Friday, May 31, 2013

'Global Zero' Possibilities

A nuclear-weapons-free world seems a dream; no harm trying...

The IAEA Director General, Yukiya Amano recently mentioned that “as a human being, as Director General of the IAEA – and not least as a citizen of the only country ever to experience the unspeakable horror of nuclear bombs – I believe with all my heart and soul that these horrific weapons must be eliminated.” What is unique in his statement is that such talk of a nuclear-weapons-free world has almost but vanished even from the lexicons of peaceniks. You see, it’s now considered childish to recommend such paradigm reversing objectives. Nuclear weapons are surely here to stay... or are they? Could there really be a possibility of a nuclear-weapons-free world? Well, as one defence commentator put it to yours truly, if India could eradicate polio, then anything is possible. Not many might remember that the Nuclear Weapons Convention (NWC) has actually aimed at the complete elimination of nuclear weapons. Those in the know would remember the global campaign called “Global Zero” which was launched in Paris in 2008 for the elimination of Weapons of Mass Destruction (WMD). Yet, against the backdrop of the renewed nuclear race – encompassing Iran, India, Pakistan, Korea, China etcetera – it’s quite unlikely that the philosophies of the NWC or Global Zero campaigns would cut any ice with the global warlocks.

As per various estimates, there are more than 23,000 nuclear warheads active in the world, most with the old foxes (America and Russia primarily); that’s one reason that nouveau entrants into the nuclear club too have all their guns blazing. North Korea, which conducted its third nuclear test last month, stated that they are developing this, targeting the US over its hostile interference in Pyongyang. Iran’s supreme leader Ayatollah Khamenei, who had urged the elimination of nuclear weapons previously, has warned that “no power could stop us if we are forced to build that.” And the less said about Pakistan, the better.

While US President Obama did mention his objective “to secure the peace of the world without nuclear weapons” in his initial addresses in 2009, he ignored such a mention in his January 2013 inaugural address. Even Senator John Kerry recently admitted that “a nuclear-weapons-free world is no more than an aspiration.” Yet, one cannot deny that nuclear weapons have not been used since 1945. For instance, the United States and Soviet Union were ready to accept their embarrassing defeat in their wars in Afghanistan and Vietnam rather than use nuclear weapons for a desperate win. South Africa has rejected nuclear weapons post the Cold War.


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

Wednesday, May 29, 2013

Book Review: Tata Log

The company one keeps

Since 1868, when the founder and first chairman Jamsetji Nusserwanji Tata established a private trading firm in Mumbai. it has not only grown and transformed into India’s premier industrial house but has also touched everyone’s life with salt to satellite television, steel to supercomputers to automobiles and what not. Not a day goes by when we are not touched by some or the other Tata product or services or news about them. The latest offering was the ascendency of Cyrus Mistry replacing Ratan Tata as chairman of Tata Group.

It is one industrial house in India that has been well chronicled beginning with RM Lala— the man who penned books such as The Creation Of Wealth: The Tatas From The 19th To 21st Century and Beyond The Last Blue Mountain: A Life Of J.R.D. Tata. Three years back, Morgen Witzel, a leading business historian authored a book Tata: The Evolution of a Corporate Brand. What differentiates Tata Log, written by Harish Bhat, managing director and CEO of Tata Global Beverages, from the previous works is that it attempts to portray how Tata companies have broken new ground and set new standards of excellence over the past two decades since the Indian economy was liberalised in 1991. Secondly by focussing on people who were involved in different projects closely and their dreams and dilemmas, crises and challenges, Bhat has captured the subaltern view of the post-liberalisation decades.

An old Tata hand, Bhat, who has been trying his hand at writing besides managing workers and business, has carefully chosen eight stories that reveal the Tata way of life. This lends a human touch to the Tata Group.

The book begins with the making of India’s first indigenously designed car, the Indica, followed by how Tata Chemicals in Mithapur is transforming the lives of a community in a far-flung, semi-arid corner of the country committed to social causes as diverse as raising the water table in a barren area to protecting the endangered whale shark. Equally interesting is the tale of Tanishq, and how Titan Industries is modernizing and transforming the huge jewellery industry in India.


The chapter on the tribulations of Tata Finance that brought out the worst and the best in the group is timely as Tata Capital is trying to emerge as a new player in the market.

Equally amazing is the story on Second Career Internship Programme, or SCIP, of the Tatas, which offers a second career to women who take a break to raise a family, and the building of the world’s fourth fastest and Asia’s fastest supercomputer-‘EKA’ by S Ramadorai and his team. These chapters peep into how Tata Group transformed itself and various communities and stakeholders around them.

Two stories - one on the first-ever acquisition of an iconic global brand by an Indian company - Tetley and the other about how Tata Steel became the first Indian organisation to win Japan’s prestigious Deming Prize for quality - have been showcased by the author to illustrate Tata’s arrival on the global scene more emphatically than ever before.

As a good storyteller, Bhat has taken care to pepper each of the chapters with interesting anecdotes. For instance he quotes Xerxes Desai, the man who founded Tanishq, to reveal that the name was actually inspired by a Harlequin Great Dane owned by him. The dog was called Monishqa.


In all these eight stories Bhat tell us that the Tata Way is all about 4Ps — pioneering, purposive, principled and perfect - and builds his case to exemplify these 4Ps.

If Bhat chooses to tell us how the group transformed after Indian economy began to walk on the path of liberalisation, he ought to have included the Nira Radia episode, the telecom scam, and the withdrawal of Nano project from West Bengal. But none of these finds a mention in Tata Log.
As the title suggests, Tata Log is at best a record keeping or about ‘Log’- people. Of course it is a question whether somebody like Bhat, who is a sensitive insider, would have dared to include these episodes. Also missing is the extraordinary response of the staff of the Taj Mahal Hotel in Mumbai during 26/11 attack.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles

Saturday, May 25, 2013

Passing the baton

Jaipur marks a watershed in Congress’ chequered history by ushering in Rahul Gandhi as a new year gift. Pramod Kumar reports from the Chintin Shivir

The glorious history of Rajasthan, given its geographical location, is replete with instances of valour and comebacks, of success stories pulled out of thin air and against all odds.

 Rahul Gandhi’s ‘coronation’ as the virtual heir apparent to India’s ruling dynasty at this week’s Chintin Shivir in Jaipur should be seen in that backdrop.

 There was pathos, tears and raw emotion, all ingredients that make up for family melodrama and have the potential to move the masses politically, as few other slogans can.

 The Rahul Gandhi that came out was the new face of the Congress: young, exuberant, ready to take on challenges and the country onto another level. More pertinently, there was the promise of new politics, slogans and faces; it was as if a beleaguered Congress party was trying to exorcise the ghosts of the UPA as 2014 draws close and who better than Rahul to navigate the treacherous road ahead?

The unofficial handing over the baton to Rahul was by no means an accidental happening, it was carefully choreographed from start to finish. The developments that unfolded had keeping the Election Commission’s Code of Conduct in mind. First Rahul was introduced at New Delhi’s Ramlila Grounds on November 4 last year to ‘acquaint’ him with party workers; on November 9, in the next round, it were members of the Congress Working Committee (CWC) who were formally introduced to Rahul. These were traditional testers to gauge the mood of the cadres - not that it was required - but in the light of Rahul’s somewhat unsuccessful 2012 with reverses in UP and Gujarat, no one in the party was willing to take any chances.

 Once the core group around Congress president Sonia Gandhi decided that the Gandhi family grip on the party apparatus had in no way declined, then it became a question of time and matter of completing formalities. As a background to the carefully orchestrated coronation, young ministers were inducted in the Union Cabinet as a first step; the Chintin Shivir then only became an occasion to formalise a political contract which everyone knew existed.

Sonia herself set the ball rolling when she emphasised that policies need to be framed keeping the aspirations and frustrations of the angry youth in mind, whose issues could no longer be ignored.

It was known in the party that there would be a Jaipur Declaration and it would be headed by Rahul. It did not quite happen that way. On the second day of the proceedings, the Jaipur Declaration came and went without causing too much of a flutter; Rahul’s induction became the biggest event for Congress in the New Year.

An actual look at proceedings will tell you that after Rahul, the buzz was around young ministers. Jyotiraditya Scindia, Milind Deora, Jitin Prasad, RPN Singh and Sachin Pilot, were all flavour of the meet. A very busy BK Hari Prasad and Mukul Wasnik showed that the Jaipur Chintin Shivir, more than anything else, signaled yet another generational shift in India’s first political family.


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

Friday, May 24, 2013

Movie review :Table No 21

Heavy weather in cool climes

It isn’t love that makes the world go round for Fiji resort owner Abdul Razzaq Khan (Paresh Rawal). Fear does. He asks the male protagonist: do you believe in God? Yes, the latter replies. No, you fear God, retorts Mr. Khan. For good measure, he adds: “Dar sey hi dunia chalti hai.”

You squirm: God! Is Paresh Rawal still in OMG mode? He isn’t. There is no Akshay Kumar here in the guise of Lord Krishna; for Table No. 21 is neither a social satire nor a profound cinematic discourse on the flip side of faith. Is it, then, a dark thriller that pulsates with life? That neither. Simply put, it is an eminently forgettable film.

On the face of it, Mr. Khan isn’t a pleasant guy to know. He employs all the dread that he can drum up and paints an unsuspecting couple, Vivaan and Siya Agasthi (Rajeev Khandelwal and Tena Desae), into a murky corner that proves too difficult for the lovey-dovey duo to squeeze out of.

For sure, Mr. Khan isn’t playing harmless games. He actually has a deadly point to prove, but we know not what he is really up to until the very tail-end of Table No. 21. Not that it matters.

In Aditya Datt’s cat and mouse thriller, the natural beauty of the salubrious island location far outstrips the less-than-dramatic energy of the fictive battle of psychological attrition that plays out as a series of tricky questions and tasks that Mr. Khan, as the host of an online game show, comes up with for the couple.   

The basic premise of Table No. 21 is intriguing enough; the performances are adequate, if not spectacular and the cinematography and editing are both of the highest order. What the film lacks is a genuinely gripping storyline.

The screenplay is overloaded with clichés right out of more conventional Bollywood melodramas – an out-of-work young man struggling to make ends meet and waiting for his big break; a doting wife as adept at romping in an itsy-bitsy bikini on a beach as at going the extra ‘immoral’ mile in keeping the home fires burning, and a deceptively courteous tormentor hell bent on messing up the twosome’s not-so-hard-earned idyllic vacation.
 
“Secrets are sexy”, Mr. Khan intones, his voice dripping menace. But he isn't the only one who has reasons to keep his cards close to his chest. Vivaan and Siya, too, have demons from the past to deal with.

The tale of sweet nothings, half-truths and betrayals that lie at the heart of Table No. 21 – the number refers to the Article of the Indian Constitution that guarantees “protection of life and personal liberty” – has a high-minded purpose.

Sadly, the methods it uses to get its point across are painfully laboured. Neither the social objective of the statement that it makes nor the dramatic intent of the mise en scène is served well enough in the bargain.


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

Saturday, May 11, 2013

KIDNEY TRANSPLANTATIONS: DELAYS

Stringent laws and complicated procedures are delaying the kidney transplantation process killing more people in the process

This amendment may have succeeded in controlling the kidney racket scandal to a certain limit but it has several loopholes. Mostly, it has been severally criticized as being an unduly elongated process to get approvals for unrelated kidney donation. Due to the lengthy procedure and absence of government nominees on the authorisation committee, transplants have been stalled or delayed in several hospitals. One nephrologist from a reputed hospital said, “We appreciate the move of the government but the procedure has been moving at a snail’s pace.”

In one example, in 2011, many transplants in Maharashtra got delayed for a few months in several hospitals due to delays in release of authorisation letters. Although there is no official data on whether any deaths took place due to delayed release of approval letters, there is no doubt that this may have been the case. Kidney transplantation on an average burns the pocket of an individual by almost Rs 400,000 (if the same is done legally!); post-operative expenses come to around Rs.10,000 per month! And in case the deal is illegal, then the recipient’s family has to conjure up another Rs.200,000 to Rs.400,000.

In reality, the stringent laws that have come into force have not been able to completely curb the illegal kidney racket – but worse, in some cases, have ensured that honest and emergency cases of transplants have not been processed in time. The need of the moment is for the government to now set a more stringent time-bound condition on the Authorization Committee to clear any pending case for kidney transplantation within 24 hours of them receiving the application. If such a time duration seems too less, then the government should immediately disband the concept of an authorization committee which does not understand the criticality of life and death situations.


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

Thursday, May 09, 2013

Shifting your focus to match customer needs

It is critical for organisations to adopt a scientific approach to understanding how they can meet customer needs, and to firmly ingrain a customer-focused culture throughout the organisation
 

We have often heard the phrase, “Customer is king”. While it is self-evident that higher satisfaction levels give a company an edge over sales, company growth and reputation, what it really does in the long term is to ensure that existing customers stay happy, resulting in better relationships and happier employees. Customer-focused companies are more attuned to the market and better able to stay ahead.

I refer to Harley-Davidson’s customer focused culture as one of the best in the world. It is the longest, continuous manufacturer of motorcycles in the US and has outlived nearly all of its competitors. In the twenty short years since Harley-Davidson started its Owners Group programs, it has grown to over 500,000 members & each of them own at least one motorcycle. The question to ask is: Is there any other consumer product in the world that will prompt customers to travel over several continents to be part of a group experience? Customers and employees alike take great pride in their affiliation with the company and this continues to make Harley-Davidson one of the great success stories of our time.

There is simply nothing – nothing – more important than getting to know the needs of your customer in a detailed and scientific manner. In the words of Michael Dell, “By spending time with your customers where they do business, you can learn more than by bringing them to where you do business”.

80% of companies believe they deliver a superior customer experience; however, only 8% of their customers agree. Why? Your customers are looking for maximum value when spending their hard-earned cash, particularly in this economy. The customer experience requires the active participation of everyone in your organization. This is where the word “Satisfy” comes into play. What it means is that your company is providing nothing more or less than what the customer expects. Creating a customer-focused culture is a proven strategy for both short-term success and long-term growth.

Going by the industry’s best practices, let me share with you some key insights into what will really work for you or your company.


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

Wednesday, May 08, 2013

The brightest stars in Indian politics, Rajiv Gandhi

Known as one of the brightest stars in Indian politics, Rajiv Gandhi’s assassination shook up the foundation of the Congress party. A documentation of how his death reversed fortunes of the party, and dramatically altered the Indian political scenario...

What is most interesting about the post-Rajiv era is the shape Indian politics took after 1991. During the 1991 elections, the Congress was expected to win the largest number of Lok Sabha seats. That happened. But after the assassination, with no one from the Nehru-Gandhi family at the helm, the Congress party started to grow weak. Although the party was in power from 1991 to 1996 under Narsimha Rao, it started losing ground in crucial states, one of which was UP. The the emergence of regional parties and the rise of rightists led by the BJP made the environment more challenging for the Congress. With no charismatic leader to take control, the fortunes of the Congress looked to be on the decline. The regional sections of the Congress and the anti-Nehru-Gandhi factions grew stronger with the rise of Narsimha Rao and Sitaram Kesari. “With Narsimha Rao as PM and Kesari as party president, Mandal-Kamandal (OBC reservations – Hindutva) politics became too prominent. It was around this time that BJP first emerged as a probable alternative,” says Dutta.

The assassination of Rajiv led to the emergence of BJP with the Ram Mandir movement. Politics over religion was at its helm. Lok Sabha elections a year after the Babri Masjid demolition saw the BJP-led-NDA come to power with Atal Behari Vajpayee taking over as PM.

In a way, the demise of Rajiv resulted in the end of the single party system in India’s national politics. It led to a situation where regional parties started to revolve around two main political heavyweights – UPA and NDA. It exists even today.

The void that was created in the summer of ‘91 still hurts the Congress, which is today busy working towards strengthening its image amidst scams and incidents of corruption. Also to blame is the party’s weak structures in states such as UP, Bihar and MP, which account for a total of 179 seats in the Lok Sabha (33% of total), and its increased dependence on regional parties in recent years. Politically therefore, Rajiv’s absence has affected the Congress party adversely.

But are we forgetting that there is perhaps another Rajiv in the making? Rahul could be the new Rajiv. There are questions being asked about whether circumstances favour the party’s crown prince the way they favoured his predecessors. But Rahul doesn’t seem to care about the odds. For years now we have had political pundits talk about the charisma of the Nehru-Gandhi dynasty and how it could help revive the Congress party as it faces a political onslaught from entrenched regional parties, an aggressive right wing and ever more vigilant civil society groups. Perhaps Rahul is the hope who can fill some of the void that was created in the Congress bench after Rajiv was gone Many claim the junior Gandhi is yet to prove his mettle. But does Rahul care? He is charismatic, young, widely talked about, and has just about crossed over to the wiser side of 40 – characteristics that we associated with Rajiv in the years that preceded his ascension to the PM’s office (in 1984). Yes, he still has to embed into civil society his clear intent to demolish corruption, a factor that will play a huge role in the 2014 Lok Sabha elections. But perhaps, it is Rahul who could enable Congress to form a non-coalition government in the years to come. There have been disappointing consequences of the assassination. But the rise of Rahul in 21st century Indian politics may prove to be the all important upshot of that incident.


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

Monday, May 06, 2013

Needed cash to reduce its interest costs

With the recent Diageo deal, the UB group has got some much needed cash to reduce its interest costs. But as major group companies continue to struggle with unfathomable debt loads, the only freely flowing commodity is advice!

It seems sensible to infuse the cash back into the flagship company. Outside of the deal with Diageo, though, United Spirits has few other deleveraging options; such as selling shares worth around Rs.4 billion in its sister concern United Breweries, besides offloading stake in Bangalore Royal Challengers, its IPL team. In an attempt to unlock the value of its non-core assets, the group is said to be mulling over a proposal by private equity fund Blackstone to buy out the prime office, retail & real estate blocks in its flagship UB City for Rs.5.5 billion (at the time of this issue going to print). Over the last one year, the group’s other major business has also turned loss making. Mangalore Chemicals and Fertilizers, which earned a net profit of Rs.29.7 billion for Q1, FY 2011-12, posted a net loss of $12.49 billion for the corresponding period this year, owing to financing costs that rose by almost 400%.

Aviation is clearly the next business to bail out of. Kingfisher Airlines’ debt position has turned from bad to worse since it acquired debt-laden low cost carrier Deccan Aviation. At the time of the deal, the combined losses of the two entities amounted to around Rs.20 billion. This became the starting point for the entire disaster. The situation turned so bad that Kingfisher Airlines has even lost its flying rights due to non-payment of various dues. Its lenders have refused to provide any further assistance unless the company gets equity infusion. Their stance got tougher after the recent announcement by their promoter. Dr.Vijay Mallya, who is known for his swanky lifestyle, said that he would infuse £50 million (around Rs.4.4 billion) into his Formula One racing team – Sahara Force India.

But seeing that Kingfisher has to be given up eventually, the question remains on how it should be valued by any acquirer. To be fair, it was a honest attempt at creating a new aviation experience and a uniquely premium airline brand for the discerning flier. However, the financial situation is a huge deterrent for any investor, even if he values the power of the Kingfisher brand. Sudip Bandopadhyay, MD & CEO, Destimony Securities, remains cautious when he says, “It is extremely difficult to put a scientific basis for a valuation of Kingfisher Airlines at this stage, since they have lost most of their rights and businesses. However, based on the strength of the brand, earlier track record and assuming that the flying rights can be gained back, we can look at a valuation around Rs.25 billion for a transaction involving controlling stake.” However, in the absence of any physical assets, flying rights and evaluation methodology the figure of Rs.25 billion also looks too good to be achieved, just in case the top management of the group plans to finally move ahead with such a stake sale. One of the major lifelines they would be looking forward to is the expected government clearance for further opening up of the aviation sector for foreign investment. If things go on as expected, this could be the best exit option for the ailing airline. However, for this to happen, Kingfisher Airlines needs to first regain its flying rights and revamp its distorted image. Brand equity has reached new lows due to the company’s persistent inability to pay salaries on time. As on November 17, employees had just started receiving their salaries for the month of May after repeatedly failed promises.


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

Saturday, May 04, 2013

The B&E B-SCHOOL PANEL MEET 2012-13

For three years now, B&E has been coming out with its critically acclaimed annual B-school rankings, which rank the top 30 B-schools in India uniquely based on the scores given by industry leaders to the top 30 B-schools (shortlisted on the basis of rigorous primary and secondary research by ICMR) on five critical parameters – course content, industry interface, faculty research & writing, global exposure and placements & packages.

The B&E B-School Panel Meet 2012-13 focused on whether ‘entrepreneurship’ and ‘social inclusion’ should be added to the five existing parameters to rank the top 30 B-schools. While there was widespread consensus on the need to inculcate an entrepreneurial spirit, panel members also expressed concern that B-schools were creating more employees rather than entrepreneurs. Dr. M. K. Chaudhuri, Founder-Director, IIPM, commented, “To be a successful entrepreneur, some experience is essential. Only after 3-5 years experience in some product/market, I can imagine that they can innovate on a new product and look forward to almost 100% success. A placement is absolutely necessary if you want to achieve some business objective.”

In terms of social inclusion, the debate centred on whether it is really relevant to corporate strategy, and consequently, to B-school education. Prof. Arindam Chaudhuri, Editor-in-Chief, Planman Media, asserted that it was an absolute necessity and stated, “At IIPM, we propagate the philosophy of ‘survival of the weakest’, as opposed to ‘survival of the fittest’, which is how the world runs. But if you want to change the society to a more humane society, you have to focus on ‘survival of the weakest’, which is also the philosophy that we follow in our families.” He further added that if the industry could lobby for purchasing power for the bottom 80%, they would be really lobbying for 20 years of profits.


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

Thursday, May 02, 2013

Why everybody at SpiceJet loves Raymond

Two years back, Neil Raymond Mills took over as SpiceJet’s new chief. Then, the airline was unwell. He began by slashing costs. Strategies that didn’t make economic sense were forgotten. Today, the airline appears a turnaround tale. Reality is, the job isn’t over yet. Worse, harsh history could repeat itself

A simple analogy. If you drive a car at a constant speed minus stops, you burn less fuel. The gains don’t become apparent after each short drive. But in a quarter of a year, the reduction in fuel consumption starts to show. The results become more pronounced in a year. Much is saved in gas and cash. Common sense. But most airlines in India ignore such small money-saving acts. SpiceJet is not one of them. At the airline, this “constant speed” philosophy is communicated as a compulsory key message to each of its newly recruited pilots. These cockpit handlers are supposed to remember it every time they leave an air strip. The idea is to get the pilots to save anywhere between 0.5% to 1% of the airline’s fuel bill. A small chunk saved. But at SpiceJet, if a cost can be avoided, it is.

Cost-cutting doesn’t always help
The company’s hardheaded emphasis on lowering costs does affect its operational efficiency metrics. Unfavourably at times. In July 2012, SpiceJet’s On-Time Performance (OTP) on domestic routes was 84.3%. That meant, about 16 of every 100 flights were delayed beyond 15 minutes. Much of this is can be blamed on the constant speed norm that is in place at the airline. This makes the airline’s record only better than the havoc-stricken Air India’s (OTP of 81.2%) and now-stripped-to-the-bone Kingfisher Airlines’ (81%). All other airlines recorded OTPs in the 90%-plus range [IndiGo: 95.3%, GoAir: 90.3%, and Jet: 91.6%]. The company isn’t one to worry about offloading passengers to peer carriers (and cancelling flights) either, when load factors don’t justify economics. The carrier strives to maintain an average load factor (LF) of over 75%, and plans to increase it over the quarters to come [in Q1, FY2012-13, LF was 80.8%]. Result: SpiceJet’s flight cancellation record (2%) is only better than those of Air India (3.2%) and Kingfisher (8.2%). Others boast of a lower figure (IndiGo: 0.1%, Jet:1.4%, GoAir: 1.6%).

Mills... a number-loving turnaround guy
But CEO Neil Mills, who has turned around the airline in the past two years, knows that these numbers only tell a part of the SpiceJet story. He is familiar with how budget airlines work. An industry veteran of over 20 years, this former CFO of Middle-Eastern LCC Flydubai knows his numbers fall on the rational side. He measures every paragraph in the book by weighing data. That is exactly how he helped build Flydubai from scratch. He plugged cost holes at the company, and improved its balance sheet, helping the airline grow from a drawing on the whiteboard to a fleet of nine operating aircraft in just a year-and-a-half. Before Flydubai, he was at easyJet for 12 long years. Under him, the company grew from 4 to 174 aircraft, and became one of the biggest, most profitable airlines in Europe.

Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles