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Disclaimer - The Views & Opinions expressed in Nexus are personal and do notnecessarily reflect those of Team Nexus, Communication Cell or Department of
Management Sciences, (PUMBA) University of Pune. Few of the images in this
magazine are taken from internet and are used purely for academic purposewithout any intention of copyright infringement. For any suggestions please
write us on [email protected]
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HOD's ADDRESS
Nexus, the quarterly magazine of Department of Management Sciences,
University of Pune (PUMBA) is an attempt by the students to explore their
creativity and share their insights. It consists of articles from the students ofPUMBA, has a space dedicated to industry experts and articles from the
alumni where they share their experiences and learning.
The current edition shares interesting thoughts on the current scenario of
India and how managers can use it as an opportunity. It has been a pleasure to
witness the efforts of the students and watch them grow.
I appreciate the efforts of the students and the faculty of PUMBA who have
made Nexus a possibility through their articles, co-ordination efforts and
continuous support. I wish the team all the very best for their future
endeavours.
Warm Regards,
Dr. (Capt.) C.M.Chitale,
Professor & Head,
Department of Management Sciences, (PUMBA)
University of Pune
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It is a pleasure to see the new issue of NEXUS, the U:th sensation magazine of Department
of Management Sciences, University of Pune. Within this you will find a host of issues
covering a range of subjects interspersed with interesting articles.
The hard work and diligence with which communication cell works to bring to us each
edition of NEXUS is evident in the quality of each new edition. The Edition owes much to
the many contributors of the articles who have shared their knowledge. One of the aims of
this activity is to stimulate interest in different areas and it is gratifying to note the response
through the years that NEXUS has received. I am proud to notice the improvement in
expression and style of writing through the years. Writing skills is something which is not
specialization specific and having a habit to read contributes a lot in enhancing your
knowledge base. Since knowledge knows no boundaries, the more you learn, the more you
will be equipped to face challenging situations.
Once again I will like to congratulate team nexus for their remarkable effort. Keep it up!
Lastly, when it comes to knowledge and creativity there is nothing good or bad so leave all
the qualms behind and enjoy reading!!
Regards,
Dr. Prafulla Pawar
Faculty Coordinator,
Communication Cell,
PUMBA
FOREWORD
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CO-ORDINATOR'S MESSAGE
MBA in a year has taught us many things the most important being the
practicality of professional life. PUMBA has taken the knowledge and polished it with
reality, introducing us to new ways of reaching excellence. The one thing I shall take
away from here is the new habit I have cultivated; it is the habit to READ. It sure has
transformed the thought process-Reading to understand the market, the state of the
economy, the 'rags to riches' story of the new entrepreneur. Reading to learn from other
peoples mistakes and to learn about new opportunities. I would also like to welcome
the new batch of PUMBAites. Welcome to the world of management, where the
Economic Times is our bible and the stock market, our pulse. Be ready to be trained in
the nuances of business and to be groomed to become the perfect manager. In fact,
you have already taken the first step by taking admission in PUMBA, which, at the end
of two years, will give you about 200+% return on investment and definitely a lifetimeexperience.
With that in mind, we bring to you the new edition of Nexus which will help you
learn and grow. Nexus, the quarterly magazine of PUMBA, comprises of articles
submitted by the students of PUMBA. So, happy reading and wish you have a fun
filled and eventful journey in PUMBA!
Regards,
Nupoor Agrawal,
Co-ordinator,
Communication Cell,
PUMBA
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Dear Readers,
Welcome to the August Edition of NEXUS-New and Exclusive Youth Sensation,quarterly magazine of Department ofManagement Sciences, University of Pune
(PUMBA).
We, at PUMBA strive each day to keep up thename of one of the top most universitydepartment of our country. This edition ofNEXUS brings to your table a plethora ofarticles giving you a wholesome experienceunder the covers of a single magazine.
Our country is in a juxtaposition ofcontrasting situations. We are pacing
towards becoming a developed nation withfull vigour but at the same time there areincidents of ignominy which have questionedour growth potentials. This gap is what I havetaken up as the basis of the cover story of thisNEXUS. My aim is to encourage the idea ofincluding MBA graduates in managing thedevelopmental efforts. The cover story aimsat finding opportunities for managementgraduates to fix the loop holes in India'sgrowth story.
In the section of Alumni, we are privileged toreceive an article from our alumnus Mr.VipinRamdas who has written about his learningon dealing with bosses. We are proud todiscover that he is also writing a book on thesame subject.
I am delighted to introduce to all, the newsections of NEXUS. First is Discussion Forum
where our Prof. Anil Agashe and few studentshave shared their opinion on a sensationaltopic and second is Okonomie (Economics)where I have included an article written by
me a year back but has striking relevance inthe present time.
I would like to extend sincere gratitude to our
HOD Dr. Capt. C.M. Chitale Sir for giving usthe opportunity to bring out NEXUS.I wouldalso like to thank our faculty CoordinatorDr. Prafulla Pawar Sir for supporting us andgiving his valuable feedback from time totime. I would also take this opportunity tothank Prof. Anil Agashe Sir for sharing hisviews and contributing in the DiscussionPage of NEXUS.
There are few people without whose
contribution and assistance Nexus wouldn'thave materialized from few ideas to amagazine. Firstly I would like to thank theCoordinator of Communication Cell,Ms.Nupoor Agrawal for entrusting me withthis responsibility and supporting the effort.I would also like to thank Ms.Tanvi Pande andMs. Nupoor Agrawal for helping with theediting work and Mr.Vinit Khandelwal andMr.Hakimuddin Fakhruddin for creativeinsights and designing.
I hope our readers will enjoy the content ofthe magazine. Creative criticism andfeedback from the readers is alwayswelcome as it helps us in connecting in aunique and effective way.
Thus, on behalf of Communication cell, Iwould like to present to all, the AugustEdition of Nexus.
Best Regards,
Rashi KaushikEditor, NEXUS
FROM THE EDITOR's DESK
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1. The Cover Story
By - Rashi Kaushik - 6
2. Marketing Mania
By Atul Gupta 9
3. Human Resource
By Shruti Nikam 11
4. Money Speaks
By Neha Bhide 13
5. Sectornama
By Anand Maniyar 16
6. Book Review
By Radha Deodhar -19
7. Ad-diction
By Rahul Wane 21
8. Sports Talk
By- Nupoor Agrawal 24
By- Navin Bhat 26
9. Alumni Section
By Mr. Vipin Ramdasi -28
10. Discussion Forum 30
11. My Opinion
By Mayur Jagtap 33
12. Okonomie
By Rashi Kaushik 35
13. Management ExampleBy Rohit Raina 37
14. Creative side
By Atul Gupta 39
15. PUMBA MIRROR- 41
CONTENTS
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Cover Story
MBA Opportunities:
Broadening the Horizon
By Rashi Kaushik
rogressing, amidst Scandals,
Confused, Enthusiastic, Dense- few
words to describe India's state ofPaffair, in fact, can aptly define the state of my
thoughts in compiling this cover story. There
is a cacophony of words and images, I have
too much to write, I have all the resources,
vocabulary is not a problem (thesaurus is
there to my rescue) but what is proving to be
an arduous task is to connect things and put
them on a single canvas. India is not only
diverse in terms of language, culture and
habits but its issues are diverse too. I am
amazed at the fact that ours is a nation which
on one hand, is distinguished for being one of
the fast growing economies with the best
manpower resource, on the other hand it is
the same economy caught in a cyclone of
issues. We are not talking about a single
decision gone wrong, we are talking about a
series of disasters with a domino effect. It has
resulted in a situation nothing better than the
state you find your headphones in- all
entangled, when just a day before you had
patiently detangled it.
But before jumping into disastrous
conclusions and sentencing a judgement
against the nation let us not forgetmanagers
don't make conclusions they study the matter
and deliver solutions. So looking at the half
filled portion of the glass, I see a country with
the richest legacy, the largest society of
world's best scholars and a place which has
transformed itself from a third world country
to modern state keeping in pace with the
globalization. We have kept the ethics alive
but we have smartly given it a twist of
efficacy. We are the country with best
cricket players, best economists, soulful
renowned singers, world's richest people
and the one with maximum youth
population Considering our position fifty
years ago we have transpired miraculously to
the present day. But while looking through
the magnifying glass these examples portray
only a superfluous glory. The current turn of
events have exposed to the world the
sensitive side of India.
Does anyone believe that corruption has
infested India just a decade ago? The answer
is NO, it's the recent upheavals that have
surfaced the scams and have changed the
history and future for our ruling government.
As a student of economics I have learnt about
all possible trade-offs in economics like those
between inflation and growth, population
and growth etc. all propounded by worthy
economists but the latest one that I have
learnt is between corruption and growth
which though not published in any book inthe world is firmly believed and upheld by our
politicians with utmost integrity. Cricket,
.
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being the religion of India hasn't been true to
its customs lately but nonetheless I praise the
few who have respected the sport and the
fans' undoubting faith in them. Speaking of
religion, what has collapsed is the spirit ofdevotees on a pilgrimage to Kedarnath shrine
when it was hit by the fury of a mighty river
which wiped out a complete region along its
flow and took with it lives of many. Also what
shouldn't, but is following suit is our currency
value which is dwindling as the days are
passing and the only government measure in
notice are the opinions passed by few in
diplomatic words. The situation has entwined
India in a web trapping the stride towards
growth. We just don't have a state to rebuild
we aren't even ready with firm basic
infrastructure in any city to bear the burden of
development. Corruption the pet word of
today's language has infested each functionand is cutting the wings of progress.
All in all the things are in disarray, but at
such times few words guide you towards an
optimal direction and such are the words of
Peter Drucker, The greatest danger in times
of turbulence is not the turbulence It is to act
with yesterday's logic. Problems have beenthere and will always be, it is time to grab this
as an opportunity to restore and reboot. It's
not about theories, equations, deductions,
investigations it's about simple logic,
planning, controlling and collaborating. Wait
a bit, aren't these functions of management.
Indeed the missing link is the management
skills at the right place and of the right kind.
Ever wonder why an employee is worst hit by
inflation, it is because he is always under a
scanner. Be it the company or tax laws all
have given barely few loopholes for him to
shirk the burden of increasing taxes. Why
can't each individual of our nation be it the
president or a beggar be made an employeeof the country.We have proudly realised that
corruption, 'jugaad' and wanting special
privileges is in the blood of Indiansbut we
haven't thought of ways to curb this desire
spoiling many lives. Professionalism is must
to run the country. At present we have a pack
of leaders looking out for their own interest
there is a need to transform the entire system
into a corporate setup. There shouldn't be
state governments there should be
departments and the roles shouldn't be of
ruling but managing. The idea may sound like
a picture from a dream or a fairy tale but it just
needs some work to turn it into a reality.
Indeed just a nexus of country leaders andteam of managers.
This is the right place indeed to share
one experience of mine, the other day I visited
my father's office where one of his colleague
asked me so Rashi what are you doing
now? to which I proudly replied Uncle,
MBA, the word was said and forget fewwords of encouragement, uncle started
discussing the hot news filling up the
tabloids about how MBA institutes are
shutting down, the number of applicants is
falling and MBA as a course has lost its glory.
The moment there I couldn't disagree more; in
fact the need of the hour is managers. There is
a sound team of economists, scientists,
agriculturists and industrialists but what
results is that, these propose solutions that
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clash each other's interest and get lost after
an uproar. Managers need to be appointed for
finding the right balance between these
scholarly interests. MBAs look for placements
in huge corporate setups whereas thisavenue is completely left undiscovered. What
can be bigger than managing the efforts of
growth of India? Politicians don't get scared,
none are conspiring to steal your beloved
seats, MBAs are required to be in the
backdrop and you can still run the show. MBA
institutes closing should be good news rather
than bad, as it indicates that the field is
getting refined and those who can deliver are
managing to stay put.
The irony being how can jobs for
managers ever run out in an economy which
is still developing and more than that is facing
a situation of mismanagement. There is just a
need for realisation and acceptance.
Realisation that MBAs are not just meant for
companies there are meant for management
roles and acceptance on the part of great
people who might have to share their duties
and responsibilities with us just to make India
a better place.
Talking about opportunities for MBAgraduates how can I bid adieu without
dedicating a place and a few words here for
my fellow aspirants. Many of us perceive the
area that I am referring to as quick sand. Once
you get into it getting dirty is inevitable and
hence we stay away. But aren't these the
ultimate management roles we aspire ofundertaking. For an MBA in marketing
imagine devising strategies to attract foreign
governments to invest in India or simply just
market an idea of a farmer to sought
investments for his product. For the budding
HR managers what can be more challenging
than coordinating the human resources of a
country, ensuring balance growth and
standard of living throughout the nation.
These are just to mention a few, there is an
ocean opportunities waiting for you to plunge
into.
Our work is to fit the jigsaw puzzle
regardless of what the puzzle is made of. We
should be able to play with situations, use all
permutations and combinations and match
things in a win-win situation for all. A secret
recipe to success in our field is to master the
game of chess and bring your experiences
from the game to real world.
Remember our uniqueness lies in our
approach and not in the result, so make theopposite person value your approach.
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MARKETING MANIA
POLITICAL BRANDING
By Atul Gupta
henever I look at politicians, one
thing that comes to my mind is
what is that quality whichWmakes an average looking person so
charismatic that people willingly follow them,
sometimes blindly. In marketing jargon, we
refer to this in terms of branding. Let us
understand this from a small example. Here,we, the voters will be addressed as
consumers, whereas the politicians will be
addressed as brands. In normal course, a
consumer buys a product, which appeals to
their lifestyle, needs and suits their pocket. In
politics, consumers select those brands,
which appeals to their lifestyle, as how is the
brand? Will the brand be beneficial to theconsumer? When we talk of this concept in
American context, a common American will
think that whether the brand (candidate) will
be helpful in getting him a job or will be
helpful in reviving the economy. When we talk
in the Indian context, especially the most
important state, politically, Uttar Pradesh, a
consumer will look at whether his brand is of
his caste? Or from the same Gothra that he is?
Now we come to the need part of the
definition. A common US citizen, will analyze
whether the brand will be able to match his
needs, it may be economic needs or the
patriotic needs, as, will the brand be able to
take a revenge from Taliban? Need for a
consumer from UP means the need for alcohol,
immediate need for cash for which the
consumer will sell his/her votes.
What typically is a political brand? A political
brand is a transformation of a dull concept
of politics into a dynamic commodity.
Though using the word commodity may not
be appropriate in this context but it suits well
when we talk about it in today's scenario. A
political brand, unlike in the older days, need
to be appealing and communicative as well.
Political branding is an art, where the brand
needs to get deep into the pulse of a consumer
and keep them engaged, so that the brand
visibility is increased and in turn brand recall.
The political landscape nowadays has
become much liberal and quite complex
hence recognizing a brand has become much
more difficult. That is why branding in the
political arena has become so important.
Two of the most successful brand in politics,
which I can recall is Obama and Modi. Let
us take these two brands as a case study for
the purpose of understanding, how political
branding can make or break a leader? First,
let us look at Obama's case. Obama gave a
new dimension to political campaigning and
political brand building. Obama's USP is his
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HUMAN RESOURCEHuman Resource Management
Mere theory or desperate need of the hour
By Shruti Nikam
he only vital value an enterprise hasis
the experience, skills, innovativeness
and insights of its people.TThese words by Leif Edvinsson, SwedishIntellectual Capital guru in Corporate
Longitude hold a meaning deeper than what
is perceived by the superficial mind.
Human Resource Management is often
regarded as the easiest branch of
management and is thought of being opted
for by people who cannot deal with real
work. In reality, being trained to deal with
the human nature and the human mind on a
day-to-day basis is harder than it looks. The
human mind and the human nature is not a
tangible thing which can be dealt with by
using specific rules and tools. Therefore, it is a
challenge to recognize and realize how a
certain mind reacts to certain situations and
how, in the crudest words, it can bemanipulated.
This has been succinctly described in a single
statement by Roger Enrico, Vice Chairman of
PepsiCo, referring to areas like HRM as
opposed to quantitative factors:
The soft stuff is always harder than the hard
stuff.
Human Resource Management is no longer
just a theory. The world, in recent times, iswitness to many notable instances where
handling the human resources in a different
way would have changed the outcomes.
Taking India into consideration, we can
easily say that no person will forget the
Maruti-Suzuki Manesar plant incident that
took place on July 18, 2012.
The incident, which was a violent result of a
year-long conflict between the Maruti Suzuki
Workers' Union (MSWU) and the Maruti
management, resulted in the death of an HR
Manager and caused injuries to almost 100
managers and supervisors of the company.
The piercing questions in everybody's mind-
what happened in a couple of minutes that
turned a five-month long peaceful protest
into one of the most violent and worst ever
incidents to be faced by a company with
regards to its employees? Was it the phone
call from a senior manager, retreating from
the understanding and agreement with the
union? Were the union leaders who protested
the al leged reversal of the decision
threatened inside that negotiating room? Didunion members rush into the negotiating
room to protect their leaders who they feared
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were being threatened or attacked? Was the
fire deliberately started or was it an accident,
in reality a short circuit? Was Awanish Kumar
Dev's death an accident or a brutal murder?
Nobody has found the answers to these
questions. But could this incident be avoided?
Yes.
The answers to all these questions are not
clear and probably will never be. But what is
definitely clear is that there was a resentment
brewing among the workers towards the
management and the company. This was
because of a lack of recognition for the
workers, lack of stability for them in the
company, lack of due respect to their opinions
and demands and also a lack of freedom to the
workers to form their union. The MSWU was
formed by the employees after adhering to
pre-conditions laid down by the
management so that it would allow the
Haryana Labour Department to register the
Union.
This is clearly an episode of handling the
human resources of the company in an
untactful manner. According to reports, the
managers and labour officers who visited the
plant were fully aware of the brewing
resentment and yet they tried to do nothing
about it. This shows a lack of care and respect
towards the employees and this could havebeen definitely changed. If the management
had given due importance to the employees'
demands and met them through compromise,
they probably would not have reacted as they
did. Had the management given them the
freedom to form their union, the workers
would not have felt that the management is
not supportive of their concerns. Had the
management taken serious notice of the
resentment growing among the employees in
time, they would not have lost Awanish
Kumar Dev to the violence that hit the
Manesar plant and his family would not have
been left without a son, a brother, a husband
and a father.
Thus we see that managing the human
resources of an organization, be it a small firm
or a large corporation like Maruti, is not an
easy job. It requires awareness and courage
to offer the employees what actually needs to
be given; it requires the guts to be selfless to
do the right thing towards your human assets;
it requires diplomacy and the knack to discuss
and compromise and resolve issues in such a
way that no party feels like the loser.
In today's world, where people are becoming
more aware of their worth, Human Resource
Management is more than just a theory to
learn. It is the need of the hour. It is a practice
to be followed not by HR managers alone but
by everyone. It is a way of working to be
developed by every professional in order to
survive the corporate world.
To conclude, a quote by Immanuel Kant,
German philosopher seems apt:
Always recognize that human individualsare ends and do not use them as means to your
ends.
If every organization realizes the importance
of these words, the corporate world would be
a better and safer place to be in!
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slowdown in growth there is increasing
pressure on RBI to decrease the policy rates.
Under such conditions foreign investors tend
to stay away from investing. This further
affects the capital account flows of India and
puts a depreciating pressure on the currency.
5. India is the net importer of OIL and
GOLD. Due to fall in gold prices, citizens are
buying more gold which is increasing the gap
between imports and exports and thus we
are facing huge current account deficits and
putting further pressure on the rupee. Oil
prices have soared leading to huge current
account deficits.
The impacts of rupee depreciation are both
positive as well as negative. The rosier side is
for exporters, as they will receive more money
for the same amount of goods exported as
before. Ex: An exporter receives Rs. 58,00,000by selling 1,00,000 units of a product which
earlier helped him earn only Rs. 53,00,000 for
the same amount of goods. Thus, exports
earn more now. Companies borrowing money
from other countries will benefit big time as
they get more rupees for the dollars they
bring in. Similarly, families of non-resident
Indians (NRIs) remitting money from foreigncountry to India will get more rupees. If a
foreign company is planning to invest in
Indian business, for lesser dollars they will
get more value in India. Foreign travellers
coming to India will benefit too as they get
more for the bucks.
But all is not green for importers, they would
receive much less for the same amount ofgoods. In the above example, the importer
will have to pay Rs. 58, 00,000 for the same
IMPACTS OF RUPEE DEPRECIATION:
amount of goods for which he paid Rs. 53,
00,000 earlier. Thus, imports become costlier.
Indian companies planning to invest in other
countries will find it more expensive to do so
as compared to earlier. Overseas travel will
become costlier as you need to allocate more
rupees to get the same amount of dollars.
Parents who have their children staying
abroad will feel the pinch too as they need to
increase the budget set aside for the
purpose.
RBI can sell forex reserves and buy Indian
Rupees leading to demand for rupee. But
using forex reserves poses risk also, as using
them up in large quantities to prevent
depreciation may result in a deterioration of
confidence in the economy's ability to meet
even its short-term external obligations. And
not using reserves to prevent currency
depreciation poses the risk that the
exchange rate will spiral out of control. Since
both outcomes are undesirable, the
appropriate policy response is to find a
balance. Recent data shows that RBI had
indeed intervened by selling forex reserves
selectively to support Rupee.
The rationale is to prevent sudden capital
outflows and ultimately lead to higher
capital inflows But India's interest rates are
already higher than most countries. This was
done to tame inflationary expectations. RBI
can take steps to increase the supply of
foreign currency by expanding market
participation to support Rupee. RBI can
increase the FII limit on investment in
g o v e r n m e n t a n d c o r p o r a t e d e b t
instruments. It can invite long term FDI debt
MEASURES TO BE TAKEN:
.
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funds in infrastructure sector. The ceiling for
External Commercial Borrowings can be
enhanced to allow more ECB borrowings.
Government should take some measures to
bring FDI and create a healthy environment
for economic growth. Key policy reforms that
should be initiated includes rolling of Goods
and Services Tax (GST), Direct Tax Code
(DTC), FDI in aviation and retail, Companies
Bill and diesel decontrol. Efforts should be
made to invite FDI but much more needs to be
done especially after the holdback of retail
FDI and recent criticisms of policy paralysis.
The government took steps recently to loosen
rules for portfolio investment in the Indian
market, indicating its desire to sustain
external inflows. The measure to increase
External Commercial Borrowings (ECB) to
$10bn will help in borrowing in dollar at a less
cost. It may take similar steps to encourage
FDI as well, helping sustain external funding.
The Indian Rupee has depreciated
significantly against the US Dollar marking a
new risk for Indian economy. Grim global
economic outlook along with high inflation,
widening current account deficit and FII
outflows have contributed to this fall. RBI has
responded with timely interventions by
selling dollars intermittently. But in times of
global uncertainty, investors prefer USD as a
safe haven. To attract investments, RBI can
ease capital controls by increasing the FII
limit on investment in government and
corporate debt instruments and by
introducing higher ceilings in ECB's.
Government can create a stable political and
economic environment. However, a lot
depends on the Global economic outlook and
the future of Eurozone which will determine
the future of our currency.
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SECTORNAMA
Job is half done: RBI
By Anand Maniyar
iven the noise in the media and
quantum of clarifications relating
to interpretation of various clausesGof the new bank licence norms from various
entities and applicants, one would have
thought the number of players seeking bank
licences was more than 100. RBI was flooded
with the requests for interpretation of itsrules for granting of new banking licences
and for clarifications on the 'ambiguity' in
various areas, as more than 100 entities had
evinced initial interest in seeking permission
to set up banks.
However, after the last day of submission ofst
application i.e. on 1 of
July 2013, only 26 public
a n d p r i v a t e s e c t o r
companies have applied
for it. Most of the top
corporate houses in the
country had lined up for
bank licence, and so did
s o m e s e c o n d r u n g
players. However, themad rush that was
expected earlier was
clearly missing. It was one of the rare
opportunities as earlier RBI had opened the
door of banking sector for private player only
twice. Two decades ago, in 1993, when the
Reserve Bank of India (RBI) opened doors to
new banks for the first time, there were 113
applications. A decade later, in 2003, when
applications for licences were sought a
second time, there were around 100
applicants. This time, there are just 26. This
is after it was reported that just about
everyone was keen to enter the banking
sector. After all, it is a lucrative business as it
gives one access to cheap deposits and there
is massive potential for growth as only 35
percent of India's adult population has
accounts with banks and other financial
institutions compared to a global average of
more than 50 percent. On the last day for the
submission of applications for bank licences,
saw a rush, but not the anticipated
stampede.
RBI released its guidelines for licensing of
new banks in February this year, asking the
aspirants to submit their applications by July
1, 2013. Later, the central bank asked all the
interested parties to seek any clarifications
they might have on the issue by April 10. A
large number of clarifications were relating
to interpretation of various clauses of the
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new bank licence norms, as many entities
had complained of 'ambiguity' on various
fronts in the guidelines.
Under the 'Fit and Proper' criteria, these
applicants would need to have a past record
of sound credentials and integrity and be
financially sound with a successful track
record of 10 years. This is another criterion
that had attracted a large number of
clarifications, especially about the feedback
that RBI might seek from other regulators and
agencies in this regard. RBI also made it clear
that it wants clean promoters and it will do a
background check. For instance, it will seek
information from the Central Bureau of
Investigation, the Income Tax department
and the Enforcement Directorate before it
grants licences.
The reason for such fewer applicants could be
the stringent norms levied by the central
bank for issuing licence, both in terms of
monetary requirement and compliance
Analysts point out that tight priority sector
lending norms and doubts about meeting
requirements in terms of CRR (cash reserve
ratio or the amount banks are expected to
park with the RBI) and SLR (statutory
liquidity ratio, or the amount banks are
expected to maintain before providing credit)
would have persuaded them to stay away.
Non-banking finance companies (NBFCs)
may find the norms particularly challenging,
with the RBI in no mood to give them more
time to meet the CRR and SLR conditions. The
banks have to meet the CRR and SLR
conditions at the time of starting operations.
Theoretically, those angling for licences have
two years to meet CRR and SLR norms as thelicensing process will take six months; and an
in-principle approval to start within 18
.
months. The current CRR is 4% and SLR is
23%.
The condition of having a fourth of one's
branches in rural areas will slow down the
road to profitability; breakeven will take at
least a decade. The rural requirement is part
of the RBI's policy of pushing "financial
inclusion" by providing affordable banking to
swathes of people without bank accounts.
About 480 million of total 1.2 billion people,
mostly living in the country's 630,000
villages, currently have no banking access,
according to the RBI. Such a large number of
untapped potential customers should be a
financial boon over a medium to long term,
but analysts warn that new banks face
formidable challenges in entering the
market. Banking in rural India is challenging
due to high costs of "door stepping" or visiting
villagers door-to-door to encourage them to
use official banking services. Such customers
also generally have low incomes, makingthem a less profitable prospect for bankers. It
will take a long time, before new banks will
be able to leverage the benefits from a
banking licence.
By floating a bank, big industrial houses will
also expose themselves to RBI's scrutiny. As
a precondition to the licence, the central
bank has said it will have the right to check
the books of the industrial groups that will be
allowed to set up banks as expected many
are not comfortable with this condition.
But do you really think these are the reasons
which are holding back the applicants. A
Sachin Tendulkar and M.S. Dhoni do not have
the luxury of walking into a match hoping for
a change of rules half way through to suit
their style. But Indian businessmen mostly
walk into a venture hoping for such a change,
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and generous regulators and governments
grant them. The central bank may have
articulated its intensions that there may be no
dilution, but entrepreneurs are risk takers.
And those risk takers have been rewarded
well in Indian context. Some of the examples
of boundary changes are telecom licensing,
coal block allocation, privatisation of the New
Delhi and Mumbai Airports and many more
which later have come to haunt the
administration. It is a different matter that the
RBI has been saying that it will grant just a
few, may be 4 new banking licenses. But the
regulator will be tested again this timewhether it stands its ground on the issues
such as SLR and CRR.
The Reserve Bank of India (RBI) received
applications from different institutions, which
are in the fray to float banks. The notable
absentees in this list of applicants for new
banks are Mukesh Ambani's Reliance group;
Sunil Mittal's Bharti group; the Mahindra
group; and Sundaram Finance Ltd, a well
known non-banking financial company
(NBFC). Both Reliance and Bharti could have
explored the synergy between what they do
in the telecom space and banking to expand
banking in India's rural hinterland. RBI's
insistence on so-called financial inclusion -
the main mantra behind the issue of licences
to a new set of banks, will make life difficult
for many applicants should they get a
banking licence.
At the end of the day, RBI through its filters
and conditions managed to attract only the
serious players with an option of denying
licence to those who do not 'seem' fit to run a
bank. In doing so, it has managed to prevent
the creation of another Global Trust Bank or a
Bank of Rajasthan. The applications will now
be screened by RBI to ensure prima facie
eligibility of applicants. After screening, the
applications will be referred to a high-level
advisory panel to be set up by the RBI. The
constitution of the committee, which could
ask for more information from the applicants,is yet to be announced.
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BOOK REVIEW
Books reviewed: Brida; The devil and Miss Prym, Eleven Minutes
Author : Paulo Coelho
By Radha Deodhar
here is this thing about Paulo Coelho.
He manages to pen down everyTrandom thought going through hismind. While reading his books you would be
like, Oh yes! I have thought about this before
but never really bothered and lingered to
retrospect on it. His books would make you
think. But it's not just about writing those
magnificent thoughts, it's about penning it
down at the right time and about making a
wonderful story out of it. It's about being
brave enough to express what you are
thinking no matter how minuscule the
thought is. It's about not being ashamed of
the obviousness of the thought. That is what
makes a great thought; which comes out ofwandering free and that is what makes a
great story.
His books talk of religion, philosophy, God.
But that's not just it. He explains culture in a
very modern way. He talks about day to day
life problems faced by people and their
reluctance in executing the obvious moral
behaviour they expect out of themselves. Hisbooks do not criticise nor do they preach.
They just give an explanation about the
normal demeanour of human nature. His
every book teaches you something new. The
extra ordinary thing about Paulo is his
simplicity yet the maturity is reflected in his
writing. A Paulo book is never a long read but
enhances a long thought process and raisesquestions about the lifestyle and the decision
making of an individual. A constant
comparison of different people to show how
simple and yet how powerful humans can be.
Having talked a little about the writing style
of the author, I would not discuss just one
book. Paulo has a collection of great books
and I am glad I got the opportunity and time
to read them. Like Paulo says, it's very
important that you understand the value of
time. A book is only said to have solved your
purpose if you learn something from it, and
the learning equals the time you have put into
it. That something may be the writing style,
the language, or just a thought. It's important
that the books you read make you think. But
more than everything else they must give you
the joy of reading.
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AD-DICTION
Idea's Hello honey bunny
By Rahul Wane
dea Cellular launched its new
communication campaign in DecemberI2012, with a catchy jingle whichimmediately went viral. 'Idea Rings All India',
the new advertisement from Idea depicts the
diversity, footprint, and seamlessness of our
country, and how Idea's customers benefit
from its pan-India network.
This is the first time they have moved on from
'What an Idea, Sirji' series, which always
mirrored the society and had a social
message with actor Abhishek Bachchan,
which never went unnoticed.
The ad does not specifically target a
particular range or type of consumers (Niche
market). It is basically aimed at the entire
population i.e. kids, youth, and even elderly
people.
Talking about the core concept behind this
campaign - In new age India, people are
moving and relocating to towns and cities for
education, career and family commitments,
leading to more travel and communication
requirements. Mobile telephony has
effectively bridged distances, and Idea's
strong pan-India network offers seamless
connectivity across the length and breadth of
the country, connecting people with their
'Honey Bunny's'. Here Honey Bunny's include
not only couples but also your loved ones like
Who is the target audience for this
advertisement?
What is the message communicated ?
brothers, sisters, Mother, father, cousins etc.
How is this message communicated through
moving images and sound?
21
The ad shows (refer to the screen shots
above) Indians from around the country, with
varied cultural backgrounds, connecting as
one big happy family of over 120 billionpeople, all of whom are seen humming one
song - 'Honey Bunny' - albeit with a regional
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flavour. The jingle is the essence of this
advertisement as music is something which
is universal, something which blends with
every culture. It's a hummable, likeable song,
and that was exactly the thought behind
creating the jingle. The campaign is aimed at
highlighting the strength of Idea's pan-India
coverage which helps people of this huge
Indian family stay connected with their
Honey Bunny's wherever they go from
Kashmir to Kanyakumari, Gujarat to
Guwahati, Ladakh to Bengaluru, Rajasthan to
Orissa, or Mumbai to Bihar. The instant
popularity of the song is an indication of the
initial success of the campaign. The ad has
become a rage with its audience - with kids,
youth, and even elderly people are being seen
and heard humming the song. The beautifully
created and executed film, with a hummable
jingle shows people from various parts of the
country humming 'Honey Bunny', which was
picked by them when it was played on aphone, which belongs to a backpacker who
has travelled across the country introducing
people he has met to the ringtone thereby
popularising it. This means that the Idea's
signal is so strong that it will follow you in the
remotest of the remote place and you will
never miss a single call due to congestion or
unavailability of the network coverage.
Idea Cellular has always highlighted the role
of simple telephony answers in solving large
social problems. 'An Idea can change your life'
has been the fundamental plank on which the
brand has been built. However, in its latest
campaign, the brand addresses not so much a
societal issue but an endearingly closer to
my life story that impacts a very large part of
society. The latest campaign(Launched in
Idea's telephone exchange Ad
February 2013) is based on the insight of Ek
doosre ko samajhne ke liye telephone
exchange, what an Idea! The widely
apprec iated commerc ia l has been
conceptualised by Lowe Lintas& Partners.
(one of India's best known communication
groups)
This advertisement is clearly aimed at a
typical suburban nuclear family or
elementary family. (Refer to the screenshot
below)
Commenting on the core concept, we can say-
If we look around, we all are leading
extremely stressful lives that impact and
strain our personal and professional
relationships. It is becoming increasingly
difficult to appreciate, empathise and
respond to relationship demands that seem to
snap at the smallest provocation. In today's
context, our mobile phone is a true reflection
of us and what's going on in our life. The story
plays off the age-old pearl of wisdom, that the
best way to appreciate/understand other's
life is to live it yourself. This leads to empathy.
Empathy is always created out of the tensionbetween the sound of the voice and an
intended silence.
Who is the target audience for this
advertisement?
What is the message communicated ?
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Empathy by nature is a feeling which gets
best demonstrated/heightened in a personal
relationship.
How is this message communicated through
moving images and sound?
The story is about a husband and wife in anormal household having a heated argumentin a typical busy-morning situation, andsarcastically poking each other to putthemselves in the other person's shoes toknow how stressed their lives are. Theiryoung son who is witnessing this argumentgets an idea to exchange his parent's mobilephones, so that unknowingly his mom and
dad get to put themselves in the otherperson's shoes"
Conclusion
Couples will know
exactly how this happens and the concept is
something people can relate to. It is a bang on
commercial as it is not an artificial situation
but a real scenario of situations in every
household. Additionally, they have shown thechild caught up between the fight and used
him as an instrument when the exchange
happens, which is very interesting to watch.
The TVC has been conceptualised extremely
well and comes with a great idea which
happens in every home.
What follows next is that both the husbandand the wife receive a string of calls duringthe course of the day which were actuallymeant for the other person. Husbandreceives wife's calls and vice-versa! Be it thewife receiving the boss's call meant for herhusband to convey the news of salesdropping or the maid calling up the husbandto report that she won't be coming for the
next 2-3 days, it's all stress-filled news builtthrough the day for both of them.
By end of the day both the husband and wifeacknowledge and appreciate the fact thather husband / his wife has an equallystressful daily routine and empathise withone another.
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SPORTS TALK
Few things can be learnt only on a Sports ground!!!
By Nupoor Agarwal
ight from our childhood, we have
been told that sports help imbibe in
us values like discipline, dedication,Rsacrifice, confidence, accountability and
many more qualities. It helps us function in
competitive environment. It inculcates skills,
speed and stamina in a person. It builds our
body and gives us energy to work more.
Strengthening our resolve, it makes us
enthusiastic and helps us follow our dreams.
If you had to ask me, it is not only sports
where we get to learn many of these
qualities. In almost every profession where
team work is involved, we get to learn some
or the other aforesaid qualities.
So then what different do we learn
from sports? We can say that sports teaches
us to be a fitting team member or team player
but then that is not the only different quality
which it teaches us. There is a term called as
sportsman spirit. Sports teach us
sportsman spirit but we won't dwell much
on it. Let's focus on a different aspect.
We have till now discussed so many
things which sports teach us. But the most
important thing which sports teach us is
acceptance of failure.
No one died out there; I just lost a
tennis match, this is a famous quote by
Boris Becker after being ousted in the
second round of Wimbledon. This quote
brings out the essence of our discussion.
Not always in life things happen the way we
want but the simple joy of playing definitely
teaches us not to get disheartened and keepon pursuing our goals till the end.
Nothing else will teach us to accept
failure the way sports teach us. Accepting
failure is one of the things which one can
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learn only on a sports ground. The best part
about sports is that it helps us learn to lose
without being a loser.
Sports help us look at victories and
defeats in the following ways. You dislike
defeats but you don't hate them. You like
being victorious but you don't want to win in
any which way possible. You learn to lose
gracefully and win humbly. You learn to
respect your opponent because you know his
importance. This is the biggest power and
learning of sports.
Unlike software and hardware, in life
things cannot be segregated in the form of 0
or 1. Neither can we divide things into true or
false, yes or no. There is always a third,
fourth, fifth state. Life doesn't understand
b i n a r y n u m b e r s . T h a t ' s w h e r e
sportsmanship comes into the picture. It
teaches us to enjoy the process may what be
the end result and that's the key. You don't
stop competing or fighting fearing defeats.
You stay on the battlefield irrespective of the
consequences. Participation is more
important than the result; this is what we
learn from Sports. All this clearly shows how
important is the role of sports in building up a
person's character and attitude.
In recent times things are changing.
The terms graciousness and modesty have
become synonyms for old and out of fashion in
sports. Now, it's all about winning even if
one has to buy the other team out, step on his
teammate to climb the ladder to success or
trip him on his way to victory.
However, let's be optimistic and hope
that sports keeps on teaching us the
importance of losing. The quality which can
only be learnt on Sports ground!!!
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generated are illegal and go into funding
illegal activities. Betting is legal in most
advanced countries, and earns huge revenue
for the exchequer.
In spite of the
enormous riches that the BCCI shares with the
state associations, hardly any association
runs itself professionally. Their selection
systems are opaque at best and scandalous
oftener. Their officials make merry at the
expense of the players. Many associations
have a well-oiled system of pocketing players'
earnings. Selectors run their own academies
and charge hefty fees. State officials take up
franchisee employment.
With the introduction of the IPL started the
phase of hiring agents, even players who
could not hope to get any endorsements also
hired agents. What for, one may ask. The
reason is only too obvious. The agent has
mutated and diversified. There are always
dark suggestions about how MS Dhoni's
agent, who also manages three other players,
gets his way around the selection panels.
There is also this talk about how agents
influence selections of lesser teams like the
India 'A' and Under-19 with long term plans.
Not for nothing have RP Singh and Jalaj
Saxena's selections in the India 'A' team raisedeyebrows. FIFA registers and regulates
agents, but BCCI simply ignores the problem.
Look at the best performers of Ranji Trophy of
the current season. Almost all are warming
the dug-outs. As ESPN CRICINFO pointed out
A boy like Robin Bisht, with over 1200 runs
in first class cricket this season, is not even in
the travelling squad of his IPL team and a
standout performer like Rituraj Singh doesn't
even get selected in any IPL team. Abhinav
But the roots of recent incidents dig deep, look
at the Indian cricket system.
Mukund and Cheteshwar Pujara have hardly
been seen. However, even bit players from
certain states get into IPL teams. Who is
Rahul Shukla in Mumbai Indian and how
does he get a game ahead of Dhawal
Kulkarni? Certainly, there is something
else at work. The latest trend is that of
journalists and former cricket players
turning into agents. Imagine the scenario
when this trend turns into a flood.
The IPL selection and auction rules are
incomprehensible. Uncapped players of
other countries are in the auction but the
Indian players, who should be the ones to
benefit, are not. The whole Manish Pandey
episode happened because of this inane
provision. To cap that, there is this trading
window, which is almost completely agent
driven. With so many loop holes in the
selection procedure itself, players resort to
every means possible to make the 'most' of a
chance if granted. To sum up, match fixing oreven spot fixing is a systemic problem. This
problem needs to be addressed by reforming
the whole system of cricket functioning, and
not just IPL. Match fixing should be clearly
defined as a c r i m i n al offense and any one
engaging in it should be punishable under
law but on the other hand betting should be
legalized. This is must to firstly detach thetwo issues and also to monitor the betting
channel. Otherwise there will be no escape
from such incidents.
Therefore, it is imperative to look within
ourselves. There is no harm in our desire to
see the world of sports in a shipshape
manner.
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ALUMNI SECTIONTaming the Lion - The art of Managing Up
By Vipin Ramdas
Director, Client Services, TSYS
h e w o r d L i o n T a m i n g
immediately portrays the
picture of a man twirling aTchair and cracking a whip at growling big
cats.A lion is a wild animal with 3-inch claws
and a mouth that opens wider than your head,
enough to crush a bull's spine. Makes you
wonder why anyone would even attempt to
tame this beast. It's because it gives a feeling
of pride, a sense of achievement, a
satisfaction of being in control of a 400 pound
beast. In his book Lion Taming, Steven Katz
makes an interesting analogy between Lions
and Bosses and how important it is to
understand the people who have the power
and authority to control your career and
determine your success.
It's often said that people don't quit
companies, they quit bosses. While the
managers have a role in ensuring that their
subordinates feel engaged and enjoy their
work, you too can work on building this all
important relationship. Unfortunately,
managing up is an art which is not taught in
many business schools. In my upcoming
book My Work My Way,7 Steps to thriving in
the Early Steps of Your Career, I share my
learning's from managing 7 bosses over 13
years. Here is a glimpse from the book on my
top 5 tips on managing your boss.
Every boss has their unique leadership style
and management mantras. Make an effort tounderstand his communication style, is he
direct aggressive or submissive? Is he a
helicopter manager or someone who
believes in empowerment, what's his
de c i s i o n -m a ki n g s ty le (d i r e c t i v e ,
participative, consultative, etc.)? The key
here is to adapt to his style of management.
Talk to him about what is important to him,
what his priorities are, what are his goals
and how you can support him. Let me tell you
a secret. Communication is the key here. All
bosses fear failure and that they have
someone to work with in achieving their
goals helps build the trust and gain
confidence, which will go a long way inshaping your career. Do this and your boss
will become your brand ambassador.
1.Understand his style of management:
2. Help him succeed:
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3.Manage expectations:
4.Keep him informed. Bosses don't like
surprises:
Work continuously on managing his
expectations. Establish the What, When, and
the How. Clearly define how he perceives the
end result, how will he determine if you've met
his expectations, push back and set realistic
deadlines, ask for more time, don't be afraid of
a sk i n g fo r he lp . W hi le m a n a g i n g
expectations, always remember to under
commit and over deliver. This improves your
credibility and establishes you as someone he
can depend on. Most people struggle to say
No to their bosses. The way to do this is to
discuss the priorities with your boss and get
him to set them for you. This way you are not
seen as being inflexible or non-committal.
Most people get on with their task in hand and
get too far away only to realize that it's not
what your boss was expecting or he haschanged his mind. Let him know about the
issues, challenges and concerns you have but
more importantly tell him how you are
dealing with them. By providing regular
updates you make sure that your boss does
not get any surprises and he can steer and
guide you before it's too late. This is
especially true if you have a boss who is a
micro manager.
My boss is a jerk. This is probably what most
p e o p l e t h i n k o f t h e i r m a n a g e r s .
Acknowledge that your boss is in the
position because of things which he knows
and does which you don't. When
communicating, be to the point, present the
facts clearly, give him information which aids
decision-making.
From my 13 years of experience, if there is
one thing I would urge you to learn, that
would be to learn the art of managing your
boss. Happy taming.
5.Respect him and his time.
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DISCUSSION FORUM
PUMBA SPEAKS
TOPIC:"Politics of Coalition and the increased importance of regional parties
have IMPACTED our FOREIGN POLICY in a negative way"
EXPERT OPINION
Mr. Anil Agashe
(Visiting Faculty PUMBA)
egional Parties that we have in India,
always look at foreign policy in a very
Rnarrow view. They are only interested
in protecting someone who belongs to their
own state. We can clearly deduce this from the
stand of various Dravidian parties with respect
to LTTE and with Sri Lanka in general. If it were
to DMK & AIADMK, they would hold the whole
country to ransom.
Similarly Mamata Banerjee's stand on Bangla
dispute settlement also is extremely narrow.
Shiv Sena's stand on Pakistan is the same.
Regional parties are parochial by their
constitution and their aims. They have ripped
apart co-coalitions in the past to secure their
narrow interests. Foreign policy at the best of
times is complicated. I know no leader of such
outfits who can lead this agenda, may be with
the exception of Sharad Pawar who will be able
to articulate his views on these matters, the
other who may be able to do this to my mind is
Omar Abdullah.
I distrust regional parties on national stage
completely. They want power to onlybargain.
Unfortunately their track record with NDA and
UPA both is uninspiring.
Most regional parties are driven by one
individual and I believe, they lack basic Pan
India vision, forget international!
STUDENTS VOICEOUT
Mayur Jagtap
t's true!! Politics of coalition is a big
hurdle in running any country'sIadministration smoothly. There areseveral times when the parties in coalition
had objected the government in takingdecisions.
Parties form
coalition because their agendas are same
somewhat. So, in a way they should support
the policies formed and decisions taken by
the government. But it doesn't happen
always. Let's take a brief view from 1990's:
1) One of the reasons, India was in crisis
during 1990-1991 is due to the political
instability which was prevailing during that
period.
2) Left parties threatened UPA Government
on the issue of Nuclear Deal with USA. The
talk between George Bush and Dr.
Manmohan Singh initiated in 2006, but it took
almost 3 years to sign the agreement by both
the countries. During these 3 years Left
Parties continuously threatened UPA
Government and also they withdrew their
support to the Government. Though Dr.
Manmohan Singh remained firm on his
decision and the Nuke-deal did take place but
this could have been signed much earlier ifLeft parties wouldn't have opposed it.
Coalition governments and
regional parties have had adverse effect on
International relations of India.
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3) Teesta water treaty is not yet signed even
after the show of interest by Governments of
both the countries (India and Bangladesh).
This is due to objection raised by Trinamool
Congress leader Mamata Banerjee. Our PM
Dr. Manmohan Singh and Bangladesh PM
Sheikh Hasina are very optimistic on this
treaty but it hasn't yet been signed.
4) Regional parties like DMK, NCP, Left or even
TMC have exploited their power in Centre and
in state as well.
Hence it is very necessary for any party to
form a government with its own majority. For a
country of demographic diversities like India
it is very difficult to run a government with
coalition. Parties in the coalition government
try to obstruct government decisions for their
personal motive as and when they want.
Neha Bhide
n India, the major roadblock to national
development is POLITICS which has
Ispread like an incurable disease. India ismoving away from the definition of a nation toa land of disintegrated states. Self-interestovershadows national interest and the
COUNTRY SUFFERS!! Regional parties are
solely interested in developing their
respective states without paying any heed to
the country's deplorable plight. After allwinning elections and gaining power is of
paramount importance. And for that to
happen the concerned communities have to
be taken care of and catered to. Also when it
comes to our foreign policy, the situation is no
different. Take the example of China.
Communist parties always support China
even if the policies or decisions etc. are not in
favour of India. Contradictorily, they would
not support USA in its deliberations with
India. It's so conspicuous from the above that
our leaders have pledged to work in their own
interest without worrying about the
ramifications it might have. India is in dire
need to enhance its international trade in
order to face the many hurdles that the
economy is facing. We wish our leaders had
more foresight. With this attitude,
PROGRESS, DEVELOPMENT, GROWTH
seems to be a distant dream. The bottom line
remains:
Ashish Mishra
ndia is an extremely diverse and
multicultural nation, and for all itsIsections to have a political mouthpiece,we need to embrace coalition politics.
Indeed, a democracy with a multitude of
choices as opposed to an either/or choice
between two large parties is more viable,
especial ly in India . Whi le mature
democracies in the West, such as the US and
UK have two main parties, with some fringe
groups, their citizenry is far more
homogeneous than India's. Ironically, if our
two la rge pa r t i e s we re abso lu t e
representative of the majority of the people,
there would be no need for coalitions;
coalition governments have to be formed
precisely because one or the other party
cannot satisfactorily represent all people.
Coming to the Foreign Policy part of it,
After all, the two are not exclusive of
each other. As far as the policy paralysis is
concerned, if the head of the cabinet (i.e.
Self-interest prevails over national
interest!! .Thus, thinking collectively,
selflessly and solely for INDIA is the need of
the hour!
I think
the regional parties many a timesprovide a
new perspective to the entire approach as
they link the foreign policies to the domestic
issues.
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MY OPINIONNaMo, a critical analysis
Tomorrow is a long time in politics, next week is far away
By Mayur Jagtap
n India, when the discussion is
a b o u t d e v e l o p m e n t , o n e
inevitably finds it turning towardsIGujarat. If we are not talking about growth
numbers, then it has to be about the way
Gujarat has slowly pinched its way to being
one of the top all possible because of one
man: Narendra Modi. This man has done an
exceptional job. Although Keshubhai Patel
also holds the credit of development of
Gujarat but NaMo has shown consistency in
his dedication.
In 2002, after Godhra massacre, during
Gujarat violence Modi could have easily
controlled the situation peacefully but the
absence of action from his govt. resulted in
the death of 790 Muslims and 254 Hindus. In a
way as the CM he is responsible for not
handling the state of affairs according to the
need of the hour. Modi fought 2002 elections
in Gujarat with 'Hindutva' as the agenda.
Waves were travelling in favour of Modi
because he had succeeded to catch hold of
sentiments of 'Hindus' from Gujarat and came
into power with 127 seats in the 182 member
assembly.
Public sentiments being hurt in 2002,
he shifted their attention to development.
Between 2002 to 2007, Gujarat emerged as an
attractive investment destination. In 2007
Modi changed his agenda to development.
He urged people that Gujarat is in need of
development and told them he intends to do
exactly that. People responded positively and
Modi won the elections. He kept his promise
and worked on the growth of the Gujarat.
When the whole world and Indian economy
were suffering Gujarat was marked a
double digit growth. For the decade
20012010, Gujarat recorded a compound
annual growth rate of 10.97%, the highest
among all Indian states. The reason behind
this is that he has been successful in
attracting investments and industries in
Gujarat. NaMo has softened policies for the
setting up of new industries in Gujarat and
has given ample support to the existing ones
as well. To quote an example, when there
was a fierce opposition to Tata Nano's SingurProject in West Bengal, NaMo welcomed
Ratan Tata with open arms to set up a plant
near Ahmedabad. He has been praised for
the infrastructural development he has done
in the last few years. It is evident from the fact
that one cannot identify Ahmedabad as the
same city it was 10 years ago. The same story
is applicable to the whole state.
In 2012, he pegged his campaign on
the basis of the development he had done
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for the state. People put their faith on him
again and handed over the charge of state to
him. He came into power with 117 seats
Speculations are rife that he is the
next strong Prime Ministerial candidate from
BJP in 2014 Lok Sabha elections. Although
he never expresses his will to be the Prime
Minister in public or media but he does wish
for the same. If one takes a deeper dig into
the current happenings in BJP and Narendra
Modi's induction in BJP Parliamentary
Board, there is no doubt that BJP will
officially declare NaMo as their Prime
Ministerial Candidate.
But the main questions are
Will NaMo factor work for BJP?
Can BJP come into power in 2014 using
NaMo?
If someone asks me these 2 questions, I
would simply answer No. In spite of Modi's
achievements in good governance,
development etc. in Gujarat, BJP is destined
to lose LokSabha elections in 2014.
The reasons are very simple:
1. It seems that he will have to suffer for his
deeds during the Godhra massacre of 2002 for
lifetime as people are not willing to overlook it
for all the good that he has done. During late2011 and early 2012, Narendra Modi
undertook a series of fasts as part of the
'Sadbhavna Mission', to reach out to the
Muslim community in Gujarat but all his
attempts to create good relations with
Muslims have failed. He could not gain
sympathy of Muslims of neither of Gujarat nor
of India. To prevent Modi from becoming the
next PM, minorities will vote against him and
one can see around 90-100% voting from
minorities.
2. Modi has become a youth icon in a very
short duration and has been able to attract
youth's attention. Majority of the people who
don't go for voting is youth, hence targeting
only youth is insufficient for Modi to become
PM.
3. Modi hasn't yet reached to the ground
level. He has concentrated himself to cities
only. Rural India is completely unaware
about Modi's work. Hence these people will
not vote for Modi.
4. Internal conflicts in BJP are also a hurdle
for Modi to become PM. Many national
leaders do not want Modi to be the prime
ministerial candidate from BJP. Continual
threats from state BJP leaders like
Yeddyurappa and Vasundhara Raje act as amajor hinderance for the same.
5. Coalition parties like JDU won't support
BJP if Modi is promoted.
6. While Modi is showing India the growth
and development of Gujarat, still many BJP
leaders are busy talking only about
'Hindutva'.
7. Due to recent defeat in Karnataka state
elections BJP's moral has gone down.
8. Biggest of all the Authoritarian leadership
style of Narendra Modi is disliked by many of
the members of BJP and leaders ofNDA allies
as well.
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OKONOMIE
We cannot live in a bubble forever
By Rashi Kaushik
t would be nice if we could predict
bubbles; even nicer if we could
prevent them. This article is anIattempt to ease the hype about asset bubbles
which have become a major catastrophe in
today's world. On occasion, the enthusiasm
for some growth opportunity or new
technology attracts interest from people inthe capital markets. In the case of the US
housing market, prices began to accelerate
beyond their sustainable path sometime
around, say, 2003 thanks to global capital
flows from savings-rich economies, advances
in securitization technology, and an
insatiable appetite for housing on the part of
American consumers and investors. It tookthe broader equity markets another year to
understand the severity of the housing crash
and the resulting damage to the banking
system. Mainly because consumers,
mortgage brokers, lenders, investment
bankers, regulators, rating agencies, and
investors in distant countries didn't
understand individually what the totality of
their actions would mean for US home prices,
the financial system, or the global economy.
No system can be perfectly self-conscious.
The kind of immediate social awareness that
would prevent bubbles from forming or
bursting is a physical and mathematical
impossibility. Asset price bubbles are
obvious in hindsight. US housing prices in
2006 were 50% above their long-term historic
trend. For every asset bubble that burst,
there are several alleged asset bubbles that
never blew up. For instance, is China now in
a housing bubble that will explode, or just in
a high-riding trend that will wind down? It is
difficult to predict asset bubbles for several
reasons.
Contrary to the normal laws of supply and
demand, investors often want to buy more
shares of a company after they have zoomed
up in price. Following the herd can be an
effective investment strategy until, of
course, the herd runs off the cliff.
Finally, even if you accurately diagnose the
situation as an asset-price bubble, you
cannot know exactly when it will burst. In
2003, Yale Professor Robert Shiller
persuasively showed that the US was in the
midst of a housing bubble. When a bubble
bursts, institutions with high leverage all
race to the exit at the same time. Even a
small loss at an institution with a 30 to 1
leverage ratio will force it to sell assets equal
to 30 times the loss in order to maintain this
leverage ratio. This means fire sales at badprices for this institution and downward
price pressures on all asset sales at this time.
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There is always a heated debate about
whether policymakers should try to deflate
asset bubbles before they become too large.
Many economists argue that it is not possible
to identify a bubble before it collapses. Other
economists claim that bubbles are
identifiable. The first group is generally
associated with the view that financial
markets are efficient and that bubbles
cannot, therefore, be more than temporary
and fleeting. The second group tends to
believe that there are limits to investors'
ability to take advantage of mispricing in
financial markets.
Instead of focusing on the question of
whether we can or cannot determine whether
elevated asset prices correspond to a bubble,
we should adopt the mindset of risk
managers and focus on the tradeoff between
the costs of allowing elevated asset prices to
increase further and the costs of intervening
to dampen further increases.
Nobody has a perfect model of the economy;
every model has flaws. The same principle
should apply to those who have high
confidence in their ability to identify bubbles;
if they are wrong and identify elevated asset
prices as a bubble when it is not, they have to
worry about the distortions in the pricing of
assets which actions against these elevated
asset prices would create.
The cumulative costs of resolving the current
credit crisis will be enormous for the public
sector. In simple words, if prices become
unusually elevated in an important sector of
the economy and their collapse would be
costly to the economy as a whole, it's safer to
proceed as if there is a bubble.
For insight into whether future bubbles can
be avoided, it is worthwhile to consider the
various economic theories about the subject.
One theory holds that there is no such thing
as a bubble. This is not as implausible as it
may sound to some readers. The definition of
a bubble involves prices that exceed intrinsic
value, which is hardly easy to determine.
Everyone can agree, however, that markets
periodically undergo extraordinary price
surges followed by exceptionally sharp
declines, all accompanied by massive
emotional turmoil. Some theorists explain
these incidents on the basis of psychological
aberrations. Facts show the emergence of
the bubble as a result of excessive monetary
expansion. Either way, there is no likelihood
that bubbles will vanish from the financial
landscape.
Let's suppose bubbles arise because
investors unwisely extrapolate from recent,
past experience or turn into a herd when the
market runs. Psychology may describe how
investors react once prices move, but it does
not explain why the bubble starts.
Historical analysis has led to conclude
further that the true indicator of bubbles is
overexpansion of credit. If there is too much
money sloshing around in the system, either
prices of goods and service will raise
(inflation) or some asset class will appreciate
at a rate far above trend line. The monetary
thesis' implications for avoiding bubble are
the same as for the psychological
explanations. Theories are many but only
time can test the validity of each.
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MANAGEMENT EXAMPLE
By Rohit Raina
dolf Hitler: the name itself
brings out strong emotions-Ahatred, disgust, revulsionand the memories of the barbaric acts that he
committed. Still amidst all the fuss about the
evilness of this man I am writing this article
to tell the readers about a man's managerial
qualities which were overshadowed by his
cruelty and his actions which led to a world
war. Let us look at him in a new light, as the
man who started from nothing and became
the leader of a country which was then one of
the most developed nations in the world-
GERMANY. His managerial qualities were
very promising and all of us should learn a
few things from him.
We are talking about the time when
Germany was devastated by the World War I
and the two treaties. The economic scenario
was bad, the 1929 Wall Street crash shook
Germany very badly, hunger prevailed, and
unemployment was at its peak. Then came
this man who got the people out of their
misery. He assured them of employment
making him look like the Wizard of Oz for the
people of Germany at a time where nothing
seemed to work out for them. Hitler was
motivated, oh yes; he had vision, a goal to
take his country out of economic depression
and to take it to the top.
Let us see a few managerial lessons to
be learnt from the greatest tyrant of the
world. Adolf Hitler may look like an evil and
terrifying man, but he was a man with a
miss ion and v is ion . His pass ion ,
dependability, and confidence made
Germany a powerful nation. One of Hitler's
qualities that made him a well-known leader
is his dependability. Having someone
depend upon you makes you feel powerful or
even generous. Confidence is one of the
qualities that led him to power and
popularity. Hitler was a captivating public
speaker. He would enrapture crowds with
ADOLF HITLER
Unraveling the Manager
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his vision and sense of purpose for the nation.
Adolf Hitler successfully used propaganda to
bring the whole nation under his will. People
Management was one of his greatest
qualities; he used to be 'one of them' and
treated them as a family. He played with their
children and enjoyed with them. He was a
good Problem Solver; he had an amazing
concentration power. His judgments were
quick and decisive. His acts were more like a
big brother to his staff than as a Fuehrer and
which endeared him to them. Hitler was able
to penetrate complex problems and reduce
them to a few simple, fundamental factors.Hitler was excellent with strategies and
planning. He followed through with his plan
and repudiated the Treaty of Versailles. At
first he tried to keep Germany's rearmament
a secret but by 1935 he proudly displayed
Germany's new army, navy and air force.
European nations did nothing to enforce the
treaty, leading Hitler to conclude that hecould begin to create his vision of a new
powerful and strong German nation.
In the end, I would say Adolf Hitler
may seem like the devil to many but a man
that well-known wouldn't be in history
without his passion, dependability, and
confidence to make Germany a powerful
nation. To get Germany to become a powerful
nation, he let both negative and positive
thoughts influence his actions. In my opinion,
Hitler fought till the last man with the help of
his military, economy and nothing other than
his qualities; a great example of optimum use
of resources. Being a man with qualities like
reliability, passion and confidence Hitler led
himself to popularity, success and power. Iwould like to end this article with his quote
which in itself is a perfect example of
motivation, courage, right attitude and
leadership, all of which are essential to be a
good manager.
If you win you need not have to explain but if
you lose you should not be there to explain
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CREAT VI E SIDE
A poem on B-Plan Presentation
By Atul Gupta
The first day Sir told us to give the presentation,
There was a chill in our veins, numbed were the sensations.
Everybody made groups, and started preparing,
A few laid back, as they had the daring.
There were ideas, some were original, some copy paste,
Some made with due care, some with haste.
Some did survey while some faked it out,
Ready to tackle it in the final bout.
Finance was the biggest problem,
As it was the biggest threat,
Even finance guys dreaded it,
Though it will be their daily bread.
As the date of presentation grew closer
Guys started working in dual pace,
PUMBA looked like a different world, a different place.
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On the first day of presentation
The whole class converged,
It was the day of commemoration
An occasion which was never heard.
At the start of the class, everybody had their heart pounding,
Whose name will be called, and have a grilling in a heavy gathering.
The presentations took off, completed was the first day,
The group which presented breathed a sigh of relief
Now it's their turn to sit back and enjoy the play.
Our class was surrounded by people from other classes
What did he ask, what did he say, were the queries of the masses.
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PUMBA MIRROR
Winners
ICICI
Stock Mind: Winner
Kishan Bhattad
NL Dalmia
Maadhyam 2013, National Level PaperPresentation: Finalist
Aditya Amist
Atul Gupta
Tushar Malhotra
BITS Pilani
Interface 2013, Budget Moghul: Finalist
Kishan Bhattad
AMITY
Case Study Competition: Winner
Anurag Tammadwar
Megha Gilda
Radio Mirchi
Campus Buddies: Winners
Anuj Nagpal
Tushar Malhotra,
DY Patil
Case Study Competition: Winner
Anand Maniyar
Neha Bhide
Nupoor Agarwal
Rashi Kaushik
SICSR
Business Fair: Winner
IISC Bangalore
Simulation Business Game: Winner
Clement Raj
MITSOM
Snaphunt: Winners
Tejal Phatak
Tushar Malhotra
Esha Chandak
Neha Madhekar
Shrikant Bhusare
Shubham Agrawal
Sneha Tirpude
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