Showing posts with label IIPM Admission. Show all posts
Showing posts with label IIPM Admission. Show all posts

Thursday, September 19, 2013

Sons rise in the east

Tejaswi and Chirag plan to make impressive political debuts in 2014 and take their fathers’ political mantle ahead. Sanjay Upadhya reports

They are young, stylish and trendy and could hardly be described as icons of backward politics which their fathers espoused with such fervor. Tejaswi Yadav and Chirag Paswan, sons of Rashtriya Janata Dal (RJD) strongman Laloo Yadav and Dalit leader Ram Vilas Paswan respectively, are here to stay and carry the political baton ahead in Bihar.

With their fathers’ career not particularly on the upswing, it is but natural in the Indian scheme of things that children take over. In the recent past, both have made their presence felt in the political corridors of power launching scathing attacks on Chief Minister Nitish Kumar for his ‘misrule’.

Both of them have many things in common – apart from political lineage. One was a budding cricketer, the other a wannabe film star, their innings nipped early in the bud. On their fathers’ invaluable political advice, they have so far kept away from day to day politics, preferring to keep ‘social mission’ as their motto – as of now.

At the recent Parivartan rally in Patna’s historic Gandhi Maidan, Tejaswi thundered like a trained politician, aiming his guns at his father’s bĂȘte noir Nitish Kumar.  Young, energetic and soft spoken, Tejaswi represented Jharkhand in Ranji Trophy and was part of Delhi Daredevils in IPL.

He is set for another innings,now that cricket has not paid adequate dividends and what better than to take daddy’s mantle ahead? Blue-eyed Chirag Paswan, who had a small role in eminently forgettable ‘Mile Na Miley Hum’, realized that the film industry was the prerogative of Kapoors and Khans. So? Next stop politics of course.

A Paswan aide confesses that Chirag is being trained for building bridges with the Congress and Rahul Gandhi. “I won’t say I and Rahul Gandhi are best friends, but we have grown up together and our families are very close so I did not have to convince Rahul to watch my maiden film,’’ Chirag said during a recent election campaign. He had earlier told TSI: “my heart beats for films and politics is in my blood.’’ It is common these days to see giant cuts outs of Chirag posing with dad Ram Vilas, all in style mind you. At the main gate of the Lok Janshakti Party (LJP), a smiling portrait of Chirag welcomes all with folded hands. Like Tejaswi, Chirag’s attacks on ‘uncle’ Nitish are polite and non-inflammatory, away from the rough and tumble of Bihar politics.

Sensing change in the political air – with the Maharajgunj Lok Sabha bye-elections victory and the JD (U)-BJP split as the background – Laloo Yadav is set to provide 40 per cent tickets to youth. Party insiders say it has already been decided that the command of the youth brigade would be given to Tejaswi.

When Yadav Jr. is in town, he is busy preparing his list of youth volunteers. He is a regular visitor to the RJD office encircled with friends. He takes keen interest in party affairs without being overbearing and is reverential towards the party’s senior leaders.

Father Laloo Yadav is playing a vital role in Tejaswi’s baptism. In 2010, he formally introduced his cricketer-son in politics. “Look at Tejaswi, he is going to do wonders in politics. He is good orator,’’ a beaming father had told a press conference. During the 2010 assembly elections, Tejaswi addressed many political meetings but despite his presence in Raghopur, mother Rabri Devi could not win.

However, the induction of the two siblings has raised the specter of dynastic politics, a cause which had propelled their fathers to political super stardom in the salad days of the JP agitation back in the 1970s.

JD(U) and BJP leaders allege that RJD's Parivartan rally was aimed at handing over the baton – an extension of Laloo’s move to install wife Rabri Devi as chief minister in the bad old days of the fodder scam. Post-fodder, Laloo build his bridges with the Gandhi-Nehru family, since everything is deemed ‘fair’ in politics.

That has not enthused other members of the Laloo Yadav clan. His brothers-in-law Sadhu and Subhash, both power centres in the days of RJD rule, are particularly miffed. “Jijaji ab satta mein kabhi nahi aayenge,’’ (brother-in-law Laloo will not never come to power) predicts former MP Sadhu Yadav.

Laloo, who had once described both Sadhu and Subhash as his energy tonic, is now keen to give them the short shrift. One insider says both the salas (brother-in-laws) are not allowed entry into the Laloo Yadav household.
However, the canny RJD strongman had given enough indications that “all my children have careers in politics ahead of them.’’ The time to blood one of them has arrived with the 2014 General Elections on the horizon.

Now, with the advent of Tejaswi, it is clear that the party’s youth wing is going to be headed by him. RJD has already announced that 40 percent of party tickets will be distributed to young leaders. Clearly, the 2014 elections will be the right occasion to keep dynastic politics going ahead in good stead.


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

Saturday, June 01, 2013

Beyond Matryoshkas & Marshrutkas

With its fabulous museums, rich cultural life, breathtaking architecture and history in every nook and corner, Moscow, beyond doubt, will remain forever etched in your heart. By Saurabh Kumar Shahi

Sheer mention of the word Moscow evokes myriad of imagery among the Indians of all age group. For the people in their mid-50s and beyond, Moscow evokes the best of Soviet Union days. A mishmash of culture, literature, politics—both cladestine and otherwise—heritage and much more. For children, Matryoshka Dolls and Nikulin Circus evokes pleasant memories. But then, there is a sudden blackout. As USSR disintegrated in the early 90s and India started looking for greener pastures, the affect was seen widely. The flights between Indian cities and Moscow dwindled as their national carrier, Aeroflot, started making news for the wrong reasons. Lured by the post-Cold war Europe and further West, tourists started looking for more options. Amidst all these, Moscow started slipping from the radar. A decade or so later, it remained a shadow of its former self.

However, as it is said that one bounces back after hitting the rock bottom; the same stood true for Moscow as well. The over exposure of Western cities, the desire to explore what is near and the plain nostalgia has put Moscow back on the travel map. Meanwhile the city has added so much to its profile that a fresh look has become necessary.   

Basics first. If there is one carrier that has completely reinvented itself in the last few years, it is Aeroflot. Gone are the days of rickety planes, soggy food and torn carpets. Aeroflot now boasts of one of the youngest fleets of aircrafts in the world served by Boeing, Airbus and indigenous Antanov and Ilyushin. It has direct connections to almost all the big metropolises in India and has a sector leading luggage allowance.

Moscow, because of its sheer size and importance, is served by as many as four international airports. However, without exception, if you are not planning to take your private jet or sneak inside a commercial jet, you are most likely to use either Sheremetyevo or Domodedovo International Airports. The flights from India lands at the former, which is new and splendidly equipped.

AeroExpress serves the connection between airport and Belorussky Railway Terminal in the city centre that are half an hour apart. This is the cheapest and the easiest way to reach Moscow downtown. You can take taxi too but it is costly and will take much longer time amidst traffic snarls especially during peak hours.

Going around in Moscow is a breeze. The city boasts of one of the most efficient and widespread metro networks in the world. The lines are laid out in such a way that one can see the entire city without being away from the metro station anywhere. There are cards for multiple trips and transfers are free. Stations, as well as the city, have destinations and roads written in both Cyrillic as well as Roman scripts, and maps are readily available.

Muscovite are interesting people. While at the first look they might appear as reserved, the people are actually very forthcoming and any request for assistance of any kind is enthusiastically accepted. The younger lot is more expected to know English than the older people.

Moscow is a huge city and is widely spread with attractions dotted all over the map. Therefore sightseeing needs a bit of planning and commonsense. Unless you are stopping there for, say, at least a week, it is advisable to make a priority list of attractions so that you fully enjoy them by spending time which they demand. While there are many tour operators who have customized itinerary to help you out, the more daring ones can go independently relishing the city.

The first place to start is of course Red Square. Right in the heart of the city, Red Square is city's biggest and the most important city square. Known for stunning parades during (and after) Soviet Union days, the place attracts lots of tourists any time of the day. Apart from the square itself, the place also has the iconic St. Basil Cathedral at one of its corners towards the Moskva river.

Cathedral's stunning onion-shaped domes have become a sort of establishing shot for the city and one needs to spend some time to fully enjoy its architecture from both inside and outside.

Right in the middle of the square, overlooking the long brick walls of Kremlin is the mausoleum of Vladimir Lenin, where his body is preserved. A visit is a must for everyone enthusiasm in history or a lack of it notwithstanding. At the opposite end of the Cathedral is the State History Museum.  The museum has a treasure trove of centuries of artifacts that will steal your breath. You also has an option to have your photos clicked wearing a Czar or Cossack dress.

The Kremlin, the seat of Russian executive, is another must. Situated at a walking distance from the square, the place itself needs a full day to fully appreciate. Particularly interesting is the antique weapons and gems collection in the Armory. One also has an opportunity to visit several beautiful churches that dot the landscape. There are ballet shows to catch as well. One can also spend time by just sitting in one of its numerous gardens and witnessing the time fly by. Another place to spend some quality time is the nearby Old and New Arbat streets. There are numerous eateries and cafes where one can spend time.    
       
Moscow is the city of museums and galleries. While it is impossible to visit all of them, one can pick some of the most important ones such as Pushkin Museum and Park Pobedy. Pushkin Museum and its annexe is dedicated to western art and has arguably one of the world's best Impressionist and Post-Impressionist collections. Park Pobedy or Victory Park is dedicated to World War II and has impressive collection from the era. This museum also boasts of some of the world's best Diorama by some of the best masters in the craft.

If you want to relax and spend sometime with your loved ones, Gorky Park is Moscow's trendiest place to be. Dotted with cafes, open air theatres, cinema halls, theme rides and what not, the park is a must visit if you have children accompanying you. Bibliophiles on the other hand will give their right hand to visit Moscow State Library and take a look from inside. At the end, you wont be able to decide whether the impressive collection of books or the intimidating architecture that left you stunned.

Of the cathedrals, Christ the Savior Cathedral and Novodevichy Convent are the most important one. The former was detonated during the Communist era, but following the collapse of USSR, it was re-erected exactly on the old design. It is on the banks of Moskva river so one can see the panoramic view of Kremlin from here.

Novodevichy Convent on the other hand was tolerated even during Stalin years and hence survived. Taking a stroll inside the convent is heavily recommended, but even more recommended is the adjoining cemetery. Apart from the Kremlin necropolis, this is probably the most famous cemetery in the world if one considers the profile of those buried. From comedian Nikulin to author Gogol, from Chekhov to Ilyushin, from Nikita Khrushchev to Boris Yeltsin; the cemetery is full of people who were not only respected in Russia but all over the world.


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 11, 2013

“Right to banking should be made a fundamental right”

C. H. Venkatachalam, General Secretary, All India Bank Employees Association, says what is really required now is re-emphasis on the social objectives of PSBs and retuning their activities co-terminus with the national planning process

When India became independent in 1947, all our banks were in private sector and were handmaids of one or the other industrial house. Later, when India chartered the path of planned development with public sector playing a pivotal role in it, resources were required. However, these banks that had huge public money were reluctant to get involved.

Banks were unwilling to go to rural areas and serve the masses. They were more interested in doing business in cities and towns, and making big money in the process. Agriculture had to be developed and as such rural India needed financial help. But private banks refused to cooperate. Hence, came the necessity to convert Imperial Bank of India into State Bank of India in 1955. This was the beginning of public sector banking in India. Then came the watershed decision – the nationalisation of 14 private banks in 1969. This completely changed the Indian banking scenario.

Banks started moving to villages extending credit to priority segments which were hitherto neglected. Class banking was getting melted to mass banking. With further dose of nationalisation in 1980 and starting of regional rural banks (RRBs), public sector banks (PSBs) became a dominant force in the country controlling about 93% of the banking activity.

Bank credit started reaching agriculture sector, and for employment generation, poverty alleviation, , infrastructure, etc. Banks were finally on the right track. But with the advent of new economic policies in 1990s, banks started journeying in a different direction. Government’s equity in the banks got diluted. Provision was made to allow private capital upto 49% in PSBs. Then came the policy decision to allow new private banks, and a dozen of them came in the scene only to vanish soon.

A case in point is Global Trust Bank which was started with all fanfare and open encouragement from the Government. But what happened to that bank and how that poison had to be swallowed by a PSB – Oriental Bank of Commerce – is a history now. Now the Government wants to go in for the next generation of reforms. Recently, they managed to get some amendments approved by the Parliament in the Banking Laws – more voting rights to private investors in PSBs, from 1% to 10%. Similarly, in private sector banks the present ceiling on voting right has been relaxed to 26%. What for? The game is clear; give greedy private players more access to India’s strong banking system that deals with huge public money. The total deposits of Indian banks have today crossed Rs.60 lakh crore. It is four times the total annual budget outlay of the Central Government. In short, liberalise the regulations and allow these players to plunder public savings.

Read more......

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

Tuesday, May 07, 2013

LETTERS TO THE EDITOR

Distinguished teamwork

Thank you for providing me with the opportunity to participate in the Inside China article (Business & Economy cover story for the month of August 2012). I am impressed by the knowledge and expertise of the authors and the overall quality of production. Your staff did a terrific job of adding graphics, tables, photos and editorial changes to my humble story. It has received positive reviews from friends, family and colleagues for its level of professionalism and polished appearance. I especially enjoyed reading the China: Read. Learn. Repeat article by Prof.A. Sandeep. The focus on the Chinese auto industry was spot on and well written. I am pleased to be associated with such a distinguished collection of experts. Thank you once again.

Arthur C. Wheaton
Director, Western NY Labor and Environmental Programs & Faculty of Industrial Relations, Cornell University ILR School

Great issue on Reverse Innovation/Exnovation

The Business & Economy issue on ‘Reverse Innovation/Exnovation’ (cover story for the month of October 2012) was simply a great issue and I totally loved it. You have exactly captured the essence of reverse innovation. In my view, Reverse Innovation represents the biggest opportunity for India in sectors as diverse as transportation, energy, health care and education.

Prof. Vijay Govindarajan
Earl C. Daum 1924 Professor of International Business, Tuck School of Business University of Dartmouth


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

Saturday, April 27, 2013

"I only bother about production volumes"

C. S, Verma, CMD, SAIL – India’s largest public sector steel company and the second-most profitable in the business in India Inc., refuses to believe that dampened economic sentiments are making life difficult for Indian steel businesses. For him, 10% is how the trajectory of growth appears for the industry. He might be right.

B&E: Besides being one of the highest profit-makers in India Inc., in recent years, the Rs. 503.5 billion topline-earning SAIL has worked on marketing its brand. How important is the brand to the company and its stakeholders?
Chandra Shekhar Verma (CSV):
Today, branding activity in the steel industry in India is on the rise. And from September 1, 2012, the government of India will introduce the mandatory BIF standard, which will make branding compulsory for industry players. As far as SAIL is concerned, today, roughly 20% of our sales come from products that are branded. So, in times to come, brands and the power of branding will hold great importance for all in the steel industry. At present, we have more than 3,000 dealers and 67 warehouses across the country, so we expect branding to hitherto impact positively the efforts of SAIL as far as strengthening its front and back-ends are concerned. Investments in branding will also give us a distinguishing upper-hand over competition that is rising each day.

B&E: You mentioned competition – can you elaborate?
CSV:
Today, government policy allows free import of steel from overseas – therefore it is a case of survival of the fittest. And this is again where I come back to the branding bit. We had to create brand equity in the minds of customers. Due to the marketing activities in recent past, I can say that SAIL has got a brand awareness that is unmatchable. Whenever customers or government officials talk about steel, they talk of SAIL. And the popularity of our slogan which goes as, “There’s a little bit of SAIL in everybody’s life”, proves the how SAIL has been able to position itself in a cluttered market where there are more than six to seven big players.

B&E: India’s steel consumption grew only by 5.5% in FY2011-12 to 70 million tonne due to lower demand from industries like auto, FMCG and construction. This figure shows lack of investment in industrial projects. There is all the talk about a slowdown in the steel industry – what is your take on how your company has performed vis-Ă -vis the industry during FY2011-12?
CSV:
I don’t agree that either the Indian economy or the steel sector is facing a slowdown. India is a demand centre as far as consumption of steel is concerned, and even last year, despite an increase in production, we had to import steel to fulfil just our domestic demand. And the fact that the government has planned a total investment of one trillion dollar during the 12th Five-Year plan period is definitely an encouragement for investors and participating companies in the steel industry. Moreover, to achieve 1% growth in GDP, there has to be a growth of 1-2 times in production of steel. To be realistic, yes, we are not completely insulated from the happenings in Europe and US – the slowdown and crises across various markets have impacted India, but the fear of slowdown only lives in the mindset of people in this country. Today, the installed capacity of steel in India is about 82 million tonne a year, which is going to rise to about 140 million tone by the end of the current Five-Year plan and then to more than 200 million tonne by FY2020-21. The reason for a slowdown in the sector in Europe and US is that they are oversaturated economies and the low 1-2% growth in their economies cannot drive forward demand of steel. But if you look at growth of the steel sector in India it has averaged 8-10% over the past few years. And this growth will continue.

B&E: So you claim that the previous financial year was not a challenging period for SAIL?
CSV:
Challenges were there. They still are. But the growth of more than 8% in demand and production of steel in India over the past few years, due to the India growth story, has been more than encouraging for us. There are challenges galore. More and more players are entering the industry today. The market is a free import market so if we are not cost competitive, there will be imports from China. Today, the total installed capacity of steel in the world is 1.8 billion tonne. Of this, 50% capacity is in China. And China is our next door neighbour. So, if we do not control costs and therefore prices, there will be free imports from China. So there are many more such challenges in the industry in India, but the opportunities outweigh the threats. And this is really not the case with other economies in Europe. India presents a growth opportunity for this industry.


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

Wednesday, April 24, 2013

“We’ll try to close the gaps in our after-sales process”

Neeraj Garg, Member of Board & Director, Volkswagen Passenger cars, talks about the automaker’s plan of action in the all important Indian market

B&E: As compared to what Volkswagen has achieved in markets like China and Europe, it is still early days for the automaker in the Indian market. What it is that VW wants to achieve in India?
Neeraj Garg (NG):
As a company, we are looking at becoming a key driver of the growth in India’s automobile market. After we started launching products in the high-volume segments three years back, we have been able to gain a strong position in the Indian market. As compared to a sales volume of 3,000 units in 2009, we sold 33,000 in 2010 and 78,000 in 2011. We are today the sixth-largest passenger car manufacturer in the country. Is this where we want to stop? Certainly not!

B&E: Globally, VW has a plan to become the market leader by 2018. While it is expected that the company will be able to achieve that milestone before the set year, what is your view on the market share that you would like to achieve in India by, say 2018?
NG:
What I’d like to say is that if VW wants to keep growing, we will have to keep on expanding our sales volumes here. We are among the top three globally. And because India is a strategically critical market for us, we have to build a very strong footing for ourselves in this domestic market. Three years back, the awareness level of our brand was single digits. Hardly anyone knew what VW stood for. Today, that awareness level has risen by 800-900%, which is a significant jump. Although in this respect we are still way behind companies like Maruti, Hyundai and Tata – whose awareness levels range from 90%-99% – I think we have been able to communicate well with our target segment. We have the potential to climb up the ladder. However, this process will take time. Today, we are catering to only 40% of the total market with our seven-product line-up. Hoping that the industry will sell more cars than the 2.2 million cars sold last year, all I can say is that we are right on track.

B&E: You have outpaced the industry in terms of growth over the past few years. What is the action plan for this year?
NG:
This is the time to check whether we are ready for the long-term growth of the domestic market or not. We plan to fill the gaps in our system and consolidate what we have achieved so far in India. For instance, since our sales network has grown exponentially, there are gaps in the after-sales process. We will also be addressing issues like manpower training et al.

B&E: And what about the novelty factor, since your competitors have launched many new models over the past few months?
NG:
All our products are new in any case. Vento is one year-old, Jetta is just six months-old and Passat is just nine months-old. India is very different from the developed markets where manufacturers have to snatch away market shares of other manufacturers to grow. India has a lot of headroom for all manufacturers to grow and we will be able to scale up volumes by opening more dealerships and infusing more efficiency into our system.


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

Friday, April 19, 2013

B&E Indicators

PE investments up 24% in 2011

Private Equity (PE) firms invested $10,117 million over 441 deals in India during the 12 months ending December 2011, compared to $8,187 million across 362 deals during the previous year. These figures, which include VC (venture capital) investments and exclude PE investments in real estate, take the total investments by PE firms over the past five years to about $47 billion across 2,062 transactions.

IT – still the hot favourite

With 137 investments worth about $1,752 million, Information Technology and IT-Enabled Services (ITES) companies topped in terms of both investment value and volume during 2011. The Energy industry absorbed $1,651 million across 43 deals, while Manufacturing attracted $1,598 across 37 transactions. Engineering & Construction companies and Food & Beverages companies also attracted special investor attention during 2011.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
 

Tuesday, April 16, 2013

B&E Indicators

Choppy commodity markets

On the back of global concerns about demand and appreciation in exchange rates, non-energy commodities have registered an approximate decline of 7.6% yoy in October 2011. Due to a decline in global industrial production, metals were the worst hit. Improving supplies also led to fall in prices of agricultural commodities. Crude prices dipped below $100/bbl due to slow demand but light/sweet crude and distillate markets will be tight in the upcoming peak winter.

Flourishing agri-supplies


A more robust supply scenario is leading to a fall in prices of agricultural commodities., led by raw materials like rubber and cotton. Most commodities have registered bumper crops like coffee (Brazil & Vietnam), fats & oils (Malaysia & South America) and wheat (increasing production in Australia, Canada, Russia and the Ukraine & Argentina). But uncertainties still remain about the longevity of this scenario.


Source : IIPM Editorial, 2012.
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
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

Monday, April 15, 2013

Laying the ground for a second coming

After years of struggling with its CDMA technology in India, Qualcomm is looking for business avenues in the smartphone space. However, its real potential seems to lie elsewhere.

The Indian telecom industry has been witnessing an unprecedented fall in subscriber additions of late. For the last 4 months, the net additions have been less than 10 million every month and still descending on monthly basis; taking the total to 611.75 million by August 2011 (COAI). However, low cost handset makers are getting upbeat about revolutionising the 2nd largest telecom market in the world even after over half of it is taken.

Riding on the wave created by Google’s free operating system Android, which surpassed Nokia’s outdated operating system Symbian in 2010, even chipset manufacturing companies like Qualcomm are eager to have their share of the pie in Android’s feast, which is all set to cross 49% market share by 2012 (Gartner). The worldwide smartphone market is expected to grow by more than 55% yoy in 2011 and around 472 million phones will be shipped through the year. It is projected that shipments will reach 982 million by 2015 with Apple’s iPhones & Samsung’s Galaxys leading the segment currently.

Many OEMs naturally believe in the low cost handset market for an emerging market like India. Qualcomm CEO Paul Jacobs shares the view. After facing significant reversals in India due to the far lower success rate of CDMA services, due to which even its largest customer RCom switched a few years back to a dual service portfolio, Qualcomm is looking to make amends. In 1990, Qualcomm pioneered the designing of CDMA-based cellular base stations, which has been its forte. Being the OEM of mobile phone chipsets, (Qualcomm CDMA technologies contributed 61% of its revenues in FY 2010), Qualcomm was once able to derive huge royalties from the companies it served with CDMA (globally, LG and Samsung contributed over 10% each in the same period). But India is very low in contrbution despite significant investments by the company.

The San Diego-based company’s strategy is to leverage the expanding availability of 3G services (as its core competency is producing 3G compatible chipsets) and after successfully tapping the biggest handset market of the world (China accounted for 29% of Qualcomm’s revenues of $10.99 billion for the year ending September 2010), the company has now decided to follow the footsteps of its Chinese competitors and bring out a sub-$100 phone with a Qualcomm chip in order to cater to the needs of the price sensitive yet feature conscious Indian market. Huawei and ZTE have already launched Qualcomm chip powered Android handsets in that range in China.


Source : IIPM Editorial, 2012.
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
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

Saturday, April 13, 2013

A case of going broke?

With market volatility making life difficult for equity-driven brokerage houses, the players are scouting for newer, innovative tools. But have their efforts really paid off?

Biologists have applied game theory to explain genetic mutations. Legal arbitrators have used it to understand negotiations. And brokerage houses are fast mastering it to muscle out competition with every means possible. For these brokerage outfits, it is an age where profits talk, survival of the fittest is the style of living, and constant evolution of their model is a necessary deed. But at what cost?

With the market continuing to misbehave, many broking houses that had mushroomed during the great financial markets boom (2004 to 2007) find themselves in a soup. As many as 48 firms were even forced to surrender or shut shops on NSE & BSE between July 2010 and June 2011. And for the lot of 1,800-odd that continue to breathe, most (predominantly dependent on equity broking) are struggling due to the continuous fall in revenue, which during the past two years has been as killing as a 25% drop on a q-o-q basis. This has left them figuring out: “what next?”

On the surface, the situation may not look as bad, because turnover (equivalent to the total values of deals conducted – both institutional & retail) of the domestic equity brokerage industry did grow by 46% in FY2010-11 to touch Rs.339 trillion ($7.48 trillion; as per ICRA). But a look at the particulars give wrinkles to well-wishers. 86% of the turnover during FY2010-11 was contributed by the low-margin derivatives segment (average broking yield of 3-5 basis points). On the other hand, the contribution of the lucrative cash segment (yield of 10-12 bps) continued to decline. As per ICRA, between Q2, FY10 and Q4, FY11, the average daily trading volumes (on BSE & NSE) in the cash segment fell by a high 33% to Rs.161.15 billion. This implied a fall in the share of the cash segment at the exchanges from 26% in Q2, FY10 to just 10% in Q4, FY11. This change in trading mix, coupled with sustained high competition that triggered a price war in a highly fragmented market, dragged down average rate of commission to 0.15% from 0.4%, ensuring a 1 bps fall in brokerage yield y-o-y to the sub-4bps levels in FY2011. In FY2010, the average daily turnover (ADTO) of emerging segments like options and commodities – which were once imagined to fuel growth – grew at 127% and 110% respectively. [Currently the ADTO of commodities is Rs.460 billion, with a broking yield of 1-2 bps or lower.] Another fast-growing segment is called currency trading (in which trading in India started in September 2008 and today, the ADTO is at Rs.450 billion with broking yield between 0.6 to 0.8 bps). These three tools appear attractive, but have not worked in the name of diversification. Reason: ultra-low yields.

Another not-so-successful attempt – in recent years, to create a diversified revenue stream, brokerage houses have ventured into capital market related funding activities. But while this move was expected to earn them money in a sunbathing mode, the outcome has been quite the contrary. The capital market financing book (which consists of margin funding, loan against shares & promoter funding) of 19 large brokerage outfits (tracked by ICRA; which has increased to over Rs.160 billion by March 2011 from Rs.120 billion in March 2010), has taken a beating due to a constant rise in cost of funding (courtesy: RBI’s rate hikes), and the failure to pass on the cost to the clients. Result: return on equity invested for the financing business is down from 15% to 12% (and even this is sans the operating expenses & credit costs).


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 

Tuesday, March 12, 2013

She’s Not Yet a Woman To Me

Is Your Child Growing up Too Fast? Check in Time So That ‘Too Much, Too Young’ Doesn’t Leave you with 'Too Little, Too Late'...

Lolita was a literary marvel or a sleaze roll, depending on how you look at it. In any case, whether inside Nabokov’s classic, or outside of it, sexually precocious children are a discomfiting idea to most of us, except maybe wannabe reality-show makers who would stop at nothing.

Sexual precocity is just one of the fallouts to be imagined in tandem with the surging global trend of children attaining early puberty. As if the unbridled consumerism of our times wasn’t already blurring the lines between childhood, adolescence and adulthood, there comes the distressing and confusing, er, period of puberty for children. While 9 to 13 years is considered the normal bracket for pubertal development – a sequence of physical changes – to start, imagine getting pregnant at 10! A girl in Jerez, Spain, all of 10 years, accomplished just that and gave birth to a baby girl last month, at an age when most others like her are only expecting siblings.

It is tempting to get into the moral and legal propriety of consensual sex between minors – the father is a boy of 13 – but choosing to restrict the discussion to its biological complications, we wonder what it is to be burdened with maternity at such a tender age. Dr. Nikita Trehan, Gynaecologist and Laparoscopic Surgeon, says, “It is a very bad idea, since bone development isn’t complete in young mothers. In addition, the mother and fetus will be competing for nutrients during pregnancy. The risk of stillbirths and other health-related problems with the baby increase too.”


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

Saturday, February 09, 2013

BP (ERSTWHILE BRITISH PETROLEUM): GULF OF MEXICO OIL SPILL DISASTER

B&E’s Steven Philip Warner talks to various global oil & climate experts from the likes of Goldman Sachs, Credit Suisse, Standard & Poor’s, Argus Research, JBC Energy & Varda Group to find out what awaits BP’s fate? Will BP, which as recently as two months back was the second most valued oil major in the world, disappear?

He still does. And the main one comes in the name of the bill on the clean-up and litigation, which bears the potential to dent huge holes in BP’s pocket. After setting-up a relief fund of $20 billion, in cooperation with the Fed, many experts are forecasting future outflows that could create suicidal pressures on BP’s bottomlines. London-based Kim Fustier, Global Oil & Gas Analyst, Credit Suisse tells B&E, “These total to $28 billion, $35 billion and $49 billion post-tax respectively. We have cut the FY2010-11 EPS outlook for BP by 13% on average to reflect higher clean-up costs and a higher cost of debt. We have cut two quarters of dividends in the second and the third quarter.” BP also has total committed acquisitions amounting to $8.9 billion (as of mid-April 2010), which will further reduce heavily its surplus cash balances, which stood at $5.3 billion, as at the end of March 2010. There is some relief in the form of committed undrawn credit lines amounting to $5.25 billion, however, most of this will fructify only in late 2011 and 2013.

Till date, BP has spent $1.70 billion in the clean-up act; the liabilities are scheduled to touch $6.44 billion for 2010 and $7.08 billion for 2011 (estimates by Credit Suisse). At current oil price levels and debt-equity ratio of the company ($77 per barrel and 30.8% respectively, as on June 22, 2010), the company can afford to pay up anywhere between $6–$7 billion, without disturbing its balance sheet. In defense of BP’s financial competence, Michele della Vigna, Energy Analyst of Goldman Sachs tells B&E, “BP’s cash balances, operating cash flow generation, and bank lines should collectively be sufficient to meet liquidity needs. BP’s near-term financing needs are covered by committed bank lines of more than $10 billion, which would likely obviate the need for BP to turn to the capital markets at a time of stress.” Sounds like the BP ship is prepared for the next iceberg.

But clear and present hope for Hayward’s big oil ship is like spotting a Rolls Royce in Charlotte’s poor suburbs in Northern Carolina. If oil prices fall even slightly below the $70 billion mark, and if BP maintains its current debt-equity ratio, then it can pay up nothing more than $5 billion per year, without raising more capital. In that case, it will either have to opt for higher debt or equity dilution, and in the worst case – sale of assets.


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

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

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

IIPM Links
IIPM : The B-School with a Human Fac

Monday, January 14, 2013

Outliers!

Then, if Gladwell’s10,000 hour rule is about practicing one specific task for a considerable amount of time, does the corollary mean that companies that are focused on core businesses (focusing on limited specialized tasks) would perform better than diversified companies? Were C.K. Prahalad and Gary Hamel right all along? In December 2006, Heuskel, Fechtel and Beckmann of the Boston Consulting Group, in a massive global study covering hundreds of global corporations from 1996 till 2005, proved that shareholder returns of diversified companies beat both the stock market average and the shareholder wealth average of the majority of the core focused corporations. BCG writes that “there is no statistical correlation between (core) ‘focus’ and shareholder value.” When we analyse the B&E Power 100 listings this year on this parameter, we were in for a shock. Giving BCG a flyby, of the 100 companies we had, only one is truly diversified. 99 other companies focus on singular or very narrow streams of businesses. Even when we consider groups/promoters (e.g. Tatas, Birlas, Reliance) who own cross holdings in various companies, we could only reach 16 companies that belonged to diversified groups.

Out of 16 listed industries, a majority of our companies (61 of the B&E Power 100) belong to only four industries – financial services (30), metals and mining (11), oil and gas (10), real estate (10). Out of the same 16 sectors, only 3 have positive profits growth year on year – financial services (30%), information technology (12.9%) and FMCG (9.75%). All others have negative growth in profits, with oil and gas (-20.8%), pharmaceuticals (-32%) and real estate (-44%), killing the profits growth of the overall B&E Power 100, which stands at a measly 3.3% year on year.


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

For More IIPM Info, Visit below mentioned IIPM articles.

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

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

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

Thursday, January 10, 2013

“No schemes! No gimmicks!!”

LG finally had it right the third time in india. now it is decisively upping the stakes

B&E: What factors have worked for you in India?

VT:
We have been in the Indian market for 14 years now, and believe that our foresight and belief in the country and commitment to the telecom market, along with work with the government have helped grow the telecom industry. Nokia devices today straddle a comprehensive range of products at every price point for all segments. India is not only its second largest market globally, but is also one of the only three countries, where Nokia has an end-to-end presence, including a manufacturing unit, R&D centres and over 10,000 employees.

B&E: What strategy did you adopt in the initial days to help you penetrate the Indian market?

VT:
Nokia had a holistic approach towards developing the market and growing its consumer base. Our strategy has hence been focused on investing before time, understanding different consumer needs, building a strong product portfolio that caters to all segments of the market and making our products and services relevant to the Indian market. We were the first to invest in setting up a robust distribution network, to understand the potential of having an effective after sales network. Today, our reach and scale is amongst the best in consumer durable industry, let alone handset industry.


Source : IIPM Editorial, 2012.
An Initiative of IIPMMalay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles.