Showing posts with label IIPM INDIA. Show all posts
Showing posts with label IIPM INDIA. Show all posts

Saturday, September 08, 2012

US: CHIEF OF STAFF

Agreed that he took charge at a time when the economy was struggling and that he was faced with an ambitious agenda (that of pushing through key reforms as promised by Obama in his Presidential campaigns which emphasised on Hope and Change). The hard-charging, high octane, arm twister Rahm, an enforcer who had a reputation of getting things done, was entrusted with the job of the White House’s Chief of Staff for steamrolling the change Obama planned. And Rahm – or Rahmbo, as he started getting nomenclatured came to be better known as being a foul-mouthed showman and backroom infighter, who managed, mauled and massacred dissent by standing on tables and screaming; of late even being viewed by many party activists as an instigator of a feud that was dividing the party.

Things went awry in August 2009, when Rahm, in one of his weekly strategy session featuring Liberal groups and other aides (who were planning to air ads attacking conservative Democrats who were balking at Obama’s healthcare overhaul), was back to what he was best known for. He responded to the criticisms by calling the liberal activists as “F***ing retarded.” Although that particular instance was not the sole reason, that presumably was the tipping point, where members got push converted to shove and demanded a port of departure call on Rahm’s war-carrier. David Weigel, Political commentator at Slate, based in Chicago, had this to say to B&E, “After nearly two years of Rahm Emanuel, liberals are pretty much confident that he was a paper tiger, a drudge who never missed an opportunity to undermine the progressive agenda and a man whose alleged formidability never rendered to big, substantive triumphs over Republicans.”

My favourite vaudeville performer Will Rogers once said, “There are two theories to arguin’ with a woman. Neither one works.” You could say that while arguing with Rahm too, where thanks purely to Rahm’s whimsical and fanciful style of debating and arguing, the President had a roller-coaster ride in the White House in the last 20 months. Be it Rahm’s crossing swords with Nancy Pelosi (speaker of the House of Representatives), or his failure to press home the President’s political message in the way Obama wished, or his handling of the economy and Wall Street regulation, Rahm’s pugilistic approach was solely blamed by commentators for delivering defeat. The President needed a Chief of Staff who had the wisdom to help him chart out a bold and progressive path. Someone who could successfully play the role of the President’s gatekeeper, like what James Baker did for Ronald Reagan. Rahm (who also doubled up as the President’s top political adviser and legislative strategist) at least did the gatekeeper part pretty well. But given that the mid-term elections in November would be a bloodbath for Democrats (in all probability, the elections could transfer the control of the House and even the Senate from Democrats to the Republicans), Rahm’s exit was strategically planned to minimise losses. Simply put, this is the return of favour that has been meted out to Rahm for the mistake he committed of pushing Obama too far to the middle.


Source : IIPM Editorial, 2012.
For More IIPM Info, Visit below mentioned IIPM articles.
 
IIPM : The B-School with a Human Face
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Tuesday, September 04, 2012

Lehman is history...and future too

On the 2nd anniversary of the Lehman Brothers debacle, what is evident is the fact that economies have learnt very little from history. B&E does a quick recap of the occurrence, the domino effect and the current global economic situation By Asif Ahmed

September 15, 2008. Henry Paulson, the then Secretary of Treasury, United States, had just been informed of the impending Lehman collapse, when he excused himself from his colleagues to make a most important call. That call went not to the President, but to his wife, Wendy Judge, to whom Paulson said in a completely mellowed down voice, in contrast to his imposing 6 ft 4 inches physique, “I am afraid.” Paulson later termed the day as the most ‘horrific’ and ‘saddest’ day of his life.

In the absence of an acquirer and US federal guarantee, Paulson announced that US Treasury couldn’t locate a suitable borrower for Lehman Brothers, thereby purging billions in dollars and putting thousands of employees at risk. What he didn’t know then was how many billions were going to be affected by this collapse.

A month later in October 2008, in response to the subprime mortgage crisis, The Emergency Economic Stabilisation Act of 2008 was passed which authorised United States Secretary of the Treasury to spend up to $700 billion to purchase distressed assets, especially mortgage-backed securities, and make capital injections into banks. A year-and-a-half later, the Euro zone too had to adopt a similar bailout, called the European Stabilisation Mechanism, triggered by sovereign crises.

So, a few went under Chapter 11 bankruptcy reorganisation, a few more under Chapter 7 liquidation, and the topography of US financial system changed forever. On the second death anniversary of Lehman Brothers – and hundreds of other banks, which died in the hope of receiving a few million dollars of that $700 billion – the question that needs to be asked: Is the financial world a better place to live in, now? How much ground have we covered in terms of financial regulation so as to avoid future shocks?

2008 BC and 2008 AD
If one were to define the timeline of the financial world, the best way to line it up would be 2008 Before Crisis and 2008 After Destruction. The advanced economies were the first one to react and plug the loopholes that left big holes in the pockets and balance sheet of banks and central banks. Paul Volcker, former Chairman, Federal Reserve, who was hired to figure out a solution for the 21st century problem, had a simple military plan – he asked banks to curtail proprietary trading, private equity and other ‘risky’ investments that banks make with their own capital. On a more global platform, multi-lateral financial institution like the International Monetary Fund (IMF), Financial Stability Board (FSB) and Bank for International Settlements (BIS) worked in tandem to foster a more healthy financial system, the most recent of which is recommendations of Basel Committee of Banking Supervision (BSBS) and FSB to hold more capital. The BCBS has asked lenders to have common equity equal to at least 7% of assets, weighted according to their risk, including a 2.5% buffer to withstand future stress. Banks will have less than five years to comply with the minimum ratios – 4.5% common equity and 6% Tier 1 until 2019, to meet the buffer requirements. Banks are currently required to have common equity equal to 2% of total assets and 4% Tier 1 capital.


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Saturday, September 01, 2012

SUSTAINABILITY IS OUR KEY TO SUCCESS

Rana Som, CMD, NMDC, talks to deepak ranjan patra about what makes NMDC the most successful mining company in the country and what are its future plans...

NMDC has been amongst India’s top 15 most profitable companies for quite sometime now. What is the recipe for your success?
Sustainability is the key word for us. NMDC started as an one–product, one–customer company but has successfully diversified into multi–product, multi–customer company. We ensure that the price of our major product namely, iron ore, is not overpriced. This pricing mechanism helps us in increasing our customer base and thus the bottom-line of the company.

You had proposed a 3-million tonne Greenfield steel plant in Chhattisgarh. How has been the progress? How valuable is it for NMDC, considering the fact that two of your critical mines, Bacheli and Bailadila are close to the proposed site?
The proposed 3 MTPA integrated steel plant in Chhattisgarh is in an advanced stage. The company has already completed the process of land acquisition. The work has been divided into various packages and the awarding of various packages would start by October this year. After that it will take around 40 months for products to start rolling out.

Do you have any other plan as part of your forward integration strategy?
We also plan to have a steel plant in Karnataka, but it will be a JV with another organisation. In addition, we are trying to put up a slime-based pellet plant (a new iron making process utilising low grade fines is in the offing with Japanese collaboration) at Donimalai in Karnataka.

NMDC was looking for foreign partners for the Karnataka plant. Any development on that front?
Regarding foreign partners for the proposed plant in Karnataka, we are in the process of negotiations and things are developing at an appreciable pace.

Any other global plans...
Yes, we are actively pursuing acquisition of properties either on a standalone basis or in JV for securitising power (Coal, both metallurgical and thermal), iron ore and manganese in regions like South America, Africa, Australia, Russia et al.


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Thursday, August 30, 2012

Arvind Saxena, Director – Sales & Marketing, Hyundai Motors India

Arvind Saxena, Director – Sales & Marketing, Hyundai Motors India, explains to B&E why competition is no threat to Hyundai in India, and why Hyundai does not need to worry about capacity expansions

B&E: Can we say that the second slot is not that important to Hyundai as compared to creating a profitable business environment?
AS: No, I am not saying it is not important. I am saying that the second rank is not the only thing that one works for. We are here to create a bigger brand. We are here to create a large pool of satisfied customers and the second slot is incidental. No one works for it. We will be more than happy to have a large satisfied customer base.

B&E: It has been widely reported that the company is expanding its capacity by 70,000 units. Have you already done that or is it an option that can be explored?
AS: It is an option that we have not exercised so far. But if there is more demand for our products, we will possibly look into it. But I don’t think there will be a need for capacity expansion this year, perhaps not even in 2011.

B&E: The company has focused equally on both the exports and domestic market so far. How do you see the ratio of domestic sales and exports changing, say, five years down the line?
AS: The domestic market has always been a priority for Hyundai in India. But when we realised that the demand here was insufficient, we exercised the option of making the most out of exports. This year, the domestic market will account for about 56% of out total unit sales. In five years time, this percentage could grow to 65-70%. Going forward, we will naturally maintain a higher ratio of production for domestic consumption.



 
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Wednesday, August 29, 2012

A jog down memory lane

A nostalgic Jennifer Aniston recently recalled the fun she had shooting for the famous American sitcom F.R.I.E.N.D.S. She recollected moments of the ‘Chick and Duck’ episode, the one in which she’s bursting with anger, and the time when she was pregnant in the show. Incredulous at how people still watch the show almost everyday, she innocently asks how they do it, and where do they find it, for she’s unable to find it herself! Well, it’s all on the net dear... including the blooper shows!


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Friday, August 24, 2012

Working non-stop could be the ladder to a promotion and a host of health problems...

In India, to a very large extent, men are still considered the bread-winners of the family. And as most of the men reach their 30s, they noticeably begin to look much older than their actual age. While women still manage to maintain their beauty and health, men start developing a paunch, their hair begins to grey and many also start experiencing major hair loss. Makes one wonder if men tend to neglect their health and ignore the warning signs, or whether they are simply less aware than women. “Both. Also, men are more prone to health problems because they easily resort to drugs and alcohol. I’ve had cases where wives have come to ask for help for their husbands. But unless the person who needs help does not visit, I cannot even recommend anything! Men, by nature, are more hesitant in taking medical help. Also, women socialise more, talk more and show their emotions more than men, which helps busting their stress. And this is also one reason for them having a longer life-span”, explained Dr. Singh.

Time travelling to a relaxed stress-free world is unfortunately not possible. The world stops for none and there’s little one can do but to keep coping-up with the changing times, but one must remember that this must not be at the cost of one’s health. It isn’t just coincidence that one of the most popular adages about health is – ‘Health is Wealth’!


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Wednesday, August 22, 2012

At peace with that ponch? You could be slowly ‘inching’ towards dementia!

The waste-hip ratio differs in Asians and Europeans. If this ratio is abnormal, it would signify that the visceral fat (unhealthy abdominal fat) is more, which damages the arteries and increases the chances of a stroke by five to six times if coupled with diabetes and hypertension. Although a patient might not have a history of stroke, he could still suffer from dementia at a certain stage. Like in the case of treatable (preventive) causes such as hypothyroid, epilepsy, alcoholics or any accidents in which there might have been a brain haemorrhage, one might suffer from dementia. There isn’t a specific medication for dementia as such because in dementia the cause is treated to the extent possible,” says Dr. Mrinal Bhargava, General Physician (Resident Neurology). Dementia not only affects those who are too lazy to lose weight, but those who are fit as a fiddle may also suffer from a deadly neurodegenerative disease like dementia; like in the case of boxers. Due to repeated concussions they develop ‘Chronic traumatic encephalopathy’. It is also said that famous boxers and athletes such as Bobby Chacon and Jerry Quarry had suffered from this disease.

Being reduced to the state of a vegetable and being dependant on others for everything is not living but merely existing. The least one can do for oneself is to take control of those love handles, otherwise they could leave you with no control over your life.




 
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Tuesday, August 21, 2012

Indian cui‘sin’e

Prosecution is a must for control

India has a very strong law on food safety that sets down food standards and dispenses heavy penalties on infringers. The Food Safety and Standards Act of 2006 includes specifications for ingredients, contaminants, pesticide residue, biological hazards, labels and others. In short, it takes all possible measures that are required to ensure safety of food in the market. Yet, it is common knowledge that people die consistently in India due to drinking adulterated milk, go blind or get paralyzed due to drinking adulterated alcohol and children are regularly taken ill with food poisoning after consuming mid-day meals at school, supplied by the government! Even temples are not safe (they are, after all, managed by humans), as devotees are taken ill or poisoned due to some adulterant.

Despite the fact that we have stringent laws to deal with it – hardly anybody is ever punished or prosecuted! The biggest culprits of these malpractices are food contractors and suppliers, to whom government agencies place their orders.


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Monday, August 20, 2012

A simple issue of timing

Godrej Industries has suddenly become more enthusiastic about its retail plans, especially in new concepts of retailing (like gourmet food). Is there any radical plan we’re missing or is this it? by Angshuman Paul

It was in January 2006 when Adi Godrej, Chairman of the Godrej Group announced an investment of Rs.700 crore for the expansion of ‘Aadhar’ (chain of supermarkets in rural India) – part of Godrej Agrovet Ltd, and an additional investment of Rs.200 crore for the expansion Nature’s Basket – a gourmet food retail chain. The five-year plan was to take the number of Aadhar stores from 18 (in 2006) to 1,000 across the country and scale the footprints of Nature’s Basket from only three in Mumbai alone to 100 in metros by 2011. Today, after 40 months, while 70% stake in Aadhar has been taken over by Kishore Biyani-owned Future Group (in 2008), the progress at Nature’s Basket cannot be called anything better than sluggish with the current count of outlets standing at just 10 (7 in Mumbai & 3 in Delhi).

The detail – that the Indian retail industry is now a mammoth Rs.9.3 trillion with organised retail at only 4% - has apparently not been lost on the Godrej group. Company officials tell B&E how now, after identifying gaps in the retailing of home and office furnishings and equipments, Godrej plans to take the count of Lifespace stores from the current 51 to 90 by the year-end. The group has allocated Rs.16 crores towards advertising and promotion expenses. Would the fact that not many retailers are paying heed to the retailing of home furnishing and office equipment (except for Biyani’s Hometown, which is lagging behind on a similar model and is leveraging its finances from the other retail businesses of Future Group) make a difference to their highly niche offerings? Would Godrej, in the coming periods, expand the products portfolio to reduce the risk quotient? Godrej spokespersons reject the proposition. “We are not into the trading business and we won’t retail any other brands. And if we can offer everything to the people who are setting up their homes, why do we need other brands,” argues Shyam Motwani, VP & Business Head, Retailing Division of Godrej & Boyce Mfg. The company plans to reach a turnover of Rs.300 crores by the year-end from Lifespace sales alone.

At the other side of the Godrej strategy map is Nature’s Basket – their gourmet retailing arm. Nature’s Basket has tied up with many foreign brands and provides a wide array of food & beverages products. That is apart from selling the various food products of Godrej itself. But the issues of being extremely slow on the expansion plan hit here too. Mohit Khattar, MD, Godrej Nature’s Basket, defends the approach to B&E, “The type of format that we are offering is very exotic and we did not want to roll out stores unless we had completed our ground work.” It’s true that Nature’s Basket didn’t have to shut stores like its rival Le Marsche had to in Mumbai – after aggressive retail plans forced it to backtrack. But then, it’s also true that for every Le Marsche, there’re three other competitors who succeeded much better than Godrej.


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Tuesday, August 14, 2012

Times Come & Go, Basics Stay

Whether its about employees, shareholders, customers, suppliers, or India at large, Infosys realises that it has a huge reputation to protect. So far, it has been able to shoulder the responsibility well. Infosys talks to B&E... by Virat Bahri

Their situation was extremely difficult last year, when Infosys announced increase in variable pay and freezing of salary hikes and promotions in April 2009; citing the devastating impact of the recession. And that makes the company’s decision to implement 13-17% salary hikes across the board very special for Infosys employees.

When you are one of India’s most respected IT companies, you obviously have a reputation to live up to. Moreover, you can ill afford to take any decision without the big picture in mind. Infosys demonstrated that even last year with respect to its HR policy. Salary hikes were frozen, but the company did meet its hiring commitments that it had made across campuses and build the bench, as Kris tells us. It was an investment in retaining its reputation, for that’s what matters in the long run for them.

Chairman & Chief Mentor N. R. Narayana Murthy expresses his view about the purpose of an organisation thus, “The primary purpose of corporate leadership is to create wealth legally and ethically. This translates to bringing a high level of satisfaction to five constituencies – customers, employees, investors, vendors and the society-at-large.” Even as far as shareholders are concerned, Infosys is more concerned about long term shareholder expectations as opposed to short term. The company follows a defined set of standards on its dividend policy which mandate that the company cannot pay out more than 30% of its post tax profits as dividend, a policy which the board reviews periodically. Also, the dividend is declared twice a year, once in October post announcement of Q2 results and once during the AGM post the announcement of annual results. The interim dividend paid for FY 2009-10 was Rs.10 per share and the final dividend proposed is Rs.10 per share; which is expected to be approved at the AGM.


 
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