Let the mango tango begin!

IIPM PUBLICATION

Mango diplomacy has won its day! The first dispatch (in 18 years!) of Alphonso and Kesari mangoes finally arrived in New York, much to the delight of the very many Indians, who live in the Big Apple, and are quite sick of eating apples! Giving them company are, of course, the Americans who have also been looking forward to Indian mangoes coming all the way to US shores. Mango distributors in America are now hoping that, after Alphonso and Kesari, Langra, Chausa, Mallika and Dussheri will follow in right earnest. These distributors are already holding talks with American chains to hawk the fruits; some food chains have evoked interest in mangoes too; they want to sell mango shakes, according to reports. Here’s the history of mango diplomacy briefly. Around 18 years ago, the US had stopped the import of mangoes from India (globally, India is the largest producer of mangoes: it produces more than 50% of the total global output) because, back then, Uncle Sam felt that there were too many pesticides used in the harvest process. Many rounds of negotiations and checks later, the Indian mango has won over the hearts of the Americans again!

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Source : IIPM Editorial, 2007

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

Corporate India is venturing into uncharted territories of public domain. Will the political class be gracious enough to make way?

Renowned Management Guru

Well, let’s not give in to over-exuberance, at least not just yet. Relations between high-fliers of India Inc. and the tenacious policy makers are still not of the ‘made for each other’ kind. Undeniably though, President Kalam’s recommendation of Infosys Chairman N. R. Narayana Murthy as his successor shows a positive undercurrent of change emerging. B&E discusses the implications...

It’s oft en said that cinema is a mirror of society of that day and age. And not without reason. That’s precisely why Big B, the Bollywood superstar of the 1980s, won widespread adulation for movies, where his image was of the ‘angry young man’, revolting against the ills of society, in particular, corrupt politicians and the overtly greedy capitalist class. Veritably, in the Nehruvian era and much beyond, capitalism and bureaucracy were perceived as the most perilous evils crippling Indian society. And what about India in the dawn of the 21st century? Bureaucracy & politicians are still not faring any better in their public image, except that they are now all considered equally bad (that explains coalitions)! But businessmen?

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Source : IIPM Editorial, 2007

An IIPM and Professor Arindam Chaudhuri Initiative

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(INCR)EDIBLE N TASTY!

Professor Arindam Chaudhuri (Dean of IIPM)

It would be no wonder to find a restaurant menu somewhere in the future littered with cloned, engineered, enhanced, advanced, morphed and modified food with ambrosial nutritional values, customised to even the minutest cell and onymous that puts to test man’s elementary scientific know-how every single time he decides to feed himself. Also surprisingly, it would be equally mundane to find news of people dying out of hunger. This unbridled dichotomy would continue to be associated with technology’s role in food for many years to come. While the world is breaking through at a breakneck speed, it has failed outright in breaking the shackles of food insecurity; and the ultimate challenge staring at the face of technology seems to be ensuring that hunger is bombed out of the Horn of Africa and other developing economies.

So how far has the world travelled till now? In 2006, land usage for growing biotech crops increased by a stupendous 13% to a staggering 252 million acres over the preceding year. A humongous 10.3 million farmers are into biotech farming. The recent usage (commercialised) of biotechnology goes to the extent of ensuring resistance in plants to some debilitating doses of insecticides and also making them insect and virus tolerant.

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Source : IIPM Editorial, 2007

Growing New Companies

IIPM MANAGEMENT INSTITUTE

Though Spain has a number of homegrown pharmaceutical companies, as well as a few companies formed in past decades that focus on biotechnology, the most significant increase in companies formed has taken place in only the last five years.

One of the most prominent examples of this new growth is Genetrix, formed by Cristina Garmendia (who also heads the Spanish biotech trade association ASEBIO). Genetrix spun off from the CNB in 2001, when Garmendia realized that while Spain produces a significant amount of quality research, there were limited paths to commercialization. She came to an agreement with the Spanish Research Council to buy a number of patents. The company began acquiring patents and building a base of widely varied services and research. Today, Genetrix has given rise to seven other spinoff companies.

“When I first joined, a year ago, we had 50 or 60 employees,” says Claudia Jimenez, who is in charge of the company’s corporate development. “We’re already up to 100. And every month there are two or three new faces in the office.”

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Source : IIPM Editorial, 2007

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

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Moto readies to gobble Terayon

IIPM PUBLICATION

Motorola is all set to get its hands on all the outstanding shares of Terayon’s Communication Systems, a digital video equipment-maker. For this purpose, Motorola will be shelling out a cash of $140 million. This move would help Motorola in strengthening their offering as Terayon soft ware-driven applications will assist them in digital ad insertion, motion and graphical overlays, channel branding and channel line-up and ad insertion delivery technologies. Motorola is still waiting for the regulatory sanctions and the nod of Terayon’s shareholders. It is expected that the deal would be finalised by the second quarter of 2007.

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Source : IIPM Editorial, 2007

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

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Burp and Miss? Naah!

IIPM MANAGEMENT INSTITUTE

Meanwhile, the ruling black drink of the country, Thums Up, is all for machoism and has unleashed a rocker of an ad with Askhay Kumar displaying Yamakasi stunts. But this time, the no-fizz orange and clear drinks seem to be equally geared up. While 7Up’s cool mascot Fido Dido is back in style and likes it Lite this time (don’t forget, India is getting health conscious!) – Mountain Dew has still not got over jumping cliffs, racing and machoism.

And on the non-fizzy drinks front, while Sorbet (from Mirinda) has Zayed Khan creating chaos on a busy street as he’s immersed in the new drink, Mazaa is still onto communicating that it’s a better alternative to juicy mangoes. “Maaza’s appeal across consumer segments is reflected by the fact that it is India’s largest selling fruit drink brand,” confidently says Davinder Singh of Coca-Cola India. Whatever may be the communication style – drama, humour or the evergreen macho factor – it’s quite clear that if global warming is going to have one positive side effect, it surely will be in the bank balances of these firms! 4Ps
Edit bureau: Romsha Singh

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Source : IIPM Editorial, 2007

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

A bird’s eye view of the Group

IIPM PUBLICATION

But then the roof suddenly fell. The steel business, that looked a solid bet till the mid 1990s, when the Ruias gambled billions on a new project, suddenly went into a tailspin. Far from generating profits like the much anticipated cash cow, the steel business virtually bled the Group dry. The cyclical downturn in the steel industry during the late 1990s and the early years of this century was one of the key reasons for the Essar Group reaching a stage of financial collapse and bankruptcy. By the late 1990s, the Group was already gasping for cash and was forced to sell a substantial stake in the mobile telephone business to Hutchison of Hong Kong. Of course, analysts now praise the Ruias for the guts and farsightedness in clinging on to about 33% of the stake in the mobile phone business even when the Group was in dire financial straits and the temptation to cash was strong.

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Source : IIPM Editorial, 2007

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

Of kings & stars...

IIPM MANAGEMENT INSTITUTE

With the Federation of Hotel & Restaurant Association of India (FHRAI) envisaging a whopping 35% growth aided by a mind boggling investment of Rs.1.6 billion during 2007 in the restaurant sector, QSR players have all reasons to park their money on the fast growing fast food eaters. States Ron Somers, President, US India Business Council, while speaking to B&E, “The fast food joints or quick service restaurant sector has a very strong market in India as compared to other nations in Asia.” Adds Nigel Travis, CEO, Papa John’s International, “Among the Asian countries, India has the highest growth rate in pizza market and the overall QSR segment will also grow very well.” So, it’s no surprise that the gastronomical economy of India is propelling behemoths like Starbucks & Burger King to make a grand entry.

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Source : IIPM Editorial, 2007

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

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Nanotechnology can be a big bet

IIPM PUBLICATION

Size does matter. Challenging this statement is the brilliant field of Nanotechnology – which is providing scientists with the ability to control matter right from the molecular or atomic level. It can wondrously track down deadly diseases like cancer as well as perform complex cell repairing by creating nanorobots.

Although behind the scenes for a long time, nanotechnology is suddenly in the limelight with attention from the government & scientists in India. In a recent conference “Fostering Innovation in Nanotechnology between EU & India” in March 2007, related issues were taken up and the government has decided to invest Rs.10 billion over the next five years to engineer an indigenous industry.

“Nanoscience is a vast ocean consisting of various focal areas. We have to find out strategic areas wherein our strengths lie and then figure out how nanotechnology can be used in those fields.” says Dr. Tata Narasinga Rao from International Advanced Research Centre for Powder Metallurgy & New Materials.

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Source : IIPM Editorial, 2007

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

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So what's there to actually rejoice over in an iPhone?

Illuminated Handbag 13,056 INR

IIPM MANAGEMENT INSTITUTE

If you thought it's a jellyfish, look closely. This supposedly very cool... er... hot bag is lit by LEDs (Light Emiting Diodes) and a tiny battery inside or direct current, if you please. It comes in various colours – Red, Blue, Black and Green and is supported through a “light emitting fabric.” Apparently, it can be very “elegant”, and will help you make a a spectacular entrance (read
a spectacle). If you've got it, fl ash it! ;-)

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Source : IIPM Editorial, 2007


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

To the moon & back

IIPM PUBLICATION

While the US regulators believe that the situation is under control, Robert Keiser, Vice President, Thomson Proprietary Research, correctly raises the question to B&E, “If we were not worried, why are we making such a big deal out of the up-tick to 13.33%?” Stephen S. Roach, Chief Economist, Morgan Stanley, goes further while sharing with B&E, “Too much attention is being focussed on damage to housing and mortgage markets. There’s a much bigger story. The US housing market is currently in a serious recession. The real debate is about ‘spillovers’ – whether the housing downturn will spread to the rest of the economy.” Keiser of Thomson too, believes the same, “The underlying risk remains... that subprime delinquencies have the capacity to spill over in the US economy at large.”

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Source : IIPM Editorial, 2007

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

Twirling Bush around in circles? Ask Cheney how...

MANAGEMENT GURU

Behind the shadows of ubiquitous George Bush’s presidency lies a man who has been instrumental in shaping the hard line ideological positioning of his administration. And this man – Dick Cheney, the elusive vice president of United States – remains an enigma. Allegedly the man behind the neo-conservative domestic and foreign policy, Cheney loves power and wields it happily. Yet, he has no aspirations to be the proud occupant of White House. The question then remains, is Cheney an ideologue who wants to steer the neoconservative agenda from behind? Or is he a hard core capitalist, whose ultimate aim is to convert power into profits? Does Cheney control the real reins of power and makes Bush dance to his beat?

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Source : IIPM Editorial, 2007

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

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...And New Frontiers Yet

MANAGEMENT GURU

With the Wal-Mart JV, Bharti has struck a hat-trick of ‘tying knots’, and that too with the best in the world. First it scored with EL Rothschild in 2004 to export agriproducts for US & Europe and second with AXA Group in 2005 to capture life insurance opportunities in the country. The logic, of course, is to leverage on complementary strengths.

The retail sector is expected to be a golden goose of $637 billion by 2015 from current level of $300 billion (According to KSA Technopak). Rajan Bharti Mittal confidently states that “retail will be the next big focus area for Bharti.” To give a pan-India network to its retail call, Bharti Enterprises plans to pump $2.5 billion by 2015. However, Bharti doesn’t enjoy the first mover advantage (unlike telecom). Tata, RIL, A. V. Birla Group et al have already scheduled retail as their next big foray. Political hurdles & rising concerns for mom & pop stores are also rankling for Bharti Retail, which is yet to germinate out of papers. The company plans to deploy a massive work force of 60,000 for its retail venture. But operational concerns such as manpower crunch (currently at all time high levels) & weak logistics mean that retail is fraught with not just tremendous promise, but also immense uncertainty.

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Source : IIPM Editorial, 2007

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

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Life’s death due to poor business!

MANAGEMENT GURU

Life magazine, published by Time Inc. was killed for the third and final time on March 26, 2007. The reasons are decline in the newspaper business and poor advertising predictions. In 1972, its weekly run ended, while in 2000, the monthly was taken off the stands. Life was known as the practical inventor of photo-journalism. When Time took over Life in 1936, it was known for good quality pictures and sold more than 13 million copies then. The title will live on a new website with photographs from its back catalogue.

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Source : IIPM Editorial, 2007

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

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The murder of magnanimity

MANAGEMENT GURU

One would remember that in March 2004, the US conveniently had blocked a UN resolution condemning the assassination of the Hamas founder and spiritual leader, Sheikh Ahmed Yassin, by Israel. One would also remember that in 2003, Bush had openly threatened the UN, with the boast, “Saddam Hussein is not disarming... Any attempt to drag the process on for months will be resisted by the United States.” Yes, he did go and attack Iraq without appropriate resolutions of UN. One could go on... Whether the Turks committed “genocide” (1915-17) or not, is a hot topic of debate even in the Western world. Countries like UK, USA and Israel refrain from addressing the killing of 1.5 million Armenians (for supporting the Russians) in the early part of 20th century as genocide. According to Harvard Political Review (Fall-Winter 2006-06), only France has condemned the insipid Article 301 of the Turkish penal code, which claims that it is a crime to “insult Turkishness,” and any suggestion that Armenian deaths were the result of something other than fighting between Armenian “rebels” and Ottoman “soldiers” would invite immediate conviction. More than 60 intellectuals have fallen victim to this law – Nobel Laureate Orhan Pamuk included.

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Source : IIPM Editorial, 2007

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

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Sick industries?? Who cares!

IIPM PUBLICATION

Summarily, the entire output of the economy is certainly going to affect everybody in a nutshell. In the past 2 years, since 2004, the inflation rate has increased from 3% to over 6%, raising the prices of almost everything. The reason given for this has been the increase in input cost in most of the manufacturing products.

While cutting down the existing heavy import duty on cement, steel and edible oil could have been feasible alternatives for the government, it has chosen a path that might hurt the economy in the long run for which they seem to care the least. The increased rates have shot up the returns on the fixed deposits for the politically sensitive middle class (the banks were quick to announce the higher returns), but for those that have availed loans on ‘floating rates’, sufferings might just have begun. Manmohan Singh isn’t a fool to not understand this, but he definitely has ‘political’ compulsions.

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Source : IIPM Editorial, 2007

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

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There’s a lot to be had if companies keep improvising and setting newer standards

IIPM BEST MBA INSTITUTE

It’s the age of total quality management, and the increasing usage of software support systems require the software manufacturing companies to comply with quality systems and here is where the Capability Maturity Model (CMM) certification issued by Software Engineering Institute (SEI-CMM) and which takes a holistic view of a software company’s quality systems including quality planning, assurance, control and quality improvement activities finds a presence. The SEI makes an exhaustive assessment of 18 process areas and 316 practices of the company that make it eligible for CMM certification and here’s a look at the world’s first CMM-Level V certified Wipro Technologies.

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Source : IIPM Editorial, 2007

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative

Written by India’s 25 Promising Newcomers!

IIPM PUBLICATION

The world croons over India’s consecutive sparkling growth rates, with some quarters even beating the double digit resistance. But the suasive and importunate factuality of it all is that this growth is not because of a unified coordinated governmental effort (that anyway has been commiserably absent for decades), but solely because of the momentous role of private entrepreneurship, due to whose efforts, India now stands at the cusp of a historic crossroads towards one day becoming a developed nation. And here, we present the benchmark 4Ps-ICMR research on the best 25 startups that have contributed their mighty mite to India Inc; this is the saga of India’s very best...

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Source : IIPM Editorial, 2007

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative

Run out of road be-fore you run out of fuel

IIPM BEST MBA INSTITUTE

Brand : Ford Fiesta
Headline : Run out of road be-fore you run out of fuel.
Baseline : Go Fida
Agency : JWT

4ps take : The oh-please-look-at-me visual shows us a red, hotlooking Ford Fiesta; this time, the visual points out, it’s the diesel variant. And what is it talking about? Fuel-efficiency, of course! The diesel variant of the Fiesta goes so easy on the fuel, that it’s been Branded Diet Diesel – it’s on a diet! The clinching benefit of the Brand is brought out by the communication that revolves around the USP of the product– the advanced Duratorq TDCi engine can give you 1,570 kilometres on a full tank, without a hitch. The reward to the prospect is the fact that these days when fuel prices are up and up, this beauty is not a gas guzzler! Quite something, right? So, just get into the Fiesta and head off for wherever: You have a feast of travel to do, while the car diets on diesel – how’s that for an arrangement?

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Source : IIPM Editorial, 2007

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative

A dash of celebs!

IIPM PUBLICATION
The article on celebrity branding in the branding section (refer to issue 24) was very well written. These days celebrities are there in all advertisements and we barely see models endorsing products. But the different point of view provided in the article as to the effect of ads on the image of the celebrity has not received much attention. This idea has been brought out very well and the views given by the ad gurus reflect their practical experience on the topic. I would like to congratulate 4Ps B&M, in a very short span of time it has managed to gain so much popularity. I wish the magazine all the best for the future!

Sandhya Garg, Lucknow

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Source : IIPM Editorial, 2007

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative