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

Monday, September 10, 2012

Wrong person, Wrong place?

The New CEO is a Software guy and has Prior Experience only in Enterprise Sales – A clear mismatch with the current philosophy of HP – The largest IT company in the World. Is he the right choice?

On a cold Sunday afternoon of February 2009, Leo Apotheker, who had moved into the CEO chamber at the $46 billion technology giant SAP’s Waldorf headquarters barely seven months back, shot across a sorrow-laden email to his employees. It read thus: “The pace of change was probably too rapid. My communication toward you was not always optimal. I regret that I wasn’t able to earn the support of each and every one of you...” So what forced him to wear the cloak of humility? The Board of Directors at SAP had refused to renew his contract following his underperformance. The financials had turned turbid, as SAP recorded the first fall in top & bottomlines in 7 years, which plummeted by 8% to $14.6 billion and 7% to $2.48 billion respectively in FY2009. Other matters disappointed the shareholders further, which included the withdrawl of SAP from the Sun acquisition talk (which Oracle finally bought, killing chances of SAP becoming invulnerable), the failure to get on board 10,000 customers for his expensive service software project Business By Design by 2010 (which never saw the light of the day during his tenure), his inability to get SAP’s products in-line with the changing trends in enterprise software, et al. His fate was sealed.

But just as surprised as the world was when he was offloaded by SAP’s Board even as his 75 minute-long debut CEO keynote at Orlando was being forgotten, the $98 billion tech-giant Hewlett-Packard proved yet again (after Hurd’s unceremonious exit on August 6, 2010) why it is good at making news. Apotheker had just been announced the scandal-marred HP’s new blue-eyed boy. As for the shareholders, their grief was visible as the HP stock fell by 4.32% on the first trading day following this announcement on September 30, 2010 – wiping away $4.2 billion of value. Rick Sturm, CEO, Enterprise Management Associates (EMA), while speaking to B&E from Colorado, says, “Investors have indicated that they doubt Apotheker’s ability to lead HP. This choice by the HP board is likely to end up being seen as an unbelievable act of stupidity.”

Of what can be observed from Apotheker’s past, seems unsettling. In recent times, HP has been plagued by unethical issues leading to high-profile exits. With Apotheker, it appears that this corporate legacy will live on. The German is currently involved in a courtroom dust-fight, where Ellison-led Oracle is claiming more than $2 billion in damages from SAP. Oracle claims that Apotheker was at the centre of an illicit activity four years back, which saw workers at SAP’s TomorrowNow subsidiary steal copies of Oracle’s maintenance services software. HP’s honour will therefore again receive some clubbing on November 1, 2010 – officially Apotheker’s first day as HP’s CEO – when he presents himself before court to defend SAP’s case, as Massachusetts-based Charles King, President, Mindspring Research tells B&E, “Apotheker could leave HP with eggs on its face. Oracle never bothered listing Apotheker as a witness for its trial with SAP.” What a way to kickstart your tenure as HP’s CEO!


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 01, 2012

SETTING ‘THE’ BENCHMARK!

O. P. Bhatt took over the reins of sbi when private players were catching up. He decided to go slow and his strategy seemed to have paid off. With SBI’s profits two times that of its closest rival ICICI Bank, sbi is far ahead of its competitors by any means

B&E: SBI’s NIM (net interest margin) has improved significantly from 2.30% in June 2009 to 3.18% in June 2010. Where do you see it going forward?
O. P. Bhatt (OPB): We certainly want to increase it further, but we would be happy if we maintain it at the current levels for now. Though there is a healthy possibility of an increase in NIM in the near future, our priority is to maintain it at the current levels, which is quiet good.

B&E: Credit growth in the banking sector seems to have picked up much faster than the usual pace. So, what kind of numbers are you looking at?
OPB: We are really optimistic about the credit growth and as such are looking forward to achieve a 20-22% growth rate in the near future.

B&E: Will the demand continue to come from infrastucture and allied sectors or will we some more sectors playing a significant role in driving the demand for credit?
OPB: If you look at the big loans, the maximum demand, as of now, is coming from the infrastructure space. In fact, it willl continue to come from here in the near future as well. However, sectors, which include retail, education, auto and real estate, will too drive the demand for loans. We have seen some good credit growth flowing in from these sectors in the recent past and as such are really optimistic about the contribution they can make to the credit growth.

B&E: Going forward what is the outlook for interest rates?
OPB: We are definitely reviewing the interest rates. We have an upward bias for the interest rate in the coming quarters. The interest rates for both, deposits and loans will go up. Deposit rates have already bottomed and the era of cheaper interest rates is over.

B&E: SBI has reported an increase in NPAs (non-performing assets). Which are the sectors that are putting pressure on the bank’s balance sheet?
OPB: NPAs have increased for sure but if you look at the figure it is more in terms of percentage than the value. On a sectoral basis, the agriculture sector is the biggest contributor to our NPAs, almost 50% of the total NPAs of the bank. The other sector that’s putting pressure is the SME sector.

Read more......

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.

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Professor Arindam Chaudhuri - A Man For The Society....
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Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
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IIPM B-School Detail
IIPM Links
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Friday, August 31, 2012

FOUR DIMENSIONS OF PROFIT-MAKING!

Competition today has forced organisations to overlook the importance of values, ethics, credible leadership and corporate governance. they simply hinge their hopes on luck. wrong. Dr. Jamshed Jiji Irani, Director of Tata Sons and Chairman of the Board of Governors, IIM-Lucknow, writes about those elements, which if considered first, would result in fair profits.

From the dawn of civilisation, societies and cultures have been impacted by a numerically minute group of men and women who, because of their vision and their willpower, have swayed and changed the course of history; and they have significantly impacted the lives of their fellow human beings. Such persons have not just happened, they have been trained to grasp their moment of history. They have lived by the adage – “God give me the strength to change what I can, the humility to accept what I cannot and the wisdom to differentiate between the two”.

Profit is about “Values”
The one common thread that joins all successful leaders, is that they have seized the opportunity that came their way. Some say that to be successful, you must be lucky. In my opinion, there is no luck involved in building a successful career or a happy family life. I would rather say that good luck comes as a result of “preparation” meeting “opportunity”. Another very important subject is of “values”. In some quarters, particularly amongst young executives, “values” are looked upon as old fashioned and, may be even considered as being out of sync with the demands of the current competitive scenario. But let me assure you that it is not so.

Today, society is once again recognising the merits of value-based decisions. Please be assured that society is demanding that businesses get cleaned up; and this movement is going to accelerate in the future. I would like to quote J. R. D. Tata here: “No success or achievement in material terms is worthwhile, unless it serves the needs or interests of the country and its people and is achieved by fair and honest means.”

Profit is about “Ethics in Business”
What is Ethics in Business? It devolves into playing the game of business according to rules, even if your competitor does not. Some critics might argue that in the prevalent environment, this philosophy would not be acceptable, as “ethics” might result in a disadvantageous situation in the business arena. But, being “ethical” does not mean that one cannot also be “profitable”. It is most important to make profits and to generate wealth; because only then can one have the resources to do good in the community. That differentiates between ‘good’ and bad’ business practices, and decides what happens to the wealth after it has been generated. I would once again like to quote J. R. D. Tata here. He said, “Every company has a special continuing responsibility towards the people of the area in which it is located and in which its employees and their families live. In every city, town or village, large or small, there is always a need for improvement, for help, for relief, for leadership and for guidance.

I suggest that the most significant contribution that an organised industry can make is to identify itself with the lives and problems of the people of the community, to which it belongs and by applying its resource, skills and talents, to the extent that it can reasonably spare them to serve and help them.”



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Thursday, August 30, 2012

Shinzo Nakanishi, MD, Maruti Suzuki India

Maruti’s market share and stock price has taken a beating in the recent past; blame competition for it. Shinzo Nakanishi, MD, Maruti Suzuki India, explains the comeback plan of the company to B&E.

B&E: The company has capacity expansion plans for 2012. How do you plan to manage till then, as the company is selling whatever it can produce?
SN: The company was working on ways to bring that to an earlier date and I am pushing my engineers very hard to ensure that Maruti is able to start the additional 250,000 units production as soon as possible. However, as of now, I will not be able tell you by when we will be able to start our new assembly line. But till then, we will have to manage with out existing capacity, and look at options by which we can maximise our production.

B&E: What about the developments on Suzuki Motor Corporation’s alliance with Volkswagen?
SN: The talks with Volkswagen are going on at a global level but there is still no clear picture as of now. However, there is very much a possibility of an OEM (original equipment manufacturing) supply contract with Volkswagen, which will be similar to what Maruti has with Nissan. But there is no possibility of sharing a common production platform with Volkswagen. Keeping in mind the fact that the German company’s production and product development costs are very high, it could make our business model unfit for India.

B&E: What prompted you to launch a five CNG models, even before a proper infrastructure was available for usage?
SN: We had two very radically different options in front of us regarding this – either we could wait till the point when the infrastructure got ready and then launch our products or being a market leader, we act first and allow competitors to follow us. We chose the second option!


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Tuesday, August 21, 2012

Touch me not!

From healing touch to heeling touch… Women have an incredibly wider spectrum of influence than one could have ever anticipated!!

Have you men ever walked into a shop and felt incapacitated as a negotiator, and had to deal with the brunt of a raw deal that may have burnt a hole in your pocket? Isn’t it true that our female counterparts have an edge when it comes to negotiations and bargaining? Not only that; it has been observed that men accompanied by women folk may also feel much more confident and far more secure while closing deals or simply venturing out. A recent study in New York shows that the reassurance of a woman’s touch can influence decisions made by men. It finally stands to logic why women always get their way and it won’t be a surprise if another study showed that women are in fact always aware of the fact that men feel empowered when they are around! Now, the million dollar question that remains is why are they still given the tag of the ‘weaker sex’?

Women sure have accomplished almost everything that was earlier considered a man’s forte. And in some cases they have achieved even greater feats. Be it personal chores or strategising in a corporate forum, women are omnipresent. Although, some chauvinists and uninitiated introverts donning the garb of shyness, moving further into their cocoons (read wimps) might beg to differ and still vouch for male bosses and colleagues, just so the equations remains ‘simple’. It is a known fact that men would score way lesser than women as far as emotional quotient is concerned. This largely fuels the debate that claims women are better managers, because women colleagues and bosses have greater people management skills, and empathy tops the charts on their priority lists. One might have noticed that while being served in any of the airlines where air hostesses as well as flight stewards are on duty, a passenger might get agitated if a male steward falters, but a reassuring smile from the hostess pacifies even the most irate guest.


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Saturday, August 11, 2012

JW Marriott Hotel, Quito (Ecuador)

Make each moment you spend at Quito even more special, with your stay at the JW Marriott, which offers amenities as beautiful as the vitality and charm of the city. Get the perfect holiday tan in the hotel’s tropical gardens... Zumay gym and Spa promise a whole new experience of tranquillity and total wellness. Indulge in some of the finest cuisines at the hotel’s restaurant or splash into the resort style pool. The hotel offers recreational activities like golf, biking, table tennis and volley ball. With all this and more, no wonder the hotel has been ranked as the numero uno in Ecuador by Frommers and Tripadvisor.

The view: Situated in the heart of the city, from the hotel terrace, one is greeted with a panoramic view of the entire city. Each room of the hotel offers a spectacular view of the mountain peaks and the famous Cotopaxi Volcano.

Archi Type: The hotel welcomes one with a huge atrium lobby, which is the hotel’s hallmark. The rooms have heavy wooden doors and are decked with wooden furniture and pastel-coloured spreads, a combination that never ceases to impress.

Bon apétit: Luxurious living and fine dining find common ground as one indulges in the delicacies at the hotels restaurants. The various in-house restaurants serve innovative Ecuadorian, Peruvian, Mediterranean, Japanese and international cuisines.

Around the corner: Thanks to its centralised location, the hotel offers a perfect base for visitors to explore the rich heritage of the colonial city. The hotel is located just a short walk away from the old city of Quito, and the famous craft market Otavalo is only a two-hour drive from the hotel.

Under the carpet: Language creates a barrier while communicating with some of the hotel staff. The suites are thin-walled and noises from the adjoining rooms can be a bit of a bother.

Read more.....

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Thursday, August 09, 2012

Green and guilt-free mobility

When it comes to mass transportation, green options are being developed aplenty, but almost all are failing the economic viability test. The IIPM Think Tank analyses the economic and social benefit of contemporary machines that will be green, clean and fast – but not necessarily in the same order of priority!

Ice Age, Stone Age, Bronze Age, Iron Age... one would think that we should have come of age after going through these multiple bouts of evolution. But then, mankind has had the penchant for reinventing itself every now and then.

We have displayed that ability exceptionally well with respect to our transport system. The invention of the wheel started it all. Evolution kept ‘happening’, till the time when the entire connotation of transport took a whole new meaning with the invention of the internal combustion engine (that used petrol and petroleum by-products), which laid the foundation stone of modern transportation and gave birth to a huge population of fuel-guzzlers and carbon-emitting machines. It also gave us the concept of black gold; for which many wars have been fought, apart from the spectre of pollution – that has not only contributed to global warming, but also has been the leading reason for cancer.

In the late 20th century, countries started to re-calculate the negative effect of mass transportation on the environment. The focus on power and speed started getting replaced with a focus on green transportation, at least in policy circles, to an extent that the vision of having green transport systems became no longer confined to a few developed countries (In most developed countries, on an average, transport systems consume between 20-25% of total energy – an issue that is motivating the developed nations faster towards alternative less energy consuming systems). Despite all the hullaballoo about the ecological benefits, the clear fact is that the economic benefits of the so called ‘green’ alternatives are absent, and in many cases, too prohibitive for Third World nations (the costs to implement such eco-friendly systems is beyond logical levels and extraordinarily huge – this is an insurmountable impediment considering that even at the current level, almost all public transport systems, irrespective of which nations we consider, are more or less running on losses).


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Friday, July 27, 2012

Is Profit as a “Direct Goal” Overrated?

The Word Profit has Provoked a Wide Range of Issues and Emotions among Respondents & Businesses around The World. It also Launched Debates, and many readers Argued for Measures of Success other than Profit, writes Prof. Jim Heskett, Baker Foundation Professor, Emeritus, at Harvard Business School.

Why do managers choose to pursue profit so directly? The word “profit” has always provoked a wide range of issues and emotions among respondents. It sets-off several debates. They ranged from definitions of “acceptable” profit, to profit’s effect on decision-making and even to the future and viability of capitalism.

One debate concerned the primacy of profit as a goal. Deaver Brown (author of The Entreprenuer’s Guide) led this argument by saying, “Profit is the only legitimate goal of a corporation...,” pointing out that it serves many important functions for us as employees, citizens, and others. David Zemanek (Sales leader at Thomson Reuters) added, “Isn’t that why they call them ‘for profit’ companies?” Ann Brown (former Chairman of Consumer Product Safety Commission) said, “There’s nothing wrong with profit as a goal. What’s important is how you achieve it.” (Tony Hayward’s replacement at BP, announced on July 26, may be a timely illustration of that point; BP is very profitable, but there is official evidence that it continues to compromise safety.)

Gerald Nanninga (VP – Retail Ventures Inc.), on the other hand, argued that profit is a default measure, commenting that, “It is easier to measure and reward a goal of ‘producing a profit of x’ than it is to set goals around creating value faster than costs (his preferred goal).” Deepak Alse (a technology expert) reminded us that “the world of business... is an unbounded system! The ‘Corporation’ is in effect an acceptance of the idea that profit-seeking should happen through indirect approaches.” Mark Nadler (Partner at Oliver Wyman-Delta) commented, “Operationally, profit as a final goal is probably impossible because of principal/agent problems and lack of information and knowledge. This makes intermediate targets that affect profit important.” Steve Brogan (Managing Partner of Jones Day), meanwhile, offered an interesting analogy: “Anyone who has ever gotten involved in serious marksmanship understands that there is a difference... between the intended target and the aiming point.” In a pessimistic and somewhat lamenting tone, Tom Dolembo (Consultant, Disaster Planning Associates) ventured another reason: “I suspect profit, in the pure capitalist sense, is obsolete... we’re just not capitalists anymore. Profit is just another archival number to be doubted.”

One argument for measures other than profit as “direct” goals is the complexity of the corporation and the difficulty of drawing a direct line between any action and profit. Consultant Raymond Suarez said, “In a world characterised by increasing complexity... reconsidering profit as being the sole and superior criterion for business success, is the only rational approach to take.” On the other hand, Dan Wallace (co-founder of Hungry Fish Media) argued, “The presumption that problems are complex is a self-fulfilling prophecy... the most profitable and successful companies I know are rigorous... about driving simplicity and... driving out complexity...”


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Saturday, September 27, 2008

Unmade for each other

Indeed all privately doubt that any of this is for real

The Presidents of Sudan and Chad have agreed to cease Sudanhostilities “in principle”. Yes only in principle: for hardly had the words been uttered than the rebels, whom the pact officially aims to subdue, dismissed it as “meaningless”.

This of course is not the first time that Sudan’s President Omar al-Bashir and his Chadian counterpart Idriss Deby have “agreed” to cease warring – a war complicated by rebels of various stripes in the territories of both. (In Sudan they allege the country’s western part has been deliberately neglected to favour the Muslim North.) Under the latest non-aggression pact a monitoring group, comprising foreign ministers from both countries, will “ensure” that no more blood is shed.

Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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Wednesday, June 25, 2008

BRAND : Fair and Lovely - Total Fairness


When IIPM comes to education, never compromise

BRAND : Fair and Lovely
BASELINE : Total Fairness

4Ps TAKE : Yawn! BRAND : Fair and Lovely - Total FairnessWe may be bored of stale ad concepts, but clearly HUL’s Fair & Lovely is not. It is still continuing with its age-old masala mix to promote the brand. Haven’t the makers of the ad heard the saying ‘The only thing constant in life is change?’ The storyboard is repetitive; the only difference is that the basic theme revolves around a dance competition instead of a beauty-pageant. The communication is weak and fails to create any impact among the viewers. The father asks his daughter to study who is instead busy taking care of her complexion for a forthcoming dance competition. Wonder what’s the relation between dancing & fairness? It’s foolhardy to believe that the judgement of the panel is dependent on the dancer’s complexion rather than on her ability to dance. A warning for the makers of the ad: you can’t take consumers for a ride for long. It’s high time HUL gets a ‘fair’ idea about what good concepts are... or maybe being the dominant player in a niche segment does that to you... we mean, makes you complacent.

For more articles, Click on IIPM Article

Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM - Admission Procedure
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!


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Too ‘S’e‘X’y ‘4’ a car!

Guess Too ‘S’e‘X’y ‘4’ a car!SX4’s killer looks have not only left the women agog but the creative minds too. One look at the exterior appearance of the car and one can see how the concept took shape. When the Lowe team first saw the sedan, the first thing that struck them was its imposing presence and its tall and muscular sporty and sexy look. Looks aside the car is packed with great performance coupled with the elegance of ride. Kochhar aptly says, “In sum, the perfect manmasculine car, but not overtly macho, powerful yet full of chivalry & an inherent sense of character.”

Overall, the shoot was a pleasant experience for the team as Kochhar informs, “Once, when somebody asked whether ‘Men are back’ was making it too focused on men, a lady from the production team quipped, ‘Who do you think is going to be happiest if men are back?’” The central idea seems to be wellserved, as the tagline ‘The men amongst cars’ produces instant appeal for the car and places it in the mind of every A3 segment buyer. Kochhar agrees, “It effectively & interestingly captures the imposing presence of the car, especially when juxtaposed with other offerings in the A3 segment.”

With Maruti’s small-segment brands like Wagon R, Swift, Zen & Alto already shaking competitors, now its SX4’s turn to skyrocket Maruti’s market share in the A3 segment, after Esteem’s success. Guess Indians are already renovating their garages to park this imposing car!

For more articles, Click on IIPM Article

Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

For More IIPM Info, Visit below mentioned IIPM articles.
The Sunday Indian - India's Greatest News weekly
IIPM, GURGAON
ARINDAM CHAUDHURI’S 4 REASONS WHY YOU SHOULD CHOOSE IIPM...
IIPM Economy Review



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