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

Saturday, October 06, 2012

Can Ratan Tata Salvage his Nano Dream?

The Small Wonder has been Struggling to Match The Demands of its Target Group after The Settlement of the Initial Hype. The Storm is over. B&E gives a Detailed Analysis of The Past Issues and The Future that Lies Ahead for The Nano

Though the small nano uses less gasoline than many larger cars, the enormous potential numbers could mean an equally enormous environmental impact, an exponential rise in carbon emissions as well as other kinds of pollutants. The United Nations’ top climate scientist, Indian economist Rajendra Pachauri has said he is already “having nightmares” about precisely this scenario

”This was a prominent blogger writing soon after the launch of the Nano in January 2008

And of course, there was the brouhaha over the traffic jams, the pressure on Indian roads and what not. I remember my Editor-in-Chief Arindam being slightly baffled by the extraordinary hype generated in Indian as well as global media in January 2008 when a proud and beaming Ratan Tata wowed everyone by saying “A Promise is a Promise” while unveiling the Nano at the Auto Fair. The promise he was referring to was the one to keep the price of Nano at Rs.1 Lakh(0.1 million). Arindam was baffled because he was perhaps the only person who had written a stinging article in 2007 lambasting Tata and West Bengal Chief Minister Buddhadev Bhattacharya for the ugly mess at Singur, the original site chosen for the Nano factory. He had also logically argued how and why a Rs.1 Lakh(0.1 million) car was actually a chimera. Of course, not many alleged pundits of corporate India paid much attention back then. I remember journalists – who otherwise display better sense on some rare occasions – forecasting that Indians will buy more than 1 million Nanos a year very soon.

Sooner or later, reality has a nasty habit of catching up with hype. In early October this year, I sent a fairly long SMS to the Editor-in-Chief basically saying that it is perhaps time for a big story on the Nano since there were persistent and unflattering reports about the actual volume of sales of the Nano. In my SMS, I pointed out that July 2010 was the best month ever for the Nano with sales of 9,000 units. And sales started heading south after that – even though the Indian auto industry was in the midst of an unprecedented boom. We both agreed that it was time for an analytical story on the seemingly inexplicable inability of Tata Motors to increase volume sales of the Nano despite the hype around the brand.


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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Wednesday, August 29, 2012

Style Police catches Sonam!

Sonam Kapoor’s co-star in Saawariya, Ranbir Kapoor, consciously toyed with the imagination of women as he danced with just his towel on, but Sonam herself recently came close to some inadvertent skin-show. At a promotional event organised for her upcoming film Aisha, Sonam nearly had a wardrobe malfunction incident, when it was noticed that she was having a rather tough time keeping her pants on. For someone who has been working very hard on being a style diva, such an event would’ve been disastrous!


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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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Monday, August 20, 2012

Big, fat, hairy & audacious...

Quite a few global IT giants have proved that it takes just one big killer product or application to enter the Fortune 500 league. Finacle was supposed to be that for Infosys! Today, it contributes just about 4% to Infosys’ revenues. What went wrong? by Virat Bahri

The reputation of a thousand years could be built in one hour, as per an old Japanese proverb. Or one product, when you look carefully at the leaders of the technology industry today. Consider this: Microsoft for Windows, Google for search engine, Oracle for its database application, Apple for its iPod (whose success led to their latest killer product – the iPhone) and SAP for its SAP ERP software.

If one analyses the contribution of these iconic products to the revenues of these companies, one can conclude that while a diversified product portfolio is important, one big, formidable and audacious play is all a company needs to move from being good to being great.

Apple to apple comparisons (pun unintended) with Infosys may be a tough call, since the company has charted a different growth path. But when the company’s core banking product Finacle (launched in 2000) begin to gather rave reviews in the Indian, and the global banking space, many speculated that this was the killer application that would take Infosys into the league of greats.

If you measure Finacle by that yardstick, you are liable to be disappointed; since in revenue terms, the product’s contribution to Infosys’ total revenues is just around 4% for FY 2009-10! So it is not Google Search or Microsoft Windows. But a combination of vision and a certain degree of good fortune have been instrumental in Finacle reaching a turnover of $208 million in 2010 from $48.6 million in 2005, a CAGR of 33.74%. Meanwhile Infosys’ revenues are $4.804 billion for the year ending March 2010, and growing at a CAGR of around 23.7% over the past four years. But amidst the growing clutter, can Finacle retain its growth trajectory for the long term. B&E engaged in an exclusive interaction with Infosys Finacle global head Haragopal M., who discussed Finacle’s evolution and future ambitions.

Launched in 2000, Finacle was a right product at the right time for the Indian market at least. That was because Indian banks did not have any integrated platform at that time, and there was a strong need for providing anytime anywhere banking. This was in contrast with the developed world, where legacy systems were in place, which is why the core banking transformation started in Asia Pacific. That has provided Indian banks with an advantage as well, since their efficiencies have gone up quite phenomenally. Hargopal cites the transformation that core banking solutions have brought for Indian banks with some figures, “Average bank spending per capita of customer is around $76 in global banks, whereas a bank in India spends around $11-14. Indian GDP increased by 184% from 2000-2010, bank deposits rose by around 500%, lending increased by about 300-350%, but scale of banking staff has gone up by a mere 5%.”

Finacle has positioned itself on the propositions of scalability, richness of its functional software, flexibility, efficiency and execution capability. The company upgraded itself very quickly from being an ISV to a one stop consulting partner for all the needs of the clients. The major challenge was to integrate the system, piece by piece, even as the client’s regular operations were going on. As Hargopal puts it, “It’s like changing the engine of a Boeing during a transit landing flight!”


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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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Saturday, July 28, 2012

2010 was theirs! Is 2011?

FMCG Saw Some Heavy action on the M&A front last year. But, as The Industry matures and valuations rise, It’s The small-ticket Strategic Acquisitions that will drive the sector in 2011

If there was one sector that saw some heavy action on the mergers and acquisitions (M&A) front last year, it was fast moving consumer goods (FMCG). For the uninitiated, the total value of M&A deals ($797.83 million) in the sector in 2010 went up 16 times when compared to the 2009 figure ($47.94 million), and in fact, a whopping 23 times from the 2008 number ($33.97 million). Reason: India’s Rs.460 billion FMCG market remains highly fragmented with over 50% of it dominated by non-branded, unpackaged home made products. This certainly presents a tremendous opportunity for established brands, both domestic and multinational, to expand their reach across the country by pursuing inorganic growth strategies.

Several FMCG companies such as Dabur, Marico, Godrej Consumer Private Ltd. (GPCL) and Emami have already been snapping up companies or brands since 2010 to expand their sphere of activity. While GCPL did five outbound deals and one domestic deal in 2010, rivals Dabur and Marico forged two outbound deals each. In fact, a significant contributor to the growth registered in 2010 were outbound deals (domestic companies making acquisitions abroad). There were 18 outbound deals worth $506.90 million in 2010 as against four deals worth $45.5 million registered in 2009 and two deals totalling just $2 million in 2008. It was high valuations of local assets that drove the homegrown companies abroad. Considering this, there was certainly a rebound in M&A activity levels in FMCG in 2010. Companies which had postponed M&A activity in the past two years were clearly making up for the lost time in 2010. Sounds logical! But then, what about M&A’s in the sector in 2011? Does M&A activity in the sector continues to experience the same momentum as it was witnessing some six months ago?



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Thursday, July 26, 2012

Food Prices Up; R&D Down

Dwindling Focus on R&D Investment in Agriculture Spells Disaster!

The advent of 20th century saw a sharp positive shift in the trajectory of global poverty alleviation by the means of enhanced agricultural production aided by R&D which lifted millions out of abject poverty. But R&D investment in agriculture has not been witnessing very positive signs.

As per a book titled ‘Developing World: Too little too late?’, from the period 1981 to 2000, worldwide R&D investment in agriculture increased by 51% (from $15.2 billion to $23 billion). Out of this, the contribution of rich countries was $12.8 billion in 2000 – two third of which came from just 4 countries – US, Japan, Germany and France. However, R&D spending in agriculture is negligible when compared to other industries even beyond 2000. In 2005, the European Commission data confirmed that, pharmaceuticals & biotechnology ($97 billion in R&D), technology hardware and equipment ($101 billion), automobiles and parts ($92 billion) and software and computer services ($35 billion) grossed more in R&D investments than agriculture, which rose by 2.3% in the last decade – pharma and biotech grew at 8.3%, technology hardware & equipment at 7.2% and software grew at 9.2% in just one year; 2005.

FAO’s biannual outlook mentions, “In international food trade, the global food import bill is expected to reach a new record of $1.29 trillion in 2011 – 21 percent more than in 2010. Low-Income Food Deficit Countries and Least Developed Countries would be hardest-hit since they would likely have to spend respectively 27 and 30 percent more on food imports than last year.World Bank estimates there was just 1.46% growth in agriculture during 2008-2009 in low income countries. Global food price index was estimated to have been around 36% higher yoy in March 2011, which has ensured that 44 million people moved back below the poverty line.


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Friday, July 20, 2012

Yes, They are Humans too!

Recent Tragedies highlight that our Police Forces need Special Attention

Ever considered law enforcers getting on the wrong side of the law? Consider this: 17 Delhi Police personnel have committed a grave crime in the last three years, which puts them beyond conviction. That’s not because they are law enforcers, but because the crime in question is suicide.

Most of these suicides were due to stress and tension related to personal and family problems. In the capital itself, 2009 saw seven suicide cases. A brief trend analysis shows that suicide cases among police personnel in Delhi police is “increasing day by day”.

Most of the time, a police officer works for more than 24 hours, thus keeping him disconnected from social and family life. Studies suggest that most of these suicides can be attributed to personal and family problems. It’s very important for policy makers to make the work hours more humane in the long run; but as of now, it is imperative to instil a sense of life in these personnel. The police department across India can replicate a model suggested by the Mumbai police, wherein they try to conduct stress management courses and frequent interactions; along with organising “Sampark Sabhas’’, which aim at decreasing communication gaps between subordinates and seniors. Policy makers are also considering developing over 7,000 residential living units and organising a series of recreational activities.

Along with suicides, discrete criminal activities such as killing someone in the line of duty and misbehaving with citizens are also reported. Policing does call for a lot of psychological stress clubbed with danger, and requires prompt decision making skills and ability to deal with unprecedented situations.


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Thursday, May 17, 2012

Patriotism as the big idea !

Are patriotic ads necessary reminders to today’s consumerist and self-absorbed generation about the history of our great Republic and her Founding Fathers? Or mandatory, annual exercises of lip-service following tradition, in typically sarkari manner? 4Ps B&M’s Consulting Editor Monojit Lahiri attempts a checkout.

It’s really quite interesting … and not at the same time. Every year, each time a birth or death anniversary comes around, the nation suddenly goes freeze frame on all scams and consumerist distractions, and slips into the (studied?) sombre, restrained, sober patriotic mood defining the moment! PSUs and corporations (forever on-the-make) quickly leap on to this bandwagon with ads eulogizing the theme of the day and connecting it – with different degrees of credibility and success – to their organisation’s brand values and vision. Question is: Is this for real? Genuine pieces of communication celebrating the spirit of a momentous day with galvanizing, insightful, uplifting & creative evocation of words and visuals that touch a chord... or merely hollow posturing, doing the done-thing for the sake of political correctness?

“It’s plain, unadulterated waste!” 20-year-old Akhilesh Varma comes on strong, firing on all cylinders convinced that this “humbug has just got to stop!” The Pune-based MBA student’s take is simple. The intent is all wrong. “Do these PSUs and corporations really understand, care and feel the importance of this day? For them it’s a platform to advertise/publicise the connect between the occasion and their organisational product/brand, values any-which-way, and this is clearly evident from the amateurish, predictable, boring sycophantic prose and corny visuals presented. Who commissions them, who creates them, who looks at them, reads them and remembers them must remain a closely guarded secret between them... And does anyone give a damn about these ads the next day when they grace the-dustbin?!” says Varma.

Celebrated dancer and passionate champion of Indian art, culture and tradition, Sonal Mansingh however refuses to be cynical or irreverent and brings her own spin to the table. In fact, she raises a counter-question. “Why do we remember or commemorate birth/death anniversaries of our parents, grand parents and loved ones? Do we remember them, everyday? Why do we celebrate festivals relating to Lord Rama, Krishna, Ganesha and the entire pantheon? Are they on our radar, all the time? No… but there are two simple reasons. One, because it is a part and parcel of our rich, cultural heritage and ethos… something that is an intrinsic part of our DNA. It comes naturally to us, Indians. More importantly, in an increasingly Google-driven and technology-led time with consumerism’s signature tune of I-me-myself blasting away, these ads epitomize the values and vision of our great departed leaders, what they lived… and died for. They serve as role models and inspirational benchmarks so critical in today’s materialistic and confused times. It tells us that human values of love, courage, truth and pluralism make for a rewarding life. I believe they should be viewed positively and there is much to be learnt from these ads,” Sonal tells 4Ps B&M. Filmmaker Muzaffar Ali agrees. While he concedes – being an ex ad-man himself! – that many of these species may not quite make the cut as torchbearers of great advertising “the heart is in the right place and the intent is spot-on. That matters most. What’s wrong in using these events to showcase our amazing composite culture and all that a true great Republic and Democracy symbolizes? I know patriotism may not be as cool as Kolaveri D, but to mock and ridicule these ads is poor form.”

Neither veteran advertising professional Tara Sinha nor Ogilvy’s Executive Creative Director Sumanto Chatterjee unfortunately are on the same page – or book – with the arty twosome. While Tara believes “it is a colossal waste of taxpayers’ money and reams of newsprint with zero returns,” Sumanto admits, “it is silly posturing and shadow boxing with communication capsules that strain, mostly unsuccessfully, to achieve a cosmetic connect between the organisation/brand and the event of the day. Totally unconvincing and irrelevant, they usually end up devaluing the entire meaning of the occasion.” Both believe that it would be far more effective if the money spent could be used for people-specific, community-related programmes addressing key causes and concerns to better their quality of life and god knows, there are scores of them! “Event management not brain-dead advertising is the need of the hour,” says Tara.

So what gives? While it is unfair to totally dismiss all ads and communication appearing on these days as garbage, a serious rethink and review by the powers that are is definitely in order. After all, surely these ads have an agenda beyond blindly following herd-mentality, as suggested by their acerbic critics? Mile Sur Mera Tumhara… Hamara Bajaj, Pepsi’s amazing freedom ads commemorating India’s 50th year of Independence are some outstanding examples of how to achieve a memorable brand-fit that enhances brand equity of the product while not devaluing the essence of the occasion. The critical task is to convert this challenge into an opportunity that resonates with the reader in an engaging way. After all, don’t special days warrant special ads?

Can they do it? Will they do it? Let’s wait and watch...

For more articles, Click on IIPM Article

Source : IIPM Editorial, 2012

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

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM B-School
Arindam Chaudhuri
Rajita Chaudhuri
Planman Consulting
IIPM in the league of best management institutes of India.....IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
Planman Technologies
IIPM Contact Info
IIPM History
IIPM Think Tank
IIPM Infrastructure
IIPM Info
IIPM: Selection Process
IIPM: Research and Publications
IIPM MBA Institute India
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Friday, April 13, 2012

Emerging Online Retail Trends

Smartphones, Tablets and Internet...all of them are changing the consumer’s shopping experience for ever. As gadgets find more takers, shopping through devices is hitting new highs. While 17% of the U.S. tablet users check out products through their devices on a daily basis, close to 13% of the U.K.’s smartphone users have started doing a real-time price comparison on their handsets. And 36% of smartphone users in the U.S. buy products through their phones while present at stores.

Phone shopping on the rise

A survey conducted on UK-based consumers, who use smartphones, found that the most common use is to find out a store location, while taking a picture of the product remained the second most popular retail-related activity performed on smartphones. A look at the top 10 activities indicates that users are increasingly using their smartphones to gather information and key details of products before purchasing products and services. This is evident from the fact that activities like contacting friends and family via text, comparing prices and finding best buying deals via smartphones are on the rise.

Using tablets for shopping

Nearly half of the tablet owners in the U.S. made a purchase on their tablet indicating the growing importance of this media channel to the e-commerce market. For that matter, tablet users exhibited considerable use of their devices through out the purchasing process. While 56% looked up for product and price information for a specific store, close to 54% read consumer reviews and ratings before they purchased. Considering the increasing use of tablets, for retail brands, the platform may soon become a very critical part of their comprehensive digital marketing strategy.

For more articles, Click on IIPM Article

Source : IIPM Editorial, 2012
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

IIPM B-School
Arindam Chaudhuri
Rajita Chaudhuri
Planman Consulting
IIPM in the league of best management institutes of India.....IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
Planman Technologies
IIPM Contact Info
IIPM History
IIPM Think Tank
IIPM Infrastructure
IIPM Info
IIPM: Selection Process
IIPM: Research and Publications
IIPM MBA Institute India
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