Monday, October 20, 2008

‘C’, the new ‘F’

Cyber crime is the new ‘F’ word
The Internet revolution has helped the world in many ways, but as studies now confirm, it has supported the spread of hatred globally. A study released by the Jewish human rights group, Simon Wiesenthal Centre, exemplified that the abuse of sites, social networks, blogs and video sharing has spread more hatred and violence in the world in the recent years. The study found a 30% increase of sites (now running over 3000) that spread hatred. The recent Latvian documentary, ‘The Soviet Story’, which compared communism with fascism, agitated the Kremlin government; thousands of ‘suicide bomber’ games in America, which show the generic bearded ‘Muslim’ enemy, have been enraging Muslims globally; border petrol games, which aim to kill innocent Mexican immigrants migrating to America, are plucking their patience, and so on so forth.

Even hacking hasn’t been left to individuals. American intelligence since long has kept on blaming the Chinese government for nurturing nationalist hackers or promoting contests between Turks vs Armenians, Serbs vs. Albanians. China’s anti-cnn.com movement is another case for example. Global governments must curb the anonymity that the net provides through enforceable regulations that will create accountability, failing which, the menace can only turn rampant.
For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
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Friday, October 17, 2008

The no-brainer auto issue

The second structural defect afflicting hybrids is their pricing. It could well turn out that unless auto companies ensure that the pricing levels of offered hybrids are in tune with mass market expectations – especially in markets like India and China, expected to be the world’s top two in the next five to ten years – they might well start failing. Hybrids are simply not cost effective, and will not be in the next seven to ten years, if at all then. A hybrid, to be rampantly successful, has to be priced in such a range that enables the consumer to perceive its ‘long term’ cost effectiveness over the ‘short term’, thus engaging his buying intent. Confusing? For better clarity, read what Deputy Editor Virat Bahri writes later on in the cover section: “Doubts are often raised about how cost effective hybrids really turn out to be. NuWire Investor’s Cali Zimmerman compared the [price of the] Toyota Camry hybrid with the normal version, and statistically proved that the cost difference cannot be recovered before 13.8 years!!! Even the first hybrid to be introduced in, say, a poor country like India – the Honda Civic – costs a huge Rs.18-22 lakhs.” How does one expect consumers in a poverty-ridden country like India (with per capita GDP just around $1000) to buy such a costly car? Isn’t it then quite a no-brainer issue to say that a hybrid, by its very definition, loses its USP once it is priced higher than even normal cars? Amusingly, not when you look at it from the perspective of billion dollar corporations who refuse to wink when drunk.

The no-brainer auto issue #3

Alternate fuel! In their blind quest for finding out god’s gift of a substitute for petrol, automobile companies are attempting to move the damned mountain when all they had to do was to change the course of the river. With hybrids getting beaten in hype only by this third dimwit of a concept called alternate fuel, car companies are only taking themselves and of course the customers for a royal ride attempting to create cars that run on grandiose non-market-tested ‘alternate’ fuel. Let me give you a primer on the alternate fuels available in the market and their ridiculous inconsistency. (a) Biomass: Fuel from plant matter or even waste material. Famous biomass fuels: methanol and ethanol. Unsolvable issues (for the next ten years) remain on how much arable land will be used (wasted) to host plant matter to produce required ‘cost effective’ ethanol. Pollution issues in ethanol production cycle are totally unresolved. Worse, methanol as fuel is not even efficient! (b) Hydrogen: Talk to me after 20 years and I’ll show you an affordable price-effective fuel cell that can logically power a car on the road. Currently, DuPont can fix one up for you in your car for the price of a mini-satellite. (c) Photo-voltaic energy from the sun; solar powered cars: Keep the windows open and make sure you don’t get embarrassed driving a car with no passenger seat at 10 miles an hour. (d) Battery operated hybrids: Been there, done that! (e) A cost-effective nuclear powered engine: Thirty years!

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

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Thursday, October 16, 2008

Eenie Meenie Miney Moe!

With the variety on offer, customers have little to worry about issues like inflation. Life’s not so blissful for players though, and inflation is just the tip of the iceberg, says savreen gadhoke of B&E
Criminal seems to be the right word for it, when you look at the state of affairs in the FMCG sector. It takes some of the country’s best marketing minds to research extensively on customer behaviour and prepare a ‘fool proof’ strategy to win in the market place. Millions are spent on advertisements, quite often with the ‘celebrity price tag attached’, managing distributor relationships, sponsorships, PR initiatives, et al. And when the product reaches the point of purchase, the time that the customer may take to bring this entire exercise to naught (by rejecting the product of course), could be not more than a fraction of a second. Like we said, criminal!

And when customer loyalty is already such an expensive commodity, unforeseen phenomena like the recent upsurge in inflation, which surpassed the 13-year high figure and touched 12.01% (for the week ended July 26, 2008), can make matters even worse. Current rising prices of raw materials, fuel, energy and essential commodities have hit the bottom lines of these FMCG companies. According to a report by ASSOCHAM Eco Pulse, the sector witnessed an increase of 16.2% in the prices of key input materials within the three months ending March 2008. As a result, net sales recorded a marginal increase and the sector witnessed a fall of 15.38% in net profits on q-o-q basis, thereby putting pressures on the volumes, which grew by a meager 5.76% during that period. Rakesh Kumar Sinha, COO, Godrej Consumer Products Ltd. (GCPL) told B&E, “The challenges are rise in raw material and commodity costs that are disturbing the entire FMCG industry, specifically the personal care segment...”

But hold on! There is good news in the air this time around. For, in the quarter ending June, 2008, the picture has transformed quite dramatically. The FMCG sector has performed significantly well in terms of its profit and sales figures. While HUL recorded an increase of 13.20% in its net profits on a sequential y-o-y basis, Nestlé India achieved a record growth of 26.54% in its net PAT.

Other FMCG players like Colgate-Palmolive (India) Ltd., Dabur India Ltd., Britannia Industries Ltd. too recorded an increase of 18.13%, 11.94% and 11.63% in their net profits respectively, despite the fact that the prices of key raw materials like palm oil, edible oil, milk, et al, rose by an average of 15-20% during the period. Beverage companies were even luckier, as a Coca-Cola India spokesperson revealed to B&E, “Economic bureau has attached an economic weight of 0.1 on soft drinks, so the beverages market was not impacted much...”

A spokesperson from Dabur tells B&E, “Intelligent buying of raw materials is among the various initiatives undertaken by Dabur to increase efficiency and reduce cost of operations.” The company has benefitted from doing its purchasing on futures exchanges. Tushar Bhattacharya, a FMCG analyst at FICCI states, “New product launches, modernised packaging, introduction of low-unit packs (LUPs) and increase in volumes are few strategies that the FMCG companies in general have adopted to fight inflation.”

Another tactic employed was price hikes wherever possible. HUL and GCPL amongst others raised their prices by 2-20% to come out of the situations arising out of increasing raw material prices. As prices of milk marked an increase of 15-20%, Amul reacted in a similar manner. R. S. Sodhi, Chief General Manager, GCMMF (parent company of Amul India) told B&E, “Despite increase in inflation, there was no reduction in demand for our milk products. Subsequent to the rise in the prices of milk, Amul raised the prices of its products in the range of 5-15%.” Dabur India also hiked prices by around 5% of some products in key categories like hair care and oral care.

And those who did not increase their prices (to retain customers) resorted to another smart game plan. Instead of increasing prices, few of the companies reduced the weight of their products and sold it at the same selling price. Anand Shah, FMCG analyst with Angel Broking calls this phenomenon as pack rationalisation and states that “it is a kind of price hike only but directed by quantity.”

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

Top Articles on IIPM:-
'This is one of Big B's best performances'
IIPM to come up at Rajarhat
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The Hindu : Education Plus : Honour for IIPM
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Saturday, October 11, 2008

A Bridge on the Palk Straits

Will the government take Ram Setu to ASI and show its hand?
Is the government’s policy on Ram Setu about to be put to test? There is a good chance it will be after the Supreme Court asks the UPA government to consider holding an Archaeological Survey of India (ASI) investigation to ascertain whether Ram Setu is indeed an “ancient monument”. A bench headed by Chief Justice K.G. Balakrishnan asked the government to explore “the possibility of carrying out the project through any other channels (alignments).”

The UPA government’s policy of vacillating in the extreme on Ram Setu (not knowing whether it would lead to appeasement or alienation) has led to the Court to demand more consistency on issues such as Ram Setu, even while acknowledging that it is nearly impossible to lay down guidelines of any kind in a democracy.

Not surprisingly, the court’s order has been welcomed by all those who are opposed to the dismantling of Ram Setu. Janata Party president Subramanian Swamy, a petitioner in the case, said the government could not ignore the directive in light of the recent Madras High Court order. The next hearing is on July 22. In the interregnum, the Bench said the Centre could consider both these aspects, just as the High Court directed on June 19 of last year. Appearing for the Centre, senior advocate Fali S. Nariman agreed with the court’s current stand.

Arguing against the demolition, senior advocate C.S. Vaidyanathan and others involved contended that there was a possibility of going ahead with the project through alternative alignments if and when needed.

Interestingly though Sri Lankan authorities could drag India to the International Court of Justice on the plea that the entire project is an environmental threat to both countries involved.Let's see if this gap can be ‘bridged’?!

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

Top Articles on IIPM:-
'This is one of Big B's best performances'
IIPM to come up at Rajarhat
IIPM awards four Bengali novelists
IIPM makes business education truly global-Education-The Times of ...
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
IIPM ranked No. 1 B-school in India- Zee Business Survey ...
IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs

Friday, October 10, 2008

Lucky Sudan...

Alright, it’s not that lucky either!
The largest country in the heart of Southern Africa and the third largest oil producer in the region, yet busted by the ruthless MNCs – that’s Sudan for you! Be it for economic exploitation or for geo-political importance, ‘infamous’ Sudan has always been in the news. Most developed countries had held this country under subjection for their selfish interests. But what does anyone do about it except of course, slamm on its face a ‘demeaning’ Human Rights Violation Report or (at best) exploit its resources (thanks to the likes of MNCs from India, China, Malaysia et al). The Darfur conflict in Sudan has triggered a genocide of sorts, wherein 2,00,000 people died in the conflict and 9,000 people were killed. What’s worse, other countries are taking advantage of this surreal situation!

While many western entities which are apprehensive of operating in such a political fiasco have pulled out of the region (like Talisman Inc. of Canada & OMV of Austria) and are just sitting tight and showering their usual “by the way” opinions, the ones in the East (like India & China) are utilising the incompetitive industrial environment in Sudan to set up petroleum infrastructure with organisations like PetroChina and ONGC. And ‘exploited’ Sudan sits quiet, guilty for having commited crimes & violated human rights it never knew!

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

Top Articles on IIPM:-
'This is one of Big B's best performances'
IIPM to come up at Rajarhat
IIPM awards four Bengali novelists
IIPM makes business education truly global-Education-The Times of ...
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
IIPM ranked No. 1 B-school in India- Zee Business Survey ...
IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...domain-b.com : IIPM ranked ahead of IIMs