IIPM- News Articles: IIPM Think Tank

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Thursday, June 06, 2013

The Curious Case of Imran Khan

Years ago when Imran Khan decided to join the political fray in Pakistan, he acted and sounded like a novice. More like a starry eyed teenager eager to please everyone than a seasoned cynical politico who knows the nuances of the game. Almost two decades later now, he has barely changed. But the political contours of Pakistan have. And that is why, just days before the historic general elections in Pakistan, Imran Khan has turned relevant, and uncomfortably so.

While the jury is still out whether Imran Khan and his PTI will manage to win the election or at least do well, what is certain that he will not remain at the sidelines as he was in the previous polls. In a nation where frenzies are whipped as easily as it can be, Imran Khan indeed expanded his base after years of dedication. The so called Imran Khan Tsunami that people are talking these days started with barely registered ripples in Pakistan’s otherwise volatile political water.

So, what has made Imran Khan so relevant? The answer is, changing times and demography. Asif Ali Zardari’s PPP indeed became part of the history by becoming the only elected government in Pakistan to complete its term. However, apart from that, it has pretty little to show or talk about. Its five years tenure has been marred by an economic freefall, spate of bombings and suicide attacks, energy crisis and more. Meanwhile, a whole new lot of youngsters have blotted the electoral rolls. This new, urbane and upwardly mobile, group has decidedly different aspiration from its preceding generations. But like most of the other places in the world, this generation is also dangerously apolitical, and proud about it. For such a generation, Imran Khan came as an obvious choice.

A man with the supposed magic-wand. A man who dwells on the surface of a problem and refuse to probe deeper. A man who gives simple (or rather simpleton) solutions to complex problems. In short, suitably suited for this generation.

For example, while he is a vociferous opponent of Drone attacks in Pakistan, he is clueless about what alternative options can Pakistan choose to replace this. Or, while he is a great advocate of dialogue with Taliban, he fails to mention how previous attempts to engage them in dialogue have only given them time to regroup and strengthen their position. Every uneasy answer is buried. No surprise that he caught the fancy of this generation.

But that is not to say that Imran Khan is merely a construct of circumstances. To insinuate that would be callous. If Imran Khan has made himself relevant in the ethnicity ridden South Asian politics, it says a lot about the man’s character.

“As such, Khan is a departure from leaders who hail from political dynasties, such as the Bhuttos or the Sharifs, and boast immense rural landholdings. Since the PTI boycotted the 2008 general elections and has no representation in parliament, the party's record is also clean. Khan is thus better positioned than the PML-N to denounce the corrupt practices of "Mr. Ten Percent," as Pakistan's President and co-chairman of the ruling Pakistan People’s Party (PPP) Asif Ali Zardari is widely known,” says noted Pakistani political commentator, Huma Yusuf.

Your correspondent had a chance to see his impact in Karachi, a city that epitomises ethnic fissures in Pakistan. In a city where voters have traditionally voted either for MQM, ANP or PPP depending on whether they are ethnic Urdu speakers, Pashtuns or Sindhi, and where voting away from the ethnic line is considered even worse than betrayal, Imran Khan has attracted votes across ethnicity. Although he is still expected to bag more of Pashtun votes than those of Mohajirs, it is no surprise that he has made a mentionable dent in both ANP as well as MQM’s vote.

It is because the issues he raises are of national and international importance and affect average Pakistanis in more ways than one. Take for example his opposition to America’s involvement in Pakistan in particular and the region in general.

“Anti-American rhetoric is common among Islamist hard-liners and religious party leaders, but Khan’s urbane appeal as a former cricketer who won international acclaim means he can reach a wider, less religious audience and position himself as the acceptable face of anti-Americanism,” says Badar Alam, editor of Pakistan’s Herald Magazine. “When mullahs talk, people don't stop to listen. "But when a Western educated clean-shaven man does the same, it does suit them.”

Also, compared to both Zardari and Nawaz Sharif, Imran Khan can actually brag his selflessness. For example when Parvez Musharraf asked him to become the Prime Minister of Pakistan, he promptly refused. It was a rare gesture in a region where seasoned statesmen have been known to become Prime Minister for as less as 13 days even when it was clear to them that they will not be able to gather the requisite numbers to survive.

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

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

BBA Management Education

Friday, May 31, 2013

1951 & 1986:The Blunder Years

How the inherently secular Nehru and Rajiv Gandhi succumbed to regressive forces. And India still pays the price, says Sutanu Guru

Every which way you look, the curse of identity politics and victim-hood is becoming even more rampant and poisonous in 21st century India. Literacy keeps growing, as does intolerance and prejudice towards other identities. The more we are integrating with the world, the more insular we seem to be becoming. The more we see of social and economic mobility, the more we see regressive behaviour based on faith and identity rather than reason and common sense. Says Naved Hameed, General Secretary, Movement for Empowerment of Muslims, “To be honest, communalism never ended in this country, though there is no doubt that there has been a lot of talk to end communalism at various levels. The Indian society and system is totally biased against Muslims and Dalits in particular”. For all you know, there might be an organisation called Movement for Empowerment of Hindus and its General Secretary will be as candid as Hamid. The only difference will be that he will say that Hindus are discriminated against in their own country because of vote bank politics.

How did things come to such a sorry pass in India? How did secularism become an empty slogan and a term that everybody twists to score ideological points? Quite obviously, the principal blame lies with prejudiced Hindus and Muslims who seem to value faith more than national identity and pride. It is people like Akbaruddin Owaisi and Praveen Togadia who are responsible for spreading prejudice and hatred. But that is stating the obvious. The question to ask is: what caused people like Owaisi and Togadia to rise in prominence after India became an independent country?

If you ignore pop analysis of the instant kind and do some serious historical soul searching, the past does provide some clues for the fragmented identity polity of contemporary times. You could even call it counter history since some icons appear in the firing line. In India, it is very hazardous now to point fingers at icons. Libraries are burnt down if there is even academic analysis of the great Shivaji. Dalits activists throw shoes and more at people who criticise BR Ambedkar.

People take to the streets and indulge in violence if someone targets the Dravidian icon Anna. Fawning Congressmen react angrily and aggressively if there is any criticism of the Nehru-Gandhi family. The list is now becoming longer and longer. And yet the behaviour of some icons do need to be examined and some deeply held beliefs must be reexamined if we are serious about the reasons behind the rise and rise of malevolent identity politics.

The headline of this feature talks about 1951 and 1986 to be the blunder years. It is events and decisions during these two years that have played a very large role in not only encouraging identity politics, but also creating communal divides. This historical blotch is sad enough. Even more sad is the fact that the blunders were committed by leaders who were enormously popular and virtually unchallenged in their sway over popular sentiments when they took the fateful decisions. We are talking about Jawaharlal Nehru in 1951 and his grandson Rajiv Gandhi in 1986.

Readers with even rudimentary knowledge of history will know that soon after independence, a Constituent Assembly was created to create a new Constitution of India. Even as the Assembly debated and argued over the future of India, Jawaharlal Nehru as prime minister coped as well as he could in leading a country ravaged by partition and communal bloodbath. History buffs will also know that Nehru, though immensely popular, was not unchallenged. Sardar Vallabhbhai Patel was an equally towering leader and not always in agreement with Nehru's world view and ideology. In 1950, Patel died and Nehru was, in a manner of speaking, the undisputed king. Meanwhile, the Constitution had been drafted and one of the lofty promises made in that document was to have a Uniform Civil Code for all citizens. Dr BR Ambedkar was the Union Law Minister and was aggressively pushing for that. Apprehensive that Muslims might feel insecure and think that their religious identity was being threatened, Nehru and a reluctant Ambedkar decided to first pass a modern civil code for the Hindu community. Quite obviously, right wing Hindu groups were violently opposed to the idea. It was also an open secret that India's first President Dr Rajendra Prasad was not very excited about the idea. He did write to Nehru expressing his unhappiness with the proposed civil code for Hindus.

Let's quote a few lines from India After Gandhi written by Ramchandra Guha, believed by many to be a definitive history of post Independence India: “Nehru chose not to challenge the President. In any case, the progress of the bill in the Provisional Parliament had been painfully slow...In the end, the session ended, the bill was virtually talked out and it lapsed. The man who was most hurt by this was the Law Minister Dr Ambedkar who had staked his reputation on the bill, meeting criticism and calumny with equal resolution. That Nehru had finally chosen to give in to the opposition pained him deeply. In October, 1951, he resigned from the Union Cabinet”.

Do remember, India was yet to conduct its first Lok Sabha elections that happened in 1952. As mentioned earlier, Nehru had virtually unquestioned authority as well as popularity. There are many who feel that it was only Nehru who had the stature and hold over public opinion to pass not just a civil code for Hindus, but a uniform civil code for the entire country as committed by the Constitution. Many scholars and analysts think that this one decision taken by Nehru, though hardly ever talked about, had repercussions whose effects are still being felt.

“The driving force behind Baba Saheb's insistence on passing the Hindu Code Bill was emancipation of women. But the Caste Hindus, including women, who deemed this move as an endeavour to attack the sanctity of Hinduism opposed this radical bill. In his robust defense to this Bill, Dr Ambedkar maintained that the ideals enshrined in it were derived from the Constitution of India, which is founded on liberty, equality and fraternity. Dr Ambedkar was so fed up with the opposition that he left Nehru's cabinet. He said, “It (the Hindu Code Bill) was killed and buried, unwept and unsung”. Dr Ambedkar's influence on women is still overt particularly in the Maharashtrian Buddhist women, who are not only empowered but frequently take apart the mainstream Feminist movement as the Brahmin Women Movement. “The repercussions of that failure still resonates,” says Ratnesh Katulkar who is an Ambedkarite activist and scholar at Dr Babasaheb Ambedkar National Institute of Social Sciences.

Read more.....

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

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

BBA Management Education

Monday, May 27, 2013

Ad hoc raj

India's border roads are in a shambles in contrast to China's aggressive infrastructural engagement on the eastern front, reports Mayank Singh

The key to sound military infrastructure are roads and if for some reason, or a couple of reasons, they become a low-priority subject for defence planners, then the basic movement of troops is likely to be affected when they are required the most. Bad or non-motorable roads, as the 1962 China debacle revealed, failed to facilitate faster troop movement, equipment mobilisation and deployment in the forward areas of the then North Eastern Frontier Agency (NEFA).

Five decades down the line, the same handicaps dominate the same topography – India’s eastern border against China's military might. Even as China has assiduously built military infrastructure along the 4,056-km Line of Actual Control (LoAC) in the three sectors – Ladakh, Uttarakhand and Himachal Pradesh and Sikkim/Arunachal sectors – the Border Roads Organisation (BRO), the country’s premier defence road construction agency is in shambles, thanks to red tape, infighting and political apathy.

The paralysis in BRO is viewed gravely by defence analysts and military experts who have raised the spectre of low-level border infrastructure coming in the way of the country’s defences. Experts paint a sordid picture: there is high level of frustration and discontent in BRO as projects have been delayed and costs overrun are the rule, rather than exception. Insiders say the future of 72 strategic roads in critical border areas hang in balance and construction work has slowed down.

The BRO is split into 18 projects, each headed by a Chief Engineer or a Brigadier-level officer from the army. Of them, General Reserve Engineering Force (GREF) officers head only five – the rest is with the army. So in terms of experience and technical qualifications, both GREF and the army stand as equals – at least in theory.

Problems begin right at the top. Nearly 52 years after it was set up, no recruitment rules for the post of the Director General Border Roads (DGBR) has been made. Former DGs of the BRO, most of them army officers, accept that there is no restriction on a civilian heading the organisation. The delay in appointing heads then would seem inexplicable.

In such circumstances, operations are a major casualty. There is acute shortage of officers at the levels of Assistant Executive Engineers and Executive Engineers which are dominated by serving officers from the army. The AV Singh Committee, set up by the Ministry of Defence in 2008, was designed to improve career mobility by bringing down the age profile of commanding officers and improve professional prospects. But a cursory look at the sanctioned strength and the number of personnel posted in BRO would reveal scarcity at operational posts.

Significantly, an Indian Army grappling with its own problem of scarcity of officers, has kept the posts pending.

The BRO is a combined civil-military project. Its authorised strength comes from army, the salary is paid for from the budget of the Ministry of Road Transport and Highways (MoRTH) and the DG BRO, for instance, figures on the official list of MoRTH and is the main interface between the BRO and other ministries.

When it came to hiking salaries during the Sixth Pay Commission, armed forces had justifiably put up their case strongly. But when it came to GREF, there were double standards. Their request to have one of its officials to represent their point of view was conveniently overlooked.

There are other issues like Separated Family Accommodation (SFA) and allowances. Army officers posted in remote and tough conditions are given SFAs along with various allowances, but GREF officers in similar situations have to make do with their own arrangements. Experts say there have to be ways and means to evolve a mechanism so that there is a sense of parity in the difficult job at hand. For instance, the high mortality rate of the BRO personnel is a clear indication of the hazards they face. (See box)

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

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

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

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

BBA Management Education

Friday, May 03, 2013

This one's for you Lance

The charges levied against Armstrong are devoid of substantive proof, and he must seek legal recourse

“I have never doped. These charges are baseless and motivated by spite,” is the response from Lance Armstrong, seven times winner of Tour de France, the prestigious cycling competition, countering charges levelled against him by the doping monitoring body, USADA, which has also stripped him of all titles and honors and banned him from competing in the future. USADA claims that Lance Armstrong has been cheating the cycling fraternity since 1996, and also claims that blood samples collected from him in 2009 and 2010 are fully consistent with their claim. What one is perplexed about is why USADA was silent for so long, if they had found the blood sample manipulation long back in 2009? Also, USADA’s assertion of Armstrong’s guilt from the 1990s lacks substantive proof.

Lance Armstrong has pointed fingers against USADA’s CEO, Travis Tygart, and has termed this as a ploy for vendetta and dismissed it as being sans merit. The Armstrong’s defense is neat and solid: he has been accused of doping for 16 years, yet in over 500 drug tests conducted to him, he failed in none.

Support is pouring in towards Armstrong – from his ex-coach Johan Bruyneel, his sponsor Nike and even from his competitors like Alberto Contador. UCI (the Tour de France organiser) has now revealed that USADA has even failed to hand over the so-called “evidence file” to UCI despite various reminders.

Read more....

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

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

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

Thursday, April 04, 2013

B&E This Fortnight

INTERNATIONAL
BUSINESS, ECONOMY & FINANCE
Hello moto!

In a move that will instigate its full fledged entry into the telecommunications hardware business, the global search giant Google is set to buy Motorola Mobility for a staggering $12.5 billion. If approved, this will be Google’s most expensive acquisition ever. The deal will boost Google’s mobile OS – Android. Since its launch in 2007, Android has been installed in 150 million devices. Further, more than 550,000 devices join the Android ecosystem daily through a wide network of 39 manufacturers and 231 carriers spread over 123 countries. It’s an all cash deal where in Google will be paying $40 a share – a 63% premium. The deal will put Google in the competition zone with Apple, Nokia and Research in Motion, resulting in significant competitive advantage. The deal is supposed to close by end of this year or early 2012 subject to regulatory approvals in the US and EU. Even after the deal, the Android platform will remain open source as Google plans to operate Motorola Mobility as a separate business entity. The mobile major currently holds around 17,000 patents and the deal will enable Google to better protect Android from anti-competitive attacks from Microsoft, Apple, and other companies. The development will create phenomenal synergies that would enhance the Android ecosystem.

AIG sues BofA
American International Group (AIG) has filed a $10.5 billion lawsuit against Bank Of America (BofA) over the sale of residential mortgage backed securities that are allegedly marred by fraud, misrepresentation and omission. The claim, which is one of the largest to raise its head in the aftermath of the 2008 financial crisis, blames BofA and its subsidiaries to have issued defective mortgages to borrowers who were not in position to repay, packaged them into supposedly low risk securities and sold $28 billion worth to AIG using offering documents that misrepresented the quality of the loans. Despite the huge losses incurred from the collapse of the mortgage market, very few claims have been filed over the past three years. Last year, Goldman Sachs paid $550 million to settle allegations from Securities and Exchange Commission (SEC) for its alleged fraud in marketing of mortgage backed securities called Abacus, which the company did not admit doing.

Read more.....

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

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)

Monday, March 04, 2013

FORD INDIA: VANTAGE POINT

From a company that was normally counted as an interesting niche player in India, Ford has suddenly become the flavour of the season with the Figo. Our editorial team member walks through Ford one fine lazy afternoon and gives ‘the scoop’ by Sanchit Verma

He proved to be right on the money, as the Figo has changed the entire status quo for the company in just about three months. Thanks to Figo, Ford now stands about neck-to-neck with GM (19,964 units) in the compact car segment with sales of 18,495 units in the April-June period (compared to just 221 units last year). The first ever compact car by Ford India sold more than 17,000 Figos and over 24,000 purchase orders in place already and that's within its first 16 weeks in the market. In fact, advance bookings are touching the 6,000 figure, which creates a different set of problems for the company. Figo's fuel efficiency and highly competitive price have given Ford the momentum it needs to potentially disrupt the market dynamics in the automotive sector. Great start. But as the Honda tagline goes (changed to my choice): Why so late? It must be my imagination, but I can almost feel a bubbly new-found energy on this visit to the Ford plant. A senior worker tells me that the plant is based on the One Ford strategy initiated by Mulally, which is aimed at better use of common Ford design platforms globally and greater integration of production & purchase teams. I nod away; I’ve read it somewhere already.

"The engine plant was created with a 'best of the best' approach," says Michael Boneham, President & MD, Ford India, when he meets me. He seems a picture of exuberance and optimism – competitors tell me that that’s been the case since the success of the Figo (but again, read his interview to me in the latter section of this story). As I walk through the stamping, body and paint shop, I get a better view of the all new revamping being done to transform a manual assembly hub into a globally standardised and technologically advanced manufacturing hub, which will have over 4,000 employees working in-and-out. Along with them, a team of 92 robots (imported from Korea) also work round the clock to achieve production efficiency and quality paint jobs with high degrees of accuracy and quality, applying the new three-step wet solid paint and giving the glossy finish. The plant is poised for big volumes as it has doubled its capacity since renovation. As I move on, I come across the flexible assembly line, which assembles both of the 1.4 litre diesel and 1.2 litre petrol engines. I reach the TCF part where the interiors, chassis, engines and wheels are fitted, before it passes onto quality testing. Here it passes environment tests as per emissions norms – I look and marvel at the car as it is rolled out, giving out an impression of being an advanced engineering graduate; I’m not, but what the heck.

I’m told Ford has finally gone the way of localisation to reduce total cost of ownership. Add to this the investment, led by Ford Motor Company, in Figo – and the combination is apparently winning. It has led Ford India to take a new route and has given it capital leverage to rapidly build up a dealership network. Ford has a current network of 166 dealers, which it plans to expand to 200 by the end of this year. On a competitive basis, Indian consumers are known to be very particular about ease of serviceability – at least my dad is – and this gives brands like Hyundai and Maruti an exceptional advantage. If Ford manages the same, it would potentially be a good push for their up-market portfolio too.

Read more....

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

For More IIPM Info, Visit below mentioned IIPM articles.

Tuesday, February 05, 2013

Reserve or reverse, it’s his choice; really!

low growth or inflation; it was a tough choice to be made by the RBI Governor. The problem is, despite a quarterly review of the Monetary Policy, he’s still to make the choice, says Manish K. Pandey

It was quite a spectacle on the morning of January 29, 2010, at the RBI headquarters in Mumbai, when a seemingly nervous Duvvuri Subbarao, Governor, Reserve Bank of India (RBI), read out the third quarter review of Monetary Policy 2009-10 in a rather ‘ill-at-ease’ fashion. And why wouldn’t he be? After all, he had a daunting task at hand – to tame price instability without jeopardizing the country’s economic growth. So how did he go about playing with the numbers? While he hiked the cash reserve ratio (CRR) of banks to 5.75% from 5% (this was higher than market expectations of a 50 bps hike on the CRR), he left the repo, reverse repo and bank rates unchanged at 4.75%, 3.25% and 6% respectively. So were these changes enough to guarantee an accomplishment of some sorts?

If one looks at the overnight money market rates, they have remained close to the lower band (3.25%) of the liquidity adjustment facility (LAF) for months now, thereby reflecting the huge liquidity bulge. In fact, the banking system has been depositing over Rs.1 trillion on a daily basis under the LAF window during the current fiscal. Considering this, the two-phased hike in CRR (a 50 bps increase on February 13 & the remaining 25 bps increase on February 27), which is expected to squeeze out Rs.360 billion of liquidity from the system, is certainly not going to make much of a difference to the ongoing supply-demand imbalance. Further on, an immediate hike in interest rates is also an unlikely phenomenon (most bankers have already pointed this out). So the moot question is whether Subbarao has given the right twist to the numbers or not.

Explaining his choice of adjusting the CRR than the interest rates, Subbarao says, “If we had used interest rates, it would mean that the amount of liquidity we would have absorbed would have been more unpredictable.” True, but, was there really a need to tamper with any of them? More dangerously, by increasing CRR, hasn’t RBI made both inflation and growth more unpredictable? In fact, RBI has raised both its growth and inflation forecasts. While on one hand, it raised its end-March WPI inflation target to 8.5% from 6.5% earlier, the GDP growth forecast for FY2010 has been raised to 7.5% from 6%!

Read more....

Wednesday, January 09, 2013

3 Tenets: Navigating change for growth

As consumerism further evolves, companies need to look at different ways to innovate and stay relevant

Gone are days when superior quality of product or being the best of breed was a sufficient barrier to entry and protect market leader positions. Nowadays, there is increased reliance on the softer aspects of business such as building brand awareness/ brand loyalty through marketing communications strategies, establishing strategic partnerships, keeping product features fresh, new and relevant; all while leveraging innovative platforms such as social media.

In these modern times of technology, rapid gratification and labour market mobility, organisational change is a way of life. This change could mean any number of things from shifting organisational culture, to operational processes to strategic directions. One needs to learn to expect it, and plan for it. Microsoft has created a plethora of great examples for dwindling companies that did not prepare for change. Lotus 1-2-3, WordPerfect were all at the top of their game when a little known company called Microsoft entered the market with Windows/Office. These companies underestimated the competitive landscape and now they are struggling relics of the information age. Much as this is true for large businesses, it is also true for small businesses as information savvy consumers will now gravitate towards competitors who are able to offer the best value for money and/or a differentiated buying experience. In order to protect your financial bottom-line, you need to be able to understand the rhythm of your market, separate out the urgent from the important, and build in enough flexibility into your system to be able to change with market needs.

360° Vision
I love the quote, “Without a destination, it is difficult to know which road to take.” When you know what to change, putting the ball in motion becomes the easier part. Some of your change will be a result of internal growing pains e.g. evolution of your product and story, and some of it will have to be driven by your competitors. There has been an explosion in small business growth as, in addition to the traditional groups, several laid off workers have struck out on their own. It is becoming a busy, and noisy, marketplace. With consumer knowledge at an incline, it is imperative to understand competitive positioning so that you can react and change direction when needed. Monitoring competitors’ pricing, product features, sales strategies and anticipated strategic directions are key in prioritising areas of change.

Empowered Organisation
If there is one thing you need to instill in your organisation’s work habit, it is the ability to separate the urgent from the important. Business execution and putting out daily fires is necessary but not sufficient. In doing so, you are probably inhibiting your growth as it becomes difficult to anticipate opportunities, let alone prepare for it. If need be, enable the appropriate employees to take on the lower priority tasks while you shepherd the strategic direction for your company. This means establishing well-understood processes that give employees some degree of freedom to make responsible decisions. Their solution may not be your first pick, but ask yourself, ‘does it get the work done?’ And if so, move on. This sense of ownership of problems will bring efficiency of epic proportions, and will help build a workforce ready to react.

Read more.....

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

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

Saturday, January 05, 2013

Say it in SEYCHELLES...

Celebrate life, make each day a holiday; At Seychelles, romance rules the mind and the thoughts, making you feel like an integral part of the entire romantic aura that surrounds the most beautiful archipelago in the world. Seychelles is a wonder of Mother Nature, a compilation of 115 exquisite white sand islands scattered in the Indian Ocean. Harmony, tranquility and serendipity being a way of life here, welcome to a holiday of a lifetime! At Seychelles, the two most famous islands are Mahe and Praslin, the former being home to the capital of Seychelles, Victoria. It has some of the most exotic beaches where one could fall in love all over again. It’s the perfect destination for a honeymoon or an anniversary; If you’re single then there’s nothing that would stop you from discovering the true romantic within you. Seychelles is a wonderland, specially created by God, where everything is conducive to love. Mahe boasts of around 65 picturesque beaches and some lush hills. Hire a convertible and set out for a long drive in the hills on the Sans Souci road, feeling the temperature gradually cooling as you meander in the mountains on a road that offers the most amazing view of west Mahe. View the tea plantations and take a mental picture of one of world’s most beautiful landscapes ever. From the bird’s eye view as you descend back to exquisite beaches and bays like Anse a La Mouche, a great place for a refreshing dip, feel the cool air blowing through your hair and open all your senses as you take in every bit of this beautiful island.

If you set sail around the wonderful island of Mahe, you would witness the magnanimity and benevolence that nature showered while creating this marvel of an island. Just like in your dreams, if you happen to drift a bit further in your boat, you’ll be lucky to find yourself in another paradise called Praslin. Praslin is the second largest island in Seychelles that is home to the Coco de Mer, an exotic palm which grows mainly in the Vallée de Mai National Park. For those who look for more than mushy, romantic evenings, can keep the candlelit dinners on hold and instead add some zing to their vacation by donning their adventure gear. Sports freaks can dive into the azure waters and pay regards to the exotic aquatic underwater life and can play with the cute and lovable turtles that swarm the shore, after a dip in the irresistible waters.

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

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

Friday, January 04, 2013

Their grass was greener

Two CMs who bravely defied anti-incumbency and emerged trumps in both assembly and Lok Sabha elections

The people of Andhra Pradesh and Orissa seem to be dwelling in a wave of pro-incumbency at the moment. This is obvious seeing how their respective CMs – YSR Reddy and Naveen Patnaik – have had a smooth ride in both the state and assembly elections. In the case of the former, its supporters say that Reddy’s plank to back women empowerment paid rich dividends when it won 156 out of 294 assembly seats and emerged as the largest contributor to the Congress kitty at the centre with 33 out of 42 Lok Sabha seats.

On the other hand, Naveen Patnaik’s party BJD literally conquered Orissa; winning 103 out of 129 seats in the state assembly and 14 out of 21 seats in the Lok Sabha. It is the state’s most comprehensive mandate ever.

In an interview, Patnaik attributed his success to the robust pro-poor agenda that his government initiated. “We had launched several safety-nets for our below the poverty line (BPL) population like the Rs.2 rice scheme, the Gopabandhu pension yojna and housing schemes for the poor known as the Mo Kudia Yojna. People responded to it and appreciated it. We are happy that we succeeded in spreading our irrigation programmes for farmers as well as the paani panchayat systems for the control of water by the farmers.’’

Now he want’s to continue where he left off. A normally reticent Naveen outlined his post-poll priorities, “My first interest is pro-poor programmes, meant for a large tribal and scheduled caste population. We are also keen on irrigation schemes for farmers. We have to generate revenues and job guarantees.’’

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

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

Thursday, January 03, 2013

In the dark...

Burma needs urgent help

More is always less for Myanmar’s military government. And they still have the gall to consider extending the house arrest of world famous leader and 1991 Nobel Peace Prize winner Daw Aung Suu Kyi and gnash their teeth at the international community for meddling in their affairs! As per the latest update, Suu Kyi’s confinement may be extended. The whole drama has come up just days before her five year long house arrest was supposed to end. Apparently, an uninvited American visitor swam to the house where she was placed under house arrest and pleaded that he be allowed to stay for a while as he was exhausted. Suu Kyi allowed him to stay for 2 days, for which charges of violating the house arrest have been pressed on her.

Well, nothing much better can be expected from a government, which has been in power with sheer use of force. While Myanmar has declared elections by early next year, Suu Kyi has clear approval ratings from the people of Burma. But if Suu Kyi’s period of detention is extended, which in all probability would happen, then there is chance that the country would be forced to languish under the military rule for more time.

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

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

Friday, December 07, 2012

The web is where the heart is?!

Link-ups and break-ups… it’s all happening on the Internet.

With easy access to the Internet, it is said that people are coming closer. I’d say that with easy access to the Internet, people are becoming intimate! Activities like sports, music, dancing and painting have been substituted by chatting; and incase you assumed that this cyber addiction was limited to only youngsters, let me tell you that it is not. The reality is that it is not just kids or young adults who are obsessed with on-line friendships and cyber dating. Grown-up adults – including married men and women – are spending a great deal of time on sites like Orkut and Facebook, not just to keep in touch with long lost friends but to forge new relationships… and much more!

Shyla’s parents couldn’t have been more shocked on learning that their daughter wanted to marry a boy whom she hadn’t been dating, but had been chatting with. “How could I ever trust anyone who Shyla had met on-line where the scope of being pretentious is thoroughly explored for the sake of fun? How can one claim to have faith in a person you’ve only chatted with and not met?” squealed Shyla’s mom, while Shyla had a different argument. “I accidentally met Bhagat on-line. He was quite interesting and so we were constantly in touch. After a year of chatting we decided to meet. We continued to stay in touch on-line. Although we had met only thrice in three years, we grew fond of each other. Now, after three years of knowing each other, we have decided to get married”, said Shyla. Due to their unrelenting stand, the families had to meet and eventually, happily agreed with their decision. “On-line dating is a risky affair because there are little chances of one being serious about it. But on the other hand, it gives a huge scope of getting in touch with and meeting different people, especially for those who are looking out for a partner. Frankly speaking, I never trusted on-line relationships but there are always exceptions, like in our case!” exclaimed Bhagat.

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

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

Thursday, December 06, 2012

You’d do ‘Neutron’ Jack proud!

Jobs cuts, during recession become a ‘necessary’ evil; and this is the only quick solution for companies...

The thrice-marrried, former GE CEO, Jack Welch could never find another reason to be happier. Excuse us here; we’re not talking about Jack becoming a father again (he has already celebrated 73 years glorious years on the planet for Chrissake!); but about others preaching the layoff culture at GE, many years after he quit GE (strict reference to his act of firing about 120,000 ‘bottom 10%’ employees). And it is his two ‘action-packed’ decades long terrific tenure at GE that on one hand deserves all the credit for a tub-thumping appreciation of 4,100% in GE’s market value (making it the most valuable company by 2001!) and on the other, seems to have created a model of leadership that fellow-American MNCs and those from the Eurozone & First World have begun to emulate. Yes, we’re talking about the lay-off announcements that were made in the past week; there was GM confirming 2,000 cuts, Caterpillar – 12,000; Pfizer – 19,500; Sprint-Nextel – 8,000; Intel– 6,000; Philips – 6,000; Corus – 5,500; Corning Inc. – 3,500; ING – 7,000; Texas Instruments – 3,500; Home Depot – 7,000; Microsoft – 5,500; Hitachi – 27,000; Ford – 1,200, UAL – 1,000… and the list continues.

Reacting to these announcements, an emotional US President, Barack Obama said, “These are not just numbers on a page... these are working men & women whose families have been disrupted and whose dreams have been put on hold…” Indeed, Obama puts his emotions in good light here, but are not these actions mere rampages sans rationale?

We need to question the very ‘fundamental necessity’ of job-cuts, especially with unemployment rates having grown meteorically from 4.7% in December 2007 to 7.2% in December (a 15-year high!) as per a January 2009 report by IHS Global Insight The report further suggests how during just the last four months, 2 million jobs were slashed – representing 80% of total cut during the current downturn. Worst, the report proves how, we are “just halfway to the total job loss anticipated during this cycle,” thereby forecasting the unemployment rate to rise above 9% by early-2010 (highest in 30 years). Surely, we are on the verge of making some ‘bitterly forgettable’ history!

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

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.