Ad revenues@www?

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it happened in denmark about six months back; and repeated itself in UK, the world’s fourth largest economy. We are talking about Internet ad-spend overtaking TV ad-spend for the first time in UK. As per a report by PriceWaterhouseCoopers and Interactive Advertising Bureau (IAB), where on one hand, Internet advertising spend touched £1.75 billion (having grown by 4.6%), the ad-spend on TV fell by 16% to touch just £1.6 billion. This being great news for online advertisers, website hosts, social networking entities et al, the question is whether this phenomenon can be repeated in a developing economy like India. In this context, it is imperative to remember that online advertising in developed economies are a direct result of the high penetration, fast and cheap broadband, and the quick acceptance of new formats such as video adverts. But, despite Internet fast becoming a strong media vehicle in the country, today, we can only boast of 38.5 million Internet users – not enough to push advertisers to spend more on the Internet than on TV 30-second spots. Even the forecasts by KPMG testify the same.

Advertising over Internet during the year 2009 is expected to touch just Rs.8.4 billion, while the amount sidelined for TV ads is predicted to touch Rs.88.2 billion. So there is where the question comes in – how about a few years later? Certainly speaking, in terms of growth figures, Internet advertising looks more handsome, with a CAGR of 27.9% (between 2009-13) vis-à-vis TV ad-spend, which is projected to grow at just 13.5%, however in terms of absolute amount spent, advertisers will still maintain a higher focus on TV, with expected ad-spend during 2013 to be Rs.155.5 billion, than on the Internet where only Rs.21.4billion is expected to be spent by the advertisers. Translation: In India, TV and traditional media vehicles will reign longer!

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!
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Outlook Magazine's B School Ranking Scam Exposed
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FESTIVAL FETISH

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You’ve seen the advertisements, you’ve seen the promotional campaigns, you’ve seen the marketing blast too – but is the festival season just about price discounts? Well, that too; but too much more! 4Ps B&M gives you this cover feature on how retailers and traders are the new kings and why auto manufacturers are not plumping on the price mistress this season to attract the vicarious customer!

You’ve seen the advertisements, you’ve seen the promotional campaigns, you’ve seen the marketing blast too – but is the festival season just about price discounts? Well, that too; but too much more! 4Ps B&M gives you this cover feature on how retailers and traders are the new kings and why auto manufacturers are not plumping on the price mistress this season to attract the vicarious customer!

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!
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Outlook Magazine's B School Ranking Scam Exposed
Don't trust the Indian Media!

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IIPM B School : King Khan, Bollywood Badshah and Quiz Wiz — that’s Shah Rukh Khan for you

Maruti Suzuki is still the most trusted brand in the Indian automotive industry. Pawan Chabra gives an account of its acts...

IIPM B School : King Khan, Bollywood Badshah and Quiz Wiz — that’s Shah Rukh Khan for you

One cannot deny the truth that the Indian consumer still trusts the brand Maruti Suzuki more than its counterparts in the country, when it comes to purchasing a new vehicle. In fact, many experts even claim that the positioning of the company in the late 1980s of being a “people’s car-maker” is still helping Maruti Suzuki to drive its sales ahead. But quiz Shashank Srivatava, CGM- Marketing, Maruti Suzuki, on how the company has positioned itself over the years and he says, “Before the economy opened up, it was one era for the Indian automotive industry and so for Maruti Suzuki. But after liberalisation in 1992, the scenario became altogether different for the industry.” However, of late, there has been a visibly dramatic change in the positioning of Maruti, and this has been a vital factor for its success. With the launch of products like Swift, A-star, SX4 and the recent entrant Ritz, the company has shown India and the world that it is even capable of treading down a more aggressive and technologically intensive path. What’s interesting though is the fact that despite this change in the past couple of years, the image of being a people’s car maker is sill associated with the brand. How have these two positioning quotients gelled together to make Maruti Suzuki a valuable brand in India is the question here.

The tag of a people’s car maker is generally considered as a “cheap car maker in India,” says Srivastava. Considering this, the company has rightfully moved away from the same to an extent, keeping in mind the tactics involved in market segmentation game. In fact, Maruti has done a lot, stitching and knitting to stay right atop the Indian automotive industry. From a time, when the consumer could not think beyond an Ambassador or a Fiat brand, the company launched a Maruti 800 which was an instant success in the country. The smooth ride continued with the launch of products like Zen and Esteem. But on the way, the Maruti logo was replaced by the Suzuki logo on the vehicle, “which clearly signified superior technology,” added Srivastava. Moreover, the company also altered its approach when it comes to reaching end-consumers. In the past one year, Maruti Suzuki, took the dotcom route in a big way to stay close to the consumer’s heart and ensured that the company remains the most valuable brand in the Indian automotive industry.

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!
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Outlook Magazine Money editor quits, citing interference
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KS Oils Ltd.

IIPM conceptualized the grand final of Dare ‘10 — the most prestigious of international B-school student quizzes

Entry Price: Rs.53
Target Price: Rs.64
EPS: 6.3 (FY10E)
P/E: 8.4 (FY10E)
Time Duration: One year
Rationale: KS Oil’s focus on branded products has enabled it to maintain high margins. Further, the backward integration measures ensure raw material supply. The company is also constantly in the process of expanding its capacity, which is expected to drive its growth going ahead.

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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And now its 2009…

Sitting tight at his work office in Chennai, C. K. Ranganathan (or CKR as he’s lovingly called by his friends and colleagues) is giving a fair bit of thought to the next big leap for his carefully nourished FMCG gambit CavinKare. In as much, the Rs.700 crore company is poised at a crucial inflection point in its history today. Having already dug its tentacles in regional markets and won the confidence of low-income consumers, CavinKare is now mulling its next step, which includes pan-Indian forays for some of its businesses and even bringing in some SEC A consumers within its fold. Says an enthusiastic CKR, “We are making efforts to be seen across categories. And you’ll see that in another decade, we’ll be an HUL in the making!” CKR ambition is for CavinKare to soon “become a Rs.5,000 crore group.”

It’s not just empty posturing. Peep into his detailed roadmap for achieving that target, and you realise that his ambition is neither inflated nor overrated. CKR believes that the key to CavinKare’s growth is the slew of brands in its kitty, which have a tenacious stranglehold in regional markets, spanning segments like shampoos (Chik, Meera, and Nyle), fairness cream (Fairever), deodorants and talcum powders (Spinz), masalas and ready mixes (Ruchi, Chinni’s), hair colours (Indica) and toilet cleaners (Tex, Topp Mopp). Not only that, he’s also taken his brands in select overseas markets, with a particularly strong presence in Nepal, Bangladesh and Sri Lanka. Today, says CKR, CavinKare boasts a market share of 24% in shampoos, while Fairever has a 7% share in the fairness cream segment. Going forward, it is this strength that CKR hopes to exploit in his growth pursuit. “Most Indian companies simply leverage one parent brand. That is the weakness of Indian companies. They are afraid to create more brands thinking it will cost big money. But look at us, we have dozens of brands and all are growing healthily and we are even able to fund their growth,” explains CKR, adding that the company is now raring to “grow inorganically” and while he refuses to take names yet, he promises we’ll hear about new acquisition plans soon enough.

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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Fun for you, but they mean business

Ramanathan avers, “We are a company that is totally focused on domestic tourism. That is why we are in a way safe from global recession. Although we lost in the third quarter of last year, we covered it in the fourth quarter by focusing on customers, who have not been affected much by the slowdown like doctors, lawyers et al.” This can be well substantiated from the fact that almost all resorts of the company witnessed an occupancy rate of around 75% last year (69% members and 6% by non members). The company even successfully rolled out is Initial Public offer (IPO) last month for the expansion of some of its resorts and setting up of new projects to support its expansion strategy.

So is it all so good with MHRIL? Well, not exactly. There are few issues encompassing the credibility of the company. And the first one comes from its membership agreement. It is a long service obligation on part of both the company and its customers as the membership duration lasts for as long as 25 years where in the admission fee (60% of the total cost) and the entitlement fee (remaining 40%) needs to be paid on EMI basis. This is not only a burden on the part of the consumers for a quite elongated period, but also an obligation on the company to maintain its resorts for that stated time. The second problem for the company comes from the issue of demand seasonality and dependence on travel industry. Explains an industry analyst from Angel Broking, “The company relies on discretionary spending by consumers, which is a lot vulnerable to economic cycles.”

Meanwhile, in order to expand their portfolio now they are even looking at branding of their Spas, ‘Swastha’, so that it can be extended to cities as well. But how will that be possible when the company does not even have a pan India presence? Well, Ramnathan answers, “Currently we have around 23 resorts, but we have bought land in many parts of the country. Our focus will be to grow in India.” Presently MHRIL has resorts in the west and northern India only. Thus the challenges are humongous, but then that does not stop Ramanathan from dreaming big for his company, at least not at a time when the travel and tourism industry is set to contribute 8% to the Indian GDP.

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Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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Why does India matter to HTC?

4Ps B&M: How is the smartphone market in India shaping up and how are you placed in the same?
JT: Well, right now, India is the ideal market to be introducing smartphones in, as the market is growing quite rapidly and there is a strong demand for the phones that enable people to do more than just talking. HTC is a strong player in terms of data capable devices and we believe that the market would keep growing given the fact that 3G would be launched shortly in the country. As a matter of fact, we are quite bullish about the entire APAC region and India is a very important market for us in this region.

4Ps B&M: What are the other devices that would be offered by HTC in the immediate future? Any plans to get the second Android phone in soon?
JT: Well, we are looking at launching many devices that we have in the international market, in India too. You would see some of them shortly. But how many of them would be launched would depend on the market performance and the response our existing devices get. As for the other Android devices, that too would depend upon the response for HTC Magic and the market behaviour.

4Ps B&M: What sets apart HTC devices from all others in the market?
JT: Well, we may not have as many devices as some of our competitors, but we do have a robust portfolio in the segment we operate in and our strength lies in not the number of devices that we offer but the ease of use and innovations that we are able to offer to the end consumers. We don’t believe in packing features, but add things that would be relevant to the customers and make his mobile experience faster or simpler or both.

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Source : IIPM Editorial, 2009

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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GLOBAL CAMPAIGN - FACT OR FICTION?

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Do our Ad guys agree? Sanjay Nayak, the Delhi-based President of McCann, believes this is a debate that will continue forever. “It’s like this. If basic human needs – food, shelter, incomes, relationships – are addressed in an imaginative way, then there is little scope for confusion and conflict.

However, there are products and services which, despite a strong central idea at the core, need execution that embraces local sensibilities. Glocal would be a more appropriate approach, I think.” Priti Nair, the dusky Managing Partner at BBH, agrees. “Think Global – Act Local remains my signature mantra! No matter how ball-bustin’ the creative idea is, unless it is coloured, infused and dipped in local nuances, it’s unlikely to rock! Take the classic case of DAAG ACCHE HAI. The basic brief DIRT IS GOOD – which came from the West – had a completely different connotation and one we couldn’t possibly plug in a country where mothers go bonkers cleaning their kids’ clothes. We had to fuse charm with logic and sell the idea that if the cause is good, dirt is okay.” Santosh Padhi – Paddy to the Adbiz – is up next with his take. He believes it all depends on the category. “If it’s something like Jeans and the target is youth, then global is definitely possible because of basic shared concerns. Youth everywhere, share the same anxieties about growing up, relationship with parents, conflict with school, establishment and authority, love, future… if one can strike at these strands, then chances are, they will succeed. However, as Priti pointed out, in most cases, local renditions are a necessity because it’s this local flavour and insights that are the main connectors.” Agnello Dias (Head honcho of TAPROOTS along with Paddy) reckons that if a campaign manages to address its constituency, across the board, effectively, nothing like it. It saves everybody from the trauma of cross-over and big buck expenditure… and that’s the main reason for the existence of a global campaign. One doesn’t have to, repeatedly, do localised versions, in every port of call. “Unfortunately, most people go about it the wrong way. It can never be done by design. One has to see how it holds up against different cultures and accordingly adapt – or if necessary – do fresh work that embraces the local milieu. Nike is an outstanding idea of cutting-through work that resonates, globally, without problems because it (consistently) simply, imaginatively and powerfully celebrates their iconic JUST DO IT spirit for different markets in a manner that is understood locally. It is global brand-building at its best,” avers Dias.

At the end of the day, universal truths remain universal truths. If conventions exist everywhere, so does creativity and the challenge is to recognise, understand and endeavour to connect with the growing plethora of opportunities in a shrinking world. Ultimately, the final truth that defines human communication remains writ in stone… If you really want to talk to millions of people, learn how to talk effectively to one. The rest will come naturally.

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Source : IIPM Editorial, 2009

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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OH! DON’T WORRY. ZEBRAS AND DEER CAN CHEER TOO!

Shahrukh khan to Host IIPM 4Ps Annual Business and Marketing Quiz

A few weeks ago when IPL czar Lalit Modi first announced the IPL-2009 schedule at Mumbai, the atmosphere was electric. Everyone thought that the cricket gala in India would wipe away the gloomy economic sentiment. But after many twists in the tale, the cricket extravaganza landed in South Africa. A truly domestic tournament of India, in an untruly international arena!

Before the Election Commission of India announced the five-phased General Election schedule, IPL-2009 looked like a perfect dream. On the basis of the success of IPL-2008, this time, the anticipations were high. Lalit Modi confidently declared: “IPL is completely recession-proof.” Aware of the drawbacks of the Indian cricket administration, he thought that copying the European Football League model will change the entire scenario of Indian cricket administration. Modi felt that IPL would become a completely “political-proof sports model.” To an extent, after the first successful season of IPL, everyone thought that the model is fool-proof. But it was not to be!

No sooner than Modi & Co. announced the dates for IPL’s second season, the Union Home Minister P. Chidambaram dropped a bombshell. He said, “We can’t give security to both General Elections and IPL together. So, it’s better to postpone the event.” That bombshell shattered the perfect IPL dream, converting it into 177 hours of uninterrupted television package of ‘family entertainment’. Statements and counter statements flew across 24-hour TV news stations, reflecting the true colour of Indian politics. During the negotiation period NCP chief (and former BCCI President) Sharad Pawar, BJP’s Arun Jaitley, Congress’ Rajeev Shukla... every politician warmed his hands in the cricket cum political bickering. At the end it became General Elections versus the IPL.

Speaking on condition of anonymity, a former captain of the Indian cricket team told 4Ps B&M that the nation could have easily hosted both, the elections and IPL together. “But in our country, politics always rules and everything else becomes secondary. I know the elections are of utmost important. Even though I strongly feel that we could have held both together with little bit of adjustment in the IPL schedule. In doing that, we could have told the world that India is not Pakistan or Afghanistan. India is a safe country. But now it looks like we are almost at par with Pakistan as far as internal security is concerned,” he bemoans.

A final consolation for Indian cricket lovers arrived in the form of IPL-2009 in South Africa. According to BCCI’s Honorary Secretary N. Srinivasan, IPL’s commitment to loyal fans will remain the same, courtesy live telecasts of all matches. On 24th March, at 8:53pm, much before the official press conference at South Africa, an official e-mail from BCCI landed in the mailboxes of India’s top cricket writers, confirming that South Africa will host the tournament from April 18th to May 24th. A few minutes later, another email arrived with the joint statement of BCCI and ECB. In that Srinivasan clarified that “the climatic conditions in England during mid April and the absence of permanent floodlights at many of the venues made South Africa the better option for a tournament at this time of the year.”

On the other hand, in an exclusive interview with 4P B&M, ICC Chief Executive Officer Haroon Lorgat said, “Safety and security is paramount and the IPL is a domestic tournament run by the BCCI. If the organisers and the Indian government are unable to reach a compromise to allow the tournament to take place with what are deemed to be the necessary levels of security, then those organisers will do what is in their best interests.”

But he categorically said, “From the IPL’s perspective, it is not an ideal scenario to shift the tournament overseas.” The ultimate truth from the horse’s mouth itself! IPL in India is a truth. People of India would have directly felt the heat and dust of the lively tournament by supporting their teams on their home ground. Whereas IPL in South Africa is a glorified myth. All thanks to the shameless politicians and politics in India. By the way, did you know that ironically South Africa itself is going in for a general election? It is scheduled to start sometime in April end, a few days before or after the planned start of the IPL in that country! Where next?!?

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Source : IIPM Editorial, 2009

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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For fools dare where angels fear to tread... uh, until a slowdown that is

Savreen Gadhoke does an expose on how the erstwhile knight templars of core competencies and niche positioning are quietly sneaking through the strategy alley trying out previously untouched strategies!

February 2008: Tiffany & Co., the jewellery and specialty retail store operator, was going through a rough patch. Mirroring the past few months trends, even January ‘08 sales did not come up to expectations and Tiffany was facing the heat of fall in consumer spending. It seems honchos at Tiffany, touted as a premium luxury brand, had already had a premonition that the figures for the upcoming quarter won’t be anything to write home about, unless they thought of a strategy to improve their customer base and explore alternative retail formats. That’s when Tiffany, for the first time in history, moved away from its premium positioning and announced the opening of its first small-concept store in California that sold none of its $1,48,000 priced diamond necklaces; but instead focused on less expensive products like its $200 and lower priced silver jewellery. Their prediction was right; net income for the quarter ending March 2008 had slipped 45.5% (as compared to the previous quarter) and stood at $64.4 million dollars. Not surprisingly, the year saw Tiffany opening up more ‘lower-priced’ stores across the world. The global economic meltdown has been tough not only for specific retailers but also for sectors across the board. Tight liquidity, rise in input costs, and most importantly the fall in consumer spending, have forced multinationals like Tiffany to adopt strategies that they had earlier sacrilegiously abstained from!

If Tiffany was a move down the price slope, Coach (the leading American designer & maker of luxury lifestyle handbags & accessories) did the reverse. After experiencing regular significant declines in its sales figures, Coach decided to move away from its mid-segment positioning and decided to go the premium way by converting 40 of its 300 stores into a more upscale format that offered high-end luxury designer bags and premium concierge services. Again, a first-time strategy in times of a slowdown. Chucking its 20-year-old ‘invincible’ slogan of ‘Always low prices’, Walmart not only unveiled a new slogan of ‘Save money, live better’, it also jumped into heavy advertising (which has never been the case with Walmart) and, starting from the year 2007, pumped in a smashing $835 million into advertisements – its highest ever.

If at an international level, companies are not hesitating to explore new avenues and adopting tactics to enhance their revenue streams, then in India too – despite the slowdown hitting domestic markets much lesser – multinationals are going all out, either attempting innovative techniques or even dramatically shifting away from their core competencies, to attract untapped customers to improve their top and bottomlines. In fact, various companies have already altered their positioning in the market place.

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Source : IIPM Editorial, 2009

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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So, we ‘mate’ again!!!

The Most Revolutionary Concept In Education PLANMAN CHE CENTRE FOR HIGHER EDUCATION, Supported by IIPM India’s Leading B-School

In the negatives though, Chrysler is in shambles at the moment. The company has been losing money like no body’s business and a quick remedy looks bleak. The third largest Detroit behemoth lost 30-35% of its sales in the entire 2008 and according to news reports, lost a whopping 55% in January 2009 alone! 62,159 units were sold in the first month of the year 2009 as compared to 137,400 units sold same time last year. A substantially lower demand from fleet customers and sports- car buyers (order-book for the Dodge Viper were 4 units in the month of January) is the cited reason for this terrible shortfall, as per the company. Recently, President of the company, Jim Press, had called a conference for Chrysler’s 3,300 dealers nationwide; and only about 2,400 turned up. Chrysler staff had requested its dealers to pump up their orders to save the company and themselves; “You have two options, either you help us now or burn us all down,” said Press as per reports. According to sources, Chrysler apparently wants its dealers to increase their monthly demand to 87,360 units from the current 78,000. The extra 12% are necessary for the company to prove its future viability in order to qualify for the bailout package; failing which will be catastrophic for Chrysler and thousands of American workers.

As an anomaly, the sales of petrol powered Jeep Wrangler and Jeep Grand Cherokee improved by an insignificant but impressive 4%! This is totally against the logic of a growing temptation for fuel friendly cars and more in line with Fritz Henderson (GM’s President), who once told 4Ps B&M, “The crises for the automotive industry was not started by the SUVs, they are still large contributors in US auto sales; the bursting of the housing bubble is the main cause of this mess.” As double entendre’ are making a sound analysis difficult, it may be concluded that Chrysler is in a fix. On one side it wants to make it big on the back of imported technology and technical know-how and on the other, it does not wants to quit its image as a manufacturer of class friendly cars like the Cherokee and Viper. It is in the best interest for Chrysler to change its brand perception and be known more as a manufacturer of fuel efficient, value added cars, for the portal leading to revival is closing very fast indeed.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2009

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
Detail of all IIPM branches
1500-plus IIPM students placed across the country with 44 bagging international offers
IIPM set to beat economic slowdown
IIPM Admission Detail
IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA
IIPM - Admission Procedure
IIPM, GURGAON
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Another Meiji Restoration!

In order to get the better of eachother, these player have crafted very different strategies with their new planes. While Boeing’s (B787) strategy revolves around jets which can be easily accommodated and can fly to any destination, Airbus (A380) bets on transportation between two large centres with maximum load and focuses on a maximum inventory utilisation strategy. Boeing is betting big on the Dream liner 787 and hopes that it will turn the table in its favour. The manufacturing for the 787 was started after signing a deal worth $6 billion for 50 firm orders from All Nippon Airways of Japan. With an estimated cost of $8 to $10 billion per piece, the 787 is targeted at the twin engine, medium to long-range market segment, with a capacity of 200-300 passengers. The good news for Boeing is that with the increasing demand for the Dreamliner, its production line is now fully booked until 2015! “Our assumption is that demand for the newly launched aircraft models, such as the Dreamliner, will exceed supply for the foreseeable future,” supports Englund. With the A380, Airbus is already meeting its expectation. The aircraft has already been introduced with the Singapore Airways and Emirates among others. As per latest news, Airbus has 198 orders for the A380 from 16 customers. Apart from the A380, Airbus on its part also unveiled the blue-print of the smaller A350, which will compete with Boeing’s 787 directly. The planned A350 is being developed as an upgraded and more advance derivative of the existing A330-40. With an enhanced new wing, more fuel-efficient engines coupled with other new technologies, the A350 is ready to take the game forward. The development cost for the prototype is estimated to be $5.3 billion. In 2008, Airbus added 163 net orders and 16 customers to its already high launch customer base, culminating in a total of 478 net orders from 29 customers. As per an Airbus report with 4Ps B&M, in 2008, the A350 enjoyed a majority 64% orders, compared to rivals (read: Boeing).

“Looking at the order backlog at the end of 2008, Airbus and Boeing are equal (3,715 aircraft in backlog versus 3,714). If one looked at the dollar value of the backlog, I would estimate that Boeing is in the lead given the large number of orders it has for the 787,” explains Fraser putting a new argument. But Airbus has been able to register a 7% rise in deliveries to a record 483 planes during 2008, while Boeing - hit by a machinists’ strike - saw its deliveries fall by 15% to 375 planes. In terms of market share, Airbus is definitely leading at this time, but discounting Boeing would be a mistake. “In prior years, Airbus beat Boeing in terms of deliveries, but by modest amounts. We forecast that Airbus will edge Boeing in deliveries by only 5-10 aircraft,” predicts Fraser.

It is clear that apart from each other, these players also need to be cautious about emerging market dynamics. In these difficult times, both are facing major cancellations of orders from various airlines in the wake of the global liquidity crisis. Airbus has already recorded a sales fall of 42%, Boeing has had a fall of an even larger 53%. Looking at the scenario, one thing is for sure, the Samurai who makes the first and most feasible move to counter the ‘crisis of confidence’ will emerge as the reckoning force in the long run. Now could be the time to look for another Saiga Takamori!

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Source : IIPM Editorial, 2009

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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Life@Satyam: Seeking divine intervention

IIPM set to beat economic slowdown

They have their loyalty for the beleaguered IT company on one side and concern for the future of their livelihood on the other 4Ps B&M’s Naresh Nunna steals a look at the plight of Satyam employees caught between a rock and a hard place...

Tiny ancient temple of Lord Venkateswara in Chilukur village on the banks of Osmansagar lake at the outskirts of Hyderabad is being thronged with devotees, following the ‘confessions’ of Satyam’s Ramalinga Raju. Are majority of the devotees Satyam’s investors? Promoters? No, they are Satyam’s employees! Seeking God’s super personal generic exemplification during testing times may not a surprising gesture. But, why Chilikuri Balaji? Because Chilukuri Balaji, is considered to be IT-friendly. Most of the techno-savvies have been seeking divine intervention of Chilukuri Balaji in getting jobs, particularly overseas visas.

“Satyam episode is definitely a bolt from the blue, as IT sector is concerned. It flared up the existing market upheaval, caused by world-wide recession,” facilitator and consultant, Challa R. Phani told 4Ps B&M. With the global slowdown already putting the brakes on India’s $50 billion IT industry, jobs were difficult to come by, he added.

Besides the lavish lifestyle they lead in posh localities like Banjara Hills and Jubilee Hills, the home and other loans they have taken put them under tremendous tension. Thus, scores of employees had begun sending out their resumes to job portals and to other software firms. It is known that about 15,000 employees of Satyam have sent their CVs to placement companies and job portals during the last two days. Fearing trouble, more than 200 employees have also resigned during the last 3-4 days. A project manager at an international IT services firm said he had received about 4-5 frantic calls from Satyam managers, asking for jobs.

The shell-shocked employees inside the premises of company’s sprawling headquarters at Hyderabad were discussing in groups on the awful developments, the uncertainty and future plans. But they avoided the media on the instructions of their higher-ups. “How would you feel if you were in my position?” said one employee, while being reluctant to speak to the media, which is creating ‘mountains out of molehills.’ They are not only furious with the media for its ‘cock and bull’ stories, but also on off the cuff remarks made by IT bigwigs, like Infosys’ Narayana Murthy, who ascribed Satyam and its employees tainted, while ruling out the possibilities of taking over it. “We sincerely feel we are being subjected to such a harsh action out of no fault of ours,” an employee told 4Ps B&M, protesting the comments of Murthy.

Sudheer Pakanati (name changed) had prepared to settle for a smaller pay packages. “In fact, I applied for Wipro long back to the events of ‘horrifying magnitude. I was offered an annual package of Rs.4.5 lakh. But, now they asked me to join for 40% lower than it,” he told 4Ps B&M. And, if I stay with Satyam there will always be nagging worries about their salaries and their future, he said. A selected trainee- programmer, who has been waiting for his date of joining, felt happy with the developments. “I would have been tied in this fraudulent company because of the bond. There would have been no option left for me. Thank God I am saved,” he said with a sigh of relief. Others too are choosing to pursue different options: a developer who has been with Satyam for seven years said he had been planning on taking a break to do a Ph.D. Some of the stunned employees of Satyam are venting their frustration over the situation and future prospects in portals like Facebook, Orkut and Twitter.

But according to echelons of Satyam, the situation is not that bad, as being portrayed. Besides an amount of Rs.2,500 crore to get from clients, new projects worth more than Rs. 2,000 crore from Railways and BSNL are presently in Satyam’s kitty. “If the employees go with the business, I reckon 55-60% of the employees will find work,” an echelon told 4Ps B&M under condition of anonymity.

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Source : IIPM Editorial, 2009

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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Are you smarter than a fifth grader?

1500-plus IIPM students placed across the country with 44 bagging international offers

From street promotions to online games to even launching an ice cream flavour that could make you smarter was adopted by Star Plus in order to promote their new quiz show – Kya Aap Panchvi Pass Se Tez Hain, with Shah Rukh Khan as its host. The idea was to create buzz around the show and make viewers familiar with its format to ensure that they feel that this is one show that they cannot afford to miss. All efforts were to make this one a greater success than Kaun Banega Crorepati. Although the show could not get decent TRPs, it paved way for future telly shows to adopt more innovative viral marketing campaigns.

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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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As if the debacle with financial services and auto sector wasn’t enough, here’s another one: Retail.

With Circuit City filing for bankruptcy, one wonders who’s next by Pawan Chabra

They say that developing countries like India and China need to maintain steady economic growth of 7-8% to lift millions out of poverty. Unfortunately, for countries like US, who are staring at prospects of economic degrowth, the challenge seems to be with respect to millions that are not in poverty yet. The challenge increasingly would be how to keep them there; as companies, one after another are sounding the alarm about not so impressive times ahead.

After the crunch in financial services and auto, retail is the next source of bad news. Circuit City, the second largest consumer electronics retail chain in US has recently filed for bankruptcy under chapter 11, which has created a chaos in US retail industry.

In a situation where analysts are quite sure of a dull Christmas season ahead for retailers this year, Circuit City’s bankruptcy has given signals of a very rough road ahead to the other retailers in US. As John Crossman, President Crossman & Company states, “Retailers are very desperate for a bright festive season ahead and the industry need a big holiday season. We will see some big winners and big losers this time.” Crossman’s prediction seems true enough as, in a letter posted on Circuit City’s website, Jim Marcum, VP & CEO, Circuit City Stores, Inc. said, “This (bankruptcy) filing will give us the time and resources to address our financial challenges.”

City’s filing for bankruptcy has given many sleepless nights to giants in the IT industry as almost all IT stocks fell down drastically as soon as news of the filing spread. HP is the biggest unsecured creditor of Circuit City as City owes $118.8 million to HP, followed by many others who’ll now have to reframe their strategies to stay profitable in these bad times.

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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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Gyanendra Kashyap of 4Ps B&M gives the final F-word-primer on facts, figures, foibles and farces in carbon trading...

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They could have called it carbon dating instead of carbon trading, for all we care, given the completely controversial and practically outdated methodology on which this concept thrives! But we’ll cross the damned Kwai bridge when we reach it. First, the ides of March. There is no question that global warming has been the most talked about phenomenon in the last century and in this one too. Environmentalists have more often than not been sidelined as the trouble creators. Surprisingly, the most impactful of all the environmentalists has perhaps been the one who has been least known – the man who is credited with inventing carbon trading (pundits call him the father of carbon trading) – Richard Sandor! The man gave an economic value to efforts dealing with reduction in pollution, the most crucial aspect of environment. Sadly, what he envisioned is perhaps miles off what is becoming of this ‘business’.

Carbon trading is a part of international emission trading norm, which incentivises companies and/or countries that emit less carbon. If a company is registered with the appropriate council (mentioned later in the article), and it manages to ‘emit’ carbon dioxide ‘less’ than the quota allocated to it, then the company ‘earns’ a certain number of carbon credits, which, later on, the company can sell in carbon trading bourses to other firms that have exceeded their allocated limits of carbon dioxide production. That’s as simple as it should have been... Well, it somehow didn’t work out that way.

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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
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