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E globuzz vol ii issue i


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Quarterly periodical of International Business Society @ SIMSR

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E globuzz vol ii issue i

  1. 1. 0|e-Globuzz,Vol II Issue I July-Sept‟11
  2. 2. ForewordDear Readers,We are pleased to present to you the 6th issue of e-Globuzz, the quarterlye-periodical of International Business Society (IBS@SIMSR).IBS@SIMSR is organizing the first International Business Conference onSaturday 24th September, 2011. While the detailed program will becommunicated to you separately, please mark this important date in yourcalendar and be there at this conference.The features in this issue include coverage on the business leader Sir Richard Branson – CEO of UKbased Virgin group, country focus on Australia, sector focus on FMCG & alumni speak by Ms. KirtiShukla (PGPIB 2002-04) – Manager – API Commercial Global Sourcing, Sandoz Pvt. Ltd. Thearticles cover a wide range of International Business topics and current affairs.During the last 2 months, IBS@SIMSR organized important interactions with two distinguishedexperts – Mr. P. R. Dalal, Executive Director, EXIM Bank & Mr. K. C. P. Patnaik, Commissioner-Income tax, Government of India. Both these interactions were highly rewarding and have beencovered under Events@IBS section of this issue.Like in the previous issues, articles in this issue have been largely contributed by SIMSR students. Ithas been our endeavor to have articles from SIMSR alumni, faculty and corporate executives fromleading companies engaged in International Business to give e-Globuzz a richer and broaderperspective.We hope you like this issue of e-Globuzz. Look forward to meeting you at The First InternationalBusiness Conference on Saturday 24th September‟11.Prof. C. P. JoshiFaculty Mentor-IBS@SIMSRProgram Coordinator PGDM-IBi|e-Globuzz,Vol II Issue I July-Sept‟11
  3. 3. Faculty Mentor VOL II ISSUE I July – Sept ‘11Prof. C. P. Joshi Company In Focus: 1 General MotorsEditors 3 Sector in Focus: FMCGManvinder K Sodhi Expert Talk: 7Prerna Makhijani Global Sourcing Country in Focus: 10 Australia International Finance: 13 External CommercialDesigners Borrowing v/s Foreign Institutional InvestmentsSwetaleena Das Challenges of 15 Communicating with aVishu Kartik Global Workforce International Logistics 17 Factors and Trend Setters Alumni SpeakCirculation 19Pranshu Soni 21 International NewsGurpreet Kaur Business Leader 23 Sir Richard Branson Events @ IBS 25 All the views expressed in this e-periodical reflect the personal opinions and views of the authors and do not reflect IBS@SIMSR views. ii | e - G l o b u z z , V o l I I I s s u e I J u l y - S e p t ‟ 1 1
  4. 4. General Motors|Vaibhav Palaye (PGDM-IB 10-12)Company Overview Brazil, China, Colombia, South Korea, Spain, Sweden, Thailand and Vietnam. In addition, itGeneral Motors is an omnipresent company also has assembly, manufacturing, distribution,headquartered in Detroit, United States, a offices and warehousing operations in 55 othercompany so essential to the overall health of countries.the U.S economy that it spawned the phrase“As GM goes, so goes the nation”. Tracing its Company Financials For the year ending 2010, GM‟s sales were to the tune of $135, 592 million. On February 24, 2011, General Motors reported its first full- year profit since 2004. It had an option of carrying forward previous losses to reduce tax liability on future earnings. It earned $4.7 billion in 2010. The Wall Street Journal estimated the tax break, including credits for costs related to pensions and other expenses can be worth as much as $45 billion over the next 20 years. Brand Varietyroots back to 1908; GM currently employs209,000 people in every major region of the GM and its strategic partners sell and serviceworld. Long known for the manufacturing of its vehicles through the following brandscars, trucks and automobiles, General Motors worldwide: Buick, Cadillac, Chevrolet, GMC,has also been engaged in finance and Daewoo, Holden, Isuzu, Jiefang, Opel,insurance. However, most recently the global Vauxhall and Wuling.recession had a devastating impact on its cash Bankruptcy Periodflows, financial conditions and operations. Tosurvive, the company had to accept a GM faced one of its worst crises as a part ofgovernment bailout plan. the global financial meltdown in the year 2008-2010. It was weakened by a substantialGlobal Presence increase in the prices of automotive fuel,GM does business in more than 120 countries. linked to the 2003-2008 energy crisis whichIt produces cars and trucks in 31 countries and discouraged purchases of sport utility vehiclessells and services these vehicles in various (SUVs) and pickup trucks which have low fuelother countries. GM‟s largest national market economy. The popularity and relatively highis China, followed by United States, Brazil, profit margins of these vehicles hadUnited Kingdom, Germany, Canada and encouraged General Motors to make themRussia. General Motors truly has an their primary focus. With fewer fuel-efficientinternational presence with factories in Poland, models to offer to consumers, sales began toRussia, South Africa, Ecuador, Egypt, slide. By 2008, the situation had turned criticalGermany, Argentina, Australia, Belgium, as the credit crunch placed pressure on the1|e-Globuzz,Vol II Issue I July-Sept‟11
  5. 5. prices of raw materials. Facing financial its operations and finances with thelosses, GM reduced its operations in many government bailout. Thanks to thefactories and drastically reduced employment restructuring, GM in 2010 posted net profitslevels. Eventually General Motors filed for and positive cash flows. The company wasChapter 11 bankruptcy protection as part of listed on major stock exchanges on Novemberthe Obama administration‟s plan to shrink the 18, 2010 with the worlds largest IPO. Theautomaker to a sustainable size and give a money realized from the IPO was used tomajority ownership stake to the federal payback US government. After the IPO, USgovernment. governments stake in the car maker has fallen to about 40 per cent from its prior 61 per cent.Comeback after Bankruptcy Future OutlookAfter the bankruptcy debacle which dentedGM‟s credibility to a great extent, the General Motors will continue to recovercompany started working its way back. As part market share and aggressively promote theof the company reorganization, the content and launch of its extended-range electric vehicles.the structure of its brand portfolio was The company will also continue to pay backreorganized. Some nameplates like Pontiac, the government ahead of schedule. AlthoughSaturn, Hummer, and service brands like bankruptcy eliminated much of the companysGoodwrench were discontinued. Others, like debt, it is ignoring the companys massiveSaab, were sold. They streamlined the product pension obligations. The huge pension liabilityline to five brands. The U.S. government is a red flag and it may land General Motors ininfused $60 billion to make sure GM had the trouble in future, if proper provision is notresources to restructure in bankruptcy. With made for the same. Thus, the road ahead is notfinancing partially provided by the US easy for GM but its CEO, „Ed Whitacre Jr‟Government, GM successfully restructured along with his team is confident of putting up a good show in the future. Did you know? Andean Community It is a South American forum of economic cooperation among Bolivia, Colombia, Ecuador and Venezuela. It was established in 1969 and it works to bring Andean sub regional integration, promote external projection, and reinforce the actions connected with the process.2|e-Globuzz,Vol II Issue I July-Sept‟11
  6. 6. FMCG Sector in Emerging Economies| Mahesh Kulkarni (PGDM-IB 10-12)Business landscape of FMCG sector is not spending in Japan grew at a compoundedonly expanding but also becoming more annual growth rate of 1.4% over 2005-2010competitive across the world over the last and it is forecasted to remain at the same ratedecade. The sector is a part of the broad over the period 20010-14. FMCG sector inclassification called consumer goods in Middle East and African region has the futureinternational context, which includes potential for MNEs with a downside politicalconsumer durables, semi durables and risk.consumer packaged goods. In Indian scenario,consumer packaged goods is popularly knownas fast moving consumer goods which majorlyincludes Household care, Personal care, Foodsand Beverages.There is a global economic imbalance betweenwestern and eastern world. Traditionallyexport dominated countries (like China, Japan,and South Korea) have to focus on domesticmarket instead of export market. Similarlywestern countries should concentrate on exportled growth instead of focusing on depletingdomestic demand. Interest rates are becomingrelatively lower in developed economies (US, Source: AC NielsonUK) compared to emerging economies. This isleading to increased outflow of capital to According to Nielsen, the growth in Europe isdeveloping economies, where there is a also not encouraging; it ranged from 0.9 % insurging demand especially in consumer goods Finland to 12.4 % in Turkey. Among the bigsector. On the other hand, this is leading to five economies, France topped the group withinflationary pressure. Central banks are trying 2.7 % nominal growth, followed by Spainto contain inflation rates by raising the interest (+2.4%) and the UK (+2.3%). Italy recodedrates. 0% growth, while Germany declined 4%. The Czech Republic and Slovakia continued toUSA, which is considered to be the major recover after several challenging of FMCG sector, had a negative Ireland, however, which had shown new signsgrowth during the year 2009 due to recession of life at the end of 2010, posted nominaland in the last fiscal it has just reached a growth of just 1.2 % primarily due to risingpositive figure of around 1%. The scenario in value growth. Irish consumers continue to beother developed economies like Japan is also quite pessimistic about the economy, the statenot optimistic. Recent tsunami has caused a of their personal finances and job prospects.short term jerk in Japan‟s economy. Total3|e-Globuzz,Vol II Issue I July-Sept‟11
  7. 7. “FMCG sector in India would touch a market size between Rs.4,000 to Rs.6,200 billion” Low penetration rates Many of the FMCG product‟s penetration rates are very low in emerging countries like China, India, Indonesia, Malaysia and Source: Nielson Retail Index Thailand, which acts as a significant driving factor for attractiveness of FMCG sector. AsAPAC region which consist of emerging per data, India has the lowest penetration leveleconomies like Philippines, Vietnam and for products like Skincare, Shampoo andIndonesia have showed a double digit growth. Toothpaste, which makes it the most attractiveThe whole spectrum is led by China and India consumer good segment amongst all Asianwhere the volumes are large. Major global countries.FMCG companies have already realized thepotential and are investing heavily in these respectively over the next five years (CLSA-markets. Rising middle class and low Mr- Mrs-Asia-2010).penetration rates of the FMCG products act asthe major driving factors for attractiveness of Per Capita Consumption in US $FMCG sector and are discussed below. Per Capita Consumption in US $ Category/Country Skin Care Shampoo ToothpasteLarge populations and rising income levels China 3.2 1 0.5 Indonesia 0.8 1.1 1Emerging market countries especially China, India 0.3 0.3 0.4India and Indonesia have the largest Malaysia 7.4 2.7 2.9populations in Asia and their disposable Thailand 7.7 2.4 2incomes will grow at the fastest rates in the Source:MOSLregion. Middle class in these countries is Source: Motilal Oswal Securities Ltd.expected to grow at 11%, 19% and 15%4|e-Globuzz,Vol II Issue I July-Sept‟11
  8. 8. Indian Scenario Higher Penetration of the Rural Population: For nearly half of the largestIndian FMCG sector is pegged at around $30 FMCG categories, rural India nowbillion (in FY10). It is the fourth largest sector contributes more to their growth thanin the economy and it constitutes 2.2 % of urban. According to a McKinsey GlobalIndia„s GDP. This sector has reported a steady Institute (MGI) study “The Rise of India‟ssale CAGR of 11.2% over FY00-10 and an Consumer Market”, the total consumptionannual volume growth of 8.5% (AC Nielson). in India is likely to quadruple makingAs per a recent study conducted by Booz & India the fifth largest consumer market byCompany, FMCG sector is expected to grow 2025. Urban India will account for nearlyin the range of 12% to 17% up to 2020 and 68 per cent of consumption growth whilewould touch a market size of Rs.4,000 to rural consumption will grow by 32 perRs.6,200 billion. cent by 2025. Government Policies for developing favorable business environment for FMCG sector: India has enacted policies aimed at attaining international competitiveness through lifting of the quantitative restrictions, reduced excise duties, automatic foreign investment and food laws resulting in an environment that fosters growth. 100 per cent export oriented units can be set up by government Source: AC Nielson, News articles approval and use of foreign brand namesIndia’s Country Attractiveness is now freely permitted. FDI Policy: Automatic investment Increasing Young Population: India has a approval (including foreign technology population with a median age of 25 years agreements within specified norms), up to as compared to 43 in Japan and 36 in the 100 per cent foreign equity or 100 per cent US. Along with a large population and for NRI and Overseas Corporate Bodies rapidly changing consumer preferences, (OCBs) investment, is allowed for most of India has translated into a large market the food processing sector except malted opportunity for FMCG players. The youth food, alcoholic beverages and those segment (10–24 years age group) reserved for small scale industries (SSI). constitutes nearly 25 per cent of the 24 per cent foreign equity is permitted in population and is of significant interest to the small-scale sector. Temporary all FMCG companies (IBEF, Advantage approvals for imports for test marketing India FMCG, 2011). can also be obtained from the Director Rise in Disposable Income: From the General of Foreign Trade. current census it is found that Indias per capita income has either just about or will soon cross the $1,000-mark (Times of Intensifying Competition in FMCG India). The precise timing matters less Industry than the implication of the achievement. P&G launched Tide Naturals (mid/low Currently, the average Indian spends about priced detergent), cut shampoo and 48%, also the majority, of his total income feminine hygiene prices by 15-20%, on groceries (40%) and personal care reduced Mach3 prices by 40% and products (8%).5|e-Globuzz,Vol II Issue I July-Sept‟11
  9. 9. launched Gillette Guard at Rs15. Olay employment, the FMCG sector has a lot to White (skin care) comes in a Rs15 sachet. gain from Union Budget 2010-11. GSK launched instant noodles (Foodles), an energy drink (Lucozade), a health Focus on rural lending and increase in snack (Nutribar) and biscuits. capital of rural banks will help farmers‟ PepsiCo, Danone and Kellogg entered new access to cheap loans. Further, extension of repayment of loan and concession for categories, often nurturing them from timely repayment helps reduce the burden scratch. on farmers. Krafts entry could be a major Various schemes for rural development development as its portfolio will compete will help improve the living standards in with Britannia, Nestle and Amul. the rural area and help provide better Domestic players like Marico (functional access to the rural heartlands. foods, hair oil), Dabur (skin care, CHD) Readjustment of tax slabs will help and Emami (hair color, personal care) are increase the disposable income in the entering new categories in search of hands of consumers. growth drivers. Concessional duties and exemption of service tax will help boost setting up ofBudget Impact on FMCG Sector cold storages, cold units and refrigeration units.With higher disposable income in urban Reduction of excise duty on sanitaryhouseholds and a significant portion of the napkins and diapers will help reduceunion budget allocation towards the prices on these items.development of the rural sector and rural Did you know? Nordic Council A regional alliance was established in 1952 among Norway, Sweden, Finland, Denmark, and Iceland that is dedicated to cooperation among the Nordic countries. This has led to a common labour market, social security, and free movement of citizens across borders6|e-Globuzz,Vol II Issue I July-Sept‟11
  10. 10. Global Sourcing- Changing face of Globalization|Corporate Article by Kirti Shukla,Manager – API Commercial Global Sourcing,Sandoz Pvt. Ltd.I drive a Mercedes Benz wearing a Versace me service/ develop technology overcomingjeans and Nike T-shirt, carrying an Apple my limitations or just help me concentrate oniPod, fiddling with my Blackberry, typing my other factors thus helping me expand and beFacebook status profitable at business? It does not matter if thewhen signal turns supplier is in my country or in any other partred. My Louis of the world. I source from you and sell to youVuitton bag lies in and yet make money, funny but true.the back seat and Ihead towards Hard This gives us a kind of abutment to the basisRock Cafe looking of Sourcing concept although this is not theat my Rolex watch only factor. If we look back and see, thejust to check if I am not late, I guess I have process of globalization started withenough reason‟s to be called globalized in all developing countries exporting cheaperrespects. products to developed nations where cost of production had gone abnormally high due toWell here „I‟ is not literally me various factors. But over a period of time this(unfortunately!) but a high end consumer in process has evolved into a much biggerIndia, China, USA or anywhere on this globe phenomenon called “Global Sourcing”. Withand is connected to the world. The brands vary time and changing trends, world overbased on purchasing power and preference, but procurement or buying has become one ofnonetheless massive consumerism is the new those key elements that decide futuremantra today. strategies and vision of all large cap and small cap companies.Physical distances are no longer importanteven for a seller, considering companies have In simple terms, Global sourcing is no moreaccess to markets of countries far and wide. As just an import / export business for companiesa company in business, I want to penetrate into comprising of a small chunk of their businessevery market, deliver a high quality product initially; but has now actually evolved into afrom which I derive maximum profit and much important sourcing tool that decides thecustomer loyalty. If my location is hindering overall strategy for any organization thatmy business model because of high overheads, wants to operate globally by either beinglabor cost, inability to produce volumes etc. present in other countries or by simplyand also as it‟s impossible for me to be sourcing few products or services from bestcompletely vertically integrated and make available sources in different countries. As aeverything which is used in my product; what strategy it is helping companies in allam I supposed to do? Search for suppliers who significant sectors to operate with lesser costscan make my product/ part of the product/ give and get best quality products /services.7|e-Globuzz,Vol II Issue I July-Sept‟11
  11. 11. “With each new change there come some challenges,which are to be dealt with same finesse as change itself.”The company outsources those manufacturing since long been the key outsourced humanresources and capabilities or resource for where the suppliershave a competitive Majority of theadvantage, e.g. greater companies in all sectorsscale, fundamentally lower currently talk about thecost structure or stronger concept of Low costperformance incentives. It country sourcing anduses outsourcing India and China remain toproactively through a be the biggest hub forstronger focus on the core sourcing. Be itbusiness areas as a way to pharmaceuticals, textile,improve manufacturing performance, generate IT, automobiles,employee commitment and consequently consumer goods, toys, technologies, services,increase competitiveness and profitability. R&D etc., everyone has geared up to manufacture and supply to bigger business giants. Contract manufacturing is a conceptIf we look at developing countries, they are mostly used by companies who wish to focusbecoming more flexible in terms of their on their branding and product portfolio.export policies and benefits offered to Therefore they transfer technologies or ask themanufacturers to be a part of the global smaller player to manufacture the productmarket. Export oriented units, FTZs, DEPB itself for them. Another approach to this isscheme, EPCG, deemed exports are all joining hands with local players who areincentives given to Indian manufactures by strategic suppliers. As the gates open for 51%government of India to help in exports. FDI in Indian retail sector we will for sure see lots of mergers and joint ventures taking place.Let‟s take a similar example, today if we shopfor souvenirs in USA or a similar tourist place Countries like China, India, South Korea andin Europe we can buy merchandise which Vietnam might be ranked higher on FDIflaunt the name of country in which it was investments but countries like Hong Kong,purchased but as we read the small tags and Singapore and Ireland are ranked much higherbar codes one can find out, „Made in India or for being more competitive in terms of ease ofChina‟ most of the time. The trend somehow doing business with these countries. Thesepicked up in a big way from IT companies countries have more relaxed policies forwhich started sourcing software development foreign exchange regulation, taxation andfrom low cost countries. Then the concept of other government policies which facilitateBPOs and KPOs was invented and is still companies from other countries to carry outthriving. Today there is no limit as to what all their operations hassle-free. Competitivenesscan be outsourced. Right from R&D on these grounds has helped countries liketechnologies to people and services, Hong Kong to become a commercial hub andeverything today can be procured. In fact, a global destination for many companies.engineers from reputed institutes of India have But with each new change there comes some challenges, which are to be dealt with the same8|e-Globuzz,Vol II Issue I July-Sept‟11
  12. 12. finesse as change itself. With each leap of floods effect the economy of a country,globalization and open economies, comes the making sourcing a tough activity.challenge of integrating these economiesseamlessly. Business carried out between two All these factors need to be seriouslycompanies situated in two different countries considered while drafting a sourcing strategyhas direct impact on their respective for a broader timeframe. As sourcing is noweconomies. Since the quantum of business becoming the backbone of entire businesscarried out between most of the major models there are various sourcing tools whichcompanies are of much larger size, it can have are designed and utilized by souringa direct impact on the commercial setup of the professionals in order to make the businesscountry in which that company operates. So in plan. Im sure with more companies andthis scenario where economies are open to countries open to source globally, it wouldforeign players and huge transactions take ensure that customers in each countryplace across these countries, economies need are benefitted and better served by theto be very well administered so as to avoid any strategies devised.external influence affecting their overall well- Of course everything has its own boons andbeing. In recent past there have been many banes, Global sourcing too has lots of benefitscountries which have been at the receiving end but a miscalculated step in this arena can leadof bad administration at home due to which to huge business losses. Still, the concept hasthey had to face difficult situations. Hence already taken off in full swing and will sure benow companies are not only evaluating their increasing.vendors‟ economic well-being but are alsoevaluating the commercial, political and socialenvironment in which that company operates.From fluctuating currencies, to changingpolicies, natural calamities, political unrest andeven climatic conditions like bad monsoons or9|e-Globuzz,Vol II Issue I July-Sept‟11
  13. 13. Australia|Kapil Jain (PGDM-IB 10-12)Australia, officially known as Commonwealth Weatherof Australia is an independent nation withinthe Commonwealth. It is a country located in Much of Australia has a continental climate.the Southern Hemisphere which comprise the The temperatures get hot during the day, andmainland of the Australian continent, the then drop considerably at night. Australia isisland of Tasmania and numerous smaller also very arid and gets very little rain.islands in the Indian and Pacific Ocean. Thecapital of Australia is Canberra, which is in the Political SystemAustralian CapitalTerritory (ACT). Australia is an independent nation withinHistory the CommonwealthThe first inhabitants of having FederalAustralia were the Parliamentary Democracy.Aborigines, who Queen Elizabeth II of themigrated there at least United Kingdom, the head40,000 years ago from of the Commonwealth andSoutheast Asia. There the hereditary monarch, ismay have been between the head of state and ishalf a million to one represented in Australiamillion Aborigines at by a governor-general.the time of European settlement; today about The governor-general is appointed by the350,000 live in Australia. Australia is still part monarch on the recommendation of the primeof the British Commonwealth. minister and head of government. The governor-general represents the monarchsSociety and Culture interests in Australia.Even today, Australia is heavily influenced by Currencyits British and European origins. AlthoughAustralia has no official language, English is Australia has had a freely floating currencyso entrenched that it has become the de facto since 1983. The Reserve Bank of Australianational language. Australia has no state (RBA) restricts its intervention in the currencyreligion. Freedom of religion is protected market to smoothing out short-termunder Australian constitution with 19% of disturbances, in the form of currency buyingpopulation following no religion and the rest and selling operations, rather than attemptingfollow mostly Christianity. All children to fix the value of the Australian dollar orreceive 11 years of compulsory education offset underlying market trends.from the age of 6 to 16 (class 1 to 10),contributing to an adult literacy rate that is Economyassumed to be 99%. Culture has been stronglyinfluenced by the Anglo-Celtic western Australia is the 13th largest economy in theculture. world according to nominal GDP (current10 | e - G l o b u z z , V o l I I I s s u e I J u l y - S e p t ‟ 1 1
  14. 14. prices) and the 17th largest according to GDP Business Opportunity(PPP). In the past two decades, Australia hasenjoyed a period of uninterrupted economic Australia was ranked third in the 2011growth – an average of 3.3% in real GDP Economic Freedom Index behind Honggrowth annually. In 2010, Australia‟s GDP Kong and Singapore and continues to providewas distributed as follows – agriculture an ideal environment for business.(3.8%), industry (24.9%), services (71.3%). Australian interest in India and Indian businessAs with most advanced economies, Australia has phenomenally grown in the past few years.has a dynamic service sector. This includes Apart from the cost advantage, Australiasindustries such as banking, insurance and extensive skill shortage has been the majorfinance; the media and entertainment driver for many Australian companies seekingindustries; consulting, tourism and retail; products and services from India. In the pastservices provided by government, such as two years, over fifty Indian companies haveeducation, health and welfare; and other also set up offices in Australia and are doingpersonal and business services. While the business successfully.service industry remains the backbone of The agriculture sector in India can capitalizeAustralia‟s economy, Australia‟s mining on the Australian post-harvest technology andindustry has been the catalyst for economic highly sophisticated farm management systemgrowth in the past decade. Large quantities of to bring down theminerals and resources can be found inAustralia. Australia has the world‟s largestresources of recoverable brown coal, lead,zircon, nickel, tantalum, uranium and zinc, andranks second in the world for bauxite, copper,gold and silver. Today, Australia is ranked19th in the world for both imports and exports.Foreign RelationsAlong with their relationship with China,Australia holds multiple free trade agreementswith numerous other countries such as the US,Singapore, Chile and Thailand. However, losses, which were 30% to 40 % and canAustralia‟s most notable trade partner is New achieve self-sufficiency in the sector.Zealand. The Australia New Zealand Closer Huge potential for Indo-AustralianEconomic Relations Trade Agreement cooperation exists in infrastructure(ANZCERTA) has greatly integrated both development including roads, ports, airportseconomies and there are now plans to create a and railways; power sector; mining; oil andsingle Australasian economic market by 2015. natural gas including LNG; biotechnology;Australia is also member of numerous drugs and pharmaceuticals; informationorganizations such as APEC, the G20, WTO technology; water management, soiland OECD. conservation and waste disposal; food processing and agribusiness; film andTime Zone Difference television; processing of gems and jewelry; tourism; and education.Australia is 4.5 hours ahead of India.11 | e - G l o b u z z , V o l I I I s s u e I J u l y - S e p t ‟ 1 1
  15. 15. India – Australia Relations Australia mainly exports mined and agricultural goods to India, while Indias chiefBoth countries are members of the exports are pearls, precious and semi-preciousCommonwealth, founder members of the stones, textiles and clothing. Over 97,000United Nations and members of the Indian Indian students enrolled in Australia in 2008,Ocean Rim – Association for Regional representing an education export of a$2Cooperation (IOR-ARC), ASEAN Regional billion. But, in 2009-10 attacks on IndianForum (ARF) and dialogue partners with students strained the relations between the twoASEAN. nations. The full potential of Indo-AustralianThey both have a free press and an trade and economic relations has not beenindependent judicial system; the English realized and there are considerablelanguage is an important link. Cricket is a opportunities towards their consolidation.significant element in awareness at the popularlevel. Road aheadAustralia is Indias ninth largest source ofimports. Over the past five years, India has The opportunities in Australia are diversebeen the fastest growing market for Australian across multiple industry sectors including longexports. Investments have been growing established resource and commodity sectors,rapidly with Australia represented through an as well as relatively recent interest and activityincreasing Australian company presence on within the services sectors.the ground in India, and with increasing Australia and India have been working toinvestment by Indian companies in Australia, develop a bilateral free trade agreementin particular in the resources, IT, focusing on areas of complementarities andinfrastructure, manufacturing, financial working to find balance in areas to be furtherservices, biotechnology, clean energy, tourism developed. A feasibility study has beenand hospitality sectors. completed for the Free Trade Agreement.Some of the Australian companies operating in Going forward Australia is well positioned toIndia are Cartridge World, INCITE Group, complement India‟s strong economic growth.MyFactroy India , Pitcher Partners while someof Indian companies in Australia are AdityaBirla Group, Lanco Infratech Ltd, A.V.Thomas & Co. Ltd, Adani group, Infosys, Tataconsulting, Satyam.12 | e - G l o b u z z , V o l I I I s s u e I J u l y - S e p t ‟ 1 1
  16. 16. External Commercial Borrowing v/s Foreign Institutional Investment|Ajit Kumar (PGDM-IB 10-12)External Commercial Borrowings (ECB) of USD 250 million can be raised for arefers to commercial loans in the form of bank minimum of ten years, buyers‟ credit, suppliers‟ credit,securitized instruments (e.g. floating rate notes Although, ECB is a wildly popular means forand fixed rate bonds) availed from non- raising funds by the Indian corporate at anresident lenders with minimum average inexpensive rate, the problem with ECB is thatmaturity of three years. Foreign Currency the borrower either carries a high currency riskConvertible Bonds (FCCBs) is an ECB or bears the cost of the hedging.instrument in which a bond issued by an The other alternative for raising funds byIndian company is expressed in foreign Indian corporate from foreign investors is tocurrency, and the principal and interest in allow foreign investors to subscribe to therespect of which is payable in foreign bonds issued by Indian corporate in rupeecurrency. denomination. The investor will subscribe toThe recent defaults by a number of Indian Indian corporate and government bond andcompanies (especially in the mid-cap segment, can earn a higher rate of return, but at the samewhere fewer refinancing avenues are time, the foreign investors rather than theavailable), raise the question whether ECB is a Indian borrowers will be exposed to theprudent source of financing for the Indian currency risk.corporate. Through the ECB route, Indian Keeping the above point in mind, the FII limitcorporates can raise foreign currency at a for investment in corporate bonds has beenmuch lower rate but are exposed to unlimited raised to USD 40 billion from USD 20 billion,currency risk if they keep their position as suggested by finance ministry in the 2011vulnerable. However, a fully hedged position annual budget.will cease to have advantage of the interestrate differential. To attract FIIs to invest in Indian bonds, it‟s imperative to develop an efficient secondary Currently, an eligible borrower can access bond market in India which is currentlyECB under two routes, Automatic route and lacking. The twelfth Five-Year Plan (2012-Approval route. The maximum amount of 2017) estimates an infrastructure spending ofECB that can be raised by an eligible borrower USD 1 trillion. The planning commissionunder the Automatic Route during one estimates that there is a gap of $100 billionfinancial year is USD 500 million and the that needs to be bridged from foreign sources.minimum maturity period should be threeyears. Under the Approval route, an additional Hence development of a competitive bond “Development to a competitive bond market is essential for infrastructure development in India”13 | e - G l o b u z z , V o l I I I s s u e I J u l y - S e p t ‟ 1 1
  17. 17. market is essential for infrastructure Currently, the total outstanding corporatedevelopment in India, which in turn is bonds is just about INR 8 lac crore (or ~15%essential for sustaining a high GDP growth for of GDP) vis-à-vis INR 22.5 lac crore (or ~40%a longer period of time. of GDP) of government securities. Compare this data with other countries, where theAlthough the investments in the infrastructure outstanding corporate bonds accounts for 61%bonds will have a lock-in period of 5 years, of GDP in Korea and 37.5% of GDP inbut raising the FII limits in corporate bond Malaysia. Indias corporate bond market, aboutmarket is a welcoming step towards market 30% the size of Chinas, is failing to expand atdevelopment. the rate analysts say is needed for theThe recent introduction of Credit Default government to meet its target of buildingSwaps or CDS products to cover the credit risk infrastructure.for corporate bonds is yet another positive To conclude, it could be said that much moremove in this direction. CDS would further has to be done. Financial reforms like raisingincrease investor‟s interest in corporate bonds the Foreign Institutional Investment caps andand would be beneficial for the development introducing CDS are just a few initiatives inof the corporate bond market in India. that direction.____________________________________________________________________________________________14 | e - G l o b u z z , V o l I I I s s u e I J u l y - S e p t ‟ 1 1
  18. 18. Challenges of Communicating with a Global Workforce|Sushma C S (PGDM–HR 10-12) Globalization and its effects on the corporate this challenge only by adopting newbusiness have changed the relationship approaches for communicating with the globalbetween employer and employee. workforce. Creating an alignment of corporate goals and values become tougher when it has to be done across cultures and borders. It will have to be kept in mind that failure of communication strategy will have a catastrophic effect on the business outcome. With the bar of proficiency rising, the employees need to be trained adequately to take on the challenges of working in aThe traditional relationship has ended due to distributed environment. English might provechanges in management practices which are to be helpful while dealing with clients anddriven by changes in the environment of the customers in the USA and other English-business. Any kind of organizational change- speaking nations. The same skill fails tofrom introduction of new workforce program impress when it comes to European a change in business strategy like a merger Training in other languages becomes aor acquisition requires effective challenge to aid the employee and facilitatecommunication and trickling down of him to handle meetings or unexpected mattersinformation from the top level to the lower with confidence. Recruitment for a globalrungs of employees. With the advent of workforce also entails a similar challengetechnology one can see the changes in every where segmenting the targets into clusters andsector of management. Although tailoring the communication for each specificcommunication has penetrated several levels group needs to be taken care of.due to the use of internet and peopleperpetually being online, it is still a topic of The HR department comes into focus for theconcern not just for the Human Resources development of a framework or strategy toDepartment, but also for the senior ensure communication in a global Reinforcing the business strategies, policies and procedures is required in order to drive theWith the rise of global economy and spread of message to a global workforce. But it shouldbusinesses around the world, teams and be made sure that these are in sync with themanagers need to communicate around the culture of the workplace and does not hurt anyworld and not just around the corner. Around religious or traditional sentiments. Bringing all70% of the global workforces are knowledge the departments and support staff on the sameworkers and they need to be sustained to have page becomes necessary in order to achievea competitive edge. The organizations face the goals. The local business heads and the HRchallenges in terms of linguistic, cultural, teams should be actively involved so that theyreligious, social and time-zone differences can completely understand the businessamong the global workforce. They can surpass15 | e - G l o b u z z , V o l I I I s s u e I J u l y - S e p t ‟ 1 1
  19. 19. messages and effectively relay it to their local role when it comes to communication acrosscolleagues. They can also help in maintaining boundaries. Although technology has helpedthe consistency of the messages that leave the to reduce the impact of time-zone differences,head office and reach the regional offices. it greatly depends on the infrastructure available at the various offices. EfficientOne of the issues that keep re-surfacing in infrastructure needs to be built in order toevery business is that of engaging the make the maximum use of technology foremployees for better productivity. Employee communication. The future-looking managersengagement in a global workforce attains usually take full advantage of today‟sgreater importance because it becomes technologies in order to conquer the languagenecessary to work in sync with employees and culture barrier. Innovations in technologyspread across the world. An engaging have facilitated the ability to offshore manyworkforce not only increases the bottom-line, back-offices and call center services. Thoughbut it also helps in better retention of high- this resulted in reduction of operatingperforming employees. Hence, effective expenses, it has given rise to the necessity tocommunication gets to make or train employees in various culture-break the situation. Aligning the related soft skills to cater a variedcommunication strategy with the customer base.objectives of the organizationbecomes a priority task for the In an international businessmanagement. Communication is scenario, virtual teams haveone of the drivers of employee become a norm and communicatingengagement and if done with them is a challenging aspecteffectively, it can work wonders of the business. A standard formatfor the organization. With better for communication helps to negateleadership interaction, which includes CEO the absence of physical contact. Effectivevisits to various business units across the implementation of all these approachesglobe, the organization can hope to have an depends on training, acceptance of protocolsengaging workforce which is committed to the and the personal initiative taken by employeesorganization. But engaging a global workforce to make it a success. The global workforce isentails many challenges. Employee expanding and re-shaping every moment, thusengagement programs that work for one set of emphasizing the importance and participationemployees in a country might prove to be of management in effective communication.useless with employees of another country. It Consistent transfer of knowledge, expertiserequires thorough research into the cultural and critical capabilities is the most importantand geographical details of each region to factor for the success of an MNC. HRknow the employees. Things that motivate becomes the key resource for transferringemployees in India who are collectivistic in these capabilities across the business units.nature will be different to those in the USA Sourcing of right people to fill overseaswho are individualistic in nature. The positions, effective reporting systems fordependency of employee engagement on international assignments and preservation ofculture needs has to be driven home by the both explicit and tacit knowledge will makemanagement in order to succeed in retaining the task easier.employees. Communication across thebusiness units and departments makes the Ultimately, the most successful companies insituation much more complex for the the world of business will be the one who canmanagement. Technology plays an inevitable recognize the primary importance of effective communication in a workforce.16 | e - G l o b u z z , V o l I I I s s u e I J u l y - S e p t ‟ 1 1
  20. 20. INTERNATIONAL LOGISTICS – FACTORS AND TREND SETTERS| M Iqbal (PGDM–IB 10-12)Introduction top are C.H. Robinson Worldwide, Con-way, Alexander and Baldwin, Hub Group etc.Globalization paved way for a myriad of Among the Indian top feature TNT Express,companies opening up in their foreign outlook. AFL, Gati, Safexpress, Ashok Leyland etc.The aftermath of the culmination of theIndustrial Revolution witnessed large-scale Theoryproduction of commodities and services. Manydeveloped nations produced surplus quantities When we talk about logistics or supply chains,thereby creating friction in demand. However we ought to know the two basic types ofadvancement in technology (particularly supply chain models- Responsive and Efficienttransportation) and communication enabled supply chains. Responsive type generallywhat is called Globalization, a breakthrough caters to the innovative products like jewelry,phenomenon that broadened the horizons of computer hardware, laptops, sanitary ware etc.hundreds of thousands of firms. Initially that have strict delivery timelines. In this case,Foreign Trade was seen as a potential cost, optimization of resources like labour andcompetitive edge for companies, which later transport overheads and route-economics aretranspired to be just another feather in the hatof companies, which now is just an order-qualifying feature of companies. Every othercompany nowadays is interested in theoverseas.Subsequently, logistics and logistics firms are trade-offs. Efficient supply chain type on thein the limelight, focus on them is gradually other hand has opposite features. Deliveryincreasing when considering the best timelines are relaxed but efficiency in thepracticable business options. Another supply chain in terms of cost, labor and othersignificant merit of the logistics industry (or in resources is vital. Examples are fundamentalthat case any service industry) is that the commodities like food items having longinventory like trucks, carriers, containers etc. shelf-life, almost all FMCG products,(if owned) is a major asset that depreciates electronics (not on order) etc. Most of the topinsignificantly over time, revenues are end logistics companies have tactically comeconsistent, and demand fluctuations are up with an integration of both types and haverelatively less. In the long run at least, this area done wonders. Such companies manage topromises decent enough prosperity, if provide solutions to any and every logisticsestablished well. European Union, U.S and issue in the country. They are better explainedChina have the highest money in foreign trade, in terms of another type of supply chain- awith $320 billion, $240 billion and $220 flexible one.billion respectively. There are 17 logisticscompanies in the Fortune 500, a tremendous In a nutshell, deciding the best in the logisticsincrease from 7 a decade earlier. Some at the industry is however an exacting pursuit. It17 | e - G l o b u z z , V o l I I I s s u e I J u l y - S e p t ‟ 1 1
  21. 21. depends on the products to be transported. Trend Setter 2: Con-way, IncThere are several parameters on whichcompanies can be evaluated on, likeinfrastructure of the company, providing end-to-end solution, type of supply chain(responsive or efficient), niche, prominence The International Freight and Logistics giantand growth etc. However, as argued by Con-way Inc. is again an inspiration, withMalcolm Gladwell in his book „Blink‟, a „thin- 400,000 customers and about 30,000slicing‟ approach by narrowing down the employees, specialized in LTL (less-than-parameters to a suitable and optimum filter truckload) to full truckload and truckbased on the concerned interests would rather brokerage. The strength of Con-way reflects inmake decision-making easier. the dominant share of freight andTrend Setter 1: Ashok-Leyland transportation services on the U.S-Mexico route. They also provide a wide range of order winning innovative solutions to business strategies, accelerated order cycle times, tight supply-chain-control, reduced costs, improved inventory fulfillment etc. They have employedAshok Leyland pulled in an 89% increase in the global 3PL solutions that address the mostthe net profits and 72% increase in the complex supply chain challenges. This is theirrevenues. Ashok Leyland is related to logistics competency and they justify it by excelling inas being a major player in the transportation of executing their strengths. Lean logistics witharmy equipment and military artillery for the emphasis on mistake proofing and reducingIndian Army. Serving as a co-chairman for and route-overlap has been their key area ofyears for Ashok Leyland, Mr. Hinduja had put proficiency. Con-way is an example ofin tireless efforts in founding a long-term consistent change-adapting firm, precisely therelationship with the Indian Army, which bore flexible approach that we discussed earlier infruit finally. A couple of years ago, Ashok this passage.Leyland went into a common venture withJapanese auto giant Nissan Motors which will Final wordshare a common manufacturing facility in Supply Chain management has taken a totallyChennai. With this, Ashok Leyland novel stance in the recent years with themetamorphosed into a powerhouse of vehicle advent of technological procedures of trackingproduction with more than 75,000 vehicles and GPS. Internationally, if one is looking atproduced yearly. This enabled it to flourish in making a mark, latest practices need to bethe logistics industry. The Comet 1611 truck deployed on the logistics front. Optimization islargely serves the logistics requirements. a result of a real-time visibility into the supplyAshok Leyland is an example of an Indian and delivery chain. The „one-size-fits-all‟company setting world-class standards and approach is getting more and more obsoleteleveraging itself to justify its status quo. and uneconomical. International companies are seeking a keenly tailor-made process for every business situation, simultaneously leveraging a legacy of supply chain experience and a deep bench of technology innovators.18 | e - G l o b u z z , V o l I I I s s u e I J u l y - S e p t ‟ 1 1
  22. 22. Alumni Speak!!!|Editor: Atul Sinha (PGDM-IB 10-12) a long road ahead where I aspire to walk & run but never stop and for me the wheels which are and shall take me ahead are my basics & concepts learnt at SIMSR. Over the last seven years how have you leveraged your learning pertaining to IB? For two years we learnt concepts in international markets, cultures, businessMs. Kirti Shukla, alumnus of PGPIB (2002- requirements, policies, documentation,04), is currently Manager-API Commercial strategies and much more. I was lucky to get aGlobal Sourcing at Sandoz Pvt. Ltd. She has campus placement & started with Internationalalso worked with Torrent Pharmaceuticals as marketing in pharmaceutical industry. So,Assistant Manager (2004-2006). Post- what all I learnt, I got a chance to relate fromgraduation in International Business led her to day one of my job.start her career in international marketinginvolving global markets. Of course in the beginning you need time to fit in the system and actually contribute but theFollowing is the excerpt from an interview background is what helps to excel. Switchingwith her. from Torrent Pharmaceuticals to Sandoz Pvt. Ltd was convenient because the profile ofWhat were your expectations when you global sourcing here required a person whojoined PGPIB at SIMSR in 2002? knew International Business and had workedThe maximum percentage of students pursuing in international markets. I had both, thanks toMBA aspires to be well placed, I was no PGPIB & SIMSR.different. Yes, a course in IB somehow gave Today in global sourcing, I am responsible forwings to my dreams of getting a job which strategic sourcing and my understanding of thetakes me across the world. PGPIB was a very export policies, export terms and shippingyoung course when I joined and we were just procedures gives me added advantage inthe 3rd batch. Being a fresher, just out of negotiating with vendors & making relevantcollege, I was naïve to the corporate world and source plans for the business. The case studiesfor me SIMSR was an institute which I hoped & projects we did during the course onwould help me learn basic concepts and pre- cultural attributes, international markets &requisites of business & for sure get me a job. global issues helped me picking up the globalToday I can proudly & happily say that being business faster and today when I travel acrossin IB was one of the best things that happened the globe & interact with stakeholders of myto me. Even though the course was new, the project, who sit in various countries of thefaculty was excellent & they guided us to the world, I feel it‟s easier because of my IBdirection of forming a plinth strong enough to our futures in the competitive corporate I think what helped the most in moving myworld. I am still new to the industry & there is career was recognition which I carry being a19 | e - G l o b u z z , V o l I I I s s u e I J u l y - S e p t ‟ 1 1
  23. 23. student of SIMSR and the IB course that was a confident that my learning and my attitude willstep to catch up the escalator of international help me achieve my I still have lots to learn but I feelWhat do feel you should be the capabilities make your own groups and discuss them.and skills PGDM (IB) students should When applying for jobs try and focus ondevelop while at SIMSR? profiles being offered. Developing something what you have is easier rather than startingEducation at a management college is all about from scratch, hence don‟t rush or panic if youconcepts & application. Read! That‟s the buzz find difficult changing your sector or yourword for everyone - journals, business package is not great, see what comes your waymagazines, articles on international markets, and how best you can shape out of it.countries, current issues, biographies ofentrepreneurs are a great source of learning. I believe, getting a job is easier but sustaining it & growing in it is what needs efforts. So theAlso, stay positive and try to get less first job you get is not the end but thedistracted. Don‟t just stick to the college beginning and from there how you mould yourassignments, try and solve case studies career is all up to you.available on various websites and magazines,20 | e - G l o b u z z , V o l I I I s s u e I J u l y - S e p t ‟ 1 1
  24. 24. International News|James Ganesh (PGDM-IB 10-12)Many important events took place in Africa in counterparts. Notably Chinese and Indianthe last one year from unrest in Egypt to firms are operating in African continent withLibya`s demand for a separate nation, South different business strategies.Sudan which was recently formed from Sudan. A report by the Norwegian Peoples Aid shows foreign and domestic companies have acquired large amount of rural land through leases with communities and government institutions, at least a tenth of Southern Sudan. Security analysts and humanitarian organizations warned that even as reconstruction gains a footing, this is exposing the country to possible food problems and conflicts in the coming years. Over the past four years, foreignSouth Sudan got independence on July 9, 2011 interests sought or acquired 2.64 millionfollowing nearly 50 years of war with Sudan hectares (26,400 sq. km) in the agriculture,and millions of deaths. Independence for forestry and bio fuel sectors alone; an area thatSouth Sudan was declared six years after it is larger than the whole of Rwanda. As persigned a peace agreement in 2005 to end a World Bank`s report, Africa‟s population isdecade-long war with Sudan. Abyei is very expected to reach 1.4 billion by 2025 and mostrich in oil resources and thus is the of the arable land in Africa is already leased tocontroversial region between Sudan and South multibillionaires all over the world.Sudan; it is still not decided to which countrythe Abyei region belongs. It is alreadyreiterated by Omer Al-Bashir of Sudan thatany attempt by the new state in South Sudan toimpose a unilateral reality in the hotly-contested region Abyei could potentially leadto a war with the South.Official language of the country is English asit is one of the largest spoken international Now the point is that how the Africanlanguage and official language in many countries‟ government will put some polices tocountries including India. develop the people of the country rather thanSudan has planned to join the East Africa feeding world population at the expense of itsleague and India is also planning to have an own people. MNEs need a close watch on theagreement with East African countries. South policies especially distributive risk in theSudan is very rich in oil resources and African countries. But chances of aagriculture. Indians and Chinese firms have catastrophic political risk are less as Africanalready invested a lot in African markets. countries started giving importance toHowever, the Indian companies are spending a international relations and trade.lot on training local people than their Chinese21 | e - G l o b u z z , V o l I I I s s u e I J u l y - S e p t ‟ 1 1
  25. 25. MNEs operating in Africa must have a holistic approach in conducting business and must include local people in the operation of the business and should concentrate more on training and developing the local community to have long term presence in African countries. “South Sudan gained independence from Sudan as an outcome of a peace deal that ended Africas longest-running civil war”_________________________________________________________________________________ Did you know? Bretton Woods Agreement An agreement among IMF countries to promote exchange-rate stability and to facilitate the international flow of currencies Calvo Doctrine A foreign policy doctrine that states that the country in which an investment is located has jurisdiction over that investment disputes if any arising with foreign currency are required to be resolved in national courts under national government.22 | e - G l o b u z z , V o l I I I s s u e I J u l y - S e p t ‟ 1 1
  26. 26. Sir Richard Branson|Swati Moolchandani, Swetaleena Das (PGDM–IB 11-13) rules and regulations, and seeing the energy of student activism in the late 60s, he decided to start his own student newspaper and it was an overnight success. This was the stepping stone in his entrepreneurial journey. Richard Branson has created one of the most recognizable brands in the world. In Britain where he focuses much of his attention, Branson has managed to "Virginize" a very wide range of products and services. The variety of business includes Virgin Atlantic, Virgin Megastores, Virgin Books, Virgin Credit Card, Virgin Holidays, Virgin Trains, V2 Music, Virgin Active and VirginA billionaire businessman, Sir Richard Galactic.Branson is the founder and CEO of the mega-corporation known as the Virgin Group. There are plenty more businesses that wear theBranson is a harbinger of the Virgin publicity Virgin name throughout the world and theremachine and has made himself one of the best- will probably be more to come as Branson isknown businessmen around the world. always looking for an interesting business to start. One important element in Bransons success is his belief in delegation. His VirginRichard Branson was born on July 18, 1950, in record company, now divested, was a perfectBlackheath, London. Branson was educated at example of how he organizes his manyScaitcliffe School (now Bishopsgate School) ventures.until the age of thirteen. He then attendedStowe School until the age of sixteen. Branson is also inclined towards philanthropyAlthough he had suffered from dyslexia since and various initiatives taken by him are aan early age but that did not come in his way testimony to it. Hes pledged the next ten yearsto showcase his ability to connect with people. of profits from his transportation empire (an “Virgin Group is an organization driven on informality and information, one that is bottom heavy rather than strangled by top level management.”While in school, he scored terribly in IQ tests amount expected to reach $3 billion) to theand memorizing words were a nightmare for development of renewable alternatives tohim. Frustrated with the rigidity of school carbon fuels. Another initiative of his is called23 | e - G l o b u z z , V o l I I I s s u e I J u l y - S e p t ‟ 1 1
  27. 27. the Virgin Earth Challenge, where a cash “Losing My Virginity: How Ive Survived,award of $25 million prize goes to the Had Fun” and “Made a Fortune Doingindividual who comes up with an Business My Way” to name a few.economically viable solution to the greenhouse During his career his efforts have beengas problem. recognized and awarded. He has been felicitated with esteemed awards like anBranson is also known for his unique character honorary degree of Doctor of Technologyand leadership styles, one who is not afraid to from Loughborough University in 1993.take risks, and believes that people are the Branson was awarded with the Knighthood infoundation to companys success. He is truly 1999 for his contribution to entrepreneurship.of the people, by the people, for the people- In January 2011 Branson was also awarded theshowing traits of a democratic leader. He German Media Prize (organized by "Mediacarries a notebook in his pocket all the time Control Charts"), previously handed to formerjust in case he hears something interesting U.S. president Bill Clinton and the Dalaifrom people that he interacts with on any level it an employee, friend, business partner or a Branson is full of passion and believes incomplete stranger. He feels that good ideas living life to the fullest. Since 1985 he hascan come from anywhere and anytime. He has been getting his adrenaline rushes throughsaid before, however, in spite of the above world record breaking attempts by boat andfacts, he always maintained the authority to hot air balloon. Several distance and speedtake top decisions which involved high risk records have been attempted and achieved, butand long term impact. He also stresses on the his attempt to be the first person toimportance of being a regular guy and making circumnavigate the world in a hot air balloonyour employees feel important. He feels that was never achieved. Branson makes each record attempt a media event with his Virginpraise goes much farther than criticism and he logo prominently displayed during everylikes to make sure his people that work with launch, which has been an excellent source ofhim are taken care of. One example of this was free advertising and brand placement forwhen he won a lawsuit against British Airlines Virgin.and was awarded $500,000 he divided thecompensation amongst his staff. "Sometimes I do wake up in the mornings and feel like Ive just had the most incredibleRichard Branson has also pen down his dream. Ive just dreamt my life."- Richardthoughts and life experiences in books. Some Bransonof his best books include “The Adventure ofBusiness”, “Branson on Branson”, ----------------------------------------------------------------------------------------- ---------------------------------------------------24 | e - G l o b u z z , V o l I I I s s u e I J u l y - S e p t ‟ 1 1
  28. 28. Events at International Business Society @SIMSROn 7th July 2011, we had the privilege ofattending an interactive session with Mr.Prabhakar Dalal, Executive Director at EXIMbank. Mr. Dalal with his varied experience andexpertise on Indian Banking Sector enrichedour learning to a very large extent. He alsoshared with us anecdotes which were not onlyrelevant but also served as food for thought,for students who would be future managers.He also took up questions pertaining to thetopics covered and attended them in greatdetail from a government institution‟sstandpoint. Mr. Prabhakar Dalal with Prof. C. P. Joshi We had with us at SIMSR, Mr. KCP Patnaik; Commissioner of Income Tax Department, to talk on International Transfer Pricing and International Taxation on 23rd July 2011. His vast knowledge of the subject augmented our classroom learning, and as students of International Business we could relate even better with the topics he touched upon. The students also enthusiastically interacted with him, getting better insights into International Transfer Pricing. Prof. CP Joshi, Program Coordinator, PGDM (IB) and Dr. R. K. Pattnaik, Faculty SIMSR participated in this interaction. Mr.K.C.P.Patnaik25 | e - G l o b u z z , V o l I I I s s u e I J u l y - S e p t ‟ 1 1
  29. 29. 26 | e - G l o b u z z , V o l I I I s s u e I J u l y - S e p t ‟ 1 1
  30. 30. 27 | e - G l o b u z z , V o l I I I s s u e I J u l y - S e p t ‟ 1 1