Friday, January 29, 2010

Shipping Corporation of India Ltd.


IIPM conceptualized the grand final of Dare ‘10 — the most prestigious of international B-school student quizzes


Entry Price: Rs.120
Target Price: Rs.220
EPS: 18.32
P/E: 6.85
Time Duration: One year
Rationale: Though, the company has faced tough situation in last one year, when global trade came to the halt and Baltic dry index plunged 94% from the peak, but, the situation has improved from thereon and Baltic dry index has risen four times from low. Further, the company has ordered 25 new ships, which is likely to drive volume growth for it in next couple of years.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

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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Tuesday, January 19, 2010

A photo finish or...

Thanks to aggressive monetary stances and bold fiscal measures, the bottom of the global downturn finally seems in sight. Even the OECD’s composite leading indicators signal that the worst is over. But, the moot question now is how quickly economic activity can return to the pre-crisis levels. Though, different structural characteristics of key economies put them on different recovery trajectories, but going by the pace of recovery across economies one can easily figure out the three frontrunners – China, India and Indonesia – heading for a photo finish. In fact, galloping ahead with ease China remains the biggest and brightest example of the Asian growth miracle. After expanding at a breakneck pace during the boom, the dragon economy has managed to grow at a still-stunning rate in a year that saw most of its global peers falling into recession. “Though exports remain the only drag on China’s GDP this year, but the rise in domestic demand should more than offset the negative effects, allowing the dragon to continue growing at an enviable pace,” avers Sherman Chan, Moody’s Economy.com. Even, the elephant nation has shown promising signs in recent months. In the March quarter, despite a region-wide GDP slump or sharp slowdown, India’s performance remained steady. Indonesia, the largest economy in the ASEAN region, also rounds out the category of ‘lucky escapees’. Like China and India, Indonesia is forecast to expand at a solid pace this year, with more buoyant results in 2010. However, Japan, the weakest link in the region, still continues to crawl. Though, the Tankan diffusion index for large manufacturers, which measures business confidence in Japan, improved in the June quarter, but the rebound from a reading of -58 to -48 was far from reassuring. Nevertheless, the positive point is that all major Asia-Pacific economies are expected to grow in 2010.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

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

For More IIPM Info, Visit below mentioned IIPM articles.
Follow Arindam Chaudhuri on Twitter
Management guru Arindam Chaudhuri’s latest blockbuster book, Discover The Diamond In You
IIPM fights meltdown, places 2300 students By Education Mail Bureau
Delhi/ NCR B- Schools get better By Swati Sharma
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Detail of all IIPM branches
IIPM set to beat economic slowdown
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Friday, January 15, 2010

F@*%, I feel good!

Swearing can’t solve everything going wrong in your life, but it might just make you feel better!

“In certain trying circumstances, urgent circumstances, desperate circumstances, profanity furnishes a relief denied even to prayer,” said Mark Twain, and his thought has now been backed by a research conducted at Britain’s Keele University, where the researchers claim that swearing makes you feel better! It for sure is an effective way to vent out all your aggression and fear, but it might leave some offended and could make you seem uncouth too. Mood swings, jealousy, possessiveness, fear and unfavourable, unpleasant circumstances give rise to frustration and aggression, which increases irritability and leads to a strong build-up of emotions, which need an appropriate outlet. So, next time you are in a desperate situation, just let loose those favourite colourful metaphors! Just as Harman Rikhy, a second year Law student, says, “I swear and use foul language whenever someone rubs me the wrong way. It is better than getting into a scuffle or a fist fight and it definitely helps me in releasing all the built-up energy. I just simply blabber some foul words which rush into my head, and then later, most often than not, I am amused at the weird metaphors I used!”

Adolescents these days get in this undesirable habit at a very impressionable age. At an age when their young and innocent minds need to be nurtured and groomed, such habits ruin the overall persona of a child. Swearing for sure has its so called benefits of venting out anger, but it effectively damages the outlook and dignity of a person. “In severe cases, where children display a lot of aggression, we call it ‘Conduct Disorder’. It happens due to a cluster of symptoms such as inconsistent parenting, various inter-relationships, family and environmental problems, where the child resorts to screaming, using of weapons, breaking rules and displaying aggression towards people and animals. We often recommend ‘Behavioural Management’ to the parents and give them necessary counselling,” says Dr. Sonali Bali, Consultant Psychiatrist, VIMHANS. Dr. Sonali also feels that talking to a confidant is a better way of releasing stress than swearing.

A popular gesture doing the rounds is the one from the famous television show Friends, where the protagonists clank their fists together and convey the F-word without actually using it. Similarly, people have started using the word ‘Fish’ instead of the infamous F-word. Sugar-coating and refining one’s language wouldn’t help much when abusing, but it sure would help sustain a certain amount of dignity while in the company of a lady! Such a stress buster is a boon for those dealing with bursts of adrenalin rush.

Another interesting stress-busting technique owes its origins to the Greek, in which people are invited to smash plates, and so as they rid themselves of pent-up frustration, they also get to show how much they enjoyed the food! In other words, it’s a better way of getting rid of that built-up testosterone! This tradition may be getting phased out gradually, but even now many Greek restaurants are maintaining this tradition of controlled loss!

As it has been quite rightly observed, some folks just cannot keep off from swearing… like Mark Twain once said, “If I cannot swear in heaven I shall not stay there!”

Ravi Inder Singh

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

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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Wednesday, December 30, 2009

CONSUMERS IN RECESSION


Management guru Arindam Chaudhuri’s latest blockbuster book, Discover The Diamond In You

The slowdown has not just blown away the bank balance of big corporate houses but also given a new definition to consumerism, says Naresh Gupta, EVP, Strategic Planning, Publicis India


Recession is the cyclone that has blown away the existing structures, markers and pathfinders. It has reorganised the landscape and consumers have been forced to reorganise their lives. As it happens, while adapting to a new stimulus, people give up a few of their old ways, and learn some new tricks. What has made this effort even more challenging is the fact that there are no previous experiences to fall back on. So we are seeing some major changes in behavior, which will have deeper impact in future, and some changes that are temporary and consumers may give it up, once the threat is over. Here are a few things that consumers are giving up. These are five behavioral trends that are driving our lives today.

Caution is in, optimism is out: India has been among the world’s most optimistic country. We have seen economic growth like never before, and future has never seemed as bright as it has in the past decade. This has lead to a constant search for new pleasures, new experiences and new beliefs. Category after category has been benefited with this optimism that the we have displayed. However, this optimism today is guarded. We are cautious, waiting and keenly watching what the future will bring. All in all, we have pressed the pause button. Thus, optimism is on hold.

Impulse is out, making choices is in: The shopping list has been trimmed down to what is needed. We are making hard choices, evaluating what we need to buy, and not buying whatever we may not need. Just a year ago we would not have blinked an eye and bought that car, Plasma or taken that foreign holiday. As we are relearning the paradox of choice, we are making choices.

EMI is out, MI is in: We had stopped buying a house, or a car or that home theatre system. We only bought the EMI. We always stretched ourselves to buy the bigger house, better car or powerful theatre system. The credit card was the currency and possession was the symbol. Recession has forced us to give up EMI, pack our credit cards, and learn to be frugal. What we look at is Monthly Income, and monthly savings. EMI has moved on to MI (monthly income).

Regular is out, bargain is in: Today’s shopping is all about bargains. Retailers are packing in freebies to lure the shoppers back to turnstiles. Movie tickets get you free popcorns, two shirts get you two more, cars get you free insurance, homes get you loan holidays. This has turned regular shoppers into bargain hunters. MRP now has no value; bargains are what drive the choice matrix. Will we now ever bother to check MRP? Image is out, image is in: Image has been a big driver of our lives. We have always wanted to display our success, progress and prosperity.

Recession or no recession, we will continue to display our progress and prosperity. If Image yesterday was displayed by ostentatious consumption, today it is displayed with being responsive and being caring. Image will continue to drive us beyond recession...

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2009

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

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM fights meltdown, places 2300 students By Education Mail Bureau
Delhi/ NCR B- Schools get better By Swati Sharma
Event at IIPM
Detail of all IIPM branches
IIPM set to beat economic slowdown
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Thursday, October 15, 2009

THE LETHAL TERMINATOR

Shin’s visit to some villages is paying huge dividends for LG today. Here, he gives a few strategies that helped LG stay ahead

In May 2009, Moon Bum Shin, Managing Director, LG India visited a couple of villages in far flung areas. He wanted to get a handle on the needs and demands of the rural consumer so that LG could adapt their product portfolio accordingly. The result of that tiring yet illuminating journey is now ready. The Korean consumer durable behemoth is all set to roll out a 50-litre refrigerator (by the festive season) based on the insights that Moon Bum Shin gained during his rural sojourn. Wondering why we are telling you their future plans instead of throwing light on their strategies during the last year to beat the slowdown. Well, that’s because Shin and co. have followed a similar ‘insightful’ strategy even amidst the difficult times.

Ask Shin and pat comes the reply, “As an organisation we were well prepared for the slowdown. So we focused heavily on launching insight-based products and named them ‘Stars of India’, which captured the needs of the Indian consumers.” The head honcho of LG India goes on to elaborate the three-pronged strategy of LG during the slowdown months. The first, of course, was focus on product innovation. LG has injected investments worth Rs.60 crore in R&D over the last one year. Besides, the company also launched a strong retail drive, working hard on giving face lifts to all its retail stores. Not only that, LG’s corporate team went all out on imparting ‘product demonstration’ training to all its store employees. The bid was to equip them to better handle consumers. Explains Shin: “The revamp cost for retail stores was not high. But we spent huge money on training manpower. The aim was to effectively channlise our resources into brand building.”

The third strategy that LG adopted was to expand its marketing focus from merely urban to India’s vast rural markets, a move that increased their marketing spends by at least 10% during the year. Avers Shin, “We have leveraged cricket as a property very well during the last year with our ‘Lead XI’ campaign during the Twenty20 World Cup, where LG was the official sponsor. That association really helped us,” explains Shin. Not only this, the consumer durable major specifically targeted public sector employees as their target audience in the latter half of 2008, primarily wishing to cash in on the 6th Pay Commission largesse. These master moves have paid huge dividends for LG in the form of a smashing 18% growth in the first three months of 2009, much higher than other competitors in the segment.

Given the success of LG’s new rural strategy, honchos at the Korean major’s corporate headquarters are now aiming at about 40% sales contribution from rural markets in coming times. In the calendar year 2008, the company posted a turnover of Rs.10,730 crore. But now, LG has tightened its belt to increase that figure by 25% and take it to a mouth-watering Rs.13,000 crore by end 2009.

Did anyone ever really tell them about a slowdown?!

Neha Saraiya

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2009

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

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM fights meltdown, places 2300 students By Education Mail Bureau
Delhi/ NCR B- Schools get better By Swati Sharma
Event at IIPM
2300 IIPM students get jobs
Detail of all IIPM branches
IIPM set to beat economic slowdown
IIPM - Admission Procedure