Advice for the life

MAYUR TOSHNIWAL
PRESIDENT - RETAIL OPERATIONS (VALUE FORMATS), FUTURE GROUP
“My best one is from Kishore Biyani who said that unless you take risk, you can never gain. So you will have to take risk but take it in a very planned way. I implemented this advice by taking a decision in 15 minutes to leave my existing job and joined Future Group.”

KELAINE ROETHLISBERGER
MANAGER, ULYSSE NARDIN
“My mother used to always say ‘remember that everyone you meet is hungry for a kind word’ and having stuck to this principle has helped me both in professional and personal life...”

SIR RICHARD STAGG
BRITISH HIGH COMMISSIONER
“My ex-boss advised me more than 20 years ago that there are no limits to what one can achieve as long as one does not go overboard. We should know where to draw the line. So basically everyone decides their own achievements.”

JUDY JARVIS
COUNTRY MANAGER, BRITISH AIRWAYS
“My aunt told me in my childhood to treat every individual with personalised importance and this lesson I have tried to implement in my daily life. I don’t know whether I have been successful in implementing this advice but the advice has helped me a lot in maintaining professional relationships.”

ROHIT BAL
DESIGNER
“The best advice I got is from a very close friend of mine who says you should always cry (with tears)when you are sad. It’s a big stress reliever for me.”

SUNIL LULLA
MD, TIMES GLOBAL BROADCASTING
“It’s difficult to precisely point out the best advice but I remember my mother’s simple advice and that was to work hard and work harder; success comes only when you ‘work hard’ and only when you ‘work harder’ can you outdo your peers. When I haven’t followed that I have suffered. The biggest benefit of following this advice is that even after 48 years, I can still converse as an equal with both peers and competitors.”

MARCELO VILLAGRAN
MD & CEO, BATA INDIA
“If you are particular about time, it not only helps you to do a lot of things but creates a very strong impression about your personality – this has been by ex-boss’s advise to me,”

Pradeep Dhoot Director,
Videocon Industries ltd.
“My father advised me that positive motivation should be long lasting and negative motivation should not last long. Also another advice I got was from Rahul Bajaj – he said that every aspect of business should be done on a concrete basis and no illegal thing should ever happen.”

Source : IIPM Editorial, 2010.

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

For More IIPM Info, Visit below mentioned IIPM articles.
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If you belong to the category of people who have no idea what is the meaning of convenience food,

Angshuman Paul takes you on the most exhaustive, yet critically inquisitive treatise of why global food giants – hunting for indian food company acquisitions – now think that this sector will be the biggest contributor to the retail sector growth in India

This was really what caught our eyes! Last year, the Delhi based Fun Foods completed its 25 years of being in the business. The way the promoters celebrated this event was pretty unexpected. This ‘convenience food’ company (‘convenience food’ refers to ‘ready to cook’ and ‘ready to eat’ product categories), which to its credit has all quick service restaurants as its institutional clients, was sold off to a German company, the $12 billion giant Dr. Oetker. The question over here is, why did promoter Rajiv Bahl sell off a brilliantly performing business? Especially when Rajiv and his son, 29 year old Viraj Bahl, were clearly very passionate about creating a convenience food brand of national repute. It didn’t take us long to find the answer – Rs.111 crores! That’s the amount the Bahls got for the sale.

But the fact is that if not Dr.Oetker, the Bahls would have got a similar offer from some other global giant, as India is seeing a huge influx of foreign players entering the convenience food industry in a clear attempt to either set up JVs or simply to acquire companies lock, stock and barrel. And that forms the crucial crux of our cover story, which on one hand provides a most concise update on recent foreign entrants in the sector, and on the other provides a critical analysis of whether this industry can sustain the growth expected by the players in the future! To put all doubts at rest at the start itself, it is a fact that the Rs.3.6 trillion Indian food and beverage industry is decisively surging ahead, with sectoral analysts extrapolating figures for the coming five years for the convenience food sector. A KPMG ‘Food Report’ forecasts that rising incomes will increase domestic consumption of ready-to-eat (RTE) and ready-to-cook (RTC) food over the next five years in India. There’s more! Indian RTE and RTC brands are now increasingly finding prime shelf-space in the retail chains of US and Europe. For example, the Bentonville giant Walmart, after rolling out its first store with Bharti in India in May 2009, is now working on a pilot project with the Gujarat Co-operative Milk Marketing Federation, the promoter of the Amul brand, to market ethnic processed food products overseas. In the same league, Satnam Overseas, one of India’s major food exporters, is investing $4.4 million for setting up a rice mill near London to boost sales of its Kohinoor brand of food.

‘Food’, clearly, has become the appetizer driving India’s retail revolution. According to Retailers Association of India (RAI), food and beverage sectors’ share in overall retail in India is now at a staggering 65%; and majority of this 65% share comes under the ambit of processed foods and vegetables. Further, according to consulting firm McKinsey & Co., the retail food sector in India is likely to grow from $70 billion now to $150 billion by 2025 (a forecast many analysts say is very conservative) with 60% of this market belonging to the convenience food category. Even McKinsey stresses that the Indian FMCG segment’s gen-next growth will be driven by the food segment only – findings that are literally forcing FMCG players like Cavin Kare and more to make their entry into the packaged food business.

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Source : IIPM Editorial, 2010.

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

For More IIPM Info, Visit below mentioned IIPM articles.
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BIG OCEANS ARE RULED BY BIG FISHES

Independent agencies have always remained but it is the multinats that have the scale to train talent and reorient clients for tomorrow

For the last couple of years independent agencies have been in the news. More than half of these have been started by creative people who left bigger agencies to start operations. Suddenly everybody is wondering what this development means from a the long-term perspective. In my opinion, the course of independents gets decided by the vision of the bigger agencies. They are the ones with a window to where the world of communications is headed.

In their early days of going global, many multinationals in many markets made the mistake of parachuting large numbers of ex-pats to duplicate their creative magic at the other end of the world. This left a huge gap for the rise of independent agencies that understood local cultures and made intuitive connections with local consumers. Wiser with their experiences elsewhere, in India, multinationals have nurtured local talent over decades. The result is that the creative work from multinationals has not only grown, but also has a distinct Indian flavour. Indian arms of Leo Burnett and O&M have been Agency of the Year across global networks. So even as more small fish swim by, the big fish in India have evolved.

As far as independent agencies go, they will continue to crop up and win some businesses. Many of these wins will be based on the illustrious past life of their creative founders while working for multinational agencies; and specifically on personal client relationships. But independents that want to grow beyond a clutch of accounts and achieve scale will have to go in for tie-ups. As client base grows, an agency needs the best creative pool working with it. Multinationals stand a better chance of attracting and retaining fresh talent with better pay scales, opportunities and training. At the end of the day, it’s a big ocean out there. And big oceans are ruled by big fishes.

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Source : IIPM Editorial, 2010.

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

For More IIPM Info, Visit below mentioned IIPM articles.
TSI exposes b school ranking scamsters Mahesh Peri of Career 360 and Premchand Palety of C fore. - For Complete Sting Operation Video Click Here

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NOW MEGABUCK ENDORSEMENTS FOR NEWBIES TOO!

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A Ranbir-Deepika jodi coming to launch his product and then gracing the dinner that follows could catapult him to Page 3 status and is likely to do wonders for the employee-morale present at the event”.

Ad-Guru Alyque Padamse too is convinced that it defines categorically the “thirst that both the Advertiser and general public have for celebhood with ad frat desperate to cash in on it”. However, he warns, that care should be taken to prioritise … otherwise Deepika outscoring the product endorsed in recall value, could be tragic news for the Advertiser! Leo Burnett’s Sainath brings his own spin to the debate. He believes ultimately it is about “effective clutter-busting. New-age India looks for and at new-age stars. There are two kinds of stars. The timeless variety – SRK, Big B, Sachin, Akshay – and the new kids. If the consumer is growing older, he will look for older icons; if he is getting younger, star-kids zoom centre-stage. In a young, resurgent India, this is completely appropriate. A sign of the times.” Anita Nayyar, CEO, Havas Media wraps up this debate with her insightful, knowledgeable and authoritative take. She reckons it has largely to do with the shortage of credible celebs available for endorsement. “SRK and the Big B have been done to death (Remember BINANI CEMENT & LINC PENS? Jeeezus!) – and there is a genuine dearth of sexy, young stars in an environment bursting at the seams with youth-driven products for a gigantic youth market. So I guess, for a quick-hit, grab the latest flavour of the day and go with the flow. The stars too know that this is a cool way to make quick mega-bucks, so strike when the iron is hot. Kal kisne dekha…!”

At the end of the day, certain path-breaking facts emerge. One (unlike earlier times), a star doesn’t have to slog for years and reach a status to gain credibility and pulling-power in the Ad-market. One big hit does it! Two, the publicity machinery has taken on critical dimensions, so media-driven hype (of any sort) for Bolly-stars is big stuff. Finally, Bollywood has discovered the importance of brand-building and with smart packaging go all out to create an image, aura and climate that sells … the result? Its rainin’ moolahs for the Bachhalog, guys!!

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Source : IIPM Editorial, 2010.

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

For More IIPM Info, Visit below mentioned IIPM articles.
TSI exposes b school ranking scamsters Mahesh Peri of Career 360 and Premchand Palety of C fore. - For Complete Sting Operation Video Click Here

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ALPHA MALE OR MARATHI MANOOS?

Raj Thackeray, President, MNS

Be it his arrest last year after vocal attacks on North Indians at Shivaji Park, or his exoneration in the Kini murder case, Raj Thackeray is a name known and feared by many. While some call him the ‘bad boy of Indian politics’, a section of Marathi locals sing his praises for protecting their interests. The only thing Raj has been still unable to explain is that if you drive all ‘outsiders’ away, what will happen to Business and Bollywod, Mumbai’s twin success towers. Nevertheless, the self-proclaimed messiah for Marathi Manoos has been able to successfully propel the regional debate onto the national consciousness and in the process has honed his brand awareness. Remember the TV images from Mumbai in October last when 1,900 employees of Jet Airways were sacked? No peaceful democratic methods for Raj. This alpha male threatened to disallow any Jet flight to take off till ‘all’ fired employees were reinstated! That’s Raj Thackeray – the branded ‘bad boy’ of Indian politics!

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Source : IIPM Editorial, 2010.

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

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Commission curse…

IIPM: An intriguing story of growth and envy

This certainly comes as a breather for ticketing agents across the country. Foreign aviation players plying in the Indian market hitherto operated on a zero-commission model, over which a lot of brouhaha was created by agents. However, the latest ruling by the Directorate General of Civil Aviation states that foreign airlines will have to pay commission to the ticketing agents. The decision of the aviation regulator to do away with zero-commission model will benefit around 2,400 agents in the country as international carriers like British Airways, Air France, Lufthansa, et al, will now have to pay 3% commission to ticketing agents. But will it impact the financial standing of these foreign airlines during the current turmoil? “Demand continues to improve, but profitability remains distant. Fares have stabilised, but at profitless levels,” explains Giovanni Bisignani, Director General & CEO, IATA. The new rule implemented will hurt the overall yields and further decline the revenues of international airlines. Out of the total 72 international airlines operating in India; 16 do not pay commission to travel agents. Since close to 85% bookings are done through agents, the reduced revenue per ticket would definitely add to the mounting problems of increasing cost pressures. It gets worse when one looks at the revised loss projection of $9 billion for the current fiscal made by IATA for the global aviation sector. The ruling maybe a blessing for ticketing agents, but is a curse for the airlines.

Ratan Lal Bhagat

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Source : IIPM Editorial, 2010.

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

For More IIPM Info, Visit below mentioned IIPM articles.

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BBC WORLD SERVICE TRUST - MADISON MEDIA PLUS

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OBJECTIVE: To increase the use of condoms in India and encourage people to say the word ‘condom’ openly.

MEDIA STRATEGY: ‘Say-CONDOM-aloud’ opportunities were created where the consumer had to say the word ‘condom’ aloud and initiate a discussion about condoms. Buzz was created around the word by replacing the word Kabbadi with condom in the popular local sport. Consumer fancy for ringtones was targeted by leveraging the word ‘condom’ as a ringtone.

EFFECTIVENESS: As per NACO, condom sales through government channels grew by 85 million units during the campaign period.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

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

For More IIPM Info, Visit below mentioned IIPM articles.

The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!
For Exclusive Footage by Sunday Indian Click Here

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In Bed with Hitler Stalin!

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4Ps B&M: AIDS charities worldover are protesting that it would be HIV positive patients, not the disease itself, which will be associated with war criminals via this campaign. Do you agree?
Silz: The bottom line is that we started a new discussion about AIDS. And that’s what we wanted to do. We did the campaign for an AIDS charity called Regenbogen e.V, which has many AIDS patients as members. They decided to run this campaign and didn’t feel stigmatised. We’ve got a lot of e-mails from AIDS patients who get the campaign right and encourage us to go on to start a new discussion about AIDS.

4Ps B&M: Are positive responses also coming?
Silz: Absolutely! We get every day, thousands of congratulations from parents, youth and HIV positive people. They like the campaign. Here are some statements... “Finally someone who really deals with the theme.” HIV positive persons wrote, “If these ads were published years ago, we would have probably not been infected.” Teachers are calling us because the video is on every mobile phone on the schoolyard in Germany. So teachers order our posters to start first lessons in talking about AIDS. They get more attention from the kids. And this young crowd is precisely our target group.

4Ps B&M: Do you think that this should be replicated across countries for AIDS awareness?
Silz: Of course! In almost every country you will find a bad guy who killed a lot of innocent people. I don’t know if you had one in India. To me, it sure sounds like a peaceful country...

4Ps B&M: Are you hoping to win a few big awards for this campaign?
Silz: We work for clients. Not for the awards.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

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

For More IIPM Info, Visit below mentioned IIPM articles.

“We will change your outlook” - The Sunday Indian on B-SCHOOL RANKING SCAMSTERS EXPOSED! A must read...
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Dainik Bhaskar tunes into the right channel

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When most of the players in the Indian media industry are finding it hard to stay afloat (thanks to a sharp decline in ad spending by Indian advertisers), there’s some good news flowing in for Dainik Bhaskar Group. Its radio station My FM has just achieved the break even, well before the estimated time. Moreover, while the company’s net revenue during the quarter was up by 46% (y-o-y), its operating profit was up by 99% for the quarter. So, what has made it taste such success, when other radio brands like Big FM, with largest network, have failed to break even? “A mix of its excellent listener understanding and strategic marketing which allowed us to tap into new listeners as well as a new genre of radio advertisers,” reasons Harish M. Bhatia, COO, 94.3 My FM. No doubt, as pointed out by Harish, extensive market research has really helped the radio station. The radio channel conducted three major Radio Surveys in the various markets where it has presence and based on the insights, packaged its offering to the local consumer. The surveys revealed that even in cities within the same state, people have different taste and flavour for music. Thus, a customisation of the product varying from city to city basis has helped MY FM to be a leader in 15 out of the 17 markets it operates in, despite the presence of older and national radio channels in these markets. Moreover, as a part of a deliberate business strategy MY FM operates only in tier 2 & tier 3 cities. In fact, these are the markets where Dainik Bhaskar, the newspaper, has a strong hold. Also a strategic effort to convince non-radio advertisers about the benefits of the medium and getting them on board has helped it churn smile for its stakeholders.

Pallavi Srivastava

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Source : IIPM Editorial, 2010.

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

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“We will change your outlook” - The Sunday Indian on B-SCHOOL RANKING SCAMSTERS EXPOSED! A must read...
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HONEY, I MADE IT ONCE AGAIN!

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The mission to become an internationally renowned brand began four years back for Airtel. Today, it reigns high as the number one brand in India, for the second year in a row! Undoubtedly, it has become one of the most formidable brands of India Inc.Airtel has succeeded in establishing a strong ‘connect’ with a billion Indians, as Pratik Mazumder, who has been a brand custodian of Airtel till 2008 and now runs his own brand consultancy out of Bangalore, avers, “The Airtel success story is just like a Bollywood film, with the home-grown company being able to make a mark for itself in the second largest telecom market in the world, and thus becoming the fourth-largest telecom service provider in the world. It’s a company that is loved by its customers, admired by its partners and benchmarked for its best practices by its peers. It’s a company that has transformed the lives of a billion across the country.”

Airtel was one of the first companies to be offered wireless license in the country (in the year 1995) and that event marked the beginning of a new era in Indian telecom history. When Airtel entered the scene, wireless technology was considered to be a utility meant only for a select few. But with competiton increasing and with timely government intervention, prices were slashed to rock bottom levels. Mobile telephony suddenly became a necessity. Since then, Airtel has evolved into a ‘life changing’ brand, changing with the times and even today continues to be greatly associated with the lives of the its customers. “Airtel has always banked upon the strategy of portraying real human emotions that touch one’s heart and hence people can relate well to this brand, ”shares Sagar Mahableshwarkar of Rediffusion Y&R (the agency that handles Airtel’s creative account).

Over the last year too, Airtel as a brand has kindled many emotions through its communication strategy. Even its latest ‘Special five’ campaign (that is currently on air) stands proof to the same. This campaign is about Anna and her special five friends and explains well how one can talk to his/her chosen person at subsidised rates. The thematic idea behind this commercial was to communicate how to make your special ones even more special and bring them closer, by establishing a constant communication channel. Apart from this, the company has also roped-in multiple brand ambassadors and popularise its value added services (VAS).

However, as a market leader, the company did not just rely on its markeing communications strategy win the crown of the ‘most valuable brand in the country’. It also offered many innovative offerings to the end customers. The most talked about service was the launch of its DTH venture – Airtel Digital. The launch campaign featured as many 10 celebrities and was able to draw instant attention. This particular ad went on air on October 8, 2008 and according to a study done by research firm IMRB on October 9, 2008, Airtel Digital TV had extremely established an strong awareness and ad reach numbers in just a day! The key findings indicated that the spontaneous awareness for this ad was 37% and total awareness was 58%. Google trends show Airtel Digital TV to be the 3rd hottest or most searched keyword a day after the TVC was aired, while it had over 10,800 views on YouTube! “Airtel digital TV expects to gain 20% market share amongst new additions to the category in the first year alone, and expects to increase it in the subsequent years,” opines N. Arjun, Executive Director – Bharti Telemedia Ltd.

And the strong communication mantra continues for Airtel Digital TV. Only this time, it talks about its picture clarity through a television commercial featuring Saif Ali Khan and Kareena Kapoor. The company has plans to come out with many such communication campaigns in the future as well. Last year, Airtel also launched its IPTV, and positioned itself as being not just a telecommunications giant but a media and entertainment brand as well, making it the first Indian company to offer triple play services. Apart from this, the company also launched its communications around its 16MBPS broadband offering with the tagline ‘Impatience is the new word’ that helped connect the company with its young dynamic customers.

Strong marketing communication and value driven innovation - reasons enough for Airtel to win the coveted crown of India’s Most Valuable Company for the second time in a row...

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

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

For More IIPM Info, Visit below mentioned IIPM articles.

The Sunday Indian:- B-SCHOOL RANKING SCAMSTERS EXPOSED!
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Heaven is right here

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The Indian Hotels chain gives the true feel of Indian luxury in India & around the world... on land, in air, and yes, even on water!

Enter the Taj blindfolded and the distinctive fragrance is enough to assure you that you’ve started experiencing the grandeur of ‘Indian Hotels’ chain (you’re not billed for that). But to please your five senses with everything else about the Taj, your need to throw-off those blindfolds; and perhaps the first thing that greets you is an ostentatious lobby with the most elegant Indian touch, bathed in shades of red and cream. Added to the illumination (that gives you a sunset feel) and the chandeliers and water fountains all around; the Taj seems surely no less a wonder among all man-made places of abode. “I frequently visit India on business trips and always prefer to stay in Taj because Taj has got that true feel of India. It gives you that feeling that here is something, which is the best that India can give you. I also really like the dress code of the female employees – truly beautiful, truly Indian,” exclaims Emily Daine, a top-notch executive in an MNC in India. And the admiration is not limited to just overseas visitors, for even domestic visitors share a common thought. Not a coincidence it is though, for even we can testify that the Indian Hotels Company Limited has done enough to break into the list of 4Ps B&M’s 100 Most Admired Companies in India for the year gone by.

The hotel chain today gets counted amongst one of the largest hotel chains in whole of Asia with 59 supreme hotels, strewn across 40 destinations around the country, and offering services across luxury, leisure and business segments. A century after it all started, today what we can testify is that the growth ride has simply been phenomenal, as Girish Solanki, Analyst, Angel Broking, also remarks, “The Taj brand is a premium hotel brand in the country. It has been around for more than a century now and this definitely contributes to its admirability quotient.” And what about it being born under the Tata umbrella? “Well, being a Tata Group company, its corporate governance structure and norms are phenomenal. This has been a major factor contributing to its success, especially in the recent days...” adds Girish. Terrific ambience, exquisite services & food alright; but what about its financials? Does it promote the same degree of honour for the entity?

Well, the answer to that is simple – a thumping ‘yes’! The profits of the Indian Hotels Co. Ltd. during FY 2006-07 has risen annually by a walloping 76% to touch Rs.322.39 crore, as Anil Goel, CFO, Indian Hotels Co. Ltd. exclaims, “The good results are despite occupancies in cities such as Bangalore, Delhi, Chennai and Hyderabad falling and significant investments, which we made in re-energising and re-positioning the Taj brand in the international market.” Sure enough, even in the face of falling demand in big cities (a favourite hunting ground for all premium hotels) and increased investments, if a hotel chain can report a three-quarter annual rise in net profits, it is a successful ride.


The Indian Hotels chain today has a capacity of over 10,000 rooms in the country – the highest in the country. The group has also launched several tourist destinations in the country in partnership with the Indian government during the past year. It was indeed a clever move on its part, selecting potential tourist destinations and building resorts and hotels there, while the government took charge of developing basic infrastructure – roads and railways. And what about the go global mantra? Well, over the past two years (and more so in the current calendar year), it has also taken the inorganic route to take the ‘Indian Hotels’ brand to the international markets and presently has 17 hotels abroad; the most recent of course being acquisitions of The Campton Place (San Francisco) in April 2007 & Landmark Hotel (Boston) in January 2007. Explaining its expansion strategy, Goel elucidates, “In India we will grow our business at all price points — high-end luxury, five-star hotels, four-star gateway hotels and the Ginger brand of budget hotels. However for the international market, our strategy is to focus on the high-end luxury market.”

With its newly opened Taj Exotica Resort & Spa, Mauritius, winning accolades – bagging SpaAsia’s Connoisseur Collection of the World’s Finest Spas for 2007 award, top company award at the Dun & Bradstreet (D&B) American Express Award 2006 & the SENSES Wellness Award 2006 – Indian Hotels is on a song. And that is not all. With the launch of Taj Air (an air charter company), Indian Hotels promises a highly customised experience even on air! Land & air covered; what about water? Well, it has an answer there too! With Taj Yachts (2-3 bedroom luxury yachts), it has ensured that all three elements conjure up the magic to make Indian Hotels a name to reckon with & a brand to admire!

Edit bureau: Pallavi Srivastava

Source : IIPM Editorial, 2008

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

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Less leadership could be best

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“No seed can grow if it is dug up and examined every week.”

Classic text-book description of management characterizes it as the process of leading and directing various organizational activities – often a business and its various resources like human, financial, material, intellectual and so on. It’s said to encompass five basic functions, such as planning, organising, leading and co-ordinating. But years upon having taken that last leap – over the threshold of those uber BSchools, as managers, most, more often than not, find themselves at the epicentre of a constant grapple, a struggle to last either for a lifetime or for their respective jobs. “Today’s managers often need guidance and advice in figuring out what to do but can’t – or won’t – spend lots of time reading long treatises on each of these domains,” to quote Jeffrey Pfeffer in his new book What Were They Thinking? Unconventional Wisdom About Management.

Twelve times author and co-author, Pfeffer’s is a name that stands tall in the field of Organisational Theory and Human Resource Management. As always, lending a breath of fresh air with in-depth analysis in a pattern comprehensible with utmost ease by the neighbourhood grocer, this Stanford Professor, in his latest offering, traverses like a wise old grandfather through a wide array of subjects that influence one’s daily work-life. Though, at heart, he stands all for people. Whether its ‘people-centered strategies’ or ‘creating effective work-places’, ‘it’s people, not software, that build customer relationships’, says Pfeffer. No wonder in cutting employees’ benefits when in red, he sees short sightedness, ‘it seldom fixes anything’.

“Education, as I understand it, during more than three decades as a business professor, is not telling people things they already know nor providing themselves with ideas they necessarily agree with. Education is concerned with helping people see and understand things in different ways, mostly helping them think and ask questions to uncover some fundamental insights.” And it is these grounded and exceptionally well argued insights that make it differ from an existing hoard of jargons that usually infest bookshelves, making it a delightfully inquisitive experience for the dilettantes, whereas, always a pleasure for those familiar with Pfeffer’s past works, The Knowing-Doing Gap, Hidden Value, The Human Equation, and Hard Facts being other well-known and frequently read titles.

Also, in a way, this book begs to differ if you are hoping for a chapter to chapter, classroom spoon-feeding style. Structured it is, but can be picked up from any chapter (preferably the one closer to your liking), be it Organisational Strategy or profound expositions on Leadership and Influence; in every chapter lies an overview of what is precisely to be done and what not with enough guidance for further personal analysis and research.

To not be afraid and stand out, an antithesis to Collins’ Level 5 Leadership, to a constant focus on the importance of human interaction, Pfeffer’s brand new essay immediately finds itself in the ‘must read and constant reference’ section, particularly for those stuck-up managers restlessly waiting for the next big change in their careers or monotonous work lives in general. Though at times, partly subjective on certain principles, Pfeffer tends to dismiss negative consequences of certain lenient policies.

Nevertheless, a great read, definitely for those over-fed with ‘Management Vani’. “It’s a collection of management insights and data designed to help you do your job more effectively.” As simple as that.

Edit Bureau: Shashank Shekhar

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Source : IIPM Editorial, 2008

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

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Flying the ‘real’ times

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The Kingfisher-Air Deccan consort demystifi es much for Indian aviation…

I’m penning this piece aboard what I believe is the grandest thing to have happened to our country’s aviation ambience after liberalisation and in the wake of that veritable ‘opening of the skies,’ which enabled a whole new world of populace to sample the experience, ease and expediency of flying, in a deliciously ironic way at once exponentially reducing – and increasing – the notion of distant ‘privilege’ that has long since prefixed sitting strapped atop a plane.

So, while I revel in the luxury of this lavish airliner... oops, I mean Kingliner, in the backdrop of the just declared 26% stake acquisition in Deccan Aviation by Dr. Vijay Mallya’s United Breweries Holdings, resulting in the creation of an entity that will wield authority over a share of approximately 38% of India’s domestic aviation sector pie, I feel a hark back to the soaring developments in the very dynamic (dynamic it is in every context, or call it aerodynamic if you would!) vista of this industry would only be appropriate. A decade ago, when the air wasn’t as thick with competitive activity in our skies and the wallets went thin more often than not, so far as ticket pricing was concerned, a select audience of air travel kept itself content with barely half a handful of operators (but of course, a significant few among them made no bones about underscoring the elitist aspect associated with this act).

A few years into the new millennium witnessed what will truly go down in our country’s corporate, consumer and societal history as a revolution, in terms of the magnitude it spawned and the impact it disseminated across the periphery of a strata that was, let’s say it best, only ‘waiting in the wings’ for a lift off. As an armada of low-cost carriers marched into the blue, they ushered in a direly required whiff of fresh air in an industry that was way over the threshold of complacency and unleashed the aspirations of an entirely unattended segment of audience by promising an opportunity to savour much beyond their staple diet of rail and road at a price well within their means.

And while the likes of Air Deccan, SpiceJet, GoAir and IndiGo went about cementing their space of mind and market in the consciousness of consumers, giving full-service players a battle for their buck, another two years down the line, somewhere amidst the freebies and the euphoria, the present was begging for a reality check… in one word, consolidation.

Given the increasingly iffy scenario for low-cost operators of late, with untenable pricing and selling-below-price mechanisms gradually catching up with market fundamentals, perhaps, it was only a matter of time before a semblance of pragmatism dawned.

The acquisition of Air Sahara by Jet Airways two months back, the merger between state carriers Air India and Indian Airlines in February this year and the latest Kingfisher- Air Deccan combine are all indicative of the phenomenon of integration that every airline worth its mettle is realising as the path ahead – a trend of functional effectiveness that rings in sync with that prevalent in the global aviation market.

And while many may argue that the heydays of the average flier may have scraped the beginning of their end, with more realistic pricing models being evolved by the likes of the Mallya-Gopinath amalgamation, that’s definitely not to say that all of it may be glum. In fact, any of it is probably better in the long scheme of affairs, when you consider the implications of a host of low-priced airlines biting the dust due to infeasibility of operation and the market leaving itself vulnerable to monopoly all over again. Quite the contrary, with mergers of the sort that have manifested themselves recently, the portents of healthy competition blink bright on the horizon.

Of course, the regulator needs to ensure that connivance is kept afar. The idea of enhanced infrastructure and lesser duties on jet fuel reducing the pricing yoke on airlines, besides increased foreign direct investment in the aviation industry will further lend impetus to economies of scale being leveraged by the more modest players, sparking off a greater growth trajectory. Well, like the familiar sign at a place we’ve all been frequently reading - Work in Progress…!!

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Source : IIPM Editorial, 2008

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

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DHFL - Changing rules. Changing lives.

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BRAND : DHFL
BASELINE : Changing rules. Changing lives.

4Ps TAKE : This one probably deserves the award for being the worsthome loan ad ever. The concept revolves around a coconut (you better believe that!) – which is supposed to symbolise how difficult it is to get home loan sanctioned from a bank. Very tough, you see! Next, we see DHFL flashing numbers: helpline numbers that would help you get a loan super fast. Now, instead of talking about how easy it is to get a home loan sanctioned – and despite DHFL’s tall claims, we all know that in this age of quick service and advanced mechanisms, is it actually REALLY easy to get a loan (and isn’t that what ICICI says: by the time your cup of tea is over, your paperwork is done?) – wouldn’t it have been so much better to project a different brand proposition? No storyboard, no appealing visual and a very sad communication: this one gets a whopper of thumbs down.

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Source : IIPM Editorial, 2008

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

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A tale of two generals

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While Mukesh Ambani was crowned, Darryl Green exited gracefully!

“Growth has no limit at Reliance. I keep revising my vision. Only when you dream it you can do it,” said Dhirubhai Ambani. And surely, his elder son Mukesh is keeping the legend’s vision alive as he became the ‘only trillionaire’ in the country. And who more worthy than Mukesh whose four companies’ combined MCap – including Reliance Industries Ltd., IPCL, Reliance Petroleum & Reliance Industrial Infrastructure Ltd. – exceeded the stunning Rs.2,50,000 crore mark of late!

A chemical engineer and an MBA from Stanford University, Mukesh Ambani joined the business in 1981 and ever since has taken the company to newer heights. Some of the accolades which he has earned include ‘ET Business Leader of the Year’ (2006), being counted among the ‘World’s Most Respected Business Leaders’ et al. And these would be well deserved considering the dizzying heights he’s taken the Reliance group to.

Among his most noted and wellspun strategic moves during the past have been Reliance’s backward integration move from textiles into polyester, increase in Reliance Petrochemicals’ manufacturing capacity from sub-million tonnes to over 13 million tones today.

Then we have the fair-skinned Darryl Green, the media-shy Tata Teleservices CEO who recently bid good-bye to the company after a stint of two years, and a silent one at that. And the reason for his exit simply being voluntary as company sources divulged to 4Ps B&M: “Green had voluntarily resigned... He was not sacked...” Darryl had joined the company in 2005 after moving out as the head of Vodafone Japan where he had a name for being an expert at re-structuring. He also managed to bring in greater efficiency by consolidating 9 regional companies at Vodafone Japan.

Post his MBA at Dartmouth College, Green spent his early career days with AT&T (USA, Japan and Hong Kong). He spent 11 years in the company and was President & CEO of AT&T Japan, when he retired. However, having been an expert in the mature Asian markets, his performance in the emerging Indian market was far from satisfactory – perhaps the reason why TTSL didn’t work very hard to keep him back! But just as they say, ‘right talent doesn’t go unnoticed’, he has already been appointed as the Exec. VP & President of Manpower’s Asia and Pacific operations. Hopefully, this time round, Green’s competitors will go green... with jealousy, of course!

4Ps B&M Research: Shweta Kapoor

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Source : IIPM Editorial, 2008

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

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Apa’cherry bomb?!

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Stylish Apache is one of those explosively powerful machines...

Winning comes easy for this brand – especially when it comes to counting the number of ‘awards’ this bike has won. Sample this – since launch, TVS Apache managed to scale seven awards – ranging from bike of the year (Overdrive, Autocar et al ‘06) to best design (BBC Top Gear ‘06) – in a single calendar year, which is a record of sorts! The strong and muscular bike is spot-on in terms of performance too and has a superior genetic material striking the right chords with the consumers, especially the youth. Apache has definitely put the Indian premium biking segment into an altogether different platform. The bike also managed to pierce through tough competition in the segment with heavyweights like the Pulsar and the CBZ. According to Prasad Narasimhan VP-Marketing, TVS Motors, “Apache is every youth’s dream machine. It’s a perfect blend of looks, design, styling, comfort and cutting edge technology. The new Apache RTR 160 will reinforce our dominating position in the industry...”

With a new variant launch, TVS hopes to attract more eyeballs and for sure give a greater thrust to its already improving sales. For long, TVS has remained in the shadows of Bajaj and Hero Honda. Is there a near term focus change for it? Well, lets’s ask Apache!

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Source : IIPM Editorial, 2008

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

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The Radio Star...

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...goes jingle jingle all the way!

Rang barse, barse barse, rang barse..., Sabka thanda ek, Kuch meetha ho jaye, these are some of the jingles that radio listeners across the country tune into every day or every hour these days. They sound familiar... Yes, for they are the radio adaptations of popular TV commercials of Reliance phones, Coca-Cola and Cadbury, respectively. Just over two years back, radio was an unattractive category in the country. Cut to 2007 and the radio FM wave is spreading far and wide.

According to a report by PwC, the medium is growing at a CAGR of 28% and the Rs.5 billion industry is expected to touch Rs.17 billion by 2011. Tarun Katial, CEO of BIG 92.7 FM is helpful with more figures, “Radio had a share of approximately 3% in 2006, up from 2.4% in 2005 and is expected to go up to 5% by 2008-09”.

Ever since things for radio started looking up in the country, small and medium sized organisations, real estate companies, Bollywood movies, et al have lapped it up. However, the presence of MNCs on the medium was scarce. But, that’s only till now! While corporates like Unilever, Marico are among the firsts, giants like Coca-Cola, Cadbury, HLL (Lux) are also queuing up to tap its potential.

While the reigning trend is to slightly modify the existing ads to suit the medium (as it’s the cheapest and the best), products like Marico’s Saffola, Hutch and lately Cadbury have already pressed the innovation button to cut through the growing clutter on the channels. Anand Chakravarthy, National Marketing Head, BIG 92.7 FM refers to BIG FM’s work for the Premier Hockey League where their jocks acted as ambassadors for various teams.

While the future surely looks bright, there are also major challenges facing it. While, marketers are falling over each other to tap stations in metros and mini metros, channels in smaller cities are still scouting for advertisers. Considering that advertising revenues are the only source of revenue, such stations are finding themselves on a sticky wicket. “Another challenge that the industry faces is that many products do not know how to use this medium. Moreover, even advertising agencies don’t have specialists to deal with it yet,” says Josy Paul, National Creative Director, JWT.

Till then, enjoy the jingle filled airways. Even as we make this statement, a few more of them would have been added!

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Source : IIPM Editorial, 2008

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

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The Sunday Indian - India's Greatest News weekly
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