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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Source : IIPM Editorial, 2012.

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

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Despite talk about American decline, the world is not prepared for a post-American era

The point was driven home at the 7th Asia-Europe Meeting (ASEM) in Beijing this autumn, where European and Asian leaders explored ideas for a new global financial structure. For much of the past 60 years, it would have been impossible to hold such a fundamental dialogue without US participation. Today, it is almost becoming a new global norm that neither the international committee nor the US is prepared for.

Despite talk about American decline, the world is not prepared for a post-American era. As irksome as some of its actions have been, particularly over the past eight years, the US remains the world’s most critical champion of the progressive values that have lifted hundreds of millions of people out of abject poverty and political repression. If the US were to play a relatively smaller role in world affairs, and no other system was created to pick up the slack, these values could be at risk.


Although many states now hide behind an alleged universal principle of inviolable state sovereignty, for example, would the international community go back to the old model where states did whatever they wanted to their citizens within their own borders? Do countries around the world believe that they will be better off if the global trade system breaks down or international shipping lanes become less secure? Are countries like China willing to step up and pay their fair share of dues to keep the UN running (China currently pays 2.1 per cent of UN dues, compared to more than 25 per cent for the US), or to capitalise revised international financial institutions or the Global Fund to Fight AIDS, Tuberculosis, and Malaria? Unless other countries step forward for the common good, a post-American world could quickly become a far more frightening environment than what it would replace.....Continue

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The Sunday Indian

“I am just a party worker”

Who do you think was responsible for the party's success in Rajasthan?

I attribute the party's victory to Congress president Sonia Gandhi, general secretary Rahul Gandhi, Congress workers and the good work done by the United Progressive Alliance (UPA) government at the Centre. It is also the victory of the people of Rajasthan. A befitting reply to the grave mistakes committed by BJP.

Will the Congress, which is short of a majority, be able to form a government in Rajasthan?

Yes, Congress will form the government here. We are not short of a majority…some of the independents are in touch with us and as it is, we are much above the required figure needed to form a government.

What do you think were the reasons behind BJP's debacle?

I am not the one to comment on other parties. All I know is that the people have given their verdict. The voters have voted against poor governance. All-round failure and corruption had become the hallmark of the Vasundhara Raje government during its five-year regime. There was a difference between what the BJP said and what it did in the state. In almost 27 incidents of police firing, 91 farmers were killed, the Meenas and the Gujjars felt agitated and cheated.

Who would be the next chief minister of the Congress in the state?

In Congress, a leader is chosen democratically and the party would announce the name at an appropriate time....Continue

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The Sunday Indian

Has national security gone to the dogs? If not, then it must…

Training is imparted in obedience, action, refusal of food given by strangers, scent discrimination, tracking, explosive detection, property guarding, spotting and attacking. The first phase of the 9-month training gives stress on basic skills, obedience drill and agility exercises. The second phase is tougher with explosives and narcotics detection, anti-smuggling operation, guarding and searching and causality detection. Every dog is assessed at the end of the training. Three retired BSF personnel impart training to the dogs at the Academy. Training for the first batch, consisting of high pedigree dogs including five German Shepherds and seven Labradors, and their 24 handlers, began in January 23, 2008. The next batch of 18 dogs is ready for training. “The selection of high pedigree dogs is done with meticulous care. Usually, the price of dog varies from Rs 5,000 to Rs 25,000, depending on its pedigree. The price for Labradors with six pure generations may go up to around Rs 80,000,’’ says Additional Director General of Police (ADGP) and Academy In-Charge, Alexander Jacob.

It is in fact the cost factor that is one of the main deterrents in the optimum deployment of dogs, apart from their own physical limitations. Says J A Khan, IG, Operations, Border Security Force, “The contribution of a dog to the detection of bombs and IEDs is 60%, and that of machines and equipments is 25%, while human success at it can be only quantified at 8%. But there’s a huge cost factor involved. The right pedigree had got to be usually imported, then trained for a year. If not properly used, the dog could die in 2-3 years. In fact, the life of a dog is reduced as much as we use her/him to sniff. Then there is required a personnel solely dedicated to the handling of dogs. There thus results a serious mismatch in requirement and availability. But that is not to deny that if used in a judicious manner, they can be a huge support. Loyalty, as you know, is an unquestionable trait with them.”....Continue

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The Sunday Indian

People hate the dirty face of partisan politics, says Priyanka Rai

The muck started flying from the time the first bullet sang. The Sangh Parivar went into a celebratory mood, as it felt sure that now the Congress had had it… clean sweep for the saffron, they partied. Congress leaders were going through the last motions of the Delhi polls, and pundits in both 24 Akbar Road as well as 9 Ashoka Road went into huddles, working out intangible election mathematics. And in the end, Congress felt that the solid, uncompromising hit back by the country got it the edge and Sheila Dikshit could, just could, win.

After his Mumbai visit, Advani said in his Rajasthan campaign, “Despite the Supreme Court verdict, Afzal has not been hanged. I often feel if Afzal were named Anand Mohan or Anand Singh, he would have been hanged a long time ago." Incumbent Vasundhara Raje, in a tight battle, said: "Though the terrorists got into Taj and Oberois hotels in Mumbai, we have seen how this government has failed to check terrorism." Interestingly, Narendra Modi had described Maharashtra ATS chief Hemant Karkare as antinational a week back. But today, Karkare is a martyr for whom Modi has offered a crore of rupees in compensation. It is precisely this kind of filth that got the public’s goat.

And there seems to be a reason for this sort of politics. What the public is saying – though may be not in so many words – is that none of the national parties have a national agenda: they just stick top their partisan interests. That's the real tragedy of democratic India. Each party seems so insecure that for them national security is a non-issue. By hook or by crook, they want the votes, come to the power and stick to it.

The people today do not believe Shivraj Patil’s ‘owning moral responsibility’ and resigning. Sonia Gandhi’s ubiquitous hands were obviously turning the strings that ran the puppets to stem a Congress slide during the coming polls. Media coverage of Patil changing three suits in a span of a few hours of the serial blasts in Delhi had enraged the masses, but there was no expression. BJP points out to the more than 200 blasts during the UPA regime. Home Ministry’s official statistic says it has come down quite a bit from the blasts during the BJP-led NDA regime. Then why resign now? ....Continue

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The Sunday Indian

Om Mathur, an RSS pracharak drafted in the party for more than 25 years, has been made the BJP chief in Rajasthan since January this year.

There are reports that the Chief Minister neglected the organisation during the past five years, refusing to meet even her own ministers. And there is dissension, so how are you managing the cadre?
Such things happen only due to lack of communication. I came here in January this year and tried to remove the discrepancies. I organised regular meetings between the party organisation and the government. Ever since, all government decisions are being taken in consultation with the party.

How true are reports of Vasundhara Raje’s corruption?
They are absolutely false. Why didn’t the opposition raise these issues inside the Assembly during the past five years of BJP rule? Why are such things being raked up only during the past 20 days through newspaper advertisements? In any case, people living in glasshouses do not have a right to throw stones at others.

Vasundhara is also being accused of being too arrogant, even more arrogant than Narendra Modi. How do you explain that?
Every person has a distinct personality and working style. Those seeing her from a distance may call her arrogant, but those who know her closely know how sensitive and magnanimous she is. Vasundhara is a lady of action, vision and quick decisionmaking.

What impact would the BSP have in these elections?
Rajasthan has traditionally been a state with only two parties. There was never scope for a third party. Election results would bear me out on December 8....Continue

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The Sunday Indian

Sun,sea and span

Inhaling the fresh ocean breeze while a cool subtle wind blew my hair away from my face, ignoring the 6 lanes of cars zipping by and the numerous diverse people walking and conversing by me, I was lost in my own world enjoying one of the beauties of California. Standing on the Golden Gate Bridge, bundled up with a light layer of clothing, I began my 2.2 mile walk across the bridge on one of my frequent visits to San Francisco (SF).

However, what made this trip unique was that I had decided to see SF from a tourist point of view, like I had in 1989, during my first visit.

The highlights of San Francisco-day-life are just as exciting and varied as the infamous SF nightlife. From a walk or drive down the world’s most crooked street, Lombard Street, to a cruise to Alcatraz Island, the infamous escape-proof prison meant for the most dangerous criminals until June 11, 1962, when two prisoners broke out and yet died while swimming in the cold waters of San Francisco Bay. Originally built and used as a lighthouse, the ‘Rock’ (as it is locally referred to) has now become a favourite tourist destination, for which daily ferry rides from Pier 33 take place every 30 minutes to allow visitors to experience the ocean and also give them a guided tour of the prison and its history. Alcatraz is known to have held famous prisoners such as Al Capone, Robert Franklin Stroud and Alvin Karpis.....Continue

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The Sunday Indian

Abbas-hamas head-on again

The Palestinian Authority's central council has designated to appoint Mahmoud Abbas as Palestinian president. It is largely a figurative office, as a Palestinian state is yet to be formed. The position has been vacant since Yasser Arafat's death in 2004.

Meanwhile, Mahmoud Abbas ­– who is facing a mounting challenge from Hamas to the authority of his rule – threatened that unless the Palestinian resistance group decides to reconcile with his Fatah movement, he is going to annouce fresh elections. Abbas threatened to issue a diktat early next year that will make both Presidential and Parliamentary polls mandatory. His term in office ends on 9 January. Hamas hurriedly discarded the bid, saying the thought itself was “unconstitutional".

“It's a symbol indicating the political problem that Abu Mazen (Mahmoud Abbas) and his group are facing while he is going to lose his official position as the (president) of the Palestinian Authority,” said Mahmoud Zahar, a key political figure in Hamas......Continue

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The Sunday Indian

Who is Lt. Col. Srikant Prasad Purohit?

Well neither did it appear to anyone else until investigations of the Malegaon blasts after the arrest of Hindu activist, Pragya Singh, led the trail of the deadly explosions to Purohit and a retired Major, Ramesh Upadhaya, amongst others.

According to insiders in the army, Purohit was given the critical responsibility of raising 41 Rashtriya Rifles, a dedicated counter-terrorism force that operates out of Kupwara, in northern Kashmir. Kupwara remains one of the main points of infiltration of terrorists from across the Line of Control. His tenure in Jammu and Kashmir ended in January, 2005, while serving in the Awantipora-based 31-Counter Intelligence Unit of the MI. Well informed sources say that Purohit’s involvement in the cloak and dagger game dates back to his days in the crucial MI in a Kashmir valley defined by civil war conditions - days where for a military intelligence officer, it would often become very difficult to differentiate between foe and friend. Like all sensitive intelligence assignments, the job demanded establishing contacts with jehadis, a task considered vital for reading the rival’s mind. The purpose: to pick up and collate information and tactical intelligence.


According to the ATS, during one of the raids, the army seized 60 kg of RDX which, later Purohit informed his colleagues, had been dutifully dumped into the Jhelum river. In reality, it was smuggled into Maharashtra by the army officer and his accomplices and subsequently used in the explosions. Military sources told TSI that Purohit was later moved to Panchmarhi in Madhya Pradesh for pursuing a Chinese language course at the Army Education Corps College – his parent cadre - from where he was arrested by the ATS.....Continue

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The Sunday Indian

It's not just America that is celebrating the historic Obama victory. The entire world is in raptures, reports Solana Larsen in this special despatch

Obama said he depended on the national citizen movement that made him President to end the devastating economic crisis the country suffered in the eight years under President George W Bush. "The road ahead will be long. Our climb will be steep. We may not get there in one year or even one term, but America — I have never been more hopeful than I am tonight that we will get there," he said amid cheers. This was indisputably one of the most hotly contested elections in US history. Voters stood in record-busting lines that snaked around city blocks, and dared to hope what had seemed impossible two years ago when a first-term African-American senator from Illinois announced that he was running for President.

The jubilation was equally unprecedented. On election-eve 28-year-old Indian blogger Aditi Nadkarni felt impelled to record, "I couldn't vote for Obama. But I wrote him." The young cancer researcher from India who lives in Rochester, Minnesota has been sharing her thoughts on the presidential elections on the South Asian group blog Desicritics.com. Here, she has recounted her personal experiences as an immigrant in the United States and raged against some supporters of John McCain for highlighting Barack Obama's middle name "Hussein" as a disqualifying trait. Indeed for weeks the campaign led by McCain and Palin had been attacking Obama for his alleged association with "a domestic terrorist" from the 1970s. And for some these false alarms actually worked — leading them to drum up wholly unwarranted fears about Obama's religion and ethnic heritage. Was Obama a Muslim? Was he an Arab! That was how it had gone!....Continue

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The Sunday Indian

Urgent provisions needed to rescue the poor and destitute

Haris Gazdar, an economist associated with Collective for Social Science Research based in Karachi agrees that at least five per cent additional population has been pushed below the poverty line in recent months. He said it was high time that the government introduce an employment guarantee scheme on the lines provided by India to combat poverty. "In fact, the Pakistan People's Party manifesto has such a provision, but it has not been implemented as yet," he said. Also he added that the poorest sections of the populace should be provided social security and a cash support programme, while their children should be ensured food support at schools.

Bengali who has been the National Coordinator Benazir Income SupportProgram (BISP) and Member National Finance Commission, believes the extent of economic crisis in Pakistan today is structural. He points out that it was in the making for 30 years but was aggravated during the last eight years. "Without the policies followed in the last eight years, we would have lasted a few more years but we were heading for a doom," he told The News on November 2.....Continue

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The Sunday Indian

Revive economy: key challenge for the new PM elect

IIPM Publication
At a time when the global financial meltdown has had a dreadful impact on a host of countries, to which the New Zealand and her 4.2 million denizens are no exception, the key challenges before Key remain: slump in the housing prices, 25 per cent drop in currency’s value, 33 per cent fall in the stock markets, and above all, the worst recession in almost a decade due to which the $130 billion New Zealand economy contracted in the first half of 2008. In fact, the economic health of the country is so bad that its central bank has already slashed the interest rates by 1.75 percentage points since July.

To address all these challenges and unemployment in the country, which is at a five-year high, John Key has already proposed to cut income taxes and redirect spending to roads and a high-speed Internet network to help create jobs. He also has plans to instruct the head of various departments to undertake a line-by-line review of their spending so that money can be saved. Moreover, Key is even targeting to attend Asia Pacific Economic Forum in Peru to get external help. But until then, the trader-turned-politician will have to go through tough times to manage the country. ....Continue

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The Sunday Indian

Satbir Singh, CEO, Euro RSCG

IIPM Ranked No. 1 B-School In Global Exposre - Zee...

Satbir Singh, CEO, Euro RSCG: There are few people in advertising who respond to ‘talented’ and ‘nice.’ Anand is one amongst them. He was first introduced to me as a ‘Hindi’ copywriter. However, in the three years that I have known him, Anand has shown that ideas have a universal language. I would like to speak about the ‘bajaate raho’ campaign that we created for Red FM. Once I handed him ‘Bajate raho’ as the foundation, Anand took over the project with his team and created what I would safely say is the best work for any FM channel. It gave the channel a distinct voice and identity. What’s more, it picked up several awards at the Abbys and Goafest as well.

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Source : IIPM Editorial, 2008

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

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What’s new about the business of sports in India? Nothing and everything, says 4Ps B&M’s Steven Philip Warner

Business and sports, or rather the business of sports is a global scheme beaten into shape and pronounced with impeccable style from time to time, by one business tycoon or the other. And the storyline woud read no different when it comes to the Indian sub-continent where huge money has flowed into the game of cricket, with big names in business themselves willing to take strike, moving beyond just acts of buying some $1000 worth 10-second TV spots or sponsoring players, teams and some well-flavoured series for millions of dollars. “So what’s so new in this context?” is what you’d question. Well, nothing and perchance everything!

Yes, indeed the business of sports has existed in the game of limited and test cricket, but today this enthusiasm seems to be spreading out to other games as well. And even in cricket, there’s not just one name willing to take that chance; there’re a host of bigwigs garnering enough interest in matters far beyond just buying ad spaces and sponsoring individual players! The reason behind these moves being obvious media coverage and added mileage to their brand equity as Santosh Desai, Brand Analyst justifies, “Really, it is a matter of fact that no matter how rich you are, you have an inclination towards sports. But there’s more to the whole case here; there’s of course a business edge to it all. Brand building being one, the other one is that sports is one thing which automatically gets you public attention and there is no such difference between media and sports in today’s scenario.” And how about buying off an entire team? Seems unconventional when we’re talking about India, but that’s precisely what’s radical about the manner in which capital is being piped into Indian sports. However, much as these developments create excitement, there are concerns about the sudden increased fervour as well as Harish Bijoor, Marketing Analyst discloses, “All of a sudden, every one in India Inc. seems to be excited about the business of sports. Surely, it’s a bubble waiting to burst! The valuations are so high at the moment. However, in the medium-to-long term, this bubble will surely rupture and everyone will realize their slip-ups…”

But the investors seem least bothered. And if you haven’t heard about it, after Subhash Chandra of Zee fame launched the Indian Cricket League, there’s India’s richest man, Mukesh Ambani keen on buying off the Mumbai team from the Indian Premier League (IPL, from the stable of BCCI). In the same breath, read about Anil Ambani aspiring to pocket the Delhi team. Speculations are also rife that Shah Rukh Khan of Bollywood and Russel Crowe of Hollywood are lining up to snatch up a team or two from IPL. And cricketers? Well, they can’t be far enough, can they? After Kishore Biyani of Pantaloons and Future Group fame found a willing gladiator in Sachin Tendulkar, we’ll most likely see this unusual partnership sweep away a team from the IPL too.

Names galore even with floor prices of each team touching as much as a spectacular $50 million each for a 10-year franchise! And why just cricket? Talk about Indian soccer too with Sunil Bharti Mittal announcing his $25 million investment (in association with the All India Football Federation, AIFF) to raise standards of talent for the sport in India by establishing a National Football Development Programme called the Bharti-AIFF Academy in Haryana or Goa. Talking about the initiative, Mittal remarked, “We have become too obsessed with cricket and the time has now come for us to develop football in the country. I am starting with a few hundred crore, but I assure you I am ready to invest any amount of money for whatever it takes for the academy and a few other initiatives…” Well said indeed, but then aren’t the stakes rising with every extra rupee invested? Surely, his vision to globalise Indian football and watch India play in the Soccer World Cup comes at a time when India Inc. seems focused to provide more than just a clerical vacancy to sportsmen.

Then there is Vijay Mallya of the United Breweries and Kingfisher Airlines fame who is burning tracks with his investment of $100 million in his dream Formula 1 team Force India proves that sports in India carries a meaning much beyond just cricket or even hockey! When asked about the whole development, Mallya’s knee-jerk response is, “I can’t comment on why other industrialist are associating themselves with sports, but in my case, it’s the sheer passion in me for Formula 1 sport that has brought me to this point. I have big plans lined up for F1 in India…” And what do the experts say? Binit Somaia, Regional Director, Centre for Asia Pacific Aviation asserts, “Many corporate houses have business interests in multiple sectors. Provided that there is a strong executive team in place to manage the various divisions, there is no reason why Mallya should not expand his horizons. Formula 1 ties in well with the lifestyle businesses and it has the potential to provide excellent global exposure to his brands.” Even Santosh Desai confirms the same as, “The F1 purchase goes with Mallya’s targets and his persona. Nobody wants to invest in a sport like hockey and there are very strong reasons for the same!”

Talking of automobiles, there’s Apollo Tyres with its investment of Rs.100 crore in developing Indian tennis. So while there is so much at stake considering the crores being invested, a question arises: Won’t this prove detrimental to the businessmen who seem to be devoting more than their share of the clock to issues beyond their business arenas? Precious time wasted – yes that’s the very concern we’re pointing to here. However, Harish Bijoor discards this concern as he remarks, “Like Mallya is investing in F1 and Mittal in football, I am more interested and concerned about the money than their time that they would have to spend on it. However, when reality dawns, they would realise their mistakes and whether they are paying too much for it.”

True enough, there is no doubt that the various capital infusion moves will give increased mileage to the respective commercial however, the risks are no less apparent. And worse, it might just be too late before the participants realise this… Surely, much play and no work will make the Jacks of India Inc. dull boys, very dull!

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

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

Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

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