DEALING WITH DUAL STRATEGIES

When companies discover that low-price customer segment is large, they oft en set up low-cost ventures themselves. Because of their years of industry experience as well as abundant resources, incumbents are oft en seduced into believing that they can easily replicate cut-price operations. In the 1990s, for instance, all major airlines launched no-frills second carriers which have since been shut down or sold off , showing how tough it is. Companies should set up low-cost operations only if there are very strong synergies. For example, in the financial services industry, HSBC, ING, Merrill Lynch and Royal Bank of Scotland have set up low-cost operations in the form of First Direct, ING Direct, ML Direct, and Direct Line Insurance, respectively.

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Source : IIPM Editorial, 2006

An IIPM and Malaya Chaudhuri – Arindam Chaudhuri Initiative

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IIPM RANKED AHEAD OF FIVE OF THE IIMS

A YAHOO! FOR SUSAN AT INTEL

Intel Corp. has roped in Susan Decker, Yahoo’s Chief Financial Officer and VP (finance & administration) to join its Board of Directors. She will be replacing John Browne, who is retiring from the board after serving as an Intel Director since 1997. During her 14-year career she has worked with Donaldson, Lufk in & Jenrette. Meanwhile the world’s largest chipmaker has announced a rise of 11.25 cents per share in its quarterly dividend, which will be effective from the first quarter of 2007. So far Intel has paid around $8 billion as cash dividend and this year alone its cash dividend will amount to $2.3 billion.

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Source : IIPM Editorial, 2006

An IIPM and Management Guru Professor Arindam Chaudhuri's Initiative

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THE METEOR SHOWERS

They certainly did not know what hit them, when the Indian government was compelled by a foreign exchange crisis in the beginning of 1991. It was time to give up the colonial hangover and embrace a new era, where there could be just one route to survival – be the best! This era witnessed a host of first generation entrepreneurs exploring business opportunities. These ultra competitive companies focussed on single sectors, and hence played the core-competence card; a spin taken up even by some ancestral business groups.

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Source:- IIPM-Business and Economy, Editor:- Prof. Arindam Chaudhuri - 2006

‘B’EYOND ‘P’ERCEPTIBLE ‘L’OGIC!

NAMBIAR’S MISPLACED TRUST IN HIS SON-IN-LAW WAS JUST THE ICING...
“Here lies BPL... They never thought bad of anybody, not even competitors...,” could not have been even close to what T. P. G. Nambiar might have been thinking when he laid the foundations of the British Physical Laboratories (BPL) Group in 1963 to manufacture electronic measurement and testing. Though, for this Malayali entrepreneur, the beginning was not a cake walk as the era was marked by the License Raj, in 1982, the company diversified to manufacture colour televisions, video cassette recorders and subsequently started manufacturing refrigerators, alkaline batteries, and other electrical components, thus becoming a household name in the Indian consumer durable industry.

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Source:- IIPM-Business and Economy, Editor:- Prof. Arindam Chaudhuri - 2006

SHUFFLING IS THE NEW GAME AT STANCHART

In a major and surprising top management shuffle, Standard Chartered Bank has named its Finance Director Peter Sands as the new CEO in place of Mervyn Davies, who has been catapulted to the post of Chairman. Bryan Sanderson, the current Chairman of Standard Chartered will step down after more than two years in the drivers’ seat. The bank has a strong hold in Asia and derives two-thirds of its revenue from the region. Richard Meddings, Director of Governance for Africa will take over as the new Finance Director. However, the appointment of Davies might run into trouble, as Britain’s corporate governance code discourages companies from naming Chief Executives as Chairmen.

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Source:- IIPM-Business and Economy, Editor:- Prof. Arindam Chaudhuri - 2006

BRAND : Deutsche Bank

AGENCY : Grey World Wide

BASELINE : Passion to Perform

DESCRIPTION: Sunil Gavaskar is watching a bunch of kids standing (in school uniform) in front of a confectionary with watery mouths and choosing pastries that they desire to relish. Cut to this, he is shown treating the kids to their desirable pastry in a way celebrating life. Sania Mirza standing at the terminal next to the empty conveyor belt waiting for her luggage to arrive when she suddenly goes shopping. We see Gavaskar sitting at an ‘Annual Charity’ auction house, when surprisingly he is picked as the highest bidder, all thanks to Deutsche Bank Credit card, which added hyperpower to their pockets.

4Ps TAKE : Rolling on the powerful punch line ‘A passion to perform’, Deutsche Bank conveys the message of making their service localised by roping in the veteran Sunil Gavaskar and the vibrant Sania Mirza as its brand ambassadors. The ad also pronounces benefits to the modern Indian consumers with their invaluable service. It also strongly conveys the message, that is, the power of plastic money enjoyed by the new-age Indians, which is ready for celebrating life, expecting the unexpected and is prepared to meet the challenges, which pop-out as surprises. After Rahul Dravid worked wonders for Bank of Baroda, Big B and SRK did the same for ICICI, Gavaskar and Sania Mirza are all set to remind all what is known as a ‘celeb-punch’!

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Source:- IIPM-Business and Economy, Editor:- Prof. Arindam Chaudhuri - 2006

BPO Companies

They can copy the practices followed by the BPO companies, since they manage their operations effectively in a dynamics where attrition rate is more than 25%. Apart from recruiting people only from hotel management colleges, companies should start recruiting people from other terrain as well. Infosys recruit workers not only from computer science branch, but also from branches like mechanical and civil engineering. The only alternative to manpower is the machine power.

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Source:- IIPM-Business and Economy, Editor:- Prof. Arindam Chaudhuri - 2006

ORANGE CITY GOES FLYING

Following its arch rival Boeing, Airbus is now eyeing to set up a manufacturing plant in Nagpur. This new proposal has come after Boeing decided to setup a maintenance, overhaul and repair facility in the city for an investment of $100 million. The orange city of Nagpur has turned out to be the international cargo city after the government has initiated a plan to use the geographical location of Nagpur for developing it as a cargo centre. This started with establishment of an airport in the city. Besides, with more and more SEZ’s beginning to go operational, the prospects of attracting FDI have largely increased. Looking at all these opportunities, Airbus’ plan to start its facility seems quite logical, although the deal has not been finalized yet. But looking at the speed at which the things are being finalised, it won’t be very late before Nagpur will have Airbus in its land.

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Source:- IIPM-Business and Economy, Initiative:- Prof. Arindam Chaudhuri - 2006