Lack of long term strategies

Post the frenzied activity that begins in any sector opened up in the Indian Economy, many entrants, including the larger ones, lose out due to lack of long term strategies and inability to adapt to business dynamics. Ultimately, market forces take them off road, putting paid to all the aspirations that convinced them to enter the sector in the first place

The same has been the case in the insurance sector, where the state-owned Insurer LIC stands tall among its counterparts with close to 73% market share (as of September 2010) and 22 players are fighting for the remaining 27% market share. Clearly the market hasn’t picked up like it was expected (one wonders about the possible scenario when the new banking licences are issued, currently sought by a number of players). There were even forays made by a number of players in the IT and BPO space, but players like L&T & Birla failed to make a mark. For that matter, even steel has proved to be an El Dorado in India. Some Indian steel players may beg to disagree, but ask an Arcelor Mittal or a Posco and brace yourself for ayes galore! Players entering the power sector face innumerable constraints in terms of infrastructure, raw material, labour, et al, ever since they entered the sector to take advantage of the new electricity policy. The list goes on.

The fact is that new entrants come into the sunrise sectors solely on the basis of potential. However, only a few years later, they realise that success in the respective sector may be too elusive due to competition, market readiness, regulatory hurdles, infrastructure constraints, et al. If they have gone too far to start afresh from square one, they are left with no option but to move out. Resources can sustain them to an extent, but industry dynamics can take no time to overwhelm them if they are not prepared. And then there is no sense in putting more good money where the bad disappeared! B&E provides an in depth analysis into four major sectors that are giving every indication of being future El Dorados, even as the players remain engaged in a relentless battle in the hope that they won’t be the chosen ones for capitulation.

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Source : IIPM Editorial, 2012.

An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
 

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri's Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links

IIPM : The B-School with a Human Face

Feed me right!

Whether or not your baby will grow up to be an obese Adult, is partly in your hands!

Every son or daughter would vouch for the fact that one of the primary aims of parents, especially mothers, is to stuff them with all possible food available, world hunger and poverty be damned! And as a helpless tot, all you can do is burp. But here is something they would love their parents to read; now if only they took time off from making all those meaningless noises to get the li’l one’s attention! Researchers at the Institute of Child Health, London, have reported that 20% of adult obesity is caused due to this attitude and the practice of over-feeding in infancy. Throughout the years, doctors have been voicing the benefits of breast-feeding, and besides the reasons of higher immunity being developed through breast-feeding, research now reveals that with bottle and formula feed, the baby ends up consuming more food than is required, which in turn results in them developing larger appetites. And with the development of a large appetite, there are more chances of the baby growing into an over-weight adult. Priya Vashisht gave birth to a baby boy five months ago. After two months of rest, she rejoined work. On enquiring about her baby’s food routine, Priya said, “I had switched to bottle-feed after three months of my delivery. Breast-feeding is a tedious process. Also, now that I’m in office during the day, it’s easier with the bottle. And when we have easier options, why not?” Priya isn’t the only woman with this thinking, for there are many more like Priya who prefer to switch to easier options of feeding the baby, much sooner than the recommended period.  Read more...... Source : IIPM Editorial, 2012. An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist). For More IIPM Info, Visit below mentioned IIPM articles.   Zee Business Best B-School Survey 2012 Prof. Arindam Chaudhuri's Session at IMA Indore IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK IIPM strong hold on Placement : 10000 Students Placed in last 5 year IIPM's Management Consulting Arm-Planman Consulting Professor Arindam Chaudhuri - A Man For The Society.... IIPM: Indian Institute of Planning and Management IIPM makes business education truly global Management Guru Arindam Chaudhuri Rajita Chaudhuri-The New Age Woman IIPM B-School Facebook Page IIPM Global Exposure IIPM Best B School India IIPM B-School Detail IIPM Links IIPM : The B-School with a Human Face

Lesson #2: A great Dealership and Retail Presence means half the products sold already!

Arvind Saxena, Director, Sales & Marketing, Hyundai Motors India explains the importance of dealers to Hyundai’s Indian operations and his company’s expansion plans to B&E’s Pawan Chabra

There is no denying the fact that over the past decade, Hyundai has always been regarded as one of the strongest competitors to the market leader (Maruti Suzuki) in the Indian market. There was a time, when the Indian auto fraternity was only abuzz with tales of Maruti, its affordable offerings and a strong distribution and service network. Hyundai challenged their dominance by rolling out its blockbuster Santro and building a robust distribution system in the country. Arvind Saxena, Director, Sales and Marketing, Hyundai Motors India, explains to B&E how the company’s distribution (retail) network has been the secret spice that helped cook the success dish for Hyundai in India.

B&E: There was a time when car manufacturers in India were disinterested to build world-class retail outlets. The outlets were simply places to close a sale, with inadequate/bad infrastructure and almost no displays of vehicle models. The situation has changed today. What prompted the change?

Arvind Saxena (AS): I think the first reason to that will be that the volume in the industry has grown manifold over the past years. This has given the dealers the confidence that the investments in infrastructure of their auto retail outlets are good bets. Secondly, the dealers in the recent past and today also expect that the market will continue to grow strongly even in the future, which again encourages them to invest more to match the quality and volume that helps them keep pace with the growing market.

B&E: But you mentioned nothing about the evolved demands of the Indian consumer, who has over time displayed an increased appetite for superior ambience at any retail outlet?

AS: The Indian consumer has surely moved on with times and is today, certainly more mature than he was a few years back. Since the very beginning, we also have been quite aware of this fact, and being a strong competitor in the Indian auto market, have constantly worked towards aligning ourselves as per the demands of the consumers.

Read more....

Source : IIPM Editorial, 2012.

An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri's Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links

Sunny Gaur, Managing Director, Jaiprakash Associates Limited

You have a captive power capacity of 227MW. How important and beneficial this has been for you? Any plans to expand it further in near future?
The existing captive thermal power plants have reduced our power cost from `406 PMT in 2001-02 to `293 PMT in 2008-09. We are now planning to expand it further to 702 MW by FY12.

So far coal has been one of the key raw material and low coal linkages can impact your production units. Keeping that in mind, some players have started switching over to alternate fuels. Do you have any plans on this front?
We feel use of alternate fuel in India is still at a nascent stage. In our Group, we already have provisions to use lignite in our Gujarat plant and are evaluating usage of tyre. However, in the Indian context, usage of tyre is an area, which still needs of lot policy change.

Jaypee Cement, at present, is quite aggressive on capacity expansion. Would you like to share your expansion plans with us?
The increase in capacity will come from the group’s Greenfield projects in Gujarat, Andhra Pradesh, Chhattisgarh, Jharkhand and Uttar Pradesh.

Would you also consider inorganic route for expansion?
We are open to evaluate any such opportunity that may come our way. As on date Jaiprakash Associates Limited is the only company in India, which has taken over a plant declared as a sick industrial unit and successfully scripted a turn around story by restructuring the entire plant. We are open to such options.

You are looking at an investment of around `100 billion for capacity enhancement. How are you planning to fund it?
The investment to be done over the next 3 years aims at increasing our production capacity to 50 MTPA. The proposed investment will be funded through an optimum mix of debt and equity.

What is your prime target at present?
Achieving 34 MTPA installed capacity is our first target now. To achieve it we are now working on our new cement plants across the country.

Read more.....

Source : IIPM Editorial, 2012.

An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri's Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links