Institute of Public Enterprise Poised Aug 12

LONDON OLYMPICS

INSIGHT STORY:EURO CRISIS 1

INSTITUTE OF PUBLIC ENTERPRISE

The Institute of Public Enterprise (IPE), Hyderabad is a non-profit educational society established in 1964. It is devoted to Education, Training, Research and Consultancy for business enterprises in the public and private sector.

IPE is the premier Business School at Hyderabad and is recognized as a "Centre

of Excellence" by the Indian Council of Social Science Research (ICSSR), Ministry of Human Resource Development, Government of India, New Delhi for doctoral studies.

It has also been recognized by eight universitites in India for guidance of Ph.D scholars.

It has developed strong linkages with industry and academic institutions and is the

founder member of the Association of Indian Management Schools (AIMS) and is also the member of Confederation of Indian Industry (CII) and Computer Society of India (CSI)

Poised Is the official E-magazine of IPE Hyderabad.

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FROM THE EDITOR'S DESK

Poised an initiative of ipe students welcomes you, it’s been a great

honor and a moment of pride for me to bring the second edition of this magazine to all our mates. The core reason for the magazine remains the same, I believe that a word is more powerful than an arsenal, that can throttle any thing in this world. That is the power we need to emphasis on as youngsters.

There has been quite a good revelation between the magazine and the Independence, previous edition was released on 26th January and this one on August 15. Its just a coincidence that has occurred and contrarily if I want to address independence in India through my editorial piece, I never regret to quote the words of a great human being where he said “I have nothing but contempt towards this nation and its democracy”. A country and people like Indians are never fit to rule themselves, they just make a mockery of the democracy. So I further dedicate this edition of magazine to the greatest ever leader CHE GUEVERA. A man of masses and a distinctive global son of freedom.

Congratulations pecially

Avik

to

all

the

mukhejee

writers for

his

and

also

splendid

all job

the and

editors

es-

dedication.

EDITOR IN CHIEF UDAY PATTIPAKA PGDM-RM

1

WHAT'S INSIDE 1. EUROPEAN CRISIS

ESHAAN VERMA

2. OLYMPICS

VANKAYALA VNS DINESH KUMAR

3. ALL IT TAKES A LITTLE PUSH

SYED JAFFER ALI

4. BRAND: THE DARK SIDE

SOUMYA

5. CALCULATION OF SENSEX

CHAITHANYA

6. FDI IN RETAIL

BHARATH & ANUSHA

7. FRIENDSHIP

NILESH

8. TRADING OF CARBON

APARAJITA

9. GDP:TRUE OF FALSE CALCULATION

DEBRAJ

10. ABC...Z

LOKESH

11. “IN GOLD CAN HIGH PRICES..........”

YOGESH

12. MANAGEMENT HORIZON

PAVAN KUMAR

13. NEGETIVE MARKETING

HARIKETH

14. REVISED SCHEDULE VI

BHARATH HR

15. SOCIAL ENTREPRENUERSHIP

PRATHYUSHA

16. AN UNUSUAL WAR

TARAK

17. “U.S” IS NOT FOR US 18. EDUCATION SYSTEM

SOUJANYA C REDDY

19. INDIAN FILM INDUSTRY

RAMESH

20. DIGITAL MARKETING

APARAJITA

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EUROPEAN CRISIS

Eshaan Varma PGDM-IB 2011-13

Backdrop: Euro zone was created in 1999 and as of now it have 17 nations which agreed to have Euro as their common currency. The major problem that Euro zone has was that they had a monetary union (common currency) but no fiscal union (taxation policy etc). Few other countries joined the union later as well. European union comprises of 27 nations but is different from countries of Euro zone as they need not accept euro as the common currency.

Beginning of the crisis: Euro zone had a complex make up as an union as any policy to be passed has to be approved by all the 17 countries which usually takes lot of time. When Euro zone was formed in 1999 the member nations signed a pact that would limit their borrowings to 3% in order to avoid any sort of financial crisis again. But major nations such as Italy, France Greece etc never followed this pact and Greece even went till the extent of manipulating its borrowing statistics even Germany was a major defaulter but their economy is in good shape still largely due to the amount of exports they carried out. Spain was the most ideal nations till 2008 crisis which kept check of their borrowings and never exceeded 3% cap.

But now, as we all know Germany is strongest nation in the Euro zone where as Spain is struggling to revive its economy, so the question arises what went wrong with a nation like Spain who never manipulated the debts etc. The major culprit here are said to be the private borrowers who took unprecedented amount of loans from the banks as the interest rates had fallen due to the countries accepting Euro which fueled debts in those countries. This large amount of money which came to the market raised the demands for imports and Germany became the most important source of imports for these nations, hence Germany grew and other countries doomed. The surplus cash which Germany generated were lent to Southern Europe again (Spain, Italy, France),this caused huge debts on these nations. Another reason was due to huge increase in the labor costs of the nations such as Greece, Italy, where the labor costs increased by 32% to that of Germany’s. Hence, these countries lost competitiveness in the export market whereas Germany kept their labor costs under control and became export powerhouse in the region.

Greece which is considered to be major defaulter in the region couldn’t sustain itself after the 2008-09 crisis as the government expenditures were huge on various things like pension schemes etc. And after the 2008-09 global recession the tax revenues slowed down and hence the fiscal deficit increased tremendously. Government was not able to sustain the demand of the population and finally in 2009 Greece declared that they cant sustain on their own and they need financial support from the third party. Greece became first na-

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tion to plunge into crisis from the Euro zone. Different European countries like Spain France Italy soon followed Greece into recession for the above mentioned reasons. Even nations like Portugal went into crisis due to over spending and rise in unemployment and Ireland which indiscriminately issued loans and now the banks in Ireland faces a 100 bn euros deficit.

Impact on the global finance: As we all know that no nation in current scenario is immune to the happenings across the globe and recession in one nation is surely going to impact the other how much ever powerful they are. Countries like America too showed signs of recession in recent times and the recession is feared to spread all across the globe and even to India where the GDP growth rate is expected to be at 6.1% far lower than that of the previous year’s growth. Since IMF is funding the bail out and around forty percent of the money in IMF comes from USA which means that USA citizens have to shell out more as taxes to fund the bail out affecting the US economy.

Future and Growth stimulus: Several bail out packages have been granted by IMF and European bank towards the affected nations.

•

Greece reportedly received USD 163billion as a bail out fund from EU and IMF in 2010. In 2011 Greece needed another bail out package of about USD 157 billion. And now the country seems to be on right path of recovery however unemployment still is a major issue.

•

Portugal age in

•

Bail outs where given to Ireland as well and the analysts expects the country to stand on its feet again by later half of 2012 as it is performing quite well now.

received Euro 78 2011.

Unemployment

billion is a

as major

a bail out packissue here as well.

There are several other implications of this Euro Crisis like the growing differences between the economically sound countries like Germany and the Weaker countries like Greece.

There are strong indications that Greece may actually leave Euro zone soon and this maybe even beneficial to them as they can then create their own policies and that may even help it to come out of the recession faster. But exiting Euro zone wouldn’t guarantee the markets to stabilize and it may even lead to chaos if country such as Greece, Italy or Spain leaves Euro zone. Hence immediate upswing of the markets of this countries seems a distant reality.

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A REVIEW ON OLYMPICS

Vankayala VNS Dinesh Kumar PGDM 2012-14

Olympics were first started in 1896 and India first participated in 1900 with a lone athlete Norman Pritchard winning two medals in athletics. The nation first sent a team to the Olympic Games in 1920, The National Olympic Committee for India is the Indian Olympic Association, was created in 1927 and has participated in every olympics since then.

Indian athletes have won a total of 23 medals, mostly in field hockey. For a period of time, India’s men’s field hockey team was dominant in Olympic competition, winning eleven medals in twelve Olympics between 1928 and 1980, including six successive gold medals from 1928–1956.

The 2008 Summer Olympics was the most successful Olympics ever for India with the nation winning three Olympic medals in three different sports and also winning first individual Olympic gold medal won by Abhinav Bindra.

INDIA’S LAST FIVE OLYMPIC GAMES MEDALS LIST Year 1992 Barcelona 1996 Atlanta 2000 Sydney 2004 Athens 2008 Beijing 2012 London

Gold 0 0 0 0 1 0

Silver 0 0 0 1 0 1

Bronze 0 1 1 0 2 2

Total 0 1 1 1 3 3

Rank

Bronze 2 2 0 2 1 1 1 8

Total 11 5 2 2 1 1 1 23

0

71 71 65 50 45

INDIVIDUAL SPORT MEDALS LIST Sport Field hockey Shooting Athletics Wrestling Weightlifting Tennis Boxing Total

Gold 8 1 0 0 0 0 0 9

5

Silver 1 2 2 0 0 0 0 5

CHINA’S ROLE IN OLYMPICS The People’s Republic of China (PRC) first competed at the Olympic Games in 1952, at the Summer Games in Helsinki, Finland, although they only arrived in time to participate in one event. That year, the International Olympic Committee (IOC) allowed both the People’s Republic China(PRC) and the Republic of China(which recently relocated to Taiwan after the Chinese Civil War). The Republic of China’s team withdrew from the Games on July 17 1952 in response to the International Olympic Committee’s decision to allow both People’s Republic of China(PRC) and Republic Of China(ROC) sportsmen and women to compete. This marked the beginning of the “two China’s” conflict in the Olympic Movement, As a result the Chinese Olympic Committee’s withdrawal from the International Olympic Committee (IOC) in August 1958. The issue was resolved in November 1979, and the People’s Republic of China first appearance at the Olympic Games after 1952 was the 1984 Olympics in Los Angeles, United States. The People’s Republic of China hosted the Games on one occasion 2008 Olympics in Beijing CHINA’S PARTICIPATION IN OLYMPICS Year

Gold

Silver

Bronze

Total

Rank

0

0

0

0

1984 Los Angeles

15

8

9

32

4

1988 Seoul 1992 Barcelona

5 16

11 22

12 16

28 54

1996 Atlanta 2000 Sydney 2004 Athens 2008 Beijing (host) Total

16 28 32 51

22 16 17 21

12 14 14 28

11 4 4 3 2 1

1952 Helsinki

163

117

105

50 58 63 100 385

-

COMPARING CHINA AND INDIA IN THE OLYMPIC GAMES China and India, the two countries with population ranking first and second in the world. To date, their Olympic performances are almost polar opposites. China has become an Olympic powerhouse while India has underperformed. From 1960 to 2000, China won 80 gold medals, while India won only two. Even the significant segment of the Indian population that grows up healthy is at a disadvantage relative to China. The Chinese economic development model has focused on investment in infrastructure; things like massive airports, high-speed rail, hundreds of dams, stadiums, world-class swimming pools, and high-tech athletic equipment. And while India is a boisterous democracy, China continues to be ruled by a Communist party, which still remembers the old Cold War days when athletic performance was a strong symbol of a country’s geopolitical clout.

When China leads the medals table at Olympics, everyone are happy and won-

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der what goes into preparation for the prestigious sporting event as they outclass and strike gold in most of the events. An inside story about the training camps at China suggests otherwise.

Athletes who shine at Olympics would have undergone a horrid time at their camps, as they would be beaten into shape and trained to be tough since their childhood.

Nanning Gymnasium in Nanning, China, is one of the ruthless training camps across the nation as parents take initiatives to send their children to learn how to shine at Olympics.

Kids in India, aged 5 or 6 would enjoy their childhood playing games, learning a few lessons at its play school and kindergarten and basically have fun.

But its not the same in China, as they are made to train tough and are trained to become Olympic stars when they are aged 5 or 6, which might help the kids to excel in Olympics years later but the physical strain that they undergo at a tender age is unacceptable.

While we have heard of the training offered for cadets, considered to be the hardest of all and the suffering that is involved in such training camps, the camps at China are no less than a torture, especially to the kids who are trained to win medals no matter what happens to their health, as their main aim is to win medals for their country.

There are reports that suggest that the trainers have no mercy on kids, as they are made to train hard. The sight of kids who are put to training at these camps is indeed a pain, as the photographs of these Chinese camps, videos on youtube would make any individual feel bad and pity the kids. Five-to six year old kids are made to stretch their legs, swinging on the beams, hanging from pairs of rings, bounding across floor mats during the physically strenuous training sessions.

Kids are trained in order to learn how to be tough, how to outclass other athletes.

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AND ALL IT TAKES A LITTLE PUSH Syed Jaffer Ali PGDM 2012-14 Life creates questions on every step. But it provides answers too. Life creates hindrances at every instance but it clears them too. Life creates moment of injustice but it provides Relief too. !! Life disappoints but yeah. It fascinates too :)!! The answer to every question, simple... “A LITTLE PUSH”. A little push in the right direction and the ship of Life sails to the coast of happiness..

Family: Your father, Your mother, Your siblings and YOU.. They question your every endeavour; they doubt your every action but WHY? The answer: “A LITTLE PUSH” Confused? :P !! Behind every scrutinising look from your mother and every threatening warning of your father exists the necessary PUSH that determines your future. Their experience will always win over your raw decisions and lead you to the path of success.Your siblings may taunt.

They

might

suspect

each

and

every

action

of

yours.

Why?

And the answer, “A LITTLE PUSH “ :) !! Remember, the fact of Jealousy is too dramatized. The dreaded word starting with “J” though Universal in its presence shouldn’t exist between the people of one kind, one descent and one brood :)!

The suspicion and the scepticism exist to PUSH you towards your goals and the day you succeed it just reiterates the love between the two of you or three or maybe TEN of you :) A Friend: Life sometimes provides you with a friend who understands all your inhibitions. They provide a solution to each of your problems. Provides relief to all your grievances and then THAT particular friend gets on with his own life and forgets you. You miss him and you need him. What does it take to get him back? The answer, “A LITTLE PUSH” Try sharing his problems for a while. Give him a shoulder to lean upon when he is in trouble and then “Wait for this friend to come back to you” :)!! Remember, in such cases a harder push will lead to an unprecedented downfall. Careful!

Spirituality: Life will always leave you at crossroads where 3 of the 4 directions leads to Despair , ambiguity and Sorrow, while the fourth direction will pave your way to JOY. How to identify the path of Bliss? The answer, “A LITTLE PUSH” God will provide the necessary push u need to excel. All you need to do is ASK. Ask him sincerely for a solution to your dilemma. He provides. Ask him for that little light at the end of the endless tunnel of dejection. He provides.

IPE: Institute of Public enterprise or let’s say, “Institute of Positive Evolution”  . We are standing at a juncture in our lives, most of us changing our fields from the technical end to the more responsible managerial end. Now is the time when our career needs a Little PUSH. We need to evolve into professionals that are more employable hence the need for the little push. IPE will provide the necessary assistance in this endeavour of ours, the rest lies on us to shape our lives ahead 

I wish all my peers and my seniors a successful career ahead. May God help us all of us to succeed in Life.

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Remember, “All it takes is a Little PUSH” 

BRAND: THE DARK SIDE Soumya PGDM 2011-13

New technologies and digital communication networks have put the world at our fingertips. Digitalization and the convergence of networked communication mediums like wireless technologies, networked appliances have changed the way we live and conduct business. Unfortunately, while these technologies have created fantastic opportunities, they have also facilitated new deceitful business tactics and provided a way for corruption. Few people are aware of the extent to which brands and digital assets are exploited online like piracy and the levels of abusing is increasing and costing companies millions annually in lost business and goodwill.

A powerful brand is the foundation upon which the business is built. Abusing tactics don’t take long to do damage in this high speed, connected world. Common abuses include alterations to brand logos, distorted advertisements and if not managed effectively this risk can threaten the revenue and value of the business. Smart companies regain control by gathering intelligence and taking action to defend their brands and digital assets. While it is possible to see and hear things online, for example, a customer cannot try something on. To compensate for the limitations of the online medium companies across the globe make it their mission to ‘‘defend the brand.’’

The popularity of a brand makes it a target. In general, the more renowned the brand, the more likely it is to be victimized, regardless of the industry. Since they are more widely known, consumer brand names are usually at the highest risk for abuse, as are other popular icons such as celebrities and politicians. The consequences of brand abuse can be particularly terrible for financial services and insurance companies for other reasons as well. Consumers are conducting more and more research online and making their decisions based on this experience. Once a mistake is made, it can continue to cost both the consumer and the company dearly for a long period of time. The main step to defend a brand is to gain familiarity with the types of threats and opportunities that may exist online.

Whenever trade secrets are posted online, investors are put at risk financially and the company is left at a competitive disadvantage. Such occurrences can also taint the brand in the eyes of the consumer, particularly if security and trust are part of the desired brand image. Oftentimes, the best recourse is to stay on top of the issues and promptly address complaints before the offending site gains a following and assumes a life of its own.

The key to managing risk associated with online complaints and customer commentary is to be proactive, monitor relevant sites regularly, and use them to your advantage. The posts can bring issues to your attention that you were not previously aware of, some of which may offer the opportunity to improve the business. Online tactics to attract or divert customers will play a greater role in the customer’s experience, both while shopping and after purchase. The degree to which these experiences are positive or negative will play a significant role in shaping brand image. Safeguarding customers against the most aggressive and negative tactics will be an increasingly important part of defending the brand.

The benefits of online relationships are widely recognized. They lay the framework for operational efficiencies, a dramatic expansion of brand reach, and growth in sales and

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market share. In many ways, partners are online ambassadors of the brand, so how they choose to represent you shapes your brand image. The brand presence be it in the form of a logo, slogan, product description, specifications, or pricing information is entrusted to a partner, what that partner does with your brand plays a significant role in the customer experience. Left to their devices, partner networks can undermine the customer experience, destroy brand equity, and divert revenue to competitors.

Unfortunately, while organizations invest millions of dollars in the development and execution of customer oriented strategies, few are cognizant of the need to manage the customer’s total experience including their interaction with online partners.

Defending a brand is made more complicated by the fact that not all people find the same material offensive. What is considered objectionable varies widely and depends on factors such as age, religion, culture, and other demographics. It also depends on personal preference.

This is the dark side of brand management dealing with sites that feature violence and hate themes. Repulsive sites that victim on brand are a digital economy hazard that can propagate when left to their own devices. While managing this kind of abuse can be frustrating and distasteful, it can be a costly mistake not to defend your brand.

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CALCULATION OF SENSEX INDEX Chaithanya Ammeneni PGDM 2012-2014 Sensex: SENSEX is the short form of The Bombay Stock Exchange Sensitive Index.

Striking Points About Stock Exchanges In India: • The two important stock exchanges of India are the BSE bay Stock Exchange & NSE i.e., National Stock

i.e., BomExchange.

• The fascinating thing about these exchanges is that, what is the 5digit number in the case of BSE and the 4digit number in the case of NSE. • Those

numbers

are

nothing

but

the

stock

exchanges

index.

• We can say that the stock exchange is in a good condition if the number i.e., the index number keeps on increasing day-by-day and it is in a horrible state if it’s reducing daily.

• The going down of the share market is called as the BEAR MARKET and the going up of the share market is called as the BULL MARKET • The index number will be updated for every 15sec on the trading days.

• In overall, it also reflects the condition on the Indian economy. This is simple to understand because if the companies are doing good it directly reflects to the increase in the economy if not it caters to the downfall in the economy.

How Is Sensex Calculated?

• The sensex is calculated on the basis of 30 biggest shares in India.

• These 30 shares make more than 50% of the total market capitalization in the BSE market.

• It ed

is

understood one’s as

that their

• These companies represent an economy, all companies

these market all are

are the capitalization

the 13sectors leaders in their

most is of the respective

tradhighest.

Indifields.

• There is a committee-THE INDEX COMMITTEE which selects these shares. This committee experts in share markets and they will be modifying the SENSEX at regular intervals.

Criteria For Selecting The Top 30 Companies: • The shares should have been bought or sold every day for the past one year-this ensures that the selected shares are the most happening ones.

• The shares should be among the top 150 shares in average value(buy/sell)

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• The shares should be listed in BSE for more than a year.

• The company should be a leader in its own sector.

The Top 30 Companies Under BSE: 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

23.

24.

25.

26.

27.

28.

29.

30.

ITC RELIANCE INDIA HDFC INFOSYS TECH. HDFC BANK L&T ICICI BANK ONGC TCS BHARATI AIRTEL M&M TATA STEEL SUN PHARMA BAJAJ AUTO COAL INDIA NTPC GAIL INDIA HERO HONDA BHEL WIPRO JINDAL STEEL P MARUTI SUZUKI TATA POWER HIDALCO STERLITE INDS DLF HUL SBI TATA MOTORS CIPLA

The Formula: The formula for calculating the sensex = (market capitalization of the 1978-79 with a index base of 100)*Index Factor Now, Since September 1, 2003 it has been calculated on free float market capitalization basis.

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Defining the terms: Market Capitalization: Market capitalization (often simply market cap) is the total value of the tradable shares of a publicly traded company it is equal to the share price times the number of shares outstanding. i.e., face value of each share * no. of shares.

Free Flow Market Capitalization: • It is defined as that proportion of total shares issued by the company that are readily available for trading in the market.

• It er

excludes promoters’ locked-in shares that

holding, government holding, do not come into the market

and othfor trading.

• E.g. Suppose Company B has 1000 shares in total; out of which 200 are held for promoters. Now only 800 shares are available for trading, to the general public.

• These

800

shares

are

called

‘FREE-FLOATING

SHARES’

Index Factor: Index factor = 100/market capitalization of 1978-79 Why market capitalization of 1978-79?

The financial year 1978-79 was chosen as the base year because of the price stability exhibited during that year and due to its proximity to the current period.

• It is generally taken as 100 Hence by using this formula we can easily calculate the SENSEX INDEX.

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FDI IN INDIA'S RETAIL SECTOR GOOD, BAD OR MIX? Bharath H R – PGDM 2013 Anusha B – PGDM-IB -2013 Introduction ‘Investment’ is usually understood as financial contribution to the capital of an enterprise or purchase of shares of enterprise. ‘Foreign Investment’ is investment in an enterprise by a Non-Resident irrespective of whether this involves new capital or re-investment of earnings. The Indian government differentiates cross-border capital inflows into various categories like foreign direct investment (FDI) and foreign institutional investment (FII). FDI is considered to be an important driver of growth and development in the country. Over the years, FDI inflow in India is increasing. The country has become a host to massive inflows of FDI during 1990s and 2000s in concert with her efforts to create more favorable settings though trade liberalization, market deregulation, privatization of national ownership and encouragement to regional integration. In 1980s, Indian government adopted a liberal policy towards FDI, especially in high technology areas and exports and it was then that FDI friendly environment was created. The period after 1991 is termed as post liberalization period during which not only the quantum of FDI to India escalated but the sectoral composition of FDI also underwent tremendous changes.

Which one is better for India FDI or FII? FDI is preferred over FII investments since it is considered to be the most beneficial form of foreign investment for the economy as a whole. Direct investment targets a specific enterprise, with the aim of increasing its capacity/productivity or changing its management control. Direct investment to create or augment capacity ensures that the capital inflow translates into additional production. In the case of FII investment that flows into the secondary market, the effect is to increase capital availability in general, rather than availability of capital to a particular enterprise. Maruti’s enduring collaboration with Suzuki is a testimony to the potential of FDI. Retail Sector in India The retail industry in India is of late often being hailed as one of the sunrise sectors in the economy. The retail industry is divided into organized and unorganized sectors. Organised retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses. Unorganised retailing, on the other hand, refers to the traditional formats of low-cost retailing, for

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example, the local kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc.

Controversy surrounding FDI in Multi-Brand Retail There’s a raging debate over opening the retail sector to foreign direct investment People who are for FDI in retail say FDI in multi-brand retail can • Attract huge investments in the retail sector • Create employment opportunities in agro-processing, logistics management and front-end retail.

• Help farmers secure remunerative prices by eliminating exploitative middlemen.

• Bring in investments in back-end infrastructure like cold chains, refrigeration, transportation, packing, sorting and processing , considerably reduce post-harvest losses that can inturn bring down the inflation.

Examples: There has been impressive growth in retail and wholesale trade after China approved 100% FDI in retail. Thailand has experienced tremendous growth in the agroprocessing industry. In Indonesia, even after several years of emergence of supermarkets, 90% of fresh food and 70% of all food is still controlled by traditional retailers.

• In any case, organized retail through Indian corporates is permissible. Experience of the last decade shows small retailers have flourished in harmony with large outlets.

Opposition’s argument • FDI in muti-brand retail will lead to large-scale job losses.

• International experience shows supermarkets invariably displace small retailers.

• Global retail giants will resort to predatory pricing to create monopoly/oligopoly.

This can result in essentials, including food supplies, being controlled by foreign organizations.

• Jobs in the manufacturing sector will be lost because structured international retail makes purchases internationally and not from domestic sources. This has been the experience of most countries which have allowed FDI in retail.

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• Argument that only foreign players can create the supply chain for farm produce is bogus. International retail players have no role in building roads or generating power. They are only required to create storage facilities and cold chains. This could be done by governments in India.

• Comparison between India and China is misplaced. China is predominantly a manufacturing economy. It’s the largest supplier to Wal-Mart and other international majors. It obviously cannot say no to these chains opening stores in China when it is a global supplier to them. India in contrast will lose both manufacturing and services jobs.

Examples: Small retail has virtually been wiped out in developed countries like the US and in Europe. South East Asian countries had to impose stringent zoning and licensing regulations to restrict growth of supermarkets after small retailers were getting displaced.

Conclusion In our opinion, governments should not prevent anybody, Indian or foreign, from setting up any business unless there are very good reasons to do so. Hence, unless it can be shown that FDI in retail will do more harm than good for the economy, it should be allowed.

A major argument given by opponents of FDI in retail is that there will be major job losses.

Frankly, the jury is out on whether this is the case or not, with different studies claiming different findings. Big retail chains are actually going to hire a lot of people. So, in the short run, there will be a spurt in jobs. Eventually, there’s likely to be a redistribution of jobs with some drying up (like that of middlemen) and some new ones sprouting up.

If anything, the entry of retail big boys is likely to hot up competition, giving consumers a better deal, both in prices and choices. Mega retail chains need to keep price points low and attractive - that’s the USP of their business. This is done by smart procurement and inventory management: Good practices from which Indian retail can also learn.

The argument that farmers will suffer once global retail has developed a virtual monopoly is also weak. To begin with, it’s very unlikely that global retail will ever become monopolies. Stores like Wal-Mart or Tesco are by definition few, on the outskirts of cities (to keep real estate costs low), and can’t intrude into the territory of local kiranas. So, how will they gobble up the local guy? Secondly, it can’t be anyone’s case that farmers are getting a good deal right now. The fact is that farmers barely subsist while middlemen take the cream. Let’s not get dreamy about this unequal relationship.

16

FRIENDSHIP ONE SOUL IN TWO BODIES NILESH PODDUTURI PGDM

Whenever you need me I’ll be there.

I want you to know that I truly care.

When life knocks you down on your knees, I’ll be at your side just as fast as you please.

A shoulder to cry on when times are rough, An encouraging word when you don’t feel good enough.

An ear to listen to your hopes and your dreams, A voice of moderation when you’ve gone to extremes.

Someone to share the good and the bad, I will be the worst best friend you ever had!

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TRADING OF CARBON Aparajita Priti PGDM 2011-13 Carbon credit Carbon credits are a part of international emission trading norms. They incentivise companies or countries that emit less carbon. The total annual emissions are capped and the market allocates a monetary value to any shortfall through trading. Businesses can exchange, buy or sell carbon credits in international markets at the prevailing market price.

India and China are ers and Europe is going

likely to be

to the

emerge as the biggest sellbiggest buyers of carbon credits.

Last year global carbon credit trading was estimated at $5 billion, with India’s contribution at around $1 billion. India is one of the countries that have ‘credits’ for emitting less carbon. India and China have surplus credit to offer to countries that have a deficit.

India has generated some 30 million carbon credits and has roughly another 140 million to push into the world market. Waste disposal units, plantation companies, chemical plants and municipal corporations can sell the carbon credits and make money.

Carbon, like any other commodity, has begun to be traded on India’s Multi Commodity Exchange since last the fortnight. MCX has become first exchange in Asia to trade carbon credits.

So how do you trade in carbon credits? Who can trade in them, and at what price? Joseph Massey, Deputy Managing Director, MCX, spoke to Managing Editor Sheela Bhatt to explain the futures trading in carbon, and related issues.

What is carbon credit?

As nations have progressed we have been emitting carbon, or gases which result in warming of the globe. Some decades ago a debate started on how to reduce the emission of harmful gases that contributes to the greenhouse effect that causes global warming. So, countries came together and signed an agreement named the Kyoto Protocol.

The Kyoto Protocol has created a mechanism under which countries that have been emitting more carbon and other gases (greenhouse gases include ozone, carbon dioxide, methane, nitrous oxide and even water vapour) have voluntarily decided that they will bring down the level of carbon they are emitting to the levels of early 1990s.

Developed countries, mostly European, had said that they will bring down the level in the period from 2008 to 2012. In 2008, these developed countries have decided on different norms to bring down the level of emission fixed for their companies and factories.

A company has two ways to reduce emissions. One, it can reduce the GHG (greenhouse gases) by adopting new technology or improving upon the existing technology to attain the new norms for emission of gases. Or it can tie up with developing nations and help them set up new technology that is eco-friendly, thereby helping developing country or its companies ‘earn’ credits.

India, China and some other Asian countries have the advantage because they are devel-

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oping countries. Any company, factories or farm owner in India can get linked to United Nations Framework Convention on Climate Change and know the ‘standard’ level of carbon emission allowed for its outfit or activity. The extent to which I am emitting less carbon (as per standard fixed by UNFCCC) I get credited in a developing country. This is called carbon credit.

These credits are bought over by the companies of developed countries -- mostly Europeans -- because the United States has not signed the Kyoto Protocol.

What is Clean Development Mechanism?

Under the CDM you can cut the deal for carbon credit. Under the UNFCCC, charter any company from the developed world can tie up with a company in the developing country that is a signatory to the Kyoto Protocol. These companies in developing countries must adopt newer technologies, emitting lesser gases, and save energy.

Only a portion of the total earnings of carbon credits of the company can be transferred to the company of the developed countries under CDM. There is a fixed quota on buying of credit by companies in Europe.

Is this market also good for the small investors?

These carbon credits are with the large manufacturing companies who are adopting UNFCCC norms. Retail investors can come in the market and buy the contract if they think the market of carbon is going to firm up. Like any other asset they can buy these too. It is kept in the form of an electronic certificate.

We are keeping the registry and the ownership will travel from the original owner to the next buyer. In the short-term, large investors are likely to come and later we expect banks to get into the market too. This business is a function of money, and someone will have to hold on to these big transactions to sell at the appropriate time.

A great opportunity in carbon credits But I also think that it will help to redress the imbalance in the carbon credit market, something that is already of concern to the EU. Just before Christmas, in a move that went unnoticed by UK investors, EU politicians backed a proposal that would prop up carbon prices by withholding 1.4 billion permits from the third phase of its Emissions Trading Scheme. This immediately sent prices some 20% higher, and I believe should mark the bottom for carbon credit prices. Although the EU trading scheme accounts for about 97% of global traded emissions today, its dominance is set to be challenged by prospective new schemes in Australia, the USA and China.

So whether or not airlines are penalised, carbon trading is here to stay. It’s set to become a global rather than an EU phenomenon. I think the stock market offers one great way to play this theme, and it is through a penny share that I have been following for some time.

What Is Carbon Trading?

05-10-2007 Rohit

Sethi

“Carbon Trading” is still in its nascent phase, but the kind of growth this market is experiencing is tremendous and that is what makes it so exciting to talk

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about. This word was totally alien to me couple of years back, and as I’m coming to terms with it, our relationship has grown from strength to strength.

Apart from the fact that “Carbon” will become the single most biggest commodity ever traded, another aspect of it which makes it important is the solution it offers to a common problem which we all have just started to realize and probably talk about more, “Global Warming” I’ve tried to cover in basic terminology, what carbon trading is, in this post. Problem: Carbon emissions into the earth’s atmosphere have resulted in drastic climatic changes. Though, we have both, firm believers who blame Industries outright for polluting the atmosphere resulting in some of natures shocking disasters and some, who believe it’s difficult to blame carbon emissions for these climatic changes as its hard to find a pattern over the past billion years or so, how climate has changed.

Though, both have strong points to back their beliefs, whenever I see smoke coming out of chimney, I believe its not good for the environment. Solution: NGOs or non-profit organizations for long have been screaming for everybody’s attention towards this huge problem, but no one seems to care enough, not until there is a financial incentive attached to it. That’s what the governments of various countries have been trying to come up with, a trading mechanism where companies gain a monetary benefit out of polluting the air less.

Kyoto protocol’s goal is exactly that. The idea is to divide the whole world into two, one who can afford making changes to their existing infrastructure and the ones who cannot.

As everybody is polluting, be it a developed country or a developing country, the financial aspect has to be kept in mind. All developed countries will have to cut down their emissions by some percentage or else they pay heavy fines. Now, one way of measuring how much they are polluting the air less, is by assigning each tone reduction of CO2, a unit. They have various ways to aggregate these units called “CER” or “Carbon Emission Reduction” units: 1) Invest in CDM/JI Projects. 2) Buy these credits from the market.

CDM/JI Projects: CDM or Clean Development Mechanism is a project which is executed in a developing country where they cannot, on their own, afford to bring that technology change in the existing infrastructure which can result in less carbon emissions. As an example, a company in a developed world can give money to a company in a developing world to buy the necessary technology and in turn own the carbon units generated by bringing that technology change and thus meet the targets set by their governments. This will help developing countries to get the much needed financial help and in turn help the developed countries to meet the emission cut targets or if they end up with excess of such units, sell them and earn some profit out of it. It really doesn’t matter, from where on earth carbon emissions are reduced, ‘cause it will be beneficial for the environment any ways.

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GDP: A TRUE OR FALSE ACCOUNTING SYSTEM? Debraj Buda PGDM 2011-13

Gross Domestic Product is the total market value of all goods and services produced in the country in a particular year. It is equal to total consumption, investment and government spending, plus the value of exports and minus the value of imports.

GDP: A True Accounting System GDP can be measured in mainly two ways  Expenditure Approach  Income Approach Expenditure Approach: In this approach it is assumed that most of the things that are produced are for sale and hence are sold. Therefore if we measure the total expenditure of money in buying things, it can be equated to a way of measuring production. This is known as the expenditure method of calculation of GDP. It is calculated as follows GDP = Consumption + Investment + Government Spending + (Exports – Imports) Consumption: It forms the largest component and is the private household final expenditure. E.g., personal expenditure could be categorized into durable, non durable goods and services such as food, rent, jewellery etc.

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Investment: It includes business investments involving the acquisition of assets but not exchange of assets. E.g., construction of new factory, purchase of software, purchase of equipment for the factory etc.

Government Spending: It is the sum of government expenditure on goods and services.

Eg. salaries to government employees, etc Exports & Imports: represents the gross exports and imports.

Income Approach: In this method, the GDP is the measure of the total income. It is usually referred to as GDP(I). However the GDP calculated from both the income as well as the expenditure approach should be the same.

It is calculated as follows GDP = Compensation of Employees + gross operating surplus + gross mixed income + taxes less subsidies on production and imports Compensation of Employees is the total remuneration to the employees for performing a work.

Gross Operating surplus is the surplus due to the owners of incorporated business Gross Mixed income is same as gross operating surplus but it takes into consideration unincorporated business.

The sum of the above three is called the factor income i.e., income of all the factors of production in the society.

GDP: A False Accounting System Many countries proudly announce that their Gross Domestic Product (GDP) per capita is growing but, in reality, if the depletion of natural resources is taken into consideration, the GDP for almost all nations would be declining. The most common number used to rank a country’s economy is the GDP (gross domestic product)- the annual revenue generated by the domestic economy. This number is divided by the population of the country to calculate the GDP per capita. Countries can be compared in terms of the people’s earning using the average revenue generated per person annually. For example, the GDP per head of the United States was $41,530 whereas that of Egypt was $1,030. Although these accepted numbers describe the size of the economy, there is an accounting anomaly of enormous proportions.

Calculation of GDP ignores natural capital. Usually Corporations don’t pay for

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the natural capital they use, nor do they figure it into their account books e.g., fishing companies pay the cost of catching fish but don’t pay for the depletion of fish stocks, farmers too don’t pay for the water they take from an underground water supply. While deforestation counts the value of the timber as an increase in wealth, the damage done to nature’s ability to absorb carbon-dioxide is not accounted for. Similarly oil companies pay for drilling and refining but pay nothing for the black liquid they take from the Earth.

In other words, Corporate balance sheets put a “zero” value on the Earth’s resources.

Capitalist corporations are intensely driven to improve earnings. If resources are free, Management takes advantage of them. Today’s market system allows people to decide what goods and services they want and corporations meet those needs, but the prices don’t reflect nature`s trust fund. As a result, organizations waste precious resources, e.g. they cut forests and dredge the sea with life-destroying nets. Not including natural capital in corporate or government accounting gives a false view of our current balance sheet. Today’s capitalism does not assign any value to the largest stocks of capital it employs - natural capital. It liquidates natural capital and calls it income. Corporations not only ignore natural capital but also do not pay for the damage they do to the environment. They have created a hole in ozone layer in the atmosphere; pollute rivers by dumping effluent wastes into it. Nobody pays for or even thinks about destroying much of the oceans’ web of life by deep-sea fishing trawlers or causing global warming by Airconditioning systems etc. Due to technological advancement, mining companies have procured increasingly powerful machines that can grind up mountains of ore. Poorerquality ores are used to make metals more abundant. Costs of stripped forests, the mountains of slag, destruction of nearby villages and toxic chemicals spilling into rivers too are not factored into the costs of production. E.g. a cleanup at abandoned mining sites in the costs an estimated $33 billion to $72 billion.

GDP of a country should therefore take into account the value of its natural resources also. Consideration for natural resources means that business houses should pay for both, the damage caused to and the use of natural resources. A proposal of accounting for natural capital may lead to protests from business executives everywhere, but there may be more acceptable ways of achieving a similar result — for example fishing licenses, or a tax on carbon emissions or charges for removing water from an aquifer.

Laws relating to use of natural resources are nonexistent. But entrepreneurs should then invent new ways to profit within the guidelines of the new principles by which new major profits will be generated for planetary well-being. Placing zero value on nature’s capital encourages us to trash the Earth and destroy natural resources that are essential for the future. We must recognize the magnitude and consequences of natural capital depletion to save the Earth. Therefore it is essential to employ policies that protect natural capital and realize the true value of our natural resources before it is too late.

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ABC.....Z HAPPINESS Lokesh.A PGDM, 2011-13

Aspire to reach ur potential Believe in urself Create a good life Dream about what u might become Exercise frequently Forgive honest mistakes Glorify the creative spirit Humor yourself and others Imagine g8 things Joyfully live each day Kindly help others Love one another Meditate daily Nurture the environment Organize for harmonious actions Praise the lord and ur performance Question most things Regulate ur own behavior Smile often Think rationally

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Understand urself Value life Work for common good X-ray and carefully examine ur problems Yearn to improve Zestfully pursue happiness

Get Motivated People can develop their emotional intelligence if they really want to. But many managers jump to the conclusion that their complement of emotional intelligence is predetermined. They think, “I could never be good at this, so why bother?” The central issue isn’t a lack of ability to change; it’s the lack of motivation to change.

Leadership development is not all that different from other areas in which people are trying to change their behaviors. Just look at the treatments for alcoholism, drug addiction, and weight loss: They all require the desire to change.

More subtly, they all require a positive, rather than a negative, motivation.

You have to change one thing and that is change.

If you think you’ll lose your job because you’re not adequately tuned in to your employees, you might become determinedly empathetic or compassionate for a time. But change driven by fear or avoidance probably isn’t going to last. Change driven by hopes and aspirations, that’s pursued because it’s desired, will be more enduring. There’s no such thing as having too much emotional intelligence. But there is a danger in being preoccupied with, or overusing, one aspect of it.

For example, if you overemphasize the emotional intelligence competen-

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cies of initiative or achievement, you’ll always be changing things at your company. Nobody would know what you were going to do next, which would be quite destabilizing for the organization. If you overuse empathy, you might never fire anybody. If you overuse teamwork, you might never build diversity or listen to a lone voice. Balance is essential.

Gauge Your Awareness Self-awareness is the key emotional intelligence skill behind good leadership.

It’s often thought of as the ability to know how you’re feeling and why, and the impact your feelings have on your behavior. But it also involves a capacity to monitor and control those strong but subliminal biases that all of us harbor and that can skew our decision making.

Consider, for example, a vice president who complained to me recently about his new hire, the head of sales. He found her to be unassertive, indecisive, unsure – hardly leadership material. When I talked to her, however, it turned out she felt her boss was sabotaging her career. The vice president had been hired only five months before she had, and he was oblivious to how his anxiety to please the CEO was causing him to micromanage. In doing so, the VP was undercutting the sales director’s independence and confidence.

His lack of self-awareness directly impaired her performance. Experience and literature on the subject suggest that while both nature and nurture influence emotional intelligence, nurture is the more important factor. Indeed, this emphasis on environment is one of the hallmarks that differentiates emotional intelligence from cognitive intelligence, or IQ. Whereas cognitive intelligence is fixed by about the age of ten, emotional intelligence increases with age. So you can actually learn emotional intelligence skills like self-awareness. One simple way to measure your self-awareness is to ask a trusted friend or colleague to draw up a list of your strengths and weaknesses while you do the same. It can be an uncomfortable exercise, but the bigger the gap between your list and your helper’s, the more work you probably have to do.

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IN GOLD CAN HIGH PRICES BE THE CURE FOR HIGH PRICES YOGESH YADAV PGDM-IB 2011-13 Are high prices spurring gold miners across the world to dig out the yellow metal as fast as they can? For India, which imports a quarter of the gold sold globally every year, it is an important question.There is definitely a buzz among miners. At 2700 tonnes, last year was an all-time high for gold produced since recorded history. 2012 will be the fourth consecutive year of rising output. The widening gap between the average cost-per-ounce of a mining company ($1044) and gold prices ($1600) has stimulated a record 5% growth in production.

Unfortunately, faster production also weakens corporate balance sheets since it leads to faster depletion of reserves owned by the company underground. The top 26 global producers (those that mined at least 600,000 oz in 2011) will run out of gold in 21 years at their current rate of production, according to the Metal Economics Group, a consultancy.

Based on their 2011 production, each major producer already needs to replace an average of almost 2 million oz in reserves each year. This is easier said than done.Though there is enough gold underground to match current output, the “easy gold” available in relatively safe and secure parts of the world has already gone. Brownfield expansion has limited potential. Gold Fields, the world’s fourth largest gold mining company, is now starting work on the world’s deepest-ever mining projects – more than 4 kilometers below ground.

Last year, while Australia increased reserves by 100 tonnes, Canada lost 70 tonnes in reserves due to closure of exhausted mines. China’s reserves – including goldonly mines now producing 200 tonnes per year – could run out within six years. Western gold mining companies must also contend with environmental activism. Gabriel Resources’ project at Rosia Montana in Romania, for instance, may hold the largest undeveloped gold mining reserves in Europe. But upturning five mountains to get at 450 tonnes of gold just doesn’t fit with today’s green politics. The average ore grades of new discoveries have declined noticeably in the past six decades. .

All eyes, therefore, are now on the so-called junior mining companies that are either searching for gold deposits in 73 countries, or are in the process of proving up the economics of the ones they’ve found.World number two Australia is not on the radar due to high costs. South Africa – until recently the world’s No.1 gold mining producer is unpopular because of high taxation.Instead, juniors are focused on Africa, South America and North America. But explorations companies have little choice but to play safe. The cost of exploration is escalating while investors are increasingly risk averse. Gold mining companies raised only $445 million from world stock markets in May and June, the lowest two-month total since late 2008.The upshot is that new mines will likely only be sunk in geographies that are politically stable and permit free trade of natural resources.

What does this mean for India? It is clear the physical market will not be flooded by freshly mined gold despite the high prices. Scrap sales and offloading of bullion by central banks will remain critical for ensuring there is enough supply in the market to meet our demand. The silver lining is that mines of the future will be developed in nations that believe in free trade. Unlike China, which is using mines for building domestic reserves, these nations will allow gold to flow into the international market. Nothing can be better news for keeping the gold market stable. And feed our lust for the precious metal.

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MANAGEMENT HORIZON:A PRESENT VANQUISH PAVAN KUMAR BOLLA PGDM

Management education is considered as one of the most admired qualifications as it majorly implies positive consequences and greater significance in one’s life. In India, management education is witnessing an exponential growth in terms of number of institutions and number of students pursuing the course.

It has become a hallmark to pursue post-graduation in a business school. Management education is like adopting western management thought & practice.

Most important is not just getting educated, it’s the exposure and experience to create something wonderful and useful to society.

Coming with a note of industry demand adds more economic value in the present situation. The ultimate challenge of management education is to become more practical oriented which intern reduces the gap between industry requirements and academics.

Precisely speaking, learning or experiencing the work or tasks as a Bschool student (with more exposure) is much better than directly facing it as a corporate (where we strive to learn, but hard to, in that atmosphere).

Figure:

And

the

end

result

is

finally

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expected

this

way

(industry

demand).

NEGETIVE IMPACTS OF MARKETING ON ECONOMY HARIKETH PGDM 2011-13

Marketing is a broader term which includes advertising. It is a fact that advertisement adds value to the goods by creating competition, but what are the negative impacts of these advertisements on our economy?

The first and foremost consequence of advertising is “conspicuous consumption” which is followed by “demonstration effect”. The term conspicuous consumption is coined by ORSTEIN VEBLEN, according to him, it is spending money for and the acquiring of luxury goods and services to publicly display the economic power. In the early days it was assumed that conspicious consumption is for only rich groups but later studies suggest that conspicuous consumption is a complex socio-economic behavior which is very common to the poor social classes and economic groups of the societies with emerging economies, among such people of the poor social class, the display of the wealth by purchasing luxurious goods combat the impression of poverty, often because he or she belongs to a social class or economic group whom society perceive as poor. Conspicious consumption is followed by “demonstration effect”. The term is coined by DUSENBERY. In simple terms it can be defined as the “imitation effect of consumption” or the idea that people expect or want to buy or have things because they see that other people are able to have them. Through microscopic observation, we can find that in developing nations, pressure to increase access to material goods rapidly increases primarily because people come into contact with superior goods or superior patterns of consumption, with new articles or new ways of meeting old wants.

We can apply above formula to the IPOD market in India. At first time when they entered market, people treated it as a luxury product, but some rich moved towards it due to veblen effect or conspicuous consumption as they are influenced by advertisements. Later in the long run, it lead to demonstration effect among society and middle income groups also moved towards it. When demonstration effect was high, other competitors of ipod released their new ipod related products by marginally decreasing the price and there by making huge profits.

Thus we can come to an conclusion that, if a luxury product has to become success in the market, it must first pave path for conspicious consumption, and increase advertisement effects to encourage demonstration effect without this formula a luxurious product cannot withstand in the market. Anecdotal evidences suggests that conspicious consumption may be empirically significant in market for luxury goods. According to one marketing manager “our customers do not want to pay less, if we halved the price of all our products, we would double the sales for six months and then we would sell nothing” .

Consequences: Let us take an example of two friends “x” who is from a rich family and his friend “y” from above middle income family, both are at the age of 24 and employed. Suppose “x” purchases a car of worth Rs.15 lakhs (conspicious consumption to display his wealth), to purchase a car of 15lakhs “x” does need to cut down his savings as he is from rich group. Now his friend “y” wanted to cope up with his friends status(demonstration effect), so he decides to purchase car of the same worth.

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So he cut downs his savings, works hard, borrows money or take loan to purchase.

After some course of time they get married and have children. Now the rich(x) tend to provide off spring with better education increasing their chances of achieving high income furthermore the wealthy often leave their off spring with a hefty inheritance, jumpstarting the process of wealth consideration for next generation, where as “y” has less chance of providing better facilities to his offspring. This illustration makes clear that conspicious consumption and demonstration effect together lead to wealth concentration and income inequalities. Savings from upper income groups tend to accumulate much faster than to accumulate much faster than saving from lower income groups. Upper income groups can save a significant portion of their incomes compared to middle income groups.

Assuming both groups earn the same yield rate on their savings, the return on upper income group savings are much greater than lower income groups because they have larger base.

1. The increased income inequalities forces more and more consumers to use debt to maintain their relative levels of conspicious consumption and demonstration affect.

2. In the process of demonstration effect if the rich continue to save at the same rate, it is possible for national savings to fail less well off are consuming same goods. As rich and therefore have less savings, which then lowers the average national saving rate.

3. There is a chance that these income inequalities in long run may be turned into revolutions against government 4. Last but not the least, is that the gap between have’s and have not’s increases in due course of time.

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REVISED SCHEDULE VI OF COMPANIES ACT,1956 Bharath H R PGDM 2011-13 If you pick up any company’s Annual Report of 2011-12 you will surprised to see a different format of Balance Sheet (BS) and Profit and Loss Account (P&L) to what you have been taught in class. What brings this change? What should we follow now? What are the important changes? All these questions have been answered in this article.

Before we go to Revised Schedule VI, we need to know what Schedule VI of Companies Act, 1956 is all about. As you all are aware that any company registered under Companies Act, 1956 will have mandatorily prepare BS, P&L and Cash Flow Statement. In order to have consistency, Schedule VI prescribes the format of presentation of BS, P&L by companies, which was first introduced in 1960.

Current vs Non Current An asset shall be classified as current when it satisfies any of the following criteria: (a) It is expected to be realized in, or is intended for sale or consumption in, the company’s normal operating cycle; (b) It is held primarily for the purpose of being traded;

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(c) It is expected to be realized within twelve months after the reporting date; or (d) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.

All other assets shall be classified as non-current.

A liability shall be classified as current when it satisfies any of the following criteria: (a) It is expected to be settled in the company’s normal operating cycle; (b) It is held primarily for the purpose of being traded; (c) It is due to be settled within twelve months after the reporting date; or (d) The company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

All other liabilities shall be classified as non-current.What do we mean by operating cycle?.An operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalents. Where the normal operating cycle cannot be identified, it is assumed to have duration of 12 months.

Old Schedule VI vs New Schedule VI • First of all there is a change in nomenclature. You should no longer use ‘Sources of Funds’ and ‘Application of Funds’ instead Revised Schedule prescribes companies to use “Equities and Liabilities’ and ‘Assets’ respectively • You will no longer find Annual Reports reporting ‘Profit & Loss Account’ instead you will find ‘Statement of Profit and Loss’ as per Revised Schedule VI • You will not find ‘Sundry Debtors’ because it has been replaced with ‘Trade Receivables’ in the Revised Schedule VI • Old schedule VI does not require companies to classify their assets and liabilities into current and non-current, the revised Schedule VI does so in order to present a fair view of the company’s financial and liquidity position.

• You will no longer see ‘Schedule’ in the Annual Reports, instead you will find ‘Notes’ explaining the details of the item in the balance sheet.

I’ve only highlighted few changes of Revised Schedule VI, there are many more which you can find it on net. To conclude, the whole idea behind this revision is to bring in the corporate disclosure closer to international practices.

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SOCIAL ENTREPRENEURSHIP:A PROMISE TO THE NATION Prathyusha Kota , PGDM 2012-14

The Preamble to the constitution of India reads:

“We, the people of India, having solemnly resolved to constitute India into a Sovereign Socialist Secular Democratic Republic and to secure to all its citizens: JUSTICE, social, economic and political; LIBERTY, of thought, expression, belief, faith and worship; EQUALITY of status and of opportunity; and to promote among them all FRATERNITY assuring the dignity of the individual and the unity and integrity of the Nation; In our constituent assembly this twenty-sixth day of November, 1949, do hereby adopt, enact and give to ourselves this constitution.€?

The resolution of the people of this Nation still stands to be achieved in its true sense. Decades have passed and the dreams remain distant. We have not done what we could have, as Citizens and as a Nation. The constitution itself shows us the way to achieve this Nation’s ambitions through individual efforts. Of all the eleven Fundamental Duties of the Citizens of India there is one which reads “To develop the scientific temper, humanism and the spirit of inquiry and reform”.

India is the world’s largest democracy. Its population can become its biggest asset provided the “Human Resources” are skilled enough to contribute to the development of this Nation. A criticism of the political, administrative or judicial system of India cannot be the only valid reason to account for this failure. Realizing this very truth, a new breed of young entrepreneurs has emerged in this very holy land. These are the people who see opportunities where others see obstacles. Yes, charity and service are ways but as the saying goes “Give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime.” These young warriors have taken up the challenge of creating sustainable business models based on a social cause. They are not criticizing the system; rather they are busy creating an inspiring new system of Social Entrepreneurship.

[Logo of Mirakle Couriers] • India has one of the highest deaf populations in the world with approximately 6% of the population suffering some kind of hearing loss.

• Four out of 1,000 children in India are born deaf Facts of the above sort are viewed as unfortunate incidents by most of us.

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But there are people who draw inspiration from similar yet very different facts like: • Alexander Graham Bell, whose own mother and wife were deaf, invented the telephone • Thomas Edison, the inventor of electricity was deaf.

• Famous German composer and pianist, Beethoven’s hearing began to deteriorate in his twenties. Even after he became completely deaf, he continued to compose music.

Dhruv Lakra started Mirakle Couriers, a courier company with a difference. It employs only deaf adults. All the staff members including delivery personnel are deaf. Deafness is an invisible disability, and has been largely ignored in India. This idea has made it possible for about 70 deaf men and women, who were once considered a burden, experience the true spirit of independence.

[Logo of Goonj]

[Bags made of recycled cloth]

Though we generously donate clothes to the victims of natural disasters, not many of us are aware that not even half of what we send as help does not serve the purpose of giving the warmth as the clothes are either not of the needed size or not wearable.

Goonj re-sizes the clothes sent to the victims and routes them back to specific age group and gender at the disaster sites.

It also “Recycles Clothes”, employs rural women, to make many more products. Described in the words of its own creator, Anshu Gupta:“Goonj’s mission is to make clothing a matter of concern. All our products are made from the last strands and shreds of the cloth, paper and other household material we get after sorting out the wearable, usable stuff. The product is made out of torn cloth/jeans, audio tapes etc. people discard in droves. There are no designer minds at work; it’s largely the ingenuity of our own minds.”

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[Jugaad Vehicle] [Jugaad Engine] One major hurdle in the path of growth and development is lack of physical and virtual connectivity because of which we are unable to tap the potential of our rural produce and also capture the rural market. Dr.A.P.J.Abdul Kalam had proposed the PURA (Provision of Urban Amenities in Rural Areas) concept, as the core of the Vision 2020, which consists of four types of connectivity: physical, electronic, knowledge and economic connectivity to enhance the prosperity of clusters of villages in the rural areas.

Working towards the above aim is Jugaad. Jugaad are locally made motor vehicles that are used mostly in small villages as a means of low cost transportation in rural India. Jugaad vehicles cost around Rs. 85,000. They are powered by diesel engines which were originally intended to power agricultural irrigation pumps. The vehicle is used to carry more than 20 people at a time in remote locations and poor road conditions.

Today, Jugaad is one of the most cost effective transportation solutions for rural Indians. The improvised versions of these vehicles have now become rather popular as a means to transport all manner of burdens, from lumber to steel rods to school children.

Jugaad is a colloquial Hindi word that can mean an innovative fix or a simple work-around, or a resource that can be used as such, or a person who can solve a complicated issue. This meaning is often used to signify creativity to make existing things work or to create new things with meager resources.

Jugaad is increasingly being accepted as a management technique and is recognized all over the world as an acceptable form of frugal engineering pioneered in India. Companies in India are adopting Jugaad as a practice to reduce research & development costs. Jugaad also applies to any kind of creative and out of the box thinking which maximizes resources for a company and its stakeholders.

Most of the above social entrepreneurs are MBA graduates and other innovative minds.

There are many such noteworthy examples. Each of them has positively transformed at least 100 lives. Even if 10% of the total MBA graduates of our country come up with such incredible ideas, millions of lives can be changed and the dream of a nation can be realized not through an inanimate system but through the very life of the Nations – it’s People!

Finance is not the problem, dearth of feasible and sustainable ideas is. It is not merely the professional education that gives us ideas. It is the eye for a problem and the grit to find an innovative solution for it, which creates opportunities. To conclude, here is what Dhruv Lakra of Mirakle Couriers says : “Our business model is based on creating a service driven profitable enterprise that uses the deaf. To this end, we marry professional excellence with social cause. We are not a charity but a social business, where the social element is embedded in the commercial operations.”

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AN UNUSUNG WAR HER.O'S MANEGEMENT LESSON TARAK PGDM 2011-13

This (http://blogs.hbr.org/cs/2012/07/act_fast_not_first.html) was not just another article in HBR I just read and close every day; this made me read a biography. I thought this would be one of the right daises to introduce to those of you who might not have come across the name of this US Air force pilot in your common management programs. His concepts of war proposed some decades ago not only changed the art of war but also hold perfect lessons of management in an era of rapidly declining time-frame for a management concept called Strategy. Before I start off with management aspects of his theories, let me introduce him to you.

This person could defeat any opponent in simulated air-to-air combat in less than “forty seconds”. Some of the best pilots in the air force challenged him at point or another, so did the best pilots in the Navy and the Marine Corps. But, no man could be found who was better in air than him. He was never defeated. In 1959, when he was just a young captain, He became the first man to codify the elusive and mysterious ways of air-to-air combat. He developed and wrote the ‘Aerial Attack Study’, a document that is now termed as Bible for air forces around the world. He has put forward his Energy- Maneuverability Theory from which the finest jets of their time the F-15’s and the F-16’s were engineered for which he was acknowledged father of those two aircrafts.

His work made him the most influential thinker since Sun Tzu wrote the art of war 2400 years ago.

The results of his work were manifested in the Gulf war. Everything about the startling speed and decisive victory can be attributed not to the media heroes, not to struggling and bombastic generals, but to a lonely old man in South Florida, who thought he had been forgotten.

Popularly known as ‘Forty Second Boyd’ (remember the time in which he can defeat an opponent?) and a ‘Mad Major’, here is a person who changed not just the art of war but also that of management- John Boyd.

Now, keeping him aside let us take a look at the present business scenario, the ever changing business dynamics, the possible entry of disruptive technologies is giving sleepless nights to the top managements and R&D labs world over. The technology that you called superior one year ago is outdated now. I agree there were times when businesses enjoyed a near monopoly and devised strategies to consolidate their positions, not brushing aside the fact that they invested heavily in R&D. But if I tell you investing heavily in R&D combined with effective strategies to counter competition will not solely serve the purpose and you need to have that ‘extra eye’ to foresee future.

What can be a better example than ‘Intel Corporation’, the company enjoyed a near monopoly and its nearest rival AMD was never even a concern for it. It was setting benchmarks only on its previous products. But blows came to Intel in some other

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form. Intel failed to realize the specifications that a mobile processor needs is very different from that a PC needs, because it failed to understand that sustaining success is much beyond benchmarking themselves. In a market space where Snapdragon and Qualcomm processors are the norm for every smart phone out in the market, the Intel’s ‘Atom’ processor meant for smart phones was dumped by every other smart phone manufacturer due to its power hungry nature. Intel still finds it tough to enter this space.

Similarly many examples like the collapse of Sony digital music players with the entry of ipods, the competition Boeing is facing from Airbus can be observed from around us.

In other words, speed is killing our decisions. The crush of technology forces us to react in very less time. Not many understood the challenge of time pressured decision making like John Boyd.

He developed a decision making framework which is gaining popularity among the business leaders worldwide. It is known by the acronym ‘OODA’(Observe, Orient, Decision, Action).

It analyses, synthesizes and defines most important critical component of performance- Reaction Time. ‘Observe’ the rapidly changing environment, ‘Orient’ yourself to the environment based on these observations, process the disorder and understand when your competitor might become confused. ‘Decide’ what to do and ‘Act’ at the right moment. The ultimate goal is ‘Act Fast but not First’.

This necessarily conflicts with our basic management lesson taught every other day -‘The First Mover Advantage’. Let’s see why this is obsolete at times. In the year 1983, a well known company introduced shampoo in sachets to make it affordable to the rural poor at cheap prices, a very good innovation inarguably. But, it is the other companies which gained from this innovation and The First mover actually stood at loss in terms of revenues.

Apple introduced a really cheeky OS which is arguably the best one until then, but how much time did it take for Google to make an OS which is arguably better than iOS? If only Intel would have observed what is happening around it, it would have grabbed the emerging market of smart phones and so is with the other companies.

This lows

definitely OODA

raises doubts like loop?

Answer:

what Get

if

the into

opponent also folhis OODA loop.

Now don’t ask me, what if companies make OODA as a strategy since I mentioned strategy will pale into insignificance once we start using OODA. I do not know the answer.

And oh yeah, did I forget to mention why I described this Genius as ‘An sung war hero’?

John Boyd was hated by every other US Air force personnel because of this straight forward nature and inability to accept corruption in an area where it was a norm.

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"US" is NOT FOR US SOUJANYA

As the dollar loses its green sheen, expats find pastures at home peaceful.

H1B visas to the USA used to be hot property something that should be grabbed with both hands and held close. In 2009 on May 21st, 50 days after the gates were opened for the financial year 2010,the US citizenship and immigration service’s received only 45,500 visa applications against a cap of 65,000.that was a revelation. In April 2008 all the H1B visas were grabbed in a week’s time, making FY-2009 the fifth consecutive year to achieve the cap before Oct 1, the start of fiscal year un US. So, according to the above statics, is the dollar losing its sheen?

A STUDY ENTITLED “Americans Loss is the world’s gain” and involving 1,203 have returned home after studying and working in the US, shows that “a trickle of returnees a decade ago become a flood”.

About 20,000 Indians have lost jobs overseas because of the global economic crisis and returned home. In fact 30% respondents in the survey held permanent resident status or were US citizens.

Security is another concern. Though it is a Australia that is grabbing the headlines for all bad reasons these days, there have been instances of attacks on Indians in the US too, from Jan 2008 to mid 2009, nine professionals and students from Andhra Pradesh were killed in different parts of the US. However, there is no evidence to show that a specific ethnic group was being targeted.

“The crime rate is going up with recession. Lots of people are losing their jobs”, says by a telugu in Florida. The government is in dire straits due to local police job cuts the surveillance is down, there is less police patrolling and there are not enough officers available.

Criminal activity bound to rise.

Something over for America it is monopoly over power. The day will not be far when an American will work in India and send money home. Mobility marks survival. Indians discovered that long back, Now young Americans will have to realize there’s more to the world than Mexico and Canada .Recently they had an offer to work in newspaper jobs drying up back home, it is only sensible that they give it up.

Economy has the capacity to provide gainful employment to all the persons in labor force. The work force is not able to get decent work because of non availability of skill required in the labor market. The IT enabled services segment currently employs around 70,000 people and accounts for 10.6 percent of the total IT software and services industry revenues. A handful of sectors like chemicals, engineering goods, textiles, leather contribute to 75% of manufacturing exports. Indian manufacturing is forecasted to grow 12%-14% over the next decade and sectors like Automotive, food processing and pharmaceuticals are to be growth drivers. The balance 25% exports are from sectors like Automotive, Cement, Food processing, Drugs/pharmaceuticals, Minerals and metals, Paper.

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WHAT'S WRONG WITH OUR EDUCATION SYSTEM ADDULA CHANDRAHASA REDDY PGDM When Master blaster Sachin Ramesh Tendulkar was asked “If not a cricket player what would have you become?” He said ‘I would have become a tennis player’.

He realized his dream of becoming a sports star at an early stage of his life and hence he said no to exams, ranks and admissions in colleges for further studies and took a different path unlike his classmates at school and started his journey to become the God of Cricket as we all know him today.

When Einstein was questioned by his teacher “Why have you scored so less in biology and social but did extremely well in physics?” He replied that he felt biology and social questions were too boring for him to answer.

Einstein realized that he loved physics and it was interesting for him than any other subject and hence rejected to answer biology and social questions in the exam. Nothing stopped him from forming the world’s famous equation E=mc2 If you are saying no or rejecting every other opportunity that comes your way, then you must be in the pursuit of knowing your passion.

Coming to our school/college education, the system unfortunately showed and gave students limited opportunities to settle down in life. Many a times’ students accept those opportunities as a blessing or curse of their life for various reasons.

Some people who found out schools are very boring for them and people who have dropped out of school realized their passions and went on to provide opportunities for those who looked for some opportunities to live. Most of those who looked a way for living have graduated from schools/colleges which are generally considered as ‘Power houses of knowledge’. Most of the graduates became opportunity seekers whereas a few school dropouts became opportunity providers.

Its not necessary that a student must drop out of school to realize his interest to become a successful person. Every student cannot become Walt Disney or Henry Ford who didn’t go to school but created great business empires.

Warren Buffet realized his love for money at early stage of his life. To make his dream come true, he bought three shares of cities services listed on NSE at the age of 13 and now he is one of the richest persons in the world.

I feel something is wrong with our learning system. Why is it failing to make students realize their potential in certain areas that they are good at and failing in helping them to pursue their passionate careers?

Exams which compare classmates, ranks and grades, which differentiate good and bad students, might be the reasons. Parents had only one objective before putting their child in kindergarten which was “my kid has to learn alphabets, small words and some discipline.” But their objective was not that their child has to be a topper in kindergarten.

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As they grow, the entire drama begins. Ranks, marks and letters from school showing the performance of the child in various activities which is at disclose of parents and the society. Many of us might have heard the very obvious question from out parents “why didn’t you score as much as your classmate scored? You are not performing well in exams while I’m working very hard for your school fees”.

This frightens the child. As for me I was baffled as I never asked my dad to pay my fees, he himself put me in school.

Now every student struggles to score more than his classmate because of fear from parents or maybe he really wants to score more. Some students succeed while some fail in scoring more than their classmates. Based on this, a student gets the tag of a good student in case he succeeds or else he gets the tag of a bad student.

In this rat race, students were taught only what is to be achieved but not how it should be achieved. Students were never given the chance of taking decisions of what they like, what they want to be. Hence students never thought and acted differently from the neighboring students. They never got the freedom to realize their passion as they were busy in scoring more marks than their classmates.

While every teacher says “Each student is unique and each should think differently”. Are teachers, parents, schools/colleges helping students in realizing the students their passion and helping them in excelling in their chosen fields? Is this practically happening in schools and in society? Absolutely not!

As stated above, Walt Disney and Henry Ford created something from nothing. Because when they chose to do it, no teacher was there to ask them why they were doing this.

People never expected anything from them and they were never under pressure of doing things better than others but they aimed at doing things better than the previous time.

Our schools/colleges failed in providing freedom to students. Freedom to think differently, freedom to act differently from the established pattern of the society, freedom to do experiments, freedom to take risks!

Schools create fear in the minds of students. Fear of failure, fear of creating new, fear of acting differently, fear of taking risks! Schools prepare students in settling down where there is less scope for disturbance and where people think and act the same way.

I happened to meet my uncle in a function whose daughter attends one of India’s best boarding schools where exams are not conducted. I asked him “What made you put your daughter in this school?” He said “I don’t want my daughter to be in a rat race for succeeding but there should be a healthy learning environment” Then I asked “What are your expectations from your daughter?” He replied “I don’t care if she becomes a sweeper but I will be concerned if she cannot become a good sweeper” The next generation parents don’t want their children to learn and grow in the kind of environment they grew in. They need a better learning environment, better standards of teaching and better standards of exploring with enough freedom for their children to pursue their interests.

There’s a light of hope at the end of the tunnel. Next generation parents don’t want their children to be in a rat race but to pursue their aims and goals. This change may take decades, as our system is deep rooted.

Now I realize my passion in building a world class school where a student walks in and will say,

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“I have the freedom to think and act differently to create something new about what I like”.

INDIAN FILM INDUSTRY AND MARKET RAMESH PGDM-RM, 2011-13

India is the world’s largest producer of films by volume - producing almost a thousand films annually. However, revenue-wise, it accounts for only 1 percent of global film industry revenues.

Components

of

the

Indian

film

industry

The Indian film industry comprises of a cluster of regional film industries, like Hindi, Telugu, Tamil, Kannada, Malayalam, Bengali, etc. This makes it one of the most complex and fragmented national film industries in the world. These regional language films compete with each other in certain market segments and enjoy a virtual monopoly in certain others. The most popular among them is the Hindi film industry located in Mumbai, popularly referred to as “Bollywood”.

4Ps concept applied on the movie industry as a whole PRODUCT For a movie to selected by the audience on the basis of the content, it needs to be clearly identifiable in its marketing — genre, stars, story, special effects, style all need to be presented aptly. A movie product is the intellectual property that can be ported to a variety of deliverables: theatrical exhibit, non-theatrical exhibit, video tapes, DVDs, CDs of the soundtrack, collectible editions, television and cable broadcast, Internetserved etc. Then there is merchandising such as clothing, toys, games, posters. Another product dimension is that of franchise rights, endorsements, product placements and a host of offshoots that are bought and sold, leased and rented. The movie business is one of the most complexes in the communications industry because of its creativity, its diversity and its continual explosions of technological delivery options.

PRICE At first glance, pricing in the movie industry seems very standardized. At any multiplex or cinema hall, a movie ticket costs the same for all movies, doesn’t it? But if we look into the broader definition of the movie product just defined, then the prices fluctuate widely.

A distribution contract can be structured in many ways that result in very different returns for the producer, the key creative talent, and even the distributor. Elements that are negotiated include: Theatrical release schedules Territories and market segments Revenue splits, percentages and order of payment Promotion budgets (P&A) Apart from these pre consumer stage pricing differences, we see a wide range of pricing structures such as theatrical tickets, group 4-wall rentals, title rentals, title sales, special releases, subscription services, festivals, downloads, delayed broadcasts, pay-per-

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view, licenses, bundled deals, cable channels and now we have movies and games on cell phones, on iPods -- on electronic billboards.

Pricing has become a global issue. The release of a DVD has always been timed to protect the theatrical revenue model. But with piracy at record levels globally, a variety of pricing -- and timing -- strategies are being tested, like pricing the DVDs very cheaply.

PLACE With the ever-inventive entrepreneurial energy in the entertainment world, people find venues for entertainment sales not only through traditional theatres and broadcast, but on street corners, in homes, over the Internet, over phones (caller tunes), through clubs etc. Options for delivery of the movie product are exploding: movies, games, music, news, and educational content. Distribution takes place through theatres, rental stores, sell-through stores, catalogues, non-theatrical groups, the Internet, even cell phones and the latest new media gadget.

PROMOTION Promotion is a powerful marketing tool, not only during the premier of a new product, but throughout its lifecycle. Producers create the end-product for the consumer, but they seldom market that product directly to the consumer. They market their story to investors and distributors. Distributors market to exhibitors, retailers and sub-distributors. The theatre exhibitors, retailers, store clerks, and Internet strategists market to the end consumers. And then, to top off this complex stew, some consumers even market to other consumers – their family, friends and co-workers.

Major Channels of Marketing (apart from TV) Radio According to the Ministry of Information and Broadcasting, Govt. of India., there were approximately 132 lakh listeners of FM radio in the major metropolitan cities across India. Tie-ups with radio channels for marketing films are becoming increasingly common.

Common promotional activities include on-air contests, interviews with film stars and music composers, shelling out complementary movie tickets, an option to meet the stars in person, music and movie premiere coverage, etc.

Taking the case of the tie-up between Big 92.7 FM with Yashraj Films as its exclusive on air partner for the film Jhoom Baraabar Jhoom.

Mobile phones India is the fastest growing market in the mobile world. The dramatic evolution of communications technology, from download speeds and battery life to compact form factors, screen sizes and resolution, as well as memory enhancements, means mobile devices are now capable of delivering a compelling, high quality and uniquely personal viewing experience. Not surprisingly, ringtones, wallpapers and caller tunes are very popular nowadays. However, for mobile movie marketing there is life beyond these services. Consumers want SMS short reviews as well as schedule of theatres on the mo-

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bile. There is also scope for television channels to send out SMS alerts half an hour before a movie is going to be aired. A substantial segment of the population is favourable to games related to films.

Internet The internet is increasingly emerging as a profitable medium to create hype and promote new film. There are approximately 30-40 million internet users in India today. Internet as a medium to promote a film is a viable option as it offers a wide platform of activities like reviews, trailers, bulletin boards, email, and blog for marketing movies which in turn creates a buzz about the film. Industry experts believe that the cost effectiveness of the online medium is one of the reasons for its popularity. An online campaign on the other hand costs only one-tenth of the amount a producer will spend advertising the film in the print medium. A recent survey conducted by the Internet & Mobile Association of India (IAMAI) says that close to 90% internet users surf the net for movie related information and 42% of the surfers use the net for this purpose more than once a week.

The survey also found that 54% of the net users watched at least one movie per month.

Among the first studios to have started off promoting films on the Net was Yashraj Films.

To promote Kabhi Alvida Na Kahna, the entire song Where’s the party tonight was featured on MSN’s desktop TV. MSN also designed a theme pack on Messenger based on the film’s characters. RDB’s characters wrote interactive blogs; Anthony Kaun Hai ran an online contest with winners meeting the stars. Lage Raho Munnabhai’s promotion on MSN India consisted of video clips from the film aired on desktop TV airs, and a web link to the official movie website with storyline, information on cast, crew, music, photos and screensavers, trailers, contests and interactive features. Online promotions also enable filmmakers to tap the overseas market. NRIs are also passionate about movies and like to download wallpapers, ring tones and take part in celebrity chats.

Alterative marketing methods Teasers In the world of entertainment branding and promotion, where promos and trailers create viewer perceptions, teasers play a very vital role when it comes to films and their marketing.

A teaser is all about illusion and aura. It is about creating that ‘glimpse of mystery’ about the film just before its theatrical release that will eventually attract more audiences to the theatre with a motive to demystify the perception created.

A teaser for a film is essentially created to drive in the maximum number of viewers to the theatre in the first week of the film’s release. This is because post week one, the fate of the film at the box office completely depends upon its content. Thus, by using effective teasers, producers seek to drive in maximum viewers for the film during the first week and generate maximum revenue.

Creating a teaser for any film involves huge financial risk. Hence, creating it effectively

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becomes a must. An effective teaser needs to create a lot of anticipation. It needs to mock, annoy and arouse. Ideas need to be spinned off differently and effectively. A well knitted teaser should not steal any scene from the movie; however it has to get the core idea right. The teaser of the low-budget American horror film “The Blair Witch Project”, released in 1999 showed an “absolute black” screen powered by a strong voice over. The voice over was filled with “intense fear that generated post the completion of a summer project.

The teaser does not speak anything about the film. It only throws a punch of fear at the audience, thus encapsulating the core idea of the film - fear. This is what an effective teaser is all about. It creates a mystery about the film thereby calling the viewers to watch the film and demystify the mystical.

Co-branding and Merchandising Co-branding is an arrangement that associates a single product or service with more than one brand name, or otherwise associates a product with someone other than the principal producer. The typical co-branding agreement involves two or more companies acting in cooperation to associate any of various logos, colour schemes, or brand identifiers to a specific product that is contractually designated for this purpose. The object for this is to combine the strength of two brands, in order to increase the premium consumers are willing to pay, make the product or service more resistant to copying by private label manufacturers, or to combine the different perceived properties associated with these brands with a single product.

Co-branding movies and products succeeds when the movie and the brand target the same audience. In case of movies like Krrish, children form the major audience. This means that brands targeted at children should be used to reap maximum benefit.

Merchandising

Now the story does not end with the leading man and lady living happily ever after. It goes to add T-shirts, mugs and other paraphernalia. Be it the super hero Krrish, the common men turned heroes in Rang de Basanti, the romantic pair in Fanaah or the animated god Hanuman; they can be spotted on T-shirts, on your kids toys, around youngsters’ necks, even in your refrigerators and many more such places not marked for them earlier.

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DIGITAL MARKETING APARAJITA PGDM, 2011-13

Digital Marketing is the practice of promoting products and services using digital distribution channels to reach consumers in a timely,relevant,personal and cost-effective manner.

While digital marketing does include many of the techniques and practices contained within the category of Internet Marketing,it extends beyond this by including other channels with which to reach people that do not require the use of the Internet.As a result of this non-reliance on the Internet,the field of digital marketing includes a whole host of elements such as mobile phones,sms/mms,display/banner ads and digital outdoor.

Previously seen as a stand-alone service in its own right,it is frequently being seen as a domain,that can and does cover most,if not all,of the more traditional marketing areas such as Direct Marketing by providing the same method of communicating with an audience but in a digital fashion.

While digital marketing is effective when using one message type,it is much more successful when a marketer combines multiple channels in the message campaigns.For example,if a company is trying to promote a new product release,they could send out an e-mail message or text campaigns individually.This,if properly executed,could yield positive results.However,this same campaign could be exponentially improved if multiple message types are implemented.

An e-mail could be sent to a list of potential customers with a special offer for those that also include their cell phone number.A couple of days later,a follow up campaign would be sent via text message(sms) with the special offer.

Push and pull message technologies can also be used in conjunction with each other.For example,an e-mail campaign can include a banner ad or link to a content download.This enables a marketer to have the best of both worlds in terms of their marketing messaging.

(Source- A renowned magazine)

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POISED E-MAGAZINE A STUDENT INTIATIVE VOLUME II

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POISED TEAM MEMBERS EDITORS: Uday Kumar Pattipaka.

Bharat HR Sukruth Meher Aparajitha Preethi LAYOUT AND COVER PAGE DESIGNER Avik Mukherjee FACULTY ADVISORS V Anji Raju

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