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Long after a  lot of harm had been done by this group of minerals with magnesium silicate fibres called asbestos, did medical practitioners realise that working around this mineral and inhalation of its fibres can cause acute diseases and disorders. These invisible fibres are airborne and low levels of it are present in the environment all the time. A press release by World Health Organization (WHO) in late April 2007 estimates that around 90,000 persons die annually because of asbestos. Shockingly, the impact of asbestos inhaled now, shows up years later.

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Things don’t look too good for World Bank President Paul Wolfowitz. If you remember Wolfowitz has been in a mess ever since it was discovered that he organised a promotion and a hefty pay raise for his girlfriend Shaha Riza three months after he took over the bank in June 2005. An investigating panel that is looking into the matter now says that this could cost him his job since he put his own interest above the bank’s and violated ethics. A detailed 52-page report that the panel has come out with recently squarely puts the blame on Wolfowitz for setting off a “crisis in the leadership”. Although the panel (comprising of seven World Bank directors) has not said anything conclusively, the signals seem pretty clear. So, what’s gonna happen to Wolfowitz? Wait and watch.

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Source : IIPM Editorial, 2007  

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

PCs have breached the $100 barrier

When Oracle’s founder Larry Ellison had mooted the idea of a low-cost computer in 1990, no one could have imagined that the practical feasibility of the idea would come from the Indian mainland. Making Ellison’s dream a reality is Novatium Solutions, a Chennai based IT firm, which has successfully launched a sub $100 Net PC. Though the Net PC looks like any other normal computer, it is its functionality that has allowed the company to significantly bring down the overall cost.

For the uninitiated, this computer works on the thin client concept under which it is linked to a central server, which hosts all the required applications. To further add to the savings of the consumers, Novatium offers them a subscription package of Rs.400. This package allows the users to connect to the internet through Linux or Windows (internet edition), run educational packages and other productivity applications and also download the content, which is then stored on the server. According to Alok Singh, CEO, Novatium Solutions, “We are providing a One Window Solution to our customers along with values like affordability, simplicity & freedom.” Owing to the success of its pilot project, the company is already targeting 5 million PC users in India in the next fi ve years. 

However, the competition is also slowly awakening to the concept of low-cost PCs in India. Global PC giant Dell also announced on May 10 that it would soon be launching computers worth Rs.10, 000 in the Indian market. Not only this, companies like Lenovo, Intel and AMD are also trying very hard to manufacture a $100 PC themselves, so a new round of price wars can be expected to be unleashed. With computer prices moving further southwards, the PC revolution in India is beginning to now gather some real momentum. And the digital divide should now get weaker...

B&E edit bureau: Devdeep Singh

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Source : IIPM Editorial, 2007 

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

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That’s what the “Internet” is being called today. A select-and-send is all you need to do to buy things today. The whole music industry is changing. The internet has made music available at the click of a mouse. Youngsters are hardly buying CDs and music cassettes – it’s all there on the internet now.

The favourite shopping destination seems to be fast becoming the internet. No wonder Air Deccan decided to tie-up with Reliance Webworld to make air-tickets more accessible. Now, all you need to do is log on to the website, buy a ticket online, take a printout and fly. According to Sachin Bhatia, Co-Founder and Chief Marketing Officer, Makemytrip.com, approximately 10,000 air tickets for domestic travel are being sold online every day!

Not just plane tickets, movie tickets are also available online. Log on to the PVR website, choose your movie, your show timing and even where you want to sit!

Banks are using the internet to increase both their business and customer satisfaction. Day or night, you can get your queries answered, you can check your account and do a whole lot of other transactions – all thanks to the net. The customer is looking for convenience and instant gratification and if companies can work out innovative and unique strategies to make their product reach out and be visible to the consumer, their sales are bound to increase.

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Source : IIPM Editorial, 2007 

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

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Expat CEOs are already a reality within many sectors in the Indian economy. With the media sector exploding and foreign direct investment coming in droves, it was just a matter of time before Non-Resident Indians (NRIs), and even foreigners, made a beeline for jobs on offer here. The newspaper industry is attracting talent from all over the world now. With all this happening, the Ministry of Information & Broadcasting has amended a requirement, that of obtaining clearance from I&B before employing any foreigner or NRI. So soon, media companies will be able to appoint foreigners and Non-Resident Indians (NRIs) at senior editorial and management positions without any prior permission from the government! However, clearances are still required and will have to be obtained, the difference being that foreigners or NRIs can be in employment of the said company while the process of obtaining clearances are on. Earlier the clearance had to be sought much before the person could be finally appointed.

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Source : IIPM Editorial, 2007 

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

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She was spotted at the Millennium Dance Studio lately, flaunting her taut body and flat abs in a denim mini and a short, pink blouse. And it’s none other than, hold your breath, Britney Spears! The last we caught her, she was all blotchy and bloated and an easy size-14 but she’s been working hard, is already a size 10 and is planning to fit into size-6 outfits real soon! And while K-Fed was partying with pal, Paris, Britney left no stone unturned in partying harder, and showing off both – her body and bliss – to the hilt(on)!!

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Source : IIPM Editorial, 2007 

An IIPM and Professor Arindam Chaudhuri Initiative 

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The automotive sector is one of the most critical sectors that thrive on oil, and is also the largest contributor to carbon emissions; 30.7% of all emissions come from here. While hybrid fuels are gaining in popularity for cars, nuclear energy is being considered the fuel of the future. In the US, (the world’s largest producer of nuclear energy), this resource supplements 20% of the country’s needs. US Government’s Energy Information Administration has revised nuclear capacity to 100,125 MW from 99,988 MW for 2006. Various studies have concluded that it can be incorporated in the auto segment as well. Just like the Delorean from Back to the Future, scientists believe that one day humans might be able to contain the nuclear fusion reaction and use it in automobiles.

Hydrogen fuel cells could be another interesting alternative. It is worth noting that the only by-product of a hydrogen powered actuator is water, no matter what fuel we use! Research is on to make the fuel cell a more feasible energy source. 

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Source : IIPM Editorial, 2007 

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

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French hospitality group, Accor has done away with its Red Roof Inn motel chain for $1.32 billion. At the receiving end is a consortium, comprising Citi’s Global Special Situations Group and Westbridge Hospitality Fund. Following the divestment, Accor owns a single brand, Motel 6, the leading economy hotel chain in the States, which operates 928 hotels across North America, especially on the West Coast. With an illustrious history of 30 years, the chain enjoys very high brand recognition and a unique positioning which says, “the best price of any national chain.” 

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Source : IIPM Editorial, 2007 

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

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It’s easy to prove the class and charisma of a bike by driving along smooth or curvy roads or even a dangerous mountainous terrain, but displaying a bike’s power by negotiating traffic on a road visibly packed with vehicles, is a rather special skill and ad stalwarts like Abhijit Avasthi, Farouk Al Joffery, Rajneesh Ramakrishnan, Samir Sojwal, Albert Pereira, Alok Kalra, et al, have emerged with flyinmg colours. The team made use of hand held cameras, making the stunts look surreal. “The reaction of the banana vendor when the bike flies overhead was real, because he was unaware of the stunt and his reactions were authentic,” offered Avasthi, while sharing shooting tit-bits. 

After its 150cc and 180cc variants, Bajaj Pulsar has upped the power meter to 200cc with this one, as it takes on Hero Honda and its Karizma–a 223cc bike (see related story in marketers@war). So, the next time you want to sizzle on roads heavy with traffic, you don’t have to look far… this power packed ad has set pulses racing for a power packed ride... 

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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 shipping business too saw a massive downturn post 9/11, hitting the group where it hurt. All this meant that the Ruias simply ran out of money to implement their most ambitious project – the petroleum refinery in Gujarat, not too far away from where the elder Dhirubhai son, Mukesh Ambani, is building the second largest refinery in the world. With default, bankruptcy, ruin and humiliation looming large, it was time for young team members of Jesudasan of Reliance to smirk and flash ‘I told you so’ smiles, while it was time for the Ruias to hunker down like wounded warriors. Many analysts even wrote epitaphs of the Group, making the rise and fall of the Essar Group as a case study on how not to act too aggressively or act too ambitious.

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Source : IIPM Editorial, 2007 

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

Even as our interaction with the 55-year-old concluded, the debonair confectionery connoisseur gave us memoirs which would remain forever, reminiscent of the sensations that each of us would have experienced at one time or the other, while relishing chocolates or confectioneries. They plainly call it sinful indulgence, but after all ‘to sin is eventually human’ and here it’s just the charming Mr. Lenny who dons the smiling devil horns. Ready for some kisses? Oops… we meant Hershey’s Kisses

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Source : IIPM Editorial, 2007 

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

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...of global software is in India!

One would think that no one would like to sport a fake painting, brand or would like to have stolen food, or use pirated computer soft ware and movies. Well, the ‘one’ who thinks like that in India, seems to be amusingly just one, as millions seem to be thinking otherwise. According to International Data Corporation (IDC), India accounts for 75% of the global piracy market and is now rated amongst the top pirating countries. IDC claims that there could be 1,150,000 new job openings with even 10% decrease in piracy. They estimate that with every 10% decrease in piracy, almost $15 billion additional revenues and $386 million as tax revenues could be pumped in.

Great words, greater numbers, but try saying that to the ‘pirates’ and to the buyers of such pirated products. Unless the government supports soft ware corporations and movie houses in making high profile arrests under clear media glare, and unless the judiciary ensures that the fines and the prison sentences are prohibitively high, piracy will be as common as jumping a red light in the lovely roads of Delhi and giving bribes to traffic police... Well, that’s another story!

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Source : IIPM Editorial, 2007

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

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Over the past two months, this storm around subprime mortgages has led to a free fall in stock prices of any company that has even the slightest perceived exposure to the sub-prime world. The ABX Index, which is a basket of 20 BBBminus subprime bonds, has plummeted more than 30% since January 2007. More than 30 major subprime lenders have shut their shops since late 2006 due to rising payment defaults. Early April saw both Bloomberg and S&P separately confirming rising defaults in auto loans.

The way for US regulators now is extremely tough, but quite necessary. Rather than focussing on encouraging subprime lenders to give lower interest rate loans, regulators must unequivocally ban any further issue of subprime and Alt-A loans, at the same time, limiting the terrible damage that is being caused by cascading loan payment defaults across sectors – for a bad debt at whatever interest rate remains, what it always intended to be... a bad debt!

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Source : IIPM Editorial, 2007 

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

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Thailand is witnessing political turmoil since May 2006 when the caretaker Prime Minister Thaksin Shinawatra was declared unconstitutional by a bench of Judges. It was followed by a coup. Since then, the military led by General Sonthi Boonyaratglin has, repeatedly promising to hold free & fair elections and restore democracy. In the past, elections in Thailand have been marred by incidences such as rigging and ‘vote-buying’. Therefore, in order to make the elections free and fair, EC is planning to introduce Electronic Voting Machines (EVM) for the first time. Apart from that, international monitors will be brought in to check other prevalent irregularities. 

The latest move has been welcomed by international community, as agrees Vijay Sakhuja, a Fellow at the International Institute for Strategic Studies, Singapore, to B&E, "Restoration of democracy and political stability in the corruption-ridden nation has become a quintessential requirement for stability & progress". Indeed, it's time that military Junta should work like car mechanics who come to fix broken cars and once when their job is done they hand-over the steering wheel to the real owner.

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Source : IIPM Editorial, 2007 

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

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In the land of oil and Sheikhs, Indian mutual funds (operating in the Gulf region) stole the show at the Lipper Fund Award Gulf 2007 (by global fund tracker Lipper Inc.) and won as many as 22 awards. ADAG's Reliance MF bagged maximum number of awards across six categories while Franklin Templeton got five awards and was also awarded the best fund house amongst all mutual fund companies doing business in Gulf. Moreover, HDFC & UTI were facilitated with three awards each and DSP Merrill Lynch and Birla Sunlife MF had to be content with two each. HDFC was selected as best company in the mixed-assets categories in terms of threeyear returns while ICICI Prudential could manage to grab only one. 

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Source : IIPM Editorial, 2007 

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

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In the whole number game, some wonder, what about the human factor then? Well, so far as the employees are productive, the human factor remains. “I’m afraid that the obsession with quantifying employees in terms of performance metrics and skills development might lead to that attitude,” expresses Vivek Patwardhan, VP (HR) of Asian Paints.

But, the true branding of HR, or even an organisation is based on the people a company employees. As they say, the true ambassadors of a company are its employees and customers. Vivek agrees when he says, “A company must invest in creating a DNA which is reflected in every employee. Then a company can proudly say ‘mera wala employee’.” Well, as management gurus speak of value; and when value is expressed in numbers, it’s time for HR gurus to follow suit too, of course, with that human factor included. So if you were looking out for a means to delivering (measurable) high performance, you know what to do! 

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Source : IIPM Editorial, 2007 

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative 

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The world survived 2006 without a major economic catastrophe, despite sky-high oil prices and a Middle East spiraling out of control. But the year produced abundant lessons for the global economy, as well as warning signs concerning its future performance.

Unsurprisingly, 2006 brought another resounding rejection of fundamentalist neo-liberal policies, this time by voters in Nicaragua and Ecuador. Meanwhile, in neighboring Venezuela, Hugo Chávez won overwhelming electoral support: at least he had brought some education and healthcare to the poor barrios, which previously had received little of the benefits of the country’s enormous oil wealth. Perhaps most importantly for the world, voters in the United States gave a vote of no confidence to President George W. Bush, who will now be held in check by a Democratic Congress.

When Bush assumed the presidency in 2001, many hoped that he would govern competently from the centre. More pessimistic critics consoled themselves by questioning how much harm a president can do in a few years. We now know the answer: a great deal.  

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Source : IIPM Editorial, 2007

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative

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