Shriveling of the Congress Party meant that Gandhi had to use other means to get re-elected: crushing political opposition, pandering to special inter

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She moved very far to replace federalism with her own centralised rule. The cumulative effect of Gandhi’s actions is that the Indian political system

Patronage became her electoral strategy, as she undermined a vital institution in a functioning democracy – the party system. Gandhi weakened the Congress Party by sidestepping many of its well-established procedures, reducing its grass-roots reach in the states, and appointing party officials rather than allowing rank-and-file members to elect them. Shriveling of the Congress Party meant that Gandhi had to use other means to get re-elected: crushing political opposition, pandering to special interests, or offering political handouts or cancellations of elections altogether. Indira Gandhi imposed emergency rule in June 1975 and cancelled the general election scheduled for the following year. And as early as 1970, she postponed or cancelled Congress Party elections. She moved very far to replace federalism with her own centralised rule. The cumulative effect of Gandhi’s actions is that the Indian political system, though still retaining some essential features of a democracy, became unaccountable, corrupt, and unhinged from the normal benchmarks voters use to assess their leaders. In a functioning democracy, voters punish those politicians who fail to deliver at the ballot box. Not in India. Both the 1967 & 1971 reelections of the Congress Party followed a decline of per capita GDP the year before. It was not democracy that failed India; it was India that failed democracy.

The economic consequences of this period of illiberalism were long lasting. Because Gandhi’s political fortunes depended on patronage, she felt no compulsion to invest in real drivers of economic growth – education and health. The ratio of teachers to primary-school students throughout the long Gandhi years stubbornly hovered around 2%. After her rule, in 1985, only 18% of Indian children were immunised against diphtheria, pertussis, and tetanus (DPT), and only 1% were immunised against measles. Even today, India is still paying for her neglect. The low level of human capital remains the single largest obstacle to India’s developmental prospects.


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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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Dam’d if you do; dam’d if you don’t!

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Governments rarely consider rehabilitation while drafting dam projects

Dam’n it! We’ll jump directly to the point. There are over 50 million people displaced in the country so far since 50s. Land owners or tenants who occupy the land were compensated monetarily which was never enough to resettle.

The example of Hirakud dam (1957) is a case to point. The government acquired over 727 sq. km of land under the imperialistic Land Acquisition Law, which displaced over 1.8 lakh people. Though later, experiencing the severity of displacement and sufferance of affected families, a policy was finally adopted for rehabilitation and resettlement of displaced people; but as always, it remained on paper only. On another front, after the uproar of the Narmada project, a special World Bank team, Morse Committee, concluded in 1992 that relocating displaced people is impossible (unless resettlement plans have been made in advance); but Indian governments continued with the projects without any such plan.

The problem is that such rehabilitation moves are completely subject to political deviancies, wherein one government might be appreciative of the same – to earn brownie points – but another government, from another political camp, might be totally against the implementation of the same. Sadly, even celebrities lose no time in jumping on the media bandwagon to cry hoarse about their support (or lack of it) to the ‘movement’.

Can’t an Indian government just face up to the current reality and do something about such problems in relocation and resettlement. For crying shame, a formal Rehabilitation & Resettlement Bill was passed finally only in the year 2007, a full sixty years after Independence. We suspect it’ll take another sixty before they put the Bill into action...


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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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Craving for more...

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Cray partners Intel to develop ultra high performance computers

In layman’s words, Moore’s law states that every two years, the size of the chips decreases whereas their capacity doubles followed by a reduction in cost. The computing industry worldwide has been religiously following this law since the inception of computing decades ago. But as far as high performance computing (HPC) machines or supercomputers are concerned, they are an exception. Recently, two HPC giants Cray Inc. and Intel Corp. signed a multiyear agreement to take this niche segment to a new level.

“We’re excited at the potential of bringing together Intel’s powerful silicon expertise and Cray’s industry leadership in HPC systems,” said Peter Ungaro, president and CEO of Cray. HPC machines have usage primarily in the fields of aerospace, weather forecasting, engineering, simulations and Finance. However, considering the nature of application and costs involved with HPC machines, these have mostly remained confined to governments and large corporations. Recent trends indicate that the present generation supercomputers cost at least $15 million and the price may go up to a whooping $50 million, says Top500, an organisation dedicated to supercomputing. So can this strategic partnership between Cray and Intel help in bringing down the overall cost of owning a high performance computer in the near future?

According to Cray’s spokesperson, “The question is tricky. First a HPC machine cannot be mass produced as every machine is tailor made as per the area of its application. Contrarily PCs are general purpose and can be commoditised. Secondly a lot depends on how powerful the machine is. Try configuring a high-end machine and you will realise how the addition of components increases the price of your PC.”

Though the prospect of Cray partnering with Intel in the field of HPC seems to be very interesting, the partnership is not expected to yield any result until 2012. However, in the mean while, long term rivalry between IBM and Cray in the field of HPC is expected to go beyond further and with Intel’s well known expertise on Cray’s side, the balance of power is definitely expected to shift in its favour.


Vishal Ingole


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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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Daimler-Chrysler has always been heralded as a champion on the ‘premium’ platform, in India & globally. But can it stand the test of time? B&E investi

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“a larger variety of engines was rather uncalled for at this stage!”

The company also counts largely on its enviably widespread dealer & service network across the country, aimed at giving its esteemed customers a ‘global experience’. Hence, DC should capitalise on its first mover advantage, and focus increasingly on its distribution network and further increase penetration. The competition is however aware of its shortcomings in India and therefore wants to build a market on the ‘novelty factor’ alone. BMW, for instance, offers three-engine options for its volume product – the ‘3-Series’. Mercedes for that matter offers no more than just two! Even CBU dependent Porsche offers four options on its highly successful Cayenne SUV. When B&E inquired into the matter, the company officials told us that, “a larger variety of engines was rather uncalled for at this stage!” The danger however is that this could lead to the same rejection situation faced by DC back in 1995, when the company entered India with the Mercedes Benz E-Class (W124 version) which was rejected by the market and had to be replaced with the newer W210 version.

...but loves the world!

Surprising it is, for seven decades back, this German machine was feared by rivals and loved by speedsters for possessing the capacity to achieve on-road velocity in excess of a blinding 400 km per hour – considered a ‘superior motoring benchmark speed level’ during those days. You couldn’t have imagined so, could you? Well, for us to imagine that a ‘thrill-loving’ speedster should suddenly change its gears and transform itself into a brand, which is today some blinding sign of luxury, was more than a sweet surprise! Who could have even imagined that such a composite unit of the ‘Silver Arrows’ (a monicker given to Germany’s racing heritage) – which could outshine most four-wheeled creations then – would change it orientation completely within a span of about eight decades to stand out amongst equally capable Audi & BMW arguably as ‘the ultimate status symbol’?! Well, today the ‘three-pointed star’ has virtually outlived most of its brand rivals and become the face of Germany’s legendary mastery over technology-packed high-end cars.


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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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We will be launching more products under Dettol as the personal care market in India has the fastest growth rate among all other segments of FMCG.”

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Going further, Reckitt Benckiser has bet its future, on another high potential category of health care, which got a fillip in 2005 with the £1.93 billion acquisition of Boots International, which has brought brands like Strepsils, Clearsil & Sweetex into the company’s portfolio.

In the past two years, the company has been on an expansion mode. It has launched brands like Veet, Vanish, Finish and Easy-Off Bang in the Indian market. Going further, Reckitt Benckiser has bet its future, on another high potential category of health care, which got a fillip in 2005 with the £1.93 billion acquisition of Boots International, which has brought brands like Strepsils, Clearsil & Sweetex into the company’s portfolio. Moreover, company officials reveal that they are continuously on the look out for acquisition targets to expand its brand portfolio. While some analysts may disagree with the strategy of adding too many brands quickly, one cannot deny that Reckitt Benckiser is known for its knack for making brands work wonders even in the most seemingly mundane categories.

Besides its focus on new product categories particularly in health care, the company has further decided to reposition its Dettol brand from its ‘perceived antiseptic soap’ image in order to tap the personal care category more aggressively. Reveals Steven Gaa, Marketing Director, South Asia, Reckitt Benckiser to B&E, “We will be launching more products under Dettol as the personal care market in India has the fastest growth rate among all other segments of FMCG.” The company plans to launch seasonal products like Dettol cool shower gels and also introduce variants in the sanitiser and beauty segment. Gaa does not seem perturbed with the already overcrowded FMCG space, as he states, “Dettol is a widely accepted brand in India, so all our ventures in personal care segment will have the brand name Dettol. We are also the market leader in antiseptic liquid segment, where no other player has a market share close to us.” He also claims that contribution of Dettol India to global turnover will be higher in the coming time.

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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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B-schooled in India, Placed Abroad (Print Version)
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a result, appeals keep dangling in the Commission for more than 6 months.

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For how long can reluctant officials hide behind the veil of national interests to subvert the people’s right to know

The government machinery willingly parts with trivial information, but any information which exposes their misdemeanours is hard to extract. “They evade giving away the information which can prove to be anti-establishment,” said Suchi Pandey, Secretary National Campaign for People’s Right to Information while talking to B&E. Such an attitude of the government was experienced first hand by Social activist Sanjay Tiwari, when he asked for answers to 22 queries related to the pay & perks of the Parliamentarians and the associated bureaucrats. All he received was minimal information, because the establishment told him that much of the information sought was classified secret. Elaborating on the manipulative techniques adopted by the bureaucracy, Sanjay shared with B&E that the “bureaucracy is very clever.

They will answer your queries within the stipulated time-frame, but the information supplied is so adroitly managed that it will contain everything but the information demanded.” Furthermore, the entire process of getting the information from the government is back breaking. People have to run from pillar to post to find the Public Information officer (PIO) in the concerned department. The law stipulates that every department must display the RTI procedures at a prominent place at the entrance, but unfortunately, this is missing in majority of the offices. “Noida Authority has placed the RTI board in the toilet” Saurabh an activist with Josh told B&E. If a person is dissatisfied with government’s reply to his query, Provisions exist in the law, to file an appeal first with the department & with the Information Commission. 45 days is the limit set by the RTI Act for the disposal of the first appeal at the departmental level, however no-time limit is set for the Commissions to disposal of the second appeal. As a result, appeals keep dangling in the Commission for more than 6 months. There are roughly 4000 appeals pending with the Central Information Commission (CIC). Defending charges against the efficacy of CIC, Pankaj K P Shreyaskar, Deputy Secretary & Joint Registrar CIC told B&E, “In the last 3 months we have expedited the process of disposal of appeals.


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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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B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
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1500-plus IIPM students placed across the country with 44 bagging international offers
IIPM set to beat economic slowdown
IIPM, GURGAON
IIPM - Admission Procedure
IIPM awards four Bengali novelists
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
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
» 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
IIPM makes business education truly global-Education-The Times of ...

‘Blessed’ Apple!

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The ‘i’ factor did its job(s) well...

Christmas may not be round the corner just yet, but the celebrations have begun in Apple’s hallowed camp, what with a most remarkable fourth quarter ending September 2007? Surely, a period that exceeded all expectations with revenues of $6.22 billion and net profits of $984 million – showing a lofty yoy rise of 28.53% and 81.55% respectively, outshining overall industry growth of 19.02% & 43.22% in revenues and profits respectively over the same quarterly period.

And if this wasn’t enough for Apple investors, Steve Jobs, CEO, Apple Inc., optimistically predicted, “We’re looking forward to a strong December quarter as we enter the holiday season with Apple’s best products ever...” So what’s so brilliant about the whole performance? Well, to say the least, the quarter marked the highest sales of Macintosh computers which stood at a swashbuckling 2.16 million – more than any other quarter ever and a smashing 34% higher than sold last year. Also the fact that after a troubled third quarter (which included painful recalls of Apple Macbooks and legal fights over its iPhone), the company managed to sell an impressive 10.2 million iPods & 1.11 million iPhones. Apple’s cost-cutting strategy (leading to lower iPhone prices and some disgruntled customers) and investment on R&D has clearly worked in its favour. Adds Richard Ptak, Managing Partner, Ptak, Noel & Associates, “Apple’s strategy to cut the cost of iPhone gave it a big boost in sales this quarter. Apple has also updated & upgraded its processors & laptops including a re-designing of the iMac computer – all of which led to a spurt in demand.”

Talking about innovation, the latest attempt from Apple to lift-up its already gargantuan Mcap of $161.1 billion on the NASDAQ (as on October 29, 2007) is its launch of ‘Leopard’ operating software in the US on October 26, 2007. This certainly marks a giant leap at a time when 90% of the world’s PC users are using Windows OS. However, with the Leopard touted to be more user friendly than the Windows Vista OS (launched in January 2007, which couldn’t create many waves), and with in-built features like Time Machine (a backup function) and Spotlight (slated to be a faster search tool than Windows’ tool), it looks as if Jobs has another quarter lined-up to smile about. However, the only challenge that might stare at Apple is Leopard’s incompatibility with most third-party applications. However, challenges aren’t unknown to Jobs for whom the going seems to be good for quite some time now...


B&E research: Surbhi Chawla


For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).


Read these article :-
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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1500-plus IIPM students placed across the country with 44 bagging international offers
IIPM set to beat economic slowdown
IIPM, GURGAON
IIPM - Admission Procedure
IIPM awards four Bengali novelists
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
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
» IIPM ranked No1 B-School in India :: Education, Careers ...
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