Monday, September 29, 2008

Heritage entry fee hike in rupee

Tour operators are opposing the government's decision

India’s top tour operators feel put down by the government's move to make foreign tourists pay in Indian currency. According to the decision foreign tourists visiting monuments protected by the Archaeological Survey of India (ASI) will now pay the entry fee in rupee. Says an outraged Subhash Goyal, Chairman, Indian Association of Tour Operators (IATO): “Tour operators finalise their clients’ itineraries well in advance. Far from helping us, a fee hike would only create problems.”

From now onwards, each visitor will be charged Rs.250 or about $6 for giving a visit to a World Heritage Site such as the Qutab Minar, the Taj Mahal or the Ajanta and Ellora Caves, and Rs.100 for other monuments. This is a change from the previous dual tariff system under which the fee was $5 for World Heritage Sites and $2 for protected monuments such as the Red Fort & Purana Quila....Continue

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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Saturday, September 20, 2008

A woman on top

She is one of those rare women executives, who have thrived in a man’s world. And she has helped HDFC perform better.
Last week, as Renu Sud Karnad, Executive Director, HDFC, winged her way to yet another visit to the US, she had already taken a decision that thrilled the hearts of individuals who had taken retail loans from the corporation. Despite the fact that the Reserve Bank of India refused to lower the prime lending interest rates, Karnad had announced that HDFC would lower its home loan rates. Her’s was one of the first financial institutions to do so in recent times, when home loan rates had zoomed and lenders had been saddled with huge EMIs or increasing repayment periods.

In fact, Karnad, in her personal capacity, feels that interest rates have already peaked, and there are no macro reasons for another hike. But she was unwilling to say it on record. Instead, she said that RBI’s Governor has the unenviable task of balancing growth and inflationary pressures. “RBI Governor Y. V. Reddy is doing a great job, and has managed to achieve the objectives that any central bank would wish to. India is on a sustained growth path, and inflation seems to be under control,” she explains.

In the past year or so, Reddy has been worried about the unusual rise in asset prices across categories, he has felt that there is a bubble building up in sectors like real estate, and has tried his best to control the increase in prices without sacrificing on the growth front. For example, he has tightened the norms for real estate and home loans, thereby creating a sort of a slowdown at least in the small towns. But, at the same time, he doesn’t want investments to slow down considerably in the housing or real estate sector.

It is in this regard that Karnad’s move should be appreciated. If banks and institutions like HDFC can still lower interest rates, it will still spur demand despite the tight monetary policies of the RBI. It will create a win-win situation that will help the retail consumers as well as the policy makers. It will also turn out to be a relief for individuals, who have been saddled with huge outgo as home loans rates have steadily climbed from less than 8% to over 11% in the past couple of years.

Over the past many years, such decisions have defined the achievements of Karnad, who has maintained HDFC’s Numero Uno position in the housing sector. But it has not been an easy climb to the top of the corporate ladder. Especially for a woman, who has fought it out in a hitherto man’s world of Indian financial and banking services. “I was just lucky. I joined HDFC at the right time. So, it was slightly easy for me to reach the top. May be, the women who have joined in recent times, or my daughter if she joins the corporate world in the near future, won’t find it so easy,” explains Karnad.

What she means is that when she joined HDFC nearly three decades ago, the state-owned entity was on a growth path. So, anyone who joined at that time inevitably grew with the company. It was like joining a startup. Since you were one of the first to join, you participated in the successes – right from getting employee stock options, whose value jumped after the initial public offering, to grabbing a designation as you were one of the few who understood the philosophy and the strategy of the company.

eling in the corporate circles that women are better workers than their male counterparts. A senior woman executive contends that women tend to work harder as they have to prove that they can be as good, if not better, than men. So, HDFC sources explain how Karnad spent more hours in the office. In her early days, there were no fax machines, laptops and Blackberry mobiles, so one had no option but to be in office to receive communication on the telex machine.

In the same vein, women are known to be great multi-taskers. Unlike most men, who think and act sequentially, who complete one task at a time, women can tackle 4-5 issues at the same time. One of the reasons may be that women do it all the time at home – look after kids, listen to their in-laws, interact with their husbands – all at the same time. Therefore, they are adept at solving 4-5 problems at the same time. In financial services, where everything has become globalised, and where problems crop up at regular intervals, the art of multi-tasking turns out to be an advantage for women executives.

For Complete IIPM Article, Click on IIPM Article

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

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Tuesday, September 02, 2008

High-end diesel technology

Now, the world’s cheapest car moves into the third gear. With access to high-end diesel technology, and several options to locate its ‘cheap car’ factory (or assembly units), the Tatas seem to have got their back-end in place. Simultaneously, they had to look at the front-end; after all, Tata Motors wanted to sell the Rs.1 lakh car in as many markets as possible. It was meant to be a global car for global consumers. It is in this context that the Jaguar-Land Rover deal will immediately help it to tap the European market.

The Jaguar-Land Rover buyout becomes critical as the Tatas have failed to make a mark in foreign markets in the past. Prominent signage on the Team Jordan’s Formula 1 car preceded Tata’s exports of Indica to the UK; the car was marketed under the City Rover brand name. Even though the car did not do too well, it did give Tata Motors a foothold in Europe. Today, the company has agreements in various European nations to assemble the Tata Safari SUV, among other products. Sponsoring Narain Kartekeyan, India’s first F1 driver, was also a step to establish the Tata brand in Europe.

As you have probably realised, the Rs.1 lakh car has moved into fourth gear, and you are cruising at 60 kms an hour. But just drive along, as the puzzle is still not complete. The last few pieces have to still fall into place. Only then will you be able to figure out the real design behind the several decisions taken by Ratan Tata to turn his ‘small car’ dream into reality.

Despite being loss-making (see box), Jaguar and Land Rover are perceived as exclusive and high-end European brands. Even if Tata Motors gives full management autonomy to the acquired businesses, and sells their products the same way as Japan’s Toyota does with Lexus (without lending its name to reduce any form of brand dilution), it will still earn brownie points. The two European brands will help establish Brand Tata, at least in Europe. They will additionally help the Indian car maker to combat any moves by China to manufacture its own version of the world’s cheapest car.

“Tata Motors has a better image then the Chinese as it has a history of manufacturing, and has already acquired brands like Tetley and Corus,” says Autocar India’s Ashish Masih. It’s time to move into fifth gear. Tata Motors now has the technology, low-cost manufacturing options, access to developed markets, and a globally-recognised brand name. It is all set to launch the Rs.1 lakh car, which will be unveiled at the Auto Expo. Every cog in the design-manufacturing-marketing-branding wheel is in place.

So, while the world’s cheapest car is breaching the 80 kms an hour mark, it’s time to take a ride in another vehicle, the Tata Motors’ SUV. For years, Tata wanted to do an Indica with his range of SUVs. But Tata Sumo and Tata Safari have never been perceived as low-cost, entry-level, but stylish vehicles. Another Indian competitor, M&M, has done wonders with its Scorpio. Foreign players like Toyota too have fared much better. In the high-priced SUV segment, Tata hasn’t been able to make any inroads.

Land Rover will be a coveted catch for Tata as the brand represents one of the most-sought after SUV. The recently launched Range Rover and the updated Disco models have done well and can provide Tata with a platform to ride the international markets. Tata Motors may sell its products along with Land Rover’s, thereby amplifying both the visibility and reach of the indigenous SUVs. Before you think that it is not worthwhile to associate with a loss-making brand, listen to Ford UK’s John Gardner.

“The Jaguar-Land Rover business has been a profitable one in recent times; 2007 has been best ever year for Land Rover, better than 2005 and 2006.” This implies that Land Rover can effectively be used as a brand extension. Masih agrees, “Tata Motors will get access to better technology from Land Rover that can help the former to reposition its SUVs in higher segments.”

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:-
IIPM to come up at Rajarhat
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The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
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IIPM Delhi - Indian Institute of Planning and Management New Delhi ...domain-b.com : IIPM ranked ahead of IIMs