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B-schools don’t create leaders, they mentor them

Can leadership be really taught in a classroom? Not always. And that’s why all B-schools have entrance exams.

Some B-schools claim: We create leaders -- a statement which is often misleading. As the cliché goes, leaders aren’t born in schools; not to be confused with another misleading statement that leaders are just born that way. Leadership is an acquired skill, much like an art or a science. But like the two more established fields, can leadership be really taught in a classroom? Not always. It is an inherent quality, a code that not everyone can crack. You either have it, or you take a lifetime to figure it out but sometimes you just can’t. And that’s why all B-schools have entrance exams – to handpick those who already have the quality, and polish their leadership skills. So B-schools are more of mentors than creators. Today, leadership is the prime focus of business schools intent on producing executives not only experts in finance, marketing and HR, but also capable of inspiring people and energizing their companies. It’s a great thing. But things get a little too much when many schools forget about the primary requirement of an MBA – to be conversant in finance, marketing… – and focus on just one thing: ‘leadership’. These courses and schools that claim to create leaders, all too often promote hubris instead. They forget that the most important quality that a leader should have is not the skill to sell an idea. It is the ability to be the best at their primary job. A good leader is also the one who takes responsibility of his/her team members. And last but not the least, he is a trouble-shooter. It’s that time of the year when every MBA aspirant will be going through the proverbial acid-test to make the cut. The CAT exams have begun, and many of you would be wondering: what next? In this month’s issue, we will be giving an answer to that question. We will tell you what B-schools want, and why – in words of the students who have successfully cleared the CAT. We will take you through the highs of management studies, sometimes literally – in fact, our cover story is on wine management; and the lows in gold prices and aviation industry. In region focus, we will take a look at institutes in National Capital Region (NCR). We will also tell you the story of one of the greatest business leaders of our time – Steve Jobs. Happy reading and good luck!

Anil Bhagtani

EDITOR-IN-CHIEF

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CONTRIBUTORS

Kamlesh Sajnani

Rekha Billava, Nikhil Harpale, Nitin Kewlani, Suchita Parab, Tel - 022-23533503/05/10

Dr Suresh Srinivasan,

Senior Correspondents:

Reshmi Majumdar,

CIRCULATION / SUBSCRIPTION

Gauri Puranik

HEAD - PUBLICATIONS Correspondents:

Anil Bhagtani

Reshma Majithia,

ADDRESS FOR CORRESPONDENCE

Serena Kallian

Advanc’edge MBA, IMS Publications, A Division of IMS Learning Resources Pvt. Ltd., 1/45 Tardeo A.C. Market, Tardeo, Mumbai - 400 034.

DESIGN Uma Shirke www.advancedge.com

Priya Gokani

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All rights reserved. Reproduction in whole and in part without written permission is prohibited. Printed and published by Kamlesh Sajnani, on behalf of, IMS Learning Resources Pvt. Ltd., 1/45 Tardeo A.C. Market, Tardeo, Mumbai - 34. Printed at Uchitha Graphic Printers Pvt. Ltd., 65, Ideal Ind. Est., Mathuradas Mill Compound, Lower Parel, Mumbai - 13 and published at Mumbai.

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EDITORIAL

Sarita Kutty, Malav Parekh,

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Contents

08 |

First Step

COVER STORY 08 Wine Management

STUDENT SILHOUETTE 30 Mayur Kumar Lakhmani, IIM-S 34

12 |

Careers Watch

IN FOCUS 12 MBA after LAW ADMISSION Q&A 16 Edward B Rock, Saul A Fox Distinguished Professor of Business Law and Co-Director of the Institute for Law & Economics.

20 |

IMSuccessful 36 Sandeep H.S, XLRI, Jamshedpur 38

MBA Buzz

SCHOOL SPEAK 26 Prof K S Subramanian, Director, Symbiosis Centre for Management and Human Resources Development (SCMHRD) Pune

Akshay Patil, IIM-B

39 | 39

Financial Dynamics

Earn While You Learn

46 | 46

SPECIAL REPORT 20 What is MBA-HR?

Jayant Bahel, MDI-Gurgoan

Region Focus

B Schools in NCR

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November 2011

59 |

Corporate World

BRAND WAGON 59

Factors influencing successful brand extensions

BUSINESS ANALYSIS 61 Demystifying Gold price movements 63

The future of the Maharaja

66

Strategic Intent behind India’s large overseas acquisitions: Have they paid off?

69

Economic Indicators

STUDENT SILHOUETTE 52 Abhishek Deo, IIFT, Delhi

71 |

54 |

WORD DOSE

54

iLearn from Steve Jobs

57 | 57

World View

Study Hour

71 A confabulation between two friends 73 Globescan

Success Street

Communicate Effectively

Su do ku

76 B-school Events Images courtesy : google

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

W ne

Management

“Wine is bottled poetry” – Robert Louis Stevenson ...and creating such poetry is quite an arduous task — it takes years, sometimes many decades, in brewing a wine that has that perfect colour, perfect odour and, of course, perfect taste. Many people swear that there is nothing better than tasting a fine wine. Well! We agree. World over, wine is a symbol of prosperity, celebration and romance, it is a mood setter as well as a mood changer. It is also a status symbol or a friend in despair. From gods chalice to an ordinary man’s glass, a good wine has always been in demand. Gauri Puranik explores Wine Management and prospects for the management graduates in this sector.

W

ine production dates back to 6000 B.C. in Europe. As of 2010, world production of wine stands at 2,45,152 hectoliters (Source: www.wineinstitute.org) . Once having its stronghold in Europe, the wine industry has broken its umbilical cord with the region. Now wines from Australia, Chile and the USA are also sought after. In recent years, India has seen a spurt in export as well as in demand of wine production as well as export. With new players and emerging consumer markets, the wine industry faces challenges similar to any other corporate sector. It has its own set of production challenges and its unique consumers. It also comes

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with its own economic and managerial limitations which need to be addressed by professionals who have acute industry insight and catch the pulse of the industry. Though not many, there are a few management schools that have identified the need to groom professionals to manage this sector. Two such schools are the Burgundy Business School and the Bordeaux School of Management, BEM Management School, located in France. Both schools have special Masters Programmes in Wine Management. The Programmes

The BEM Management School has two programmes relating to the Wine industry. One is the Masters in Wine and Spirits Management (MVS) and the other is an Executive MBA in Wine Management. The school works in close collaboration with experts from the wine industry, professionals and academicians. The motivation to start such a programme came from the fact that the school is located in a major wine producing location. Says Livat Florine, Academic Manager for MVS “We are located at the heart of a highly reputed vineyard (the Bordeaux vineyard) and are also near an area producing a famous spirit, the Cognac. We also have many contacts www.advancedge.com


Cover Story FIRST STEP with companies in this sector. Several of our school professors have been engaged in research on the wine sector for more than 10 years. This research activity implies that we know very well the evolution of markets as well as the questions faced by companies (regarding their economic activity and their recruitments).” At the Burgundy Business School, the MSc. in Wine Business prepares graduates to operate an independent wine business and assume managerial positions within the wine industry. The focus here is to develop the entrepreneurial skills of an individual with particular emphasis on marketing and financial skills. Professionals in the programme are made to understand how global economic cycles affect the wine sector and how to scout for opportunities and create demand for the wine industry. “The Burgundy Business School is a dynamic and progressive institution. It is continuously evaluating its academic offer and matching the strengths of the region of Burgundy with the latent needs of the global business market. A Masters-level, wine business programme in a niche segment of the wine sector mirrors the needs of most

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Oenology is the study of all aspects of wine and winemaking except vine-growing and grapeharvesting

producers in the global wine market.” says Wilson Damien, Director of MSC in Wine and Spirits Management at the School. Pedagogy – Masters in Wine and Spirits Management At BEM Management schools, MVS students can obtain a double skill: one that is product-based, in partnership with the Oenology faculty at Bordeaux University, and managerial. Students have plenty of opportunities to meet professionals in this field who share

their passion and expertise. In many aspects the programme is similar to a programme in luxury management. However the emphasis in MVS is on management. Moreover, the school has a partnership with the university specialized in oenology to allow their students to know the basics of wine, and spirit making and tasting. Prof. Jean-Yves at the BEM School of Management explains that the pedagogy centers around real business case studies, based on ethnographical analysis of an actual local SME (Small and Medium Enterprise). Students are divided into project groups and asked to analyse a business case and develop a realistic plan that benefits the SME. Prof. Yves says “This is a large-scale exercise that mobilizes all management disciplines. The educational objectives are multiple. On one hand, it enables students to learn through experience. On the other hand, it aims to develop analytical, synthesis and communication skills by mobilizing the methods demanded by scientific research (critical distance, axiological neutrality, triangulation and tracking).” At the Burgundy Business School, the approach to teaching is both modern and flexible. “We endorse and encourage the use of new technologies in the delivery of academic material and professional experiences, as evidenced in the 90 hours or so of tele-presenting or web-conferencing delivery of lectures with foreign professors or professionals during the programme.” says Wilson Damien. The first semester of the programme is based on the review and application of marketing principles in the wine sector. The second semester is more about applying theory from a managerial Advanc’edge MBA November 2011

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FIRST STEP Cover Story perspective. In third semester, the student exercises their new-found knowledge by solving a salient business problem during a business internship. Students If most students feel that only local students study at these French schools, then they are highly mistaken. At the Burgundy Business School, students come from US, Brazil, Mexico, the Netherlands, Sweden, Finland, Germany,

Malta, Russia, India, Thailand, China, Australia, Canada, Argentina, Chile, South Africa and Italy. Wilson Damien corroborates this point “The programme is directed at international applicants, and we do our best to encourage their interest in an elegantly French experience. We focus our programme’s publicity almost uniquely on credible promotional methods, such as word-of-mouth and personalised contact. We’re not trying to attract the world, just those throughout the world who are passionate about developing the wine sector. On their arrival in France, our orientation programme to aid the International students’ integration into French life during their studies is also getting bigger and better every year.” Most students who enroll for these programmes have some professional experience in the wine sector. Students with absolutely no experience in the wine sector find the programme more challenging because of the need to develop a better understanding of wine. To overcome this, students at the Burgundy Business School organise their own sessions of winetasting and appreciation during their studies. The result has been an acceleration of wine knowledge for those who began with none. Career Prospects After graduating, students find jobs within the wine industry-in the fields of marketing product development, sales, imports and exports. Opportunities are available in winery co-operatives, wine retail business, hospitality and luxury management sectors After two years of work experience in an international car company in Paris, Pauline decided to change her job and learn about ‘wine industry’. Gaining entry into the wine sector without the relevant qualification or background was impossible. Pauline

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thus decided to pursue her Masters in Wine and Spirits Management. Says Pauline “As part of my training, I had the opportunity to work with two organisations: Union des Grands Crus de Bordeaux and as an Export Manager Zone in a wine merchant company based in Bordeaux. Working with these organisations made my training very interesting as I could discover two different kinds of companies, different corporate cultures and thus two very different work styles. “Now, as export manager for the Asia Zone, I have the chance to travel for my job and meet my customers abroad. As a wine and travel lover, it seems I have found a work station that fits me well!” “If you want to live in a beautiful city in the capital of Burgundy, want to learn about and taste wine, meet people from all around the world with different cultures and therefore creating an international network, learn or approve languages, to be educated in a very professional business school, become a professional in a fascinating industry with a master degree and to have a great educational and fun time, take this great chance!” says Allard Nooitgedagt, Dutch student, MSc. in Wine Business at the Burgundy School of Management. The employment scenario at the Burgundy Business School for the programme also seems bright. Many of the first group of students have already secured full-time employment, with at least two of these students in the process of launching their own business as wine distributors in Spain and the Netherlands. “The programme is flexible enough to cater to the needs of business students and wine students who want to direct their career path into the business side of the wine sector. From positions such as a Wine Buyer with a retailer, Critic with reputed periodical; Marketing manager with a wine firm, to any related managerial role within the wine distribution channel would be ideal for a graduate of this programme.” says Wilson Damien www.advancedge.com


FIRST STEP

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CAREERS WATCH In Focus

MBA after Law Is it advisable for you to join an MBA programme directly after law school? Will the MBA add any value to your law degree? Find the answers to all your questions on getting an MBA qualification after a law degree in this article. Sarita Kutty

I

n the current financial reality, senior managers are required to deal with legal aspects in the realm of business management. Fundamental knowledge of the law is essential for the present-day manager to turn his company into a successful business. The increasing governmental regulations and the burgeoning of the global economic trade market have forced policymaking and management to become intertwined. In the daily management of business, the role of the attorney is needed more frequently due to global economy requirements for accessing legal advice.

The advantages of MBA combined law degree The effectiveness of managers, business policy and legal advisors is increased through deeper understanding of the importance of issues, skills and methods in law and business. The combined MBALaw degree programme offers tools to achieve successful careers in the business and law professions, such as in:  Business development  Business policy analysis  Investments  Banking Institutes The combined MBA-Law degree programme requires only 4 years to complete. Studying toward both degrees separately would take 5 years - even longer for part-time students – while more time would be required for completing the prerequisites for the MBA degree.

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Careers with MBA + LLB in government sectors Any candidates who have done their graduation in any discipline from any recognized university /college can opt for their Masters in Business Administration (MBA).There is ample scope for LLB combined with Masters in Business Administration. They are two different fi elds. In this highly competitive world, the scope for professionals who look into the legal bindings of any organization is vast. Any organization which is highly successful in a particular fi eld understands the needs of a proper legal system or regulation, which can impact their area of business in general. Hence the combination of these two degrees helps in good career progress. Your choice of LLB with MBA would go hand in hand since LLB would make you an expert in Legal Administration and MBA will teach you in various/opted fi eld’s management. An MBA will help in expanding your knowledge beyond the law degree apart from the law degree. A

different mode of study is followed here by involving them in getting practical knowledge through case studies , presentations etc. The job opportunities involve acting as legal advisors in fi rms in any specifi c fi eld. By providing legal services , the state judiciary is another avenue wherein recruitment is made through competitive exams while the public sectors and banks needs law graduates for POs or law offi cers. After completion of LLB+MBA you can get opportunities like  Operations Manager  Vendor Compliance Manager  Manager Industrial Relations  Legal Manager Opportunities galore A law or MBA degree helps professionals build expertise in either fi eld, for example, marketing in management or litigation in law. But in a rapidly globalising economy, a combination could take one’s career much further. And, given the demand for a combination of law and MBA qualifi cations, it is reasonable to expect that it would pay better than a law or management degree alone. The legal function is now a strategic one. Today, those who run businesses need to have a deeper understanding of the business laws because many fi elds - telecom, insurance, and sunrise sectors such as aviation - are highly regulated. www.advancedge.com


CAREERS WATCH

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CAREERS WATCH In Focus “There’s certainly a need for people with a knowledge of both management and law across sectors such as marketing, sales, supply chain and those involved in the development of intellectual property,” says T Sreedhar, Managing Director, TMI Networks, a leading talentsourcing firm based in Hyderabad. However, he adds, there is a scarcity of talent with this kind of knowledge at present. Corporate houses are also happy to hire talent with a good mix of law and management qualifications. This is a good combination because lawyers today need at least some basic knowledge of the issues facing corporates, such as a good grasp of the law relating to securities, insider trading or the takeover code, according to them. In response to the demand, Hyderabad-based NALSAR University of Law, one of the leading law schools in the country, have started a new course on October 15: the Masters Degree in Business Laws and Administration. According to K V S Sarma, Professor of Law and Head, Centre for Corporate Governance at the university, as national economies are increasingly integrated into the world market within the framework of international trade rules, business has taken centre stage. “As a result, corporate laws are moving towards universalisation,” he says. “So all employees in the corporate world need some knowledge of the principles of management and business law, to do business within and outside the country. Sarma says the new course, a two-year programme that costs Rs 6 lakh, has been designed to bridge a crucial gap and create synergies by bringing management and law together. “In any MBA course, management skills are taught,” he says. “But without a thorough grasp of company, labour, industrial and commercial law, graduates feel handicapped even when they are part of the management of a corporate body.”

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Given the demand for a combination of law and MBA qualifications, it pays better than a law or management degree alone. The eligibility for the course is graduation in any discipline. The first batch of 30 students will be chosen on the basis of their academic qualifications and an interview. The course will cover a range of subjects spanning law and management, such as intellectual property law and management, corporate governance and business ethics, financial and management accounting, contract law, marketing management and brand- building. NALSAR is not the first law school to wake up to the potential of a combination of law and business qualifications. The National Law University, Jodhpur, offers an MBA (insurance), and says it is the first in the country to offer an honours

degree in business law. It sees this as a core strength, citing its alumni who are now associated with international law firms such as Clifford Chance and Allen & Overy, Indian ones such as Amarchand & Mangaldas & Suresh A. Shroff & Company, and AZB & Partners and corporate giants such as the Tata and Reliance groups and Larsen & Toubro. Costs stack up in favour of NALSAR’S business laws programme for now. A pure law course at NALSAR would be five years, and would cost around Rs 9 lakh. A pure management course, such as the two-year postgraduate programme at the Indian Institute of Management, Ahmedabad, would cost Rs 6.3 lakh a year. A one-year course at ISB costs around Rs 20 lakh. In conclusion If you are a lawyer and want to pursue a career in a non-legal field, an MBA with the appropriate specialisation is a good way to qualify for that. An MBA provides you with the opportunity to expand your skills beyond law. MBA offers an opportunity to learn the theory behind some different skills than those taught in the average law degree, and also to be involved in case studies and see the results of alternate methods of running businesses.

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CAREERS WATCH

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CAREERS WATCH Admission Q&A

“For a student interested in business law, it is essential to learn corporate finance”

... says Edward B Rock, the Saul A Fox Distinguished Professor of Business Law and Co-Director of the Institute for Law & Economics. In this exclusive interview, he discusses the accelerated threeyear JD/MBA programme that he helped create.

Tell us about the JD MBA programme. Two of the US’ top law and business schools - the Wharton School and the Law School at the University of Pennsylvania offer an accelerated three-year programme leading to both the JD and MBA degrees. As the world becomes more complex, leaders must be able to integrate financial, legal, political and cultural issues like never before. Students in the programme will spend the first year in Law School and the following summer in four Law and Wharton courses designed specifically for the threeyear JD/MBA. The second and third years will include a combination of Law and Wharton courses, including capstone courses in the third year and work experience in law, business, finance or the public sector in the summer between the second and third years. Penn’s three-year JD/MBA is the country’s first fully integrated three-year programme offered by elite law and business schools on the same campus. It will target potential applicants who will typically have around two years of work experience, whether in law, finance, as entrepreneurs or in investment banking, private equity and related fields. Applicants must be admitted by both schools in order to enroll in the three-year programme. Students in the joint programme will be required to meet the Law School’s mandate to perform 70 hours of supervised legal work in a pro-bono setting in order to graduate. For a student interested in business law today, it is essential to learn corporate finance. In this combined programme, students will be able to complete a full MBA including, if they wish, a major in finance, at the same time as taking numerous advanced courses in corporate law. The graduates of the joint programme will be qualified to do just about anything at the boundary between law and business: corporate law, investment banking, private equity, hedge funds, real estate, and more. What is the application process for joint degree programmes at Penn Law? Students must submit a separate application for each school to which they apply; they consequently sit for any standardized testing required by each programme. The exception to this policy is the three year JD/MBA programme. If you are applying for the latter, please do not fill out or submit the Fall 2012 - First Year JD application through LSAC. Instead, you must apply exclusively through Wharton at www.wharton.upenn.edu/mba/. There, you will find a Law School Application Supplement.

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CAREERS WATCH

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CAREERS WATCH Admission Q&A Please reference the Law School Application Instructions through Wharton for further important information. If a student holds an LLM and wants to apply to the JD programme, does he have to take the LSAT? Yes. Further, students who hold an LLM degree will not be given credit for their LLM coursework. However, students who hold a foreign law degree (LLB) may be given credit for their law courses. Typically, students holding an LLB will be granted one year of credit. Thus, they will be able to complete the J.D. programme in two years. The evaluation of foreign law coursework is completed after the student is admitted. If a student holds an LLM or LLB degree, can she apply to Penn Law’s JD programme as a transfer student? No, you must apply as a first-year student. However, you may be granted advanced standing if you are admitted. Are foreign students applying for the JD programme required to take the TOEFL exam? No, foreign students are not required to take the TOEFL. Do international students qualify for financial aid or scholarships? Yes. Foreign applicants who are admitted to the JD programme will be considered for all merit scholarships; a separate application is not required. Additionally, foreign applicants may be eligible for need-based grants. A financial aid application is required for need-based grants. The deadline is March 1. Instructions for applying for financial aid may be found at www.law.upenn.edu/ prospective/jd/financing.html Are international students eligible for loans? International students may apply for loans from private student loan lenders. However, these loans typically require a creditworthy co-signer who is a U.S. citizen or permanent resident. U.S federal student loans are not available to international students.

What type of financial aid do you offer? Penn Law is committed to assisting deserving students with the financing of their legal education. We offer a combination of merit scholarships, need-based grant, and loan sources to assist our students with the financing of tuition and living expenses. A description of our scholarships may be found at www.law.upenn.edu/ prospective/jd/financing.html If you wish to apply for need-based aid, you must complete the FAFSA and the Need Access financial aid application. In addition, if you are under the age of 30, we require parental and spousal (if applicable) information when determining eligibility for need-based aid. If you are applying for loans only, you may complete the FAFSA without parental information. For online financial aid application instructions, visit www.law. upenn.edu/prospective/jd/financing.html. How should students apply for merit-based awards? Merit scholarships do not require a separate application. If you are admitted to Penn Law, you will be considered for all merit scholarships. Please refer to the following website for additional merit scholarship information: www.law.upenn.edu/prospective/jd/scholarsprogram. html Can international students obtain financial aid? International students may apply for need-based aid (grants) and loans from private student loan companies. Most programmes will require a creditworthy co-signer who is a US citizen or permanent resident. US federal student loans are not available to international students. International students admitted to Penn will also be considered for the merit scholarships described above. International students are eligible to participate in our Toll Loan Assistance Repayment Program (TollRap).

How much is tuition? Tuition and fees for the 2010-2011 academic year was $50,718. Penn Law affords students the opportunity to take upto four courses - related to legal study - at other graduate and professional schools in the University. Students can take these courses as part of a joint degree programme, a certificate programme, or an ad hoc programme of study. Tuition includes the tuition transfer for upto but no more than four courses. Students who take courses in excess of four will be charged a pro-rated tuition for these additional courses. Students pursuing a joint degree or certificate programme will incur an administrative charge ranging from $200-$400. This fee will be applied at the start of a certificate programme, and at the end of the third year of study for joint degree candidates.

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CAREERS WATCH

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MBA BUZZ Special Report

What is MBA-HR? If asked about the most important resource in an organization, the immediate response that one gets is ‘its people’. And therefore the most important management one must learn today is to manage its people to establish a productive and flexible environment within a company. For those who make key decisions in a company, it is critical that they understand peopledynamics to enable value creation in an effective manner. HR managers are often referred to as an employee’s friend but to have a career in this function, one needs to have more than just people skills. Let us understand this role a little more. Serena Kallian

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ssentially, HR is a serviceoriented function needed in each and every organization. By standard definition, human resource management (HRM) means a function that focuses on recruitment, management, directing and motivating people who work in the organization. This function is also performed by Line Managers in some cases. They essentially deal with issues related to people such as compensation, hiring, performance management, organization development, safety,

wellness, benefits, employee motivation, communication, administration and training. The activities that constitute the HR function: human resource management, organizational planning and development, employee and industrial relations. Industry Scenario According to a National Skill Development Corporation report, there is a dire need in India to reduce the gap in human resource and skill requirements in the following sectors: Labour Market Information System, A u t o

and Auto Components Banking and Financial Services Insurance (BFSI), Building, Construction and Real Estate services, Chemicals & Pharmaceuticals, Construction Materials and Building Hardware, Development Services, Electronics and IT hardware, Food Processing, Furniture and Furnishings, Gems and Jewellery , Healthcare, IT & ITES, Leather and Leather goods, Media and Entertainment, Organised Retail, Textile and Clothing, Transportation, Logistics, Warehousing and Packaging, Tourism, Travel, Hospitality and Trade and the unorganised sector. This is only one aspect of the challenge faced by human resource managers in the country. Our nation has a large population of employable individuals but they lack skills and adequate training. The demand in the industry is not being met. What we need are capable practitioners who would improve the quality of the human resources across sectors by training and suggesting innovative processes. Who is the programme targetted at? The MBA in HR, ideally, aims to teach its students how to build a solid foundation of people in an organization, by managing them, delegating their duties and keeping them in harmony. In the Indian MBA scene, there are a few reputed institutes which are known for their HR leanings and offer specialised programmes in

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MBA BUZZ

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MBA BUZZ Special Report HR. The programmes offered by these institutes range from the two-year fulltime postgraduate diploma in HRM to the executive programme or the part time/ distance programme. Some of the institutes which do so are XLRI Jamshedpur, Indian Institute of Social Welfare and Business Management (IISWBM), Kolkata; Management Development Institute (MDI) Gurgaon, IMT Ghaziabad and Tata Institute of Social Sciences (TISS) Mumbai. The specialised programmes are usually considered by individuals who either have a background in HR and want a promotional move or ones who wish for a lateral move. Most inexperienced candidates are advised to take up the general MBA since they tend to get wider options in terms of specialisations. The specialised HR programmes have general management topics as part of their curriculum. Most of these general topics in finance, marketing, economics, etc are taught in the first year of the programme. In the general MBA curriculum, the first year offers common management subjects which also include HR related topics, the second year is the time when one is expected to choose a major or specialization area. Within the HR specialization students get to choose electives on a range of topics such as Training and Development, Human Resource Management, Compensation Management, Economic Analysis & Business Environment, Organisational Behaviour, Statistics & Research Methodology, Corporate Management, Management Accounting & MIS, Basic Human Resource Management, Employee relations, Industrial relations, Compensation Management, Labour Law, Labour Welfare, Management of Safety & Health, Industrial Sociology, MIS for HRM, TQM, Quantitative Techniques, Organisation Development, Labour Rationalisation, Advanced Labour Economics. Entry levels HR roles in the industry are not just restricted to management graduates; they are also open to students with masters in psychology/ Industrial relations/ Industrial psychology,

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general humanities etc. The entry level job profile and the compensation in such cases may differ in comparison with an MBA. The specialised programmes are therefore a favourite with participants who have work experience in HR but wish to grow in their job profile and get better compensations on the job. Career Opportunities An MBA graduate with a specialisation in HR or a major in HR enters the industry in various roles, depending on the institute and the organization. Most general MBA graduates are awarded a general management degree even if you choose HR as your major subject in the second year. With specialised programmes in HR, graduates enter the industry at a more primary level unlike the general management candidates. A new entrant would start out as an HR associate or

assistant. This role would mean that you deal with work related to administration, documentation, paperwork involved in employing people With more experience and over a period of time, one moves to the level of an officer, executive or manager. This would mean greater responsibility and having to conceptualise strategies, channelize resources of the organization, handle employment law issues, etc. Apart from internal relations of the company, HR managers are also involved in industrial relations, which add more dimensions and challenges to this role. HR consulting is also a popular avenue for HR enthusiasts. Many management graduates take up roles as HR Consultants in specialised consulting firms and sometimes also move to more independent ventures in the field. Depending on the size of the

organization, many of the HR jobs may have overlapping responsibilities. In larger organizations for instance, a Human Resources generalist, the manager, and the director have clearly defined and separate roles. The authority would ultimately lie with a director or vice president, who may also lead other departments in administration. However, this phenomenon is not so common in India since most CEOs or directors come from functions other than HR. Human Resources staff members are advocates for both the company and the people who work in the company. Which means that a good HR professional needs to perform a constant balancing act to make both ends meet. With time, the role of an HR manager has undergone several changes. In the past, it was viewed more in the light of being the company’s mouthpiece to the people and vice versa, and their role was more closely aligned with personnel and administration functions that were viewed by the organization as paperwork. Today, an HR manager is involved in several strategic decisions of the company and also in framing innovative processes to improve the quality of a workforce which is directly linked with productivity. So how do HR managers need to be? Sudhir Chauhan, a senior HR consultant with a leading HR firm in Mumbai feels that HR professionals are required to be more techno-savvy and also customer-centric, especially if you are associated with placement firms in a competitive market. As HR professionals are needed across sectors, having an understanding of a wide range of topics and relevant experience in a wide range of practices gives you more flexibility to move in your career and later helps you reach an HR specialist’s role. You generally tend to begin as a generalist but as your career progresses you should move into a more specialized profile in HR. Some of the other important attributes that are required in an HR professional are accuracy, an eye for detail, having an objective and fair approach to issues, being able to handle sensitive issues with confidentiality www.advancedge.com


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MBA BUZZ Special Report being able to balance commercial and personnel management. Like roles in finance and marketing, HR trends are also affected by external factors. In the light of the current market uncertainties, the first ranks to feel the pressure other than stockbrokers are the HR personnel of companies directly affected by the hit. Malati Gaur is an HR manager with a multinational IT company and has had 12 years of experience in this field, she says, “Surviving in this field depends on how comfortable and adaptable you are with changes in policy, market conditions and attitude of the organization, apart from your ability to communicate and manage people. During a market recession, it is challenging for the HR personnel to enforce unpopular processes, retain employee confidence and also face the threat of losing one’s job if targets/the KRAs are not met. When a business is growing, it is easier to bring in innovations in HR practices but it gets difficult when the business is bad.” In essence, the HR manager must work in tandem with the changing needs of his or her evolving organization. Summing up what has been said, successful organizations are becoming more adaptable, resilient, quick to change direction, and customer-centered and with them, so are the HR managers. To attract competent candidates to this career, one also needs to overcome rigid mindsets about this profession. Many management graduates opt for

Institute

Placement Trends Human Resources Management has never been among the favourites with general management students. Only a small percentage of the general MBA crowd opts for roles in HR and general management. Among the premier

B-schools, this number seems to have maintained a small yet steady following over the years with an exception in case of specialised programmes in HR among these institutes where the focus area is that of HR. Many experts therefore feel that some of these specialised HR programme serve as better platforms for both entry level and hard core HR roles. Here is a look at some trends in placements in some

of the general MBA and specialised programmes in a few institutes. Based on the vertical break-up in the number of offers accepted at placements this year, around 3% of the PGP batch took up HR roles at IIM K. The highest salary in this function was 11.8lakhs p.a. At MDI, which has a specialised PGP programme in Human Resource Management, recruitments saw the following major recruiters for its PGP-HRM students: Aon-Hewitt, Bharti Airtel, Ernst & Young, Franklin Templeton, GSK, ICICI, Intel, ITC, Mahindra & Mahindra, Mercer Consulting, Procter & Gamble, RPG, Schneider Electric, Tata Sons and Tata Steel. 20% of this batch took up HR roles in consulting firms, 18% in financial services. At XLRI, which is known for its specialised HR full-time programme, namely the two-year Personnel Management and Industrial Relations course, there was an increase of 100% in placements this year. There was participation from major firms in Consulting, FMCG and Finance sectors for International Banks and Group Companies. Various specialized roles were offered such as one by the Global Pharmaceuticals major, Novartis AG offering its prestigious HR Leadership Development Role at Basel, Switzerland, exclusively to XLRI, making the highest international offer of US $120,000.

Rising enrollment (Table of B-schools with duration, fees, course curriculum, pedagogy, etc) Programme/ Fees in Course structure/curriculum Pedagogy Duration INR

Indian Institute of Social Welfare and Business Management (IISWBM), Kolkata XLRI School of Business and Human Resources, Jamshedpur

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this function when they fail to gain opportunities in the other verticals. “This attitude and approach is wrong and unfair both to the organisation that employs you and also to yourself.” feels Ms. Gaur.

Masters in HRM, 3.6 Lakhs Economic Analysis & Business Environment, Organisational 2 years Behaviour, Statistics & Research Methodology, Corporate Management, Management Accounting & MIS, Basic Human Resource Management, Employee Relations, Industrial relations, Compensation Management, Labour Law, Labour Welfare, Management of Safety & Health, Industrial Sociology, MIS for HRM, TQM, Quantitative Techniques, Organisation Development, Labour Rationalisation, Advanced Labour Economics. Postgraduate Di- na Human Resource Planning, Human Resource Information ploma in HRM, 2 Systems, Selection, Performance Management, Training and years Development, Compensation Administration and fostering harmonious employer - employee relationships

Advanc’edge MBA November 2011

Classroom discussions, projects, assignments, industrial visits, group work

Classroom Lectures, Group work, Case studies and role play, project work, assignments, term papers, industrial visits, simulation games and audio visuals, seminar and presentations www.advancedge.com


Special Report MBA BUZZ Institute Tata Institute of Social Sciences

Programme/ Duration MA in Human Resource management and Labour Relations,2 years

Symbiosis Centre PG Diploma in for Management HRM,1 year and Human Resource Development Management Development Institute MDI, Gurgaon

PGP HRM,2 years

Institute of Management Technology Ghaziabad

PGDM HR, 2years

International Post Graduate Management Diploma Institute IMI Delhi in Human Resource Management, 2 years

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Fees in Course structure/curriculum INR 1.24 Understanding Society,Introduction to Basic Lakhs Economics,Development Experience, State, Social Conflict and Change, Sociology of Organisation, Organisation Theory and Design, Management of Human Resources: Conceptual and Strategic Perspective, Industrial Relations and Trade Unionism, Social Research & Case Analysis, Employment Law – I, Business Environment, Business Communication and Presentation Skills, understanding Self and Facilitating Relationship (in the form of personal growth laboratory) (Compulsory and non-evaluative), Organisational Behaviour–I, Performance Management and Development, Learning and Development, Business Statistics and Quantitative Techniques, Compensation Management, Employee Resourcing, Marketing and Sales Management, Operations Management, Development Centre (Compulsory and non-evaluative),Organisation Development and Change Management, Application of IT in HRM, Employment Law – II, Labour Economics: Theory and Practice, Employee Wellness, Decent Work and SHE, Organisation Behaviour – II, Financial accounting & Cost Management, Conflict Management and Negotiation Skills, Training Process, Delivery and Effectiveness Measurement, Advanced Compensation and Benefit, Corporate Governance and Business Ethics, Business Strategy and Strategic Human Resources Management, Human Resource Management in International Settings, Gender and Diversity Management, Talent Management, Leadership 55,000 Managing People, Developing an Agenda For Change, Tracking Organisational Performance, Applying a Compensation Model: internal and legal consideration, Inspiring Leadership Styles, Research Paper, Legal Issues in Managing People, Creating a Talent Pipeline, Managing Cultural Diversity in National/Global Context, e-Human Resource Management, Case Analysis in Human Resource Management, SAP HR, Analytics in HR na HR systems and processes, Organisational Behaviour, Accounting, Managerial Economics, Social conscientisation, journey to self, employee relations, marketing practices, recruitment and selection, operations management, strategic HRM, Corporate Law and Employment Law, HR Planning, Business Ethics, Corporate Governance, SCM, Strategic Challenges in Marketing for HR professionals, Operations Management for services, Compensation Management, Learning and Development, Talent Management and Competency framework, Mergers and Acquisitions, Managing across Cultures, Negotiating Skills and Collective Bargaining na Compensation & Reward Management, Competency Mapping & Assessment Centers, Conflict & Negotiation, Cross-cultural Skills for Global Managers, Effective Talent Acquisition, Human Resource Planning & Staffing, Industrial Relations, Labour Laws, Management of Discipline & Grievances, Measurement in HR, Organization Change & Development, Performance Management, Psychological Testing, Strategic HRM, Training and Development 10.7 Financial Accounting and Analysis, Competency Management, Lakhs Behaviour in Organizations, Legal Framework of Employment-I, (for two Business Communication, Operations Management, Business years) Economics, Performance Management Systems, HR Systems and Processes, Research Methods, IT for Decision Making, Ethical Issues in HR & Corporate Social Responsibility, Marketing Management-I, Human Resource Information Systems, Organisational Design and Development, Strategic Management, Business Statistics, Management of Change, Corporate Finance, Legal Framework of Employment – II, Marketing Management-II, Employee Relations & Collective Bargaining, Personal Growth Lab, Improving Workforce Practices using PCMM, Recruitment and Selection, International HRM & Cross Cultural Management, Learning & Development, Internship in NGO, Compensation & Reward Management, Introduction to Operations Research and additional HR electives

Pedagogy Participation in discussions, case study analysis, presentations, simulation games, assignments, emphasis on conceptual clarity, practical inputs are provided through the rigorous field work system

Case studies, research paper, projects, group work

Role modeling and fieldwork, case studies, business games, role-plays, simulation exercises, group discussions and structured and unstructured group work

Case studies, seminars, simulations and group projects

Pedagogy would be a combination of lectures, case discussions, presentations, assignments and project work

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MBA BUZZ School Speak

“Entrepreneurship and infrastructure management will offer good opportunities for management graduates” … says Prof K S Subramanian, Director, Symbiosis Centre for Management and Human Resources Development (SCMHRD) Pune, which was founded in the year 1993 and is part of the large Symbiosis family of institutes. Ever since then it has striven to bring Indian ethos, management concepts and technological advances together in an effort to bring about a change in the way management is practised and imparted through education. Its mission statement begins as follows: “To create leaders and entrepreneurs of tomorrow” This is reflected in its illustrious alumni base which grows each day. The institute was recently ranked 12th in Business Today’s Nielsen B-school Ranking 2011. Prof Subramanian speaks about the institute, future plans and general management trends in an e-interview with Serena Kallian. Sir, what would you say are some of the benefits of studying at SCMHRD? We are members of AACSB and EQUIS International Accreditation Agency and we expect to see a good amount of collaborations coming our way. We strongly believe that management cannot be taught so,’you are not taught but you learn’ here. We give full support to the choices made by the students and so, they do not

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have any restrictions on what they wish to learn at the institute. At SCMHRD, we also give great importance to research. Work done by our students is integrated into the learning process here for future students. In terms of technology we believe in being ahead of the times, so there is no technology available in the world that has not been imbibed by the institute. Do you see a change in focus in the way management education is imparted at the institute in a few years’ time? What are your future plans for the institute? We have already started a new profile for Infrastructure Management and we are collaborating with the Singapore government for the same. We are now moving into sustainable development for all faculties as part of green management. At SCMHRD, we also have a rich faculty base and wellpublished research scholars, who have been contributing to the way management education is being imparted here. As mentioned before, we do tend to stress upon student-based research and this is of critical importance for the institute and so, this aspect will be continued in the future. www.advancedge.com


MBA BUZZ

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MBA BUZZ School Speak How important is the location of the institute when it comes to doing an MBA? Does it affect the opportunities in employment or projects that students take up? I personally do not feel that location should make much difference to the MBA programme you do, it is not so restricting today. Faculty and other opportunities associated with a management programme have become accessible to anyone residing in any part of the world. How important is institute industry interface for an MBA student and how is it encouraged here at the institute? For a management programme, industry interaction is extremely important. In fact, I would call it critical for an MBA student. At SCMHRD we encourage students to begin this process right from the admissions up to their convocation. These interactions are true for the institute as well because it helps us offer industryrelevant programmes to the students. So, effectively, our interaction starts before the admissions. Who, according to you, is an ideal candidate for an MBA? What do you look for in an applicant at SCMHRD during the selection process? Unfortunately, this question cannot be answered in a single sentence because we work on

forecasted competency indexing. Could you tell us a little about the current placement trends at the institute? At SCMHRD, we generally invite no more than 50 to 60 companies for recruitments but we ensure that they are the best in their respective fields and, so far, we have only got the best. This time around, SCMHRD saw participation from companies like Deloitte Consulting, Hewlett Packard, CRISIL and Infosys and new recruiters on campus like Procter & Gamble, Accenture, Philips, Goldman Sachs, Hindustan Coca-Cola Beverages and Reliance Power, etc. Which are the future opportunity areas for MBA graduates? Going by the trends in the market, I feel that entrepreneurship and infrastructure management are going to offer really good opportunities for management graduates. Is there anything that students should keep in mind when it comes to recruitments? The only thing I’d like to tell all future managers is not to go after placements and give them so much importance. What one needs to strive after is knowledge. Placements will happen.

Corrigendum In the MBA Buzz School Speak of our previous issue (Oct 2011), we carried a picture of GITAM Institute of Management instead of Gitam School of International Business. While both the B-schools are affiliated to the same university, they are different institutes.

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MBA BUZZ Student Silhouette

“The challenge for us, is to connect our learnings with the practices in the company and bring in strategic inputs” Tell us about your post MBA plans? I hope to make a great career in HR. I come without any corporate experience so, initially, I was inclined towards both marketing and HR. After the first year and the internship it became clear to me that my strength and interest lie in HR. What I find most appealing in this field is its people-factor and the fact that I could be behind the decisions that could change the way an organization functions and its people work. Having encountered a number of opinions on choosing HR as a career I decided to keep an open mind about perceptions and ‘myths’ pertaining to this field and went and joined it.

Mayur Kumar Lakhmani hails from Lucknow and is a student of the 20102012 PGP batch at the Indian Institute of Management, Shillong. Armed with a B Tech from VIT, Vellore and now an MBA, this budding manager wants to carve out a niche in the Human Resources. Mayur talks about his interests, goals and his pet topic ‘HR’ in a tele-interview with Serena Kallian

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Which areas within HR are you keenly interested in? How are you gearing up for these goals? I did my internship in Egon Zehnder International, a Swiss-based firm, where I had a chance to work in executive recruitments. From my experience at the internship, I have come to like this area called HR Consulting so I would prefer to work in a similar firm in the future. I prefer HR Consulting as it gives you a wider berth to grow and gain more experience, while in a company HR department the areas you work in, tend to get restricted. However, I am also open to work in corporate HR if a good opportunity comes my way. The best way to gear up for these goals at the institute is to get involved yourself in the different club activities. The HR club here is called UsHR (pronounced Usher) and it was formed only last year. We are a small group of people who want to nurture and inculcate an interest in this field among participants. This is also a very good way to increase industry interaction through various events. We have also launched a bi-monthly HR magazine called 2getHR (together). Thus in our small way we hope to create a good HR brand image. What topics are usually covered as part of the HR specialization? The first year is common to all students and we tend to

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MBA BUZZ Student Silhouette study topics like Finance, Marketing, HR, Organisational Behaviour, Business Communication, Operations and soon it is only in the second year that we get to decide our specialization and the electives. The important topics covered are Talent Management and Acquisition, performance Appraisal, HRM, Personnel management, Industrial Relations and Labour law, HR Consulting, Training and Development.

In HR, one is expected to have great interpersonal skills, ability to network well, strategic orientation and a sound understanding of the business.

What are the opportunities available for an MBA graduate interested in a career in HR? Where do graduates usually start initially? In the IIMs and other general MBA colleges the degree that we are awarded is a general MBA so there is no clear cut distinction here. We take up managerial roles in training & development/ industrial relations/ compensation/change management, strategy etc. We usually start as assistant managers or depending on the work experience and the organization, one can also move onto at bigger profiles. The challenge for us is to connect our learnings with the practices in the company and bring in strategic inputs.

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Do you have any dream companies in mind? Since my primary goal is to get into HR consulting my dream companies would be Hewitt or Mercer Consulting. In case of corporate HR the dream company would be Google. Are there any special skills one needs to hone for a career in HR, in your opinion? In my opinion having that smile on one’s face even in times of turbulence in an organization would be worth a lot in this profession. Apart from that, one is expected to have great interpersonal skills, ability to network well, strategic orientation and a sound understanding of the business.

Anything you would like to tell aspirants who are looking forward to a career in HR? Do not choose HR as a career if you think that the work involved is easy, ‘soft.’ It has its challenges even if it does not involve a lot of number crunching I realized this during my internship which proved to be really hectic. Take it up because it interests you and because you are good at it.

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MBA BUZZ

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MBA BUZZ Student Silhouette

It’s better to know well about a few things than knowing little about too many things Jayant Bahel is a 2010-2012 MBA student at the Management Development Institute, Gurgaon. An avid photographer and a creative worker Jayant shares his campus experiences with Serena Kallian

Could you tell our readers a little bit about yourself? I am a mechanical engineer from VNIT Nagpur, and after my graduation I worked with Telcon (a joint venture between Tata Motors and Hitachi) for 2 years. During my 2 years of working, I had the fortune of travelling around India and I developed my hobby of photography. I have an active interest in photography and have also conducted an exhibition of my works. Was joining the institute a conscious choice? What were your reasons to pick MDI Gurgaon? To be honest, I was not even sure if I wanted to do an MBA. It was a friend of mine who made me write the CAT and he was the one who made sure that I filled up all the right institutes. He is now in XLRI and through his efforts, I’m in MDI, which was my only call. I was lucky to have converted it. What according to you are some of the benefits of studying in MDI and in Gurgaon? MDI is definitely one of the best B-schools in India. There is an amazingly talented

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Student Silhouette MBA BUZZ peer group which keeps you on your toes all the time in all aspects of life at the campus be it academics or extra-curricular contests. This competitive environment ensures that you give your best everywhere. I personally have observed a lot of positive changes in myself since joining MDI. Moreover, being located in Gurgaon means that you are in the middle of a booming corporate hub very close to the national capital. How was the selection process at MDI? Tell us about it. MDI follows a very standard selection process. We had shortlists based on CAT scores, a GD and a PI based on a personal form which was given to all shortlisted candidates. My interview and GD went well, I was grilled mostly about my academic background and work experience with questions ranging from geography, application of mechanical engineering in farms and discussing the CSR policy of the Tata group. Also, I showed some of my photographs to the panelists and then the discussion shifted towards photography and

I think the B-school matters more than the location of the B-school itself.

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other lighter issues. Overall, it was a good experience and the panelists never tried to put me under any stress. Do you see yourself working in the same city? Do you think location matters when it comes to pursuing an MBA? I am pretty much open to working anywhere after my MBA and I think the B-school matters more than the location of the B-school itself. But I know people who disagree with me and we always have healthy discussion over this. Anything you would like to tell future aspirants for instance how they should prepare themselves for the selection rounds? I would say be yourself. Do not pretend what you are not and it’s better to know well about a few things than knowing too little about too many things.

As part of the campus life what should one look forward to at MDI other than the academic rigour? I would say the introduction week, the various academic and activity clubs, competitions, the amazing exchange program and of course the parties. I think the best part is staying on the campus and being a part of all these activities.

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MBA BUZZ

“The bonding between batch mates and the relationship we share with our seniors at XLRI is unique.” …..says Sandeep H.S, who is currently doing his MBA from XLRI Jamshedpur. He has done his B. E in Electronics and Communication from R.V. College, Bangalore. His interests include music and he has been professionally trained in veena, dramatics and movies. In conversation with Reshma Majithia, he talks of his decision to do an MBA

Tell us something about yourself. This is, in fact, one of the most frequently encountered questions in various interviews. I am a fresher. I am a B.Tech in electronics and communication from R.V.College of Engineering, Bangalore. I am interested in music and professionally trained in veena, dramatics and movies. And Before I proceed on any question further, I take this opportunity to thank Mr.Ganesh Prasad Sir, VA faculty, IMS Bangalore. Without his guidance I would not be writing this article. I would also like to thank Somalatha madam, for her confidence and giving me a golden chance of joining IMS after proving my potential in one of the events conducted in my college.

MBA, though I was not too sure when to take it up. I wanted to work for a couple of years and then go for an MBA. But later things changed. I took the CAT and XAT for the feel of exams. I got good percentiles and calls from XLRI, Jamshedpur to both of its programmes that’s

What led you to do an MBA and why did you choose XLRI? There were various occasions in my engineering college where I led teams. I read many books on management and related subjects. I got hooked and soon, I decided that I wanted to do an

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MBA BUZZ BM and HRM, along with a few IIMs. I cleared XLRI-BM and HRM. Based on my interests and the inputs from my seniors, I decided to take it up. And I am very happy I made that decision. Also, XLRI is the oldest business school in the country with a very rich alumni base. These factors reinforced my decision of joining XLRI. How was your experience at XAT? Where did your weaknesses lie when you started preparing and how did you overcome them? XAT is the toughest exam one can face. It is a paper which can be termed as the ‘mother’ of all exams. The trend has remained the same for a few years now. So the strategy should be to first solve all the questions that you are sure of. By doing so equally in three sections ensure that you clear cut-offs. Then the natural focus has to shift to maximizing right attempts in any section of your strength. How is your life at your B-school? Did you have work experience when you joined this B-school? Life in a B-School is an experience one has to go through. It can never be stated or explained. However in XLRI, the culture that we have, the bonding between batch mates and mostly the help, support and relationship we share with our seniors is unique and I am sure not many schools can boast about these experiences. The faculty is very rich in experience and knowledge. We are lucky to have them teaching us, and the ratio of

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faculty to students is probably the highest in the country. Academically, this is unparalleled and, as I have said earlier I don’t have any work experience. Tell us about your GD/PI experience? Given that this article is being published when most of you have given your exams, I would take this opportunity and stress more on the path of your GD-PI preparations. The first thumb rule is “KNOW THYSELF”. Sit alone, preferably in front of a mirror, and try to gather every single incident in your life which you feel has changed you or made you think about something or has resulted in a behaviorial change. And now decide on why you want to do an MBA and what your future plans are. Go through a general set of most commonly asked questions and prepare your answers. Try practising this in front of a mirror and don’t forget to keep a track of your body language. Make sure you are dressed well for the interview. Read newspapers, watch debates on NDTV etc. These will help you form your view on various topics. Do you have any inspirational message for MBA aspirants? As I mentioned earlier, decide what you want to do in life. It’s never about placement records that you see. Have a view on what you want to do in life. And once you have decided, pursue it. I wish you all good luck in making it to your dream schools.

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MBA BUZZ

“ Systematic preparation is the key to success” ….says Akshay Patil, a B.Tech in Electrical Engineering from VJTI, Mumbai. He is currently doing his MBA from IIM Bangalore. He has worked

with

Reliance

Infrastructure

as

an

Assistant Manager for 22 months. He likes music and enjoys reading. In conversation with Reshma Majithia, he talks of his decision to do an MBA.

Tell our readers a bit about yourself? My name is Akshay Patil and I am currently a first year student of PGP at IIM Bangalore. Prior to joining IIM Bangalore, I worked for 22 months at Reliance Infrastructure Mumbai as Assistant Manager. I am an electrical engineering graduate from VJTI, Mumbai and love reading and music. When and why did you choose to do an MBA? During my third year at engineering, I discussed my career with my teachers, seniors and parents. I realized that just having a bachelor’s degree was not enough and I need to have a post graduation degree. At that point of time, there were two options in front of me, MS or MBA. After evaluating the options and assessing my aptitude, I realized that MBA suited me more. My job experience strengthened the urge to go for MBA. What were your weakest areas when you started preparing for CAT? How did you work on and around those? Since I had decided to go for an MBA during my third year, I joined a long-term coaching institution for entrance preparation. Being good with numbers and logic, I was comfortable with Maths and DI. The English section was my weak point. To be honest, coaching did not help me much in English and I needed to put in extra efforts. I realized it too late during my first attempt at CAT and missed cut-offs due to English. I then decided to prepare for a year and gave special attention to English. I started reading editorials of The Hindu and Times of India regularly and summarized them. This helped immensely in improving my comprehension skills. For grammar, I used the IMS handbook and, trust me, if you prepare from that diligently, grammar questions become a cakewalk. I practised for the verbal

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section from previous CAT papers and IMS simcats. That helped in time management and fine-tuning of strategy. Do you believe that there is any one strategy that is bound to work for all aspirants? According to me, strategy varies from person to person and also from paper to paper. An individual might choose a strategy that best suits his strengths and likings. One must keep in mind that one’s strategy should be such that one is able to complete the paper to the best of their abilities. As the paper pattern changes, strategy might have to be reviewed as what works for 3 individual section papers might not work for 2 jumbled section papers. What was your general experience in the GD-PI rounds? In GD-PI, the interviewers want to understand how wellinformed a person you are. In order to prepare for GDPI, one must be up-to-date about what’s happening in the world, revise the graduation curriculum, basic knowledge about culture, history, environmental issues and if you have work experience then the knowledge about your sector. One needs to just relax before GD or PI. Think with a cool head and speak confidently. In case you don’t know the answer to a question, it’s better to admit it rather than blurting out something. Finally, what would be your advice to those who wish to get into an IIM? Just be focused and concentrate on the job at hand. Go step by step and channelize your energy one step at a time. Remember, systematic preparation is the key to success. Practise more, be it the mock tests or the simulated GD’s or PI’s. Believe in your abilities and success will be yours. www.advancedge.com


FINANCIAL DYNAMICS

Earn While You Learn Today’s youth aims at getting financial independence at a very young age as they enter the job market by taking up summer or part-time jobs. Initially, parents used to fund the entire education and students took up jobs after completion of higher studies. But now, students are taking financial responsibilities and sharing the financial burden with their parents. Earning while learning is more popular in the West but due to the rising cost of education and living expenses, the trend is slowly picking up in India too. Here, MBA students can avail of the summer or winter internships while pursuing their coursework. Besides the financial independence, summer internships can also add to their work experience. Students work as interns in different companies and take up the profiles in which they would like to make a career in the long run. It helps them to understand how real organizations function and acquire skill sets such as communication or general management, which will help them when they take up full-time jobs. On campus many students also try to explore their entrepreneurial avenues or start small businesses, which they can later on manage on a full-time basis. Priya Gokani

S

ome of the interesting business opportunities sported by B-school students while they are on campus are recycling household waste, selling scented candles, making solar lamps, manufacturing and supplying wind turbine components, starting a job portal or a food joint on the campus itself, starting tiffin services, cultivation and processing of medicinal plants, starting a gaming site, manufacturing customised puja kits. Starting a business while pursuing the course is beneficial for students since they can get guidance from the institute. Some of the institutes mentor students’ ventures by evaluating their ideas, helping them in making a business plan and implementing those ideas. Let us get an insight into summer, winter and autumn internships in Indian B-schools and how students can start their entrepreneurial venture while they are studying. www.advancedge.com

Summer Internships Students in B-schools start their summer internships after the first year of the course. In the first year, students study different subjects such

as Marketing, Finance, Economics, Organizational Behaviour and Information Technology as part of their curriculum and in the second year, they take up specialized courses.

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MBA BUZZ

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MBA BUZZ

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FINANCIAL DYNAMICS Summer internships are a good break from their curriculum. They get into organizations, take up roles and responsibilities and acquire experience in the sectors which they aim to enter in their final placements. The internship acts as a transitional phase between the first year and the second year, offering students a chance to bridge the gap between theory and practice. They intern for 6-10 weeks in a company and the internship period may differ among various institutes. The summer internships process starts in October and finishes by November, December. Summer internships are important for the B-schools since they are indicators of how good the final placements will be for the institute. They help in building and strengthening the institute’s reputation; the latter can get the feedback from the industry to improve the curriculum. For companies, summer internships are the means to engage students in some productive short-term assignments as well as evaluate them for the purpose of giving them pre-placement offers. Last year, students of IIMs and other leading B-schools interned in companies representing different sectors like BFSI and Investment Banking, FMCG and Pharma, Consulting, IT and Telecom, Conglomerates, Media, Real Estate and PSUs, Operations, Manufacturing and General Management. The highest stipend for some institutes was Rs 1,00,000 and for many others it was Rs 1,50,000 and average stipend was around Rs 40,0000 - Rs 50,000. Key recruiters were J.P.Morgan, CitiGroup, Morgan Stanley, HUL, P&G, PriceWaterHouseCoopers, Deloitte, ICICI Bank, HSBC, Reliance Industries, TCS, Wipro and ITC. Students had taken up internships

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in Investment Banking, Consumer/ Wholesale Banking, Derivatives Trading, Financial Consulting, Research and Treasury, Sales and Marketing, IT, Branding, Market Research, Business Analytics, Service Management, New Product Development, Marketing Research, Competitive Analysis and Software Operations. Some of the students interned in new domains like social gaming, advertising, rural finance, governance and public policy formulation, sustainability planning and carbon crediting. Winter/Autumn Internships Some of the B-schools offer Winter or Autumn Internships and not the Summer internships. For instance, S.P.Jain Institute of Management Studies & Research, Mumbai, sends its two-year full-time PGDM participants for social projects with NGOs during the summers. This is an integral part of Development of Corporate Citizenship (DOCC). Hence, it has pioneered the concept of Autumn Projects, where participants undergo compulsory corporate internship during the months of September & October in the second year of the programme. The Autumn Projects concluded for the Class of 2012 in the month of August this year. The institute attracted premier companies from diverse sectors

such as Financial Services, IT, Investment Banking, FMCG, Private Equity, Manufacturing, Healthcare and Pharmaceuticals, Media and Consulting. Some of these included TAS, Microsoft, HUL, P&G, Nestle, Intel, J&J Consumer, Colgate Palmolive, Citibank, General Electric, HT Media, GSK, Reckitt Benckiser, JP Morgan, Miebach Consulting, Pepsi and Wipro Consulting. There were 14 new companies making offers on campus too: JM Financial, McKinsey, Flipkart, L’Oreal, Britannia, Aditya Birla Group, HSBC among others. IIM Shillong had offered winter internships for its first batch but later on shifted to the traditional summer internships since there was a difference in the projects offered in winter and conventional summer placements. Department of Management Studies, IIT Delhi offered Winter Internships 2010 which was supplementing the more traditional summer internship placements. It provided a unique opportunity to participate in an additional internship-process for one-and-a-half month duration during December-January. Around 24 companies visited the campus and they offered a wide variety of profiles to students. Some of the leading recruiters were Tata, Ranbaxy, NIIT, Deloitte, HP, Nikon and Punjab National Bank. At NITIE, students www.advancedge.com


FINANCIAL DYNAMICS Initiatives taken by B-school Entrepreneurship Centre Institute’s Entrepreneurship Centre Initiatives IIM Ahmedabad - Centre for Innovation, Incubation 1) iAccelerator is an incubator of internet and mobile startups in India, and Entrepreneurship, which comprises of faculty, 2) Power of ideas - Develop a stronger entrepreneurial ecosystem, alumni and students of IIM A, mentors and 3) Discover STARS to support the national innovation eco-system, services providers from the industry who span a 4) Mentoredge - To provide hand-holding, mentoring and networking variety of functional areas, sectoral domains and support to innovative start-ups, 5) Cleantech Incubation - Provide geographies and are passionately committed to an ecosystem to aspiring energy entrepreneurs, 6) INFUSE Capital helping innovations and aspiring entrepreneurs - An early stage fund focused on sustainable energy, 7) Seed Funds succeed commercially.

- Manages incubation funds in excess of Rs 10 crores investing in

seed-stage start-ups across technology sectors. IIM Bangalore - NS Raghavan Centre for The NSRCEL has a clearly defined incubation process which helps Entrepreneurial Learning (NSRCEL) for seeding, entrepreneurs to realise their ideas, management programs for nurturing and promoting entrepreneurship

women entrepreneurs, Entrepreneurs and Family Business and

also has NSRCEL Eco-system Summit. IIM Calcutta - Entrepreneurship Cell which focuses The cell organizes i2i - Ideas to Implementation, an international on nurturing the entrepreneurial spirit among the Business Plan Competition, the largest of its kind in Asia. leaders of the future generation. IIM Lucknow - Centre for Entrepreneurial Venture Centre for Entrepreneurial Venture for developing collaborative and Innovation and Incubation Centre

linkages with top U.S. universities and other international bodies to further the cause of Entrepreneurship. Innovation and Incubation Centre is set up with the purpose of providing support and necessary facilities for students to take forward their entrepreneurial ideas into

workable business plans. IIM Kozhikode - Entrepreneurship Cell (E-Cell) is B-Plan Contests: Intra & Inter College, organize entrepreneurship primarily responsible for fostering entrepreneurship related seminars, conducting entrepreneurship workshops, VC amongst

students

and

assisting

budding interaction with students, participating in entrepreneurship and

entrepreneurs by providing them with necessary technopreneurship events and conferences across the country, resources.

inform students about upcoming business contests and help them with the same, interact with entrepreneurship cells and incubation

centers of other colleges. IIM Indore - Entrepreneurship Cell is committed to Consulting for small businesses, start-up weekends, luncheons, encouraging, motivating and crystallizing new and industrial visits, entrepreneurship summit innovative ideas from the campus. IIM Shillong - i-Cube the Entrepreneurship Cell is B-Plan contest, mentorship cell, lecture series a group of passion driven individuals who dare to dream, think big and create their own pathway to success. It aims to create a common platform for all aspiring entrepreneurs in general and those of the north-east India region in particular. ISB Hyderabad - Wadhwani Centre

for Planning an Entrepreneurial Venture (PaEV), Make as Much

Entrepreneurship Development (WCED) and PGP as You Can where each team gets start-up money, which projects, which offer comprehensive guidance to needs to be returned by all teams at the end of the programme, potential entrepreneurs among the students from Entrepreneurs Development Initiative (EDI), Experiential Learning idea evaluation to enterprise creation Programme(ELP)-Student Entrepreneurship Project (ELP-STEP). MDI Gurgaon - Center for Entrepreneurship An enterprise development track or concentration, a five course (CFE) which provides a variety of services, on a curriculum (for specialization), teaching/counseling by successful non-profit basis, to encourage, plan for and link entrepreneurs, external networking programme to link students to up entrepreneurs, firms, and organizations in affinity groups in the region, student Business Plan Competition with India and abroad for training students, providing awards, student Entrepreneurship/Internship program and an MDI facilities and networking to entrepreneurs under an Student Venture Fund. Outreach Programme. www.advancedge.com

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FINANCIAL DYNAMICS Institute’s Entrepreneurship Centre Initiatives SJMSOM, IIT Bombay’s E-Club which looks E-Club provides business services like market research, financial to augment and complement the efforts of IIT analysis, strategy consulting etc. to the start-ups at SINE, aspiring Bombay’s e-cell in its mission of igniting the entrepreneurs within and outside IIT B. entrepreneurial spark in the student community and Entrepreneurship-Garage (E-Garage) - A collaboration of E-Cell, SINE and SJMSOM, IIT Bombay VGSOM, IIT Kharagpur – Entrepreneurship Cell Guest lectures, business plan workshops, case study workshops, is a non-profit student organization, dedicated to knowledge camps, patent workshops are conducted throughout the cause of promoting entrepreneurship among the year to involve students in activities that are essential to an students.

entrepreneur. E-Cell also actively incubates start-up ideas by linking the right investors with the right entrepreneurs. Entrepreneurship Cell has two annual flagship events: Global Entrepreneurship Summit and

Entrepreneurship Awareness Drive. S.P. Jain Institute of Management & Research The Entrepreneurial Manager (TEM) course highlights the (SPJIMR), Mumbai - Centre for Entrepreneurship knowledge, skills and attitude needed to exercise general manager Development

responsibilities as an entrepreneur, Managing New Business Initiatives (MNBI) is an elective course that brings student teams in close proximity with entrepreneurs, working for their enterprises. Start Your Business (SYB) Programme is an entrepreneurial education programme that serves the needs of budding entrepreneurs who are keen to start a sustainable business. Grow Your Business (GYB) is a management development program for first generation entrepreneurs facing the challenges of rapid growth.

take up winter internship project after their final recruitment in the second year. It provides an opportunity for the fresh recruit to know his organization better and the recruiter to assess the new employee. It helps the student in smoother transition from the institute to the industry. The project spans two quarters and accounts for 12 credits. Entrepreneurial Venture In the last few years management students have been setting up

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Advanc’edge MBA November 2011

their own ventures. They start a wide range of conventional and unconventional ventures. This provides them twin benefits of making some money and laying a foundation for a business venture which they will later on operate on full-time basis. B-schools have their own entrepreneurship centres, which provides support in terms of mentoring, conducting workshops, seminars, designing business plans, getting support from venture

capital and angel investor networks across the country. Through this centre, students give shape to their entrepreneurial ideas while they are on campus and turn them into successful business ventures. The table above provides a snapshot of initiatives taken by Entrepreneurship Centre of the leading B-schools in India. As observed, most of the B-school entrepreneurship centres conduct several workshops, contests, management development programmes, networking platforms, seed funding which will help students to start their own business. Some of the institutes also provide an option of ‘Placement Holiday’ wherein a student can opt out of placements and start a venture and avail of the placement facility at a later date, if they need it. Internships or starting a business venture will not just provide money to students while they are studying on B-school campus but also provide them exposure to the field in which they would like to make their long-term career. www.advancedge.com


FINANCIAL DYNAMICS

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REGION FOCUS

B Schools in NCR

The National Capital Region (NCR) was a concept that was developed in the 1960s with the idea of bringing Delhi and its surrounding regions which were a part of other states, into a unified metropolitan region. The central and state governments have made heavy investments in infrastructure development to encourage business and industry ventures in this region. As a result, the employment numbers have gone up significantly. Plenty of opportunities have been created in sectors such as IT, infrastructure, telecommunication, manufacturing, automobile, agro-based and non-agricultural industries. This is a key reason why many management institutes of Northern India have chosen this region as a base or to have campuses.

Serena Kallian

T

he National Capital Region (NCR) was created to reduce the population pressure in the National Capital and distribute development in infrastructure over a wider area. The NCR includes: National Capital Territory (NCT) Delhi, a major portion of Haryana including Gurgaon, Rohtak and other areas, Dehradun from the state of Uttarakhand, parts of Uttar Pradesh like Ghaziabad, Meerut, Noida and Greater Noida and Alwar from Rajasthan. Benefits The major benefit of this region is the extensive economic and industrial development witnessed in the last few years. The central and state governments have also invested in infrastructure development to encourage

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business and industry ventures in this region. The employment figures have risen significantly (as a result). There are plenty of opportunities in the IT sector, Infrastructure, telecommunication, manufacturing, automobile, agro-based and non-agricultural industries. This may also be the reason why many management institutes of Northern India have chosen this region as a base or to have campuses in the satellite region. Looking at the Gross Domestic Product and the Gross State Domestic Product (GDP), one can understand what it has to offer. The NCT and the other NCR states hold a major position of importance in the Indian economy. It is claimed that about 20% of the Indian gross domestic product (GDP) contribution comes from this region. States can be ranked merely on the basis of GDP share and NCT Delhi figures

13th on the list which boasts of giants like Uttar Pradesh, Maharashtra and Rajasthan according to industry reports. All this, despite its smaller area. Haryana forms a major part of the NCR along with Delhi and both witnessed intense economic activity during the 2007 period i.e. before the global downturn. The economy of NCT Delhi alone is primarily a nonagricultural economy, with almost 99% of its GSDP, being generated by activities in the industry and service sectors. For the states, which have contributed there territories to the NCR, agriculture contributes a substantial figure to the GSDP, taking it much above the national average while only 1/4th of the GSDP in these states come from industry activities. The contribution from the service sector does not, however, cross the national average figures in this region. www.advancedge.com


REGION FOCUS Apart from the benefit of the boom in the services and industrial sector that presents several career opportunities to budding managers, institutes enjoy its proximity to several central government organizations and corporate head offices located, primarily, in Delhi, Gurgaon and Noida. Participants from some of the prominent institutes get opportunities to do live projects from these government and corporate organizations. The management programmes offered in few of the institutes in the NCR are relatively less expensive as compared to the other region. Thus the return on investment is certainly an attractive aspect here. For instance, the two year full-time MBA programme from the Faculty of Management Studies, Delhi has a tuition fee of Rs 10,480, which is claimed to be the cheapest in the country. DMS, IIT Delhi has a tuition fee of 1.1 lakh for all the semesters. IMI and IIFT charge a tuition fee in the 10-11 lakh range for the two years at the institutes. With many new campuses opening here the NCR has also been gaining popularity for its projection as the educational hub of the nation. Two out of the seven new IIMs - namely IIM Rohtak and IIM Kashipur

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have begun academic operations in the region. Types of Courses and Job Opportunities The management institutes prominent in the NCR are: Indian Institute of Foreign Trade (IIFT), Delhi, Faculty of Management Studies (FMS), Indian Institute of Management Lucknow, Institute of Management Technology IMT, International Management Institute (IMI), Amity Business School, Management Development Institute (MDI), Birla Institute of Management Technology (BIMTECH), Department of Management Studies (DMS) IIT Delhi, to name a few. The courses offered in most of them range from the general MBA to specialized management programmes specific to the institute. IMT Ghaziabad and MDI, Delhi offer special full-time programmes in human resources. The flagship programme at IIFT is different from the regular MBA because of its focus on trade and international business; the programme is called an MBA in International Business (IB). The management programme offered by the one among the nation’s older

IITs which is DMS, IIT Delhi, has had a strong focus on management systems. DMS also offers a special two-year fulltime MBA in telecommunication systems management under Bharti School of Telecom Technology and Management. And has a three-year part-time programme in Technology Management. Programmes like the Executive Management Programme and researchbased courses - fellow and the doctoral programmes are offered by all the institutes in the region. New Delhi the most prominent urban centre in this region is a leading job market in India. It has been known to generate a high rate of employment. The service, technology and the government sectors are the hot spots here. New Delhi is also known to house corporate offices of many leading companies across sectors like technology, media, publishing, manufacturing, oil and gas. Both Gurgaon and Noida these centres have become thriving IT/ITES corridors of the country. Many business process outsourcing units there have also given employment opportunities to the younger talent pool in and around the smaller towns.

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REGION FOCUS Indian Institute of Management, Lucknow, Noida (IIM-L) IIM Lucknow traces its humble beginnings to the year 1984; the institute was also the first in the IIM family to establish a satellite campus located in Noida. In the Business World B- school rankings IIM L was named No 2 in learning experience and International exposure and was ranked No 1 in the Outlook B- School rankings for Infrastructure. The institute offers a host of programmes such as the flagship Post Graduate Programme in Management (PGPM), Post Graduate Programme in Agribusiness Management (PGPABM), Post Graduate Programme in Business Management for Working Managers (WMP), International Programme in Management for Executives (IPMX), Fellow Programme in Management (FPM) and Management Development Programmes (MDPs). The Noida campus of the institute is focused towards improving executive education, thus catering to and attracting talent from a large population of the working professionals in the NCR region. Indian Institute of Foreign Trade, (IIFT, Delhi) The Indian Institute of Foreign Trade (IIFT) was set up in 1963 by the Government of India as an autonomous organisation to help make the country’s foreign trade management more professional and to increase exports by developing human resources conducting research, through

knowledge generation, analysis and distribution. The institute also has a campus in Kolkata and operates from Dar-es-Salaam for its flagship twoyear MBA in International Business. The other programmes offered here include the three-year part-time MBA (International Business) offered at New Delhi and Kolkata, Executive Masters in International Business and the Certificate Programme in Export Management offered at the New Delhi campus. IIFT recently entered into an agreement to set up a management institute like IIFT in Kampala, Uganda. This would be the first ever full -ledged campus overseas. Birla Institute of Management Technology, (BIMTECH) Birla Institute of Management Technology was founded in 1988 under the strong patronage and guidance of the Birla Academy of Art and Culture, and supported by Birla group of companies. BIMTECH which is located in Greater Noida, will soon have another campus in Bhubaneshwar, Orissa. The academic sessions are expected to begin in 2012. Presently, the institute offers the following programmes at its NCR campus: PGDM courses in General Management (PGDM), PGDM Sustainable Development Programme, PGDM Insurance, International Business (PGDM-International Business), Insurance Business Management (PGDM- Insurance Business) and Retail Management (PGDM-Retail) and

Table of Prominent Schools in NCR Institute Programmes offered/Duration

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Fees in INR

PGDM- (IB- Sustainable Development Practices). The Centre for Research Studies conducts doctoral and postdoctoral programmes along with academic and industry-focused research. BIMTECH was also ranked among the top 10 Private B-Schools in the 12th Business Today – Nielsen Business School Survey - 2011 Faculty of Management Studies, (FMS, Delhi) The Faculty of Management Studies, Delhi, is part of the University of Delhi which in itself is well-known for its Economics, Law, Sociology, Commerce and Operations Research departments. FMS has been imparting management education for almost half a century now. It is famous for its illustrious alumni base in the region and also for its active campus life. Starting this year though, FMS would use CAT scores as its basis for admissions. Its flagship programme has been the two-year full-time MBA which has been integrated with the MBA in management services offered earlier as a separate programme. The courses offered at the institute include the part time MBA and the MBA in health care administration (part time), executive education programmes and the doctoral programme. Institute of Management Technology, (IMT, Ghaziabad) The Institute of Management Technology

Batch Profile for PGP

Pedagogy for PGP

Amity Business School, Amity University campuses in Noida, Lucknow, Jaipur, Manesar, Gwalior etc

MBA(2 yrs), MBA-3 continents (2yrs), MBAAgribusiness, MBA-Agriculture and Food Business, MBA-Biotechnology management, MBA-Education Management and many more courses

MBA (2,13,500 1st Information not Classroom Sessions, Workyear for non-sponavailable shops, Assignments, Projects, sored candidates, Internship 3,20,500 1st year for sponsored candidates

Birla Institute of Management Technology BIMTECH

PGDM in general management (PGDM) (2 yrs), PGDM Sustainable Development Program (2 yrs), PGDM Insurance (2yrs), International Business (PGDM-International Business)(2yrs), Insurance Business Management (PGDMInsurance Business) and Retail Management (PGDM-Retail) and PGDM- (IB- Sustainable Development Practices),PhD

PGDM-8.0 Lakhs, PGDM(I B)- 7.0 Lakhs, PGDM(R M)6.0 Lakhs

Advanc’edge MBA November 2011

Total students - 382, 40% Engineers, 21% from Commerce, 75% Freshers

Case Studies, Management Simulation Assignments, Presentation. Short-term Live Projects, Quizzing, Panel Discussion, Field Research work, Management games, Industry Visit, Meditation & Yoga, Exposure to team work www.advancedge.com


REGION FOCUS (IMT), Ghaziabad was established by the Dr. K. Nath Trust under the aegis of Lajpat Rai Educational Society in the year 1980. Apart from its location in Ghaziabad, IMT has campuses in Nagpur, Hyderabad and Dubai. IMT offers PGDM full-time and part-time programmes and a PGDM executive programme, which is for 15 months. According to the Outlook magazine 2008 rankings, IMT Ghaziabad stood as number 1 for its student exchange programme. The institute has both an outbound and an inbound exchange programme to build better business and cultural interactions. Erasmus Mundus, an educational initiative by the European Union, is an acronym which stands for European Community Action Scheme for the Mobility of University Students. IMT Ghaziabad became a signatory to the Erasmus Mundus agreement in 2009. It was also the first Indian management institute to do so.

for promoting internationally-oriented management education. Besides this, it has various other international linkages with bodies like World Bank, UNDP, ILO, UNCTAD, Asian Productivity Organization. The institute offers the following programmes apart from the flagship two-year full-time management programme: Post Graduate Diploma in Human Resource Management (PGDMHR) which is a two year full-time course, Executive Post Graduate Diploma in Management (Executive PGDM) having a duration of 15 months, Part-time Post Graduate Diploma in Management (PGDM) of three years duration, Fellow ship Programme in Management and the Ph.D. Programme. The institute also has an active student exchange programme with various European schools such as ESC Rennes, France, MIP School of Management France, Graz University Austria, IESEG School of Management and IDRAC Lyon, France.

International Management Institute, (IMI, Delhi) The International Management Institute which is located in the Qutab Institutional Area, Delhi traces its origins to the year 1981. IMI Delhi established in collaboration with IMI Geneva (now IMD, Lausanne). It is said to be India’s first corporate-sponsored Business School with sponsorship from corporate houses like RPG Enterprises, Nestle, ITC, SAIL, Tata Chemicals, BOC and Williamson Magor. It received UNDP assistance

Department of Management Studies, (DMS, IIT Delhi) DMS-IIT was established through an evolutionary process. The idea for management education in an IIT started circulating in 1963 after which Post Graduate Management education began in IIT Delhi in 1976 in what was then the ‘School of System and Management Studies’. It acquired the status of Department of Management Studies in 1993. Following a favourable feedback from the students, alumni and

industry, the Department of Management Studies launched MBA programmes in 1997. Today, the institute conducts a full- time MBA programme with a focus on management systems along with part time and doctoral programmes. Till today over its nearly three decades of existence, over 70 PhDs have emerged from the institute. Management Development Institute, (MDI, Gurgaon) The Management Development Institute was established in the year 1973 and is located on 37 acres in Gurgaon. The institute offers a host of management programmes: the flagship PGPM programme along with the National Management Programme, Part-time PGPM, Fellow programme in management, PGPM in Human Resource Management (2 years), School of Energy Management, PGPM in Public Policy and Management and PGPM in International Management. The institute is also involved in special executive development programmes for trainees, junior, middle and senior level managers in private, public, government sector and international agencies. They have a special course for the Armed forces personnel. The institute is consistently ranked among best in the country. In the Economic Times B-school rankings based on company preference, top 100 companies of the nation, ranked MDI as number 6.

Average Maximum Salary Salary in in INR INR

Major Recruiters

na

ABN Amro, ACC, Adobe Systems, Alcatel, American Express, Amway India, Apollo Tyres, AT&T, Aviva Life, Bajaj Allianz, Bennett & coleman, Bharti Enterprises, Birla Sunlife, Blue Star, BNP Paribas, British Airways, Business Standard, Canon India, Cll, Citi Bank, Citicorp, Coca Cola, Dabur, DLF, DSP Merril Lynch, Ernst & Young, ESPN Sports, Essar RPG, FCB Ulka, Fedders Lloyd, Frito-Lay India, GE Capital, GE Countrywide, Gillette India, Glaxo, Godfrey Philips India, Goodyear India, Grand Hyatt Hotel, Grasim Industries, HCL Comnet, HCL Group, HDFC Bank, Hewitt, Hewitt Packard, Hindustan Times, Holiday inn Worldwide, Honda Motors, HSBC, Hughes Software Systems, IBM, ICCI Bank, Indian Express, Infosys Technologies, ITC Hotels, Johnson & Johnson, JWT, Kimberly Clark, LG Electronics, L'Oreal, Lowe, Lupin Lab, Luxor Parker, Max New York Life, Insurance, McCann Erickson, Mckinsey & Co, Mercedes Benz, Microsoft, Modi Revlon, Morgan Stanley, Motorola, Nestle, NIIT, Nokia, Ogil & Mather, Pantaloon Retail, Parle India, Pepsico, Ranbaxy, Raymond Synthetics, Rediffusion DY & R, Reliance Industries, Reliance Telecom, Royal Sundaram Finance, Saatchi & Saatchi, Samsung India, SBI Life, Scotia Bank, Siemens, Smithkline Beecham, Sony India, Standard Charted Bank, Start India, Sundaram Calyton, Taj Hotel, Tata AIG Life, Tata Chemicals, Tata Power, TCS, Telco, Times of India, TVS Motors, UTI Bank, Vardhman Group, Wipro, Wockhardt, Xansa India Infosys, TCS Wipro, L & T, HCL, HDFC, Public Sector Banks, Zee Telefilms, SKF India, Tata Group companies, Marico, Future Group, Madura Garments, Aditya Birla Group,Godfrey Philips India Limited,Deloitte Consulting India Pvt. Ltd

na

4.66 Lakhs na

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REGION FOCUS Institute

Programmes offered/Duration

Department of Management Studies DMS IIT Delhi

MBA fulltime(2 yrs), MBA part-time, PhD, under 2 lakhs for two MBA in telecommunication technology years management (under the aegis of Bharti School of Telecommunication and Technology Management) MBA-Full Time(2 yrs), MBA-MS(2 yrs), MBA 10,480 per year Part time, PhD, MBA(HCA)

Faculty of Management Studies (FMS), Delhi Indian Institute of Foreign Trade(IIFT), Delhi

MBA International Business(2 years), Executive Programme EPGDIB(1 1/2 year)

IIM Lucknow & Noida

Post graduate programme in management PGPM-12 Lakhs, PGPM(2 years), Post graduate programme PGP-ABM-12 Lakhs in Agribusiness(PGP-ABM)(2 years), International programme in management for executives IPMX(1 year), Part time PGPM(3 years), Fellow programme(FPM)

International Management Institute (IMI), Delhi

Post Graduate Diploma in Management 10.7 Lakhs(PGDM) (PGDM) 2 yrs, Post-Graduate Diploma in Management (Human Resource) PGDM HR 2yrs, Executive Post Graduate Diploma in Management(Exec PGDM)15 months, Fellow programme, PhD, Part time PGDM programme 3 yrs PGDM Programmes in General, Finance, Fee structure not HR, IT, International Business, Dual Country updated Programme(2 years), PGDM Executive, PhD

Institute of Management Technology (IMT) Ghaziabad

Management Development Institute (MDI), Gurgaon

50

Fees in INR

Post Graduate Programme in management(2 yrs), National Management Programme, Part-time PGPM,Fellow programme in management, PGPM in Human Resource Management 2 yrs, School of energy management, PGPM in public policy and management, PGPM in International Management

Advanc’edge MBA November 2011

MBA IB-10 Lakhs, EPGDIB-2.55 Lakhs

10.95 Lakhs

Batch Profile for PGP Total students-98, 39% freshers, 12% female participants MBA-FTIntake 226, 42% Freshers, 205(total), 53% students with work experience.

373(total), Gender(85% male, 15% female), Age(23-25 yrs 58%), Freshers 9%, 2-3 yrs work experience 30%, 85% Engineers PGDM- Total number 114, 87% Engineers

Pedagogy for PGP Case studies, projects, internship, assignments

Classroom sessions, assignments, live projects, competitions, seminars, internship Case study, assignments, presentations, live projects, competitions, seminars

Case based teaching(around 700 cases), Assignments and presentations(over 150 presentations), projects, summer internship

Lectures, Case discussions, assignments, presentations, live projects and internship

Total Combination of case studies, 380(PGDM ) seminars, simulations and group 50% Freshers, projects. Two month internship 86% Engineers

PGPMTotal-236,82% work experience, 24% Female students

Lectures, case studies, seminars, 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 www.advancedge.com


REGION FOCUS Average Salary in INR 14.78 Lakhs

Maximum Salary in INR 25 Lakhs

15.4 Lakhs 26 Lakhs

11.6 Lakhs 15.51 Lakhs

na

na

9.5 Lakhs

18 Lakhs

8.63 Lakhs 15 Lakhs

13.5 Lakhs 21 Lakhs

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Major Recruiters American Express, Citibank, JP Morgan Chase, Nomura, SBI Caps, Vista Soft, eClerx, GE (FMP), Fullerton Securities, Gulf Bull Securities, Deutsche Bank, SMU's Cox, ICICI Bank, CRISIL, Yes Bank, IDBI, Parasuram Group, Max New York Life, Unicon Securities, SMC Capital, Protomac River Capital, P&G, Reckitt Benckiser, Johnson & Johnson, Marico, RPG, Bharti Wal-Mart, Mitsui, Japan Hero Honda, Larsen & Toubro, Yamaha, Hindustan Coca Cola Beverages, RPG, Perfetti Van Melle, Berger Paints, LG, Idea, Airtel, Vodafone, Tata Teleservices, Aditya Birla Group, Godrej Lifestyle, BASF, Stryker, PwC, Ernst & Young, Deloitte, IBM, Infosys, Genpact, Wipro, HP, Sun Microsystems, Polaris, DTZ, Saviance Technologies, Synergy, Siemens, Frost & Sullivan, Educomp, ITDC, IHM, HIT Labs, GE (IMLP), Glaxo SmithKline, DSCL, Jindal Steel, ONGC, DTZ, Xerox DM Agro, ECGC, Idea, Procter and Gamble, Trident Group, Avalon Consulting, Edelweiss Capital, IMRB, Perfetti Van Melle, Triton Group, Axis Bank, Emirates NBD, Dubai, Indus Valley Partner, Ranbaxy, Valency International, Bajaj Allianz General Insurance, GAIL, Infosys, Religare, Vodafone, Bajaj Auto, GATI Ltd, ITC Limited, RPG Group, Welspun Group of Companies, Ballarpur Industries, Genpact, Johnson & Johnson Medical, Rudra Energy, Wipro Eco Energy, Bharti Airtel Ltd., Godrej Industries Ltd, Jumbo Electronics, Samsara Shipping, Wipro Technologies, BHEL, Goodyear, Larsen & Toubro, SARA International, Yes Bank, Central Bank of India, H.T. Media, Louis Dreyfus, Shell, CITI Bank, HCL, Comnet, Madura Fashion & Lifestyle, State Bank of India, Cognizant, HCL Technologies, Mahindra & Mahindra, Swiss Singapore (Aditya Birla Group), Colgate Palmolive, Hero Honda, Metro Cash and Carry, Tata Capital, Corporate Executive Board, HP, Global Soft, MMTC, Tata Consultancy Services, Cummins Group, HP India Sales Pvt. Ltd, Murugappa Group, Tata Motors, Daimler India, HPCL, Nomura Holdings, Tata Steel, Deutsche Bank, HSBC, Olam International, State Trading Corporation, DHL, ICICI Bank, PEC, Titan Industries Ltd. Airtel, GSK Pharma, Nokia, Angel Broking, Helix Tech Solutions, Nomura, Arshiya International, Hewitt Associates, NTPC, Asian Paints, HSBC, ONGC, AVIVA, HT Media, P&G, Axis Bank, HUL, Pepsi, BASIX, IBM Daksh, Pfizer, BILT, ICICI Bank, Powergrid, Cadbury, IFCI, Reckitt Benckiser, Calyon, iGate, Rediff, Castrol, iMetanoia, SC Johnson, Centrum, IMS, SBI Caps, Citibank, Indofil, SCI, Dabur, Ispat Industries, Siemens Information Systems, DB - GMC, Jaypee, Siva Group, Deloitte, JRG Securities, Standard Chartered, Essar, Knight Frank, Suzlon, Everonn, Kotak Securities, TCS, FINO, KPMG, Thomas Cook, Fiscal Policy Institute, McKinsey, Titan, Four-S Services, Microland, Usha International, Futures First, Mindtree consulting, WeP Peripherals, GSK Consumer, NIIT, YES Bank (This is not an exhaustive list)

Bloomberg LP, Deloitte, Deutsche Bank, E&Y Global, Jumbo Electronics, Panasonic India, UB Group etc.

3M India Ltd, Absolut Data, ACC Ltd, Accenture Ltd, Adhunik Group, Agro Tech Foods Ltd, Amrop, Axis Bank Ltd, Bacardi India Pvt. Ltd, Bectochem Consultants & Engineers Pvt. Ltd, Bharti Airtel Ltd, Birlasoft India Ltd, Citibank N.A, Cognizant Technology Solutions, Crisil Ltd, Dans Energy Pvt. Ltd, DCM Shriram Consolidated Ltd, Deloitte Consulting, Deutsche Bank of India, Dr. Reddy's Labs. Ltd, Eclerx Services Ltd, Edelweiss Capital Ltd, Era Group, Ernst & Young, Executive Access, FINO, Futures First Info Services Pvt. Ltd, GE India, Godfrey Phillips India Ltd, Godrej Infotech Ltd, Goldman Sachs (India) Securities Pvt. Ltd, Goodyear India Ltd, H & M Hennes & Mauritz India Pvt. Ltd, HCL Comnet, HCL Technologies Ltd, HDFC Standard Life Ins. Co. Ltd, Hewlett Packard India Ltd, Hindustan Petroleum Corp. Ltd, HSBC Technology & Services, ICICI Bank, Idea Cellular Ltd, IMRB International, India Yamaha Motor Pvt. Ltd, Indian Oil Corporation Ltd, Indus Health Plus, Infosys BPO, Infosys Technologies Ltd, Innovative B2B Logistics Solution, Insta Group, InterGlobe Established Products Pvt Ltd, Jindal Steel & Power Ltd, John Deere India Pvt. Ltd, JP Morgan India Pvt. Ltd, Jumbo Electronics, Kellogg India Pvt. Ltd, L'Oreal India Pvt. Ltd, Mahindra & Mahindra Ltd, Make My Trip (I) Pvt. Ltd, Maruti Suzuki India Ltd, Mother Dairy, Mphasis Ltd, Panasonic India Pvt. Ltd, Pidilite Industries Ltd, Positive Moves India Consulting Pvt. Ltd, Procter & Gamble Ltd, PTC India Financial Services, Ramco Systems Ltd, Ranbaxy Laboratories Ltd, Reebok India, Religare Enteprises Ltd, Reserve Bank of India, SBI Capital Markets, SC Johnson Products Pvt. Ltd, State Bank of India, Tally Solutions Pvt. Ltd, Tata Capital Ltd, Tata Consultancy Services e-Serve Ltd, Tata Housing Development Co. Ltd, Telco Construction Equip. Co. Ltd, Thomas Cook, Towers Watson, Trident Group, UEM India Pvt. Ltd, United Spririts Ltd, Vedanta Resources, VIP Industries Ltd, Vodafone Essar Ltd, Wipro CCL, Wipro Infotech Ltd, Wrigley India Pvt. Ltd. Accenture, Asian Paints, American Express, Axis Bank, Bharti Airtel, Biocon, Castrol, Citigroup, Coca-Cola, Cognizant, Dabur, Deloitte, Godrej, Goldman Sachs, Hindustan Coca-Cola Beverages (HCCB), HP, HSBC, ICICI, ITC, JP Morgan Chase, Mahindra & Mahindra, Nomura, Procter & Gamble, Pepsi, Philips, Ranbaxy, Madura F&L, RBI, Religare, SBI Capital, Standard Chartered Bank, Videocon and Yes Bank

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REGION FOCUS Student Silhouette

“In the matter of an MBA, location has its pros and cons. I shall go where opportunity takes me.” Tell us about your reasons for choosing IIFT as the MBA destination? IIFT was always on my radar and when I researched about the career prospects of doing an MBA from the institute, it worked for me. I had attempted CAT earlier but my score did not yield any calls the first time. In my second attempt at the entrances I converted calls from IIFT and TISS. I chose IIFT because of its academic rigour (we do 8-9 and sometime 13-14 subjects in a semester) and the options it offered me in trade and business. Apart from that its emphasis on corporate social responsibility and opportunity to do projects from non-profit /non-government organizations was appealing. What are your plans post MBA (IB)? I have opted for a specialization in Finance and hope to zealously pursue a career in it, too. I have kept my options within finance open but I would prefer a role in Corporate Finance. I also did my summer internship at GE in Corporate Finance. The experience has helped me focus on particular interest areas.

Abhishek Deo, a second-year student at the Indian Institute of Foreign Trade, Delhi has a background in Electronics and telecommunications from Vellore Institute of Technology. He completed his engineering in 2009 and joined Tata Consultancy Services for a brief stint. In 2010 IIFT beckoned. His varied interests include reading, blogging and sports. Abhishek Deo in an interview with Serena Kallian.

What, according to you, are some of the benefits of studying at IIFT and Delhi? IIFT established in 1963 it has always had a good association with government, corporate and non-government organisations. It has a well-networked and illustrious alumni base that has been of great help to young graduates. In terms of its location (Delhi), its proximity to various satellite cities around and so many corporate head offices, gives us a host of opportunities at hand. Being a part in the nation’s capital gives us plenty of projects to do with government offices and NGOs. IIFT comes under the Department of Commerce, so getting live projects is easier. We have had projects from RBI; WTO also maintains a centre on the campus. I did an assignment with the Ministry of Renewable Energy. So, many central and private organizations float their live projects in the institute. Getting these projects is not easy because they tend to have entry level barriers, which have to be cleared. After the selection, you are assigned a project mentor and a guide. I would say getting in is just the start. How was your experience at the selection rounds of the institute? The written test here is known to spring surprises every year and, in my case, it was not very different. Generally, the test does not have any compulsory cut-offs but this was enforced

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Student Silhouette REGION FOCUS during my admissions. The sections are equally phased out and once you clear a shortlist is prepared for the GD, PI and an essay-writing assignment. At the GD, a topic is given and each person has to speak on it. Then each student is assigned the role of a moderator, this is not done in any particular order. My interview did not last more than 10 minutes but I was asked a lot of questions. Since I had only 4 months of work experience I was considered a fresher. Most of the questions directed at me were based on my academic background and knowledge. I was also asked about my family, the general HR questions and my reasons for switching from engineering to an MBA. Do you see yourself working in the same city? Do you think location matters when it comes to pursuing an MBA? I am from Jharkhand, I pursued my B Tech from Vellore, worked in Bangalore for a while and now I am in Delhi, so I don’t think I would restrict my location for employment. I shall go where opportunity takes me. Whether location matters when it comes to an MBA, I feel it has its pros and cons. Most management institutes are located in, and in close proximity to, industrial belts and each region has its benefits. If an institute is located in an isolated place then enabling good industry relations and gaining exposure may become difficult, but not impossible. Anything you would like to tell future aspirants for instance how they should prepare themselves for the selection rounds? IIFT focuses on basic and fundamental concepts. During preparations we tend to practise a lot of questions and problems but forget simple facts and basics. Reading is a very important habit, so cultivate it. As part of the campus life what should one look forward to, at IIFT? There are a lot of activities that one can look forward to. Our classes last from 9-5 pm but actual work begins later. We are usually given assignments on a daily basis, so that involves a certain amount of work. If you are part of the various club activities then each of these sessions happens in the night. All this leaves you with very little time to study and, more importantly, sleep. All this may not sound like fun on paper but it certainly is.

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WORLD VIEW Current Affairs

iLearn from

Steve Jobs Today, millions are paying tribute to Steve Jobs, one of the most influential CEOs of our generation. There is a lot we can say about him. His personal life, his innovations (or should we say imovations: Imitation + innovation), or Steve Jobs the tyrannical boss who had a laser-like focus and demanded the same from his employees. Malav Parekh

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ne day a scruffy young man who lived next door and walked around barefoot in torn Levi’s came over to Tankersleys, a school principal and his homemaker wife, and invited them to his garage. They didn’t know the boy much, except for the fact that he had been recently to India to ‘find himself’. The Tankersleys went to his garage and he proudly showed them a shabby-looking box. They asked him what it was and he triumphantly said, “Well, this is going to be a personal computer.” Tankersley’s wife, JoAnn, asked what she could do with it. The youngster said, “You can put your recipes on it. You can pull them up immediately,” to which she responded, “I like my card recipes!” Little did they know that this scruffy young man — Steve Jobs — will take such abject rejection of his project as the source of motivation for everything he will ever create — to keep end-user convenience as the single biggest focus of every product designed by Apple. “People often think they want something until they get shown an alternative they never thought possible,” he said. Today, millions are paying tribute to Steve Jobs, one of the most influential CEOs of our generation. There is a lot

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we can say about him. His personal life, his innovations (or should we say imovations: Imitation + innovation), or Steve Jobs the tyrannical boss who had a laser-like focus and demanded the same from his employees. We will talk about all of that, but with a Steve-like focus on what made Jobs click. It was his refusal to accept defeat. If we consider his life as a game of football, he would be the team that eventually lifts the trophy despite being 3 goals down into the final 10 mins in every match. Even as the most powerful man in the world of technology, he was the ultimate underdog. From dropping out of college, to starting Apple in his garage, to getting ousted in 1985 from the very company he built, to coming back in 1997 and taking Apple from the brink of bankruptcy to the largest tech company in the world, Steve changed the world in more ways than one. He was a billionaire who said, “Being the richest man in the cemetery doesn’t matter to me. Going to bed at night saying we’ve done something wonderful - that’s what matters to me.” Here are some incidents, besides the one mentioned in the beginning, that made Steve Jobs who he really was.

iBirth Jobs’s biological father, 80-year-old Syrian Abdulfattah “John” Jandali, now working and living in Nevada, immigrated to the US in 1952, where he earned a PhD in Political Science from the University of Wisconsin in 1956. He met and fell in love with American Joanne Schieble, now known as Joanne Simpson. A boy was born out of wedlock and given up for adoption. Simpson’s father would not agree to his daughter’s marriage to a young Syrian. But after the father’s death the couple married, and another child was born, a girl named Mona. A few years later they divorced, and Mr Jandali had little if any contact with his ex-wife. By then their son was in the care of a new family, a working-class couple — Clara and Paul Jobs — who had promised that the boy would be given a good home and a university education. Jobs went on to make peace with his biological mother, but he never reconciled with his father. iDropout After graduating high school in 1972, Jobs enrolled at Reed College in Portland, Oregon, but he dropped out after only one semester because his education was eating into his adoptive parents’ retirement fund. www.advancedge.com


Current Affairs WORLD VIEW

iSpiritual In 1973, as a penniless college dropout, he would walk 12 kms every Sunday to get a free meal at the Hare Krishna temple, where he was first introduced to Indian spirituality. In 1974, Jobs took a position as a video game designer with Atari. Several months later he left Atari to find spiritual enlightenment in India, traveling the country and experimenting with psychedelic drugs. The trip marked a turning point in his life. In his own words, it helped him realise that “Thomas Edison did a lot more to improve the world than Karl Marx and Neem Karoli Baba (the guru he was seeking, who died before they could meet) put together.” He returned disappointed, following a brush with lice, scabies, dysentery, thunderstorm and a near mob thrashing after he protested at being sold watered-down buffalo milk. As Kottke, his friend who accompanied him to the disastrous trip, narrates in Jobs’ biography iCon, “I remember us praying to any god that could hear us, ‘Dear God, if I ever get through this, I’ll be a good person, I promise’.” www.advancedge.com

iApple In 1976, Steve Jobs, Steve Wozniak and Ronald Wayne, along with Mike Markkula Jr., founded Apple. Jobs and Wozniak had been friends for several years, having met in 1971, when their mutual friend, Bill Fernandez, introduced 21-year-old Wozniak to 16-year-old Jobs. Steve Jobs managed to interest Wozniak in assembling a computer and selling it. The first personal computer was sold for $666.66. By 1980, Apple had already released three improved versions of the personal computer. It had a wildly successful IPO, which made both founders millionaires many times over. In 1983, Steve Jobs lured John Sculley away from Pepsi-Cola to serve as Apple’s CEO, asking, “Do you want to sell sugar water for the rest of your life, or do you want to come with me and change the world?” iFired Many in Apple hated Jobs’ obsession with being in charge of everything. His employees from that time had described him as an erratic and temperamental manager. An industrywide sales slump towards the end of

1984 caused a deterioration in Jobs’ working relationship with Sculley, and at the end of May 1985 — following an internal power struggle and an announcement of significant layoffs because of disappointing sales at the time — Sculley relieved Jobs of his duties as head of the Macintosh division. Jobs later claimed that being fired from Apple was the best thing that could happen to him. “The heaviness of being successful was replaced by the lightness of being a beginner again, less sure about everything. It freed me to enter one of the most creative periods of my life.” iPixar Out of Apple, Jobs founded NeXT Computer, whose pricey, cubeshaped computer workstations never caught on with consumers. During the 10-year hiatus, Jobs had more success when he bought Pixar Animation Studios from George Lucas before the company made it big with Toy Story. Jobs brought the same marketing skill to Pixar that he became known for at Apple. His brief but emotional pitch for Finding Nemo, for example, was a masterful bit of succinct storytelling. Advanc’edge MBA November 2011

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WORLD VIEW Current Affairs iBack In 1996, Apple bought NeXT, returning Jobs to the then-struggling company he had co-founded. Within a year, he was running Apple again — older and perhaps wiser but no less of a perfectionist. And in 2001, he took the stage to introduce the original iPod, the little white device that transformed portable music and kick-started Apple’s furious comeback. In 2002, the company entered the high-end server market with the XServe. They also fought hard to catch up with the speed performances of the Wintel platform, and in June 2003, they unveiled the G5, a new chip they had developed with IBM that they claimed was the fastest in the world. iSick In 2003, Jobs discovered he had a neuroendocrine tumour, a rare but operable form of pancreatic cancer. Instead of immediately opting for surgery, Jobs chose to alter his pescovegetarian diet while weighing Eastern treatment options. For nine months Jobs postponed surgery, making Apple’s board of directors nervous. Executives feared that shareholders would pull their stocks if word got out that their CEO was ill. But in the end, Jobs’ confidentiality took precedence over shareholder disclosure. In 2004, he had a successful surgery to remove the pancreatic tumour. True to form, in subsequent years Jobs disclosed little about his health. iMac... iStrong The biggest move by Apple was announced in June 2005, at Apple’s annual developers’ conference. The company had just finished its complete transition to OS X after the release of Mac OS X 10.4 Tiger, which was adopted by a very large majority of Mac users. That day, Steve Jobs came on stage and announced to a stunned audience that Apple was going to switch away from IBM to using Intel processors in their Macs. The move to Intel was decisive in Apple’s fight against the Windows supremacy. Given his company’s

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growing momentum, Steve appropriately concluded his keynote address with the words: “Apple is strong”. iPhone With the introduction of the iPod portable music player, iTunes digital music software, and the iTunes Store, the company made forays into consumer electronics and music distribution. On June 29, 2007, Apple entered the cellular phone business with the introduction of the iPhone, a multi-touch display cell phone, which also included the features of an iPod and, with its own mobile browser, revolutionized the mobile browsing scene. iPad Steve Jobs finally introduced Apple’s much-anticipated tablet iPad on January 27, 2010. There were rumours about an Apple tablet even before there were rumours about an Apple phone, and for good reasons: the labs of Cupertino started working on a tablet years before they worked on iPhone. Then, on January 27, Steve Jobs finally took the stage and unveiled iPad to the world. The presentation was bare, almost

simplistic, with Steve sitting on a couch and demoing the device for most of his keynote. iResign In August 2011, Jobs resigned as CEO of Apple, but remained at the company as chairman of the company’s board. Hours after the announcement, Apple Inc. (AAPL) shares dropped 5% in after-hour trading. The relatively small drop, when considering the importance of Jobs to Apple, was associated with the fact that Jobs’ health had been in the news for several years, and he was on medical leave since January 2011. iLegacy Jobs was both admired and hated for his reputation as a hard-driving, mercurial and sometimes difficult boss who oversaw almost every detail of Apple’s products and rejected prototypes that didn’t meet his exacting standards. Jobs’ climb to the top was complete in summer 2011, briefly before he resigned, when Apple listed more cash reserves than the U.S. Treasury and even briefly surpassed Exxon Mobil as the world’s most valuable company. www.advancedge.com


SUCCESS STREET

Communicate Effectively “The way company personnel communicate with each other can make all the difference between efficiency and ineptitude, success and failure, making money or losing it.” Reshmi Majumdar

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s businesses have expanded globally and there is an intermingling of people of various cultures and languages, communication has assumed a great significance. It is vital. Organizations have adopted various communication strategies in order to successfully achieve their goals. We know that words have power, but when it comes to effective communication, mere words are not enough. There are various elements of communication, like body language and non-verbal communication. Nearly 95% of the communication is non-verbal. The movement of our hands, eyes and especially the tone of our voice convey a specific message. The most effective communication is in the person. While speaking with employees, individually or in teams, one should express respect, encourage participation and response and allow for instance an explanation and clarification of

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misunderstandings. Further, faceto- face communication allows for observation of feelings, reactions and interpretation of body language. S. Madhavan, manager in the service industry advises, “Be confident and use body language to support that confidence. Shake hands firmly, smile and make eye contact while communicating at live networking events. Remember to bring business cards and hand them out to everyone you meet.” Effective business communication means you should be a good listener. You need to give others a chance to speak and listening to them is very important. It is also important to think about what you are going to say before you say it. This means you need to be mo re conscious about how you use your words. This will allow you to be more effective also. Think about the message you want to convey, have with you enough information to support the message, anticipate the response

of the listener and choose appropriate words. Recognize communication filters: values, attitudes, experience, etc. Receivers interpret your message based on that filter. “The ability to communicate, and communicate well is one of the biggest factors in business success. You could be an excellent marketing manager”, says Madhavan “but if you are unable to promote your services and communicate effectively with clients and colleagues, your potential is limited”. Written communication, whether formal or informal, means records or documentation that may leave an important paper trail. Communication also works well when you practise preparing the other person, clarifying what you hear and that you are understood well, thinking before you speak and making sure that you are on the same page. In an organization, when you interact with your customers, negotiate with the suppliers, manage employees or address the public, how you communicate impacts the success of your company. Rakesh Choudhury of First GlobalSource thinks it is important to “summarize what was agreed, repeat questions that were raised and outline the next steps and responsibilities for both the parties”. A carefully planned and a competently executed business communication strategy bolsters your brand image clearly conveying to stakeholders what your company offers, what your brand stands for and how much better you deliver versus your competitors. Your company cannot exist for long if no one knows about it. Business communication broadcasts what and where you are, in a way Advanc’edge MBA November 2011

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SUCCESS STREET that sticks in a customer’s memory through innovative advertising. As customers become more comfortable with the products of your company, more and more business communication should involve fostering that relationship with your company and brand. Use proper business announcements to develop or change opinions, particularly with opinion leaders, who in turn can influence other consumers to try your company brand. Most businesses focus on advertising and marketing programmes but it is also important to address information distribution within the work force. Maintaining good communication throughout builds allegiance to the company among employees enabling managers to transmit corporate goal to staff and this staff, in turn, can provide feedback and innovations that facilitate effective management and create new products for the customers. Levels of communication: 1. Intrapersonal communication: Communication with oneself 2. Impersonal communication: Mass communication in which the message is directed to a large and diffused audience 3. Interpersonal communication: Individual-to -individual, individualto-group and group to individual. When in business, one of the main goals is to achieve reccurring sales and referrals. For this, the business owner needs to ensure the customer is happy with the service or the product being offered. A customer’s happiness can form an effective communication on the part of the business owners and associates. According to a marketing communication professor of a prominent mass media institute, “One way to maintain a long-term relationship with your clients is by keeping open lines of communication. This means asking them for their inputs on how things are going and how they feel about the service you are providing”. i. Be sure to have a clear picture of the message and then form an outline in your mind before words are spoken. Know exactly how you want to convey that message to your customer.

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It is also important to think about what you are going to say before you say it. This means you need to be more conscious about how you use your words. ii A good communication makes eye contact which makes it necessary to be looking at each other during communication. By speaking while in another room or with your back turned, the customer may feel unimportant which can lead to frustration between you and your customer. “If a problem with your client stems from miscommunication, try a different method of communication. If you have been handling everything through email, schedule a phone call to see if all things are clear. After the call you may summarize the conversation in an email to the email, which will provide another opportunity to get both of you on the same page” says Madhavi Sharma, Manager, Customer Services, in an IT Solutions company. iii Don’t let impatience get the better of you, especially when you communicate. As a good communicator, you will know the difference between being assertive and being aggressive (aggression merely gets people’s backs up). You should be able to keep a professional and impersonal tone in the face of provocation and this will help you deal with conflict situations. It will also help you set clear boundaries for acceptable behaviour, counsel those who overstep them and, if necessary, fire people while minimizing the risk of getting involved in litigation.

Being a good communicator will also help with your marketing. While you may not get closely involved with the design of your marketing materials, you will surely want to assess them. Honing your communication skills will help you determine which materials are appropriate and they will enable you to get clearer briefs. Effective communication also means being open. It’s useful to keep everyone updated on issues like production, finance, important new contracts or company performance against health and safety benchmarks. Some employees like to ration such information, as it sometimes contains bad news. However it is often better to have bad news out in the open in an appropriate manner than having it leak out at an inopportune time and in a way that is distorted by rumour. But being open does not mean being indiscreet. Where information is particularly sensitive, good communication involves identifying how to distribute information effectively on a need- toknow basis and deciding who needs to sign the confidentiality agreement. It also means being realistic about what can be kept under wraps. Public companies need to provide a lot of information as a condition being listed. Private companies need to divulge less information but a lot of information still gets leaked through many informal channels. For example: how much information have you picked up on your competitors through informal channels? Good business communication skills thus involve good PR skills. Knowing when and how to release information is an important way of maintaining your image with your team members, your clients and market in general. Nandini Malhotra of Creativservices, a Delhi based PR company points “a big part of marketing communication is being available to your target audience and following up with them when necessary. If you market your business through social media outlets-including Twitter, Facebook and Blogging- Keep an eye out for- and respond to- comments, questions and especially complaints. And when you are contacted as a result of offline marketing activities, respond quickly and professionally.” www.advancedge.com


Brand Wagon CORPORATE WORLD

Factors influencing successful brand extensions Organisations frequently follow brand extension strategies. This paper investigates the impact of category similarity, brand reputation, perceived risk and consumer innovativeness on the success of brand extensions in FMCG, durable goods and services sectors. A set of hypotheses were developed and tested in a study amongst 701 consumers. The findings show that extensions into categories similar to the original brand tend to be more readily accepted. Likewise, the reputation of the original brand is an important factor influencing the success of the extension. These findings are consistent across FMCG, durable goods and services brands. However, perceived risk about the extension category was only found to enhance acceptability of extensions for durable goods and services brands. Innovative consumers are more positively disposed towards service brand extensions than FMCG and durable goods brand. Dr Leif E. Hem

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aunching new products can be an attractive growth strategy, however this is not without risks. Some estimate that 30-35 percent of all new products fail while others are even more pessimistic, citing that only two out of ten new launches succeed. Due to factors such as high advertising costs and the increasing competition for shelf space, it has become more difficult to succeed with new products. An increasingly popular

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approach to reducing risk when launching new products is to follow a brand extension strategy. This is followed in as many as eight out of ten new product launches. Managers assume they can exploit the equity of a well-known brand when entering new markets, capitalising on recognition, goodwill and any positive associations. Case studies abound of successful brand extensions.

Given the importance of brand extensions, a better understanding of this topic is needed. Notable brand extension activity has taken place in services, for example, Virgin moving into radio stations, airline, financial services and bridal services. Likewise the Disney company, which in the 1950s signified world-class animation, has extended into services such as television, publishing, software, Internet portals, theme parks, hotels and cruises. A basic premise underlying the use of brand extensions is that stronger brands provide greater leverage for extensions than weaker brands. As can be seen in the widely noted definition of brand equity, brand strength has been articulated implicitly in terms of consumers’ predispositions towards the brand. In the context of brand extension research, brand reputation has been defined in terms of consumer perceptions of quality associated with a brand. It has been reported that high-perceived quality brands can be extended further and receive higher evaluations than lowperceived quality brands. Advanc’edge MBA November 2011

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CORPORATE WORLD Brand Wagon

Brands with higher perceived reputation should provide consumers with greater risk relief and so encourage more positive evaluations than brands of lower reputation. This notion should be true for FMCG, durable goods and particularly for services. When a new brand is launched in the services

sector, consumers have neither experience nor concrete attributes to judge its quality. Consequently, consumers rely heavily on cues such as brand reputation. Conversely, with goods, consumers can obtain useful information about quality through visual inspection and thus, the importance of inferences based on brand

reputation may be reduced. These observations suggest that the evaluations of brand extensions could be even higher for brands extending in services than for goods. Therefore, higher the perceived reputations of the parent brand, the more favourable should be evaluations of the brand extensions. This should be true for brands in FMCG, durable goods, and particularly in the services sectors. In conclusion, a brand which is extended into a new product category offers a new alternative to consumers, but also impacts consumers’ perceptions of risk. We believe, based on the literature, that a well-known brand is a risk-reliever and enhances the likelihood of product trial. Leif E. Hem is Associate Professor at the Norwegian School of Economics and Business Administration, NHH in Bergen, Norway. He defended his PhD in February 2001. His research interests focus on branding in general with specific focus on brand extension. He has already published papers focusing on brand extensions and he has presented brand extension papers at four international conferences in 2001.

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Business Analysis CORPORATE WORLD

Demystifying

Gold price movements

Gold has been in the news for over two months. More specifically, since the eruption of the European debt crisis and the downgrading of the US debt, discussions on gold have gained prominence. Gold, in the ‘coin’ form, has started becoming part of the investment portfolio of even the middle-class Indian investors. Dr Suresh Srinivasan

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he last two months have witnessed volatile gold price movements; after reaching great highs of Rs.2,800 per gram, it recently experienced the steepest fall in the last 29 years. It is pertinent to setout the relationship between gold and the global economy. What is the reason for such volatility (the extent of unpredictability of increase or decrease in gold price)? What is the relationship between gold and the US$, inflation and interest rates? The fundamental question raised is, what drives the gold price internationally? Trend in Gold Price movements There has been an all-time high demand for gold in the first quarter of 2011. Such large scale demand has showed up in steeply increasing gold price, which increased by more than six times over the last decade. Figure-1 demonstrated the increase in the price of ‘standard’ gold over the last ten years. More importantly, the volatility, i.e., the extent of unpredictability of increase or decrease in gold price, has

Figure-1

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also increased; the spread between the highest and lowest price, every year, has almost doubled. On 11th August 2011, for example, gold was at Rs.2,620 per gram. During the week that followed, the price fell and reached Rs.2,580, which abruptly shot up to more than Rs.2,800 by the last week of August 2011. The price however, fell close to Rs.2,550 in a weeks time. Volatility of gold price over the last sixty days is reflected in Figure-2. It is not very easy to pinpoint a single cause that drives gold price movements. Price of most commodities, for that matter, is driven by their demand – supply co-relationship; i.e., when demand exceeds supply, the prices increase, but many more factors impact gold price, given its unique nature. Gold Price, Global Economy and

Uncertainties The most important factor that differentiates gold from other commodities is its universal acceptability and thereby its role as a hedge against inflation and other global uncertainties. Investors flock to gold whenever they see a gloomy picture in the global economy; in such situations the demand for gold generally increases, driving its price higher. Well, risks and uncertainties have always prevailed, but they have sharply increased in the recent past. The prolonging sovereign debt crisis in the Europe with fears of more Euro nations being sucked in, the precarious financial and employment situation prevailing at the United States, which is already turning into a political crisis, the inflationary pressures across the globe and on emerging markets, the political crisis and social unrest in the Arabian world are all compounding the risks and uncertainties in the global economy, thereby channeling more investors towards gold. This resulted in the gold price hitting the unprecedented

Figure-2

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CORPORATE WORLD Business Analysis Rs.2,800 per gram, mark. However, in the first week of September, the uncertainties, and such fears reduced when the European Union (EU) found a temporary solution to the Greece problem. This short-term relief, stemmed the investors’ ‘gold rush’ while some of the investors who booked profits on gold sold stock resulting in a sharp price drop. Can one generalise that gold prices will only increase when global uncertainties are high? Not really. There are exceptions. In 1980, the beginning of one of the worst global recessions, gold price prevailed at $850 per ounce and investors bet on its price sharply increasing given the uncertainties. in 1981 and 82, South American counties like Argentina, Mexico and Brazil were on the verge of financially collapsing and this strengthened that belief, but contrary to expectations, gold price dropped to less than $300 per ounce. Demand - Supply The demand-supply position is also a key component that drives gold price. The annual production of gold is close to 2,500 tonnes; around 65% to 75% of this goes towards jewelry and personal accumulation, around 20% towards industrial use comprising dentistry and machine tools and the balance 5% to 15% in the form of storage, exchange traded funds. A

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unique characteristic of gold is that all the produced quantity of gold is subjected to hoarding and always remains capable of coming back as a supply into the gold market; the timing of such entry vastly alters the demand-supply position. In addition to the individual hoardings, the Central Banks of various countries (for example, India’s Reserve Bank of India, RBI) hold a significant part of their reserves in the form of gold. India has recently purchased more than 200 tons of gold, this also had an impact on increasing the gold price further. India, for example, is the world’s largest importer of gold, consuming more than a third of global demand. The first six months of 2011 saw India buying more than 500 tons of gold. The demand in gold, and consequently its price, is also impacted by the festival season in countries like India. From the current price of around Rs.2,620 per gram, it is expected that the price in India could sharply increase to Rs.2,900 per gram, or more, by the year end as a result of Diwali and the following marriage season. Gold Price and the US$ Both, gold and the USD are considered to be global currencies with countries and banks holding virtually their entire reserves in these two forms. When uncertainties are perceived, they sell

the US$ and buy gold; this means when the price of gold increases (as more gold is demanded), the value of US$ decreases (as it is sold). Hence, the value of US$ and the gold price, generally share an inverse relationship in the long term. Gold Price, Inflation and Interest Rates During times of high inflation and high economic growth, central banks generally increase interest rates in order to reduce availability of money in the system (i.e. to contain liquidity). Such an act of increasing interest rates increases the value of the local currency; this reduces the value, and the price, of gold. Contrarily, during times of low economic growth, central banks decrease interest rates in order to increase money supply in the system, improve liquidity and thereby spur economic growth. Such an act of decreasing interest rates, decreases the value of the local currency; this increases the value, of gold. Interest rates are thus closely related to the price of gold. All said, the current drop in price of gold can be argued to be merely ‘one-off’ and ‘temporary’ but, with so much of economic uncertainties, and no viable ‘short term’ solutions for many of these issues, analysts predict that gold demand and price can only increase!

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The future of the Maharaja

Air India has been making losses for many years. Although the airline’s revenue steadily increased over the last six years, its costs have also risen unmanageably resulting in losses. Due to strong labour unions and very low employee productivity, labour costs have increased by more than three times over the last six years. Loans have been increasing to fund such losses resulting in more interest costs which have further increased the losses of the airline. All of these have resulted in the airline accumulating more than Rs.40,000 crore of debt and accumulated losses of over Rs.20,000crore, built up over the last six years.

Dr Suresh Srinivasan

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oday, so precarious is Air India’s financial position that if it were a privately owned company, it would have ceased operations many years back. Air India has been at the mercy of the government in funding its day-to-day operation, as the airline operations are themselves unable to sustain the required expenses. The airline has been unable to draw up a viable turnaround strategy as to how it would contain the costs within the revenue streams and secure a www.advancedge.com

Return on Investment (ROI) to its shareholders. Given this uncertainty, the government is hesitating to plough more cash into Air India. Rohit Nandan, an Indian Administrative Officer, a bureaucrat from the Civil Aviation Ministry, has recently taken over as the chairman and managing director of Air India. Will he be able to clean up this huge mess? The current status of Air India The government has been supporting the loss-making airline through a

bail-out package of Rs.5,000 crore; Rs. 2,000 crore has already been handed out and Rs.1,200 crore is expected to be paid out soon. It is assessed that a further cash injection in the form of equity capital close to Rs.6,000 crore needs to be infused to carry on the day-to-day operations. An additional Rs.30,000 crore of support would be required over the next ten years for providing guarantees for new aircrafts to be procured. These are huge sums of monies and the government will pay Advanc’edge MBA November 2011

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CORPORATE WORLD Business Analysis the same only if it is guaranteed that the income from operations will take care of its investments, henceforth. Key points for Restructuring Realistically, what should Air India do? It has to restructure its operations in such a way that it is able to sustainably operate within the revenue streams generated, rather than going back to the government for further funds. Of course, the restructuring exercise would entail a one-time support from the government, but would ensure that the operations become sustainable from that point onwards. Air India has prepared restructuring plans, together with Deloitte Consulting and SBI Capital Markets, who are its advisers. But the question, is how robust are such plans? Where is Air India exactly falling short and what will the restructure entail? Figure-1 outlines certain key performance indicators of Air India, and the same compared with international peers like Emirates Airline and Singapore Airlines. As seen Air India significantly falls short of its peers in terms of revenue,

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Airline

Revenue US$ million

Net Profit US$ million

Net Profit %

Aircraft Fleet

Number of Staff

Air India

2,852

-1,181

-41%

105

37,000

Emirates Airlines

11,411

1,041

9%

148

38,797

Singapore Airlines

16,693

221

1%

107

21,534

Figure-1

i.e., given more or less the same number of aircrafts, Air India has failed to productively utilize its assets to generate revenue. Figure-3 describes the ‘revenue generated per aircraft,’ which is around US$27 million as compared to Emirates ($77 million) and Singapore Airlines ($156 million). It is unfortunate that even IndiGo, a small domestic airline, has a more or less comparable ‘revenue per aircraft’ figure at $22 million. Such low ‘revenue per aircraft’ is due to inadequate utilization of aircrafts, lack of adequate pilot and crew, strikes, poor aircraft maintenance, low seat factor (occupancy), lower cargo load, failure to bill for excess baggage, etc. In the process of restructuring, all such issues impacting aircraft

utilization and revenue would need to be appropriately addressed. The bigger problem with Air India is depicted under Figure-2 the ‘Employees per Aircraft’, where Air India ranks the highest at 352 employees per aircraft as compared to 262 for Emirates, 201 for Singapore and 94 for IndiGo. This clearly shows that Air India is overstaffed resulting in significantly lower employee productivity. Is the magnitude of lower productivity alarming? Yes it is! What this means is that Air India has roughly 90 staff more per aircraft, which means with a fleet of 105 aircraft it has surplus work force of close to 9,450 (90 staff per aircraft x 105

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Business Analysis CORPORATE WORLD aircrafts), which translates to around 25% of its total workforce. How can Air India retrench so much surplus staff overnight? If this is done, it will lead to a serious social unrest in a country like India. The restructuring would also involve looking into areas where older aircraft can be returned, high interest rate loans swapped for cheaper debt, the leakage of revenue arrested staff productivity improved and supplier contracts with caterers and IT service providers negotiated. Also duplication of surplus infrastructure and flight schedules arising out of Air India – Indian Airlines merger needs to be reduced, at least now. Commercial space in its prime Nariman Point office should also be let out to enhance revenue. Air India has been left with a number of unused ‘bilateral’ rights; it needs to improve the aircraft usage and buy new planes, wherever required in order to utilize all the profitable routes to which it has a right to fly.

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Key Success Factor: Leadership, leadership and leadership…… The main reason for Air India’s failure has been the lack of leadership. Nandan will be the fifth chairman of the airline in four years; none of the leaders would have had a reasonable breathing time to get the airline into order. Nandan’s predecessor Arvind Jadhav had to leave due to poor relationship with the Civil Aviation ministry, which again highlights the government’s interference in the airline’s operations. Companies like General Electric (GE) are famous for grooming great leaders as there is an unwritten rule that leaders will not lose their jobs for the next twenty years, unless they err really silly! Lack of consistent leadership and not providing them a ‘free hand’ is the root cause for Air India’s failure. Even now, if a strong leader is not in position, none of these restructuring plans are going to work Appointing bureaucrats with not much of technical expertise or turnaround skills, is a recipe for further damage to the

airline. The government is definitely to blame, for too much interference and their inability to build a sustainable leadership to guide the company in turbulent times. Other governmentowned companies like the Bharat Heavy Electricals (BHEL) have been performing exceedingly well purely due to a consistently high quality leadership. The question is whether the government or any of its nominees can successfully pull through this complex restructuring. The Airline should have been privatized and given away to specialists who are capable of running such complex operations rather than holding on to it and bleeding cash over the last seven years. It may not be too late even now, the government should sell Air India albeit as a ‘distress sale’ rather than wasting taxpayers’ monies by funding the losses further. This will further increase India’s fiscal deficit, which already is at a much ‘higher than desired’ level.

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CORPORATE WORLD Business Analysis

Strategic Intent behind India’s large overseas acquisitions:

Have they paid off? There have been a number of overseas acquisitions by Indian companies over the last five years. The years 2007 and 2008 have been ‘watershed’ years in the history of overseas acquisitions by Indian corporate; some of the largest Indian acquisitions abroad have taken place during these years. In 2007, Tata Steel acquired Corus, the Anglo Dutch (originally owned by English and Dutch shareholders) for around US$12 billion (more than Rs.55,000 crore) to become the seventh largest steel company in the world.

Dr Suresh Srinivasan

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uring the same year Hindalco acquired the Canadian aluminum products maker, Novelis for around US$6 billion (more than Rs.27,000 crore). 2008 saw the Tata Motors acquisition of Jaguar Land Rover from Ford Motor Company for close to US$2.3 billion (more than Rs.10,000 crore). What is the rationale for these acquisitions? What did these companies have in mind when they made them. Now that it is at least three years since the transactions, have they started yielding results? Have these companies achieved their objectives in completing these acquisitions? With research showing that more than 70% of all acquisitions fail, how does one judge whether an acquisition is successful? Tata Steel acquisition of Corus The initial objectives for Tata Steel’s acquisition of Corus were two-fold: (a) When Muthuraman took over Tata Steel as Managing Director, the company was ranked fifty-sixth in the global steel industry; he targeted scaling the company up from around 3 million tons of steel

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production in 2003 to becoming a much larger global player. Scaling was the primary motive. (b) Tata Steel initially produced ‘low value-added’ products (steel bars, rods and plates). In order to enhance profit margins, Muthuraman wanted to gain access to ‘high value’ customers, for which Tata Steel needed to

enhance its technology, products and processes. Moving up the ‘value chain’ to produce higher ‘value added’ products (special steel categories) and increase profitability was the secondary objective. In order to achieve these objectives, Muthuraman believed that acquisition was the only option as expansion of its www.advancedge.com


Business Analysis CORPORATE WORLD manufacturing facility in Jamshedpur would help but take a long time to materialize. The opportunity to acquire Corus came in with an excellent ‘strategic fit’ to Tata Steel which were in line with its objectives. How would Tata Steel secure a return on the $12 billion it would invest in Corus? i.e., where would the benefits come from such that it exceeds the cost of investment? Well, Muthuraman perceived that Corus was then procuring raw materials (basic steel) at very high costs, but if this was supplemented by the raw materials from the Tata Steel plant in Jamshedpur and its prospective plants in Jharkhand and Orissa, there would be substantial savings, and this would drastically improve Corus profitability. Tata Steel would be able to secure the returns on its investments, within a few years. Since it is around three years since Tata Steel completed the acquisition, did Tata Steel achieve its

objectives? Well, it has grown in size to be the sixth largest player now. It has access to superior technology and value-added products and serves a very diversified customer profile. Has all of this translated into superior profitability? The Return on Capital Employed (ROCE), dropped from 32% during 2006-07 to 15% in 2010-11mainly due to the global recession that set in immediately after the Corus acquisition and the global economy is yet to fully recover from its aftermath. However, Corus is still considered to be a good acquisition for Tata Steel, as the ‘fundamental strategic intent’ is very appropriate and will translate into profitability in the long run. Acquisition of Jaguar Land Rover by Tata Motors Tata Motors was primarily in the business of manufacturing commercial trucks and light commercial vehicles. During the

late nineties, it diversified into motor cars with a series of experimental products including Tata Estate, Tata Safari and Tata Seira, all of which were not successful. However, with the launch of Tata Indica, the first indigenously made saloon car, Tata Motors captured a significant share in the Indian auto market. In order to manage the onslaught of foreign competition as well as to gain high value overseas market. With this objective Tata Motors acquired Daewoo of Korea in 2004 and the Spanish bus-maker Hispano in 2005. Finally, in 2008, Tata Motors launched Tata Nano, the cheapest car in the world. In the same year, it acquired Jaguar Land Rover (JLR), the ‘super luxury’ car maker, from Ford for US$ 2.3 billion. The logic of the JLR acquisition is seriously questionable. What ‘strategic fit’ did Tata Motors expect in acquiring JLR? How will manufacturing and marketing JLR

l The

idea behind acquisition of Jaguar Land Rover by Tata Motors seems flawed

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CORPORATE WORLD Business Analysis

Corus is still considered have synergies with its Indian products like Nano? While JLR is targeted at the highest income level, Nano targets the lowest strata, there being absolutely no synergies between the two streams of products. Contrarily, could Tata Motors have diverted all the funds it had invested in JLR towards Nano operations, which could have possibly positioned Nano as a more robust product? Nano still continues to have many safety and reliability issues, which Tata Motors is struggling to fix. If one looks into the financials of Tata Motors, as well, they have definitely deteriorated since the expensive JLR acquisition. The company’s ROCE virtually vanished in 2010-11, from the 26% it was achieving earlier in 2007-08. Hindalco acquisition of Novelis Hindalco was a manufacturer of upstream aluminum products, i.e., manufacture of basic aluminum metal from bauxite. The company wanted to vertically integrate and also manufacture high value-added aluminum products like foils, cans and rolled products, which have more stable and higher profit margins.

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to be a good acquisition for Tata Steel, as the ‘fundamental strategic intent’ is very appropriate and will translate into profitability in the long run. Manufacturing these high valueadded products however requires better technology which Hindalco did not have access to. Hence, it seized the opportunity when Novelis came up from sale in 2007. Although the price paid by Hindalco for Novelis is steep, Hindalco reassured its investors that the demand for ‘high value-added’ aluminum products in India will drastically improve over the medium-to-long-term and Hindalco would be positioned as a strong company offering such products, with minimum competition. Looking at the performance of Hindalco after the

acquisition of Novelis, its ROCE has dropped from 18% in 2006-07 to 9% in 2008-09 and further to 7% during 2009-10. From a pure financial perspective, the acquisition is yet to yield results, but we need to consider the fact that the global economy has not recovered from the 2008 recession. Analysts strongly believe that the Novelis acquisition provides a robust synergy with Hindalco operations and will turn out positively in the medium-to-long term. In summary, the success of large acquisitions hinges on the ‘strategic fit’ with the company’s existing operations. Although many other factors like recession and demand conditions will influence the ‘postacquisition’ profitability, a strong strategic fit in the form of synergies will definitely help acquisition succeed in the longer time period. 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


Business Analysis CORPORATE WORLD

Economic Indicators

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CORPORATE WORLD Business Analysis

Economic Indicators

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STUDY HOUR

WORD DOSE Reshma Majithia

A confabulation between two friends My eye was vellicating badly on the morning of the CAT, you know, I told my friend Sharon, “and my mother says that’s always a bad sign.” Well, considering the fact that I don’t even know the meaning of the word, I cannot really comment on the sagacity of your mother’s observation, was the rather snide rejoinder thrown at me. I was rather peeved by the tone of her voice but decided it was best to ignore it. “You don’t seem to be in an affable mood today”, I said. It’s nothing; it’s just that I have been wondering about the prodigious amount of useless stuff we learn by rote in schools and colleges. Now that I am scouting for a job, I realise I have learnt precious little of any use over the last couple of years. I paused to cogitate; true, most of the time, we hear derogatory comments about our educational system and it is difficult to dismiss those entirely, given the archaic structure of the curricula in schools and colleges. But then wasn’t it ironical that this same system had groomed so many artists, scientists and litterateurs who had become icons for our entire planet? Gauging Sharon’s disposition on this particular morning, I thought quiet concurrence would be better than debate. “You are absolutely right”, I said, “and that also explains why most graduates out of college today eye a professional management education; it prepares them for the real world out there. Sharon seemed pacified for the moment, perhaps happy to have found someone who endorsed her views. For the first time since the morning, she smiled. And then asked with a twinkle in her eyes, “Which reminds me of the CAT and brings me to the same question: what does “vellicate” mean after all?”

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STUDY HOUR Word Dose

WORD MEANINGS Confabulation: (N)

Vellicating: (V)

Sagacity: (N)

Snide: (Adj)

(kuhn-fab-yuh-ley-shuhn)

(vel-i-keyt-ing)

(suh-gas-i-tee)

(snahyd)

conversation;

to move with spasmodic

acuteness of mental

hateful, nasty

discussion

convulsions; twitch

discernment and soundness of judgment

Rejoinder: (N)

Peeved: (Adj)

Affable: (Adj)

Prodigious: (Adj)

(ri-join-der)

(peeved)

(af-uh-buhl)

(pruh-dij-uhs)

an answer to a reply;

annoyed; irritated;

pleasantly easy to

extraordinary in size,

response

vexed

approach and to talk to;

amount, extent

friendly; cordial; warmly polite

Learn by rote: (Idiom)

Scouting: (V)

to learn something by memorizing without

Cogitate: (V)

Derogatory: (Adj)

(skou-ting)

(koj-i-teyt)

(dih-rog-uh-tree)

to look for

to think about

that undermines

giving any thought to what

the reputation of

is being learned

a person or thing

Archaic: (Adj)

Ironical: (Adj)

Litterateurs: (N)

Gauging: (V)

(ahr-key-ik)

(ahy-ron-i-kuhl)

(lit-er-ah-turz)

(geyj)

out-dated or

a contradiction between

a literary person,

to appraise, estimate,

old-fashioned

how things should be and

especially a writer of

or judge

how they really are

literary works

Disposition: (N)

Concurrence: (N)

Pacified: (V)

Endorsed: (V)

(dis-puh-zish-uhn)

(kuhn-kur-uhns)

(pas-uh-fahyd)

(en-dawrst)

a person’s usual

accordance in opinion;

brought to a

approved,

temperament or frame

agreement

state of peace or calm

supported

of mind

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STUDY HOUR

Reshma Majithia 1. Who is the new Prime minister of Denmark? a. Poul Nyrup Rasmussen b. Anders Fogh Rasmussen c. Lars Løkke Rasmussen d. Helle Thorning-Schmidt 2. According to eBay, an online auction and shopping website which of the following countries will be among the world’s top 10 e-commerce hubs by 2015? a. India b. Indonesia c. The Philippines d. Turkey 3. Who has been named as the ICC Cricketer of the Year 2011? a. Jonathan Trott b. Mahendra Singh Dhoni c. Shivnarine Chanderpaul d. Ricky Ponting

Economics prize for research that sheds light on the causeand-effect relationship between the economy and policy instruments such as interest rates and government spending. a. Christopher Sims b. Paul Krugman c. Elinor Ostrom d. Eric Maskin

7. India’s most popular retail groups has tied up with the government-backed National Skill Development Corporation (NSDC) to train seven million people in handloom, carpentry and retail services, among other areas, over 10 years. Name the group

a. Piramal Group b. Future Group c. Tata group d. RPG group

8.

Who is the 2011 Miss Universe? a. Stefania Fernandez b. Angola Leila Lopes c. Dayana Mendoza d. Puja Gupta

9. Who has taken over as president of the Automation Industry Association (AIA)? a. Kuldip Kaura b. JP Singh c. Vijay Srinivasan d. Uday Bhansali 10. A multinational automotive corporation has bagged two

4. The world’s largest personal computer-maker has gained control of UK-based business information-management software maker Autonomy Corp, through its $10.3-billion takeover offer. Name the personal computer-maker. a. Lenovo b. Apple c. Hewlett-Packard d. Acer Inc 5. According to the survey, ‘’most attractive employer’’ of 2011, conducted by global employer branding firm Universum, which of the following companies has been ranked at the top of its 2011 list of the top 50 global businesses and engineering companies to work for. a. IBM b. Google c. Microsoft d. Goldman Sachs 6. Americans Thomas Sargent and _ _ _ _ _ _ _ _ _won the Nobel 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 November 2011

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STUDY HOUR

awards from Autoweek at the Frankfurt Motor Show. Name the corporation. a. Hyundai Motor India Ltd b. Tata Motors c. Hindustan Motors d. Maruti Suzuki India Ltd

11. Which of the following Indian business tycoons was conferred the Rajiv Gandhi International Prize for Technology in Education and Development by the Indira Gandhi National Open University (IGNOU)? a. Lakshmi Mittal b. Mukesh Ambani c. Ratan Tata d. Azim Premji 12. Who has been conferred the Mahatma Gandhi Peace prize for the year 2011? a. Aung San Suu Kyi b. Dalai Lama c. Nelson Mandela d. Desmond Tutu 13. An English actress and occasional singer, she has received multiple awards and nominations. She was the youngest person to accrue six Academy Award nominations, and won the Academy Award for Best Actress for The Reader (2008). She has also been acclaimed for both dramatic and comedic work in projects ranging from period to contemporary films, and from major Hollywood productions to less publicised indie films. Recently she won the Emmy for her role in Mildred Pierce, a drama about a woman who bakes her way out of poverty. Name her. a. Kate Baines b. Kate Winslet c. Eileen Atkins d. Yasmin Bannerman 14. Who is the new Board of Control for Cricket in India (BCCI) president? a. N Srinivasan b. Shashank Manohar

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Advanc’edge MBA November 2011

c. Sharad Pawar d. Jagmohan Dalmiya

15. Who has been appointed the new Indian Premier League (IPL) chairman? a. PS Raman b. KG Muralidharan c. Chirayu Amin d. Rajiv Shukla 16. Which of the following IT firms has been roped in by Deutsche Bank to provide software solutions to the financial services firm’s capital markets business unit? a. Infosys b. Wipro c. Tata Consultancy Services d. HCL Technologies 17. Which of the following countries is all set to take over the presidency of G-24, a group of 24 developing countries, after a gap of almost three decades? a. Iran b. South Africa c. Sri Lanka d. India 18. Who won the 2011 Nobel Prize in Literature? a. Doris Lessing b. Herta Müller c. Tomas Transtromer d. Orhan Pamuk 19. Who is the winner of the 2011 Japanese Grand Prix? a. Jenson Button b. Michael Schumacher c. Nigel Mansell d. Fernando Alonso 20. Who has won the 2011 Jnanpeeth Award, the highest literary award in the country? a. Rehman Rahi b. Chandrasekhar Kambar c. Gurdial Singh d. Girish Karnad 21. Which of the following rock bands has won the 2011 Polaris

Music Prize for their album The Suburbs? The Polaris Music Prize is a music award annually given to the best fulllength Canadian album based on artistic merit, regardless of genre, sales or record label. a. Braids b. Austra c. Arcade Fire d. Galaxie

22. Which of the following American business tycoons topped Forbes’ list of the 400 richest Americans for the 18th year in a row? a. Warren Buffett b. Bill Gates c. Larry Ellison d. Christy Walton 23. Who is one of the most respected and trusted people in the World according to Leader RepTrak, a new global study of the general public, developed by Reputation Institute to assess the reputations of the world’s most visible leaders and public personalities in politics, business, culture and sports. a. Nelson Mandela b. Roger Federer c. Oprah Winfrey d. Bill Gates 24. Internet and mobile product company Ibibo has appointed _ _ _ _ _ _as its managing director of the Ecommerce business. a. Sanjay Bhasin b. Pankaj Jain c. Ashish Kashyap d. Krishna Motukuri 25. Who has been appointed as the chief Human Resource Officer of Tata Steel? a. Aman Mehta b. Venkatraman Thyagarajan c. P Senthil Kumar d. Ishaat Hussain 26. He is an Indian politician and current state Punjab governor and the Administrator of Union www.advancedge.com


STUDY HOUR

Territory of Chandigarh. He had been the Speaker of the 11th Lok Sabha and served the Manmohan Singh cabinet as the Union Minister of Home Affairs. He has also served the Indira Gandhi and Rajiv Gandhi cabinets as the defence minister during the 80’s.He has resigned as Lokayukta of Karnataka barely six weeks after he was appointed as Karnataka’s ombudsman over owning of housing sites for him and his wife allegedly violating co-operative housing society rules. Name him. a. H D Kumaraswamy b. S M Krishna c. Shivraj Patil d. BS Yeddyurappa 27. Who is the new president of Zambia? a. Godfrey Miyanda b. Kenneth Kaunda c. Rupiah Banda d. Michael Sata 28. She was a Kenyan environmental and political activist. She was educated in the United States at Mount St. Scholastica and the University of Pittsburgh, as well as the University of Nairobi in Kenya. In the 1970s, she founded the Green Belt Movement, an environmental non-governmental organization focused on the planting of trees, environmental conservation, and women’s rights. In 1986, she was awarded the Right Livelihood Award, and in 2004, she became the first African woman to receive the Nobel Peace Prize for “her contribution to sustainable development, democracy and peace.” She passed away on September 25, 2011. Name her. a. Dorothy Height b. Albertina Walker c. Wangari Maathai d. Lena Horne

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29. Saul Perlmutter and Adam Riess of the US and _ _ _ _ _of Australia have been awarded the 2011 Nobel Prize for Physics. The trio studied what are called Type 1a supernovae, determining that more distant objects seem to move faster. a. Brian Schmidt b. Rod Crewther c. Keith Nugent d. Rodney Jory 30. British company Heritage Oil PLC has acquired a 51 percent stake in a Libyan company, Sahara Oil Services for _ _ _ _ _, which will allow it to play a significant role in Libya’s oil and gas industry. a. $19.5 million b. $ 15.2 million c. $ 20 million d. $ 14 million 31. President Ellen Johnson-Sirleaf of Liberia, her compatriot, the peace activist Leymah Gbowee, and _ _ _ _ _ _ _of Yemen, a prodemocracy campaigner have been awarded the 2011 Nobel Peace Prize in acknowledgment of their non-violent role in promoting peace, democracy and gender equality. a. Shimon Peres b. Jody Williams c. Shirin Ebadi d. Tawakkol Karman 32. Who won the 2011 Nobel Prize for Chemistry? a. Akira Suzuki b. Dan Shechtman c. Venkatraman Ramakrishnan d. Andre Geim 33. Andhra Pradesh Chief Minister has congratulated two city scientists Rajan Sankaranarayanan of Centre for Cellular and Molecular Biology and G Narahari Sastri of CSIRIndian Institute of Chemical Technology for winning the

coveted Shanti Swarup Bhatnagar award, the top prize for science in India Name the Chief Minister of Andhra Pradesh. a. Nadendla Bhaskara Rao b. Nedurumalli Janardhana Reddy c. N Kiran Kumar Reddy d. Konijeti Rosaiah 34. Who won the 2011 IPL T20? a. Mumbai Indians b. Chennai Super Kings c. Delhi Daredevils d. Kolkata Knight Riders 35. Who won the 2011 Pinter Literary Prize? The award is set up by the writers’ charity Pen in memory of playwright Harold Pinter and is given to a British writer who casts an “unflinching, unswerving” gaze upon the world. a. Zadie Smith b. David Mitchell c. Ian McEwan d. David Hare

ANSWERS 1.d

2.a

3.a

4.c

5.b

6.a

7.b

8.b

9.c

10.b

11.d

12.b

13.b

14.a

15.d

16.c

17.d

18.c

19.a

20.b

21.c

22.b

23.a 24.d

25.c

26.c

27.d

28.c

29.a 30.a

31.d

32.b

33.c

34.a

35.d

Answer to the Sudoku

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

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STUDY HOUR Events Calendar

B-school

events

industries for the improvement of life. It is an opportunity for students to discuss current problems and their possible solutions besides making themselves familiar with new areas of Biotechnology. Website: http://www.amity.edu/jaipur/pdf/Green%20Biotech_ Amity_G.%20K.%20Aseri.pdf

Symposium on SME Finance Challenges – ISB Hyderabad Date: November 9, 2011 2nd Annual International Sustainability Conference: Venue: Taj Lands End, Mumbai People, Planet & Prosperity – IIM Shillong Objective of the Conference Date: November 9-11, 2011 The Symposium on SME (Small and Medium Enterprises) Venue: IIM Shillong Finance Challenges offers a platform for various stake holders Objective of the Conference like the Government, banks, exchanges, rating agencies, It will provide a multi-disciplinary platform for thinkers, industry representatives and the investor community to academicians, business leaders, government officials, discuss issues pertaining to SME financing and come out with civil society groups and grass root activists to share their creative solutions. The panel discussion will focus not only on ideas, initiatives, experiences and messages for making improving access to formal finance but trade financing as well. this planet a place for healthy and prosperous living. The goal is to come out with implementable suggestions to Leveraging the unique assets and expertise of IIM Shillong improve the current state of affairs of SME finance and take as a hub of sustainability in business, this conference them up with the appropriate authorities for implementation. will cover global perspectives and practices, keeping in Website:http://www.isb.edu/SMEFinanceSymposium/index. view national priorities as well as regional challenges. Shtml Website: http://www.iimshillong.in/sus-con/sus-con.asp IMR Doctoral Students Conference 2011 - IIMB Management Review (IIMR) at Indian Institute of Management (IIMB) Date: November 11-12, 2011 Venue: IIM Bangalore Campus Objective of the Conference The Conference on Management Studies aims to bring together, annually, doctoral students affiliated to institutions across India for an event of paper presentations, publication-oriented development and interactions with industry. It will encourage the most interesting and important research being done by doctoral students in management/ business schools across the country and enable authors of the identified papers to engage with leading academicians in India and abroad in a focused manner. They will gain developmental inputs for their research, acquire publication outlets for promising research by inviting authors of the best papers to submit their shortlisted work to IMR. Website: http://www.iimb.ernet.in/node/2517

Ahvan 2011 – IIM Indore Date: November 18-20, 2011 Venue: IIM Indore Objective of the Event The event showcases the talent of the brightest of B-School participants and has also seen participation from corporate houses in the past. With a range of events, Ahvan tests the mettle of the contestants in different domains of management. Website: http://ahvan.in/ahvan/Ahvan11/ahvan.html

LIBA Insight 2011 “Celebrating Dr. Prahalad”- Loyola Institute of Business Administration (LIBA), Chennai Date: November 9-10, 2011 Venue: Chennai Trade Center, Chennai Objective of the Event The sixth edition of LIBA Insight’11 focuses on the seminal works of the management guru par excellence Dr. C. K. Prahalad. His contribution to the world of business has been humanistic, universal, futuristic and truly path-breaking. It has 3rd International Conference on Information Technology & changed the way businesses consider markets. No wonder Business Intelligence (ITBI 2011) – IMT Nagpur he has been ranked twice on the Times list of the world’s most Date: November 25 – 27, 2011 influential business thinkers. As one of the most illustrious Venue - Hyderabad alumni of Loyola fraternity, the Loyola Institute of Business Objective of the Conference Administration (LIBA) takes great pride in celebrating him The conference aims at providing a common platform for and his works. LIBA Insight’11 symposium will deliberate academicians, researchers, practitioners, developers and users on how his concepts affect organisations, the economy and to disseminate knowledge and share expertise and experience. consumers. It will throw light on various developments and help formulate Website: http://liba.edu/insight/ strategies for their implementation. Website: http://www.imtnagpur.ac.in/itbi11/ Espire 2011 - Loyola Institute of Business Administration (LIBA) and The Indus Entrepreneurs (TiE), Chennai International Conference on “GREEN BIOTECH - Recent Date: November 24, 2011 Trends & Innovations” – Amity Institute of Biotechnology Venue: Chennai and Pharmanext Objective of the Event Date: November 12-13, 2011 The objective of the contest is to foster entrepreneurship Venue: Amity University Rajasthan, Jaipur through identifying and recognizing ideas and talent that can Objective of the Conference create tomorrow’s businesses. Bridging Borders between the The conference will bring leading academicians, scientists, contestants and the market place is the collective goal of the industry researchers, engineers and scholar students onto a organizers. The Contest is open to business ideas that involve common platform. It will discuss the recent developments in or leverage technology in any sphere of human activity - be it various aspects of Agriculture, Pharma & Health Science and services, energy, agriculture, manufacturing, construction or other related fields of Biotechnology, co-ordinate between education, to name a few possibilities. Biotechnology engineers and agriculture and pharmacy Website: http://liba.edu/espire/default.php

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Advanc’edge MBA November 2011

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