Thought for the day

I believe that it is better to learn from the diverse people around us than to try in vain to emulate them, better to be a teacher than a role model. As strong as my legs are, it is my mind that has made me a champion.

- Michael Johnson

Marketing Glossary

Market segment

A customer group within the market that has special characteristics which are significant to marketing strategy

Market segmentation

Segmentation involves subdividing markets, channels or customers into groups with different needs, to deliver tailored propositions which meet these needs as precisely as possible.

Market share

Market share can be defined as the percentage of all sales within a market that is held by one brand / product or company.

Market targeting

Market targeting is the process of evaluating each market segment and selecting the most attractive segments to enter with a particular product or product line.

Business News

Economic reforms positive for India's credit worthiness: Fitch 

The recent slew of measures announced by the government, including FDI in multi-brand retail and diesel price hike, will support India's medium to long-term growth prospects, said Andrew Colquhoun, Head of Asia Pacific Sovereign Ratings at Fitch.  The measures will be a positive factor from a sovereign credit worthiness perspective for India, Colquhoun told ET Now. Fitch Ratings will keep an eye on the implementation of the fiscal consolidation roadmap laid down by the Kelkar Committee report.

Colquhoun feels that the Reserve Bank of India's (RBI) ability to ease the monetary policy will be constrained by elevated inflation levels. Supply side factors will also keep RBI's hands tied, he said.

India's credit rating has partly been kept at a 'BBB-' owing to high fiscal deficit levels, he said. "India has higher fiscal deficit levels compared to other developing Asian countries," Colquhoun added.

Asked about the recent cut in GDP growth forecasts by Fitch to 6% levels for India, Colquhoun said that it does not impact the country's sovereign credit profile. However, signs of persistent weakness in growth will be kept an eye on.

Ratings agencies Standard & Poor's and Fitch have put India's sovereign credit rating on the watch citing poor economic fundamentals, high fiscal and current account deficits and lack of action from the government.

A downgrade would take India's rating to below investment grade, which may force many investors to sell Indian securities or stop incremental investments, depressing capital flows and raising cost of borrowing for the local companies.

India's fiscal deficit, which is the difference between revenue and expenditure stood at 5.8% of GDP in 2011-12, way above 4.6% of GDP provided in the budget.

However, some experts believe that the recent big bang changes may have helped ward off the downgrade threat to a large extent or at least push it back.

HR Article

CAN HRD BE REALLY QUANTIFIED

“ Mum, please help me pack. My company is sending me on a month-long tour to Canada. I will miss you all. ”

“ Sweetheart, I will be going to office on weekends as well, for the next couple of weeks. We have an audit coming up ! “

The corporate sector (where we feel so proud to belong to) is an artificial society. It is a whole new world – like the glamour industry – which dazzles to outsiders and only the insiders know it all! Once you enter the rat race, seldom you will jump out of it. It is like the quicksand. If you attempt to play with it, it will engulf you and if you stay still – it does lesser harm. Of course, this is just one side of the story. The entire picture is not so dreadful as it may seem.

If we apply our minds and question ourselves, the answer stares back at us. Any business venture is set-up primarily for financial gains. Mind-you, this might be the most pursued goal but is certainly not the only one.

It may often appear to be the overriding one but I can site a dozen of illustrations off-hand, to drive home the point that financial gains (or “ profits “ as they call it in business) are not the only goals. The most common and striking reason why a young-budding entrepreneur gets into a business venture is – the free entrepreneurial spirit. It is the sheer risk-taking ability and the confidence in one self that frees and individual from a 9 to 5 (should I say 5 to 9) job. This perspective makes me believe “ Exploring one’s potential and realizing it “ is the hidden and real goal of business. The “ risk – taker “ dives into an ocean of challenges without kowing how deep the concerns are or how strong the waves could be!

Every business, which today stands as a full-fledged business empire, was born, because of one such leader – an entrepreneur, who had the dream, the vision, the determination and above all the passion of realizing his inner potential. It is worth mentioning a few names like the Tatas and Ambani who opened the world of job opportunities to thousands of people.

We owe it to such business tycoons, that today India has a name in the global business scenario. If we look t such pioneers of business in India, the one thing common about most of them is “ a genuine humane approach “ to people and life. Greatest of people have also been the simplest of all. Deep in their hearts was an authentic, warm and caring attitude towards mankind. We need no research evidence to state that – a man truly altruistic at heart succeeds the most in life. And of course success to such men is not bank balances but fond memories of a well-spent life.

If the core of business is this humanistic passion, then surprising that it is enveloped by bitter layers. Layers of manipulation, politics, favouritism, and many more… It is said - we can’t market if we are unwilling to lie. We have also heard – you have to cheat to make profits and that you cannot be a good businessman if you are humble at heart. These are the bitter layers that hide the inner core which is so pure and so real!

A business does not necessarily mean a manufacturing plant or a service out station. Even hospitals and educational institutions are business entities whose humane goals are probably more obvious.

In a school we have different organizational members viz. the principal, HODs, supervisors, teachers and the students. Apart from imparting knowledge the teachers play another important role of understanding the uniqueness of each child, his strengths and limitations, helping him “grow” and mould his personality. May be this is the reason why “ female “ teachers are more acceptable to young children than the traditional “ father figures “. The academic training is just one of the roles a teacher plays; the others being more abstract or intangible; which touches much more deeper into the child’s life.

In one way, the teachers in schools are like the HRD professionals in the corporate sector who take up the task of nurturing the organizational members – who commit themselves to understanding each employee’s uniqueness, his talents and his shortcomings, who enrich the environment - making it conducive for the employee’s growth.

I haven’t come across any school which attempts to measure or quantify this abstract or intangible role the teachers play in the lives of students. Observations are made and the child’s progress is assured. The improvement may not be apparent in a year or two; but may take years for the bud to bloom and spread its fragrance in this world. It requires patience, consistent efforts and above all – belief in the cause or intention.

Today HRD professionals seem to be struggling for survival. It is a trend these days o talk of HR being business driven or “ Making HR a business process “ – all energies focused on proving the effect of HR on the bottom-line. All these smart captions begin and end at Quantification – measuring the human capital. Splendid work is done to understand HRD issues like communication, motivation, team building, and leadership more scientifically – more objectively. Pseudo jargons are coined and the old wine is sold in a new bottle. This happens day in and day out.

We need not attempt to justify HRD if we are convinced about its contribution into the business. Neither does a mother attempt to nor does a teacher. Very similar is the role of an HRD professional – to nurture people. Every business tycoon (as discussed in the earlier section of this article) was an ideal HRD manager simply because he cared enough.

Gone are the days of Intelligence Quotient, today Emotional Quotient is given more importance. Why? Maybe because people have realized – in tough times heart rules the head. Intelligence strikes the sight but integrity wins the soul. There is ample research done to prove that people with the right attitude more than the aptitude attain success at workplace.

We need to focus our energies into development and not into management, that too management of figures to win us our bread n butter!

Like the teaching profession HRD is also a noble one and deserves due respect. In every profession, there are black sheep. The unprofessional HRD people have contributed much for HDA to be labeled as – undeserving or disabling rather than a nurturing department. An appeal to individuals who claim to be a part of the HRD community – please do not poison this treasure which the entrepreneurs of today’s business empires have left us with and an appeal to the business community at large – please do not attempt to measure or quantify all HRD processes – as –

“ the most beautiful things in life cannot be seen or touched, but are to be felt by the heart. ”

Thought for the day

An education isn't how much you have committed to memory, or even how much you know. It's being able to differentiate between what you do know and what you don't.

- Anatole France

Marketing Glossary

Market entry

 The launch of a new product into a new or existing market. A different strategy is required depending on whether the product is an early or late entrant to the market; the first entrant usually has an automatic advantage, while later entrants need to demonstrate that their products are better, cheaper and so on.

Market follower

A firm that is happy to follow the leaders in a market place without challenging them, perhaps taking advantages of opportunities created by leaders without the need for much marketing investment of its own -
see also 'market challenger' and 'market leader'

Market positioning

 A marketing strategy that will position a business’ products and services against those of its competitors in the minds of consumers. To achieve positioning success it is suggested that there are four basic competitive
strategies that a company can follow (based on work by Porter):

- Cost leadership - the company tries to achieve lowest costs of production and distribution

- Differentiation - making use of specific marketing mixes
- Focus - paying attention to a few market segments

The fourth strategy is a losing strategy in which a business pursues a middle-of-the-road path. Businesses that try to be good at everything are rarely particularly good at anything

Market research

The systematic gathering, recording and analysing of data about problems relating to the marketing of goods and services

Business News

India's Kingfisher in Talks with Foreign Airlines

Indian billionaire Vijay Mallya said that Kingfisher Airlines Ltd. 532747.BY -5.19% was in talks to sell a stake to a foreign carrier after the Indian government this month permitted such investment for the first time.

New Delhi earlier this month allowed foreign airlines to take up to a 49% stake in Indian carriers as part of broader moves to open the economy.Mr. Mallya, who made his fortune in liquor and launched Kingfisher Airlines in 2005, had been pressing the government to allow foreign direct investment, or FDI, in airlines, arguing the sector drastically needs massive capital injections.Many of India's airlines are unprofitable due to cut-throat competition from other local carriers, sky-high fuel costs and expensive airport fees.

Kingfisher's woes have mounted in recent months. The airline has been unable to remain current on its bank debt and owes unpaid taxes to the Indian government, according to the government and Kingfisher. As of March 31, Kingfisher had 80.24 billion rupees ($1.5 billion) in debt.

As its debt problems have deepened, Kingfisher and its employees say it has failed to pay staff wages. The airline also has been forced to cut back drastically on routes."Suffice it to say we are in conversation" with foreign airlines, Mr. Mallya said Wednesday. He declined to name any of the interested parties. "The FDI announcement came just ten days ago, so we can go so fast and not faster."

Mr. Mallya is also looking at selling a stake in his flagship liquor business—a move also likely aimed at helping to solve Kingfisher Airlines' problems, analysts say.On Tuesday, U.K.-based Diageo said it was in talks to buy a stake in Mr. Mallya's United Spirits Ltd., Although both Kingfisher Airlines and United Spirits are separate Mumbai-listed companies, Mr. Mallya has controlling stakes in both firms.

That means he could sell a personal stake in United Spirits to Diageo and use the proceeds to help pare Kingfisher's debt, says Jasdeep Walia, a Mumbai-based analyst at Kotak Securities Ltd.Diageo and United Spirits said Tuesday that there is no certainty the discussions will lead to a deal. Both parties also declined to disclose the size of the stake that Diageo is looking to buy.

Thought for the day

Education … has produced a vast population able to read but unable to distinguish what is worth reading.

- G. M. Trevelyan British historian

Marketing Glossary

Multi-segment strategy

A strategy by which a business directs its marketing efforts towards two or more market segments by developing a marketing mix for each

New product

A new product can be defined as a good, service or idea that is “perceived” by some potential customers as new. It may have been available for some time, but many potential customers have not yet adopted the product nor decided to become a regular user of the product

Niche marketing

Niche marketing refers to the exploitation of comparatively small market segments by businesses that decide to concentrate their efforts. Niche segments exist in nearly all markets – for example the self-build
sports car segment of the motor industry

Non-personal communication

Methods of promotion that do not generate any personal feedback. Advertising is the best example of this

Company Profile

Go far in the world. Leveraging our global reach and local expertise opens a new world of communications.

The global reach and industry expertise of Tata Communications drives and delivers a new world of communications. The company leverages its Tata Global Network, vertical intelligence and leadership in emerging markets to deliver value-driven, globally managed solutions.

About Tata Communications

Tata Communications is a leading global provider of a new world of communications. With a leadership position in emerging markets, Tata Communications leverages its advanced solutions capabilities and domain expertise across its global and pan-India network to deliver managed solutions to multi-national enterprises, service providers and Indian consumers.

The Tata Global Network includes one of the most advanced and largest submarine cable networks, a Tier-1 IP network, with connectivity to more than 200 countries across 400 PoPs, and nearly 1 million square feet of data center and colocation space worldwide.

Tata Communications' depth and breadth of reach in emerging markets includes leadership in Indian enterprise data services, leadership in global international voice, and strategic investments in South Africa (Neotel), Sri Lanka (Tata Communications Lanka Limited), and Nepal (United Telecom Limited).

Tata Communications Limited is listed on the Bombay Stock Exchange and the National Stock Exchange of India and its ADRs are listed on the New York Stock Exchange. (NYSE: TCL)

Our People

Our global office holds talent from six continents. Our vast pool of expertise in the communications and technology sectors embody our commitment to conduct ethical and sustainable business. Tata Communications continues a tradition of developing and deploying innovative solutions for existing and emerging markets worldwide. Our international team reflects the dynamic and diverse market Tata Communications serves.

Our Values

Service and business at Tata Communications is guided by a commitment to ethical and responsible conduct.

Thought for the day

There are millions of children who don’t attend school. However, education is the only way to get ahead in this country.

- Azim Premji

Marketing Glossary

Logo

A graphic, usually consisting of a symbol and/or group of letters that identifies a company or brand.

Macro forecasting

Macro forecasting is concerned with forecasting markets in total. This is about determining the existing level of Market Demand and considering what will happen to market demand in the future.

Panels

Groups of consumers selected to represent a market or market segment who agree to be regularly interviewed by mail

Manufacturer brand

Manufacturer brands are created by producers and bear their chosen brand name. The producer is responsible for marketing the brand. The brand is owned by the producer. By building their brand names, manufacturers can gain widespread distribution (for example by retailers who want to sell the brand) and build customer

Marker leader

The business in a market with the largest market share. The market leader, particularly one with a dominant market share, is often “followed” by competitors in terms of pricing and product strategy

HR Article

Business Experiments

Taking Intelligent Risks

(Also known as Pilot Projects and Pilot Experiments)

Your boss has asked you to develop a new service that will boost customer retention, and you've come up with several ideas that you think might work.

The problem is, you're not sure which ones will have the biggest impact. And you don't have the time and resources to implement each idea fully. So, which idea should you move forward with?

This is one situation where it's useful to set up business experiments. By running these, you can test ideas on a small scale, before you take big risks or commit significant resources to a larger project.

In this article, we'll discuss how to conduct business experiments, and we'll look at how you can learn from them.

Why Experiment?

Many businesses don't grow unless they innovate, and innovation comes from developing and implementing new ideas. However, innovation usually carries a risk of some kind: fundamental assumptions may be wrong, new products may not work sufficiently well, customers may not accept your ideas, and so on.

This is why it's so useful to run business experiments. By testing ideas, you can understand how they might perform on a larger scale. You can also learn from your failures and mistakes, and refine your ideas to make them better.

Business experiments can involve anything from very basic tests (for example, changing the welcome message on your website or testing a new process for dealing with telephone enquiries) to more-complex projects (for example, testing a new product or service with a small number of customers).

Marketing Glossary

Income elasticity of demand

Income elasticity of demand measures the relationship between a change in quantity demanded and a change in income

Industrial buyers

Industrial buyers are those who purchase items on behalf of their business or organisation

Industrial market

Industrial markets involve the sale of goods between businesses. These are goods that are not aimed directly at consumers.

Inferior goods

Inferior goods have a negative income elasticity of demand. Demand falls as income rises

Influencer

A person in a group buying situation (e.g. a family) who exerts significant influence in the final buying decision

Initiator

A person in a group buying situation (e.g. a family) who first suggests buying a particular product or service

Accounting Article

Cash Flow Analysis
Reading Borrower’s Health

An experienced banker was once asked about secret of his decision making.  He replied that before taking any lending decision he wanted the prospective borrower to satisfy him on two basic points: firstly how he is going to pay back the money and secondly what should he (banker) do to know that his plans on which repayment depends are really materialising. Obviously there should be a system for the banker to know about the health of his borrower’s business.  Cash flow is one of the tools to have this information and more precisely borrower’s ability to meet his obligations as and when they mature.  Unfortunately the system has not been given due importance in credit appraisal in Indian context.

Liquidity and Solvency

Liquidity refers to borrower’s ability to meet his current obligations i.e. how fast the current assets are converted into cash to pay for current liability.  Solvency on the other refers borrower’s ability to service the debt i.e. ability to meet interest cost and repayment of term loan.  A borrower may have enough assets but may not have enough cash to meet his obligation (for the reasons which we shall analyse afterwards).  Thus, there is a need to look into liquidity in depth.

Liquidity and Profitability

Generally speaking the health of a borrower is gauged by his ability to earn.  But sometime a borrower though showing profits may not be in a position to meet his obligations because profits always does not mean liquidity.  Profitable companies can be cash broke and unprofitable companies may have rich cash lodes.  A borrower in distress may resort to window dressing to hide his real state of affairs by resorting to certain accounting conventions, change in valuation of inventory (LIFO TO FIFO or vice-versa), under provision of liability, revaluation of assets etc. are usually adopted practices to inflate/manipulate profits.  Hence there is a need to know what cash is exactly generated by the borrower from operations to see his ability to service the debt and meet current obligations.

Thought for the day

The mediocre teacher tells. The good teacher explains. The superior teacher demonstrates. The great teacher inspires.

- William Arthur Ward

Marketing Glossary

Innovators

Innovators are those who adopt new products first. They are usually relatively young, lively, intelligent, socially and geographically mobile. They are often of a high socioeconomic group (“AB’s”).

Intensive distribution

Intensive distribution aims to provide saturation coverage of the market by using all available outlets

Internal marketing

The process of eliciting support for a company and its activities among its own employees, in order to encourage them to promote its goals. This process can happen at a number of levels, from increasing
awareness of individual products or marketing campaigns, to explaining overall business strategy.

Introduction stage

A product's first appearance in the marketplace, before any sales or profits have been made

HR Article

Coping With Change

Managing Your Emotions and Expectations
"He who rejects change is the architect of decay. The only human institution which rejects progress is the cemetery." - Harold Wilson, British politician

How much change have you experienced in the last year?Perhaps you've had to learn a complicated new computer system, you may have taken on new team members or a new role, or you may have gone through a merger or an acquisition.

Change is routine in today's workplace, and you probably can't - or shouldn't - try to stop it. You can, however, choose how you react to it.If you can embrace and cope with change, you'll be valued highly in your organization. You'll be seen as a flexible and adaptable team player, and this reputation can open up many opportunities. By contrast, if you consistently resist change, you'll be seen as "part of the problem," and you'll get left behind.

In this article, we'll look at why coping with change is so important, and we'll discuss a framework that you can use to cope with it more effectively.

Thought for the day

It is possible to store the mind with a million facts and still be entirely uneducated.

- Alec Bourne

Business Mews

Harnessing Natural Resources

The Supreme Court ruling that competitive bidding is not the only way to issue natural resources to private sector enterprises has come as a reprieve to the government. While it is no doubt a contentious issue and has to be dealt with very delicately, the author of this article would like to clarify the following aspects of the matter that may enable decision making without making any decisive comment on the matter.

1) Nobel laureate Joseph Stiglitz has in various research papers argued that in the past MNCs have tried to exploit emerging economies by lobbying with the respective governments of countries to have access to resources at nominal costs. In such cases the government concerned has had to forgo a sizeable chunk of non tax revenue.

2) MNCs have in the past not developed blocks of natural resources which they are supposed to do. A strong argument in favor of FDI in mining and allied activities in emerging economies is that it leads to diffusion of technical and managerial knowledge by means of TOT (transfer of technology).  Without this what is the use of inviting MNCs or any other private sector enterprises?

3) Private sector enterprises in countries like Botswana have openly defied environmental norms of forest cover, tribal land and wild life thereby imposing real costs on the host economy which are no doubt significant but have been swept under the carpet by bureaucrats and ministers of concerned governments on account of private gains from corporate lobbies.

4) If economic reforms are being pursued by the present government to foster more competition which in welfare economics leads to Pareto optimality then what stopped them from going in for competitive bidding? Has not the government sacrificed technical and economic efficiency by restricting competition?

5) The method of bidding was used by the government for issuing 3G spectrum and the bidding costs were supposedly so high that it prohibited telecom companies from rolling out 3G services in the market. Agreed that it is true. But what about sticking to the targets of debt GDP ratio and deficit restructuring?

6) The government in its explanation given to the media and Supreme Court for not bidding has cited discretion of the government in matters pertaining to the Union List. But absolute bidding is a characteristic feature of monarchies and not democracies.

7) A distant but related matter does crop up. The government has been fighting ultra leftists in the Red Corridor who have always maintained that the government wants to hand over India’s natural resources most of which is tribal property and forested area to private sector companies. The way resources have been donated to them; does not it add credibility to this claim of the ultra leftists?

The author’s views are only meant to encourage debate on the issue for debate is the bedrock of democracy and budding managers must know that markets may be run by the “invisible hand” but nations must be run by “visible hands” of governments.

Company Profile

A US $40 billion corporation, the Aditya Birla Group is in the League of Fortune 500. It is anchored by an extraordinary force of over 136,000 employees, belonging to 42 different nationalities. The Group has been ranked Number 4 in the Global 'Top Companies for Leaders' survey and ranked Number 1 in Asia Pacific for 2011. 'Top Companies For Leaders' is the most comprehensive study of organisational leadership in the world conducted by Aon Hewitt, Fortune Magazine and RBL (a strategic HR and Leadership Advisory firm).

Over 53 per cent of its revenues flow from its overseas operations. The Group operates in 36 countries – Australia, Austria, Bangladesh, Brazil, Canada, China, Egypt, France, Germany, Hungary, India, Indonesia, Italy, Ivory Coast, Japan, Korea, Laos, Luxembourg, Malaysia, Myanmar, Philippines, Poland, Russia, Singapore, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Tanzania, Thailand, Turkey, UAE, UK, USA and Vietnam.

Globally, the Aditya Birla Group is:

• A metals powerhouse, among the world’s most cost-efficient aluminium and copper producers. Hindalco-Novelis is the largest aluminium rolling company. It is one of the three biggest producers of primary aluminium in Asia, with the largest single location copper smelter. 
• No.1 in viscose staple fibre
• No.1 in carbon black
• The fourth-largest producer of insulators
• The fifth-largest producer of acrylic fibre
• Among the top 10 cement producers
• Among the best energy-efficient fertiliser plants
• The largest Indian MNC with manufacturing operations in the USA

Marketing Glossary

Going-rate pricing

A pricing strategy that sets price largely based on the prices of competitors

Growth stage

The stage at which a product's sales rise rapidly and profits reach a peak, before levelling off into maturity.

Harvest

A strategy based on the Boston Matrix. Here the company reduces the amount of investment in order to maximise the short-term cash flows and profits from the SBU. This may have the effect of turning Stars into Cash Cows.

Hold

A strategy based on the Boston Matrix. Here the company invests just enough to keep the Strategic Business Unit(SBU) in its present position

Impulse buying

Behaviour that involves no conscious planning but results from a powerful, persistent urge to buy something immediately

HR Article

Bell and Hart's Eight Causes of Conflict

Understanding the Causes of Workplace Tension

You've just arrived at your office, which you share with a colleague, and it looks as if it's going to be another frustrating day.

Your side of the office is neat as a pin and incredibly well organized. You always arrive at work on time and you take care not to talk loudly when you're on the phone, so that you don't disturb your office mate.

Your colleague, however, is the exact opposite. Empty cups and stacks of dusty files litter his side of the office. He often rushes into the office late, and he sometimes puts the radio on while he's working, which breaks your concentration. You love your work, but dread coming into the office every day, simply because you don't like sharing your space with your colleague. He drives you crazy, and you often argue.

If you thought about it, you'd quickly recognize that there's conflict between you because the two of you have completely different working styles. Once you'd realized this, you'd have a starting point for thinking about how you could work together more effectively.

All of us experience conflict like this at work. Conflict can be useful, since it can push conflicting parties to grow and communicate, and it can improve conflicting ideas. However, this can only happen if we understand why the conflict is there in the first place. Once we've identified the root of the problem, we can take the right steps to resolve it.

In this article, we'll look at eight common causes of conflict in the workplace, and we'll explore how you can use them to manage conflict more effectively.

Thought for the day

Education's purpose is to replace an empty mind with an open one.

- Malcolm Forbes

Case study

 Will Philips' attempt at repositioning its products work?

Executive Summary: Once a household name, Dutch consumer electronics major Philips has slipped over the years to become an 'also ran'. Its repeated attempts to rekindle its mojo have failed. Will its attempt at repositioning its products at the youth work? This case study looks at what went wrong and what the company needs to do in order to succeed. Add caption

In April 2010, when Philips Electronics India Ltd announced its plan to outsource its TV business to Videocon Industries, the decision came as no surprise. The five-year pact, under which Videocon is handling Philips's TV manufacturing, distribution and sales in India, is aimed at restoring the profitability of the TV business. Philips was once a dominant player in the segment, with a market share of around 15 per cent in the early 1990s, but business eroded as Korean and Indian brands grabbed market share. As volumes fell, the company struggled to run its TV factory in Pune efficiently. It took the third-party route to manufacture CRTs and imported LCD screens, but this didn't help. Then the company licensed the unit to Videocon.

The downfall of Philips's consumer business - especially TV - began in late 1990s

Through the arrangement, Philips will get royalty income based on turnover. Videocon's economies of scale in manufacturing and its strong distribution network will help the Philips brand reach more outlets and reduce the cost per unit.

The downfall of Philips's consumer business - especially TV - began in late 1990s. The reasons were beyond the control of the management. The entry of Korean chaebols such as Samsung and LG started eating into the market share of older players such as Onida, Videocon and Philips. Philips decided to stick to its usual strategy: relying on technology rather than strengthening distribution and marketing. It didn't want to compete with the Koreans on pricing, and thought the superior technology of its products, be it picture or sound quality, would stand out. "We took a conscious decision not to cut prices," says Kris Ramachandran, former CEO of Philips Electronics India.

LOW-VOLTAGE BRAND

THE PROBLEM
The company's brand image has declined over the years, and has very little recall value among youth

THE CAUSE

Despite its technological strengths, the company failed to market its products well, which hurt its brand perception

THE CHALLENGE

The company rolled out multiple strategies to overcome its problem, but they failed in a market dominated by fleet-footed Korean companies

Marketing Glossary

Forecasting

The process of estimating future demand by anticipating what buyers are likely to do under a given set of marketing conditions (e.g. economic confidence, disposal income, pricing levels)

Franchising

The selling of a licence by the owner (franchisor) to a third party (franchisee) permitting the sale of a product or service for a specified period. In business format franchising the agreement will involve a common brand and marketing format. Many service businesses are operated under franchise include well-known brands such as Burger King, KFC and KwikPrint

Full cost pricing

Full cost plus pricing seeks to set a price that takes into account all relevant costs of production

Gender segmentation

The segmentation of markets based on the sex of the customer. The cosmetic industry is a good example of widespread use of gender segmentation

Geographic segmentation

Geographic segmentation divides markets into different geographical Units 

HR Article

HR as a Scapegoat!

A scapegoat is defined as someone who is punished for the mistakes of others.I thought of writing this, as one of the cases being discussed in the forum was about Operations people blaming HR department for some failures.

Amusing isn’t it? but still we have all faced it at some point of time in our organizations. We as HR professionals are punished or blamed for what some other department or may be the owner is doing.

Sometimes, people even forget that HR people are also employees and do not take all the decisions on their own, they also have a reporting structure and a decision making authority is above them, still the blame for anything goes to “yours truly” the HR department.

Be it delay in opening bank accounts, salary transfer delays, low ratings during appraisals, bad hire, policy implementation, less or more training, low hikes, less salary…and what not. You name it and our fraternity has taken the blame.

The case which is being discussed talks about whether the HR department can be made accountable for the failure of the operations team, what do you think?

If it is a case of Bad hire, then obviously single handedly one cannot blame the HR department as operations people must or should have taken part in the recruitment process.

If it is the case of Non performance, then what were the senior officials doing? Sleeping when the performance was going below par? What were they up to? What about the internal checks, KRAs and performance reviews? Do you really think only HR department needs to control all these things. The answer is- no.

Thought for the day

Only the educated are free

- Epictetus

Bank News

Sebi outlines grievance redressal mechanism

Market regulator Sebi on Friday released a fresh set of information for new investors on redressal mechanism for complaints related to price manipulation, insider trading and other issues.

According to the fresh set of information, if an investor has grievances against a listed company or intermediary registered with Sebi, he/she should first approach the concerned company or intermediary against whom he has complaints.

In case the person is not satisfied with their response, he may approach Sebi.

The information is part of the revised instruction form book issued by Depository Participants to investors.

Depository is an organisation where the securities of a shareholder are held in the electronic form and Depository Participant is an investor's representative in the depository system who maintains securities account balances.

Besides, investors can also approach Sebi about compalints related to KYC Registration Agency (KRA)- that conduct Know Your Client (KYC) related functions on behalf of various market entities - and Alternative Investment Fund (AIF), which are funds incorporated in India for the purpose of pooling in of capital from Indian and foreign investors for investing as per a pre-decided policy.

Company Profile

BHARAT HEAVY ELECTRICALS LIMITED

An integrated power plant equipment manufacturer and one of the largest engineering and manufacturing companies in India in terms of turnover. We were established in 1964, ushering in the indigenous Heavy Electrical Equipment industry in India - a dream that has been more than realized with a well-recognized track record of performance. The company has been earning profits continuously since 1971-72 and paying dividends since 1976-77.

We are engaged in the design, engineering, manufacture, construction, testing, commissioning and servicing of a wide range of products and services for the core sectors of the economy, viz. Power, Transmission, Industry, Transportation (Railway), Renewable Energy, Oil & Gas and Defence. We have 15 manufacturing divisions, two repair units, four regional offices, eight service centres and 15 regional centres and currently operate at more than 150 project sites across India and abroad. We place strong emphasis on innovation and creative development of new technologies. Our research and development (R&D) efforts are aimed not only at improving the performance and efficiency of our existing products, but also at using state-of-the-art technologies and processes to develop new products. This enables us to have a strong customer orientation, to be sensitive to their needs and respond quickly to the changes in the market.

The high level of quality & reliability of our products is due to adherence to international standards by acquiring and adapting some of the best technologies from leading companies in the world including General Electric Company, Alstom SA, Siemens AG and Mitsubishi Heavy Industries Ltd., together with technologies developed in our own R&D centres.

Most of our manufacturing units and other entities have been accredited to Quality Management Systems (ISO 9001:2008), Environmental Management Systems (ISO 14001:2004) and Occupational Health & Safety Management Systems (OHSAS 18001:2007).

We have a share of 59% in India’s total installed generating capacity contributing 69% (approx.) to the total power generated from utility sets (excluding non-conventional capacity) as of March 31, 2012.

We have been exporting our power and industry segment products and services for over 40 years. BHEL’s global references are spread across 75 countries. The cumulative overseas installed capacity of BHEL manufactured power plants exceeds 9,000 MW across 21 countries including Malaysia, Oman, Iraq, the UAE, Bhutan, Egypt and New Zealand. Our physical exports range from turnkey projects to after sales services.

We work with a vision of becoming a global engineering enterprise providing solutions for a better tomorrow. 

Our greatest strength is our highly skilled and committed workforce of 49,390 employees. Every employee is given an equal opportunity to develop himself/herself and grow in his/her career. Continuous training and retraining, career planning, a positive work culture and participative style of management - all these have engendered development of a committed and motivated workforce setting new benchmarks in terms of productivity, quality and responsiveness

Mr. B. Prasada Rao, CMD, BHEL addressing shareholders at BHELs 48th AGM in New Delhi

BHEL maintains growth trajectory under difficult market conditions Records Highest-ever Turnover& Profit; Dividend enhanced to all-time high 320%; Highest ever Utility sets commissioned in a year;New Strategic Roadmap unveiled to steer future growth

 In fiscal 2011-12, Bharat Heavy Electricals Limited (BHEL) maintained the growth momentum achieved in the year before, with a top line growth of 20% and an all-time high Turnover of Rs.495100 Million. The company also recorded a quantum jump of 24% in its Profit After Tax (PAT) which was also the highest-ever at Rs.70400 Million. Significantly, with this BHEL has become eligible for ‘Maharatna’ status.

Addressing shareholders, Mr. Rao said that BHEL recorded a 26% surge in Net Worth, which went up to Rs.25373 Crore from Rs.20154 Crore in the year before. Earnings Per Share (EPS) on the post split number of shares basis went up by 24% to Rs.28.76. Consequently, a total dividend of Rs.15660 Million – the highest ever, has been declared for 2011-12, which is 320% of the paid-up capital (including an interim dividend of 136%).

HR Article

The Inverted-U Model
Balancing Pressure and Performance
(Also known as Yerkes-Dodson Law)

Have you ever worked on a project that had a tight-but-achievable deadline, and that needed your unique, expert knowledge for it to be completed successfully? Even though you found it challenging, you may have delivered some of your best work.

Or, think back to a project you worked on where there was little pressure to deliver. The deadline was flexible and the work wasn't challenging. You may have done an average job, at best.

Get the pressure right.

There's a subtle relationship between pressure and performance. When your people experience the right amount of pressure, they do their best work. However, if there's too much or too little pressure, then performance can suffer.

This relationship is explained by the Inverted-U Model, which we'll look at in this article. This helps you get the best from your people, at the same time that you keep them happy and engaged.

Marketing Glossary

Advertising  Advertising is any paid form of non-personal presentation and promotionof ideas, goods and services through mass media such as newspapers,magazines, television or radio by an identified sponsor.

Advertising budget  The total amount of money that a marketer allocates for advertisingover a period of time

After-sales service  The services received after the original goods or services have been paidfor. Often this service is provided as part of a warranty or guaranteescheme.

Agent  Part of the distribution channel. An agent is effectively a wholesalerwho represents buyers and sellers on a relatively permanent basis,performs only a few functions and does not take title to goods

HR Article

Strategic Learning Contracts - Maximizing Training & Learning Results

Tom Peters once spoke of a sausage company in the U.S. that determined pay scales, in part by the amount of new things that staff learned. So, when a sausage assembly line worker  learned something about accounting, that was five bucks an hour more on the paycheque. It's  great to be able to have the luxury to do things like that. However, the closest we in  government are going to get to such schemes is to eat the sausage made by the person who  got the extra five bucks. 

If you follow the trends (and fads) in the organization development field, you are probably  aware of one of the newest: the learning organization, popularized by Senge. Time will tell  whether this perspective "takes root" (it won't), but there is no question that learning is an  important process in any organization that wants to sustain success. So putting aside the  sometimes abstract philosophy of  "the learning organization", what can individual managers  do to encourage and support learning on the part of staff? 

One way is to put in place a simple, straightforward process to plan and support learning  experiences. Strategic learning contracts (and their companion learning experience contracts)  can be helpful in this respect. 

 

The Strategic Learning Contract: What Is It? 

 

We know that a good deal of learning (eg. from training) is wasted because the goals are ill-  defined, and the workplace supports to apply the learning are missing or absent. Stories  abound about people who attend computer training, only to return to work and not have the  hardware or software arrive until months after training. By that time, almost any benefits are  lost. Stories also abound about being "sent" to training...people who have been asked by their  managers to attend something, but not told why, or what they are expected to gain and  contribute from the experience. 

 

Learning contracts are designed to help develop shared expectations about the purpose,  process and results that are to come from any learning experiences. They are also used to  plan learning for the upcoming year for each staff member.

Business News

IS ALLOWING WALMART IN INDIA REALLY A GOOD IDEA?

Research on Wal-Martisation reveals that the price of any product from a retail outlet like Wal-Mart is invariably 10% more than what is available on the streets

"Are we knowledge-proof?" asked the late Prof Raj Krishna. As memorable as his other coinage, the Hindu rate of growth, this question is relevant, given our current growth strategy.

The SME sector is a vibrant part of the economy, accounting for 40% of manufacturing and generating jobson a scale second only to agriculture.

The figures are similarly significant for handicrafts and handlooms. According to the Tenth Plan, GDP from handicrafts contributed about 25% of GDP of unregistered manufacturing sector in the country, and about 7.5% of the total manufacturing sector. However, the number of craftspeople and SSI producers has been coming down, due to the sector's marginalisation and lack of investment.

Strengthening this supply chain in the manufacturing sector would make an enormous contribution to the revitalisation of the Indian economy, generate growth and jobs and insulate India from global crises.

Yet, when we see the kind of generous financial benefits given to the high end of the manufacturing sector - concessions for the 'big', for example, the big space and interest in the Delhi-Mumbai Industrial Corridor - one wonders if Raj Krishna's argument is not proving right even now.

Company Profile

Google India Pvt. Limited

Google’s mission is to organize the world’s information and make it universally accessible and useful.

Our company has packed a lot into a relatively young life. Since Google was founded in 1998, we’ve grown to serve hundreds of thousands of users and customers around the world. Founders Larry Page and Sergey Brin met at Stanford University in 1995. By 1996, they had built a search engine (initially called BackRub) that used links to determine the importance of individual webpages.

When Larry Met Sergey

• Founded
  1998
• Founders

  Larry Page and Sergey Brin
• Incorporation 
  September 4, 1998
• Initial public offering (NASDAQ) 
  August 19, 2004
• Headquarters 
  1600 Amphitheatre Parkway
  Mountain View
  CA 94043

Larry and Sergey named the search engine they built “Google,” a play on the word “googol,” the mathematical term for a 1 followed by 100 zeros. Google Inc. was born in 1998, when Sun co-founder Andy Bechtolsheim wrote a check for $100,000 to that entity—which until then didn’t exist.

The first “Google doodle” in 1998 was intended to let visitors to the homepage know that Google’s minders were offline at the Burning Man Festival in Nevada. There’s now a team of “doodlers” and we’ve posted more than 1,000 different doodles on homepages worldwide.

In 2000, Google introduced AdWords, a self-service program for creating online ad campaigns. Today our advertising solutions, which include display, mobile and video ads as well as the simple text ads we introduced more than a decade ago, help thousands of businesses grow and be successful.