Chauvinist forces

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More space required. Give them!
The armed forces of the country fall awfully short when it comes to employing women in their ranks. Indian Navy had women in their ranks only after 1992. The women now form part of their education, logistics, medical and the air traffic control units; but surprisingly, they are neither in the combat units nor can they rise higher in the hierarchy. Indian Air Force similarly employs women in several sectors including flying helicopters and fixed wing aircraft s, but not the fighter aircraft s. In Indian Army, gender equality remains farthest in agenda. Statistically, of the total of 34,000 officers that the Army has, only 933 are women. The Navy has a majestic 100 out of 7,000, while the Air Force has 450 women in their 10,200 officer ranks. It must also be highlighted that women are in general employed only for the short service commission in most of the cases serving a maximum of 14 years.

The standard argument of ‘cultural sensitivity’ that is given for their non inclusion falls flat when women’s inclusion into all ranks of Police hierarchy is considered. That reasoning finds few supports even historically, given the rich legacy of women fighters from Razia Sultan to Rani Laxmi Bai Regiment (in the Indian National Army). Needless to say, in changing times, the policy framework reflecting more of chauvinism needs to change.

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Source : IIPM Editorial, 2006

Initiative :- An IIPM and Management Guru Professor Arindam Chaudhuri

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Honda blows a clean horn

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According to new California emission norms of 2007, vehicles that weigh less than 6000 pounds should not emit more than 0.07 grams of N2O (Nitrogen oxide) per mile on an average. Honda along with other Japanese conglomerates is engaged in the business of selling lighter fuel efficient cars in America and therefore this obligation hurts. Honda has announced that it will launch a diesel powered vehicle by 2009, which will meet the stringent norms that other major automobile manufacturers have failed with. In this regard the company is experimenting with some high-end diesel technologies and is planning to invest an estimated $4.8 billion on R&D activity. Honda is also going to launch its next generation FCX fuel-cell sports car in the American markets.

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Initiative :- An IIPM and Management Guru Professor Arindam Chaudhuri

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If you were wondering how we chose the inimitable B&E Power 100, here lie the answers...

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The initial set of companies selected for arriving at India’s top 100 profitable companies were chosen from the BSE 500 index. Incidentally, the BSE 500 index represents 93% of the total market capitalisation on BSE. Only those companies, whose financial details were available, were taken into consideration. The advantage of using the BSE 500 index as a sample was that it virtually covers all possible sectors that have contributed to the economy, and hence, is an index not biased or inclined towards a particular sector. Grouping of the companies was done strictly according to the sector bifurcation done by the BSE (primary data sourced from Capital Line Plus).

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Source : IIPM Editorial, 2006

Initiative :- An IIPM and Management Guru Professor Arindam Chaudhuri

Not the goods though, as players enter into M&As to unleash growth

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The FMCG sector has witnessed heightened M&A activity in the recent past in order to expand product and market presence in a sluggish sector. With FICCI extrapolating a growth of merely 2% for the year 2005-06 in the (so-called) fast moving consumer goods industry, the bigwigs of this space are looking for new avenues to overcome the negative trend.

Godrej Beverages & Foods Ltd. grabbed Nutrine for Rs.2.7 billion, Wipro acquired the Glucovita brand from HLL, and Dabur India acquired the loss making Balsara (which is now showing profits), with brands like Odonil, Odomos, Odopic & Sanifresh for Rs.1.4 billion. In the same league, Wockhardt acquired Dumex India, owner of the brands Protinex & Farex from Royal Numico NV.

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Initiative :- An IIPM and Management Guru Professor Arindam Chaudhuri

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Alan drops-off from Boeing to Ford

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Former Boeing Executive, Alan Mulally, has been appointed as the new Executive President and Chief Executive Officer of the American auto giant, Ford. This appointment came after Bill Ford gave up his post as a CEO; after struggling for five years to keep the wobbly auto company intact. Aged 61, Mulally has handled the posts of President and CEO at Boeing Commercial Airplanes since 2001. He has been associated with the aircraft manufacturer for the past thirty-seven years. Ford chose upon Mulally looking at his art to keep his customers satisfied, handling labour problems with ease and managing supplies. However, Bill Ford, who took charge as a
CEO in October 2001, will continue to hold the office of Executive Chairman, working on strategically repositioning the company that his great-grandfather Henry Ford had established. His family still holds about 40% of total shares in Ford Motor.

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A few Bollywood directors on TVC’s
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Satyam

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Founder & Chairman: B. Ramalinga Raju
Gone are the days when analysts skipped (read failed!) mentioning Satyam in the same breath as that of other Indian IT biggies such as Infosys, Wipro and TCS! “There is nothing impossible to him who will try” has been the main principle that has guided countless men to make robust business conquests across the globe. And Satyam surely seems to be following the adage seriously!

Ramalinga Raju, Chairman, then a 32 year old management graduate from Ohio University, started Satyam in 1987. He has since then been known in the market as a man who sets bold goals, even if others disagreed. This ability to think big and out of the box complemented his unbridled enthusiasm & has been the cornerstone for Satyam’s success in the IT sector (not only in the Indian market but across the world). Ramalinga Raju proudly puffs his chest when saying “Satyam today is one of the youngest IT services companies to be featured among the top companies in the world.” And surely, he has every right to do so considering the fairly short period of time in which Satyam has carved a place for itself under the IT sun. These days Raju has his eyes set on making Satyam a global brand and is steering the company in apparently the right direction.

Satyam posted an impressive revenue figure of $322.5 million for the Q1 FY06-07, a surge of 31% in the corresponding quarter of the previous year. The company is moving up the value chain fast with solutions for Enterprise Resource Planning (ERP), Supply Chain Management (SCM), Customer Relationship Management (CRM), Enterprise Project Portfolio Management, Data Warehousing and Business Intelligence, Enterprise Information Portals, Enterprise Application Integration (EAI), Knowledge Management, e-Procurement and Marketplaces.

Satyam already has offices in 55 countries and despite being a young company, it has on its rolls 30,000 talented IT professionals. The company proudly claims that they service “489 global companies, including over 156 Fortune 500 corporations.” Clearly, the stage is set for this Indian IT scion to make the coming years its own... time is on their side!

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Source : IIPM Editorial, 2006, Arindam Chaudhuri's Initiative

Here’s to the mother of adventure tourism...

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Katrina, Rita, Wilma... the hurricane holocaust that lasted from August to October in 2005 changed lives and geographies in several parts of the world. It’s been more than a year since a major hurricane hit us, yet memories of the heart-rending devastation and destruction remain etched in our minds! What’s worse, the wounds have still not healed and there comes a prediction of another disaster, ready to take its course. The National Hurricane Centre, a tropical prediction centre located in Florida, has conjectured a busy season for the hurricanes to wreak havoc again this year – especially in the hurricane zone – the Caribbean, Atlantic Coast and the Gulf of Mexico!

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Thinking differently about differentiation

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Q: I really support differentiation – ranking employees into performance categories of top 20%, middle 70 and bottom 10, and then managing them “up or out” accordingly. But don’t companies face all sorts of resistance when they try to implement this system? – Yoshihisa Tanizawa, Kuala Lumpur, Malaysia

A: ‘Resistance’ may be too soft a word! Yes, differentiation has its advocates – and even its hardcore devotees – but no other management practice that we talk or write about ignites the same firestorm of controversy. So thanks for asking about it. Your question gives us a chance to sort differentiation myth from reality. Done right, differentiation is not, for instance, “rank and yank”, with its purported public firings of stunned victims once a year. Nor is it cruel, corrupted by favoritism and culturally inappropriate.

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