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September 2014
Mumbai | Volume XII | Issue 2
Choosing the
Right B-School
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E C • T A •C
RE G • T A T •GM
editor from the
www.advancedge.com Editor-in-Chief Kamlesh Sajnani
Editor Aditya Prakash Iengar Correspondent: Puja Shah
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Contributors Dr Suresh Srinivasan
Write to the editor at: editor@advancedge.com Websites: www.advancedge.com, www.imsindia.com
“All we have to decide is what to do with the time that is given us.” This was the belief that the great J.R.R. Tolkien had, and while it may appear somewhat morbid, it certainly isn’t so. Let me clarify.
I’m sure you’ve come across people who complain a bit more than others, who keep parroting the same line over and over, “Why did this have to happen to me?” This thought may have occurred to all of us at one point or another. Why did I get that particular test window? Why did my test have more questions from Quant when Verbal is my strength? Why did someone get a higher percentile than me when my academic performance has been better? I think you get the drift. What Tolkien meant was that there is no point in complaining and wallowing in self pity. What we can do is to put in our best effort, push that extra mile, stretch that tiny bit further. That is all we have to decide to do with our life, with our time, the time that is given us. Now that you’re barely a couple of months away from the CAT, steer your mind consciously away from the negative thoughts, and focus on pushing yourself that little bit more. The rewards, I assure you, will follow. This month’s issue of Advanc’edge MBA focuses on two important things. The first is to find the right business school for you. Now is the time when you’ll have to apply to the various institutes, but how should you do it? Which school should you select? Which institute would be the perfect fit for you? The answer lies within these pages. The second important point to note, as I’m sure you already know, is that the CAT has undergone several changes, primarily with TCS taking over from Prometric as the testing agency. Naturally, changes such as these can be alarming, but there’s really no need to worry. Most of these alterations actually make the CAT less of a frightening hurdle, and will benefit you, the candidate. We’ve explored the pros and cons of these changes, and what you can now expect from the arguably “new and improved” CAT. As always, keep your nose to grindstone and your brain sharp. Keep taking mock tests, evaluating yourself and improving your skills, so that you’re prepared for pretty much anything when you step into that exam hall in November. There’s plenty of time left still, so make the best of it.
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Aditya Prakash Iengar Editor Advanc’edge MBA October 2012 3
contents September 2014
06 Cover Story Your perfect B-school, and how to find it 10 MBA Buzz
Changes in CAT 2014: What they mean for you
13 From a test of competence to a
test of strategy
15 CAT English: Certainly not a juggernaut 19 Director Speak
Abhay Gupta Founder, Luxury Connect Business School
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22 Countdown Top Ten Business Magazines
24 Corporate World
Under Mistry, Tata Group reaches for the stars
26 The Indian economy:
A forecast of things to come
29 Slump-hit Microsoft, Infosys on
recovery path?
32 Study Hour
Test Q&As
34 Word Dose:
Violin virtuoso at the metro
36 Globescan 38 SuDoKu
Disclaimer : The views expressed in the articles by contributors and others are not necessarily those of the Publishers, unless specifically stated therein. While no effort is spared in ensuring the accuracy of the information published herein, readers are advised to reconfirm the current facts before acting upon any such information. The Publishers regret their inability to accept responsibility for any inadvertent errors of commission or omission in this issue. Readers are recommended to make appropriate inquiries before incurring expenses or entering into commitments in relation to any advertisement appearing in this publication. The publishers do not vouch for any claims made by the advertisers of any products or services. The Publisher, Printers or Editor shall not be held liable for any consequences in the event of such claims not being honoured by the advertisers. All rights reserved. No part of this publication may be reproduced, in any form or means, or stored in a database or retrieval system without prior permission from the publisher.
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cover story
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Advanc’edge MBA September 2014
cover story
Your perfect B-school, and how to find it Applying to numerous B-schools just because they are top-ranked is not the best way, especially if they are not suited to your needs. The best method is to prioritise your parameters & narrow down your choice. In this article, we have provided the important parameters to consider. Puja Shah
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inally! You have decided to pursue an MBA and are almost at the end of your CAT preparations. You have registered for the CAT because almost all top schools accept it, save for a handful which conduct their own tests. Now, the foremost question in your mind is - Which is the right b-school for me? Should I register for all the tests? Look, everyone’s list features the IIMs at the top, but it’s always prudent to have other choices as well. It’s not only about getting the right scores in the CAT, but also about building the correct profile that includes your previous academic scores and your extra-curricular activities. So, now what? Not to worry. We have, in this article, provided you a list of parameters which you can use as a filter to find a number of schools that will fit you perfectly. Then you can register for their tests accordingly.
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Ask yourself why you want to do an MBA First and most importantly, you need to ask yourself certain pertinent questions – Is the school you are trying for offering the specialisation
Advanc’edge MBA September 2014
you are interested in? Or is the institute known for placements in your chosen career field? Most students seek an MBA for a specific purpose; whether it facilitates you to enter your chosen career or take up a completely new field, be it an entrepreneur or expanding an existing business, you will require a particular skill-set that will help you achieve your goal. So, it is important to define your objectives clearly, according to your background and motivation. Always keep this firmly lodged in your mind, as it will help you make the best choice for yourself. Check the rankings Since rankings take into account many parameters like faculty, salary, placement, alumni
IT IS IMPORTANT TO DEFINE YOUR OBJECTIVES CLEARLY, ACCORDING TO YOUR BACKGROUND AND MOTIVATION.
feedback, etc, it is important to read a few ranking charts before making a list of your desired schools. MBA Rankings from top publications like Business Today, Economic Times, etc are great tools to compare business schools for placements, alumni satisfaction and value for money. Rankings in India differ largely from those for international institutes, wherein the programmes are also given a lot of importance in their ranking. However, apart from a few institutes that offer a high degree of specialisation in their programmes (which we shall discuss later in this article), most MBA programmes in India are highly general management focused. The practice of ranking the programmes are, therefore, not too prevalent in India. Hence, the first stop on your way to selecting which B-school you would like to study in is the rankings. However, do not base your decision completely on rankings, as the methodologies used in each of the rankings might be completely different and the percentage of responses might also differ. In some surveys, only 60-65 per cent
cover story of the alumni will respond. It is incorrect, therefore, to gauge the quality of an MBA programme only by their ranking but it is a great tool to get an overview of the top MBA programmes. A factor that need not specially be emphasised is the reputation a given management institute commands and its brand image in the industry. While it is natural for older established institutes to have a better reputation, it is not always the case. Many students opt for the newer IIMs for their brand name even though they might not be highly ranked. Ultimately what matters is the impact the institute has over one’s entire life and career and not just one particular job.
development. Check the institutes’ batch profiles and honestly see whether you will be the correct match for these schools. If yes, then continue to the next filter. If not, then go back and get a new list of schools. Specialisation There are some institutes in India that offer a highly specialised MBA programme, apart from the smaller degree of specialisations offered in general management programme. A school that does not enlist the specialisation you want will not suit your purpose. Interest in a particular field or subject is a vital ingredient in the choice of a B-school. Some B-schools have become tantamount to the specialisation they offer. For instance, XLRI and TISS are well known for Human Resources, MICA for Advertising, IRMA for Rural Management and NITIE for Industrial Management. But there are other MBA programmes that are known for general management with a focus on finance or have excellent placements in consulting, etc. Nearly
all general management programmes offer far more than the core management skills. IIM-Calcutta, for example, is where you might apply if you want to work in finance, especially since a lot of financial companies come to the campus to recruit, and roll out enviable offers. Therefore, it is important to know what field you want to be in. Once you know which skills you want to focus on, you are in a better position to consider which MBA is right for you. Be sure to research each school thoroughly by going through their curriculum and their placement data. The return on investment is only going to pay off if your school is known for being one of the best in your desired field. Placements After picking a specialisation, consider placements. Keeping your specialisation in mind, make a list of companies you would like to work for. Check the placement records of the schools in your list and see whether these companies recruit from them. Placement details, which are generally available on the school’s website, provide
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Profile and Ability This is the most important filter. Check the eligibility and selection procedure of your top institutes. Do you meet these basic requirements? Do you think you can get the required test score? Take SimCATs to get a measure of your abilities. Analyse your tests and work out the average score that you could end up with. This will provide you with a basic level or grade of schools that you should be looking at since test scores are the first selection criteria for most schools. Previous work experience will also help in getting you a good placement. Most recruiters would prefer employing students who have some work experience, especially if it is in the same sector that they eventually want to be in. Get into extra-curricular activities. Be it in school, college or classes, make sure you have cultivated other interests besides academics. Though extracurricular activities are not taken into account during the admission process, they contribute to your self-confidence and all-round
ONCE YOU KNOW WHICH SKILLS YOU WANT, YOU ARE IN A BETTER POSITION TO CONSIDER WHICH MBA IS RIGHT FOR YOU.
Advanc’edge MBA September 2014
cover story placement information about the last batch in a comprehensive manner. You get to know how many students were placed, which companies came to recruit, how many offers were made per student, what was the highest and average salary offered, etc. Additionally, you will be able to see how many graduates obtain a position in your own field of choice in a given year, and thus adequately assess if that institute is the right fit for you. But to get the real picture, it is necessary to check placement reports of the last 3 years at least. Read the names of the companies that regularly recruit from them to see if any interest you. Another important detail to check is the number of offers per student. This signifies the amount of choice that a student has in terms of companies and the jobs they offer at the top B-schools. Post-MBA salary and increase in salary are two metrics that MBA aspirants should research. While doing your homework on increase in salary, look into the geographical location of the jobs. The salary pre-MBA and post-MBA should be calculated in one currency, taking into consideration the living expense of the city.
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A FULLY RESIDENTIAL PROGRAMME FOSTERS ALL-ROUND DEVELOPMENT AS PEER AND FACULTY INTERACTION IS A 24X7 PROCESS. Location This is important only if you have reservations about studying in a city or if you need to study in a particular city. The location of an institute is not important for the premier institutes. Employers seek out the best institute irrespective of its location. However, for the others, it would be better if the location is near a commercial hub, so that even if employers do not visit the campus, the student has an opportunity to come in close contact with potential employers. If possible, talk to people who live in the cities that house your selected B-schools and ask about the things that matter to you – safety, transport, culture, etc. Fees and ROI This filter could take precedence over others if you feel the fee is beyond your current means. Most MBA education can be funded by
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INDIA B-SCHOOL RANKING 2013 Ranking 1 2 3 4 5 6 7 8 9 10
Institute IIM-A IIM-C XLRI FMS IIM-K IIM-I SPJIMR MDI IIFT IMI
Advanc’edge MBA September 2014
Location Ahmedabad Kolkata Jamshedpur Delhi Kozhikode Indore Mumbai Gurgaon Delhi Delhi
Fee (2 years) 16.6 lakh 13.61 lakh 15.7 lakh 21,000 9.7 lakh 13 lakh 10.5 lakh 14.91 lakh 13 lakh 13.5 lakh Source: Business Today
loans and scholarships. You also need to check the ROI on your selected schools. One of the most important factors to consider is the return on your investment. If you graduate from a top B-school, your salary post placement can take care of the loan amount easily. But there are some top schools that do not charge an exorbitant amount of fee. In this case, the loan can be paid off in half the time frame that it usually does. If you consider value for money, FMS-Delhi is ranked first by the BT Ranking among the top 100 B-schools in India, whereas the top ranking school overall — IIM-Ahmedabad — is at number 12. So if you are going to take an education loan, researching on ROI will be helpful. You could also speak with the school’s alumni about ROI. Faculty and Infrastructure A judicious mix of full-time and visiting faculty is crucial for any good institute. The full-time faculty is required to teach students the fundamentals of management and oversee development of their skills. The visiting faculty gives students the much needed industry exposure and valuable insights into the corporate world. The best way to know about an institute’s faculty is to get in touch with the students currently studying there. Infrastructure also plays a crucial part in this process. The presence of adequate and state-of-theart infrastructure is an important determinant to judge whether the school offers qualitative environment conducive to learning. A fully residential programme fosters all-round development as peer-group and faculty interaction is not just restricted to the class hours but is a 24x7 process where the scope to learn is multiplied. A
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Advanc’edge MBA September 2014
mba buzz
Changes in CAT 2014: What they mean for you Ever since the CAT notification on 27th July announced numerous changes in the test, we have received a barrage of queries from prospective test-takers to know more about these changes. Read on to understand the changes and their probable implications. Vinayak Kudva, Head-Products, IMS
Test window down to 2 days from 21 days (spread over a month) The CAT authorities have tried reducing uncertainties by cutting down the test window to just 2 days in November: November 16 & November 22, 2014. There will be 2 sessions on each of the two days - morning and afternoon. Pros: a The change in the test dates will bring down the number of test slots to just 4. This will ensure more parity and fairness in the test and will make it more of a level playing field. b Questions like should I take the test early or late during the window?”, do percentiles vary based on the slot in which I take the test?” are now irrelevant. c There will now be lesser hearsay about test content, nature and difficulty on social networking websites which only led to confusion among testtakers.
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Test dates in November instead of October CAT 2008 was conducted on November 16 and this year we are back to November 16 as the first of the two test dates. Over the last 5 years, the long test window necessitated the early start in October. But this year, we are back to having the test in November. Pros: a This gives us one additional month for preparation– so make up for the time lost and be better prepared for the CAT. Cons:
Advanc’edge MBA September 2014
a On the flip-side, students who were planning to take the test early so that they could concentrate on other entrance tests or college exams will now have less time to adapt to these tests. Tests will be conducted in 99 cities instead of 45 CAT 2014 is going to be held in 99 cities at 354 testing sites as against the previous year’s 45 testing cities with 76 testing sites. Pros: a This will be highly beneficial to students residing in the test cities added this year and will probably be instrumental in pushing up the number of CAT registrations. b The anxiety of travelling to a new city, finding the test venue and ensuring that all goes well on the test day is now reduced for a lot of candidates who will now get to take the test in their homecities! Application process goes fully online: offline purchase of vouchers discontinued
mba buzz
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Advanc’edge MBA September 2014
mba buzz Until last year CAT applicants had the choice to purchase the CAT vouchers offline (at Axis Bank) and then complete the registration process online. But this year, all CAT aspirants need to compulsorily use the online payment option (Net banking/Credit Card/ Debit Card) to complete their registration. Pros: a This means no more standing in queues or taking out time to visit the bank to purchase a voucher. The entire registration process can be completed from the comfort of your home or office. b If you have never made any in online transactions, this will be your first-time experience to make e-payments via net banking or credit/debit cards.
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to apply to (other than the IIMs) and also to those who need to have back-up options based on their performance in CAT. b Call-getters may now get extended time duration for their preparation for GD-WAT-PI, which may be conducted in the month of February. Cons: a Lower test scores might hamper the student’s morale for other tests like the NMAT and XAT, which will be conducted after the results of CAT.
Questions in CAT 2014 increased from 60 to 100 & time duration from 140 to 170 minutes As per an official press release, the number of questions in CAT 2014 has been increased from 60 to 100 with 50 questions each in the two sections viz. Takers are not choosers: you can no longer select Quant & DI and Verbal & LR. Further, the test duration preferred venue, date or time slot has been increased from 140 minutes to 170 minutes. CAT 2014 aspirants can only submit three test cities Pros: in order of their preference. a The time available per The aspirant will not get to question might have reduced choose a preferred date, from 140 seconds per question ALL TEST-TAKERS time-slot or venue. The test to 102 seconds per question ARE ADVISED TO agency will randomly allot one but this could make the test of the preferred cities along easier for the student. The TAKE SUFFICIENT with testing centre and timetest-setter might factor in this slot to the aspirant after the time-reduction while deciding NUMBER OF registration period is over i.e. the composition of the test with SIMULATED TESTS TO September 30, 2014. regard to level of difficulty of Pros: the test items. GET USED TO THE a Test takers do not need Cons: TEST INTERFACE. to rush to register their a A lengthier paper means preferred date as that option more time with the test. is done away with this new Students might find more system. questions a tedious affair. Cons: a Students lose the flexibility to decide when and Section time-limits are done away with: Back to where they wish to take the test. Students need paper-based test culture! to ensure that they are free on both the days and One of the main grouses of most CAT aspirants was during both slots. the presence of sectional time limits in the CAT – b As the allotment is now as per a random algorithm, this meant that the students could not play to their the test venue and the time-slot allotted might strengths or rationalise the usage of the total test time prove to be inconvenient for an aspirant – thereby available to them. But CAT 2014 is set to change all creating unnecessary hassles on the D-day. that with the removal of sectional time limits. A test taker can now navigate between two test sections and Results to be declared in December instead of solve questions in any order. January Pros: The CAT results have been traditionally announced in a. Test-takers will now have the flexibility to decide January – this year the big news is that the results will the order of preference while solving questions be available in the 3rd week of December 2014! from different areas. CAT 2014 is likely to be a Pros: test of strategy as it used to be when the test was a Early results may prove to be a boon for aspirants paper-based! who need to decide which B-Schools they need b Test-takers can now spend more time or less on a
Advanc’edge MBA September 2014
mba buzz particular section or area based on their strengths and weaknesses. Cons: a The flexibility to move between sections can prove to be a double-edged sword! Frequent moving across sections, areas or questions with no real strategy in mind can lead to loss of momentum and prove to be detrimental to the overall test performance. The test interface is changing: Get used to it! With the reins of the test handed over to TCS from Prometric, the look and feel of the test is bound to change. Test-takers (especially repeat-takers) will have to get used to the new interface. The 15 minute pre-test tutorial, which was made available last year, will be absent this year.
Pros: a CAT 2014 aspirants will have a tutorial available to them far beforehand, to give them an idea of the actual test. Do you need to change your prep plan? While the topics tested are expected to remain the same, this year the CAT may introduce new question types in view of the changed test structure with more questions in each section. So, while your basic preparation plan for concept learning and practice will necessarily remain the same, the test-taker should adapt to the implications of these changes. Further, all test-takers are advised to take sufficient number of simulated tests (i.e. SimCAT) before the actual test to get used to the test interface and software. Use the one extra month to spread out your test-taking phase with more time between mock tests for feedback and analysis – remember taking too many tests without proper analysis always proves futile. A
From a test of competence to a test of strategy
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In the previous article we gave you a rundown on the changes made in CAT 2014 and also listed the pros and cons for each of those changes. In this write-up, we give you an analysis of how these changes could affect the test and its takers. Tony Xavier, Business Head, IMS-Chennai
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lulled us into believing that the IIMs had finally hit upon what exactly they wanted to test of prospective managers, only for us to wake up to the news that what is required of a prospective manager in India in 2014 is not the same as what was required in the preceding two years. Be that as it may, for those who
are preparing and aspiring to ace CAT 2014, this is what the changes mean. Average time to solve has not come down On the face of it, this seems to be the most obvious case; average time per question has come down from 140 seconds to 102 seconds.
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here have been only three instances in its long history that the CAT has not changed at all – 2010, 2012 and 2013. Given such a statistic, we should have seen something like this coming, especially when it also involved a change in vendor from Prometric to TCS. The last two CATs had perhaps
Advanc’edge MBA September 2014
mba buzz But those who have been taking the test for a while know that nothing is farther from the truth since there is more to it than numbers. Average time comes down only if you are expected to solve all questions within the stipulated time! In CAT 2013, a student with around 16-17 attempted questions got a 99.89 percentile. Therefore, the inference one makes from this is, since the overall time has increased, we will see an increase in the number of attempted questions by testtakers. Fewer test-taking slots - test will get tougher One big change coming in is that the administrators have to set fewer questions this time around — 400 as compared to the previous computer-based CATs. This will definitely mean that quality of questions will go up. We have already seen this during CAT 2013. It was the toughest of the computer-based CATs since the test-creators had to set fewer questions. So, looking at that, CAT 2014 will only get tougher.
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verbal specialist? Being a specialist in a section does not mean that you consider it to be the lesser of the two evils. It means that on any given Sunday,
WITH NO SECTIONAL TIME-LIMITS YOU HAVE TO ALLOCATE YOUR TIME IN A WAY THAT YOU MAXIMISE YOUR OVERALL SCORE.
More questions per section wider range of concepts, new question types With more questions in each section, there will be a wider range of concepts that will get tested from each topic. Take Geometry for instance, more questions can be asked. So test-takers who were planning to ignore their least favourite areas might not be able to do so. Also, we can expect newer question types in Verbal Ability and perhaps more variety in the Quant section with more Data Sufficiency questions.
irrespective of the level of the paper, you will be above 97 percentile in that section. And even if this is the case, then there is a small catch – you still have to clear the sectional cut-offs! The guys who are great at Math will solve as many Quant questions as possible and allocate very little time to Verbal and the guys who are good at Verbal will finish it very fast and allocate more time to Math. So, the question arises - does it really benefit one over the other? not really! So who does it really benefit? The strategist.
Whom does the no sectional time limit benefit — the quant or the
From being a test of competence to being a test of strategy
Advanc’edge MBA September 2014
With the sectional time-limit, macrolevel time management was taken out of the test-takers hands. Within a span of 70 minutes in each section you had to choose and leave the right questions. What was also reduced was the opportunity to utilise your strengths to the maximum and minimise your liabilities. But with no sectional timelimits you have to allocate your time in such a way that you maximise your overall score and clear the sectional cut-offs (which vary from college to college). So do you allocate more time to your strong areas or to your weak areas? How do you know that you have done enough to clear the cut-off in your weak area? What is a good number of attempts overall? These are all questions that testtakers need to confront and there are strategies that will provide a strong base to clear both sectional and overall cut-offs but that will be a separate article, once we take a look at the new testing interface that will be unveiled soon. On the whole though, the new changes make it look like a throwback to the CATs of the past, only with the addition of a mouse. Maybe that is why they say that the more things change, the more they remain the same. A
mba buzz
CAT ENGLISH: Certainly not a juggernaut With just over a month left for the CAT, it is beyond doubt that you have been preparing rigorously. Here, we give you a few things that you can refer to at the last minute to tackle the English verbal section of the test.
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Ability and Reasoning, and Reading Comprehension. Of course, these are just names of sections but there could be overlaps. The verbal ability section could have questions on jumbled sentences and summary or analogies, which are aspects of reasoning. Even Reading Comprehension questions are reasoning-based or occasionally vocabulary-based ones. Thus the objective is the same – to see how good you are at understanding concepts and how strong your
THE OBJECTIVE OF THE VERBAL SECTION IS THE SAME THROUGHOUT ALL THE QUESTIONS — TO SEE HOW STRONG YOUR COMMAND OVER THE LANGUAGE REALLY IS.
command over the language really is. USAGE-BASED QUESTIONS 15
Take a simple word like “hold”. It can mean any one of the following. } To have a belief or opinion about something. Example: He held strong views on capital punishment. } The telephonic context. Example: Hold the line, she is coming. } To last through time. Example: The theory held good for centuries. } To suppress real feelings. Example: I held back my fury at this provocation. } To maintain interest. Example: The programme did not hold the child’s attention. } Signifying ownership. Example: The old man holds fifty percent of the shareholding. The catch is that you, as a test taker, should be aware of the varied usage to be able to crack any question type based on this quickly and correctly.
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anguage is a measure of Man’s progress. If the caveman had not communicated his thoughts and feelings by means of grunts first and language later, we would have been at the primate level. If Aryabhatta, Chanakya, Copernicus and Shakespeare had not employed language to disseminate their offerings to the world, all of us would have been poorer today in a substantive way. The lower order animals have a limited vocabulary because their lives revolve around specific sounds. Man is the only thinking reed who has advanced by means of language and you can see that the results are mindblowing. In the present context, the corporate world requires the manager to undertake rigorous study of disparate texts during report preparation, organisational overhaul or deciding marketing strategies. Hence, is it any wonder that the CAT examiners test your proficiency in English? The English portion in the CAT broadly consists of Verbal
Advanc’edge MBA September 2014
mba buzz GRAMMAR-BASED QUESTIONS Q. “I am not conversant of all the rules.” Is the sentence correct or incorrect? If you have done your homework on prepositional usage, you will know that the sentence is incorrect because the word “conversant” always takes the preposition “with” after it. Hence for sentence correction questions, you need to know the fundamental rules of grammar that govern sentence construction. There are some things you could do or follow that might help strengthen your grammar and English usage. } Refer to an advanced learner’s dictionary like the one by Oxford, with at least 1,50,000 words to help you understand usage and build your word base. An online version of the Oxford Dictionary also serves as excellent reference. } Maintain a readyreckoner or a checklist with respect to grammar rules that will be of immense help in the sentence correction exercise. } Whenever you come across an unfamiliar word, look up the meaning and write it down using it in a sentence of your own. Vocabulary cannot be built overnight.
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FILL IN THE BLANKS In the case of “Fill in the Blanks” type questions, a sentence has a single or double blank followed by four options. To tackle such questions, always form “shadow words” of your own based on your understanding before looking at the options. “Shadow words” mean words
Advanc’edge MBA September 2014
that you, as a reader, feel will contextually fit into the blank(s). You should look at the options only after you have deduced the contextual implication so that you are not misled by the options. Consider the following example. Q. After the sudden death of their leader, the revolutionaries thought it best to be _______ for a while before resuming their attacks on the reigning monarch. a) belligerent b) craven c) querulous d) quiescent In the example above, the shadow word will be based on the phrase “for a while before resuming their attacks”. It means
example, observe the question below. Q. Mark the option that is closest to the word in bold. “Complicity” The soldier was arrested and tortured for his alleged complicity in the Boscoli conspiracy. a) reasonableness b) stature c) patience d) involvement To crack questions of this sort, first determine the mood of the sentence. In the above sentence, it is decidedly negative because he was tortured and arrested. Nobody would have done that to him if he had been reasonable. “Patience” is out of range. “Stature” is a positive term. Hence, “involvement” is the right option. J U M B L E D SENTENCES
that “they lay low”. “Belligerent” means “aggressive”; “craven” means “cowardly”; “querulous” implies a complaining tone. Hence, logically only “quiescent” can fit. This does call for a certain proficiency in vocabulary but then, if you read regularly and combine it with the shadow word technique, you will find that your job will become far easier. CONTEXTUAL USAGE Questions based on contextual usage could test your hold on vocabulary, although the CAT per se is not vocabulary-centric. For
Q u e s t i o n s based on jumbled sentences actually constitute an aspect of verbal reasoning. You should quickly scan the text, eliminate the options that recur and then look for logical links. Here’s an interesting example. Q. “However” is a connective, you agree! Can it begin a sequence? Observe the following. a) However, he was tired. b) However hard he tried, Sam could not forget the incident. In sentence (b), we see that we can begin the sequence with “However” because it introduces the topic. In sentence (a), we cannot begin the sequence because the comma placed after “However” indicates that some thought process has already gone before!
mba buzz SUMMARY QUESTIONS
WHEN YOU READ THE PASSAGE, MARK WORDS THAT ARE CRUCIAL TO ITS ESSENCE. NEGATE OPTIONS THAT ARE SKEWED OR LACK AN ESSENTIAL COMPONENT. is talking about finding a mix of politics and economic policies that will enable sustainable globalisation. [3] This may be true but the passage is not a commentary on ideologies. [4] The passage does not conclude on either economic policy and, therefore, not true. Hence, the answer should be [2]. To tackle such questions, remember: l When you read the passage, mark those words that are crucial to the essence of the passage. l Negate those options which are skewed or lack an essential component. The elimination this way will yield the right answer. CRITICAL REASONING QUESTIONS Questions based on critical reasoning deal with assumptions, conclusions, premises and
inferences and are important from the point of view of rational thinking. To tackle such questions, remember these following points. l Logical thinking means doing away with emotional responses. l Examine the evidence and arrive at the answer. l Remember that an assumption is always implied and it must lead you to the conclusion. l Go by the process of elimination, negating unwarranted generalisations. SYLLOGISMS Again from the world of reasoning, syllogisms are based on a form of logic where the conclusion has to be derived from both the premises. Conditional syllogisms are based on the “fulfillment of the condition, occurrence of the consequence” rule. Consider the following example. “If I am hungry, I scream.” Do not waste time drawing a Venn diagram. First, understand the break-up. “When I am hungry” is the condition. “I scream” is the consequence. There are only two valid placements. Condition and consequence. Negation of the consequence implies negation of the original condition. Therefore, this is what follows. “When I am hungry, I scream.” “I do not scream; I am not hungry.” However, “I am not hungry; I do not scream” will not be a valid placement as it negates the original condition first. The negation of the consequence must be placed first. Now, let’s try this conditional syllogism with a twist. Consider this example. “Either you are crazy or you are a genius.” This is an example of an “either-or” syllogism (technically
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Summary questions too hark back to the good old précis concept of school days without the “one-third of the actual length” norm. Here’s an instance. Q. A politics of sustainable globalisation needs more than just the correct picture of what is happening in the world. It also needs the right balance of policies. Specifically, it demands a new social bargain among workers, financiers and governments that will make for sustainable globalization. Give them their due – the Thatcherites and Reaganites helped to prepare their countries for this era of globalisation and were instrumental in bringing it about by offering an unadulterated freemarket vision for globalisation. Their view was “Let the market rule everywhere as much as possible and things will all be OK”. But a pure market vision alone is not enough. It is too brutal and therefore politically unsustainable. The Left, meanwhile, or what’s left of the Left, has tried to hold on to the paternalism of the welfare state as much as possible. This is not economically sustainable. 1. Sustainable globalisation calls for a new balance of power between workers and financiers and governments after the Thatcherites and Reaganites have done their bit. 2. It is necessary to strike a balance between politics and policies to ensure sustainable globalisation. A pure freemarket or welfare state vision is not politically and economically sustainable. 3. Thatcherites and Reaganites are usually at odds with the Left as they believe in pure market – driven economics. 4. Market – driven economies
are most likely to succeed as opposed to welfare state economics. Ans: [1] While the passage mentions this, it is not reflective of the whole essence of the passage. [2] Is closest to the essence of the passage, which
Advanc’edge MBA September 2014
mba buzz called disjunctive syllogism). If you are crazy = x and you are a genius = y, then there are only four valid placements for this type: a) x, not y b) not y, x c) y, not x d) not x, y. To prepare for this section, remember the following. l Chart out a detailed study plan. l Work hard on all the concepts of verbal ability as well as verbal reasoning constructs. l Never hesitate to refer and make notes to facilitate recall. l Practise regularly so that you learn to make optimum use of time. READING COMPREHENSION
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Reading comprehension in the CAT straddles diverse subjects ranging from psychology, religion and politics to business, philosophy, science, et al. The emphasis in this portion is on interpreting the text and answering the multiple-choice questions that follow. Generally, the number of passages varies, and so may the number of questions per passage but essentially, a question may be direct, partially indirect or indirect. Traditionally, the percentage of direct questions has been lower than the other two types. Here’s a sample. Since all knowledge is knowledge of sense-objects, truth is simply the correspondence of our impressions to things. How are we to know whether our ideas are correct copies of things? How do we distinguish between reality and imagination, dreams or illusions? What is the criterion of truth? It cannot lie in concepts, since they are
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of our own making. Nothing is true save sense impressions and, therefore, the criterion of truth must lie in sensation itself. It cannot be in thought, but must be in feeling. Real objects, said the Stoics, produce in us an intense feeling, or conviction, of their reality. The strength and vividness of the image distinguish these real perceptions from a dream or fancy. Hence, the sole criterion of truth is this striking conviction, whereby the real forces itself upon our consciousness and will not be denied. There is, thus, no universally grounded criterion of
FIRST READ THE PASSAGE SLOWLY, UNDERSTAND IT AND THEN GRADUALLY, OVER A PERIOD OF TEN DAYS OR SO, INCREASE YOUR SPEED. truth. It is based not on reason but on feeling. After reading the above extract, answer the following without going back to the text: a) Truth cannot be based on reason. True/false? b) Knowledge is synonymous with knowledge of sense objects. True/false? Ans: Both the statements are true. Now you can gauge how attentive and proactive a reader you had been and what the gap in understanding that you have to bridge is. If this passage has scared the wits out of you and you start
to despair, then here’s a word of assurance: all is not lost. First read the passage slowly, understand it and then gradually, over a period of ten days or so, increase your speed. Timed reading will work best for subjects that you love and then you can introduce it to include all topics. Here are a few golden rules that you must keep in mind for tackling the RC component. l Everything is contextual. No external knowledge is expected or required. l You should view this as a functional process and not as a literary attempt. l Learn to read in thought units and not word after word. Remember, concentration is the key. l Mark the important elements mentally that you come across while reading. l Ensure accuracy in your attempts because negative marking is a reality. l If you have a reading speed of 300-350 words per minute, it is ideal. But you can develop speed by gradually reducing the time taken to read the same length of text. l Ensure exposure to rigorous non-fiction by reading editorials, research studies and read on a regular basis, beginning with subjects that you like. Subsequently, keep moving on to topics that are new or unfamiliar. l Spending a couple of minutes in determining the order of attempt will prevent you from getting stuck in a passage that is abstruse or has very close, difficult options. l If there is a question on selection of an apt title, opt for one that encompasses the gist of the passage than going for generic or out-of-range ones. A
director speak
Rise of luxury brand management in India Considering the fact that India is a newly opened market with huge possibilities, it is no surprise that more and more luxury brands want a piece of the pie. Sensing the opportunity but knowing the lack of existing talent, ABHAY GUPTA, Founder and CEO of Luxury Connect L.L.P, established the Luxury Connect Business School in 2012, to meet the burgeoning industry’s talent requirements. The award-winning luxury brand manager has to his credit the introduction and scaling up of the Versace and Corneliani brands from single boutiques to over eight boutiques spread across India. In this exclusive interview with Advanc’edge correspondent Puja Shah, he talks about his school, the luxury industry and the skills required to succeed in this field.
Q. What qualities do you look for in your batch of students?
Working for a luxury brand requires a certain attitude. One has to be well educated, well behaved, presentable and have a passion for excellence. One needs to know and like the products one sells. Promoting them has to be something one enjoys. Advising someone on what to wear requires a certain creativity and imagination. Besides, one needs to develop good inter-personal skills since a lot of time is spent in interacting with people. Being a good listener and having a strong personality is essential too. Luxury brand management requires people with ambition, determination; people who love their job. Graduates with strong academic background who speak more than one language (one of which must be English) are always preferred as most well-known fashion brands are international. Since luxury brand management involves a high level of customer interaction, those with a natural flair for networking and the ability to build up a rapport with key decision-makers will do well for themselves in this industry. Luxury houses possess zero tolerance for anything that is below average or of low quality.
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Q. When and why did you think of establishing a luxury management school? When I was contemplating starting a venture that would address all the main areas of the luxury business in 2011, I decided that training and education were the essentials. My organisation, aptly named ‘Luxury Connect’ is a 360 degree, luxury - oriented set up. We not only act as advisers to luxury brands, but ensure that all their needs are met. We provide a holistic approach to luxury businesses keen on building their brand name and retailing in India. After all, a brand, when it enters India, is worried about several issues such as searching for a suitable partner and location, regulatory, cultural, social norms and talent inputs. Having this background knowledge along with over two decades of experience in bringing in, setting up and expanding luxury brands in India, I knew that the biggest hurdle was the talent. Hence, the leaning towards creating India’s first and only luxury B-school.
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director speak Thus, it is essential for an individual working in this field to set a high standard of customer relations and time management. Along with the above qualities, it is essential for luxury brand managers to be in love with their product and believe that the company offers good value in terms of status and elegance to its client.
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with six months of work experience are accepted. In case of EDLM, the working executives need to have a minimum of three to five years of work experience. For an online programme, we do not admit any one with less than a three year work experience. All entrants have to undertake an aptitude test, submit a statement of purpose, an essay and face a personal or a video interview with the admissions panel.
Q. Luxury Connect Business School is the first of its kind in India. Please tell us more about the school. Q. Are you offering on-campus placements? What What are its USPs? about summer internships? LCBS is India’s first and only luxury management Yes, we invite brands and companies for a campus B-school. It is created on a unique boutique format. recruitment process. Brands have the option of The entire learning experience is a soak- in format shortlisting candidates in advance and meeting those where the student submerges himself into a luxury students specifically. Same goes for the internship environment similar to where he will work. Besides, opportunity which is necessary for a complete diploma the entire concept is built on ‘for the industry, by the award. industry, delivered to the industry’ format. Another USP revolves around the related costs of Q. You’ve been in luxury retail for a while now. What such education. With limited are the changes you see in European schools offering such the Indian luxury retail market programmes, the cost of such vis-à-vis the global scene? AT LCBS, THE schools is obviously affordable The Indian luxury retail scenario COST IS BROUGHT only for a select few. We at is slowly but steadily catching LCBS, have localised the same up to the International standard. DOWN TO ALMOST learning in a way that the cost is Brands are investing to ensure brought down to almost half of the retail experience is as it HALF OF WHAT ONE what one would spend by doing would be in any other part of WOULD SPEND BY the course in Europe. Besides, the world. The difference lies our unique blend of 70 per cent in the variety of customers in DOING THE COURSE academics and practice in India India as compared to just one IN EUROPE. coupled with 30 per cent study or two kinds in the rest of the and practice in Europe, ensures world. The challenge here is that the students eventually to skilfully address their needs learn how to deal and deliver a luxury experience in an so as to ensure that a seemingly casual shopper is Asian environment. converted into a loyal customer. This is where training Our curriculum ensures that the student is able and education help. to develop the required quality and characteristics Besides, these brands have realised the importance required to operate in a luxury brand environment. of ‘value or returns’ sought by Indian clients and are Besides, delivery of the learning is carried out by continuously trying to address this issue. Companies existing industry professionals thereby providing that understand the long term potential of the Indian an opportunity to interact and learn from industry market are patiently building their base. All said and stalwarts rather than just the academia. Also, we done, India is only next to China in terms of its market have introduced a post graduate programme in and is expected to consume more and more luxury in collaboration with International University of Monaco the near future. wherein students will spend seven months in India, three in Monaco and the remaining six months doing Q. You are a qualified marine engineer. What made an internship. you shift to luxury business? To tell you the truth, this was not a planned shift. It Q. What are the admission requirements? was more of a gradual destiny-led shift. I entered Admission criteria differ for various programmes. For the fashion manufacturing scenario in 1990 with enrolling students in PGDLM and Customer Service Lacoste and stayed on to set up some of the best and Experience Culture (CSEC) programmes, freshers luxury manufacturing plants. Marketing, retail and
Advanc’edge MBA September 2014
director speak franchising was only a natural progression. I stayed on since marine engineering also trains you to find a shore in any kind of a sea.
WE HAVE A COLLABORATION WITH IUM WHEREIN STUDENTS WILL SPEND SEVEN MONTHS IN INDIA AND THREE IN MONACO.
Q. What level of growth do you foresee in the luxury retail industry in the coming years? The industry has been growing consistently at an average estimated rate of 20 per cent for past several years. It is expected to touch 14.75 billion by 2015/16. By 2025, India and China will contribute some 25 per cent of the global luxury consumption worldwide. Besides, the democratisation of luxury is ensuring that there is both, an upward and a downward movement by brands across all product categories. One would easily identify this phenomenon by the recently scaled down versions launched by all highend automobile players like BMW, Audi, Mercedes Benz, etc. This therefore, is indirectly expanding the luxury market into several sub-categories, thereby encompassing a lot more retail in the so called ‘luxury domain’. Q. To what extent would you ascribe your professional rise and success to a formal management education? I think a formal education prepares you to absorb and rise much more quickly than someone who learns it all by experience. The fashion and garment industry is a real example where, in the past 20 odd years, a traditional master and tailor have been
completely replaced by an NIFT educated technician. The domain which was restricted to heirlooms, handed down from generation to generation, is no longer restricted to that. A combination of good management and industryspecific skill-sets has proved to be invaluable for my career. Q. You decided to study at SDA Bocconi to further your luxury management knowledge. Tell
us how it helped you. The SDA Bocconi programme helped me structure the learning that I had otherwise garnered in my long career. I also understood that the growth of the luxury industry in India could be further speeded up by ensuring availability of quality education at affordable prices. Q. In your opinion, what are the most critical attributes for effective leadership in the business world? I think it is ethics, value, clarity of vision and a flexible approach that can help a business leader. Keeping your ears to the ground via interaction and feedback from your team-mates is another key requirement of the day.
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Q. Your advice to young MBA aspirants who want to be achievers? The best advice I can give is — Believe in yourself. Ideas come around easily – it’s the execution which is a challenge. A
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Even the best businessmen
MAGAZINES
10 BUSINESS
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FAST COMPANY
Forbes magazine provides the most recent news about trends and developments in global business, financial markets and personal finance. Forbes magazine is known for its lists like the “200 Best Small Companies” and “100 Top Celebrities.”
FORBES 26 issues per year
Fortune magazine offers readers an unparalleled look at business and economic news, with incomparable access to business drivers around the globe. Fortune magazine also provides personal and annual lists like the “Most Powerful Women” and “Fortune 500.”
FORTUNE 20 issues per year
WIRED magazine delivers the latest news and reviews on current trends in the world of technology, business and culture. Also find gear, gadget and gizmo reviews and articles on innovative people and ideas in each issue of WIRED magazine.
WIRED 12 issues per year
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The Economist is a global weekly magazine. Each issue of The Economist explores domestic and international issues, business, finance, current affairs, science, technology and the arts.
THE ECONOMIST 51 issues per year
Bloomberg Businessweek magazine offers surprising and timely perspectives on the most important issues of today and unique stories you will not find anywhere else. Your paid subscription to Bloomberg Businessweek also includes free access to the iPad app - Bloomberg Businessweek+.
BLOOMBERG BUSINESSWEEK 50 issues per year
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TOP
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ENTREPRENEUR 12 issues per year
INC. 10 issues per year
Consumer Reports magazine provides readers with an unbiased report on cars, home appliances, electronics, food, health and more. To ensure impartial reporting, Consumer Reports magazine does not accept advertising. Subscription includes the Annual April Auto Issue and a year-end 360-page buying guide.
CONSUMER REPORTS 13 issues per year
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Money magazine helps you reach your financial goals with smart, no-nonsense tips and strategies to make the most of your money.
MONEY 12 issues per year
Fast company magazine is the how-to magazine that keeps managers abreast of emerging business trends and ideas. Fast Company magazine sets the idea agenda for the future of business.
FAST COMPANY 10 issues per year
The magazine for growing companies, Inc. provides managers with the hands-on tools and information needed for growth of small to mid-size companies.
Entrepreneur magazine is the authority for small business owners for starting, managing and growing successful small businesses. Entrepreneur magazine offers inspiration, strategies and expert advice on a variety of small business topics.
Even the best businessmen keep themselves updated on the news regarding global economy and trends. So, as young managers it is imperative for you to do the same. You would need an in-depth analysis from an expert to help you understand the implications. These magazines are best at giving you those key insights.
finance. Forbes magazine is known for its lists like the “200 Best Small Companies” and “100 Top Celebrities.”
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corporate world
Under Mistry, Tata Group reaches for the stars The recently announced long term plan for the Tata Group unveils an ambitious strategy — to become one of the world’s most admired companies. However, such a target naturally comes with its own laundry list of challenges. Dr Suresh Srinivasan
C
yrus Mistry, Chairman of the Tata Group, has recently announced his long term plans for the Tata Group, laying down the path the group will take to enter new businesses. He has also provided an outline in which the group will invest `2,10,000 crore over the next three years into its existing businesses as well as in the new businesses proposed.
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Background The Tata group is an aggregation of more than a hundred companies operating across various sectors spread around the globe, with a total aggregated turnover of more than `6 lakh crore; in terms of size, this translates to more than 5 per cent of India’s economy. Ratan Tata, Cyrus Mistry’s predecessor, had aggressively moved the Tata group from a cautious domestic Indian conglomerate to a multinational global giant, through the acquisition of global majors like Corus (UK-based steel company), Jaguar Land Rover (automotive giant) and a number of other acquisitions. Over the last 20 years, Ratan Tata changed the colour of the group, and today, close to 70 per cent of its total revenue comes in from global operations. This is extremely positive, but has brought in a huge complexity. Now, the task of ensuring these acquisitions are
Advanc’edge MBA September 2014
successful has squarely fallen into the hands of Mistry; this is an enormous challenge, especially in the backdrop of the prolonged global crisis of 2008. The long term strategy The new ambitious long term plan of Cyrus Mistry envisages plans to enter new businesses like aerospace and defence equipment manufacturing. The group also plans to establish a major presence in the finance arena, provided the government regulations are conducive. Recently, the Tata group applied for a banking licence, but quickly withdrew it as there were a number of restrictions with which they were not comfortable. Aside from this, the group will deepen its
infrastructure and retail business. Mistry has also been candid enough to accept that some of its businesses need restructuring and, in the worst case, may have to be divested out. Mistry plans to see the Tata group through to achieving market capitalisation in line with the most admired companies across the world, with an ambitious target of getting at least one fourth of the global population to experience a Tata product or service. He has also targeted the group profitability to significantly improve over the long run. This is a clear signal that the group’s foray is likely to be deepened globally and most of such new investments will most probably flow outside the country.
Cyrus Mistry Chairman, Tata Group
Ambitious roadmap, challenges aplenty Mistry’s plans are extremely ambitious, virtually entrenching the group’s resources across all major sectors of the growing Indian economy. While the vision is not impossible, achieving it would be a real stretch, given the challenges the existing businesses face. Such an aggressive growth in a short span requires middle management capabilities in abundance, and the group needs to work seriously to ensure this is in place — only then will such ambitions bear fruit. Moreover, such an ambitious global penetration requires Tata’s products and services
corporate world to be world class, and the question is how many of their current products and services can be classified under this category. However, the fact remains that the group has lost competitiveness in its companies like Tata Steel and the domestic operations of Tata Motors. So the challenge lies in the resources required to sustain these existing businesses that need a large capital outlay to gain lost ground. The telecom business is uncompetitive and needs tough decisions. Cash will be further required to fund the recently entered business like the Tata-Air Asia and TataSingapore Airlines joint ventures. And ultimately, further cash will be required for the proposed new businesses. Advantage TCS Tata Consultancy Services is the jewel in Tata’s crown. Its market capitalisation is crossing `5 lakh crore, and it is becoming the most valuable company in India. In the technology sector, TCS is far ahead of its competitors — even the aggregate market capitalisation of the next four IT companies do not match up to TCS! The company is also one of the biggest cash contributors to the Tata Group, and will be an important source of cash to fuel its growth engine. However, TCS needs to accomplish a few major acquisitions to enter the big league in the global information technology business. This is important to preserve and enhance its global competitive position, which poses an enormous challenge.
Tata Steel products. Hence, growth in the domestic front could also sharpen Tata Steel’s financial position. With Asian economies also performing well, Tata Steel is also leaving no stone unturned to reap synergies with its Far East steel business.
Tata’s steel hand Tata Steel’s operations are showing signs of a possible turnaround. The prospects of recovery seem high, especially on the back of the recovering global economy. The European recession has been the biggest culprit in worsening Tata Steel’s financial position. Now some relief can be seen on this front — the European economy’s decline has been arrested. Once the European economy starts growing, albeit marginally, the full potential of the synergies that the Tatas are envisaging in their Corus acquisition can be realised. However, the global steel business has matured and a competitive advantage is secured only through larger scale. Tata Steel is still only the fifth largest steel player globally, which means it may have to accomplish more acquisitions to grow larger in scale. This again implies that more funds will be required. With the positive outlook in the Indian market after the new government came in, a number of opportunities are already opening up in the infrastructure and automobile space that are primary customers for
Tata Motors As far as Tata Motors is concerned, the global JLR arm is supporting the uncompetitive domestic passenger car business. Tata Motors has promised that it will allocate substantial resources to revitalise this business by bringing out at least a few new models every year. There is also a challenge to re-launch the Tata Nano, which turned out to be a failed attempt to enter the ultra-low cost compact car segment. However, the truck and heavy vehicle business is doing well, and the company has to invest billions in order to stay competitive and weed out competition from domestic players like Ashok Leyland and Mahindra and overseas players like Volvo. Overall, Mistry’s announcement is a commendable initiative to clearly spell out the long term plan. That the path is fraught with challenges is hardly a surprise, given such an aggressive growth target. The question is how the group’s leadership will come around and handle these challenges. The essence of business is taking risks and rewarding the investors by overcoming the risks, and the Tata Group has a healthy reputation of coming out with flying colours. A
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INDIA INC: AT A GLANCE
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Ebola crisis and economic impact The economy of Sierra Leone has contracted by around 30 per cent as a result of Ebola. More than 1,300 deaths have already been reported. Its potential to spread makes it deadly. Neighbouring countries Guinea and Liberia are also facing a crisis and their economies are seriously affected. Many global companies like Arcelor Mittal have stopped work in the region and are pulling out expats. In Sierra Leone, commercial banks are reducing working hours to reduce contact with clients and the country’s tourism industry has taken a severe hit. Hotels are empty and are retrenching staff. Other countries in the African continent are cautiously watching and are nervous. The World Health Organization (WHO) has declared a warning to scan all outgoing passengers from the affected areas. Developed economies and emerging economies alike are very cautious and are setting up quarantines and testing centres. India has also responded to this threat and African nationals and Indians arriving from Africa are being scanned.
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corporate world
The Indian economy: A forecast of things to come The new Government of India’s measures and promises of commitment to higher growth and lower inflation seem to be holding true at the moment. Current forecasts are positive, although a lot still depends upon the rate of recovery of the global economy. Dr Suresh Srinivasan
T
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he Indian economy is currently at a critical juncture. With the new government coming in, a number of policy issues are being cleared; the potential opening up of the insurance and defence sectors for liberal foreign investments now seems a reality. Domestic inflation also seems to be coming under control. Industrial production is picking up and the impact of the well-crafted Union budget that was recently announced has brought in necessary investor confidence to kick start the Indian economy. At the same time, the global economy is also steadily picking up momentum. In fact, the US economy has recorded the much needed growth missing for many quarters, although the growth in Europe is still flat. Negative geopolitical developments in the Middle East and Russia seem to pose a risk to global recovery. With all these developments panning out, how is the Indian economy poised to move forward? Will the latest monetary policy review by the Reserve Bank of India (RBI) help the Indian economy to pick up growth momentum?
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Inflation targets It is pertinent to discuss inflation ahead of analysing the monetary policy stance of the RBI. The consumer price based inflation (CPI) peaked during the close of the last calendar year to more than 11 per cent, but reduced to around 7 per cent in June. However, the risk of a sharp increase due to a below-average monsoon and the geopolitical developments leading to global crude price increase still remains. Measures to mitigate supply side constraints are also being proactively addressed by the new government, which include curtailing exports of essential food items as well as checking hoarders. All of these are expected to complement the government’s commitment to contain inflation at 6 per cent by early 2016.
Overall, the RBI clearly spelt out its strategy — the objective is to contain inflation, and once that is done, the subsequent strategy will be to ease interest rates that will spur investments and thereby achieve a higher gross domestic product (GDP) growth. Recent monetary policy review and interest rates Even though the economic fundamentals in terms of inflation are still not well positioned, there had been expectations that the RBI would cut interest rates in order to propel the economy back onto the growth path. With the government aggressively pushing for growth, a cut in interest rates was expected to be a silver lining. However, the RBI kept the interest rates (repo rate) at a status quo at 8 per cent, with a marginal drop in statutory liquidity ratio (SLR). This means that inflation is still a threat and needs to be managed before focus can shift towards growth. Repo rates have remained unchanged over the last seven months. With the fear of higher inflation looming, it is fairly clear that it may take a while
corporate world before interest rates will see a decline, possibly by early 2015. However, the government is still very particular that interest rates must drop much ahead of that date in order to move the economy towards higher growth. A series of meetings have now been initiated by the government with the RBI on examining various options to see how the inflation-growth trade-off can be managed.
Innovation: Indian companies The annual “World’s Most Innovative Companies” list compiled by Forbes named US-based cloud computing company Salesforce as the winner. This is the fourth year this company has secured this recognition. Salesforce has been chosen to acknowledge its ability to move into bigger companies, selling to enterprise-class large customers who require more modifications and attention than a small or medium business. Other companies in the top five positions come from pharma, semi conductor and FMCG industries. Five Indian companies are on the list: Hindustan Unilever, ranked 14th, followed by Tata Consultancy Services, Larsen & Toubro, Sun Pharma and Bajaj. Forbes said the innovation premium is a measure of how much investors have bid up the stock price of a company above the value of its existing business based on expectations of future innovative results like new products, services and markets. This shows how much of value these companies have built up through their research and development process, but such initiatives are yet to be monetised and yet to reflect on their financial books. In effect, these companies are likely to perform much better than their peers in the future given their innovation quotient.
ITC to expand into dairy products ITC Ltd, currently in the businesses of cigarettes, FMCG, paper, hotels, retail and information technology, is looking to induct more executive directors into its board, and will expand its consumer goods business by launching dairy products and beverages. One of India’s biggest professionally managed companies, ITC secured shareholder approval to bring in new leadership and expand into such new businesses. India is an expanding market for diary and beverages; although a number of players are already competing in this crowded market, there is still immense potential to satisfy the fast growing middle class whose per capita income is likely to increase in the short to medium term, as the country’s economy also starts nearing double digit growth. Strategy of these companies should be to deliver superior products at the lowest price.
Abolishing of the Planning Commission The Planning Commission of India has been abolished by the new Modi government. Drawn more from the socialistic model, the Planning Commission was a dominant player in India’s long term economic planning. However, the commission has lately got into a number of controversies, which includes their recent claim that anybody above an income level of `33 per day can be considered as “not poor”. This garnered enormous criticism from across sectors and virtually eroded the credibility of reports published by the commission. There were other contentious issues like amounts being spent by the government on the commission and its members. The government is expecting to appoint a new body that will be responsible for long term planning in the country.
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Goods and Service Tax One of the most important reforms the government was targeting was the implementation of the Goods and services tax (GST). Till now, the issue of implementing GST was perceived to be only an issue of timing and the consensus from the state governments was taken for granted as given. With more discussions now being held between the states and the central government, serious issues are being raised by the former. A longer time for discussions, debate and achieving consensus is, therefore, to be expected before the GST can be implemented. There seems to be a fundamental difference of opinion between the state governments and the central government with respect to the GST model proposed by the latter. The financial implications and stakes are quite high, as the GST will replace the indirect taxes, which are currently being shared between the central and state governments in certain proportions. The GST will go to replace such a formula, and a new sharing and control mechanism needs to evolve, which is why the state governments are very touchy on this topic. However, if GST discussions and negotiations do not proceed on the right track towards speedy conclusion, there is likely to be a negative impact.
INDIA INC: AT A GLANCE
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corporate world Economic growth The RBI projects the Indian economy to grow at around 5.5 per cent for the fiscal year ended March 2015. However, the caveat is that any negative impact from a less intensive monsoon and adverse geopolitical developments could seriously put a dent in such targets. Prime Minister Narendra Modi’s initial focus of strengthening the Prime Minister’s Office, bringing order to the country’s bureaucracy and efforts towards bringing in more transparency in the appointment of the judiciary are fundamental changes that will go a long way in improving governance. The Union budget had also signalled the government’s future initiatives by firmly establishing focus areas, and allocating small resources. The stock markets have reacted positively — the Bombay Stock Exchange and the National Stock Exchange have moved significantly higher, demonstrating upbeat investor sentiments. Corporates are now lining up new public offers, and funds are already being raised through financial institutions. Some relief is already being seen in the liquidity positions, which have positively lifted the
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sentiments of the corporates. This is good news! International agencies are also positively viewing the path being laid down by the new government for India’s development agenda. Agencies like the Organization for Economic Cooperation and Development (OECD) opined that India’s growth prospects have turned significantly positive over the last few months. With subdued growth of less than 5 per cent over the last two
years, India is likely to surpass the 5 per cent mark this fiscal year to finish close to 6 per cent. This remains the main focus area for the new government. Global economy The brewing crisis between Russia and Europe over Ukraine is reaching a higher magnitude, potentially resulting in a standoff. With Germany, the
largest of the European economies, still largely dependent on Russia for gas supplies, it seems that a major crisis, in all probabilities, could be averted. Sanctions and asset freezing has substantially impacted Russian business sentiments. To complicate things, the intensification of the Ebola fear originating from West Africa poses a major threat across the globe. This has prompted the World Health Organization (WHO) to highlight India’s under preparedness in handing a potential crisis like this. With all these geopolitical and economic developments, global growth is likely to hover at not more than 3.5 per cent, being marginally higher than the last year. The International M o n e t a r y Fund (IMF) also significantly lowered forecasts of certain key emerging market economies like those of China and Russia, and also of developed economies like France and Italy. Chinese growth is projected to be above 7 per cent. Overall, the outlook seems positive, provided the downside risk s are proactively managed. Given the approach of the new government, the next quarter is expected to see more concrete results. A
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INDIA INC: AT A GLANCE Clean India movement Prime Minister Narendra Modi announced that his government would launch a “Clean India” campaign with the objective that all schools in the country should have toilets, with separate ones for girls. The corporate sector has responded positively to Modi’s Independence Day call. Tata Consultancy Services and Bharti have pledged `100 crore each to build toilets in schools for girls. Coca-Cola said it hoped to further build on its ongoing sanitation programme to construct toilets in schools. These aptly fit into the corporate social responsibility programs of these companies.
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US GDP rebounds The US economy has strongly rebounded in the second quarter of 2014, achieving a GDP growth of 4 per cent as compared to a forecasted 3 per cent growth. Increased inventory building and enhanced consumer spending are being cited as the main drivers for this growth. This is in contrast to the decline in the economy by around 2 per cent during the first quarter of the year. With the economy picking up, consumer spending has gone up by 2.5 per cent. With more jobs being created and with interest rates still low, more investments are also flowing in.
corporate world
Slump-hit Microsoft, Infosys on recovery path? Both Vishal Sikka and Satya Nadella, the men at the helm of Infosys and Microsoft respectively, have a large responsibility on their shoulders — to bring their companies out of the slump they’re in. In this article, we explore a few similarities between the two. Dr Suresh Srinivasan
O
ver the last couple of years, Infosys has been underperforming compared to its peers, and has ceded leadership positions to Tata Consultancy Services (TCS), Wipro, Cognizant Technologies and HCL. Vishal Sikka has now taken over as the company’s chief executive officer CEO and managing director. Similarly Microsoft, which used to be one of the most valuable companies in the world, is now perceived to be steadily losing its competitive edge. Critics have concluded that its recent acquisition of the defunct Nokia’s handset business won’t help Microsoft regain its lost competitiveness in any way either. With India born Satya Nadella having taken over as the CEO of the company six months ago, the big question is whether the company is well poised to win back its lost glory. Can Nadella refocus the company back into the areas of its core strengths and take the
competition like IBM and Apple head on? Interestingly, a number of similarities can be drawn when comparing the positions and challenges of Vishal Sikka and Satya Nadella.
Vishal Sikka CEO and MD of Infosys
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Can Sikka recover the lost competitiveness of Infosys? Will he move the company away from its traditional application development business and refocus resource allocation towards innovation, product and platform development overnight? Will he disturb the apple cart? Bring in disruptive changes? Most unlikely! Likely Changes Sikka has clearly indicated that business will not undergo a drastic transformation immediately. However, over the medium to long run, yes, the focus is likely to shift towards innovation and creating intellectual properties; this will eventually result in new products and platforms that will become the new growth engine. Focus areas will be intelligent applications, analytics and consulting.
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Infosys challenges and Vishal Sikka A number of reasons have been cited for Infosys’s poor performance over the last 15 months — too much of focus away from its core of application development and maintenance business, lack of product development and innovation, etc. To complicate things further, there were a number of senior management exits within a short span, and the company’s employee attrition (i.e., number of staff leaving the company as a percentage of total staff strength) significantly shot up close to 20 per cent, which is substantially high as compared to industry standards. Co-founder Narayana Murthy coming back to the helm did not help the company in a big way, showing some temporary relief only for a few quarters, but the senior management exits continued. It was then that Vishal Sikka’s appointment was announced and the markets cheered his appointment.
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corporate world Sikka being the first nonfounder CEO, there is likely to be a paradigm shift in the governance structure, decision making routines, systems and processes, and a more democratic and professional management is likely to emerge. Too little too late? Will Infosys be able to gain lost ground or is it too late in the game? Sikka feels that nothing much is lost. The world is becoming more and more software driven, and the untapped opportunities in areas like financial services, oil and gas, manufacturing and retail are enormous. These opportunities open the doors and incentivise organizations like Infosys to innovate and venture into new areas. That said, if we take a closer look, the core of Infosys’s problem has been the lack of a credible and strong leadership team, which sharply reduced employee confidence across the levels and resulted in some high profile senior
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Satya Nadella CEO of Microsoft management exits. All of these created a sense of insecurity in the minds of employees and investors, and a perceived weakness quickly took over, resulting in the company’s stock underperforming. All Infosys needed was a strong leader with a clear mandate for long term tenure; and this may very well have happened. Now the question is how Sikka can leverage the developments, build a new team and set out targets for the next five years. Microsoft challenges Microsoft’s story is
slightly
different. It had extensively lagged behind its peers like Google and Apple in various closely related and converging businesses. The 2000s decade has been a period of lack of innovation for Microsoft, which has pushed the company several notches below its peers in terms of market and share value. It lost footage to Google in both the web search engine business as well as mobile operating system business. Continuing to allocate resources to the matured personal computer operating system business that is threatening to dry up swiftly has also restricted resource allocation to innovation initiatives. Microsoft always seemed to focus on monetising the near monopoly position that it had carved out for itself in the personal computer operating system business; this seriously hindered the company’s ability to innovate and enter new businesses in a timely manner. After the recent acquisition of the Nokia handset business, the company is in the process
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INDIA INC: AT A GLANCE India stance on WTO The trade facilitation agreement (TFA) under the World Trade Organization (WTO stipulates that farm subsidies cannot exceed 10 per cent of the value of agricultural production. If it exceeds such a limit, other members have the right to impose trade sanctions on the country. This clause will contradict India’s Food Security Act, which guarantees very cheap food to the poor at extremely low prices. The Indian government also provides subsidies to consumers through the public distribution system, to farmers through its minimum support price programme as well as electricity and fertilizer at almost no cost. WTO’s 10 per cent cap on subsidies is not achievable in India, since the government does not want to deprive the farmers. This has created a standoff between the WTO and India.
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India’s top brands HDFC Bank has been named India’s most valuable brand by Millvard Brown, a brand consultancy firm. Bharti Airtel came in second and State Bank of India ranked third in the study. The top 50 companies come from different categories, which include multinational corporations, private Indian brands and state-owned brands. Service businesses, including banking, telecom and insurance, have received prominent rankings. Financial services stand out, with the 12 banks and insurers in the ranking holding the largest proportion of the total brand value. These brands have built value by successfully achieving scale that includes geographical reach and the diversity of their offerings as well as connecting with Indian consumers.
corporate world of integrating it within its operations, and thousands of employees taken over as part of Nokia are proposed to be retrenched. Concerns over Satya Nadella Although Nadella has been highlighting enterprise solutions to be offered on the cloud through mobile devices as a priority for the future, six months after taking over as the head of Microsoft, critics feel he is yet to clearly set out the future direction of the company. Will Microsoft remain a consumer focused player active in personal computers and games, or will it move towards becoming more of an enterprise focused player? Will it focus on software, its core competency, or will it move aggressively into hardware and handheld device manufacturing? Other concerns have been whether Nadella will be able to lead the company without interference from the board of directors and Bill Gates, the founder of Microsoft.
THE BUSINESS OF INFOSYS IS DYNAMIC BUT NOT MOVING AT A DISRUPTIVE PACE LIKE THAT OF MICROSOFT’S. Interesting comparisons Although both Sikka and Nadella have challenging jobs on their platter, there is a subtle difference in their respective businesses. The business of Infosys is dynamic but not moving at a disruptive pace like that of Microsoft’s. While Infosys needs to maintain momentum in its core business and slowly and steadily venture into a higher degree of innovation, Microsoft needs to get its priority right, ensure that it focuses on the right business and does not hesitate to exit unattractive businesses like Xbox. Where players like Amazon are leaps and
bounds ahead of Microsoft in the cloud business, a number of smaller players are also aggressively targeting entry. How is Microsoft positioned to enter the lucrative enterprise solution business which is being targeted aggressively by competitors like IBM, Accenture and Dell? Especially at a time when Apple too is also jumping onto the bandwagon? These are areas where clarity needs to decisively emerge. On the other hand, Infosys does not seem to have significantly lost competitiveness. The only problem is that strong competitors like TCS have very aggressively captured market share in core business, and are steadily innovating into newer areas like social media, mobility, analytics and cloud. Infosys just needs to keep its course with discipline and strengthen its core business with improved retention of staff and senior management and steadily allocate resources towards product innovation. A
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INDIA INC: AT A GLANCE Amazon raises stake in Indian e-commerce The day after Flipcart raised capital infusion of close to `6,000 crore, Amazon, the US e-commerce giant, declared that it would inject $2 billion into the Indian market to strengthen its Indian e-commerce business. This space in India is heating up, with Indian start-ups like Snapdeal and Jabong investing heavily. Their service levels are also improving and customers are starting to trust transactions over the net; safety, committed delivery and purchase experience has been steeply improving. Players like LensKart are delivering vision spectacles over the net and also provide eye testing at homes to conclude the transaction. Major global players like Alibaba are also eyeing global expansion including India.
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Carbonated soft drinks decline Soda sales are declining as consumers are becoming more sugar free and health conscious. Carbonated soft drink companies are diversifying away from soda drinks; Coca-Cola took a $2.5 billion stake in Monster Energy, which produces drinks with high energy but contains less sugar. It earlier invested and branched out into bottled water, flavoured juices and health beverages like Vitamin Water. Pepsico Inc. also diversified much earlier into breakfast cereals and other healthy food businesses. All these major soda players are steadily decreasing their carbonated soft drink propor tion of their business over the years, and the initiative has intensified now.
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study hour
Are you a Brainiac? In this section, we shall explore several different types of questions from the various areas of entrance exams like the CAT, CET, GMAT, etc, and how to best solve them.
Quant 1.
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How many pairs of integers (x, y) exist such that x² + 4y² < 100? 1) 95 2) 90 3) 159 4) 180 Solution Both x² and 4y² are non-negative and hence the maximum value each of them can take is 100. Now consider 4y² < 100. Hence y can range from -5 to +5: For y = 0, x² < 100 i.e x can range from -10 to +10 (21 values) For y = ±1, x² < 96 i.e x can range from -9 to +9 (19 values) For y = ±2, x² < 84 i.e x can range from -9 to +9 (19 values) For y = ±3, x² < 64 i.e x can range from -8 to +8 (17 values) For y = ±4, x² < 36 i.e x can range from -6 to +6 (13 values) For y = ±5, x² < 0 i.e x can take only the value 0 (1 value) Thus, overall we can have 21 + (19 x2) + (19x2) + (17x2) + (13x2) + (1x2) = 159 combinations. Hence, (2).
2. A kite-shaped quadrilateral is cut from a circular sheet of paper such that the vertices of the kite lie on the circumference of the circle. If the lengths of the sides of the kite are in the ratio 3 : 3 : 4 : 4, then what percentage of the area of the circular sheet of paper remains after the kite has been cut out? 1) 53% 2) 47% 3) 39% 4) 42%
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By symmetry, the longer diagonal AC of the kite is the diameter of the circular sheet. The lengths of the sides of the kite are in the ratio 3 : 3 : 4 : 4. Let AB = 3x, then BC = 4x A(ABCD) = 2 × × AB × BC = 3x × 4x = 12x² and the area of the circular sheet =πr² = × × = x²
The required percentage = 100 – =
× 100 =
Hence, [3].
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.
× 100
study hour
Following questions is followed by two statements, I and II. Mark [1) if the question can be answered using statement I alone but not using II alone Mark [2) if the question can be answered using statement II alone but not using I alone Mark [3) if the question can be answered using either statement alone Mark [4) if the question can be answered using statements I and II together but not using either alone Mark [5) if the question cannot be answered even by using both statements I and II together
3. Sanjay covers a distance of 20 km in a stream flowing at 3 kmph. How long does Sanjay take to complete the trip? I. During the trip, Sanjay covers a distance of 14 km relative to the water II. During the trip, Sanjay travels at 7 kmph relative to the water
Statement I tells us that Sanjay covers 14 km relative to the water i.e. the water must have covered the remaining 20 – 14 = 6 km, which would take 2 hours. Statement II is not sufficient, as we do not know whether Sanjay is moving in the same direction as the flow or in the opposite direction – in the first case the answer would be 2 hours, in the second it would be 5 hours. Hence, (1).
Verbal DIRECTIONS: In the following question, there are four sentences. Each sentence has a pair of words that are italicised and highlighted. Select the most appropriate words (A or B) to form correct sentences. The sentences are followed by options that indicate the words, which may be selected to correctly complete the set of sentences. From the options given, choose the most appropriate ones. 1.
After a short stent (A) / stint (B) living on a farm, he decided he preferred the city after all. Don’t take him too seriously – he was just trying to be facetious (A) / factitious (B). He occasionally alluded (A) / eluded (B) to his unhappy childhood, but refused to elaborate further on it. The doctors told him that he was in an imminent (A) / immanent (B) danger of a heart attack if he didn’t change his lifestyle immediately. 1] BAAA 2] BBBA 3] BBAB 4] ABAB
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Explanation: A ‘stent’ is a medical tool, while a ‘stint’ is a period of time; so obviously the latter is the right word in the first sentence. ‘Facetious’ means humorous or non-serious, while ‘factitious’ means artificial or contrived, so the former fits better in the second sentence. To ‘allude’ to something is to refer to it indirectly, so it fits the third sentence, while ‘elude’, which means avoid, contradicts the desired meaning. ‘Imminent’ means likely to occur at any moment, so it fits the last sentence; ‘immanent’ means inherent, and is used mostly in a philosophical context. Therefore, the correct order is BAAA. Hence, [1]. DIRECTIONS: In the following question, there are sentences that form a paragraph. Identify the sentence(s) or part(s) of sentence(s) that is/are correct in terms of grammar and usage (including spelling, punctuation and logical consistency). Then, choose the most appropriate option.
Explanation: Statement A incorrectly uses ‘than’ instead of ‘as’. ‘Powerfully’ in C is wrong – it should be in the adjective form (‘powerful’), as it describes ‘solar storm’. The punctuation in ‘two minute’s time’ in D is also wrong - the correct form should be ‘two minutes’ time’ as ‘minutes’ is a plural word. Only statements B and E are correct. Hence, [2].
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A. No solar superstorm as powerful than the 1859 Carrington event has occurred since, B. so it is difficult to calculate what impact a comparable storm might have on today’s more wired world. C. A hint came with the Quebec blackout of March 13, 1989, when a solar storm roughly a third less powerfully than the Carrington event D. knocked out the power grid serving more than six million customers in less than two minute’s time. E. A Carrington-class storm could fry more transformers than the power companies keep stockpiled, leaving millions without essential services for months. 1] A and C 2] B and E 3] A, B and D 4] C, D and E
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study hour
Violin virtuoso at the metro No one knew it, but the fiddler standing against a bare wall outside the Metro in an indoor arcade at the top of the escalators was one of the finest classical musicians in the world, playing some of the most elegant music ever written, on one of the most valuable violins ever made. His performance was arranged by The Washington Post as an experiment in context, perception and priorities -- as well as an unblinking assessment of public taste: In a banal setting at an inconvenient time, would beauty transcend? The musician did not play popular tunes whose familiarity alone might have drawn interest. That was not the test. These were masterpieces that have endured for centuries on their brilliance alone, soaring music befitting the grandeur of cathedrals and concert halls. The acoustics proved surprisingly kind. Though the arcade is of utilitarian design, a buffer between the
WORD DOSE
Metro escalator and the outdoors, it somehow caught the sound and bounced it back round and resonant.
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The violin is an instrument that is said to be much like the human voice, and in this musician’s masterly hands, it sobbed and laughed and sang -- ecstatic, sorrowful, importuning, adoring, flirtatious, castigating, playful, romancing, merry, triumphal, sumptuous. An excerpt from Pulitzer prize-winning article by Gene Weingarten
MAT CH T HE W O R D S W IT H T H E IR M EA NING S 1. virtuoso – (vur-choo-oh-soh) (n)
8. endured - (en-dyoo-r-ed) (v)
2. fiddler – (fid-ler) (n)
9. grandeur - (gran-joo-r) (n)
14. castigating - (kas-ti-geyt-ing) (v)
3. arcade – (ahr-keyd) (n)
10. acoustics - (uh-koo-stiks) (n)
15. triumphal - (trahy-uhm-fuhl) (adj)
4. context - (kon-tekst) (n)
11. utilitarian - (yoo-til-i-tair-ee-uhn) (adj)
16. sumptuous - (suhmp-choo-uhs) (adj)
5. perception - (per-sep-shuhn) (n) 6. banal - (beyn-nahl) (adj) 7. transcend - (tran-send) (v)
a. – A covered passage with arches or shops along one or both sides. b. – So lacking in originality as to be obvious and boring. c. – The properties or qualities of a room or building that determine how sound is transmitted in it. d. – A person extremely skilled at doing something, especially playing a musical instrument. e. – Made, carried out, or used in celebration of a great victory or achievement.
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ing) (v)
12. resonant - (rez-uh-nuh-nt) (adj) 13. importuning - (im-pawr-chuhn-
f. – the set of circumstances or facts that surround a particular event, situation, etc. g. – Splendid and expensivelooking. h. – Designed to be useful or practical rather than attractive. i. – The ability to see, hear, or become aware of something through the senses. j. – Remained in existence; continued to exist for a long time. k. – A person who plays the violin,
l. m.
n. o. p.
especially one who plays folk music. – Go beyond range or limits, surpass. – Splendour and impressiveness, especially of appearance or style. – Deep, clear, and continuing to sound or reverberate. – begging for (something) urgently or persistently. – Reprimanding (someone) severely.
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Communication Skills Builder + Quantitative Skills Builder + Enhance Your English Proficiency
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A quiz to boost your General Knowledge 1. On August 5, 2014, Justice Manjula Chellur took oath as the first woman chief justice of which high court? a. Kerala b. Delhi c. Mumbai d. Calcutta 2. Name the second-largest private sector bank in India which opened its branch in Dubai in the first week of August 2014? a. ICICI b. Yes c. HDFC d. Axis 36
3. Who among the following was appointed the deputy National Security Adviser of India on August 4, 2014? a. Nehchal Sandhu b. Ajit Kumar Doval c. Arvind Gupta d. Shivshankar Menon
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4. Name the famous cartoonist and creator of the lovable comic character Chacha Chaudhary who died on August 6, 2014? a. Ravi Shankar b. Pran Kumar Sharma c. Chandra Sharma d. P Sukumar 5. Footballer Xavi Hernandez who recently announced his retirement from international matches is from which country? a. Spain b. Brazil c. Italy d. Argentina
Advanc’edge MBA September 2014
6. Last month, the Union Cabinet allowed foreign investment in Railways infrastructure for the first time and it is now at ___ per cent. a. 100 b. 50 c. 49 d. 52 7. According to the amendments passed on the Juvenile Justice Act, harsher punishment for juveniles above what age is now possible? a. 17 b. 16 c. 18 d. 15 8. According to a recent report by a market research firm, which mobile manufacturer has replaced Samsung to become the leading mobile phone vendor in India? a. Apple b. Nokia c. Micromax d. Lenovo 9. Kamla Beniwal, who was recently sacked from her post, was the governor of which state? a. Mizoram b. Gujarat c. Maharashtra d. Kerala 10. The government has recently launched a scheme for providing interest subsidy on educational loans for overseas studies to students belonging to the notified minority communities. Name that scheme.
a. Pardesh Padho b. Seekho Pardesh c. Seekha aur Kamao d. Padho Pardesh
11. In which state of India is the world’s tallest railway bridge being built? a. Manipur b. Sikkim c. Uttar Pradesh d. Himachal Pradesh 12. The World Health Organization (WHO) recently declared which disease as an international health emergency? a. Swine Flu b. Plague c. Ebola d. Bird Flu 13. England led the medal tally with 174 medals in the recently concluded Commonwealth games held in Glasgow. India came 5th with a total of ___ medals. a. 53 b. 63 c. 58 d. 64 14. Who was recently presented the ‘Business Leader of the Year’ award in AIMA Managing India Awards 2014? a. Ratan Tata b. Adi Godrej c. Azim Premji d. Cyrus Mistry 15. According to the latest energy efficiency ranking, which among the following countries has been ranked no.1?
study hour
a. India b. Switzerland c. Sweden d. Germany
16. Haider al-Abadi was recently named as the new prime minister of _______________. a. Iraq b. Iran c. Afghanistan d. Egypt 17. Tata Sons-Singapore Airlines joint venture on August 11, 2014 unveiled the brand name of its new airline as? a. AirAsia b. Vistara c. Varuna d. Air Star 18. Name the Oscar Winning veteran actor who was found dead on August 12, 2014? a. Lauren Bacall b. Philip Seymour Hoffman c. Eli Wallach d. Robin Williams 19. Which one of the following cities has been chosen as the ad hoc capital of Andhra Pradesh? a. Vishakapatnam b. Tirupati c. Vijaywada d. Kurnool
21. Recently (August 2014), which among the following software
22. Which among the following countries is the venue for the 2014 Youth Olympic Games? a. England b. Australia c. Russia d. China 23. India’s first “Skill Development” centre was recently inaugurated in which of the following states? a. Karnataka b. Madhya Pradesh c. Rajasthan d. Tamil Nadu 24. For the first time in history, a woman has won the Fields Medal, known as the Nobel Prize for Mathematics, this year. Name the mathematician. a. Subhash Khot b. Maryam Mirzakhani c. Manjul Bhargava d. Artur Avila 25. Who was awarded the Ashok Chakra, the country’s highest gallantry award on August 15, 2014? a. Major Mukund Varadarajan b. Sepoy Vikram Singh c. Major Abhishek Kumar d. Major Satnam Singh 26. Prime Minister Narendra Modi dedicated two hydropower projects to the nation on August 12, 2014. In which state are these plants located? a. Uttar Pradesh b. Rajasthan c. West Bengal d. Jammu & Kashmir
27. Who defeated Roger Federer to win the Rogers Cup 2014 on August 10, 2014? a. Rafael Nadal b. Novak Djokovic c. Jo-Wilfried Tsonga d. Stanislas Wawrinka 28. Prime Minister Narendra Modi on August 16, 2014 commissioned the country’s largest indigenously built warship called __________. a. INS Kirti b. INS Kolkata c. INS Vikramaditya d. INS Arihant 29. On the occasion of our 68th Independence Day, the Prime Minister launched the ‘Pradhan Mantri Jan Dhan Yojana’ to help the poor open bank accounts which come with an insurance cover of ________? a. `2.5 lakh b. `2 lakh c. `1.5 lakh d. `1 lakh
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30. Recently the Supreme Court dismissed the PIL seeking a release ban on which actor’s upcoming film for promoting vulgarity? a. Emraan Hashmi b. Akshay Kumar c. Aamir Khan d. Salman Khan 31. Who recently took charge as the Vice Chief of the Indian Army? a. Philip Campose b. Bikram Singh c. Dalbir Singh Suhag d. V K Singh 32. Margaret Alva has recently completed her term as the governor of which state? a. Maharshtra b. Rajasthan c. Kerala d. West Bengal
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20. According to the latest (2014) report, India ranked fifth among top 10 wind power producers in the world. Which are the world’s top four wind power producing countries? a. China, Brazil, Germany, France b. China, US, Brazil and Canada c. China, US, Brazil, South Africa d. South Africa, Canada, China, Brazil
firms pledged `100 crore toward financing hygienic sanitation facilities for girl students across 10,000 schools? a. TCS b. Wipro c. Infosys d. IBM
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study hour 33. Recently which Indian became the world’s No.1 Test allrounder? a. Ravindra Jadeja b. Bhuvneshwar Kumar c. Stuart Binny d. Ravichandran Ashwin
39. Who has been named India’s Director of Cricket for the ODI matches against England?
a. Kapil Dev b. Sunil Gavaskar c. Rahul Dravid d. Ravi Shastri
34. Iran-140 Sepahan Air passenger plane crashed on August 10, 2014 near which airport? a. Mehrabad Airport b. Iran Airport c. Iraq Airport d. Tehran Airport 35. In July 2014, who became the most popular person on Facebook with over a 100 million ‘likes’, the most for any public figure? a. Jennifer Lopez b. Sachin Tendulkar c. Shakira d. David Beckham 38
36. Consulting firm Brand Finance India has released its annual study, which states that _________ is India’s most valuable brand. a. Reliance b. LIC c. SBI d. Tata Group
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37. The ‘ice bucket challenge’ that celebrities have made popular on social networking sites is in support of which disease? a. Amyotrophic lateral sclerosis b. Lupus c. Multiple Sclerosis d. Adenocarcinoma 38. Name the man all set to become the world’s youngest F1 driver when he starts competing in 2015. a. Mike Thackwell b. Fernando Alonso c. Max Verstappen d. Esteban Tuero
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How to Play Fill in the grid so that every horizontal row, every vertical column and every 3x3 box contains the digits 1-9, without repeating the numbers in the same row, column or box. You can’t change the digits already given in the grid. Every puzzle has one solution. Hint: Don’t fill in numbers at random. While filling a particular square, write numbers 1-9 on a pad and start eliminating those numbers that already appear in the same row, column or 3x3 box.
ANSWERS SuDoKu
GLOBESCAN 1.d
2. c
3. c
4. b
5. a
6. a
7. b
8. c
9. a
10. d
11. a
12.c
15. d 16. a
17. b
18. d
19. c 20. b 21. a 22. d 23. c
24. b
13. d 14. b
25. a 26. d 27. c 28. b 29. d 30. c 31. a 32. b 33. d 34. a
35. c
36. d
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37.a 38.c 39.d
1.d
WORD DOSE
2.k
3.a
4.f
5.i
6.b
7.l 8.j 9.m 10.c 11.h 12.n 13.o 14.p 15.e 16.g
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Total pages 40