Thursday, July 31, 2008

Great Bears and greater bailouts


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Bear Sterns was and is ruthlessly quoted everywhere for its weak approach to doomsday. And it knows it was at fault. However, in the huge ocean of cashplay, there are several others who are hiding their Achilles Heel inside their financial shoes. Question is: Who’s next?

After the Bear Stearns collapse, the question everyone’s asking is who, not whether there, are the other Bear Stearns that are lurking in the financial closets in the US? The reason: there seems to be some form of a ‘Domino Effect’ in the American markets. The Federal Reserve chief , Ben Bernanke, has admitted there could be more Bear Stearns in the near future. UBS has admitted that the combined loss due to sub-prime crisis could be as high as $600 billion for the financial services industry. The expectations are that Citicorp will probably announce poor results for Q1, 2008.

At this moment, investment banking, brokerage and banking firms like Lehman Brothers, Goldman Sachs and UBS are being touted as the next casualties. Most experts feel that Lehman Brothers is probably the “weakest” of the Wall Street titans, after Bear Stearns, and also one of the leading players in the mortgage-related derivatives and in other mysterious credit-related derivatives. But the negative impact may well spread to other sectors in the US over the next few quarters. Read a recent Wall Street Journal piece: “As recently as a few months ago, it looked as if the damage from a battered US real-estate market would be limited to banks, brokerage houses, and other financial firms that played a key role in inflating the housing bubble. But as the perception grows that the United States may already be in a recession, the gloom is spreading to other parts of the business world. This is raising questions about the prospects for overall corporate earnings…”

However, in the financial services space, analysts contend that all of them are ‘vulnerable’ to a certain extent of a run like the one witnessed in the case of Bear Stearns. The bright side is that the financial status of firms like Lehman Brothers may be better than Bear Stearns. Bear Stearns was more occupied with the mortgage-backed market, far more leveraged than many others. Although many banks ended up owning some of the derivatives packets that originated from Bear Stearns, many didn’t keep on stacking them up. On a positive note, if the other firms had the liquidity, their ‘Bear Stearns’ positions might have twisted out to be very profitable, even in these extremely difficult days.

But, in the short term, almost everyone will suffer. For instance, JP Morgan Chase, which agreed to buy out the beleaguered Bear Stearns for $2 a share, has been under pressure from the latter’s shareholders of a possible legal action. The reason: Stearns’ investors thought the price was too low. After all, Bear Stearns reported $80.3 billion in total long-term capital at November 30, 2007, and generated net revenues of $5.9 billion for 2007. Moreover, Chase’s acquisition bid price was much less than Bear Stearns stock price of $160 less than a year ago. So now, Chase has decided to hike its offer price by five times to $10 per share. It has also decided to fund the first one billion dollar losses.

“Going forward, the maintenance of strong capital ratios is important because JP Morgan Chase’s ability to generate capital will be challenged in 2008 by its need to take heightened credit costs in its own businesses,” said Moody’s Senior Vice President Sean Jones. “Despite a challenging environment, JP Morgan Chase’s effort to consolidate its numerous business platforms in recent years gives it the flexibility to absorb this acquisition”, feels Jones. But such optimism is on the decline these days.

The day Chase initially announced its takeover, the Federal Reserve reduced interest rates, as it did again on March 18 by three-quarters of a percentage point. It seemed as if the Fed was rewarding those who were responsible for the financial crisis. So, the next question is how many Wall Street firms may follow Bear Stearns into the void? More importantly, will the Fed efforts help to enhance buoyancy in the American financial system and improve sentiments among all US & global investors?

Since the 1929 Great Depression, the Fed has not only taken a unique action – by lending money directly to major investment banks – but has put taxpayers on the hook for billions of dollars in dubious trades the same bankers made when the good times were rolling. To complement the environment, the Fed has agreed to fund, on a non-recourse basis up to $30 billion of Bear Stearns’ less liquid assets to JP Morgan. It may seem like a one-off bailout, but who can ensure that such help will not be required for other ailing brokerages, investment bankers, and banks.

In midst of all this, if not a recession, are we likely to have a longer and deeper slowdown that we’ve had, at least in recent times? The fascinating thing is that the slowdowns have been a little too long, but much shallow – to our surprise! The feeling is that the stock market may not pick up until 2009, although 2008 might offer pleasant surprises in the second half. In all, it’s going to be a very gentle recession in the US, if at all one happens, feel market experts. But then, who knows what surprises are in store in the future?

In the middle of all these technicalities, the investors are in a dicey situation. Well, it’s interesting in terms of when you should sell. One thing which is to be looked at is market sentiment and there have been certain indicators that have given out negative signals on the part of individual investors. But then a market turnaround can always be expected when investors are all wary. The Fed is doing everything to make sure that liquidity is in the system. While we take comfort from the proactive policy response being undertaken by the Fed, investors should still be cautious regarding the heightened levels of volatility in the financial markets over the coming quarters.

However, most experts are convinced today that Bear Stearns will not be the last major sufferer in the American financial markets since the additional write-downs announced by Lehman Brothers and Goldman Sachs indicate that there is no clarity yet on the losses feeding through the system from defaulting mortgages and falling US house prices.

Sunanda Roy

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).

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Tuesday, July 22, 2008

The Big ‘B’ of venture capital in India


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“We are a long-term, patient investor; if you have to build world class companies, it does take time,” believes Bessemer Venture Partners, India

They are perhaps, as old as the concept of venture capital itself! Some of the best known technology brands globally have been seeded by Bessemer Venture Partners–the oldest VC firm in the United States. Bessemer steered its way into India in 2003 and made its first investment in year 2005. While the biggest of big, share this regret of “we should have invested much before in India,” this fund has no regret. According to Bessemer, the India growth story has just about begun and that they are a long-term and patient fund. In an exclusive tête-à-tête with 4Ps B&M, Devesh Garg, Head of Bessmer’s India practice, dwells at length on the correct recipe of creating a world-class company...

When did Bessemer actually got serious about India growth story?

In 2003-04 we started getting interested in India. I and my partner Rob Chandra, made the first trip in December 2002. We felt that India was becoming a really interesting place to invest in. An observation we made at that time was that India was not ready for traditional hi-tech investing, the kind of investing that we specialise in. We came to the conclusion that Indian investing will primarily be non-technology oriented. So, we started getting active in 2003. In 2004, we established our offices – one in Mumbai and another in Bangalore – and for the last four years, we have been actively investing in India. We have one of the largest India dedicated teams in place, comprising 14 people, 10 of whom are investment professionals. I have also physically relocated to India. I don’t fly down from US, make an investment and fly back. All this shows our commitment toward India, as we think long-term growth prospects are tremendous in the country. We have $500 million of committed capital across our two funds in the country.

What is Bessemers’ unique investment philosophy? How are you different from other service provider?

We look to find a strong alignment between our Limited Partners (whose money we have invested in) ourselves and the promoter/entrepreneur that we back, which makes our long-term success easier. We are very rigorous in our research and stay focused. We like to look for emerging growth sectors that offer things off-the-beaten path. This is because we have a long-term view and therefore stay very disciplined. Our investment size ranges between a dollar to somewhere between $30 million. What I mean by a dollar is that we would love to invest in seed companies too. We will take on entrepreneurs, we are really excited about that, give him the seed capital and help him start the company.

We add value in three areas – first, we have expertise in scaling and building operations, worldwide. Second, we have the ability to source customers. No matter what business you are into, you are always looking for customers whether local or global) and we have the ability to help investees with that. Lastly, financial sophistication. We understand how to assist in areas of financial sophistication, as we have operating partners to help with that.

Which are your most promising investments in India? And what sectors are you bullish on?

We are investors in Anant Raj industries (Construction and Infrastructure Developers), in Motilal Oswal (Financial services), Shriram EPC (servive provider for renewable energy projects), OnMobile (VAS for mobile operators), Deccan Chronicle Holdings (media). We have invested in a couple of start-ups as well, like Sarovar hotels (hospitality)and Sunil hi-tech (company focussing on power sector). We are also investor in Lloyd Electric, KS Oils and NetAmbit. We had four IPOs in a relatively short period of time, but we continue to hold on to our positions because we feel that there exists a positive long term opportunity. IPOs are not necessarily an exit event, it’s just a financing event and we still believe that these companies have a long way to go. Besides, we are a long-term, patient investor; if you have to build world class companies, it takes time. We invest across all geographies and sectors and our Indian portfolio reveals that. We forsee an investment boom in the infrastrucure space and all businesses that are linked to the growing consumer class of India, particularly growth-oriented, non-tech areas.

Apart from growth capital, what else does Bessemer bring to the table?

Within Bessemer, we have this concept of operating partners. The idea is to bring value added services to the companies. At the end of the day we are a service provider and we want to make sure that we have all capabilities in-house to add meaningful services and assistance to portfolios of companies that they should want. It is something that we do as a part of our association with each investee.

We have Sridhar Iyengar (former chairman and CEO of KPMG India), who brings deep experience in tax & audit; Mandeep Khaira (senior executive from Dell) – an expert in operations and procurement; Yagnesh Sanghrajka (former Global CFO for Hinduja TMT), so he knows how to deal with family-owned companies. We find promoters and entrepreneurs that have the ambition to create world class companies and ability to recognize things that we bring, and then jointly partner to create that.

How supportive is Bessemer when it comes to individual business ideas?

Oh! very supportive, our culture, our history in the United States is very centric towards that. So in terms of practice, we are comfortable with doing that and we have done it in India as well. For example, BA systems or Sunil hi-tech. If we find an entrepreneur and an idea that we think has all the merits of a top rated investment, we will do that in India. BA systems is an example of taking an idea we believed in, forward. He (the promoter) has created the ‘First Made in India Router’ EN 3500 and is doing well.

Your advice for Indian entrepreneurs who are looking for funds?

Markets today in India are at an early stage. An average Indian promoter is very inexperienced when it comes to dealing with PE/VC. It’s hard for them to distinguish between a Hedge Fund money–typically hot money–and long term capital (a PE or a VC). They think that a dollar is a dollar. An entrepreneur/promoter should be careful from whom to take money. They should find somebody who has value-added capabilities, somebody who has a successful investing background, somebody you know is going to be with you for the long run. Businesses too undergo cyclical ups and down. You have periods of rapid expansion, then possible sluggishness. So, in case of a slowdown, if the investor pulls out the plug, you (the investee) are gone.

Can you quantify Bessemer’s returns in previous years?

Well, I won’t get into specifics, but name a fund that has so many IPOs to its credit. More than 100 of Bessemer’s portfolio companies have gone public on exchanges from the NYSE and NASDAQ to London’s AIM and India’s BSE. That says it all.

Edit bureau: Asif Ahmed

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.
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IIPM - Admission Procedure
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Saturday, July 19, 2008

Next digital decade...


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Bill Gates & Paul Otellini point towards the future of communications

ConsumerBill Gates and Paul Otellini Electronic Show (CES) is undoubtedly the most awaited technology event for any tech lover. And like every year, the CES 2008 saw technology giants demonstrate their latest products and reflect upon their technology road map for the future. However, as always, Mr. Gates stole the limelight at the CES, showcasing his vision for the next digital decade.

Importantly, Bill Gates predicted that the global technology industry was on the edge of a ‘Digital Decade’. He emphasised on the fact that connectivity will be a pervasive part of our daily lives through devices like televisions and mobile phones. “Everything will connect up. You’ll just take it for granted. No longer will users have to bridge between devices and remember what’s where,” Gates told at the CES in Las Vegas. He further opined that entertainment would be digital in nature and also predicted that the digital decade is ought to change the way people would interact in a few years time.

The next digital decade will be characterised by the onset of more natural user interfaces like gestures and visual recognition. Hence, people would be interacting through methods like speech and touch over the next decade and devices like mouse and keyboard would soon be history. This fact can be corroborated with the trend that devices like iPhone (which is basically a touchphone without a keypad) and Wii motion-sensing video game machine have been accepted well by the consumers worldwide. Also, Microsoft’s latest product like Surface computer is nothing but a tangible extension of the same concept.

Microsoft Research-developed visual recognition technology that recognises people and uses a 3-D visualisation to guide the user. This application, named Tellme, has a voice recognition service called ‘see and say’ that guides users through purchases and content sharing, such as finding, buying and sharing a movie ticket with someone. As per Gates, this application would some day be an integral part of the Windows Mobile devices. Even Intel CEO Paul Otellini gave his visionary speech at the CES, outlining his prediction of a more “personal Internet” – which will be proactive in serving users the personalised information and entertainment.

Interestingly, in this new age of ‘personal internet’ the devices would be location-aware, and would access the Internet over Wimax wireless connections. As Paul Otellini said, “Instead of going to the Internet, the Internet comes to us.” Intel believes that breakthroughs in chip development are needed to solve the problem of faster chips requiring more power and becoming less efficient. Intel also declared that they have developed a roadmap for five more generations of chips to be released over the next 10 years. At the CES 2008, Intel unveiled a range of new processors, including chips designed for so-called ‘mobile Internet devices’. Intel’s new chips, which are 25% smaller than previous generations, are expected to hit the market soon.

Well, if Gates vision is materialised in the same time frame when Intel comes out with its break-through chip technology, the future of Internet will be an altogether different experience. With Microsoft’s next generation digital concepts and Intel’s chip platform working at a lightning speed, the next digital decade will surely herald a revolution in personal communications.

Edit bureau: Sray Agarwal

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
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Friday, July 11, 2008

Future Brand; future check


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Creating more brands remains the guru mantra…

Don’t get carried away Future Brandby the headline, this is neither a heavily loaded sci-fi flick based on future predictions, nor are we testing a time-machine. But recent developments in Future Brands, a fully owned subsidiary of the Future Group, have raised a wave of interest in India’s home-grown retail czar Kishore Biyani’s next gen private-labels ambition. The group currently boasts almost 15 in-house brands and plans to take the total upto 40 brands in the next few years. The expansion has begun. The group launched Dreamline – a home adornment brand – two months ago (with Hema Malini as brand ambassador) and by the time you have a copy of this magazine in your hand, they’ll have re-launched apparel brand John Miller, from their kitty.

Earlier this year, the Indian market saw the launch of Future Brands from the Biyani stable, wherein the group roped in veteran marketer, Santosh Desai as Managing Director and CEO of the in-house division. Desai, who in conversation with 4Ps B&M a few months ago, had boldly announced to revamp and recreate myriad private labels in the Future Group kitty, apart from offering specific brand consultancy services. “At ‘Future Brands’, I would be creating in-home and consumer durable brands. These brands will be a result of deep understanding of India and its consumers which will form a “connect”, which is very important.” And going by the brand blitz being unleashed by Future Group, seems Desai has lived up to his promise, and that too in less than six months. Interestingly, Desai, who considers himself as an intellectual property creator, feels he still has miles to go in his branding journey. “There’s more to do. Over next few months, you’ll see the launch of a few more apparel brands and next up are consumer durable brands from the Future Group stable.”

Some have interpreted this initiative of Future Brands as an umbrella branding initiative. “They are consolidating businesses and expanding in several areas under a common banner. It is not like any other retail venture. But the think tank has resorted to umbrella branding as this exercise is definitely cheaper,” offers Anmol Dhar, Chairperson, SuperBrands India. However, Desai clarifies that this is a misconception. “It is not umbrella branding, but the Future Group is the umbrella itself and we are just looking at revamping our private labels across categories like apparels, consumer durables and FMCG through widespread awareness and by creating enough equity for them.”

Clearly, both Future Brands and Santosh Desai are busy recreating and revamping private labels and building a fresh connect with Indian consumers. Desai further informed this magazine that the group will not just rely on sales and promotions within its retail outlets to build the new brands launched by Future Group. “We will have a barrage of print and television ads to position and promote our respective brands among consumers,” he says. Having crafted and created numerous ‘hit ad campaigns’ and ‘brands’ by lending his ‘Midas Touch’ to them, little surprise that Santosh is confident of achieving success. Do we see Kishore Biyani grinning widely?
Edit bureau: Romsha Singh

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).

For More IIPM Info, Visit below mentioned IIPM articles.
When IIPM comes to education, never compromise
IIPM, GURGAON
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!


Thursday, July 10, 2008

Bajaj Allianz General Insurance Co. Ltd.


When IIPM comes to education, never compromise

For Bajaj Allianz General Insurance Co. Ltd.three years in a row, Bajaj Allianz General Insurance Company Ltd., a joint venture between Bajaj Auto & Allianz SE, has been the only general insurance company to make underwriting profits. Its sterling financial performance was, thanks to its winning combination of claims handling and customer sensitivity. Keeping in mind the fact that the size of the non-life insurance enterprise in India is set to become a $20 billion industry by 2011, the company has set a target to increase its market share from the current 8% to 10% by the year 2009- 2010. Its recent tie-up with South Indian Bank to distribute its general insurance products, is very much along the same lines to increase its presence. It is now focusing on segments where pricing is not the only criterion to choose the insurance partner. Although in the de-tariffed scenario, the company has re-jiged its products portfolio, it has continued to nurture and grow its traditional lines of businesses. But with competition hotting up, the company needs to keep fine-tuning its strategy. That’s one sure insurance against being left behind in a fast evolving industry.

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).

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!


Wednesday, July 09, 2008

HR Bytes - It feels like a real big family


IIPM is A World of Career

Beauty can be skin deep, but HR has to touch the heart. Emami is out to do just that by making all employees feel like they are a part of one big family


Legend has it that Cleopatra used to take hours to get ready and in order to enhance her beauty, she bathed with the best of wines and milk to get that perfectly glowing skin. The age of Cleopatra may well have become a thing of the past, but looking good has certainly not. As a matter of fact, with the passage of time, looking good is no longer confined only to the fairer sex; the metrosexual man have shed their ‘rough and tough’ looks and have become much more image conscious. They are all out to ensure that they look akin to Venus de Milo. No wonder that suddenly the men’s personal care market is witnessing a hitherto never seen before action. The market for the male grooming products in India, at present, is worth Rs.400 crore, but is expected to grow in double digits in the coming few years. Such figures are luring beauty care companies to take head-long plunge in to the male grooming sector. Leading the pack is the Rs.1500 crore personal care company – Emami.

The beauty care company was the first to enter the men’s fairness cream segment through its brand Fair and Handsome. Aggressive marketing and signing on Shah Rukh Khan as brand ambassador did wonders for their male fairness cream. In the health care segment too, Emami has in its kitty, some poplar brand names like Boroplus antiseptic cream, Navratna oil, Boroplus prickly heat powder, Sona Chandi Chyawanprash and Mentho Plus pain balm, and of course, a wide range of other Ayurvedic and hair care products. With such varied products in its kitty, a lot of emphasis is laid on the sales and distribution network. The salesperson has a key role to play in the organisation. However, hiring the best talent is foremost on the minds of the HR. In a tête-à-tête with 4Ps B&M, Ratna Sinha, Head-HR, Emami. said that, “Emami, a major FMCG player, is on the wish list of many candidates just out of the B-schools. However, with Emami based out of Kolkata, it is not so easy to get talent on board. As most of the FMCG companies are based out of Mumbai, so Emami faces a big challenge to get people to come to Kolkata.”

So, this is an area where the HR has a special role to play in convincing prospective candidates to shift base to Kolkata. Adds Sinha, “Although one needs to talk them into moving, but at the same time, one needs to be factually correct and draw a realistic picture, as raising the bar of expectations and then not delivering would lead to an expectation gap that could result in people leaving the organisation.”

The entire FMCG sector is in the grip of attrition problem. Emami too has been besieged by the attrition phenomenon. Although when asked to comment about the attrition figures at Emami, Sinha diplomatically states that it is not very high, neither very low. “It’s same for all sectors again! Young blood – they just want to change jobs frequently. Some companies have in fact altogether stopped taking management trainees,” avers Sinha. An important task cut out for the HR department is to instill a family bonding between the owners and the professionals working at Emami. Sinha elaborates, “We started as a promoter driven company, but now that we are listed, promoters work closely with other professionals in the company, like a close knit family.” Also, there are no strict hierarchical methods that are followed at Emami. For instance, you do not need permission before entering a senior’s room; of course the availability is checked out over the phone. Everybody is very approachable and it’s an open-door policy, where everything thing is kept transparent, and there is no rigidness in the system.

Well, there is little doubt in our minds that Emami is striving hard to become the employer of choice. Sinha further adds, “We are working on various studies to benchmark on salaries and benefits. Initiatives on employee benefit schemes and employee friendly activities and social competitions keep us going.” Also the drive in Emami is to build an atmosphere, which is friendly, informal and cheerful.

All this does not imply that Emami is an all fun and no work company. At Emami, a whole lot of emphasis is given to training and development (T&D). Emami conducts in-house programmes at regular intervals, apart from sending some of their workforce to the reputed institutes for MDP (management development programmes) and other long duration programmes. They also organise a number of outdoor camps for experiential workforce.

Apart from the T&D sessions, rewards and recognition also play a big role in motivating the employees. Sinha points out, “We do recognise our people by letters, gifts or even promotions to take up higher responsibility.” Other friendly practices, like awards for ‘Mr. Elegant’ and ‘Ms. Elegant’ on the Emami Family Day, go a long way in motivating the employees.

For a company that makes a living out of making its customers look good and feel good, the above award in fact works as a strong driver to groom their personnel and be well presentable all the time. But one thing is pretty sure that the feel-good factor for the staff working at Emami also makes them feel like a Cleopatra, or a Venus de Milo, in case of the men folk that is ;-)
Surbhi Chawla


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).

For More IIPM Info, Visit below mentioned IIPM articles.
When IIPM comes to education, never compromise
IIPM, GURGAON
IIPM - Admission Procedure
Why Study Abroad When IIPM Gives You 3 global Advantages!


Tuesday, July 08, 2008

A Diamond Jubilee to Cherish


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As Independent India turns a scintillating sixty, it’s younger like never before…
ABHIMANYU GHOSH CEO, Planman Media
There’sABHIMANYU GHOSH CEO, Planman Media a new watchword in global circles, as mystifying as it is alluring, as contemporary as it is unpretentious, as powerful as it is uniquely endowed, making its presence felt across the realms of business, the knowledge economy, sport, culture, art and entertainment with consummate ease in recent times. It’s long since decided to break free from the shackles of stereotypical inertia that bound it, and today showcases a blend of spirit, expertise, dynamism and potential rivalled with the best in the world. More significantly, it represents the planet’s most rapidly developing free enterprise democratic nation and depicts tales of a land where individuals venture to dream and make a difference. You got it… Brand India!

So, as we stand on the threshold of our country’s 60th Independence Day, I believe it’s apt to revisit the very definition of this glorious brand as it dazzles in the context of the presentday international socioeconomic milieu. The quest, while in equal measure fascinating and intricate, unravels a few elements that strike home on first thought: Brand India, unlike the vast majority of its counterparts, is still a smorgasbord of multiplicity – distinctly varying territories, languages, castes, religions and demographic realities lie enmeshed seamlessly – and astonishingly, a fact that has, and in all likelihood will, continue to remain unchanged no matter how further we progress from the laudable sustenance of 8% growth rate over the last few years, the burgeoning of our foreign exchange reserves or the heights of the stock market we currently revel in! Ask the Kelloggs and LGs of the world for their initial taste of the Indian consumer, and you’ll find soon enough how marketers have had to customise, improvise and then some more, in order to succeed in this assorted (pun unintended!) ambience. And that brings me to my next inference: the highly advanced brand that India has transformed into since the days of yore. Outsourcing is ‘in’, and though it might be hailed as the Mecca of ITITeS, the trinity of R&D, export and manufacturing – particularly in the pharmaceutical and auto-component sectors – is gaining ground as a formidable industry driver in its own right. A far cry from the age when the country was tagged solely with the moniker of agrarian living.

Let’s now draw an interesting parallel between what we’re witnessing as we speak and the direct connect with an aspect of Brand India that’s caught the fancy of companies and audiences alike. I’ve said it before, but the saga of Indian Retail is one that unfailingly crops to the surface time and again, and the frequency with which mall and multiplex culture is proliferating not just in urban India, but across the periphery of smaller townships and satellite cities only goes to prove that Brand India today comprises of an engaging sub-domain of economic prosperity that one could ill-afford to ignore. Places like Gurgaon, Morbi, Thane, Tiruchirapalli, Noida, Navi Mumbai today exude an identity and appeal that is all their own, having evolved into centres of industrial excellence. Finally, and most fundamentally, I feel the soul of our nation today exemplifies one that has mastered the art of adaptation and change, a land in a state of perennial, positive flux whose populace is not just looking within for opportunity and growth, but in search of newer horizons to conquer. I’ll cite a business analogy increasingly manifesting itself of late: with companies like Bharat Forge, Ranbaxy, Dr. Reddy’s, Tata Steel, Mahindra & Mahindra to name a few, acquiring companies overseas and India Inc. on course for a veritable shopping spree with morethan 300 takeovers since the turn of the millennium, it’s not just FDI inflow that India is drawing attention for, but the outflow as well that’s not escaping notice (Assocham anticipates India’s outward investment to surpass FDI inward this year!)

So there… the essence of Brand India, in all its splendour. The obstacles on the path of superpowerdom remain though: poverty, health, education and infrastructure are issues pleading redress. And while we revel in the glory of a monumental August this fortnight, let’s pledge to strive toward a fair, free and equitable India for all. Jai Hind!

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).

For More IIPM Info, Visit below mentioned IIPM articles.
When IIPM comes to education, never compromise
IIPM - Admission Procedure
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!


Monday, July 07, 2008

(Net)working is fun, eh?!


Why Study Abroad When IIPM Gives You 3 global Advantages!

The truly incredible rise of the networking humans...

‘ManThe truly incredible rise of the networking humans... is a social animal...’ and there’s nothing so strange about it. So while ‘keeping in-touch’ comes naturally, there comes another need for revitalising and expand each one’s existing contact list... With technology complementing even this aspect of human behaviour, such interactions have been taken to new dizzy highs, with the power of the World Wide Web (better called ‘www’)!

Yes, the internet has introduced a wider & endless avenue, one which is better termed – ‘networking’. The new trend is highlighted by sites like MySpace, Facebook, Orkut et al (sites like hi5 are already old now, phew!) and the likes that link millions together, such that an individual today has little options left besides being drawn by the magnetism that attracts all attention towards these networking options that are available so easily...

And however powerful the concept of virtual networking might have become, the fact remains that even the biggest names in this field wouldn’t have ever imagined the powerful reach and revenues associated with this new found rage. Youngsters today have close to 300 networking sites – both big & small – to choose from that best suits their unique tastes and interests them.

This leaves the whole lot of opponents scrambling to retain their members, making them all vulnerable to the fancies of these young bloods. Commenting on the scene in India, Neha Gupta, Sr. Research Analyst, Gartner says, “The internet penetration in India stands abysmally low at less than 1%, so at present the social networking sites have a very limited impact on the Indian population – both in terms of business and social impacts. As India moves forward in its goal to achieve higher internet penetration, social networking sites like YouTube or even an Indian replica of “Cyworld” (an internet community) can be used as a tool (equally by the governmentas well) to increase awareness and interaction.”

Currently the social networking market in US is ruled by MySpace which holds nearly a 80.74% share, distantly followed by Facebook with a 10.32% share and India’s alleged favourite ‘Orkut’ trailing behind with just 0.26%! The rankings submitted by Hitwise, an online monitoring service, also stated that in US alone, the traffic to the top 20 social networking sites jumped by 11.5% in a matter of a month from January to February 2007.

The huge boom in this field has also resulted in players toying with newer ideas. Business networking also appears to be on the rise as contestants look to developers to get them in the ‘league’. Sites like Linked In aren’t looking for gaining popularity with huge number of members on their list. Instead, their target is the slightly older and professional generation looking to compare business techniques. On the other hand, we also have someone like IBM which has whipped up ‘Lotus Connection’ through which teams share documents & work on projects. On the social front, Nike enables its users to connect to millions of Nike users worldwide.


Indeed, networking has become quite addictive today, but as long as this proves healthy for the emotional being, who cares whether it’s business or err...personal!

4Ps B&M research: Aveena Lopes

Saturday, July 05, 2008

Twinkle twinkle little Star


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Its ‘Star’s are not shining all that brightly and the Ze(e)al’s gone missing too...

For six long years, Zee was the silent number three on the Indian television landscape. In 2006, it sprang back. Number two is its resting point these days. But, the desired destination is number one, which seems everything but out of reach for now. Meanwhile, there’s one player which silently bore the brunt of the Zee-Star face-off – Sony Entertainment Television. Pushed to No.3 today, Sony’s chances for a Zee ishstyle comeback, look very far from sunny.

Smriti Irani ruled Indian tele-tubes as Tulsifor 7 long years. Millions partook in Tulsi’s long journey from a young bride to great grand mom. Though she continued to rule hearts, her youthful exuberance faded with time. And then Smriti bid goodbye to Tulsi. The Tulsi saga is strangely identical to Star Plus’s. In 2000, Star shot to fame with the launch of Kyunkii. The channel stayed put at the spot for all these years, just as Kyunkii did. Just like the character has lost its sheen, the channel is losing mindshare and TRPs.

On the other hand, Zee acquired centre stage via an array of young soaps, displacing Sony on its way to the top slot. The now number three in the race, Sony, neither has established properties like Star nor does it have any fresh ideas to boast of. Ask Kunal Dasgupta, CEO, SET India, about the developments and he says, “It’s a cyclical business. Star Plus which held the unchallenged No.1 position is also coming down pretty fast. The industry is in a state of transition and things will change in the next few months. Of course, we are taking steps to regain our lost position but they will be revealed at the time of fruition.” What is intriguing is that the channel, which competed with Star neck to neck once, is seemingly taking things too easy. Yes! In a spirited show of aggressiveness, Sony did launch its winning property – Indian Idol for the third time recently. The show is managing some eye-balls, but SaReGaMa of Zee (a bigger brand, which features in the top 10 TRP chart) and Star Plus’s newly launched Star Voice of India, are giving tough competition. Sources reveal that a second season of Jhalak Dikhlaja, a popular celeb dance show is in the offing, besides SET betting big on Bollywood to work up its sagging numbers (it is buying rights of many recent releases from Eros and Yash Raj Films).

Sony, in fact, finds itself in a strange quagmire these days. Come September and curtains would have downed on Indian Idol (a show it was banking on to bring it back in the reckoning). And the channel does not seem to have any new answers. While shows like Jhalak Dikhlaga and Bollywood blockbusters guarantee eye-balls, they’ll only go so far to improve the channel ratings. Other also-rans in the race like Sahara One, Star One are so busy giving Sony a run for its eyeballs that it just might end up getting blinded. The situation acquires an urgent tone, taking into account the gamut of new GEC launches coming up. ‘Wait & watch’ may well ring the death knell for the ambitious number 2 player of yore.

Edit bureau: Surabhi Agarwal

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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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Friday, July 04, 2008

Aviva - Kal Par Control


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BRAND : Aviva
AGENCY: Publicis India
BASELINE: Kal Par Control

DESCRIPTION: Sachin Aviva - Kal Par Control is on a sea beach playing cricket with a bunch of kids as he talks to us. “In some ways life is like cricket, jaise karoron fans ki umeeden hum pe tikee hain, aapke parivaar ke sapne aap par tike hain...you have to be tension-free… That’s when you can play life khulke, make the most of today aur jiyo ji bharke. In some ways life is like cricket, live it khulke.” The V.O. says, “Aviva ke insurance plan, banaye behtar aapka kal, taki aap aaj rahen tension-free aur jee sake zindagi khulke.”

4Ps TAKE:
The Master Blaster is promoting Aviva Life insurance now, and, as usual, he looks in form, the right nick – and very convincing! The USP is the security provided by the product to millions of middle-class Indians who want to secure their future. As the brand ambassador is the cricketing hero, the smartest idea seems to be associating the popular game with the product in question. The reward to the prospect? The Master Blaster himself!

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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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Thursday, July 03, 2008

Arun’s experience in leading a FMCG business in a complex market like India will be truly of critical importance...


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But then, Unilever has been one of the firmest believers in the power of the global ‘Indian’ CEO. If Ganguly’s example was quoted in the 90s, T. Thomas – Chairman of HLL in the 70s – had already triggered off the dynamite within by being promoted to Unilever’s global board as a Director in 1980. Though Thomas spent almost 10 years with Unilever in London, there were HLL’s other Chairmen – like K.B. Dadiseth, who got promoted to Unilever’s global board in 2000, the phenomenally famous M.S. Banga, who got promoted to the global board in 2004, and the most recent board of directors entrant, the blue-eyed boy of Unilever, Harish Manwani – who furthered the halo around Indian CEOs being considered not only possessing exemplary strategic skills, but being top class leaders too. Manwani,in fact, was asked to head Unilever’s Asia and Africa operations in 2005; similar to Arun Adhikari, MD of HLL (Personal Care division), who last year went on to head Unilever Japan! Manwani at that time had quoted the official Unilever line, “Arun’s experience in leading a large FMCG business in a complex market like India will be of critical importance in his new role (as Chairman, Unilever Japan).”


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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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Arun Sarin (Vodafone)


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The name Ashok Ganguly might not seem quite familiar to those dabbling in the contemporary world of management. But this 71 year old Indian, profiled by Business Week, Forbes, and various of the world’s most respected business magazines, was perhaps one of the first of the ethnic camp to prove the Indian CEO’s mettle across continents and geographies. After spearheading HLL in India as Chairman during the 80s, he was one of the first Indians to bepromoted to the global Unilever board as one of the Directors in 1990. The western world recognized his competence faster than India did, with British Airways corecruiting him as a Board Director. It’s perhaps not at all surprising thatthe Microsoft of today uses Ashok Ganguly’s leadership case studies, videos and interviews to sharpen the skills of their top management. Think about it again honestly, did you ever hear of this man, who currently is the Chairman of First source and the Director of our very own Reserve Bank of India? That’s the story of Ashok Ganguly, who is of course, an Indian!


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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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Tuesday, July 01, 2008

Videocon - A new language of colours


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BRAND: Videocon
HEADLINE: ‘Wappa’
BASELINE : A new language of colours
AGENCY : O&M

4Ps TAKE : Hey, Videocon - A new language of coloursisn’t that a very stark caricature of Venice in the background of Videocon’s new colourful print ad? No prizes for guessing why! It’s because the USP of the product – the company’s new range of Integra LCD televisions – is colour clarity! The single-minded focus of the ad is to talk out loud about the unlimited shades that one will be able to distinguish while watching Integra. The visual is attractive with different models of Integra flashing different colours on their respective screens. The reward to the prospect is the desi connection (the Indian multinational) in a global backdrop! And it’s one that says Wappa! Our guess is that it’s a distortion of the Spanish word guapa (pronounced wappa), which means beautiful. Why the distortion? Because it’s a new language of colours! So, say it again: Wappa!

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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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Ford Fusion - Practicality v/s Frugality

BRAND: Ford Fusion
HEADLINE: Practicality v/s Frugality
BASELINE : The No-Nonsense Car

4Ps TAKE : Talk Ford Fusion - Practicality v/s Frugalityabout attributing brand values to a product and this Ford Fusion ad definitely takes the driver’s seat! The power idea is to promote the diesel-run Fusion TDCi from the garage of Ford. The communication is bang on: the body copy, first, describes the USP – the fuel efficiency plus the economies of running a diesel variant; then, it talks about the plush product features (plush interiors, comfort factor et al). The visual is appealing with the boxing gloves representing the fight on the roads, and Ford Fusion emerging as a clear winner. The rewards to the prospect? The 1.4 litre Duratorq TDCi engine (that delivers a responsive performance), unbelievable fuel efficiency and, of course, the car’s sheer sophistication! The ad also seeks to establish a consumer connect by asking readers to go for a test drive. Finally, the message is driven home with aplomb, thanks to the comparison between practicality and frugality. The body of the Fusion is tough, therefore practical. The fuel-efficient drive is frugal. Quite a double whammy that!

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Source : IIPM Editorial, 2008

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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All about car security


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Scared that your car may be flicked? With the number of cars increasing by leaps and bounds, the number of auto thefts is increasing too – and everyone lives in fear. You get gadgets like gear locks, but how safe are they anyway? Now, to enable you to get some sound sleep, Ford India has decided to take a smart step by installing security product Micro VBB in Ford Ikon. The owner of this technology, Micro Technologies, has been authorised to appoint existing Ford dealers as its sales outlets. So what exactly is Micro VBB? According to the company website, “Micro VBB is a messaging & antitheft security system with various sensors installed in vehicle, this intelligent box senses events such as smoke identification, emergency alert switch, telematics, intrusion detection of vehicle doors and immediately intimates these events to vehicle owner’s mobile, telephone or through e-mail.” Through this technology, it is possible to provide super security to your vehicle that enables the user to detect any access to his vehicle by any one through a SMS on his mobile through this super security system. The user can at once send “Locking”, “Immobilisation” instruction to the system and he could thus prevent any unauthorised access. Let’s hope all car manufacturers in India follow suit!

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).

For More IIPM Info, Visit below mentioned IIPM articles.
When IIPM comes to education, never compromise
IIPM, GURGAON
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!