Wednesday, December 26, 2007

The flotsam & jetsam of Indian

Mulayam Singh Yadav may have lost UP, Chandrababu Naidu may be uncertain of getting back the Mulayam Singh Yadav, Chandrababu Naidu, Jayalalithacommand at Hyderabad and Jayalalitha's return to Tamil Nadu may appear remote, but these three worthies refuse to remain away from the media glare. Their latest stunt to hog the headlines is based on using the incumbent President Kalam to score some brownie points over their arch rival Congress. It is well-known that Congress has the numbers to install the President of their choice, then why is the so-called Third- Front trying to spoil the party for Pratibha? The answer is not difficult to discern. Firstly, the three leaders have enough time to indulge in frivolous politicking, merely to remain afloat in the political circuit. Secondly, the idea is to embarrass the Congress by hook or crook. These negative tactics will hardly help the Third Front to forge a credible alternative. They will continue to act as political brokers: moving from one block to another, before being finally kicked out of the political scene.
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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

Wednesday, December 12, 2007

US as the “strategic balancer” in Asia-Pacific

No points for guessing that this project slated to begin construction by end-July is opposed by the US and funded by Iran (National Iranian Oil Company or NIOC is one of the chief financiers of the project costing 50 billion Ringgit or US$14.5bn). China palpably is happy, since Beijing neither can nor does it intend to challenge the US supremacy at sea, thus it is busy aiding such pipeline projects (Gwadar port in Pakistan & Myanmar’s pipeline project from Sittwe to Kunming, capital of Yunnan Province) to ensure the smooth flow of hydrocarbons from the Gulf. Interestingly, Japan too has shown interest in the Malaysian project and is also one of its financiers, along with Saudi Arabia. “Despite the political equations with the US, Tokyo’s strategic energy demands ensure that it supports all initiatives which help it to secure its crude supply-chains”, said Dr. Vijay Sakhuja of the Institute of Southeast Asian Studies, Singapore, in a chat with B&E. The Malaysian initiatives are a cause of concern for Singapore. As Dr. Sakhuja says: “Should the proposed Malaysian mega-project reach its fruition, which it would (given that there is both domestic political & international financial support) and will have an impact on Singapore’s dominant position as Asia’s frontrunner in trans-shipment in Asia.”

The moral of the story is that while the US is busy flaunting its military muscle to secure its economic interests across the globe, others are quietly and diplomatically inching ahead to replace US as the “strategic balancer” in Asia-Pacific.

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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

Tuesday, December 04, 2007

“The great eventful Present hides the Past; but through the din of its loud life, hints and echoes from the life behind steal in”

It is more of a certainty that Pakistan’s misanthropic misadventure would increasingly spread its fangs much beyond the paradigm of Kashmir to all over India. And it is a bigger certainty that in the new game, Bangladesh would be the new pawn, making sure that for India, internal security becomes much more of a concern than external threats.

Reaping the benefit of this increasing animosity towards India is China, which has its own compulsion to see much of India burning in a slow yet lethal proxy war. On one hand, while it has otherwise maintained a so called peaceful stance, on the other hand, it has been consistently handing over to Pakistan vital nuclear and missile technology to continue to keep India busy. So the elephant, which has not yet fully awakened from the slumber, finds itself surrounded by adversaries armed with lethal arsenal. Under such circumstances, a proposition to not arm her own self – just for the sake of pleasing the peaceniks – is nothing but self defeating. So a nuclear India has embarked on a new mission to continue with its missile development programmes to makes sure that some of them like Agni-III can reach the heart of China.
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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

Monday, November 26, 2007

‘War of Terror’?

What lay behind the hysteria, of course, was the prospect that for the very first time one of the people who tricked America into war, then endangered national security yet again in the effort to cover their tracks, might pay some price. But Ajami need not have worried.

Back when the investigation into the leak of Valerie Plame Wilson’s identity began, Bush insisted that if anyone in his administration had violated the law, “that person will be taken care of.” Now we know what he meant. Bush has not challenged the verdict in the Libby case, and other people convicted of similar offenses have spent substantial periods of time in prison. But Libby goes free. Oh, and don’t fret about the fact that Libby still had to pay a fine. Does anyone doubt that his friends will find a way to pick up the tab?
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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

Wednesday, November 21, 2007

The sub prime lending fiasco will take banks and brokerage houses with it...

A few points: Although the US stock market became oversold at the end of June in the very short-term, the market is certainly not oversold from an intermediate point of view and is still grossly over-bought from a longer term perspective. An oversold condition would be reached if only 45% of stocks would trade above the 200 Day Moving Average (MA). A truly oversold condition would be reached if only 10% to 20% of shares would trade above the 200 Day MA.

Th e CDO market problems are likely to worsen for quite some time. First of all we are moving into the peak season for Adjustable Rate Mortgages (ARM) resets, the use of which Mr. Greenspan actually recommended in 2003 and 2004 right at the bottom of the interest rate cycle.

Since a large number of ARMs will be reset over the next 18 months at a time when the housing market continues to deteriorate, defaults are likely to increase much further! After Mr. Greenspan applauded the sub-prime lending industry for allowing also poor US households to purchase a home in 2003 and 2004, last week regulators told mortgage lenders to toughen standards for sub-prime home loans, sub-prime lenders’ stocks have been southwards.

Fed Governor Randall Krozner said in an email statement at the end of June that regulators expect “lenders to make sure sub-prime borrowers not only can afford their monthly payments while the introductory rate is in effect, but also after the interest rate resets… It is the right thing to do for the borrowers’ sake.’’

My regular readers will know by now that I do not have a high regard for the Fed (or for that matter most central bankers) but when I see this happening I really have to shake my head in disbelief. How could the Fed encourage reckless lending and borrowing with its artificially low interest rates policy and with its statements for years?
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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

Tuesday, November 13, 2007

Zoom and Times Now

The year 2007 also saw the coming together of two rivals - HT and TOI to launch a morning tabloid - Metro Now in the national capital priced at Re.1. Says Rahul Kansal, Brand Director, Times of India, “While we were in the process of starting our tabloid, we came to know that HT also has similar plans. And had two new products competed in this nascent category, they would have driven each other into non-profitability.” While officials at HT and TOI may opine otherwise, it is largely believed that the move came across to fight the plans of Aroon Purie’s newspaper dreams which have begun to fructify now. The owner of India Today group and the TV Today Network recently forged a deal with the publishers of The Daily Mail, Associated Newspapers (ANL) to launch morning newspapers in India. The hiring process for the newspaper is at full blast and the new entity is expected to hit the stands very soon.

Meanwhile, DNA (in which Subhash Chandra’s Zee holds a 7% stake), only second to TOI in Mumbai is also planning to hit the capital sometime soon, challenging the stranglehold of TOI and HT. Th e print media sector which is expected to grow at a CAGR of 13% to the size of Rs.232 billion by 2011 is the favourite segment for global investors with maximum foreign investment. However, despite the double digit growth fi gure projected for the sector, there are many who are keeping away from it. Sony Entertainment Television (SET India) is one of them. While talking about the growth areas of SET, CEO Kunal Dasgupta told B&E, “We are not going to go be in radio and not defi nitely in print.” Kunal is of the opinion that these two mediums don’ have subscription revenues which is the key to the future. “Instead, we will go online, on demand and on the move (mobile),” he adds.

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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

Thursday, November 01, 2007

Guantánomo Bay will continue to haunt Bush

Defending the MCA in 2006, Bush had claimed that the US “would provide terrorists the justice and due process that they denied their victims.” Refuting the flawed logic of MCA, Robert A. Levy, senior fellow at the Cato Institute candidly stated to B & E, “The danger in following the present legal regime (of MCA) lies in similar or worse regimes of nations which may apprehend or detain US citizens and mistreat them, and how would we deal with that situation.”

The MCA is an absolutely unnecessary legislation, as there is an existing law, namely USA Patriot Act of 2001, which is more than adequate in its present form to deal with terrorism. The Senate Judiciary Committee is marking up a bill to restore the habeas corpus in July.
“The distinguished constitutional scholar Sanford Levinson wrote that the eminence grise of the Bush administration is Carl Schmitt, the legal philosopher of the Nazis. Harsh words, but the government is intent on proving them to be accurate,” said Chomsky. One only hopes that the US public would never let their country become a totalitarian state, à la Nazi Germany.
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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

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Friday, October 26, 2007

Where's my solar power missing?

In the first 2 designs the temperatures in the fluid or atWhere's my solar power missing? the collector tower, in contrast to temperatures in solar water heaters, are adequate to produce steam; the third design does not use steam at all, but is powered by a Stirling engine, a closed cycle heat engine capable of very high efficiencies.

The largest solar power system in the world (350 MW) is located in California's Mojave Desert and uses parabolic troughs to convert sunlight to electricity with an efficiency of about 20%. Using the second design, Spain is building a 15 MW solar power tower in Andalusia, and an even larger such system is planned in South Africa. And using the third design, which will have total conversion efficiency as high as 30%, Sandia National Laboratories & Stirling Energy Systems are building a prototype of a system which will generate electricity at the same cost as the conventional technologies.
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Source: IIPM Editorial, 2006
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

Thursday, October 18, 2007

India, the world’s 2nd fastest growing car market, was supposed to be a seller’s paradise; ironically, this insight’s on

Or for the A Model Posing with BMWfact that BMW is ensuring that the envisaged dealer network within India (8 dealers currently, 9 more to be added by year end) is at par with any of BMW’s international undertakings? Haven’t competitors already taken that tactical edge?

Peter does fight back. “I don’t think the competition has an edge over us, because as far as our competitors are concerned, only Mercedes Benz is present with a manufacturing plant; Audi has barely started its marketing here in India!” he says. BMW has invested $26 million for its assembling operations. So then is the BMW strategy focused not on sales but just on earning profits, however small? That too especially on the back of its Chennai plant (with an annual objective of assembling 1,700 cars), expected to allow BMW to escape the prohibitive 60% import duty on imported cars?
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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

Monday, October 15, 2007

…old memories, restart to international networking

The industry is currently growing by 5% to 10% owing to…old memories, restart to international networking rising steel demand & prices across the globe, and thus acts as a major contributor. The economy specialises in producing all types of transport vehicles that supplements the industry & infrastructural growth. Additionally, IT outsourcing is an emerging sector (generates $18 million) and is growing by 100%. Ukraine is no doubt ahead when it comes to scientific space exploration & remote sensing mission. Corruption & stifling bureaucracy exists in the transport & infrastructure sectors, but the rapid growth can eventually overshadow them.

Lucrative export opportunities & other economic engagements with neighbouring Western countries await Ukraine. There seems a possibility that it can prosper by exploiting its massive and skilled manpower and technology prowess. Ukraine will surely regain its shine by overcoming the bullying foreign pressures…Will be a game to watch…
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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

Thursday, October 11, 2007

Maruti to drive down to rural India

The automobile giant – Maruti Udyog Ltd. (MUL) is on an overdrive toMaruti to drive down to rural India increase its footprint in rural India. As a part of a well thought strategy, Maruti has struck a deal with Regional Rural Banks (RRBs) to enable car financing. Talking about the initial response, Jagdish Khattar, Managing Director, MUL boasts, “We have already sold 2,700 cars and generated about 20,000 enquiries through the rural scheme which was started in April.” Out of the total cars sold using this scheme, Alto constituted for half the pie while Maruti 800 accounted for 23% of sales. Besides taking help from the RRBs, the auto giant is utilising its old resources of car financiers (including Mahindra Finance and Magnum). Moreover, MUL is involving village Panchayats alongwith being a part of local events to boost sales.

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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

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Wednesday, October 03, 2007

Never before has there been so much international focus on environment

The great apes of the world could become extinct in the wilds within a single chimpanzee’s lifetime, which is about fifty years. The world’s oceans are being depleted. Industrial fishing has wiped out perhaps as much as 90% of large predatory fish species such as the biggest types of tuna. Right now the fate of the whales, big cats, elephants and many other species are increasingly becoming bargaining chips on the gaming board of global economics and international pawn-playing politics. And because of social factors such as stress, feelings of worthlessness and loneliness of spirit, we are now, quite literally, killing ourselves. Suicides amongst our teenagers, the loudest cry for help of them all, have reached almost epidemic proportions in today’s world.
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Source: IIPM Editorial, 2007
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

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Friday, September 07, 2007

Low lying Bangladesh may drown

Brahmputra and Ganges, which join together in Bangladesh before falling into the Bay of Bengal, are filled by the melting snow of Himalayas. Deforestation in Bangladesh is one of the reasons that has led to a rise in the level of river beds, which has made floods not only recurrent, but disastrous. Since 1971, the frequency of the floods has augmented – 1974, 1984, 1987, 1988, 1998 & 2004. But the fear now is not floods. It is the likeliness of the complete submergence of the country. This is because as much as 15-20% of Bangladesh is already within 1 metre of sea level.
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Source: IIPM Editorial, 2007
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

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Tuesday, September 04, 2007

Rest in peace...

For manyHCL computer fanatics, the hottest buzz this March wasn’t the marvellous results posted by IT companies but was the launch of eco-friendly laptops by HCL. By introducing a complete range of eco-efficient consumer & business notebooks in compliance with the EU directive on Restriction of Hazardous Substances (RoHS), showing some intent on making its presence felt in the green arena. When asked about the business imperative, Rajendra Kumar, Executive VP, HCL Infosystems, states, “It won’t be fair to label eco-friendly laptops with tags like ‘making business sense’ or ‘a regulatory burden.’”

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Source: IIPM Editorial, 2007

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

Thursday, August 30, 2007

The brand is Chinese & the American spirit of IBM endures. Will Lenovo be able to go the distance to the crown?

For Lenovo, it was a giant leap ahead from nowhere. Its global revenues in 2006 leapfrogged an unfathomable 359.1% yo- y to touch $13.2 billion! Approximately two years are going to pass, and Lenovo has left no stone unturned all this time in trying to prove that it retains the original IBM character. As Neeraj Sharma, Managing Director, Lenovo South Asia, states, “Innovation is at our very core, but simultaneously we are working extensively on our cost structures to ensure best possible prices.” He contends that for Lenovo, the key strategic objective is “to grow faster and more profitably than the industry.” And with its extraordinary Sino-American lineage, one would indeed expect that Lenovo would have unleashed mayhem in the Indian PC market by now.
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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

Tuesday, August 14, 2007

Coke magnifies Tata Tea’s 30%!

A new alliance between Coca-Cola and Glaceau will involve $4.1 billion as the former (world’s largest aerated Coke magnifies Tata Tea’s 30%!drinks producer) has agreed to acquire the latter (US energy drink maker). This deal is a boon to Ta t a Group led Tata Tea – as it will bestow a windfall gain of about $1.2 billion for the 30% stake it holds in Glaceau. Tata Tea had acquired 30% stake in Glaceau for $677 million in August 2006. The deal in all probability will close in by the summer of 2007. Coke’s move has been primarily connected with portfolio expansion plans in order to compete more effectively with rival PepsiCo Inc.
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Source:
IIPM Editorial, 2006

An
IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

Monday, August 13, 2007

Another victory for the PE firms!

The dominance ofCorporate Computer Seller (CDW) private equity firms in the global market got a further fillip as Corporate Computer Seller (CDW) agreed to be acquired by Madison Dearborn Partners for $7.3 billion. Apparently, CDW’s strong financials (with zero debt and $500 million of cash) lured Madison Dearborn Partners to buy the company. Shares of CDW soared to a new 52- week high on the news of the deal with Dearborn, rising by 10% to $7.55.
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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

Thursday, August 09, 2007

Remarkable Raro!

All you sleeping beauties beware, as this bed from Raro will render you sleepless until you finally own it! The Salvador Bed is a perfect blend of Veneered bed in ‘Ebony Macassar veneer’ with sculpted ‘African Ebony wood’ with detailing accented by zericons set in silver. This dark-brown beauty is all set to grab eyeballs and guarantees to add oodles of class to your bedroom. Price on request.
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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

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Wednesday, August 08, 2007

“Starve the poor”

Increasingly, biofuels are likely to “starve the poor” around the world, as staples are converted to ethanol production for the privileged – cassava in sub- Saharan Africa, to take one ominous example. Meanwhile, in Southeast Asia, tropical forests are cleared and burned for oil palms destined for biofuel, and there are threatening environmental effects from input-rich production of cornbased ethanol in the US as well.

The high price of tortillas and other, crueler vagaries of the international order illustrate the interconnectedness of events, from the Middle East to the Middle West, and the urgency of establishing trade based on true democratic agreements among people, and not interests whose principal hunger is for profit for corporate interests protected and subsidized by the state they largely dominate, whatever the human cost.
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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

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Thursday, August 02, 2007

To become a profitable world leader it is not enough to have lower costs

When asked about the importance of brand building, Hans asserts, “To become a profitable world leader it is not enough to have lower costs. Building up of a strong brand is a vital asset to a consumer durable company like us.” He feels that while manufacturing is getting commoditised, products are not. In fact, people are getting more and more personalised with products and want to own brands they aspire for. Hans illustrates with an example, “For people who aspire for a Mercedes or an Audi, Kia is never the brand to buy.” And he wants Electrolux to be the brand people aspire for. The company wants to be, as Hans says, the “BMW of consumer electronics”.
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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

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Tuesday, July 17, 2007

VAS@BhartiTelesoft .com

“I t was virtually on its deathbed,” exclaims Bharti Telesoft CEO Sanjiv Mital, as he elaborates on the perilous situation in which this Bharti Group company found itself in 2001 (two years after inception), when the dotcom bust happened.

Blame it on the market situation, the lack of market focus or on the poor timing; this venture of Bharti Enterprise seemed to have disaster written all over it in its initial years. The company had to close down its US & UK offices to cut costs. It was then that the top brass, after thorough introspection, decided to focus exclusively on the Value Added Services (VAS) space and develop VAS soft ware products for mobile operators – a strategy that has helped, as Mital divulges to B&E, “Bharti Telesoft is a $40 million company, and we have been doubling our growth year after year.” The company also claims healthy profits, though officials refuse to give exact numbers.
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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

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Wednesday, July 11, 2007

When Brands direct films...

Think Lage Raho Munna Bhai, and Worldspace comes to mind as easily as Vidya Balan does. Or watch the recently released Ta ra Rum Pum from Yash Raj Banners. Ditto! The film appears to be a part of a well thought marketing plan: The story revolves around car racing, Saif Ali Khan races for Chevrolet in the film and in the real life too, the star duo Rani and Saif race for Chevrolet Aveo, as their ambassadors. Courtesy the context, the brand is omnipresent throughout the film. “The tieup is an organic fit, being completely insync with the creative direction,” explains Tarun Tripathi of Yash Raj Films.

Since it was introduced to Bollywood many years ago, in-film placements have completely transformed today. No longer do brands pop up from nowhere in the story line and vanish unnoticed. In-film placements are giving way to inscript placements instead, and the trend is fast picking up. Metro by Anurag Basu has Shaadi.com playing an important role, the upcoming film Goal has its characters endorsing Reebok apparel, kits and even its motto.
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Source : IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

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