IIPM FACULTY

Saturday, April 27, 2013

Cicero's Challenge 2012: The nation’s grandest inter-school event

It was a fest to remember. On the sprawling lawns of The Indian Institute of Planning and Management (IIPM)’s international campus in New Delhi, on May 3, 2012, over 6,000 school children congregated to create what has become one of the biggest and most eagerly awaited events for the national student community. Cicero’s Challenge 2012, IIPM’s annual inter-school festival – which has the debate competition as the signature event and many other thrilling competitions – witnessed a display of excitement, energy and vigour that’s hard to put down in words.

The theme for the 2012 edition of the festival was ‘Get Real’. The two-day competition kicked off with its signature debate event, which saw students debating on the topic ‘Technology’ in the preliminary round, which was followed by the finals on the second day. The 27 finalists debated on the topic ‘The virtual world is where I can really be me’. Saksham Agarwal of Amity International School, Gurgaon bagged the first prize in the debate competition, which included a cash prize of Rs 1,00,000, a certificate and a trophy. Prof. Rajita Chaudhuri, Dean, Centre for Enterprise Management, IIPM and Prof. Arindam Chaudhuri, Honorary Director of IIPM Think Tank, were the judges for the debate finals. Prof. Arindam Chaudhuri said, “Every time I judge an event at Cicero’s, I discover new, budding schools that haven’t been heard of before; Montfort School, for instance.” In all, the event went beyond expectations to live up to its image of being the nation’s greatest inter-school event.

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Source : IIPM Editorial, 2013.
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

Wednesday, April 24, 2013

Barack Obama’s Kony capitalism

Ugandan Joseph Kony’s past is reason enough to target him as a crime perpetrator; but the grand involvement of United States in such a myopic issue clearly seems to be only with an objective to capture oil resources in the Ugandan region than for any other altruistic reasons

Joseph Kony. By some accounts, he’s a raving lunatic. By other accounts, he’s purely a cult religious fanatic. By almost all independent and reliable accounts, the man is a cut-down-to-size erstwhile extremist on the run who might previously have had fair resources under his command, engineering random killings, ethnic cleansing and abductions not only in Uganda – his former homebase from where he used to lead the Lord’s Resistance Army (LRA) – but also in South Sudan, Congo and Central African Republic. But by no sane account is the man currently worth the title of a global terrorist.

Of course, two decades ago, Kony was a different man, with a larger-than-life persona, commandeering armed men under the LRA umbrella ostensibly fighting for “freedom”. But over the years, the LRA – which sources claim had above of 100,000 fighters during the 1990s, including a significant number of children – has been decimated quite impressively by Ugandan forces. As of date, some estimates mention that the LRA – if it at all exists anymore as an entity – couldn’t have more than a hundred so-called fighters, and those too operating discretely without any central command. And the reason for that is that Kony’s been on the run for quite a long time; and his motley LRA crew – which Uganda strongly claims is being ‘supported’ by Sudan – wouldn’t even have been known in countries outside Africa had the US not decided to get in their spin doctors into the act and brand Mr. Kony as the new Osama bin Laden.

In other words, Kony – who is often now referred to even as a plain vagabond criminal – is not worth betting your grandmother’s Edward shilling on. Far lesser is he worth creating a Lord’s Resistance Army Disarmament and Northern Uganda Recovery Act (which Mr. Obama created in May 2010) or demanding more funding from Congress primarily to target Kony and his coterie (which the US President again did in November 2010) or sending “combat-equipped” US defence forces into Uganda with a prime objective to remove Kony and destroy LRA (which Mr. Obama again managed in October 2011). And to top it all, the spin doctors even released a Youtube video called Kony 2012 in March 2012 (it’s been viewed more than 100 million times on Youtube and Vimeo as this magazine goes to print). The video documents Kony and LRA’s various ‘atrocities’ and demands action.

The gaumless ridiculousness of Mr. Obama’s so-called altruistic moves got highlighted to worse levels when on March 21, 2012, the US Senate passed a resolution against “the ruthless guerrilla group” and backed efforts to target Kony and LRA. Seriously, is all of this for a man who has, as per the US government’s own admission (Donald Yamamoto from the US State Department revealed the figures), just 150 fighters left? Kony had been operating for decades and the US did nothing. Then why now, when Kony is already almost extinct?

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

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

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.

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

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

Tuesday, April 16, 2013

In need of a bailout

With several power utilities running up prohibitive losses and power tariffs remaining static for years on end, the much touted growth story for the power sector looks like tripping up.

The red flags are up for the power sector, which was once considered to be the next ‘big thing’ in India’s growth and investment story. But in the face of mounting losses by already debt-ridden state electricity distribution companies, existing and future loans to the power sector have become a cause of deep concern for banks and state lenders such as REC, PFC and others. Lenders such as Power Finance Corp (PFC), Rural Electrification Corp (REC) and several banks have together lent about Rs.4.8 trillion to the sector by March 2011 and total advances are expected to grow 23% over the next two years. Moreover, around Rs.560 billion of these lenders’ exposure is potentially at risk if there is no meaningful progress on power reforms in the next 18 months. And going by the way the power distribution sector is racking up losses, funding for the sector looks headed for real trouble.

Losses for state electricity distributors, which depend on state support and borrowings from financial institutions to meet revenue shortfalls, doubled in the two years since April 2008 to $12.9 billion, according to a Power Finance Corp report. The net losses of the power distribution firms, which have been widening over the past five years, was pegged at about Rs.400 billion in FY11. As a result, many distribution firms are financing the gap in their revenues and costs by debt funding. Nine states including Rajasthan, Bihar and Haryana account for 80% of the outstanding debt (see chart). But mounting losses at state electricity boards (SEBs) and delays in the execution of new power plants are making servicing of loans and interest payment difficult. SEBs are on a brink of bankruptcy as they are saddled with losses running into millions of rupees on account of power theft during transmission and distribution, billing inefficiencies, and, more importantly, because they have to buy expensive power to tide over short-term deficits. To add to the woes of distribution companies, power subsidy requirement by distribution utilities has increased both in absolute and percentage terms over the last few years, which means that the ratio of average revenue realisation (ARR) to average cost of supply (ACS) and the gap between ARR and ACS has deteriorated. From a credit perspective, timely disbursement of subsidy to distribution companies remains a critical factor, given that any significant delay in subsidy payments by the State governments can impact the cash flows of the state-owned power utilities.

Under the circumstances, it’s no surprise that some of the state electricity boards are already asking for loan restructuring by extending the repayment period. Loan advances to power sector constitute nearly 7.3% of total outstanding credit for banks. Of this, nearly 30-40% is accounted for by state electricity boards (SEBs) and face a much greater likelihood of being restructured if things get any worse. According to brokerage firm Macquarie, up to 40% of advances to the power sector could be restructured. Canara Bank has the highest exposure to power, with 13.3% of its assets exposed to the sector, while Kotak Mahindra Bank is the least troubled with almost negligible exposure to power. India’s top two lenders, State Bank of India and ICICI Bank, are among those having high exposure to the power sector, with more than 300 billion rupees of loans each. According to Chairman and Managing Director of Punjab National Bank K.R. Kamath, “Wherever we had issues on state electricity board short-term loans we have restructured and converted them into long-term loans repayable over a period of time.” In fact, PNB has restructured loans worth Rs 1.7 billion given to Tamil Nadu state electricity board in the second quarter. A similar predicament is being faced by Indian Overseas Bank, which has lent more than 91 billion rupees ($1.8 billion) to the power sector. “Some of the state electricity boards are asking for loan restructuring. We’re seeing how that can be worked out,” says Chairman and Managing Director M. Narendra. According to the Reserve Bank of India, bank loans outstanding to the power sector as on September 2011 was Rs 3,007 billion. Banks exposure to power sector at the end of August 2011 accounted for 7.9% of total bank credit. The maximum limit is 8.3%, which leaves almost no room for further funding.

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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

Monday, April 15, 2013

RTI needs more teeth

B&E: The PM, along with some of his colleagues, has been critical of some of the provisions of the RTI. What do you read from the PM’s remarks?

ND: The impact of RTI has begun to show now. I think the RTI, not as a law, but as a system, gives it strength. The government has also been in trouble on many occasions due to RTI and their anger is unfortunate. This is one legislation that has been passed by this very government. What the PM has said is unfortunate. I would be happy if he had talked about strengthening its implementation instead of attempting to dilute it.

B&E: The PM’s call for a critical look into the RTI Act has emboldened voices seeking dilutions to RTI. Do you see it as a threat to RTI?

ND: The threat from the political class to RTI has existed since the Act came into being. Barely six months into the formulation of the Act and the government was already on its toes to clip its wings. I remember we had a hard time keeping the RTI in its current form. However, with the kind of community support that the RTI has garnered in these 6 years, it will not be easy for any government to amend it.

B&E: What is your reaction to remarks that the RTI has inbuilt weaknesses?

ND: I feel that there are weaknesses in the Act, but in the sense that it doesn’t have sufficient teeth. There is no provision for fixing responsibilities & imposing penalties.

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