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Lessons from the past

If we look at history hard enough, we would find that bankers don’t conform to economic crisis.

History, more often than not, repeats itself – although in a manner so disguised that enough people ignore the warning signs. The ongoing Eurozone crisis is a case in point. The European nations are in the region’s biggest crisis since World War II, and it is spectacularly similar to the slump that shook the continent in the seventeenth century. The causes were similar to the fall of the mighty Spanish Conquistadors in that period, and the near-collapse of world economy in 2008 and 2011. Yet there are obvious differences. There is no World War III yet to keep up with the tradition of economic crises followed by wars. Then, we are conveniently ignoring the Iraq and Afghanistan wars, and the ongoing unrest in the Middle East. And if we look at history hard enough, we would find that bankers (now also an investment banker) don’t conform to crisis. They flourish. The bigger the crisis, the greater is the world’s dependence on ‘Shylocks’ to bail them out. In our Cover Story, we will take a look at some of the best paying jobs for an MBA graduate. And finance, for credible reasons, tops that list. Then Prof Amit Parakh, a senior financial expert and core faculty in finance at Praxis Business School, updates us on the various career opportunities for an MBA in finance. Another lesson that the history teaches us is that the world loves the underdog -- the Davids who takes on the mighty Goliaths. Marketing has for long been the David who take on the Goliaths such as Finance, Banking, and Human Resource (also formerly under-rated). Now Marketing too is coming of age, Serena Kallian finds out. The key to marketing and any other role that requires initiative is quick and effective decision-making. We have some tips for you on making skillful decision on Success Street. Finally, in the next few months, many of you will be making some very crucial decisions yourself: B-school admissions, applying abroad, pick what you would be wearing to the interview… Some of you will also be sitting for essay writing as part of the CAT selection process. The topics such as Euro crisis, Wall Street protests, Arab Spring, 2G scam, inflation and AFSPA in Kashmir are likely to dominate these tests. We have explained some of them for you in this issue. Good luck

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Contents

 

First Step

COVER STORY 04 Show me the MONEY

 

MBA Buzz

SPECIAL REPORT 12 Marketing: Rise of the underdog

  31

MBA options in Canada

  44

Region Focus

Success Street

Corporate World

DEAN SPEAK 18 Prof. B. S Sahay, Director, IIM-Raipur

EXECUTIVE SUITE

ASK THE EXPERT 24 Careers in Finance

BUSINESS ANALYSIS

STUDENT INTERVIEW 28 Rohit Narula, Indian School of Business, Hyderabad

December 2011

 

World View

56

The European Union Crisis

58

Euro tangle: Who owes whom what

58

Rich Greek Poor Greek

Making skillful decisions

  46

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Purav Sanghvi, Manager, Human Resources at BIGADDA

48

India Inflation and Challenges

52

Global Currency Challenges

54

Economic Indicators

Disclaimer : The views expressed in the articles by contributors and others are not necessarily those of the Publishers, unless specifically stated therein. While no effort is spared in ensuring the accuracy of the information published herein, readers are advised to reconfirm the current facts before acting upon any such information. The Publishers regret their inability to accept responsibility for any inadvertent errors of commission or omission in this issue. Readers are recommended to make appropriate inquiries before incurring expenses or entering into commitments in relation to any advertisement appearing in this publication. The publishers do not vouch for any claims made by the advertisers of any products or services. The Publisher, Printers or Editor shall not be held liable for any consequences in the event of such claims not being honoured by the advertisers. All rights reserved. No part of this publication may be reproduced, in any form or means, or stored in a database or retrieval system without prior permission from the publisher.

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FIRST STEP

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FIRST STEP Cover Story

Show me the

MONEY

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Cover Story FIRST STEP

Traditionally, pursuing a Masters in Business Administration (MBA) is seen as an expensive affair. The average cost of an Indian MBA is about Rs 10 lakh a year, with the highest fee, not including the management quota seats, going up to Rs 15 lakh. But it might be important to note the cost to salary ratio of a good B-school is heavily tilted in favour of the student. An MBA continues to be a lucrative choice as it not only promises a quick return on investment but also a great launch pad for a secured future. Puja Shah

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courtesy:wikipedia

B

esides the money factor, MBA is also preferred by many students because it allows graduates from fields like engineering, arts, commerce or even medicine with an aptitude for management to take admission. It is not limiting in its scope since it is multidisciplinary in its curriculum and conventionally covers all aspects of economics, finance, marketing, sales and human resource management, allowing students to dabble with different fields and finally pick a specialisation. In India most applicants for MBA are freshers but now the mindset is slowly changing and many professionals opt for an MBA once they have worked for a couple of years. This change has led to an increase in the number of B schools offering the part time or the Executive MBA. These courses are designed for professionals who want to change their career or to strengthen their management skills if they are from a technical background. There are many schools offering courses for niche fields like Mudra School of Communication, XLRI School of Business and Human Resources, and NMIMS, which offers an MBA in a field like actuarial science. These new courses increase the options available to MBA graduates. More and more top B schools are now offering summer placements so that students can gain practical knowledge and moreover get an insight into the field they want to work in eventually. This helps students make the correct career choice since they would have already worked in that sector; also it gives them a chance to make a good impression and secure a pre-placement offer. But it is important to note that the companies recruiting and the pay packages differ from school to school. The top B schools will always get the best Indian and International offers though many students prefer to not join any organisation but to become independent entrepreneurs. Therefore from being managers or consultants to being hired as finance analysts, or maybe starting your own venture, the MBA offers you a vast range of choices in the career department. To look for jobs with growth, advancement opportunity and, of course, a good salary is always desirable. Typically, those with MBAs make significantly more than regular graduates. And since money DOES make the world go round, let us take a look at some of the top paying careers for MBA graduates. Advanc’edge MBA December 2011

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FIRST STEP Cover Story TOP PAYING CAREERS The placement trends in the last couple of years among the top Indian B-schools threw up the following facts FINANCE Lowest salary: Rs 7 lakh Highest salary: Rs 32 lakh For decades, finance graduates have been the most sought after by the corporate world over. Today, two global financial crises (in 2008 and ongoing euro crisis) later, the trend hasn’t changed much. Since the onset of liberalisation, India’s financial sector has registered a phenomenal growth. To put it simply, today almost every Indian has investments and insurance cover. Apart from challenging jobs, the candidates will also be the recipients of lucrative salaries. Because this sector grows faster than the public sector, the chances of exciting opportunities are more. Some of the posts that are available for students at the entry level are:

Credit Risk Management Analyst: Credit risk analysts are responsible for developing methods used to predict how likely a person or company who borrows money from a financial institution is to default or not pay a loan.

Investment Banker: The job of an investment banker is to essentially help banks to acquire new funds. Investment bankers also thoroughly study the market, and give investing advice to banks and other companies around the globe.

Financial Research Analyst: Financial research analysts offer investment advice to individuals and businesses. They may work for banks, securities firms, pension funds, insurance companies or other investment firms.

Venture Capitalist: These people spend their time looking for companies or entrepreneurs to invest their money with. By providing funds to startups and other companies or individuals with potential, venture capitalists typically take an ownership share in the company with the goal of eventually selling it for a profit or making their money back through the company becoming successful. As the students are taught about the finer aspects of economics, banking, accounting and market structure etc in their MBA program, they will prove to be valuable for firms, especially firms of the banking sector. This is generally a very intense and competitive field. I have several investment banker friends who tell me that their hours are generally from 9am to 2am each weekday while working maybe 7 hours on Saturday and again on Sunday. So why do people do it? You probably could have guessed. Finance is the highest paying... though there may be people out there who also enjoy the challenge, the thrill, etc. There are also exceptions, as venture capital is not always as time intensive, but as a whole, it’s a very dedicated lifestyle. There’s not a lot of leadership involved and it’s a much focused and an analytical profession. Many aim to do this for just a year or two to gain hard finance skills, before moving on to a totally new field. This requires lot of calculation, cost auditing and number crunching, so person should be very comfortable in mathematics and calculations.

Personal Financial Adviser: A financial advisor is an individual or an entity who is entrusted with the task of providing advice or counsel in order to aid the process of investment and asset management. Previously, financial advisors only concerned themselves with investments. However, their roles have evolved with time and today; a financial advisor also deals with insurance products and undertakes retirement planning. Portfolio Manager: Portfolio management is the ongoing process of constructing

por tfolios that balance an investor’s ever changing goals with the portfolio manager’s assumptions about the future. Within the framework established by the investor’s investment policy, a strategy will be adopted that ensures that the investor’s longterm objectives will be attained. The portfolio is then monitored so that the strategy and tactics can be adjusted to accommodate the outcomes realised and changes in the investor’s objectives.

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CONSULTING Lowest salary: Rs 7 lakh Highest salary: Rs 23.5 lakh A B-school teaches you to use your specialised knowledge to solve business problems. You can work in a consultancy firm or as a freelancer. Consultants are well paid and a respected lot. An MBA can help establish your expertise and business credibility in the case of freelancing, or be a requirement to www.advancedge.com


FIRST STEP

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FIRST STEP Cover Story entry in the case of a consultancy firm. Broadly, consultants are hired to help organisations, companies, and government agencies improve their performance. Consultancies get hired by companies to come in and evaluate a situation, analyse a problem or a limitation, and propose a solution. Consultants identify and develop solutions for general or specific problems hindering the organization, and provide insights to help improve their business model. As advisers and problem-solvers, their goals might include increasing revenue, reducing costs, or clarifying the company’s direction. Ideally, consultants provide their clients with extensive industry knowledge and connections, as well as superior communication and problem-solving skills. The positive side of consulting is that you get exposed to a wide variety of businesses and industries. Most projects last only a few months, and you are immediately exposed to senior management despite having virtually no business background. The downside is that from a leader’s point of view, it can be frustrating to come into a company, make connections, build rapport, and then abruptly leave without real closure. You suggest a course of action which may or may not be adopted by the customer company. On the other hand, many people actually enjoy consulting for the same reasons some don’t. They don’t get bogged down with one position for too long, they have a lot of variety, and it’s a relatively safe route as you never have to actually execute any of the plans. This kind of career is suitable to the candidates seeking a long term career opportunity that would give chance for higher promotion with higher rate of performance. The basic level of career in this field starts from being an analyst and later become eligible for promotion to associate, manager and even to principals and partners. OPERATIONS/ SUPPLY CHAIN Lowest salary: Rs 8 lakh Highest salary: Rs 20 lakh You would easily get opportunities to work in planning and policymaking, motivation, evaluation, product development and inventory control.

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The top B schools will always get the best Indian and International offers though many students prefer to become independent entrepreneurs. If your company is large enough, you could focus on overall management or on a small specific area of the supply chain. Many supply chain specialists are now part of the team that work in product development, forecasting, and strategic planning. Most companies have become global both in their manufacturing and in their sales and this trend has made the work of operations managers more significant than ever. MBA graduates get to work as general operations managers, responsible for budgets, hiring and training employees as well as equipment procurement and policy development. They can also work as logistics engineers who coordinate the flow of materials, information and products for an organisation. You may also end up working in manufacturing development and operations managing in production planning, forecasting, quality control and process analysis or in service operations, working as internal consultants and quality analysts. In short, supply chain and operations is a rapidly evolving field ripe with new opportunities. MARKETING/ SALES Lowest salary: Rs 7 lakh Highest salary: Rs 15.5 lakh A specialisation in Marketing opens up a lot of possibilities like branding, market research, advertising and public relations. The field of marketing is better suited for someone who likes both a fast-paced, but also a creative environment. Someone who has a first degree in public relations or advertising

might enjoy a career path as a marketing director. Choosing a career in marketing after MBA demands a lot of creative strategies and creative thinking, ability to coordinate, working with other people in the industry and meeting the targets. The common positions for MBA holders in the marketing field are marketing manager, Sales manager, market analyst and brand manager etc. Building and managing a brand is one of the most important part of any business as one of and requires innovative thinking, the person is responsible for profitability and market growth of the particular brand. Analyst drills down the data and come out with facts about business trends that help in making strategies for business growth. Sales profile requires lot traveling, meeting people and completing sales targets. All these are high paying jobs and demand deep knowledge of the market and its customer management. MANAGEMENT Lowest salary: Rs 9 lakh Highest salary: Rs 15 lakh The role of a manager is growing important with each passing day. As management is a key component of MBA curriculum, making it to the position of manager a logical choice for MBA graduate looking to enhance their career prospects. Management as a sector is also vast since you can get into Health care, Hotel, Agriculture, Events, Retail, Brand management etc. All companies, non-profits and other organisations have some form of general management at their head to direct the company’s operation and make policy decisions. The CEO (chief executive officer), COO (chief operating officer), president, vice president, owner, etcetera. Most corporations have one or more of these positions which oversee the company’s goals and operations. These persons are in turn overseen by the company’s board of directors. Having an MBA is frequently a pre-requisite for a career in executive or high-level positions. There are more factors that go into obtaining a highlevel position than simply having an MBA, but the MBA is certainly a critical www.advancedge.com


FIRST STEP

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FIRST STEP

piece of one’s toolkit in obtaining such a position. This sector pays better if you have previous work experience. SYSTEMS/ IT Lowest salary: Rs 12 lakh Highest salary: Rs 14.5 lakh This career path is geared towards anyone with an Information Technology background. Even within this career path there are a variety of specialties such as systems, networks, and infrastructure. The Information Systems Manager with an MBA can be employed in almost any sector that requires the utilisation of information technology. The private sector is the most sought after sector in terms of generating employment for the IT professionals. Most of the top end work is done by these IT companies. This does not mean that MBA IT professionals can work only in IT companies. MBA IT professionals can find jobs in various other industries as well. Some of them are:  Telecommunications  Heavy engineering  Defense  Space agencies  Automobiles SKILLS REQUIRED The main reason why companies recruit MBA graduates is to maximize their profitability with minimum utilisation of resources. Be it any specialisation, an MBA graduate is expected to use his management skills which he/she has learned in college and fine tune the business. The following are some of the qualities which recruiters look for in an MBA grad: Communication / Interpersonal Skills: The recent QS Recruiters

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Advanc’edge MBA December 2011

Survey has ranked Soft skills the number one skill, recruiters look for and they find it lacking in most MBA graduates. More and more B schools are now attempting to bridge this gap and are having lectures and modules on communication skills. Communication skills would include listening, speaking carefully and clearly, the ability to put across your arguments fluently in writing; to persuade people and also ask or help when you require it. Quantitative knowledge and technical skills: All recruiters expect MBA graduates to have a good head for numbers especially if you are employed in the finance and consulting sector. Number crunching is going to be a major part of an MBA graduate’s job. Having good computer skills is also a must since almost all your work is going to done on the computer and a basic knowledge about certain softwares is necessary. Team work/ leadership skills: All employers are keen to recruit graduates who are able to cooperate, solve problems and work in teams. As less hierarchical organisations have emerged with project teams, self-managed work teams and management teams, so the requirement to get on well with people becomes increasingly important. Teamwork involves working confidently within a group, contributing your own ideas effectively, taking a share of the responsibility, being assertive rather than passive or aggressive, accepting and learning from constructive criticism and giving positive, constructive feedback to others. Creative and innovative thinking: Lateral thinking, is the ability to

think creatively, or “outside the box” as it is sometimes referred to in business, to use your inspiration and imagination to solve problems by looking at them from unexpected perspectives. It involves discarding the obvious, leaving behind traditional modes of thought, and throwing away preconceptions. It is very important in careers such as advertising, marketing, the media and art and design. Ability to analyse and strategise and make quick decisions: The ability to analyse and solve problems is important for all recruiters. All students are expected to have this ability since the MBA curriculum gives utmost attention to planning and strategising. A good leader must have the confidence to make quick decisions based on minimum facts and this is what most recruiters look for. Foreign languages: Most companies are now going global and have increasing number of foreign clientele therefore fluency in a foreign language can be a big plus especially when there is a lot of travel involved. Conclusion Looking at the top Indian B school placement reports of 2011 we noted that salaries have increased but only marginally. There has been no news or press releases of students bagging salaries in crores. But the one thing that all the placement reports have in common is that the Finance and Consulting sectors have given out the highest salaries. The placement reports |have been largely dominated by these two sectors. The high salary is also one of the reasons that these two sectors are very popular with students. There has been a considerable increase in the number of students hired by banks or finance companies. An increase in the number of recruiters has also been noted in this sector. www.advancedge.com


FIRST STEP

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MBA BUZZ Special Report

Marketing:

Rise of the underdog

courtesy:sxc.hu

Not so long ago, marketing was considered as a soft function and a bit of a lesser trade. Today, it has become one of the most important tools of commerce. Also, concepts like brands, product positioning, market research, advertising, front of mind, targets, procuring orders, clients, customers have all become a part of the marketing circus. Now, it is being taught in management/business schools the world over and forms one of the major specialisations under the large umbrella of an MBA degree. Marketing, the function as we know today, spans several sectors. It is also a role that has seen a lot of changes through time.

Serena Kallian

M

arketing and Sales has shared a love hate relationship with the market. After years of being rated as an underdog skill, it had gained its well-earned respectability during the last couple of decades. In fact, it had become a traditional favourite with MBA graduates prior to the onslaught of the finance and technology gamut. It bounced back on the cards with uncertainties and a career paradigm shift post the downturn of 2009. Post 2010 this function has seen a slight dip as the financial sectors have regained their momentum. So, does one need an MBA to excel in Marketing? What do B-schools teach?

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Industry Scenario Marketing is a very important function in the operations of a company. It becomes more than just a function in certain sectors and fields such as the Fast Moving Consumer Goods (FMCG) industry, market research, branding and advertising, pharmaceutical and healthcare, financial services, manufacturing, automobile etc. Here’s looking at some of these segments and a forecast on the marketing opportunities for future MBA graduates. FMCG industry Alternatively called as CPG (Consumer packaged goods)

industry, it primarily deals with the production, distribution and marketing of consumer packaged goods. Some of the prime activities of the FMCG industry involve selling, marketing, financing, purchasing, etc. The industry is also engaged in operations, supply chain, production and general management. There is a growing competition in this sector due to a large untapped market. As a result of this competition, investment in FMCG industry is also increasing, specifically in India, where this industry is regarded as the fourth largest sector with total market size of US$13.1 billion. www.advancedge.com


MBA BUZZ

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MBA BUZZ Special Report Market research According to a research report post the liberalisation in the 1990s market research became even more critical when marketers could evaluate their marketing strategy based on the feedback from various segments of the market. Thus the field of Market research became one of the major components in the decision making process. But in many industries in India marketing managers continue to rely on team assessments rather than on the scientific data of market forces. Who is the programme targeted at? A successful career in marketing requires a post graduate degree in the subject, since the changing market environment makes it necessary to bridge the gap that arises over time. Most institutes in the country offer a general MBA with a specialisation in Marketing in the second year of the two year programme. This is ideal for aspirants who come without a background in marketing and sales. In this case an MBA will be a good platform to begin your career. If you have worked in the marketing function for a few years then

Institute Faculty of Management Studies, Delhi

Indian Institute of Management, Indore

Indian Institute of Management, Kozhikode

Indian Institute of Management, Lucknow

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having a specialised MBA in marketing either as a part time programme or a one year fulltime executive programme would be a good idea. In such cases the MBA degree is more an opportunity for vertical growth in the organisation along with a revised compensation package. Across business schools in India, the areas covered under Marketing Management may vary in their allocation in the first and the second year. Marketing Management includes consumer behaviour, marketing research, distribution management, product management, international marketing, business forecasting, business to business marketing, sales management, brand management, retail management, integrated marketing communication, marketing of services, advertising management, customer relationship management, strategic marketing, rural marketing. (This information is widely available in institute websites under curriculum). The core of all electives is consumer behaviour. It is observed that some management institutes, especially the university departments do not

Rising enrolment ProCurriculum gramme/ Duration MBA, 2 years Consumer Behaviour, Advertising Management, Competitive Marketing, Business Marketing, Sales Force Management, Service Marketing, Sales Promotion Management, Brand Management, Internet Marketing, Retailing Management, Marketing Channel, Analytical Marketing, Advanced Research Techniques in Marketing PGP in Brand Management, Consumer Behaviour, SerManagement, vices Marketing, Business to Business Market2 years ing, Integrated Marketing Communication, Sales & Distribution Management, Customer Relationship Management, Marketing Strategy, Advance Marketing Strategy, Retail Management, Marketing of FMCGs, Rural Marketing. PGP in Strategic Marketing, Business to Business Management, Marketing, Marketing of Services, Consumer 2 years Behaviour, Retail Management, Sales Management, Channel Management, Integrated Marketing Communication, Product Policy & Brand Management, Marketing Strategies for High-Technology Products, Internet Marketing, Customer Relationship Management PGP in Advanced marketing research, B2B Technology Management, Marketing, Consumer behaviour, New product de2 years velopment, Promotional strategy, Customer relationship management, Brand and product management, sales and distribution management, Services marketing, Retailing management

Advanc’edge MBA December 2011

have consumer behaviour as part of their electives. There are two other popular electives taken by candidates, these are services marketing and industrial marketing. There are few electives which when selected can be considered as a tool kit which would help a participant in understanding the marketing practice within the classroom environment. These include customer relationship management, marketing research, advance marketing research, marketing analytics, product and brand management, new product development, sales and distribution management. Career Opportunities All businesses must have a strategy and a process for the marketing of their products or services. As mentioned before as well marketing, along with sales, production, and finance is one of the core functional areas in most companies. Many businesses, including some of the largest in the world, rely on marketing strategy to drive company profits. Executives working in this function take a prominent place among the senior management of any business

Pedagogy seminar courses, projects

Sectorwise breakup at Placements 33%

Cases, projects, independent 22% studies,computer aided instructions, group discussions, lectures, seminars, presentations by participants, and lectures by guest speakers from industry and government. Lecture method and experimental 26% learning methods such as case discussions, role plays, simulations, group discussions and projects.

lectures, case discussions, exer- 22% cises, seminars, role plays, management games, assignments, term papers, project work, audiovisual aids, and computer-based learning methods. www.advancedge.com


Special Report MBA BUZZ Institute Management Development Institute, Delhi

SP Jain Institute of Management Research

XLRI School of Business and Human Resources

Programme/ Duration PGP in Management (2 years)

Curriculum Core marketing and 5 specialised electives

PGPM, 2 years

Sectorwise breakup at Placements Lectures, case studies, seminars, 37% assignments, live projects, group discussions, business games, outbound based experiential learning activities, educational excursion, role plays, simulation exercises, structured and unstructured group work, and field visits. case based study, interactive 23% discussions, subject related projects, macroeconomic sessions, workshop, seminars, celebrity lectures, business games, study circles, quizzes etc

E - Marketing and Mobile Marketing, Technology Marketing, Individual and Organizational Consumer Behavior, Sales and Distribution Management, Strategic Marketing incl.Product and Brand Management, Marketing Communication, Dissertation, International Marketing, Return on Marketing Investment, Marketing models, Marketing Implementation, Rural Marketing Postgraduate Marketing management 1&2, Advertising and Sales Classroom learning combined 25% Programme Promotion, Business-to-Business Marketing, Com- with experiential projects, industry in Personnel petition and Globalisation, Consumer Behaviour, interactions etc ManageInternational Marketing, Internet Marketing, Marment& Indus- keting Decision Models, Marketing Fair, Marketing trial Relations, in Practice, Marketing Law, Marketing Research, Business Pricing Management, Product and Brand Managemanagement ment, Retail Management, Rural Marketing, Sales (2 years) and Distribution Management, Services Marketing, Strategic Marketing

profits. Executives working in this function take a prominent place among the senior management of any business organization. In many companies that are marketing driven, such as large consumer-products companies, the most senior management personnel typically advance to their positions from the marketing function. The entry role for both marketing and sales is almost on the same level. Freshers who come from B schools enter the work force as management trainees or sales executives. The new joinees are trained by the company. Candidates who come in without any marketing/sales related experience will be expected to undergo training provided by the company. Experienced professionals come in at a slightly higher scale and are expected to deliver from day one. When it comes to growth within the organisation in terms of the building materials and manufacturing segment, a person who enters at the executive/ trainee level can reach the manager cadre in about five years. This again depends on the quality of work and one’s merit. Marketing and sales functions in most small to medium companies do not see a lot of segregation especially in the engineering sector. In most cases www.advancedge.com

Pedagogy

a marketing team undertakes a lot of sales activities. The market research is also sometimes performed by the same team. For instance a marketing team first needs to generate enquiries for the goods, this is followed by a study of the market/industries etc. The team then sends out introductory letters to the prospective clients, has presentations, field visits. Based on the requirements and budget constraints placed by the client a quotation is prepared. Now in the market there are several players involved and in such cases there is competition and usually the lowest bid gets the contract. Marketing or Sales becomes more than just a support function because it is directly connected to a company’s revenue generation. The Fast Moving Consumer Goods sector (FMCG) alternately known as the Consumer Packaged Goods (CPG) sector is the one place where marketing takes up different hues. Since competition is high, the marketing strategies are different from the other sectors. Social Media marketing under Online marketing, Relationship marketing, Marketing for e-learning in the education and training sector, IT products marketing, rural marketing for financial products etc

have been identified as some of the areas which are expected to throw up a lot of opportunities for future marketing and sales professionals. Required skill-sets In order to become a successful marketing professional one needs to develop certain skill sets or posses the same. Firstly one needs a leader and motivator, to have the ability to work with or lead a team, be a creative problem solver, have good communication, interpersonal and analytical skills, and be an actionoriented initiator. Brand companies will want the marketing professional to demonstrate creativity and an interest in their product. Such companies would expect the professional to be capable of running a business and at the same time be a good General Manager. On the other hand consulting positions in such places are less concerned with marketing creativity. In such cases the skills appreciated would be strategic thinking, analytical aptitude and intellectual curiosity. Placement Trends Many management institutes today do not provide adequate training or inputs in select areas under marketing Advanc’edge MBA December 2011

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courtesy:thinkstock

MBA BUZZ Special Report

for example physical goods and technology marketing which are two upcoming segments; as much as 6065 percent or 2/3rd of the marketing opportunities are caught up in the services sector. When the world was reeling under recession, B-schools saw a noteworthy rise in the number of takers for marketing roles. However, since 2010 placements with improved economic scenario, marketing roles have again seen a marginal drop in some institutes while some schools maintained a rise in numbers. Xavier’s Labour Research Institute (XLRI) Jamshedpur, has seen resurgence for the marketing profile since 2008. It wasn’t the most sought after profile at the placements this year, but 25 per cent of the batch acceptedoffers in marketing. The class of 2010, on the other hand, had seen 30% of its batch taking up marketing roles which at that time was the most sought after field. Roles were offered in the areas of branding, marketing and sales functions by FMCG majors like Procter & Gamble, Hindustan Unilever Ltd, Johnson & Johnson, GlaxoSmithKline, ITC, Asian Paints, Nestle, Cadbury, Marico, PepsiCo, Castrol and Biocon. There was also participation from companies across sectors like BhartiAirtel, Lenovo, Cummins, Hindustan Coca Cola

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Beverages Pvt Ltd and Akzonobel. At IIM-I and IIM-K there has been a drop in the number of students opting for marketing and sales this year as compared to last year. At IIM I, 22% percent of the batch accepted profiles in sales and marketing. The leading recruiters were from FMCG, and from other sectors like automobiles, telecom, pharmaceuticals and manufacturing. The leading recruiters of the marketing and sales function at IIM-I were Hindustan Unilever, Procter & Gamble, Colgate-Palmolive, ITC, Pepsi, Hindustan Coca-Cola Beverages, Marico, Reckitt-Benckiser, Dabur, and Britannia. Some of the notable partners from sectors like Automobiles, Manufacturing, Telecom, Textile, and Pharmaceuticals comprised of Tata Motors, Tata Steel, Airtel, Vodafone, Raymond, GSK and Pfizer. At IIM-K the FMCG sector which predominantly offered roles in Sales & Marketing and Operations saw companies like HUL, P&G, ITC, Reckitt Benckiser, Marico, Hindustan Coca Cola Beverages (HCCB), Britannia, Kellogg’s and Colgate Palmolive among others, make offers to students. In the broader marketing domain, firms such as Airtel, Asian Paints, J&J Medical, 3M, Glenmark, Pfizer, Raymond, Titan, Idea, Videocon, Panasonic, Tata Motors, Tata Steel, Wipro Consumer Care, Madura F&L,

HP, BILT, JDA Consulting and Zee Learn made offers to several marketing and operations enthusiasts. 26% of the batch took up roles in Marketing and Operations here. Marketing saw a positive return at the placements this year at IIMLucknow. With 22% of the offers coming from top FMCG, marketing and Market research organizations, the campus saw the largest number of marketing firms across all IIMs.. Key recruiters in the sales and marketing space include Asian Paints, Aviva, Britannia, Castrol, Dabur, GSK Consumer, Hindustan Unilever, ITC, Johnson & Johnson, Kraft Foods Cadbury, Marico, Nokia, Panasonic, Pepsi, Procter & Gamble, Ranbaxy, Raymond, Reliance and the Nielsen Company among others. FMS continued its legacy of unmatched placements in the marketing sector with several FMCGs recruiting only at FMS this year. 33 percent of the MBA batch took up marketing roles. Procter & Gamble led the way with 9 offers across their Marketing, CBD and PS functions There is a contention in the MBA circles that students in many of the premier business schools prefer to take up profiles in finance over marketing because of the difference in remuneration. In such cases only a genuine interest in marketing can sustain one’s aspirations. www.advancedge.com


MBA BUZZ

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MBA BUZZ Dean Speak

‘We believe in preparing ethical leaders’

…says Prof. B. S Sahay, Director, IIM-Raipur, while speaking about the institute, its future plans and current management trends With a number of MBA entrance exams getting scrapped, it is now time for CAT to become the sole national level MBA entrance exam. Is that a good thing? I think it is a good move to have fewer tests for admission to Management Programmes in India. This will help students from unnecessarily appearing in multiple tests. Management education in India started in the early sixties within the university system, the IIMs and few other select institutes. The nineties saw an unparalleled growth of management institutions. Although opening up of such a large number of institutes may have been desirable in a vast country like India, the quality of majority of such institutions was far below the desirable level. While an Indian university degree is well recognised in the world, we have to be careful about the growth of higher education without quality control. The onus lies on all

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the institutions to provide quality education in the country. Similarly, regulators have to play a significant role to keep a watch on education process and quality. Over the years, management education has attracted a lot of debate concerning various aspects like the curriculum, pedagogy, industry interface, research etc. It is important therefore to look into the following in detail. Standardisation One of the major debating points is of compartmentalization or standardization of management education. It is often felt that standardization promotes a predetermined set of thinking pattern and kills creativity, much needed to solve the complex issues arising out of increasingly unsettling environment. The standardization makes it hard for the students to get a holistic perspective of business and the environment in which businesses are operating. Majority of them remain out of sync with the reality that organizations are facing day in and day out. Curriculum Normally it has been found that the curriculum design is often related to the industry/business organizations’ response and demand of management graduates. The dependence of what should be taught or what should not, on the business cycle of industries or sectors, has led to compromising the stability of curriculum which highly emphasizes the valuable and fundamental concepts of management. At times, the fundamentals seem to get compromised on the pretext of specialization which in turn weakens the students’ ability to resolve the critical problems in their career as managers. For example, the operations area is considered to be the backbone of business and even the top management institutes in India ignored it in the wake of stupendous growth by service industry. The irony is despite the late realization that service sector needs operations expertise the management institutes have yet to respond to this challenge especially in India. Same is the case with behavioural courses, where additional resources ought to be committed. Research The third important aspect is whether management education is all about teaching case analysis and projects or it has to be qualitatively more than that. Research, unfortunately, has been lost in the background and even where research is taking place, in most of the business schools, it is a kind of post-facto study of the actions and reactions of particular companies or organizations. The research ought to be much more than that. It must be first of all drawn into the class room teaching and must result into setting trends for the organizations to follow. Young minds need to be nurtured in this direction; so also the experienced brains of the faculty. This requires commitment of resources in cutting-edge research and networking of intellectual resources among the management institutes. www.advancedge.com


MBA BUZZ

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MBA BUZZ Dean Speak Training The learning process during a typical MBA programme is considered as text book oriented. The learning actually shouldn’t lead to a situation where a soldier is getting ready for the battle entirely by reading from the manual given by his instructor. The students ought to be put through more genuine live projects and given greater exposure to entrepreneurship. How do you compare Indian MBA with foreign MBA? IIM’s PGP programmes are comparable with those in some of the best business schools in the world. Getting into an IIM, however, is a lot tougher than getting admission in business schools abroad. But that may not be true for other B-schools in the country. I would like to say that any student getting admission in India or abroad should check the credibility of the B-schools, its faculty, curricula, diversity, corporate connect, alumni and global exposure. Of course, students should also see the value for money. Education in India is much cheaper than other parts of the world. There are many good business schools the world over; however, students must check the credibility of the school. Let me put in plain words. Any MBA programme which adds value to students and is recognized by the corporate world is a good programme. What distinguishes IIM-Raipur from other B-schools? IIM-Raipur has been in operation for almost a year since its inception in 2010. The institute has come a long way leaving its mark in every initiative it has undertaken till date. The institute’s strength is the pool of talented students who come from diverse educational backgrounds ranging from engineering to fashion technology to even medical sciences. We intend to take the institution to scale new heights in the field of research and academic excellence. This is going to be a collective and exciting journey in making IIM Raipur: } A world class institute with a global outlook but a regional and national focus; } an institute par excellence, which will be known for outstanding value-based quality education, high quality research, executive education, consultancy and strong corporate as well as international linkages; } a B-school, which will serve the society, the state and the nation for economic growth and prosperity. From the beginning, IIM Raipur has set high standards and aspires to reach its goals with all collective and cooperative efforts. We can witness how well the institute is aligned to its vision. With continuous efforts by the students and by their contribution to the Chhattisgarh Government during their summer internships, they have proved their mettle. They have partnered with the state government to discuss the challenges it faces. From day one, we have set our standards high and will have to reach our goal with all our collective and cooperative efforts. We have focused on designing practice-oriented learning and a contemporary industry-focused curriculum. We will encourage contemporary research concentrating on regional, national and global issues. What does IIM Raipur look for in a candidate? We believe in preparing ethical leaders who are not only committed to business, commerce and industry but are

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conscious about our contribution in nation-building and make a name for the country globally. Pursuing these objectives, the institute is developing partnerships with leading business schools world over and with leading institutions in India. What is the admission procedure at your B-School? What important factors do you consider during admission? The basic objective of IIM Raipur’s admission process is to identify meritorious candidates for admission under each category of admission, viz., General, OBC, SC, ST and PWD/DAP. The admission process of IIM Raipur consists of: (a) CAT Examination (b) Short listing for Personal Appearance (PA) process (c) Conducting the PA process. A PA process comprises Written Analysis (WA) and Personal Interview (PI), and (d) Preparing the Merit List based on CAT score, PI & WA score and Profile score as indicated in following tables. The candidates who qualify as per the abovementioned eligibility criteria will be short-listed for PA process according to their total CAT score. IIM Raipur Admission Committee will decide the number of candidates to be called for PA process on the basis of short listed merit list prepared for each category. The six new IIMs (Kashipur, Raipur, Ranchi, Rohtak, Trichy and Udaipur) will adopt common process of WA & PI to be coordinated by IIM Ranchi. In case any older IIMs (Ahmedabad, Bangalore, Calcutta, Indore, Kozhikode and Lucknow) are willing to share their WA & PI scores with the six new IIMs, the common candidates who have applied to new IIMs, need not appear for WA & PI process separately. The common candidates will be intimated the names of older IIMs sharing WA & PI scores with new IIMs in due course of time. IIM Raipur follows the following Criteria for Preparing the Merit List: l CAT Score : 50 % l Personal Appearance (PI & WA) : 30% l Profile : 20% CAT Score: IIM Raipur will use CAT 2011 score Personal Appearance: IIM Raipur will consider the following weightage: l Written Analysis : 10% l Personal Interview : 20% Profile: The following weightages will be considered for profiling l Academic Profile : 40 % of Profile weight l Work experience : 30 % of Profile weight l Diversity : 30 % of Profile weight So far as reservation is concerned, IIM Raipur follows the Government of India’s Reservation Policy. All the six new IIMs have made a radical break from tradition by doing away with the group discussion (GD). Could you throw light on the rationale behind this move? Also tell us in what way the “analytical test” to be held before the PI, help simplify the selection process. www.advancedge.com


MBA BUZZ

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MBA BUZZ Dean Speak

courtesy:wikipedia

studies, lectures, simulation games, role play, live interactions with industry personnel from top and medium level management and a lot of self-realized conceptual reflection. This has been designed keeping in mind the effect each of these methods have on moulding the minds of young and self-motivated managers. The case studies help our students to keep in touch with the best predicaments faced in the world of management. With the experienced faculty we have, our students are well guided in their analyses. This provides students with a handson approach to management. Interactions with personnel directly from the industries ensure that our students are kept-up-to-date with the latest issues and occurrences in the various industries. The most interesting part of our system of education comes with the drive we instill in the students to have brainstorming sessions amongst themselves regarding various issues. As Albert Einstein said, ‘The important thing is to never stop asking questions!’ This has helped students mould themselves into world class managers with a self realized potential and vision.

Yes, Group Discussion (GD) didn’t give equal opportunity to each candidate to be evaluated. So all the six IIMs decided to do away with it and replace it with Written Analysis (WA). This will also help in examining the written communication of the candidate. As you know, written communication is very much important in business, industry and organizations. WA will be conducted on the same day, just before the Personnel Interview (PI). How important a factor is work experience? As per IIM Raipur Admission Policy for the Admission to PGP2012-13, out of 100% weightage, 20% weightage is given to profile. Profile has three components viz. academic profile, work experience and diversity. Work experience is given: 30 % of profile weightage i.e. 6% out of 100 %. Do you prefer candidates having engineering background over others? What was the student profile in the last two years? We do not indicate our preference about the background of the candidates. Admission Policy is finalized well before the result and uploaded on the IIM Raipur website. Admission is done as per the admission policy. Merit list is prepared categorywise. Invariably we get about 90% of students from engineering background. This year we have tried to bring diversity in the Admission Policy. We will see the real impact of our Admission Policy in June next year. How do you engage students in research work? Our students work closely with faculty members, corporates and government. Student clubs are very active. One of our Students club, OPEP, i.e. Operations Club, has launched Students Research Journal “Strive” which was launched this year, and I am proud to say that they have performed exceedingly well. What kind of study model [pedagogy] does the institute follow? The pedagogy at IIM Raipur presents a mix of case

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What kind of placement records are you generating each year? As you are aware IIM Raipur was setup last year in 2010 and the first batch of PGP will be graduating early next year i.e. March 2012. Once the placement process for the first batch is over, we will be able to provide you the placement records. We are getting good response from the companies for the first batch. What are your projections for the institution’s future? Are there any new areas that the institute is planning to diversify into (courses, tie-ups, seminars, etc). We are trying to create a world class institute. Research is one of the major casualties in India. We have decided to start the doctoral programme (Fellow Programme in Management) from next year i.e. academic year 201213. We are also starting Post-Graduate Programme for Working Executives from next academic year 2012-13. Besides we are planning to set up two research centres, ‘Centre for Entrepreneurship & Innovation’ and ‘Centre for Energy Management’. IIM Raipur is planning to organize an International Conference on Humanitarian Logistics next year. Prof. B. S Sahay has about 28 years of experience in teaching, research, consultancy, executive education, and industries. He serves on the Editorial Board of ‘International Journal of Logistics Management’, ‘Supply Chain Management: An International Journal’, ‘International Journal of Physical Distribution and Logistics Management’, ‘Journal of Enterprise Information Management’, ‘Business Process Management Journal’, ‘Journal of Indian Business Research’ etc. He was the Founding Editor of ‘International Journal of Value Chain Management’ and has Guest Edited several international journals. www.advancedge.com


MBA BUZZ

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MBA BUZZ Ask The Expert

Careers in Finance The term ‘finance’ evokes various reactions especially amongst aspiring MBAs. To some, it is the haloed creature to be in awe of but not to live with. There are some who think it is a career to be taken up by super-brains. Some believe it is all about number crunching and excel calculations. While there is some truth in what is generally thought of finance (or for that matter of anything!), readers will help themselves by getting to know more about finance, the myths and the facts related to careers in finance and by updating themselves with the developments that are taking place in this space. Prof. Amit Parakh, Finance Faculty, Praxis Business School

O

courtesy:google

ne cannot be starry-eyed about finance. There are well defined career profiles that exist in this nevertheless ever evolving space. There are some skill sets required to put oneself into these profiles. It is not a great idea to be in finance just because it is (or is believed to be) the most paying career. Simply put, finance helps the flow of money from the people who save it to consumers and businesses who use it. Careers exist in this continuumas a banker who is trying to borrow and lend, as a deal maker who brings together the buyer and seller (of a business), as a finance manager who is making investment and dividend decisions for the company or as a cash manager who is managing the liquidity of the

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company. So, one can either work with a financial institution like a bank, investment bank, insurance company, mutual fund house or with an industrial/ corporate house where finance serves as a very important support vertical. There has been a great deal of evolution in finance and this reflects in the profile of placements. While corporate finance and traditional banking jobs still exist, their constitution, multiplicity and heterogeneity has gone up over time. To add to it, new profiles and industries have sprung up. To name a fewfinancial KPOs (knowledge process

outsourcing), investment banks, wealth management companies, broking houses etc. For the benefit of the readers, I shall discuss the various profiles that exist in this ever-changing landscape. Banking One could be in retail banking or corporate banking. Retail banking deals largely with products and services for the retail/individual customers. As a sales person, you would need to build up business for products such as credit cards, savings accounts, personal loans and home loans. Or in operations, you would need to manage the back-end banking operations and processes. Unlike retail banking, corporate banking involves deals with clients of larger ticket size. In other words, one deals with corporates, SMEs (small and medium industries) and other financial institutions. As a corporate banker, one can be involved in structuring the transaction/ rating and pricing the transaction / executing the transaction. A B-school graduate generally starts as an assistant manager and over 5-6 years www.advancedge.com


Ask The Expert MBA BUZZ

Corporate Finance Corporate finance is a very wide term and encompasses an array of profiles. One could be in strategic finance wherein you look out for acquisitions/structured funding/ placement of securities. One could be in treasury handling and putting the company’s money into optimal investments - or in finance control, handling the company’s MIS, setting and overseeing financial budgets or managing working capital. Over time, a corporate finance person becomes increasingly conversant with the other departments and with the industry per se. Even within corporate finance, is variety in what one does. This is especially true of corporate finance profiles in smaller firms where there is less hierarchy and finance resources, thereby limiting the scope of specialization. The successful lot have gone ahead and become CFOs/CEOs of the companies that they have been working with. Equity Research An equity research analyst researches stock and tries to gauge its fair value. The assumption here is that markets are not always able to discover the fair value of stocks and shares that are being traded. A research analyst tries to discover the mispricing on the strength of his/her fundamental research. A good research analyst, like a fund manager, should be able to take a www.advancedge.com

courtesy:google

can very well become a chief manager. This would translate into increasing responsibilities and independence. Ability to work in teams, good PR skills and high degree of self-confidence do help one become a successful banker. The good news is the banking industry in India is growing fast and furious and throwing up exciting opportunities. ICICI Bank, State Bank of India, Axis Bank, HSBC, CitiBank- to name a few, are active recruiters.

call on company’s performance, given the macro-economic environment. To develop quality research output, one should have a good understanding of the sector and the larger economic environment. One should also have the ability to interpret and read financials and build excel-based valuation models. Unlike corporate finance or even banking, there is hardly any hierarchy to contend with in equity research. You possibly start as a junior analyst, then senior and sometime later an independent analyst. One gets great visibility within a short span of time if they are doing well in their work. There are many investment banks - Indian and foreign who have their own in-house equity research departments. Knowledge Process Outsoucing While it is relatively a small industry, with more and more international banks, institutions and investments banks like JP Morgan, Goldman, Nomura, Morgan Stanley and Fidelity setting up their back offices in India (known as KPOs), the growth in the industry and in the numbers of jobs being created is very encouraging. The nature of work, popularly known as ‘support,’ ranges from treasury back office to financial analytics to research- credit/equity. The positives are a good pay and relatively high-

end nature of work. Good performers are also known to have moved abroad to the main offices. Financial Risk Management A financial risk manager is a relatively new species. Financial risk management has become very important in the current environment which is marked by increased volatility and uncertainty in the financial and non-financial markets. For a firm to survive, it has to hedge itself from risks such as market risk, credit risk and operational risk. A financial risk manager’s responsibilities would include building checks and controls/ implementing them/ constantly monitoring the deviations, if any and taking corrective actions, if needed. While banks are known to have risk management departments, increasingly more and more corporates are adopting risk management practices as well. Fund Management A typical fund manager is one who makes investment by using the corpus that is entrusted to him by the fund house (generally a mutual fund). A successful manager is one who delivers high, risk-adjusted return. A solid knowledge of the macroeconomic environment coupled with company related dynamics in Advanc’edge MBA December 2011

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MBA BUZZ Ask The Expert which he is investing/invested into and foresight of how that would pan out going forward make a good fund manager. Interestingly, a lot of research analysts (‘Sell’ side) do make moves to become fund managers (‘Buy’ side). An introduction of any fund manager starts with the corpus he is managing!

Project Finance Till a few years back, project finance was a hot sector as developmental financial institutions fed the demand. While the exuberance has come down, a project finance professional continues to be a key person for banks and NBFCs (non- banking financial companies). One could be arranging project finance or appraising project finance proposals. Clearly, the roles would involve understanding industrial projects and the related risk factors. Ability to draft project reports, build financial models and conduct feasibility study will come into play. One could be an independent project finance consultant or could be with a bank/developmental institution/ NBFC working in their project finance division.

courtesy:google

Investment Banking A ‘deal maker’- that’s what an investment banker is commonly known as. One can be into corporate advisory- helping clients on valuations, legal compliance or finding suitable acquisition targets or acquirers (mergers & acquisition). One can also help clients raise money from markets by way of IPOs or institutional placements. An investment banker has to be an assertive go-getter and a finance guy who can market well. He has to have good analytical and presentation skills. Self confidence and ability to handle stress are

a must for any investment banker. No wonder the burn-out is fairly high in this space.

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Private Equity If new businesses/business ideas excite you, then private equity is the space to explore. Private equity players raise money from investors and invest in promising new businesses in their initial stage but with a potential to grow. The objective is to make some good returns on these investments. Exit options like time bound IPOs are generally provided for. PEs also buy distressed businesses, improve and restructure them over time and eventually divest these businesses at better valuations. As one would realize, the ability to distinguish a good from a bad business is what makes a successful private equity player. Clearly, one’s ability to look into future is tested. Relevant industry expertise is definitely an advantage. Thus, there is a portfolio of profiles that one can aspire for in the area of finance. Fortunately, all these profiles are options for you post your MBA. For example, students at Praxis have been placed in the areas of treasury, risk management, equity research, corporate finance, project appraisal, etc. in addition to the usual banking profiles. So, does finance excite you? Or are you just curious? The field is extremely large and diverse and there are a lot of bright minds working in it. Being in finance, you learn every day, you get a chance to interact with brighter people, your skills as well as knowledge is tested and updated. You need to strengthen your fundamentals, learn to think analytically and work hard to do well in academics. In addition, you need to keep yourself updated with the goings-on in the financial world, which is why reading financial dailies and magazines - ET, Business Standard, The Economist etc. is a must. Finance is an exciting and enriching domain. It is also highly sought after, making the field very competitive. If you have an inherent interest in this field and are willing to work hard to compete, there is no reason why you cannot make a great career out of it. All the best. Prof Amit Parakh is a PGDM from IIM Ahmedabad and a CA, a CS and a CFA (USA). He has worked with ICICI Bank and J. P. Morgan and is the head of the finance department at Praxis Business School, Kolkata. www.advancedge.com


MBA BUZZ

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MBA BUZZ Student Interview

‘An MBA shows you the bigger picture’ Tell our readers a bit about yourself I am a person who believes that it’s better to wear out than rust out. I started my career as a Marine Engineer with Anglo Eastern Ship Management Ltd., Hong Kong. I did well, and was appointed as Second Assistant Engineer within 2.5 years. The stint allowed me to work with people from diverse cultures and economies. It sharpened my interpersonal skills. It also gave me a unique opportunity to work in an unconventional and often difficult environment. After having spent four and a half years at sea, I decided to pursue an MBA from Indian School of Business, Hyderabad. My experience – both at sea and at ISB -has instilled in me a strong entrepreneurial philosophy. Throughout my educational and professional career, I have carried out some challenging assignments and taking them on has paid off.

…says Rohit Narula a Marine Engineer who has done his PGP in Strategy and Finance from the Indian School of Business, Hyderabad. The Project Manager at MedPlus Health Services Pvt Ltd tells Reshma Majithia why he decided to do an MBA.

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What led you to do an MBA and why did you choose ISB? Three years into my career at sea, I realized that the progression in the field is limited. Had I continued as a Marine Engineer, I would have become Chief Engineer, the highest possible rank for me, within 4-5 years. My problem was--- what next? It isn’t that chief marine engineer is a dead end. But lack of strategic know-how was proving to be a hindrance. After carefully considering my options for about a year, I decided to join the corporate world, and MBA was an obvious choice. Through various interactions with people who had or were undergoing an MBA programme, both in India and abroad, I realized that I would need an institute with a strong curriculum as well as a brilliant peer group. I wanted to be the best among the best. What better than being a part of the distinguished, diverse and vivid group of students at the ISB. The institute particularly caught my fancy because only experienced professionals, with a minimum of two years of work-experience, are given admission here. ISB puts a lot of emphasis on peer learning and experiential learning. It also has some fantastic global associations. How was your experience with Anglo Eastern Ship Management Limited? Tell us about the career in the shipping industry My stint in the shipping industry has been quite an eventful journey. I started with Anglo Eastern as an Engine Cadet. By the time I quit the company four years and six months later, I was the Second Marine Engineer. I had sailed on a number of vessels including Bulk, Container and LPG/Ammonia carrier. Not only did I acquire a strong technical knowledge but was also exposed to the managerial side of things. www.advancedge.com


MBA BUZZ

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MBA BUZZ Student Interview A career in shipping has it all: glamour, challenges and adversities. It has long working hours and higher risks. But working with an organization of Anglo’s stature with great emphasis on the safety and welfare of its crew keeps one motivated to stay on board for longer periods. I believe that the years I spent sailing with Anglo Eastern covering almost 70% of the world have been some of the best years in my life. How did you balance your GMAT and application preparation with your job? My decision to go for an MBA came at a time when I was undergoing a preparatory course that is mandatory for all merchant navy officers to get further promotions. Since I was very clear about my future plans, I decided to quit the training programme in between and return to sea just to sail for another year or so. I made sure to not take any breaks so that I could accumulate my off days. I then took a few months’ break to prepare for GMAT and the application process. I told myself - ‘Do it or go back to Sea’. Tell us about the selection experience at ISB Hyderabad? As it is with almost all the B-Schools, ISB admission comprises two steps: Application and the Interview. The one thing, however, that I believe is unique to ISB is the essay writing. Rather than clichéd topics such as ‘Why MBA?’, ‘Greatest achievement or failure’, here the essays are more case-based, leaving a wide-enough window to gauge the personal traits of the candidate. To clear this test, you are required to know yourself inside-out and convey the same in black and white, which is not an easy task. The interview is the last and the most crucial step. The focus is the figure out the candidate’s motivation for the programme, and picking the best among the candidates. Tell us more about your personal interview? My PI lasted, approximately, half-an-hour. With me, it was more like a discussion rather than an interview. The interviewers asked me some common questions that I believe are put to almost all the candidates. But the questions slowly turned more specific. Their questions ranged from ‘describe a typical day at sea’ to ‘what can I bring to ISB with my marine background?’ Having said

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this, it is important to note that it is not a ‘one size fits all’ concept. The questions are tailored according to the candidate’s profile. The key to success in your PI is simple: Practice. Go through your application really well and know your essays. Mock interviews help you streamline your answers and get clarity on thoughts. How do you see the MBA degree helping you achieve your long-term aspirations? Eventually, I see myself taking on diverse and exciting challenges; leading a team of talented and vivid professionals to optimally serve the clients, the organization and the society at large. The objectives governing my career pursuit have been and continue to be: •Learning something new and challenging each day •To see the bigger picture •Always aiming for growth of myself, my subordinates and my peers The high pressure environment at ISB helped me improve my decision-making skills and trained me to consistently punch above my weight. The knowledge gained at ISB helped me look into the various nuances of businesses and understand the industries and firms at large. I have been able to widen my focus from the core technical aspects of any industry and have started appreciating the broader picture. Do you have any message for marine engineers who wish to shift to management? As Ralph Waldo Emerson has nicely put it, ‘We are all inventors, each sailing out on a voyage of discovery, guided each by a private chart, of which there is no duplicate. The world is all gates, all opportunities’. Just follow your calling and not the herd. No path is going to be easy to tread. So tread the one that you are really passionate about. It’s not an easy decision to come out of the comfort zone and start afresh, but then the payoffs are totally worth it. You have seen the technical side of the industry and I’m sure that you enjoyed each and every bit of it, but now is the time to look at the bigger picture.

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REGION FOCUS

MBA options in

CANADA For a very long time, international education has been popular among Indian students and the options have widened quite a lot inspite of uncertainties in the global market. This need for an international formal education has also reflected in the MBA circle as well. US and UK may have always attracted many Indian students in the past but other English speaking countries like Australia, New Zealand and particularly Canada are gaining popularity with International students.

Serena Kallian

C

anada, the country located in the northern part of the American continent, shares its borders with United States of America to its south. The country consists of ten provinces and three territories. Geographically it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean. Spanning over 9.9 million square kilometres and in terms of the total area it is also the second-largest country in the world. Its common border with the United States is the longest land border in the world.

Schulich www.advancedge.com School of Business, Toronto

Canada has two official languages (English and French) which have been taught as second languages. This is also why they are considered among the world leaders in language training. Many international students often choose to take language courses before beginning a regular academic program. Here are some of the benefits of studying in this country. Benefits Canada is known to be one of the best places in the world to live in and it has been ranked so by the United Nations. For aspirants looking forward to quality studies

this is indeed one of the top places to be in. This assessment has been arrived at based on factors such as the country’s achievements and initiatives in education, its life expectancy, national income and general quality of life. Quality of life has been judged by the country’s abundance of fresh water, comfortable population density, low incidence of violent crime and a health care system that is a model for the world. Canada’s education system is excellent and ranks among the best in the world. Moreover, its

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REGION FOCUS tuition fees are among the lowest in English-speaking countries. Canada boasts a wide range of quality educational institutions for both degrees and diplomas in technical and professional disciplines. International students who have graduated from a Canadian university or college have the opportunity to work in Canada for up to one year after they receive their degree or diploma. The Department of Immigration allows international students to obtain a work permit for 3 years after graduation from a fulltime MBA programme that exceeds 8 months in duration. Canada is a multicultural country with a high standard of living. The cost of living for international students, usually ranges between $5,000 and $12,000 depending on the school and city for international students. The living expenses are estimates based on the cost of essentials such as, groceries, rent, utilities, phone, bus/travel pass, entertainment, laundry/clothing and miscellaneous. Participants of the various educational programmes are expected to have health insurance coverage on gaining admission to an institute (also known as the University Health Insurance Plan which is compulsory for all international students). This is usually included in the living expenses. In most countries a majority of employment and career opportunities exist in the urban and semi urban centres. The major urban centres in Canada are Toronto, Ottawa, Montreal, Vancouver, Saint John, Quebec, Fredericton, Ontario and Calgary. Among these, Toronto is considered as the third-largest centre for financial services and communications technology in North America, it is also a site of several innovative industries ranging from aerospace to biotech. Vancouver has a reputation for a fresh perspective on business. The city is fast becoming a hot spot for innovative thinking, new technology and sustainable systems.

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REGION FOCUS

8th* Best B-School in the Country * Source: CSR-GHRDC B-School Survey 2011 under category of B-Schools of excellence

Best Business Management Simulation - CAPSTONE course Grounding in SAP Environment Consistent 100% Placements for the past one decade Purpose-designed campus facilities to enable learning - 8.5 acres in Bangalore and 5.5 acress at Greater Noida. Exclusive hostels inside Campus for boys and girls with modern life-style choice conveniences.

IBA & Eminent Personalities

It serves as a bridge between the world’s economic powers because of the presence of the Pacific Rim. The Saint John area has a rich immigrant history to share along with an enterprising environment. The city also offers one of the largest bilingual workforces in the province and one of Canada’s fastest growing and most vibrant French communities. The city offers a spectacular waterfront area boasting some of the most amazing marine wonders of the world. The Calgary region, on the other hand, has the highest concentration of corporate head offices in Canada and it is also known as the oil and gas capital of Canada. www.advancedge.com

Types of courses, Job Opportunities; The management programmes offered by Canadian institutes have the longer duration undergraduate programme in management, the one/ two year fulltime MBA programmes and the executive management programmes. Students have the flexibility of choosing from a wide range of programmes with different durations. Depending on the institute, certain specialised international business MBAs or MSc’s are also offered. Most business schools in Canada stress upon a strong academic record, leadership skills and quality work experience in their

Mr. Pradeep Bhargava, Managing Director, Cummins Generator Technologies India Ltd. along with Mr. Ashok Kumar, Consultant-Tata Power LA,

Admissions Open

PGDM 2012-14

INDUS BUSINESS ACADEMY

2-Year, Full-time Residential Program Approved by

AICTE

Ministry of HRD Govt. of India

Formerly, Indian Business Academy

Bangalore : www.iba.ac.in Contact: 080-2608 3703 / +91-93424 10271 E-mail: admissions@ibaintl.org Greater Noida : www.iba.edu.in Contact: +91-92123 35443, +91-97111 70667 E-mail: admissions@ibagreaternoida.org

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REGION FOCUS talent pool. Work experience is an important component here and most MBA programmes expect you to have at least two years of valid work experience. Good references from your work place can strengthen your application. Selection of the right participant for the MBA programmes is done through an application review and followed by personal interviews. The application should include instances or examples of leadership traits, academic performance, work experience and essay questions specific to the institute. International applicants have the opportunity to work in the country post a fulltime MBA programme which is an added advantage of the region. This can be availed of for a period of three years post the fulltime MBA programme. As an international student, you will be required to obtain a Canadian Study Permit in order to come to Canada and complete the MBA programme in addition to the visa application process. Students may apply for this permit once they have received an offer of admission to an

Richard Ivey school of Business

institute. Job opportunities are aplenty in most of the provinces in Canada. Canada is a member of the Organisation for Economic Cooperation and Development (OECD) and the G8 and also one of the wealthiest nations in the world with a high per capita income. Over the past century, the growth of the manufacturing, mining and service sectors has transformed the nation from a largely rural economy to a more industrial and urban one. Like most other developed nations the service industry dominates the

markets. Canada is also among the few first world exporters in energy. Atlantic Canada has vast offshore deposits of natural gas and Alberta has large oil and gas resources. The immense Athabasca oil sands give Canada the world’s second-largest oil reserves, after Saudi Arabia. Other than energy, Canada is also known for its agricultural produce and the manufacturing and automobile sector. Southern Ontario and Quebec have a sizeable manufacturing and automobile market. The major area where management graduates are absorbed is the service industry especially finance and IT. Other prominent sectors include manufacturing, energy, automobile, mining, healthcare and pharmaceuticals. Richard Ivey school of Business The Richard Ivey School of Business is part of the University of Western Ontario and is known for providing the best student experience among Canada’s research-intensive universities. The school is internationally significant for its teaching and research and has a population of over 33,000 students, including approximately 2,200 international students from more than 120 countries.

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The institute boasts of a diverse classroom that also reflects the multicultural nature Ontario, where it is situated. Schulich School of Business, Toronto The Schulich School of Business in Toronto is ranked among the world’s leading business schools by a number of global surveys. Schulich’s MBA programme is ranked number one in Canada by Forbes and The Economist. The Kellogg global network of EMBA partner schools, which includes the Kellogg- Schulich EMBA, is ranked number one in the world by The Wall Street Journal. The school offers business programmes year-round at two Toronto campuses. The Schulich School of Business also offers the Schulich MBA in India – one of the first MBA programmes to be delivered in India by a leading international business school. In addition, the institute operates satellite centres in Beijing and Shanghai, China; Mumbai, India; Seoul, South Korea; and Moscow, Russia. Joseph L Rotman School of Management The Rotman School of Management is located in the heart of Toronto which is North America’s thirdlargest financial centre and one of

the world’s most culturally-diverse cities. The School’s MBA programme is also now ranked in the top 15 in North America by the Financial Times. A wide variety of academic and research partnerships exist between Rotman and the corporate world. For MBA students new to Toronto, the Rotman School provides a variety of resources to help make the transition smooth. Sauder School of Business, Vancouver The Sauder School of Business which is a part of the University of British Columbia, claims to maintain an international reputation for excellence in research and learning with unmatched global partnerships. The school is located in the heart of downtown Vancouver. The MBA programme offered at the school can be traced back to 1955 when it first began. Sauder has 111 core faculty members, of them 84% hold doctorate degrees and 58% of the faculty is from countries other than Canada. The UBC MBA programme is consistently ranked among the top 100 in the world by publications such as The Economist, which ranked the programme 79th in 2010 and the Financial Times, which ranked the programme 80th in 2011. The school is accredited by both AACSB and EQUIS.

4 * Best B-School in South India th

REGION FOCUS

* Source: Dainik Bhaskar (DB) B-School Survey 2011

Curriculum and pedagogy that is updated by current research into business and management issues and collaboration with corporate organizations through Guest Lectures, Workshops, Seminars and Industry Visits. Spiritual development through ‘The Art of Living’, YES+ Programme. Penetrative academics of over 5000 hours. 24X7 curricular structure - Every student gets to work upon nearly 100 cases/projects A strategic pedagogical system ensures students individually interact with nearly 100 inspiring faculty - from academics and industry

IBA & Eminent Personalities

Admissions Open Dr. Ashok Misra, Chairman, Intellectual Ventures, Ex-Director, I.I.T. - Bombay

PGDM 2012-14

INDUS BUSINESS ACADEMY

2-Year, Full-time Residential Program Approved by

AICTE

Ministry of HRD Govt. of India

Formerly, Indian Business Academy

Simon Fraser University, Burnaby

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Bangalore : www.iba.ac.in Contact: 080-2608 3703 / +91-93424 10271 E-mail: admissions@ibaintl.org Greater Noida : www.iba.edu.in Contact: +91-92123 35443, +91-97111 70667 E-mail: admissions@ibagreaternoida.org

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REGION FOCUS Table of Prominent Schools in the region Institute Programmes/duration

Fees in CAD

Richard Ivey School of Business, University of Western Ontario

HBA (undergraduate) (2+2 years), MBA (1 HBA-56,000; year), Executive MBA, MSc in International MBA-88,500 Business

GMAT score (min 600), academic transcripts, work experience(min 2 years) TOEFL/IELTS/MELAB/PTE score

Schulich School of Business, York University, Toronto, Canada

Bachelor's programmes, MBA (16 months), International MBA (IMBA 20 months), India MBA (2 years, year 1 in Mumbai, year 2 in Toronto), Master of Public Administration (16 month), Master of Finance (1 year), Executive MBA (18 months) MBA(2 years), Professional Part time MBA, MBA/Law, MD/MBA, Executive MBA, International Masters for Health Leadership, MBA Japan, International Masters in Practising Management, Masters in Manufacturing Management

MBA/IMBA/ MPA/MFA45,000

GMAT score (550-790), minimum work experience of 2 years, good academic records, English proficiency(TOEFL/IELTS/ YELT)

MBA-34,750 per year

Undergraduate degree, GMAT score, TOEFL/IELTS score, Minimum work experience of 2 years

McGill's Desautels Faculty of Management, Montreal, Quebec, Canada

Sauder School of Business, Full time MBA(16 months), Part time 52,541(MBA) University of British Columbia MBA (28 months), International MBA (20 months), Executive MBA

4 years Bachelor or undergraduate degree, minimum 2 years of work experience, GMAT score (650), English proficiency (TOEFL, IELTS, PTE, MELAB)

Simon Fraser University, Faculty of Business Admin, Burnaby

Bachelor's degree, minimum work experience of 2 years, GMAT score(min 550), English Proficiency(TOEFL/IELTS), extracurricular and volunteer activities, and written submissions

University of New Brunswick MBA, Saint John

MBA( Fulltime 12 month), Executive $31,500 per MBA (19 months), MBA in Management year(MBA) of Technology (part time for 24 months), Master of Financial Risk Management (12 months), Graduate Diploma in Business Administration (12 months part time), PhD MBA(1 year fulltime) in International 24,500(MBA) Business, Innovation and Technology Management

University of Calgary, MBA(16 months), Executive MBA(20 5000(MBA) Haskayne School of Business months part time), Global Energy EMBA, PhD programme

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Admission Criteria

Advanc’edge MBA December 2011

4 year Bachelor degree with a GPA of min 3.0, GMAT score(min 550), Min work experience of 2 years, English proficiency (TOEFL scores), Personal statement, 3 references. 4 year undergraduate degree, GMAT score, min 3 years relevant work experience, 2 references, personal statement

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REGION FOCUS Average Batch Profile/ GMAT Class profile score for the MBA programme 600 Avg work experience-4.8 yrs; Average age-29 years; 68% male; 39% from Business, 28% engineers

Mean Base Salary / average compensation in CAD

Recruiters

98,237

664

Average work experience-5 years; 50% International students, 36%-Female students Class size 70, Average work experience 5 years, 55% International students, 35% Female students, Average age of the class 28 years Class size-124, average age 30, average work experience 6 years, 26% female

na

3M Canada Company, A.T. Kearney, Accenture, Alignvest Capital Partners, American Express, American Standard Asia Pacific, Apple Canada, Artisan Partners, arvato systems, Atomic Energy of Canada Limited, AUXO Management, LLC, Bain & Company Canada Inc., Bank of America-Merrill Lynch Canada, Bank of Canada, Bank of Montreal, Barclays Capital, Bay Street HR, Bayer Inc, Bell Canada Enterprises, Ben Met Steel & Metal, Blackhawk Network, Blu Era, BMO Capital Markets, BMO Financial Group, BMO Private Client Group, Booz & Company, BottomLine Group, Brockhouse & Cooper Inc, Brookfield Timberlands Management, Bruce Power Business Development, Bank of Canada, Cambridge Associates, Canaccord Genuity, Canadian Tire Corporation limited, Canrock Solutions Inc, Capgemini, Capital One, CGA Ontario (Certified General Accountants), CGI Chetna Inc, CIBC Bank, CIBC Wholesale Banking, Citibank, Taiwan, Citigroup Global Markets Canada, Clinton Health Access Initiative, CLSA Limited, CMA Ontario, Connor, Clark & Lunn Financial Group, Credit Suisse, Deloitte (China), Deloitte (Consulting), Deloitte (Financial Advisory), Des jardins Securities Inc NA

620

Average age 26 years, 50% women, average work experience 3 years,

na

590

Average work experience-8 years, Average age 27, 66% International students

na

620

Average work experience 6 years, 40% women, Average GPA 3.26

90,242

670

650

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112,000

73,000

Accenture, Air Canada, Aldo Group Inc., BMO Capital Markets, Bombardier, Capital One, CIBC, CN Investment Division, Deloitte Consulting, Deutsche Post Consulting, Export Development Corporation, GE, GlaxoSmithKline Inc, Google, IBM Consulting, Imperial Oil, Johnson & Johnson, J.P. Morgan, L'Oréal, McKinsey & Company, Mercer Management Consulting, National Bank Financial, Oliver Wyman, Pfizer, Pratt & Whitney, Procter & Gamble, RBC Financial Group, ScotiaCapital/ScotiaBank, SECOR Consulting, SNC Lavallin, Société Générale, TD Financial Group/TD Securities, UBS, United Nations, World Bank 4Refuel International, IBC Worldwide Consulting, Accenture, ICBC, Bain & Company, Johnson & Johnson, BC Cancer Agency, McKinsey & Company, BC Hydro, Meyers Norris Penny, Best Buy, Future Shop, Morgan Stanley,British Columbia Utilities Commission, Offsetters, Central 1, RBC, Chrysalix Energy Venture Capital, Research in Motion, CIBC, Ritchie Bros Auctioneers, City of Vancouver, Smart Technologies Inc, Deloitte, Sophos, Ernst & Young, Starworks, Fraser Health Authority, Terasen Gas, GE Healthcare, Vancouver Board of Trade, Hilti Canada, Vancouver Coast Health, HSBC, WorkSafeBC NA

AnyWare Group Inc, Atlantica Centre for Energy, Bell Aliant Inc, Enovex, Exxon Mobil, Deloitte, Facilicorp,Innovatia Inc, Irving Oil Limited, J.D. Irving, Limited, Irving Transportation, Kinek Technologies, Mariner Partners, Medrunner, New Brunswick Department of Energy, New Brunswick, Securities, Commission, Royal Bank of Canada, Saint John Port Authority, Scotiabank, Shift Energy, SPCA / ARL, Uptown Saint John, Xerox Agrium, Alberta Energy Resources, Conservation Board, Athabasca Oilsands, Accenture, ATB Financial, BP Canada Energy Company, Brookfield Properties Corporation, Calgary Exhibition and Stampede, Alberta Heath Region, Carma Developers LP, CETAC-WEST, BMO, BC Hydro, Borealis Infrastructure, Cenovus, Advanc’edge MBA December 2011

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REGION FOCUS Institute

Programmes/duration

Fees in CAD

Admission Criteria

University of Calgary, Haskayne School of Business contd...

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Michael G. DeGroote School of Business, McMaster University

MBA fulltime(20 months), Part time MBA, 56,225(MBA) Co-Op MBA(28 months), Accelerated MBA(8 months)

4 year undergraduate degree, minimum work experience of one year, GMAT score, English proficiency

University of Toronto's Joseph L Rotman School of Management

Fulltime MBA(2 years), Part time MBA(3 99,001(MBA) years Morning/evening), Executive MAB( 1 year), Omnium Global Executive MBA, Master of Finance, Doctoral Programme

Min GPA of 3.0, Work experience (no minimum requirements 4 yrs or more an advantage, GMAT/GRE score, 2 letters of reference, English language proficiency(either TOFEL/IELTS/must have a degree from an English institute)

Concordia University, John Molson School of Business

MBA(16 months), Accelerated MBA, 8,582(MBA) executive MBA, MBA+ CFA

4 year undergraduate degree(min GPA 3.0), work experience minimum 2 years, GMAT min 580, English Proficiency

Advanc’edge MBA December 2011

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REGION FOCUS Average Batch Profile/ GMAT Class profile score for the MBA programme

Mean Base Salary /average compensation in CAD

650+

42% from business, 20% engineers

61,822

663

Class size-265, Average age-27 yrs, Average work experience-4 yrs, 41% international students, 29% women Average work experience 5.8 years, Average age 29, 31% women

86,245

629

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72,707

Recruiters

CIBC, City of Calgary, Extreme Engineering, Deloitte Consulting, Devon Canada, Encana, Enbridge, Fame Biorefinery, Grant Thornton Consulting, Husky Energy, IBM Canada, INTACT, Imperial Oil Ltd, Magtec Products,Inc, McKinsey & Co, Mercer Management, Nexen Inc, RBC, Rockmount Resources, Saxon Energy Services, Scotiabank, Shell, Smart Technologies, Suncor, Syncrude, Talisman Energy, TD, Telus, Total, TransAlta, TransCanada, University Technologies International, University of Calgary, Western Management Consulting, William Joseph Communications Accelteon Partners, Accenture, Blackstone Partners, Courtyard Group, Durisol Consulting Services, Focus Business Consulting, Hay Group, InterHealth Canada, KPMG, PricewaterhouseCoopers, Prism Partners, Williams and McDaniel, Afexa Life Sciences, Apotex, AstraZeneca, Bayer Healthcare, Baxter Corporation, Biogen Idec, Cardinal Health, Eli Lilly Canada, GlaxoSmithKline, Hoffmann-La Roche, Johnson & Johnson Medical Products, KCI Medical, Marchese Healthcare, Novo Nordisk, Teva Canada (formerly Novopharm Ltd.), Sanofi Pasteur,Stryker Canada, ArcelorMittal Dofasco, Blockbuster, Bruce Power, Canadian Tire, Fairmount Hotels & Resorts, Ford Motor Company, Gatsteel, GE Canada, General Motors, GlaxoSmithKline Consumer Healthcare, Great Northern Insulation, Grober Group, Hay Group, Hewlett-Packard, Hydro One, Hyundai Canada, IBM Canada, IMG, Imperial Oil, Infield Marketing Group, J-Core Marketing, Jaguar Canada, Kraft Canada, Liburdi Automation, Maple Leaf Sports, Mercedes Benz, Microsoft Canada, Mitel, Mold-Masters Ltd, Nemak Canada, Nexans Canada, Nortel Networks, Ontario Power, Generation, Opie Marketing Group, Otis Canada, PepsiCo Canada, Petro Canada, PowerStream Inc, Purolator, Research in Motion, Rogers Wireless Inc, SC Johnson, Securit/ShredIt, Shell Canada, Sony BMG Music Canada, SS&C, Spirax Sarco UK, Staples/ Business Depot, Sun Chemical, Symcor, The Loyalty Group, BDO Dunwoody, BMO Nesbitt Burns, Bank of Montreal, Barrick Gold Corporation, Canadian Tire Financial Services, Centerra Gold, CIBC World Markets, CIT Business Credit Canada, Credit Union Central of Ontario, Deutsche Bank Canada, Deloitte & Touche LLP, Dundee Wealth Management, Global Governance Advisors, Hartford Investments, Integrated Asset Management Corp, Investment Technology Group, MacKenzie Financial Corporation, Manulife Financial, Merrill Lynch Canada, Morguard Investments Limited, Ontario Teachers Pension Plan, Polar Capital Investments, RBC Financial Group, Scotiabank Group, Spirited investors, Travelers Insurance, Trisura Guarantee Insurance Company, TD Securities, TD Bank Financial Group, TD Canada Trust, UBS Bain & Company, Booz & Co, BMO Financial group, Citigroup, CIBC, BELL, Deloitte, Energizer, Fritolay, IBM, Infosys, Johnson & Johnson, Microsoft, Kraft foods, Mount Sinai Hospital, P&G, RBC, Scotia Capital, McKinsey & Company, Bank Financial Group, Telus, BCG, WWF

AeonVirtual Inc, Air Canada, Amphenol, TAT Technologies, Averna, Bank of Montreal, Banque Nationale, BCA Research, BNC, Bombardier, CAE, Cantrex (Sears Canada), Cargill Inc, CIBC, Citigroup, City of Pointe-Claire, Clairvest, CN, Conception Focus Inc, Concordia University, CVL Cosmetics North America Inc, Free The Children, General Electric, Gildan Activewear, Hecht Heft Lamoureux, ICOM, Industrial Alliance Securities, IRCM, Just For Laughs, KPMG LLP, MedQualis, Merck & Co, Natcan Investment Management, National Bank Financial, Nikon Optical Canada, Ontario Ministry of Finance, Pepsi Beverages Canada, Pfizer Canada, Phoenix Innovation Technology, RBC, Shell Canada, Stanbic IBTC Pension Managers Ltd, TELUS Health Solutions

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SUCCESS STREET

Making skillful decisions

Effective management or people management is a skill that requires constant evolving. For strong interpersonal relations, a manager mostly relies on information. He must, however, make sure that he is relying on the correct information. Information enables a manager to devise strategies, make decisions and take action. Management is always concerned with the optimum attainment of organisational goals and objectives, with and through its people. A manager needs to manage time and resources, implement ideas and make decisions in order to accomplish a task. He is fully aware that if change is not handled properly, it can be devastating. The best managers know that they have to focus on connecting the heads, hearts and hands of people in their organization. They also know that planning is the key management function. Reshmi Majumdar

D

ecision making is the most crucial aspect of strategic management and planning. Decisions need to be made wisely under varying circumstances with enough knowledge about alternatives and consequences. As Gaurav Vyas, Marketing Manager of an IT solutions company puts it: “In today’s dynamic global market there are too many variables. In order to make the best possible strategic decision, it is mandatory to consider as many beliefs, perspectives, concepts as possible. So the quality of strategic decision depends on the diversity of ideas considered to make such a decision.” Decisions concerning the future are generally taken under three conditions: conditions of certainty, conditions of risk or conditions of uncertainty. Decisions taken under conditions of certainty are where managers have sufficient and complete information and know exactly what the outcome of their decision will be. But unfortunately, most of the time managers face a less certain environment. They may know the probabilities and possible outcomes of their decision, but there can also be an adverse outcome. Managers have to vary their approach in decision making, depending on the particular situation,

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person or people involved. “Decision making ranges from simple to complex decisions that fall along a continuum that ranges from structured to unstructured. Structured process refers to the routine and repetitive problems with standard solutions. While unstructured ones can be ‘fuzzy’ complex problems with no clear cut solutions”, says K. Thomas, employed in one of the TATA group companies. One of the most difficult steps in decision making process is to develop various alternatives. For example, if one is involved in planning a workshop, the crucial decisions are: time, format and location of the workshop. In this case, ones’ experience as well as the understanding of the clientele group greatly influences selecting the alternatives. Often decision trees can help a manager make a series of

decisions on uncertain events. “A decision tree is a device that displays graphically the various actions a manager can take and shows how those will relate to the attainment of future events” explains Swetha. R, a final year MBA student, Amity Business School. A skillful decision takes into consideration the following tenets: 1) Identify the options of decision and alternatives available at each point. 2) Understand the uncertainty and the range of alternative outcomes at each point. 3) Estimate the probabilities of different events /results of actions, costs and gains. 4) Analyse alternatives to choose the next course of action. “Due to increased fluctuation and uncertainty in the decision making environment, it is frequently necessary to conduct a sophisticated analysis to make a good decision”, said Gaurav Vyas. In a professional organisation, decision making is generally a group process. All managers must apply the principles of democratic decision-making, and only then, those involved will feel interested www.advancedge.com


SUCCESS STREET in the process. Here, the manager can become a coach knowing the mission, objectives and process, but he needs to involve those who are supposed to implement the decisions and achieve the goals. How to take wise management decisions? Here are some tips that can help a manager to consistently take wise decisions: Make sure it’s your decision to make: Sometimes the most stressful decisions of all are the ones that belong to someone else. Make sure you are the one responsible for finding a solution. Consider your alternatives: If you know your options, making decisions becomes more of a strategy and less of a stressful event. Writing them down turns those options into reality, and gives you the freedom to consider something without actually doing it. Collect more information: After gathering enough information, try to imagine the outcome of each alternative. This is a safe way to experiment without putting anything or anyone in jeopardy.

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The most common source of mistake in management decision making is the emphasis on finding the right answer rather than the right question. It is not enough to find the right answer but more important and more difficult is to make the effective course of action decided upon. Do not underestimate the value of a gut feeling: Your gut response to something should never be dismissed. Never underestimate your employees’ input: You can learn from

your employees. Later, you can filter out what’s useful and what’s not. Belittling someone’s input can be especially damaging and can result in low morale and decreased productivity. Make sure your employees know that you value their input. Do not overestimate, either: Sometimes people seem smarter than they are, or the information they’re providing. “To avoid this trap, try to obtain information from as many sources as possible. This will give you more to work with when it comes down to making wise management decisions”, advocates Satyajit Varma, Senior Manager in the Housing Development sector. Perform a cost-benefit analysis: Make sure that your decisions make good financial sense. Attaching a finance filter to your decision-making process will help you weed out alternatives that may seem wise on the surface, but not in reality. As K. Thomas puts across, “you need to add up the value of the benefits and then subtract the costs. If you’re in the red, then it’s time to start over, or at the very least, cross that particular option off your list”.

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CORPORATE WORLD Executive Suite

‘HR is more like customer service’ ….says Purav Sanghvi, Manager, Human Resources at BIGADDA (a division of Reliance Big Entertainment Limited). He has done his MBA in HR from Welingkar Institute of Management Development and Research. He has 7 years of experience in Human Resource Management, Employee Relations, Organization Development, Corporate HR Strategy, Training & Development. He has been leading the HR function at Bigadda and overseeing a gamut of HR activities. Speaking to Reshma Majithia, Mr. Sanghvi shares his views on the learning curve at B-schools and his insights on the future Human Resource trends. Tell us that impact a B-school has made on your career? Learning at B-school has contributed a lot to my growth. It has given me the basic concepts on which the entire foundation of HR relies. All laws and other theories when put into practical approach make it easy for you to chart out the next step. In HR, you always need to stay a step ahead, and it helps if you are prepared. A simpler way to explain this would be when you are counting money it helps to know the tables that you have learnt as a kid. MBA has the same effect in the corporate world. Tell us a little about your role as Head HR of BIGADDA. I look after the overall generalist HR role of BIGADDA, right from taking on board an employee, to HR strategy, budgeting and the life cycle of each and every employee. I get involved in all decisions pertaining to BIGADDA in terms of HR aspects including manpower planning, learning & development and also HR consultant management. Besides the HR budget discussed with the management at the start of the financial year, we execute the plan over the year to achieve optimum utilization of resources and be cost-effective while doing so. What is a typical day in your life at work like? My responsibility at BIGADDA is to overlook the entire gamut of HR activities. From macro activities like planning

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and strategy to ensuring their execution is what I get involved with. My typical work day is quite hectic with lots of meetings with management, teams and department heads, apart from day to day core HR responsibilities of payroll. It still is one of the best things to do as there is a lot of job satisfaction in the HR role. What are the challenges that HR faces today? HR is more like customer service. Employees come to you only when they have an issue and they expect a lot. So you have to constantly match up to their expectation. Time and again you face the challenge to engage employee with the organization at various levels. If you don’t take it up as a challenge it can get difficult for you. Honestly HR is a passion and a way of life; you have to do it with a lot of zeal as a situation never repeats itself. Every employee and his needs are different. How much importance will you give a student with an MBA in HR when hiring? Is specialization an important factor for an MBA grad? An MBA in HR is very important for a candidate who wishes to join the HR department. A specialized person who already knows the tricks of the trade is always good as you tend to spend less time in training since s/he is already aware of the nuances. Specialization makes you the master of the art. Eventually, specialists would run the show. I pay a lot of www.advancedge.com


CORPORATE WORLD

attention to hiring only specialists in teams as they bring a vast knowledge base. This applies to all streams and not HR alone. Is the HR dept a necessity in today’s world? Any organization with 30+ staffing would need the HR department to manage all different aspects of HR. The role of the HR person would vary from company to company depending on the requirements of the organization. In the absence of HR, people issues and their management would not be given priority. Also HR plays a significant role in building a culture of an organization which is critical for the health of any organization. What are the future trends that you foresee in HR? Sky is the limit of the things that the HR department can do in an organization. Over the years we have seen the Business HR model evolve. Going forth it would be strengthening the BHR module. Also connecting with employees and potential employees on social media platforms has opened a very cost effective way to attract talent. What are the skills required to become a successful HR manager? You need to be very diplomatic and tactful to be a good manager. You should be a perfect blend of Jesus and Satan. HR is the link between the organization and its employees, so think twice before you act as all your decisions would impact the organization as a whole. What message would you give to all the management aspirants reading this? Get your basics right. People and logic are the biggest factors which will drive this function. As HR personnel we would constantly need to innovate and find new ways every single day to communicate and connect with employees. You need to genuinely like people to be in this profession. Our claim to fame BIGADDA.com, is the flagship ecommerce arm of Reliance Group,

A++* rated B-School in the Country * Source: Business India B-School Survey 2011

One of the largest integrated B-School campus with single programme focus Multi-cultural residential student body, active with over 12 Clubs and opporotunities to participate and compete in dozens of in-campus, inter bSchool and industry events and competitions Highly respected in Indian management fraternity - networking with CII. ASSOCHAM, FICCI, NHRD, RAI, ISTD, IHRD etc fructified in conduct of International Seminars and Research Projects.

IBA & Eminent Personalities

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courtesy:google

CORPORATE WORLD Business Analysis

India Inflation and Challenges With the Finance Ministers of the Group of 20 nations (G20) and the International Monetary Fund (IMF) fighting the European Union (EU) crisis, the economic condition in emerging economies like India are worsening day by day. Inflation is soaring with the Central Banks unable to contain the same. Stock markets are dropping and demand conditions in the industry are slowing down the country’s economic growth. Dr Suresh Srinivasan

T

he strength and resilience of the Indian banking system, which is at the heart of the country’s economic health, is being questioned by international bodies. All of these developments are extremely worrying as this could spin the country down into another period of economic slow down. Consequently, the target for India to achieve a double digit Gross Domestic Product (GDP) growth will have to wait at least for another two to three years! India Inflation Challenge Although the trend shows that inflation is reducing, it is still at very high levels; Wholesale price index based inflation (WPI) has reduced to 9.6% in October from

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9.7% in September. The increase in interest rates to contain liquidity, and thereby control inflation, does not seem to have effectively worked, as envisaged by the RBI. Supply side constraints, i.e. non-availability of adequate commodities on shelf for the consumers seem to have been the cause for the elevated price levels of commodities, especially food prices. Global ‘demandsupply’ conditions have also been responsible for the increase in food prices. Food inflation has been reducing but still rules at close to 12% of the overall inflation. Vegetables and pulses were primary drivers in the high food price inflation. Vegetables got 25% dearer as compared to the corresponding period during

the pervious year; pulses rose by 13%, fruits 12% and milk 12% more expensive as compared to the last year. But it is interesting to point out that although food inflation is high, average consumers are not that affected because food now constitutes a declining portion of an average consumer’s expenditure; the share of food in consumption has declined to 29% from 41%, a decade ago. Hence an average Indian consumer is now more worried about inflation not because it increases his monthly expenses, but more so because it negatively impacts growth in the economy. Inflation of non-food items currently stands at more than 6%, while fuel and energy inflation stood at close to 15%. Over the last decade the Indian consumerism is www.advancedge.com


CORPORATE WORLD

Although food inflation is high, average consumers are not that affected because food now constitutes a declining portion of an average consumer’s expenditure. also largely driven by higher level of loan-financed expenditure rather than such spending coming out of savings. Hence the resultant increase in interest rates, as a fall out of RBI’s monetary policy tightening, dents the consumer spending and thereby reduces growth in the economy. Practically, the government seems to have used everything it has in its arsenal, monetary policy and fiscal policy as well as focused efforts to ease supply side constraints, but it has been unable to gain control over inflation. What are its implications?

Economic growth and interest rates Economic growth has been the first casualty of elevated inflation levels. Hyper inflation and a persistent regime of Reserve Bank of India (RBI) increasing interest rates over the last two years by effecting 13 rounds of interest rate hikes, a net of 3.5% increase, has already dented the growth in the economy. RBI now expects the economy to grow only by 7.6% during 2011-12, which again is considered very optimistic by many analysts. Other implications of elevated inflation levels are clearly evident. Apart from high interest rates, which is a direct result of increased levels of inflation, elevated fuel price resulting from high global crude price, have dented the overall economic growth in many ways. India’s September 2011 industrial output grew at its slowest pace in two years. The slowdown is more or less evident across a wide range of sectors. Car sales have been drastically impacted due to lower off take and demand mainly driven by higher interest rates and marginally due to increasing fuel costs. The domestic airline industry has also been impacted; Kingfisher has cancelled a number of flights; more than hundred pilots have left the airline, unpaid creditors for fuel and airport authority have

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CORPORATE WORLD Business Analysis

courtesy:google

virtually brought the airline to a stand still. Banks are refusing to extend further loans to the airline. With all of this, Kingfisher’s viability is being questioned and the airline is virtually bankrupt. Kingfisher is typically a victim of low demand, high input costs and mismanagement. Emerging economies around the world are cutting interest rates to spur growth; it seems that RBI may have to follow suit and especially with growth seriously impacted, cutting interest rates may become inevitable, even if inflation does not completely come under control. As a direct fall out of lower industrial production and reduced global demand, India’s exports for the month of October 2011 have reduced, resulting in a higher trade deficit, at a four year high of $19.6 billion. Full year projections indicate trade deficits in excess of $150 billion. Reduced demand is also

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likely to cause the country to miss its fiscal deficit targets for March 2012 which has been budgeted at 4.6% of the GDP. The expected fiscal deficit now will be in excess of 5.0%. Downgrade by credit rating agencies One of the direct implications of reduced demand in the economy is the increase in defaults to the banks by borrowers, especially when demand conditions are not conducive, the ‘non performing assets (NPA)”, i.e., the loans which are not collectible tend to increase. The NPA levels have started showing an upward trend with even stable banks like State Bank of India declaring higher NPA levels. Moody’s, the global rating agency, recently downgraded the outlook for the Indian banking system on concerns of the trend pointing to a higher level of NPA; likely to move up from 2.5% to 3.0% by the year end.

What other challenges does the Indian government need to fight? Governance deficit, the inability of the government to make policies and bring about reforms are major concerns. The Indian government has virtually come to a stand still, especially with issues cropping up from the opposition, civil society and other agencies like the Comptroller and Auditors General (CAG) and Central Bureau of Investigation (CBI) as regards various corruption cases. It has been more in a defensive mode, rather than aggressively bringing about policy reforms. Reliance Chairman, Mukesh Ambani had opined that the government needs to execute decisions more efficiently, making the point that there is a ‘speed mismatch’ between the government and the private sector in achieving goals. A similar message was sent by Azim Premji of Wipro who warned that if the government remains inactive, growth would suffer. Many other industrialists like Keshub Mahindra and Deepak Parekh of HDFC bank shared similar views. Recently the Indian government increased fuel prices by Rs. 1.8 per litre. The Prime Minister also indicated that the fuel prices may have to be hiked again if international oil prices escalate further. However, the Oil companies, going against the government stand, slashed petrol price at pumps by Rs.1.85 per litre. Notwithstanding, the tug-of-war between the oil companies and the government, the depreciating rupee is likely to force a rise in fuel prices in the near future. All said, inflation is the single largest factor hindering India’s economic growth! Dr Suresh Srinivasan is a Chartered Accountant, Cost Accountant, MBA (Bradford Business School, UK) and PhD (in Corporate Strategy from IIT Madras). He has held senior positions in leading multinational corporations both in India and abroad for over 20 years. As a management consultant, he currently works closely with a number of domestic and multinational corporations in the areas of Strategy and Finance. www.advancedge.com


CORPORATE WORLD

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CORPORATE WORLD Business Analysis

Global Currency Challenges With the global economy severely impacted by the slowdown arising from the European uncertainty, the exchange rates between major global currencies have taken centre stage. The global trade is currently more or less structured with emerging economies like China being large exporters and developed economies being importers, with the balance of trade being in favour of the emerging economies. With strong export revenue far exceeding imports, and with a positive trade deficit, currencies of emerging economies are supposed to exhibit a strengthening trend against the currencies of the developed economies, which are struggling to grow and are marred with trade deficits. Dr Suresh Srinivasan

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complicate the position? How are economies responding to such a scenario? The Japanese Yen The strengthening of the Japanese Yen against global currencies is a major problem for Japan. The Japanese Yen has over the last twenty and odd years shown a tendency to steadily strengthen against the US$; it has strengthened by more than 50% over the last five years alone. The strong Yen has always remained a problem for Japan as it is primarily an export oriented economy. But the strong yen is also argued to be beneficial to the country, as an equally large component of Japan’s GDP stems out of domestic consumption. With large scale domestic consumption, imports into the country become favourable when the currency appreciates against other global currencies. Over the last few months, the Japanese Yen breached the 78 Yen level and strengthened to 76 Yen a US$ which has raised alarm bells with the Japanese Central Bank and the Bank of Japan (BoJ). The bank recently sold close to 7.7 trillion Yen in the open market in order to arrest its strengthening trend. Japan’s efforts to weaken the Yen are a desperate attempt to save its export industry. A couple of months ago the Bank of Japan sold close to 4.0 trillion Yen to arrest further strengthening of the Yen. In the past Japan has spent trillions of Yen on many occasions in order

to arrest its strengthening trend. Another shortcoming of a strong Yen is the ability of overseas companies to effortlessly ‘take over’ Japanese companies which could fall prey to overseas acquirers as soft targets. The Chinese Yuan The artificially manipulated exchange rate of China is a major problem faced by its trade partners, especially the United States (US). It is well known that the Chinese Yuan is artificially manipulated to keep it weak so that its products become internationally competitive. The estimate of the extent of such under valuation ranges from 7% to as high as 30%, which shows the extent of Chinese manipulation. The international community, especially the US, has been constantly exerting pressure on China to allow its currency to strengthen in line

courtesy:sxc.hu

W

ith many of the emerging economies being export driven, if their currency strengthens against their global counterparts, their products become less competitive in the international markets. Hence, there is a tendency for the respective Central Banks of emerging economies to intervene in the currency markets, allowing their currency to weaken and thereby positioning their products more competitively. The problem is that countries have their independent regulations, i.e., whether their currency is fixed or floating, with very few international regulations that govern the strength of their respective currencies vis-à-vis other major global currencies. At the most, international organizations like the International Monetary Fund (IMF) and government to government negotiations can exert marginal pressure. In such a position, many countries have a tendency to manipulate the exchange rate in favour of their own currency. The only thing that varies between countries is the degree of such manipulation. IMF chief Christine Lagarde has requested the Central Banks of the emerging markets not to unduly manipulate their currencies and allow their currencies to naturally appreciate based on the demand – supply scenario. So, what are the implications of such a currency backdrop? Does a period of economic uncertainty

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Business Analysis CORPORATE WORLD with the market forces, but China has not given in to the Western pressure. US also directly holds China responsible for the high unemployment rate in the US. However, with the US and European Union (EU) bargaining power decreasing due to the EU crisis, China had intended to take this opportunity to negotiate in its favour. China recently offered to support EU and contribute to their ‘bail out fund’, provided China is offered more say in the IMF decision making body. Further, China wanted IMF to fast track inclusion of the Chinese Yuan as a part of IMF’s special drawing rights (SDR) currency unit. SDR’s are Special Drawing Powers, being foreign exchange reserves maintained by IMF and these are held only in certain specific major currencies of the world; the US$, Euro, Yen and the UK Pound, including the Yuan in the SDR are important to China because Yuan could become a more prominent currency in the global arena. Further, China is currently not recognized as a ‘market economy’ by EU and the US; this means it is widely recognized that China indulges in subsidizing exporters in making its products competitive in developed markets. However, the EU nations politely refused to yield to China’s request as they believe that their own powers in the IMF could be curtailed, if China gains entry. Based on current estimates, it seems that Chinese Yuan inclusion as a part of the SDR is unlikely to happen any time before 2015. The Indian Rupee The Indian Rupee has been one of the worst hit victims of this global slowdown. Indian exports have seriously weakened. Contrarily, imports have been much higher, resulting in a trade deficit which has exerted significant pressure on the exchange rate of the Indian Rupee. The foreign institutional investors (FII) had a history of moving in large funds into the Indian stock markets. This has also dried up of late, due to the global liquidity constraints. Foreign Direct Investment (FDI) into India has also been on the decline; FDI has declined by more than 15% in September 2011. On balance, very little foreign currency is coming into the country, which is a major concern for an economy like India that is targeting to grow at 10% plus, for the next few decades. Primarily, lack of reforms, bureaucratic delays in approving projects, lack of minimum infrastructure, governance deficit and poor investor confidence in India are some of the reasons foreign investors hesitate to direct more FDI investments into the country. Primarily two factors have driven higher demand for the US$; the Indian oil marketing companies importing crude and the demand for US$ for importing gold during the festive season. Such a demand for the US$, increases its value against the Indian rupee and thus the rupee starts depreciating in value. With no signs of resolution for the EU problem, it is expected that the global uncertainties would prevail. The Indian rupee is assessed to touch the Rs.53-54 a US$ mark in the short term. Although software companies, having overseas revenue to the extent of 85% to 90% would benefit but imports into the country have already become expensive. Especially since over 70% of India’s crude oil requirement is imported, it is bound to have a negative impact on the inflation. www.advancedge.com

Advanc’edge MBA December 2011

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CORPORATE WORLD Business Analysis Corrigendum

In the Advanc’edge issue of Nov 2011, we missed carrying 2 figures in the article “Demystifying Gold Price movements” by Dr. Suresh Srinivasan. The figures are below.

Economic Indicators

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Advanc’edge MBA December 2011

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Business Analysis CORPORATE WORLD

Economic Indicators

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WORLD VIEW

The European Union Crisis The last six months looked a little brighter, with economies across the globe, developed and developing, showing signs of growth. Even the third quarter statistics from the United States (US) was a bit encouraging. Then came the shock from the Euro Zone. In the last couple of months, crisis after crisis developed which have had a deep impact on not only the Euro Zone and its financial systems but globally, as well. What has been triggered off is a situation of global uncertainty.

Dr Suresh Srinivasan

I

Greece and Italy The European Union has been fighting for survival in the recent months. Wealthy European nations like Germany and France have poured tons of monies to save countries like Greece, Portugal and Ireland from bankruptcy. However, these are very small countries, accounting for close to 5% of the total Euro Zone economic size. But with Italy, the third largest economy in the Euro Zone, also coming under crisis, the problem has escalated to the next level as it singly amounts to more than 15% of the total Euro Zone size. Italy has debts of close to $3 trillion. Most of this is

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The crisis has forced George Papandreou to relinquish his post as the Greek Prime Minister

coming up for repayment within the next five years, but the country would not be able to honour the same. Given such a situation, the governments in both Greece and Italy have collapsed and a new team has taken over recently. Both Greece and Italy positioned economists, rather than politicians, to turnaround their countries, as it is the politicians who are responsible for the mounting pile of debts that has put their nations into such a situation.

courtesy:AP

t is almost certain that the seventeen nation European Union countries and the United Kingdom are in the process of slipping into a phase of recession. More worrying are the developments that are likely to threaten the very integrity of the European Union itself. Serious questions are being raised if this union can viably function in the future. Organisations like the International Monetary Fund (IMF) and the Group of 20 Nations (G20) have warned that this could quickly cascade into an unprecedented liquidity crisis leading to a global financial meltdown.

Greece The basic problem with countries like Italy and Greece is their excessive loans. Total debt of Greece is more than 160% of its Gross Domestic product (GDP) and is expected to soon double its GDP; this is like a salaried person taking loans over loans which one fine day stand accumulated to twice his annual salary. If his salary is, say, Rs.10 lakhs per annum and his loans accumulate to Rs.20 lakhs, which means the interest accumulating www.advancedge.com


courtesy:AP

WORLD VIEW

month over month exceed his repayments and thereby the loan amount only keeps on increasing. There are only two solutions to this problem: either the person gets a new job, increases his annual salary and thereby be in a more comfortable position to pay back the loans, or the bank waives off a part of the loan and thereby the borrower is able to repay the reduced amount of loan. This is exactly the problem which the European Union is trying to fix: firstly countries like Italy and France are trying to become more productive, increase revenue and gross domestic product, take decisions and reduce excessive unproductive expenditure so that they are in a better position to pay back and reduce the level of loans. Secondly, financially strong countries like Germany and France are extending support by requesting banks to partially waive the loans, so that these countries don’t go bankrupt, but rather they develop the financial discipline to become financially strong and develop capabilities to repay their loans. Towards this objective, the Greek Parliament agreed to some politically tough measures including reducing the number of government employees and reducing their pensions. In order to make these politically unpopular decisions, former European Central Bank head, Papademos, has been sworn in as the new Prime Minister. www.advancedge.com

His mandate is to pull the country out of bankruptcy and make it financially self-disciplined: a horrendous task by any standard. Italy Italy’s debt at close to $3,000 billion is almost six times that of Greece; the magnitude of the problem with Italy is also equally bigger. The European Union which swiftly came in and helped Greece out of bankruptcy, is not going to find the task of pulling Italy out of bankruptcy so easy. For example, the total size of the bail out fund that has been created by the wealthy European Nations, European Financial Stability Facility (EFSF), is only close to $600 billion and given Italy’s debt size, it is a pittance. The Italian government and its people need to find a way to come out of this mammoth problem, or else it will pull down the Euro Zone as well as the Global financial system. Italy’s total debt is at 120% of GDP. It has already come to a situation where Italy must pay a high interest rate of more than 6.6% to borrow money from international markets; this has been the highest since the introduction of the euro more than a decade ago. In order to bring about the turnaround and take financially tough, but right decisions, a new President has been sworn in: Mario Monti, a former member of the European Commission and a seasoned economist.

Role of Emerging Economies Impact of the EU uncertainty is making its impact into the Asian economies; demand conditions in emerging markets like India have shown a significant dip over the last two quarters. The first of the few sectors to feel the impact is always the airline industry. Jet Airways dipped into losses of more than Rs.700 crore, as compared with profit a year ago, primarily driven by reduced demand, lower occupancy, rising fuel prices and the weakening Indian rupee. Even airlines like Spicejet which have posted profits in the earlier quarters reported a loss in the second quarter of the current fiscal. Kingfisher has been the worst affected. Being India’s secondlargest private airline, Kingfisher is now on the verge of bankruptcy. It is for certain that if strains in Europe worsen, Asia would be negatively affected through trade and financial sector linkages. It is now agreed that the crisis in Europe remains the central challenge to global growth and hence the developed economies are expecting fast growing emerging economies like China and India to support the European economies, financially, in pulling them out of this deep crisis. The IMF have urged countries like China to liberally contribute to bail out the European nations. India has also said that it will wait and watch and if it comes to it, it would contribute to the bail out fund, safeguarding its own interest in terms of future growth. More challenges await the emerging nations. For sure, the size of the European bailout fund, EFSF, needs to be boosted by contributions from other emerging economies like China and India if only in their own interests. Dr Suresh Srinivasan is a Chartered Accountant, Cost Accountant, MBA (Bradford Business School, UK) and PhD (in Corporate Strategy from IIT Madras). He has held senior positions in leading multinational corporations both in India and abroad for over 20 years. As a management consultant, he currently works closely with a number of domestic and multinational corporations in the areas of Strategy and Finance. Advanc’edge MBA December 2011

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WORLD VIEW

EURO TANGLE:

E

Who owes whom what

urope is struggling to find a way out of the eurozone crisis amid mounting debts, stalling growth and widespread market jitters. After Greece, Ireland, and Portugal were forced to seek bail-outs, Italy - approaching an unaffordable cost of borrowing - has been the latest focus of concern. But, with global financial systems so interconnected, this is not just a eurozone

problem and the repercussions extend beyond its borders. While lending between nations presents little problem during boom years, when a country can no longer handle its debts, those overseas banks and financial institutions that lent it money are exposed to losses. This could not only unsettle the home country of those banks, but could, in turn, spread the

troubles across the world. So, in the tangled web of inter-country lending, who owes what to whom? Here is a table of major players involved in the current crisis and a description of what they owe to banks in other countries, as well to find out their total foreign debt, including that owed by governments, monetary authorities, banks and companies.

GERMANY: €15.9 bn; Italy: €2.8 bn;

received a bail-out. Although the Greek economy is small and direct damage of it defaulting on its debts might be absorbed by the eurozone, the big fear is “contagion” - or that a Greek default could trigger a financial catastrophe for other, much bigger economies, such as Italy.

Malav Parekh

GREECE GDP: €0.2 tn Foreign debt: €0.4 tn Creditors UK: €9.4 bn US: €6.2 bn; France: €41.4 bn; Portugal: 7.5 bn

Foreign debt per person €38,073 Foreign debt to GDP 252% Govt debt to GDP 166% Risk Status: HIGH Greece is heavily indebted to eurozone countries and is one of three eurozone countries to have

US

courtesy:google

Creditors FRANCE: €440.2 bn; SPAIN: €170.5 bn; JAPAN: €835.2 bn; GERMANY: €414.5 bn; UK: €834.5 bn Foreign debt per person €35,156 Foreign debt to GDP 101% Govt debt to GDP 100% Risk Status: LOW Although the US’s overseas debt almost equates to its annual GDP, it is still regarded as a safe bet. However, its credit rating has been downgraded. Although Asia primarily China and Japan - holds the majority of US debt, Europe has the second largest percentage. This means whatever happens in the eurozone will have a deep impact on the US banking system. Within Europe, the UK, Switzerland and France hold the largest amount of US debt, amounting to hundreds of billions of dollars.

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UK

GDP: €1.7 tn; Foreign debt: €7.3 tn Creditors FRANCE: €209.9 bn; SPAIN: €316.6 bn; Ireland: € 113.5 bn JAPAN: €122.7 bn; GERMANY: €379.3 bn; US: €578.6 bn

Foreign debt per person €117,580 Foreign debt to GDP 436% Govt debt to GDP 81% Risk Status: LOW

courtesy:google

GDP: €10.8 tn Foreign debt: €10.9 tn

French President Nicholas Sarkozy with German Chancellor Angela Merkel

The UK has very large amounts of overseas debt, of which the biggest component is the banking industry. The high debt to GDP ratio is explained by the UK’s active financial sector, where there is a great deal of capital movement. This level of overall external debt is generally not seen as a problem because the UK also holds high-value assets. Having said this, the UK economy is highly exposed to Irish as well as Italian and Portuguese debt. The UK in turn owes hundreds of billions to Germany and Spain.

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WORLD VIEW FRANCE

PORTUGAL

GDP: €1.8 tn Foreign debt: €4.2 tn

GDP: €0.2 tn Foreign debt: €0.4 tn

Creditors UK: €227 bn US: €202.1 bn; Italy: €37.6 bn; JAPAN: €79.8 bn; GERMANY: €123.5 bn; Foreign debt per person €66,508 Foreign debt to GDP 235% Govt debt to GDP 87% Risk Status: MEDIUM Europe’s second biggest economy is greatly exposed to the eurozone’s troubled debtors. Its banks hold large amounts of Greek, Italian and Spanish debt. This is causing market turbulence, especially against a backdrop of faltering French growth and low consumer spending.

SPAIN GDP: €0.7 tn Foreign debt: €1.9 tn Creditors UK: €74.9 bn US: €49.6 bn; France: €112 bn; Portugal: 19.7 bn Italy: 22.3 bn JAPAN: €20 bn; GERMANY: €131.7 bn; Foreign debt per person €41,366 Foreign debt to GDP 284% Govt debt to GDP 67% Risk Status: MEDIUM Spain’s number one worry is bailedout Portugal, which is indebted to it by billions of euros. Spain itself owes large amounts to Germany and France. As the country attempts to get its debts under control, there are fears the country could be thrown back into recession after November’s parliamentary elections, after which a wave of spending cuts and economic reforms are likely. The bursting of a housing and construction boom in 2008 had plunged Spain’s economy into a recession that was deeper than in many other European countries www.advancedge.com

Creditors UK: €18.9 bn US: €3.9 bn; France: €19.1 bn; Spain: 65.7 bn Italy: 2.9 bn GERMANY: €26.6 bn; Foreign debt per person €38,081 Foreign debt to GDP 251%

ITALY GDP: €1.2 tn Foreign debt: €2 tn Creditors UK: €54.7 bn US: €34.8 bn; France: €309 bn; Spain: 29.5 bn Japan: 32.8 bn GERMANY: €120 bn; Foreign debt per person €32,875

IRELAND

Govt debt to GDP 106% Risk Status: HIGH Portugal, the third eurozone country to need a bail-out, is in deep recession. It is currently implementing a series of austerity measures as well as planning a series of privatisations to fix its shaky finances and reduce its debt burden. The country is highly indebted to Spain, and its banks are owed 7.5bn euros by Greece. Foreign debt to GDP 163% Govt debt to GDP 121% Risk Status: HIGH Italy has a large amount of debt, but it is a relatively wealthy country compared with Greece and Portugal. However, doubt about Italy’s leadership and fears that its debt load could grow more quickly than the Italian economy’s capacity to support it have left the markets jittery. France is most exposed to Italian debt.

Foreign debt per person €390,969 Foreign debt to GDP 1,093% Govt debt to GDP 109% Risk Status: HIGH

One of three eurozone countries to so far receive a bail-out, Ireland has introduced a series of tough austerity budgets. Its economy is now showing a modest recovery. After the boom years leading up to 2008, the country fell into recession as a result of the global credit squeeze, which ended the supply of cheap credit that had fuelled the unsustainable growth in its housing market. It shows a very high level of gross foreign debt to GDP because, although it is a small country, it has a large financial sector. The UK is Ireland’s biggest creditor.

GERMANY

Risk Status: LOW

GDP: €0.2 tn Foreign debt: €1.7 tn Creditors UK: €104.5 bn US: €39.8 bn; France: €23.8 bn; Japan: 15.4 bn GERMANY: €82 bn;

GDP: €2.4 tn Foreign debt: €4.2 tn Creditors UK: €141.1 bn US: €174.4 bn; France: €205.8 bn; Italy: 207.7 bn Japan: €108.3 bn; Foreign debt per person €50,659 Foreign debt to GDP 176% Govt debt to GDP 83%

The biggest European economy is exposed to Greek, Irish and Portuguese, but mostly, Spanish debt. If any of these defaults, Germany will be hit. Its economy is slowing, mainly because of the problems plaguing its eurozone partners. And as Europe’s industrial powerhouse, any problems in Germany mean more problems for the eurozone, but also for the wider international system. Source:international monetary fund

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WORLD VIEW

Rich Greek Poor Greek In the drama regarding the possible bankruptcy of the Greek state, the entire world has dubbed the tiny historic country as the villain. The single-currency model of Euro is under serious threat, and Greece has been made the fall guy, or nation to be more precise. Malav Parekh

F

unsustainable, and taxes in a contracting economy are no longer enough to pay the bills. The country’s biggest source of revenue is tourism. And its world class public transport is its backbone. But in the closer study of the same public transport we can find the problem. Even on a stiflingly hot summer’s day, the Athens underground is a pleasure. It is air-conditioned, with plasma screens to entertain passengers relaxing in cool, cavernous departure halls - and the trains even run on time. There is another bonus for users of this state-of-the-art rapid transport system: it is, in effect, free for the five million people of the Greek capital. With no barriers to prevent free entry or exit to this impressive tube network, the good citizens of Athens are instead asked to ‘validate’ their tickets at honesty machines before boarding. Few bother.

courtesy:wikipedia

irst thing first, this article is in no way an attempt to portray that the Greeks are victims of a witch hunt orchestrated to blame someone for the European mess. They are, to an extent, responsible for the Euro crisis that now threatens to send the world into a deep depression. But are they the villain-in-chief? I am not too sure. So what went so wrong with Greece? The most common argument to explain the Greece’s current state of affairs is that in 1999, its conservative government cooked the books to join the euro. The corrupt government then got used to spending a LOT of money. When times were good, it wasn’t a problem — banks and other investors were willing to lend them money on the cheap and their public sectors became bloated. When the financial crisis hit, however, problems came to a head. Debt levels in Greece became

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Indeed, as well as not paying for their metro tickets, the people of Greece barely paid a penny of the underground’s £1.5 billion cost — a ‘gift’ from European Union members (and, therefore, the EU taxpayer) to help the country put on an impressive 2004 Olympics free of the city’s notorious traffic jams. The transport perks are not confined to the customers. Incredibly, the average salary on Greece’s railways is £60,000, which includes cleaners and track workers - treble the earnings of the average private sector employee here. The overground rail network is as big a racket as the EU-funded underground. While its annual income is only £80 million from ticket sales, the wage bill is more than £500m a year — prompting one Greek politician to famously remark that it would be cheaper to put all the commuters into private taxis. “We have a railroad company which is bankrupt beyond comprehension,” says Stefans Manos, a former Greek finance minister. “And yet, there isn’t a single private company in Greece with that kind of average pay.” Significantly, since entering Europe as part of an ill-fated dream by politicians of creating a European super-state, the wage bill of the Greek public sector has doubled in a decade. At the same time, perks and fiddles reminiscent of Britain in the union-controlled 1970s have flourished. Ridiculously, Greek pastry chefs, radio announcers, hairdressers and masseurs in steam baths are among more than 600 professions allowed www.advancedge.com


CORPORATE WORLD

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Advanc’edge MBA December 2011

51


WORLD VIEW banks, prompting one economist to describe Greece as a ‘poor country full of rich people’. Manipulating a corrupt tax system, many of the residents simply say that they earn below the basic tax threshold of around £10,000 a year, even though they own boats, second homes on Greek islands and properties overseas. Even more incredibly, Greek shipping magnates — the king of kings among the wealthy of Kifissia — are automatically exempt from tax, supposedly on account of the great benefits they bring the country. Yet the shipyards are empty; once employing 15,000, they now have less than 500 to service the once-mighty Greek shipping lines which, like the rest of the country, are in terminal decline. Officially, just over 300 Kifissia residents admitted to having a pool. The true figure is believed to be 20,000. There is even a boom in sales of tarpaulins to cover pools and make them invisible to the aerial tax inspectors. But they are still angels compared to their Italian and Portuguese counterparts. And according to a report by a German economic historian, it is the Eurozone, particularly Germany, that owes Greece over $100 billion which is twice the country total debt. In Greek’s defence, one argument has resurfaced with increasing frequency: the widespread damage inflicted by the Nazi regime during World War II means that Germany still owes Greece major wartime reparations. The claims for payment of damages are based on very real facts. Without having been provoked, the Nazi forces took over both Greece and Yugoslavia on April 6, 1941. In both countries, German soldiers set up a brutal occupation regime. As was usually the

courtesy:AP

to retire at 50 (with a state pension of 95 per cent of their last working year’s earnings) — on account of the ‘arduous and perilous’ nature of their work. The Greek governments have for many years done their damndest to deny their country the dues they owe it. Take a short trip on the metro to the city’s cooler northern suburbs, and you will find an enclave of staggering opulence. Here, in the suburb of Kifissia, amid clean, tree-lined streets full of designer boutiques and car showrooms selling luxury marques such as Porsche and Ferrari, live some of the richest men and women in the world. With its streets paved with marble, and dotted with charming parks and cafes, this suburb is home to shipping tycoons such as Spiros Latsis, a billionaire and friend of Prince Charles, as well as countless other wealthy industrialists and politicians. One of the reasons they are so rich is that rather than paying millions in tax to the Greek state, as they rightfully should, many of these residents are living entirely tax-free. Along street after street of opulent mansions and villas, surrounded by high walls and with their own pools, most of the millionaires living here are, officially, virtually paupers. How so? Simple: they are allowed to state their own earnings for tax purposes, figures which are rarely challenged. And rich Greeks take full advantage. Astonishingly, only 5,000 people in a country of 12 million admit to earning more than £90,000 a year — a salary that would not be enough to buy a garden shed in Kifissia. Yet studies have shown that more than 60,000 Greek homes each have investments worth more than £1m, let alone unknown quantities in overseas

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case in European nations invaded by the Germans, the high cost of the occupation was borne by the occupied country — and the Greek economy was plundered through forced exports. This resulted in galloping inflation and a radically lower standard of living for Greeks. Additionally, the Third Reich forced the Greek National Bank to lend Hitler’s Germany 476 million reichsmarks interest-free. After Germany’s surrender, the Allied powers organized the Paris Conference on Reparations in the fall of 1945. Greece laid claim to $10 billion, or half the total amount of $20 billion the Soviets suggested that Germany pay. The suffering caused to Greece by the Nazis is undeniable. Yet at the same time, human suffering cannot really be measured. Independent historians unanimously agree that the total economically measurable damages suffered by Greece as a result of the German occupation, in both absolute numbers as well as proportionate to the population, put Greece in fourth place after Poland, the Soviet Union and Yugoslavia. At the Paris Conference on Reparations, Greece was finally accorded 4.5% in material German reparation and 2.7% in other forms of reparations. Practically, this meant that Greece received mainly material goods — like machines made in West Germany — worth approximately $25 million, which in today’s money amounts to as much as $2.7 billion. Also the 476 million reichsmarks lent against its will to Germany by the Greek National Bank during the war. If this were to be considered a form of war damage, then in principle it would be subject to reparation — except that according to the 1990 treaty, Germany would not have to pay it. If the money were, however, to be considered a normal credit, then Greece would be entitled to get the money back. Without interest, the amount in today’s money would amount to $14 billion. With interest at 3% over 66 years, that would come to at least $95 billion. The problem is this: even partial recognition of such a debt would create a precedent that could bring untold claims in its wake. But before we crucify the Greeks for the current crisis, we need to take a look at history. www.advancedge.com


STUDY HOUR

WORD DOSE Reshma Majithia

Children of a lesser God Poverty is a common predicament afflicting not only underdeveloped countries, but developed nations too. This stigma has continued to mushroom by the day. Children are trafficked every year across borders and within their own countries. They are abducted, vanquished, trounced and made to beg or work in factories in exchange for a trifle. The quandary faced by the girl child is even more precarious as she is often subjugated, and subjected to recurrent physical abuse.

The most atrocious thing is that maundering politicians who claim to do a lot for these kids, do zilch and employ juveniles for menial tasks. This is diabolical and cruel. It is a heinous offence and should be instantaneously controlled.

Child exploitation is the biggest problem and is increasing at a disquieting rate in India, and I believe it is up to each one of us to take stock of the situation and exterminate this menace irreversibly.

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Advanc’edge MBA December 2011

63


STUDY HOUR Word Dose

WORD MEANINGS Children of a lesser

Predicament: (N)

Stigma: (N)

Mushroom: (V)

God: (Idiom)

(pred-i-kuh-muhnt)

(stig-mah)

(muhsh-room)

people who are in a

an uncomfortable,

a mark of disgrace

to spread, grow,

situation where they

difficult situation

or infamy

or develop quickly

Vanquish: (V)

Trounce: (V)

Trifle: (N)

are not treated as well as others, less fortunate

Traffick: (V) (traf-ik)

(vang-kwish)

(trouns)

(trahy-fuhl)

something illegal for eg:

subjugate, suppress,

to beat severely;

of little importance,

child trafficking, drug

crush, quell

thrash

very insignificant

trafficking, buy and sell

amounts

illegally

Quandary: (N)

Precarious: (Adj)

Subjugate: (V)

(kwon-duh-ree)

(pri-kair-ee-uhs)

(suhb-juh-geyt)

(uh-troh-shuhs)

a state of perplexity

exposed to danger;

to overpower

extremely or shockingly

or uncertainty,

dangerous; perilous;

a dilemma

risky

Maundering: (V)

Zilch: (N)

wicked, cruel, or brutal

Juvenile: (N)

Diabolical: (Adj)

(mawn-der-ing)

(slang)

(joo-vuh-nahyl)

(dahy-uh-bol-ik-al)

to talk in a rambling,

zero; nothing

young; youthful,

having the qualities

immature; childish

of a devil, outrageously

foolish, or meaningless way

64

Atrocious: (Adj)

wicked

Heinous: (Adj)

Disquieting: (Adj)

Take stock: (Idiom)

Exterminate: (V)

(hey-nuhs)

(dis-kwahy-i-ting)

to examine a situation

(ik-stur-muh-neyt)

hateful; odious;

inducing feelings of

carefully

to destroy, to root out

abominable; totally

anxiety or worry,

reprehensible

uneasiness

Advanc’edge MBA December 2011

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STUDY HOUR

Reshma Majithia 1. Which of the following countries signed several agreements with Nepal, aimed at boosting infrastructure development in the landlocked mountainous country? a. China b. India c. Germany d. Switzerland 2. The Indira Gandhi Award for National Integration for the year 2010 was awarded to __________ for his yeoman work in promoting and preserving the spirit of national integration in the country. a. J S Bandukwala b. Ram Puniyani c. Shyam Benegal d. Dr Mohan Dharia

c. 2014 d. 2015

6. South Korea’s second-largest mobile operator is in talks to buy a 20-per cent stake in South African group Telkom for about $600 million. Name the mobile operator? a. KT Corp b. SK Telecom c. LG Telecom d. Kbiz 7. Who has been appointed the new UK defence secretary? a. Bob Ainsworth b. Liam Fox c. Philip Hammond d. John Hutton

8. Who was recently awarded the 2011 Economist Innovation Award for Energy and the Environment in recognition of his pioneering work producing affordable electric vehicles a. Herbert Boyer b. Chetan Maini c. Stanley Cohen d. Larry Page 9. The chairman of the world’s largest steelmaking company is all to acquire Ophir Energy Plc, the Africa focused UKlisted oil explorer Dominion Petroleum Ltd., for £118 million ($186 million) in stock to expand in Kenya and Tanzania. Name him

3. Who has been granted the honorary rank of Lt Col in the Territorial Army for his contribution in the field of cricket? a. Mahendra Singh Dhoni b. Sachin Tendulkar c. Ravi Shastri d. Kapil Dev 4. The Walt Disney Company has acquired all the equity in UTV’s Indiagames for ___________. Indiagames is a leading developer and publisher of mobile and online games. a. $ 70-90 million b. $ 50- 60 million c. $80-100 million d. $ 45-50 million 5. India and Indonesia have agreed to intensify efforts to explore ways and means of increasing trade and investment relations by eliminating trade barriers and creating better business environment. The two countries also set a bilateral trade target of $25 billion by a. 2018 b. 2020 www.advancedge.com

How to Play Fill in the grid so that every horizontal row, every vertical column and every 3x3 box contains the digits 1-9, without repeating the numbers in the same row, column or box. You can’t change the digits already given in the grid. Every puzzle has one solution. Hint: Don’t fill in numbers at random. While filling a particular square, write numbers 1-9 on a pad and start eliminating those numbers that already appear in the same row, column or 3x3 box. Advanc’edge MBA December 2011

65


STUDY HOUR

a. Malay Mukherjee b. K V Krishnamurthy c. S N Ruia d. Lakshmi Mittal

10. He was an Indian lyricist, musician, singer and film-maker. His songs were infused with humanity and universalism, and have been sung in many languages. Known for writing strong lyrics with themes of communal amity, universal justice and empathy, his songs have become popular among all sections of ethnic and religious communities. He passed way on November 5, 2011. Name him a. Asad Ali Khan b. Bhupen Hazarika c. Shrinivas Khale d. Bhimsen Joshi 11. Who is the new president of Guatemala? a. Otto Perez Molina b. Lázaro Chacón González c. Manuel Barillas d. Justo Rufino Barrios 12. Edeka Group, Germany’s largest retailer is in the race to buy the Netherlands’ supermarket chain C1000 for an estimated a. € 4 billion b. € 3 billion c. €1 billion d. € 5 billion 13. Which of the following pharmaceutical companies, which had initiated acquisition of Taro Pharmaceutical Industries four-and-a-half years ago, made a proposal to buy it for $370 million (Rs1, 810 crore) and be the 100 per cent owner of the West Asian drug company. After about three years of legal battle, last September the company completed the acquisition of controlling stake in the Israeli firm Taro. a. Torrent Pharmaceuticals Ltd. b. Sun Pharmaceutical Industries Ltd

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Advanc’edge MBA December 2011

c. GlaxoSmithKline Pharmaceuticals Ltd d. Glenmark Pharmaceuticals

14. Who has been named the world’s most influential man of the year, beating US President Barack Obama and late Apple co-founder Steve Jobs in the list of 50 wellknown men? a. Prince William b. David Cameron c. Mark Zuckerberg d. David Guetta 15. Name the NRI entrepreneur who has been selected for ‘The Business Man of the year Award 2011’ by the Kerala State Forum of Bankers’ Clubs for his “excellent track record” in business and contribution to Kerala society and philanthropic activities. a. Mukesh Ambani b. Shashi Ruia c. Ravi Pillai d. Ratan Tata 16. Which of the following luxury car makers has appointed Herfried Hasenoehrl as business development head for India, Sri Lanka and Bangladesh? a. Volkswagen b. Ford c. Audi d. Rolls-Royce Motor Cars 17. Which of the following steel companies was conferred with “Best Conscious Capitalist Award” for 2011-2012 at the Forbes India Leadership Awards recently held in Mumbai? a. Tata Steel b. Essar Steel c. JSW Steel d. Jannock Steel 18. An Indian composer, singersongwriter, record producer, musician, and philanthropist, he has received the Public Choice Award for his score in ‘127 Hours’ at the World Soundtrack Awards. Name him

a. Javed Akhtar b. Bappi Lahiri c. A. R. Rahman d. Aadesh Shrivastava

19. Who has been re-elected the president of Argentina? a. Fernando de la Rúa b. Cristina Fernandez de Kirchner c. Eduardo Duhalde d. Adolfo Rodríguez Saá 20. Which of the following software companies has bought RightNow Technologies Inc. for about $1.5 billion so it can offer a broader range of software and services that help businesses manage customer service? a. Oracle Corp b. TCS c. Wipro d. Infosys 21. Which of the following companies has topped a list of the world’s best multinational companies to work for? a. FedEx b. NetApp c. Google d. Microsoft 22. Which of the following countries clinched the ‘Best Destination’ and ‘Best Marketing Campaign’ awards from World Travel Awards chairman Graham Cooke? a. India b. Australia c. South Africa d. Brazil 23. Who won India’s first ever Formula One with ease as McLaren’s Jenson Button tightened his grip on the championship’s second place. a. Ian Ashley b. Christopher Craft c. Sebastian Vettel d. David Brabham 24. The leader of Kerala Congress, he was the Food & Civil Supplies Minister in the UDF government, www.advancedge.com


STUDY HOUR

which was elected into power in Kerala in 2011.He was first elected to the Kerala Legislative Assembly as an MLA from Piravom constituency in Ernakulam district in 1977, and remained a member for a period of over thirty years, representing Piravom and Kothamangalam constituencies. He has also served as the Education Minister in the Government of Kerala under K. Karunakaran in the 1980’s, and as the Irrigation and Water Supply Minister in the UDF Government under A. K. Antony. He passed away on October 30, 2011. Name him a. T. K. Nair b. P. G. N. Unnithan c. K. Karunakaran d. T. M. Jacob

25. Who has been reappointed the Secretary General of the 54-nation Commonwealth grouping for a four-year term beginning April 2012? a. Randhir Singh b. Kamalesh Sharma c. Lalit Bhanot d. Nirupama Rao 26. Who is the new president of Kyrgyzstan? a. Roza Otunbayeva b. Ishenbai Kadyrbekov c. Askar Akayev d. Almazbek Atambayev 27. Who has been appointed as an additional director on the board of East India Hotels- the company that runs the Oberoi chain of hotels and manages the Trident properties in India? a. Nita Ambani b. Tina Ambani c. Vanisha Mittal d. Ashni Biyani 28. Who is the new chairman of Apple? a. Larry Page b. Eric Schmidt c. Arthur Levinson d. Robert A. Iger www.advancedge.com

29. Leading global advertising and marketing communications services company, Omnicom Group Inc, has reached an agreement with Anil Ambani-led ADAG to buy a _ _ _ _ _ _ _ _stake in the latter’s ad agency, Mudra. a. 51 per cent b. 40 per cent c. 55 per cent d. 45 per cent 30. Which of the following movies has won the top prize at the Doha Tribeca film festival? a. The First Grader b. Normal c. Outside the Law d. The Mountain 31. Who has been awarded the ‘The Order of the Rising Sun, Gold and Silver Star’ by The Emperor of Japan for his contribution to the promotion of economic and bilateral relations between Japan and India. a. Rahul Bajaj b. Mukesh Ambani c. Ratan Tata d. R. C. Bhargava 32. Which of the following companies has been ranked the fastest growing oil and gas exploration firm in the world in the Platts Top 250 Global Energy Company Rankings? a. Exxon Mobil Corp b. Cairn India c. PetroChina d. Royal Dutch Shell 33. The world’s largest snack company recently expanded its presence in Latin America’s largest economy by acquiring Mabel, one of Brazil’s biggest cookie and cracker producers. Name the company a. Parle Products Pvt Ltd b. ITC Ltd c. Nestle d. PepsiCo

34. Krishnan Ravi Kumar, Chief Scientist, Indian Institute of Chemical Technology (IICT) and_________, senior principal scientist, Centre for Cellular and Molecular Biology (CCMB) have been selected for the Ranbaxy Research Award for the year 2010. a. A. P. J. Abdul Kalam b. Utpal Bhadra c. Dr. Nirbhay Kumar d. Dr. Sankar Ghosh 35. Who is the new prime minister of Greece? a. Lucas Papademos b. Kostas Karamanlis c. Kostas Simitis d. Andreas Papandreou 36. A Germany-based NRI scientist plans to introduce solar-powered health centres in remote Indian villages, aimed at helping rural people meet their immediate medical needs and popularising the use of renewable energy. Name him a. Bhaskar Sengupta b. Rakesh Agrawal c. Arun Netravali d. Amal Mukhopadhyay

ANSWERS 1.b 2.d 3.a 4.c 5.d 6.a 7.c 8.b 9.d 10.b 11.a 12.c 13.b 14.a 15.c 16.d 17.a 18.c 19.b 20.a 21.d 22.a 23.c 24.d 25.b 26.d 27.a 28.d 29.a 30.b 31.d 32.b 33.d 34.b 35.a 36.d

Answer to the Sudoku

Solution, tips and computer programme at www.sudoku.com Advanc’edge MBA December 2011

67


STUDY HOUR Events Calendar

B-school

events

India Finance Conference 2011 – IIM, Bangalore and IIM, Calcutta Date: December 21-23, 2011 Venue: IIM, Bangalore Objective of the Conference The India Finance Conference 2011 (IFC 2011), jointly organized by Indian Institute of Management Bangalore and Indian Institute of Management Calcutta, invites academics, researchers, doctoral students, and practitioners, to submit papers in all areas of finance. Website: http://www.iimb.ernet.in/~ifc2011/ 2nd Indian Academy of Management (IAM) Conference 2011 - IIM Bangalore Academy of International BusinessIndian Chapter Date: December 18-20, 2011 Venue: IIM, Bangalore Objective of the Conference The theme is “Managing in the New Economy: Exploring the Indian Context.” The conference will focus on the issues of organizing in the context of fast growth emerging economies. Establishing the primacy of the context in organizing this conference seeks to bring together scholars engaged in research on rapid growth organizations in emerging economies. Website: http://www.iimb.ernet.in/~iam2011/ ICER BRIC International Conference on Entrepreneurship and New Venture Creation: International models and benchmarks - International Consortium for Entrepreneurship Research (ICER) Date: December 8-10, 2011 Venue: IIM, Bangalore Objective of the Conference International Consortium for Entrepreneurship Research (ICER) is a cross-continental network of 5 leading academic institutions across Italy and BRIC countries, supported by Fondazione Cariplo, Italy. The network is headed by MilanoBicocca University (Milan, Italy) in collaboration with Indian Institute of Management, Bangalore (India); Fudan School of Management, Fudan University (Shanghai, China); Moscow International Business School MIRBIS (Moscow, Russia) and Institute of Economics, Federal University of Rio de Janeiro (Rio de Janeiro, Brazil). The aim of the conference is to bridge the gap between research and practice by bringing together entrepreneurs, academicians and policy makers across the world. The endeavour is to facilitate sharing of research findings and successful business practices on “Entrepreneurship and New Venture Creation”. Website: http://www.iimb.ernet.in/node/2960 Fifth ISB Accounting Research Conference – ISB Hyderabad Date: December 19-20, 2011

68

Advanc’edge MBA December 2011

Venue: ISB, Hyderabad Objective of the Conference The Accounting Research Conference has been one of the major academic events at the ISB. It is part of an ongoing effort to maintain and improve upon our standing among the Top 20 business schools in the world. As in previous years, the institute encourages all to submit working papers in all areas of accounting research. Website: http://www.isb.edu/KnowISB/eventcalendar. Shtml International Conference on Information Technology, Systems and Management (ITSM2011) – IIM, Kozhikode Date: December 17-18, 2011 Venue: IIM, Kozhikode Objective of the Conference ITSM2011explores the many different technologies inherent in the field of information technology and their impact on information systems design, functionality, operations and management. It intends to explore the man/machine interfaces, human factors and organizational issues. It also explores the managerial issues and the strategic issues that arise from the management of information technology. ITSM2011 invites researchers from different disciplines to a common platform for exchanging research ideas/ hypotheses about information technology, systems and management. Website: http://itsm2011.iimk.ac.in/ 2nd (AGCETI) Annual Global Conference on Entrepreneurship & Technology Innovation – SJMSOM, IIT Bombay with IIT Kanpur, Rensselaer Polytechnic Institute (RPI), USA and National Entrepreneurship Network (NEN) Date: December 1-3, 2011 Venue: IIT, Bombay Objective of the Conference AGCETI aims at threading together these separate themes. Toward this end, the conference invites the participation of academia, industry and policymakers to address theory and practice regarding the linkage between technology, innovation and entrepreneurship. The intent is to highlight the criticality of developing entrepreneurial talent in boosting technology innovation. AGCETI aims at threading together these separate themes. Toward this end, the conference invites the participation of academia, industry and policymakers to address theory and practice regarding the linkage between technology, innovation and entrepreneurship. An intent is to highlight the criticality of developing entrepreneurial talent in boosting technology innovation. Website: http://www.som.iitb.ac.in/events/2011/ CFPAGCETI2011.pdf Mood Indigo 2011 - IIT Bombay Date: December 18-21, 2011 Venue: IIT, Bombay Objective of the Event MOOD INDIGO, or MoodI, as it is fondly called, is the annual cultural festival of IIT Bombay. Held towards the end of December every year, it attracts a whopping 75,000 students from more than 550 colleges all over the country. Website: http://www.moodi.org/ www.advancedge.com


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