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Source : IIPM Editorial, 2006
An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative
in advance with the launch of Nintendo Wii on November 17. Though, Microsoft ’s Xbox 360 & Sony Entertainment’s Playstation- 3 are already in the market, the launch of Wii is surely going to alter the dynamics of competition in the console gaming industry. While the competition enjoys a considerable lead over Wii, Nintendo is banking upon its base of loyal customers who swear by the motion sensibility of the console. With its motion sensitive controller representing a TV remote, Nintendo is better placed to be the most user friendly gaming console in the market.
s traveller. This season, the occupancy rates (ORs) for premium hotels are well in excess of 75%. The hotel industry is sizzling to the beat of towering numbers generated by a booming economy. Just like occupancy rates, the revenue per available room (RevPAR) spiraled up by 30-45% for the half year ended September 2006 in contrast to the previous year. Average room rates (ARRs) too are witnessing a phenomenal rise. Bangalore witnessed highest ARRs leaving metros like Delhi and Mumbai behind on account of the IT/ITeS wave in the city. If you need a room in the IT capital for one day, you have to shell out in excess of Rs.12,000 per day, a rise of 25% as compared to a year earlier. Chennai and Hyderabad too experienced a swell of 30% in ARRs.
he road to become one of the few foreign asset management companies to own a 100% stake in the Indian mutual fund business, Franklin Templeton Investments has announced that it would buy out the 25% stake held by Hathway Investments of the Rajan Raheja Group of Companies in its joint venture in India – Franklin Templeton Asset Managemet India Private Limited (Franklin Templeton AMC). This acquisition, though, would be subject to regulatory approvals and execution of the agreement. Currently, Deutsche Asset Management Company and Fidelity India Fund Management are the other two wholly foreign AMCs operating in India.
’s bank has brought the sleepy nation to the limelight. Beginning in 1976, Mohammad Yunus’ out-of-the-box experiment with ‘Trust’ not only accrued rich dividends for those constituting the Bottom of the Pyramid in Bangladesh’s economy, but also revolutionised the concept of micro-credit. At present, Grameen Bank caters to the needs of 6.6 million poor Bangladeshis with an annual credit flow of $608 million (2005). Its emphasis on ‘trust’ (especially on women) rather than demand for ‘collateral’, made it accessible to the needy. This poor man’s bank stands at a repayment rate of 96-8%, a figure which is enough to make asset managers of several banks fume with jealousy. A new change is in the making.
pparently Suncorp CEO, John Mulcahy, & Promina Chairman, John Story, share something more than just their first names – a common vision for a better future! It was this common vision that led to the merger of the two Australian financial heavyweights – Suncorp-Metway Limited (Suncorp) & Promina Group Limited (Promina), which was on October 23, 2006. The deal, valued at $6 billion, entails a complete buyout of Promina’s ordinary shares by Suncorp – valuing each Promina share at $5.88. And thus emerges the second largest general insurance body and sixth-largest banking firm in Australia and New Zealand with combined assets of $48.42 billion and an M-cap of $20 billion. Australian financial institutions are seeking such amalgamations to achiev scale.As the Indian steel industry starts feeling the consolidation heat, many small and medium-sized players will view it as an opportunity to exit. But in the era where thespians like Mittal, Nippon and Posco are engaged in nasty bidding wars, do players like Tata and Jindal stand a chance? Surely, they do, but for that these domestic players will have to dive into the very dirt-pool that they’ve been loathe to touch, namely, M&As. Else, they run the risk of being sidelined by the global steel sharks...
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Source:- IIPM-Business and Economy, Initiative:- Prof. Arindam Chaudhuri - 2006
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t push the quick play button…music, movies, mails, is what HP is promising you this time. In short, ‘fun & all that jazz’ is a guarantee from HP on this latest remote-controlled HP Pavilion DV 2046TU Notebook. The power idea is to play on the current wave amidst consumers for using the computer for wholesome entertainment. The eyecatching visual display showcases a beam balance, with diverse features hanging from its different strings. The body copy further elucidates on the laptop’s features. The reward to the prospect is clear: ‘the computer is personal again’. Of course, HP wants to cash in its remote control empowered laptop. So, all set to become a couch potato?
as only with the advent of Christianity in the 12th century that it consolidated itself to form one distinct nation. King Gustav II Adolph’s active participation in the European politics during the ‘Thirty Year’s of War’ (1618 to 1648) helped Sweden establish itself among the political super powers of Europe during that time.
ly brought pleasant tidings for Dr. Reddy’s Laboratories in the April-June quarter. The company reported a massive revenue surge (year on year) of about 151%, which stood at Rs.14 billion as against Rs.5.6 billion in the corresponding quarter of 2005. The company savoured a 320% surge in net profits (consolidated), which were pegged at Rs.1.29 billion. As predicted, Dr. Reddy’s benefited from the Betapharm acquisition, which contributed close to Rs.2 billion in revenues to the coffers. On the other hand, generic drugs, Finastride and Simvastatin, (which are enjoying their 180 day exclusivity period) contributed Rs.3.35 billion in revenues. G.V. Prasad, Vice-Chairman & CEO of Dr. Reddy’s stated, “I would like to emphasise that Dr. Reddy’s has also had a good organic performance.” Things haven’t been as rosy, though, in the Betapharm acquisition. The primary cause has been the German government’s decision to decrease the prices of generic firms by about 30% with effect from June 1, 2006.Even as the ghoulish Idi Amin regime and dreaded civil war
s recede to history, the quagmire of economic backwardness has slowly and steadily drained Uganda of its vitality, despite having considerable natural resources of fertile soil and deposits of Copper and Cobalt. But creditably, Uganda made remarkable progress during the last decade of the 20th century. Return of exiled Indian entrepreneurs, high international coffee prices, as well as stress on stabilisation, human development and most importantly, domestic security were reasoned to be behind the turnaround. The average income in Uganda started growing by 5% a year, overall poverty fell from 56% to 34%, and primary school enrolment rose very positively from 5.3 to 7.6 million.
s that criss-cross the globe, changes made by humans to landscape and flora has resulted in nothing less than a tragic aerial catastrophe. It is reported that about 97 million birds are killed annually by nocturnal and daytime collisions with brightly lit towers and sky-scrapers. Of those who are massacred by the towers are many that are already in the ‘endangered list’. In Toronto, for example, about 940,000 high rise buildings ‘kill’ about 9.4 million birds by ‘bird strikes’ annually. It is reasoned that during day time, birds fly directly into the buildings having glass panes, unable to perceive the images as reflections. During the night, the natural cues that help their aerial navigation (the lights coming from the moon & stars, as also Earth’s geomagnetic fields), get disrupted due to the light from brightly illuminated buildings.More Blogs By Me:-
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mka, Director Maximus, “At present, the Indian animation industry is pegged at $250 million and is growing at an astounding growth rate of 30%. While only 3,000 people are employed in the industry today, the demand is of more than 10,000 animators, which itself signifies its importance of animation as an aspiring career option.” Surely, the scarcity of animation professional is a concern which needs to be quickly taken care of. Opines Shubho Shekhar Bhattacharjee, CEO Planman Life, “Th ough Hollywood has been producing quality animation movies like Finding Nemo, Shark Tale & Shrek, for Bollywood the experience has been short, but enthusiastic. Earlier, animation to India was restricted to a few outsourcing operations like sketching, painting and digitised order content, but today, Indian animators are respected by the global community and are signing deals with international studios to produce animation movies.”
business (which contributed $41.8 billion to total company revenues of $144.3 billion in 2005), has only got healthier with GE Aviation signing deals worth $2.8 billion at the Farnborough Aviation Trade Show on July 19, 2006. The Energy, Oil & Transportation units are also growing with the company planning a $8 billion global expansion. Healthcare contributed $15.15 billion. The industrial and financial divisions which contributed $32.63 billion and $40.06 billion respectively are the other bright spots. Inversely, their $14.69 billion revenue earning media business - NBC Universal - had a flat revenue growth with profits lower by 10% over previous year’s quarter! And as Ronald Walton, Media Analyst, UBS comments, “GE should gradually divest its stakes in NBC...
and facing religious persecution in several countries, the ‘autonomy’ granted by the Iraqi constitution has fuelled aspirations of Shiites, who comprise 63% of Iraq’s population. Iran is another typical example. The Gulf War-II allowed Iran to justify its rigid stand vis-Ã -vis nuclear ambitions. Further, Iran is logically & strategically relying on the clout of the increasingly powerful Shia population in countries across the region. Iran now believes, and perhaps rightly so, that if the US dares to touch it, the whole region could go up in flames.Read More IIPM-Blogs:-
ces to unwind in… In the day you could soak up the sun or laze in a comfortable hammock perched upon the shimmery white sands of the beaches, for once it’s dusk, sleep is certainly on no one’s mind! With eight major clubs and scores of others scattered around the island that plays host to the world’s best DJs, Ibiza has built up its reputation as the world’s clubbing capital with each passing wild bacchanalia… Predictably, that’s not all: Ibiza is a heady cocktail of beautiful women, Foam parties, and a ‘friendly’ atmosphere where all your erotic fantasies really do come true. It’s insane all through the week; even when the world is bogged down with manic Mondays, the ones here are crazier than the usual Saturday nights elsewhere! But don’t take our word… head for the world’s biggest club Privilege here, and experience the Monday Manumission parties to know what we’re talking about...
ions: of price discovery and price risk management with reference to the given commodity. It is useful to all segments of the economy – to the farmer because he can get an idea of the price his produce can fetch him after some time; to the consumer since he gets alerted about future prices of essential commodities; and yes, also to exporters as it provides an advance indication of the likely price. Commodity markets were supposed to have eliminated the risk of being duped by a wholesale trader. However, the problem crops up when speculators are allowed to go wild with futures trading without any effective regulation from a body or an institution. The commodities market regulator FMC simply doesn’t have the manpower, the resources and the expertise to effectively regulate the rapidly growing speculation in scores of commodities across India.Masahiro Take da - gawa, CEO of Honda Siel says “We have plans for expansion and we are on a fastack.” By the end of 2007, Honda plans to double its annual capacity to 100,000 units. But those are just ‘plans’! Moreover, Honda needs to revamp its dealer facility & delivery process as it has even been rated poorly on JD Power Sales Satisfaction Index 2005. More importantly, Honda has to invade more segments, especially compact cars. But even that isn’t as straightforward as it seems. States Arora, “The key challenge that manufacturers face while planning to bring a global model to India is in terms of the initial cost as well as the cost of operation of that model.” The road map for Honda is simple – aggressively ramp up capacity & unleash the ultimate killer strategy for India – launch of a small car. GM has already planned its small car launch by 2007; so the more Honda delays its entry, the worse it will be for the giant.
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Source:- IIPM-Business and Economy,
Initiative:- Prof. Arindam Chaudhuri
Copyright IIPM:- 2006
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