Raj unleashes 'Goonda' Raj,Signboard makers may decide to work free for Raj when he contests the upcoming assembly elections.

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MNS's demonisation outside Maharashtra may consolidate its votes

An egotist nephew walks out of his clan frustrated that the nepotistic patriarch would prefer his son as his successor come what may. He burns with rage to prove his political prowess. When he writes (or someone else does it for him) he talks of strategies that Congresses across the world have employed. First hand lessons in politics (of hate) from his uncle are embedded deep within him. He knows that ‘insiders’ vote when ‘outsiders’ are demonised. He swiftly identifies the ‘bhaiya’ outsiders. The strategy works! He hits the headlines on TV, is highly popular on the Internet, is spoken about (read against) in the courts & corridors of power. Having demanded apologies from the greatest Indian movie star, he emerges as a pan-Indian hate symbol.

Raj Thackeray, the nephew of Balasaheb Thackeray knows how to play his cards. The Bombay High Court slammed the Maharashtra Police on September 25 for failing to take an action against him. A modern day Tughlaq that the Maharashtra government has allowed him to be, he ordered that all the sign boards in the global city to be changed into a language that he has known ever since he wore his first pair of knickers. The 'don'-ish order was largely followed. Later, a trader’s body approached the Court bringing that reprimanded the Maharashtra Police. Signboard makers may decide to work free for Raj when he contests the upcoming assembly elections. But then accepting his dictats may jeopardise Maharashtra's image. Assembly elections in Maharashtra are scheduled for next year. As far as poll history goes, Thackeray won 35 seats in 10 municipal corporations in February 2007. He is now a formidable power waiting to make a bigger killing. Prominent voices in Maharashtra oppose Thackeray’s tactics, albeit with a cautious approach. “Mumbai is a cosmopolitan city. That’s precisely why it won’t be right to force Marathi on this city,” says Yadavrao Pawar a retired IPS officer. But is anyone listening?


Shashank Shekhar & Devdas Matale


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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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Voted as Worst CEO of 2008 by WSJ, Schoonover's resignation was waiting to happen, now Circuit City desperately needs to shape up

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Life in a short circuited city

Schoonover also took certain drastic steps during his tenure, which totally shook the stakeholders’ confidence in his capabilities. In the spring of 2007, Schoonover gave pink slips to as many as 3,400 experienced and skilled employees in a cost-cutting move. Little did he realise that throwing out experienced and trusted employees could work negatively for the company, and it actually did.

Recently, Circuit City released its second quarter results and the company reported a net loss of $164.8 million as opposed to a net loss of $54.8 million during the same period last year. In FY 2007-08, Circuit City made a net loss of a devastating $319.9 million as opposed to a loss of $8.3 million in 2007– a decrease of 3754.21%! Over the last 12 months, the stock of Circuit City has plummeted by over 82.6% and stood at $1.37 on September 26, 2008 as against $7.70 on September 27, 2007. Circuit City has also been suffering on the sales front as the sales growth has fallen by 5.52% over the last one year. So now we know why The Wall Street Journal has named Schoonover as the worst CEO of 2008.

James A. Marcum, who was elected to Circuit City''s Board of Directors in June, 2008 has replaced Schoonover at the helm. Marcum has announced plans to roll out strategies to remodel their stores as well as relocation. However, Raymond James’ analyst Dan Wewer states in his report, “Execution risk associated with Circuit City''s aggressive store remodel and relocation strategy could negatively impact sales and profits.” In order to regain investors’ confidence, a strong business strategy is required; more importanly, there needs to be action on the ground. Or else? Well, like we said, failure at the top isn''t so bad, eh? But surely, Circuit City may be running out of chances to get back to winning ways.


Savreen Gadhoke


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


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Its BIG impact in Mumbai, BIG 92.7 was clearly ahead of its competitors.

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According to the latest finding of Radio Audience Measurement (RAM) BIG 92.7 FM station has become the clear No. 1 music station in Mumbai. On all the three parameters – Market Share, TSL (Time Spent Listening) and TARP (Target Audience Rating Points) for the week 40 of 2008, BIG 92.7 was clearly ahead of its competitors. This is for the first time since its launch, two years back, that BIG 92.7 FM has attained the numero uno position in Mumbai with a total market share of 18% in its kitty and highest TSL of 5.05 hours per week. However, it still has to contend with a close fight with Red 93.5 FM, which has a 17.5% market share and is only 0.5% behind BIG 92.7 FM and almost equal to it in terms of TARP.


Surbhi Chawla


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People don’t go there to see ads or click on them, so you run the risk of becoming a wallpaper on Orkut or Facebook

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There are still others like Puma, Reebok, Alibaba.com and many auto majors, et al, that are loathe to experiment, restricting themselves to plain vanilla banner ads on these networks that cost much more than creative campaigns. On the other hand, seeing the inherent potential many brands have gone the whole hog in an attempt to start and create a buzz around their own social networking platform. Take HUL’s shampoo brand Sunsilk’s attempt at creating an all-girl’s online community. Sunsilk Gang of Girls accomplished an online membership of 2,00,000 members in less than three months of its launch and is today the largest online all-girl community with over 42,040 gangs and 700,734 members. The idea was to enable girls across-the-globe, to ‘bond’ with each other and have lots of ‘girly’ fun – be it obsessing over a particular hair colour or lending a kind ear to a friend, besides enhancing the equity of the Sunsilk brand.

On their part, social networks are busy figuring out newer ways for brands to engage with their resident communities, without hampering their privacy. If MySpace is encouraging small and medium businesses to setup online stores and providing tools to make it easy to self-serve advertisements to their customers; Facebook is busy fanning the branding wave with the ‘fan’sumer. The site is encouraging users to identify with brands and become a fan (like a friend). The brands, in turn, may use these fans as endorsers to their own networks, resulting in trusted word-of-mouth. Videos, widgets and other applications can also be a part of this application. If a user, say Ratna, becomes a fan of Revlon, the latter can opt to purchase SocialAds from Facebook to display on Ratna’s profile. If Ratna ever makes an e-commerce transaction with Revlon, the Facebook Beacon service then transmits her action to her all her friends’ newfeeds, recommending similar. Ingenuous, ain’t it?

But here’s the inevitable word of caution. Social networks may be a smart and low cost way of building relations with a whole community of segmented (demographic and behavioural axes) users, but remember that the very popularity of social networks is what can also harm your brand. As Murthy asserts, “People don’t go there to see ads or click on them, so you run the risk of becoming a wallpaper on Orkut or Facebook.” Besides, if you have the benefit of influencing an entire group’s buying behaviour; you simultaneously run the risk of inviting their combined ire, if you ever serve them a wrong deal. Cadbury had to recall their Wispa Bar in the UK last year following pressure from social networking groups on MySpace and Bebo where the numbers demanding recall went as high as 14,000. Even Dell India was blown away by bloggers, as there were numerous complaints over its battery across social networks, forcing the company to respond pro-actively to consumer complaints. Talk about a true double-edged sword, if ever there was one. But that’s for marketers. For consumers, finally a community voice and action forum can help them bid adieu to shoddy products. Whether for kicking out mediocrity or a super cool way to create the buzz around your brand, social networks are here to stay. Love em’ or hate em’, but you certainly can’t ignore them!


Pawan Chabra and Neha Saraiya


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


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Satyam's Paradox unravelled, thanks mostly to the manner in which they have balanced the social and the strategic ends.

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The truth & nothing but the truth ... CSR hurts !

If one does an independent survey of the shareholder AGM of any organisation, ‘CSR initiatives by the company’ will arguably be the topic that invites the least interest, and the maximum yawns from the audience; especially if it is taken up post the all important topics of dividends (on second thoughts, it may attract maximum interest if shareholders are unhappy with the dividend)! To the common man, it is hardly believable that in today’s capitalist society, companies would do good for communities, environment, and the likes; because they are ‘genuinely concerned’. It would be only logical to expect that the company has a definite motive, whether it be linked to its overall strategy or for branding (especially when they face a back lash of some sort) itself as a good corporate citizen. Many CSR initiatives have been blamed as “cosmetic: public relations and media campaigns” supporting nothing but an upcoming cottage industry for glossy CSR report writers. The consensus is that if the ‘S’ in CSR stands for ‘Social’, it must also equally, or perhaps even more importantly, stand for ‘Strategic’. There are many corporations that have become famous, thanks mostly to the manner in which they have balanced the social and the strategic ends. They all followed strategic CSR, by adopting practices that go beyond the best practices, and by creating a unique position for themselves by applying principles that relate to company’s relationship to society as easily as to its relationship with customers and competitors. Recently, in a survey conducted by IBM’s Institute for Business Value, it was discovered that more than 68% of the organisations are now utilising CSR as an opportunity and a platform for growth.

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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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All's fair in love and war! After last month's UN linking of impoverished Rwanda to the rebel group....

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The momentum has been set, now Rwanda & Congo must sustain it

Laurent Nkunda, who heads Congo's most powerful Tutsi rebel faction, was last week arrested in neighbouring Rwanda – which for years has supported his ruthless anti-Hutu insurgency in the region. Speculation is rife that Nkunda's arrest could be part of a Rwandan tradeoff with Congo. Some senior UN officials believe Congo might now be persuaded to go after Rwandan Hutu rebels. The arrest of Nkunda, on the other hand, means Rwanda is finally ready to abandon him and embrace the splinter faction of his movement, the National Congress for the Defence of the People (CNDP).

Nkunda on his part had displaced more than 250,000 people in eastern Congo in 2004. The humanitarian crisis and global outrage this provoked had forced both the Congolese and Rwandan governments to meet across the table. After last month's UN linking of impoverished Rwanda to the rebel group, while international donors threatened to cut off aid, Rwanda saw sense in snapping ties with Nkunda. The rebel leader was captured after his forces failed to subdue the unprecedented joint Rwandan-Congolese military operation. Rwanda, which has invaded Congo twice since the 1994 carnage, has surprisingly changed tracks and is evidently under global pressure.

Many in Congo's government now want Rwanda to extradite Nkunda, so he can be tried for war crimes. However, will Rwanda do that or, following more private trade-offs, eventually allow its former ally to retire in some Tutsi-protected retreat? The outcome – either way – should tell us about the extent of the collaboration between Congolese President Joseph Kabila and his Rwandan counterpart Paul Kagame. It is important that they do not disturb this positive trend so that lasting peace may prevail.

Asad


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Source : IIPM Editorial, 2008
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You’d do ‘Neutron’ Jack proud!

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Jobs cuts, during recession become a ‘necessary’ evil; and this is the only quick solution for companies...

The thrice-marrried, former GE CEO, Jack Welch could never find another reason to be happier. Excuse us here; we’re not talking about Jack becoming a father again (he has already celebrated 73 years glorious years on the planet for Chrissake!); but about others preaching the layoff culture at GE, many years after he quit GE (strict reference to his act of firing about 120,000 ‘bottom 10%’ employees). And it is his two ‘action-packed’ decades long terrific tenure at GE that on one hand deserves all the credit for a tub-thumping appreciation of 4,100% in GE’s market value (making it the most valuable company by 2001!) and on the other, seems to have created a model of leadership that fellow-American MNCs and those from the Eurozone & First World have begun to emulate. Yes, we’re talking about the lay-off announcements that were made in the past week; there was GM confirming 2,000 cuts, Caterpillar – 12,000; Pfizer – 19,500; Sprint-Nextel – 8,000; Intel– 6,000; Philips – 6,000; Corus – 5,500; Corning Inc. – 3,500; ING – 7,000; Texas Instruments – 3,500; Home Depot – 7,000; Microsoft – 5,500; Hitachi – 27,000; Ford – 1,200, UAL – 1,000… and the list continues.

Reacting to these announcements, an emotional US President, Barack Obama said, “These are not just numbers on a page... these are working men & women whose families have been disrupted and whose dreams have been put on hold…” Indeed, Obama puts his emotions in good light here, but are not these actions mere rampages sans rationale?

We need to question the very ‘fundamental necessity’ of job-cuts, especially with unemployment rates having grown meteorically from 4.7% in December 2007 to 7.2% in December (a 15-year high!) as per a January 2009 report by IHS Global Insight The report further suggests how during just the last four months, 2 million jobs were slashed – representing 80% of total cut during the current downturn. Worst, the report proves how, we are “just halfway to the total job loss anticipated during this cycle,” thereby forecasting the unemployment rate to rise above 9% by early-2010 (highest in 30 years). Surely, we are on the verge of making some ‘bitterly forgettable’ history!

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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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Advancing the Field

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Eduardo Zarza is having a great day. In fact, he’s having a great year. With a barely suppressed grin, PSA’s director of concentrating solar research describes how the center has gone from a research outpost, where he and other researchers toiled away on solar thermal power for 25 years, to an international superstar (at least in certain circles), with near daily visits from companies and scientists from around the world. Says Zarza, “Every week we have several companies coming to see the facilities to get information, because they’re interested in investing in solar thermal plants. The situation has changed dramatically in only two years.”

The center, surrounded by dusty rosecolored mountains dotted with green, lies in a particularly dry area, with only 20 percent of Andalusia’s average rainfall. Back in the 1970s, with Western countries feeling the pressure of restricted accessto oil, a consortium of nine countries— eight European nations and the United States—signed an agreement to investigate two solar technologies: one based on parabolic troughs, the other on a central receiver (like Solúcar’s tower receiver).

In 1985, the test results were in: both technologies were commercially feasible, but costs were too high. Since then, the center has continued testing and refining the technology, working with universities and countries around the world. Though there are other research centers with departments dedicated to concentrating solar power, PSA is the largest such research center in the world. The center is one of two Spanish research facilities that operate as part of what’s known as Ciemat (the other, near Madrid, focuses on wind and biomass). Sixty percent of the budget comes from the government, while the other 40 percent comes from grants and industry partnership. Lack of funds threatened the center’s operations several times, and it nearly closed.

A rapidly growing interest in renewables, government incentives to promote energy alternatives, and the rising cost of oil and gas placed PSA in the perfect position to take a leading role in the development of renewable energy technologies. After decades in the literal and figurative desert, Zarza finds himself at the center of a renaissance: the technology is finally, once again, entering the marketplace— and the center’s activities appear secure and are flourishing. “We’re very happy with the situation now,” says Zarza. “In the past, few people wanted to learn about our systems—now, everybody wants to."

Research has focused on technologies to increase the efficiency and decrease the cost of these concentrating solar systems. Reflectors and absorber pipes have been refined, and the coupling between the solar and conventional systems has been improved. The use of molten salt for heat storage was tested on-site before Sener went ahead with plans to install such a system in the new Andasol facility. Researchers also continue partnering with European companies to develop alternative and even more effective storage systems, which could greatly increase solar thermal’s viability in the marketplace.

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


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Pope Gregory to Abbot Mellitus

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This is the well-known letter concerning the conversion of the Anglo-Saxons, written by Pope Gregory to Abbot Mellitus in the year 601 AD, when the latter was on his way to join Saint Augustine in England to aid him in the Anglo-Saxons conversion. The letter is used by many as proof that after the conversion of the Anglo-Saxons to Christianity, many pre Christian-heathen traditions and lore were allowed to continue. It seems that compared to many other places in Europe the conversion process was relatively peaceful and quiet in England.

14th June 601

in the year of our Lord

To his most beloved son, the Abbot Mellitus

We have been much concerned, since the departure of our congregation that is with you, because we have received no account of the success of your journey. When, therefore, Almighty God shall bring you to the most reverend Bishop Augustine, our brother, tell him what I have, upon mature deliberation on the affair of the English, determined upon, viz., that the temples of the idols in that nation ought not to be destroyed; but let the idols that are in them be destroyed; let holy water be made and sprinkled in the said temples, let altars be erected, and relics placed. For if those temples are well built, it is requisite that they be converted from the worship of devils to the service of the true God; that the nation, seeing that their temples are not destroyed, may remove error from their hearts, and knowing and adoring the true God, may the more familiarly resort to the places to which they have been accustomed.

And because they have been used to slaughter many oxen in the sacrifices to devils, some solemnity must be exchanged for them on this account, as that on the day of the dedication, or the nativities of the holy martyrs, whose relics are there deposited, they may build themselves huts of the boughs of trees, about those churches which have been turned to that use from temples, and celebrate the solemnity with religious feasting, and no more offer beasts to the Devil, but kill cattle to the praise of God in their eating, and return thanks to the Giver of all things for their sustenance; to the end that, whilst some gratifications are outwardly permitted them, they may the more easily consent to the inward consolations of the grace of God. For there is no doubt that it is impossible to efface everything at once from their obdurate minds; because he who endeavours to ascend to the highest place, rises by degrees or steps, and not by leaps. Thus the Lord made Himself known to the people of Israel in Egypt; and yet He allowed them the use of the sacrifices which they were wont to offer to the Devil, in his own worship; so as to command them in his sacrifice to kill beasts, to the end that, changing their hearts, they might lay aside one part of the sacrifice, whilst they retained another; that whilst they offered the same beasts which they were wont to offer, they should offer them to God, and not to idols; and thus they would no longer be the same sacrifices. Thus it behoves your affection to communicate to our aforesaid brother, that he, being there present, may consider how he is to order all things. God preserve you in safety, most beloved son. Pope Gregory,

The servant of the servants of God


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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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IIPM awards four Bengali novelists

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