Beacon Newsletter for August 2013 from SIMCON Club

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August Edition of BEACON(BE-A-CONsultant) (Monthly Newsletter from SIMCON).

Contents:
Guest Lecture by Mr. Anand Mahale
Know your Company: Alvarez & Marsal
KPMG Six Sigma Certification Drive
Telecom Sector Analysis
August Month Quiz

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Beacon Newsletter for August 2013 from SIMCON Club

  1. 1. Mail to: simcon.simsree@gmail.com G U E S T L E C T U R E B Y M R . A N A N D M A H A L E 1 K N O W Y O U R C O M P A N Y : A L V A R E Z & M A R S E L C O . 2 K P M G S I X S I G M A C E R T I F I C A T I O N D R I V E 3 T E L E C O M S E C T O R A N A L Y S I S 4 C O N S U L T I N G W O R L D N E W S 6 A U G U S T Q U I Z 7 Sydenham Institute of Management Studies, Research and Entrepreneurship Education August 2013 B E A C O N : BE-A-CONSULTANT Issue: 10 INDEX On 3rd August 2013, we had a chance of meeting an industry stalwart in the consulting sector, Mr. Anand Mahale, from Deloitte Touche Tohmatsu India Pvt. Ltd. He is currently the Director – Strategy and operations. Mr. Mahale had an experience of more than 6 years in Deloitte and an overall experience of 12 years in the consulting sector. The agenda of the session was to give our batch an idea about the deliverables of a consulting firm and to get an idea about how a consulting firm works. He also discussed a case study of an actual con- sulting assignment undertaken by him which was probably the “show-stopper” of the session. Mr. Mahale frequently conducts strategy and vision workshops and hence it was not surprising to see him so very energetic and all set up to deliver the session. Although, he took the session with the help of a power point presentation, it was one of the most interactive sessions that we have had. He made it a point to walk into the audience and engage them with thought provoking questions and trying to align their thought process with the topic under discussion. He started with a brief introduction about Deloitte and its functions. The main operations in which Deloitte consulting is into are Strategy and Operations, Enterprise Applications, Technology Integra- tion and Human Capital. He explained all of them in detail and answered all of the questions surrounding these “buckets”, as he called them. One of the points that he discussed was that Deloitte offers an end to end solution to the client so that the client doesn’t have to approach another consulting firm. Hence, all the above operations work in tandem with each other to serve the clients’ every need. The industries they cater to are Consumer businesses, Energy and Resources, BFSI, Life Sciences & Healthcare, Manufactur- ing, Telecommunications, Media among others. Post the above discussion, Mr. Mahale went on to explain the other main services provided by Deloitte apart from consulting such as Audit, Enterprise Risk services, Tax, Legal, Governance, Risk and Compliance and Mergers and Acquisitions. Then came the part, everyone had been waiting for, the “case study”. The discussion, so far had been majorly theoretical, but now it was going to be a bit practical. The case study discussed was about a multi-billion dollar company, operating in 40 countries with a single product range. The company wanted to offer to its customers a multiple product range and also wanted to gain a larger market share. Mr. Mahale explained the framework for solving a case study, right from the designing a scope, to formulating a methodology for the business strategy, listing down the key elements needed to solve the issue and finally implementing it. The session came to an end with the case study. One of the most intriguing sessions that we have had; not only was the content of discussion good but the speaker had also made a connection with the audience during the course of the session. Ultimately, the two hours spent with Mr. Mahale seemed too few and we hope that we will get a chance to spend some more time discussing case studies with him. All in all, a Saturday well spent. A MONTHLY NEWSLETTER FROM SIMCON - SIMSREE CONSULTING CLUB 1 . G U E S T L E C T U R E B Y M R . A N A N D M A H A L E F E A T U R E D A R T I C L E O N P A G E 3 A B O U T Mr. Anand Mahale
  2. 2. Page 2: BEACON Alvarez & Marsal (A&M), headquartered in New York, was founded in 1983 with one core competency of restructuring. A&M has since evolved from a boutique player to the premier independent global professional services firm with a reputation for providing leadership, problem-solving and value-creation to underperforming and robust companies across the industry spectrum. The company serves clients across a range of industries, including automotive and suppliers, consumer packaged goods, energy, fi- nancial services, healthcare, high tech, insurance, manufacturing, media and entertainment, private equity, public sector, real estate, retail, and transportation and infrastructure. A&M employs around 2200 people. Below are a few details: Parent Company: Alvarez & Marsal Category: General Consulting Sector: Consulting USP: Experts in Mergers & Acquisitions and Restructuring Consulting Specialties: Consultancy, Mergers & Acquisition, Performance Improvement, Corporate Restructuring, Tax Advisory, Global Forensics and Disputes, Private Equity Case Study: Business Situation: In September 2008, Lehman Brothers Holdings Inc. (“Lehman”) filed for bankruptcy with limited pre-planning. A&M as- sumed the management of the Lehman estate and its assets, including a global real estate portfolio with a marked-to-market value of $23 billion. A&M‟s overall charge was to maximize recoveries for creditors by implementing an orderly approach to winding down assets, thus minimizing exposure to distressed sale pricing. Solution Description: In order to accomplish the mandate, A&M performed the following major activities: Untangle the Lehman Portfolio & put projects‟ capital stacks back together & gain full control over Lehman Portfolio decisions Appropriately value the portfolio Active Market Monitoring to Capitalize on Sales Opportunities Collaborate with former Lehman employees having institutional, portfolio and asset level knowledge to evaluate and establish a business plan for every asset in the Lehman Portfolio A L V A R E Z & M A R S A L ( A & M ) SWOT Analysis Strengths Weaknesses 1.Leaders in Mergers & Acquisition( M&A) and Restructuring 1.It has strong primary presence only in the United States and has very less global penetration. 2.Ranked 22nd in the Top 50 Consulting Firms by Vault in North America and 15th in Europe 2.It does not have as much a brand recall as their competitors. 3.Client list includes AmLaw 100 and Fortune Global 500 (and half of the Fortune 100) firms, and largest U.S. banks Opportunities Threats 1.There are many opportunities of growing in the emerging economies 1.Poor brand recall vis-à-vis in the times of competition forma a grave threat 2.It can penetrate deeper in the existing markets of Europe and Asia and enter the untapped Africa 2.The global recession may hamper their growth 3.It can offer its services to more sectors and clients 3.Companies setting up their known knowledge centers Page 2: BEACONKNOW YOUR COMPANY
  3. 3. Benefits: Lehman is the largest bankruptcy in the history of the U.S., and challenged the financial markets, regulators, judicial sys- tem, court appointed management and other stakeholders to preserve order through a lengthy liquidation process. A&M‟s Real Es- tate Advisory professionals successfully maximized recoveries for creditors by developing and administering an expedient liquida- tion process. Reviewing and revising the asset business plans every six months to ensure current market factors and performance are taken into account. A&M successfully oversaw approximately 500 asset restructurings and the resolution of over 300 deals. With more than 850 positions representing 500+ deals, the A&M actively monitors the Lehman Portfolio, especially during the wind down/sale process; under A&M management, approximately 25 to 50 deals were listed at any given time with vari- ous brokers. The real estate portfolio has generated over $6 billion in receipts since bankruptcy (through December, 2011), with the ex- pectation of an additional $14 billion through the end of 2015. Successful and Orderly Liquidation of Lehman assets achieved It gives us great pleasure to announce that our own SIMCON (SIMSREE Consulting Club) has successfully hosted Green Belt Certification drive in association with KPMG- world‟s leading providers of audit, tax and advisory services. Ms. Harika Kurnala & Mr. Supraja Natarajan from KPMG were trainers from KPMG who carried out the workshop from 12th to 16th August. 36 Students witnessed excellent teaching skills from KPMG's experienced trainers during these five training days. With the help of state of the art technological teaching and practices, they ensured that students are given all the knowledge and ex- pertise needed by Six Sigma practitioner as well they ensured that all five days of learning will be remembered as pleasant & knowledgeable experience to all the students. Workshop ended on 16th August with KPMG certifying exam, which certified our students with Six Sigma Green Belt. Trainers gave excellent feedback about the batch; they praised students for having excellent attention spans and desire to learn new things. They are very excited to pursue such opportunities in future also. SIMCON club will make sure that our students are provided may of such events in near- est future and our relationship with KPMG will continue to flourish. Page 3: BEACON S I X S I G M A G R E E N B E L T C E R T I F I C A T I O N D R I V E B Y K P M G A N D S I M C O N Ms. Harika Kurnala Mr. Supraja Natarajan Sources: http://www.vault.com, http://www.alvarezandmarsal.com, http://www.wallstreetoasis.com/company/alvarez-marsal, http://investing.businessweek.com/research/stocks/private/committees.asp?privcapId=2785703
  4. 4. Page 4: BEACONI N D U S T R Y A N A L Y S I S Page 4: BEACON T E L E C O M S E C T O R I N I N D I A The Indian telecom sector is second largest in the world by subscriber base of 900.05 million as of May-2013, of which 870.23 million from the wireless connections. Also, India is the third largest in terms of internet connections. The sector contributes approximately 3% to the nation‟s GDP and grew with 20% CAGR in the last four years. The growth in this sector fuels e-commerce and propels economic and social growth across sectors. Subscription and Reach: After hitting record of 965.5 million subscribers last year, the sector has witnessed a declining trend in subscription. The major reason for the decrease is attributed to be the clean-up exercise of disconnection of inactive subscribers by wireless services companies. However, the wireless subscriptions are increasing again. Tele-density (number of connections per hundred individuals) is also rising. Tele-density in urban areas exceeds 100 due to the tendency of individuals to have more than one mobile connection. Overall Tele-density in India is 73.33. The National Telecom Policy (NTP) aims to achieve 100 Tele-density by 2020. In the wireless segment, Bharti Airtel leads in market share. However in the terms of growth, Reliance (12 lakh subscrip- tions in the month of May), Vodafone, Idea and Bharti Airtel lead the pack; PSU BSNL has a sharp decline in subscriptions. While in the wireless market private sector companies hold majority market share (88.18%), the trend in the reverse in the wireline market where public sector companies BSNL – followed by MTNL - have maximum share (78.95%). The total Broadband subscriber base is 15.13 million and reported a 5.75% YOY growth for May 2013. Among 161 regis- tered Internet service providers, the top five in terms of market share (based on subscriber base) are: BSNL (9.96 million), Bharti Airtel (1.40 million), MTNL (1.09 million), Hathway (0.36 million) and You Broadband (0.31 million). Wireless Wireline Total Total subscribers (million) 870.20 29.85 900.05 Urban v/s Rural (%) 59.99 % v/s 40.01% 78.03% v/s 21.97% 60.59% v/s 39.41% Overall teledensity 70.90 2.43 73.33 Urban v/s Rural 139.32 v/s 40.83 6.22 v/s 0.77 145.54 v/s 41.06
  5. 5. Page 5: BEACONPage 5: BEACON Spectrum allocation: Following the cancelation of 2G licenses, the government has conducted two re-auctions, the last spectrum auction being on 11 March this year. Sistema (MTS) – was the sole bidder, who won spectrums in eight circles at the minimum price. All major play- ers stayed away again citing high reserve prices again. GSM operators Vodafone, Bharti and Idea have suggested that 800MHz frequencies, used for CDMA, would be better used by E-GSM (extended GSM) as well as integrate well with the existing 900MHz GSM frequency and thus they should be allowed for upcoming auctions, a suggestion opposed by CDMA players like Reliance, Tata and Sistema. Incumbent GSM players object to govern- ment‟s move to refarm 900 MHz band after the expiry of GSM licenses in 2014, which they say will affect the continuance of their services. Indian FDI policy in Telecom: In July 2013, after fall of Sensex and rupee value, FDI in telecom sector is increased to 100%, i.e. foreign investors will no longer need to partner with Indian investors in order to comply with regulatory requirements. This will help the industry get fresh funds to lower financial burden. Industry analysts be- lieve that, this step can attract investment of USD 10 billion in near to long term. 100% FDI is also allowed in manufacture of tele- com equipments. Trends: Mobile number portability (MNP): Due to ease of procedures and competitive tariffs, MNP is on the rise. By the end of May 2013 about 93.56 million subscribers had submitted their requests to different service providers for porting their mobile number. 4G: Bharti Airtel was the pioneer in starting 4G services in India and rolled out LTE services in Bangalore, Kolkata and Pune in 2012. However the 4G services web has not expanded much. Currently, only Bharti and Reliance have the ability and licenses to launch pan-India 4G services based on the LTE standard. However, the shortage of TDD-LTE-enabled budget smartphones is a worry as the TDD-LTE standard is only used by China and India, while Europe and US uses FDD-LTE. The $7 billion purchase of equipment based on LTE standard by the world‟s largest wireless operator China Mobile Ltd is expected to bring down the high costs of building LTE networks and increase the popularity of LTE-based handsets, which will boost the 4G plans of Indian companies. Operators with a layered voice and data service model are expected to have high reve- nue growth due to value-added services availed using high-speed 4G services. Though LTE is currently is a data-only technol- ogy, Reliance and Tikona are also allowed to offer voice over 4G (VoLTE), which will support voice calls over a broadband connection and bring faster, better voice calls. Outsourcing non-core activities: Network maintenance, IT operations and customer service were outsourced. Green telecom: Department of Telecommunications (DOT) is encouraging industry to reduce its carbon footprint by covering cell towers to utilize renewable energy sources like solar power. Opportunities Challenges Increasing mobile subscriptions Untapped rural markets Rising internet penetration Intense competition Lack of proper tower infrastructure Negative impression due to 2G scam and Vodafone tax issue Sources: : www.trai.gov.in , www.dot.gov.in , http://www.ibef.org , http://www.reuters.com
  6. 6. Capgemini launches Elastic Analytics on Amazon Web Services Capgemini, the well known consulting and technology services launched „Elastic Analytics‟. Elastic Analytic will be enabling people to rapidly scale out end-to-end Business Intelligence and Big data solution in cloud. It is now available via Amazon Web Services (AWS). Elastic Analytic provides solution to infrastructure, security, support, management and maintenance on a cloud environment. The solution is able to combine large source sets of structured and unstructured data. And using existing technologies and the AWS Hadoop-based solution, it can extract and merge the data into highly opti- mized analytics engines. Capgemini customers will then be able to gain immediate business insights from their data. In addi- tion to this, the model gives the same look and feel to applications as if it is running in customers‟ own data centres. Mercer launches two important sources of information for Myanmar Foreign companies are thinking about entering in Myanmar, as the market in Myanmar is expected to grow by 6.3 % in 2013. As on June 2012 Myanmar got an investment of US$41 billion across 477 different projects. Mercer, a consulting firm has launched following two resources to help foreign companies to know about opportu- nities and challenges in Myanmar. Firstly, Total Remuneration Survey (TRS) provides information regarding current trades in Myanmar‟s market. It also helps to understand labor policies in Myanmar. Secondly, “Doing Business in Myanmar: HR Guide” is a valuable source of information that will help businesses to make informed decisions. It includes country overview, taxation policies, hiring and termination policies, compensation and benefits, labor market challenges and talent management in Myanmar. Accenture Interested in Acquiring rival Booz & Company According to a report in The Wall Street Accenture is in talks to acquire Booz & Company. This year Accenture has made series of acquisitions including Acquity Group Ltd., Fjord and Mortgage Cadence. For Accenture the deal would expand its strategy and operations consulting business an area Accenture has been trying to expand. According Kennedy Information, Accenture has roughly 2.66 lacs global employees and generated US$27.9 billion in revenue in the last fiscal year. Booz employs about 3,000 people and had total revenue of about US$1.4 billion in 2012, mostly in strategy and operations consulting. In July 2010, the firm called off its discussion on merger with A.T. Kearney. UK based Seer Acquisitions launches India operations Real Estate Consultancy firm Seer Acquisitions entered the Indian market to provide real estate investment solu- tions through its Seer Realty brand. Seer Reality will be one stop shop for Indian for any sort of investment solution in UK. According to Hamilton Butcher the general manager (Middle East) that company foresees huge potential in providing service to India based investors who want to invest into the UK real estate market and also to NRIs based in UK who want to invest in India. Company is also looking forward to diversify into various service verticals like asset management, acquisitions, bespoke residence research, and international sales and marketing in India. Australian Pharmaceutical Industries Selects TCS for SAP ERP Program Australian Pharmaceutical Industries (API), a leading pharmaceutical and health retail company in Australia se- lected TCS for providing SAP technology. API is one of the leading service providers to pharmacy industry in Australia and has a relationship with more than 4000 independent pharmacies. After a series of mergers and acquisition, API requires to unify and enhance mission-critical IT systems. TCS will help API by providing SAP ERP platform for integration of various operations like finance, merchandising, sales and customer service and logistics. Consulting World News Page 6: BEACON Sources: http://www.consultant-news.com; http://www.mercer.com/press-releases/myanmar ; http://www.deloitte.com ; www.tcs.com, http://www.consultingmag.com; Page 6: BEACON
  7. 7. Mail Answers To: simcon.simsree@gmail.com with Subject= simcon_quiz_Aug_2013 First Received All Correct Answers will be published in next month‟s Edition. B E L O W A R E A N S W E R S T O I S S U E - 9 . J U L Y _ 2 0 1 3 Q.1. For a brief period of one year, the RBI issued notes for circulation in a foreign country. Name the country.? Q.2. Which brand is associated even today with the home party plan it first held in 1948? Q.3. What is common to the Eiffel Tower and the Taj Mahal Hotel in Mumbai? Q.4. Identify this Gentleman Q.5. When Amul was building a modern dairy plant to process liquid milk UNICEF and other diary experts de- clared it impossible to process liquid milk into powder and other solid products. Undeterred, Dr Kurien’s team went ahead and achieved one of the firsts in the world. What is it? QUIZZ TIME !! QUIZZ OF AUG 2013 1.Pakistan, in 1947-48 2.Tupperware 3.The same steel used in the Eiffel Tower was imported to build the Taj Mahal Hotel in Mumbai 4.Mr. Ivan M. Menezes 5.Amul was the first in the world to convert buffalo milk to powder. Page 7: BEACON Winner of Quiz July 2013 -> Vishal Nandkumar MMS( 2012-2014) Q1. Which company has been recently forced to rename its cloud storage service name because of a trademark violation? Q2. Connect the pictures & identify the company Q3. Born in 1889, he was the son of a factory timekeeper. He attended Northwestern University, where he earned degrees in economics and psychology. After graduating, he launched his own company by borrowing $500 from a bank. Subsequently the company transformed to become one of the best consulting organizations. Identify the person and the company. Q4.In order to prevent visitors from carrying plastic water bottles into the forest areas, the forest department decided to sell its own brand of water to the visitors. Also after charging a nominal fee of Rs.5, they refunded the money when the visitors returned and submitted the empty bottle at the forest counter. Identify the place where this activity is being carried out and also name the brand. Q5. Which is India‟s largest marketing firm that uses the concept of "missed calls" to get its potential customers? Contributions invited: To make this feature a successful effort, we seek continued involvement and contribution from our read- ers, that is YOU. We invite articles and trivia on themes related to consulting. Be it industry news, consulting trends, a joke, a cartoon or feedback, we are eager to hear from you. So go ahead, do your research, pen down your thoughts and mail your entries to simcon.simsree@gmail.com. Best Regards, SIMCON –SIMSREE CONSULTING CLUB SIMSREE, B-ROAD CHURCHGATE 400 020, INDIA. Mail To: simcon.simsree@gmail.com

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