Budding Managers - May 2014
If the numbers declared post the nationwide annual survey held by a prominent recruitment surveyor is anything to go by, than a wind of magnificent economical change is in order. Shaking and breaking the age-old corporate belief that has been weighing down the hiring system, this pleasant revelation is ready to set sail and change the face of how on-campus and fresh recruitments will be perceived and practiced. So, for those still wondering what’s the big reveal is, here we go - standing prim and proud at second position, E-commerce sector, is this year’s hottest and most promising corporate job avenue. It has secured the ‘most-preferred job sector for 2014’ title by dethroning last year’s hot favourites like the financing and consulting sector.
For those of whom E-commerce is a foreign term, here’s what it means - E-commerce is a commercial terminology used to describe any business that is hosted, aided or conducted over the Internet, the online medium. These online businesses are run using applications that solely rely on the Internet such as electronic mail, snail mail, instant messaging (IM), Electronic Data Interchange (EDI), online shopping, File Transfer Protocol (FTP), web portals, services and Universal Description, Discovery and Integration (UDDI). The business format in terms of E-commerce could be either – business to business (B2B), business to customer (B2C) or transmission of goods, services, data and funds.
Opening up a world of opportunities for all the fresh-out-of high-end B-school students and young Internet geeks, E-commerce has overthrown popular job avenues like management consultancy, Information technology, software and the likes to score the second slot.
Though the uncertainty in the economic climate and the dwindling job market hasn’t quiet settled yet, it sure hasn’t seemed to deter the young MBA graduates from risking to start their career with a new avenue like E-commerce. Experts opine that the reason for this trend is the fact that E-commerce jobs allow these newbies to practice and participate in a start-up environment. Wanting to eventually start their own business in future being a common trait among today’s premium b-school toppers, the opportunity to learn and partake in a new-set up is what’s luring them to E-commerce. So, for those looking to start their own enterprise and don the entrepreneurial hat, Ecommerce is said be the perfect launch-pad.
So, if not through a solid campus recruiter facility, where can a new management graduate start looking to earn a solid entry into this booming E-commerce industry? Here’s where - an already established dotcom firm like Ebay and Amazon would be a good place to start. Recent E-commerce start ups in the country like Snapdeal, Jaboong, Myntra and the likes have also been handing out promising job opportunities. According to the Neilson survey, there has been a staggering 50 per cent increase in the number of such start-up companies hiring this season.
What?Let’s take a look at the qualities a management student would require to possess in order to make it big in this sector. According to bigwig recruiters like Amazon and Ebay, the primary trait an E-commerce firm or an employer looks for in the candidate is well-rounded technical knowledge along with solid security skills. Given the volume of commercial online interaction involved in such businesses, security is a big aspect. Along with that companies also look for students with a keen eye for online details and a knack for multi-channel activities in terms of online marketing and interaction.
BUDDING MANAGERSMAY 2014 ISSUE
Having earned the corporate edge to be the best among the rest, it’s time for an aspirant to explore the job market’s top career options to help initiate the job hunt! With the interview-calls pouring in and the job market gearing for its new entrants here are the top sectors that an amateur should be looking at:
The most traditional option from the ever-swelling list of job avenues for an MBA graduate - the banking sector has been a hot favourite ever since the conception of the degree. Raising capital, initiating acquisitions and mergers, strategic planning and overlooking financial transactions are the roles that fall under the job description of an investment banker. Those good with numbers and a sound specialisation in finance can apply for this sector. With an impressive 12 percent increase in banking jobs estimated over the next ten years, banking is sure to become a prime priority for a fresher looking for a career with handsome salary and promising bonuses.
While recruiting for this particular sector of management, the hiring bigwigs look for that ‘spunk factor’ in their candidates. A marketing professional is the voice and face of the business. Responsible to boost and maximize the company’s customer base, sales outcomes, profitability and market reach - a marketing professional weighs in the market trend, identifies opportunities and designs strategies and campaigns. With top salaries and incentives going to these marketing and sales professionals a solid 12 per cent growth in employment opportunities is projected in this sector for the year 2014.
High-end Management ConsultationSteering a corporation in the right direction in order to maintain relevance and competence in the global market is what a management consultant does best. Specifically trained according to the functioning and format of a firm these folks aid in controlling cost, increasing productivity, enhancing worker efficiency and maximising income. A particular genre of specialisation in MBA is not required, but work experience is definitely an added advantage to score a job in this sector. As acting advisors to the Chief Financial Officers (CFO), Chief Operations Officer (COO) and similar top-rank holders in a firm these analysts earn fairly well. 24 percent employment growth is expected in this sector. An option to freelance as a management consultant is a major bonus as well.
Computing and Information TechnologyAny corporate role related to computers - software and hardware, internet and intranet, installation and upgradation, network development and management would fall under this class of job avenue for newcomers.
"21 percent increase in fresh MBA graduates renouncing their offered jobs in multinational companies to start their own firms."
EntrepreneurshipIndependence and thrill are terms associated with this selection. Being the owner of your own enterprise is a choice that many MBA freshers are making today. Putting your financial resources at stake and taking personal risk, this is the only avenue that allows an individual to thoroughly apply their theoretical knowledge acquired at the b-school into a practical context. Though many remain apprehensive about this risky option, recent surveys have noted 21 percent increase in fresh MBA graduates renouncing the job offered by multinational companies to start their own firms.
With the sheen of management degree beaming brighter with every passing year, an MBA graduate is sure to find their right holding without too much of a wrestle.
MAY 2014 ISSUE
When you’re a manager, you work for your company. When you’re a leader, your company works for you” are the wise words of Mr.Fabulous - Stan Slap, who apart from being the President of his own international consulting venture called, ‘Slap,’ and the mastermind behind many colossal expansions of multinational companies across the globe is also a lifestyle coach for top-notch CEO’s of the biz world, and for many a brilliant corporate minds of our generation.
This recent and rather intelligent rant by Mr. Slap has resurrected the age-old scuffle between leadership and management. Through ages experts have opined that, though there is an obvious distinction between a leader and a manager, their roles should not be in conflict with each other. There is a subtle symbiotic relationship between the two and thus, it is believed that while leadership requires strategy, management demands tactics. In order to understand this concept further and better, let’s take this battle between the two to a fairground and look at both the roles in parallel.
What makes a leader?Going by the books, the literal meaning of leadership is - when an individual possesses the ability to leave a mark, make a drastic impression and has the inspiring quality to enable and lead the organisation to success of which he/she is a member. Being an unparalleled force to be reckoned with, a leader often stands out instead of just blending-in, a leader is often known to be the follower of the heart. With personality and physical aspect being a strong pointer of consideration – dressing distinctively and owning a strong sense of signature style and personal body language is what sets a leader apart from the rest.
What makes a manager?
The fervour to direct and control any given set of individuals irrespective of their behaviour, talent, skill sets and personal trait towards a common goal is the definition of a good manager. With their actions and motives targeted towards the successful completion of the task at hand, an outstanding manager is often deemed as the leader of his/her pack. While a leader can afford to be free-spirit and whimsical, a manager is required to be control and in command of the situation at all times. There is a constant need to always bring their A-game to the table and thus a manager always plays by the rule book. While a leader is expected to lead and inspire people towards a goal, a manager has to make sure the goal is achieved through persistence and strong will.
The co-relation
Nothing describes the co-relation between these two contenders better than the way Bob Sutton, Stanford professor, an avid blogger for Harvard Business Review and co-author of the book ‘Scaling Up Excellence’ puts it, saying “I am not rejecting the distinction between leadership and management, but I am saying that the best leaders do something that might properly be called a mix of leadership and management. At a minimum, they lead in a way that constantly takes into account the importance of management.”
By this, one thing is established for sure, the only sine qua non to this endless squabble is to acknowledge the fact that - to run the race and win it too – a manager is required to step up and be a leader at all times.
MAY 2014 ISSUE
The raging thermometer cannot be an excuse to come across sloppy and sweaty at your workplace. The reason being, for a corporate newbie in-spite of the spiked heat, the big bosses and top-notch clients will still be making that snap decision about you based on your corporate appearance. So, buck up! Although it can be baffling to mix n’match your summer formals, a few adjustments here and there and a quick trip to the mall is all it will take to get that corporate panache going.
For the masculine lotThe golden rule of summer corporate style that every guy should swear by is – nothing, and we mean absolutely nothing about the way you dress right now should be complicated. The fabric needs be lighter, the cuts looser and statement elements minimal. For the masculine lot at the workplace, the best bet this summer is to keep it clean, light and understated. This sweltering season is not the time to experiment with fabrics, colors, patterns or textures. Remember being well groomed, showered and stain-free are the baby steps every newbie needs to take to crave that niche corporate image. Always make sure that the formals you will be donning are wrinkle-free and stain-free. Your nails sharply cut, hair regularly trimmed above the collar and your shoes and soaks spotlessly polished and stench-free respectively at all times. Invest in a summer-specific lotion, cologne and perfume while always opting for a clean close shave. Avoid layers at all times. Period.
Cotton is the magic word this summer. Keep it easybreezy with this fabric for every piece of clothing in your summer wardrobe. Invest in good pairs of crisp cotton shirts, trousers, undershirts and socks. Stick to light colours like white, tan, beige, grey and if you are in the mood to experiment maybe even a lighter shade of turquoise or pale mauve every now and then will do. Steer clear of darker hues such as black, burgundy and the likes, as these shades only absorb more heat than it lets out. For those running on a tight budget, cashing on one well-tailored light-weight and light-coloured summer blazer should suffice for all those emergency boardroom dashes and formal gettogether. And for the one with slightly fatter wallets – opt for light-weight silk, cashmere and linen-cotton. Remember at the end, when it comes to impeccable formal clothing it’s the tailoring, cut and fit that matters more than the fine fabric.
For the feminine lot
Though in comparison, the summer fashion options for the fairer gender are more, the rule of sticking to the basic cotton fabric remains the same. Neat and appropriate comfort clothing is the key. Given the smouldering heat, the daring divas planning to go sleeveless and dressy must remember to keep it classy and strictly business at all times. While opting for sleeveless, depending upon how conservative your workplace dress code is, be cautious and wear your sleeveless tops with ruffles, buttons and collars to add volume. Select dresses and frocks that aren’t too flashy in terms of colours, patterns and detailing.
"sun-caused dark circles at bay and high SPF sunscreen lotion should take care of your summer skin from getting flaky and dry."
Basic must-havesJust because its balmy and beachy outside doesn’t mean it should reflect on your work wardrobe. Steer clear from dirty flip-flops, bright peep-toes and towering stilettos; instead invest in a good pair of summer wedges and ballerinas in neutral colours. These footwear are breathable, affordable and can be mix and matched with any outfit without having to wear a stocking or slipping over your sweaty paws. Also, invest in block coloured pants and skirts in breathable fabric and team it with crisp cotton shirts, silk tops and you’ll be good and glamorous to go. A branded pair of shades to keep those sun-caused dark circles at bay and high SPF sunscreen lotion should take care of your summer skin from getting flaky and dry. Remember to keep your make-up light by sticking to skin-toned nude hues. Pancaking your face with layers of make- up will not only block your pores and be extremely harsh on your skin but will also make it impossible to maintain a flawless appearance all day long.
So, get shopping and doll up this summer. Though the right outfit alone might not guarantee that big corporate catch, it will sure set the right tone to getyou there. Team these fashion-forward summer statements with your favourites from that any-weather, any-time closet collection and you will be fashionably covered all summer long.
BUDDING MANAGERSMAY 2014 ISSUE
The leisure of waking up to your own alarm, relishing every bite of that crisp breakfast bacon while browsing through the morning headlines. Now, follow this up with lazily strutting around, while soaking in the picturesque gorgeousness of your hilltop mansion as you head to lounge on a hammock overlooking the ocean - sounds like a chapter from ‘Holiday in paradise’? No! Apparently, it’s just another day at the office for Sir Richard Branson, Founder of the Multinational conglomerate, Virgin Groups.
So, now that you’ve had your daily dose of day dream, here’s some food for thought – what’s made such an enviable lifestyle possible for this world famous business mogul? Having settled for a salaried job or that gutsy leap he took to start his own enterprise?
Faced with the present economic puzzle where, though the job market seems to be swelling with openings, fresh-out-of-college management students are struggling, tossed between the idea whether to settle for that comfortable 9-5 white collared job or to risk it all and start their an own set-up. Every management fresher yearns for a dream head start to his/her corporate career. Having invested a solid chunk of moolah on an expensive B-school, heading out and rebelling is the last thing any corporate visionary wants to do. But, then again on the flipside, settling for nothing but the best mode of money-spinner and an enterprising corporate career is a criterion they don’t want to compromise on.
Given the dilemma, the question of the hour is - to lead or be led? But before we contemplate it any further, it is important for every management student and young business aspirant to understand that neither of this alternative is any lesser than the other. Whether it is a 9-5 occupation at a corporation or a self-owned enterprise, both would demand a solid amount of investment in terms of time, money and talent to excel. And, both being an employee a.k.a a team player will be as taxing as occupation as it would be to get your own business up and running. So, before stepping into the realm of self-realization and personal scrutiny , lets run a primary analysis to gauge the pros and cons of ‘being employed’ and ‘being the employer’? Let’s tabulate.
Being employed:The fancy prospect of freedom, flexibility and liberty to earn more and limitlessly is the foremost promise that entices a young and restless management fresher. Though finding a salaried employee whose bank balance runs into millions would be difficult, it sure promises that ethereal peace of mind, lifestyle stability, a steady income and the promise of hassle-free retirement life. Being employed has perks such as paid holidays, carefree weekends, luxury of family time and personal space, all this without bearing the brunt of your own profit or loss or even the tension of where your next pay check is going to come from. For those who like to keep it safe and simple, finding a fulfilling 9-5 job would be the best bet. Scoring a resourceful job with an international firm also promises to put you on a well-established career map. It buys you that prominent place in the corporate society without having to slog for it.
Being the employer:
But, luring back with a strong counter attack - being the king in your own jungle is what it’s like to be your own boss. And whether it is for a better package, a steady income, a career promotion or that giant corporate growth, the only co-worker you have to compete with will be you. Also, the prospect of multiplying your income in leaps and bounds is a definite game changer for many and hence makes it the more stimulating option of the two. When counting the blessings brought upon by being your own boss - flexibility of timing, space, deadlines, work ethics and approach patterns would emerge as the forerunners. One gets the liberty to execute their own business concepts and plans without any compromises. But such perks brings along concerns like, not being able to take that long leisure holiday or even the much-needed emergency sick leave. And while, a high-flying employee of a multinational corporation can leave meagre tasks like annual taxes to their legal folks and clearance of their messy desks to the office boys, a self employer will have to get down and dirty to clear their own clutter and manage their own papers. But, on the brighter side, for all those relentless dreamers out there, such minuscule sacrifices will vanish in a jiff.
Now, that we have laid out the pros and cons of both the players involved. It’s time to reflect, reconsider and forge ahead. There are certain personal and professional parameters that can help a management fresher gauge their calling. Getting straight down to business, here are the few qualities that would help you decide if you’d make a good employee or an employer - if you are the kind who would rather lead than be led, are a cranky or irritable team player, the kind who would want more room for your ideas to flourish than settle for someone else’s. If you are the sort who can draw your own schedule and religiously stick to it and have that strong sense of resources, talent and time management then you are cut out to break out on your own. But, at the very prelude, the extremely essential aspect that every aspiring entrepreneur needs to understand is the fact that one shouldn’t choose to be an entrepreneur just for the sake of minting money. Unlike a salaried employee, whose commitment extends only till abiding by the rules laid out by their organisation and their respective job profiles, an enterprising entrepreneur on the other hand has to be equipped to face challenges head-on and alone. Being prepared to fall and fail over and over again comes with the entrepreneurial territory. And ultimately, being driven by perseverance and using a failure as an opportunity to invent solution is what will make for a true businessman.
Now, that you have found your calling and have chosen to answer it too, here’s what you should be doing next – plan, prepare and prosper. Create a realistic business plan based on your qualities and skill set. Choosing to fly solo will certainly be the biggest and most crucial decision of your life, so research thoroughly and study your local demography. Start by running extensive research on geographic demands using means like surveys, polls and one-onone interaction with your target audience. The first and foremost step in this journey is a strong sense of self- realisation – that is to believe in the brand called ‘you’. Once you have pulled yourself together, fixating on the right business format should follow suit. The main approach to starting your own enterprise is to evaluate your ideas and invest in them. Once you have zeroed in on your type and strategy of business, start planning your execution pattern. As mentioned earlier, understanding and analysing the needs and nature of the market you plan to launch your product in will be the crucial. Build a strong support system and lay out your finances so that at every step along the way you would be clear as to where you stand financially. Owning up to your circumstances and the determination to draw your own destiny will give you the ultimate nudge to take the plunge. So, move ahead and turn that idea into a business. And while you’re at it, remember, it is easy to start a business on any given day, but making it last is what makes a real-time businessman.
Scoring that perfect head start?
As if zeroing in on a suitable sector of business wasn’t tough enough, you now have to rack your brain to make that best first impression. Starting a business can be easy but making it last is where the real deal lies. Scoring a perfect head start can determine your stance for you initial years in the market. According to business bigwigs there are four different routes a budding entrepreneur can choose to tread on – buying out an existing enterprise, starting an entirely new set-up, becoming a consultant and buying an already established franchise.
So, here’s to all the aspiring entrepreneurs out there - make peace with the fact that flying solo will be a frightening first step. But be rest assured, the soaring flight that would follow will be an adrenaline rush like no other. So, as you choose to take the plunge to be wise in gathering wealth and wisdom, remember - it is any day better to master your own destiny and set your own alarm clock than be clockworked by someone else. For at the end of the day it is not about the zeros in your bank balance but the weight of the legacy you leave behind!
Good Luck and Godspeed!BUDDING MANAGERS
MAY 2014 ISSUE
But Mr Sethi soon realised that it was not his cup of tea. In 2007, he set up Bright Hospitality with the dream of making it big in the hospitality industry.Since then, his range of eateries - The Pind Balluchi, The California Boulevard, AM-PM Cafe and The Eternity - in New Delhi's Rajouri Garden have won the hearts of connoisseurs and commoners alike.
An MBA graduate in international business from the Macquarie University, Australia, Mr Sethi is an avid traveller, wild life enthusiast and seasoned mountaineer. He also loves to explore new countries, cultures and cuisines. "I am a god-loving, wifefearing man," Mr Sethi introduces himself to Sharmila Chand and enlivens the informal interview with his typical witty one-liners.
How do you define yourself?
A gypsy by heart, caught between duty and desire
What is your philosophy of life?
Give unconditionally: Love, respect and service.
What is your passion in life?
To redefine the standards of hospitality in India
What is your management mantra?
God lies in the details. A great strategy is useless without flawless execution.
A business leader you admire the most…
Steve Jobs; he redefined four industries in one lifetime!
Your strengths…
Team player, eternal optimist
Your weaknesses…
Sensitive, dreamer
What upsets you easily?
When a guest is unhappy with any aspect of our services
Your kind of music…
Any piece that soothes the soul; I'm language agnostic.
Your kind of a movie…
Inspiring heroic stories of Bat-man, James Bond, Indiana Jones, Neo, Gandhi and Lincoln
Your favourite holiday destination…
Maasai Mara in Africa and the Himalayas in India; nature fascinates me.
How do you de-stress?
Playing with my kids and listening to music
Golf or Bridge or…
Cricket, and in fact, Lagaan based on the sport is a lesson in management.
Formal suit or casual attire…
Smart formals; you don't get a second chance to make the first impression.
You are a 'tough', serious boss or…
Once the vision is agreed upon, I'm just another team player. Hugo Boss is the only boss that I like.
What do you enjoy the most in life, generally?
At work, resolving problems innovatively and at play, spending time with family and friends
Your fitness regime…
Hit the gym every morning with my fitness-conscious wife
Your favourite cuisine…
Anything that my wife makes; I love some of the delicacies that my chefs create out of the blue.
Any favourite place you like to go for dining…
The Taj
Your favourite gadget…
My MacBook; I would be lost without it.
Your mantra for success…
My father's words: "Practise what you preach. Roll up your sleeves, and get your hands dirty, and your team will always respect you."
BUDDING MANAGERS
MAY 2014 ISSUE
When the Chinese invented a thing called Paper, way back in 105 AD, this was a material used to wrap images and bronze artifacts till Europe got its first paper mill in 1275 and the printing press was invented in 1440. Now, for the first time, the recordings of information no longer belonged to just an elite few. The first news paper ad was published in 1650 seeking information about 12 stolen horses. In 1704, the Boston news letter asked the readers to place advertisements for Real estate, ships or goods for sale and thus began the journey of mass advertising.
Fast forward all this to just before the beginning of the 20th century and then…BOOM. We have the Europeans and Americans ready to mass produce goods, both wanted and unwanted and ready to start pummeling people with marketing messages for the next 100 years.
Advertisements, to reach their current form have gone through a huge evolution process over the last century.
Ownership to stewardship: From advising the customer about what has to be done to guiding the customer on the benefits of using a product. A good example for this are the series of Lifebuoy ad’s, starting from a toilet cake for sportsmen to kill germs to a lemon scented family soap for the whole family.
Consumer Consciousness: The customers have also become very conscious about what they buy. So, before getting associated with a brand just because someone else is using it, the customer now searches for options, looks for the ad, views the POP material, cares about packaging and colors and then decides whether it fits his personality before even actually trying out a product.
Beyond Advertising: Branding extends beyond advertising and fulfills the customers’ needs beyond geographical barriers. Eg: A Mc Donald uses the same type of branding and store lay out although the products may vary from country to country.
Wants and Needs: Wants are replacing needs. Consumers are becoming more demanding about what they want. No one just uses a mobile for just calling nowadays, though it is essentially meant for that very purpose. It is now a style statement. This shift can be attributed to easy availability of funds from banks.
Lean Backward to lean forward: Brands have started relying more on a Lean forward strategy for advertising rather than a Lean backward, as is used in conventional print or TV ads. The lean forward strategy as used online or in Social media marketing makes the consumer more involved and interactive. The time spent on looking at the ad has also increased substantially in the process. A recent ad for Moto G placed online has made the customer much more involved than a full page print ad for the same product.
SOCIAL MEDIA MARKETING:
Technology has changed the dynamics of the business world; and in the advertising industry, specifically, necessitated a move from “old” marketing techniques to “new” marketing techniques. The number one fastest growing advertising channel is the Internet.
With the emerging technologies such as mobile and the impact of social media platforms, it is far more effective for advertisers to utilize the web and market to consumers in the format that is easiest for them. People are no longer watching television when it airs; they are no longer listening to traditional radio; and they are no longer surfing the web only at home. The audience is no longer an audience; consumers control the conversation and they choose which advertisers may speak to them.
Advertisers must adapt and modify their con-tent to the way that the audience is consuming. The young people in “Generation Y,” “echo boomers” and “millennials” are increasingly immune to the clichés of prime-time television and radio, and they mentally tune out these nuisances. Online, however, they may accept advertising if it is unobtrusive, relevant, and fun. Insofar as they took some action to invite the advertisement, they may even find it useful. As Glenn Beck, conservative commentator and media entrepreneur recently cautioned both content providers and advertisers at the 2011 Advertising Age Media Evolved Conference in New York: “I don’t know anybody under 30 who is watching television. My kids don’t watch television. . . . The problem is that we are at a split right now. The generation that is slightly over 50—they’re not using iPad. They don’t get it. They don’t want it. The younger generation, that’s [television] not their comfort zone; it’s a stupid box that you’re tied to.”
Now, as an advertiser it become increasingly important to address the right target group. While many may argue that internet advertising and Google analytics helps you place your ad in the exact place you would expect it to be and at the exact time, what do you do to the 50+ group?
This means that while internet advertising, mobile advertising and social media is picking up, the traditional forms of advertising like the news paper, magazine, radio and television cannot be ignored. Yes, the split in the marketing budget of the companies is definitely getting reduced in the latter.
The advent of social media in combination with the interactive capabilities of smart phones has rewritten the book on advertising. With the enormous increase in the popularity of social media platforms such as YouTube, Face book, MySpace, blogs, and Twitter, millions of potential consumers form a ready audience for advertisers.
MAY 2014 ISSUE
Franchise Manager plays a key role in a franchising company or a franchised business. Franchise Managers organize and plan the franchising department of an organization. The manager ensures that franchisees receive the organization’s message regarding business strategy, promotions and products. A franchise manager offers support to franchisees, which ensures the overall success of the organization. Franchise manager is also responsible for all new renewals and license enforcement. He is responsible for franchise contracts with franchise stores to ensure participation; Maintaining the company guidelines and cooperation in company values and agendas.
The Franchise Manager is the face of the organization and this manager should be empathic to the investor who is seeking an opportunity to become an entrepreneur by investing his hard earned money in a product or service franchise. Therefore the responsibility of the franchise manager to the highest order is to help the entrepreneur to choose the right fran-chised business. He should not sell a franchise for the sake of targets. The franchise manager should also be responsible to the franchisor by selecting the right investor for the brand. Valuating the investor before making him an entrepreneur seriously lies with the franchise manager. The skills of the Franchise Managers should be of a high calibre where he needs to know a bit of psychology to assess the investor and his seriousness in the business.
In my long experience, I come across very often, investors with unblocked funds in hand wanting to invest the same in some business for their spouse who is sitting idle, or a relative who has not found a job yet and so on. Most of the time, this investor would be a learned person who is clear with his intentions to help either his spouse, brother or a relative and make them successful. But the fact is that if the franchise manager gets carried away by the looks and the knowledge of the investor without figuring out who is going to run the business, then it’s a bad choice of a franchisee.
If you see many franchising businesses fail, it is because the investor acts only as an investor and does not run the business. This not only affects the investor but it affects the brand too. I strongly feel the selection of the franchisee should have solid process to scrutinize the investor which will result in both the franchisor and the franchisee’s benefit in the long run. The franchise manager is like a middle man, in the alliance seeking activity for a man and woman to be wedded. All facts need to be laid on the table before marrying off the franchisor and the franchisee. The franchise manager needs to be honest to him self and the organization that he works for and needs to rise above all relations to be a thorough professional to help both the franchisor and the franchisee succeed in their business objectives.
The franchise manager needs to lay all the facts without any hidden agenda to the franchisee and should not promise the moon. Explain both the pros and the cons and help the investor to take the right decision.
Talking about the skill of good franchisee manager, he should first put himself in the investor’s shoes and think if he was taking a franchised business what will he expect from the franchisor and if he is convincedof the offer will he invest and buy the franchise. If he puts himself in that position and sells the opportunity, he will make the right choices of selecting the right franchisee by assessing the attitude and the financial capability to invest in the business, before signing up.
If the manager believes in his organizational capability to deliver what is promised when he is signing the agreement, then he will be confident to sell the concept to the franchisee with high confidence and motivation. Therefore empathy, communication skills, business acumen, coordinating skills, projects handling, event organizing capacity, operational skills, branding, training, marketing and PR skills are important for a good and efficient franchise manager. Beyond that he needs to have the grace to build a long term relationship with the franchisee.
A franchise manager is one who is a bridge between the franchisor and the franchisee. The manager understands both parties well and their intentions and should work towards the success of both parties. It should always be a win-win situation. The manager should look at the franchisee as a customer; therefore any decision taken should be along the lines of benefit to the customer and profit to the organization that he works for. If this concept is clear in the minds of the manager the relationship will be rock solid.
A franchise manager is one who will be communicating the organizational strategy to the franchisee and hand-holding him to success. He should understand the pain and the emotions of the investor to negotiate with the organization to ensure that the franchisee is successful by providing adequate help in the start-up stage of the business. The success of the franchisor is rated in the success of the franchisee. Therefore helping the franchisee being successful is the key to the success of a franchisor and the franchise manager.
The franchise manager needs to look at the profit and loss account of the franchisee and suggests various marketing activities along with the marketing team. He has the moral responsibility to help the franchisee since he is one who inducted the franchisee into the brand’s fold; he is also responsible for all the training needs of the franchisee. He needs to understand what kind of training requirements for the staff and also for the franchisee. Since he would know while signing the agreement the background of these franchisees, all of them will not have all the required skills like marketing, finance, human resource, projects, etc., understanding the need the franchise manager should organise for the necessary training to help the franchisee become a better entrepreneur and brand custodian.
In a nut shell, the franchise manager is one who ensures a smooth transaction with the franchisor and the franchisee ensuring all payments are collected and a good relationship is maintained. The franchise manager should be loyal to the organisation that he works for and is a key person to build the brand along with the marketing or the brand manager based on the feedback received from the consumer and the franchisee. The franchisee manager is an important person in the franchising business, both for the franchisor and the franchisee. In the current scenario, there are not many who are looking at the benefit of the both the parties they look at their own benefit; finally the brand and the franchisees suffer.
BUDDING MANAGERS
MAY 2014 ISSUE
Marketers put into brands crores of money just to make the brand take off and be visible to its target audience. They calculate ROI of the brand over a period of time, in a variety of markets and estimate when the brand will start delivering real profits. But the fact marketers need to wake up to is that ROI is not just what is in the coffers today. It is what mind-space the brand owns, not the one achieved through repeated bombardment of the customer and his surroundings with advertisements but by walking with them after they make their purchase. Brands are best positioned in the buyer’s mind when they engage with the customer soon after a purchase has been made.
The immediate moments after the sale is made is the most crucial time for a brand. The buyer is most emotional then, the feeling ranging from elation to slightly unhappy to doubtful to sorry. Connecting with him through promotional material, a text message, an e-mail with or without a reimbursable coupon for his next purchase, sharing an excitinginformation about their buyin-store or outside of the store along with a customer helpline number or e-mail address will add a lot of value to the brand. It is proof that the brand cares about him and what he buys. It is reassuring. Whatever your marketing campaigns scream, people come back to brands for the reassurance they provide, not taking into account whether you engaged with the customer post-purchase or not. So imagine how far a little concern from the marketer can go in uplifting the brand’s image in the mind of the customer.
Most marketers and loyalty program managers are missing out on a unique opportunity to connect with their customer in a way all their advertising and promotional tactics cannot. It may be referred to as the missed opportunity of the sale receipt.
What is surprising is that retail outlets and online sellers who are best placed to get to their customer communication ecosystem fastest rarely do so. Online marketers have come closer to their customers much better than retail outlets have. Having grown so much technologically, to send a personalised email or text to the buyer’s phone is not complicated or tricky anymore. Every purchase receipt generated should be capable of triggering a communication (email or text) addressed to the buyer instantaneously, even before the shopper steps outside of the store’s doors.
Every marketer knows that more than acquiring newer clients, retaining his clients is the key to the business but rarely invest in the knowledge. The farthest they go is creation of loyalty programs and letting the customer gather loyalty points which can be redeemed later on. At any given moment, the customer is thus forced to be ‘loyalty cardholder’ of not just one business but every brand they ever buy. Lugging around these loyalty cards is something customers are growingly detesting and are largely unwilling to do as well. A loyalty card is no longer a pleasant surprise. Gifting a hundred points to start with on the loyalty card is not really a bonus anymore.
How would you feel if your pharmacy sent you a reminder that it is time to replenish your medicine chest, exactly in time, based on the data of what you bought last month? What if your optician can invite you back for a free service once a month or suggest newer styles that exactly suit your face and lifestyle? What if like Nike does, your fashion retailer gives you an app that will help you stay in touch with styles, dress sizes and their availability based on your earlier preference or even help you manage your weight so that you can fit into more flattering clothes? (Nike has put together new products, services and experiences that directly connect the brand to a customer’s self-image. The services include running apps, style guides and health monitors).
Companies should allocate at least a lean resource to manage and honour the customer who has just shopped with them. This resource needs to be integral to every marketing company if they wish to reengage with the customer in the future. By ignoring customers after they make a purchase, loyalty marketers are creating a vacuum that others are beginning to fill. It is like allowing your competitor to advertise inside your premises.
We are in a time when apps are coming into their own. Apps that track if you’ve taken your meds or your workout routine or your dressing routine make interesting and personalised connections with the customer.
Another largely accessed but unexploited area for brands is the social networking sphere. The idea of most brands is to own a page which they can use to communicate brand messages, new products and product features to their customers. They use social media as a marketing tool, not a post-purchase engagement tool. Brands on social media stand another exclusive chance to connect with their consumers post-purchase which most of them blow up because they are yet to grow up to the idea of post-purchase engagement. Most brand pages on social media are also slow to react to customer comments on the page. They consider it ‘job done’ by making a post and disappearing for a good length of time. The key to establishing a healthy rapport with your page’s guests is not by making constant ‘posts’ but by staying in the loop of conversation, by exploiting ideas that come through the conversations and being an active part of the ‘threads’.
Post-purchase data is a powerhouse of information. They provide valuable information on what kind of customer liked what ‘product’ of yours. They can provide meaningful insight into customer preferences and trends – data which can be successfully used to manage stock or explore options that play along the same lines of your customers’ preference. They also provide scope for figuring out what services/products are moving and which ones need immediate trashing.
Marketers need to start thinking about how to make their clients value their purchase receipts which are usually trashed on the way home or at the destination. By heightening the value a customer attaches to the purchase receipt, brands stand a chance to reconnect with the customer. So here’s thought for the day. How can the purchase receipt itself be made to be treated like a product? How can one sale receipt trigger another? How can one best exploit the value of a bit of paper that is proof of purchase? These are the pressing questions marketers need to find creative approaches to if they wish to ‘retain’their customers.
BUDDING MANAGERS
MAY 2014 ISSUE
The acquisition binge, especially in the social networking sphere is indicative of the growing strength and interference of social networks in everyday life. They are also indicators of the longevity deemed to social networking as a way of not just bringing people together but tracking important markers of brands in markets, social opinion, brand conversations, trends and consumer psyche. The acquisitions/partnerships are recognition that investments in social data are healthier than ever. Shortly put, social data is the new oil.
We go on to explore a few of these tech marriages in this column.
WHEN TWITTER WENT SHOPPING
The GNIP addition
“Welcome to the flock, Gnip”, was how Jana Messerschmidt, VP, Global Business Development & Platform at Twitter greeted their latest acquisition and long standing data research partner in his blog post.
Twitter acquired long-time social data analytics firm Gnip, one of the four companies with access to firehose. Gnip’s acquisition follows Apple’s purchase of Topsy another company with access to the firehose, in December 2013. Twitter’s acquisition of Gnip is considered a defensive move designed to keep at least one of the firehose companies in-house. The acquisition leaves just two independent providers of firehose in the open - Datasift and NTT Data.
Gnip founded in 2008 has a four year history with Twitter and services other social networking mediums as well. Its customer base include Facebook, Tumblr, Google+ among others totalling about 16. Gnip has played a crucial role in collecting and digesting public data from tweets helping researchers, marketers, brands, finance, politics and public relations with deep analysis of customer psyche and preferences and, a chatter of what is going to rock the world next. The social data analytics firm is one of the world’s largest having provided 2.3 trillion tweets to customers in 42 countries so far. Twitter claims that no business relationships Gnip has with others will change with this acquisition. It shall be business as usual for Gnip with its other clients.
“We want to make our data even more accessible, and the best way to do that is to work directly with our customers to get a better understanding of their needs. To that end, we have agreed to acquire Gnip, a leading provider of social data and a long-standing Twitter data partner,” Messerschmidt wrote in the blog post.
What Gnip stands to gain is access to deeper and more selective data at Twitter. Chris Moody, Gnip’s chief executive, welcomed the acquisition in a blog post. “We’ll be able to support a broader set of cases across a diverse set of users including brands, universities, agencies, and developers big and small. Joining Twitter also provides us access to resources and infrastructure to scale to the next level and offer newproducts and solutions.”
For Twitter, getting Gnip in means having more direct control and the ability to monetize from the use of its own data. The relationship also allows Twitter to ‘sell’ its data to other companies without the use of a middleman. It will also grant Twitter more advertising and revenue streams.
Twitter bags SecondSync and Mesagraph
The microblogging site entrenched its lead in ‘second screen’ viewing with the purchase of two firms, UK-based SecondSync and France-based Mesagraph. Both social TV analytics firms have strong focus and relationships with the television industry in their home grounds while also having a cultivated and healthy relationship with other companies working in the social TV sphere.
Purchasing SecondSync was once again an act to quell rival Facebook’s advancement in the same area. SecondSync had earlier in January announced a partnership with Facebook. Had the deal gone through, SecondSync would be supplying analytic data to the social network. Twitter would have been left to play catch up which would make it lose its image as a champion of real-time conversations. The event would set it back by a few miles in the race for dominance of being ‘here and now’. Bagging SecondSync once again puts Twitter in the lead of real-time communication. Twitter has been hailed as the medium for instant reactions and conversations. This is also what gives Twitter a decisive advantage over competitors such as Facebook who has been trying to enter that space through the introduction of “trending topics”.
Confirming the acquisition, SecondSync said in a post “Twitter is the only place that hosts a real-time, public conversation about TV at scale. By joining Twitter, we will be able to help take that experience, in concert with the rest of the TV ecosystem, to the next level – particularly in markets outside the US.”
Bringing Mesagraph under its wing is also strategic for Twitter. Mesagraph helps users pull insights from tweets on specific topics through its web-based platform, Meaningly. The Mesagraph TV API then builds on the data ‘pulled’ and provides analytics based around live TV shows.
This expertise is very valuable to Twitter if it wants to stay in the race and more important to Twitter is the partnership Mesagraph has with French TV networks Canal+, France Télévisions, M6, TF1 and such whom the company has been long trying to target with its ad services and Twitter Amplify.
Twitter has been buying up pieces of their ecosystem that are either close to the customer or close to their revenue stream; some of its notable earlier buys include mobile advertising exchange MoPub, Android lockscreen app Cover, yet another social TV firm Bluefin Labs and real-time data company Locomatix.
So what did Google buy?
Google engaged itself in a staring match with Facebook over Titan Aerospace. But Facebook was looking elsewhere also at the same time and shortly disclosed its purchase of U.K.-based Ascenta, a Titan Aerospace competitor. With Facebook gone, Titan Aerospace was all Google’s for an undisclosed sum.
Facebook’s offer to Titan Aerospace was $60 million, therefore it may be assumed that Google could have thrown more in to fasten itself to the drone maker. Ascenta and Titan Aerospace are leaders in high altitude drones that can bring to remote areas of the globe cheap Internet connectivity, bringing to the centre of Internet technology those have never been touched by telephones or mobile towers, much less the Internet. This is leading edge technology, promising yet unproven.
Google is looking to make its newest and most exciting acquisition yet work in many ways. The main goal is to find newer markets and potential for growth by connecting remote areas to the Internet and bringing them under Google’s scanner from which Google and its partners stand to profit. Titan Aerospace’s expertise will also play a crucial role in Project Loon, the balloon-based remote Internet delivery project that Google has been working hard on.
Google knows when its products are reaching their saturation points. So they diversify into new areas, or better still, create some. It’s still early in time, but atmospheric satellites could be the next thing in bringing Internet access to millions of people, as noted by a Google spokesperson. With Loon reasoning, acquiring Titan Aerospace is Google’s most transparent yet. Loon prototypes have demonstrated how they can globe-trot on a budget timeframe but Titan’s bots which can do altitudes of 65,000 ft., are sleek and solar powered and, can live for up to 5 years can do lots more.
The drones are more delivery efficient with respect to their ability to take the Internet remote. They also have markedly higher degree of control than the Loon and the ability to react/adjust to climatic changes.
Titan is working on two models of drones and claims the bots can help deliver data speeds of up to one gigabit a second which would be far higher than broadband speeds available down here on earth in most developed countries.
BUDDING MANAGERSMAY 2014 ISSUE
If Iowa State University’s materials scientist Reza Montazami finds his way we could have credit cards that will self-destruct on receiving a signal from their owner upon theft or loss. Montazami’s team has al-ready built and tested a degradable antennae which they say will find huge applications in medical and military applications. The technology lies in “tran-sient materials” or “transient electronics” which in-volves materials that are special polymers designed to quickly and completely melt away when a trigger is activated.
WILL THE THORPEDO SINK?Five time Olympic Champion Ian Thorpe was hospitalised due to a bug infection he picked up in the last of a series of surgeries on his shoulder. If the treatments do not work, Thorpe stands to lose his left arm and may not swim again bringing the curtains down on a career built on grit and ability. Thorpe who has been in and out of rehab for depression and alco-holism has been looking to make a comeback in Rio 2016 games.
ROHAN MURTHY'S SATYARohan Murthy, son of Infosys’s co-founder and chairman N R Narayana Murthy along with two of his colleagues at Harvard has developed an algorithm that allows spectrum owners to sell or sub-lease un-used or under-utilized spectrum in a seamless way, ensuring there is no interference to the owner’s own operation. The algorithm named ‘Satya’ enables one to bid optimally. Satya will help create a secondary market for spectrum and also raise more revenue for spectrum owners through sub-letting.
Banks are finding newer ways to entice their fe-male audience with cheaper auto loans. India’s first women’s bank, Bharatiya Mahila Bank is tying up with Tata Motors to offer its customers cheaper auto loans across Tata’s car segments. Axis Bank also put forth the finding that there is improvement in the credit risk when women consumers come on board. With nearly one-fifth of the bank’s customer base be-ing women, special rates and zero processing fee are being offered to woo women car buyers.
FB-LIKE SCIENCE NETWORK GETS INVESTOR NODA few graduates from Pune have created what could be the first social network for science and math enthusiasts, an idea that has found an investor in Nex-us Venture Partners. Named Function Space, it con-nects students class 9 and above to network and learn math and science. Function Space brings together students, professors, researchers from Ivy League campuses and tech wizards from companies such as Google, Microsoft, GE and Raytheon.
UKRAINE TURMOIL HITS RUSSIAN ECONOMYRussian markets have been rattled by its tensions with neighbouring Ukraine, since Russia annexed the Black Sea region of Crimea last month. The main stock index tanked 10 percent in March, wiping out billions in market capitalization. According to Rus-sian Economy Minister Alexei Ulyukayev, the econo-my expanded just 0.8 percent in the first quarter from a year earlier defeating a prediction of 2.5 percent.
Dronies seem to be the next big thing for selfie addicts. Dronies are videos taken by a drone flying above, remote controlled by the owner. Dronies pro-vide for a better view of the environs one takes the shot/video in. This is the newest toy for the selfie crazy.
YAMAHA ELECTRICYamaha will put out on the road in the near fu-ture two models of electric bikes – the PES1 and the PED1. The former weighs under 220 pounds while the latter just 180. The PED1 is an off-roader and will fit in the back of an SUV. While speed/torque may not be fascinating, these bikes are expected to expand the scope of electric vehicles in the off-road segment. According to the company, the bikes offer the oper-ability expected by existing motorcycle fans while delivering a new riding experience.
CADBURY RENAMEDIconic name Cadbury will now be replaced with a name that means world of deliciousness – Mondelez. Cadbury India will henceforth be known as Mondelez India Foods Ltd. Cadbury India Ltd. is a subsidiary of Mondelex International Inc. The move however will not affect the marketing labels of its brands Cadbury Dairy Milk, 5 Star, Gems, Bournville, Perk, Celebra-tions, Choclairs, Halls, Bournvita, Tang and Oreo.
COAST FOR IOSiOS fans have something new to cheer about – Coast, the latest and modern web browser for iPhones and iPads. Coast has a simplified interface, a com-bined search and address bar, big icon buttons for bookmarks (like app icons) and suggestions in large typo as you type.
Vic Gundotra, the man who oversaw the launch of Google+ is leaving after eight years at Google and three years after Google+. While Gundotra did not say why or where he was going, his exit is the latest change to Google’s senior leadership. David Besbris, vice-president of engineering in the Google+ divi-sion, has been picked to replace Gundotra effective immediately.
NEW ON ROAD: MERCEDES GL63 AMG
Meet the astounding Mercedes GL63 AMG, a full-size, seven-passenger crossover with a 550-horse-power twin-turbo V8 engine under its hood. Fitted with the finest luxury accessories and cutting-edge safety gear, the bulky GL63 can brake to a halt way better at 104 feet from 60mph compared to its near-est competitor Range Rover Supercharged’s 118 feet. Costs Rs. 1.66 Cr ex-showroom Mumbai.
APPLE'S SURPRISE STOCK SPLITApple shocked Wall Street by announcing a 7-to-1 stock split raising the prospect of becoming more af-fordable for the average investor. The post-split stock would trade for about $81 a share. This move will make Apple’s stock its most affordable product!
CHINESE OVERTAKE RUSSIANS IN MANHATTANChinese count the largest among foreign nation-als to buy apartments according to an estimation by real estate agents in Manhattan. The Ukraine unrest and imposition of sanctions by the US against Russia seem to be what has triggered off Russians backped-alling on new purchases.
NAILING IT BY PINNINGRetail chains across US like Target, Nordstrom and other big chains are taking to Pinterest in a big way. They are trying to attract their smartphone-toting customers who enjoy opining on and pinning photos on Pinterest. While Target is planning an ex-clusive party-planning collection with top Pinterest users, coffee chain Caribou created a coffee blend inspired by its fans on Pinterest.
Micromax has launched the third iteration of its Canvas Doodle phablet. It sports a 6-inch FWVGA (480 x 854p) display, making it the biggest Micro-max phone. It is powered by a 1.3GHz dual-core Me-diaTek MT6572 processor and 512MB RAM, has a 4GB internal storage, with support for microSD cards of up to 32GB. Runs Android 4.2.2 Jelly Bean, costs Rs. 8,500/-
TECHIES MAKE A BEELINE FOR STARTUP VILLAGEStartup Village, the Kochi-based, mobile-internet technology business incubator, has received a record 527 applications in just a month from young entre-preneurs.
The incubation centre, which recently completed two years of its existence, received 527 applications from would-be entrepreneurs in March, almost dou-ble the figure of 286 applications in February.
The total number of applications received by Startup Village, which currently supports 600 start-ups, touched 2,269 as of March. Startup Village Chairman Sanjay Vijayakumar has noted that increas-ing interest in the incubation centre shows that young people are now more willing to take risks and chase their dreams.
GRAIN STORAGE CAPACITY SHORT BY 35 MTAbout 40 per cent of the government's foodgrain is stored in an "unprofessional" way due to acute short-age of storage capacity to the tune of 35 MISCEL-LANEOUS mt, a joint study by ASSOCHAM and Yes Bank has noted. The study adds that currently 70 per cent of the country's total warehousing capacity of 112 mt is owned by the government.
An additional 35 mt of storage capacity is re-quired in the 12th Five-Year Plan period (2012-17), the study notes. The industry chamber adds that inad-equate storage capacity and inefficient logistics lead to wastage of around 30 per cent of total foodgrain harvest.
IPO MOP-UP SLIPS TO Rs 1,205 CR IN FY14India Inc managed to raise a meagre Rs 1,205 crore through initial public offers (IPOs) in the finan-cial year ended March 2014. This figure compares poorly with Rs 6,289 crore mopped up through nine IPOs in 2012-13, according to a report by Prime Da-tabase.
However, the IPO market is expected to see a re-vival in 2004-15 on revival in demand. There is a lot of pent-up demand as far as issues are concerned with numerous companies in dire need of equity infusion, reveals Prime Database Managing Director Prithvi Haldea.
INDIA TOPS APAC LIST OF UNCERTAIN TAX REGIMES
India, China and Indonesia recently topped the list of nations in the Asia-Pacific (APAC) region in terms of worst predictability of tax laws. According to a survey conducted by Deloitte India, about 75 percent of respondents in the Asia- Pacific Tax Complexity Survey of 800 tax executives across 20 countries said that predictability of tax laws was either poor or non-existent in China, India and Indonesia. India is seen as changing its tax positions too rapidly compared to others in the region, the participants opined. Most re-spondents added that tax laws in the three countries had turned more complicated since 2010.
FUND HOUSES TOLD TO MAKE MORE DISCLOSURES
Mutual fund (MF) houses will now require to make monthly disclosures about assets managed by them as well as explain the rationale behind exercis-ing their voting rights in companies as a part of stron-ger SEBI norms.
Fund houses will have to disclose details with re-spect to assets under management (AUM) from dif-ferent categories of schemes, AUM from places be-yond top- 15 cities, contribution of sponsor and its associates in AUM, contribution from different types of investors, like retail, and corporate,
Maharashtra has emerged as the number one in-vestment destination in the country, replacing Guja-rat, according to an ASSOCHAM report.
The report reveals that Maharashtra attracted cu-mulative investment proposals of Rs 14,73,466 crore as of December 2013 while Gujarat drew proposals worth Rs 13,98,347 crore.
The report notes that the primary reason for Ma-harashtra to overtake Gujarat is the State's focus on development of industrial centres in tier-II and -III cities, making it the preferred choice of investments for Indian and global service sector industries.
SOON, ALL EMPLOYERS CAN PAY PF DUES ONLINEEmployers in the organised sector maintaining ac-counts in banks other than State Bank of India (SBI) will soon be able to pay provident fund (PF) dues on-line to the Employees' Provident Fund Organisation (EPFO).
Currently, employers who have their bank ac-counts with SBI can pay PF dues to the EPFO online. Other employers who do not have bank account with SBI are not able to do so. A facility is being devel-oped so that they can make electronic payment of their dues online in about six month.
TCS, MITSUBISHI FROM Rs 3,600-CR IT JVTata Consultancy Services (TCS) will merge its two units in Japan - Nippon TCS Solution Center and TCS Japan - with Mitsubishi Corp's IT subsidiary, IT Frontier Corp, to create a joint venture company.
Lubrizol Corporation, a fully-owned subsidiary of Warren Buffett's Berkshire Hathaway, plans to set up a thermoplastic compound plant in Dahej, Gujarat, with an initial investment of Rs 300 crore. The plant, which will be operational in the first quarter of 2015, will make TempRite chlorinated polyvinyle chloride (CPVC) compounds. The facility, which will have an annual capacity of around 55,000 tonnes, will supply CPVC compounds to its two licence-holders in India- Astral Poly Technik and Ashirwad Pipes - to manu-facture CPVC pipes.
This is Mr Buffett's first investment in India.
WALMART PLANS 50 NEW BEST PRICE STORES
Walmart India, the wholly-owned subsidiary of Bentonville, US-based Wal-Mart Stores, will be opening 50 cash-andcarry outlets - Best Price Mod-ern Wholesale Stores - over the next five years. The company currently operates 20 cash-and-carry stores in eight States across the country.
It is also planning to launch a B2B e-commerce platform for members of its cash-and-carry venture.
Walmart India has said that it will continue to in-vest in its supply chain infrastructure and supplier development.
Ruchi Soya Industries is planning to enter the branded, ready-to-cook food segment. The Rs 30,000-crore company has edible oil brand Ruchi and soya food brand Nutrela in its portfolio.
Having just launched Nutrela Instant, high-protein soya granules, the company is now in the process of foraying into ready-to-cook breakfast and select In-dian snack segments, including upma and poha. The entry forms an important part of Ruchi Soya's new journey from an edible oil player towards becoming a branded fast-moving consumer goods company.
POOR TALENT COSTS INDIA INC Rs 2,330 CRPoor talent management is resulting in businesses wasting about Rs 2,330 crore on recruitment costs, according to a joint survey by LinkedIn and PwC. The study reveals that inability of people to upgrade for new skills or switch industries will cost as much as $150 billion (around Rs 9,00,000 crore) globally, and in India, it is about Rs 53,300 crore. The study has found a strong correlation between adaptability of talent in a particular country and performance of its companies. If India was better at matching talent with right opportunities, it could unlock about Rs 50,800 crore in increased productivity.
STAR, ZEE ARMS END DISTRIBUTION VENTUREStar Den Media Services and Zee Turner have decided to discontinue their three-year distribution venture, MediaPro. The decision follows the Tele-com Regulatory Authority of India's (TRAI) move to bar aggregators from bundling channels of different broadcasters. The new norms specify that only broad-casters can enter into contracts and interconnection agreements with cable and directto-home platform operators.
The TRAI had reasoned that the three aggregators command almost 60 per cent of the total pay TV mar-ket, giving them unfair bargaining power. Both Star Den and Zee Turner will be setting up independent affiliate sales team for their respective channels.
AMBUJA DRAWS UP Rs 802- CR CAPEX PLANAmbuja Cement, a part of the Holcim Group, plans to invest Rs 802 crore this year in various on-going projects. The company, which has 27.25 mtpa capacity, is setting up three greenfield plants of 1.5 mtpa capacity each in Rajasthan, Madhya Pradesh and Uttar Pradesh. It is also adding clinker capacity in West Bengal and Rajasthan by 0.8 mtpa each. The company has proposed to fund the entire capital ex-penditure (capex) through internal accruals. Ambuja Cement notes that the cement industry is set for an upturn.
COGNIZANT TECHNOLOGY TO BUY US' ITASSCognizant Technology Solutions Corporation has bought USbased digital video software company Itaas for an undisclosed amount. The acquisition is a part of Cognizant's push to enter the cable industry and tap business from companies such as Comcast and Time Warner Cable.
Itaas is Teaneck, New Jersey-based Cognizant's third notable acquisition in the past two years. In 2012, it had acquired six of Hamburgbased C1 Group of companies. Last October, it bought France-based Equinox Consulting to strengthen its foothold in Eu-rope and reduce its reliance on North America, its biggest market.
A year after Diageo's open offer to acquire 26 percent in United Spirits (USL) failed, the company re-cently announced another offer for over Rs 11,448.9 crore. The earlier open offer had failed as the offer price of Rs 1,440 was less than the then prevailing share price of Rs 1,762, which continued to rise there-after. Diageo's new tender offer to public sharehold-ers at Rs 3,030 a share seeks to acquire 26 percent or 3,77,85,214 shares in USL. The offer, which will be open between June 11 and 24, will take Diageo's holding in USL to 54.78 percent.
NISSAN OVERTAKES MARUTI IN CAR EXPORTSMaruti Suzuki lost the second slot in the lucrative car exports market to Nissan Motors India last year as it grappled with intensified competition in overseas markets. Nissan India increased its export numbers by shipping 18 per cent additional cars in the last fi-nancial year to take its tally to 1.16 lakh units. Maruti Suzuki lost 16 per cent in overseas sales to end 2013-14 at 1.01 lakh cars sent out of India.
A decade earlier, the country's largest car-maker had ceded the first slot to South Korean Hyundai Mo-tors, which shipped out 2.33 lakh cars in FY14.
CANON INDIA EYES SECURITY CAMERA MARKET
Digital imaging company Canon India is planning to get into the network security camera market. The company's new foray coincides with the trend of reg-ular compact cameras losing ground to smartphones equipped with mega-pixel cameras. The Indian sub-sidiary of Japan's Canon had earlier made forays into photo album, cinematography and medical imaging segments to offset lower revenue from compact cam-eras.
.Canon, which has a market share of about 24 percent in the domestic inkjet market, is aiming to increase it to 30 per cent this year on the back of its new launches.
JSW STARTS SECOND STEEL MILL IN KARNATAKAJSW Steel recently commissioned the first phase of 2.3 mtpa Cold Rolling Mill-2 (CRM-2) in Torana-gallu, Karnataka.
The company has invested Rs 4,500 crore to set up the plant in technical collaboration with Japan's JFE Steel. The company's CRM-1 is already operational since eight years and manufactures special steel for body parts in passenger cars. With this, the company aims to capture a sizeable portion of autograde steel market in India.
NMDC HITS RECORD ORE OUTPUT, SALES IN FY14Production and sales of NMDC touched a record high of over 30 mt in 2013-14. Buoyed by a higher demand from domestic steel-makers, NMDC record-ed an 11.31 per cent rise in iron ore production at 30.1 mt in FY14 as against 27.04 mt in FY13. The coun-try's largest iron ore miner registered a 16.22 percent growth in ore sales to 30.8 mt as against 26.5 mt in the period under review. The company attributed the rise in production to better evacuation system that it had put in place.
CIL MISSES FY14 OUTPUT, SUPPLY TARGETS
Coal India (CIL) has missed both its production and sales targets by about 20 mt each in FY14. The world's largest coal miner has blamed environmental issues, inclement weather and transportation prob-lems for the shortfall in targets. The State-owned company's output in the previous financial year roseby 2.3% to 462 mt, missing its aim of 482 mt. Sup-plies too expanded marginally by 1.4% to 471.5 mt while the projection was 492 mt.
The supply target was missed mainly due to States not lifting their contracted quantities as well as con-straints in liquidating available stocks.
OVL TO SELL EQUITY IN VIETNAM BLOCK
ONGC Videsh (OVL) is in talks with PetroVi-etnam to offload a part of its stake in Block 128 in the disputed South China Sea. The overseas arm of government-controlled Oil and Natural Gas Corpora-tion (ONGC) had got a two-year extension, ending in June 2014, for the block, which it had earlier planned to exit. The extension came after Vietnam offered additional data which could help the block become commercially viable. OVL would retain the major-ity 51 per cent stake in the block, which the Chinese have claimed is in its territorial waters.
NTPC, COAL INDIA BURY THE HATCHET
NTPC has settled the dues of two Coal India (CIL) subsidiaries - Eastern Coalfields and Bharat Coking Coal. The settlement brings to a close a protracted tussle between NTPC and CIL over quality of fuel that the Staterun miner was providing.
Executives from NTPC and CIL agreed on the quantum of the dues - about Rs 3,000 crore - and NTPC paid about Rs 1,000 crore to CIL's subsidiar-ies. An independent entity will now take samples of coal being dispatched by CIL and ascertain its heat content. The arrangement is acceptable to both CIL and NTPC.
HOUSEHOLDS OWN 60% OF BANK DEPOSITS
An RBI study on the composition and ownership pattern of deposits with scheduled commercial banks reveals that the household sector continues to domi-nate deposits.
BOI TO FUND AIR INDIA'S AIRCAFT ACQUISITION
Bank of India (BoI) has become the first Indian bank to extend a bridge loan of $200 million (around Rs 1,200 crore) to Air India to finance purchase of two Boeing 787 Dreamliner aircraft. Confirming the development, a senior Air India executive revealed that the London branch of the bank had come forward to extend funds to acquire the Narendra Kothari, the former CEO of SAIL's Burnpur plant, recently took over as the new chairman and managing director of NMDC. Aniruddh Kumar, the former executive direc-tor of HAL's Koraput division, has assumed charge as director (rail and metro) and member of the Board of BEML. Boeing 787 aircraft. The funds raised from BoI will be used to acquire the 13th and 14th Boring 787 aircraft which the airline is to take delivery of. Air India will go in for a sale-and-lease-back mecha-nism to acquire the aircraft.
INDIAN RAILWAYS CROSSES FY14 FREIGHT TARGET
The Indian Railways carried 1.053 billion tonnes of cargo in 2013-14, up 4.3 per cent against the traf-fic moved in 2012-13. With this, the railways has crossed the upward revised target to move 1.052 bil-lion tonnes of freight set in the interim Budget.
The growth in freight traffic was also supported by commodities, such as coal, petroleum products, steel and fertiliser. Higher loading by railways is good news as it indicates a revival in economic activity.
CREDIT CARD BASE UP BUY 4% IN 2013-14
Credit card base in the country grew by 4 per cent in FY14 to 2.03 crore, according to the Worldline In-dia Card Payment Report 2014.
Private sector banks had a larger share of the pie with 54 per cent of cards issued by them. Public sec-tor and foreign banks accounted for 20 and 26 percent of the total cards issued last year.
HDFC Bank with 51 lakh cards topped the list with a 27 per cent share, followed by ICICI Bank with 31 lakh cards and 17 per cent and SBI with 28 lakh cards and 15 per cent market share.
RELEIF FOR HOME LOAN BORROWERS
An RBI working group has suggested that banks must effect any change in floating rate loans only at the agreed-upon reset date.
This is aimed at ushering in transparent and appro-priate pricing of credit. The group has suggested that floating rate loan agreements can have interest rates reset monthly, quarterly or half-yearly.
Once loans are reset on the date agreed upon, the customer will know upfront when the rates are due for change, thereby improving transparency. With the new system, any change in base rate will not result in an immediate change in floating rate on existing loans.
PRIVATE INSURERS LEAD IN HEALTH COVERPrivate insurers have outperformed public insur-ance companies in the country by covering about 65 per cent of the population, according to a study by industry body ASSOCHAM.
However, public insurance companies account for maximum share of over 61 per cent of premium arising out of health insurance. Direct business is the major contributor in terms of premium collection with about 37 per cent share, followed by individual agents (31.6 per cent) and brokers (21.4 per cent). Private voluntary health insurance will continue to grow in terms of covering a large section of the popu-lation, the study adds.
BUDDING MANAGERS
MAY 2014 ISSUE
A Prospective Students Survey on mba.com (the official GMAT site), of 12,000 registered individuals has revealed that 40% of students prefer the full-time MBA programmes. Part-time MBA programmes were observed to be receiving the thumbs-down appealing to only 33% compared to 39% in 2009. Students es-pecially women, were seen to favouring specialised masters programmes over the traditional degree. 20 per cent of prospective candidates said they were fo-cussed solely on business masters programmes.
Yale goes to China
Yale School of Management is all set to further its global footprint with an entry into Beijing through the establishment of a leadership centre. The Yale Lead-ership Centre in Beijing that plans to open in October will host programmes from schools across the uni-versity. Yale partners with prominent b-schools from around the world. The collective is known as Global Network for Advanced Management (GNAM) and brings under its umbrella with this new move, Ren-min University School of Business in Beijing, Fudan University School of Management in Shanghai and Hong Kong University of Science and Technology.
To be a reality: BSNL technical varsity
Bharat Sanchar Nigam Limited (BSNL) has start-ed work on establishing a technical university that will offer engineering and management courses.
Reverse mentoring
A specially set up programme that went live last September between management students at the Uni-versity of Miami and Citi is creating new waves with the concept of ‘reverse mentoring’. Here students turn mentors to corporate executives, teaching them a thing or two about the new world order. The pro-gramme helps both the university and Citi achieve the end means. Students while understanding the busi-ness from the inside-out, get to interact closely with top executives at Citi. Citi benefits by getting outsider views of how millenials use social platforms and also how they bank. The arrangement caters to Citi’s spe-cific interest in understanding banking in social me-dia, and also helping research on preferred banking options of the millenials.
IIM-A revamps faculty development programme
Beginning June 9, 2014, the refurbished FDP will see its 36th rendition this year at IIM-A. The enhance-ments have been made based on inputs provided by various constituents during IIM-A’s recently conclud-ed series of interactions with its external stakeholders. The modifications aim to build in the management faculty of the country skills that are the need of the hour. The programme concentrates on skill updation in the areas of Finance, Marketing and, Organization Behaviour and Industrial Relations. A total of 703 faculty members have completed their FDP at IIM-A. Participants include faculty from countries such as Nepal, Bangladesh, Bhutan, Maldives, Ethiopia and Sri Lanka as well.
Mooc is rocking
Massive open online courses (moocs) are report-edly finding increased enlistment. Moocs like Cours-era and edX partner top universities to offer courses that are on par with in-class content of the respective universities. Trending Mooc programmes include topics like Analysing global trends for business and society, Debt Sustainability analysis, Financial pro-gramming and policies, topics on entrepreneurships and start-ups, etc.
Manipal Institute of Technology has more reasons to smile
First it was Satya Nadella, now it is Rajeev Suri. Students and professors of Manipal are excited at the elevation of their alumni to key positions in global conglomerates. While Nadella was declared head of Microsoft, Suri is the new CEO of Nokia under Mi-crosoft. Nadella was a year senior to Suri at MIT. The institute said that Indian talent is getting noticed glob-ally. This is expected to change the global perspective on students from Indian institutes.
Women focussed MBA course
With increased focus on women in leadership po-sitions in the corporate world, McDonough School of Business (Georgetown University, Washington DC) is offering a specialised course titled “Developing Women Leaders: Cultivating your Human and Social Capital”. The programme aims at helping change the dynamics in the workplace for McDonough’s female grads.
Iconic Louis Kahn Plaza at IIM-A to get a make-over
Built by American architect Louis Isadore Kahn in the 1960s, Louis Kahn Plaza (LKP) has over a period of time undergone certain damage. While restoration has been happening in bits, IIM-A has decided it is time for a complete overhaul. The estimated project cost is Rs. 15 crore per annum for the conservation and restoration. Peter Inskip + Peter Jenkins Archi-tects have been hired as the conservation consultants for restoration study and M/s Somaya & Kalappa Consultants as Conservation Architects. The institute issued a statement that it would welcome corporate donations to manage the cost.
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MAY 2014 ISSUE
But in today’s times, disruptive individuals are treasured, people understand that they are mavericks for a reason, employers are beginning to understand that their creative approaches and uncontrolled minds are fertile grounds from which arise brilliant ideas that help run the business.
Disruption has evolved to be a concept not just for success, but for thriving every day. Being called “disruptive” in the workplace is like being called a “change agent” ten years ago. Savvy employers are now vigorously searching for ‘disruptive energy’ to keep the workplace bleeding edge. What disruptive ideas outsourced business consultants used to bring to a business, employees are expected to do now.
Disruptive is authentic, curious and bold. Dis-ruptive minds fail to be satisfied with even perfectly working systems. Their minds are constantly asking questions and seeking higher answers to bring about change. The biggest inventions of our times have been made by tireless, disruptive minds who were willing to questions norms and acceptable theories. These disruptive nonconformists are people who of-ten perfect processes and make organisations success-ful, transform the industry as a whole and reshape an organisations very DNA.
There are still a few misconceptions attached to the word disruption. Being disruptive is not being eccentric. It is being eccentric with a constructive purpose. Disruptive energy and a head that thinks tangentially in the board room is something every-one needs to own. If one is not being disruptive, it means that they are not doing their job. Also, ‘disrup-tive’ is not arrogant. It means in some places, having the foresight; in some, speed and in some others, the right intention, the right timing, unconventional wis-dom and creativity.
While some organisations have a certain degree of reservation when it comes to their disruptive-minded team mates they know they cannot be overlooked because they are the people creating headways and throwing up newer, better alternatives to ritualistic practises and business models. For real change to happen however, organisations need to bring dis-ruption at their core. Companies that are disruptive by nature define the industry they operate in and are synonymous with exciting and newer products or ser-vices. Such products create new customer clusters. An example would be Apple which has earned the distinction of being one of the continuously disrup-tive organisations by far. Apple’s is a cult status and imagery few others can command. Yet another classic example would be Sir Richard Branson, a strong ad-vocate and follower of disruption in business.
So why is there a sudden interest in disruption? Companies are realising that they are looking in the face of their own death by sticking to obsolete ways of running the business while competitors who sub-scribed to the disruptive theory have clearly surged ahead. They have come to realise that customer ex-pectations cannot be met by remaining the same. They only way to remain in sight and thought of the customer is by denouncing parts of the business that do not conform to the times.
What is ‘disruptive’? What ‘disruption’ can actu-ally save the day?
To be disruptive is to move quickly, pinpoint that one thing the customer needs right now and, deliver it at the earliest. Most companies have lengthy process-es and protocols that defeat the core concept of dis-ruption itself. It is not uncommon to see companies and individuals finding it difficult to get around dis-ruption.
Disruption is a mind shift. It means moving out of processes and protocols, moving away from comfort zones. Disruption always opens up a market in unexpected ways; it makes space above or below the tier, at the top or the bottom of the pyramid. When you develop a product or a service that is the baby of a disruptive idea, it stands out leaving its competitors fighting for the same market-space and mind space whereas, the new born will stand to appeal to a new crowd because of what makes it different, thus bring-ing to its owners the first-mover advantage.
Trained eyes are not the ones that are disruptive. Experts are, far too often, myopic. Disruption often than not, comes when the same business is seen by the eyes of an outsider. Because an insider is fed on the constant pluses and minuses of a product or business, their minds will attempt to see the logic and force categorise thoughts into presumed ‘what will work’ and ‘what will not work’. Disruption is not a strategy to fix a problem which is also why people trained in the business miss the bus. Disruption is about finding opportunities within the business’s framework and building from it to create a successful product. The objective becomes identifying the cliché, the junc-tion where the whole industry is stuck, identifying the assumptions/beliefs both insiders and outsiders have of the business/industry, and having the courage to pursue the thought. That is what Red Bull did in the world of colas and sodas. It did not promise ‘an aspirational image’ or taste or promise to make the drinker happy. Instead, it concentrated on giving the drinker a shot of energy when most needed. Needless to say, Red Bull rocked.
There is a method to the madness called disrup-tion. It is not pursuing someone’s fancy. It is foresight and understanding of the market but having a mind that can see beyond the ordinary.
BUDDING MANAGERS
MAY 2014 ISSUE