Friday, February 26, 2010

A space treatise

Russia becomes a space educator

America’s Neil Armstrong being the first man on moon notwithstanding, what has not got much publicity – albeit aided by the Russian style of shrouding everything in secrecy – has been Russian endeavours and achievements in space. These, incidentally, much before Neil Armstrong and Edwin Aldrin even put their feet on the moon. Typical to the western style of functioning, the disintegration of the Soviet Union brought a seat of the pants sense of jubilation among the Americans who assumed that this would draw curtains on Russian competition against NASA. However, soaring oil and minerals prices in the international market was all that Russia needed to resurrect itself; and once again to pose a challenge to its bete-noire, the NASA.

Russia’s exports of gas and minerals has not only rejuvenated a dying economy to be a trillion dollar GDP giant now, but has also given enough impetus to fund their federal space programs with a handsome 305 billion rubles. The trend has been continuing throughout this decade with the space budget doubling by 2009. And changing times however have taught Russia the art of marketing and minting money out of its space exercises. In 2005, Russia’s federal space agency further declared their preparedness towards cosmic tourism. It will have moon visit programs costing $100 million. This announcement was in line with the launch of NASA’s space shuttle Discovery from Kennedy Space Station. In order to exploit this opportunity to the maximum, Russia is investing around $100 billion in their space stations (Soyuz capsule and Progress craft) and cosmonaut centres. Russia has opened up its cosmonaut centres to the common man to perhaps make the new age Russian take more pride in erstwhile glories of USSR.

Hopefully, these endeavours of Russia would revive the interest of youth in space with an emphasis on knowledge rather than on using the same for war. Space truly contains the final frontiers for mankind, an ‘enterprising’ voyage surely; and perhaps, just perhaps, one day, the urge to explore space will go beyond exhibitionism – on who reached Mars first – and reach the realms of exploration for the advancement of mankind.
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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

Keep expanding the two-wheeler customer base by exploring markets across geographies

Hero Honda also increased its distribution channel outreach during the year gone by. It built an extensive network of over 3,500 touch-points across the country, selling and servicing its two-wheelers. The company’s rural initiatives have further strengthened its presence in the rural markets, a geographical segment which contributes to 40% of its total sales. Pawan Munjal, Managing Director, Hero Honda, in all joy explains further, “An unprecedented share of over 57% in the domestic motorcycle market particularly when the industry has been witnessing a massive slowdown on account of the impact of recessionary trends across the globe, the credit squeeze and the uncertainty over interest rates in the country is reflective of the strong fundamentals of this company. We as the market leader are committed to keep expanding the two-wheeler customer base by exploring markets across geographies – rural as well as urban – and across customer segments, which in turn will contribute to the growth of the industry.”

But question Munjal on which is the most critical strategy for the company and he shoots back, “All the pillars combined are contributing equally to the growth of the company; then let it be the rural expansion or the aggressive marketing strategy.” The company has a capacity to produce around 4.9 million two-wheelers every year from its plants located at Gurgaon, Daruhera & Haridwar, enough to comfortably fulfil the demand of the Indian two-wheeler consumers for a calendar year. Even auto expert Murad Ali Baig is all praise for the company as he outlines, “Hero Honda as a two-wheeler company, is known for its continuity and stable approach that the company follows...”

The company also created waves last year through its strong association with the youth and its effective campaigns in the rural markets. Stunning market watchers, Hero Honda even came up with a 3-minute television spot, with the who’s who of celeb endorsers; at a time when cost-cutting was the prime tune all around. Moreover, Hero Honda’s campaign ‘Har Gaaon…Har Aangan’ worked wonders in rural markets “In the past year consumers have seen Hero Honda almost everywhere. It was all a part of a plan made long back to get close to the Indian consumer,” avers Anil Dua, Sr. VP (Marketing & Sales), Hero Honda. Fantastic work for 2008-09. But will history repeat itself? For the answers to that, grab our next B&E Power 100 listing...

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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

Why one bird in hand is better!

k. m. birla is at a crossroads – to combine or not to combine is the question. neha saraiya states the raison d’ĂȘtre behind the best possible option...

Imagine a young CEO, who happily acquires a 51% stake in L&T’s cement division (named as Ultratech) for a whopping Rs.22 billion and then soon after sends a letter to his board of management warning them about the bumpy road ahead... That is Kumara Mangalam Birla, a man who had apprehensions about the problems that the massive year-2004 acquisition would cause to the company in the long run. Even as many woke up with the hangover from that deal, there was another major announcement from Grasim Industries on June 11, 2009 – a further purchase of 11.5% stake in L&T Cement! Surprisingly, all went well and in fact much better than expected... That was five years back.

It’s 2009, and the 42 year-old Birla is faced with another question – should he combine his brainchild Grasim Cement with the foster child Ultratech? The move to merge the entities will definitely make the duo, the largest player in India’s cement industry, with an annual combined production capacity of 42 million tonnes, overtaking others in its ilk, which includes biggies like ACC, Gujrat Ambuja, et al. But what if structural issues actually creep into this process of consolidation? Before answering that, taking a look at the company’s performance during FY2008-09 becomes important. The company which has a host of businesses under its umbrella (including Viscose Staple Fabric – VSF, cement, chemicals, textiles, iron ore, et al) recorded a net profit of Rs.21.87 billion, with top line collections of Rs.18.04 billion.

So, while the bottom line fell by 5% as compared to the previous year, what makes Birla happy is the fact that revenues of his main cement business grew by a double-digit 13% y-o-y, touching 20 million tonnes in capacity. Of course, the infrastructure development thrust given by the Indian government helped, but the question stands – are the other eggs in his basket worrying Birla? Admits Adesh Gupta, Group Exec. President and CFO, Grasim Industries in an exclusive conversation with B&E, “Despite higher energy cost and the economic slowdown, cement business maintained its operating profit in FY’09. However, our VSF business was adversely impacted by the global slowdown and spiralling input costs.” Rightly so, the VSF and sponge iron businesses have proved laggards for the company, as the average VSF realisations fell by as much as 17% y-o-y, while sponge iron’s fell by 30% y-o-y. The major reason for this dip has been reduced consumer spending & increase in raw material costs.

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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

Reinvigorating the ‘port of good hope’

When Jawaharlal Nehru laid the foundation stone of the kandla port, the vision was truly a grandiose one. while one cannot deny the achievements of this port, Akram Hoque of B&E also warns of critical shortcomings

Gandhidham, a small city in Gujarat, bears tesimony to what ports can contribute. Around 350 km from Ahmedabad and 1101 km from New Delhi, it would have been just like any one of those hundreds of cities in India that you possibly wouldn’t hear about in a span of a lifetime. The reason why it isn’t, is quite evident from a near unnoticeable signboard I come across as I step into the city from the railway station. It says, “Kandla Port Trust welcomes you.” In Gandhidham, this is not merely a corporate branding initiative. It actually is an apt reminder of how much the Kandla port means to the city. Alhough the Kandla port was commissioned in the year 1930 by Maharao Khengarji III (the ruler of the then princely state of Kutch), it was the great visionary Sardar Patel who realized the need to explore the possibility of establishing a deep-sea port to cater to the vast hinterland. And Pandit Jawaharlal Nehru laid the foundation stone for the new port of Kandla in 1952 with a mission to make it a major logistics hub, which would render professional, cost effective and value added services to its customers. Some of its defined objectives were to provide efficient and economical port services, create facilities of international standards and facilitate quicker turnaround of vessels, besides pursuing a slew of social development and environment friendly initiatives.

As per official data, the cargo handling capacity went up by 11.29% in 2008-09 and reached 72.22 million tonnes per annum against 64.89 million tonnes in 2007-08; the highest-ever cargo throughput by any Indian port. The management aims to scale it up further to 100 mtpa by 2012. It also handled the highest amount of crude oil at 35 mt in 2008-09, as compared to 20.27 mt in 2007-08.

The Kandla port also has some major strategic advantages. Firstly, a vast hinterland of 1 million sq. km. can be easily accessed from Kandla. Secondly, it has the highest Liquid Storage capacity in the country. Thirdly, tropical and dry climate conditions with scanty rainfall enable relatively uninterrupted operation around the year. And most importantly, it is the nearest to Middle East and Europe. Omprakash Dadlani, PRO of Kandla Port Trust, tells me, “All these strategic advantages have made us one of the best and highly demanded ports in India. We have recently been honoured with the ‘Best major port of the year’ award for 2008-09 by the Ministry of Commerce.”
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Source :
IIPM Editorial, 2009


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

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Tuesday, February 16, 2010

This tryst with destiny continues to unfold...

Free market fundamentalists love to deride and denigrate the ‘state’ & the public sector in india. why they are both wrong and dangerous...

A vision doesn’t take too long to become an anachronism. A visionary too can be transformed into a pillar of blunders if history delivers a future that was presumed impossible in the past. When it comes to sterile debates behind ivory towers by academicians, it would not really matter so much. But when debates about the legacy of such visionaries and the visions they spawned have to do with the livelihood and well being of tens of millions, the debates acquire a much more strident note. For the last few decades, this is exactly what has been happening with Jawaharlal Nehru and his vision about the ‘Temples of Modern India’ transforming a former British colony and a wounded civilization into an industrial powerhouse. Most us us have forgotten what Nehru meant when he coined and invoked the term ‘Temples of Modern India’. India’s first Prime Minister had a habit of invoking the term passionately when it was time to inaugurate dams, particularly the Bhakra Nangal dam in Punjab (Wonder what powerful words and phrases Arundhati Roy would use to trash Nehru’s obsession with dams!). In his vision of a modern post-colonial India, Nehru differed dramatically from his mentor Mahatma Gandhi, who wanted to concentrate more on villages rather than dams and factories. Nehru’s vision won the day and spawned what is now ubiquitously known as the Public Sector in India.

Just in case you didn’t know or had forgotten, those was respected industrialists and entrepreneurs like J.R.D Tata who had unveiled a vision for modern India well before the nation gained freedom. Their vision clearly stated that the ‘State’ had to play a key role in pushing industrial and economic growth in the country. Please do not forget that those were the hey days of ‘socialism’ and Stalin (His horrific crimes against humanity were uncovered much later). Please also do not forget that even for those unwaveringly against the ‘Socialist’ vision of the economy, the icon and hero in those days was John Maynard Keynes, the economist who found a solution to the Great Depression that gripped the global economy since 1929.
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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

Bihar - The turnaround story

The improved law and order situation has led to substantial small-scale private investments

Dr Shaibal Gupta

Member Secretary, Asian Development Research Institute


A failed state run by a venal political elite, a civil society fractured by caste, a dysfunctional bureaucracy that does not police the streets or ensure that teachers attend school and an economic sinkhole bypassed by the economic boom that has transformed the country: that was the general image of Bihar until four years ago.

But new statistics published by the Central Statistics Department of the Union Government presents a completely new picture. Bihar is being seen as a miracle. The state’s economy is growing by 11.44 per cent with its gross domestic product (GDP) in 2008-09, according to the statistics made available by the state’s Directorate of Economics and Statistics, and reproduced on the website of the Central Statistical Organisation (CSO). That’s not all. The state’s GDP at constant (1999-2000) prices also increased by 22 per cent in 2006-07 and by 8 per cent in 2007-08, according to the same source. The statistics show that the state’s output from 2004-05 to 2008-09 grew at a double-digit annual rate, outperforming India as a whole. Is this growth for real? Has the Nitish Kumar government actually done wonders for the state?

Bihar should not be measured in terms of growth trajectory alone. It should be evaluated in terms of qualitative and quantitative functioning of the state structure now. Bihar historically had a non-functioning state. Being part of a zamindari system, the quantum of revenue collection was limited during the British era. In turn, there was limited per capita expenditure in health, education, administration, police, etc. This per capita expenditure, which determines the quality of governance, was not only lowest in the pre-Independence period but remained unchanged even in the post-Independence period. Over and over above, being a zamindari system, there was absence of updating of land records.

In the process, survey and settlement operations were not done on a regular basis in this part of the country. The absence of updating of records was not prevalent in other parts of India, where mainly Ryotwari or Mahalwari system were prevalent.

In the post-Independence period, while Nehru was involved in building national state structure, there were commensurate efforts at provincial level like Kamaraj in Tamil Nadu, Partap Singh Kairon in Punjab and Y.B. Chavan in Maharashtra and Biju Patnaik in Orissa. Unfortunately there was no commensurate effort in Bihar.
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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

Imagine his plight

On the day of polls, large lines were seen outside booths in Southern districts where as polling in Colombo, UNP’s bastion, was moderate. “He has won the war for us. It will be a betrayal if we don’t vote him,” said M. Udayange, 30, after casting his vote for Rajapaksa in the Wellawetta area of Colombo. JVP’s dedicated cadres tried to make inroads for Fonseka in the interiors but failed miserably. In fact, several of the old-time cadres of both JVP and UNP were seen voting for Rajapaksa. “I was with UNP but I’ll vote for Rajapaksa. Fonseka is trying to divide the nation,” said 60-year-old H. G. Chaturanga outside a polling booth in Ratnapura district. There is definitely a question mark on the future of both the parties as they are losing their cadre and mass base to Rajapaksa. Ranil Wickramasinghe runs the risk of becoming irrelevant.

Political critic Jehan Perera says, “The results have been surprising and unexpected. However, this asymmetrical result has much to do with the asymmetrical campaign that was launched by both the candidates. The incumbent had the entire government machinery at his disposal and he used it to maximum effect as far as spread of propaganda is concerned.”

There is a need to understand the verdict in terms of the dynamics of Lankan politics. The most stunning imagery of the approach in which Northern Tamils analyse polls was given to me by a voter who was born, brought up and worked in the peninsula. He contrasted the jubilation and revelry in the south, following the announcement, with the sense of trepidation and insecurity in the north. While down south, there was a sense of “our government” being voted in, in Jaffna, it was more of a sense of a “Sinhalese government” over which the Tamil people would have limited or no sway at all.

In fact, it was the limited participation of Tamils in their provinces of dominance that sunk Fonseka. Tamil National Alliance (TNA), unarguably the sole representatives of Jaffna Tamils, joined ranks with Fonseka, prior to the elections. The decision did not convince majority of the Tamils who had suffered from the war. Also, limited availability of transportation and sporadic grenade blasts stopped many voters to venture out. “It was more a rational decision than an emotional response. Since Fonseka represented a rainbow coalition, he was more of a national candidate than the president. UNP had the largest block base where JVP has the most politicised and committed cadres,” defends political analyst K Sarveswaran.

But why were Tamils confused? Well, one of its leaders, Douglas Devananda, defected to Rajapaksa. Douglas will gain the most from the spoils. He once drew parallel between Tamil nationalism and cholesterol, saying just as there is good and bad cholesterol, there is good and bad Tamil nationalism and that you need good Tamil nationalism just like the body needs good cholesterol.

“Devananda remains close to the grassroots. He is the right mix of moderate-reformist Tamil nationalism with productive developmental attitude and populist progressivism,” says Dayan Jayatilleka, a pro-Rajapaksa political analyst.

But what changes can his fresh election bring for the Tamil people are pretty unclear. Rajapaksa won’t do much on political front as far as ethnic issues are concerned. In fact he has said that Tamils are not looking for any political package. Also, he is not likely to jeopardise the Sinhalese support he has got.
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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

Just one mistake’

IPCC Chairman R. K. Pachauri’s credibility is under attack for glaring mistakes in the fourth assessment report of IPCC and for charges of financial irregularities in TERI. Vikas Kumar caught up with the man in the muddle.

Don’t you feel that the recent revelations have severely eroded your credibility and you should resign from the post?

First of all, I would like to make it aptly clear that I have no intention of resigning from my post. I was selected by the United Nations and I have a task of carrying out the fifth assessment report of IPCC. I have to complete it and we are trying to come up with a more robust report this time. Unfortunately, there were some mistakes in the fourth assessment report on Himalayan glaciers but that, in no way, can demean or discredit the value of the report. As far as credibility of the report is concerned, I am sure that ‘rational people’ all over the world will not be distracted by this one error as they see the larger picture.

Global Warming is a phenomenon not only confined to Himalayan glaciers. It affects the entire world. I do not think this one mistake will make people look away from the actual reality.

What about the allegations of financial irregularities in TERI?

I am again and again saying these allegations are false and TERI has not benefited at all in any way.

This is a big mistake. How can you escape responsibility after making such a Himalayan blunder?

First of all, you have not worked your fundamentals right. TERI was not at all involved in IPCC assessment report.

But was not Syed Husnain a senior fellow at TERI?

You should check your facts. At the time his report on Himalayan glaciers came out, he was working with Jawaharlal Nehru University and not with the The Energy Research Institute. He was working with us for the last two years only. Whatever statement he made about the glaciers was made much earlier than his association with TERI.

There are other mistakes too in the section….?

(Cuts in)…Yes, there is a whole paragraph and we have put it on the IPCC website. We are trying to adopt more robust practices while carrying out fifth assessment report. However, there is no question of taking action against any of the authors as they are not employees of the IPCC.

It is amply clear from the mistakes in the fourth assessment report that processes are not perfect. Now, the work for the preparation of fifth assessment report is going on. How will you ensure such mistakes are not repeated this time?

You cannot generalise on the basis of one mistake. Our procedures are very robust and all we need to do is to adhere to implement these procedures. We have clear-cut guidelines. That’s how we include information from other publications. Unfortunately, this is a failure on the part of IPCC in the fourth assessment report and all we can do is to reassure people that such mistakes will not be repeated in future.

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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

New wave of revenue-generation streams that have suddenly gripped Bollywood!

Big brands like Big B (reportedly charged Rs 1.5 crore per episode for anchoring “Bigg Boss 3”) or SRK (alleged to have taken home a whopping Rs 40 crore for anchoring “Kya Aap Paanchvi Pass Se Tez Hain?”) are likely to shoo away Banerjee’s views. So are stars like Salman (Rs 89 crore for season one of “Dus Ka Dum”) or Ajay-Kajol (Rs 10 crore combined for judging “Rock-N-Roll Family”). Even forgotten actress Urmila Matondkar scooped up a cool Rs 7.5 crore for judging “Waar Parriwar”. On the anvil are out-of-work star Preity Zinta, reportedly offered a cool Rs 10 crore for a show entitled “The Preity Zinta Show”, where she will interview/chat with her celeb, B-town friends. Also, the red-hot Bipasha Basu was allegedly signed by SRK’s Red Chillies to anchor a show on the lines of "America's Next Top Model". Payout? Rs 65 lakh per episode!

Wait, there is more! In these insanely glamour-driven times, where everything Bollywood-specific is hugely in demand, stars drive… everything! It’s only natural, hence, that stars leverage their marketability across every conceivable revenue generating avenue. So, enter concerts, weddings & special appearances! King Khan, demands, and gets, anything between Rs 1.5 crore to Rs 3 crore, depending on what he is required to do. Whether it’s hi-ticket affairs like Lakshmi Mittal’s daughter’s wedding or real estate hot-shot Kanti Govani’s wedding, SRK is a must. If he is required to grace his presence right through, covering all the functions, the payout is said to be a gigantic Rs 12 crore! Next in line are Salman Khan (Rs 1 crore) Katrina Kaif (Rs 80 lakh) Govinda (Rs 70 lakh) and Lara Dutta (Rs 30 lakh). Saif, Ranbir, Deepika, Imraan & Asin are also said to be in the Rs 50 lakh bracket for special appearances. Small-timers too are leaping onto this bandwagon! Malaika Arora, Celina Jaitley, Dia Mirza, Rakhi Sawant & Isha Koppikar also stand to pick up a cool Rs 10 lakh for an item ‘jig’. Can’t afford it? Not to worry. The likes of Koena Mitra, Preeti Jhangiani, Sanober Kabir, Payal Rohatgi and gang come between Rs 5-7 lakh.

The moolah is there, all the way. The gorgeous Katrina Kaif was offered Rs 1 crore to perform in a Mumbai 5-star hotel last year. This year, reportedly – due to her No.1 status – she’s been offered double the amount for a 10-minute jig! She was also said to have been paid a cool Rs 80 lakh to – you’re not gonna believe it, guys – wave at the crowd at a recent concert in Dubai! A Rs 67 lakh paycheck also came her way for a 30-minute performance at a farmhouse in Delhi.

The other sizzler, Bips Basu, was said to have been offered a sexy Rs 90 lakh to greet last year’s New Year at a Mumbai 5-star hotel but she refused because of 26/11. This year she is supposed to have been offered an even larger fee, to which she agreed. Neha Dhupia, Udita Goswami, Tanushree Dutta – all pick up anything between Rs 5 lakh to Rs 20 lakh to do their assigned and special routine/number. Oh, how can one forget the deadly Mallika Sherawat? She reportedly took home the big one – Rs 3.5 crore for a jig!

TV appearances, ad endorsements, weddings, concerts, special appearances... Big (even small) stars are flooded with revenue generating avenues from a Bollywood-crazy planet! Jai Bollywood!

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Source :
IIPM Editorial, 2009


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

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Friday, February 05, 2010

A recess from work!

Learn priceless lessons for life as you teach the lesser privileged children and work at making inequity in education history...

Having previously taught primary school children, I am particularly inclined to indulging them and endlessly listening to them prattle. Once, as I observed two innately sharp and eager kids from two different economic strata of society, it dawned on me how our country’s misdeeds (towards an ever-widening educational inequity) were limiting the growth of lakhs of bright children. For while the 8-year-old Sudhir (a helper’s child who went to a government-run school) was as witty and keen as the same-aged Sarah (a financial consultant’s daughter studying at a ‘reputed’ public school with world-class standards), his lack of exposure to the learning experience as hers (despite the same education board), had exponentially widened the gap between their respective banks of knowledge, apart from also impeding his ability to grasp new concepts.

Though this existing system of education can’t be turned around in the short-run, an innovative initiative – Teach for India – formally started in 2008 by a group of young leaders, shows promise of bridging this educational inequity. Inspired by the success of Wendy Kopp’s Teach for America initiative, and the positive results of the study carried to learn about the feasibility of similar implementation in India, the organisation is recruiting ‘outstanding college graduates and young professionals’ for its full-time two-year Fellowship. ‘Committing two-years to teach full-time in under-resourced schools’, these fellows are trained to become successful teachers and leaders.

While such exemplary initiatives clear off the hurdle of requiring mandatory degrees and qualifications for imparting knowledge, there are a growing number of recession-hit stressed professionals across the world who are increasingly seeking solace and satisfaction in teaching courses and jobs.

A recent study by a UK-based school workforce training organisation TDA, (Training and Development Agency for Schools) found that enquiries for teacher training have gone up by 50%, that too by people with banking, legal, architectural and management backgrounds. The research found that most people do not anymore consider holding a high-status management job as important, but are looking for meaningful work with manageable stress-levels, which allows more time for pursuing leisure activities.

In India this trend is quite common among women, though for different reasons. Reema, a primary school English teacher in Delhi says, “I have done my MBA from Symbiosis, Pune and have worked as an HR professional for long. But my growing-up daughters needed more of my time and I couldn’t handle the pressure of running the house with a managerial job, so I opted for teaching. Whatever were the reasons, today, I think, I go back home with a sense of accomplishment and not stress about tomorrow’s schedules.”

Though majority of India’s education sector would continue to see this trend of bias for teaching profession, there are a growing number of World Schools that are hiring people who can blend their experience and team management skills with academic knowledge. But such schools too are only for the privileged few. For improving young lives like that of Sudhir’s, we need more Indians to come forward for initiatives like ‘Teach for India’, so that the rest of India can also be privy to world-class educational standards..

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Source :
IIPM Editorial, 2009


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

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Tuesday, February 02, 2010

Methodology

A quick run through the two phases of the 2009 B&e-Icmr B-School survey

First phase:


ICMR prepared an initial list of 150 B-schools in India that have been providing full-time management course for at least the past three years and which were also the most-recalled amongst the student fraternity (sample size of 1500 students who are currently pursuing a management course, spread across five metros). This initial list of B-schools comprised both private and government-affiliated institutions. Subsequently, ICMR conducted a perception survey amongst MBA aspirants, management students (who are currently pursuing their MBA) and executives from the corporate world. The survey was based on the parameters of awareness, recall, legacy and image & perception. A sample of 5000 respondents was thus covered in the study across the cities of Delhi, Mumbai, Kolkata, Bangalore, Chennai, Pune, Hyderabad and Ahmedabad, using a structured questionnaire. Based on the frequency of responses, the final list of top 30 B-schools (from amongst the initial list comprising 150 B-schools) was shortlisted.

Second Phase:The final ranking was based on the average of weighted scores per parameter (details below) given by the esteemed panel of experts. The respected panel of experts comprised Naresh Gupta (Managing Director, Adobe India & Senior Vice-President, Print and Classic Publishing Solutions Business Unit, Adobe Global), Dr. Sanjeev P. Sahni (Head, Strategic Human Resources, Jindal Steel & Power Limited), Girish G. Vaidya (Director, Infosys Leadership Institute), V. Balakrishnan (CFO, Infosys Technologies) and Dr. Brian W. Tempest (Former CEO, Ranbaxy & current Chairman, Religare Hichens & Harrison Plc. and Chairman, Advisory Board of Lancaster University Management School, UK). Each panelist was provided with the write-ups (sent by the participating B-school) and detailed secondary data generated by ICMR for the 30 institutes based on the following parameters:

Quality & Volume of Course Contents; weightage:40%

Quality & Volume of Industry Interface; weightage:15%

Quality & Volume of Research & Writings; weightage:15%

Quality & Volume of Global Exposure; weightage:15%

Placement & Packages; weightage:15%

It is important to note here the weights given to the parameters in question. We firmly believe that the most important factor for any B-school to be ranked upon has to be necessarily its course contents. This factor is what differentiates the world’s leading management institutions from the also-rans. No amount of teaching, interface, exposure is helpful unless the course structure is world class – and that is the reason why this factor has been given a 40% weight by us, while all the other factors have been assigned a weight of only 15%.

We would also like to specify that the parameter of infrastructure has not been considered for the survey on B-schools due to two primary reasons. Firstly, above a threshold standard infrastructure level, providing many more acres of land, multiple computers per student et al does not add any significant additional value to the education of the management student. Secondly, the thirty B-schools shortlisted have already qualified well above the threshold level of infrastructure required.

Information material and various secondary study reports were provided to the panelists by ICMR researchers. At the same time, these study reports were supported by primary data and essays received directly by ICMR from the shortlisted institutes. The final scores provided by the panelists have been converted into relative ranks for each parameter, and overall too, for the reader’s benefit.

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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 01, 2010

Be it the Corolla Altis, Innova, Land Cruiser or Prado, all of them are considered as benchmarks in their respective segments by many. P. S. Chowdhary, Head-Marketing, LML asserts, “Toyota and Honda are the best in the business of automotives worldwide and similar is the case in India.”

India’s upmarket customers do seem to agree. Take the instance of the Fortuner, the latest entrant in TKM’s stable. Fortuner has already got a mind boggling 7,000 advance bookings, surpassing the anticipated figure of 5,000, forcing Toyota to raise production to 600 units a month from the 500 units decided earlier. But the company has been able to deliver only 1,000 in the first two months since the launch and TKM has in fact closed bookings for the upcoming six months. The company has a target of selling around 1,800 units in the current calendar year and around 2,000 units in 2010. “Toyota Fortuner has got an overwhelming response in the Indian market and has the potential to become the market leader. However, the long waiting period due to the capacity constraints may turn down some buyers,” explains Sandeep Singh, Deputy Managing Director-Marketing, TKM.

However, when one looks at overall market share, the company takes a back seat. Since the segments that they operate in are low-volume driven themselves, reaching the ranks of the top five in the country is still a pipedream. Akira Okabe, Senior Managing Director, Board Member, Toyota Motor Corporation avers, “TKM is a baby when compared to giants like Maruti Suzuki in the country.” The basis of the statement surely has deep roots as the company sold a meager 46,892 units at the end of FY 09; registering a negative yoy growth of 15% as compared to the 7,00,000 units by the Indian market leader in the same period with a growth of 1.5%.
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Source :
IIPM Editorial, 2009


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