Monday, November 26, 2007

Global Oil And Terror Equation


IIPM PUBLICATION

The Global Oil And Terror Equationlast time around it happened, the war lasted more than a few hundred years. This time, it's just about 15 years old. Strategic analysts and policy makers in the West are loath to use that term; yet for the man in the street in the Arab world, the alliance led by George Bush Jr. is waging Act Two of crusades against Islam. More than a decade ago, well known author and ‘thinker’ Samuel P. Huntington had already provided a hypothesis about the forthcoming ‘clash of civilisations’ between Islam and the West. More than 400 years ago, the French mystic Nostradamus had foretold of a third World War starting in West Asia. For conspiracy buffs, all this is a great opportunity to while away hours with friends.

Serious Tony Blair: Will he strike back?analysts don’t really take this seriously. Yet, even they appear worried by the growing cleavage between political and radical Islam and the West. A day after the London blasts, columnist and author Tariq Ali commented that these terrorist attacks are the symbol of Muslim youth’s impotent anger against the West. Echoing something similar, columnist Thomas Freidman said that it would be folly for the policy makers to demonise and alienate Muslims. For example, can France wish away the more than 5 million Muslims living in their country?

For that matter, can the US leave West Asia alone – to prosper or destroy each other, as the citizens and governments there decide? It simply can’t, because of oil and gas. In an interesting analysis, columnist Fareed Zakaria of Newsweek had linked the lingering and traumatic presence of American troops in Iraq to the obsession of Americans to drive gas guzzling monsters called SUVs. The result: Since Americans do not want to give up on their lifestyle, they have to continue Act Two of the crusade. At least till the world finds a credible alternative to oil as a source of energy.

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Source :
IIPM Editorial, 2007

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

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Monday, November 19, 2007

Zee News has moved forward from time to time. Today it is a channel that earns good profits...


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With Zee News has moved forward from time to time. Today it is a channel that earns good profits...its General Entertainment Channel (GEC), Zee TV has surely brought a smile back on the face of Zee, others channels under ZEEL like Zee Cinema, Zee Café, et al still have to contribute their bit. The coming year will witness a deluge of new channels, making competition go through the roof. Moreover, Star will incessantly strive to retain its position and widen the gap. Add to that entry of veterans like NDTV & TV18 to the entertainment genre, which constitutes 35% of total eyeballs and 40% of overall revenues, clearly, Zee will have to adopt a more sustainable programming & marketing strategy.

At the bourses, the track record of ZEEL, ZNL and DishTV since restructuring has been shaky yet encouraging. Says Kaul, “The unlocking of value was the underlying sentiment of the restructuring along with streamlining various next Gen businesses. As far as unlocking the value is concerned, it is evident from the stock prices in itself. When we restructured, Zee was being traded at about Rs. 200; currently Zee Entertainment is being traded at Rs.300 and the two new entities created from erstwhile ZTL are in the region of Rs.110 (WWIL) and Rs.60 (Zee News), so in essence, the value has almost doubled since restructuring.”

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Source :
IIPM Editorial, 2007

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

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Wednesday, November 07, 2007

Apollo Tyres is accelerating towards its strategic goals. But wearing out is a threat


IIPM PUBLICATION

For Apollo Tyres is accelerating towards its strategic goals. But wearing out is a threatstarters, Apollo Tyres, which became the first in Indian tyre industry to surpass the $1 billlion annual revenue mark in FY 2006-07, is also the most profitable in the industry, with its PAT margin of 3.1% (amounting to Rs.1.13 billion) being the highest in the industry and more than double the 1.5% PAT margin of the second-most profitable tyre-maker (MRF). It is also ranked 169th on India Inc.’s most profitable entities for the year 2006-07. During our discussion with senior Apollo Tyres officials, we learnt about the company’s belief that despite majority of mergers failing, it would still hinge its fortune on a mix of organic & inorganic moves. Just last year, the company purchased the South Africa unit of Dunlop Tyres with a purpose to take advantage of the huge growth markets of South Africa and Zimbabwe. While talking to us about Apollo’s future deal-making plans, Neeraj R. S. Kanwar, Joint MD & COO, claimed, “As a company, we are constantly on the lookout for newer areas of expansion, which could provide us the right growth opportunities in our products, markets, technology and for our employees. We are constantly looking at options and will definitely tell you closer to a closure. However, simply because statistics say that 72% of M&As fail does not mean that industry will stop looking at it as a growth option. It is in our hands, with the right processes & systems in place to ensure we succeed where others failed!”

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Source :
IIPM Editorial, 2007

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

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