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.

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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.

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)

GENERAL MOTOR CO.: FAILURE

...and the shareholders get their pants walloped!

Swing & Miss #3: GM’s premature focus on hybrids cost the company too much. Despite being in the news for over 15 years now, hybrids only contribute to about 2.15% of all vehicle sales! Then there are reports which prove how by 2020, oil production will cross a smashing 1,600 million barrels annually – 6667% more than what was produced in 2003! In other words, hybrids are not required in the near future year, but Wagoner still believes it, for he has to swing!

Swing & Miss #4: Wagoner’s confused branding strategies have ensured that high-end sports cars (like the Corvette Z01) & small cars (like the Spark) are sold under the same tag, Chevrolet? Apparently, he skipped branding management lectures too! Swing & Miss #5: During his tenure, this “easy-going” CEO destroyed a blood-freezing 98% of GM’s Mcap, shaving-off of a clean $90 billion of shareholder wealth. And just before he was booted-out by the Obama administration last month, he had the most wonderful gift for all at GM – a record $52.8 billion in losses for FY2008!

Well, today, Wagoner’s out, but GM has to live on. But will it? “A lot of things depend on the survival plan that GM will present but filing for bankruptcy makes sense as of now,” claims Christian Breitsprecher, Industry expert, Sal Oppenheim. Well, June 1 is not far away. Fingers crossed...

Read more.....

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.

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)

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.

Read more.....

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.

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)

RICK WAGONER: EXIT

32 long years did this Harvard MBA take to understand GM; one fine day it took the US Senate to fire him! No more gambles, Rick...

Oh yes, read your bio too – was interesting! Born: February 9, 1953, in Delaware, to George Sr. & Martha. Post-MBA, you chose GM over other lucrative jobs. Commendable! Your big break came in 1992, when the-then CEO Smith appointed you as the CFO. Your low-key lifestyle and the fact that you command a high popularity quotient amongst your employees, makes you most respected as a friend; but as a leader, there are complaints that you lacked that “ruthless streak needed to make the tough decisions required to bring GM back from the brink of bankruptcy.”

But Rick, we still stand by your ox-like faith in hybrids; an engine type which despite having existed commercially for 15 long years, accounts for a pathetic 2.15% of world automotive sales! Now 2.15% does not define majority, does it? But it’s ok Rick; poor mathematics is not a turn-off for us. But it sure did get your pants on fire, and we couldn''t do anything about it. [Sorry about that; for oil supply may be increasing, but water is really scarce in our parts of the world.]

Next, come to geography. Rick seriously, what were your grades in school? CEOs of manufacturing entities realised years back that shifting operations to emerging economies can help cut costs tremendously. You did too, but like the kid who skips homework, you jumped out of the window of sanity, and trashed your vision into the nearest garbage tank… and enjoyed playing football on American grounds. Oh yes, GM is an American legacy brand; how can GM cars be produced in emerging third-world, Hydrogen sulphide emitting lands? Well, thanks to your ‘Be American, buy American’ ideology, every GM vehicle produced in the past two years has cost GM $4,500 in just welfare cost. Rick, you rock! Your drained out industrial relation skills & super-confused branding philosophy have also put GM in a fix. Today, the cost of pension & healthcare per GM man-hour is a high $24 – a blood-freezing 100% more than at Toyota, Honda & Nissan! Now beat that!

Though the Obama administration finds you abortive, we still stand by you; for you taught us the harm that ‘addiction to legacy’ can do, and how to walk away with $26 billion of exit benefits after blowing your company to smithereens! But Rick, before we leave, here''s an information that you could use to justify the ''cold turkey'' stance that Democrats used to oust you – as per Federal records, GM contributed $1.7 million to the Republican pocket since you took over as CEO – 108.6% higher than what it gave the Democrats. Some revenge there, eh Rick? You are a veteran at GM – 32 long years and today, you''re married to Kathy & have three sons – Matthew, Scott & George. God bless you, Rick, for standing by your first wife & employer to this day. They never understood your sacrifices, did they (the US Senate, we mean)?

Read more.....

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.
 

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

Vivek Paul is actually being considered for the role

It would not be surprising if Vivek Paul is actually being considered for the role, but his experience may not fit the bill. Right Mr. Tata?

He has been credited for Wipro’s growth from $150 million (when he joined in 1999) to a $1.4 billion company with 50,000 employees in 2005. A month after resigning, he become a partner at Texas Pacific Group (TPG) capital and put in his papers in December, 2008.

It is in the news that he will replace Ramadorai. In fact, his name was also being taken for the post of Satyam CEO before it went to A. S. Murthy. Compared to Ramadorai and Chandrasekharan, “Paul is more competent, but less likely to take the job actually,” avers Rob Enderle, Principal Analyst, Enderle Group. But perhaps the Tatas may go for a strong and experienced veteran who has been into the same business for a long time. That one clause may go against Paul.

Read more.....

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.
 

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

Better with us than on the fence

India has to learn to exploit its relations with UK in a better way

Recently, on July 28, 2010, British PM David Cameron met Karnataka Governor HR Bhardwaj to sign an MoU, which will allow the British business process outsourcing (BPO) firm Xchanging Plc to set up a 2,000-seat processing centre at Shimoga SEZ. He also visited Infosys and HAL.

The Indian PM organised a joint conference with the British PM emphasising joint initiatives in some key areas including a promise of a joint CEO summit and a further boost in defence trade and foreign investment. But the manner in which David Cameron’s entire visit passed us by, it just seemed like a visit of another infamous head of an averagely influential nation. Congress Chairperson Sonia Gandhi’s cancellation of her meeting due to her mother’s health further dampened the visit’s prospects. It must be realised that Britain has much more promise than can be envisioned. UK is one of India’s largest trading partners with a bilateral trade worth £11.5 billion in 2009. India seeks to increase it to £24 billion in next five years. India’s exports to UK touched £6.8 bn in 2009 while imports were £4.7 bn, a clear surplus advantage. David Cameron is more promising and positive about India than Obama. Cameron’s approach towards Pakistan takes no prisoners and cuts no cake cherries. His statement on Pakistan, after the WikiLeaks incident (“We cannot tolerate in any sense the idea that this country [Pakistan] is allowed to look both ways and is able, in any way, to promote the export of terror, whether to India or to Afghanistan or anywhere else in the world”) is the best evidence that UK would stand as honest friends for much longer than the infidel master US.

Read more......

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.

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