Friday, February 26, 2010

Obama’s concern over his remarks & speeches came true...

Obama’s erred this time by speaking his heart out spontaneously instead of speaking a well, politically-correct, pre-written speech. He just failed to translate his thoughts into politically correct language and is now paying the price for the same (at least, he has to bear the cost of brew party he held for the two!!). The biggest irony and hypocrisy get highlighted when one analyses the NBC/Wall Street Journal poll. The poll shows that 27% of Americans think that Professor Gates is more at fault for getting arrested than Crowley and 29% of respondents blame both Gates and Crowley. Thus, around half of US believe Gates was at fault and that too for the charges that were dropped the very next week! Welcome to US, the only country where people make fuss out of charges that do not last even for a week!! Even in the recent case, Prof. Gates was arrested for burglary or disorderly conduct but Cambridge state law clearly permits its people to the extent of shouting at police force for a valid reason.

Wrong judgements and hasty decisions by police force is not a new phenomenon, as the case may seem this time. Here goes few examples Amadou Diallo, an African immigrant, was shot dead (with around 41 bullets) by police officers who mistook his taking out of wallet for a gun. Similarly, Sean Bell was shot to death by NYPD by firing 50 shots. Same can be iterated about Omar Edwards and many more non-Whites of the US.

The customary approach of Whites on Blacks clearly makes the case against James Crowley. This prevailing attitude is what clearly makes the case for Dr. Louis Henry Gates too. President Obama is unquestionably right with his comment that Crowley allowed his ego and super-ego to get in the way. And this is not for the first time that Obama has expressed his concern on his remarks to be taken otherwise. Take for instance, the 100th anniversary of the NAACP’s founding. In his concluding words, “…I’ve noticed that when I talk about personal responsibility in the African American community, that gets highlighted…But then the whole other half of the speech, where I talked about government’s responsibility ... that somehow doesn’t make news.” After all, in a country like the US where people lose their trust on their Prez in just a year’s time, it is perhaps safer to speak prepared speeches. Better safe than suffer, isn’t it Prez?
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Source :
IIPM Editorial, 2009


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

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Outlook Magazine money editor quits
Don't trust the Indian Media!

Wednesday, February 24, 2010

“Consumers trust maruti”

Shinzo Nakanishi, MD, Maruti Suzuki

B&E: In your view, which all factors played a major role in empowering Maruti Suzuki to save the grace of its bottomline in the last fiscal when almost all the other automakers were on their knees?

SN: In times of a slowdown, people do not want to take any risk. They prefer purchasing brands on which they have full trust; and in the automotive market Maruti Suzuki comes on the top on those grounds. Moreover, we saw the slowdown coming in the urban areas of the country and we moved rather aggressively into the rural and the semi-urban market, which helped a lot to cope up with the slowdown.

B&E: Your expectations from the ‘new’ government?

SN: The previous government helped a lot to deal with the dull phase in the automotive market, be it the excise cut or petrol price going down; the government surely helped many players to sustain in the second half of 2008. If the government can again provide more help, everyone will be more than happy.

B&E: Honda & Mahindra have tried their hands in hybrids, is Maruti Suzuki planning a hybrid for India?

SN: If Maruti Suzuki will bring a hybrid in India it will be through Suzuki Motor Corporation, Japan. The current hybrid that Suzuki has is a big car, but they are working on developing a small hybrid for the Indian market. Apart from that, we’re working on a National Hybrid Project with the government to develop hybrids for the country in association with M&M and Tata Motors.

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Source :
IIPM Editorial, 2009


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

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Monday, February 22, 2010

ONGC has to still find a way to beat the oil volatility cycle without the help of subsidies

Sharma intends to use MRPL to consolidate into downstream marketing activities, and perhaps even beat IOC at its own game. In fact, the initial experience, Sharma says, has been good with MRPL’s marketing activities (MRPL has been able to achieve the optimum capacity utilisation of 130% last year and also registered its highest-ever turnover of Rs. 427.19 billion). The second pillar of the triangulate strategy utilises OVL (ONGC Videsh Ltd) another wholly owned subsidiary focusing on overseas acquisition of oil fields. OVL currently has 40 projects operating in 16 countries across the globe; Sharma intends further (“We intend to further strengthen OVL as the future growth vehicle of ONGC,” says Sharma). The final pillar in ONGC’s future thrust is the focus on domestic drilling. Apart from the 28 discoveries last year, ONGC is also working on developing India’s eastern cost discoveries in an integrated manner in three phases starting from this year itself. Twelve wells have been planned to be drilled in the first phase and more than 35 wells in the subsequent phases.

But irrespective of all this, the fact is that ONGC has to still find a way of beating the oil price volatility the true blue way instead of through government subsidies. For taxes and death can be permanent, government subsidies never will be... For now, ONGC remains our number one!
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IIPM Editorial, 2009


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

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Saturday, February 20, 2010

SELLING LUXURY TO A LAND OF SAVERS

The luxury car sector has taken several important learnings from the year 2009

2009 was expected to be a tumultuous year to say the least. The global financial system in 2008 experienced its worst crisis since a lot of us started our careers. Major financial institutions went under, while a significant number were bought up or survived only after substantial bailouts. That this was a global phenomenon made it even more worrisome. Global stock markets fell by over 50% as compared to last year and a severe liquidity & credit crunch was evident. Most developed countries were banking on emerging & developing markets like China, India, Brazil and Russia.

I have had the good fortune of being with a luxury car brand like Porsche for almost two decades now and being in a market like India during such times was a bonus. India is still a tiny contributor to Porsche’s global sales but the learning in India is at par with any global market. There are innumerable factors which contribute towards decision making when it comes to buying a luxury car, especially like ours, which, on an average, costs INR 1 Crore. In fact, it is the second most important decision after buying a home.

As many know, luxury car sales in India have been growing at a steady rate despite the slowdown. The two most important reasons, in my opinion, are the inherent financial prudence of India and a strong product strategy from luxury car manufacturers. Indian families and businesses are still not very dependent on credit – a habit that has stood them in good stead in these tough times. Domestic savings is a habit cultivated across social strata and people resort to credit as the last resort. This to my mind has been a crucial differentiator when it came to India’s recovery from the slowdown. India’s economy grew at an impressive 6% in 2009, coming down from the highs of 8-9% growth. Despite the liquidity crunch, large domestic savings and corporate earnings helped finance investment. Expansion plans slowed down but were not crippled due to lack of funds.The government played its part too and timely monetary and credit measures were introduced, which played a key role in improving private demand, liquidity and short-term rates and reducing the risk of loan losses.
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IIPM Editorial, 2009


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

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Friday, February 19, 2010

Time to talk about the green shoots of recovery

US is no longer the superpower that determines the fates of many economies quite as it did in the past

No one really notices small cracks in the mud on the earth’s surface. We walk past them, glancing over them, unsuspecting their importance. Until one day, these cracks cross paths and a much bigger, more dangerous hole forms a gaping pit in the earth’s belly.

This is the metaphorical landscape that we encountered over the past year that our generation will never forget. The economic system as we knew was shattered and every day the abyss seemed to get deeper and wider. The more we peered into it, the more news we heard, the worse it seemed. Many tried to guess its dimensions, to chart its elusive bottom, but it was unlike anything we had ever seen. From June ’08 to March ’09 the world’s major indicies suffered over 60% losses from their highs and many pensions, retirements, dreams, fortunes, savings and legacies were lost or hugely devalued. We know this – it’s history already.

But we live in a world where sentiments change as quickly as time, so as the year draws to an end I find myself pondering the questions: Where are we now? What happens next?

When I attended the World Economic Forum in Davos two years ago, the newest addition to economic lingo was ‘decoupling’ – the idea that developing economies could drive world economic growth to the extent that their dependence on the US was now relatively less significant. Its validity was debated in many a forum and formed a cornerstone for many an investment thesis. The theory seemed to indicate that if the global economy was a giant superhero, it had transformed from one with a single source of energy to one with several smaller and more efficient turbos that all contributed to its strength. Two years on and it seems the theory has had a stage on which to perform and be tested, and it seems to have held its own.

Whilst it is undeniable that the crisis was felt in every corner of the world, it is safe to say that some nations, those once completely dependent on the state of the American economy, have emerged less scathed. According to John Ross of the Shanghai Tao University, China has already this year surpassed the US as the world’s largest generator of investment capital with around $2 trillion versus America’s $1.4 trillion.

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Source :
IIPM Editorial, 2009


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

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Wednesday, February 17, 2010

Unity in diversity is what nehru had envisaged when psu townships were set up

NALCO runs two schools in the area: while in Saraswati Vidya Mandir, the medium of education is vernacular, the Delhi Public School imparts education via the CBSE pattern in English medium. “These schools provide education to both Nalconians and Non-Nalconians. The company does not discriminate on this line and the school fees are also very modest,” claims Anil Bhatt, Chief Manager, Public Relations & Periphery Development, NALCO, while elaborating on the company’s policy. As per the 2001census, the NALCO township has an average literacy rate of 73%, higher than the national average of 59.5%.

Nalconagar at Angul can also be called a mini India, as people from almost every state of the country live here. We found the secular texture of Indian society intact, as a temple, a mosque & a church are all built on the land provided by the company. People from all religions gather to celebrate each other’s festivals. Viswakarma Puja is regarded as the mass festival of the township; cutting across religion & regions, and employees congregate to celebrate this festival. Apart from this, Jagannath Rathyatra, Eid & Christmas are other important festivals of the township. “The company also provides funds to celebrate all these festivals,” says a senior executive of the company.

Though small in size, there is an all-in-one shopping complex in the township. A cooperative society of Nalco employees manages a departmental store also. Residents of this township depend upon this tiny shopping complex for their day-to-day needs. Recreational activities of the employees have been also taken care of. A mini stadium, a community centre and a sports complex signify this, as do many parks across the township. One can also find a symbolic recognition of the spirit of equality within the township as land & buildings have been allotted to three different worker unions and an officer’s association as well. In the recent past, these unions have vehemently opposed the central government’s proposal to privatise Nalco. However, the sight of old Fiat cars abandoned & dumped on streets in large numbers gives a startling, as well as discomfitting insight into the life of Nalco employees. We found 50-plus such cars and also noticed a number of Maruti 800s that have met the same fate as their Fiat predecessors! This reminded us of the allegations in a local daily, which stated that many company employees are grabbing monthly fuel allowance showing these vehicles as on road. The report alleged that employees buy such dilapidated vehicles for as low as Rs.10,000. If such misuse of government funds is true, it is a concern that most PSUs share.

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IIPM Editorial, 2009


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

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Tuesday, February 16, 2010

Single again…

Things seem beyond repair for Ameesha Patel and Kanav Puri, who recently broke up apparently due to Ameesha’s decision to give her career another shot! Kanav seems to be eager to tie the knot whereas our girl wants to give her failing career another try. Now that she has patched up with her parents and brother, and is reasonably emotionally secure, marriage seems to come last on her priority list. Kanav, on the contrary, had officially proposed marriage to her almost a year ago… Expected to return with two films this year, we hope it turns out to be a smart move for her career!
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IIPM Editorial, 2009


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

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Monday, February 15, 2010

What happened to Netaji

Experts contest ex-SC judge remark that monk was Bose

A retired Supreme Court judge, Justice Manoj Kumar Mukherjee’s, controversial remark on Netaji Subhas Chandra Bose has stirred up a hornet’s nest. Justice Mukherjee, who headed the one man commission instituted in 1999 to look into the controversy surrounding the reported death of Subhas Chandra Bose in 1945, told a documentary maker off the record that he firmly believed that the anonymous monk of Faizabad was Bose.

The interviewer Amlankushum Ghosh, who was interacting with the Justice for his documentary “Bose, Black Box of History” , recorded it and later aired it. Since then, Justice Mukherjee has been feeling embarrassed because in his report submitted in 2005 he had ruled out any possibility of the Gumnami Baba being Bose. Also, he had rejected the Taipei Plane Crash theory of Bose’s death.

“I have burnt my fingers and I am feeling humiliated. I can tell you, this is unethical and illegal too,” he told TSI. “I still stand by my report. What I told the documentary maker was my hunch,” he added.

Some members of Bose’s family are fiercely contesting his statement. Krishna Bose, former Trinamool Congress Member of Parliament (MP) and chief of the Netaji Research Bureau, said the calligraphic experts have rejected Gumnami Baba theory after careful examination of both of their handwritings. Even, DNA report of five Bose family members didn’t match up with the Baba.

Researcher Purabi Roy is incensed. After doing extensive research and travelling to the UK and Russia, she had revealed that Bose in his last days was confined at the concentration camp in Siberia during the Stalin era. Talking to TSI, she said: “I was not initially interested in this commission. It was the judge who requested me to depose. Gumnami Baba theory was discussed in details. But it was rejected after probe. Now, if a judge suddenly comes out announcing his ‘personal firm belief’ on such a sensitive issue which is related to the country’s pride and freedom movement, is simply unacceptable”.

Documentary maker Ghosh is not perturbed. Defending his action, he said: “It may be unethical, but considering what Justice Mukherjee told me is of national importance, I can’t accept this as mere private chat.” His film will be screened on February 18 in Kolkata.
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IIPM Editorial, 2009


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

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Friday, February 12, 2010

The grim reaper

An impoverished Uttar Pradesh farmer, pushed to the wall by corrupt officials and land sharks, wants to end his life. He has appealed to the President for permission. Anil Pandey reports

Chandan Singh Banjara’s story is one of never-ending struggle. The land mafia has been eyeing the western Uttar Pradesh farmer’s four-acre plot for 16 years. All he seeks is justice. The peasant is a defeated man today. He wants to end his life.

Running from pillar to post has taken its toll on his health – and morale. A resident of Yahiyapur village of Muzaffarnagar district, Banjara is burdened with a debt that runs into several thousand rupees. He does not have the means to pay up – what he earns is barely enough to feed a family of 11. To make matters worse, he has been handed an electricity bill of Rs 1 lakh. He is at his tether's end.

But suicide is a culpable offence. He attempted suicide several times in the past only to survive. After one such abortive bid in front of the district magistrate, he was jailed for 14 days. When the term ended, he refused to walk free. “I got two square meals a day in jail,” says Banjara. “Outside I had to go hungry more often than not.” The police physically carried him back to his village. Banjara is not taking any chances this time around. He has appealed to the President of India for permission for himself and his family to commit suicide.

Banjara's troubles began in 1985, when under a scheme started by the then government, he took Rs 10,000 as loan to dig a tube well. Within five years, he returned Rs 5700. Then, the Janata Dal government led by V.P. Singh announced a waiver of all agricultural loans below Rs 10,000. A government official demanded a bribe of Rs 2000 to put his name on the waiver list. Banjara refused to pay. Consequently, the officer did not put his name on the list.
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IIPM Editorial, 2009


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

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Thursday, February 11, 2010

A climate for fudging

As ipcc’s alarmist chief digs a hole for himself and his tribe and puts up a weak defence for his blunders, it is time for the world to put him in his place and salvage the credibility of the cause, writes Vikas Kumar

Rajendra K. Pachauri’s “Himalayan blunder” is showing no signs of melting away. If anything, it is snowballing into a major global fracas that threatens to put the credibility of the Inter-Governmental Panel on Climate Change (IPCC) that he heads under a cloud.

The 69-year-old chairman of the UN-mandated IPCC finds himself in the eye of a blizzard of controversies not only over the panel’s claim that Himalayan glaciers will be gone forever by the year 2035, but also due to his alleged conflicts of interest that stem from his direct and indirect association with many firms and institutions that have a stake in the burgeoning carbon credit market.

Since the glacier controversy erupted and the director-general of TERI admitted to “one mistake in a 1000-page report”, many more glaring errors of fact and deduction have tumbled out of the IPCC’s Fourth Assessment Report (4th AR), which had, in 2007, fetched Pachauri and his team of researchers a joint Nobel Prize alongside former US vice-president and one of the world’s best-known climate change warriors, Al Gore.

The roots of the current controversy can be traced back to last November, when Pachauri aggressively debunked a study by Dr V.K. Raina, one of India’s leading glaciologists. In a discussion paper, Dr Raina had questioned the IPCC’s alarmist conclusion on the rate of the melting of the Himalayan glaciers due to climate change.

The study authored by Dr Raina, ‘Himalayan Glaciers: A State-of-the-Art Review of Glacial Studies, Glacial Retreat and Climate Change’, took the position that “it might be premature to make a statement that the glaciers in the Himalayas are retreating abnormally because of climate change.” Dr Raina, a retired deputy director-general of the Geological Survey of India, asserted that there was no “scientific evidence” to link the retreating Himalayan glaciers to the phenomenon of climate change. Pachauri dismissed the report as “voodoo science”.

In his broadside against Dr Raina’s study, the IPCC chief said the glaciologist was out to “trivialise” science. Not only did Pachauri raise questions about the academic worth of the study, he also accused the Union minister of state for environment, Jairam Ramesh, who had supported Dr Raina’s conclusions, of being arrogant. “It can’t be on the basis of what two persons, the minister and one more person, think. It is going against the findings of the IPCC. It creates a sense of complacency that climate change is not for real,” Pachauri had scoffed.

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IIPM Editorial, 2009


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

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Wednesday, February 10, 2010

Re‘deeming’ the education system

TSI takes a sneak peek at union human resources development minister kapil sibal's attempts to shake up, restructure and reform the rotten education system of the country and lauds the attempt to correct whatever went wrong during the Arjun Singh era

“I want to walk ahead and give people a chance to correct themselves and where people are not willing to correct themselves or create problems then we will take action. At this point in time, I have not done anything that would ruffle any feathers.” That was Union Minister of Human Resources Development (HRD) in an exclusive interview with The Sunday Indian, a short while after he assumed office. Even during that interview, Kapil Sibal had no doubt that his vision and plan to shake up, restructure and reform the rotten and dysfunctional education system would ruffle many feathers.

He has now gone way beyond ruffling feathers; he has shown the red flag to vested interests who made merry like there is no tomorrow during the tenure of his predecessor Arjun Singh. By the time UPA-1 was coming to an end, Arjun Singh had become famous (or notorious) as the ‘deemed’ university man. The later part of his tenure saw ‘deemed university’ status being doled out indiscriminately to all and sundry. It was an open secret even then the manner in which the status was doled out was mysterious and suspicious, to say the least. Now, Kapil Sibal has initiated steps that confirm the worst fears; most of those ‘deemed’ universities had no business to be called universities in the first place. As front paged by most papers, Sibal’s ministry has forwarded a report to the Supreme Court which says that 44 of the deemed universities must lose their status. This raises serious doubts over the functioning of the so called regulatory body Universities Grants Commission.

The rot in another higher education regulatory body was-in fact-exposed by Sibal soon after he took charge in 2009. As written in an exclusive cover story in The Sunday Indian, the promoter of an institute near Delhi was so harassed by officials at AICTE that he even approached Rahul Gandhi in desperation. It was Sibal who gave a green light for a quiet CBI investigation that led to the arrests of many top AICTE officials.

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IIPM Editorial, 2009


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

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Friday, February 05, 2010

“Washington echo chambers,”

Consider the findings of the Council of Economic Advisers (headed by Christina Romer, Austan Goolsbee and Cecilia Rouse) which states in its First Quarterly Report that as of August 2009 end, only $151.4 billion of the original $787 billion has been outlaid or has gone to the American taxpayers and businesses in the form of tax reductions. Just to add to these, the US Bureau of Labour Statistics now states that ever since Obama passed the $787 billion stimulus bill in February 2009, instead of job creation, over 2.6 million Americans have lost jobs.

Capitol Hill has had a history of political appointments where fundraisers have been made members of namesake advisory boards without having much of a role. But with Obama, whose campaign mantra was based on the philosophy of change, one expected better; ergo, such political appointments came as an unpleasant surprise. Since the previous issues, B&E has been covering how there is a clear conflict of interest that some members of TEAB have had in gaining from TEAB’s bailout plans (for examples, Buffet through his investments in Goldman Sachs before it got government funds, Robert Rupin through Citigroup of which he is the Chairman).

Perhaps to his discredit, it is not only Barack’s political appointments on economic advisory boards which is being criticised, but also the manner in which the current allotment of funds is being made – the states that supported him have received generous allotments of stimulus money e.g. Colorado and Virginia (two traditionally red states that lit up blue for Obama in 2008) have jointly received $8.9 billion – for information, Barack Obama, in his victory speech, had said, “We have never been just a collection of individuals or a collection of red states and blue states. We are, and always will be, the United States of America.”

Perhaps the President has realised his folly, due to which a parallel running body, Presidential Economic Recovery Advisory Board (PERAB) headed by Paul Volcker has been strangely created – or perhaps not so strangely. But it is merely a step, as four of the members of TEAB are members of PERAB too, excluding Paul Volcker. This has prevented the wisdom of the likes of Volcker from trickling down to action.

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IIPM Editorial, 2009


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

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Tuesday, February 02, 2010

Wechsler’s theory!

DO EVENTS LIKE AMAZE (IIPM’S ANNUAL FESTIVAL) OR CARPE-DIEM (IIM CALCUTTA’S CULTURAL FESTIVAL) REALLY HELP IN CHURNING OUT A “BETTER” MANAGER? B&E’S ANGSHUMAN PAUL MEETS INDUSTRY LEADERS FOR ANSWERS...

1940 was the year when American psychologist David Wechsler wrote a few gritty and slimly noticed papers in which he narrated his research into behavioural patterns of humans. Wechsler argued that human “intelligent behaviour” was actually dependent on factors that were not necessarily connected with how “intelligent” humans actually were. Considered quite a paradoxical finding, nobody in that era would have imagined that Wechsler’s work would go on to lay the foundations of an area of behavioural science that has gained and occupied a position of maximum importance in the way B-school graduates are chiselled. And that area is ‘emotional intelligence’. To that effect, B-schools of the modern era realised the importance of ensuring that events that were not of a purely academic nature, were introduced into the curriculum of students. And the leading exponent of this kind of an exercise over the years has been the concept of B-school festivals.

But EQ apart, do B-school festivals really add to a future manager’s managerial skills? One example is the 2009 edition of The Indian Institute of Planning and Management’s (IIPM) annual B-school festival – Amaze (The event was held in IIPM’s international campus at Satbari, New Delhi from November 4 to 7, 2009) that saw the presence of CEOs and top dignitaries not only from the corporate sector, but even from the social sector. A senior member of the organizing committee of Amaze, Alpi Jain, argues that such B-school festivals are necessary as the inseparability of managing a business and of managing people is more thoughtfully and aptly reflected in such festivals, than in classroom learning. Does that mean that we were wrong all along depending simply on classic case studies?

“Absolutely,” answers JP Singh, the former CEO of Bausch & Lomb, “I think there are many things which books can’t teach you and you learn them only when you participate in events like business school festivals.

When you participate in such events, you learn lessons like people management and even how to flow/manage a project!” JP Singh would know well; he is a pass out from IIM Calcutta whose annual festival, Carpe Diem, actually had its budget increased from Rs.10 lakhs to Rs. 15 lakhs this year. JP Singh says that the practical knowledge he gained from his B-school’s festival contributed significantly to his knowledge pool, especially while he set up his own business. Today’s business school ‘fests’ comprise a wide array of competitions including events that test problem solving skills to the hilt, both intellectual (say, debate competitions) and nonintellectual (say, fashion shows). But innovation is the key word. Shah Rukh Khan hosted this year’s most attended IIPM-4Ps B&M quiz competition at New Delhi, an event that saw participation from B-schools across continents (America, Europe, South Asia). MDI Gurgaon came out this year with an international online B-school festival – E-Blast – where students competed in the ‘E-business’ world. Harvard Business School has even become a “cultural partner” of the Starz Denver Film Festival in Colorado!

Amit Burman, Vice Chairman of Dabur India Ltd and an MBA from the Cambridge University, tells B&E, “In Cambridge, there were always some events happening; and my participation in them helped me a lot to control the initial challenges that I faced after joining our family business.” Vikram Tanwar, a top faculty at IIPM Bangalore, adds another viewpoint, “Apart from the individual learning, the fact is that a cultural festival brings together faculties, industry experts and students from other institutes under one umbrella at an informal level – such informal interactions are very much necessary for the growth of the students and their future networking.” Agrees Govind Shrikhande – Customer Care Associate, President & CEO, Shopper’s Stop Limited, “It’s true that B-school festivals bring together students and industry experts in a sharing of knowledge mode and are extremely important to the students’ overall growth.”
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IIPM Editorial, 2009


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

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Monday, February 01, 2010

Making hay while the sun shines!

Global slowdown coupled with terror attacks & swine flue had marred travel agencies in the year bygone. But with green shoots of recovery showing up, the smile is back on a travel agent’s face, says neha saraiya

Sanjay Datta, a Delhi-based travel agent (who has been running his travel agency under the name of Airborne Travels since 1983), can be seen in his office, located at Defence Colony, even before 9 in the morning these days. This, in fact, is in sharp contrast to the schedule that he had been following regularly for over a year and half now (reaching his office not before 12 noon).

Well, the reason for his punctuality is not that he has suddenly realised the importance of being early in office. In fact, it is a more obvious one than that, business is back on the upswing in the Indian hospitality industry after a long lull. That is evident when you see how he is now selling over 50 tickets on a single day these days against the miniscule number of 15-20 tickets that he could hardly manage a year back.

No doubt, the past two years have been exigent for the travel and tourism industry in India. Global economic slowdown, fall in premium traffic, mounting fuel surcharges, et al, have affected the travel agents’ businesses in India in a big way. In fact, as per the latest data from the Ministry of Tourism, tourist arrivals in India have gone down by an alarming 16.6% and 12.9% (year-on-year basis) in January and March 2009 respectively. “Last year our revenues had fallen drastically, as much as by 60-70% equalising with the passenger drop of 30%,” agrees Datta.

Not only domestic travel agencies, but even international travel agents are in the same boat. As Magdi Mohamed, Operation Manager, Eastmar Tours & Holidays (a Dubai-based travel agency) puts his case forward, “In the beginning, travel agencies like us used to close around 80,000 files in a year for Egypt. But last year, that number fell by 20-40%.”

However, with the market pulse belatedly getting back to normal in the last six months, travel agents across the country have finally started breathing a sigh of relief. In fact, as per a recent report by Travelport GDS, Indian travel agents were successful in converting more than 78% of enquiries into actual sales and generated more revenue from recreational travel (58%) than business travel (42%), out of which 74% came from repeat travel.

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Source :
IIPM Editorial, 2009


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

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