Tuesday, November 27, 2007

The making of history!


IIPM PUBLICATION

Finally, India plunges into the great game of the 21st century

History Indian nuclear pygmiesmay be kind or cruel, but it is always replete with twists, turns and delicious ironies. In 1973, when the American President Richard Nixon was hunting for someone to contain the strategic threat from a nuclear armed patently hostile Soviet Union, China happened to be in the right place at the right time. The subsequent entente between the US and China changed the course of history. In 2006, when American President George Bush was hunting for someone to contain the emerging strategic threat from a nuclear armed latently hostile China, India happens to be in the right place at the right time. And the spanking new strategic partnership between the US and India will surely change the course of history once again. In fact, America’s gesture of friendship towards India goes far beyond the entente that it established with China.

Without any doubt, the nuclear deal signed by India and the United States will ignite fire storms of anxiety across nations that would not be delighted with India’s emergence as a global super power in the 21st century.

Lobbyists and lobby firms in Washington are going to make a killing this summer. China will try damned hard to ensure that the $500 million a year it spends on lobbying in Washington is leveraged to scuttle the historic nuclear deal between India and the United States. Pakistan, too, has a formidable lobby in the US State Department and Pentagon, which will be used to kill the deal. Then again, India will have to contend with non-proliferation fundamentalists like Daryl Kimball, Executive Director of Washington-based Arms Control Association, who mutters on: “The (US) Congress and the members of the voluntary 45-member Nuclear Suppliers Group should not accept the deal as proposed and should press India to halt its production of fissile material for nuclear weapons.”

Of course, it is not as if India is bereft of friends and well wishers in Washington, prominent among them being Chief Executives of Fortune 500 companies, who want to do business with India. Union Commerce Minister Kamal Nath dramatically announced in a public platform after the nuclear deal was signed: “The US India Business Council (USIBC) has said that they will be taking up this issue in Washington DC with their Congress that the nuclear energy agreement is in the interest of the US and not ours.”

In an interview to the news channel CNN-IBN, international columnist Fareed Zakaria had this to say about the prospects of the US Congress giving a thumbs up to the nuclear deal: “There will be a core group of the non-proliferation types, who will oppose the deal. But at the end of the day, I think the President will get his way.”

There is a possibility that a politically weak George Bush may not have the clout to carry skeptical members of the Congress. Yes, the deal might be blocked in Washington. Still, the real story is the arrival with a bang of India as a global player that the world can no longer condescendingly ignore. B&E had earlier categorically forecasted that 2006 will be the year in which India will take a formal bow on the global stage; that the blinkered bracketing of India with Pakistan will be buried with state honours. Says Infosys CEO Nandan Nilekani:” India stands on the cusp of history and the world cannot afford to ignore India anymore”.

The statement by Secretary of State, Condoleezza Rice, after George Bush and Manmohan Singh shook hands on the nuclear deal, made it abundantly clear how impossible a similar nuclear deal with Pakistan was: “This is not the time for such an arrangement with Pakistan. Everyone knows that there have been concerns in terms of proliferation with Pakistan.” And Bush’s historic democratic- kick to Musharraf ’s nuclear ambitions, during Bush’s last leg visit to Pakistan on March 4, 2006, simply drove the point home and beyond that Pakistan is beyond the pale on nuclear issues.

Milestones
  1. 1950s: Finally, India plunges into the great game of the 21st century Uncle Sam frowns atypically as India preemptively launches the Non-Aligned Movement
  2. 1962: The US pressurises China to halt invasion into India and mulls direct military assistance to India
  3. 1965-67: The US gives massive food aid to India after a famine
  4. 1971: The US openly sides with Pakistan in the Indo-Pak war. India inks treaty with Soviet Union
  5. 1974: India explodes nuclear bomb and Washington immediately imposes a harsh sanctions regime
  6. 1979: Soviet Union invades Afghanistan; India supports the move and Washington is disgusted
  7. 1991-98: India launches economic reforms; and recognises Israel. USA puts critical roadblocks to thwart India’s missile programmes
  8. 1998: India conducts nuclear tests; sanctions re-imposed by the US
  9. 21st century: The rapprochement begins between the two

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Source : IIPM Editorial, 2007

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

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Tuesday, November 20, 2007

Global Lessons


IIPM MANAGEMENT INSTIT

Nokia nokia still dominatescan draw from the lessons that global heavyweights have learnt in India. General Motors (GM), Procter & Gamble (P&G) and Sony stand out for their unique and oft en humbling experiences in India. All three are global leaders in their respective domains: automobiles for GM, Fast Moving Consumer Goods (FMCG) for P&G and consumer electronics for Sony. All three had an India entry strategy that tried to leverage their ‘status’ as world leaders and consumer perceptions about the ‘premium’ nature of their brand equity. All three initially disdained the bottom end of the market and concentrated on the top segments. The result: All three failed to capture even respectable market shares in their respective domains.

But Nokia PhoneNokia has been proactive enough to invest $50 million to set up a manufacturing plant in the southern city of Chennai in India. This plant will manufacture mobile handsets as well as equipment. This is a clear signal from Nokia that it views India as a major market across the world. And why not? Going by latest figures, India is the fifth largest market in the world for Nokia. Also, if the current growth trend continues, more than a 100 million Indians will be buying mobile handsets by 2008. Nokia is not alone in investing in India and laying their bets on the future of the market. The South Korean conglomerate LG has already pumped in more than $32 million to set up a manufacturing plant in Pune.

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Wednesday, November 14, 2007

The Trailblazer


IIPM PUBLICATION

‘FillL to R: Brijmohan Lall Munjal, Pawan Munjal & Anil Dua it-shut it-forget-it’, is perhaps one of the most effective add campaigns of all time. For it not only provided a fresh lease of life to the two stroke era but also foresaw a new dawn in the Indian two wheeler industry with the advent of the contemporary four stroke. It takes shrewd business acumen to convert the state of mind of an entire consumer base and HH did that effectively. HH was responsible in changing the perception about the motorcycle. The company can be credited with bringing about the motorcycle revolution in India and the subsequent change of guards in the motorcycle’s favour (from the scooter) as an efficient and affordable commuter solution.

The company tasted success with its CD 100 class motorbikes and eventually launched a slew of other models including the most successful motorcycle ever – Splendor. Also, HH did not restrict itself to the entry level segment but moved up the value chain to test the waters of the premium segment too. India’s first true premium bike – CBZ was launched by HH in the year 1999 while the Karizma was unleashed in the year 2003. The 156.3cc CBZ motorcycle was a runaway success and combined with the intoxicating 223cc Karizma, transformed Hero Honda’s image from a manufacturer of small capacity bikes to large capacity motorcycles. However, unlike the complacency that bogs the HH in the premium segment has surprisingly not set in the less than 125cc segments. To maintain its supremacy, all these years HH has been relentlessly updating & modifying its model range. The Splendor NXG & the Achiever are models, which are updated versions of some of the best selling bikes from the HH stable. You don’t become number one for nothing!

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Thursday, November 01, 2007

Creating Thrones For The Kings In The Country


IIPM MANAGEMENT INSTITUTE

A telecomCreating Thrones For The Kings In The Country which starts with a warm address turns bitter before hanging the call when it’s from a marketing guy. The trepidation of getting caught into a trap lingers in the minds of the individuals as they anticipate a sure to experience trouble following the call. The situation is worse when it comes to Multi Level Marketing. But here is a high flier organization which is just six months old and which holds one lakh souls bound to it glistening with pride as it has made more than 500 people in its team earn in lakhs every week.

Kingmakers- a MLM organization which differs from the rest of its kind in the field in the approach it picks up to build a strong network. Mr. Sunil kumar, chairman of the group explains it like this. “We don’t force anyone to join our network. People should not feel like getting trapped when they actually make an association with us. We make them understand the growth and the prosperity that is in store for them. It is a real networking approach which is the first of its kind in India. Our only motto is to elevate the economic status of the individuals of this country which is very much possible through network marketing.”

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