Category Archives: Management Effectiveness Live cases from corporate media and public sector the stories of success

Some cases of managerial success in India like Dr Reddy’s Lab.,Videocon selling TV in Austria,Hungary,ONIDA, MAHINDRA,Tata Motors,TCS,WIPRO,INFOSYS,SUN PHARMA,ARVIND MILLS,SINGHANIA’s and RAYMONDS, BIO-CON,Times Of India and Jains,HINDUJA’s,MITTAL STEELS,DABUR CHAVANPRASH,KHADIM SHOES,LIBERTY SHOES,WOODLAND SHOES,RED TAPE SHOES,MIRZA TANNERIES,PANTALOON GROUP,ITC,E-Choupal, AIR-TEL,SIFY,TATA-SKY,TVS-TRUST,VALE & SERVICES,TVS-LUCAS ELECTRICALS,SUNDARAM FASTENERS,IOC,SAIL,ACTION SHOES,LAKHANI SHOES,ROTOMAC PENS-KOTHARI’s GRP.KANPUR,HERO HONDA, BAJAJ,TVS MOTORCYCLES et. al.TVS Scooty,Kinetic NOVA and 4S scooters competing with world class HONDA-ACTIVA & AVIATOR are all some of the 150 INDIAN MNC’s Abroad.

ECONOMICS OF GLOBALIZATION AND GLOBAL MARKETS

ECONOMICS OF GLOBALIZATION AND THE MARKETS

AURNOB ROY

THE MODEL OF GLOBALIZATION WAS GIVEN BY MICHEAL PORTER IN WHICH HE USED 4 I’S NAMELY-1-INVESTMENT, 2-INDUSTRY OR MANUFACTURING-3-INFORMATION TECHNOLOGY AND 4-INDIVIDUAL CONSUMER OR MARKETIZATION. TO THIS I HAVE ADDED THE 5TH [I] CALLED AS INTERNATIONAL BUSINESS[I.B] WITHOUT WHICH A NATION WILL OPERATE UNDER NO TRADE CONDITIONS CALLED AUTARKY. BUT WITH INTERNATIONAL TRADE IT CAN PRODUCE BEYOND THEIR PRODUCTION POSSIBLITY FRONTIER, (PPF) SO AS TO PROMOTE, INTERNATIONAL BUSINESS AND LOWER THE MANUFACTURING COSTS LIKE BARBIE DOLLS OF USA MADE BY MATTEL TOYS ARE NOWADAYS MADE IN CHINA AND THE PRICES HAVE FALLEN FROM RS. 500/-PER DOLL TO RS. 135/- PER DOLL.

THE OPENING UP OF OVER 3000 ITEMS UNDER WTO REGIME POST-2001IN CHINAINCREASED THE SALES OF COSMETICS, HALOGEN BULBS, TORCHES AND TOYS, CONDOMS ETC. AND MORE THAN RS. 5000 CRORE WAS THE LOSS TO THE INDIAN INDUSTRY. NOW, WE GET DURING DIWALI, RS. 100/-PER 500 PIECES, OF SMALL BULBS, FOR NIGHT DECORATION at our Homes ILLUMINATION AND THEN DURING HOLI FESTIVAL WE HAVE THE PLASTIC BASED CHINESE SPRANKLERS. FURTHERMORE, THE INDIAN CONSUMER IS VERY PRICE CONSCIOUS RATHER THAN QUALITY CONSCIOUS SO WE HAVE CHINESE MADE GANESHA AND LAXMI IDOLS DURING DIWALI AND ALSOWE HAVE SEVERAL IDOLS OF GODDESS MAA DURGA MADE IN CHINA DURING THE DURGA POOJA.

THERE IS NO DOUBT THAT THE CHINESE INFRASTRUCTURE IS VERY STRONG. THE CENTRAL GOVT IN MAINLAND CHINA, HAS INVESTED ON HOUSES, DRAINAGE, ROADS, ONE ROOM ACCOMODATIONS AND FREE PUBLIC TOILETS UNLIKE BINDESHWARI DUEY’S SINCE 1960-SHULABH SHAUCHALYA WHEN 70 PER CENT OF URBAN INDIANS GO TO THE FIELDS FOR SANITATION AND THE OLIGOPOLISTIC MARKET OF 225 MILLION MOBILE PHONES WITH MAJOR PLAYERS VIZ. VODAFONE-HUTCH, RELIANCE INFOCOM, AIR TEL, IDEA, SPICE, BSNL, TATA INDICOM ETC. BRINGING A COMMUNICATION REVOLUTION BUT A SANITATION MARKET REVOLUTION IN INDIA IS YET FAR BEHIND, WITH NO OLIGOPOLISTIC SANITATION MARKET,  USER PRICE CHARGES, TO MAKE IT A SUSTAINABLE BUSINESS AND MARKET OF EXCRETA PROPOSITION WITH MARKET BASED PRIVATE PUBLIC PARTNERSHIP [PPP] INITIATIVE. India HAS FIRST CLASS CARS HONDA-CITY, ZX, TAYOTA- COROLLA, INNOVA, QUALIS MODELS, GENERAL MOTORS, FORD-IKON ETC. BUT THIRD CLASS ROADS, PHYSICAL INFRASTRUCTURE. THIRD CLASS MANAGEMENT SYSTEMS. CORRUPTION AND BRIBERY IS THE ORDER OF THE DAY BOTH IN PUBLIC AND CORPORATE SECTOR. CORRUPTION AND MONEY INCENTIVES IN INDIA IS SEEN AS A WONDERFUL MANAGERIAL TECHNIQUE OF MOTIVATION. TO SET UP A BUSINESS IN INDIA WE REQUIRE 16 LICENSES, EVEN NOW, WHEREAS IN CHINA THERE IS SINGLE WINDOW CLEARANCE SYSTEM AND IN 15 MINUTES A FOREIGN COMPANY CAN SET ITS BRANCH AND BUSINESS VIZ.MR. N.R.NARAYANA MURTHY-CHIEF MENTOR-FOUNDER-INFOSYS TECHNOLOGIES, BANGALORE, INDIA.

CHINA STARTED ITS ECONOMIC REFORMS IN 1977 WITH AGRICULTURE AS THE KEY STRATEGIC PLANK IN A COMMUNIST ECONOMIC REFORMS-1977, SET-UP UNDER DENG XIO PENG. LATER THE SPREAD EFFECTS WHERE SPREADING AND DOMINATING IN OTHER SECTORS.

HOWEVER, INDIA HAS FORGOTTEN AGRI-BUSINESS MGT. COMMERCIALIZATION OF AGRICULTURE MANAGEMENT.IT IS RELYING MORE ON SUBSISTENCE FARMING AGRICULTURE. MOST OF BELOW THE POVERTY LINE PEOPLE LIVE IN RURAL AREAS WHERE WE HAVE HAD ON AN AVAERAGE 2 PER CENT PER ANNUM AGRICULTURE GROWTH, WHEN THE REQUIREMENT IS 4 PER CENT AGRICULTURAL GROWTH. 90 PER CENT OF THE CITIZENS, IN MY NATIVE STATE OF UTTAR PRADESH, DO NOT HAVE SANITATION SYSTEMS, IN RURAL AREAS AND GO TO THE FIELDS TO DEFECATE, WHEREAS OUR MALLS ARE FULL WITH BRANDS, LIKE MARKS AND SPENCER, WALMART, PANTALOON, TESCO ETC. ALL WORLD CLASS IN A THIRD CLASS INSTITUTIONAL MANAGEMENT SYSTEM WITH SYSTEMATIC FAILURE OF IMPLEMENTATION AT GRASSROOT LEVELS. DECENTRALIZATION OF FINANCIAL MANAGEMENT TO PANCHAYATS, GLOCALIZATION [GLOBALIATION+LOCALIZATION], LOW COST HOUSING, LOW COST SANITATION SYSTEM, NATIONAL CULTURE BUILDING, LOW COST PRIMARY EDUCATION, LOW CAT TECHNICAL, JOB RELATED EDUCATION STATEGIES ARE “THE FORTUNE AT THE BOTTOM OF THE PYRAMID MODEL” YET TO BE ADOPTED ALONGSIDE “GLOBALIZATION IN INDIA.”

SO FAR, NO ATTEMPT, HAS BEEN MADE, ON A MASS SCALE, TO HAVE FDI IN AGRICULTURE, OF JV WITH INDIAN AND MNC FIRMS, ON GROWING EXOTIC VARIETY OF FLOWERS, TO PROMOTE FLORICULTUE WITH COLD CHAINS.

INDIA STARTED ECONOMIC REFORMS IN JULY-1991, WITH TRADE SECTOR REFORMSAS IMMEDIATE BALANCE OF PAYMENTS PROBLEM (BOP) IN THE TRADE SECTOR AS OUR FOREIGN EXCHANGE RESERVES WERE ONLY $2 BILLION DOLLARS, SUFFICIENT FOR 2 WEEKS OF IMPORTS AND DEVALUATION OF THE RUPEE BY OVER 21 PER CENTBY THE GOVERNMENTPRIMARILY TO MAKE INDIA’S EXPORTS CHEAPER AND IMPORTS COSTLIER IN THE INTERNATIONAL MARKET. BY 199510% OF INDIAS ECONOMY COMPRIZED OF EXPORTS. TODAY, 35% OF INDIA’S ECONOMIC GNP ARE EXPORTS ORIENTED. INDIA’S GDP IS 1.1 TRILLION U.S DOLLAR ECONOMY.WHEN THE WORLD ECONOMY IS $45 TRILLION AND USA GDP IS $25 TRILLION AND CHINA ECONOMY IS $1.8 TRILLION. THE WORLD’S LARGEST INVESTMENT BANKER, GOLDMAN AND SACHS, HAVE PREDICTED THE EMERGING MARKETS BRICS ECONOMY MODEL OF BRAZIL, RUSSIA, INDIA AND CHINA AND COUNTRIES TO WATCH FOR LOW LABOR COST AND KPO, LPO, BPO OUTSOURCING IN FUTURE YEARS BUT THE FACT REMAINS THAT THEY HAVE PUT CHINA AS NO. 1, INDIA AS NO. 2 AND USA AS NO. 3 WORLD ECONOMIC GIANTS IN ITS JANUARY 2007 ANNUAL REPORT. HOW WILL THIS BE POSSIBLE?

THE LPG MODEL,[LIBERALIZATION,PRIVATIZATION AND GLOBALIZATION] WAS PROPOGATED BY THE US-BASED GLOBAL FINANCIAL INSTITUTIONS- WORLD BANK AND THE IMF- DURING THE 1980’S AND MORE THAN 130 COUNTRIES AROUND THE GLOBE, HAVE ADOPTED ITWITH STRINGENT REGULATIONSLIKEBRINGING DOWNTHE FISCAL DEFICIT BELOW 5% OF GNP, BRINGING DOWN THE CAD-CURRENT ACCOUNT DEFICIT (EXPORTS-IMPORTS=CAD) BY LESS THAN 1%  OF GNP AS EARLIER IT WAS 3% OF GNP.

MOREOVER, POVERTY IN INDIA WAS 38% OF GNP IN 1991 AND NOW,IT IS AROUND 25% OF POPULATION LIVING BELOW THE POVERTY LINE. (BPL)VIZ. 1, 800 CALORIES PER PERSON PER DAY IN URBAN AREAS AND 2, 400 CALORIES PER PERSON PER DAY IN RURAL AREAS. THIS DATA IS PROVIDED BY THE YOJNA BHAWAN, PLANNING COMMISSION, NEW DELHI. ANOTHER FACTWORTH NOTING PRIOR TO THE GLOBALIZATION ERA IN 1985, 15 PAISA USED TO GO TO THE POOR OUT OF 1. 00 RUPEE THE GOVT SPENT IN EMPLOYMENT PROGRAMMES IN RURAL INDIA AND BY 2007 PROF MONTEK SING AHLUWALIA, DEPUTY CHAIRMAN, PLANNING COMMISSION HAS FOUND OUT THAT ONLY 6 PAISA PER PERSON PER DAY WAY ACTUALLY GOING TO POOR BENEFICIARIES OUT OF EVERY RS. 1. 00 INVESTED [IN THE PRIME MINISTER MANMOHAN SINGH’S EMPLOYMENT YOJNA IN RURAL INDIA].

GLOBALIZATION IS MARGINALISING RURAL INDIA.PROBLEM IS THAT FOR A 8-10 PER CENT, GNP GROWTH, PER ANNUM, INDIA REQUIRES $150 BILLION OF INVESTMENTS IN PHYSICAL AND SOCIAL INFRASTRUCTURE DEVELOPMENT.

 THEN, NATIONALISTIC ATTITUTDE TOO IS LACKING AMONG THE INDIANS.

 THEN TERRORISM AND 160 DISTRICTS OF 600 DISTRICTS OF INDIA ARE MANAGED AND ADMINISTERED BY THE MAFIA, GOONDA RAJ, VEERAPAN-PHOOLAN DEVI TYPE GLOCALIZATION LORDS BECAUSE OF THE FAILURE OF NOT MARKETS BUT STATE PLANNING AND ALSO THE INDIAN INSTITUTIONAL SECURITY SYSTEM INCLUDING THE POLITICAL SYSTEM OF DEMOCRACY, WE,THE PEOPLE,POLICE AND  THE ARMY.

THE DAILY RAPES OF DAUGHTER’S, MOTHER’S AND WIVES OF THE CITIZENS OF J&K BY THE ARMY PERSONNEL IS A MAJOR CAUSE OF CONCERN FOR HUMAN RIGHTS IN THE NAME OF COMBATTING TERRORISM.

 ITS MARKETING INDIA ABROAD,CREATING INDIAN BRAND,DEVELOPING MARKETS,BUSINESSES,INNOVATIONS, CREATIVITY,EMPLOYMENT, MONEY MAKING, ENTREPRENUERSHIP AND EDUCATION  ARE SOME OF THE KEY STRATEGIC INITIATIVES, WHICH INDIA NEEDS, TO TACKLE,ON WAR FOOTING,WITH FIRM RESOLVE, WITH EDUCATIONAL CULTURE, HAVING AN EXPONENTIAL EFFECT, WHICH WILL BRING IN MONEY,IN THE HANDS OF THE PEOPLE, THROUGH CREATIVE INNOVATIONS WITH R&D.

BILL GATES AND MALINDA GATES FOUNDATION HAS SPEND OVER $500 MILLION ON AIDS AWARNESS AND CONTROL PROGRAM WHICH MANY FEAR WILL SPREAD LIKE AN EPIDEMIC IN INDIA. MALARIA, TYPHOID, DIPTHERIA, CHICKEN POX, TUBERCULOSIS ARE OTHER DISEASES WHICH ARE LIFE THREATENING ALONG WITH CANCER.

GLOBALZATION SEEKS THE INTEGRATION OF THE ENTIRE GLOBAL ECONOMIES TROUGH FORWARD AND BACKWARD LIKNAGES. IT IS BASED ON BRIDGING THE-

1- INVESTMENT GAP -THIS INDIA IS DOING WELL 35% NOW.

2- SAVINGINGS GAP-HERE TOO INDIA IS DOING VERY WELL WITH 31%

3- MANAGERIAL GAP-IT REMAINS A CHALLENGEAS WE ARE PRODUCING MBA’S ON A WHOLESALE  MARKET RATE WITHOUT ANY REGARD TO QUALITY OF PROFESSIONAL EDUCATIONINDUSTRY TRAINING, PROJECT, VISITS TO THE MANUFACTURING SITES AND INDUSTRIAL TRAININGS. WATCHING HOW THE “NAWAB BRAND” OF MANGO OF “DUSHERRI” VARIETY IS BRANDED FROM MALIHABAD, KAKORI, MALL AND HARDOI BELT OF UTTAR PRADESH AND EXPORTED TO CHINA, USA AND UK.

THE MANAGERIAL GAP NEEDS TO BE FILLED UP BUT THE MANAGERS NEED TO BE OF WORLD CLASS QUALITY.

4- “FOREIGN CAPITAL GAP” WILL ALSO BRIDGE THE “TECHNOLOGICAL GAP” TO MAKE PRODUCTS FOR EVERY SEGMENT OF SOCIETY.

AS IT IS A REQUIREMENT IN THE WORLD. GLOBALLY, WE HAVE 6 BILLION GLOBAL CITIZENS. SADLY, 4 BILLION DO NOT HAVE TWO SQUARE MEALS A DAY, I HEARD THE LECTURE OF PROF AMARTYA SEN IN 1986, FOR 6 HOURS, ON GLOBAL HUNGER, ON A SUNDAY EVENING SPECIAL PROGRAMME ON BBC WORLD SEVICE, LONDON, RADIO. LITTLE HAS CHANGED SINCE THEN, AS BY 2005 PROF CK PRAHLAD, CALLED UP,” FOR FORTUNE AT THE BOTTOM OF THE PYRAMID MODEL.” IF THIS IS FOCUSSED BY USA, EU, APEC, ASEAN, SAFTA, NAFTA, MERCOSUR ETC ON “WORLD HUNGER”, THE “WAR ON TERROR” WILL BE OVER. IF EDUCATION IS ON TOP. IF ECONOMY IS ON TOP. IF EMPLOYMENT IS ON TOP. IF INFRASTRUCTURE DEVELOPMENT BITH PHYSICAL AND SOCIAL IS PUT ON TOP AS A MANAGEMENT MANTRA ALONG WITH PROPER MARKETING AS EVERY BUSINESS BGINS AND ENDS WITH MARKETING WE WILL HAVE A SAFER EQUAL BETTER WORLD TO LIVE THAN IT IS TODAY.

ONLY TWO BILLION GLOBAL CITIZENS EARN MORE THAN $2 DOLLARS A DAY WHILE THE REST OF THE BPL-BELOW THE POVERTY LINE POOR PEOPLE EARN ONLY RS. 38/-VIZ $1/- A DAY. AS PROF C.K PRAHLAD STATES THEY ARE THE FIRST LEVEL OF FUTURE EMERGING MARKETS. FOR THEMLOW COSTHIGH QUALITY GOODS AND SERVICES ARE REQUIRED VIZ. RS. 2 /-ICE CREAM, RS. 2 /-PC, RS. 2/-CELL, RS. 2/-MOBILE PHONE SET JUST WE HAVE TODAY RS. 2/-NEWSPAPER AND RS. 2/- 1 PKT BIDI WHOSE NET BIDI INDUSTRY WORTH IS RS. 18, 000 CRORE. INDIA’S PHARMA INDUSTRY IS WORTH RS. 75, 000 CRORE.

POSITIVE ASPECTS OF GLOBALIZATION ARE MANY-

1- MORE CHOICE OF CARS, TV, MOBILE PHONES, REFRIGATORS, COMPUTERS, LAP TOPS AND A PLETHORA OF FMCG AND CONSUMER DURABLES ARE AVILABLE.

2- PRICE SIGNALS AND COMPETITION GIVE PROPER PRICE TO THE CONSUMER.

3- WITH THE COMING OF LOW PRIZED RADIO, TRANSISTORS, TWO-IN-ONE, CD PLAYER, DVD PLAYER, HAIER PLANET BRAND IN CTV, WASHING MACHINE ETC HAVE REDUCED THE PRICE OF LUXURY GOODSNOW AFFORDABLE TO THE COMMON MAN ON THE STREET.

4- THE EMI-EQUAL MONTHLY INSTALMENTS ON CARS, MOTORCYCLES, SCOOTER, AUTO-RICSHAWS OPERATED BY CNG HAVE MADE IT AFFORDABLE TO THE LOWER AND UPPER MIDDLE CLASS SEGMENT AND HAS ALSO ENCOURAGED CONSUMERISM AMONG EVERY INCOME SEGMENT.

5- RETAIL MARKETING HAS BROUGHT TO INDIA THE VERY BEST FROM MARKS AND SPENCER, BYFORD, PETER ENGLAND, ARROW, DENIM, SHOPPERS STOP, KHADIM’S SHOES, TESCO, ENGLAND, WALMART, K-MART ETC. THUS HELPING IN BULK BUYING AT CHEAPER RATES FOR CONSUMERS WITH THE ADVANTAGE OF WORLD CLASS BRANDED PRODUCTS.

6- THE REVOLUTION IN MOBILE TELECOM IT IS HARD TO IMAGINE A PERSON IN INDIA WITHOUT A CELL PHONE. 225 MILLION CONSUMERS IS THE INDIA MARKET. THE 1974, MARTIN COOPER, MOTOROLA SYSTEMS ANALYST DISCOVERY HAS BECOME SO FASIONABLE THAT PER WEEK IN CHINAA NEW MOBILE PHONE BRANDCOMES IN TO THE MARKETS. THE NO. OF CELL PHONES HAVE OUTNUMBERED THE LAND LINE PHONES IN INDIA.

7- EXPORTS OF SPORTS GOODS IS ANOTHER SILVER LINING FOR INDIA. EQUESTRIAN EVENTS, CRICKET BATS, PADS FOOTBALLS ETC.

8- THE OTHER MAJOR EVENT WAS THE NON PERFORMING ASSETS RAPIDLY CAME DOWN OF THE PSU BANKS. PRIVATIZATION OF BANKS WAS ALSO INTRODUCED AS PER THE RECOMMENDATIONS OF NARASHIMHAN COMMITEE-1992 AND SO WAS THE CASE OF INSURANCE SECTOR WITH THE MALHOTRA COMMITTEE REFORMS IN 1995WHERE FOREIGN PLAYERS LIKE PRUDENTIAL OF UK, STANDAD LIFE OF UK ING OF UK ALLIANZ OF GERMANY ETC. WERE INTRODUCED IN THE INSURANCE GENERAL AND LIFE INSURANCE MARKETS.

9- AS FAR AS THE ECONOMIC REFORMS MODEL (ERM)  IS CONCERNED BASICALLY I BELIEVE, IT WAS A SRTINGENT MODELTO DO AWAY WITH SOCIALISM, EQUALITY AND SOCIAL JUSTICE,  USSR- BASED- PARADIGMS BUT TO BRING IN MILTON FRIEDMAN’S-USA, 1976, NOBEL PRIZE IN ECONOMICS WINNER, ” SUPPLY SIDE ECONOMICS” PRIVATIZATION, PRICE SIGNALS, TRANSACTIONS COST, MARKETING ECONOMICS BASED USER PRICING, PRICE SIGNAL’S IDEOLOGY OF PRACTICALITIES AND WORLD CLASS ADOPTION IN IMPLEMENTATION WITH “THATCHERISM” AND “REAGANOMICS” IN THE FOREFRONT BASED ON “MONETARISM”, PRUDENT-PUBLIC EXPENDITURE/ SPENDING-CONTROL CAP WITH “FISCAL RESPONSIBILITY BILL” IN 2003.

INDIA‘S FISCAL DEFICIT MUST STAY BELOW 5% OF GNP.

TO DO AWAY WITH SUBSIDIES BILL IN FARM SECTOR.

BUT DEVELOPED NORTH NATIONS KEEP SUBSIDIZING THEIR FARMER’S IN E.U COUNTRIES TO THE AMOUNT OF 27% OF GNP.

ECONOMIC REFORMS IN INDIA LPG WORLD BANK-IMF BASED MODEL POST JULY-1991.

FFIIT MODEL=FISCAL SECTOR REFORMS+FINANCIAL SECTOR REFORMS + infrastructure SECTOR REFORMS+INDUSTRIAL SECTOR REFORMS+TRADE SECTOR REFORMS.

10- INDIA’S PER CAPITA INCOME HAS ALSO INCREASED FROM $470 IN 2001 TO $875 TODAY

INDIA NEEDS A TOTAL MENTAL ATTITUDINAL TRANSFORMATION OF THOUGHT AND ACTIONS WITH DISCIPLINE. A TOTAL PEACEFUL REVOLTION.ANOTHER NON-VIOLENT REVOLUTION. THE SCALE AND THE STYLE NEVER THOUGHT OFF BEFORE, WHERE MAN HAS NEVER REACHED BEFORE. SO THAT WE MAY SAY PROUDLY “MERA BHARAT MAHAN”.

 

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HIGH INFLATION,HIGH FUEL PRICES-MASS POVERTY IN INDIA

Today as I write this BLOG India has 8 per cent inflation,Indian Oil and its associated Companies are loosing crores of rupees per day and the foodgrains prices are on the rise.When we are having 150 MNC’s of India the news of our Pharma Major,Ranbaxy,[Total Turnover of 36,000 Crore Rs.,equivalent to $ 8.4 Billion, in India-2008-The 50 per cent of its[Ranbaxy] stake is now taken over by Japanese Co.Daiichi Sankyo,Tokyo,Japan in a $4.6 Billion Deal, CEO, Takash Shoda.Ranbaxy will soon become a subsidiary of Daiichi Sankyo,what a Strategy of sell-off]founded by Bhai Mohan Singh in 1905,run by his son Dr Parminder Singh throughout the 1960 to 1990s to a British CEO in Mr John Tempest and now with CEO and MD Malvinder Singh sell off to a Japanese Pharma major was a big blow to Indian Corporate sector, when we have endorsed the aquisition by Tata of Corus,and many other such acquisitions by Indian Companies abrwe endorse the presence of Shahnaaz Hussain in Harvard Business Review Case Studies,Biocons-India-,LML,BAJAJ,TVS,TATA,RAYMONDS,CADILA,CIPLA,INFOSYS,NIIT,HCL,etc.presence abroad.
The next General Elections slated to be on 2009-May I prefer to say that we are in for bad times.Bad economics is Good Politics and Bad Politics is Good economics.

Prof.Mateen Khan-The Mgt.Guru of Lucknow Univ.INDIA Passes Away

“Sar jhukaoge toh fir, pather devta ban jayega,
itna mat chaho usse, woh bewafa ban jayega,
tum toh dariya ho, jise apna safar maloom nahi,
jis taraf bhi bah chale, aasman ban jayega”

“Bachchon ke chote chote hathon ko, chand sitare chune doh,
Char kitabein padh kar yeh ,
Hum jaise ho jayenge.”

“Kaun aaya hai yahan, koi bhi na aayaa hoga,
In Hawaon ne, mere ghar ka darwaza,
Khat khataya hoga.

This has reference to February 29,2008 when my Mgt. Guru,Teacher and Colleague as well as College Senior at La Martiniere College, Lucknow, passed away due to a massive heart attack.
He was not keeping good health, but even if today, 23rd March 2008, nearly a month has passed, hardly any person close to him,taught by him,knowing him, believes that Mateen Sir, is no more.No more those sher and shayeries which made me use them as frequently as he used to in the MBA Classroom within the Mgt. context not out of the blue out of context which people with scant knowledge of mgt. did.
Mateen Sir served Lucknow University, since 1975, the LUMBA,Dept.of Business Administration,under the Dept. of Commerce after his initial primary and secondary education at La Martiniere College,Lucknow.He was an ardent passionate player of Golf.Member of the Golf Club.To me, when I was struggling,without a guide,a teacher,a mentor,a guru of mgt., in my PGDM-HRM Program from IGNOU New Delhi at my study centre JNDC/KKC College Lucknow in 1994-95 he guided me to study from Essentials Of Mgt. by Koontz,O’Donnell and Weihrich, Mac Graw Hill Publications, New York,USA,Peter Drucker-Management-People,Practice and Philosophies,etc.
Not only did I score the highest marks in HRM but also my later association with him as Mgt. Guru at MMEM and MBA Marketing IMS New Campus LU made it a lasting relationship.
I salute you Mateen Sir….

PREFACE OF MY BUSINESS POLICY AND STRATEGIC MGT.TEXT & CASES-AURNOB ROY-VRINDA PUBL.N.DELHI-INDIA.MBA TEXT BOOK

PREFACE

 

We are living in an era of jobless growth. The World Economy is a Networked Global Village. The PSP-People-Service-Profit Model holds supreme.

Putting the people first, bias towards action ,together everyone achieves more (TEAM), putting the customer first and direct action towards effectiveness (DATE) are the current managerial paradigms.

However, we are witnessing huge unemployment, technology and capital led growth and not labour led, people centric economic growth.

Germany is facing unemployment, so is USA and Western European Economies as Low Cost Jobs are going towards China, Chezch Republic, Slovakia, Russia, Ukraine, Brazil, India , South Africa etc.

Currently, in the Third Wave Liberalisation, Privatization and Globalization (LPG) based World Economy; the US Economy is going through a slowdown. This may well have its impact on India, which is predicted to be the World’s No.2 Economy by 2050 after China , the World’s No.1 Economy by 2050 , as per Goldman Sachs Annual Report-2007.

Based on this perspective in the 21st century World Economic Order (WEO) , this book of mine, “Business Policy and Strategic Management-Text and Cases-Aurnob Roy” lucidly explains the theoretical concepts of Strategy and builds upon its Models with practical updated Case Studies.

I have tried my best to include traditional business wisdom along with the modern applied business practices as practiced by the Top Management Hierarchy, in the International Corporate World of World Class Corporations (WCC).

From Corporate level to Business level to Functional level, the Business Strategies, are dealt with, keeping the practical business world orientation in cases, caselets and corporate applications as a form of simulated learning orientation in Strategic Management.

The integration of the functional areas of Management by Strategy viz. Human Resource Management (HRM), Production and Operations Management, Marketing Management, Financial Management and Management of Information Systems (MIS) are dealt with, in a proactive inter-disciplinary manner.

Significantly, it covers the entire updated syllabus of BPSM/Strategic Management, compulsory course materials, as covered in the premier Business School’s in India and abroad viz. Indian Institute of Management (IIM’s), MBA Programmes offered by the Indian and Foreign Universities viz. The Ivy League-Harvard, Dartsmouth, Yale, MIT-Pennsylvania University, USA etc. , Uttar Pradesh Technical University (UPTU) ,Lucknow ,FMS ,Delhi University, Amity Business School ,Amity University U.P and Rajasthan , campuses at NOIDA , Jaipur , Manesar and Lucknow , LUMBA-Lucknow University’s Department of Business Administration , Self Financing Management Programmes (SFC’s) of the Lucknow University, Institute of Management Sciences (IMS) ,Lucknow University as well as the BBA and BBM under-graduate managerial courses in India and abroad.

I take the full responsibility and not the publisher of this textbook for any inadvertent error or any other errors , which may have crept in and shall be entirely grateful to the reader’s feedback and innovative new ideas , which could be further included , to upgrade this book. Every Strategic Management expert, reader, learner, academician and synergic management intern is encouraged to contact me at aurnob2001@gmail.com, aurnob.roy.education.foundation@gmail.com.

Tel- 09838682445 (M) and 0522-4048288 ®.

 

Prof.Aurnob Roy 31st January2008

Lucknow

 

 

1

 

 

ACKNOWLEDGEMENT OF MY BOOK ON BPSM-TEXT & CASES: AURNOB ROY

ACKNOWLEDGEMENT

 

I would like to extend my heartfelt gratitude to the following respected knowledge society members for their support, inspiration, motivation, synergy, emotional bank account (EBA), criticisms, analysis, enthusiasm and giving me “a pat on the back” and the much needed integrity and life long learning, as an important part in completing this textbook venture in collaboration with Mr.Dinesh Kant, CEO, Vrinda Publications Pvt.Ltd.New Delhi.

 

This is my journey towards attaining world class excellence in applied strategic management.

 

Special thanks are due to Major General K.K.Ohri, AVSM, Retd. Director General, Amity University, Uttar Pradesh, Lucknow Campus, for his constant inspiration and guidance, as my mentor.

 

I extend my gratitude to Mr. Aseem Chauhan , M.B.A , Finance , Wharton Business School , Pennsylvania , USA , Chancellor, Amity University,Rajasthan,Jaipur and Additional Vice President Ritnand Balved Educational Foundation Society (RBEF) ,AKC House, New Delhi , for his vision of world class corporate culture and organization values , which we strive to fulfill , our dreams , as Amitians.His faith, trust and responsibility empowered in me , as a “Role Model” is commendable.

 

I am deeply indebted to Prof.R.P.Singh ,Director, of our Amity Business School ,Amity University ,Uttar Pradesh ,Lucknow Campus ,formerly ,Director ,Agriculture Management Center ,(AMC) ,Indian Institute of Management Lucknow (IIML) and Fellow , Harvard University ,USA , an academician of high repute for his constant support, guidance and motivation in this creative venture.

 

Thanks are also due to Prof.Mahendra Singh Sodha,Former Director ,I.I.T New Delhi , Vice Chancellor ,Devi Ahalya University Indore ,MP , Vice Chancellor , Lucknow University UP and Vice Chancellor ,Barakatullah University ,Bhopal , MP who has been a source of inspiration and positiveness throughout my academic career since the last 15 years.

 

Special thanks are due to my friend, philosopher and guide Dr. Awadhesh K. Singh , Assistant Director ,Regional Center of Urban and Environmental Studies-RCUES , Lucknow University and Consultant , World Bank ,Washington DC , USA , as for me he is the “Hanuman of a Researcher” and has always been “an instant learning tonic” for my attitude.

 

Thanks are due to Dr.Nimish Gupta, Senior Lecturer, Amity Business School for his consistent guidance and meticulous planning towards managerial effectiveness.

 

I am especially thankful to my “Guru” Prof.A.K Sengupta,Economist,Head ,Dept. of Economics ,Director ,Institute of Development Studies ,Lucknow University ,Director ,M.B.A-Marketing, Institute of Management Sciences , Lucknow University, Former Finance Officer ,Lucknow University, Consultant ,World Bank ,Washington DC USA and member ,State Planning Commission ,UP ,Yojna Bhawan for his consistent source of inspiration ,guidance and having faith in me , saying repeatedly ,” You can do it. Just do it.”

 

I extend my gratitude to my friends and colleagues in the world of academics viz. Prof. John Parnell, PhD. Pembroke, North Carolina University , USA , Prof. Michael Porter ,Professor Strategy ,Harvard Business School ,USA ,Prof. Henry Mintzberg ,Professor of Strategy ,Mac Gill University , Montreal , Canada, Prof. Ranjan Das , Professor , IIM ,Kolkata and Prof. C.K Prahlad ,Professor of Strategy ,Michigan University ,USA for extending me constant support and discussions to make this textbook reader-friendly.

 

To Mr.Ashok K Verma I owe the credit for his creativity and acting as a “Guru” in pointing out my mistakes to make the textbook and the Case Studies particularly up-to-date in the present context of Economic Reforms and Corporate India’s applications.

 

I owe my gratitude to Mr. Ajit K Srivastava, M.A. Economics, our administrative facilitator at the Amity University, Lucknow Campus, for his synergic hard work in typing the text, the layout in its present form. Without him, this work would be incomplete in all its dimensions.

 

I would like to thanks my ABS faculty members viz.Dr.Ekta Rastogi, Dr.Nimish Gupta,Prof.Brijendra Singh,Prof.Anupama R ,Prof.Jayanti Srivastava,Prof.Ram Saran Srivastava,Prof.Suchitra Srivastava,Prof.Aarti Mehta Sharma,Dr.Alka Singh Bhatt,Prof.Shailja Dixit,Dr.Manu Johri, Prof.Swati Singh,Prof.Parul Tripathi,Prof.Shaily Vaderra,Prof.Rohit Khushwaha,Dr.Amit Kumar Sinha,Prof.Anviti Gupta,Prof.Sabeeha Fatima,Prof.Shaista Anwar,Dr.Kamayini Joshi,Dr.Azhra Ishrat,Dr. Saima Rizvi,Prof. Seema Wali,Prof.Reshma Bhartiya and Dr.Mahima Sharma for their constant source of re-energising my intellectual potential.

 

Thanks are also due to my academic friends’ viz.Prof.Pooja Bhatia, Dr.Raj Kumar Ohja, Dr Masood Siddique,Dr Sanjay Rastogi,Dr.Mridula Goel,Dr.S.R.Mussanna,Prof.S.Chakraborty,Prof.Malay Bhattacharya,IIMB,Prof.Ravi Bannerjee, Dr.Devasheesh Bose, Prof.Suneel Gupta, Prof.Arun Bhadauria, Prof.Puneet Mohan, Prof. Shaily Mishra & Prof.Amit Batanagar.

 

Special thanks to my publishers of this textbook-Vrinda Publications and its CEO,Mr Dinesh Kant for being so kind, co-operative and positive that working has been a pleasure with him.Also,Mr.Rakesh Sethi , Sales Officer and Representative of VPPL , his Herculean contribution to network with me and monitor the book’s progress despite his busy schedule is commendable.

 

Lastly, I wish to thank my wife, Mrs.Sumita Roy, my daughter Sneha Roy for sparing me out of other pursuits of their time so that I could complete this book.Also,to my mother,Smt.Shobhna Roy,for her relentless positive feedback and constructive criticism.Thanks are also due to Mr.Uday Shankar Bhattacharya and Mrs. Urmika Bhattacharya, my in-laws for their constant blessings in this enterprise.

 

 

 

 

 

 

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