Tuesday, October 21, 2008

False Prophets

Building bridges between Muslims, Christians, and Jews seems like a worthy goal. But, by glossing over serious differences, the organisations at the forefront of interfaith dialogue confuse discussion with success – and end up leaving everyone at risk. By Geneive Abdo, liaison, un’s alliance of civilisations
Like many international institutions, the United Nations says it seeks to address Muslim extremism. Who else but the collection of states with the broadest mandate, most members, and loftiest goals could tackle this perversion of civilised society and threat to world order? So, when I was hired in January 2006 for a project to devise a United Nations response to the so-called clash of civilisations, it seemed to be a pretty worthy way to consider this challenge on a global scale. At the urging of the prime ministers of Spain and Turkey, the then Secretary-General of United Nations, Kofi Annan established the Alliance of Civilisations with the primary goal of identifying the roots of the divide between Western and Islamic societies and, ultimately, to find ways to curb religious violence.

Part of my job was to travel around the world, collecting the views of leaders of Islamist parties and movements. Their ideas would then be included in a document th--e alliance would publish at the end of that year. The United Nations hoped the document would receive international press coverage and generate funding for the solutions, or at least some “practical steps,” it would propose to bridge the divide between Western and Islamic societies. There seemed to be no better way, I thought, to clarify the Islamist vision – one ignored and rejected by Western governments – for a wide international audience. Based on my own research on Islamic revivalism during a decade in the Middle East, I knew these dozen or so leading activists could shed light on the major causes of extremism, namely, anger and resentment at US foreign policy; beliefs that the September 11 attacks sparked an ideological war between Islam and the West; and the underlying conviction that Islam would cure the ills that a decadent West had imposed on the world.


Almost as soon as the project began, though, a fear of political backlash proved to outweigh any potential for mutual understanding. At a meeting in Qatar with a 20-member committee composed of former ministers, diplomats, and scholars, the question of whether the views of Islamists would be part of the alliance’s work was raised in public discussions. One of Kofi Annan’s special advisors decided that meetings with Islamists would amount to scandal for the United Nations. For me, the reversal was one of a few defining moments in my understanding of the risks the institution was willing to take. More profoundly, it exposed the philosophical divide within the alliance: Was the best way to deal with extremism through a head-on political approach or an indirect cultural one? Is it better to engage directly with Islamists and learn first hand their grievances and convictions, or to create Hollywood films for the Muslim masses in the hopes of changing perceptions of the West and vice versa? In the end, the cultural strategists won out, much to my dismay.

Today, as the Alliance of Civilisations continues its work, it can be added to the rapidly growing list of groups, including non-governmental organisations (NGOs), interfaith projects, the US State Department, polling agencies, self-appointed Muslim-American public intellectuals, religious leaders, and academics, all claiming to be addressing the “problem.” However, as someone who has actively participated in this debate, I believe that the opposite is true. Rather than dealing with extremism, these institutions are deliberately dodging the discomforting work of addressing a global conflict that in hindsight makes the Cold War look like a small ethnic squabble. Although the approaches differ from one organisation to the next, the general strategies bear a great resemblance: emphasise the commonalities between Islamic and Western societies and among the three Abrahamic faiths; downplay or avoid completely the very real differences as if they just do not exist; and make Westerners feel comfortable by convincing them that extremism is a temporary phenomenon that exists only on the fringes of Islamic societies.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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ZEE BUSINESS BEST B SCHOOL SURVEY
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Monday, October 20, 2008

Teach a lesson...

...to the masses, you ‘literates’
The oil-rich Middle East and its leading countries seem to be gradually waking up to the realisation that they might finally lose their so-called long term competitive edge in the short term itself. This loss is primarily because of the Middle-East’s thorough incapability in encouraging youths to take up higher education and in boosting their entrepreneurial spirits in the new age era.

Take Saudi Arabia. Critically, though Saudi Arabia has more than 14,000 educational institutions, including seven universities, according to Saudi Arabia’s human development report, 17% adults are still illiterate. But the UN shows how 33% of males and a whopping 56% of females are illiterates in Saudi Arabia. But of horror is the official data that higher education enrolment ratio is a meagre 27.7% of the ‘enrollable’ population.

That means that the nation could well be spawning 70 odd percent of illiterate generations in the coming years. Though King Abdullah decided to invest $2.4 billion (SR 9 billion) for educational development projects to boost science and technology, the industry has quoted that the projects do not meet their requirements. Oil can surely teach nations a lesson in more ways than one.
For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

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Saturday, October 18, 2008

Bad drivers? Worse buyers!

B&E’s Savreen Gadhoke argues why manufacturing cars for the fairer sex does not make for a good business plan in India... [and the lady is serious!]

If women are bad drivers, men are worse! But statistically, that sweet correlation – however much I personally might want to the contrary – does not apply to car purchases. And probably, this is the reason why many women, especially in India, are not seen driving cars [Of course metros are an exception; though even in these areas, purchase patterns of women are no relative matches to those of men]. As a matter of fact, there aren’t many cars that are manufactured exclusively for women in India. And if you’re a car manufacturer, about to tempestuously experiment with a plan for the fairer sex, perish the thought Jim, women in India more often than not take the back seat!

Although Henry Ford was (in)famously focused on keeping women in the passenger seat, Ford had in reality started marketing cars for women way back in 1912. But that was the US. Graeme Dawson, Australia’s top market historian, shows how way back in 1968, women for the first time outnumbered men amongst new applicants for Victorian drivers’ licenses. But that was Australia. A 2006 Chinese survey showed how “Chinese women car buyers have grown to a record 32% of the total buyers,” with the top ten models being bought by them being “Chery QQ, Honda Fit, Nissan Tiida, Chevrolet Spark, VW Polo, Suzuki Swift, Chevrolet Sail, Peugeot 206, Audi A4, FAW Vizi (the redesigned model of Toyota Yaris).” But then, that’s China! Despite driving by woman being banned in Saudi Arabia, government owned Saudi Aramco’s last year’s research shows how “car ownership among Saudi women climbed to 60 percent between 2003 and 2006!” You got it! That’s Saudi Arabia!

In India, still, experts comment and research agencies like HighBeam concur that at the lower level, women make up 10% of the total sales of even top mass market brands. Though India comprises a 200 million strong middle class, for whom a car is even now more of a luxury, which is bought after great discussions and compromises and generally driven by the man of the house, introducing a car exclusively for a woman belonging to this segment of society is just not a viable proposition.

Vivek Srivastava, Joint MD, Innocean Worldwide states, “Specific models being offered to the female buyers as a practice or an approach to market segmentation is not a wide-spread practice.” However, by mapping the needs of the middle class, manufacturers have launched 2-wheelers like Hero Honda Pleasure, TVS Scooty Pep, Kinetic Flyte, et al, which have been received well by females from this strata of the society and have performed well in tier-2 & tier-3 cities, mainly because of poor conditions of the public transport & low cost of ownership. Harshul Verma, Automobile Analyst, Khandwala Securities asserts, “Females generally prefer compact cars over bulky vehicles.” Would that make Tata’s Nano more a woman’s car than the people’s car? Comparing with the western world, in USA & UK, bulky vehicles like Volvo S40, Mazda 3 & Volkswagen Jetta are the first preferences of female drivers.

Indian automobile manufacturers are just not ready to take the risk of launching cars targeted exclusively at women. The foremost reason for this is that they do not wish to restrict their target audience. And as the well publicised Experian August 2008 research shows, men are better and more regular ‘re-buyers’ and repeat customers than women. Well, though my lady-like composure permits not, I have to accept, women are worse when it comes to the market place!

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

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Friday, October 17, 2008

Search for alternative fuels

Strangely, in their search for alternative fuels, auto manufacturers are not giving due importance to the most important of quasi-alternative fuels, that is, compressed natural gas (CNG), which, in fact, is a fossil fuel only! CNG is environmentally a cleaner alternative to traditional petroleum products, with fuel efficiency equaling that provided by diesel engines. But why should the CNG focus be increased dramatically? Because countries like India, where the auto markets are expected to have the hugest potential, have extremely large and cheap CNG resources. A report by the Global Environment Facility of UNDP on India’s Coal Bed Methane (CBM) extraction potential states, “It is estimated that in India, the largest coal producer in the world, there are around 20,000 square kilometers of area where CBM capture could be carried out; the country’s recoverable methane reserves are 800 billion cubic metres, with a gas production potential of 105 million cubic metres a day over 20 years.” Compare this with Saudi Arabia’s daily production of oil, which stands at only (relatively) 9.5 million barrels a day. Makes sense? Not perhaps to the global auto industry.

The no-brainer auto issue #4

That’s the one to do with oil. The fact is, despite all doomsday predictions of major global auto firms betting on alternative fuel, oil reserves don’t seem to be ever running out in the near future, and that means for the next hundred years at least. Look at OPEC’s latest reports, which estimate that between the years 1995-2003, because of newer extraction techniques, new discoveries had actually improved recoveries by almost 138 billion barrels. By 2020, oil production will cross a smashing 1,600 billion barrels annually with reserves close to 3,400 billion barrels! Compare this with the figure of, say, 24 billion barrels annually that the world was producing in 2003. Do the figures rip away sensibilities of any prophesy that the world will run out of oil? Straightforward no-brainer logic clearly shows why auto companies should simply focus on creating cars that simply give more miles per gallon as oil would never run out or be in limited supply even in the distant future! But stupid is what stupid gets. And auto companies need hype and glory before death and immortality!

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008

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

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

Top Articles on IIPM:-
'This is one of Big B's best performances'
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IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs

Thursday, October 16, 2008

With the variety on offer, customers have little to worry about issues like inflation

How can one let go off the “must-have” of the FMCG industry – advertising? As compared to 2007, the FMCG sector increased its advertising and marketing spends significantly. For instance, HUL increased its spending by almost 30%, and Britannia Industries Ltd. went up by 26.82%. N. V. Sivakumar, ED, Consumer & Industrial Products & Services, PricewaterhouseCoopers (PwC) India says, “FMCG majors have been embarking upon increased print and TV campaigns in an effort to differentiate products, create brand awareness and increase brand recall.” Companies like Godrej are in fact doing it to the point of compromising on bottom lines in the near term. The most interesting case recently is that of GCPL, which increased its advertising spends by 44.65% on a y-o-y basis (it roped in Hrithik Roshan as brand ambassador for Cinthol), even as it recorded a y-o-y fall of 4.21% in net PAT for quarter-ended June 2008.

So they tackled the inflation devil well. Hats off to that! But that is only the most current one to face them. Actually, there are quite a few larger, more daunting challenges facing the FMCG industry today. One of the main issues faced by them currently is manpower – finding and retaining the right talent. A spate of restructuring initiatives in this sector are worrying analysts. A recent case in point was the massive restructuring exercise at HUL in February 2008, where the company combined its food and personal care divisions. Speculation is the that workforce could be rationalised, which the company has denied. Vivek Patil, FMCG Analyst, Khandwala Securities affirms that the FMCG sector faces a serious talent crunch problem and avers, “Sectors, which have better margins like IT and infrastructure have less restructuring as compared to the FMCG sector.” He goes on to add that in a regular economy, the growth in various sectors is equal, but that is not the case in India. Due to this, FMCG companies are also finding it difficult to attract top managerial talent. They are no longer the recruiters of choice when it comes to the top B-schools of the country.

Players are also facing the critical decision of whether to take the plunge into integrative growth – both backward as well as forward. At this stage, backward integration for FMCG players is vital because manufacturers of oil and food ingredients, besides competing with other manufacturers, have also been dealing with commoditised products & have hitherto lived on thin margins. States C. Ravishankar, Manager, Strategic & Commercial Intelligence, Transaction Services, KPMG, “Existing intermediaries add significant cost and are not able to maintain high quality standards.” Therefore, there arises an incentive for FMCG companies to integrate backwards. That’s difficult, however, due to the extremely fragmented and disorganised nature of the food supply chain in India.

As for forward integration, margins are traditionally dictated by marketers, again due to high degrees of fragmentation and low bargaining power of the retailers. But this trend seems to be changing now. In June 2008, it was clearly visible when Kishore Biyani-owned Big Bazaar, refused to stock Cadbury’s chocolates simply because Cadbury’s was giving a better deal to other international retailers. They did the same with PepsiCo’s Lays chips as it was not satisfied with the terms of the contract. However, retail is a different ball game, and competencies needed aren’t easy for an FMCG firm to build. Ravishankar adds, “Past evidence would have us believe that forward integration by FMCG majors is unlikely, or at least unlikely to succeed on a meaningful scale.”

The rise of organised retail is a double edged sword, actually. Adi Godrej, CMD, GCPL told B&E, “Organised retail is a very big thing in India and in the coming years we are going to focus on it. I think FMCG is driving the growth of organised retail...” Given the speed with which retail is growing in India, FMCG players are benefiting as they get a platform to push their products and reach out to consumers in semi-urban and rural areas as well.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

Top Articles on IIPM:-
'This is one of Big B's best performances'
IIPM to come up at Rajarhat
IIPM awards four Bengali novelists
IIPM makes business education truly global-Education-The Times of ...
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
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IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs