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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