The textual mistake!

School textbooks are full of errors about Indian states

“India's formal education system is failing and government school system is failing - government is not delivering the goods.” This concern was voiced by India’s Chief Economic Advisor, Raghuram Rajan after witnessing the apathy toward the education system of our country.

Education starts at the primary level, but the dismal performance of our students at this level is a testimony that there is a need for an overhaul of our education system. In its seventh Annual Status of Education Report, NGO Pratham had revealed that “more than half of the students in class V in rural India cannot read the text taught in class II in 2011.” This study clearly proves the pathetic quality of elementary education in India.

There is a great need for the Indian government to work on the educational front. With this in mind the ‘Right to Education Act’ was passed in 2010 to improve our creaking school system. But along with the government, our education bodies too have an important role to play as a change agent and social architect, who give importance to upliftment of the education standard in our country.

The credibility of our education bodies has already been compromised with cases of factual errors in printing and biased presentation in board text books coming to the fore. A case in point is the exclusion of Arunachal Pradesh from India’s map in Maharashtra’s Class X Geography text book and the omission of Lakshadweep and Andaman and Nicobar islands from the political map in the Class 10 history textbook. Of course, China’s claim on Arunachal Pradesh as its own must have got a shot in the arm by this exclusion. These incidents have beyond a doubt weakened our international stand as far as the unity and integrity of the nation is concerned.

Former Minister of State for Human Resource Development, Rita Verma admitted in Rajya Sabha that four NCERT history school textbooks contained factual errors and biases. Several reports highlighted that as many as 50 errors were detected in NCERT textbooks. Such cases of textbook errors are being reported from every state. Gujarat government failed to keep their promise of delivering error-free textbooks for Gujarati-medium students of government primary schools in the state, even as they gear up to begin their new academic session from June 1. Currently, 6-7 crore copies of old text books with wrong contents and errors are available in Gujarat.

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA

Is Apple losing the plot?

Angry investors and bad press have done Apple much damage. Can CEO Tim Cook do anything to pump some pride into what was until recently a mammoth $658 billion-worth corporation? By Steven Philip Warner
Five months into his tenure at Apple, Tim Cook invited a select group of Apple’s shareholders at the company’s conference center at 4 Infinite Loop building. The idea was to get those investors to understand the company and its new CEO better. In their few and many years as Apple investors, the shareholders had never believed, seen or heard of a calm Apple CEO. Jobs wouldn’t have bothered to entertain a lot of dozen-odd investors, out on a ‘bus tour’ of Apple’s campus. That summer (in August), Apple became the world’s most valuable public company ever (with an m-cap of $623 billion), beating the previous best of $620 billion set by Microsoft in 1999. But that’s when the dream ended.

The past half-a-year has earned Cook a bad name. Today, Apple is battling where it used to crush.


Disappointing reviews of its new launches – MacBook, Siri, Apple iMap – and some grossly misguided HR strategies (like the hiring of John Browett as Head of Apple’s Retail business and his firing in 9 months flat, and the firing and rehiring of Scott Forstall, the man behind the Siri and iMaps fiascos and one who was responsible for failing to make the iOS 5 and iOS 6 seem upgrades to the previous iOS versions) have weighed heavy on Apple’s stock price.

Cook is trying hard to regain lost ground. What is not true is that Apple is dying soon. Each day of his tenure, Cook has added $117.33 million to Apple’s m-cap. In the six quarters gone by, the company has reported a growth in its quarterly revenues and earnings on a y-o-y basis. The topline achieved in the most recent quarter ($54.51 billion; Q1, 2013) was the highest ever in the history of the company. In his year as CEO (FY2012), Apple’s revenues grew 44.58% y-o-y to touch $158.51 billion. Good numbers.


Cook realises that he has made mistakes. If the Siri and Apple Maps were jokes, the launch of the more expensive, thinner iMac, and the iCloud (that works only as well as Maps does) are areas where Cook will have to reinvent.

The form factor and lack of innovation with the iOS 6 introduced on the iPhone 5 and the hardware of the iPhone 5 are two other chapters from which he could dig out a lesson or two. Cook needs to understand that on the OS front, it has to fight with open source forms. One bomb is Android. So what should Cook do? In more ways than one, under Cook, Apple needs to open up. Within 12 months of his becoming CEO, Cook launched the 7.9-inch iPad mini that was 33% smaller and priced about 25-40% less than the iPad. Result? In Q1, 2013, the iPad mini outsold the original tablet 3:1. Today, tablets contribute to 20% of the company’s topline. The same magic needs to be repeated for the iPhone. This needs introduction of larger screen phones and lower-priced models that would give the company more market power in fast growing telecom markets like China and India. There is more to the introduction of the low-priced iPhone – a move that would prove beneficial for Cook and the Apple stock. The low end iPhones that Apple would deliver would call for margins of about 38%. That would be lower than the current 50%-levels that this category contributes, but would have dual benefits of making the company competitive in a tough environment and not dilute earnings at the same time. The right thing for Cook to do would be to introduce such a mid-range quality product at the $320-$340 price range (a low-cost 3G device, with at least 8GB of memory and a hardware similar to the iPhone 5). The low-end iPhone would be an indication if his claim is true.

Additionally, such an introduction would give rivals sleepless nights. As per Credit Suisse, this introduction would also help the iOS capture 40% share in the $300-$400 market. If Cook delivers the low-priced handset soon, when Gartner comes out with its market share findings in Q4, 2013, Apple’s share amongst smartphones will read between 24-28% (currently 20.9%).

In December last, of the 60-plus analysts covering Apple, only one rated Apple’s stock ‘Short Sell’ (as per Bloomberg data). Cook knows that most in the investor community believe it when they hear the sky is falling. It’s over $400 billion-plus in value he puts to risk each time. Cook cannot underestimate competition from Samsung – which is the smartphone leader today and threatens Apple’s dominance in smartphones. Its Galaxy S IIs, S IIIs and the newly launched S4 and the Notepads are ways for the users to consume larger screen phones. Apple could also replicate the Note’s multi-window home screen. It has been Samsung’s best user interface to date. It wouldn’t hurt Apple.

On the OS front, there is much work to be done still. Working along the lines of offering fresh user interface skins with each OS released, offering services web apps (to users who want to access Facebook or Amazon, or YouTube, rather than having to get into the App Store each time), or even doing something similar to Microsoft’s Live Tiles interface (that provides updates from web services to users without bothering to open apps) could be a start. Cook has to self-disrupt the closed world of iApps to an extent.

Finally, there is a big PR problem that Cook has to deal with. And it all starts with flamers and fanboys offerings concerns about Apple’s lack of innovation. At present, Apple spends the least on R&D and absolute terms amongst all bluechip Silicon Valley giants. It spent 2.2% of its topline on R&D in FY2012, as compared to Google, Cisco, Microsoft & Oracle – all of whom spent in excess of 10% of their revenues on R&D. Cook could divert a couple of billion dollars more into his labs and avoid another Maps or Siri debacle.

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face

BBA Institute

The new buzz word in Motown: Affordable luxury

 The Indian automobile industry is facing one of its toughest periods in over a decade. In the period between April 2012 and February 2013, the industry registered a negative growth of -4.64% in the passenger cars segment. Sales of small and medium automobile segments are slacking off, which is in sharp contrast to the scorching pace of growth witnessed till a couple of years ago. Between FY2005-06 and FY2010-11, passenger car sales blazed at 15.2% per annum. That fell to 4.7% in FY2011-12, before languishing this past financial year.

The only silver lining has been the luxury end of the car market, which has been an exception to this anaemic trend. While the overall passenger vehicle industry has grown at a CAGR of 19.04% in the past four years, and the luxury vehicle segment has grown at a CAGR of 32.02% during the same period. Currently, of total car sales of 2.5 million, the luxury segment contributes only 1.2%. But the segment has been growing steadily over the past couple of years and is expected to contribute 4% of the total car sales in the next eight years. Experts believe that demand for luxury cars will rise to at least 50,000 vehicles by 2015, from 25,000 units sold in 2012.


Mercedes-Benz, which came to India in 1994, was the largest seller of luxury cars in India till a couple of years ago when fellow German rival, BMW, beat the company to the numero uno position in 2009. That year, Mercedes recorded 3,202 units in sales whereas BMW sold a good 3,587 units, topping the sales chart. Audi, which was then just making its presence felt in the Indian market, registered 58% of whopping yoy growth in 2009, selling 1,987 units. Since 2009, the competition has gotten more intense and scalding hot. The German players have been at each other’s throat, straining their muscles to outperform in the competitive luxury car market, which has grown thicker with the entry of newer players like Volvo and Jaguar Land Rover.

On one hand we have the entry level luxury brands like BMW, Audi, Mercedes and Volvo; on the other hand there are the mid-level luxury brands like Jaguar and Land Rover (starting from about Rs.5 million) and then there are the ultra-luxe brands, some of the biggest names in the sports car and super luxury segment, like Bentley, Lamborghini, Rolls Royce, Ferrari, Aston Martin, Maserati and Bugatti. The arrival of these big guns in the Indian market over the past two years has further redefined and segmented the luxury car market. So we now have the entry-level, mid-level, super luxury, sports cars and SUVs. Another key trend in this luxury space is the sudden upsurge in the entry level cars starting as low as Rs.2.2 million.

The trend was kicked off with BMW launching its X1 SUV model and lowering the entry level of its luxury cars to about Rs.2.2 million (ex-showroom). The idea is to generate volumes and so players like BMW are launching new products in the affordable luxury segment, where the demand actually is. In the process, the traditional luxury segment has now morphed into the premium category with most luxury car makers moving towards affordable luxury. In order to vroom ahead in this new “affordable luxury” category, BMW has introduced its sub-brand Mini Cooper, which it introduced at last year’s auto show in Delhi. It is planning to launch three models of this sub-brand in India − Mini Cooper, Mini Cooper convertible and Countryman, priced aggressively between Rs.2.49 million to Rs.3.19 million. Rivals Audi and Mercedes have also taken steps to create excitement in the entry level luxury segment. Last year saw Audi introduce its Q3 model (priced at Rs.2.67 million) while Mercedes has launched its B-class priced competitively at Rs.2.10 million, which competes with BMW X1 (priced at Rs.2.24 million).

As the churn in the luxury car market gets thicker, players are pulling out all the tricks to stay ahead in the competition by creating new segments and looking for new markets to generate demand. “As we move into the future, we are well positioned with a forward-looking strategy, progressive roadmap along with an exciting and emotional portfolio to tap the available market opportunities,” says Philipp Von Sahr, President, BMW India. So, BMW is tapping the market for commercial use of luxury cars such as premium hotels and cab owners and has gone for selling the stripped versions of its traditional luxury cars to generate incremental demand.

Likewise, Audi is contemplating to launch several initiatives on the pro\duct front this year. It plans to assemble the entry level Q3 SUV, which is giving good competition to the BMW X1, in India by the second quarter of this year. The price of Audi Q3, which starts from Rs.2.6 million, is expected to come down further once Audi starts assembling the Q3 in India. The car maker at present assembles sedan A4, A6 and SUV Q5, Q7 in India. Even, Mercedes has plans for expanding its product portfolio. “We would be launching one or two products, starting this year, with a B-class launch. And soon we would be launching an A-class product as well. Secondly, we are investing heavily on production at our factories. We want to make our CKD (complete knocked down) units because it take 2-3 years to get the CKD portfolio ready,” says Debashis Mitra, who was Director, Sales & Marketing, Mercedes India, before quitting just a few days ago.

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year

BBA Management Education

A nation of tax dodgers?

India needs an immediate solution to the tax evasion problem

If filing tax to the government by an individual can anyhow be connected with the degree of patriotism of a person, India presents a dark picture to the world. The Revenue Department recently issued notices to 35,000 assessees who have failed to file I-T returns. Similar notices were sent a few weeks ago to an equal number of people. But the bigger shock was that among those 70,000, only 10,000 felt it necessary to disclose their incomes and filed tax returns in response to the letters. This is putting tremendous pressure on the Revenue Department, which has a target to generate revenue of Rs.5.65 lakh crore under the direct taxes category for the current fiscal year. Evading taxes is more of a norm than an exception in India. Everyone, starting from an individual to a giant corporation, finds it conevenient to cheat the government by evading taxes. This is why in spite of being a country of 120 crore people, there are only 3 crore people who pay taxes. How much does this evasion cost the nation and its economy?

Tax to GDP ratio is a very relevant indicator to understand the strength of an economy. Unfortunately, India scores poorly at it. While 70% of the nation’s income comes from income tax for developed countries, it is only 18% for India. Moreover, the direct tax contribution is 60-65% for rich countries while India gets merely 35%.

That is why India is termed as a ‘poor tax performance’ country, ranking at the bottom even among the BRIC nations in tax collections. However, all this dodging affects the economy severely. According to a research article published by Businessweek, India losses Rs.14 trillion ($314 billion) every year due to tax evasion. For the uninitiated, income tax rate has dropped down to 30% from 97.5% in 1971. In fact, the corporate tax incentives too are diluting our tax collection. For instance, states like Uttarakhand and Himachal Pradesh provide tax rebate for setting up manufacturing units. So many manufacturers open their subsidiaries in those states only to fully exploit the tax benefits. This way, India ends up losing Rs.800 billion every year.

Thus, the government cannot ignore the implications of revenue foregone as a result of tax evasion. There is a need for spreading greater awareness of tax payment. At the same time it has to show people that it is making the right use of the tax collected as people have lost faith in the government and have no idea how the money is spent.

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year

BBA Management Education

Brian Keith to Dave

The following moving love letter was written by American World War II veteran Brian Keith to Dave, a fellow soldier he met and fell in love with in 1943 while stationed in North Africa, on the occasion of their anniversary. It was reprinted in September of 1961 by ONE Magazine – a groundbreaking pro-gay magazine first published in 1953. The original letter is held by the Library of Congress.

October 27th, 1945

Dear Dave,

This is in memory of an anniversary — the anniversary of October 27th, 1943, when I first heard you singing in North Africa. That song brings memories of the happiest times I’ve ever known. Memories of a GI show troop — curtains made from barrage balloons — spotlights made from cocoa cans — rehearsals that ran late into the evenings — and a handsome boy with a wonderful tenor voice. Opening night at a theatre in Canastel — perhaps a bit too much muscatel, and someone who understood. Exciting days playing in the beautiful and stately Municipal Opera House in Oran — a misunderstanding — an understanding in the wings just before opening chorus.

Drinks at "Coq d'or" — dinner at the "Auberge" — a ring and promise given. The show 1st Armoured — muscatel, scotch, wine — someone who had to be carried from the truck and put to bed in his tent. A night of pouring rain and two very soaked GIs beneath a solitary tree on an African plain. A borrowed French convertible — a warm sulphur spring, the cool Mediterranean, and a picnic of "rations" and hot cokes.

Two lieutenants who were smart enough to know the score, but not smart enough to realize that we wanted to be alone. A screwball piano player — competition — miserable days and lonely nights. The cold, windy night we crawled through the window of a GI theatre and fell asleep on a cot backstage, locked in each other’s arms — the shock when we awoke and realized that miraculously we hadn't been discovered. A fast drive to a cliff above the sea — pictures taken, and a stop amid the purple grapes and cool leaves of a vineyard.
The happiness when told we were going home — and the misery when we learned that we would not be going together. Fond goodbyes on a secluded beach beneath the star-studded velvet of an African night, and the tears that would not be stopped as I stood atop the sea-wall and watched your convoy disappear over the horizon.

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA

Book Review: The Armies of South Asia

Gung-ho in the Neighbourhood

The economic surge in Asia has been discussed for long. But, there also has always been another aspect attached to South Asian matters. The effect of insurgency and terrorism has not let the economic growth to pan out across the spectrum in the region. Sri Lanka could come out of the civil war after a protracted conflict, Pakistan is yet facing the violent results of its nurturing of religious terrorists, and Afghanistan is mired in a state of total collapse with the international community scrambling to extend support to run the country.

Simultaneously, the other countries are affected similarly. Nepal is struggling to keep the democratic government running with the Chief Justice agreeing to run the ‘election government’. Bangladesh has often been witness to political violence, which has been a major challenge to the socio-political stability of the country. Maldives is in the grip of the politics of vendetta.

The countries in the region are in different stages of the national evolution and so are their key governing institutions. The armies of the countries mentioned above have been playing an active role in these conditions. Although a glance of the Title might let a reader believe that this would be another attempt to pitch the arms and systems and show the graphic representation of India being the strongest. But, nothing can be as wrong as this.

It requires mentioning that once a reader begins, he/she will find the title suitable. This book is an attempt to give the readers a fair idea of the genesis of a strong tool, Army, in the seven countries it has covered. The chapters are country wise and each chapter begins with the security environment of the country. The chapters on each country has information about the security environment and the geopolitical and strategic significance. It moves ahead with the geographical terrain and the respective country’s threat perceptions.

With issues related to security coming to the fore in recent times, the Armies are often in the news. This might generate a lot of questions like will the army take over, will there be a rise in the radical elements within the forces? Here, in the book, one can find issues like structure, civil-military relationship, their recruitment, training, weapon sources and also the future prospects.

In encompassing so much, it demonstrates a thorough knowledge of the country. By reading the chapters one can surmise quite clearly that they have all the important information. The highlight is that country experts, people who have been monitoring developments in the specific countries, have been brought together for this highly informative volume.

Another good point is that this book has not served as another addition the attempts to overlook the negative perceptions about India and its role, which comes out at times. The introduction serves the purpose of placing everything in perspective and is mentioned under the heading ‘India Challenge’. It reads, “The negative perception of India in most of the neighbouring countries, despite India’s sustained confidence-building measures and several unilateral economic and political initiatives, seems near constant.” The above lines from the book on the one side arouse the reader’s interest and sets the stage for an objective assessment of the role of the Army of the respective countries and also to get an understanding of the perception which rests in the minds of the people across these nations.

Every chapter has its own interesting articulation. As in the chapter on Bangladesh, the writer mentions, “Not only does it (Bangladesh) carry the historical baggage of an inherited strategic culture of Pakistan that has been traditionally anti-India, but also the perception of repatriated soldiers and officers who later formed the bulk of the Bangladesh Army.” While, on the one side it is talking about the composition which formed the officers and men of the Bangladesh Army, it also makes a person understand that one needs to approach such issues with sensitivity.

Every chapter has information about the force organisation, which is interesting. The chapter on Pakistan mentions, “In 2006, the government (Pakistan) set up separate commands in its three services equipped with nuclear weapons and missiles capable of retaliating for any first nuclear strike.”

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year

BBA Management Education

The Indo-Uzbek tango

A primer on how Uzbekistan’s affirmative relationship with India and the future

The Uzbek-Indo relations trace back many years. They were always based on mutual respect, appreciation of regional and global role, as well as a common cause to enhance bilateral ties in all fields of interest. In Uzbekistan, we have a strong feeling of admiration and respect for India’s great contribution to the history of mankind through its ancient and marvellous civilization.

Recently, on January 26th, India celebrated the important holiday – The Day of the Republic. At that day of 1950, India adopted its first Constitution, which has laid a foundation on the principles of democracy and secular country. The Constitution was juridically a well-drafted document and it combined all the needs of Indian society. This important detail confirms that the Constitution stands as a guarantor of political stabilization in the country. During more than 60 years of independence, India has excelled in all spheres, such as economy, politics and social reforms. Nowadays, the Indian economy is on a high growth trajectory and is also the second fastest growing economy in the world.

At the moment, India makes its own satellites and launches them; it has progressed in spheres closely associated with exploration of space and has started up several atomic nuclear stations to provide its population with electricity and power. It should be noted that all aforementioned economic and social reforms, as well as achievements were reached only in a democratic way. India aspires to develop peacefully, since there weren’t any significant revolutionary changes and social clashes.

In this light, the significance of the mutually beneficial cooperation with South Asian countries, particularly with India, in the framework of fostering regional security has been repeatedly underscored by the President of the Republic of Uzbekistan H.E. Mr. Islam Karimov.

India’s leadership among South Asian countries, thanks to a number of objective geographical, demographic and economic parameters, is bolstered by its active regional policy. India’s position on ensuring political stability in South Asia has a significance for all dimensions of regional security

Now, India is one of the most worthy partners of Uzbekistan. Every year, Uzbekistan’s relations with India have been progressing – this is also because there has been historical friendship between the two nations. The high-level mutual visits are frequent and political trust and friendly cooperation is on the rise. India is closely associated with Uzbekistan historically and culturally. The world recognized India as one of the cradles of civilization, appreciates its ancient philosophy and rich culture. During several high level visits in these decades, the two sides discussed a number of issues such as extending bilateral partnership, talked about international and local conflicts, regional security and providing stability, struggle against terrorism and extremism.

At the moment, Uzbekistan and India have established a solid juridical base between the two countries. It consists of more than 70 interstate, intergovernmental and interdepartmental agreements. There is an exchange of many cultural, economic and other delegations regularly between parliaments and governments of India and Uzbekistan.

On November 29, 2012 in Delhi, the sides held a round of political consultations between the delegations of ministries of foreign affairs of the Republic of Uzbekistan and India. The sides discussed the realization of bilateral agreements signed in the framework of the State visit of the President H.E. Mr. Islam Karimov to India in May 2011.

In May 2011, President H.E. Mr. Islam Karimov paid an official visit to India and the two sides signed a list of agreements which provides for and ensures the development of a long-term constructive partnership. It has served as a grand milestone in the history of the bilateral relations, and means that the Uzbek-Indo relations have entered a new stage of development. And it clearly shows that the two sides have a common wish to develop the friendly cooperation.

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Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA

Lights.. Camera.. Dance!

choreographer-turned-director, Remo d’souza, had always dreamt of nothing but making every foot tap to the music. his latest f lick, any body can dance, says and portrays pretty much what he has always believed. in conversation with Pratishtha Malhotra, remo shares stories about bringing his passion alive…

From the time of its promos, ABCD was rumoured to be the Indian adaptation of Step Up. Did that preconceived notion about your film bother you?
People just see one visual and tend to say things like ‘Ya it’s a copy of Step Up.’ But those who’ve seen the film would know that not even one scene is anywhere close to Step Up. It is totally an original story, my story. Yes it’s a dance movie shot in 3D and Step Up was also a dance film shot in 3D, but that’s the only similarity. You can’t compare them. Yes, dance is there but the story is different; the characters are different. It’s a totally new movie. You can’t say that it’s a direct rip-off of Step Up.

After FALTU, how did you come up with the idea of making a dance film?
Yes, just because of that. This idea was there before I made FALTU. I always wanted to make a dance film, even before Step Up had come. Since I started dancing, I always thought that if I ever get a chance I will make a dance film.

Musicals and dance films are new concepts for the Indian audience. Was it a huge challenge scripting a film like this?
Correct. This film is not only about dance. That is the biggest difference between Step Up and my film. In Step Up (except Part One), they don’t have a strong storyline. I have a very good storyline, which is told through dance. I know it looks like just a dance film, but it has got an emotional story weaved into it. Dance will look good on its own, but if you have a little story to that dance, it’ll attract you. That’s how I hoped people would get engaged to it..

Indian films in 3D have yet not fared as well as Hollywood films. Were you wary of this fact too while making your film?
We have had few Hindi films that were shot in 3D. I won’t say that they were shot badly but, yes, the equipment was not up to the mark. What I did is that I made sure to get the best equipment and the right technicians to shoot. The technicians who worked on Pirates of the Caribbean and Step Up 3 were with me on this film.

With films like yours are you hopeful that the perception of dance, which is considered just another hobby in our country, would change?
(Smiles). In my films I have always wanted to give a little message, nothing preachy, but just a small message. I did that in FALTU as well. In this film also I have given the message through the title that ‘Any Body Can Dance’. You don’t have to be born a Michael Jackson to dance.  Coming to the profession of dancing, I think the perception has already changed and you can see that in reality shows. People happily come to me with their kids and say, ‘Sir mere bete ko aapke jaisa dancer banana hai (I want my son to be a dancer like you)’. That is such a big thing for me because I would never see somebody say that I want my child to be a dancer. Everyone always wanted their child to be a doctor, lawyer or an engineer. Now I feel very proud and it feels very good when people say dancer banana hai.

How was it working with Prabhudheva? Were you nervous or excited?
I was excited, not nervous. I knew that I have a very good story. I told him that I want you to do it and if you don’t do it, I don’t see anybody else doing it. So he heard the story… well, not even the story. He heard the idea actually. Before writing the story I just went to him with the idea that this is what the film is about and he instantly said ‘yes’. Then I wrote the story, went back to him and said this is your character and he said ‘ok’. I wanted to start shooting right then. He was shooting Rowdy Rathore at that time so he juggled between my film and Rowdy Rathore. I was very excited to direct a dance film with Prabhuheva in it.

Also, I had about 50 choreographers working on my set, on camera and behind the camera. I could only see all choreographers around me. It was fun. We shot the whole film in 67 days, which is a record time. Nobody has ever shot a 3D film in 67 days.

Read more.....

Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
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Fanatics and hypocrites

Afzal Guru's hanging showcases phony drama, crocodile tears and genuine grief. Aditya Raj Kaul paints an evocative picture

“We all are Afzal”, read a poster held tightly by a JNU Kashmiri Muslim student at a hurriedly-organised protest march by pro-separatist and ultra-leftist groups in New Delhi’s Jantar Mantar, hours after Mohammad Afzal Guru, key conspirator of the attack on the Indian Parliament in 2001, was secretly executed at Tihar Jail on February 9.

The air was full of anger, betrayal and fury. ``We won’t forget our martyr”, proclaimed a poster held high by a Kashmiri girl in a veil. By the time the protest was dispersed by the Delhi Police personnel, Guru’s last rites had been carried out inside Delhi's high-security Tihar central prison and the Kashmir valley was clamped down under a curfew not seen since the tense summer months of 2010.

Naturally, it was a busy day for all who have a stake in the omnipresent Kashmir story, especially in the Indian republic's capital – and there are many. While TV anchors tried to grab brownie points by determining the timing of when Guru had been informed about the hanging, a speed post was silently booked by the government at the New Delhi GPO in the name of Tabassum, wife of Afzal Guru, telling her what the world already knew. Shockingly but not surprisingly, in this age of online mobility, the speed post reached Baramulla in Kashmir precisely three days after Guru’s death.

There is little doubt that the action on Afzal Guru has been carefully crafted in the run up to the 2014 General Elections. To stave off immediate repercussions in the valley, the government ensured that the three key vocal separatist voices in Kashmir were sent on guided vacations.

JKLF chief Yasin Malik, a self-confessed terrorist claiming Gandhian lineage, was allowed to visit Pakistan to pay his in-laws a courtesy visit; eventually he sat on a hunger strike at the Islamabad Press Club against the hanging, in tandem with who else, but India's most-wanted terrorist Hafiz Sayeed, himself on a courtesy call to Malik.

Hurriyat hawk Syed Ali Shah Geelani, never happy with Kashmir's harsh winters, decided to stay put at his daughter’s Malviya Nagar home in New Delhi, as did chairman of the moderate faction of the Hurriyat Conference, Mirwaiz Umer Farooq, at his apartment in south Delhi's Kalkaji area. Both of them were under house arrest by the Delhi Police and all efforts to reach them by TSI have so far remained fruitless.

While India’s liberal elite mourned the death of a man who they called victim of a “flawed judicial process”, the right-wing swung into action as only they can - by a liberal distribution of sweets and an even more liberal thumping of chests. The BJP, woken up from its slumber and rounds of internecine warfare, stood with the government, but added a caveat saying the hanging was `12 years too late'.

The National Conference (NC) and the People’s Democratic Party (PDP) – both in direct line of fire -  decided to act outraged, accusing New Delhi of acting in haste without realising the negativity it would generate amongst the Kashmiris. The PDP national spokesperson was seen empathising with the family of Afzal Guru and warning New Delhi of further `alienation' of Kashmiris from the Indian mainstream.

As for the oratory skills of Kashmiri analysts and politicians of all shades, their opinions were most difficult to comprehend. Any TV debate, ended inevitably in a fish-market brawl, lacking logic and facts, high on decibel quotient and wholly suited to the demands of light and sound entertainment.

According to insiders, when much crocodile tears had been shed in the day time, a few among the moist-eyed separatists decided to hit a posh south Delhi restaurant known for its Kashmiri delicacies - listening to the famous Kashmiri singer Rashid Hafiz, who belted out one popular number after the other.

Exactly 29 years after Maqbool Bhat was hanged at the same place and about the same time of the year, it seems the central government has learnt no lessons. Bureaucrats at the Ministry of Home Affairs (MHA) seem to have simply copy-pasted the Maqbool Bhat hanging formula, denying the basic right for the family to even meet Afzal Guru.

While there may be wide-ranging similarities between Bhat and Guru, who amongst other commonalities, were recruits of the Jammu and Kashmir Liberation Front (JKLF) and were trained in arms across the border in Pakistan, the UPA government has left no stone unturned to make Guru a martyr for the separatist plank of azadi. The babus of MHA, generally known to engage separatists cleverly, have provided fodder to the virtually dead spectacle of the separatists. Separatists cheerleaders are now crying hoarse from their comfortable bungalows in New Delhi. Afzal Guru, they believe, will be the new Che Guevara - if not in spirit then on on t-shirts.

Among other things in question is the legal representation given to Afzal Guru by the state, even though the two-man Supreme Court bench of P. Venkatarama Reddi and P.P. Naolekar found “no substance in this contention”. The same apex court had earlier acquitted Delhi University professor S.A.R. Gilani of all charges in the same case citing technical grounds.
“Those who are intervening in the campaign to save Afzal but have no commitment to Indian nationalism are not doing any service to his cause”, wrote Supreme Court advocate and human rights activist Nandita Haksar in her book ‘Framing Geelani, Hanging Afzal’. Her conclusions: “We must never underestimate the appeal of nationalism”. Even though she poignantly remembered and wrote about the sufferings of a prisoner accused of ‘waging war against the state’, the reflections were convoluted with anger, raw emotions and a discourse which few could identify with.

A pusillanimous campaign now underway, instead of demanding reform in criminal laws, continues to question the Indian state’s position on Kashmir. Those postulating over the Kashmir issue may do some good by asking local Muslims to internalise on who they strive to be with – a crumbling nation crippled by internal strife or a country which stands for secularism and diversity.

A debate within the stakeholders on Kashmir is need of the hour. Not necessarily the Aman Ki Asha model, neither the misnomer of Kashmiriyat, nor even meetings like those organised annually by Dr. Ghulam Nabi Fai in the Capitol Hill, United States, where he invented reasons to abuse India till he was arrested by FBI on charges of being a Pakistani spy. Interestingly, his list of invitees included reputed names from the Indian media, think-tanks, analysts and of course the separatists.

In the wake of a threatening attack on the first-ever girls rock-band from Kashmir, Pragaash, and an acid attack on a Kashmiri girl which went almost unnoticed and unreported, the debate becomes vital. “I do realize and regret that due to us (Kashmiri Muslim terrorists), Muslims in the rest of India get a bad name”, said Afzal Guru in a confession aired on TV channels soon after he was apprehended in 2001.

The tragedy of intolerance developing in the Kashmiri society, fashioned no doubt by some excesses of the Indian state, is best understood by a Kashmiri axiom ‘anyem soi, wavem soi, lagem soi panesei’, or ‘as you sow, so shall you reap’.
Thanks to the government's mishandling of Guru's hanging, it may become an issue of debate and in his death, he may well emerge as the new poster boy of jehad. As Jammu and Kashmir Chief Minister Omar Abdullah put it, the new generation of Kashmiris "who may not have identified with Maqbool Bhat will identify with Afzal Guru”.

Aiding and abetting this sense of alienation are celebrity fiction writers like Arundhati Roy, who remarked famously at an event to discuss Freedom in October 2010 at New Delhi, ``bhooka nanga Hindustan, jaan se pyaara Pakistan’ (hunger-stricken and naked India, Pakistan more beloved than life). To prepare such a dangerous cocktail for her Kashmiri brethren in the garb of liberal discourse only does disservice to the idea of human rights and justice. The hollowness of the leftist diatribe, if not put under introspection, may end up aping right-wing fanatical rhetoric and that is not good news.

The Indian government may now not just have to open its arms but ears as well by listening to the genuine voices of estrangement coming from various sections of Jammu and Kashmir. The farce of a round-table dialogue which will decide the date of next meeting, does not demonstrate serious engagement.

In the days ahead it would be a challenge for the Indian government to contain terror groups from expanding and operating through sleeper cells, as happened months and years after the hanging of Maqbool Bhat in 1984. The judge who delivered the verdict, Justice Neelkanth Ganjoo, was mercilessly killed by suspected JKLF terrorists soon after.

Bhat, who was one of the first from the JKLF to cross the Radcliffe Line for training, could well inspire others to do the same; attempt a violent uprising in the name of religion and ensure a recipe for disaster. After all, terrorism, which spread like gangrene, did not mrerely dent Kashmir, it expanded its base  to all corners of India, most notably the attack on Parliament in 2011.

Read more....

Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

IIPM Global Exposure
IIPM Best B School India
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She leaves behind a legacy

A rock star diplomat, she crystallised her image of pragmatism

Hillary Rodham Clinton stepped down as the 69th United States Secretary of State on February 1, 2013. If someone suspects that the termination of Clinton’s term in the office was  designed with a motive of backing a wrong horse, it would be a gross mistake. It has been the trend line throughout the American presidential history (be it Collin Powel in the Bush era or Warren Minor Christopher during Bill Clinton’s first term) to replace them after completion of their first term. However, ignoring political debate behind her termination, it would be interesting to see how effective she was.

In recent times, after the legacy of Madeline Albright, it was probably Hillary Clinton whose accomplishments are crystallised into an image of pragmatism and the cool glamour of America’s “rock star diplomat.” Getting down to serious business, her checklist of achievements is long. Her globetrotting capabilities that portended almost million miles of traversing did not go in waste – she engaged not only the traditional American allies but also seemingly God-forbidden countries such as Laos in the firm footing of US values. The values she advocated were not merely based on leveraging American geo-political missions but also on traditional planks like upholding human rights and human dignity. Her extension of unswerving support to Aung San Suu Kyi with the intention to stand by her struggle for democracy in Myanmar and rescuing the blind Chinese dissident Chen Guangcheng who took refuge in US embassy are cases in point of her strategy from a high moral stand point. The human rights abuses in Libya and Syria too were dealt with iron hands by the US where her role in convincing Obama for the actions cannot be undermined. Especially in Libya, it was Clinton’s role that turned out to be the watershed in the faceoff between the rebels and the Gaddafi regime. Her pivotal role in shaping strategies to deal with the battle ground map of Russia, China and Iran – where a judicious mix of calm and aggression presaged her high quality diplomatic aptitude. Che Guancheng was given sanctuary in US without disturbing the delicate balance of US-China relationship; while on the other hand, her tough posture on Iran was instrumental in slapping harsh sanctions on them. She also attained free trade agreements with allies like Panama, Columbia and South Korea – which shows the importance she attached to economy with respect to her foreign policy moves.

However, her failures should not be overlooked. She admitted her slip in the Benghazi episode, where speaking to CNN she said, “I take responsibility” for not protecting the American diplomat’s lives. This cracked her firewall and she conceded, “I want to avoid some kind of political gotcha.” Notwithstanding, another failure of her was her helplessness to convince Mamata Banerjee on retail reforms! More importantly, the Clinton-Obama relationship was more dubious even though mutually respectful.

Read more.....

Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face

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"We will introduce Verma panel recommendations in Parliament"

India’s Minister of State for Home RPN Singh, is a man in the middle of the action. The Home Ministry is the nodal government agency expected to devise and pilot steps to improve policing, which is under direct public gaze and court supervision. In an exclusive chat with Aditya Raj Kaul a month after the brutal Delhi gang rape, Singh talks at length on the steps undertaken to ensure security for women. Following an RTI application by TSI, he agreed to change the National Crime Records Bureau’s (NCRB) maintenance of rape case records.

It has been more than a month since the Delhi gang rape shook the country. Who takes the responsibility and blame?
I can understand that there has been a lot of controversy but if we actually look at the positives that have come out, the outburst by the people of the city has led to stringent measures. We have taken steps which will make this city a much safer place. We have come out with two time-bound committees. The three-member Justice Verma Committee report has just announced far reaching reforms in rape laws.

Implementation of laws has been a cause of concern. What will you do with the Verma Committee report?
We will try to introduce it as soon as possible in Parliament for enactment. We have also instituted an inquiry commission on the unfortunate incident that happened on December 16 which is being headed by Justice Usha Mehra. If there has been laxity from any individual or organisations, we will take stringent action against them. That will also happen in a timeline of three months. There have been very good suggestions by people who came out to protest and I am sure it will lead to something concrete.

Was Delhi Police right in using brute force against protesters and media?
I have repeated it often and will say it again: 99 per cent of the people protesting were peaceful, there was an emotional outrage over the dastardly act and there was anger amongst the people, which is why they came out and tried to make their voices heard. Unfortunately, one per cent of those present there were miscreants who were looking to make trouble. I apologise to genuine protesters who were injured in the bargain. It is extremely unfortunate and it should not have happened. But, had we let the protesters on to the Rashtrapati Bhavan, the same people criticising us would have turned around and said “What kind of government is this, which allows protesters to barge into the Rashtrapati Bhavan”.It was a decision which we had to take on the spot. I would like to reassure people that their voices have been heard and the government is taking steps to meet their demands.

A common man travellingin a public bus in Delhi is insecure. What is your understanding?
Without doubt the police needs to pull up its socks. There has to be more patrolling and police presence. But the police have taken corrective measures. Obviously, a lot more needs to be done.

Delhi Chief Minister Shiela Dikshit had demanded that the Delhi Police Commissioner quit. It was later repeated by the Delhi High Court.
I can understand the angst of the chief minister of Delhi. She has without doubt done tremendous good work in the city and has become the face of Delhi. During any such incident, people look towards her for succor. I can understand her frustration. Even though a lot of people may not know it, the constitutional position is that the Delhi Police is not under the chief minister of Delhi. It is a central subject. Agitators expected her to take some action against the police. So ultimately, as a representative of the people of Delhi, she is answerable to a lot of things over which she has no control. I have traveled in a bus and security needs to be beefed up. There is always room for improvement.

Countryside protests have followed the Delhi rape. How does one change things?
I think India needs to revisit its past, go back to the kind of moral and ethical values that were prevalent in our ancestors. The root problem in this country has nothing to do with your education or lack of it. In families where children see respect for women when they are growing up, the child will grow up respecting women. In families where this is not the case, bad examples are being set. Good values have to be inculcated in our children.

TSI had filed an RTI with the Ministry of Home Affairs (MHA) asking for details of rape cases and the number of those convicted in the last ten years. The National Crime Records Bureau (NCRB) in their response said that such records are not maintained.
We have already started to come out with a database which will carry details of sexual offenders. It is a proposal we are working on, to make it electronic and open to the public so that they have information. We recently saw the case of a convict serving imprisonment for rape being released after a 10-year term on the basis of good behaviour. The moment he came out, he raped again.

Read more.....

Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year

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Indira Gandhi’s proudest moment: Victory of 1971

Events that led to the surrender of the Pakistani forces in 1971, saw Indira Gandhi earning the name of ‘Iron Lady’. Her uncompromising attitude won India a war that even four decades later, is highlighted in history books as event that made India proud of its empathetic foreign policy and powerful armed forces

Forty one years ago on December 16, 1971, the Pakistan Army – under the-then the commander of the Eastern Command of Pakistan, Lt. Gen. A. A. K. Niazi – surrendered to the Indian Army at the Dhaka Racecourse (also known as Ramna Racecourse ground) in Bangladesh. The surrender of the Pakistan army – before the-then commander of the Eastern Command of India and the General Officer Commanding-in-Chief of the Indian and Bangladeshi forces, Lt. Gen Jagjit Singh Aurora – was a landmark event that will be remembered as one of India’s most glorious moments. Also, India’s victory over Pakistan and the birth of Bangladesh (the erstwhile East Pakistan) have gone down in history as the-then Indian PM Indira Gandhi’s biggest achievements.

The victory of India over Pakistan in the war of 1971 has been one of the most successful wars ever fought in the history of democratic India. It became a shining example of how resolute leadership at the political and military levels can bring desired results. This war not only resulted in the surrender of 93,000 prisoners of war but also brought a new country into existence. What was so special about this episode? It happened to be the only instance that saw a new nation being born as a result of a war between other nations.

In many ways, it was the 1971 victory that made Indira Gandhi the icon that she is today. It was also a time of some hardcore nationalistic diplomacy during a time when the whole world had turned against India for its decision to go ahead with the war. The United States had exercised an enormous amount of pressure to avert India’s attack and even threatened India with dire consequences. But Indira Gandhi chose to ignore it.

Under Indira Gandhi’s leadership, India provided shelter, food and medicines to about 10 million people who in their attempt to escape attacks by the Pakistani army, fled East Pakistan to flock to the states of West Bengal, Tripura, Meghalaya and Assam. India extended full support to the Bangladeshi freedom fighters providing them arms and training facilities. India sent its troops to fight against the Pakistani forces under a Joint Command with Bangladesh – at the fag end of a nine month-long war that put Bangladesh on the world map. The success was achieved with the support of civilians and well-organised rebels under the ‘Mukti Bahini’. Indira Gandhi’s stand was also solidly backed by the erstwhile Soviet Union.

Read more....

Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

 

For More IIPM Info, Visit below mentioned IIPM articles

 

IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA

IndiGo wants to win through discounting

Kingfisher is desperate for cash flow. Spicejet is aiming at market share. Jet desires to get back to its old profit-making habit. IndiGo wants to win through discounting. And Air India is simply paralysed. In such an unstable environment, will the formation of a cartel to control price satisfy the varied agendas of our aviators?

That demand hasn’t shrunk is good news for conspiring airlines – the purpose of cartelisation is being served. But airlines argue otherwise. Their claim – fair pricing strategy is being followed, no union has been formed to cheat fliers, and the overall increase in fares only happened because two airlines Kingfisher and AI have shed weight. [In the first 9 months of 2012, KFA’s flight count fell y-o-y by 65.19% and AI’s 39.31%.]

They have a point. A reduction in supply causes price to rise for market to be in equilibrium. And that is one reason why prices have skyrocketed since January this year. In the nine months leading to September 2012, the number of departures fell y-o-y by 28.45% (to 421,883), and the number of seat units supplied fell by 25.74% (to 58,880,373). How much of the price increase does this fall in supply justify? As per the paper titled, ‘An Airline-Based Multilevel Analysis of Airfare Elasticity’, by Castelli, Pesenti & Ukovich, the price elasticity of supply (frequency) is 0.862. Another study by Jorge and Calderon, titled, ‘A Demand Model for Scheduled Airline Services’, puts the figure at 0.79 to 1.26. Giving airlines the benefit of doubt, we take 1.26 as our figure. Calculations prove that as supply gets reduced by 25.74%, prices could rise by 32.43%. Market dynamics does therefore explain a significant portion of the price rise. Blaming airlines of colluding to fix price isn’t sufficient an argument.

Those who argue that cartelisation is in vogue in the Indian aviation industry might also want to consider the rise in count of players. As compared to a decade back, we have double the number of airlines today (eight), which makes cartel formation less likely. Adds Gordon Bevan, VP, UM Aviation, to B&E, “Cartels are most effective when there are fewer players. There are too many players at present in the Indian airline circles for them to conform to a cartel pricing regime.” There is too much to gain by the profitable market leaders by pricing competitively rather than throwing a cartel-style lifeline to those that really need price stability. Ask yourself – why should a SpiceJet or an Indigo provide KFA or AI an extended period of competitive relief?

There is the claim that FSCs are influencing the LCCs to set floor prices, which creates very little difference (less than $9 in some routes) between their entry fares. At present, LCCs account for 55.74% of the flights that operate on domestic networks across India (during Jan-Sept 2012), and 59% of passengers (September 2012). In short, LCCs dominate the Indian skies. How are FSCs arm-twisting the dominant no-frills lot into fixing their fares? Difficult to believe.

There is another argument that strongly goes against any possibility of a cartel in operation in India. Of the two airlines that made profits last year and are expected to make money again this financial year, both are LCCs. Had the FSCs been involved in fixing prices, they would have applied sounder mathematics to ensure their bottomlines do not bleed. Instead, it is the influenced group (LCCs) that is experiencing a positive cash flow. What manner of cartel is this that does not profit the supposedly ‘powerful, influential’ side?

Read more......

Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

 

For More IIPM Info, Visit below mentioned IIPM articles

 

IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA

TRAI: A woeful downslide

The Indian telecom sector’s current situation merits a more progressive line of thinking from the regulator to ensure that the sector continues to progress on the government’s stated agenda of inclusion. But TRAI’s recommendations for 2G auctions and spectrum refarming would actually end up achieving more of the opposite.

In July 2012, India’s mobile GSM subscriber base reached 679.05 million from just over 1 million in 1998 through just voice services for the most part. And by that time, CDMA subscriptions had reached around 230 million (AUSPI). This stupendous growth in subscriptions has been a revelation of sorts globally, along with the surprisingly low price points at which Indian telecom players are providing these services. From an ARPU of Rs.362/user/month for GSM players in December 2005, the figure has declined to Rs.100/user/month in March 2011 as per a PwC report. The report further highlights that India’s ARPUs are around 3 and 10 times lower than developing and developed countries respectively on an average.

However, the recent trends point to trouble in paradise. For a sector that is already struggling with low ARPUs, slowing penetration and high debt, the last straw would really be a lack of appreciation of its achievements and insensitivity towards its pressing issues. But unfortunately, that insensitivity is real, and it is coming from none other than the regulatory authority TRAI. By proposing a spectrum reserve price of Rs.36.22 billion per MHz on a pan-India basis in the 1800 MHz. band for the 2G spectrum bidding process planned in November, the regulator is imposing a burden that only serves to undo much of the good that has been achieved by the telecom sector in the past.

In February this year, the Supreme Court quashed all 122 licenses that were given out during the A. Raja regime, and TRAI came up with its revised recommendations as per the SC’s directions. The price it has proposed has united an otherwise intensely competitive industry against what they term as an atrocious figure. The price is 10 times higher than the benchmarks used under A. Raja. And at Rs.180 billion plus for 5 MHz, it even beats the 3G auctions that took place last year, where the reserve price was Rs.168.28 billion (and they were globally declared as atrociously overpriced!). The regulator has stuck by its argument and asserts that the new reserve price will impose a relatively insignificant burden on end consumers. Later on, the industry got some respite as an Empowered Group of Ministers (EGoM) panel led by then Home Minister P. Chidambaram brought down the reserve price to between Rs.141.11 billion Rs.151.11 billion for 5 MHz. on a pan-India basis. But players are far from satisfied. The level of competition this time around for the re-auctioning process is not as bullish as it was when the first auction was carried out. One has to keep in mind that licences of most of the telcos are up for renewal soon. Also, they would not be exempted from paying for the spectrum they gain through any source (direct buying via auction or M&A activity). Thus, the incumbents are feeling reluctant to join the bidding process. The same goes for the relatively new operators in India, for their investments have really not paid off well. TRAI is assured of 2-3 big telecom players participating in the process, but it already seems that the top circles may not see significant participation due to high prices.

There are legitimate reasons why such exorbitant pricing will do little more than providing some short term gains to the government. TRAI has gone on and on discussing how the price will have limited impact on the balance sheet and the impact will in fact come further down over a period of 20 years. But Franco Bernabè, Chairman, GSMA and Chairman & CEO, Telecom Italia Group, cautions with respect to the TRAI decision, “Efforts to squeeze money out of mobile operators for some perceived short-term gain will only reduce investment in networks, inhibit growth of mobile services and drive up consumer prices – limiting the value that the public will derive from spectrum resource in the long term.”

Read more....

Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

 

For More IIPM Info, Visit below mentioned IIPM articles

 

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year

BBA Management Education