Wednesday, December 12, 2012

RELIANCE: RETAIL

The venture was flawed from the beginning in more ways than one

And now, Reliance Retail is mulling over tying up with an international partner back-end support. Had Mukesh gone in for an international tie-up earlier, this situation would not have risen as outsourcing supply chain management is more cost effective and feasible, especially in India. Then came the news that Reliance is planning to shut down 40 of its non-performing stores and rationalising its total retail space of around 4.2 million sq. feet. Reliance Retail also axed almost 600 support jobs to manage costs.

Experts claim that the very basic structure of the company is debilitated. In the first go, Ambani invited negative publicity by removing the middlemen from the value chain. Experts also maintain that most of Reliance Retail’s ventures like Reliance Mart, Reliance Super, et al, were launched in a jiffy, without any foolproof plan of action. Floating so many retail ventures led to disharmony between business heads and each one started competing with one another, thereby leading to the fall of the parent company. Keeping up with the tradition of Reliance as being the best employer, Ambani gave huge salaries, which were incommensurate with the returns. Furthermore, as a retail consultant who worked closely with Reliance Retail said, “When the Store Operations vertical is not at the center of a retail company, the venture is doomed.”

Doomed may be too extreme a word. But surely the company needs. For even a venture with the Reliance trademark can fall apart if it’s not planned and executed properly.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri

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Sunday, December 9, 2012

GLOBAL TRADE: PROTECTIONIST POLICIES

Protectionist policies will save your companies, but only for so long as they don't beg for euthanasia!

Let''s begin with the Chinese state-owned Aluminium Corporation of China''s (Chinalco) attempt to acquire Rio Tinto. Recently, Chinalco announced that it would invest $19.5 billion to acquire an 18% stake in the debt-ridden Tinto. This is clearly with a ''protectionist'' motive to insulate its domestic industry from falling prey to global forces. The deal will also allow Chinalco to enter the UK market, which is largely controlled by Rio Tinto. “The transaction will forge a pioneering strategic partnership through the creation of JV in aluminium, copper, and iron ore,” states a Rio Tinto release. Then there is the Coca-Cola case. The government has flatly disapproved the American''s $2.4 billion bid to acquire Chinese juice company, Huiyuan, as that would grant it a 46% grapple-hold of the Chinese juice market. Hope Lee, Senior Analyst, Euromonitor avers, “Full acquisition means Coca-Cola will penetrate the Chinese juice supply chain deep...”

While ego-satisfaction can justify China''s protectionist policy, it also leads to many disadvantages like stagnation of funds, as Matthew Phillips, Transaction Leader, China states in a PwC Bulletin, “Chinese companies still have money and government support to invest abroad...” Today, we have two; tomorrow there will be more, giving shivers to cross-border advocates... But isn''t the ''American turn'', the only ''right'' turn? We''re confused, but God isn''t! God save America!


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri

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Friday, December 7, 2012

SUNCORP-METWAY: EXECUTIVE EXIT

John Mulcahy got Suncorp into a mess that’ll take some time to clean...

He would take credit for all the little good work, but a leader is also not simply cultivate the habit of passing excuses as a hobby! So there was Mulcahy – blaming external events for diverting public attention away from Suncorp’s achievements across businesses. The losses arising out of the Promina deal (for which all blame goes to him), coupled with the global financial crisis and catastrophic geographical events proved too costly for Suncorp’s bancassurance business model. The interim-CEO Chris Skilton inherits a risky situation – to keep the struggling banking entity afloat and sail safe through the speculation of divesting assets. Really John, there are more such accolades (sarcasm intended) we could give you, but for now, let us all just say – thank you John, for being gone!


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri

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Can Shoppers Stop do it?

Can Shoppers Stop do it? Does Shoppers Stop have it within them to fight the slowdown and one day become India’s answer to WalMart? angshuman paul investigates...

‘First movers create the market but it’s not necessary that they sustain the first mover’s advantage. You can enter late but simultaneously, you can cash in on the market created by the first movers.’ That’s what Sam Walton, the god of retail, always touted; and his first WalMart store (then named Walton’s 5&10, which he opened in Bentonville in 1950 on borrowed money and savings from a stint in the army), wasn’t even actually USA’s first discount department store. In fact, it wasn’t even his first – Walton had to actually sell off his first store in Newport because of the lease running out. Neither was Walton the pioneer in the industry, nor was he one of the best, but what he surely knew, was that no success is worthwhile if the same is not attached with a world beating vision. From just one store to making Walmart the world’s largest and number one on the Fortune 500 list, there’s surely much to learn from Sam, and vision tops the bill.

Is B.S.Nagesh India’s answer to Sam? In his vision to revolutionise retail buying, surely yes. In his vision for making Shoppers Stop a world standard, perhaps not. That brings us to the next question. Is Shoppers Stop India’s answer to WalMart? Not yet; and strangely, mostly because of reasons that seem to be beyond their control (or are they?). And that’s where the pain starts; of being Shoppers Stop, of being B.S.Nagesh, of operating in an industry and environment that can only support you this much, of being enmeshed in a vision that is entrapped within not only the limits of the sector’s operations, but also of the vision of the government.

Despite my evident undercurrent of the critic’s clarinet, I accept that Nagesh (and even Shoppers Stop for that matter) is the best that could have happened to India in a century of retailing. Well, at least until the past year (I’ll come to that later). There can be no better logic that justifies this status than the manner in which a single man and a brand jumpstarted the view of India to retail.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri

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Wednesday, December 5, 2012

Time to snap all ties with Pakistan

The whole damn thing – like as always in the past – is fast descending into a farce and a bloody masquerade. Close to three months have passed since the 26/11 carnage in Mumbai and we now get ‘credible’ reports from investigators in Pakistan that those who planned the brutal attack were not from Pakistan. By the time you read this, the Pakistani Foreign Minister or Interior Minister would have almost certainly officially informed India of the same. Indian citizens and the Establishment would be outraged at the duplicity and perfidy of Pakistan. But then, in a response that is typically Indian, the Mumbai carnage would be a fading memory and the media would be more preoccupied with the love story of Chand and Fiza. There will be some chest thumping because the American Secretary of State, Hillary Clinton, will announce that Pakistan needs to do much more to curb terrorism. Bleeding hearts will keep up their rant that Pakistan is as much a victim of terrorism as India. More bleeding hearts will preach that only ‘people to people’ interaction will lead to lasting solutions. And of course, there will be those disposed towards misplaced bellicosity who will keep insisting that only sustained attacks on training camps based in Pakistan will teach ‘them’ a lesson. But eventually, one more bomb blast will kill and maim dozens or hundreds in another Indian city and the whole cycle of accusations and denials will resume; only to end again in a farce.

I completely agree with level headed and sober analysts that launching a military offensive against Pakistan will not necessarily result in an end to cross border terrorism. That could have been a risk worth taking if the Indian military had the power and punch to decisively knock out and decisively defeat the Pakistani military in a short and swift conflict. The unpalatable reality is: the Indian military doesn’t have that kind of punch. In any case, the powers that be know that the Big Boys will force India to go for a quick ceasefire and a stalemate. Pakistan will again make promises to stop encouraging jehadi attacks against India. It will again break that promise with impunity. So, is India to sit impotently and not be able to do anything about it?


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri

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Monday, December 3, 2012

‘POTENTIAL’ ENERGY: GYMMING’S GOOD FOR THE ENERGY CRISIS

Here’s the latest on the goofy side; gyms claim they can make energy

For a nerdish example, listen to California Fitness Club in Hong Kong, which claims it can produce 300 watts of power per hour from its 13 machines using innovative apparatus. More hilariously, Enviu, a Dutch NGO, is also building a dance floor that will convert the vibrations made out of tapping of the feet into electricity. The US military uses ‘heel strike generator’ that can be fitted into their shoes which can support any battery that is fitted in any weaponry that they are carrying. With more than 26,830 gyms in US alone – and the data that an average person can produce 50 watts of electricity in an hour using a gym machine – are we at the cusp of a revolution where a revolutionary 500 million watts of electricity can be produced in US alone by exercise freaks? For a country with 3,892,000,000 million watts energy demand every year, all this is pure balderdash and stupid think! And yoga doesn’t even make this list. But still, imagine the possibilities in the third world. BSES officials in New Delhi pounding the treadmills all night long to reduce electricity shortfall. That sounds good... 


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri

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Sunday, December 2, 2012

EDUCATION SYSTEM: NEED FOR IMPROVEMENT

Policymakers need to wake up to the education system crisis...

Chile again, is beleaguering the issue of inequality not only in social terms but also in terms of educational facilities, as a consequence of which the low-income families receive poor quality of education. Then there’s Malaysia which fails to deliver a transparent education system to its people, as a result of which even excellence in the Matriculation exams would not ensure admission in Public Universities. And finally, sub-Saharan Africa, where, if you enroll in school, you only have a paltry 5% chance of making it to the University levels there!

So is privatisation of education to be blamed? The answer – a thumping no! In fact, privatisation has improved the odds that children in developing do not remain uneducated. Governments in developing economies should increase the budget allocation to public education system as well... Private names are doing their bit, it’s time for the government to sacrifice their mid-day nap as well!


Source : IIPM Editorial, 2012.An Initiative of IIPM, Malay Chaudhuri

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Friday, November 30, 2012

SUICIDE ATTACKS: DANGER

Suicide attacks are growing by the day, in count and fashion!

Who claims that ‘improvement sucks’? Well, we do! And this feeling of disgust surfaces whenever someone realises that the ugliest form of suicide bombing has now truly gone global! What’s worse, the occurrences have not just increased manifold across the globe, but the tactics and techniques have drastically improved over the last few decades too! This clearly poses a serious warning to all in the world to reconsider adequate policy initiatives to prevent the world from such designed evils.

There are various forms of suicide attacks applied by various terror groups. One of the oldest one is the plane attack, Kamikaze, used first by the Japanese against US. Later on, many attackers imitated the same by hijacking planes and using the same as a missile.


Source : IIPM Editorial, 2012.

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Hotel Casa Fuster

Tthe symbol of love, Hotel Casa Fuster was built in 1908 when Mallorcan aristocrat Mariano Fuster appointed architect Lluís Domènech i Montaner and ordered him to convert a chocolate factory into the 'most spectacular house in the city' for his wife Consuelo Fabra and which, centuries later, now, stands as a luxury hotel and is listed as a landmark building.

THE VIEW: The hotel terrace overlooks the Mediterranean Sea, the Sagrada Familia Cathedral, the Passeig de Gracia, and the Tibidabo Mountain, all of which make for a splendid view. The terrace, in fact, is heaven for all those wanting to relax on a holiday as it has a Jacuzzi, a gymnasium and a swimming pool, thereby giving you a perfect view while you sit back and relax!

ARCHI TYPE: The 100-year-old building is a mix of Art Nouveau style reflected from its architecture with pillars and carvings, giving it a rich look and the contemporary state-of-the-art style reflected by its furniture and modern gadgets. The hotel has 96 bedrooms decorated with silk and lavender with mini-cinemas, saunas and king-sized beds.

BON APPÉTIT: The hotel boasts of restaurant Galaxo, which offers a Mediterranean cuisine with seasonal products. The restaurant has a contemporary ambience and its young chefs have been recently awarded for their constant innovations in their preparations. Otherwise, there is Café Viennese which is just the right place to chat and enjoy a hot cup of coffee with that special someone!

AROUND THE CORNER:

Situated in the heart of the city, the Mediterranean Sea, the Eixample and the Sagrada Familia Cathedral are some of the tourist attractions around the hotel. However, FC Barcelona and La Rambla are other must-see places. The former, arguably the most famous football stadium and the latter being the best place to enjoy street food and cheap bargains! However, you might have to go a bit out of your way to see these.


Source : IIPM Editorial, 2012.

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Wednesday, November 28, 2012

It’s about teaching them how to fish

Kris Gopalakrishnan, CEO, Infosys, shares his thoughts on Creative Capitalism & Infosys’ social initiatives in this exclusive interview with Priyanka Rajpal of B&E

Q: What are your viewpoints about Creative Capitalism? Is it necessary?
KG: Capitalism can be successful only if its benefits reach out to all sections of society, especially the socially and economically disadvantaged. There are large sections of society across the globe who have not benefited from capitalism – simply because what they need and want is not of interest to mainstream capitalism and profit-making organizations. There is a need for companies to be creative and innovate so that more people can benefit; at the same time fulfilling the basic criterion of capitalism – to make profits. This is Creative Capitalism, which makes it possible for companies to provide benefits to people who aren’t its direct stakeholders, while also maintaining its profitability.

There is a need for companies to think one step further, and explore options to extend the benefits of their businesses to a wider audience. Today’s society is increasingly networked and inter-linked, and Creative Capitalism can help both the common man as well as corporates, since it is an all-inclusive strategy. Innovative thinking and technology help reduce cost, and as a result, can make a visible difference in the lives of the underprivileged. When the quality of life afforded to these sections of society improves, they will in turn, stimulate demand for products and affordable technology.

Q: What as per you are the benefits from following Creative Capitalism?
KG: Creative Capitalism benefits all groups involved in the life cycle of a business transaction. For companies, Creative Capitalism drives innovation – it makes people sit up and think differently, develop new business models, which could mean a new product or an opportunity to break into a previously untapped market. This may be profit-motivated or out of pure goodwill.

While wealth is concentrated amongst certain pockets, many corporates address only these pockets. If a conscious effort is made to address the millions who exist out of these pockets, several issues like the alleviation of poverty can be addressed, while also increasing the markets that companies cater to.

From an industry point of view, Creative Capitalism helps companies establish themselves as brands with a conscience; as socially-progressive, involved and committed to a larger audience than just customers, employees and investors. For society in general, it means the opportunity and access to offerings that were not previously available to them, through a focused effort targeted at addressing their needs and requirements.


Source : IIPM Editorial, 2012.

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Tuesday, November 27, 2012

Hysteria Over Nukes and Nano

 Drama, hysteria and hype have become the staple diet in India when it comes to contentious issues. So carried are we by propaganda that mere controversies become life and death issues for the nation. Two such controversies have hogged the headlines persistently for more than a year and reveal the absurd lengths to which analysts, pundits and the media can go to put forth their point of view. One is the Indo-US Nuclear Deal and the other is the Nano project of the Tata group.

If you go by media reports, the very future of India’s energy security will be jeopardised forever if the nuclear deal doesn’t go through. There are dire warnings that Indian homes, offices and factories will remain dark and desolate without nuclear power. Similarly, if you go by media reports, a catastrophe worse than the famine of 1943 will strike Bengal if Ratan Tata gets fed up and shifts the Nano project to another one of the many states that are laying down the red carpet for him. In some media outlets, you will read alarming stories of how the plug will be pulled on Rs.800 billion worth of planned investments in Bengal if the Nano project is shifted from Singur.

It is ironical; but in both the cases, the media has officially branded as anti-national villains two sets of people and parties, both of whom predominantly belong to Bengal. In the case of the nuclear deal, the Left has been excoriated as a spoilsport that doesn’t want India to become prosperous. In the Singur case, it is Mamta Bannerjee who has been cast as a stubborn naysayer who doesn’t want Bengal to become prosperous.

Even those who make such doomsday predictions and projections privately admit that their forecasts are grossly exaggerated. Take energy security. Sure nuclear energy will be a big plus, once it is fully operational around 2020 if the deal goes through now. If basic reforms in the sector are not implemented now, power cuts will anyway cripple India long before nuclear power arrives. And who says that the deal can never ever be revived if it fails this time? Nobody seems to be talking about that. Then again, it will be good for Bengal if the Nano project is kick started at Singur. But will its relocation forever destroy Bengal as an investment destination? If the state, like India, can provide the right environment, the right infrastructure and a lucrative market, investors – both domestic and international automatically flow. And one nuclear deal and one Nano project will not permanently change that equation.


Source : IIPM Editorial, 2012.

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Monday, November 26, 2012

Let’s tell you about the Gang of 10

Obama encourages the formation of this team to debate US oil drilling

In spite of the fact that Republicans led by John McCain are robustly favouring the lifting of the moratorium on drilling in the US and trying to garner public support on the issue, the fact that Democrats are against such a lifting of restrictions, has created a new loggerjam of a debate between the two parties and their representatives.

Even if the energy policy has led to an impasse in the Senate between the two parties in the past, the latest encouraging remarks by Obama, where he has found righteousness in offshore drilling, is a major shift in the otherwise rigid stand of the Democrats. The formation of a bipartisan team, called ‘Gang of 10’, is being encouraged by Obama himself to look into the matter, and with a common broad based viewpoint (it consists of 5 Democrats and 5 Republicans).


Source : IIPM Editorial, 2012.

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Friday, November 23, 2012

...for ‘Cell’...a cancer cell!

Now that’s alarming! Today there are some three billion users of mobile phones across the world including an increasing number of young children as well. While ten years back the number was far less, it could be a reason why the researches are not being able to gather enough evidences. But then, if one notices, the major advancements in learning about what causes cancer has always taken a longer time, be it the case of smoking, Nagasaki-Hiroshima bombing effects, sunlight causing skin cancer or asbestos. The research by the several accolades winner Mr. Khurana and several others in UK has sent shivers down the spine of telecom associations and the government of India as well, which would soon set out policies to limit public exposure to radio waves from base stations and mobile handsets. While not setting up base stations near hospitals, schools or residential areas is in the hands of the authorities, it is time that individuals take charge of their own lives too.

Though variety adds spice to life, there is always a hitch even to the best of things. The time has come when making choices to sustain not just life but healthy happy lives is crucial. For all you know, the virtual-mobility-revolution being celebrated by mankind could actually be the reason for its extinction.

Cut the risk

l Avoid mobile phones for children until senior school.
l Use a landline whenever possible and laptops not to be used on the lap!
l Use the speaker and keep the mobile 20 cms away from the head while talking.
l ‘Texting’ better than calling.
l Cover the wire of the hands-free with a cover of ferrite beads.


Source : IIPM Editorial, 2012.

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Wednesday, November 21, 2012

PAKISTAN: ECONOMY

Pakistan’s economy is almost on emergency mode; nobody’s worried!

During Jan-Oct FY08, imports of food stood near to $3.5 billion, fertiliser $823 million and fuel, a gigantic $8.6 billion. With the global oil and food price rise, and growing political instability, Pakistan might just be on the road to an economic disaster. And the warning signs are already on alarm mode. There has been a drastic reduction in fertiliser production as well as wheat produce. Add to this the over 17% oil budget rise, which happened solely because of the global oil price increase. An economic collapse is not a rare phenomenon if one sees developing nations, the most recent being Zimbabwe. Pakistan seems to be mirroring almost all the issues that plagued Zimbabwe. Sadly, all that remains now is for the fire alarm to blow!


Source : IIPM Editorial, 2012.

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Tuesday, November 20, 2012

NATO: PAKISTAN

Talking is dumb

To make things worse, Pakistan’s top Taliban commander is said to have taken an oath to persist in such a war till the time the US and NATO soldiers remain in Afghanistan. The ostensible reasoning that Pakistan keeps forwarding – that they’re still ‘talking’ with the militant groups – is laughable. Only a sub-woofer dodo would believe such a hackneyed stage-managed show of meeting up with militants.

Dear Musharraf (or whoever is in power), when militants attack, you attack! Not talk! Uh oh, we apologise. You already knew that, didn’t you?


Source : IIPM Editorial, 2012.

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Monday, November 19, 2012

Powerless

Electricity is still a hope..

Centre’s dream project of providing electricity to all the villages (1,25,000 of them), proved to be a non-starter due to lack of responses from States. According to the policy, all State Governments were required to prepare and notify a rural electrification plan to achieve the goal of providing access to all households within six months of the policy being notified. However, not even a single State had forwarded its plans to the Centre by the stipulated deadline.

The Centre, meanwhile, could be looking at limiting the role of Central public sector utilities, including NTPC Ltd. and Power Grid Corporation of India Ltd., in the task of rural electrification.


Source : IIPM Editorial, 2012.

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