VOLUME 20 ISSUE 1
THE STRATEGY WALL
THE STRATEGY AND CONSULTING CLUB OF IIM ROHTAK
REITs & InvITs – The Emerging Financing Instruments for an Emerging India Partner or Perish: Traditional Banking in the age of FinTech
“The reason most people never reach their goals is that they don’t define them, or ever seriously consider them as believable or achievable. Winners can tell you where they are going, what they plan to do along the way, and who will be sharing the adventure with them” — Denis Watley
Contents 01
REITs & InvITs – The Emerging Financing Instruments for an Emerging India
04
Partner or Perish: Traditional Banking in the age of FinTech
07
Should An Organization pay for its employees' education?
10
Omnichannel Marketing
13
Maintaining Competitiveness through Strategic Alliances
15
Learnings from 2020 Drawing Insights & Inspirations from The year of the Pandemic
REITS & INVITS – THE EMERGING FINANCING INSTRUMENTS FOR AN EMERGING INDIA NISHANT KUMAR SATYAM, INDIAN INSTITUTE OF MANAGEMENT INDORE “In Investing, what is Comfortable is Rarely Profitable.” –Robert Arnott Introduction to Alternative Investing
up for grabs.
With their ever-increasing appetite for risk, the Indian investor
One of the most exciting avenues where alternative
is on the lookout to try newer options while investing. The
investing has set-up-shop in is the domain of real estate;
conventional stock, bond and cash investment doesn't
considered as one of the most resilient, secure and
interest them anymore. Calculated Risk-taking through
trustworthy forms of investment. Quite ironically, Real
'Alternative Investments', has become the hottest trend of the
estate investments indeed are one of the most traditional
market. The Indian investor has a bouquet of investment
and diversification-friendly investment options out there.
options to choose from-- private equity, IP, land, venture
And now talking about the most recent innovation in this
capital, and private placement debt, real estate -- they are all
field we have REITs and InvITs.
PAGE 1
In today’s world, investors look for constant high returns
Introducing REITs and InvITs:
as well as capital preservation. Apart from the traditional
A REIT is a real estate investment trust. In its simplest
assets of equity, debt and gold, these benefits are also
form, it pools money from investors and buys large
offered through Real Estate, especially in the form of
commercial properties. Often, these properties are rent-
REITs and InvITs.
producing
The unique structure of this new asset class (which
buildings/parks, malls etc.). The total rent received by all
essentially simplifies real estate investments) endows it
the properties under the REIT comprises its rental
with benefits that are lacking in other traditional assets.
income. By government mandate, REITs are required to
The fact that they offer a steady dividend income, and
distribute 90% of their rental income to their investors, in
guarantee long-term capital appreciation, especially in
the form of dividends. This usually translates into an
rapidly developing countries such as India where real
annual return of 8%+. Apart from the dividend income,
estate has always been a booming sector, makes them a
the property also appreciates in value over time, since
very lucrative opportunity; especially for investors who are
these are mostly premium properties, in the most prime
looking to diversify their portfolio while maintaining
locations. This translates into long-term capital income
decent returns, and are looking for assets which have low
for the investor, apart from the steady inflow of rental
correlation with the broader equity, debt and global
dividends. The critical feature of REIT is the accessibility
markets, REITs and InvITs seem to be a perfect choice.
that it provides to investors, in terms of liquidity, which
These instruments have made it possible for many small
has always plagued traditional real estate investments.
investors to have a share of India’s booming real estate
REIT units are priced at a fraction of the actual cost of the
sector pie, which was earlier out of bounds for them,
property and can be freely traded on the stock
given the large ticket sizes involved.
exchanges.
Liquidity has increased manifold since the introduction of
InvITs are Infrastructure Investment Trusts, and they are
REITs and InvITs. Despite its multiple advantages, these
merely a modified version of REITs, as they solely focus
instruments have become available for the Indian
on the infrastructure sector. Assets such as roads, gas
investor, only in recent times. The first REIT to be
pipelines, power transmission etc. form the core portfolio
registered and traded in India was the Embassy Office
of InvITs. They provide similar advantages as REITs, albeit
Parks REIT. It was launched in 2019 and was backed by
in a different sector. Dividend-income, long-term capital
the US-based Blackstone group. InvITs though, had an
appreciation and diversification are the key benefits
earlier debut, with IRB’s InvIT debuting in 2017.
offered by them.
in
nature
(example
-
retail
office
PAGE 2
REITs and InvITs--Advantages over other asset classes:
investment vehicle owing to the high levels of ambiguity surrounding their operations and governance structure.
A Risk Mitigator:
But recent mandates by the Reserve Bank have gone a
From a supplier perspective, an essential aspect of REITs
long way in dictating the regime under which REITs &
& InvITs is that the estates which constitute their
InvITs may operate, clearly defining the necessary
underlying assets are exempted from being listed on
regulations. The most prominent amongst these is the
balance sheets. This allows the REIT provider to focus on
mandate to necessarily pass at least 90% of their rental
infrastructure operations and do away with incorporating
income to their investors, making the end-investors the
tedious calculations and valuations on their company
party that benefits the most from such an investment.
finances.
Hence,
such
an
exemption,
which
is
a
characteristic of this investment-innovation, enhances
REITs v. ‘Real’ Real Estate:
the company’s return-on-investments and considerably mitigates risk--the benefits of which are then directly
Now the last leg of our comparison focuses on whether
passed on to the subscribers of the fund.
REITs are any better than investments in physical real estates. Well, the truth is that REITs & InvITs both offer a
A Positive Externality:
reliable and more liquid path for investments in real
Besides being one of the few investment-vehicles whose
estate. They give a prime opportunity to their investors to
quality improves by their mere existence, REITs offer a
participate in and reap benefits from the growth of real
medium of funding infra-development projects through
estate assets without engaging in the hassles of buying
equity instead of debt. Now, we all know how the infra-
the ‘real’ real-estate, i.e., the actual physical asset. In
sector is the backbone of the Indian economy or any
essence, they provide a medium to hold real estate in
economy for that matter. Hence, they have a positive
Demat form. The added liquidity of these assets is
externality embedded in them, such that investment in
another boon for investors willing to diversify into the
REITs can fast-track long-drawn and stagnant projects,
real-estate sector.
which can benefit other sectors of the economy, thereby
Additionally, the interest gains and rental gains that
creating a domino effect and improving overall market
REITs generate are not taxable, and all gains can be
sentiments. Therefore, investments in REITs become a
retained by the investor, which is a significant advantage
game-of-time, whereby rightly timed investments, in not
when contrasted against taxable non-capital-gains that
just REITs but also their dependent sectors, can multiply
physical assets, or even debt or equity funds generate.
target portfolios, manifold.
Concluding, REITs and InvITs offer smaller investors an excellent opportunity to jump in on the booming Indian
Consistent High Returns:
real estate bandwagon, and reap the benefits of
Now coming to the most interesting aspect about REITs
diversification, a steady rental income and long-term
and what makes them so lucrative. Up until the
capital appreciation. The non-taxability of the returns, as
beginning of last year, they were deemed a failed
well as the surety vis-a-vis the rental-dividend payout, makes it a safe haven for investors who are looking for decent returns, without compromising on their capital safety. However, real-estate is not everyone’s cup of tea. Investors must be mindful of their risk-appetite, longterm goals, liquidity position and asset class-mix, before deciding whether or not to invest in REITs and InvITs. But from a long-term perspective, these instruments offer a great opportunity of diversifying one’s portfolio into uncorrelated assets, apart from the usual mainstays of equity and debt.
PAGE 3
PARTNER OR PERISH: TRADITIONAL BANKING IN THE AGE OF FINTECH ROHIT VOLETI, INTERNATIONAL MANAGEMENT INSTITUTE, NEW DELHI “A crisis is a terrible thing to waste.” ” – Paul Romer Every crisis brings to us an opportunity to reimagine the
as financial intermediaries in a digital future that will
way we operate in this dynamic world. Until yesterday,
be driven by personalisation, enhanced experience and
most of us would have believed that for traditional
transparency. It is under this context that technology
banking
plays a pivotal role in building upon the inherent
as
we
know
it
to
embrace
digital
transformation, it would take a decade at the least. The
strengths of banks in delivering value.
banking industry over the past few years has witnessed changing
customer
expectations
and
growing
competition from fintech companies and technological leaders who have forayed into the banking space, leaving banks with no choice but to embrace digital technology. The COVID-19 pandemic has not only catalysed this change but has also depicted that inculcating
technological
practices
is
critical
to
continuity, consistency and resilience. For a world that is recovering from the adverse effects of the pandemic, banks which are at the nerve center of global economies must collaborate with technology providers such as fintechs in shaping the future of economic growth. Leveraging
existing
strengths
to
unlock
future
potential Banks have sustained desirable levels of stability and continue to command a high level of trust and confidence among customers. This advantage must be leveraged so that banks remain relevant to customers
Win-Win With the ever-increasing digital presence and internet usage across all major economies in the world, banks can no longer remain aloof to the new realities of the world. Given that the banking and financial services industry is highly regulated, it limits the potential and scope of fintech companies in making significant inroads into the banking space.
PAGE4
●
Physical branches could continue to remain
critical for the legacy services of the banks but it is important to take note of the declining traffic in these branches,
which
poses
a
question
on
cost-
effectiveness for traditional banks. By partnering with fintech companies, banks can create models that deliver both physical as well as digital banking to its customers,
which
would
elevate
the
customer
experience to a whole new level.
●
Fintech companies bring innovative offerings to the
table but lack the expertise and competence in managing the entire financial life cycle. This is where traditional banks could offer their valuable experience in managing
customer
relationships
across
diverse
segments and channels. Together, such collaborations can capture a wider market across geographies. For example, Commerzbank of Germany had collaborated
SOURCE: DELOITTE DESCRIPTION: NEW-AGE BANKING ECOSYSTEM
with IDnow for a mobile-app offering banking services, which had resulted in a 50% increase in customer conversion for the bank.
●
●
The emergence of open banking and application
programme interface (API) based ecosystems provide
Strategic synergies between fintechs and traditional
immense opportunities for collaborations between
banks provide mutual benefits to both as it facilitates
banks and fintechs in such that they are a step
the creation of omnichannel customer offerings that
forward in the journey of Banking as a Service (BaaS) -
would increase overall profitability. A case in point
ecosystem of third-party service providers access to
would be the example of CurrencyCloud providing a
data
payment engine to Fidor Bank, which was incorporated
products/services. For example, HSBC’s partnership
into their service model with no requirement for any
with Tradeshift enables the bank use the Tradeshift
extra infrastructure, which resulted in significant forex
platform
cost reduction for their customers.
thereby reducing the payment cycle.
●
to
generate
in
insights
automatically
and
deliver
generating
unique
invoices,
Fintechs have the first mover advantage over
traditional banks in prioritising user experience and the
Challenges
overall customer journey, which has led to rapid growth in their customer base and has enabled them capture
Despite the fact that traditional banks and fintech
market share. For example, major global traditional
companies are approaching a natural convergence in
banks such as ANZ and Westpac have made investments
catering to the needs of the new digital world, there
in a fintech startup - ‘Data Republic’, which provided a
are certain factors that impose a challenge to their
data hub for them through which their enterprise
success.
customers could save, share and analyse data under a safe and secure environment.
PAGE 5
●
Legacy issues faced by traditional banks are
difficult to overcome as there are deep rooted systems and processes that hamper the flexibility of these banks.
●
Regulatory and compliance norms for the
banking industry imposed by governments across different nations poses a challenge on the extent and speed at which new collaborations can be made and brought into action.
●
Security and privacy management becomes
critical to win over the confidence of customers who are otherwise wary of digital transactions. Any threat
On
the
whole,
it
can
be
understood
that
collaborations between traditional banks and fintech companies would result in enhanced profitability, reduction in costs and greater value. The coming decade would witness path-breaking transformations in the financial industry and the success of banks would depend on their ability to forge strategic partnerships. The way ahead for banks to thrive in a digital market context would be to drive innovation through technology, for which they must build a comprehensive
ecosystem
that
benefits
all
stakeholders.
of data theft or security breaches could impose a significant damage to the reputation of these banks.
SOURCE: DELOITTE DESCRIPTION: REVENUE GENERATION OF MAJOR COMPANIES THROUGH APIS
PAGE 6
SHOULD AN ORGANISATION PAY FOR ITS EMPLOYEES’ EDUCATION? VANSHIKA ARORA, UNIVERSITY OF DELHI
“COMPETENT HUMAN RESOURCE IS TANTAMOUNT TO THE SUPREMEMOST ASSET FOR AN ORGANIZATION” Post the industrial revolution (late1700s) emerged
perceptible that for the long term growth of an
the Human Resource Management methodology
organization, hard skills of employees are as imperative
wherein the emphasis was laid on education and
as their soft skills. An educated employee is more likely
holistic development of the employees in addition
to contribute effectively and efficiently to the growth
to the process of recruitment and selection. This very
and production of the goods and services of a company
idea marked the commencement of the change in
than an uneducated or less educated employee.
the role of an employer: from an administrator to a
To elucidate the chain effect: if the employees are
facilitator for his/her employees.
educated, they tend to become highly enthused at the workplace. This would mark the up gradation of
a
WHAT'S IN IT FOR THE EMPLOYER?
company’s output and a downfall in the cost of
As per various statistical observations, it has been
production of the same. This is because of the
PAGE 7
enhancement in the methodology of the employees’
considerably. Moreover, treated workers’ retention was
utilisation of company’s resources in the production
three percentage points higher during the program.
cycle, as which would tend to gradually attain
Additionally, there was a significant spill over effect, with
optimization. This would lead to a boost in the turnover
untrained workers on the same production lines as
as
the
trainees being 6.5 percentage points more productive
organization. Furthermore, employee’s turnover would
than control workers and working 7.8 days more over the
tend to fall with the passage of time due to an increase
duration of the program.
well
as
the
business
development
of
in the retention period of the existing employees as for the fact that there would be an escalation in their performance.
AN IDEALPLAN FOR EMPLOYEES’ EDUCATION “Education when supplemented by consistency yields maximum”
An organization thus would have a reduced duration of the operating cycle, which would allow it to have a better compliance in meeting the customers’ demands on time as well as with quality. This would lead the company to have a strong customer base and increase in lead sales as well as a fine reputation in the industry. As
for
the
conclusion,
an
initial
investment
in
edification of the employees would possibly make a
Organizations
can
have
compulsory
inclusion
of
educational programmes along with the induction training. This would allow the employees to gain a high level of productivity at the time of reporting on duty itself.
Also,
having
included
various
advancement
courses which are to be taken up by employees as a part of their ‘salary and wages in kind’ can possibly prove
significant hike in the stock prices of a company due to
highly effective, keeping in mind the idea to cope up
its thriving nature, which would moreover allow it to
with the modernization occurring around in the external
achieve its long term financial goal of maximizing
organizational environment. To keep a track of the
shareholders’ wealth.
progress, employees can undertake aptitude tests at regular intervals so as to have a record of their
P.A.C.E EXPERIMENT
performance
In July 2013, an experiment named ‘randomized
improvement reflects. Employees should also be given
controlled trial’ was conducted in five garment factories
knowledge with respect to the other areas than that of
situated in Bangalore, India. The experiment laid
their own field .In any business when every employee
concern on P.A.C.E training: Personal Advancement and
must be able to wear elite hats, this builds a strong
Career Enhancement training wherein the female
foundation.
workforce of the factories underwent a rigorous
comfortable and competent in all the ins and outs of the
educational cum soft skill development course for a
corporation, in addition to their specific areas of focus.
and
Every
areas
member
wherein
of
the
the
need
team
will
of
be
period of nine months in continuation. . P.A.C.E. teaches communication, time management, decision making, problem solving, and financial literacy through weekly group sessions in the workplace. The experiment was designed to determine both whether workers benefit from the training and whether it pays for firms to invest in such training for their workers. The upshot is as follows: These factories showed a 250 % hike in the net rate of return. They were more productive by seven percentage points post-training,
CONCLUSION “The competition to hire the best would prevail, but the companies that give extra flexibility to their employees would have an extra edge in this” -Mr. BILL GATES As for the conclusion, all the reasons suffice the fact that employees’ education does not only prove to be a benefactor for them, but also for the employer in a much more efficient way. Thus the need for paying for employees’ education prevails ubiquitously.
and the average complexity of the sewing operations to which they were assigned rose
PAGE 8
This is a clear demand of the people to see their companies invest in technologies. In long run businesses will need to be adaptable and come up with innovative ideas to rebuild workplace and eventually thrive again in the post pandemic world. Hence an organisation may choose to adopt hybrid or the hub and spoke model, but one thing is very clear
that
work
environments
is
dynamic.
Workplaces evolve and crisis force organizations to evolve quicker. Covid-19 has presented a highly obstructive crisis to the traditional work place, stopping employees from going to the offices. It also depends on which industry which model can work. The workplaces have evolved over generations to create the environment for organisations to optimise collaboration, innovation and productivity through new design, technology and policy. Although in this new model of hub and spoke we cannot represent our older workplace but it helps in bringing flexibility in the office and growth in remote work style. Moreover right balance between physical contact and the virtual collaboration can be achieved, by the right technologies. Organization need to help employees adapt the change that is happening in every aspect and in a true sense be future ready for any challenges.
PAGE 9
OMNICHANNEL MARKETING SHREYA JAIN.SHRUTI GAUTAM,GREAT LAKES INSTITUTE OF MANAGEMENT, GUARGON IToday,
with
the
path
of
innovative
solutions,
All these channels work together and offer the
technology has become a non-negotiable part of our
customer an experience throughout the purchase
daily life. There seems to be a very thin line between
journey as well as after sales services.
what one can do online and offline.
Omnichannel marketing strategy is the up-and-
In the world of digital, more than 80% of shoppers
coming trend for every marketer and sooner than
hop across online and offline channels while they
later it will become a necessity for all the brick-
shop for their favourites or regular items. Sometimes,
and-mortar stores. There are several benefits for
people make online purchases even while standing in
adopting this omnichannel view some of which
the queues of retail stores. This mega trend of online
can be:
shopping has lead brands from big to small to
Every customer purchase from the brand he
recognize the power of Omnichannel Marketing. As
likes and values. An omnichannel can provide
every brand needs to stay on top and earn huge
consistency across all the platforms and can
profits, they have realized that they need to offer
also
seamless
experiences which can eventually lead to
customer
experience
across
multiple
offer
customers
with
personalized
channels.
customer retention and loyalty towards the
Omnichannel is a multichannel marketing approach
brands.
to give the customer a seamless experience using an
A consistent customer experience can increase
integrated shopping approach with online and offline.
the likelihood of brand recall from every
Every channel in the marketing mix is well integrated
customer and can also provide positive work of
and the customer can shop from anywhere, whether a
mouth promotion. This can increase the
brick-and-mortar store, or online from mobile phone
customer base and market size for the brand,
pr desktop website, but the experience will be
leading to increased sales, revenues and
flawless. The number of channels can vary from brand
profits.
to brand. There can be several channels ranging from
With a positive and seamless experience at
retail stores, special events, SMS, email marketing,
every stage of purchase cycle, brands can
social media engagement using Facebook, Twitter,
reduce the churn and build a promising
Instagram,
ecommerce
reputation
platforms like Amazon, Flipkart, Myntra and many
customers.
or
YouTube,
websites,
in
the
minds
of
potential
more alike.
PAGE 10
Several
brands
have
adopted
omnichannel
The company launched its Myntra campaign with all
marketing approach and have a build successful
the young Bollywood faces like Diana Penty, Aditi
campaigns surrounding this strategy. Brands like
Rao Hydari etc. With expansion of online platforms
Disney, Bank of America, Starbucks, Timberland,
in India, H&M has grown it sales exponentially and
H&M, Zivame, Nerolac Paints, Sephora, Pepperfry,
the company feels that it is the way forward.
Asian Paints etc, provide seamless customer
Recently the company also launched its “H&M
experience through online and offline channels.
Member Program” in October, 2020. This program is
Taking the example of H&M and Nerolac Paints
open
using omnichannel strategy,
personalized mobile app.
for
all
and
provides
customer
with
a
H&M – H&M launched its first retail outlet in India on
Nerolac Paints –
October 2nd, 2015 at Select Citywalk Mall, Saket,
Kansai Nerolac Paints Ltd Company also known as
New Delhi, featuring the H&M AW’15 collection.
‘Nerolac Paints’ is the second largest paint company
Currently, the fashion brand has 48 stores in 24
in India. The company manufactures wide range of
cities across India. H&M expanded its operation to
products from subtle, sophisticated paint coatings
the online digital world in India in with the launch
for industrial purpose to coatings for luxurious
of hm.com in 2018. In India, H&M has an omni –
hotels, houses, hospitals, offices etc.
channel strategy by integrating the physical
The company is involved in omnichannel marketing
outlets with digital platforms. It aims to create an
by having its presence in physical stores as well as
inspiring and convenient customer experience.
online marketing.
The mobile app of H&M has various unique
Nerolac has its huge physical distribution chain
features. The Image Search tool helps customers
through wholesalers, distributors and retailers. Retail
easily find the product they are looking for by
stores are structured in a way to provide exquisite
recognising user’s or downloaded photos. The
experience
mobile app also has barcode scanner feature
customer. There are wide variety of product along
which enables easy check of any particular
with a catalogue in every Nerolac stores and also
product.
well qualified staff to assist the customer in
The deliveries and returns are easy for customers
choosing right paint for them in order to increase
accompanied with multiple payment options like
customer experience and increase sales. Nerolac has
credit cards, net banking etc. H&M is also using
wide distribution channel of around 11,000 dealers.
to
customers
and
retaining
the
Myntra to sell its product since 2019.
PAGE 11
Nerolac also has its digital presence to facilitate the customer experience and boost its brand’s presence Nerolac has its own website for online purchase and digital marketing where you can easily choose right colour for your rooms in different varieties like interior wall paints, exterior wall paints, paint for ancillaries etc. also the information about all the variants of Nerolac paint. The unique service provided by Nerolac Online is of “colour my space” feature through its mobile app. By using this feature, you can easily upload picture of room or area you want to paint and then select the right shade and preview the colour before actual purchase. With several features like colour picker, budget calculator, 24*7 helpline and interior design suggestions, Nerolac is creating a seamless customer experience. Hence, omnichannel marketing is the way forward for every brand around the world, if they want survive and grow immensely in the competitive market.
PAGE 12
MAINTAINING COMPETITIVENESS THROUGH STRATEGIC ALLIANCES AJITA RANADE, JBIMS, MUMBAI
CoBusiness
is
One of the ways to achieve this is by making
completely dynamic. What was new yesterday
strategic alliances which seek to harness the
might be a thing of the past tomorrow. We have
supremacy
experienced the transition from monochrome
geography to seize new opportunities. In the
feature phones, which were primarily used as
words of the management guru Mr. Peter
modes of communication, to today’s smart phones,
Drucker,
which double up as cameras, digital assistants and
“The greatest danger in times of turbulence is not
have features to check emails, play games, watch
the turbulence—it is to act with yesterday’s logic.”
world
environment
news,
video
in
chat,
today’s
write
times
and
of
the
alliance
partner
in
its
edit
blogs/documents/ memos the list is endless. This
Types of strategic alliance
change happened within a decade. It was also
Two companies can enter into strategic alliance,
during the same decade that we saw Nokia’s
which maybe of the following types –
mobile business, being bought over by Microsoft. At
1.
a point of time, the Finnish mobile phone
companies (also called parent companies) form a
manufacturer which controlled 41% of the global
third company, with shareholding of both the
handset market at a point of time.
parent companies.
The above example illustrates the need of any
2.
business to continuously innovate and stay ahead
alliance is a venture wherein one company
of the curve in times of dynamic and changing
purchases an equity percentage of the other
business environment. Staying relevant entails
company.
continuously scanning the business landscape for
3.
new competition, thinking of new ways to keep the
strategic alliance is formed when two companies
product
form
or
service
relevant
and
embracing
Joint Venture – A joint venture is when two
Equity Strategic Alliance – An equity strategic
Non- equity Strategic Alliance – A non- equity a
binding
contractual
agreement
for
technology which makes the rendering of service or
combining resources and pre-defined capital
the product more efficient.
together.
PAGE 13
Advantages of strategic alliance:
Disadvantages of strategic alliance:
When Apple wanted to enter the payment system
While forming an alliance, each company is unaware of
(Apple Pay) for contactless transactions, it aimed to
the
change the way the common man used their credit
business
cards. Apple chose MasterCard to partner with them,
detrimental if both parties are not aware of the other’s
which meant a consumer having a MasterCard could
management style. Communication issues, as to each
avail contactless payment, just by carrying his/her
partner’s part in the whole alliance as a whole, if not
phone.
to
addressed upfront can lead to issues during the alliance.
successfully gain new users, activate old i.e. using
Strategic alliances, if not implemented and thought
MasterCard and generate traffic for the company. For
through properly, can few disadvantages. Legal and
Apple, this move helped in offering a new service, tap
reputation issues occur when one of the companies
and pay to its consumers. It also helped Apple and
involved in the alliance delivers a wrong product, a leg
MasterCard, both to stay ahead of the competition by
of the alliance which one partner was not handling.
offering unique value proposition to their customers.
Conclusion
When Starbucks wanted to launch its brand in India, it
As seen by examples mentioned above, strategic
formed alliance with Tata Global Beverages Limited. The
alliance, if executed and thought through properly, can
agreement paved the way for Starbucks to open retail
help a company stay ahead of competition, penetrate
outlets in India and Tata Coffee Limited supplied roast
new geographies and expand customer base.
This
partnership
allowed
MasterCard
other
company’s ethics,
etc.
management, However,
this
work may
culture, prove
coffee to the Starbucks brand. The JV paved the way for Indian consumers to experience the rich coffee of Starbucks brand while enjoying the premium Starbucks experience.
PAGE 14
LEARNINGS FROM 2020 DRAWING INSIGHTS & INSPIRATIONS FROM THE YEAR OF THE PANDEMIC VASU GOLYAN, IPM, IIM INDORE
TThe Year 2020:
upon, as technology allowed for the implementation
The past year has been one of immense learning for
of work-from-regimes across the world, that were
all businesses. From adapting products to adjusting
frankly unimaginable until a year back. Not just
to the new normal, the business world has come a
talking about the connectivity enabling through
long way from the gloom and doom of 2020. Trade
platforms like Zoom & Microsoft Teams, but the use of
and commerce have begun to show green shoots,
VPNs, VoIPs, cloud tech, collaborative tools and facial
and signs of a V-Shaped recovery (as promised by our
tracking software have equipped the human race top
Prime Minister, where “V” stands for the vaccine) are
to simulate work-surroundings from the comfort of
imminent. As per the IMF, India will be the only
their home, while their privacy remains secure.
major-economy to showcase a double-digit growth rate of 11.5% in 2021. This strong recovery comes on the back of innovative use of technology, and collective
action
in
key-sectors
for
the
Indian
economy. The Pandemic has taught enterprises key lessons
about
liquidity-management,
customer-
experience, the importance of going digital and managing a work-life balance in the era of WFH. Key technological advancements and the unprecedented cooperation of the masses have not only helped in flattening the curve but have also provided us with
WFH, while eliminating the need to expose your home
crucial insights on how to thrive in 2021, building on
and its privacy, made possible by facial tracking &
the learnings that 2020 provided.
virtual BG technologies.
Where did we Learn What?
A key learning from this points to the broad avenues
Busting the Corporate Myth:
where we can put our current technology to use and
“This meeting could have been an email”
how a lockdown on human lives can still not bring the
Last year, we saw this phrase, often used to exhibit
human race to a stop.
frustration against corporate-inefficiency, being acted
PAGE 15
Realizing the Right to Education & Challenging the role
While hospitals were overwhelmed with COVID-inflected
of ‘Eminent’ Institutions:
patients, telehealth came to the rescue as medical
While the Pandemic disrupted learning systems across
consultation became one phone-call/WhatsApp chat
the world, and parties on both sides of the table -
away. Additionally, when ventilators were scarce, and the
students as well as the instructors - were at a loss, the
government failed to support the medical institutions of
advent of distance learning did highlight the artificially
the country, crowd-sourcing medical requirements and
created restrictions that had been placed on education
using 3D printed ventilator supplements as well as PPEs,
access. As governments across the world, mobilized
came as a blessing for the medical community as well as
resources to ensure community access to the internet, it
those who they were treating.
was finally possible for students across the economic
In short, 2020 taught us that make-shift solutions, or
spectrum, to receive a quality education, one that did
what Indians lovingly refer to as ‘jugaad’ could indeed be
not involve a single teacher trying to educate 500
a life-saver, and quite literally so in many cases.
students in a dull classroom.
A Fresh Coverage of the Media: When the WHO terms 2020 to not be just the year of the Pandemic, but the year of the infodemic as well, we come to realize about the not-so-rosy aspect of social media as well as news platforms. These platforms today are almost entirely governed by sensationalizing news bytes and TRP ratings. While we are not entirely concerned about the ethical dimension of this, it becomes a problem when truthfulness and verifiability of facts take a backseat for sensationalizing news.
Zoom, WhatsApp, GMeet showcasing the over glorification of walled-institutional learning as students from economically weaker sections of the society get a new chance at education. Putting aside the fact that initial access to education was still tough for a lot of students, 2020 has made us cognizant against the propagated truth that “education can
only
happen
inside
the
walls
of
hallowed
institutions”. One of the most prime instances of this is the massive assistance extended by self-taught & trained COVID-tracers, without whose efforts India’s entry
into
the
community-spread
phase
of
the
Pandemic would have been much quicker and bloodier. A Revitalized Look at the Health - Telecommunication & 3D Printing: Technological advancements have also been a boon for the medical community, be it in the form of new lifesaving
tech
or
the
introduction
of
less-probing
diagnostic mechanisms, but 2020 saw another aspect of
A Dramatic Rise seen in Fake News & Misinformation, propagated on Social Media as well as by Media houses, in the first three months of the Pandemic
technology that became a life-saving medium for the life-savers.
PAGE 16
While the learning from these are yet to show, 2020
The Year 2021 & Beyond:
has highlighted the need for intervention in this
As we saw above, innovation, technology and
domain of media, which has heavily shaped the
collective action have made life much easier for
public response as well as the narrative during this
businesses in the Pandemic. But, as we step into
Pandemic.
2021, we need to continue building upon these headstarts, to ensure a faster and sustainable
The Public taking matters in their Own Hands:
recovery to pre-covid times. Ideas and concepts
The Pandemic was witness to the undying spirit of
which
humans, as organizations from all across the country
continue to be leveraged to reach the consumer
came to the help of those affected the most. This sort
where they are, and provide an experience as close
of collective action was indeed crucial in preventing
as possible to pre-pandemic era brick-and-mortar
the kind of humanitarian disaster that was imminent
stores. However, we must remember that the
with the advent of the lockdown, and India’s unique
Pandemic will have a lasting effect on the online-
demographics. The plight of the millions of migrants
offline mix of business, with a significant amount of
who got stranded, witnessed the emergence of mass
traction remaining online, even if customers start to
conscience, in the form of the work done by NGOs,
return to stores.
individuals and even private businesses. The acts of
It might take a lot more time for things to be normal
individuals such as Sonu Sood, have become the
again, but it is certain that technology and the spirit
stuff of legends and inspired many an individual to
of collective cooperation will continue to redefine
carry out similar work.
how Indian society functions in 2021. And for
Listen to Scientists over Politicians:
businesses, these are hints to quickly adapt to the
What added fuel to the raging infodemic were the
changing norms, and emerge out of this Pandemic,
comments by politicians and heads of state of
as more efficient and effective organizations. As Sir
various countries, which defied rational science, as
Winston
propagated by scientists and the medical fraternity.
opportunity to waste.
revolutionized
Churchill
commerce
said,
a
crisis
in
is
2020,
a
will
terrible
We have all been witnesses, to the prevailing misinformation about the virus, its effects, and its threat, whereas the medial community continued to caution us. What has been remarkable, is that barring a few countries, the masses have paid heed to scientific rationale, instead of being blinded by political rhetoric. This collective act of individuals, of taking
adequate
precautions
even
when
the
Pandemic was being downplayed in its initial days, has been crucial today, as the infection-rates go down in many countries. And where the rhetoric presided over scientific advice, we see a resurgence of
covid-cases
and
re-imposition
of
national
lockdowns. India thus stands at a key juncture in its history, where it’s one billion-plus people have all acted
together,
in
national
interest,
while
safeguarding their own private interests.
PAGE 17
THE STRATEGY AND CONSULTING CLUB OF IIM ROHTAK snc@iimrohtak.ac.in AKANKSHA LAWHALE AMRISH RAI MEDHA WAGH SAURABH AZGAONKAR TANVI RANE TEJASWI NETTAM VARIS KUMAR KALIA ANKIT PALIWAL GARGI GARIMA KUMARI KRITI SETHI MADHU PRIYA MACHADI PARNIKA SHARMA POOJA CHAUDHARY RASTRA KUNWAR MAURYA RUDRAJIT BANERJEE FOLLOW US ON: DISCLAIMER: THE VIEWS AND OPINIONS EXPRESSED IN THIS MAGAZINE ARE THOSE OF THE AUTHOR AND DO NOT NECESSARILY REFLECT THE OPINION OF THE STAKE HOLDERS OF IIM ROHTAK