Exception rather than the Rule !

We beat the drums of our world class IIMs and IITs so are we proud of our wealthy Indians like Ambani and Mittals who are more exceptions rather than the rule.For one billion Indian people there is no Indian University available which ranks among top 200s of the world while other Asian countries like Japan has 11 china 6 and Hong kong which has less than half of the population of Mumbai has 4 Universities in top 200 list.

India’s technical Institutions are now called as factories of mass production of Engineering and MBA graduates who lack practical understanding of what is learnt. Mushrooming technical and professional Institutions are busy in producing worthless quantity without paying any heed to quality of teaching and infrastructure to support meaningful education. Our watchdogs who neither bark nor bite have become pet dogs of dons of Education Industry. Rising Indiscipline and loss of moral values ,growing violence, high divorce rates, apathy towards social concerns, use of drugs demonstrate miserable downfall in our education system. Political interference in colleges and University exacerbate the problems.
State of primary and secondary education is not very cozy where students are taught to cram everything like Parrot. Chapters of history are tampered to fulfill political agenda and politicians engage in mudslinging each other. Almost entire education system of teaching and learning is moving to gloomy future.
Corporate coaching classes are luring rich and middle class babalogs ( children of rich parents) offering all formula and shortcuts to success in competitive exams. There is no objective basis to judge meritocracy in India as there is a wide gap between haves and haves not. Those who have even no access to clean drinking water (our human right) in many villages , towns , cannot be expected to score high in 2 hrs competitive exams . Merit itself is an specious term in our society.

Teaching Profession is viewed as time gap arrangement except by afew who dream of shaping India's future. It is also nowadays seen as profession of losers who compromise to work at throw away peanuts.

Knowledge is power . No, its not. It is what you do with knowledge is power. Its high time we wake up and stop crowing with a few success stories which are more exception rather than the rule.

The High Cost of Low Prices !

Banana at throw away price at Reliance, oh sorry its Reliance Retail Price popularly called as R.R.P not M.R.P, Big Baazar,Pantaloon,Vishal Mega Mart selling household wares at its own mega-marts, the global giant Wal-Mart making an entry into the Indian retail market promising to sell kirana and clothes and every thing at low prices always-it seems like paradise is moving around Indian consumers . But how long will paradise continue?, or will a few months of ‘happy-deals’ lead to a lifetime of monopolistic markets and manipulations by corporate giants .

It is estimated that for every 1,000 employment opportunities generated for urban graduates as Wal-Mart salespersons, 15,000 poor people will go out of job as Indian cities will have no need of pheriwallas, subziwallahs, fruit-sellers, and local kirana shops.

Retail trade contributes around 10-11 per cent of India’s GDP and currently employs over 4 crore people. Within this, unorganised retailing accounts for 96 per cent of the total retail trade. Traditional forms of low-cost retail trade, from the sole trading shops and kirana stores to the handcart and thelawalas, together form the major pie of this sector. Since the organised sector is less than 8 per cent of the total workforce in India and millions are forced to seek their livelihood in the unorganised sector, retail trade being an easy venture to enter with minimum capital and infrastructure needs, acts as a kind of social security net for the unemployed. Organised retail sector has witnessed tremendous growth in India in the last 10-12 years and is growing at a much faster rate than the overall retail sector. This trend of growing share of organized retail trade inevitably causes harm to small retailers and badly affects their livelihood.
Cost efficiency or Squeezing Producers . Those who beat the drums of FDI and create hoopla and hype often says the Indian consumers would benefit from the low prices offered by the behemoth corporate retailers. It is also argued they would develop an “efficient” supply chain, not only to cater to the Indian consumers but also the international market and therefore our manufacturing and agriculture sector would benefit from them. The ability of the global retail chains to sell at low prices is often attributed to their “efficiency” in sourcing goods from their lowest cost producers around the world. What underlies this so-called “efficiency” or “cost reduction through better inventory and cost management” is the ability of these retail chains to squeeze and blackmail producers across the globe using their monopsony power. The sheer size of a giant retail chain like Wal-Mart enables it to exercise buyer power over the producers of all kinds of prducts, from agro products to FMCGs, across the globe. If these retailers are to sell goods to Indian consumers at prices, which are cheaper than what prevails today while sourcing their goods from Indian producers, the latter are definitely going to be at the receiving end in terms of declining incomes. It is important to undertand here that European and American farmers enjoy heavy farm subsidy and prices of their agriculture produce is far lower than Indian counterparts. In case these Corporate retailers import the cheaper goods from abroad and they definetly will as their success pivots anround low prices, domestic producers and farmers would be displaced anyway. Problem further aggravates as cheap "made in china bug" will bite Indian manufacturing Industry too.It is difficult to understand therefore how the domestic producers would benefit from these giants.
No benefit to local Farmers-Instead of local seasonal produce from nearby villages finding their place in our kitchens and on our dining tables, we will have vegetables and foods that are mass-produced and mass-packaged, procured from captive farming where face-less multi-billion corporations will call the shots. To cap it all it will kill all indigenous produce and replace it with genetically modified crops.

The Behemoth Bentonville villian and an Economic Disease,called Walmart-Now,the big trouble is all set to enter Indian Market with its joint venture partner Bharti Enterprizes . Changed face and changed Golmaal and deceptive Tagline “Low Prices Always”to “Save Money,Live Better”. A Substantial Number of Wal-Mart Employees earn far below the poverty line -Wal-Mart employees don’t earn enough to support a family.Lower wages means low disposable income for community.When an employer pays low wages to its employees, the employees have less money to spend on goods and services in the community, which in turn reduces the income and spending of others in the community. In other words a reduction in wages has a multiplier impact in the surrounding area.

Bentonville giant destroys Environment -Between 2003 and 2005, state and federal environmental agencies fined Wal-Mart $5 million.

Wal-Mart violates Child Labor Laws.-An internal Wal-Mart audit found “extensive violations of child-labor laws and state regulations requiring time for breaks and meals.” [New York Times, 1/13/04]
Made in China Imports -70% of the commodities sold in Wal-Mart are made in China.

Wal-Mart’s factory workers are treated poorly.

Wal-Mart cares little for the safety of its workers

Wal-Mart closes down stores and departments that unionize.

Wal-Mart discriminates against women.

WAL-MART USES MONEY AND INFLUENCE TO PRESSURE POLITICIANS. -Jan gan gan man Adhjnayak.

Punchlines may change but philosophy and Values ?????

Who will save money and live better in country like India, where 300 million people are living below povery line and handful of multi billionares flying in personal luxury jets . We should remember that those who donot learn the lessons from the history are condemed to repeat them. NDA Govt's hallucination of India shining is the lesson. Manmohanji ,donot repeat it. Low Prices is nothing but an eyewash and benefits only afew middle class consumers at the of cost unemloyment and damage to Indian society.

MANAGEMENT WISDOM

Management Wisdom 01
"Commit to your Business". SAM

Be Passionate
Believe in it more than anybody else. Everyone can overcome every single personal shortcomings by the sheer passion brought to work. We don’t know if every body is born with this kind of passion, or if somebody can learn it. But people need it. If you love your work, you’ll be out there every day trying to do it the best you possibly can, and pretty soon everybody around you will catch the passion from you — like a fever.

Whose,Who of Passion .

Post a Comment On: MY VOICE"Dollars Ripples pushing India’s Competitiveness to Uncomfortable Zone."

Post a Comment On: MY VOICE"Dollars Ripples pushing India’s Competitiveness to Uncomfortable Zone."
2 Comments - Show Original Post
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Satish said...
Rightly said! It has hurt a lot.

November 6, 2007 5:28 PM


Amit Prakash said...
Yes you are correct, but if $ do not go down further from 39.00 than it is not a big problem as govt. now has increased Drawback rate and now planiing to reduce income tax rates to give exportes some space to play with comptition. But in future US$ may go down to 36.5-37 nad that point is a big-big problem.
I think atleast textile exporters should now look towards domestic market as the big retail chains are knocking the door of India and they all need merchandise to sell.

Comments on Management Ke Funde

Management Ke Funde!

Wednesday, October 31, 2007

“Not all correct decisions are popular, not all popular decisions are correct. A Manager sacrifices popularity for taking correct decisions.”

“To succeed in life in today’s world, you must have the will and tenacity to finish the job.”

rudreshpandey said...
These are the golden expressions for a manager. I sense not only a manger but we all in our existence go through various tribulations where these fundas can be used. I want to add on the second and the third funda.The former is on decision making. I believe decision making is not effortless but a painful process and a prime job of a manager; in fact it is the only job of a manager. People who can take decision are superior managers it dose not matter whether they are correct or not, I feel no decision can be correct or not correct, it is only the consequence of that decision that is correct or not correct. At this point your tenacity and will comes in. If you have taken a decision you should have the will and tenacity to finish the job and make your decision correct.
November 1, 2007 11:33 PM

Santosh.K .Mishra said...
Noble prize to great belief!In this uncertain and unpredictable world, consequences of decisions may be favorable or unfavorable.(It should not be termed as correct or incorrect).After proper diagnosis and investigation, a good doctor takes the decision of operating the patient taking all clinical history and all alternatives into the account. Now consequences may be favorable or unfavorable (not right or wrong) but decision may be right. The issue in blog was popularity show by Managers managing corporate organizations. Virtually we take decisions based on information we receive. Wrong information leads to wrong decision and unfavorable consequences. So It is that chain which is more crucial here. Decision of placing wrong people at crucial position on the basis of wrong appraisal or any other reasons, will lead to unfavorable consequences.Job of judge is to take right decision or give right judgement taking all evidence, information and circumstances in mind. His decision may not be palatable, even to majority of people. But right decision matters here.Now coming to business organizations, a good Manager may turndown demands of their employees for pay hike which may not be liked by the them leading to his unpopularity but decision may be right keeping the financial situation and liquidity position in mind. Consequences depends on how smartly he handles the situation. Job of manager is to take right decisions and ensure implementation too, (we often forget) keeping all circumstances and possible outcomes in mind to achieve organizational objectives. A few people consider their belief as reality and for others reality is their belief. I would like to join latter’s club.
November 3, 2007 10:50 PM

Humbug of Pakistani Tyrants !

Mia Musharraf has finally done what was expected out of him. He has imposed emergency rule in Pakistan. It unfortunate that innocent Pakistani people could never taste the flavor of democracy in last 60 years of Independence.
Pakistan was created on pillars of communal hatred, bitterness and malicious agenda against India. Rulers in Pakistan frightened their people against India, provoked hatred and belched antipathy in order to hold political Power and Chair . Even Nawaz and Benzir were not far behind. They all forgot progress and welfare of Pakistanis, just to fulfill their own selfish political ambitions and personal agenda of self aggrandization and clutching the power somehow. Story of 1947,1965,1971, Kargil, raaga of Kashmir, promoting terrorism, amassing nuclear weapons, domestic turbulence, political turmoil and chaos have labeled Pakistan as rogue state. The Newyork times quoted Pakiskan as” The most dangerous place in the world” It is just the result of egocentricity of power hungry rulers of Pakistan.
Today when entire world is moving rapidly towards economic integration and engaging in dialogue for economic progress, technological advancement, multilateral trade and global investments, India is also busy in managing capital flows, stock markets, trade, energy crisis, environment issues, and empowerment of women. But Musharraf sahab has engrossed himself in defending his Satta and dictatorship. He has crumbled the judiciary by dismissing judges, crippled the media and crushed the democratic rights of the people.Mia Musharraf is not alone, Pakistan has the history of such rulers like Ayub Khan, General Yahiya Khan, General Zia-ul-Haque. Musharraf is one step ahead of them. He has repeated the story for second time in last eight years.
No good neighbor would be happy to see this pathetic condition of innocent Pakistani people. Indians are also equally concerned and pray for their well being.
People of Pakistan need to perform jihad against such Tyrants to improve their own condition and for the betterment of Pakistani Society.

Management Ke Funde!

“An overburdened, overstretched executive is the best executive, because he or she does not have the time to meddle, to deal in trivia, to bother people.”
Jack Welch
Ex CEO General Electric

“Not all correct decisions are popular, not all popular decisions are correct. A Manager sacrifices popularity for taking correct decisions.”

“To succeed in life in today’s world, you must have the will and tenacity to finish the job.”

Ferocious Capitalism

Indian retail market is $350billion today.Consumers are getting facinated by the mega mall aculturation of westernized world. These are the reasons why Indian Corporates and MNCs are eyeing this coveted market where small retailers, shopkeepers and intermediaries have traditionally been dependent.Walmart effect will affect all those millions of small retailers badly whose family survives on this business. Public opinion is truly against these Walmarts ,Tescos, Big baazars and Reliance fresh whose big bang approach may ruin and spoil the livelihood of poors. But who cares about the public opinion. In India expression of public opinion is no proof of existence of pubic opinion. Can we really claim to have fulfilled Mahatma Gandhi’s prayer to wipe the last tear from the poorest of the poor. I surely believe, we can’t. Ambani sahab are you listening?

Jan gan man Adhinayak jai hai. Are we going to welcome Ahdhinayaks of unbridled capitalism of the world to enslave us once again???

Dollars Ripples pushing India’s Competitiveness to Uncomfortable Zone.

Indian stock Markets are shooting the stars as the dollar ripples are moving accross the security exchanges regardless of future aftereffects. World’s economic growth is slowing down.Measured in PPP terms world growth was 5.4% in 2006,will diminish to 5.2% and will fall further to 4.8% in 2008. Conditions are weak in rich countries owing to financial turbulence ,rising oil prices and collapsing housing markets . Many financial experts foresee recession in U.S. But the stock markets are behaving like skyrockets .Shanghai index has grown 200% since its inception .The Bombay sensex is 40% up since last year. The Bombay Stock Exchange’s benchmark 30 shares Sensex crossed the 20000-point mark in october.In 2007 so far ,FII fund flow in stock market is $18.80 billion. Another reason for soaring rupee is remittances by NRIs and software exports. All above factors are fueling the rupee surge. When RBI buys dollars, rupee supply goes up in the economy leading to inflationary pressure. With inflation near 6.5 % in March 2007,the central bank decided not to buy dollars. Now only those who need to import buy dollars and RBI intervention is selective. So demand for dollars has dipped while supply has increased. Result :The dollar is cheaper .
Nightmare for Exporters –Exporters are facing the trouble. When the exchange rate was Rs 44 per dollar,they used to sell Rs 440 item for $10 in International Market. Now they have to sell same item for $11.155 (1$= Rs 39.442) to keep profit margin unharmed.As a result,India is losing its competitive edge in Global Market. Global Market is highly competitive, leaving exporters for two choices either reduce the price or loose the export orders .Sectors like Garments and leathers where margins are low are loosing the market share as they cannot afford the price cut. Software sector cut prices to stay in the market and that is why their profitably is eroding. Infosys and Wipro are the examples.
Made in china brand is bulldozing some Indian sectors .Imported Chinese goods like toys, holi pichkaris ,Chinese made Laxmiji and Ganeshji have flooded the Indian Market resulting loss of livelihood of thousands of peasants.
Indian government must intervene

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