Showing posts with label iipm-press. Show all posts
Showing posts with label iipm-press. Show all posts

Monday, April 01, 2013

“It’s all Good in Canada.” Really?!

During The Recent Election Campaign The Newly elected Prime Minister of Canada Stephen Harper touted Conservatives as The Best Economic Managers The Country has ever had. But can his so-called ‘Best Brigade’ Assure Canada of a growth that’s really sustainable in The Long run?

On May 30, 2011, when the 308-seat House of Commons of Canada next rises, it will be dominated by 167 Conservatives. Well, this certainly means a lot to Stephen Harper, who, despite winning two previous elections (Harper was first sworn in as Canada’s Prime Minister in 2006), has never before held a majority government. But then, does this really mean anything to the Canadian economy which, perhaps, is standing on the verge of a slowdown?

Interestingly, all this while, Harper has been repeatedly telling Canadians that the Conservatives are the “Best Economic Managers” that the country has ever had, and it’s because of them that Canada bounced back strongly from the global financial crisis. “But are they, really?” is the question that several have been asking on the streets of Ottawa & Toronto since March 25, 2011 when Canadian opposition parties had brought down Harper’s government by supporting a motion of no confidence that held Harper in contempt of Parliament for refusing to share financial details of decisions taken by him with the House.

No doubt, to some extent Harper seems right, as of the seven industrialised nations that comprise the G7, Canada clearly stands out when it comes to economic recovery from the recent recession. It not only expanded at an annual pace of 5.8%, but also recovered both the employment and real output losses that accrued over the troubled course, in just one year. But then, though Harper now has the clear mandate to deliver on his promises and the freedom to do so without much intervention from the opposition, there are many who still doubt his claims. And, there are good reasons for Canadians to be sceptical of Harper’s claims and even more reasons to be worried about what his promises (currently, the Harper administration projects a deficit of $29.5 billion for this fiscal year and a return to surpluses by 2014-2015) and policies would mean for Canada’s economic future.

After growing at a red hot annualised rate of 5.8% in Q1 2010, Canadian economic growth had come down to just 1.8% in Q3, 2010. Though the GDP growth has unexpectedly risen to 3.33% in Q4 2010, the celebration isn’t going to last long as domestic demand, which so far fuelled this growth, is all set to decrease in the near future. While a still healthy job market (employment growing at 2% y-o-y in Q1 2011) should continue to fuel domestic demand, there are several potential headwinds that need to be avoided. Further, with the benefits of the inventory swing (inventory rebuilding had accounted for over 33% of GDP growth in 2009) behind and the boost from government stimulus (over $60 billion in 2009 and 2010) fading, how is that Harper’s so called “Best Economic Managers” going to sustain Canada’s economic boom in the long run? In fact, they have yet to explain how they will find $1.6 billion in cuts already booked in the 2011 budget.


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

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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 IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.


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Friday, February 01, 2013

Turn a short-term problem into a long-term issue

Cutting marketing investments can often turn a short-term problem into a long-term issue

Use a “sniper” approach to cost cutting. Once companies understand exactly how the recession is affecting their core customers, they are in the position to identify with precision the kinds of marketing investment that generate value and should be protected, and those that may be dispensed with. Indiscriminate cuts across the board can destroy value in the long term and should be avoided. To understand what marketing activities may be scaled down and which ones should be strengthened, it may be necessary to focus on the two or three things that truly matter to customers (for instance product features, service, availability, price, et al).

Promotion and low pricing strategies should be employed wisely. Sales promotions and price cuts can be useful in a downturn to stimulate demand. However, they should be used only if they are consistent with the positioning of the brand. Short-terms sales volume and revenue should be balanced wisely against long-term brand strength. In the end, the best strategy for a strong brand might be to continue to reinforce the attributes that make it appealing and unique in the eyes of the consumers. A strong emotional bond between the customer and the brand, for example, can still provide the most effective defence from market forces.

Deal with the short-term challenges, but also manage for the long term. Reducing marketing spending aggressively, or ignoring the role of marketing in building long-term shareholder value is clearly not the way forward. Unfortunately, cutting marketing investments indiscriminately can often turn what may be a short-term problem into a long-term issue. Advertising for brand-building, for example, can take a long time to bear any fruit. The immediate benefits of a cut in marketing spend may hide the more insidious long-term effects if support is withdrawn from the brand. In the end, evidence suggests that the strongest brands are those that receive sustained support over time, even in times of crisis.


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)
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Thursday, December 06, 2012

B. K. MODI: SATYAM BID

Satyam is an attractive buy, but Modi has to be careful about how he values his latest acquisition target

Spice Corp. is not the only one in the fray. Given the low valuations for Satyam, there have been many suitors. The most aggressive has been Larsen & Toubro (L&T), which has already increased its stake in the company to 12% from 4%. However, an analyst on conditions on anonymity cautions, “The cost of acquiring and restructuring Satyam in this time of liquidity crunch would be more than the worth of the business.” Ditto for other suitors like Tech Mahindra, iGate and Hinduja group. Not for Modi, who proudly proclaims, “We have some Rs.20 billion in the bank!” So Satyam needs Spice but is the reverse also true? Definitely, even a much subdued Satyam would be worth much, considering current valuations (a person investing Rs.100 in the company 1 year ago would see his investment drop in value to Rs.12.45 on February 3, 2009!).

However, Spice Innovations would have a lot of work to do. The latest controversy has already cost Satyam four major clients – Citigroup, Merrill Lynch, Novartis and GlaxoSmithKline, a loss of some $200 million in topline. Fortunately, there are a few like GE still in Satyam’s kitty. Another obstacle would be that there is no top rung of management in the organisation at the moment and employees are facing a crisis of confidence. Modi counters, “We have a good leadership team and are confident that we would be able to steer the new company in the right direction.” Well, considering how his previous big ticket venture Spice Communications went into losses, one wonders if Modi’s cadres can really manage to rescue Satyam from crisis to conquest. Moreover, this is an acquisition where a critical element – that of brand goodwill – is virtually non-existent! Although Modi has the cash, he needs to be careful with regard to how he (over)values Satyam


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

For More IIPM Info, Visit below mentioned IIPM articles.


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Wednesday, November 21, 2012

Sky above them!

And that’s the only roof they know...

‘India is shining’ is the advertisement punch-line used by the erstwhile NDA government showcasing India’s potential to the world. Around 70% of our population live in rural India [which are not growing as fast as our glittery urban lands are] and a major portion of rural population live in mud houses, which under the government’s own admission is an unsatisfactory way to live.

The government has a wonderful scheme called ‘Indira Awas Yojana’, where credit is given to the SC, ST, free-bonded labourers and non-SCs/non-STs who are under poverty line (BPL), to build houses on the land they own. There lies the cruel paradox that more than 13 million families do not own any agricultural land! And to make matters worse, eight million do not even own a plot. To neutralise this disparity, the Union Government has extended a helping hand of Rs.1 billion to state governments so that they can buy lands to be distributed to the landless. This is the first such step in many years from the Union Government, which can benefit 100,000-200,000 rural families straight away. Considered that this is a real noble gesture from the Union Government, ensuring proper utilisation of funds will pose a challenge.


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.
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Monday, November 19, 2012

INDIA'S BIGGEST LOSS MAKERS

The biggest five loss making companies of India
But the reasons are not far to find. A company like Moser Baer is facing huge pricing pressures in the global optical media market; and is also being hit by a Philips licensing issue (with suits being filed by Moser Baer previously against Philips being a bone of contention too). Add to this the fact that the sales volumes of Moser Baer have been more or less flat (Gross revenues for FY08 were Rs.19,654 million, compared to Rs.20,746 million last year). And to search for Deccan’s cup of woes, one just needs to see aviation fuel prices, which have risen over 30% in FY08, enough to kill any aviation company [India’s airline industry in total will see more than Rs.4,000 crores losses]. Critically, due to an attempt to get more revenue out of per seat, Deccan Aviation saw its flight occupancy dip disastrously from 87% to 72% by the end of FY08.

For Tata Teleservices (Mah) Ltd. the issue is direcly related to capital acquisition costs not paying over time. Critically, while Bharti has 62 million subscribers, Reliance is reaching 50 million, Vodafone itself is at 45 million, Tata Teleservices is still way back at 24 million, despite having been in the country for such a long time. It’s quite clear that if there’s such a close run relatively amongst the top three telecom providers, there’s a clearly strategically faulty marketing orientation that has resulted in Tata Teleservices’ subscriber base not coming up. The malaise has been hounding Tata Teleservices (Mah) for the past too many years (we went back only till 2002, and the company has suffered losses since then, year after year). And the biggest factor in cost has been cost of sales rather than depreciation. With an accumulated loss base of Rs.2,544.58 crores, Tata Teleservices (Mah) requires attention, and too fast from the Tata group. And while Wire and Wireless – a Zee group cable television company – filled up its black hole by lending money (almost Rs.63 crores) to partner distribution companies whose net worth stood eroded by the end of the year, Strides Acrolab, a Bangalore–based generic pharmaceuticals company, accounted its losses to huge setbacks in US operations and of course, a surging rupee!

Clearly, unless these companies question their strategic intent, processes and structures extremely critically, it’s simply not possible to come out of a rut in a quarter, a year, or even in a decade. Finally, it’s a matter of business; finally, it’s a matter of shareholders’ money; finally, it’s a matter of whether you reach for that Alprax or not; finally, it’s a matter of never saying die.......till you’re dead!


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.
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Thursday, November 15, 2012

MAYBANK: BII ACQUISITION

23% premium sounds logical for BII

Some analysts, too, saw the deal as being over-valued, especially considering that BII performed under-par for the past 2 years, with profits falling by a whopping 36% during 2007, and another 13% during 2006 as Julian Chua, Analyst, Citigroup voices, “The price tag on BII is 50% higher than initially assumed for mediocre franchise...” However, Citigroup & FitchRatings are of an opinion that in the long-term, Indonesia has good prospects & Maybank has taken the right cue. As a matter of fact, Maybank says that it is targetting an increase in the loans of BII by over 20% in 2008.

Chris Oh, Analyst, JP Morgan Chase also supports this move as he divulges, “The BII was a ‘must-have’ strategic acquisition for Maybank. BII is projected to have minimum sustainable return of at least 20% beyond FY 2010 (sans factoring-in synergies).” Adding all this to Malaysia’s growing trade-ties with ASEAN trading partners, $2.7 billion suddenly appears ‘loose change’!


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.
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Tuesday, November 06, 2012

Renewed rhetoric

ANIL PANDE says that the Madhya Pradesh CM is trying to win on the development plank. But his critics say that the strategy, if not inclusive, can prove to be worthless

Last year, in October, when corporate honchos were inking deals at the Indore Global Investors Summit, a substantial number of activists were protesting near the bust of Mahatma Gandhi at Regal Crossing, not far away from the investment summit. Among others, they were joined by activists from Narmada Bachao Andolan, and displaced farmers and tribals, who lost their land due to development projects in Neemach and Riwa districts. Needless to say, their feeble voices had no takers. The voices of the investors were amplified by the promised investments of Rs.120,000 crore.

The reason: in the last couple of years, development and good governance have emerged as vocal election planks. The days of ‘social engineering’ and ‘booth management’ have passed. Now, even people voting along caste lines expect a certain level of governance from their elected representatives. And, for a change, “governance” is determined on the basis of overall development. Poll pundits predict that as more youth participate in the electoral process, the development plank will continue to take a frontal position. At present, more than half of India’s population is constituted by people under-25 years.

In fact, development was one of the reasons why the BJP returned to power in Madhya Pradesh. Poor infrastructure did Digvijay Singh-led Congress government in. But now, the tables have turned. The BJP has completed four years in power. What’s more, development will once again be the frontal rhetoric in the forthcoming polls. Naturally, the BJP is worried. It wants to present a good report card to the voters. It wants development and the only way it can be done, says the BJP, is by inviting foreign capital.

That is why CM Shivraj Singh Chauhan is busy with his single agenda program. He has been successful in signing MoUs for projects worth more than Rs.225,000 crore in 2007 alone. Noted economist Alok Puranik finds foreign capital as the only way to initiate developmental projects in the state. Nevertheless, he wants the development to be inclusive. He predicts: “State governments focusing on investments in agriculture and manufacturing sectors have strong chances of returning back to power.”


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
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Monday, November 05, 2012

Uranium is next yellow fuel

The most sought after investment after oil

The escalating population and the rising energy demand is forcing the global leaders to look out for more alternative sources of energy. With oil becoming unaffordable and increasing stress on environment-friendly fuels, the only alternative left out seems to be nuclear energy. But then this yellow fuel is not enough to fulfill all energy needs, thus disturbing dreams of energy investors. The uranium market is not only affected by the standard forces of supply and demand but also to whims of geo-politics. There are 440 reactors operating worldwide and 69 reactors under construction. Nations like France, Germany, Netherlands, the UK, USA and Russia form the core of the uranium market and influence all global buyers.

The worldwide demand already exceeds the supply by 139% and the prices have risen by almost 500% in last five years. With China building more nuclear reactors, it will be consuming 11% of the world’s nuclear energy capacity alone. Moreover, China is negotiating with Australian foreign ministry, to purchase 44 million pounds of uranium every year. As per the International Nuclear Inc., the stock of ready-to-use uranium is at an all-time low, and the commercial reserves fell by more than 50%. Global electricity use is projected to increase by 66% i.e. 22 trillion kilowatt-hours by 2020. With current supply at about 135 million pounds per year and mines of Australia & Canada contributing only 79.2 million pounds per year, there seem to be a ‘gold rush’ to purchase this yellow fuel in the near future. To meet increasing energy demand, there is no question that uranium will become a key to global affairs.


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
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Saturday, October 20, 2012

The World as hostage

The rise of OPEC has been an abiding curse for the world

One abiding fantasy in the Arab world since 1948 has been the destruction of the state of Israel, many legitimately angry at the treatment meted out to Palestinians and some nursing deep religious and ehtnic hatreds. In 1973, an America supported Israel fought yet another war with neighbouring Arab countries and won a convincing victory. After the 1967 disaster, this repeat pulverised the Arab world and even the autocratic rulers of these oil rich kingdoms and sheikhdoms realised that their thrones were in danger if something was not done to mollify the Arab street. One direct result was the Organisation of Oil and Pteroluem Exporting Countries (OPEC) imposing an embargo on shipments of crude as well as refined oil.

The next step was a multi hundred percent hike in the price of oil. The global economy was literally shaken to its very foundations as a result and complacent American consumers realised that they had to wait for hours to get their cars refilled with ‘gas.’ But the global economy did adjust to higher oil prices while all -almost all-oil exporting countries have started failing as modern functional societies as a result of massive dollar revenues coming from oil exports. Iran, Saudi Arabia, Russia, Iraq, Sudan and Nigeria are just some examples of what happens to societies when easy dollars are used by autocratic regimes to buy peace and promote fundamentalism of one kind or other. Can you imagine a born rich Mohhamed Atta of Saudi Arabia flying aircraft onto the World Trade centre without oil money lurking in the background?


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.
 
IIPM : The B-School with a Human Face
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Friday, October 19, 2012

Yahoo! to Boohoo!

Yahoo! had a chance to grow & survive. It ‘had’!

So what’s the biggest mistake that Yahoo! ever made? Well, allow us to rephrase that... what are the biggest mistakes made by Terry Semel and his successor Jerry Yang? Allow us to reflect back on what happened in 2001. That year, Yahoo’s chief, Terry Semel met the co-founders & co-Presidents of Google – Larry Page and Sergey Brin – to discuss the acquisition of Google. Semel offered them much lower than the $5 billion, that the co-founders asked for. As a justification, Semel stated that “no one could truly value Google,” and that there was “no way he would shell out such a hefty amount” for the search-engine start-up. Eight years later, Google commands a market value of $121.1 billion, while Yahoo!, a lamentable $19 billion! Then there was Semel’s successor, Jerry Yang, who in 2007 brushed aside Microsoft’s bid for Yahoo! for a mind-blowing $46 billion.


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.
 
IIPM : The B-School with a Human Face
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Wednesday, October 17, 2012

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)?


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.
 
IIPM : The B-School with a Human Face
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Saturday, October 13, 2012

NORTH KOREA: NEGOTIATIONS

N. Korea's rhetoric is a plea for a better deal, US needn't take it seriously

North Korea agreed in principle to end its nuclear weapons programme on September 15, 2005 and rejoin the international non-proliferation treaty in return for energy, economic aid and a US promise not to attack. But US went against its promises and N. Korea retaliated by conducting nuclear tests next year.

Recently, Pyongyang stepped up verbal attacks, saying that it's scrapping all military and political agreements with Seoul and considers itself on the brink of war with the South. “N. Korea makes such rhetoric whenever it perceives threat from the US or S. Korea or its domestic conditions become worse, particularly the economy. North hopes that it might get a better deal...,” says R. Subramaniyan, a doctoral fellow at the Academy of Korean Studies. The US needs to actually call their bluff, rather than paying heed. Even N. Korea knows that one misstep can lead to catastrophe in its own land.


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.
 
IIPM : The B-School with a Human Face


 
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Friday, July 27, 2012

Towards a More Global Vision

The Car Maker has now set its Sights on Global Markets for its Nano and Luxury Brands.

The last fiscal was particularly memorable for Tata Motors, which crossed another milestone by clocking sales of one million units globally. After CEO Carl Peter Forster took over in April last year, Tata Group’s automotive business has been going from strength to strength. Profits surged by over 196.3% and PAT climbed to Rs.104.37 billion. Sales of Tata Motors small car Nano climbed to 6,515 units for May 2011 as compared to 3,550 units for May 2010. While domestic sales remain buoyant, Tata Motors has been looking beyond Indian shores to sell its wares and is actively seeking to expand its global footprint. The company’s small car Nano is already being exported to neighbouring countries like Sri Lanka and Nepal. Plans are also afoot to tap the South American, African and South East Asian markets very soon. In Europe, the Indica Vista has already been introduced in Poland and Italy, and it is now being planned for launch in Spain. At the Geneva Motor Show this year, Tata Motors unveiled the all new Tata Pixel, a car which it would design and develop to cater exclusively for the European markets. While sales of its other models may have flagged in the past three months owing to a spike in the fuel price and car loan rates, but the company remains bullish about its future sales figure. To offset the impact of rising inputs and commodity costs on the competitive pricing of its cars, Tata Motors is focusing on paring down costs. “We are focusing on cost efficiency inside the company to neutralise the impact of the increasing raw material cost to the maximum extent possible.” says Debasis Ray, Head- Communications, Tata Motors.

India’s largest automobile company is also the owner of global marquee car brands like Jaguar and Land Rover, which it has now launched in India as well. The first showroom of the iconic British luxury brand Jaguar LandRover was recently inaugurated by Ratan Tata in Mumbai. True to their pedigree, both Jaguar and Land Rover have become coruscating jewels in Tata Motors’ crowning achievements. For the record, JLR posted 481.9% growth in profits for the year FY11.

To keep its portfolio refreshed, the company has been launching new models and more desirable variants at regular intervals. Its recent launches include the new Tata Manza sedan, a newer model of its legendary Tata 407 Pick-up, the Tata Super ACE and its new truck Tata Prima. “I think they have taken all the right steps to become a global OEM. The short term challenges always remain but in long term they will to succeed,” says Abdul Majeed, Leader, Automotive Practice, PwC India. So far, Tata Motors has played its cards well, both in the domestic market and in scanning the overseas horizons.


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Thursday, June 09, 2011

Morgan Stanley cuts FY'12 India growth to 7.7 per cent

The next three to six months may not be very good for the Indian equities market, but it makes a very good investment proposition with a 12-18 months view, and India would continue to be on a high-growth path posting 7.7 per cent in 2011-12, said Morgan Stanley analysts. "There is a 19 per cent upside for the BSE Sensex considering our target of 22,100 points. And the market provides a great environment for the stock pickers, as the macro influence on stock prices has already peaked," said Ridham Desai, MD and head of Indian equity research team of Morgan Stanley.

"Valuations are looking attractive, especially on an absolute basis, and for the broader market, the market is pricing in slower near-term growth," he added. Morgan Stanley has shifted its focus from global commodities to domestic consumer-driven sectors. "We remain overweight on industrials and are cognizant of the downside to capital expansion," Desai added. Industrials include engineering, capital goods and infrastructure sectors.

Other favourites include energy, telecom and utilities, while sectors that are underweight are consumer staples, healthcare, financials and materials (commodities). Technology is in the neutral. "Risk-return analysis is in favour of small- and mid-cap stocks, compared to frontline stocks," Desai said. Global risks apart, the market performance would depend on the policy initiatives of the government in the coming quarters. Desai listed expected policy decisions as fuel price hikes, fertiliser prices, FDI in retail and coal mining policy.
"Higher interest rates are likely to put pressure on corporate profitability, but are unlikely to affect them much," said Desai, reasoning that the current debt levels of Indian companies was much lower compared to its own past. On the global front, the impact of withdrawal of quantitative easing (QE-II) in the US on commodity prices was identified as a major surprise in store. Consequent to the US launching the QE-II in September 2010, commodity prices shot up as the US dollar slid.

Responding to a query on the attractiveness of the Indian market for foreign institutional investors (FIIs), Desai said, "Foreign investors are cautious at present and are waiting to invest. But typically foreign inflows follow performance and not the other way round."

Chetan Ahya, MD and Asia Pacific economist at Morgan Stanley, said the government spending will nosedive this fiscal to seven to eight per cent of GDP from 18-19 per cent of CAGR (compounded annual growth rate) in the last five years.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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Friday, July 02, 2010

Game for more

TSI Five-O: Adventurous summer fun, Disney style

In the Disney tradition of turning theme rides and fairy tales into full blown movie franchises, “Prince of Persia” also turns out to be pretty enjoyable fun fare. Of course, it is modelled on the highly successful eponymous video game and the elements of adventure that made the game such a favourite come alive on the screen too. Mike Newell, the director, deserves some credit for that and having handled adventure in “Harry Potter and the Goblet of Fire”, he is no stranger to the genre. The script is not as sliver thin as you might guess with a video game (the original game itself had a great backstory) and the casting also helps with Jake Gyllenhaal, Gemma Arterton and Ben Kingsley lending solidity to the performances and the action sequences ringing in the excitement.

The plot borrows from the game – the prince has to stop the evil ruler from getting his hands on the sands of time which will unleash an apocalyptic storm that will turn back time – but there are some refreshing twists along the way. Young Dastan (Jake Gyllenhaal) is an accomplished warrior who is adopted by the King of Persia. But, he suddenly finds himself in the middle of a conspiracy when the king passes away under mysterious circumstances. Dastan is accused of murder and is on the run with princess Tamina (Gemma Arterton), who he encountered at a battle in the holy city of Alamut. While he tries to clear his name with help from the princess, he realises the real conspiracy runs deeper as the evil Nizam (Ben Kingsley) is trying to gain control of the sands of time – a mystical weapon capable of changing the fabric of time. The chase against time offers enough opportunities for showcasing the parkour style fight sequences that players of the video game will recall. First time viewers will love the energy and the excitement as well.

The real stars of the movie are director Mike Newell and the producer with the magic touch, Jerry Bruckheimer. The foundation is well set for the sequels to be rolled out, and the Pirates franchise is any indication, I would say – bring it on! You’ll enjoy the experience whether you were a fan of the game or not but don’t go looking for intellectual stimulation and have fun watching the lovely landscapes and breathtaking action. More importantly, don’t dismiss it as a poor movie cousin of the video game (remember Max Payne and Lara Croft?) either.

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Source : IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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