Showing posts with label IIPM Best B School. Show all posts
Showing posts with label IIPM Best B School. Show all posts

Tuesday, June 4, 2013

Book Review: Che in Paona Bazaar

Thriving against odds

The North-East India has never been part of the mainstream narrative or development discourse in India. Ridden with armed conflicts over the years it has been treated like an imaginary flotsam. But senior journalist Kishlay Bhattacharjee tries to break this mindset through his new book. He asserts that North-East India is not an imagined community separated from the policies that govern the rest of the country. Che in Paona Bazaar: Tales of Exile and Belonging from India’s North East explores the landscape of distant corners of the region and dwells upon the life of ordinary men and women to capture their experiences. In his 17 years as a TV journalist, Bhattacharjee first gave voice to their stories. Now he has done this with words over 241 pages.

Why did he write this book? Bhattacharjee understands how media struggles to tell their stories. Bhattacharjee admits that he too struggled to represent the voice of the people there because it would be one story in weeks and he felt it was inadequate. So he decided the book has to be in the voices of those people and the author alone. “In my long years of interaction with the people of North East, I’ve felt  they could neither speak the truth of their experience nor even make it hear through the mainstream Indian media. This is an attempt to make readers interact with the real people and not imagined communities.”

However, the book is limited to certain areas in the region - Manipur, Guwahati and Shillong. But it is Manipur’s music, dance, food and the stories of its people that dominate the book.

Employing a fragmented narrative structure, Bhattacharjee chooses to tell the story through a young female protagonist, Eshei-part real and part fictional character. According to the author, she embodies the experiences of growing up, navigating through youth, love and loss amid conflict but is also faced with the universal trials of everyday reality.

Realising that conflicts make for interesting stories, Bhattacharjee weaves the story of Eshei growing up in an almost dysfunctional society and how she comes to terms with the baggage of violence and sessionism.

Employing the power of the interview to reveal, Bhattacharjee succeeds in tapping a cross-section of people and in each of them found “a courageous willingness to reopen wounds which they had hidden, sometimes even from themselves”. The book is full of these interactions.

As for the title, Che Guevara is the most popular face in Paona Bazaar, the author says. The market has almost everything in store for anyone – umbrellas for as low as Rs 50, Levi’s canvases for Rs 100, high-quality pirated Hollywood films and music videos for as cheap as Rs 35 and colourful blankets.“Ironically the red armies of Manipur haven’t quite adopted him, so thanks to a global fashion statement, Che became young Manipur’s icon years before his global demand.

“Chinese manufacturers have imprinted his face on virtually everything. I found a calendar with garam masala sachets hanging from the month of December in a rundown tea shop which had Che Guevara images. Badges with Che’s face are available in the most unlikely of places, such as an HIV drop-in centre,” Bhattacharjee writes.

“Even Fat James’ restaurant in Churachandpur has a Che face painted on the guitar standing in one corner for anyone to pick up and strum.”

Poana Bazaar in the title is traced to Poanam Nawal Singh, a  Major in the Manipur Army who refused surrender to the British forces.
Despite being an outsider, Bhattacharjee, a Bengali brought up in Shillong, is able to bring out the local cuisine, music, their history or even their biases in great detail. Also funny incidents involving bhoot jolokia also finds mention in the book.


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 1, 2013

Paresh holds the key

The fifth round of tripartite talks promises some hope in Assam but key issues remain unresolved, reports Dulal Misra

Kindling hopes of hammering out a peace settlement in the immediate foreseeable future, the fifth round of tripartite talks between Assam, the Central government and rebel ULFA on March 7 at North Block, were described as 'fruitful.' Terror-shackled Assam could do with some peace, and some hope, however tenuous, has arisen.

Till now, four rounds of such dialogue have largely meandered without any visible sense of direction, the last of them having been held in June 2012 where the pro-dialogue ULFA leaders reiterated their common charter of demands, the most significant of them being a constitutional amendment to protect the political and economic rights of the indigenous people of Assam so that locals get to control the state's natural resources.

In addition, the agitators want a status sheet of missing ULFA leaders and cadres during security operations in Bhutan, 2005. The seven-member ULFA delegation was led by ULFA chairman Arabinda Rajkhowa and the centre was represented by Union Home Secretary R K Singh and Joint Secretary Home Ministry Shambhu Singh. The Assam government was represented by state Chief Secretary Naba Kumar Das and Home Commissioner Sailesh. Central interlocutor P C Halder was also present.

The main point is this: what consensus have the hour-long talks arrived at? As ever, while there was agreement on all sides that peace be established at any cost, there appeared to be no consensus on how to get there. While Rajkhowa sought necessary steps to amend the Constitution of India, the Home Secretary indicated that constitutional amendments like the ones demanded by the ULFA were a big ticket call but that the government will take all steps necessary to solve problems faced by indigenous Assamese.

Clearly, the sorest point of the negotiations remain the status of the ULFA faction led by Commander-in-Chief Paresh Barua, who is opposed to any dialogue with the government and is currently estimated to operate out of the dense forests of Myanmar. Barua says there cannot be any talks if the issue of sovereignty is not put on the table. His hard stand and absence from the scene ensures that the peace talks will be held ransom to illogical and unreasonable demands – and without a cogent end.

Pro-talk ULFA member Diganta Phukan says he is watching. "The talk process has moved in the right direction. But I am not too hopeful about the outcome. One ULFA faction still operates under the open skies of Myanmar. The Indian government and army can't do much as international laws bar any Indian military action against Paresh Baruah in Myanmarese territory. Barua is taking advantage by continuing his ‘struggle’ from that country. This is the great bottleneck in the peace process. I think the Indian government should first convince Paresh Barua to come to the table to ensure a solution of the three-decade-long insurgency in Assam," he told TSI.

Concurs senior journalist Hilloljyoti Bhitoruwal Phukan, "The peace process with ULFA is going in the right direction but I doubt if it can ensure a permanent solution to insurgency in Assam. It the government fails to bring Paresh Barua for talks, the peace process will not be a complete one."

Some hope has also come from Rajkhowa's statement earlier this month that ULFA general secretary Anup Chetia alias Golap Barua may also join the tripartite talks. Chetia has for years made Bangladesh the launching pads of his operations against India. He was arrested in 1997 on charges of illegally staying in Bangladesh, possessing forged passports and foreign currency. After ending his prison term in 2004, he has sought political asylum in Bangladesh. Since then, India has unsuccessfully asked the Bangladeshi government to hand him over at several bilateral meetings, but now with a friendly government in Dhaka, things could be changing.

The Union government's record of conducting peace talks with insurgent groups in North-East India has been patchy. For instance, peace talks with Naga extremist group NSCN (IM) has not made any significant breakthrough despite more than 12 rounds of discussions.

Social activist Prasanta Baruah, told TSI that the "Centre has not taken the problem of insurgency in Assam seriously. The ULFA problem is three-decades old. First the government used military force. That has created more complications. Delhi should find out the root cause of insurgency. It is clear that economic backwardness is the root cause of dissatisfaction of the people of the North East. That needs to be tackled. In the peace process, Paresh Barua is the main hurdle. He is stuck on issue of sovereignty of Assam. But it is an unrealistic dream. History says that no sovereign state was formed with an unorganized and scattered armed revolution. According to my view, ULFA is now an unorganized organization which has a number of factions."


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
BBA Management Education

Saturday, May 25, 2013

Of Men, Gods and God-men

Bloodshot eyes peering past swirling clouds of potent smoke and matted dread locks, a flash of vermilion streaking through ash smeared limbs, scraggy beards and sinewy limbs crashing into the cold currents at the break of dawn – these are the vignettes that mark the Maha Kumbh Mela, one of the greatest shows on earth.

But the stars of the show, the sadhus, as naked as the day, and yet as mysterious as the night, are still as enigmatic today, as they were centuries ago. To the throngs of believers, these holy renunciates are living gods whose ‘darshan’ alone can do everything short of bringing back the dead. But to others, especially from the cities, singed by tales of con artistes masquerading as sadhus, these naked or saffron clad ascetics are just looking for a holy fig leaf to cover their addictions and sloth.

So who are these men who live on the fringes of society, appearing like apparitions on our streets and temples during festivals, and then disappearing, perhaps in a monastery or a cave on a faraway mountain or a dark forbidding forest? Under the glare of camera flashbulbs and television cameras and the pressure of rival clans and adoring devotees, it is difficult to separate the mask from the man, whether holy or not. So let me take you away from the spiritual cornucopia of the Kumbh for a little walk along the banks of the Ganges…

There you see them now, sadhus, young and old, outside their little thatched huts and tents, practicing austerities. Smoke from the cannabis laced chillums dances with the bold blaze of the sacrificial fires. With wiry vigour, the sadhus coax their bodies, forged by heat and hunger, into demanding hatha yoga postures that they hold for twenty minutes or more, as against the few seconds that you hold your headstands for on your mats. Others are doing tapasya that they need to undertake for twelve years – keeping an arm stretched overhead or standing on one leg, the unused limb withers into a useless stick while the leg on which they stand develops sores and wounds. Still others sit in a ring of fire with a flaming earthen pot balanced on their heads while they meditate. These austerities are all methods to purify and sublimate the spirit often at the cost of the body. But these river banks don’t have all the answers. Where do these sadhus go after the two month long festival? And even more significantly, where do they come from? What do they do through the rest of the year?

Well, I can’t speak for all of them but I could tell you about the ones I have met. Contrary to what you might have been led to believe, the ones I met weren’t rustic simpletons, social outcasts, debt burdened runaways or religious fanatics but urbane, educated professionals who just gave it all up and set off in pursuit of the spirit, within and without…

Baba Budhnath was a small man. Bronzed skin stretched thin over high cheek bones and a broad forehead gave way to bushy eyebrows that tried but couldn’t hide the fire in those flinty gray eyes and a thick white beard. But he moved like a man far taller, with a grace and presence that would have done a taller man proud.

Baba Budhnath had been in the naval officer in his younger days. He claimed he spoke seven languages fluently, including English, Bengali, Russian and Japanese. I didn’t believe him and so I asked him questions in all I knew of those languages. Baba Budhnath’s replies weren’t short on grammar or colour.

But Baba Budhnath had left his sea faring days long behind. He had earned his spiritual spurs while meditating in the ghost town of Bhangarh (legend has it that all the citizens of Bhangarh were killed in a great war with a neighbouring kingdom and the deserted ruins are haunted to this day by the ghosts of those who died) in Rajasthan. The locals say that the Archaeological Survey of India tried to evict him from the ruins, but they failed because, in his own words “…how can the government succeed in removing me from Bhangarh when those who live in it want me to stay?” Baba Budhnath claimed that he controlled the spirits that lived in the haunted city of Bhangarh.

Baba Budhnath isn’t easy to find but if the night is right and you happen wander around the forests of Kalighati near Sariska, and run into a small man with gray eyes, greet him with a cheery ‘Preevyet!’ or ‘Konnichiwa!’, and if he replies in kind, you’ve found your man.

The other sadhu I met was in the forests of Rukhad, in the wild heart of Madhya Pradesh, quite by chance. While tumbling along the rocky, dusty forest trail, the car’s radiator gave up the last of its smoky overheated ghost and I had to get down and look for water. Just so you know, these are forbidding forests that are home to leopards, tigers, bears and wolves. And so it was with a lot of trepidation and caution that I set out for the lazy river deep in the valley as it wound its way along the boulders.


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

Saturday, May 11, 2013

Is Tim Cook losing the plot?

Angry investors and bad press has done Apple much damage. Can CEO Cook do anything to pump some pride into what was until recently a mammoth $658 billion-worth corporation?

Five months into his tenure at Apple, Tim Cook invited a select group of Apple’s shareholders at the company’s conference center at 4 Infinite Loop building. The idea was to get those investors to understand the company and its new CEO better – understandably to take a step towards reducing the widespread discussion in the investor community about how weak-willed Apple had grown in the absence of ‘the’ Steve. Apple CFO Peter Oppenheimer first treated them to three-quarters of an hour-long presentation, following which they were served three cookies and two cans of Coke as refreshments. Something unheard of happened at Apple that day. When Oppenheimer had played half his part, Cook quietly walked into the room, chose a seat on the last row and listened. Patiently. His iPhone 4S was on silent mode, and while his CFO spoke for 25 minutes in his presence, he did not add a word. When Oppenheimer’s presentation ended, Cook walked up the front and answered questions that investors shot at him, again with great patience. He explained matters beyond what the company’s financials showed, praised Zuckerberg and Bezos, talked about competition, and in a line assured the 15-odd heads in that room that investors in America now have the freshman CEO’s ear; much unlike Jobs who mostly believed that it was below his dignity to give answers to investors and employees. In their few and many years as Apple investors, the shareholders had never believed, seen or heard of a calm Apple CEO. Jobs wouldn’t have bothered to entertain a lot of dozen-odd investors, out on a ‘bus tour’ of Apple’s campus. Cook did. That was a month before the iPad 3’s official release. That summer (in August), Apple became the world’s most valuable public company ever (with an m-cap of $623 billion), beating the previous best of $620 billion set by Microsoft in 1999. Something that Cook had done to Apple in 12 months was making the company different, wealthier and more powerful than Jobs had in the past 14 years.

Cook was all set to blaze a trail in the world of technology. Victory in the patent infringement lawsuit against arch-rival Samsung in end-August and introduction of the iPhone 5 & iOS 6 in the second week of September, saw Apple peak on September 21, 2012. Its m-cap reached $658 billion. But that’s when the dream ended.

The six months that followed (the past half-a-year), earned Cook a bad name. Today, Apple is battling where it used to crush. Disappointing reviews of its new launches - MacBook, Siri, Apple iMap – and some grossly misguided HR strategies (like the hiring of John Browett as Head of Apple’s Retail business and his firing in 9 months flat, and the firing and rehiring of Scott Forstall, the man behind the Siri and iMaps fiascos and one who was responsible for failing to make the iOS 5 and iOS 6 seem upgrades to the previous iOS versions) have weighed heavy on Apple’s stock price.

Then of course, is the fact that Cook did little to stop the drumbeat of negativity about Apple – whether by making ‘impactful’ public appearances or by bringing to life Apple’s faded marketing mojo. It is understood that scaring investors and customers about Apple’s fast drying innovation pipeline is all a matter of ‘wrong and misguided’ print and online reporting. For those who say Apple has nothing beyond the iPhone 5 or iOS 6, pray tell us what Samsung has beyond the Galaxy S4 or what Sony has beyond the Xperia Z or what HTC has beyond the One X or what even Google has beyond a stitched-up, fragmented ecosystem of a low security-walled OS? All tech companies have a secret called a ‘laboratory’. [You bet, Apple can afford one too.

What is not true is that Apple is dying soon. What is, is that even its ads have become too product-centric, while competitors across various product categories where it exists – like Samsung, Nokia, Microsoft, Acer et al – have gone the other way (compare the recent iPhone ad to that of others and you will get the drift). Moving away from consumers towards margins and being focused only on the product is what has primarily got Cook’s peace. In the past six months, his company missed earnings targets twice (that made it three in a row – from Q3, 2012 to Q1, 2013) and it has shed 36.8% of its market value (that has fallen to $415.68 billion, as on March 28, 2013).


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
BBA Management Education

Monday, May 6, 2013

Payment is made in cash or stock

M&As have always been an area of debate for business experts. However, new research explains who acquires whom, whether payment is made in cash or stock, what valuation consequences arise from mergers, and why there are merger waves

According to the study, managers with long horizons will make the best of their situation by buying more assets with their high share price while it stays high, fully exploiting their knowledge of market inefficiencies.

In the case of the technology sector in the late 1990s, smaller technology firms were willing to sell to giants such as Cisco and receive overpriced shares as payment, because of their short run horizons and the fact that they could quickly sell the Cisco stock and get access to cash. For these small firms, selling Cisco shares was much easier than trying to sell their own overpriced shares.

The Synergy Story

Mergers and acquisitions rely heavily on the perceived synergy of the combination. This synergy may simply be a story invented by investment bankers or academicians or the market, and have little to do with the reality of what drives acquisitions.

Investors want to see a real reason for the valuation, and therefore aren’t satisfied with a company admitting that it is overvalued and using its stock as currency before it crashes, because that will precipitate the crash itself. It is natural that companies will tell a synergy story even when the real cost-cutting opportunities cannot justify the premium paid.

In some cases, stories for synergy might have some validity; however, in most cases, synergy is played up and is really just a story. The real reason for an acquisition is usually the different valuations of the target and the acquirer.

In the case of AOL’s acquisition of Time-Warner using AOL stock, it is debatable whether there were some synergies, but note that there was also unquestionably a potential valuation motive for wanting the acquisition. In this case, the acquisition was an attempt by the management of overvalued AOL to buy hard assets in Time-Warner to avoid even worse long-run returns.

Besides positive perceived synergies, the advantage of acquisitions is that they contribute to the growth of earnings of the firm, and thereby help justify the high valuations. Acquisitions were part of the growth strategy of many technology firms in the ‘90s that helped keep share prices high. The alternative of simply issuing overvalued shares and parking the proceeds in cash would have quickly burst the valuation bubble of these high-flying companies.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
BBA Management Education

Friday, May 3, 2013

Of hurricane Sandy & spin docs!

Out of the 15 percent electorate that has already voted early, Obama has an 8% lead over Romney (53%-45%). But it’s clear that this may not quite be the trend of things to come. Romney’s Republican are expected to chug in late for voting...

By the time you read this article, hurricane Sandy would have ensured that much of Romney and Obama’s campaigning in the last week before polling starts officially would have reduced considerably, if not completely destroyed. Hell wait, scratch Obama out of that sentence – and give the biggest backslap to Obama’s spin docs, who’ve managed a Presidential coup by exploiting Sandy the way no one – especially Romney – could have done or thought of.

Even before Sandy had hit the East Coast, Obama’s spin docs had drawn up a schedule of national emergency addresses that the President would give. What better moment to showcase the President’s heartfelt cry for the affected than a brilliantly prime-time telecast national emergency address! And right on cue, the moment Obama finished his October 29 address on Sandy at the White House in front of reporters, out popped the first question asking the President how Sandy would affect the election. Right again on cue, Obama masterfully replied, “I am not worried at this point on the impact on the election. I’m worried about the impact on families and our first responders. I’m worried about the impact on our economy and on transportation. The election will take care of itself next week.” If you’re done with the tearful applause and have already decided that this exemplary paragon of social commitment is the one you’ll vote for in the coming election, we shan’t blame you. Of course, Romney and Paul also jumped into the Sandy-relief act; but guess who gets free airtime in a state of national emergency without being questioned on it? Not them.

One doesn’t need to second guess that if Sandy had changed her path back towards the sea without hitting the coast, where the biggest gasp of disappointment would have come from! But really, all this is trivialising the fact that America has experienced one of its worst storms ever, and the US administration has really made one of the most commendable advance efforts.

Irrespective of Sandy, Obama and Romney – and their camps – are both caught in the heat of partisanship and trying their best to run their opposition down with flamboyant gallery comments. While Obama lost the first televised debate badly to Romney, but came back strongly in the second and third; replying prudently to the volley of accusations ranging from his foreign policies in the Middle East to his ineffectiveness in mending the American economy. But the slam-dunking has continued. More recently, while Romney’s campaign panned Obama as having “sold Chrysler to Italians who are going to build Jeeps in China,” Biden slammed Romney, “This guy... pirouettes more than a ballerina. Have they no shame?”

Romney has tried to harp on the most pressing questions in the minds of the electorate – of continued high unemployment and economic turmoil. Romney was also firing on all cylinders regarding the defence budget cut by Obama by around $1 trillion over the next decade. Most importantly, Romney insisted that the US is losing its role as the lone superpower and the undisputed leader of the world. With respect to the Middle East, Romney claims that while Obama is pursuing a policy of pacifying the rogue states of Iran and Syria; it should really be the other way round.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
BBA Management Education

Friday, April 26, 2013

The ‘Quiet Leader’ – and how to be one

Traits and critical roles of ‘quiet leaders’ who are often not at the top and don’t enjoy the spotlight. An interview with Martha Lagace of HBS Working Knowledge

Question: You write that one inspiration for your book titled, ‘Leading Quietly: An Unorthodox Guide to Doing the Right Thing’ was the unusual course you’ve been teaching MBA students on moral leadership in organisations. What is a quiet leader? Is quiet leadership a topic you had been thinking about before?
Joseph L. Badaracco (JLB):
I don’t think I really started thinking about it until just a few years ago. There were two things that prompted me to do so. One is that I had written a book called ‘Defining Moments: When Managers Must Choose Between Right and Right’ (HBS Press) which is about big deal, high-stake, traumatic decisions. And there was a natural question: “Is this all there is to writing about difficult ethical decisions?” Or put differently, what happens in between the big decisions – which don’t come along very often? For some people they come along very, very infrequently. Does this mean these people are on vacation the rest of the time? So that was one question that was in my mind. In the course, so many of the people in the works of fiction we read – who aspire to greatness or who achieve greatness – end up badly. There’s the age-old myth of Icarus trying to fly too close to the sun, and there is the suggestion that there is something dangerous about the pursuit of greatness. And at the same time while you read books and plays there are other characters, I noticed, who were what I came to call quiet leaders. You also end up defining quiet leaders almost through a series of negatives. They’re not making high-stakes decisions. They’re often not at the top of organisations. They don’t have the spotlight and publicity on them. They think of themselves modestly; they often don’t even think of themselves as leaders. But they are acting quietly, effectively, with political astuteness, to basically make things somewhat better, sometimes much better than they would otherwise be. Sometimes a few people were aware of what they did; sometimes nobody is aware of what they did. There aren’t medal ceremonies and often the people involved don’t think they would deserve one if the medals were being given out. But often they’re people, I found… in the cases I looked at carefully, who find that some situation or problem or difficulty affecting a person, affecting an organisation, is really bothering them; it gets under their skin. While other people would say, “Hey, why are you getting carried away about this?”, they care about it. They commit themselves and keep working tenaciously, so that over a period of time they find some ways to get stuff done.

Question: When most people think of leaders, they think of real brash types, even rebels. In business, for example, Jack Welch springs to mind as a well-known leader. The idea of a quiet leader seems almost the flip side of that.
JLB:
It is the flip side of a standard or stereotypical view of a leader who speaks the truth or says what has to be done, who inspires others to do it in a critical moment. But I’m sceptical that in the countless meetings Jack Welch spent his career going to, in each one of these meetings it was the Jack Welch Show, and that he heard what everybody had to say and then announced the right thing and inspired everybody to do it. You have the famous example of Rosa Parks (an African-American civil rights activist), saying, “I’m not sitting in the back of the bus.” Well, while that was a remarkable act of courage on her part, and in some degree was kind of a spontaneous event, she’d just had enough of this kind of treatment from one particular bus driver. She’d even stopped riding on his bus and got on by accident. She’d been to a number of civil rights training programs. After she was arrested, the people in the civil rights movement asked themselves, “Is this the right person... is this the right case to challenge segregated busing?” So there’s a lot of preparatory work and a lot of work afterwards. Quiet leadership is not really the flip side. If you look behind lots of great heroic leaders, you find them doing lots of quiet, patient work themselves.



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

Wednesday, April 24, 2013

Letters to the Editor

Excellent magazine
Business & Economy is an excellent magazine. The amount of hard work that has gone into the entire exercise shows. The best thing about the document is the real clarity in terms of mapping of cities wherein all aspects of the market have been covered in simple terms. The visual appeal is brilliant and this is a great reference point for a layperson. It has some of the best financial articles I’ve ever read. The articles are deep, academic, and extremely well thought out. Business & Economy is intellectual, extensive and insightful. Articles range from macroeconomic trends to stock market trends to business news stories. I also wish 4Ps Business & Marketing all the best in their endeavor towards empowering people with invaluable information in one place.

Navin Raheja
Chairman, Raheja Developers Ltd.

A note of thanks
Thank you (for reviewing my book, Reverse Innovation) . That’s my simple message to my network of friends & supporters.

Since the launch, our new book Reverse Innovation: Create Far From Home, Win Everywhere, has appeared on several best seller lists:   Best Seller (#7), USA Today Best Seller (#1) & Wall Street Journal Business Best Seller (#1).

The dynamics of global commerce are changing quickly. I am hopeful that Reverse Innovation will have tremendous impact, both on global corporations and their customers in the developing world.


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

Friday, April 19, 2013

“Solar can trade up to 50 GW capacity by 2020”

Alternative energy isn't still the norm not just in India, but around the world. And even when we talk about non-fossil fuels, we end up discussing only nuclear power. But Ratul Puri, the scion of the Moser Baer kingdom, is extremely confident that solar will be a major game changer in the sector.

B&E: Moser Baer has now become the first Indian solar photovoltaic company to install 100 MW of solar power globally. How has the alternative energy business been performing for the company so far?
Ratul Puri (RP):
Certainly, we have generated significant revenues from solar and we see these revenue streams increasing significantly over the next year or two. This alternative source of energy should be able to contribute 20-25% of our top line and an equivalent share of our bottom line by 2015.

B&E: For that kind of revenues to flow in, you must be having some big plans for alternative energy. What are these and how do you plan to achieve them?
RP:
For now, it's solar. We are looking at setting up around 300MW of solar capacity by June this year. We have already commissioned around a 100MW of solar capacity on a global basis and are looking at increasing this capacity to 300MW shortly. Our investment plans in solar this year are a little over Rs.4,000 crore, out of which, around Rs.3,500 crore are in India and around Rs.1,500 crore are planned in Europe.

B&E: Are the finances tied up for meeting your massive targets for developing solar power?
RP:
For ramping our global solar capacity to 300MW, we are looking to raise both debt and equity in the ratio of 75:25. We have raised close to a billion dollars in equity over the past 12 months. That makes us probably one of the most well-funded solar power developers in India. So, capital infusion is not a challenge.

B&E: Apart from India, which other markets are you looking at to exploit opportunities in an untapped non-fossil fuel market?
RP:
Besides India, we are major solar power developers in Germany, Italy, Spain and the UK. We recently commissioned UK's largest grid connected solar farm. I think our key focus market is the US after Europe. We are already one of the largest solar power developers in Europe.

B&E: Are you looking at other energy sources as well?
RP:
Moser Baer is a well-diversified energy producer and as such we are looking at the entire spectrum of energy options. We are into coal thermal power plants and are developing and building almost 4000MW of coal thermal power plants. At the same time, we are also building hydel capacity. We are into coal mining, both in India and outside India, to meet our fuel requirements. India needs a mix of fuels to meet its energy requirement going forward. Coal thermal cannot do all of it, solar cannot do all of it, gas cannot do all of it. We will end up with a basket and I think that there is going to be an increasing focus on renewables because they provide an ideal solution for meeting the challenges in the power sector today - whether it is land acquisition, availability of coal, etc.


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

Monday, April 15, 2013

Get more into third world driveways

Irrespective of all possible speculations before, during and post GM’s Chapter 11 experience, the brand has become a force to be reckoned with, and primarily in the eyes of Americans themselves. But the story beyond home ground is that GM still has a long way to go.

The General has been through this a few years back, when Toyota toppled it to become the world’s largest automaker. During the recession, they were also humbled by Detroit cousin Ford, which survived on its own, while GM earned the embarrassing label of ‘Government Motors’. And now more recently, three analysts surveyed by Bloomberg have concluded that Volkswagen, with an expected sales of 8.1 million vehicles this year and growth of 13% yoy, will overtake GM and Toyota to be the world’s number 1 automaker in 2011.

For GM, those kind of numbers are very relevant as it would be itching for the crown again. But they may not be as much of a concern at the moment; mainly due to the fact that their balance sheet is beginning to look healthy now. For the quarter ending June 2011, the company posted revenue of $39.4 billion, a growth of 18.6% yoy while net profits grew by 33.33% to $3 billion in the quarter. As of june 2011, GM had nonrestricted automotive cash and investments at around $32.8 billion. The Bloomberg trio have also projected that GM would gain by 8% yoy this year to reach around 7.55 million units, which will give it the second rank in the global pecking order followed by Toyota, which is looking at dropping sales especially post the tsunami.

So how is the former number 1 from Detroit looking at its sales in global markets. This is a stage where its past nemesis Toyota is facing a rough patch, but it has to confront an aggressive rival from Europe. Volkswagen’s ascent has a lot to do with their growth in both China and India. As far as GM is concerned, it is getting a positive contribution from all regions other than South America as region-wise EBIT figures indicate. More importantly, it is making a comeback in its own backyard. North America was particularly robust, where EBIT increased by 41.27% to reach $2.25 billion. CEO Dan Akerson credits this to better customer focused innovation and production of more design savvy and economical vehicles. The Chevy Cruze, Cadillac CTS Coupe and GMC Terrain are instances of vehicles that have gained favour with American customers.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
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Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

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Thursday, April 4, 2013

Would you Send your Child to a Government School?

From Infrastructure to Accountability, Government Schools seem to be Perennially lagging behind. It’s high time The Government wakes up to the newer methods to force The Government-run schools to perform and deliver the best to Educate the future Citizens of this Country.

Mrs. and Mr. Khanna (Vasant Vihar, New Delhi) have been extremely worried since the last few months – the reason being their four-year-old daughter’s education. The major tussle was regarding the selection of a private school over a government one. “We just couldn’t risk a government school for our daughter,” is what they have to say. Unfortunately, they are not the only ones who have to go through this turmoil of parenting (deciding on the right school).

Even worse, this problem is not a recent development in the Indian education scenario in spite of the fact that the present government spend per child per month is more than the fees in 80% of the private schools. But still, the government schools in rural India are a pitiable sight. The scenario certainly differs a lot in the semi-urban and urban areas in terms of proper infrastructure, but the peril right now is that as much as 80% of the funds allotted to government schools is spent only on infrastructure and teacher’s pay and not on enriching the way education is imparted. Using it as an advantage, the private schools have managed to gain popularity among the parents.

Cut to the metros and there is a sea change in the way parents look at the type of schooling they want for their children. Most, if not all, believe that they should rather spend more and send their children to the nearest DPS (Delhi Public School) instead of a government-run school. As one of the parents points out, “I want my son to get educated in the new westernised method where there is much more than mere classes of English, History and Maths. Public schools have classes like mental maths, playing with ceramics, fashion and textile, and teachers are readily available for counselling to help build up the personality of a child.” In fact, these parents believe that the teachers in such schools are helpful and are willing to extend help even beyond class hours. But this is possible only for those who can afford such form of education. Thus, the question remains: What about the major part of the population that still can’t afford to send their children to these plush private schools?


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

For More IIPM Info, Visit below mentioned IIPM articles

Monday, April 1, 2013

Dial RBI for Missed Numbers!

From Inflation to Liquidity Deficit, The Fiscal gone by has seen RBI missing on many Projections; still, The New Monetary Policy has Proposed high hopes. But Considering that India at Present is Living a trade off between growth and inflation, RBI needs to be more Serious and Realistic in its Approach.

For the past 18 months or so, India has been at the crossroads – unable to decide whether to control the inflation menace at the cost of growth or concentrate on a double-digit growth allowing inflation to take its natural course. Perhaps, that is the reason for which, we have only RBI fighting against inflation through its monetary policy measures. But what is hilarious is the performance of statisticians at the RBI headquarters. Because of them, the RBI is even more confused as to how far and how fast it should move to control inflation.

Amidst a high inflation rate of over 9% prevailing all throughout the last 12 months, perhaps, few must still be remembering RBI’s annual policy statement in 2010. With great amount of determination, the apex bank targeted to bring down inflation to as low as 5.5%. But after 5 rate hikes of 25 basis points each between April and November, the RBI finally realised that they are heading nowhere. So, by January the inflation target was revised to 7% and then to 8% in March, yet it was wide off the mark as WPI in March climbed 8.98% and this provisional figure, when revised, could get close to 10%. After the disastrous predictions in the last fiscal, in the Monetary Policy announced for financial year 2011-12, RBI has now pegged inflation at 6% with an upward bias. But, considering the increasing pressure on commodities in the country due to supply side crunch in particular and the instability in global crude prices, a revision of this target may soon become necessary despite RBI’s bold 50 basis point hike in repo and reverse repo rates early this month (eighth consecutive rate hike in less than 13 months).

But it’s not only on the inflation front that the RBI economists have floundered. RBI was also found in soup in case of liquidity management in the system. The bank’s measures to control liquidity was certainly in line with its measures to combat inflation till liquidity deficit shot up to unparallel levels. While RBI’s comfort zone is plus/minus 1% of net demand and time liabilities (NDTL) or Rs.500 billion, in the second half of the fiscal liquidity deficit climbed up to as high as Rs.1,700 billion and the deficit remained over double the RBI estimate for a good part of the second half of the last fiscal. So much so that the RBI had to undertake open market operations (OMOs) and other measures in the third quarter to ease liquidity pressure. In total, RBI had to purchase government securities of Rs.670 billion to control the situation till the government started increasing its spending in the last quarter.

But the question remains, why could the RBI economists not see this coming? Were they expecting this liquidity crunch to take care of inflation by anyway and it was just about to be proven as a fatal hope than a well calculated risk? The second seems to be more appropriate, at least for the way RBI kick started a number of measures to mitigate the liquidity deficit in the last quarter including reduction in the statutory liquidity ratio (SLR) from 25% of NDTL to 24% with effect from December 2010, and additional liquidity support to scheduled commercial banks (SCBs) under the liquidity adjustment facility (LAF, this facility, which was initially available upto 2% of NDTL, was brought down to 1% after reduction the SLR by one percentage point). In fact, the average daily net liquidity injection through LAF was at around Rs.1200 billion during December 2010 (Rs.900 billion in January 2011).


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

Wednesday, March 27, 2013

Can He Read The Writing on The Wall?

While The US National debt Currently stands at a Staggering $14.235 trillion, The Federal budget deficit is Estimated at Over 10% of GDP for FY2011. B&E Catches up with The US Department of The Treasury, Moody’s Analytics and Others to find a way out of The Situation for The US Government.

Just as the US economy seemed ready to hit its stride, new threats have appeared to trip it up. Well, the writing on the wall this time is: Federal borrowing is likely to hit the statutory limit very soon. In fact, as of March 14, 2011, the total public US debt stood at a whopping $14.235 trillion (about 103% of US GDP, and more than $1,00,000 per US tax payer), or just $59 billion below its present statutory limit of $14.294 trillion. Confirms Mary Miller, Assistant Secretary for Financial Markets at the US Department of the Treasury through a communiqué to B&E, “The Treasury Department now estimates that the US will reach the debt limit between April 15, 2011 and May 31, 2011.”

Though one would argue that the situation is not new for the US policymakers who have increased the statutory limit 17 times since 1990 (the debt limit then was $3.195 trillion) to its current level, there lies a catch! Although Congress plans to increase the ceiling once again, several Republicans have vowed to oppose the increase this time unless the Obama administration commits to deeper spending cuts. And if the Republicans go by their word, the government would be in a position where it could no longer borrow to fund its day-to-day operations, which perhaps might result in a partial shutdown or a default on debt payments by the US. This could even force credit rating agencies to downgrade the country’s credit rating (US at present has AAA credit rating), which not only would affect the much-hyped American pride, but will also more importantly result in bond investors demanding higher interest rates, thereby adding to uncle Sam’s overall debt burden.

Moreover, the issue pops up at a time when large annual budget deficits (for FY2011 the federal budget deficit is estimated at $1.645 trillion, over 10% of GDP from just 1% in 2007) are projected to continue indefinitely under current laws. In fact, if current policies remain in place, the US Congressional Budget Office (CBO) projects that while the national debt, subject to the statutory limit, will exceed $25 trillion in 2021, deficits will total $7 trillion over the next 10 years.

Unfortunately, while the nation’s budget deficit and debt load are out of control (the highest since World War II), President Obama’s recently released 10-year budget plan doesn’t generate the much-needed confidence that the economy’s fiscal problems will be resolved anytime soon. Agrees Mark Zandi, the US based Chief Economist of Moody’s Analytics as he tells B&E, “Obama has put forth a budget that isn’t sustainable even on paper. Even with a freeze on discretionary government spending – the President’s principal response to the fiscal outlook – projected deficits are too large to stem an unmanageable rise in the nation’s debt.”


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 18, 2013

Big Challenge is Positive Cash Flow

Ram Yadav, Head – Finance and Strategy, Orbit Corporation, In an Exclusive Interview with B&E’s Mona Mehta

Orbit Corporation has been one of India’s biggest redevelopment real estate players and has been much far ahead of any possible competition in Mumbai. Ram Yadav, Head - Finance & Strategy, Orbit Corporation, shares the current scenario for Orbit and its future plans and strategies:

B&E: How has this year been for Orbit Corporation in terms of financial performance (on basis of sales growth) and what are your future targets?
Ram Yadav (RY):
The sales growth has been phenomenal for us in recent times. We clocked fresh sales of Rs.7.894 billion in FY10 as compared to a meagre Rs.851 million in FY09 due to the slowdown. In the current financial year, we have already registered sales of Rs.3.44 billion. We are targeting a 30% growth in revenues in FY11. To achieve the same, we are ramping up our human capital, execution capabilities and building efficiencies in the overall processes.

B&E: What’s your take on the real estate sector’s major challenges and what’s your suggestion to investors interested in realty stocks?
RY:
Lack of transparency and industry level benchmarking in the real estate sector has created an environment of mistrust for the entire developer community. The challenge is to move towards greater transparency and better corporate governance for the sector. My suggestion to investors is that their time horizon of investment should be medium to long term as quarter on quarter results of a realty company is not a correct parameter of true value.

B&E: Amidst a tight liquidity scenario, what are the major challenges for Orbit and how will you tackle them?
RY:
The major challenges are to maintain positive operational cash flow and quicker maturity of projects under acquisition. To handle them, we are focussing on reducing inventory gestation and faster execution to shorten our cash conversion cycle and also on aggressive acquisition of projects under pipeline.

B&E: Is Orbit planning to enter into JVs for its upcoming real estate projects or looking at offering real estate services to other infrastructure/real estate companies?
RY:
We believe that the real estate business is local in nature and the best way to expand geographically is through JVs with local developers. Our company keeps on evaluating such proposals for JVs on a continuous basis. As and when we see an attractive opportunity, we may go ahead with JVs.


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