NEWSLETTER FROM DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Road of Opportunities - The New Market in Africa (05)
NOVEMBER 2011
VOLUME-II ISSUE-11
Editorial ……………………………………………………… Dear Readers, It's November, the month of celebration and jubilation!!! Starting with the auspicious occasion of "Id"; as we strawl down the post-monsoon days the mood of the hoipolloi swings
sums of foreign investments and
So, where do we take the next
big MNCs hailing from major
stop ?? Where else other than
economic players in the world
the facebooks and twitters. Yes,
trade like China ,US and India."Is
in the article "Online social me-
Africa A New Market for Future"
dia and impact" we look take a
provides an insight from close
look at the burgeoning trend of
quarters.
social sites being used for corpo-
to that of boisterousness and
They say 'Need is the mother of
piety with Guru Nanak Jayanti
invention". But as science goes
round the corner. As all of you
strength to strength in exploring
come back from the vacations;
and utilizing the surroundings of
we bring another fresh edition
environment, the unending de-
of the Domination to perk up
sires of the human psyche keeps
your busy schedule with some
delving new wants and wishes.
newfangled ideas and fresh food
So when the obviously limited
for thought.
endowment of the human brain
We phase in with the all novel opportunity
analysis
of
the
'Plateau Continent': Africa. For eternity the land of Africa has had the dubious distinction of being a laggard, the so called "Land of Apartheid". The land which has witnessed the barbaric slavery system, undue and umpteen interventions by the western world, the autocratic rule of the megalomaniac despots is finally rising. With the political uprising in many countries, as the sovereigns take large strides towards achieving a democratic
government,
the
door to a plethora of business opportunities has also been flung open by the influx of large
is exhausted; whom does he look up to for a new idea ?? Yes it's the mother nature again; providing
the
perspicacity
wrapped under the veil of her very modus operandi; for our researchers to tap. The article "Nature's smart ideas" covers a few of such subtle cases of the
rate strategy and business advertising purposes. Following the fortuitous and efficacious attempts of Cadbury Wispa, Tata Nano , Barack Obama's presidential campaign and the Arab uprising ,the social networking has emerged as the new age platform to communicate with the masses. But this sword cuts both ways as even the slightest chink in the interaction with followers has the potential to end up as a gaping hole and turn all the efforts to a mere fiasco. The article "Online Social media and it's impact" analyzes this Gennext phenomenon.
nature providing working mod-
Ever thought of what is common
els for nuances and innovations
between solving a jigsaw puzzle,
in the domain of product design-
making a strategic business deci-
ing. Because as the famous ad-
sion or framing a generic policy
age goes - "Human subtlety will
for the bourgeois? Yes, it's the
never devise an invention more
bigger picture that matters. The
beautiful, more simple or more
cognitive 'Pas de deux' of con-
direct than does nature because
ceptualizing the next paltry
in her inventions nothing is lack-
step ,vis-a-vis the bigger output
ing, and nothing is superfluous.”
is what is called as systems thinking and forms the basic
……………………………………………………… 02 | DOMINATION, NOVEMBER 2011
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Editorial ……………………………………………………… backbone of solution of all
Global vantage point" does just
of fasting and feasting sneaks
sorts of problem from puzzles
so by attempting to dig deep
through , the 'Domination'
to administrative decision mak-
into reasons and solutions of
strives to enrich your informa-
ing. Let the doctrines of sys-
the impasse called 'Inflation';
tion base and leverage pru-
tems thinking and counter in-
which has flummoxed the RBI
dence in a variety of ar-
tuition sink in with our article
and the Government alike.
eas .Hoping that the zest and
'System's Thinking-Getting the bigger picture'.
This is the second edition in the running being au-
Now time to invigorate
thored and collated by the joint
our minds with some palpable
efforts of both the years; the
problems back home. The arti-
eclectic synergy of experience
cle "Economic Langour from
and fresh vigor . As the season
joviality of the festive season will bring happiness, good fortune and good health to all our readers , its Team Domination wishing everyone “happy Reading “ and "Happy Id-ul-Zuha" !
s - Regard on nati i m o D Team
……………………………………………………… 03 | DOMINATION, NOVEMBER 2011
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Contents Newsletter Team
08 12
Aditi Joshi Anuj Mody Anurag Agrawal Chetna Yadav
Nature’s Smart Ideas
Is Africa the new market for future
Manav Kaushik Mukesh Rathi Pawan Upadhyay
15 18
Prateek Tomar Rajneesh Kumar Ruchi Gupta
Online social media: Its impact
Saumya Dani
Systems Thinking
Saumya Verma Sayantan Shibi Singh
21
Economic langour from a global vantage point
Shruti Goel
Design Team Anurag Agrawal
“There is a flower at my desk”
27
Saumya Verma
25 DEPARTMENT OF MANAGEMENT STUDIES INDIAN INSTITUTE OF TECHNOLOGY ROORKEE
Roorkee - 247 667, India Tel: +91-1332-285014, 285617 Fax: +91-1332-285565 Email: domination.doms.iitr@gmail.com Website: www.iitr.ac.in/departments/DM/Pages/Index.html
Qutopia
22
DoMS da Evince For private circulation only 04 | DOMINATION, NOVEMBER 2011
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Cover Story ……………………………………………………… Think Different
“(Today) I am going to drop the
his invincibility and his elitism
know and make them do
‘interim’
announced
and made him realize just how
things,” Wozniak recalled. In
Steve Jobs at the MacWorld
human he was. He could stand
1982, Time magazine claimed,
Expo in San Francisco in Janu-
in front of thousands and hon-
Jobs “practically singlehandedly
ary 2000. The Crowd erupted
estly and genuinely thank those
created the personal computer
with shouts of “Steve! Steve!
who worked for long hours to
industry”. On one hand, Jobs
Steve!” The pace of clapping
make Apple a success.
was a creative visionary, on the
title”,
hands quickened, then feet stomped,
and,
finally,
the
other hand he was a dreadful
The journey is the reward
manager. “I have always liked
crowd gave him a standing ova-
Steve Jobs, Steve Wozniak and
Steve but I have found it im-
tion. “I work with the most tal-
Ron Wayne started Apple in
possible to work for him” said
ented people on the planet, at
Jobs’s garage in April 1, 1976.
Jeff Raskin the project in
Apple and Pixar,” he added,
Steve Wozniak hand built the
charge of Macintosh. In 1985,
“These jobs are team sports”.
Apple I and Jobs handled mar-
Jobs resigned from Apple after
The world suddenly realized
keting. Jobs could be charis-
losing a power struggle with
that Steve Jobs had grown from
matic, even mesmerizing, but
the board of directors. Then,
being an arrogant executive to
also cold and brutal. “Steve
he started a new company
a manager. Time had eroded
could call up people he didn’t
named NeXT. The NeXT years
……………………………………………………… Perspective | Chlorophyll | Qutopia | DoMS da Evince | Regardez I’economie
05 | DOMINATION, NOVEMBER 2011
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Think Different
……………………………………………………… were torture for him, as he was
works. To design something
the sleekly irresistible iPod, the
forcibly alienated from his true
really well, you have to ‘get it’.
iPhone and the most recent
love. The tough love made him
You have to really grok (a
iPad.
wiser and more mature. At
geek’s word meaning to under-
NeXT, Jobs was able to indulge
stand something thoroughly by
all of his instincts, both good
having empathy with it) what it
“We are here to make a dent in
and bad. He was unbound. The
is all about,” Steve Jobs said in
the universe, otherwise why
result was a series of spectacu-
an interview. Right from the
would we be here?” said Jobs,
lar products that were dazzling
beginning at Apple, he believed
“We are creating a completely
market flops. This was the true
that great industrial design—a
new consciousness like an art-
learning experience that pre-
colorfully simple logo, a sleek
ist or a poet.” His vision and
pared him for the great success
case for the Apple II—would
perfection made him the most
he would have on his return to
set the company apart and
influential inventor of the digi-
Apple. As Jobs later said in his
make its products
tal age. He was one of the few
distinctive. A great
men who dissolved art in tech-
design
nology. He transformed music
“Sometimes life's going to hit you in the head with a brick. Don't lose faith. I'm convinced that the only thing that kept me going was that I loved what I did. You've got to find what you love”
industry with iTunes and iPod.
then, but it turned out that getting fired from Apple was the best thing that could have ever happened to me. The heaviness of being successful was replaced by the lightness of being a beginner again, less sure about everything. It freed me
‘
‘
Stanford speech, “I didn't see it
Thinking beyond the box
He changed film industry with animation movies like Toy Story, Finding Nemo and others from Pixar Studios. He redefined the personal computer and turned telephony on its
to enter one of the most crea-
didn’t
tive periods of my life.” In
necessarily mean a
1996, Apple bought NeXT and
complex design loaded with
toughness never most evident
Jobs became the interim CEO
plethora of features. It just
that the last few years in his
of Apple in the next year.
meant
fight for his life.
Simplicity is the ultimate sophistication
the
opposite.
head while he was at it. He was tenacious in the extreme, his
He
preached, “The way we’re running the company, the product
Stay hungry stay foolish
design, the advertising, it all
“Sometimes life's going to hit
“Design is a funny word. Some
comes down to this: Let’s make
you in the head with a brick.
people think design is how it
it simple. Really simple.” His
Don't lose faith. I'm convinced
looks. But, of course if you
superior taste for design is evi-
that the only thing that kept
think deeper, it is really how it
dent from products like iMac,
me going was that I loved what
……………………………………………………… Perspective | Chlorophyll | Qutopia | DoMS da Evince | Regardez I’economie
06 | DOMINATION, NOVEMBER 2011
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Think Different
……………………………………………………… I did. You've got to find what
came increasingly aware that
out your own inner voice. And
you love,” said Jobs. He was
an
inevitable.
most importantly, have the
brave in dealing with a series of
“Remembering that I’ll be dead
courage to follow your heart
crisis in his life. “There is no
soon is the most important tool
and intuition. They somehow
reason not to follow your
I have ever encountered to
already know what you truly
heart,” he said. In 2004, he was
help me make the big choices
want to become. Everything
diagnosed with pancreatic can-
in life,” said Jobs, “Your time is
else is secondary.”
cer and he underwent surgery.
limited, so don't waste it living
Four years later, he had a re-
someone else's life. Don't be
currence of cancer. Even as
trapped by dogma which is liv-
Jobs was focused on future and
ing with the results of other
kept gifting human kind with
people's thinking. Don't let the
innovative products, he be-
noise of others' opinions drown
end
was
Article By -
In October 5, 2011, Jobs died due to complications from relapse of his previously treated pancreatic cancer resulting in respiratory arrest.
Sayantan Chatopadhyay sayantanuit@gmail.com
……………………………………………………… Perspective | Chlorophyll | Qutopia | DoMS da Evince | Regardez I’economie
07 | DOMINATION, NOVEMBER 2011
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Perspective ………………………………………………………
Is Africa the new market for future..
Termed as “DARK CONTINENT”
natural disasters in terms of
most equal to that of Brazil’s or
in the pages of history, coun-
famines and extreme poverty
Russia as per the reports for
tries of Africa were regarded as
and illiteracy results in very
the year 2008. In recent times,
backward in terms of economic
scarcely
the real GDP growth rate of
as well as technological devel-
source. Over the years, these
countries
opment. This was the common
factors have built an image that
babwe, Nigeria etc are well
perception which floated in the
Africa is not the country which
over 8.5% and above all is An-
past. In addition, the recent po-
can be converted to or utilized
gola with 11.1%, which shows
litical unrest and turmoil in
as a business ground.
that African countries are shed-
Egypt, Morocco, Libya, Algeria etc and the civil war in Ivory Coast have also strengthened the belief that African countries are fields of enormous uncertainty for business firms and executives. Moreover, poor infrastructural
development,
skilled
human
re-
But this is just one face of the coin. In business world, executives always analyze every single aspect of an opportunity. Now let us look at some of the interesting aspects and happenings of African countries. Africa’s collective GDP was al-
like
Congo,
Zim-
ding their old image and are growing very rapidly in comparison to the world economy. Also, Africans have spent almost 35% more than the $635 million that Indians have spent on buying goods and services in the year 2008 and it is pre-
……………………………………………………… Perspective | Chlorophyll | Qutopia | DoMS da Evince | Regardez I’economie
08 | DOMINATION, NOVEMBER 2011
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Is Africa the new market for future
……………………………………………………… dicted that if continued on the
frastructure.
area
ket has to concentrate on
same
consumers
where companies have identi-
strategies that fit into the con-
will buy around $1.4 trillion
fied huge potential is the IT and
sumer’s budget. In that way
worth of goods more than Rus-
the telecom sector. It all
only it could live up to its ex-
sians, but interestingly, less
started with launch of MPESA
pectation of world’s fastest
than Indian’s projected $1.7
in 2007, which started from the
growing mobile market. One
trillion. Probably that is why
rural areas and has now trans-
more aspect is that the real fo-
India has been regarded as the
formed into $1.8 billion share,
cus is on big investments such
potential market of world. In
accounting to almost 5% of the
as cable technology etc. The
the same way, seeing these
GDP of Kenya. The recent an-
other markets such as services,
trends, African countries could
nouncement of investment by
software are still very less in-
be identified as a potential fu-
IBM and the Indian giant,
tervened. Probably, because
ture market.
BHARTI-AIRTEL to provide IT
the African countries still use
services for the next 16 years
networks built on obsolete
to the African countries shows
technology. The recent an-
the strategies of both the com-
nouncement
panies to enter into the mar-
deepen its roots into African
ket. This sector is not only at-
market is an encouraging sign
tracting the foreign investors
in this regard. The key factor in
but also the local players which
this
are taking loans from banks
“product innovation” and “new
and participating very actively
technologies” as anywhere else
there. But one needs to under-
but companies need to under-
stand the fact that a majority of
stand that these are not sold
the population comprises of
under the buzz word but as a
very less income group
part of the long term returns
people. So, mar-
and advancement can be sup-
trajectory,
In fact, it has been said in IMF forecast that in the next five years, 7 of the 10 fastest growing economy will be from subSaharan Africa. The real concern lies in identifying segments where a potential profitable market could be built, developed and strategies could be implemented on the basis of present factors, future concerns and the risks involved in those areas. Let us analyze a few sectors and industries which could be or which are being seen as future targets and arena for business by executives. The major hurdle for countries
So,
the
market
of
Infosys
will
to
remain
ported by right infrastructure The African countries, because of their ample natural resources, urbanization, rising living standards and new introduction to technological advancement, are potent -ial markets to look for .
and R&D. Wide spread internet adoption is undoubtedly the next big thing that could change the face of continent, providing another very attrac-
of Africa in their growth story is
tive potential market to invest
that they lack technological in-
and get returns. Currently, the
……………………………………………………… Perspective | Chlorophyll | Qutopia | DoMS da Evince | Regardez I’economie
09 | DOMINATION, NOVEMBER 2011
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Is Africa the new market for future
……………………………………………………… consumers there are very fickle
youths (age between 15-24
of square kilometers of water
minded and could go where
years). The idea is not only to
for hydropower yet millions of
they get a lower price and large
export your products into Afri-
people go without electricity.
bandwidth. So, if someone asks
can market but to tap the huge
The presence of Nile and other
for a thumb-rule in this type of
cultivable land and youth labor
rivers also provide great re-
market, that is same as any-
not contributing to agribusi-
sources in term of hydroelec-
where else - honesty, straight-
ness and with the use of new
tric power generation. Not only
forwardness,
technologies, develop a high
hydroelectricity but also geo-
good
services,
maintaining brand
thermal is a major
and
encouraging
area to tap in Afri-
more use of inter-
can continent and
net could be rec-
the
ommended.
sign is that their
Another
area
encouraging
utilization
to
power
look forward in Af-
for
generation
has been started.
rican countries is
Wind and solar en-
Agribusiness indus-
ergy are also re-
tries. Africa is estimated to have 60% of world’s remaining uncultivated land and in today’s world where there is
growth
agribusiness
market
there.
sources
to
be
tapped.
But
the
major concern in this sector is the amount of investment. For
shortage of food supply; this
African continent lacks sub-
potential of Africa could be util-
stantially in power sector and
ized as a business
industry.
infrastructure. These two areas
Same old problems and chal-
provide a huge potential for
lenges are there in these sector
investment and business. In
i.e. old methods, lack of farm
fact, the slow economic growth
inputs, absence of dynamic ag-
of many sub-Saharan countries
ribusiness strategies etc.
A
is because of energy crisis they
very interesting fact is that the
are facing. And the resources
average age of farmers in Af-
to provide Energy and electric-
rica is around 60 while the rural
ity are huge. For example the
population comprises of 60% of
Republic of Congo has millions
any power plant, the investment is huge and for further developing it into business market, you need support of government. The political unrest is the major factor which could keep investors away as the risk is huge in terms of investment. Because of very poor infrastructure in African continent, this sector could be viewed as a huge opportunity sector. In fact, China has identi-
……………………………………………………… Perspective | Chlorophyll | Qutopia | DoMS da Evince | Regardez I’economie
10 | DOMINATION, NOVEMBER 2011
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Is Africa the new market for future
……………………………………………………… fied the potential and Beijing
Nigeria now eyes on West Af-
lation and increase in income
has emerged as major financer
rica for its project. The pres-
of people in Africa.
of infrastructure projects in Af-
ence of natural resources in
rica. Actually, because of poor
abundance is the reason of
infrastructure, the transporta-
these strategies. Ashok Ley-
tion cost and timing of supply
land’s enthusiasm to invest in
are almost 2 to 3 times in Af-
African market is the result of
rica. So, if this sector is im-
huge demand of Chinese buses
proved and services in this sec-
there. And other Indian play-
tor be provided effectively, this
ers like Tata Motors and
will not only emerge as a ser-
Mahindra and Mahindra are
vice market with substantial
also willing to tap African mar-
gains but also prove very bene-
ket. Similarly, Soft drinks indus-
ficial for other business seg-
try is experiencing a fast
ments in reducing their cost of
growth in per-capita consump-
production and strengthening
tion of drinks from 85 litres to
their supply chain.
116 litres. The soft drinks in-
Some other areas where opportunities are huge are the soft drink market, heavy vehicle ( bus and truck), mining, caustic soda market etc. In the same way, Cummin’s, who is itself major player in mining in
Article By -
dustry has an advantasge of Africa being a warm continent but this is not the main reason behind this rise in demand. Both the automobile and the soft drink sectors are influenced by growing urban popu-
In fact, most of the demand and potential is due to rise in standard of living and urbanization. Today 40% of the population is urban population which is almost equal to that of China. So the African countries, because of their ample natural resources, urbanization, rising living standards and new introduction to technological advancement, are potential markets to look for and excel into. The same old principles of honesty, providing quality and customers need and delivering value proposition with efficient and strong supply chain will prove as key methods to establish any company in a segmented market.
Pawan Upadhyay pawan.domsiitr@gmail.com
……………………………………………………… Perspective | Chlorophyll | Qutopia | DoMS da Evince | Regardez I’economie
11 | DOMINATION, NOVEMBER 2011
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Perspective ……………………………………………………… Nature’s smart ideas...
Is Nature smarter than Man?
learnt to fly by mimicking the
effect. Lotus leaves have sur-
Yes; at least Leonardo da Vinci
flight of birds. But can birds fly
face-textures that deal with
thought so. He had once said
faster than modern fighter
water
“Those who are inspired by a
jets? Scientists say that a hum-
than most other plant leaves.
model other than Nature, a
mingbird in love is the fastest
The surface of the lotus leaf
mistress above all masters, are
thing on two wings - for its size.
interacts with water molecules
laboring in vain”. Leonardo
It
gravitational
such that the water rolls off the
could not help but be inspired
forces that would make a
leaf and takes the dirt with it.
by the engineering genius na-
trained fighter pilot faint from
Thus, the leaf gets clean when
ture. He observed the wings
the stress. Does this answer
it rains. This is called the Lotus
and flight of birds and bats and
our question?
Effect. Lotusan mimics the mo-
designed the “Ornithopter flying machine”. The modern day
experiences
molecules
differently
lecular structure of the lotus
Mimicking Nature’s design
leaf in such a way the lotus ef-
helicopter is based on this con-
In recent times, Sto Corp. has
fect that Lotusan developed
cept. The Wright Brothers also
developed an exterior coating
resists the growth of mold, mil-
derived inspiration for their air-
for buildings by copying na-
dew, and algae because water
plane from observations of
ture’s design. It is called Lo-
does not stay on its surface.
flight of pigeons. So, Man
tusan and is inspired by lotus
Water runs off a Lotusan-
……………………………………………………… Perspective | Chlorophyll | Qutopia | DoMS da Evince | Regardez I’economie
12 | DOMINATION, NOVEMBER 2011
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Nature’s smart ideas...
……………………………………………………… sealed building and takes off
more sustainable. The reason is
volves
the dirt with it. Lotusan is self-
that man-made systems and
waste from local shops and res-
cleaning just like the lotus leaf.
products exploit resources in
taurants which is then shred-
linear ways, refining them by
ded and sold as horse bedding;
high energy intensive methods,
once soiled, the cardboard is
using them inefficiently and ul-
collected and put in a worm
cooling termite moulds. Termite mounds are able to main-
‘
tain the temperature inside
their nest to within a degree,
timately
disposing
them as waste.
by 40 degrees or more. So by mapping the structure of the
tunnels inside termite mounds,
architects have been able to no
geon, and finally the caviar produced by the sturgeon is sold back to stores and restaurants. Thus a linear process, by which the cardboard would have ended up as a landfill, is transformed into part of a closed
air-conditioning.
They're able to stay cool using
Worms
sustained on this diet are har-
Those who are inspired by a model other than Nature, a mistress above all masters, are laboring in vain. - Leonardo Da Vinci
design high rise buildings that have
system.
vested and fed to Siberian stur-
even when the outside temperature might be fluctuating
composting
cardboard
‘
Consider the example of self-
collecting
In the ecosys-
loop system, at once conserving resources and earning reve-
only 10% of the energy of a
tem, one organism’s
conventional building of the
waste becomes another’s nour-
same size. East gate centre in
ishment which is termed as a
Can the business world use a
Harare, Zimbabwe is one such
closed loop system. Thus a
closed-loop system? In 2010,
example. This process of solv-
closed loop system is a highly
Walmart, the world’s largest
ing human problems using na-
resource efficient system.
retailer, adopted a closed-loop
ture’s
design
is
termed
Biomimicry. The central idea behind biomimicry is that nature has already solved many of the problems we are dealing today.
Is it possible to artificially create a closed-loop system? Consider the example of ABLE Project. It is developed by the Green Business Network in Kirklees
Closed-loop system Nature’s design, as discussed above, is not only much more efficient than ours but also
and
Calderdale
in
United Kingdom. It manages to transform a low-value material into a high-value product and generate money at each stage
nue.
business model, in which recyclable waste products produced at the customer’s end were used in manufacturing new products for sale at Walmart. P&G, the world’s largest consumer goods company, also has set the following targets:
Powering its plants with 100% renewable energy.
of the process. The project in-
……………………………………………………… Perspective | Chlorophyll | Qutopia | DoMS da Evince | Regardez I’economie
13 | DOMINATION, NOVEMBER 2011
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Nature’s smart ideas...
………………………………………………………
Using 100% renewable or
ject is one such example. The
coast evaporates at the front of
recycled materials for all
proposed design of this project
a greenhouse, creating a humid
products and packaging
is to create vast greenhouses-
environment suitable for grow-
cum-power-plants in the de-
ing crops. The water then con-
sert. This project is inspired by
denses on the matt black pipes
Namibian fog-basking beetle,
at the back of the greenhouse.
which has evolved a way to
The system produces five times
Designing products that de-
gather fresh water in the
the fresh water requirement of
light consumers while maxi-
parched Namib desert. In the
the greenhouse. It also has
mizing the conservation of
day, its matt black shell radi-
twice the energy output of
resources
ates heat; during the night, it
other solar-powered plants.
Having zero consumer and manufacturing waste go to landfill
NIKE Inc. the world’s largest seller of athletic footwear and apparel has the corporate vision of adopting a closed-loop business model in near future.
becomes slightly cooler than its surroundings, causing fog to condense on its shell. In the morning, the beetle tips itself up, and lets the water trickle into its mouth. The project imi-
Are there examples of biomim-
tates the beetle producing
icry being used in a closed-loop
food, energy and fresh water.
system? The Sahara Forest Pro-
Sea water pumped in from the
Article By -
Thus, as discussed above, it is possible to mimic nature’s smart ideas and create closedloop systems. Nature’s design is far more efficient and sustainable than ours. As Aristotle once said, “In all things of nature there is something of the marvelous”.
Sayantan Chatopadhyay sayantanuit@gmail.com
……………………………………………………… Perspective | Chlorophyll | Qutopia | DoMS da Evince | Regardez I’economie
14 | DOMINATION, NOVEMBER 2011
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Perspective ……………………………………………………… Systems thinking - Getting the bigger picture
When we try to assemble the
“Systems” is a pre-requisite
jigsaw pieces of organisational
which can’t be ignored. A sys-
world,
tool
tem is a web of interrelated
comes to rescue called Systems
and interdependent compo-
Thinking. In Simple terms, it is a
nents that complete the com-
way to view systems from a
plex whole. Our body has vari-
bility by adjusting, based on
broader perspective and un-
ous systems like circulatory,
feedback.
derstand the micro structures,
respiratory etc. The sales de-
patterns and cycles rather than
partment in an organisation is
focussing on specific events in
another example. Every system
the system. This unique ap-
has some common characteris-
proach to problems is inter-
tics:
one
important
woven with system dynamics which was founded in 1956 by
MIT professor Jay Forrester. To ingrain the concepts of systems thinking, understanding
fectly.
System should trigger a change on feedback.
System should maintain sta-
Coming back to systems thinking, its application on most difficult types of problems have been found quite effective where apparent solutions have
A purpose within a larger
failed and a need to raise the
system.
level of thinking has been
Specific arrangement of system’s parts so that the overall system works per-
found. Its use can be associated at individual as well as in organisations
where
com-
……………………………………………………… Perspective | Chlorophyll | Qutopia | DoMS da Evince | Regardez I’economie
15 | DOMINATION, NOVEMBER 2011
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Systems Thinking - Getting the bigger picture
……………………………………………………… plexities exist at every next
ran out of options to control
World of allopathic medicines
step before reaching a solution.
them, they protested and gov-
are full of CI-1 situations.
To make the understanding on this issue clearer, we need to
ernment’s response came with a lathicharge.
In counter-intuitive type 2, when we reach to the solution
analyse the real world exam-
Now, where can we put sys-
for a problem, an anti-problem
ples like the one which follows.
tems thinking in this matter!
arises. The primary reason for
In 1993, a peculiar event hap-
First we need to identify the
this phenomenon is: working
pened in Bangalore whose re-
flow of events. Or say “use the
against the flow in nature. It
percussions affected various
power of mind’s eye”.
can be related to a titration ex-
systems and gave us a reason to know Systems thinking in a better manner. Farmers were lathicharged during a protest and in that order government signed on a suicide note. It all started with a weed called
ple affected —> Complain to govt —> Expert committee formed —> solution found in beetle —> Beetle ate Parthenium.
periment where an extra drop leads to a sudden change. In phrasal term, last straw on camel’s back. Common example: consider a controversial movie which gets a ban. It attracts the interest of people
Hysterophorus
When entire mind focus is on
and that pulls them to watch it.
which affects the growth of
solving symptoms of the prob-
Another instance happens to
crops and its pollination cre-
lem ,we find a plausible solu-
be in beetle bailey cartoon
ates asthmatic problems to the
tion but the root cause remains
where, to solve the problem of
people who come in contact.
unaddressed which gives rise
increasing number of rats an
When people complained, gov-
to unintended consequences.
incentive of 1 $ was introduced
ernment acted upon the issue
In scientific terms, we call it
which led to more breeding of
by forming a committee to look
counter-intuitive type 1. Miss-
rats for the benefits
into the matter. In due course
ing the connectivity in nature
of time, they were able to
is a basic reason for CI-1.This
come up with a natural solu-
happens in various dimensions
tion, a beetle called Zygo-
including national level policy
gramma bicolorata which fed
decision making where we
on parthenium. But the story
have all kind of experts analys-
did not end here. Eventually,
ing all kind of situations. Some
beetles ran out of Parthenium
classic examples are: King toad
and started eating sunflowers
problem in Australia, elk prob-
in nearby farms. When farmers
lem in yellow Stone Park.
‘
attached.
‘
Parthenium
Parthenium weed —> City peo-
Great souls who walked this planet had eternity and universality as their window of perception. What we can do is to enlarge the window to learn the way systems work.
……………………………………………………… Perspective | Chlorophyll | Qutopia | DoMS da Evince | Regardez I’economie
16 | DOMINATION, NOVEMBER 2011
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Systems Thinking - Getting the bigger picture
……………………………………………………… In Thane and Jalandhar, this
connection, Donella Meadows
had eternity and universality as
case happened for real and
used a simulation model in
their window of perception.
people responded in same
1972 of earth systems which
What we can do is to enlarge
fashion.
predicted that earth will reach
the window to learn the way
the limit of economic growth in
systems work. For a manager,
150 years. This is a cumulated
understanding the importance
effect of missing infinite con-
of integration of knowledge
To address the root causes of
nectivity and using “me today”
and people is a top priority in
the problems as explained ear-
as window of perception to
order to achieve the desired
lier, what is needed is a larger
solve systems problems. Great
goals.
window of perception. In this
souls who walked this planet
How to resolve these problems:
Article By -
Mihirkul Vikram mihir517@gmail.com
……………………………………………………… Perspective | Chlorophyll | Qutopia | DoMS da Evince | Regardez I’economie
17 | DOMINATION, NOVEMBER 2011
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Perspective ………………………………………………………
Online Social Media & Its Impact In this age of online social me-
are leaving no stone unturned
that a product is good, he
dia, it has become imperative
in capitalizing it. Unlike the
propagates the information in
to be active on social network-
print media or electronic me-
positive light and he does the
ing sites and be the first mover
dia, where the companies have
same in negative light if he per-
in online advertising and pro-
to invest in advertising, online
ceives that the product is bad.
motion. The statistics show
media comes for free. Anyone
Online information flow is simi-
that there are over 100 million
can post anything from any-
lar to a town hall gossip, only
people on twitter and 750 mil-
where and moreover the online
difference is that the reach has
lion active users on facebook.
promotion
grown to exponential propor-
Anything that is posted on
among the global populace all
these sites goes viral in a frac-
by itself. Customer loyalty in
tion of minutes. Everyone gets
the age of online social media
to know about any thing, trivial
is a big issue as the customer is
or sensational that is happen-
well informed and he also
ing in any corner of the world.
makes sure that his neighbour/
Most organizations have learnt
online “friend” is well informed
the power of this medium and
too. If a customer perceives
gets
propagated
tions. The paradox of online media is that, while you launch a blitzkrieg of promotions, any slip or any negative image has an equal potential to be propagated as widely as possible.
……………………………………………………… Perspective | Chlorophyll | Qutopia | DoMS da EVince | Regardez I’economie
18 | DOMINATION, NOVEMBER 2011
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Online Social Media & Its Impact
……………………………………………………… A couple of days back, Anand
ample of Anand Mahindra who
care as in case of press releases
Mahindra, Vice Chairman and
has over 350,000 followers on
from the President’s office. In-
Managing Director, Mahindra
twitter, he not only tweets
dian politicians have lot to
Group tweeted a video link on
regularly about Mahindra prod-
learn before they could capital-
twitter which showed a Mahin-
ucts but also voices his concern
ize on the social media to con-
dra Scorpio pulling out a car
for social causes. Also, he
nect with the people. The mini-
stuck in mud somewhere in
tweets
contributions
mum effort they can put is to
South America. The same video
from his employees and in a
avoid creating controversies
about
link had prompted
with their tweets and
few other links which
that doesn’t mean
showed Scorpio ei-
closing the account
ther
and stop tweeting
getting
over-
turned or getting in-
altogether.
volved in some acci-
Film
dents. This was just a
Rukh Khan use the
paradox online media Most
social
sea-
their fans and launch
networking sites un-
promotional
derstand this paradox
events
for their films. The
and are careful in the they
networking
sites to interact with
soned users of social
way
like
Aamir Khan and Shah
small example of the poses.
makers
online
project
marketing
which starts well before the
themselves on these sites.
way motivates them. So he is
Once Shah Rukh Khan stated
connected to people not only
that he doesn’t work for him-
outside his organization but
self but works for the brand
also from within on twitter.
SRK. Similarly, the users who
This is a novel way of bonding
are cautious work for the brand
with the people who work for
they are projecting as them-
you and can be emulated
selves.
across the industries.
So maintaining an online pro-
If you follow Barack Obama on
ner over last six months and
file is an art which needs to be
twitter, you may realise that
subsequently have been suc-
mastered. Again taking the ex-
tweets are drafted with utmost
cessful in creating the hype
release of a film ensures that enough hype is generated that the movie recovers its cost in the opening week itself. In case of soon to be released movie Ra.One, the producers have been releasing teasers, videos and posters in a phased man-
……………………………………………………… Perspective | Chlorophyll | Qutopia | DoMS da Evince | Regardez I’economie
19 | DOMINATION, NOVEMBER 2011
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Online Social Media & Its Impact
‘
……………………………………………………… around the movie. They have
has the potential of an invisible
also launched online merchan-
weapon which is capable of
dise for kids and hope to capi-
The paradox of online
talize on the hype generated so
media is that, while you launch a
far.
blitzkrieg of promotions, any slip
brewing a revolution and bring-
‘
ing down governments.
or any negative image has an
The online social media is a
equal potential to be propagated
powerful tool if one under-
as widely as possible.
stands and masters the art of using it. But at the same time it
Article By -
Jagadish Vema Jagadish.vema@gmail.com
……………………………………………………… Perspective | Chlorophyll | Qutopia | DoMS da Evince | Regardez I’economie
20 | DOMINATION, NOVEMBER 2011
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Chlorophyll
……………………………………………………… Its wise to learn, its GOD like to create
“ There is a flower at my desk.. ” There is a flower at my desk It doesn't blossom, but it brings smile to my face Every time i look at it, i get mesmerized by its grace There is a flower at my desk....... I wonder who kept it there, who would have so much time to spare I can't help it rather i don't care, I waste my time locked in my thoughts I stare Sometimes when it glows, in that dim evening light Wish i could get lost in it, I think someday I might There is a flower at my desk....... It waits for me from dusk to dawn wondering why I left and where could I have gone It's always there for me, helping me in situations of extreme pressure wish I could tell that cute little damn thing, it has made my desk(rather me) a lot special There is a flower at my desk....... Now there is only one thing that i fear I don't want that flower to disappear I know we both are bonded with an unexplainable tie seeping into my soul that beautiful apple of my eye There is a flower at my desk.......
Poem By -
Manav Kaushik manav2502@gmail.com
……………………………………………………… Perspective | Chlorophyll | Qutopia | DoMS da Evince | Regardez I’economie
21 | DOMINATION, NOVEMBER 2011
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
DoMS-da-Evince Amitesh Jasrotia is 2004 batch pass out of DoMS, IIT Roorkee. He is currently working as Manger Ad Sales at Zee News. He is an avid reader of management literature. bookjelly.com, his personal website is an outcome of his strong inclination towards management literature.
Q. What are the common chal-
meeting 50 other people every-
lenges faced in the sales and
day and 10 out of those 50
marketing field of Media?
might be your direct competi-
dedicated people who work on
tors. So, in addition to knowing
different divisions. So, as a me-
the strengths of your channel
dia sales person, if you are not
or publication, knowing the
aware of who takes care of
weaknesses of your competi-
what, and who reports into
tion is essential. If you working
whom, it will hinder the infor-
for a TV or a radio channel,
mation flow and ultimately, the
knowing where your channel
revenue.
A. At a broader level, the challenges you face while working for a media organization or for that matter, a bank or an FMCG remain more or less the same. Media industry is structurally a little different because here you need to tag two ends – one at the client (people who give you the business) and the other at the media agency (people who’d bridge the gap between you and client, you can think them of as intermediaries, too) – and this is the foremost challenge for anyone working in media sales. a) Know your product. You can’t just walk into a client’s office, make your sales/ marketing pitch and accept him to buy your product/service. Remember, that guy must be
stands vis-à-vis competition in terms of Reach, Frequency, GRPs, CPRPs, is invaluable. b) Know your client and agency.
c) Know the right people and share a good relationship. Media is a highly relationshipdriven industry. Merely know-
Knowing your client may not be
ing people is not enough;
enough to seal the deal; you
knowing the right people and
need to know the inside out of
having good terms with them is
your agency, too. You should
important, too. A soar relation-
be aware of the whole hierar-
ship with a head media planner
chy at both the agency and the
or a principal media buyer can
client end. For example, HP
easily ruin your chances of get-
(Hewlett-Packard) has three
ting your channel or publica-
divisions – IPG (printers divi-
tion into the media plan. Be-
sion), PSG (PCs, laptops) and
sides, healthy relationships can
TSG
solutions).
also get you good references
OMD, HP’s media agency, has
which are quite pivotal to land-
(technology
……………………………………………………… Perspective | Chlorophyll | Qutopia | DoMS da Evince | Regardez I’economie
22 | DOMINATION, NOVEMBER 2011
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
DoMS-da-Evince ing jobs in media industry.
Limited
and
how
it
is
different from Zee News? d) Good
switch over to Business Stan-
negotiation skills.
Competition in media is prolif-
A: I had a great time working at
erating everyday and if yours is
Times Internet. In terms of ex-
not the top channel or the top
perience, I must say my time at
publication, then you’d better
Times shortened my learning
be good at negotiations. Now,
curve in sales. I joined Times in
how good you get at negotia-
year 2005 when TIL had just
tions goes in direct proportion
launched Timesjobs.com and
with how many negotiations
they want to hit the ground
you have been into, i.e., experi-
running
ence.
trenched competition as Mon-
Q: What are your roles and responsibilities with Zee News Ltd. and how did they change over your association with the group?
against
such
en-
ster.com and Naukri.com. It was my first full fledged stint in sales and admittedly, I wasn’t very confident to start with. I took some hard knocks initially but then gained confidence as I
A: At Zee Business (part of Zee News ltd.), my key responsibility is to generate revenue from FCT (Free Commercial Time/TV Commercials). At the same time, I am also expected to retain my clients from last year
cracked into new accounts.
up the food chain in media industry than anything else. At Business Standard, I was offered the responsibility of generating revenue from Special Features. For the uninitiated, Special Features are the 4pager supplements that often come along with the main newspaper and unlike the regular supplements such as Brand Equity and Corporate Dossier (ET) which are editorial-driven, they are sales-driven or paid. In
of the product that I am selling.
-generation gimmick. Aware as
Other than that, both organiza-
I was of the difficulty that
tions are fantastic places to
comes with Special features, I
work in.
still took up the assignment.
well. Not much has changed, candidly, from the time I
so far?
nue/target-driven job.
had more to do with climbing
to paper but are just a revenue
challenging role in your career
whatever avatar it is, is a reve-
urgency to change. My move
Zee News is different in terms
and make new acquisitions as
the end of the day, Sales, in
dard from Times, I had no real
short, they don’t add anything
Q: What has been the most
changed over to Zee News. At
sonians. When I decided to
However, soon I realized the trials and tribulations of selling something that has no visibility, no demand in the marketplace.
A: I would say my most chal-
In 10 months time, after doing
lenging role so far has also
a couple of feature, I quit.
been the role I would like to forget about. It’s an important
Q: How was your experience
lesson that I have no hesitation
working with Times Internet
to share with my fellow Dom-
Big lesson learnt: When you know you are riding a dead horse, don’t beat it and try to be a hero, just dismount! It
……………………………………………………… Perspective | Chlorophyll | Qutopia | DoMS da Evince | Regardez I’economie
23 | DOMINATION, NOVEMBER 2011
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
DoMS-da-Evince took me 10 months to take a
Kimapi
(Without
something new. It was almost
decision I knew was inevitable
hardwork, no achievement is
palpable. This initiative – to in-
after only 2 months in the job.
possible) – to me, this motto
vite alumni for interactive ses-
serves as the proverbial North
sions – itself shows that DoMS
Star.
has come a long way.
Q: How has DoMS, IIT Roorkee contributed to your success? A: DoMS, IIT Roorkee’s contribution to my professional life has been a significant one. I can vividly recall how a couple of initial class assignments insti-
Sadhyam’
Q: How was your experience during your recent visit to DoMS IIT Roorkee and what
Q: Any message for the readers, especially the current batches of DoMS?
were the salient changes that
A: a) Don’t kill your dreams, re-
you noticed?
alize them. Even if it takes you long, trust me, you’ll enjoy
gated my interest in brands
A: I had been looking forward-
and advertising. I still may not
ing to visiting DoMS since my
have fully reached the place I
last visit in 2008. And, I felt was
foresaw myself 7 years back
glad when the visit doubled up
b) A GPA of 10 or a GPA of 5
but the journey has been an
as both a leisure and an educa-
isn’t going to decide where you
enriching one, intellectually, all
tional one. I won’t go into how
will end up in life. It’s the point
credit to the roadmap I drew
the physical architecture over
(a) that will.
for myself at DoMS. The inputs
the campus has improved since
from professors, the values and
that’s a tad irrelevant vis-à-vis
the ethos of the institution sen-
the improvement in mental ar-
sitized me to explore the
chitecture I noticed. It was a
strengths that I never thought
privilege to interact with the
existed in me.
current batch – and I must say
I strongly believe in IIT Roorkee’s motto ‘Sharam Bina Na
during my talk, I could feel the
every waking hour towards the materialization of your dreams.
c) Take up life-lasting habits like reading and writing (I took up reading) and cultivate them. They are a great way to relax, to bust tension and to keep up with the world.
intensity and the zeal to learn
……………………………………………………… Perspective | Chlorophyll | Qutopia | DoMS da Evince | Regardez I’economie
24 | DOMINATION, NOVEMBER 2011
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Qutopia ………………………………………………………
It’s Exquizite, Kills your Quriosity and adds to your Quizdom. Need we say more? ‘Qutopia’ – A Utopia of the
best Biz Quiz Tidbits to wreck your brains! Rush in your answers to domination.doms.iitr@gmail.com,
prateekdps89@gmail.com before 30th November, 2011. The winner will have their names published in the next issue. Also, person getting the highest score in the current quarter (July-Dec 2011) will get a gift voucher. Answers in the next issue of DoMination.
Section A (1 Point for each correct answer)
1. Identify the logo?
2. What does “Adidas” stand for? 3. Identify the famous men’s clothing brand whose name can be inferred from a particular shape in the following logo.
……………………………………………………… Perspective | Chlorophyll | Qutopia | DoMS da Evince | Regardez I’economie
25 | DOMINATION, NOVEMBER 2011
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Qutopia ……………………………………………………… 4. ISO 4217 is the international standard describing letter codes for what?
Section B (1 Point for each correct answer)
1. Which large India retail chain proudly describes itself as 'The Family Store' in its advertisements? 2. Which company built the WW2 Spitfire? 3. Identify the logo?
Section C (3 Point for each correct answer)
1. Identify the logo.
Winners of Qutopia - 20 1. Ajay Kumar (Batch of 2011-13, DoMS IIT Roorkee) 2. Ruchi Gupta (Batch of 2011-13, DoMS IIT Roorkee)
……………………………………………………… Perspective | Chlorophyll | Qutopia | DoMS da Evince | Regardez I’economie
26 | DOMINATION, NOVEMBER 2011
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Regardez I’economie ………………………………………………………
Economic langour from a global vantage point If the month of August has
duress global economy will
paper. Once there is a default
seen uprising in Global Econ-
continue to feel the echoes in
in formal and final admission,
omy, the September neverthe-
its own strife for status-quo.
that country cannot pay; the
less has quavered further the
But the question which niggles
European Banks holding Greek
Economic situation. The Euro-
is how come Greece, a small
Bonds will have no choice but
pean Debt Crisis has persisted
European Union country; start
to spill out their losses. Further,
with the lack of competitive-
a chain of economic distur-
stocks of Financial Institutions
ness of the “old” Western
bances which in all probability
having European Banks Bonds
Economies, the claim of the
and
percolate
will flounder. But at present all
prescient
much
through the entire globe? It
the major players in this tur-
hyped Greece Meltdown looks
could be explained as follows.
moil are holding their cards
ever so imminent, but the
Greece Banks will take an im-
close to chest, and none of the
question remains when ,and to
mediate hit, and the invest-
European Banks are willing to
add further how much the rest
ments of European Central
disclose their investment in
of the World will be affected by
Banks (ECB) in Greece Govern-
Greece. No one can actually
it . As Long as Greece remains
ment for its borrowing will be
quantify the damage to the
on the brink, the already-in-
nothing more than scraps of
world if Greece is allowed to
about
the
possibility
……………………………………………………… Perspective | Chlorophyll | Qutopia | DoMS da Evince | Regardez I’economie
27 | DOMINATION, NOVEMBER 2011
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Economic langour from a global vantage point
……………………………………………………… sink. The Leaders, Policymak-
makes a very weak case for
pact not only to the individual
ers are not willing to take a
Rate hikes. The double digit in-
firms and sectors but also to
chance as if 2008 crisis is still
flation, which refuses to be
the government. Rupee has ap-
etched in their mind like an
tamed despite sustained in-
preciated by 23 paise to Rs.
iron
But
crease in key policy rates by
45.85 per US Dollar at the be-
unlike 2008 when the 'birds of
RBI, seriously sug-
ginning of the month, now the
same feather flocked together'
gests the policy co-
Rupee has ended at all time
and notwithstanding the gloom
nundrum of our Gov-
low since May 2009 at 49.455
the policymakers around the
ernment.
per US Dollar. The reason be-
indentation.
‘
globe were speaking in a very
similar and optimistic tone to tackle the after-effects of Lehmann
Brothers
bankruptcy,
there are different opinions
about the Greece situation.
But the question which niggles is how come Greece, a small European Union country; start a chain of economic disturbances which in all probability and possibility percolate through the entire globe?
Even BRICS in the last summit,
$
hind this in general is the global
‘
clad
sell offs in shares and the US currency
extended
gains
against major economy but the main cause of worry is Europe’s Debt Crisis. The trembling Ru-
pee might adversely affect the
didn't have any common say
interest of the investors. The
about helping out Greece.
Many of the rate
Let’s now analyze the domestic
sensitive sectors would
well for IT Firms like TCS and
situation vis a vis the effects of
be much better off in case RBI
Infosys, since it improves the
Global tremors and weak Policy
has done with Rate hikes like
realization in Rupee terms.TCS
making which has further wors-
Auto,
Capital
which derives 53% of its reve-
ened the inflation and decel-
Goods and Banking. There is no
nue from US Market and Info-
eration
economic
consensus among the fund
sys which has 2/3rd of the
growth of India. Reserve bank
managers over RBI’s future pol-
revenue from US, would defi-
of India Governor D Subbarao
icy course, some believe RBI
nitely be benefited from a Ru-
must be a troubled man these
will continue on Policy Tighten-
pee Slide. The firms which ex-
days, as he is being very
ing with another 25 bps rate
port most of their produce are
‘reserved’ when it comes to
hike, while some says it will
very likely to gain from the de-
rate hikes. We have seen the
take pause because rate hikes
preciation
difference in opinion between
not helping India on Inflation-
rency. While the import ori-
RBI Governor and UPA Govern-
ary front. The US Dollar- INR
ented firm like SAIL, STERLITE,
ment on Rate Hikes. The do-
rate of exchange is an impor-
Reliance
mestic slow growth in addition
tant indicator of investor senti-
(Crude Oil is mainly Imported)
to turmoil in global economics
ments and can significantly im-
etc are likely to lose.
of
the
Infrastructure
depreciated Rupee might augur
of
local
Industries,
cur-
BPCL
……………………………………………………… Perspective | Chlorophyll | Qutopia | DoMS da Evince | Regardez I’economie
28 | DOMINATION, NOVEMBER 2011
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Economic langour from a global vantage point
……………………………………………………… Moreover, if further depreci-
Growth seems to be a question
alarmed RBI as year again hiked
ated an already weak Rupee
mark, a sort of impasse for In-
the interest rates; in its 12th
could also negatively impact FII
dian Economy. Falling Rupee
hike in last 18 months. But
Inflows into the Indian Markets
does not augur well for the in-
even the RBI Governor lacks
as investing in India is becom-
flationary situation which has
both the logic and the words to
ing costlier, and there is always
kept RBI on its toes. As India
explain how such steps will re-
a Flight Risk involved with FII.
and its citizens ride the
joy
duce the demand for food or
wave; buoyed by the rapid eco-
for that matter the food infla-
nomic growth rates and newly
tion. So what really is at the
explored bilateral ties; there is
helm of such extreme food in-
still a million dollar question
flation? Some say the bour-
Rupee Depreciation along with a randomly sputtering US Economy and the opposite signals sent by current Euro-
geoning
pean Debt Crisis could
class and hence
further crimp foreign investments.
This
phenomenon
was
the increased urban demand is the culprit; as the
highly noticeable on
increase in food
the so called Dooms-
production
day in Dalal Street, 22nd
up with the swing
2011. The BSE Sensex
in demand. Ex-
has taken a steep ber 2008, i.e.it nosedived 704 points to a pitiable 16361.15 and the Nifty index fell 209 points to close at 4923.65. The deepening European Debt Crisis and the prediction of another Rate Hike by Reserve Bank of India is yet another reason for this huge downfall in the Stock Markets.
has
not been keeping
September
downfall since Octo-
middle-
port
of
food
which still remains unearned -
items is too insignificant to af-
“ How to Tame hunger”. After
fect inflation anyways.
hanging in the economic firmament; like the sword of Damocles, for well over two years, “Food Inflation” hit 9.78% in August this year. This rapid increase in food inflation combined with the sky rocketing oil prices; has troubled the haves and the have-nots alike. As a
Now talking about the plight of
contingency measure, as it has
the hoipolloi, Inflation versus
been
doing
all
along,
an
Indian
Rupee
finally
against
Dollars
amidst
rose the
speculation that Reserve Bank of India has started to sell dollars in the Forex market at around Rupees 49.8 per dollars.
Unlike
countries
like
China, India allows Rupee to float freely according to market situation, but RBI might not allow Rupee to fall further.
……………………………………………………… Perspective | Chlorophyll | Qutopia | DoMS da Evince | Regardez I’economie
29 | DOMINATION, NOVEMBER 2011
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Economic langour from a global vantage point
……………………………………………………… According to latest data, India's
resorted to the panacea of ag-
money, are making the Indian
food inflation eased to 8.84 per
gressively boosting domestic
market even more dubious and
cent for the week ended Sep-
demand through easing of
destroying the moral fabrics of
tember 10 against 9.47 per
Monetary Policy and strategic
the nation. The Government
cent a week ago. Fuel price in-
fiscal expansions, for any and
needs to ensure whether it
dex climbed to 13.96 per cent
all pains in the neck. One can
wants to stay on the policy of
as compared to 13.01 per cent.
earnestly hope for revival of
disinvestment to cover the fis-
The primary articles index was
Global Economy and Capital
cal deficit targets, or to have
at 12.17 per cent compared to
Markets to revive supports to
definite Monetary policies be-
13.04 per cent a week earlier.
Private Investments up to a
cause the gravity of the situa-
certain extent. The Projects like
tion suggests India to take a
Delhi Mumbai Corridor can
proper and firm stand on eco-
prove to be a boon for fetching
nomic front and imbue the
more investments. The Political
grim of the prima facie eco-
uncertainties like 2G case pro-
nomic stupor with positive
ceedings, red tapism, crony
hues of de facto growth rates
capitalism and embezzlement
and de jure authenticity of the
of huge amount of black
Jan lokpal. AMEN!!!
Although India is still doing well on Exports front, but overall Indian Growth is beginning to slow down, developments in Europe and the US threaten further damages. India needs a sustainable Growth plan, unlike the earlier times when India
Article By -
Shibi Singh shibi.singh@gmail.com Jubin Mohapatra jubin59@gmail.com
……………………………………………………… Perspective | Chlorophyll | Qutopia | DoMS da Evince | Regardez I’economie
30 | DOMINATION, NOVEMBER 2011
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE ROORKEE - 247667, INDIA Comment/Feedback Mail to : - domination.doms.iitr@gmail.com Follow us :Blog Page- http://domsiitroorkee.blogspot.com/ Twitter Page- http://twitter.com/#!/doms_iitroorkee Facebook Page- https://www.facebook.com/pages/DoMS-IIT-Roorkee/156383884413349