Capital issues..

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Wake up call for Delhi administration
The Delhi Human Development Report 2006 published by United Nations Development Program in collaboration with the Delhi Government puts up some startling facts. The state having a per capita income that is around 2.5 times the national average is also the state which has a housing shortage of 300,000 units. Around 38% of these households (barring the slums) consist of single room units! The report states that about 100,000 people are homeless in the city and the visible cornucopias of Delhi are only hiding the true picture.

The other disquieting trend that the report reveals is that Delhi contributes 24.4% of all crimes, 24.4% of rapes and 17.6% of dowry deaths in the country. According to the Public Perception Survey 2005, only 19% of the residents feel safe in the state and 90% feel public transport isn’t safe for women. That’s surprising for a state which gloats over a 55,000 strong police force. The report states that discrimination against women is rampant and Delhi with a sex ratio of 821 is lowest in the ranks. Furthermore, it reveals that inspite of having one of the best hospital networks in India (646 hospitals, 993 dispensaries, & 250 maternity homes), ‘health for all’ remains a distant dream. As the capital, Delhi significantly represents everything that’s wrong with India. One can only wish the authorities would wake up and take action.

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Movements

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Rajeev Karwal (President and CEO of consumer durables, IT and telecom divisions of Reliance Retail) was one of the first high-profile hires of the Mukesh Ambani’s ambitious retail plans and he, interestingly, is also the first to put in his papers. The place of the ex-CEO of Electrolux India will be taken by Ajay Baijal, who was heading the channel business (wireless) at Anil-controlled Reliance Infocomm. The movement also marks the first top-level poaching between the businesses of two brothers.

• In the ad world, Sanjeev Gauba has joined Bates Enterprise as its Vice President after he quit Dentsu Communications seven months back. At Dentsu India, after the recent resignation of its two Executive Creative Directors, Sudip Bhattacharya (Creative Consultant, Dentsu Communications) and Rajat Basra (Associate Vice-President, Dentsu Media Palette) have also called it quits. While Bhattacharya is moving to M&C Saatchi as Creative Director, Basra is tight-lipped for the time being.

• Also, Aiyana Gunjan is joining Dentsu Marcom as Director, Strategic Planning. Arjun Mukherjee, who had resigned from Rediffusion DY&R, has joined Capital Advertising as its VP. Also, V. S. Rao has been elevated to the position of GM of R. K. Swamy, Hyderabad from the post of Associate Branch Director in Bangalore.

• While Vishal Chinchankar, who was earlier placed at Mindshare Interaction (India) as the Business Director has moved to MindShare Interaction, Singapore. Its CEO, Manpreet Singh, has decided to call it quits.

• As Neville Taraporewalla, ex-Yahoo! India Chief, takes over Connecturf as its MD, Yahoo! India has a new addition. Pete Deemer will join as the Chief Product Officer (R&D), Yahoo! India.

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Work and life: A Hobson’s choice?

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In fact, we would even vote to retire the term “work-life balance” and replace it with “worklife choices.” The problem is that “work-life balance” suggests there is one right ratio for how much time you spend working and not working, and with that we disagree. Sure, there’s a lot of politically correct advocacy for a kind of perfect equilibrium and it may very well be that many people wanting a 50:50 split between work and life. But some people love work so much and find it so gratifying that they want to live a different equation, say, something like 70:30.

Still others want to work just enough to support a life of avocation. For instance, we have a friend who writes and consults about two months a year to pay for travel the other 10. He thinks his life is perfectly balanced. Balance, we’re saying, is a personal choice based on what feels right to you, given what you want from life, both personally and professionally. With that choice, comes consequences.

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Mirror, mirror on the wall; can you choose between the two at all?!

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Amidst a thunderous roar of applause and an assemblage of sirens from all across the country, there’s always a deserving dark horse who comes out trumps – the mistress of the glittering tiara! But when there happens to be more than just one powerful contender to possess that covetous crown, history is created… somewhat like one craft ed way back in 1994, when equal degrees of intelligence, poise, allure and confidence walked down the ramp; when the two mesmerising maidens stung glory with their elegance extraordinaire!

Grace knowing no bounds in our cultural ambassadors, the Scorpion duo of Sushmita Sen and Aishwarya Rai (November 19 and November 1 respectively) have landed many a conventionalist’s foot in the mouth who seconded “in youth and beauty, wisdom is but rare,” as remarked Alexander Pope. Where Ash stole away a million hearts and the Miss World crown at Suncity in 1994, looking the fl awless nymph that she is, the very dynamic Titu (as Sen is lovingly addressed) repeated the feat at Manila the same year, albeit for a different crown, and together redefined the eminence of beauty pageants for Indians altogether…

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Education and E-Governance

QUALITY DOES NOT MATTER...

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In September 2006, the global rating agency Fitch gave a red-alert to the Indian banking sector concerning the escalations in the total loans being extended. This warning was a general fall-out of the huge rise in retail lending. Looking at the wonderful opportunities in this particular sector and considering it to be the sunrise sector for the economy, one could perhaps dismiss this particular report as a false prophecy. But then that’s not the end of the story.

On October 22, 2006, domestic rating firm CRISIL published its report on the credit ratings of various sectors in the Indian economy, which asserted that pressure on credit quality (a measure of creditworthiness denoting a bond issuer’s capacity to pay back the amount) is only on the rise and may deteriorate in the coming 18 months. G. V. Mani, Director, Rating Criteria & Product Development, CRISIL endorses, “Going forward, increased input prices, high capital expenditure and higher interest rates, are likely to accentuate the credit quality pressures on this sector.” Also, the rising interest rates have minimal chances of easing out in the near term. While on one hand, the Indian economists are going gaga over the developments in the manufacturing sector, it is this sector that carries the lowest credit rating, representing the greatest danger. According to this report, the Modified Credit Ratio (MCR which numerically represents credit rating) has dropped to 1.0 during April-September 2006 as compared to 1.05 during the corresponding period of the previous year. Traditionally, it was the farm sector that was on the top of the defaulters list of Indian banks (much of which can be attributed to priority lending to the farm sector) and did the early damage in late 1990s, when Non-Performing Assets (NPAs) of Indian banks were 15.7% of loans. But the CRISIL rating is related directly to quality depreciation in corporate lending, which should necessarily serve as a wake-up call for the Indian banking sector.

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Mis’management education!

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One anomaly relates to the risible move of the IIMs in involving a third party like NIIT. Critics point out that it wasn’t long ago when premier institutions like IITs offered distance learning certificate programmes through questionable and shady outfits like CEP (in IIT Kharagpur), FITT (in IIT Delhi), and marketed them through a worse external outfit called ElNet-3L, which eventually turned out to be a completely fraudulent company, duping thousands of students and going bust consequently, ensuring a massive loss of face to the IITs. No doubt, the 25-year old NIIT’s name is much respected; but wasn’t it only around a year back that the much-hyped NIIT University, after negative court rulings, had gone into a limbo, and started operating in January 2006 under the new name of TNI from a ‘transit campus’ in Lajpat Nagar, a middle class residential locality in New Delhi?

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Future doomed

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Faulty irrigation to blame
Though India has walked out from the humiliating PL-480 food credits of the 1950s, the food security of the country stands to be severely jeopardised if the elements of environment sustainability are not immediately incorporated into our agricultural practices. Faulty agricultural practices led by large scale canal irrigation is ruining the future of the country.

Large dams and canals were considered to be instrumental in bringing the Green revolution in the country. But Bhakhra Dam contributes only 12% and 15% of Punjab & Haryana’s agricultural productivity. Even that would have been satisfying but for the existence of about 449,000 hectares of waterlogged land and 687,000 hectares of salt-affected area in Punjab alone. If that was not enough, the unsustainable ground water mining has brought nearly the whole of Punjab under the danger zone. Researchers have argued that around 43-46 % of the total agricultural production for Punjab and 35% for Haryana, is based on unsustainably mined groundwater.

It is high time we realise that these socalled success stories have been sitting on brink of disaster. The sooner they switch to environmentally sustainable models, the better it would be.

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...the truth is out (of) there…

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False history gets made all day, any day; the truth of the new is never on the news, or so remarked Adrienne Rich, acclaimed American writer. And with the legendary John Le Carré’s latest offering, The Mission Song, come to light once again the unsightly elements of greed, power and conspiratorial voracity that have perennially characterised the countenance of international political climate.

The backdrop this time is the troubled lands of Africa, and Le Carré’s narrative has as its protagonist Bruno ‘Salvo’ Salvador, described by those around as, “the natural son of a bog Irish Roman Catholic missionary and a Congolese village woman whose name had vanished for ever in the ravages of war and time,” who finds himself endowed with a penchant for languages as a child in Congo.

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Islam and Christianity have enough to worry about; God is the least

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When Benedict XVI became the Pope, interesting times were predicted. He isn’t letting us down either: With a million things to worry about, he chose to refer to the 14th century Byzantine emperor Manuel II Paleologus during his speech at the University of Regensburg in Germany. Former Cardinal Ratzinger, the Pope, quoted Paleologus’s conversation where he had called the teachings of Prophet Mohammad as “evil and inhuman.” Predictably, the Muslim world didn’t let us down either. They protested like they were looking for a chance to. What is of interest is that the highest of- fice at the Vatican chose to use such words at a time of intense conflict and suspicion between the West and the Islamic world.

For centuries, the Roman Catholic Church has had a significant authority over the lives and actions of Christians. Before Renaissance, the church imposed its authority over almost everything a Christian did. It is this influence and the subsequent fear of loss that seems to be pushing the successors of the Holy Roman Empire to stimulate and administer the crusades against its old-new rival – Islam.

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B&E this fortnight

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World’s largest hyper market chain Wal-Mart has come up with a business strategy that has shook the American generic drug market. The company has announced that it will offer over 300 most frequently used generic drugs at an unbelievable $4 (almost a fourth of previous market prices). Under the new pricing strategy various generic drugs which were oft en out of the purchasing purlieu of many Americans, will be amazingly within reach. Drugs that are a part of the new plan include cholesterol, blood pressure, vitamins and diabetes drugs among others. According to Wal-Mart these prices will benefit pensioners and senior citizens the most, as their total cost allocation for prescription drugs will subsequently come down. Wal-Mart benefits from economies of scale because of its large scale operations and its bulk purchases, which substantially reduces cost, ultimately benefiting the end consumer. The scheme is currently for the Florida State, but if successful, the company plans to extend it to other states as well by 2007.

Wall’ing high costs
In another instance of consumer welfare, Wal-Mart is also experimenting with eco-friendly packaging and had last year partnered with Nature-Works for corn-based plastic packaging techniques instead of petroleum-based, for perishable food items like fruits and sprouts. This year the retailer wants to make its stores 25% more energy efficient and reduce solid wastes by 25% as well. In this regard the company has initiated 13 value networks with one of them solely focusing on packaging parameters. Looks like business is no longer driven by profits, capitalist societies expect something in return of consumerism from large corporations working amidst them.

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Yes it does, for Indian agriculture sector has proved the old saying...

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Since independence, Indian fertilizer industry has grown manifold – much of the credit for which goes to initiatives like Green Revolution and Operation Flood. Not only have the imports of fertilizers witnessed a decline with India moving towards achieving self-sufficiency, but the manufacturers also have succeeded in making available quality fertilizers and other chemicals to farmers at competitive prices.

India has emerged as a major global player in this sector, helping the country earn the much important foreign exchange. As per FICCI figures, the volume of the Indian market in the chemical sector is approximately $30 billion. No doubt that most of the top companies in the agriculture sector in B&E Power 100 are the ones, which are into the business of manufacturing and marketing fertilizers, namely Rashtriya Chemical & Fertilizer Ltd, Chambal Fertilizers & Chemicals Ltd, etc. The other companies that have made it to the list include Monsanto India and Syngenta – leading bio-tech solution providers in the area of seeds. However, India still lags behind in food processing, one of the key global sectors.

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Paradox of the ‘patient’ paragon

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Just for records, Ranbaxy is consistently ranked among the world’s top ten global generic companies. Well, like we said, that was just for records. What you might not know is that this company’s net profits grew by a behemothic 70% in the quarter ending June 2006, and by a ponderous 20% when compared to the previous quarter. Coming back to records, having its headquarters in India, the company has revenues to the tune of $1.1 billion, thanks to its presence in some 125 countries. Established in the year 1961, over 76% of Ranbaxy’s revenues today come from its overseas operations, with the US market contributing a mammoth 28%. Ranbaxy is one of the first Indian generic companies, which has diversified into NDDR (new drug discovery research) and NCE (new chemical entities).

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Downsizing for rightsizing profits!

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Intel made its plans public, to cut 10,500 jobs which accounts for upto 10% of its employee strength globally. The job cut that is to conclude by mid-2007 has been termed to be in accordance with a restructuring plan and is supposed to help bring down costs by a whopping $6 billion over a span of three years. The move will propel Intel’s profitability, taking it a step ahead of rival chip maker AMD. Intel hopes to save $1 billion this year, $2 billion in 2007 and $3 billion in 2008, through the move. Majority of the job cuts are likely to occur in management profiles, the chip maker’s marketing departments and various other IT related job areas. Around 5,000 jobs have already been cut at Intel.

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Bajaj sold a huge 306,826 units in the premium segment, beating HH

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Apart from this, Rajiv ruthlessly raided the 100cc segment with the aggressively priced Boxer, gave a stiff challenge to Hero Honda’s all time best seller Splendor, invaded the 125cc segment with bikes like Wind and Discover to uproot the dominance of Hero Honda’s Passion and created a niche for Bajaj in the 150cc and above segments with bikes like Pulsar DTSi and Avenger. As a result, today Bajaj has a much respected & well diversified portfolio of bikes that are taking the competition head on, literally.

The fact is that premium segment is the hot-spot for the marketers and to go with the tide, Bajaj is the unchallenged leader of this premium segment with its best selling bikes like Pulsar DTSi-150 & Pulsar DTSi- 1 8 0 . While Bajaj sold a whopping 306,826 units in the premium segment for the period April-August 2006 (as compared to Hero Honda’s 21,710 units).

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It’s raining stars...

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‘Catch them candid’ is the new mantra
We just can’t seem to get enough of our celebrities – how they eat, drink, talk, dance, laugh... and everything else, if possible! And if we were to take a look at the current surge in the count of celebrities currently in vogue in the Indian television sphere, it seems nothing short of a ‘stars rain down’ situation on the small screen!

Be it the opportunity of catching a well-known cinematic face grinning and singing on
Close-Up Antakshari or the usual sequence of star-gets-candid-and-cries in Rendezvous, film stars lead the pack of the charm-charade parade that entails some loyal viewership! Be it the famed Jeena Isi Ka Naam Hai on Zee Television or the demi-God of tinsel town Amitabh Bachchan ‘locking’ up prime-time with Kaun Banega Crorepati (and securing the numero uno spot for the television channel in the process), the magic of stardom seems to be getting more and more real by the day – now more than ever before.

In fact, today ordinary faces on reality shows are nothing more than a sheer wastage of resources; the masses demand more than just a superbly designed plot and delightfully delegated climax (if there’s anything like that!). Television show makers seem to have concluded that the case of Ks and saas and bahus do not cut much ice any longer. Neither do plain-Jane-turns-princess tales excite any more. Those are cases of been there, done that! To meet the soaring expectations of wilful television audiences, the trick is to get an SRK, Bachchan or even a Pooja Batra on-board!

Edit bureau: Pooja Priyadarshini

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Ready for the all new ‘it’ exercise?

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Roads to achieving a perfect 10 body are many but what works for one may not for the other. So for all of you still looking for just the right workout, try out Gyrotonics; a whole new approach for attaining a perfectly toned body. The only fluid thing in this mish-mash of kundalini yoga, ballet, swimming, tai chi and gymnastics will be your movements; as you stretch, twist and twirl upon Juliu Horvath’s Gyrotonic Tower/Handle Machines. And as this exercise gains ground, a host of celebs with a penchant for the new-fangled are heading the Gyrotonic craze – like Madonna, Teri Hatcher and Gwyneth Paltrow.

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What women want... and buy

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A Hansa Research study that polled over 1,400 SEC A working women (part-time and full-time employees) in Delhi, Mumbai, Bangalore, Kolkata, Hyderabad and Chennai in the age group 23-45 years, had interesting insights to offer about what’s driving new-age upmarket Indian women – who are obviously the marketer’s delight. Guess what the survey threw up? Primarily, the fact that most women would love to spend money on pampering themselves and buy products (or avail of services) that would make them feel good about themselves.

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Vikram gives due importance to manufacturing excellence

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Besides focussing on the marketing aspect, Vikram gives due importance to manufacturing excellence. TKM follows the “Just-in-time” (JIT) technique for production management. Vikram elaborates that it’s a three step process that has to focus on quality of the goods supplied, reliability of supply and production at the same rate as the supplier (to minimise inventory costs). The last step, he explains is ensured by regularly communicating the production rate to the suppliers. TKM also deploys a 3S model – Sales, Service and Spareparts to ensure that its dealers deliver international standards of quality and service. He expresses one of his key objectives, which is to “make manufacturing sexier than soft ware.” Among other initiatives, the group is working towards clarifying the Kaizen culture into a theory which can be adopted by the Indian mindset. What really stands out though is Vikram’s vision to transform the way people look towards India as an investment destination.

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MONETIZING TENTACLES

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What does this mean for businesses? The bottom line is that people want to build relationships. The primary use of Facebook and MySpace is dating, and for LinkedIn, building professional contacts. There is a dark side to this as graduates from Ivy League colleges find that background checks by potential blue chip employers often turn up embarrassing photo’s from spring break vacations. But those who use these tools are going to have an enormous networking advantage. In addition, as media buyers scramble to re-allocate resources to online advertising, the fact that MySpace is the second most trafficked site on the internet after Yahoo means you cannot afford to miss out on this gravy train. For now, Facebook supports less than 10 Indian colleges. Is that opportunity I smell?

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AMD plans big, eyes SemIndia’s SEZ

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Advanced Micro Devices (AMD), the second largest computer chip maker in the world, has plans to invest $500 million in SemIndia’s proposed chip manufacturing facility near Hyderabad. The total investment of AMD will amount to $3 billion. While $1 billion will be an equity investment, the remaining will be through debt. The US-based chip giant will also provide technological support to SemIndia’s proposed manufacturing facility. Apart from AMD, Flextronics has also disclosed its intentions of taking up a minor stake in the venture.

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The Scott Monument : The Scottish National War Memorial

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Standing tall (in every sense of the word) on a steep volcanic mass of rock and flanked on three sides by colossal cliff s 400 feet above sea level, entry to the ancient fortress (since the 7th century) is via a precipitous trail on its east. Even though remnants of the day exist fewer and renovated, they include the 12th Century Chapel of St. Margaret, the Crown Square ensconced by the former Royal Apartments, the Great Hall, the Scottish National War Memorial, and the tower harbouring the Scottish Crown Jewels and Stone of Scone. And the castle revels in its monumental glory even now, serving as a prominent base of British forces in Scotland.

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The jamboree has just begun!

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Such being the milieu, the Indian retailers are gearing up for a gigantic bash. While big players like the Raheja Grouppromoted Shoppers’ Stop, which have always unleashed special campaigns (remember last year’s Australia @ Down Under Fest?) promising much more this time, there are, on the other hand, new retailers who are all set to tantalise the Indian consumer with their products and to give a ritzy touch to the common Indian’s life. At the same time, the value for money chains are also ramping up their act to grab a bigger pie of the retail space this year. “The importance of the season cannot be overlooked both from the point of view of the retailers and the brands, as a major part of their merchandise, sourcing & supply has to be planned according to the overwhelming market demand during this period,” states Prasant Agarwal, Associate Director, Technopak.

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Source : IIPM Editorial, 2006, Arindam Chaudhuri's Initiative

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An obituary of corporate ethics

IIPM Best MBA INSTITUTE
Forget about the small fishes; even the big sharks of corporate America haven’t missed the opportunity to forego the concepts of business ethics. The latest ones to join the bandwagon are Apple and Dell. Almost 102 US companies are under the scanner of Securities and Exchange Commission (SEC) for fiddling with stock option grant dates to give the benefit of buying shares at lower prices to their employees. These scandals may not be as large as the Enrons & the Worldcoms, but they have been instrumental in further tattering investors’ faith, for whom US Inc. is becoming synonymous with ‘Fraudster’s’ Inc.

Ever since the academic research carried out by Randall Heron and Erik Lie was published (that revealed involvement of 29.2% of US firms in options backdating from 1996- 2005; refer B&E Pecunia, August 11, 2006), it has been a tumultuous time. While companies like UnitedHealth Group, Trident Microsystems, Dell and Apollo Group are either facing investigations or have received subpoena from US Justice Department, others like Apple Computers, Electronic Arts Inc. & Brocade Communication Systems are on their toes to restate financials.

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Source : IIPM Editorial, 2006, Arindam Chaudhuri's Initiative

Marshy dessert!

IIPM BUSINESS & ECONOMY

Mosquitoes infested deserts...
It sounds shockingly strange that in dry and arid Rajasthan, Malaria is spreading as an epidemic. The political ecology of changes in the Western regions brought by the Indira Gandhi Canal has been catastrophic. Associations of Physicians in India have tried to draw a correlation between incidence of Malaria and the annual rainfall in Rajasthan. While the mean annual incidence of Malaria was reported to be 277+ / - 90 cases per 100,000 population, the mean annual rainfall was 541 + / -144 mm. The mean cultivated area being 15.5+ / -1.2 million hectare, it was noted that while prolonged rainfall had an effect on the incidence of Malaria, increased area under cultivation, especially under Indira Gandhi Canal, had a definite bearing on Malaria. While the Canal brought definite changes in terms of increased agricultural production in Ganganagar, Jaisalmer and Barmer districts, it has also caused major ecological changes, which contribute to Malaria resurgence. The irrigation has increased cultivation of water intensive crops as area under paddy has increased from 31mh in 1950 to 42mh. Seepage from the canal has similarly converted around 10,000 hectare of desert into the marshland, making it a ripe breeding ground for the vector.

The planned motive of making the desert bloom is commendable only when agricultural practices are tuned to sustainable agro-climatic zonation. Rajasthan needs eco-friendly mode of irrigation and that most certainly does not include the Canal mode.

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Source : IIPM Editorial, 2006, Arindam Chaudhuri's Initiative

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Dressing a hotel is becoming every designer’s dream!

IIPM PUBLICATION
Less media savvy than her sis Paris, hotel heiress Nicky Hilton is a blossoming fashion designer with a handbag line and a clothing collection called ‘Chick by Nicky Hilton’ to her credit. This entrepreneurial miss is now setting foot into the hotel business sans the Hilton badge, by renovating two hotels – one in Miami’s Ocean Drive and another in Chicago’s historic neighbourhood, Printer’s Row – and will be known to all as the Nicky O hotels.

Several swoon at the mere prospect of owning an Armani suit, which is exactly the sentiment a new breed of hoteliers are banking on. That lounging in a couch chosen by Donatella Versace would appeal as much as an elegant Versace coat is perhaps what they hoped when in 2000 they launched in Australia’s Gold Coast the 277- room Palazzo Versace, which carried definitive imprints of the label around every edge. And then there is Italy’s Bulgari, which joined hands with Marriott International’s Ritz-Carlton to design the interiors of hotels in Milan and Bali. Meanwhile Giorgio Armani too decided to diversify and tied up with Middle East’s Emaar Properties, to bring forth four resorts, ten hotels, from Milan to Tokyo.

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Source :- IIPM Editorial, 2006, Arindam Chaudhuri's Initiative

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...is the recent CD issue by banks

IIPM MANAGEMENT INSTITUTE
The RBI’s decision to hike short-term rates may or may not put brakes on the swashbuckling credit growth, but one thing is for sure that it has translated into another round of lending rate hikes by banks. While the Finance Ministry can ask public sector banks not to hike rates (as it did on August 5, 2006), what the ministry cannot do is to stop people from borrowing.

RBI in its Q1 review has expressed its concerns over credit growth and more so over the pathetic rate of growth of deposits and the manner in which banks are trying to meet the credit demand. As of July 7, 2006, on a year-on-year basis, the aggregate deposits of banks have grown by a mere 19.3% as compared to non-food credit, which grew at a monstrous 32.9% (refer graph). And to meet this demand, banks have been raising money from every nook & corner.

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Source :- IIPM Editorial, 2006, Editor - Prof. Arindam Chaudhuri

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...before the proposed bill to use women judges in rape cases is cleared?

IIPM BUSINESS & ECONOMY
All said and done, crime against women does not give a better picture today than it did a few years back; they just go on rising year after year. Major cases among these atrocities being the sexual harassment ones. While the books hold laws against these crimes, the practicality of their use is always questionable because of the many social and economic pressures on the victim. But this time around, the new bill proposed by the cabinet to have only women judges deal with rape cases, shows sense and hope.

Seema Gulati, a leading woman criminal lawyer in Delhi, upholds, “The victim will feel more comfortable before a woman judge and a woman prosecutor.” A dent to a woman’s personality and injuries to her dignity and chastity, while putting forward details in front of men, is much more than just embarrassing to a rape victim.

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Source :- IIPM Editorial, 2006, Editor - Prof. Arindam Chaudhuri

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The Famous Five!

IIPM PUBLICATION
And here lies the catch – the companies should expand more and more to champion the cause of economies of scale, as the costs of operation otherwise would not lower on their own. In the past couple of years, the cost of employing a drilling rig in water-bodies has increased from $200,000 per day to $500,000 per day! As Sarah Hunt, Analyst, Capital Management Associates also agrees, “… what is important is to elevate production volumes, so that the oil companies are safe even if the oil prices fall down to the $35- $40 per barrel range and cost inflation is taken care of.” Hence, with the impending decrease in the prices of oil, the profit margins lie in great danger even for the Cyclops of the oil industry.

Therefore, the oil giants have to ensure that capital spending must yield higher outputs and that Return on Gross Invested Capital (ROGIC) should be raised from the current level of 2% to industry standard of 5-6%. Oil companies need to understand that the situation, however bright it appears at the moment, will definitely depreciate in the near future and for that, all the companies in the industry have to collectively gear up!

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Source :- IIPM Editorial, 2006, Editor - Prof. Arindam Chaudhuri

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America’s strategy of bilateral trade agreements

IIPM BEST B-SCHOOL
Indeed, there may be a further hidden agenda behind the 97% proposal. At the World Trade Organization’s meeting Cancun in 2003, the developing countries stood together and blocked efforts to forge a trade agreement that was almost as unfair as the previous Uruguay round, under which the poorest countries actually became worse off . It was imperative that such unity be destroyed. America’s strategy of bilateral trade agreements was aimed at precisely that, but it enlisted only a few countries, representing a fraction of global trade. The 97% formula holds open the possibility of extending that fragmentation into the WTO itself.

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Source :- IIPM Editorial, 2006, Editor - Prof. Arindam Chaudhuri

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Wipro and Motorola elope

IIPM Business & Economy
Wipro’s global IT arm, Wipro Technologies and Motorola, the US based telecom company, have formed a joint venture WMNetServ, with an investment worth $20 million. Wipro would be holding 80% of the stake and the remaining will be with Motorola. The investment that would be done over the next three years would mainly be used for soft - ware tools and developing a network operating centre (NOC). WMNetServ will host a global network operating centre (GNOC) platform, which will be integrated with NOC of Motorola in North America and Europe. The joint venture will be involved in delivering and managing services in planning, optimisation, security, operations and support.

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Source : IIPM Editorial, 2006, Editor - Prof. Arindam Chaudhuri

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Logic redefined

IIPM PUBLICATION

Notings not part of ‘information’
To an extent, governments may be right in guarding their deeds. Not everything is easily understood by people at large and when emotions take over, things can get messy. That, however, doesn’t appear to be why the union cabinet opted to amend the Right to Information (RTI) Act in a meeting on July 20. The cabinet decided to keep “file notings” outside the purview of sharable information.

The RTI Act was born because of a popular movement against the opaque manner of governance. Government employees had gone too soft and too corrupt because nobody knew what they were doing. In this context, file notings are basically a few lines of scribbled opinion at the various stages a file passes through. For example, a single file may tell us how a bureaucrat and several ministers went about a decision. Now, the government fears it may be embarrassed by its own thoughts & so the newest amendment.

Not everyone agrees with this. Chief Information Commissioner, Wajahat Habibullah has in the past shared information the government didn’t want to. On the cabinet amendment, Habibullah says, “Our job is to follow the law... File notings come under the RTI.” Clearly, the ambiguity is because Article 2 (f) of the RTI Act mentions “file” under “material” used to define “information”. But the government now cleverly proclaims that file notings are not part of “information”.

Amusingly, this means that all that the government has to do to stop people from taking advantage of the RTI Act, is to change the definition of what comes under “information”. One wonders how long would it take for the government to pass a bill announcing that information itself is not part of ‘information’? Well, if you’ve read the previous article properly, you would have got the answer by now... 24 hours!

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Source : IIPM Editorial, 2006, Editor - Prof. Arindam Chaudhuri

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MALAYSIA... TRULY INDIA?

IIPM MANAGEMENT INSTITUTE
As a tourist destination, Malaysia is truly bewitching, with adventure holiday destinations like Pahang and Sarawak, hi-tech modern cities like Kuala Lumpur and Penang (the Pearl of the Orient) as well as historic sites like Kuantan & Malacca. Malaysia is world renowned for its hospitality. The country recorded 16.43 million arrivals in 2005, a rise of nearly 30.5% over 2004 ($8,408.97 million in receipts). The Malaysia – Truly Asia campaign has not only won the country laurels like HSMAI Adrian Awards 2004, but also happens to be the key factor behind tourism being the second largest contributor of foreign investment to Malaysian. While Japan contributes the majority to Malaysian tourism, efforts to make Malaysia top-of-mind for the Indian tourists are encouraging. “2005 is the best year for Tourism Malaysia; the country received 225,789 Indians, largest so far – owing to the successful implementation of our national strategy,” cited Manoharan, Director, Tourism Malaysia, India. Aren’t we packing our bags already?!

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Source : IIPM Editorial, 2006, Editor - Prof. Arindam Chaudhuri

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Ignorance, Envy & Jealousy

12,957,098 INR - 17,276,131 INR

Painted by James Ward, ‘Ignorance, Envy and Jealousy’ remains true to his symbolic style of painting. The oil canvas captures an authoritative and yet perennial battle between the forces of good and evil. Truth is depicted as a woman dressed in white flowing robes and a Bible in her lap. Three deformed and ghoulish forms on the left hand side figuratively speak of Ignorance, Envy and Jealousy. The monsters are shown clawing at Calumny’s throat to fill it with deceit and contempt. The glowing lady, who is shown sitting on a rock, is surrounded with Christian representations of the Holy Trinity that ultimately link her to the divine Virgin Mary. The light in the backdrop is salvation. Indeed, a painting with a deep and undying statement...

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Source :- IIPM Editorial, 2006, Editor - Prof. Arindam Chaudhuri