Heil the Marxists

IIPM, ADMISSIONS FOR NEW DELHI & GURGAON BRANCHES

Lets stop this hogwash about patriotic credentials

Sutanu Guru, Executive Editor Business & Economy

First things first. Let’s please stop this baloney about the United States being a ‘natural ally’ of India. The history of the last 60 years reflects something entirely different. Till recently, Uncle Sam has consistently and insultingly bracketed India with Pakistan in its foreign policy. During the 1971 Indo-Pak war that eventually led to the creation of Bangladesh, the US not only tilted decisively towards Pakistan, but also threatened India (Some natural ally, this!). Till 9/11 seared America, India would go hoarse complaining about cross border Islamic terrorism emanating from Pakistan. American officials couldn’t care a fig. In the early 1990s, the US pressurised Russia and forced it to stop and kill a missile deal and a cryogenic technology deal.

So in all this bewildering brouhaha over the Indo-US nuclear deal, lets not get misty eyed with romance and naiveté about Uncle Sam’s goodwill towards India. To that extent, this column applauds Prakash Karat and Sitaram Yechury for providing a warning about the true intentions of America. No doubt they are patriots and honourable men.

But this columnist would be happier if Messrs Karat and Yechury also do the following while condemning American Imperialism:

• Condemn the atrocities committed by Soviet Dictator Stalin that led to millions of needless deaths.
• Condemn the Chinese Cultural Revolution as a mad scheme that took millions of lives.
• Unequivocally condemn the 1962 Chinese invasion of India and shout loudly each time China states gratuitously that Arunanchal Pradesh is Chinese territory.
• Condemn the brazen manner in which China is destroying the centuries old heritage and civilisation of Tibet as an ‘Imperial Power’.
• Condemn the 1979 Chinese invasion of Vietnam to “ teach a lesson” to that tiny but brave country that has always resisted Imperialism of all hues.
• Condemn the overt and covert support that China has provided, and has been providing, to the nuclear and missile ambitions of Pakistan.
• Condemn the Tiananmen Square massacre of 1989 when innocent students were gunned down by Chinese tanks.
• Condemn the manner in which the Chinese State allows American multinationals to use ‘virtually slave labor’ to produce cheap goods. Can Karat and Yechury do all this? Extremely doubtful. That’s why this columnist humbly requests them to stop insulting the native intelligence of Indians by such a petulant and childish display of double standards.
  

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2007

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

For More IIPM Info, Visit Below....
IIPM Mumbai Parables - Stories that change life
IIPM International Student Exchange Programme
IIPM, GURGAON
ARINDAM CHAUDHURI’S 4 REASONS WHY YOU SHOULD CHOOSE IIPM...
IIPM Economy Review
IIPM :- Cicero's Challenge is going global
The Indian Institute of Planning and Management (I...
Time for Awards at IIPM
STUDENTS AGAINST CORRUPTION & KICKBACKS : SACK
Heavy dut(t)y stress Sanjay Dutt Bollywood Actor
The Business of B-School Rankings & The Big Farce

Gulliver’s paradox!!!

ARINDAM CHAUDHURI’S 4 REASONS WHY YOU SHOULD CHOOSE IIPM...

Real estate prices & resistance from small retailers could stop the Reliance juggernaut

“We are not afraid of any competition,” comments Raghu Pillai, President & CEO Reliance, as he interacts with Business & Economy on the eve of the launch of the first Reliance Hypermart in Ahmedabad, Gujarat. Coming from an official at Reliance, that’s hardly a statement that could engender any element of consternation in the listener. Besides growth, nonchalance for competitors has also become a way of life for India’s most valuable company.

As far as retail is concerned, Chairman Mukesh Ambani does have reasons to celebrate. Those anticipating a brutal war happening between Reliance & Wal- Mart, have reasons to be sorely disappointed. The Bharti-Wal-Mart ship, after navigating through cumbersome rules & regulations, is marking a relatively low key debut with wholesale cash & carry operations. Meanwhile, the spectre of Reliance only gets larger, with 240 Reliance Fresh stores already set up & Reliance Digital off the mark. And with Reliance Mart, even the Pantaloons, Tatas & Birlas could find it immensely daunting to match the onslaught.

It’s interesting to note how the August 15 launch of the 165,000 square feet mall in Hyderabad has been timed with the 60th year of Indian Independence, ostensibly to herald it as another revolution, an ode to the Indian shopper, with his unique tastes & preferences. Mukesh calls it a landmark attempt from Reliance to provide an “international shopping experience to all our customers at unmatched affordability, guaranteed quality & choice of products & services.” The company plans 30 such outlets by the end of 2007 and 500 by 2010, a blistering pace compared to the incumbent Pantaloon, which has only managed 66, since inception in 2001. But the average consumer, who’s already experienced Big Bazaars, may ask, “Where’s the revolution out here?”

Maybe not the pioneer, but has that ever deterred Reliance? States Parimal Nathwani, Group President-Corporate Affairs, Reliance Retail, “Even in Infocomm time (when Mukesh had launched it), Reliance moved to the top very quickly, despite being a late entrant. We grow very fast.” With its plethora of tie-ups, Reliance is diff erentiating itself with a number of unique brands & highly competitive prices. When asked by B&E if the company would like to give a low price challenge like Wal-Mart, the otherwise exuberant Pillai comes up with a very guarded response, “We will be off erring all the products with best possible price. But we will not only fight the price game on price alone...” An insider, on condition of anonymity, revealed that the company was retailing quite a few products at below cost price to attract buyers. Trust Reliance (slated investments of Rs.250 billion in retail), to be able to afford such extravagances.

However, if Reliance has the strengths of Wal-Mart, it may face quite similar challenges. The first challenge, of course, is real estate. Pillai agrees that huge gambles have to be taken on which property to invest in. To compete on prices, Reliance would try to open up its stores away from the city, but that would turn off customers. When asked about plans for a hypermart in New Delhi, a Reliance official stated plans for one in Ghaziabad. Due to constraints of property, Reliance is not going the franchise route. But with its deep pockets & minimum policy hurdles, Reliance is in a position to take up the best of what’s available.

Furthermore, the Wal-Mart experience with bad publicity is known to all. And quite ominously, Reliance is already facing the brunt of small retailers. Reliance Fresh stores have been attacked in Kolkata & Ranchi. Even though Reliance is not ‘foreign’, it’s business model is quite similar to Wal-Mart, and small retailers now dread & despise the way Reliance is spreading its tentacles across the country. In that sense, while Reliance is symbolizing liberation for consumers, it seems to be symbolising subjugation for small retailers. While organised retail is not Reliance alone, the company could unfortunately end up becoming the most likely and visible target for angst.

States Pillai on the protests, “There will always be opposing points of view, if you see job creation opportunities, the benefits far outweigh the pitfalls. We will lose some links in the value chain. But these will be links that are not adding any value.” He also reiterates how organised retail will be around $60 billion in a span of 5-10 years, which will still be only 15-20% of the total retail space in the country. In addition, Reliance is taking the very critical step of engaging with small grocery shops in the country for B2B opportunities, an initiative which, according to Pillai, would be launched soon.

Clearly, while maintaining superior value for customers will have to remain high on the agenda, Reliance must also ensure that its initiatives to benefit the retail sector as a whole, move much beyond the realms of publicity. Indeed the threat for Reliance is not the competition, but the fear this ‘Gulliver of Indian retail’ strikes in the hearts of adversaries. Surely, it needs more friends among the ‘Liliputs’ than foes!

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2007

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

For More IIPM Info, Visit Below....
IIPM Economy Review
IIPM :- Cicero's Challenge is going global
The Indian Institute of Planning and Management (I...
After CDMA, will nokia miss the 3G bus ?
Time for Awards at IIPM
STUDENTS AGAINST CORRUPTION & KICKBACKS : SACK
Heavy dut(t)y stress Sanjay Dutt Bollywood Actor
The Business of B-School Rankings & The Big Farce
36TH Full Time Programme In Planning & Entrepreneu...

Coke showers drops of joy

ARINDAM CHAUDHURI’S 4 REASONS WHY YOU SHOULD CHOOSE IIPM...

Sometimes a soft drink is more than just a fizzy, sugared liquid. Sometimes it symbolises an exhilarating lifestyle or, at times, a more humane & community-engaged face of the organisation. At least, that’s how the fizzy drink maker Coca Cola wants to market itself now. Getting more fizz out of the bottle, the soft drink major has recently unleashed a brand new corporate campaign – ‘Little Drops of Joy’ – for India. Put together by Prasoon Joshi headed McCann–Erickson, the campaign ropes in emotions of denizens of this country to strengthen Coke’s position in India. The new corporate logo & communication primarily highlights the fact that Coca-Cola has been a part of every day life of its consumers and the company is going gung ho with a 360-degree communication initiative for this campaign. Further, to put a stymie against the environmental related issues & unhealthy factors, the fizzy drink maker also cashed in the particular platform to unleash its ‘5-Pillar’ strategy that stands for Portfolio, People, Planet, Partners & Performance. The strategy includes initiatives such as Coca-Cola’s plan to build an equipment testing facility at Hyderabad to ensure their commitment towards quality. The company also plans to make its product portfolio exclusively customised for India. The emphasis would now be on local tastes with a pinch of health to it.

India plays a major role in the scheme of things for both Coca-Cola & its arch rival PepsiCo. And in an effort to show its further commitment for this country and ante up its ammunition to tap the immense opportunities available, the company would also be shelling out $250 million over a period of next three years to create bottling capacities for new product offerings, along with value creation for all its business partners. Hope these little drops of joy turn out to be big for Coke.

For Complete IIPM Article, Click on IIPM Article

Source : IIPM Editorial, 2007

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

For More IIPM Info, Visit Below....
IIPM Economy Review
IIPM :- Cicero's Challenge is going global
The Indian Institute of Planning and Management (I...
After CDMA, will nokia miss the 3G bus ?
Time for Awards at IIPM
STUDENTS AGAINST CORRUPTION & KICKBACKS : SACK
HRIC :- Human Resource Intelligence Cell
Heavy dut(t)y stress Sanjay Dutt Bollywood Actor
The Business of B-School Rankings & The Big Farce
36TH Full Time Programme In Planning & Entrepreneu...