psychologists will have us believe that the Indian cops come from within the society and that their often bestial behaviour reflects poorly on our society and the values that we project as a whole. The logic is: what can you expect from a cop who has been brought up as a child believing that Muslims are terrorists? Similarly, if caste discrimination is deep rooted and widespread across all sections of society, how can you expect a cop to treat a poor Dalit in a more humane manner? As sociology and psychology goes, that is all very fine. But justifying the absolutely rotten behaviour of the cops by blaming social ills will spell the death knell of Indian democracy. No nation can survive without the rule of law. And it may sound pedagogical and trite, but if those given the responsibility to uphold and protect the role of law brazenly flout it, we will breed anarchy at all levels. And it is systems and institutions that make the crucial difference. There are many friends from villages (see related story) who grow up and move along different career paths. One joins the army while the other, from an identical social and economic background becomes a cop. Just see the difference in the behaviour and nature of the two and just see how society treats the two in completely different ways. The army guy gets our respect while his friend the cop commands fear and contempt.

The tragedy is: there are thousands of cops who are brave and honest and who do a superb job of policing. Just look at the police constable Omble who sacrificed his life so that Ajbal Kasab could be caught alive during 26/11. There are numerous such unsung heroes and heroines in Indian police who perform their duties to the best of their abilities. But so rotten is the system that the media and the society gets a dozen examples of inhuman police behaviour for every one example of exemplary devotion to duty.

Once again: it may sound trite. But the only solution to this is accountability and absence of political interference. If Dr Manmohan Singh is indeed serious about the whole issue, the least he can do is intimate steps that will result in the summary sacking of ACP Ahlawat and the arrest of policemen who first refused to file an FIR and then tried to bribe the family members of the 5-year-old rape victim.


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

Monday, June 03, 2013

Brave New World

The Bombay of the early 1990s opened a world hitherto unseen and the doors of perception had truly been opened, remembers Sutanu Guru

My first encounter with Maharashtra was pristine, ivory tower, innocent and almost like a first love. A small town hick from one of the BIMARU states, I was dreaming of pursuing a Masters in Economics from the hallowed JNU after my graduation. But there was a strike in 1983 in JNU and we were not sure if they will admit students from BIMARU states (Yeah, I know there was no Internet in those days). I was advised to try my hand at Gokhale Institute of Politics and Economics which was highly regarded. After some sniggers and snide suggestions about my pronunciation and conversation skills, I was given a place. Boy, how it opened a whole new world for me. And how.

The batch had just 32 students and the hostel where we stayed had just 32 single rooms. There was Fergusson College next door and a small hilltop called a "tekdi" right above the campus. And of course, Deccan Gymkhana, the area where it was located, was full of retired  Maharashtrians who loved taking long early morning walks. Greenery was a given. And the Film Institute was just about 2 kilometers away. Apart from falling in love with a classmate who taught me Marathi, I fell in love with the Servants of India Society library that reminded me of Thomas Hardy and The Bleak House. I also developed a lustful attraction towards one of our young teachers whose name I forget and began to admire a young professor called Bibek Debroy because he used to allow us to smoke in classroom (of course, he was a brilliant teacher too!). Half the batch was from outside Maharashtra and there were the usual vibes about being a local or not. And yet, all differences vanished when we debated the relevance of Baba Amte, the great anti-leprosy fighter and a man that Anna Hazare can never be. All differences vanished when we heard of V. M. Dandekar, the man who sort of started the poverty ratio debate in India. That short man with a white beard and sort of timid jumping steps was someone we held in awe. As we did Bhimsen Joshi who captivated us hicks all night with his magical voice in concerts. You may not believe it, but some of us actually read Marx and Keynes and animated debates over them through the night; sometimes helped by grass, Led Zep and Doors. Without realizing, I had realized I had started conversing in Marathi. But there was a darker side. Once, when me and my Konkan Marathi lady friend and some other friends were buying cigarettes, I was abused in Marathi by some young guys because I made a joke about Marathi. I wanted to respond in anger, but was dragged away by the friends saying it is not worth fighting with goons of some outfit if I recall was called Patitapavan Sena. My Marathi friends were deeply embarrassed because they knew I understood the abuses flung by those goons at me. We forgot all that soon when we started debating the ultimate what if about what would have been the fate of modern India had Baji Rao Peshwa had not been killed in the Third Battle of Panipat. Some of my Marathi friends were Brahmins, and some were from what we now should call the upwardly mobile castes. I used to sense a kind of anger amongst the later whenever there was any praise of Dada Kondke, Maharshi Karve, Bal Gangadhar Tilak or Gopal Krishna Gokhale. To tell you frankly, I was innocent but not a fool. And in 1983, I sensed that some intellectual morons like us were discussing Marx versus Keynes when Maharashtra actually was being ruled by what my then Marxist friends used to call Kulaks (Sharad Pawar might be a good example today). A small town hick like me who wanted to transcend all this could not fathom how educated guys discussing Marx suddenly became subtle caste foes. And then one day I think I lost my lady friend. When she questioned my status as a Brahmin and asserted how Konkan Brahmins were the purest of them, I could not help pointing out why so many Konkani Marathi ladies had blue eyes. And I laughed. And lost.

I visited Pune again in 2007 and in 2011. Before my 2007 trip in a taxi from Bombay (oh, Mumbai), I had nursed dreams of that old world sleepy charm of the city, despite media torts to the contrary. My colleague Devdas introduced me to some activists on the outskirts of Pune. This was the time when anti-North Indian agitations had already gathered momentum. One of the activists was very happy that a senior journalist from Delhi could speak even broken Marathi. He just opened up and said how the locals were being driven to poverty by this new culture of globalization. I was zapped. Later, I attended a prayer cum motivation session of a group that was responsible for destroying the library of the famous Bhandarkar Institute (close to the Gokhale campus). There, I heard so much vitriol against outsiders and so much hatred against Dada Kondke that I realized I am now in a new Maharashtra. I didn't even go to Gokhale. In 2011, one of my relatives who is studying in Pune, it remains a hot education destination, told me that their lives are made miserable by Marathi goons.

That got me thinking about my other major encounter with Maharashtra. I joined The Economic Times as a young hick in 1986 and actually struggled to find a roof. Thanks to a journalist in Maharashtra Times, the local language newspaper, I found shelter and eventually a paying guest accommodation that had six guys, 20 mice and about a 100 cockroaches in Maximum City. I survived. I loved Bombay of that time because it was so open and meritocratic, if you were willing to work hard. Bombay was exhilarating. I mean, I actually could go to the Taj and to attend a Press Conference and drink so called scotch and have chicken tikka. And then then there were those junkets where a bunch of journalists like me (wow I belonged) were flown to places in Indian Airlines flights to peddle a new public issue which is now called an IPO. But most importantly, Bombay of those times was dreams. I still remember my stint in Business World where Dilip Thakore was the editor. I wrote a story on garment exports and he seemed happy with it. I actually got to meet either Ajay or Dilip Piaramal with Dilip in the hallowed corridors of Bombay Gymkhana. I was so excited after that meeting that me and my friends went on a binge that ended in a place called Gokul in Colaba and then lots of food in what is now called Bhendi Bazaar. You know, the waiters who served us food were Muslims, as were the owners of those joints. They looked at you with a snigger. But they didn't give a damn about the nationality, caste, religion or gender of the person who paid the bill. It is not as if we hugged each other. The realization of "difference" was there even then. But it used to be a kind of live and let live. The live and let live dictum was visible even in that famous Anil Ambani-Tina Munim marriage where a huge media contingent from Delhi was invited. By then, I had shifted to Delhi and was part of that contingent. Even back then, in 1991, the fault lines were clearly visible. The Shiv Sena was no longer just a Bombay- centric party whose cadres used vocal and muscle power to do what they wanted to do. It had emerged as a strong political challenge to the Congress.


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 curious case of Vijender Singh

India's boxing poster boy, in trouble over drug connections, is no stranger to controversy. Aditya Raj Kaul investigates
Olympic bronze medalist winning boxer Vijender Singh is not just another sportsperson. Since 2008 when he did the country proud at Beijing, life has been in the constant fast lane. Despite a bad outing at the London Olympics in 2012, he has been in the news; issuing positive statements here, inaugurating a shop there, a top draw at modeling events in the company of actresses, and generally, the man about town.

Vijendra's success at the highest level in international sport has invited comparisons with Sylvester Stallone, not just for the dashing looks but also the Sly's hook and uppercut. The 27-year-old Jat strongman from little known Sirsa in Haryana had well and truly arrived.

But this arrivers' genial facade was shorn to bits this week he was questioned by the Punjab Police in Chandigarh for links with a drug peddler following a major haul in Zirakpur, close to Chandigarh. The story was sensational: the police first swooped on Anoop Singh Kahlon, an NRI businessman, an alleged international drug peddler, and recovered from him 26 kgs of heroin estimated at Rs 130 crores. An SUV registered in the name of Archana Singh, Vijender’s wife, was found outside Kahlon’s residence. The NRI told the police that Vijendra and his sparring partner Ram Singh were his `clients.'

Vijendra has denied any connection to Kahlon but has also refused so far, to share a sample of his blood and hair for forensic examination.

Insiders say Vijendra is no stranger to controversy and had raised eyebrows in 2006 when his best friend and boxer Sonu Chahal died under mysterious circumstances. The 20-year-old was found hanging to a ceiling fan at the Sports Authority of India (SAI) hostel in Bhiwani on March 12, 2006, a place where he also trained. Barely hours before, Sonu had been happily grooving to Hindi songs at a friend's wedding. A potential winner had been nipped in the bud.

While the police had registered a case of suicide, the forensic report claimed “foul play”. The report, a copy of which is available with TSI, clearly states that “based on the type of knots around the fan and the neck and the position of the body, foul play cannot be ruled out.”

Four years later in 2010, the Punjab and Haryana High Court took cognizance of the fact that there was more to Sonu’s death than an open and shut case of suicide. Under pressure from Sonu's family over charges of botched investigations, the case was transferred to the CBI.

Sonu's family had barely started to heave a sigh of relief when the CBI closed investigations in the case calling it a suicide. Said the closure report of the CBI filed in August 2011,“The investigation has disclosed that Sonu Chahal was in love with Seema, also a boxer, and wanted to marry her. But his parents were not in favour of their marriage as they belonged to different castes. Moreover, when Seema developed an intimacy with another youth, Sonu went into depression and committed suicide out of frustration”.

The CBI report cleared the four main accused as well. ``During the course of investigations, it was found that the four accused Narender Sangwan, Pawan Rathi (both boxers), coach Jagdish Singh and Balwan Singh, watchman of the Sports Authority of India (SAI) hostel, named in the FIR were found innocent”.

When asked, Vijendra Singh told this magazine, “Sonu was my best friend for almost seven years. I was emotionally disturbed when I heard the news. If I was in Bhiwani, this death would not have happened.” He, however, refused to speculate whether it could have been murder. ``The police would have a better picture on this,'' he replied.

In 2010, the victim's father Charan Singh Chahal had told TSI that Sonu was murdered. ``I knew from day one that he was murdered. The injury marks on his necks cannot be of someone who commits suicide.” The father is convinced to this day that the coach was behind the killing.

“Sonu became aware of a fake certificate racket being run by certain higher ups and was therefore silenced. I have appealed to the CBI to take over the case as it concerns the death of someone who played for the country both at the national and international level”, said the distraught father, who is sadly and unsurprisingly, left fending for himself.

Sources in the Haryana police, on conditions of anonymity, say that the influential background of those in question have compelled the police to go against the forensic findings that hint at “foul play”.

Charan Singh Chahal says that while the police report did not detect any marks of internal injury, the postmortem report said there were “horizontal marks on his neck, which clearly refers to murder”. He says he has ample proof and will continue his quest for justice, despite the fact that he has only got assurances but very little else.


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 04, 2013

An Alzheimer's cure?

Millions of dollars are being poured into fighting Alzheimer's, but the cure could be a step nearer

Alzheimer’s Disease (AD) is fast emerging as one of the most menacing threats to the human race in the coming years.

By 2050, people of 60 years or more will account for around 22% of the world’s population. As per Alzheimer’s Disease International (ADI), an international association to fight AD, around 35.6 million people are affected by the disease. Furthermore, some 7.7 million cases are added each year. At the current pace, the number will double every 20 years. Around 58% of AD patients are in the developing countries, and the ratio is expected to reach 71% by 2050. AD is the sixth leading cause of death in the US today and around 5.4 million Americans have AD. The total cost to fight AD in America is $200 billion to date, and the total cost to the world is $604 billion. The US FDA has approved six drugs to cure AD. But surprisingly, a drug called LMTX, by a Singapore based biotech firm, could be the best bet. The claim by the firm is that the drug can even reverse the effects of AD – by attacking tau and amyloid deposits, two proteins that cause brain plaques.

But all these medicines may well be reducing the smoke than putting out the fire. Professor Ruth Itzhaki from the University of Manchester in an exemplary medical research proved that the Herpes Simplex Virus – which causes normal skin rash in almost 90% of the population – was found located right within the protein plaques of 90% of AD patients.


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 20, 2013

Can Zinger become the Big Mac in India?

Shrugging off its early failure, KFC from the stable of Yum! Brands is now eyeing to replicate its Chinese success story and trump McDonald’s in the Indian market. But the question remains – can it beat McDonald’s first mover advantage in this market, and of course its robust supply chain?

It’s 9 o’clock on a wintry sunday morning and despite the chill and a holiday, quite a few young couples could be seen taking a relaxed breakfast at a KFC outlet in New Delhi’s Connaught Place. Whether they are pressed for time or it’s their love for KFC morning offerings, is not known. But certainly the ubiquitous Louisville, Kentucky-based chicken specialty restaurant from the Yum! Brands stable, has caught the fancy of urban youth. So much so that the well-entrenched McDonald’s known for its family and kids TG, has aggressively revamped its offering to orient itself to the young adults.

Starting in 1996, after a slow and circumspect start, today KFC is Yum! Brands’ best performing subsidiary in India, well ahead of Pizza Hut – once the flagship for the US-parent company in India. But what’s worth noting is that with KFC Yum! Brands is hoping to create a China like success story in India. Today KFC is 80% of the Yum! Brands’ over 4,200 outlets in China – a market which contributes 33% of its global revenue. But then that’s not without a solid reason. While India being a chicken loving country, the chances of KFC’s continuing success becomes stronger, more so as offerings like Zinger Burger, and the trademark KFC hot and crispy chicken offerings, are gobbled by urban India. Officially the QSR chain is growing at a blistering 70%. And the company has already started eyeing for bigger targets. When asked about the company’s target to hit Rs.10 billion turnover in India, Dhruv Kaul, Marketing Director, KFC India says, “With the kind of growth and expansion we are having, that looks a very humble figure, we are aiming much higher in the coming years.”

However, to achieve these bigger targets, KFC has to take the game away from McDonald’s, which already has a very strong presence across the country. Certainly, the QSR that believes in finger licking taste has outlined few key growth areas to take the matter forward. While keeping its great taste USP alive by further expanding and localising its menu is its primary strategy, increasing its footprints to roughly 50 cities, increasing the serving hours and thus drawing a broader customer base – especially among the Indian youth – are the key focus areas for the company now. Working on the lines, the company recently introduced Streetwise range starting at Rs.25 to cater to the college going youths, and lure the mass that have been loving McDonald’s happy price menu (starts at Rs.20) so far. Moreover, KFC now aims to expand to 100 items serving all kind of customer needs from health to indulgence.

McDonald’s on its part too knows that KFC is the one to watch out for. As such the Big Mac maker is on a good move growing at 35% over a revenue base that’s much bigger than KFC in India, and doubling its revenue every 3-years. But then the fact that the past couple of years have seen KFC’s aggression bringing it good dividends is something hard for McDonald’s to ignore. No doubt, a serious competition is already in place. The flow at which both players have started offering new products, right from burger specialty to their respective beverages, to hit the other’s menu clearly explains how spicy the chicken and the burgers have become in both the board rooms.


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

For More IIPM Info, Visit below mentioned IIPM articles
 

Tuesday, March 12, 2013

B&E’S POWER TALK SERIES

Head – Marketing, Dhanlaxmi Bank in Conversation With B&E’s Mona Mehta

B&E: How critical is marketing for the regional private banks? How is Dhanlaxmi Bank dealing with it?
SM:
For a bank, which is a new entrant it is imperative that the consumers know about the bank and what it has to offer. In a cluttered and non-differentiated market capturing a share of mind is difficult. And it is even more challenging to build an imagery of a modern and a contemporary bank (where people had a perception that it is a co-operative bank). Every initiative has been a combat to the perception that the market had about the bank. The colour (purple) that the brand sports, differentiates itself from the blue and red colour palette in the market place. Meanwhile, Dhanlaxmi Bank has recently launched its signature branch at Prabhadevi in Mumbai. The branch has a new bright contemporary design. The customer journey in the branch gives an experience of openness to the consumers. Every message in the branch talk to the consumer, listen to their story and give them a solution. In fact, now we have decided to use the same design, look and feel in all the new branches that will be added to the existing network.

B&E: Over the past year or so the bank has become really aggressive in increasing its customer base. What are your plans to support the cause?
SM:
In the past 18 months the effort has been to build the brand imagery. Various on-ground initiatives have been taken for the same. To take the bank from one region, where it is a household name to the other parts of the country, where it is almost unknown – the challenges are multiple and varied. On one hand the task is to re-assure the customers that while the brand has changed, the core remains unchanged; on the other hand the objective is to create awareness about the brand and get consumers to the bank. So, various micro-marketing initiatives have been rolled out for the 275 branches across 16 states. Every branch has been given a calendar of events to be implemented. The effort is to link the marketing initiative to generate leads and get a better return on every rupee spent. In its 83-year history, the bank has started implementing marketing initiatives only during the past 18 months. The marketing strategy for every region varies as per the business objective. On a larger scale there will be a national advertising campaign.

B&E: You are currently expanding in a jiffy. How are you ensuring your brand visibility in those parts of the country where the bank has just arrived?
SM:
We are investing aggressively for the on-ground activation programs in catchment area of our 275 branches and educate consumers on the new brand, products and services that the bank has to offer. The 100 plus new branches that we will launch in the next financial year will be as per the new look and feel. All the branches that we re-furbish will also be as per the new branch design.


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 04, 2013

HP’s perspective on the quarterly numbers

Sunil Dutt VP, HP India PSG reveals HP’s perspective on the quarterly numbers to virat bahri of B&E

B&E: How are your initiatives towards SEC B & C faring?
SD:
Changes in ownership patterns, increase in customer requirements and a need for a level playing field are the factors driving IT demand in the SMB space. The break-up of the market indicates that the top 4 metros still account for a majority of PC consumption, but smaller towns are registering higher growth in demand for PCs and this is expected to continue over the next year as well.

B&E: How does HP plan to leverage its channel relationships as the market grows at a rapid pace?
SD:
HP has the largest channel partner network across the country. It is HP’s endeavor to constantly evolve and improve its processes for its esteemed business partner community and relevant channel associations. We have also integrated feedback from them to enhance service processes to ensure real measurable impact. This year, our channel strategy has evolved where profitability took center stage and the new distribution model has been devised to ensure that everyone in the channel makes assured front-end margins. With the new structure and systems in place, no longer shall the market operating prices depend on the volume of business a partner does. It allows partners to focus on creating a strong value proposition for customers rather than spending time negotiating prices and discounts with suppliers. With assured margins, the T1 and T2 partners will be encouraged in deploying more resources on channel engagement and market expansion of their HP business. Hence our goal is to ensure that our partners are satisfied and we continue doing business in a profitable and cordial manner. 


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

For More IIPM Info, Visit below mentioned IIPM articles.


Friday, February 08, 2013

UK, Germany lost due to auctions! And India?

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

The Indian 3G spectrum auction has finally ended after 34 days, 183 rounds and prices close to US$15 billion. The resulting US$ / MHz / Pop (the standard benchmark) for Mumbai, for example, makes the prices paid in the UK and German 3G auctions look relatively good value. If the prices were adjusted for relative differences in GDP per capita, Indian prices would be off the scale. The prices paid in Germany and the UK in the dying days of the dotcom boom are often said to reflect the “irrational exuberance” of the time but has that same exuberance driven prices in India to irrational levels?

Vodafone in the UK, for example, had been enjoying returns on capital employed (ROCE) of 27% (before tax) in the year preceding the auction. However, after bidding close to GB£6 million for its 3G spectrum the company’s capital employed had to grow from GB£2.7 billion to GB£9.6, an increase of 255% to finance the investment. The result was an overnight fall in the ROCE from an impressive value creating 27% to a below the cost of capital 8%. O2, Orange and T-Mobile all experienced a similar fate with the returns for O2 and Orange falling from 6% to 3% and 19% to 13% respectively. After many false dawns only now, 10 years on, are non-SMS data revenues beginning to have a material impact on the top line but for many operators the contribution is still below 10% of total sales. UK and Germany were clearly cases of irrational exuberance but what about India?


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

For More IIPM Info, Visit below mentioned IIPM articles.

Friday, February 01, 2013

How the western recession is the real beginning of great news for India!

Arindam chaudhuri, editor-in-chief, Business & economy

Yes! Indeed the western recession is really the beginning of good news for India! But to understand that, I’ve to take you away from the topic of western recession for a while... to the Japanese recession! For years, I’ve admired the Japanese style of management as a management teacher and given its examples in scores of my workshops. However, over the last one decade or so, I’ve been continuously facing one key question from my workshop participants – mostly CEOs from top corporations of India Incorporated. Their question to me invariably has been, ‘If the Japanese management style is as wonderful as described, then why has Japan been in a recession for the last decade and more?’ This question is what I guess one needs to understand first, if one has to really understand the beauty of the current western recession. My answer to this question has always been very simple. I believe culture plays a very important part in shaping up economies. What succeeds in one culture fails somewhere else. Kenichi Ohmae, a famous strategy guru, wrote in his bestseller, The Mind Of The Strategist, that if you want to sell a new kitchen appliance to a Japanese housewife, you have to first enter a Japanese small-sized kitchen. And then, from the stacked kitchen appliances on the kitchen shelves, you have to tell her which one of them is to be thrown away to make way for the new appliance. Well, they are all excellent in quality. Long lasting. And tough to throw! And that’s why the Japanese economy has been in a recession for a decade now.

Because culturally, these Buddha lovers are basically non-materialistic. And however much rich they become, unlike Americans, they cannot just keep throwing and buying endlessly. And once they have almost everything they need, there is a saturation point. After this point, there are primarily three kinds of demand. Replacement demand, new product demand and FMCG demand. And that can’t keep giving an economy a double digit growth rate! Add to that Japan’s rapidly aging population and negative population growth rate (the Japanese Ministry of Health forecasts that even till 2050, they won’t have a positive population growth rate). That’s exactly what happened with Japan.


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

For More IIPM Info, Visit below mentioned IIPM articles.

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail

IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)

Tuesday, January 22, 2013

Skeletons in every cupboard

Rather than blaming auditors, the entire regulatory system must be cleaned from top to bottom

Is regulation in India working? It’s a lot like asking whether the democracy is working in Pakistan! A lot has been said and written on the Satyam fiasco and from investors to independent directors to auditors, everybody seems to have got their share of the blame. But this is not for the first time that such a thing has happened in India. However, Raju’s misdemeanours have taken this ruckus to a new league and garnered the attention of the corporate world. We have been through this episode with Sterlite, which was alleged to have adopted fraudulent practices to bag a tender floated by GAIL last year. Then we have the case of Global Trust Bank, where the auditors were again PricewaterhouseCoopers and so on... In fact, Naresh Gupta, MD, Adobe India, in an conversation with B&E, doesn’t deny the possibility that many more Indian companies have bloated books (mostly in the real estate & infrastructure sectors) because of their proximity with politicians and bureaucrats. “So it’s better if we clean up the system now than to feel sorry later,” he adds.

But then isn’t it the auditor’s responsibility to be the whistle-blower to the company’s wrongdoings? However, some say that book of accounts is the primary responsibility of the management and auditors merely audit the documents provided to them by the management and give their opinion based on accounts. If so, then why on earth does someone need an independent, external auditor?


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

For More IIPM Info, Visit below mentioned IIPM articles.

Friday, January 18, 2013

Is Suzlon going to make it through?

Debts, forced recalls and Tanti’s inorganic dreams. Is Suzlon going to make it through? Asks Ratan Lal Bhagat

“Suzlon had a disastrous second quarter in the current fiscal, with a loss of Rs.3.4 billion in comparison to a profit of Rs. 2.6 billion during the same period last year. This was led by uneconomical operations resulting from dwindling backlogs, a 61% y-o-y fall in wind turbine generator sales volume and a rise in interest cost,” states Bharat Parekh, Research Analyst, DSP Merrill Lynch (India), highlighting the depleting financial condition and the reasons behind fall of the wind turbine giant.

Of course, the company has drawn various debt-clearing blueprints like the $400 million fund raising plan through the issuance of either ADRs or GDRs, but there is time before optimism flows into the alternative energy field considering that the world is still waking up to the slowdown phenomenon. On the face of it, the lack of availability of project financing has made living difficult for Suzlon, as Parekh agreeingly states, “With no recovery in sight, Suzlon is trying to fix its debt repayment obligation by refinancing $2.4 billion (68%) of its debt with a two-year moratorium.”

The investors on the other hand are bearing the brunt of the moment, with share price of Suzlon having dropped by 45% in just the past five months, to touch Rs.67.70 as on November 11, 2009. According to market experts, Suzlon’s stock has lost most of its long-term investors who sold-off their stock holdings months back. Worse, it is also losing the trust of its short-term investors. It is but natural that an investor will play the waiting game for evidence of a solid before he/she decides to invest in the stock again. But going by how events are unfolding, its financials are not likely to improve any time soon, and therefore, the demand for the stocks will remain slim, which therefore means no revival for the stock prices soon! Tribulations for Suzlon don’t end here. The player has been forced to recall 1,251 blades which belonged to its ‘top-of-the-line’ product category, after 179 of them developed cracks (about 6 meters from the root of the blade).


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

For More IIPM Info, Visit below mentioned IIPM articles.

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail

IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)

Wednesday, January 16, 2013

The silk route still remains jagged

India’s Foreign Trade Policy (FTP) 2009-14 is a half step undone by more omissions than commissions, say anchal gupta and niharika patra, who argue all is not lost...

The term was originally coined by the German geographer Ferdinand Von Richthofen in 1877. It has been considered as the first ever link between the east and the west in recorded history. Its role in being one of the pillars on which the great ancient civilizations of India, China, Greece and Egypt stood is undisputed. It was the panacea to large trading communities who survived because of it. Unfortunately, the silk routes that can lead India back to brighter shores are still blocked. With demand for India’s exports still remaining low than its 2007-08 levels in the biggest markets of US and Europe, the dark skies for India’s trade might take some more time to clear up. However, with certain developments sending a whiff of fresh air in the suffocated dungeons that is India’s exports, the picture gets complicated.

There is no denying the fact that India’s over dependence on USA and the EU for its cheap and labour intensive exports (same is true for services also) has hurt India in the short term as there have been huge job losses in some of the biggest export sectors. According to latest figures released by the Labour Bureau, the job losses amounted to 1.72 lakhs in the April – June quarter mainly in the textiles and gems and jewellery sector with export oriented units accounting for 1.67 lakhs of the same. It must be remembered that the government itself declared that the total job losses amounted to 5 lakh in the October to December quarter last year owing to the meltdown. With varied statistics putting the job losses at different levels, the in total job losses owing to depression can be put in the range of 1-1.2 million including indirect losses.

However, with the first signs of recovery beginning to pour in the last 2 months, it is widely hoped that the trade train of India can be back at full throttle soon. But, the trade picture can be more complicated than Einstein’s field equations at times. With the drop in demand in biggest economies like USA, Japan, EU and slowing down of China, the oil prices went down to nearly US $40 a barrel from its peak of $145 in the middle of 2008.


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

For More IIPM Info, Visit below mentioned IIPM articles.

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail

IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)

Monday, December 10, 2012

Putting stray dogs to sleep

Is putting stray dogs to sleep the solution to the menace?

Also, some months back, a five-year-old boy was attacked and killed by a pack of stray dogs in Meerut when he walked into an area which had carcasses of dead animals and a huge dump of garbage.

Some might debate that it is inhuman to kill animals, but in situations like these, when animals start posing a threat to man, isn’t man left with just one solution? “Not at all!” said Jaya. “It is a failure on the part of the municipalities which haven’t been able to take care of the stray dogs. For about 40-50 years, stray dogs were being killed in Bangalore. Has that reduced the number of such dogs there? Sadly, no.” Giving solutions to tackle such problems, Jaya suggested, “One has to eliminate the root cause of the problem. Firstly, garbage should be managed and all illegal meat shops, etc., should be removed. Secondly, stray dogs must be sterilised. Dogs, especially during the mating season, become aggressive. Sterilisation makes them docile. It is the best scientific way to control their population and avoid community disturbance.”

The problem of these roving creatures is doing nothing but creating hatred between man and man’s best friend, leading to inhuman solutions instead of propagating a peaceful co-existence. The only solution to problems is putting the solution into action. Let us hope that Mammens call for brutal slaughter of dogs leads people to call for implementing the real solutions to the problem. 


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

For More IIPM Info, Visit below mentioned IIPM articles.



Saturday, December 08, 2012

Lonely Knight

Dasgupta’s successor will not find the going very easy

Aleader can be as great as can be, but he cannot ever be larger than his team. That’s exactly where Multi Screen Media’s (MSM) now ex-CEO Kunal Dasgupta faltered. Undoubtedly, Sony grew leaps and bounds in India under his stewardship. But unfortunately, insecurity and the fear of being overshadowed by new blood gripped him so badly that his prime focus shifted (from ensuring the channel’s success) towards chucking out his possible successors.

Dasgupta joined Sony as CFO in 1995 and was promoted as CEO in just three years (in 1998). Over his 14-year-long stint, he build the Sony network from one entertainment channel to a bouquet of six channels. With his visionary leadership, he has not only led Sony but the entire genre. He brought the concept of cricket as entertainment by telecasting it on SETMAX. He started telecasting new movie flicks to get glued eyeballs on weekends. He also managed to displace Zee TV from its number one position in 1999. This time, his weapon was horror show ‘Aahat’. Andy Kaplan, President – International Networks, SPTI acknowledges Kunal’s contribution, “Kunal has played an instrumental role in growing our channels business... His experience and leadership will be greatly missed.”

Maybe. But ten years later, Kunal hasn’t exactly been the image of visionary leadership that he was when he started off. For he is the man who has also led Sony on the downtrodden path to a poor number four in the GEC category in the latter half of 2008. So where did this media maverick go wrong? “I think Kaun Banega Crorepati (KBC) should have never ever happened… because I had a chance to buy it but I felt a quiz format will not be that appealing to the audience. I refused it...”, is what Dasgupta himself admitted earlier to B&E. And that exactly was the turning point. In July 2000, KBC was launched on Star Plus along with K-packed soaps. Within months Star Plus became number one in the GEC category. Since then, Dasgupta has been on an erring spree and Sony kept falling on expectations. And as he started faltering, his fears of being replaced became stronger, with alarming consequences.


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

For More IIPM Info, Visit below mentioned IIPM articles.