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

Friday, October 05, 2012

Indian B-Schools might fall short

Indian B-Schools are Facing an Acute Crisis of a Faculty Crunch and if Steps On War Footing are not Undertaken, Indian B-Schools might fall short of their Own Quality Benchmarks Themselves

When I teach “reverse innovation’, that is the idea I created. Therefore, I am going to teach it at a level of depth, which may not be possible for someone who reads my article and teaches from it” says Govindarajan. When Honourable Union Minister for HRD, Kapil Sibal, wrote the cover story in our sister publication The Sunday Indian this year, the dearth of faculty and the lack of focus on research were two of the key critical structural issues he brought out. And the issue is recognised not just at the high forums. When B&E stretched across India, educationists far and wide realised the issue. From professors like Deepa Shimpy (Professor at Symbiosis Centre for Distant Learning, Pune) to faculties like Prof. Krishnaswamy, Dean of Social Science for Higher Studies, Christ College, Bengaluru, the issue that top academicians shared with us was similar – the quantity and quality of faculty has gone down phenomenally since the coming up of many management institutions in India.

As per National Knowledge Commission, “The number of researchers in India was 112 per million inhabitants compared to 633 in China and 4,374 in the USA in 2002. The growth in the number of doctorates has only been a modest 20% in India during 1991-2001 compared to 85% in China during the same period.” And since it is mandatory in almost all top institutions in every field in India to hire only PhDs for the position of permanent faculty, the faculty crunch becomes inevitable. Secondly, the single biggest factor that B-schools in India do not have the requisite number of quality faculty is because of the fact that the investment in R&D in Indian institutes of higher learning is abysmally low and is thus, a deterrent to students going for PhDs and also for PhDs entering the teaching profession. In fact, as per a statistic, not even 1% of the MBAs go on to be doctorates in India. A May 2008 Assocham survey of 258 faculty members of B-schools revealed that 89% of the respondents were unable to state the country’s GDP growth rate in 2006-07, and less than 10% were aware of the subprime crisis in USA.

However, with the Foreign Universities Bill to be tabled in the parliament soon, the faculty crunch problem could be tackled with an iron hand as the setting up of foreign university campuses in India will bring many more NRI and PIO professors from B-schools in the West to India. But it’s high time that B-schools realise that however strong one’s course contents might be, until and unless the deliverer (nee, the Professor) is competent, the message simply doesn’t get across. Institutions and most importantly the government has to tackle this issue right here, right now.


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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Saturday, September 08, 2012

G’FIVE INTERNATIONAL LTD.: STRATEGIES ADOPTED AND THE FUTURE

It took time to come to India. But now that it’s here, the firm is giving nightmares to leading brands in the Indian handset market. What has made G’Five click? Critically, will it become the #2 soon? 

Clearly, G’Five is not an underdog anymore. It is not just another name in the crowd, despite the fact that there are 35 manufacturing vendors in the market today (a rise in count of 600% since January 2008). G’Five has very scientifically chosen the right target segments and product models to maximise its sales in India. In recent quarters, there has been a phenomenal rise in the sales of dual and triple-SIM cards slot phones. During Q2, 2010 alone, this category accounted for 38.5% of the total Indian mobile handset shipments – a phenomenal rise from under 1% in the same quarter a year ago (as per IDC; Nokia opposes this finding). To tap this opportunity, all the handset models that G’Five has launched in India over the last three quarters – T560, U800, F2, G9000i, et al – have all been a multi-SIM cards slot phones. The company claims that it has over 300 models in the Indian marketplace, and that it comes out with two new handsets every week.

G’Five also offers prices at points which are precisely as per the doctor’s prescription. Targeting consumers in the lower-middle segment and the bottom of the pyramid, G’Five has built a portfolio of products, which aim to provide a plethora of features, with acceptable quality and at very affordable prices (between Rs.1,300 to Rs.5,000) – an admixture that attracts both the neurologically complex urban dwellers and the simple rural populace. “The demand is so high in this sensitive segment that there is still a lot of untapped potential that G’Five can bet its future on,” explains Pankaj Karna, MD, Maple Advisors. Even IDC feels that G’Five’s dual strategy of tapping both the rural and urban markets with such offerings is what’s working the numbers. Adds Anirban Banerjee, Associate Vice-President – Research, IDC India, to B&E, “Based on our interactions with market participants, the large metros have already achieved a high mobile tele-density. Upcountry and rural markets continue to show a healthy appetite for mobile handsets. This trend should continue over the next 2-3 years...”

How a test drive turned into an insatiable hunger for covering countless miles for G’Five, is a question that would squeeze out boredom out of even the most lackadaisical of all strategists. And what makes this book an interesting read is the chapter that explains how G’Five understood the meaning of controlling costs, right from day #1. There are stark differences in quality – of both hardware and software – between G’Five’s handsets and that of the Nokias and the Samsungs. They show. There is also a difference in the manner in which G’Five makes profits. This too is not hidden to the naked eye. The company earns 99% of its revenues from exports out of China, and as such has not set up company-owned branches in any of the foreign markets where it sells, whether it be South-East Asia, the Middle-East, Africa or even South America. Its only manufacturing plant is in Shenzhen, and its lone operation centre is in Hong Kong. In short, the company gives its products to the distributors. This strategy helps to keep a check on operational and fixed costs, thereby allowing the company to enjoy high margins despite keeping the prices of its products at low levels.

A couple of decades back, a claim by any economist that China would overtake Japan as the 2nd-largest economy, would have earned him nothing but humiliating jeers. But China did prove its mettle. Today, you would not dare bet on a roulette on G’Five’s future success probability – at least, we wouldn’t!


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

Much ado about the ‘General’ @ Motors!

An IPO in the pipeline means that the US government could be well on its way to make a swift exit from running GM. This portends positive tidings for GM, which is recovering on the numbers. But a far more daunting challenge is looming up on the horizon. By Pawan Chabra

As General Motors (GM) filed for the Chapter 11 reorganisation process in the Manhattan New York federal bankruptcy court on the June 1st, 2009, the world saw another giant on its knees (literally!) after the collapse of Lehman Brothers in September 2008.

The ‘GM way’ was way off mark, and it has taken its own toll in no time for the Detroit giant; with the Japanese onslaught led by Toyota making matters worse. In fact, the demand fall experienced by the company was the worst in its history since World War 2. However, understanding the importance of the automobile industry and GM in particular for American pride, America Inc. and American jobs, the Barack Obama Administration decided not to take the Lehman Brothers way and instead keep GM alive by picking up a 60% stake in return for a significant additional oxygen infusion of about $30 billion. As the American president said on the GM restructuring initiative last year, “Our goal is to get GM back on its feet, take a hands-off approach, and get out quickly.”

The upcoming IPO of the company is a right step in the same direction – getting out. Government intervention surely saved America’s largest automaker and more importantly, millions of jobs associated with it. Undoubtedly, GM has made a speedy recovery going against what was expected by many industry experts at the outset. For the uninitiated, the company filed a profit of $2.2 billion in the first half of 2010 rather than guzzling it at a rate of $1 billion a month, the way it had been doing in the pre-bankruptcy period. As the US Treasury is reportedly looking at shedding close to 20% of its stake in the company, the fact of the matter is – while it will give investors a chance to complain by choice (unlike the earlier case where the US government used the taxpayer’s money to fund GM’s bankruptcy), the Government will continue to hold a substantial share in the company for the short-run, at least. But market watchers are of a view that government will like to move out as soon as possible.

Meanwhile, the strategy to make the China operations as a launching pad for India and other emerging markets has done wonders in no time. Apart from the fact that GM China emerged as the biggest foreign car manufacturer in the country last year, the only 12-year-old subsidiary of the company is very close to overtaking US in sales volumes. For the record, GM sold 1.83 million vehicles in China in 2009 with a whopping rise of more than 67% over 2008, while it sold 2.07 million vehicles in 2009 in US. No wonder, it has chosen Shanghai as the headquarters of its international operations.



 
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Saturday, September 01, 2012

MINING ITS WAY AHEAD

Despite a fall in profits in the last fiscal, nmdc is still among the top 20 profit makers in the country. But will the honeymoon continue for the mining giant? Deepak Ranjan Patra finds out...

It operates in the remotest of the areas in the country, surrounded and obstructed by Naxals and struggling with problems that the big bosses of corporate India can hardly imagine. But still, it gives its competitors a run for their money. Backed by such undying zeal, NMDC is one of the best mining companies in the country and it ranks 18 in the B&E Power 100 list, despite having a year that can be called disastrous for the company.

On the face of it, the results announced by NMDC for the last financial year may seem deceptive for many as profits for the particular fiscal year stood at `34.47 billion, down by over 21% from `43.72 reported in the previous year. But then, the fall in profits resulted more due to external disturbances that caused operational roadblocks for NMDC. As Kumar Raghavan, Executive Director (L & CC), NMDC, says, “In the beginning of the financial year (May, 2009), the Essar pipeline was blasted by the Maoists at several places, placing NMDC under great strain on evacuation of iron ore.” The kind of pressure that was created by the event could be understood from the very fact that the particular pipeline was one of the evacuation means for nearly one-third iron ore for the company’s largest projects at Bailadila, Chhatisgarh. Though the company tried its best to run the show smoothly, the event resulted in a drop of around 12% in the company’s iron ore sales to 25 million tonnes from 28.52 million tonnes in the previous fiscal.

However, the management of NMDC showed extreme character to brush aside the external hurdles during the year resulting in one of the best quarterly results in the company’s history during this period of the current fiscal. NMDC’s Q1 profit increased by a mind-boggling 94% to `15.04 billion from `7.74 billion in the year-ago period. Sighting significant rise in domestic sales as the key reason, Rana Som, CMD, NMDC said, “Improved physical performance coupled with higher prices, transparent pricing systems and improvement in evacuation resulted in the company posting a high net profit in the first quarter.”

Another reason for its success in the recent years has been NMDC’s tremendous ability to operate at the lower end of the cost curve. As explained by Paresh Jain, Analyst, Angel Securities, “At $7.2 per tonne, NMDC’s operating cost is one of the lowest in the global iron ore industry. The major reason for such low costs is the proximity of the company’s mines to ports and railways.” Moreover, to strengthen the advantage further, NMDC is now planning to build a 10 million tonne slurry pipeline from its Bacheli project to the Vizag port, which, as expected by Paresh, would help the mining company maintain its margins.



 
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Thursday, August 30, 2012

THE CAPTAIN OF THE SOUTH KOREAN SHIP

AFTER BEING THE CLEAR #2 IN THE INDIAN PASSENGER VEHICLE SEGMENT FOR OVER 11 YEARS, THE TIDE SEEMS TO BE TURNING IN FAVOUR OF ITS CLOSEST COMPETITORS. CAN H. W. PARK, THE CAPTAIN OF THE SOUTH KOREAN SHIP, STEER IT CLEAR OF THE MANY ICEBERGS ON THE WAY? BY PAWAN CHABRA

The market leader has even announced a plan to stage a comeback in the Indian market, starting with the launch of the Alto K10, coupled with five CNG models (of the SX4, the EECO, the WagonR, the Alto and the Estilo models), and the automatic A-Star. But even Shashank Srivastava, CGM – Marketing, Maruti Suzuki India, confesses, “A lot depends on how many units of the Nano does Tata Motors plan to sell in the Indian market.”

The issue of capacity crunch is also keeping many Hyundai investors on tenterhooks. Currently, its Sriperumbudur (Chennai) plant, with an annual manufacturing capacity of 600,000 units, is operating at full capacity. But as insiders quote, the auto major has an option of stretching it to 670,000, by modifying the assembly lines. The worrying fact is – Hyundai has not revealed plans to do that. Hyundai’s Saxena says, “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.” But despite this, Park has good news for his investors.

Hyundai will land some hard punches on its competitors with the launch of its small car (reportedly scheduled for 2012), that will be positioned in the A2 minus segment, which would then be in direct competition with the Alto. The product is expected to bring high volumes to the company, which will then help it claw back market share in the domestic arena. Park reveals, “We are in the development stage of the model and it is going very well. However, I can’t comment on the time frame of the launch in the Indian market,” says Park. To this, Saxena adds, “While our small car will not compete with the Nano, when we are looking at such a model, we are looking at high numbers...”

Most likely, even though Tata Motors will again displace Hyundai as the #2 player for some more quarters to come, one cannot deny that Park still leads one of Hyundai’s most profitable overseas subsidiaries, which is also the #1 exporter of passenger cars from India, with exports of 285,658 units in FY2009-10 (64% market share in exports, while Maruti and Tata command a much lower 33.1% & 1.5% respectively). In fact, production figures prove how after Hyundai China (production volume of 570,309 units in 2009), the Indian subsidiary, with an output of 559,880 units in 2009, is the most important for the Chaebol.

Whether or not Park manages to retain the silver sceptre, the domestic market will remain key to Hyundai’s future. With the domestic market size growing by the day, fragmentation is inevitable. He has to focus on profitable volumes (and not ranks), with the key adjective being ‘profitable’ (given that currently, for every Nano that Tata Motors manufactures, it makes a loss due to capex depreciations). Park’s job as a CEO is to keep the volumes high and profits thick. For now, he is doing that. Tata Motors may focus hard on the Nano and critics may write volumes about how the product will ensure a second spot for Tata Motors, but experts opine that such low-priced products with wafer-thin margins, can hardly give companies a sustainable lead. There will be much more botheration for Park over the next couple of years in the form of Bajaj-Renault’s ultra low-cost car, FIAT’s model below the Punto and Volkswagen’s small car. But he needs to remember that increasing capacity is key, focusing on the Indian market with good margin products is important and keeping his investors happy (with profits) is religion. And for the sake of this religion, Park should not fret over giving away the runners-up trophy.


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Friday, August 24, 2012

Fathers in India are still pitted against rigid ancient laws

A hundred years after Father’s Day was commemorated, fathers in India are still pitted against rigid ancient laws and struggling for equal right over their children...

“It is almost impossible for Indian fathers to get custody of their children,” said Satya Kumar, Founder of 498a.org. “The Hindu Marriage Act is of 1955. The laws are very ancient. When the laws were written, only 1% of the women worked while now about 25% work. Kids in the custody of working mothers are no better taken care of than kids living with fathers. The mindset of people needs to change. There should not be women’s right and men’s right but the government should implement common family rights,” suggests Kumar.

“Father’s day, Mother’s day or any other such day is just another opportunity to show your love for each other. At times, the occasion can present a chance to patch-up things, to clear the muck and start things afresh,” says Dr. Sanjay Chugh, Senior Consultant Psychiatrist. Perhaps that’s why one of the demands being made by AIMWA is that ‘when a person or couple approaches court for divorce, counselling of the parents by professional counsellors should be given first priority.’

This Father’s Day, let’s hope that it doesn’t take another hundred years for fathers to get their due.


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Wednesday, August 22, 2012

The times they are a-changin’ and established norms and beliefs are now being challenged...

On questioning him about a different statement issued in the media, Maulana Abdul shot back saying, “I don’t understand how this fatwa was leaked to the media. We have explained our stand that according to Islam, Muslim women cannot be together with men without purdah. Those who do not follow this are not true Muslims. But this is just a religious order. We can definitely not punish anyone who chooses not to follow the religious rules. We have issued several fatwas in the past. Our job is to give advice based on what Islam says. To follow it or not is up to the individual.”

Centuries-old rules pitted against evolving times are probably at the heart of this imbroglio. The Belgium government’s ban on the burka had created an uproar among Islamic groups. Says Maulana Abdul, “People should be allowed to do what they wish to, if it’s not causing any harm. How can you impose a ban on anything? This rule might be unacceptable to many Muslim women. This is also injustice. It’s unfair.” Well, true. But why should there always be resentment with acts of liberation? For instance, the controversies created around Sania Mirza’s skirt, Salman Khan attending Ganesh Puja, MF Hussain’s paintings, Shiv Sena bashing youngsters who celebrated Valentine’s Day. Then again when a lot of support came streaming in for the Muslim, Lebanese-born Miss USA, Rima Fakih, who paraded in a bikini on the ramp, there’s hope enough to believe all is not lost yet!

Every religion believes in peace and harmony and eventually it’s up to both, us and the custodians of every religion to let it not be misjudged and misunderstood.


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Tuesday, August 21, 2012

Losing power in transit

T&D losses and power theft have to be addressed in a flagrantly strict manner – arrest the power stealers and publicise their conviction

In April first week, Delhi Chief Minister Sheila Dikshit promised that there would be “no power cuts in the capital this summer.” This promise held well for one week in some localities. In other states, the less said about power the better.

As per a recent report, the Planning Commission has revealed that the combined losses of public sector discoms, which were to the tune of Rs.40,000 crores in 2009-10, could swell up to a shocking Rs.68,000 crores in the current financial year. It has been widely seen that the reason for such huge losses is because of faulty T&D (transmission and distribution) systems. The fact is that more than one-third of electricity supplied gets lost in T&D and a similar substantial part is stolen. Presently, the T&D losses can go up to 40-50% in many states; compared with China where the figure is less than 3%. India’s T&D losses are the highest in the world as per a report by WRI.


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Tuesday, August 14, 2012

Sun’s Wonder Drug!

Despite litigations, Sun Pharmaceuticals has managed to give its investors the largest m-cap growth by steven philip warner
 
This is bad news for those sceptical about investments in pharmaceutical stocks, and a bigger disappointment for those doubting the potential of profits contributing to shareholder value. Sun Pharmaceuticals, after becoming the highest profit-making pharmaceutical company in FY 2008-09 (with net profits of Rs.38.76 billion), became the largest wealth creator in the sector in FY2009-10: its m-cap increasing by 41.4% to touch Rs.373.01 billion (as on March 31, 2010).

Uday Baldota, VP – Investor Relations, Sun Pharma talked to B&E, “Customers, employees and society are at the core of our existence. Having extremely satisfied customers, being served by high performing employees meeting the unmet and evolving needs of the society have been key to delivering superior returns to our shareholders...” Notwithstanding that, there have been some negative reactions to the company stock, considering that just a few days back, it lost the right to market one of its top-selling drug, Pantoprazole in US (which as per a New Jersery district court was infringing Wyeth’s patent rights).

Sun has even battled out many such litigations in US in the past one year. All this should have wreaked havoc on the Indian pharmaco in the US market (which contributed to 35.4% of its annual revenues in FY2008-09)... It didn’t! Rather, Sun’s stock has for many years now, outperformed both the Sensex and the Nifty.


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