KING JIGME KHESAR NAMGYAL WANGCHUCK - The royal guard
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KING JIGME KHESAR NAMGYAL WANGCHUCK
The royal guard
Situated
in the lap of Himalayas is the serene and picturesque Kingdom of Bhutan. But don’t be shocked if you hear that just until two years ago this exotic and benign country was under the staunch protectionist rule of King Jigme Singye Wangchuck. But then came the welcome change, of his passing on the baton to his son, Crown Prince Jigme Khesar Namgyal Wangchuck on December 9, 2006. At 27, he became one of the world’s youngest kings. The fresh blood of Khesar brought fresh ideologies to the Kingdom. Clearly, the stepping down was the first step in the long-overdue process of the Bhutanese king’s top-down devolution of power and democratizing the country. At the time of handing over the reins, old king said, “I am confident that a very bright future lies ahead for Bhutan with the leadership of a new King and a democratic system of government that is best suited for our country as enshrined under the Constitution. I have every confidence that there will be unprecedented progress and prosperity for our nation in the reign of our fifth King.”True to his words, the fifth Druk Gyalpo quietened his worst critics by ushering in constitutional democracy in the country on March 25, this year; a move which has been applauded by India – the world’s largest democracy. But the Maoist insurgents in Nepal and in the north-eastern part of India were not too happy with this epochal event in this tiny nation, as Bhutan had joined hands with India to curb their acts in the Bhutanese jungles. Now, any hope that these insurgents had of re-starting their operations has been totally foiled.
So where is his contribution to making these coming decades an Indian one? Well, India also plays a key role in Bhutan’s economic development. Close to 90% of Bhutan’s total imports are from India, while exports to India amount to 95% of its total. Surprisingly India, which does not have much of a cordial relation with its neighbouring countries – Pakistan, Nepal, Sri Lanka, Bangladesh – has found an unlikely ally in this tiny Himalayan nation. And now it is up to the young king to make it count in the name of ‘Symbiotic’ advantage.
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An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
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Even the growing economic and social development could be ruined in seconds just because of internal and external threat. With Indian facing various external threats from global terrorist organisation and various internal threats from naxalites, riots et al, it very important not only to secure national border but also the internal borders.
As per the CAG report 2008 for defense service, only 25% of the project work has been completed so far, which was slated to be completed in 2005 and what’s worse the main component of projects i.e. construction of core technical buildings, the procurement of plant and machinery has still not started. In order to let defense work in the most effective way, the project executor must complete at least 75% of the project by year-end. Moreover, the Indian army is facing a shortage of 11,238 officers, while the Indian Air Force is short of 1,565 officers and the navy is short of 1,461 officers. In order to bridge this gap, its important to reduce the shortfall by 75% by the year-end. There should be more of defense training at school and college level. The current strength of the Indian army should be reduced from its current level of 1,414,000 to that of 750000 highly specialised army personnel. These specialised soldiers should be laced with latest equipment, technology and fighting skills. Even the paramilitary force should be reduced to 750000 from 1,089,700 highly specialised personnel with similar advance technology and skills. In order to secure the costal border, Indian navy needs to have 75 warships loaded with latest technology and all fighting equipment. Even countries like China and Pakistan may turn out to be a very big threat in the near future, in order to be prepared for such threats the AirForce should be provided with 75 squadron combat aircraft. All the specialised force should be laced with hi-tech artilleries
For coping up with the internal disturbances, there is need to empower the police officials with latest methods of fighting and latest artilleries. The recent advancement in technology had undoubtedly complicated the style of warfare. The Indian defense force requires a ‘unified battle space’ with extensive exploitation of IT and cyber security along with space based and terrestrial surveillance systems.
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Tata
AIG Life, a joint venture between two behemoths, seeks to provide a brand new look at life by combining pre-eminent leadership position of Tata Group (one of the most respected business conglomerates in India) and AIG’s global presence as a leading insurance and financial services giant. It has been its constant endeavour to let best global practices and presence in every product category reach Indian populace. Commenting on its strategy & philosophy, Philip Hayman, Chief Agency Officer, Tata AIG Life Insurance Co. Ltd. told 4Ps B&M, “We are diligently working towards educating the masses about life insurance and its relevance. We firmly believe that reaching out to people and educating them about the need for insurance will bear fruits in the long run. Our aim is to introduce innovative products and services to meet their needs.” The company also believes that it’s wiser to launch a need-based product rather than duplicating products already available in the market. With micro-insurance (MI) products forming over 65% of its rural offerings, the company plans to have one million MI clients over next five years. Surely, this giant is looking to tread on paths unexplored, but with promises abound. For more articles, Click on IIPM Article.
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An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
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While low-cost 
housing remains a priority for the group, convinced that the organized retail opportunity in India is waiting to be harnessed, the elder Wadia sibling Ness is trying to gain maximum square footage in malls, as also high street square footage. Recently, Britannia also acquired a stake in Bangalore-based Daily Bread, a speciality manufacturer and retailer of premium bakery products, giving it an entry in the organized food retailing mart. Plus, thanks to Bombay Dyeing and Britannia, the group already boasts a vast and effective distribution network. Although a tad too late, they are now planning to capitalise on this strength, using the ready retail pipeline to pump down more products. Efforts are on to rope in big-ticket international brands like Gucci; with the additional possibility of encompassing all retail formats, including hyper markets. However, challenges like manpower crunch and product sourcing may play spoilsport if not dealt with effectively.
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Cement, aviation & real estate are the sectors prone to collusion
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Two 
different companies, fighting for the same contract in the same markets, without realising that all the companies are being owned by same guy – Rockefeller. Rockefeller and Standard Oil are no more but there legacy lives on. Because of the strong oil lobby, the US hasn’t sign Kyoto Protocol, as some leading oil companies are opponent to anti-global warming measures. It is because of the oil lobby, alternate energy sources find it difficult to setup shops in the US. Alternatively, the US had to, a sort of, seek polito-economic pressure to get the industry going outside the US, like the civilian nuclear deal, which calls for establishment of shops for American companies that are into alternate power generations in India. When you have the size that matters, you influence decision in the sector, you dictate prices, you dominate, you are all pervasive.
et’s meet another Rockefeller of modern times – Martin Sorrell of WPP. One of the largest communications services group of the world, WPP owns names like JWT Group Inc., Ogilvy & Mather, Young & Rubicam, the public relations firm Hill and Knowlton Inc., and information and consultancy firm, the Kantar Group. Martin Sorrell now owns more than 50% of the total advertising industry. Different firms owned by Mr. Sorrell compete for the accounts of companies – again creating pseudo competition, without making it evident to the markets that both, contracts and money are going to the same man – Sorrell. For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2007An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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Unlike the emotional garbage that we are witnessing in India, policy makers and strategists in other major powers are actually praying that India becomes another big player in a multi polar world where the United States can no longer dictate terms to all and sundry and behave like a school bully as and when its wants to. “Russia and France are countries who are very keen to ensure that the world is multipolar and not dominated by the US. They are keen on India completing this process and becoming a part of the wider nonproliferation regime and play the role of a balancer of power in Asia and the world. If these moves were only about India and the US, why should Russia and France be so interested in India concluding IAEA safeguards agreement and obtaining the NSG waiver,” says well known strategic affairs writer and commentator K. Subrahmanyam. Without any doubt, the events of the past few years (particularly the insane invasion and destruction of Iraq by the United States) have compelled major nations like Russia, France and Germany to think of ways and means of stopping America from behaving like a bull in a China shop. For them, China is as much of a strategic menace that the United States currently is. For them, India is a natural player that can act as a‘balancing power’.
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Though executives at
Intel India were very buoyant about the technologies adopted by them and their future prospects, all the departments have an underlined theme of internal competition. The basic idea is which department will be the one to give the next big blockbuster contribution to Intel’s global portfolio with a revolutionary technology. As Sandeep Shah, Director of Mobility Group reveals to B&E, “There are such mission critical products out here, we want to continue the stuff we’re giving out to Intel global as it takes just one bad product to spoil it all.” Rahul Bedi puts up India’s case, arguing that few companies today have each of their business units at one location, which makes Intel India a microcosm of Intel global. He states, “We’re the largest technology company in the world, which works on extremely complex technologies, and a very large part of the complex base is developed from India. And one thing that Intel believes in is scale. Anything we do, we do it if it scales.”
Intel India has also engaged deeply into CSR. “Our primary focus of the program has and continues to be the next billion users and what we realised is that the next billion users are quite different from the first billion users,” says Rahul. Intel had launched its World Ahead Program to facilitate education initiatives all around the world. Barrett says, “Through the World Ahead Program, we remain focused on accelerating access to technology, improving education & increasing Internet connectivity.” The company also launched its rugged Classmate PC for emerging markets to promote education amongst children. Asked about Intel India’s goal for the next five years and Rahul expertly clubs the social initiatives to the corporate goals, “We have to make more and more technologically innovative products through R&D. Also, do all these things in a socially relevant manner. In the long haul, the socially relevant products derisk the business… We don’t write cheques (only). We give help in a sustainable way.” To this Sandeep adds, “We see double digit growth in India, that’s where we see the need for our presence here and make products specifically for this market.” Another common belief that runs across Intel India is that it’s not the number, but the quality of people which ultimately build a great organisation.Then there is the larger battle between the different Intel country units. Praveen elaborates how the India team has to give Intel a new innovation, just like the team at Israel gave them the dual core technology after 25 odd years. While the Indian market will be firmly on Intel’s radar no matter what, the Intel India centre faces this stiff challenge of providing a new technology on its own to the parent company, which, officials say, would be possible in another 3-4 years. Surely this ‘microcosm’ of Intel global would not want to be missing out on that target set by the parent company, which could give you an inkling of the hidden chaos that would exist behind the uneasy calm we had come across when we first entered the Intel India office that morning. It’s survival of the fittest as always, and the India team would always want to keep that in mind.
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Courtney to quit courting cigarettes!
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Some 
things you love just aren’t good for you, that’s why Courtney’s been told to quit her long-time habit of smoking. Apparently, after the doc discovered nodules in her throat, the 42-year-old singer was told she would have to give up singing if she continued to smoke. Along with saying good bye to cigarettes, Courtney’s also preparing to kiss away her ‘slim phase’, for she’s already expecting to gain excess baggage once she quits. Don’t worry Love, you’ll Live Through This. 
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Turm Oil
is the bigger nightmare that confronts George Bush, Manmohan Singh and Tony Blair? Is it the cascading wave of terror, with London added to the gory books of death? Or is it the spectre of oil shortages bringing the engine of economic growth to a grinding halt? The truth is: energy security and terror have become inextricably enmeshed with each other As Blair and Bush fi ght the demons of terror, Manmohan Singh needs to keep an eye on a deal that is rocking Washington: China under Hu Jintao has just upped the ante in the Great Game. China National Oil has made a $18.5 billion ‘hostile’ bid to take over Texas based Unocal; $2 billion more than what American oil giant Chevron wants to pay. Predictably, this has set the cat among the pigeons in Washington, with far right lobbies spewing venom at China’s ‘cheek’ and perfidy.
Can Singh convince Washington to let ONGC make a counter offer for Unocal that could derail the Chinese takeover bid? That premise might be fantasy; but it underscores the urgent need for India to secure its future energy security. In 2004- 05, India paid almost $20 billion more for oil imports than it did the previous year. That money could have been used to build 20,000 km of highways across India. It could have added a badly needed 20,000 megawatt of capacity to India’s power-starved sectors. In terms of sheer cash, the additional money could have meant Rs.7,000 to every Indian living below the poverty line. But that money may never come as oil prices breach the $60 a barrel barrier, ensuring that India’s dollar haemorrhage of oil imports will worsen this year, and in the years to come.For Complete IIPM Article, Click on IIPM Article
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“Resource Management has posed a formidable challenge for the banking industry”
will banks react to such a slowdown in growth? Will the overwhelmed investor, who is on cloud nine and still aiming for new heights, spare them for value erosion? And what are banks strategising at a time when their top-lines have already succumbed to successive hikes in borrowing costs, as the results for the quarter ending March 2007 indicate? Moderation in loan growth is clearly visible. After three increases by ICICI Bank in its benchmark lending rate since December, loan disbursals on both homes and autos fell from a year earlier in the three months to March 31, a fact that has been confirmed by both Bajaj Auto and Hero Honda, India’s foremost two wheeler companies. For FY07, retail loan growth has materially slowed down, housing growth has declined to around 18-20% from a 35% growth rate in FY06. For ICICI Bank, retail advances have grown by 39% in Q4, FY07 to Rs. 1.28 trillion, which is less than the 64% growth in FY ’06 and 50% growth in Q3, FY ’07. Retail advances of HDFC Bank grew by 33.4% for FY ’07, as compared to 79.7% growth for the previous year. Even public sector banks faced a similar fate.
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When degrees fail to fetch jobs!
somehow manage to build a strong core, the paucity of quality support staff is surely hampering their progress. The SMEs are preferred hunting grounds for their manpower requirements. While speaking to B&E, CEO of Infotech, Ankur Lal confesses the problem on somber note, “SMEs will have to really distinguish themselves from large companies. They will have to provide extra challenges and good monetary incentives to their professionals. It is also imperative to encourage them to attain higher competency level in domain skills.” However, to develop higher competency in domain skills requires staying in the company for a reasonable period of time. But the kind of frenzy that has been primarily created by shortfall in quality talent pool has spurred the mobility of professionals. Insuch a scenario it is becoming increasingly difficult to develop domain competency. So, this model is not going to work in the longer run. For Complete IIPM Article, Click on IIPM Article
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Suddenly, DLF seems to be the epicentre of all corporate activities in India. The real estate behemoth has entered 
into an agreement for floating a joint venture with Fortis Healthcare to set up hospitals all across India. Shivinder Mohan Singh, Managing Director of Fortis Healthcare has intimated that they would have the majority stake (74%) in the venture and the rest of the pie would remain with DLF. The agreement would mark DLF’s expedition in the healthcare segment. It has also tied up with USbased Prudential Insurance to sell life insurance products. All these plans come ahead of the historical IPO of the company which is all set to hit the Indian market on June 11, 2007.
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Asbestos: The breath of death
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. The 
Supreme Court of India is contemplating dismantling the Blue Lady’ – a Norwegian ship that contains a large amount of asbestos in a ship-breaking yard in Bhavnagar, Gujarat. The court has been facing pressure from the villagers and the environmentalists, who contend that such an act of toxic disposal will impact the 12 villages located near the yard, leading to wide scale suffering and serious hazardous consequences. This fear isn’t fictional. Asbestos can cause breathing problems, fatigue, heart problems in extreme situations, but the most common symptom is constant coughing for which there isn’t a permanent cure.
Source : IIPM Editorial, 2007 An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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only big spender in the United States sits in Washington: President George Bush needs another $800 billion for the mess in Iraq which will assure that the USA will be saddled with public debt in excess of $10 trillion once he leaves office in 2008 (The US Congress approved a multi-billion dollar Iraq war budget on May 24, after bowing to US President George W. Bush’s demands). Big government keeps growing bigger and at last count in April a quarter of all new jobs came from the government, leaving taxpayers with higher bills in the future. A jump across the big pond to Europa lands one in economic mud these days. The official GDP growth rate in the European Union declined from 3.5% to an annual rate of 3.1% in early 2007, with quarterly figures confirming a continuing downtrend and an unchanged unemployment rate.
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Source : IIPM Editorial, 2007An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
Wolfowitz on a sticky wicket
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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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Southwards bound!
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...
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Source : IIPM Editorial, 2007
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative