IIPM News Broadcast

Thursday, March 11, 2010

Darwin couldn’t be more proud...

... and Airbus couldn’t be more loud. What awaits the winged giant?

Darwin’s ‘Survival of the fittest’ theory wouldn’t prove too wrong in the current times, when citadels are tumbling everywhere; and a positive earning reportage is so welcome! So there’s another ‘fit’ $10.3 billion-worth parent of Airbus, EADS, that made all proud by registering a profit of $1.99 billion for FY2008 after a miserable ‘supply-led’ $580 billion loss in 2007 (thanks to the A380 project that nearly broke its back twice!). Yes, good news for now; but, the question remains – will it continue the good work when it comes to making profits?

Louis Gallois, CEO, EADS, seems upbeat about the future of the changed organisational structure. He states, “We made significant headway in reshaping the company. The group has regained stability in 2008 and is proving to be resilient in the face of the turbulent global economic environment.” But isn’t slowdown a drag on the aircraft manufacturing giant? Well, here the man minces no words as he asserts, “2009 will be a very challenging year for our industry!” Indeed so, the demand side of the market has wilted temporarily, with IATA (Report titled: lengthy recession is now main challenge) forecasting an air passenger traffic contraction of 3.6%, a cargo contraction of 5%, and a revenue fall of 6% in 2009 as compared to 2008. And worst, the industry is predicted to burn another mighty $2.5 billion in losses for 2009!

The giant today is finding itself in the thick of the turmoil in the sector, with many aviators finding it tough to finance their purchase of an aircraft priced anywhere between $65-500 million. And order backlogs? They stink! “At the end of 2008, Airbus had 3715 aircrafts backlog,” states Craig Fraser, Analyst, Fitch Ratings. Yes, efforts like a tie-ups with the French Coface or German Hermes to finance upto 50% of aircraft value for its clients are on... but to what extent can it clear the huge backlog (not adding the new orders received in 2009 standing at 777 aircraft orders, valued at a mighty $100 billion at list prices) remains questionable... For now though, gallop-on, Gallois; as far as you can ride (fly?).

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2009

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-

The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!

Outlook Magazine money editor quits
Don't trust the Indian Media!

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Wednesday, March 10, 2010

Believe it or not, the world will witness the resurgence of a new era of racism than the end of it...

In another case, though Obama succeeded to replace the CIA’s director by the former Chief of Staff, Leon Panetta, he had to face huge criticism from press, polity and public. Adding salt to the woes, the relation between the President and New York Police Department (NYPD) is exemplified by the recent cartoon controversy in New York Post. In it, two NYPD policemen were shown shooting a chimpanzee with a caption that read, ‘they’ll have to find someone else to write the next stimulus bill.’This agitated Black civil rights activists. These issues raised questions over the extent of control Obama has on the intelligence and security establishments of US. One has to remember that US is nothing much without its key intelligence agencies and the world’s most sophisticated armed forces. Amidst all these, the arrest of two Tennessee guys- Daniel Cowart and Paul Schlesselmen who were planning to kill 102 African-American children and then assassinate Obama vindicates the resurgence of white racists and reminds the assassination of another American President John F. Kennedy. It’s better to hope less than to expect that Obama can completely end racism. He can at best abolish it from English language. If he does, it would just be the word and not its essence that would be wiped from earth and especially from the US. Poor Obama.

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2009

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-

The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!

Outlook Magazine money editor quits
Don't trust the Indian Media!

Monday, March 08, 2010

“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. Nokia has 1,90,000 outlets and a retail point for every 20 sq. km and 800+ centers across 400+ cities.

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2009

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-

The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!

Outlook Magazine money editor quits
Don't trust the Indian Media!

Saturday, March 06, 2010

Not necessarily in the same order of priority!

The last decade saw the growth of numerous green systems. But most of them, by the turn of the decade, did not find takers. The much touted hybrids are a key example. A conservative estimate shows that the sale of hybrid vehicles, after so many years of promotion, constitutes just about 2.9% of total automobile sales. Similarly, usage of vehicles using natural gas (called CNG in some countries) is largely confined to transit buses and a few other modes of public transport. Hydrogen fuelled vehicles, even today, remain limited due to lack of a proper fuel distribution network. Electric vehicles have not caught the customer’s fancy due to high battery costs and recharge issues. Even though auto giants are already working on prototype cars powered by fuel cells like Mitsubishi i-MiEV and Nissan Leaf, their time will be tested only when they’re introduced. And the lesser said about the concept of high-speed railways and green air transport systems, the better (even though the bio-fuel based Virgin Galactic airline does stand out in its promise of making the carbon cost of each flight come down to 60% of a conventional aircraft’s).

Strangely, a few initiatives to reduce emissions from current mass transport systems have worked better than the ‘green’ lot, especially considering the fact that oil reserves – by recent estimates – are perhaps never going to get depleted in the near future (or even far, for that matter). In France, pollution-free nuclear electricity has helped trains reduce the carbon emission rate. Researchers are en route to developing more efficient and effective catalytic converters that would further break down the toxicity of vehicle emissions. Auto manufacturers are even focussed on bettering mileages on automobiles with every passing year. For example, as per US Department of Energy data, while the Toyota Landcruiser gave 12 miles per gallon (mpg) on the highway in 1985, the 2010 model gives 18 mpg. The Camary is better, giving close to 35 mpg in 2010!

It’s evident that rather than attempting to invest magnanimously in green spheres that have very less or almost no guarantee of succeeding, there’s heavier credence for attempting to improve what can be done in a short time – the mpg example of Toyota being a totem pole. Can the world stand up to that?

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2009

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-

The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!

Outlook Magazine money editor quits
Don't trust the Indian Media!

Friday, March 05, 2010

When Kat ran

When Katrina Kaif does a movie with Ranbir Kapoor, there are rumours. When she doesn’t do a movie with him, the rumours are still there! Well, the latest one being that Katrina is avoiding Ranbir as she walked out of Imtiaz Ali’s film which also starred Ranbir Kapoor. However, the boring truth is that she had no dates for Imtiaz’s film due to her prior commitments for Zoya Akhtar’s next, which stars Hrithik Roshan. Well, hope Kat is able to maintain her ignore-it-all stance!

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2009

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-

The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!

Outlook Magazine money editor quits
Don't trust the Indian Media!

Thursday, March 04, 2010

Indore invocation

As Gadkari hummed a ‘youth first’ tune and Advani alluded to the party’s fourth generation leaders, the BJP chanted a new political mantra at its national convention, reports Anil Pandey

The Bharatiya Janata Party (BJP) has changed, and how! The first national convention of the party took place in Mumbai in 1980 and 50,000 workers attended it, living in tents for the event. The then party president Atal Bihari Vajpayee addressed the inaugural convention, clad in his trademark dhoti-kurta ensemble.

Thirty years on, the symbolic simplicity of the tents and the ethnic attire of its tallest leader remain relevant. At the party’s three-day meet in Indore, the tents were up again, but the latter gave way to a flashier sartorial statement.

This year, too, there were tents, but the party’s national president came dressed in a pair of trousers and a shirt to deliver a Power Point presentation to a party that is struggling for survival. Also, among the largely ageing audience sat a few workers with goggles perched on their selves to go with colourful shirts, providing perhaps a subtle indication of where the party is headed.

Be it the party’s 30-year-old, progressive thinking MLA from Maharashtra Jaikumar Rawal or the equally forward-looking Delhi BJP secretary Virendra Sachdev, these scattered faces, looking as modern in their attire as they are known to be in their thought processes, bore testimony to the fact that a party wedded to tradition and the old order was willing to embrace change.

The process of change, of course, is neither easy nor natural. After the party’s drubbing in the 2009 Lok Sabha elections the BJP appears to have realised rather well that in order to strengthen its future prospects in the electoral arena, the young will have to be included in its ranks and be given more power.

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2009

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-

The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!

Outlook Magazine money editor quits
Don't trust the Indian Media!

Wednesday, March 03, 2010

‘saving taxes’

Another interesting and credible strategy resorted to by the fund houses during the season is that they try to attract investors by declaring dividend on existing schemes. This year too the process has started with UTI Mutual Fund declaring a dividend of 15 per cent on its tax-saving plan, Bharti AXA Tax Advantage Fund paying 30 per cent, ICICI Prudential Tax Plan announcing 40 per cent, and JP Morgan Tax Advantage Fund declaring 15 per cent. This strategy in particular, is quite effective for AMCs, believe notable experts like Dhirendra Kumar, CEO, Value Research, as the dividend payments made right before the last quarter of a financial year reduce investors’ burden by a good margin, which would mean a lot to the investor and quite matches the marketer’s point of view.

But then, the strategy of luring customers at the last moment comes with a problem that surfaces due to a sudden rush. The biggest trouble that hits the investors at this very moment is the fact that most of the time, agents making the sales pitch only convey the fact that by investing in a particular instrument, the investor will qualify for a deduction under section 80(C). At best, they tell the investor a few more details like past performance and expected returns. But many a time, neither do they reveal the complete details of the product, nor does the investor feel the need to ask, which he expectably would have done otherwise if he had purchased the instrument some other time. As a result, investors land up investing in instruments that charge them relatively higher. According to an agent of Birla Sunlife Insurance, “Most of the clients we meet during the last quarter seem eager to park their money in some tax-saving instrument. They really don’t bother as to where their money is actually going in (relatively speaking), what are the charges and how much does it suit to their requirements. Their only parameter is whether this investment qualifies under Section 80(C) or not! This is the reason because of which certain agents simply suggest those schemes to the investor, which would entail the agent earning a better commission. This ultimately means higher charges for the investor.” Clearly, all this is pure conjecture when seen in a general context. With as many as 40 mutual fund schemes and numerous insurance schemes available in the country at present, there is no doubt the competition is bound to intensify in the last quarter when investors open up their wallets. But does it mean that the people genuinely interested in tax planning should suffer for those who opt for dumping?

Certainly not, but in reality, it happens. After exhausting a bigger portion of their spending budget, service providers in a way reduce their activities in the succeeding quarters. The same marketers who were focussed on providing the customers with their best schemes suddenly disappear and the ball falls in the investors’ court to chase the agents. The same is the case with Ruchika, a working woman, who in the month of May wanted to make her investments in a planned manner with smaller amounts spread throughout the year, rather than in one go at the end. “But I couldn’t get guidance that was satisfactory. Finally, I just called up one AMC and parked all my money with their best scheme,” says Ruchika.

There are thousands like Ruchika, who are waiting for someone to actually guide and help them the understanding the benefits of tax planning. But however hard this might sound to the “consumers’ beware” coterie, it’s perhaps not the responsibility of fund houses or insurance firms to educate the consumer – but of the regulatory authorities, which have failed so far to ensure a unified message across platforms focussed on tax saving.

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2009

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-

The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!

Outlook Magazine money editor quits
Don't trust the Indian Media!

Tuesday, March 02, 2010

Baltic Beach Hotel

Treat yourself to a short and sweet white sand getaway. For those desiring a classy but relaxed beach holiday, Baltic Beach Hotel is the ideal Baltic getaway. Enjoy some romantic candle-lit meals with your special someone and gaze at the sparkling stars while you sip on some exquisite old wine. If you feel up to it, then indulge in a sinful massage. Stay at the Baltic Beach Hotel is a memorable experience in itself when you have luxury, tradition and unparalleled hospitality on a platter.

The View: An oasis of peace and pleasure on the very sea shore – “Baltic Beach Hotel” – the leading hotel of the “Baltic Hotel Group” chain is located within only couple of minutes walk from the central street of Jurmala. The emerald sea waters and the wonderful scenery take your breath away. Don’t be surprised if the morning breeze greets you with the fresh aroma of pine trees.

Archi Type: Well known for its aesthetic sense and artistic streak, Baltic Beach Hotel, has the plushest interiors. The hotel has subtle pastel-coloured interiors and fine craftsmanship has been displayed in all corners of the hotel. Ranging from exquisite wooden furnishings to select decoration pieces, the hotel has been tastefully done up.

Bon appétit: The resort has the Caviar Club, which offers delicious European cuisine. Combining classical Italian cuisine with contemporary cooking, ‘il sole’, the Mediterranean restaurant offers traditional, as well as popular Italian dishes and true masterpieces of the culinary art. To begin your day with a soothing cup of tea, the Lobby Bar offers the most relaxing ambience. Kiss the sun goodbye while sipping on some champagne and lighting the cigar at the Kalian Bar.

Around the corner: Baltic Beach Hotel is perfectly situated in Jurmala in such a way that a walk alongside the beautiful Lielupe River and a safari in the Kemeri National Park is a must.

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2009

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-

The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!

Outlook Magazine money editor quits
Don't trust the Indian Media!

Saturday, February 27, 2010

Shall we change?

The first symptom of a not-so-great nation is its ungratefulness

For once, it was incredible to see the Indian media playing a stupendous role in reliving the memories of the Kargil War; a pyrrhic war that India should not have had in the very first place. And once again, it was vindicated as to why the Indian Army is one of the finest institutions of the country. So while the debates of the worst kind over the commemoration of the Kargil War continued – from which party’s victory it was to which party’s loss – for a change, it was great to see that for two consecutive days, i.e. July 25-26, 2009, many significant channels in the television media didn’t bother too much about other issues and allocated a reasonable amount of their energy and prime time for the martyr soldiers and their families.

Sadly for the family members of the martyrs, the Supreme Commander of the Indian Armed Forces (read: The President of India) failed to keep her date with India’s national heroes of Kargil War. Although we do believe the same was due to unavoidable circumstances, one also has to realise that the occasion means something that is significantly historic; and absence in the same is surely expected to raise hackles of critics and supporters alike. So while Pratibha Patil remained conspicuous by her absence in Drass where the commemoration was being held, the media took it to the people at large all across the nation.

Amongst all the ceremonies, what has been conveniently forgotten in between – or should we say, relegated to the bottom cabinets – is the loss of numerous lives in the summer of ’99. Those lives were not just valuable, it is a fact that many of those who died were also young officers and jawans freshly out of military academies who willingly gave up their lives for a nation and for the reason that without that victory, the strategic paradigm of India and perhaps even the map of India could have changed forever.

Certainly, the Pakistani intrusion was not an impulsive one and it was clearly aimed at cutting off NH-1 and thus Siachen. A prolonged war instead of a quick victory would have spread the war beyond Kargil to other fronts in Rajasthan and Punjab. The situation then could have gone completely out of control and with the threat of a nuclear war looming large, India would have been forced by international community to negotiate with a recalcitrant and cunning Pakistan. The quick and decisive victory was thus critical and came at a price.

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2009

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-

The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!

Outlook Magazine money editor quits
Don't trust the Indian Media!

Friday, February 26, 2010

V. M. PANDIT, former senior C.B.I. official,

“The problem comes when the CEO or his family members move out of their homes...”

B&E: Is there a security threat to CEOs and their families today?

V. M. Pandit (VMP): Definitely there is this fear today. I have worked for the CBI for 26 years, but since 1993, I have been completely involved with corporate investigations and my experience tells me that there is a big threat to CEOs and their families, as organised crime has grown and kidnapping has become a big business today. The general scenario of crime in India is that law and order is not doing enough to keep everyone protected from harm, not even the privileged class. And the fact that these criminals can boast about political connections, they get great shelter in all aspects. So they can commit such crimes, and these crimes are generally committed by organised bodies. Thee criminals keep a tab on the rich people of the community and those who are vulnerable to kidnapping, including the CEOs and their families.

B&E: When are the chances of getting kidnapped the highest?

VMP: The problem comes when the CEO or his family members move out of their homes, i.e. in transit. That is the term which makes them vulnerable - in transit. On their part, all CEOs also cannot afford escorts and bodyguards for all in their family. Moreover, their family members follow fixed routes, to school, to office, to the market. They frequent the same restaurant, the same club, and that too at fixed hours. So the criminals select a particular target after conducting a brief survey – the survey can be anything, right from who is the courier boy who most frequently delivers parcels at a particular location to who the security guards are, their shifts, etc etc. In the process of knowing more, they come to know which market and clubs they flock to and which schools or colleges their offsprings are linked to. So that is the first step of any kidnapping activity.

B&E: Do they often harm the asset?

VMP: If their ransom demands are not being met, then you definitely are calling for trouble. If the ransom demand has come over the phone, then be sure that their ‘gang members’ are always keeping a track of how you proceed with the execution of the payment. They would know if you are defying their instructions. The moment they find out that you have approached the police, their ransom demand increases. The party also shows little care for the victim, if you try to find their hideout; so in that case, they will most likely do away with the kidnapped individual.

B&E: How critical is counselling for the victim’s family?

VMP: For sure the victim’s family needs to be counselled. What answers they should give when phone calls come, how to monitor those calls, how to react to threats, and how to ensure that the right moves are taken, is what they have to be taught...

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2009

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-

The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!

Outlook Magazine money editor quits
Don't trust the Indian Media!

Wednesday, February 24, 2010

Coming back to Gladwell’s 10,000 hour rule

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.

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2009

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-

The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!

Monday, February 22, 2010

How the good became the greatest

ONGC has to still find a way to beat the oil volatility cycle without the help of subsidies, says ratan bhagat

To be number one on the B&E Power 100 list brings with it a crown of thorns embedded with huge responsibilities, high expectations, unexpected challenges, and continuous scrutiny, with a generous gift on the negative, from all stakeholders. And ONGC, this year’s leader on our list – with a profit of Rs.161.26 billion for the financial year 08-09 – is gifted with all the above embellishments that come with the throne.

But how did a company, which was pretty good previously, become the greatest in India, a jump that requires more than well implemented strategic intent? R.S. Sharma, Chairman and Managing Director, ONGC doesn’t play to the gallery and points to a straightforward fact, “ONGC’s story actually reflects the success of our well thought out strategy to focus on strengthening our core activity – Exploration and Production (E&P) of oil and gas.” In that order, we should say. The fact is that ONGC, in the past few years, has gone fanatically towards exploring newer positive fields in a manner never before seen in its history. The proof of the pudding comes in the fact that the figure of 28 fields discovered in the financial year ‘09 has never ever been achieved in the past. Moreover, by securing an in-place accretion of 284.81 MTOE (million tonnes of oil equivalent), an ultimate reserve accretion of 68.90 MTOE (both being the highest in almost two decades) and with a reserve replacement ratio of more than one for five consecutive years, ONGC has gone aggressive in a benchmark fashion.

But the truth is, the growth story of this PSU has had its fair share of luck – what with the crude oil price volatility from a never before high of $147 to its lowest at $37 per barrel, the ongoing economic downturn, the inflated subsidy burden of Rs.282.25 billion for the current fiscal and persistent bureaucratic interference playing their part in pulling ONGC down.

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2009

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-

The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!

fastest growing auto markets?

The fact that TKM has also postponed its desired aim of the double-digit market share by 2015, which was earlier slated to be attained by 2010, clearly shows how the Indian market is still a tough nut to crack for the company. Hiroshi Nakagawa, MD, TKM admits, “Toyota has been very slow in its approach when it comes to operating in the Indian market.”

However, he points out that the scenario at TKM is in a lot better state as compared to the headquarters and with the launch of its small car by end 2010, the situation is most likely to change very soon. In short, Toyota is planning to play the volume game. But will it succeed?

Toyota aims to produce around 70,000 units for this small car initially from a new plant and this will be ramped up to 1,00,000 units by 2011, 1,50,000 by 2012 and 2,00,000 by 2013. The fact that the company is very bullish on its success in the Indian market is clear. It has kept its investments intact and is investing around Rs.32 billion in setting up its second manufacturing facility in Bangalore to roll out the small car. However, recent news reports claim that the company has cut down on the proposed investments by one-fourth and now the company will invest Rs.24 billion in the second plant, near its existing factory at Bidadi on the outskirts of Bangalore, and not Rs.32 billion as announced in November. The existing plant has the capacity to produce up to 80,000 vehicles every year so one can definitely expect that capacity may not be a constraint for the company going ahead.

The company also plans to ramp up its dealership by as high as 65% by 2010 to increase its interface with its consumers. At present, Toyota has around 90 dealerships across the country and has firmed up plans to enhance the figure to 150 outlets, of which about 60% are expected to come up in semi-urban and rural locations. Keeping in mind the rising demand from semi-urban and rural areas, the company plans to expand to smaller cities, namely Allahabad, Srinagar, Shillong, Belgaum, Ambala, Tirupati, Meerut and Patna, before the launch of its small car.

"With rising rural sales and the approaching launch of the compact car, we believe that setting up dealerships in small towns is viable," asserts TKM’s General Manager (Sales), Sailesh Shetty. The company’s move of expanding its dealership network is rightfully supported by the launch of its small car as it''ll be then easily available to the consumer.

Nakagawa explains, “The aim of attaining the double-digit market share is closely related to the launch of the small car and once that happens, I believe we will be there before the target time.” It’s not Toyota alone which is going gung ho on the Indian compact car market; rivals like Ford, GM and Renault are also planning their respective small cars in the country around the same period. GM India will be launching their much-awaited Beat by early 2010 and same is the case with Ford Figo which was recently showcased in the country in the presence of Alan Mulally, President, Ford Motor Company. Time is definitely not on Toyota’s side, as the small car market has already got extremely crowded; and the company has no brand equity in this segment at all. GM has in fact strategised better than Toyota in this regard, with launches like Spark and U-VA. Moreover, the increasing competition in the SUV market may also pose a threat to the cushy position of TKM. In addition to the reloaded Endeavour from Ford’s stable, companies like Skoda, Hyundai, Volkswagen and Audi are going very bullish on the success of the Indian SUV market and have lined products to get their share of this pie. “The Indian SUV market still accounts for very low volumes as compared to passenger cars and will see a boost in the demand in the near future,” avows Pawan Goenka, President (Automotive), Mahindra & Mahindra.

Skoda is aiming to drive its Yeti into the Indian geographies by the first half of 2010. Similarly, Audi Q3, BMW X1 and Nissan Murano are expected to follow suit soon.

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2009

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-

The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!

Saturday, February 20, 2010

Who’s killin’ whom?

Breed them, feed them and then eat them – contracting animal diseases frequently might just be their way of getting back at us

Cultures across the world, for eons, have justified the slaughter of animals for the consumption of mankind, ‘because God/Nature created them for our sustenance.’ But today, sustenance has become the cornerstone of commerce and the meat industry, allegedly, has become a needlessly cruel and literally blood-thirsty enterprise. So now, is the animal farm hitting back? ‘Swine flu’ (H1N1 virus) is the latest incursion on the western world and is worrying everyone around. As the name suggests, it is the virus that often causes influenza outbreaks in pigs, especially during the late fall and winter months. While the season of the outbreaks of ‘common cold’ in pigs is similar to humans, the symptoms (running nose, coughing, sneezing, fever, laziness etc.) are surprisingly similar too. Normally, the swine flu virus does not infect humans. It is the direct exposure to pigs in either a breeding farm or fun fair that leads to infection in humans and is contagious like regular influenza. “It is a different strain. Though cold and cough are the symptoms, the body might not be immune to it. In those cases, it can take shape of a lethal pneumonia and may cause death,” says Dr. S. M. Sachdeva, Senior Consultant Cardiologist.

It is the horrifying memory of the biggest and the deadliest global endemic, Spanish Flu (a subtype of H1N1 virus and similar to swine flu) of 1918 which causes concern and panic every time such influenzas surface. It shook the world when 40 million people died. In Spanish Flu, pneumonia doesn’t even get the time to establish itself and the patient dies of the virus within hours of contracting it. The virus causes an uncontrollable hemorrhaging that fills the patient’s lungs with his own body fluids.

If one observes keenly, there are certain peculiarities about these outbreaks, about the kind of victims as well as about the recurrence of such virus attacks. While the Spanish flu presented an unusual preference in its choice of victims – young, healthy adults instead of those with weak immune systems – the origin of the ailment is considered to be in the Eastern world.

Again, an entirely new variety of human influenza, ‘Chicken Ebola,’ surfaced in the human population of Hong Kong in 1997. It was then that Hong Kong’s entire poultry population (ducks, geese and chickens) was slaughtered. SARS or bird flu also started among the Orientals and culling of several poultry animals was done to avoid it from gaining pandemic proportions. As far as the recurrence of these influenzas is concerned, influenza experts remind that aquatic birds maintain all the genes of all influenza viruses in the world and they transmit it to other species periodically. Even if these viruses are very ancient, they still have the capacity to evolve, to acquire new genes and new hosts. So, chances of such troubles hitting mankind again can’t be ignored.

While the 1918 Spanish flu took its toll in the pre-penicillin era, new types of viruses always pose a threat. It is quite clear that breeding farms for poultry and pig are the breeding grounds for such viruses. Well, the increased frequency of recurrence of such influenzas in the past one decade could be nature’s way of telling us that culling humans too isn’t as difficult!

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2009

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!

Friday, February 19, 2010

Why governance is not taught...

Have you ever heard of a school of governance and politics in India?

03 Apr-16 Apr ‘09 issue

Yes and no! Perish the forsaken curiosity. The yes, is for the affirmation that without doubt our political arena has witnessed the entry of many young politicians. And the no, is the answer to the question whether they’ve been able to make any sensible difference to the scenario. One reason is that the number of young politicians in India is still miniscule given the fact that the average age of the 13th Lok Sabha has been around 55 years! But learned that we are, allow us to introduce a proxy reason for this problem. Young and talented individuals today do not understand the nitty-gritty of politico-economic debates and simply perceive politics as a criminal’s exercise in drudgery because, ironically, there exist no known institutions in India that teach politics and governance. Even the young MPs who were there in the Parliament participated only in 7% of the debates. And the less talked about their overall attendance, the better. We ergo question the experience and exposure that our young politicians undergo before entering politics. Clearly, what we require are structured and respected institutions teaching politics and governance on a specialised basis to the literate youth.

Think about it. To match top global examples like the John F. Kennedy School of Government (Harvard University), Bulgarian School of Politics, Matsushita Seikei Juku institute in Japan and Colombo School of Politics, what have we? Hilariously named institutions like Netagiri in Ranchi. Without being deprecating, the fact is that if this school, which has more than 200 students, has produced several state, district and community-level politicians, then imagine what we could end up achieving by setting up well financed and supported institutions across the country that teach politics and governance to our empowered youth. Well, if even a thoroughly non democratic and autocratic country like Kuwait can have a National Democratic Institute, why can’t the world’s largest democracy?

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2009

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!

Wednesday, February 17, 2010

First impressions of the bhel bhopal township are anything but encouraging

By the time I reached Bhopal, I was naturally more impatient than ever to get to my destination. But the 11 hour long journey had compelled me to call it a day. So I had to wait for a whole night before I could get to the bottom of things.

The next day, I started early for the township as it was 7 km. away from the hotel where I was staying. And this time, my guide was Aslam, an auto-rickshaw driver who have been faring passengers from the Bhopal city to the BHEL township for the last 20 years. He affirmed Bora’s observations as we entered the township. I could clearly see houses of employees, who had retired over the last few years, left abandoned or being demolished; particularly in areas like Kalibari, Govindpura, Security Line, Vijay Nagar, et al. Even in other parts of the township, the management doesn’t seems to be paying heed to the regular repair and maintenance work – whether it’s the roads or the employee quarters. Aslam told me that quite a few employees had made their own houses outside. Satellite colonies like Indrapuri, Bharat Nagar, Sonagiri and Saket were mushrooming around the township over the last few years (earlier, there were about 22,000 employees staying in 12,500 quarters inside this township, today the number has drastically reduced by almost 25-30%). “Everyone wants to own a house when he or she retires. And with easy availability of loan along with HRA facility from the company, if we are getting that chance, then what’s the harm,” reasoned an employee of BHEL Bhopal who had just moved into his own house at Sonagiri, a satellite colony near the township.

A senior employee, who had been with BHEL Bhopal for the last 34 years, cleared the air. “TRT quarters, as we call them, are being demolished because BHEL, in association with Nuclear Power Corporation of India (NPCIL) and Alstom (the global leader in equipment and services for power generation), is contemplating another plant at its Bhopal unit, which will fabricate nuclear turbines.” The plan is to manufacture high rating (starting from 660 MW to 1,000 MW) turbine-generator sets. In fact, the unit has already received its first ever order for providing steam generators for 700 MW nuclear sets. The company has also tied-up with GE-Hitachi for making nuclear reactors and is said to be in talks with other foreign players such as Westinghouse, Areva and Toshiba for supply.

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2009

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!

Tuesday, February 16, 2010

Breaking news: Ramu is back!

After suffering through “Agyaat” and “Phoonk”, it is with some trepidation that I ventured into “Rann”. I was wondering if Ram Gopal Varma would find his form again. Well, even though it was not exactly a fluent innings, it was good to see RGV at least batting decently on his home pitch this time. “Rann” takes the media-politician nexus and the ‘breaking news’ vs. ‘faking news’ controversies and spins them together to deliver a thriller that is neither novel nor perfect. But, it is unmistakably enjoyable. To be sure, it is not a film that is definitive commentary on the media’s state of affairs as, say, “Company” was for the underworld. The story here is loose yet gripping and Varma’s quirky shot set ups – meetings are shot from under glass tables, and there is a grey hue to almost every shot – make it engaging. The background music is a little overdone, though, and reminds you of “Phoonk” and the over use of so-called ‘suspense’ and ‘power’ music.

Vijay Harshvardhan Malik (Amitabh Bachchan) heads India 24X7, an idealistic channel struggling to keep up its TRPs as the more gossipy rival Headlines 24, run by Amrish Kakkar, an ex employee at India 24X7 (Monish Behl) grabs the eyeballs. Vijay’s son Jai Malik (Sudeep) is desperate to see his channel back on top and strikes a devil’s deal with politician Mohan Pandey (Paresh Rawal) agreeing to manufacture a conspiracy that would see Mohan Pandey rise to become the Prime Minister of the country.

Sudeep’s performance is the standout one, playing a conflicted character and superbly communicating his urgency and frantic state of mind through his eyes and expressions. Ritesh Deshmukh is solid as the young and righteous reporter and the others fill in well, but the revelation is Monish Behl, who is suave and sinister. “Rann” doesn’t break new ground or shift perceptions, but at least Ramu is back to entertain.

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2009

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-

The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!

Monday, February 15, 2010

Policemen and lawyers were involved in a clash in the Madras high court premises

On October 29, a special bench, comprising justice FM Ibrahim Kallifulla and justice R Bhanumathi, passed an order holding the then city police commissioner K Radhakrishnan, then ACP (Law and Order) AK Viswanathan, then joint commissioner of police (North) Ramasubramani and then DCP, Flower Bazaar police station, Prem Anand Sinha, responsible for the violence. The bench suggested suspension of the four officers. But the Tamil Nadu government challenged the order in the Supreme Court. The SLP (special leave petition) is still pending.

Meanwhile, CBI, which constituted a Special Investigative Team (SIT) to probe the incident, has filed six chargesheets in the court of additional chief metropolitan magistrate, Chennai. Chargesheets were filed on 31 advocates, one law college student and 27 police personnel. But the advocates' demand for action against the four top cops was not fulfilled.

CBI did not comment on the matter because it was still pending in the Supreme Court. So agitated advocates filed petitions in the court asking it to reject the chargesheets as they did not include the names of the four senior police officers. But the magistrate accepted the chargesheets and asked the CBI to probe the issue further. Not satisfied with this order, the advocates’ associations called for a single-day token strike which went peacefully.

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2009

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-

The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!