IIPM PUBLICATION AND ARTICLE: October 2008

Thursday, October 23, 2008

“Sales have suffered lately”

B&E: What’s your take on downturn in the automotive scene?
MB: The market is undoubtedly at risk and sales have suffered lately but we are looking into the matter closely.

B&E: What are Ford’s plans for capacity expansion in India?
MB: Well, we will be expanding our production to 200,000 units by 2010. We are considering a number of models for the market and that includes a small car that we intend to launch in India.

B&E: Why has Ford discontinued the smaller 1.4L engine that could add volumes to the Fiesta?
MB: The 1.6L engine can alone meet the requirements that would have been met by the 1.4L engine. It has been tweaked and now delivers brilliant performance and fuel efficiency. As a result of these changes, the Fiesta has now become a very attractive product.

B&E: Since the Fiesta was already a high selling car, with the addition of new features has the product changed?
MB: This is a very stylish car with very good performance. It is a kind of car you want to own just by looking at it. The car is targeted at the educated urban Indian, who has succeeded in life.4

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2008

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

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

Top Articles on IIPM:-
'This is one of Big B's best performances'
IIPM to come up at Rajarhat
IIPM awards four Bengali novelists
IIPM makes business education truly global-Education-The Times of ...
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
IIPM ranked No. 1 B-school in India- Zee Business Survey ...
IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs

Tuesday, October 21, 2008

Building bridges between Muslims, Christians, and Jews seems like a worthy goal

Some in the American media encourage this angle on extremism. Exhausted and depressed by years of worry over Osama bin Laden, a war in

Iraq, and high-pitched threats from the Bush administration toward Iran and Syria, people long for happier narratives about Muslims. In addition, this story helps both large institutions, ranging from the World Economic Forum to Georgetown University, and small grass-roots organisations that focus on the benign and irrelevant exercise of “interfaith dialogue” raise millions of dollars from US foundations and governments in the Persian Gulf. The Saudi royal family, for instance, has a great interest in down-playing the divide between Muslim and Western societies. But simply pretending these differences do not exist is a stumbling block to what should be Western governments’ efforts to engage those Muslims who matter. Merely embracing Muslims who are already converted to a Western school of thought, while shunning and alienating those who have influence over the very extremists who challenge the West’s vision of the world is not only misguided; it is in fact very dangerous. By avoiding the fact that there are profound differences between Muslims in the East and non-Muslims in the West, we are hindering solutions that could prevent the next terror attack in London, Madrid, or Washington.

is campaign are Muslim-American activists. Their message to Muslims in the Islamic world is that America is a great land of the free and any grievances with the United States are misplaced. When addressing American audiences, on the other hand, they promote a mythical idea that Muslims from Egypt to Pakistan actually have favourable notions of the United States. Of course, that works in their favour: By deceiving the public into believing the “threat” is exaggerated, this Muslim-American lobby hopes to create more favourable views of Muslims in the eyes of Americans.

Another culprit is the interfaith dialogue campaign. A few dozen professors of Islamic studies and Muslim-American activists have signed letters to Pope Benedict XVI in an attempt to show that his derogatory statements about Islam have all been forgiven. (I doubt the proverbial Arab street agrees.) Likewise, Christian, Jewish, and Muslim youth groups are organising gatherings at churches, synagogues, and mosques to find common ground. During their meetings, they condemn the violent acts carried out by extremists in their respective faiths and bond over how much their religions have in common.

If it all sounds like a healthy if insufficient first step, it probably is. Interfaith discussion distracts from uncomfortable but necessary questions and should be considered a hindrance to concrete and effective foreign-policy approaches to counter extremism. A far more effective effort would be to appeal to the disaffected youth in Europe and the Islamic world who loathe the United States and much of what it represents. Another necessary step – widely debated during former President Jimmy Carter’s trip to the Middle East in April – is to begin official negotiations with groups with widespread power and influence, such as Hamas, Hezbollah, and the Muslim Brotherhood. The fact that these organisations are the future leaders in the Middle East cannot be ignored. So why shun them from the policy debate?

In January, the Alliance of Civilisations held an extravagant gala in Madrid, where dignitaries from around the world pledged to “bridge the divide.” As usual, the world’s political elites pledged to throw money at the problem. Sheikha Mozah Bint Nasser al-Missned, wife of the emir of Qatar, announced a multimillion-dollar investment for a global youth employment initiative. Queen Noor of Jordan pledged $10 million toward a media fund to “support the production and distribution of films that entertain as well as enlighten.”

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2008

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

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

Top Articles on IIPM:-
'This is one of Big B's best performances'
IIPM to come up at Rajarhat
IIPM awards four Bengali novelists
IIPM makes business education truly global-Education-The Times of ...
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
IIPM ranked No. 1 B-school in India- Zee Business Survey ...
IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs

Saturday, October 18, 2008

Investing a dime, well in time...

Major auto manufacturers are on a prowl for the ideal location just as India becomes the best place to bet on. There are mind-boggling investment figures involved here, B&E’s Pawan Chabra investigates...

Today, we stand at a cross roads, where we all stand witness

to India being reckoned as the country which has become the repertoire of the best automotive technologies available. As economic development percolates wealth into the Indian economic hierarchy, people now have access to the best of motoring experiences. The somewhat fresher economic outlook has coaxed the government to replace the erstwhile underwhelming driving experience with faster and safer roads, and supporting infrastructure. What better way to do this than to allow private-public partnerships and to smoothen the process by removing red herrings. This is directly inline with the ambitious AMP (Automotive Mission Plan), an actuating vehicle which by 2016 will allow the automobile industry to contribute nearly 10% to India’s GDP and play on a mind numbing turnover of $165 billion. According to Dillip Chenoy, Director General, SIAM, “Earlier the government thought that the AMP was a bit conservative. However, as far as the target is concerned, it is well on track and I think the 10% (as part of the GDP) mark is achievable.” This not only means goodies for the Indian consumer but for the manufacturers as well, lined up with big ticket investments.

In the last two years, we have already seen many reports emphasising the fact that real estate and retail were the two primary sectors which attracted attention in the country, but recent announcements by various auto majors have put the sector into the lime light as well. With such a vast market and now a supportive Indian government, India is well on its way to become a hub for small car manufacturing. Auto guru, Murad Ali Baig explains the reasons for India being chosen as a preferred destination, “The huge potential of the small car market is the biggest factor in attracting these auto players into India and making it a hub for small cars.” Speaking along similar lines, Vaishali Jajoo, auto analyst, Angel Broking further states, “The growth in domestic sales is quite slow at this point of time but the growth of export is high. Therefore, making India an export hub for small cars makes sense for the auto players.” As domestic sales is forecasted, there is bound to be a win-win situation for the auto sector. Interestingly, even though cost of raw materials are on an upturn, it is still lower than compared to that in western countries, thereby guaranteeing better prospects for the future of Indian manufacturing.

Players like Hyundai, Toyota, Maruti, Volkswagen and GM have already announced their plans of their Indian sojourn. Speaking on the topic, Arvind Saxena, Senior Vice President (Sales & Marketing), Hyundai Motor India asserted, “We are exporting almost 66% of the cars that are being exported from this country.” This explains the importance and acceptability of Indian manufacturing. Volkswagen on the other hand has brought a massive investment of an incredible Rs.24.5 billion for its Pune plant. Honda Siel (HSCI) on its part has already announced a Rs.10 billion Jaipur unit. The Detroit duo GM and Ford has ambitious plans as well with the former already investing a whopping Rs.12 billion in its second plant at Pune. TATA’s investment of Rs.15 billion at Singrur for the production of the much hyped Nano has also been attracting attention for long. It seems that the players in the industry have realised the potential in the Indian auto market and have begun to take it very seriously. Discussing about the potential of the new plant Janeswar Sen VP, Marketing & Sales, HSCI avers, “North India comprises of 40% of the market in India, and hence the proximity to the biggest market has been a big consideration for us. This area is on the dedicated Rail freight corridor notified by the Government of India. Therefore we can expect good infrastructure and logistics facilities here.”

Interestingly, both Maruti Suzuki and HSCI have decided to open their plants in Manesar, Haryana and Rajasthan respectively (away from the present auto belts). Other than that, HSCI also has a plant at Greater Noida. Noticeably, India mainly has two renowned auto belts, one being in the reigon of Pune- Nashik- Auranagabad and the second in the southern part of the country. Interestingly, none of them came up with an intention to create such belts in that particular region but it happened automatically. The state governments tried to lure the auto players by giving tax-holidays and the rest followed. Moreover, the proximity to ports, supporting infrastructure and presence of other players was also an added advantage for these regions.

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2008

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

Friday, October 17, 2008

The drive back home

One just needs t

o steal a look at the share prices of the top companies – even the Japanese thunderbirds – to understand that something is deeply and structurally wrong. From December 31, 2006, to August 21, 2008, the share price of Ford has fallen from $7.51 to $4.61. GM: $30.7 to $10.16. Even Toyota has plunged from $108.9 to $88.19. And Honda has moved from $31 to only $32.65. Clearly, investors are finally viewing the Japanese players’ investments into hybrids with quite critical viewpoints.

Today, the situation is such that the global auto industry, leave a few exceptions, is getting scythed because of this furious refusal to accept the fact that consumers can maddeningly settle for a lesser ‘quality’, yet more fuel-efficient product. While the huge US market fell a negative 4.5% in automobile production last year, Japan grew only a puny 1%, Austria fell down a negative 17%, Finland a negative 26%, Portugal by a negative 22.5%, South Africa by a negative 9%, Belgium by a negative 9%, France negative 4.8%, Malaysia negative 12.2%, Netherlands negative 13%, Taiwan negative 6.7%. Yes, China grew by 22% and India by 14.4%, but their growth story and even of others could only make the global production grow by 5.7%.

If the Americans are insane, then I have to admit that other global auto firms seem to be leading the pack of insanity in their quest to reinvent the fuel deal. In 2006, Ford Motors was the world’s largest loss making corporation. In 2007, General Motors was the world’s largest loss making corporation. If you think that Toyota – creditably at a very powerful position currently – can never attain that glorious stage of losses, do remember, a company like Ford, which had around $100 million profits in the first quarter of 2008 (Jan-March), got cannon-balled by a killing loss of $8.6 billion in the second quarter; and all because, as Bill Ford put it last week, “Literally overnight, people stopped buying trucks and big SUVs and started demanding fuel-efficient cars...” All it took Ford to get destroyed was a matter of three months! All it would now take the global auto industry to die would be the same..

113 long years of uncertainty!!!

From cars to oil, the journey continues...

1895 : Karl Benz patented ‘Benz Patent Motorwagen’ was the first car ever. The vehicle was driven by a 950cc motor producing less then 1 horsepower. The German invention has changed the way people look at personal transport

1908 : The introduction of Ford T in the early 20th century has brought about a revolution, continuing till date. The car was the first mass produced vehicle that enabled the masses to go for their own set of four wheels.

1967 : The aftermath of the six day war between Israel and Egypt (Arab-Israel War), proved to be a significant escalator of oil prices. Several oil producing Arab nations threatened an embargo on Europe and the US. By 1973, the pressure started mounting and resulted in a crises type situation. Long car lines, for precious and non-existent gasoline, outside US gas stations became a common sight.

1980 : As the Iran-Iraq war broke out, the price per barrel crossed the $60 mark. With major oil producers engaged in war, there was a great instability in the global oil market. This was accompanied by price fluctuations and volatility.

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2008

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

Thursday, October 16, 2008

Hindware hinting a Way!!!

Neha saraiya finds out how HSIL is curbing attrition by considering the people working for the company as not just employees, but as entrepreneurs
After the much hyped IT boom, now it’s the turn of the manufacturing

sector to ride on a high. The sector has been growing at an average rate of 9% in the last four fiscal years (2004-08) & is estimated to reach $300 billion by 2015 (in terms of exports). Little wonder, that India’s manufacturing base stands as the fourth-largest base among all emerging economies of the world. And one company that complements such magnificent base is Hindustan Sanitaryware Industries Ltd. (HSIL). The brand accounts for one third of domestic sanitaryware market in India. The company, which started its journey in 1962 in collaboration with Twyfords of UK, today has a nationwide network of more than 800 dealers and 20,000 sub-dealers & has recently forayed into retail. In an interaction with B&E, Sanjay Gaur, VP (Corporate HR), HSIL speaks about the HR practices persistent in the manufacturing industry. Excerpts from the interview:

B&E: Being pitched in the manufacturing sector, what are the people challenges that HSIL faces & how does the company deal with them?

SG: In today’s world, there is a war for talent. Talent hiring process & the speed of recruitment is a big challenge for us, but at the same time we ensure that the person coming into the organisation feels valued. Apart from this, another big challenge that we face is to manage expectations of high performers, as today market is offering them whatever they ask and these high performers expect a lot. The expectations are not just in terms of money but also in terms of the support that they need from the system. So, from the HR side we give as much personalised service as we can to the people, so that each person feels that they are being taken care of.

B&E: What are the different sources for HSIL to get talent on board?
SG: Apart from the advertisements, consultants and job portals, HSIL also recruits through reference. By the means of referrals, we are in fact building a competitive organisation with a family atmosphere.

B&E: Please elaborate on the induction process that is followed at HSIL.
SG: The moment new employees join the organisation, they are formed into batches and each batch undergoes a three day induction training, where a person is told about the company’s strengths & weaknesses. This batch then meets the Chairman, who is the mentor of the company. Then there is a story telling session, where he narrates how the organisation has grown to reach the levels attained today. This is followed by domain specific training, like for salespersons there is product training of seven days, within which they are certified in product training and after six months they are again revisited in product training to get recertified.

B&E: Today one of the crucial aspects in motivating employees is to ensure they have ample opportunities for growth and career development. What is done in this respect at HSIL?
SG: It is very difficult to keep people motivated especially in today’s environment. We’re doing a lot of things to motivate people. One is to empower them and second is to provide them with tools to perform jobs. We have even made a lot of cross functional teams, so that people learn things other than their routine jobs. There is career growth, which is planned for people and there are rewards and recognitions also set in place for employees. Each of our department heads have been trained to listen to people.

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2008

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

Wednesday, October 15, 2008

Backfiring on all cylinders

As communal violence flares in J&K, only political parties seem to be cashing in on the situation

The controversy over the Amarnath land transfer and its subsequent withdrawal by the government refuses to die down and has now divided Jammu and Kashmir (J&K) sharply on communal lines. While the controversy is slowly emerging as a potential national political issue, major political parties like the BJP and the Congress appear keen to sustain the communally charged environment for electoral gains as the election year comes closer. Expelled BJP MP, Uma Bharti came all the way to Udhampur in Kashmir to cash in on the opportunity. Congress leaders in the state, have understood the gravity of the situation and political leaders who were part of the cabinet that decided to revoke the order, are now making statements favouring land transfer.

Six people have been killed in the violence that followed the withdrawal of the land transfer order, taking the total death toll in the land row to 12. Six others had earlier been killed in the Kashmir valley during the protests against the transfer of land. While three civilians were killed in fresh clashes between police and protesters – two in Samba district in Jammu where Rapid Action Force (RAF) opened fire on violent protesters and one more in Srinagar when police fired tear smoke shells on protesters from close range. However, the incident that came as a shock to the Governor Vohra run state administration was the killing of three police personnel in Akhnoor area of Jammu region by a violent mob that had earlier been prevented by police from attacking a revenue office in the area. All the policemen were Muslims from Kashmir. Earlier as well, Muslim houses in Samba district were torched and Muslim traders, truck drivers and passengers from Kashmir were beaten by protesters in Jammu.

The violence spreading across the three Hindu dominated districts of Kathua, Samba and Jammu is not only costing lives, the activists of Shri Amarnath Sangharsh Samiti (an organisation formed to strive for the transfer of land again to the Shrine Board), besides organising mass protests, have been stopping trucks carrying essential supplies to Kashmir valley coming through National Highway 1A.

Fruit trucks moving towards markets in Delhi and beyond were also denied a passage through Udhampur, Jammu and Lakhanpur. As a reaction, traders in Kashmir are now demanding opening of the Srinagar-Muzaffarabad road as an alternative route for trade. In Poonch too, the demand of opening of the Poonch-Rawlakote road has been gaining momentum.

Meanwhile, all major towns in Jammu region have been put under curfew following communal clashes. But the fact that the Kashmir valley is beginning to react to the blockade enforced by right wingers against Kashmir valley could further worsen the situation. Separatist leader, Mohammad Yaseen Malik, has gone on a hunger strike demanding government to take effective measures to prevent attacks on Muslims and clear the highway for traffic. Army has been pressed into service for keeping the highway open for movement of trucks, but the situation is witnessing little improvement. Hardliner, Syed Ali Shah Geelani, too, has been calling for strikes against the situation prevalent in Jammu. Amid this, the calls for a separate Jammu could actually lead to the bifurcation of J&K on communal lines.

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2008

Tuesday, October 14, 2008

With the left burden off his shoulders Will arjun singh finally do some good?

For most of his term, he had his hands tied left, right and centre; arjun’s back with a vengeance
Over the decades, he has emerged as one of the most respected

entrepreneurs of post-Independence India and nurtures the powerful corporate legacy of the Godrej family. He is very optimistic about India’s future. And yet, when B&E asks Adi Godrej about one single issue that could derail India. he unhesitatingly says ‘education’. “The State has to encourage private sector participation in education. There is no other option. It is the private sector that made the third rate telecom and aviation sectors in India world class. It is the private sector that will do it in education.”

And of critical importance is the FEI (Foreign Educational Institutions: regulation of entry and operations, maintenance of quality and prevention of commercialisation) Bill, 2007, that had to be shelved last year by Arjun Singh due to stiff opposition from the Left. Granted that the current UPA government has just about a few months left to go before it is election season. But just as Prime Minister Manmohan Singh has staked his future legacy through the nuclear deal, HRD Minister Arjun Singh too has a great opportunity to stake his own legacy by reforming higher education in the country, and in a major way by getting the FEI Bill passed. In fact, the passing of this Bill could well lead to benefits that will be far more significant and enduring than the nuclear deal. And now that the UPA government is not hobbled by an obstructionist and obscurantic Left when it comes to policy making and implementation, Arjun Singh even has the space now to quickly leave a lasting imprint; if he so wishes to.

The question is, does he? It just seems, Arjun Singh wishes to do so, and this time is moving double time. “The hurdles have been removed to an extent and now the Bill should be introduced... If time is available, I would like to see it happen,” Arjun Singh commented just 48 hours after the government won the trust vote. Arjun Singh even set up an urgent meeting with state education ministers to initiate a blueprint for considerable expansion and education reforms in the next five years. But as he confirmed with his actions, the meeting was primarily with a focus on getting the FEI Bill passed quick time. Report after report and study after study has revealed the tragic truth that while India churns out millions of graduates and hundreds of thousands of doctors, engineers and managers, most of them simply do not have the basic skills required for the demanding job opportunities that 21st century India is creating. In short, India is spawning leagues of unemployable literates. The key is for the higher education system in India to ‘produce employable’ youngsters. And what better a strategy than promoting the entry of foreign institutions, already at the cutting edge of globalisation and education benchmarks that are extremely pertinent to the new world.

At the heart of the problem are lack of resources and role of UGC and AICTE, the two bodies that are supposed to regulate higher education in the country. Admits former NCERT Director J.S Rajput to B&E, “It is a fact that the government does not have requisite resources to maintain standards in higher education. So, the role and responsibilities of private educational institutions becomes critical.”

Experts comment that though UGC and AICTE could have moved mountains in improving India’s higher education framework, both of them currently face a crisis of quality, and to a certain extent, credibility. Says Dinanath Batra, Convener of the Shikhsha Bachao Andolan, “Now, the PM places more trust on reports of the Knowledge Commission.” According to the President of Centre for Civil Society, Partha Shah, the basic problem with UGC and AICTE is that they have not changed with the times. Clearly, instead of acting as change agents and effective regulators, they continue to adhere to rulebooks that have grown old beyond what today’s demanding higher education sector requires. It is not that the UGC and AICTE were set up with the objective of stopping the growth of education. In fact, these two institutions were once upon a time not so long back seen as perpetrators of processes and structures in the education sector that could have radically transformed the promised growth into higher figures.

Unfortunately, somewhere along the line, transformation got replaced by ‘regulation’, a factor that now seems to be stifling higher education to a point of death. Analysts comment that it is only when this quasi license permit raj in education is dismantled by the UGC and AICTE, will the education sector take off and become world class.

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2008

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

Monday, October 13, 2008

Arindam Chaudhuri on WHY ISB IS BETTER THAN THE IIMs and How to judge B-Schools

Introduction

First things first... Ever since we started Business & Economy, we avoided the temptation of undertaking B-school rankings for the simple reason that IIPM is a B-School we are very closely associated with; and at IIPM, we have always claimed that we are the best B-school globally. So any B-school ranking brought out by us would have had IIPM right at the top, at least in the three parameters of ‘course contents’, ‘global exposure’ and ‘research & consulting’! But if we were to have finally published such a ranking, our friends in the media would have taken no time to call them biased, however fact-based the rankings might have been. And undertaking a B-school ranking without speaking about ourselves would be next to impossible for an aggressive group like ours, which so passionately believes in our (IIPM’s) superiority. However, after the recent Zee Business B-School Survey that ranked us No.1 on at least one very very apparent criterion – of global exposure – I thought we could at least talk about Indian B-schools, if not rank them. And with the amount I personally am immersed in B-school mechanics and workings, it became but obvious that if our magazine were to do an article on the same, the story in any case would have been ghost written and dictated by me. So I thought I should anchor the story myself.

The second issue that needs clarification is that despite IIPM’s ‘Dare To Think Beyond The IIMs’ campaign, I have nothing against the IIMs; rather, all I have is sheer respect [My father was a professor at IIM Bangalore and is extremely proud of the same. My Managing Partner, my best friend at IIPM and the Editor of this magazine itself, A. Sandeep, is a product of IIPM and IIM Calcutta; and he specifically had gone to study there to have a first hand knowledge about the ‘IIM way’ before coming back to IIPM to take it up.

And finally, my best friend in school and the Head of our news portal TheDailyIndian.com, Partha Saha, is a proud product of IIM Calcutta]. We believe we are the best when it comes to education, but that doesn’t mean we don’t know how good the IIMs are or that their students get better placements than our students or even the fact that they attract the best of students of India – though we may still not accept that the final IIM product is, therefore, necessarily better! So, this article is not an attempt to malign the IIMs, but a simple attempt to analyse some facts.

Having said that, let me also state that what I am writing shouldn’t shock many; at least not those who know that the 2008 Financial Times rankings have put ISB as the 20th best B-school in the world and haven’t put any of the IIMs even in the top hundred! Yet, what I hope this article will do is bring perspective to those rankings and explain to people what management education is all about; since no magazine undertaking B-school surveys in India has even a fraction of ability to comment upon management education in India, compared to our capability. And it’s no arrogance but pure facts that we present. Almost all of Business & Economy’s editorial team comprises educated MBAs – the reason our magazine is such a sell out amongst those who love sharp analytical articles instead of pages full of incomprehensible blah blah based upon tens of quotes [the only thing typical journalists can rely upon in the absence of analytical skills].

And finally, I must say that the reference of IIPM will keep coming up from time to time, though I will try my best to keep the focus on the ‘ISB vs IIMs’ issue in order to make it read most unbiased!

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2008

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

Saturday, October 11, 2008

Citi never slips?!

Citi India is waking up to danger...
Jack Welch once said, “If change is happening faster on the

outside... the end is in sight.” Citigroup Inc., the largest US banking conglomerate which has been hit by rattling losses of $14.94 billion during the past two quarters, seems to have taken Neutron Jack’s ‘global’ 10-80-10 rule (where he fired the bottom 10% performers) to heart, in India too!

With its Indian operations hit by repurcusions of the ‘great American Citi downfall’, change on the outside seems to be dangerously working faster for Citi India. As a reaction, it recently closed down 72 CitiFinancial branches in the country and laid-off more than 400 employees. Globally, it chopped-off 30,000 names off its rolls in the past five quarters, so rightly, India too became a part of its ‘slim-down’ therapy. A report on Citi’s credit opinion by Moody’s investors’ service shows that Citi is facing problems in risk positioning, efficiency, profitability and asset quality – the very pillars of any financial entity!

Citi India doesn’t have many reasons to complain about the cuts as even when the count of Citibank India employees rose by 221.80% in the past four years to touch 5,194 in 2007, the profit/employee has plummetted disgrcefully by 29.17% during the same period to Rs.1.7 million. With ROA also falling by 23.30% to a low of 2.79 during the same period, speculations are also rife that CitiFinancial India is weighing the option of hiving-off its India operations, a move not supported by an NBFC analyst who avers, “Despite global hits making life tougher for Citi in India, exiting makes no sense for Citi at this point of time.” Sandeep Hebber, Sr. Analyst, Celent also presents an explanation, “In India, default rate for unsecured loans has been rising and the risk-return ratio has been deteriorating over the past 2-3 quarters. Clearly, Citifinancial has been hit owing to the higher default rates.” With sub-prime crisis causing tightening of lending norms, thereby cutting down on portfolio of sub-prime loans, reducing operating costs by reducing manpower count is just one way out to make changes happen within, faster than without; Chop on, but never slip (sleep?)!

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2008

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