E globuzz vol ii issue iii


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E globuzz vol ii issue iii

  1. 1. VOL - II ISSUE – III JAN – MAR’12 e  -­‐  globuzZ   FOREWORDDear Reader,It gives us immense pleasure to bring to you Issue III Volume II of e-Globuzz.Over the last three months the world witnessed signs of economic recovery inthe developed countries including USA. On the other hand, uncertainties of oilsupply and inflation spiral due to the developments in West Asia continue tocause concern over economic growth in the world markets.  During this period, IBS@SIMSR arranged numerous useful interactions withindustry stalwarts including our illustrious IB alumni, the details of which have been coveredlater in this issue.Like in the prior issues, this issue also brings to you a wide range of international businesstopics. We cover the legendary journey of Kodak and its unfortunate downfall in this decade.There is also topical coverage of the Euro debt crisis and possibilities of new countries emergingas sources of natural gas. The other notable features are the changing role of central banks inrecent times and the invaluable contribution of SMEs to India’s international trade.We will be back with the next issue in July 2012. We look forward to contributions for theupcoming issue from the alumni and faculty.Happy reading!Prof. CP JoshiFaculty Mentor IBS@SIMSR 2
  2. 2. VOL - II ISSUE – III JAN – MAR’12 e  -­‐  globuzZ   Vol II Issue III Jan–Mar ‘12   European Debt Crisis 4 Faculty Mentor Marketing and 6 Branding in China Prof.  C.  P.  Joshi   The Kodak Story 8 Editor-in-Chief Kyoto Protocol 10 Manvinder  Sodhi   Natural Gas of 12 Prerna  Makhijani   Turkmenistan Designers Indian SME 14 Swetaleena  Das   Effect of Changing 17 Vishu  Kartik   Role of Central Banks Did you know? Country in Focus 20 Turkey Ankur  Yadav   Alumni Speak 23 Interactions coverage IBS Interactions 25 Swati  Moolchandani   Alumni Interactions 27 Circulation   Gurpreet  Kaur     All  the  views  expressed  in  this  e-­‐periodical  reflect  the  personal  opinions  and  views  of  the  authors   and  do  not  reflect  IBS@SIMSR  views.     3
  3. 3. VOL - II ISSUE – III JAN – MAR’12 e  -­‐  globuzZ   European  Debt  Crisis   -­‐  Sunmeet  Kaur  PGDM-­‐IB  (2010-­‐12)  The global banking system is currently under close In the US, financial markets are showingwatch as fears of another crisis spread through increased signs of volatility and risk aversion inEurope and the US. Unnerving sovereign debt response to the situation in Europe. Thecrises in Europe have sparked concerns of distress aftermath of the 2008 financial crisis hasamong banks and have scared investors away from continued to weigh on the economic recoveryfinancial markets. European banks that once saw and the recent debt ceiling debacle and creditlittle risk of holding sovereign debt are now at a rating downgrade have increased concerns ofhuge disadvantage with balance sheets comprised financial instability. With the global economymostly of Euro-zone government bonds. Now that still coming out of its misery in 2008-2009,banks seem reliant on weak sovereigns, panic is Greece got severely exposed for its years ofsteadily increasing. The potential for significant unrestrained spending and failure to implementlosses has caused a credit crunch that has severely financial reforms. The statistics exposed alimited the short-term financing available to national debt of US$414 billion in Greece thatEuropean banks. When a government’s outlays is bigger than the country’s economy, and aexceed its tax receipts in a given fiscal year, it runs fiscal deficit of 12.7 percent of the GDP.a deficit and may have to borrow money to make Greeces credit rating has been downgraded,up the difference. Sovereign debt is the implying worsening investor’s confidence foraccumulation of such borrowing from foreign and the economy. This crisis is not only hitting thedomestic creditors. If creditors are unsure whether zone economically but also politically. Spain’sa national government is able or willing to repay its Socialists became the fifth government in thedebts, then the government may have to pay a 17 nation single currency area to be tumbled byhigher interest rate on the bonds it issues to entice the debt crisis this year following Portugal,buyers. If a government is unable to issue bonds to Ireland, Italy & Greece. Also the risk premiumcover its debts, then it must resort to other means: on Spanish, Italian and French governmentcutting expenditures, raising taxes or borrowing bonds rose as investors fled to German Bunds.from international agencies such as the The key impact that has sent ripples acrossInternational Monetary Fund. Greece and a few financial markets so far is a drop in investors’other European countries currently find themselves confidence triggered by concerns about debtin this situation. servicing ability of PIIGS governments. Repercussions through financial markets can also arise from cross-border bank lending, as European firms rely heavily on banks for funding and banks have extensive cross-border lending activities. . Major lenders to PIIGS are financial institutions from France and Germany, with outstanding bank loans amounting to 34 and 21 per cent of their respective GDP. Therefore, should financial institutions in PIIGS experience severe problems, the banking sector of these major creditor countries could also be affected, which could create systemic risks to Europe’s   4
  4. 4. VOL - II ISSUE – III JAN – MAR’12 e  -­‐  globuzZ  financial markets going forward.Such a crisis is not only affecting the low ratedeconomies in the Euro zone but also Francewhich is among the Euro’s six AAA ratedcountries. Moodys warned that the debt crisisthat began more than two years ago in Greeceand snared Ireland, Portugal, Italy and Spain isclose to reaching France pertaining to the rise inborrowing costs.The effects are not just confined to the EuroZone but it is also affecting US, the worldleader. The country had reported 2.5% annual that a fiscal union was in the works, an effortgrowth in the third quarter which was far below to correct a basic flaw within the EU that itthe growth rate of about 4% in 2009-10. The has a common currency and shared monetarymajor cause for the same is that because Europe policy, but no mechanism to ensure that allis the largest trading partner of US. More than members are financially sound.20% of all US exports go to Europe. Germanyand Great Britain are by far the USs largest Euro zone has taken several measures recentlytrading partners. Total exports to the European like Germany and France have signed a pactUnion were $177 billion in the first eight months that has laid a sigh of relief to the zone. Theof 2011, up 15% from last year. Even then the meetings are being held at different points inU.S. is running a $65 billion trade deficit with time between the leaders of zone and otherthe EU. Adding to the woes, U.S. banks have countries to come out with the solution toabout $300 billion outstanding loans each in tackle the problem at hand. It is high time thatFrance and Germany and about $50 billion each actions are taken to correct the currentin Italy and Spain. They have about $700 billion situation because if the issues are aggravatedin Great Britain, which isnt directly affected. then it can not only blow off the Euro zoneNeedless to say the political effect felt in the US affecting its single currency system but canwith regards to the crisis situation. also deeply hurt other emerging economies of the world. Such a crisis has shaken up theThe cause of the problem is that European world affecting, the US and other majorUnion is at the fourth stage of Economic emerging regions especially Asia. In factintegration, which is Economic Union. Most Billionaire Investor Warren Buffet saidnotably, economic unions require formally Europe’s debt crisis had shown up a majorcoordinated monetary and fiscal policies as well flaw that cannot be corrected just by words. Itas labour market, regional development, would take more than words to fix it.transportation and industrial policies. Since all Source: guardian.co.ukcountries would essentially share the sameeconomic space, it would be counter-productiveto operate divergent policies in those areas. Aneconomic union frequently includes the use of acommon currency and a unified monetarypolicy. Eliminating exchange rate uncertaintyimproves the functioning of an economic unionby allowing trade to follow economicallyefficient paths without being unduly affected byexchange rate considerations. It has been told     5
  5. 5. VOL - II ISSUE – III JAN – MAR’12 e  -­‐  globuzZ   Marketing and  Branding  in  China:  Global   Product  Strategy  Alternatives   -­‐  Sahil  Patel  PGDM-­‐IB  (2011-­‐13)    There have been wide and deep linguistic shopkeepers created signs that combineddifferences between Chinese and English, making characters whose pronunciations formed thetranslation of brand names a difficult task. Cultural string ko-ka-ko-la, but they did so without anycontext, pronunciation and the meaning of regard for the meanings of the written phrasescharacters are just a few examples of such they formed in doing so. The character fordifficulties. Let’s discuss four global product- wax, pronounced la, was used in many of thesenaming strategic alternatives available to signs, resulting in strings that sounded like ko-country/brand managers, along with their usage. ka-ko-la when pronounced, but conveyed someThese four alternatives include (i) dual extension, nonsensical meanings such as "female horse(ii) brand meaning extension, (iii) brand feeling fastened with wax," "wax-flattened mare," orextension, and (iv) dual adaptation. "bite the wax tadpole" when read in Mandarin. What the Coca Cola story demonstrates is that linguistic nuances in Chinese can affect brand sound and brand meaning which, in turn, can affect consumer perceptions and brand identity. Marketers in China must realize prior to entry that the market is culturally distinct, requiring some degree of localization. Toyotas Chinese branding of the SUV Prado A firm’s Brand naming is a product characteristic that supports brand equity,Branding Challenge in China: positioning, unique advertising, and competitive advantage. Toyotas ChineseBrand naming in China by Coca-Cola branding of the SUV Prado, launched by Saatchi & Saatchi in Beijing, was translated toThere was no official representation of the name ba dao, which more or less translates to "the‘Coca-Cola’ in Mandarin Chinese when Coca-Cola mighty rule" or even "rule by force." Such afirst time entered the Chinese market in 1928. They masculine depiction of the Japanese SUVrequired finding four Chinese characters whose Prado was also accompanied by advertisedpronunciations approximated the sound of the media that presented two stone lions salutingbrand without producing some nonsensical or and bowing to the car. This cultural blunderadverse meaning when strung together as a written evoked association with the Japanesephrase. Interestingly, written Chinese employs occupation of China during WorldWar-2 andthousands of different characters, but there are only also attracted government censorship, publicabout 200 pronounced sounds that can be used in outrage, and a call for a boycott of theforming the name ko-ka-ko-la. Meanwhile Coca- company.Cola was in search of a satisfactory combination ofsymbols to represent their name, Chinese   Apparently, brands going into the Chinese   6
  6. 6. VOL - II ISSUE – III JAN – MAR’12 e  -­‐  globuzZ  market have to scrutinize many market characteristicsincluding the Chinese language and its consumerresponsiveness. Attendance to local marketconsiderations should also involve consideration of thefirms global brand-strategy, which certainly involves awide range of possibilities: globalization on one end,localization on the other, or probably a strategiccombination of both.A word of caution:A companys brand is considered to be its intellectualproperty. As China is not the best place for itssafekeeping of intellectual property and since theft ofsuch property is still rampant, all the companiesventuring into China are advised to register the likelytranslations for their Chinese brand names as soon as DID YOU KNOW??possible. Mala Fides means "In badLooking forward to China: faith". It is used when a sellersThe complete process of global brand-strategy says that goods are usable for aidentification and implementation is a journey particular purpose when in factcomprising market research, creative work (especiallycreating the Chinese brand names require some), the seller knows that the goodsinternational coordination, marketing investments and are not.  decisions at all stages. The journey may not always be adrive on a smooth highway, but it is unquestionably  challenging as well as interesting and rewarding toprofessional marketers and brand managers. Dell Computers was startedKey takeaways: by a 19 year old with only $1,000 and Dells first advertisementFor any international brand, different cultures influenceconsumers in different markets which consequently will was made on the back of a pizzaaffect their perceptions of the brands standing vis-a-vis box.other competing brands, both locally andinternationally. While todays consumers do not have toleave home to be affected by globalizations influenceon local market, the meaning of the brand is still ofteninterpreted and translated in a local context. As far asthe near future is concerned, we are all likely tocontinue to be lost in such translation. Superior talentmust unite with the market opportunities for successfulcross-cultural branding exercises.   7
  7. 7. VOL - II ISSUE – III JAN – MAR’12 e  -­‐  globuzZ   The  Kodak  Story   -­‐  Prerna  Makhijani  PGDM-­‐IB  (2011-­‐13)    As The Economist rightly puts across, seems in technology, research and development. Thelike it is the last Kodak moment. After a glorious company’s culture and the attitude of the tophistory of 132 years, the company filed for management made it complacent. Evenchapter 11 bankruptcy. So the question remains, though the labs were churning out greatwhat went wrong in all these years that led to products and innovation, the managementKodak’s fall? seemed myopic and focused more on the current market than delving into theThere was a time when Kodak earned nearly possibilities of future.$16 billion in revenues and employed over145,000 workers worldwide. Now the current Ironically, Kodak shelved the digital cameras,evaluation of the company stands at $150 something that they invented in 1970’s. Thismillion with an employee base of less than was probably the start of losing out heavily to17000 people. competitors like Fujifilm when it came to digital imaging and photography. Kodak’s management believed that digital cameras would cannibalize their photographic film business and therefore did not take forth the idea which was going to be the future of photography. In 1993, when they decided to dive into digital photography and online sharing of pictures, it was already too late and that business model also couldn’t sustain the profitability of Kodak. Kodak also tried its hand at diversification. They dabbled in pharmaceuticals for a period of time, owing to their base of chemical expertise used in photography. But thisLooking at the financial health of Kodak, it is venture also fizzled and was sold out by 1990s.evident that they have huge amounts of pension The leadership and the strategy of each leaderand other benefits obligations. Their annual has also been highly inconsistent causingprofitability has been going down for the last six dissonance in the company’s business model.years. They have in all $5.1 billion of assets and The current CEO is focusing more on turning$6.57 billion in liabilities. Most of these are in Kodak into a digital printing powerhouse,the form of 1100 digital patents that they hold something on the lines of what Hewlettand are being used for litigation against giants Packard has been doing. He is also trying tolike Apple & Samsung for patent infringements. engage in litigation and make money out ofThere have been a couple of reasons for the patent infringement lawsuits.predicament that the company is in now. To Even after years of foot dragging into thebegin with, Kodak has been labeled as a digital world, Kodak’s strategy lacked focuscomplacent monopolist despite being a pioneer   and it was not clear whether it wanted to be a   8
  8. 8. VOL - II ISSUE – III JAN – MAR’12 e  -­‐  globuzZ  product based or a service based or a B2B Even a couple of years of restructuring has notcompany. Even their M&As were all over the helped the company improvise its financialplace and did not add value to their portfolio health and the only way forward is to sell itsin the slightest way. pile of digital patents. This would at least enable it to pay off debts and other obligationsThe company in its heydays became bloated to its stakeholders. There appears to be noand did not know how to scale down its place for a legend like Kodak anymore, the USoperations in the last decade. So when giant seems to have run its course.disruptive technologies appeared, Kodakfound it extremely difficult to change their The Kodak fiasco makes the business worldbusiness model in terms of creating and realize the importance of having a clearlycapturing value. For years they operated under thought out strategy. It is important for athe classic razor-blade model and when they company to constantly evaluate its vision andswitched to digital photography, they objectives in a world full of disruptivecontinued with the same model which technologies. There also has to be balanceobviously did not work. Selling cheap digital between the company’s core competencies andcameras and relying on customers to get its management objectives. A lucid positioningphotos printed and sharing it online would not is imperative if one has to survive in thehelp earn revenues. market with competitors snapping at your heels.All in all, a lot of things went downhill forKodak and there was no coming back after  that.   DID YOU KNOW?? Warner Chappel Music owns the copyright to the song "Happy Birthday". They make over $1 million in royalties every year from the commercial use of the song.   9
  9. 9. VOL - II ISSUE – III JAN – MAR’12 e  -­‐  globuzZ   Kyoto  Protocol:  An  answer  to  unpleasant   economic  climate -­‐  Erica  Fernandes  PGDM-­‐IB  (2011-­‐13)    The world is changing. With the revolutions have committed to reduce their emission levelsin the Arab world, the questions surrounding of greenhouse gases to targets that are mainlythe EU, the nuclear standoffs between nations, set below their 1990 levels. Thus the majorthe US recovering at a very slow pace, ever feature of the Kyoto Protocol is that it setswondered if we are globally sustainable? binding targets for 37 industrialized countriesHowever when we think of sustainability we and the European community.tend to overlook an imperative factorcontributing to its’ deterioration, and that is So how do these countries reduce GHCclimate change. emissions?Policy makers today are realizing the They can reduce the use of carbon-emittingseriousness of the issues and the importance of technologies or improve these technologies sothe Kyoto Protocol signed on 11th December as to reduce the emissions they create. For1997. The Kyoto Protocol is an international example, today we have cars using catalyticagreement linked to the United Nations converters which lower emissions. Thirdly,Framework Convention on Climate Change development projects that actively reduce(UNFCCC). Its main objective is to reduce atmospheric GHG like planting treesgreenhouse gas (GHG) emissions, especially effectively help to capture greenhouse gases.six gases which are:carbondioxide, methane, nitrousoxide, sulphur The Kyoto Protocol also provides countries meetinghexafluoride -hydrofluorocarbons and their targets through nation measures. The threeperfluorocarbons. market mechanisms available to countries are asAccording to the UNFCCC, parties to follows:UNFCCC are classified as:§ Annex I countries: industrialized countries and economies in transition§ Annex II countries: developed countries which pay for costs of developing countries§ Non Annex I countries: Developing countries Recognizing that developed countries are principally responsible for the current high levels of GHG emissions due to the higher level of industrial activity, the Protocol places a heavier burden on developed nations. Annex I countries which have ratified the Protocol   10
  10. 10. VOL - II ISSUE – III JAN – MAR’12 e  -­‐  globuzZ   Market mechanisms to help meet emission 1. Joint Implementation (JI) targets The Joint Implementation mechanism is often 1. Emissions trading (the carbon market) grouped with CDM because it is a very similar system. The major difference is that the Countries that have not met their emissions countries in which projects can be built under targets can purchase additional credits from the JI are primarily in the Eastern Bloc those countries, which have exceeded their (Eastern & Central Europe). This is separate emission targets. This had led to the from the CDM because these countries are development of international carbon trading generally considered developed. systems, the largest of which is the European Emissions Trading System(EU ETS). In recent The Kyoto protocol is a step in the right times, price for credits has been raised and direction, but implementation has been poor there are more stringent caps on emissions as countries have struggled to strike the right which will help achieve more emission balance between the environment and control. An extension of the above is carbon economic growth. Especially in recent years, trading at a domestic level between states and the economic crisis has robbed the businesses. But these are mostly un- environment of its due attention. Only if the standardized and there is a need a need to need for bolder policy implementation can be make local trading more integrated on a global met can we achieve global sustainability in its scale. true sense. 2. Clean development mechanism (CDM)          Source:  UNFCCC  Developed countries can also choose tocompensate their excess emissions by reducingemissions in developing economies (Non-annex I countries). Sometimes, it may be morecost-effective to reduce emissions in specificprojects in developing countries approvedunder CDM rather than reduce emissions inthe developed world or to purchase carboncredits. Possible sectors where CDM is usedinclude renewable energy (Wind, solar,biomass), modernizing power plants,switching from fossil fuels like coal to moreefficient means like gas. It may be relativelyeasier to achieve such projects in developingeconomies which are less energy efficient thantheir developed counter-parts.     11
  11. 11. VOL - II ISSUE – III JAN – MAR’12 e  -­‐  globuzZ   Natural  Gas  of  Turkmenistan:  Plethora  of   Opportunities   -­‐  Pratichi  Swain  PGDM-­‐IB  (2011-­‐13)     Central Asia has not enjoyed the same is the Reserve/Production ratio. This ratio limelight in the past as the other regions of signifies the number of years it would take for Asia. This was mainly because of domination the existing proven reserves to exhaust with by the Soviet Union. The breakup of the the current rate of production. With the USSR in 1991 gave birth to many countries present rate of production, while the world in Central Asia. The autonomy enjoyed by reserves are estimated to last 59 years, these countries enabled them to build their Turkmenistan’s reserves would carry on for own roadmap for growth and development 256 years. This is music to the ears of a long which was further fuelled by the large term investor as it speaks about the volume of reserves of oil and natural gas in the region. opportunities Turkmenistan has to offer. Central Asia currently contributes around 70 Turkmenistan also has the benefit of good percent of the oil production outside OPEC. quality gas because impurities like Caron The oil and gas revenues have led to a surge dioxide, nitrogen and hydrogen sulphide are in building roads, railways, airports, power present in very less quantities. plants and pipelines throughout the region. Turkmenistan, the heart of Central Asia has also been a big beneficiary. It has come a With Turkmenistan’s ability to supply good long way from depending on its cotton and quality natural gas in large quantities for a carpet exports for foreign exchange supply. long period confirmed, let’s see where the With nearly 10% GDP growth rate and US $ demand is likely to originate and concentrate. 7500 per capita income, it has already set The main driver for domestic demand of itself on the fast pace of growth. natural gas has been the power sector. Off late Turkmenistan has been an electrical energyPresently Turkmenistan is predominantly an exporting nation. In 2010, out of 15.5 billionoil exporting nation. It enjoys the forty fourth kWh electricity it produced, it exported 2.5largest reserve of 100 million tonnes in its 150 billion kwh, 1.6 billion kwh of which was tooil depots. But with a present production rate Afghanistan. Natural gas is used as the mainof 10 million tonnes per annum, these reserves resource for 99.8% of Turkmenistan’swould hardly last for next 10 years. The electricity generation. The Turkmenistanpresence of many MNE’s hardly leaves any government has also been laying morespace for a new entrant. emphasis on exporting electricity. It aims to produce 35 billion kWh of electricity andOn the other hand, natural gas sits at a more export 17 billion kwh by 2030. That wouldpromising situation for the future. mean an increase in production of 20 billionTurkmenistan has the fourth largest reserve of kWh, which in all probability has to be met by10 billion cubic metres of Natural Gas which its most abundant resource –natural gas. Onaccounts for 5.29% of the total world reserves. an average 1 kWh of electricity productionIt currently contributes only 1% to the total requires 0.2 cubic metre of natural gas. So thisproduction of Natural Gas in the world. But would result in an extra demand of 4 billionwhat turns the scale in favour of Turkmenistan cubic metres by 2030. 12    
  12. 12. VOL - II ISSUE – III JAN – MAR’12 e  -­‐  globuzZ  Even the world gas demand is certain to can reach the energy deficient Europe byincrease significantly in the coming years. The accessing the European pipeline grid eitherwidely accepted Hubbert Peak theory says that through Russia or Azerbaijan. The highfor any finite resource: handling capacity of Turkmenbashi port on the Caspian coast can be used to transport gas to 1. There will be a point for start of Azerbaijan and then the gas can be sent production through pipelines connected to the European grid. The low cost of transportation using the 2. The rate of production then moves to extensive pipeline network helps the peak/highest point Turkmenistan’s gas to remain cost competitive by the time they reach the distant markets. 3. Then the rate declines till the resource gets exhausted With President Kurbanguly succeeding after the death of Sarpurat Niyazov, a lot ofHubbert was highly acclaimed for using his initiatives have been taken to attract foreigntheory to accurately predict the point of investments in the natural gas segment, mosthighest production of crude oil for USA. He importantly the enactment of the Petroleumforecasts the crude oil production to reach its Law in 2008, which encouraged long termpeak in 2020 and thereafter show a permanent investments. The following long term licensesdecline. An ever increasing world demand for are currently givenenergy sources and fall in the production of oilwould cause a greater shift in dependence from • Exploration License (6 years + 2 x 2oil to natural gas. Also the introduction and years extension)usage of higher number of gas run or hybrid • Production License (20 years + 1 x 5engines and machineries will result in more years extension)demand for natural gas. This law provides concessions on royalty and exploration and production terms. TheThe world demand pattern for natural gas is introduction of Single Window mechanismalso going to watch a sea of changes in the has helped to overcome delays and curbnear future. It is estimated that India and corruption. The low tax rates and Free TradeChina which have a combined contribution of Agreements signed with countries like4.3% to total current world demand of the Armenia, Georgia, Ukraine and Uzbekistanresource will see their share increase to 25% by are also a big boost. Natural gas is slowly but2030. This will happen on account of steadily becoming the protagonist inindividual increase in demand of natural gas in Turkmenistan’s growth story. It not only offersIndia and China by 309% and 463% huge opportunities for long term but also anrespectively. This has very high relevance for investment friendly environment making it theTurkmenistan gas. Turkmenistan enjoys destination to be for all major gas companieslocational advantage of having proximity and across the world.accessibility to these geographies. It alreadyhas accessibility to Chinese market through thepipeline to LuNan in China. Talks areunderway between the concerned governmentsfor commencement of work of the TAPI(Turkmenistan-Afghanistan-Pakistan-India)pipeline. Turkmenistan has well laid outpipeline grid within the country and also hasdirect pipelines to Russia. Turkmenistan’s gas   13
  13. 13. VOL - II ISSUE – III JAN – MAR’12 e  -­‐  globuzZ   Indian  SME:  Export  Competitiveness     -­‐  Nilay  Kale  PGDM-­‐IB  (2011-­‐13)    Introduction hovering for global partnerships to absorb and impart technologies in various fields. In orderGlobalization is the increasing to attain comparative advantage, SMEs needinterdependence of national economies— to pay more attention to quality, price andinvolving consumers, producers, suppliers, and delivery by implementing few marketinggovernments in various countries. In this strategies.environment, there exist opportunities forSmall and Medium Enterprises (SMEs) to play Why Should SMEs Export?a greater role in the world economy.International activities expose SMEs to more There is high scope of expansion of marketscomplex and risky business environment for and customer base by diversifying productwhich, compared to big firms, SMEs are segments. This can be achieved by exploringrelatively unprepared and less resourced. different export markets. Additionally, higherSMEs gaining access to global markets can exports lead to greater exposure to foreignhelp realize the potential for prospective high technology and processes. Consequently,growth. However, in regards to their smaller optimum utilization of production capacitysize, most SMEs lack in various sectors over and greater attention to product design can bethe traditional multinational enterprise achieved. This can guide the production(MNE). techniques to cost efficient and enhanced quality control systems. SME’s decisionSMEs were operating in a protected making structures are often flatter and moreenvironment, but a direct consequence of nimble owing to their family-styleglobalization resulted in free trade flow and management organization. This enables themincreasing competition. Along with foreign to take quick international trade relatedcompetition, domestic demand is changing to decisions when needed. Contribution of SMEsbetter quality products at globally competitive to export benefits the industrial operations andprices. economy of nation in general.In the Indian perspective, potential of SMEs is How should SMEs export?reflected as they contribute 45% of industrialoutput, 40% of exports, employing 60 million SMEs begin by importing technology inpeople, creating 1.3 million jobs every year material forms (FDI, licensing andand producing more than 8000 quality equipment). Then they invest in building theirproducts worldwide. There are approximately abilities to master the unstated elements of the30 million SME units in India. SMEs are technology. They draw upon a variety ofconsidered to be important members within a internal (human resources, technology,supply chain.   Hence export promotion from management and organization) and externalSME sectors are highly preferred in India’s inputs (skills, finance and infrastructure) toExport promotion strategy which includes build up their capabilities.incentive for higher production of exports, Marketing Strategiesmarket development funds, simplification ofprocedures and duties etc. They are thus SMEs lack resources and are thus prevented         14  
  14. 14. VOL - II ISSUE – III JAN – MAR’12 e  -­‐  globuzZ  from embarking on market development (E.g. China, India, Indonesia, Malaysia,efforts. Hence, they are normally at a cost Singapore and Taiwan). The formation of adisadvantage against the MNEs. Given the strategic alliance allows the SME to overcomeresource limitations and cost disadvantages of its weaknesses compared to the big MNEs.SMEs, they should therefore focus on selecting This will put the SME in a better position tomarket niche. An SME may consider entering defend and survive against the aggressiveinto a market segment that is currently being measures taken by the big MNEsignored or one that is currently being served byan MNE. A set of generic marketing strategies SME Export: Indian Perspectiveare practiced for entering into a market. Thethree generic marketing strategies are Indian SMEs export both traditional and non-substitution, free riding and strategic traditional goods. Sectors like food anddeterrence. beverages, chemicals, auto-components, machinery, electronics, metals, castings and § Substitution call for the SME to offer forgings have witnessed an increasing export differentiated yet substitutable products orientation trend over the last decade. to that of a present so as to force space Potential export destinations for products of by the latter. SMEs are the USA, EU and Japan. There § Free riding allows the SME to enter a exists a huge potential in the non-traditional served market segment without having sectors. SMEs may not be able to strike the to incur market development expenses. advantages of economies of scale, but then § Strategic deterrence aims to prevent a they are ideal for serving small markets. From bigger serving. This can be achieved by the Five year All India MSME census report formation of strategic alliances in order 2006-07, 40540 enterprises were engaged into to indicate the SME’s commitment to exporting, which contributes to only 3.3% of stay in the market. total MSMEs. Majority contribution towards export was from auto, textile and apparelIn targeting market segment already supplied sectors.by big MNEs, an SME can successfully enterthe segment by following a free-riding strategy. ChallengesSome SMEs in the developing and newlydeveloped countries in Asia are known to SMEs are uncertain due to the erosion of theirpractice the free-riding strategy by engaging in market share, and the middle 60 per cent areillegal and prohibited trade of goods. An SME not able to arrange themselves with the supplycan follow a substitution strategy by offering a chain systems, despite of strong demand fromsubstitutable yet different product targeted at a customers. The top 20 per cent of SMEs (onsegment of the market currently ignored by a the basis of exports) are mainly frombig MNEs in order to successfully penetrate automobile, pharmaceuticals, engineering,the market. . A direct implication of the power and apparel industries, and these aresubstitution strategy is that both the SME and facing variety of problems ranging fromthe MNEs can exist profitably in the market. A funding, product quality to labour relatedgood example of such a strategy is that of large issues. A major difficulty of the SME sector isdepartmental stores and supermarket chains that it is highly set apart with small local(mostly foreign owned) competing face to face power base. SMEs have to struggle to achievewith the smaller retail showrooms and corner economies of scale, and to access credit,garment stores in many of the newly information, technology and markets.developed and developing economies in Asia.     15
  15. 15. VOL - II ISSUE – III JAN – MAR’12 e  -­‐  globuzZ  ConclusionThe application of the recent technology andinnovation perspective to SMEcompetitiveness provides valuable insights onthe process of how SMEs in developingcountries become globally competitive in anintegrated international economy. A rationalSME competitiveness strategy needs to beformed by current and future comparativeadvantage of a national economy and shouldbe an integral part of national export strategy.Such a strategy could also emphasize lessdemanding regional markets for first-timeSME exporters and more demandinginternational markets for established SMEexporters.   16
  16. 16. VOL - II ISSUE – III JAN – MAR’12 e  -­‐  globuzZ   Effect  of  changing  role  of  Central  Banks   -­‐  Sushant  Shah  PGDM-­‐IB  (2010-­‐12)    Changing role of Central Banks will be able point in countering the emergence of financialto actively counter the development of imbalances central banks are strengtheningmonetary instability macro prudential supervision and regulation as one plausible option. Macro prudential policyThe predominant view until now was that takes account of systemic risks in the financialCentral Banks should pursue "one tool and sector through action geared to reducing suchone target" policy strategy. Based on this view, risks. Collaboration between the variousthe best role for the Central Bank in pursuing authorities involved – both nationally andmacroeconomic stability and prosperity was to internationally – is also of crucial importance.ensure that inflation remains low. These instruments are being used to essentially supplement set of existing monetary policy.Recent financial crisis has changed thisperception. The recent crisis highlighted the Monetary Policy:extent of systemic risk and thus the overriding Monetary policy is any policy related to theimportance of a stable financial system. It also supply of money. A more realistic definition ofdemonstrated the inadequacy of the monetary policy would be that it consists ofinstruments and measures used until now to the directives, policies, pronouncements, andensure financial stability. More effective actions of the central bank (agency concernedmeasures are needed to check and prevent with the supply of money) that affect aggregatesystemic risk. The key question is how should demand or national spending. Monetaryor can this be achieved in the future? The policy can have important effects on aggregateappropriate responsibilities of the central bank demand and through it on real Grossare being re-examined in light of the recent Domestic Product (GDP), unemployment,financial crisis. real foreign exchange rates, real interest rates, and the composition of output. TheseDue to increased connectivity of the world, important effects, to the extent that they occur,systemic risk events have become more are essentially only short run in nature. Overwidespread and significant as compared to the longer run, the major effect of monetarywhat it was previously. The complex policy is on the rate of inflation. Thus, while ainteractions between the financial system and more rapid rate of money growth may for athe real economy raise important questions time stimulate the economy, leading to a moreabout the role central banks should play in rapid rate of real GDP growth and a lowerresponding to episodes of financial instability. unemployment rate, over the longer run, these changes are undone and the economy is leftStable economic growth and low inflation with a higher rate of inflation.could not prevent the emergence of vastimbalances in the global financial system.Ensuring price stability remains top priority forcentral banks but more attention is also beingpaid to crisis prevention in order to improvethe stability of financial systems. As monetarypolicy instruments are only suitable up to a   17  
  17. 17. VOL - II ISSUE – III JAN – MAR’12 e  -­‐  globuzZ  How central bank’s role is changing:• Core Objectives of the Regulator - The core • Public policy objectives of regulation - In a objectives of the Central Bank are to broader sense, ensuring financial system maintain price stability. Now with a new stability, investor protection and market mandate of achieving financial system integrity/discipline are considered to be stability public policy objectives. Clarity,• Progressive Liberalization of Financial consistency and public announcements are Systems - The present day financial necessary on the part of the regulator, as markets are well integrated. National they will reduce distortions in the playing borders mean little to the global financial field between local and foreign institutions services as well as state-owned and private• Increasing Role of Financial Intermediaries institutions. in Allocating Resources – Banks and financial institutions are now • Perception of the Government - It is a part moving towards investment banking, of Government’s public policy to ensure structured finance, syndicated loans, retail that banks and financial institutions and micro financing, derivative financing, function well and that there is public property development financing etc. at confidence in them. Governments tend to large scales. The traditional banking label rely on regulators to ensure that there is a is no longer valid. conducive regulatory environment, which• Rapid Pace of Financial Innovation and establishes confidence in the wider Product Development - It should not lead financial system. to disruptions in financial markets and thus • Type of the regulatory structure - stability Movement from rule-based regulatory• The Scale of International Financial Flows structure to a more risk focused system - FDI, bi & multi-lateral aid flows, other • Perception of the financial community and investment flows and cross border understanding of regulator’s role remittance flows are important worldwide • International standards - Framework as their impacts are felt on economic comparable to international norms, growth of countries. standards and benchmarks• Increasing Incidence of Domestic and • Availability of domestic supervisory skills - International Financial Crises Over enthusiasm of Financial Institutions,Factors affecting Central bank’s role: Information overload• The nature and characteristics of the • Safety nets and moral hazards - Mandatory Financial Sector - There are no clear Deposit Insurance Schemes, Explicit and boundaries or demarcations. Therefore, a Implicit Guarantees, Bailouts by case for changing the licensing procedure Regulators by the regulator is important.     18
  18. 18. VOL - II ISSUE – III JAN – MAR’12 e  -­‐  globuzZ   more important role in monetary policy in theA new role of central banks will be: future?1. First the emphasis on a well capitalized With regard to measures taken during crisis, the banking system with adequate regulation effectiveness of monetary policy instruments regarding liquidity and currency was clearly demonstrated. We were able to mismatches. This has to be a central safeguard price stability and cushion the concern on the part of policymakers in the negative impact on the real economy. However, world. vigorous interest rate cuts were not sufficient on their own. The liquidity situation on the money2. Second, less reliance on market discipline markets initially remained extremely tense. In and much more emphasis on supervision - many cases, interest rates rapidly dropped to The assumption being that financial zero. The chief monetary policy instrument institutions have incentives to circumvent could thus no longer be used. Central banks regulation. Maybe they will not cross the around the world therefore adopted so-called line, but the natural tendency is to leverage unconventional measures. These included direct and thus earn profits. intervention in the financial markets by buying assets, such as long-dated government bonds,3. Third, a careful approach to financial debt securities issued by private borrowers and innovation - Sophistication of financial foreign exchange. Another measure was the systems is closely associated with financial temporary expansion of liquidity provision to innovation. Financial innovation that is banks beyond the ‘normal’ level. geared mainly to increase profits of the financial industry, and is more and more These measures permit further monetary easing removed from the main function of finance if the desired stabilization of prices and the i.e. the channelling of savings to productive economy cannot be achieved through cutting activities is not adding value to society. interest rates alone. Also, unconventional measures can be justified by the central banks’The most fundamental rationale for a central role as lender of last resort. Its role is ofbank to safeguard financial system stability is providing emergency funding for financialthat monetary and financial stability are institutions that are facing short-term liquidityactually two sides of the same coin. Monetary bottlenecks. The aim of these unconventionalpolicy has significant implications for financial measures is to restore the functioning of marketstability; while on the other hand, financial forces as quickly as possible and ultimately tostability is the most elemental pillar for restore market confidence in the financialeffective monetary policy. Therefore, system.preserving financial stability for a central bankis a core task as monetary policy and financial Vigorous response by central banks showed thatstability are interlinked. If monetary policy is zero interest rates on no account mean thatmismanaged, inflation may soar and have central banks have exhausted their set ofadverse impact on the performance of financial monetary policy instruments. Throughinstitutions and financial markets. quantitative and credit easing measures, the central banks have effective instruments that canThis raises a number of questions about the be used to reduce risk premia, alleviate liquidityfuture role of central banks. Can and should bottlenecks and prevent deflation. Moreover,monetary policy be used to actively counter their role as lender of last resort has taken on athe development of imbalances or financial new dimension. The central banks demonstratedbubbles? Does it make sense to use monetary that they can fulfill this function to a previouslypolicy instruments for this? Will the new unforeseen extent. In short, they demonstratedinstruments used during the crisis also play a their ability to respond to monetary instability.     19
  19. 19. VOL - II ISSUE – III JAN – MAR’12 e  -­‐  globuzZ   Country  In  Focus:  Turkey   -­‐   Winning Team Comercio’12 (Mrinal Banerji, Monika Mane, Meet Buch, Satwik Kabisatpathy) PGDM-IB (2011-13)   The Economy:Introduction: -­‐   It is the 16th largest economy in the world andEstablished in 1923 after the collapse of the is popularly referred to as the BRIC country of -­‐  Ottoman Empire, the Turkish Republic has Europe. After the major financial crisis inencountered periods of instability and 2001, Ankara adopted fiscal solidarity reforms -­‐  recurrent democratic power. Modern day in collaboration with the IMF. These went aTurkey though, can boast of being an associate long way in strengthening the country’smember of the European Union and macro-economic fundamentals and ushered inundergoing major changes in order to an era of strong growth. It was growing at anstrengthen its democracy and integrate its average of more than 6% annually until 2008,economy into a more global field. Turkey’s after which the global recession and tightergeographical position offers an excellent base fiscal policy caused GDP to contract in 2009.for economic activities throughout the region The inflation reduced to 6.9%, which was a 34and is emerging as a focal point for politics year low and it also cut public sector debt toand culture. Thus such increasingly attractive GDP ratio to fall below 50%. Its’ wellbusiness environment presents the world with regulated financial markets and bankingmany advantages and potential opportunities system weathered the global crisisto businesses wishing to expand in this commendably and GDP growth rebounded tocountry. a robust 7.3% in 2010, as exports returned to normal levels after the recession. The economy however continues to be burdened by high current account deficit and often remains dependent on volatile, short-term investment to finance its trade deficit. The stock value of FDI stood at $174 million at year end 2010, but inflows have slowed owing to current economic mess in Europe. Turkey’s high current account deficit, uncertainty with regards to policy making and fiscal imbalances leave the economy vulnerable to destabilizing shifts in investor confidence. Turkey’s economy continues to be incrementally developed by its industrial clusters and service sectors but the agricultural sector accounts for about 30% of the employment like any of the developing countries. The last decade has seen an aggressive privatization programme which has capped state’s involvement in priority industries like banking, transport and communication. The expansion rate for the industrial clusters has been higher than developed countries like Britain and France.         20
  20. 20. VOL - II ISSUE – III JAN – MAR’12 e  -­‐  globuzZ  Thus this forward looking economy is About 98 percent of Turkey’s citizens arecertainly not going to go under the radar for Muslims, of whom about 80 to 85 percentthe next 30 years at least. The GDP per capita represent Sunnis of the Hannafi School and(in terms of PPP) is 12,300 USD as per latest 15-20 percent of Shiite sects.figures which is quite healthy and is expectedto rise. The education system in Turkey is governed by a national system which was established inThe Political Climate: accordance with the Ataturk reforms after 1923. Every year it is estimated that 1.5The major driver for this period of prosperity million students graduate from Turkish highin modern Turkey’s history is the schools. There are around 167 universities inunprecedented political stability that it has Turkey. The system of education involves aenjoyed since the Justice and Development national examination after which graduates(AK) party took over the reins in November are assigned to universities according to their2002. It has brought in with it a strong leader performances.who remains a popular public figure andrecently won the elections for the third straight Currency:term. The Turkish Lira is the currency of Turkey The charismatic and is subdivided in to 100 kurus which is the leader, Mr. Turkish equivalent of paisa. In the last decade Recep Tayyip or so the Turkish lira has stabilised in Erdogan has comparison to the US dollar and the Euro. An transformed average of 9 Lira per U.S dollar in the late Turkey in this 1960s was replaced by 1.65 lira per U.S dollars decade with a in late 2001. This represented a situation of an plethora of average inflation of 38% per year. It was financial reforms referred to as a matter of national shame by and governance Prime Minister Erdogan. Thus it led to a slew measures which of measures which have radically changed the   Lira’s fortunes. Like the Brazilian real it has have propelled the economy on emerged as one of the strongest currencies inan impressive growth path. Thus this climate the modern financial structure. The strongof political stability has gone a long way in currency has been one of the drivers of aensuring Turkey’s glorious present continues burgeoning middle class population with ainto the future. large consumption demand. The Turkish Lira exchange rate depreciated 1.95 percent againstThe Culture: the US dollar last month. The last 12 months the lira has depreciated almost 14% against theThe official language, Turkish is spoken by dollar.90% of the population. Minority languagesinclude Kurdish (6%), followed by Arabic Ease of Doing Business in Turkey:(1.2%). Islam is the religion of the majority of The World Bank and the International financethe Turks and the state is a very secular one. corporation rank Turkey as the number 71 inMost citizens now identify themselves as in the ease of doing business out of the 183Turks regardless of their ethnic origins. The countries sampled. The R & D and innovationmajor non-ethnic groups include- the Kurds in law passed by the government which entitlesthe south-east, the Arabs in the South, the Laz you to certain tax breaks on investing in R &of the Western Black sea coast and the D is one of many measures that allow aGeorgians in the North-east and Northwest business  to  grow  further  as  you  invest  in  high   21
  21. 21. VOL - II ISSUE – III JAN – MAR’12 e  -­‐  globuzZ  end technology. Thus the government policy. The trade volume is expected to growunderstands the need of the hour to invest in to 20 billion dollars in the next five years. Bothtechnology and a low corporate income tax the countries are mulling on signing an FTAallows businesses to operate with high profit which will move towards increasing bilateralmargins. Moreover ease of repatriation of trade and co-operation. Indian companies likeprofits to the home country also makes Turkey TATA and Mahindra have been operating ina very viable proposition for doing business. It Turkey for a fair amount of time. The TATAsis much ahead of the BRIC countries in the have gone for the licensing route like manyEase of doing business index and thus it gives other foreign car majors while M&M has gonea pre-cursor of how the corporate world views for a JV with the ILCE group. Its associationthe former Ottoman behemoth. There is with the EU customs union would thusconsiderable ease in certain micro factors provide India with better trade opportunities inrelated to setting up a business like getting the EU region as well.construction permits, getting electricity,registering property, getting credit, protecting The Road Ahead:investors, trading across borders and enforcingcontracts. It has provided foreign firms within The demographic phenomenon is very similarthe technology sector with land and tax to what we find in Brazil today. By 2050benefits and incentives. TDZ, IZ and FEZ are Turkey would have a consumer market of abeing set up like SEZs in China and India to 100 million people which makes it a verypromote exports and give a boost to the attractive investment hub for MNEs.economy. The challenges though are to address some barriers in its development structure. It has theIndo-Turkish Relations: second highest unemployment rate in EuropeIndo-Turkish relations date back to 1948. The after Spain. The other issue is to invest intrade relations between Turkey and India are education. Only 13% of the population hasvery strong and India sees Turkey as a major higher education which is a worrisome figure.trading partner. Moreover the bilateral trade The tolerable level of social development isbetween the two countries is 7.6 billion dollars. critics’ argument for delaying succession to theIndia and Turkey have both had a rich and EU. Thus it needs to look at its HDI indicatorsdiverse historical connection. Turkey has to further fuel its democracy to newer heights.stressed on having stronger ties with India Therefore just like the BRIC countries it needsChina and other rising Asian powers as part of to look at its people as drivers of its prosperitythe diversification of its economic and foreign in the new millennium.         22
  22. 22. VOL - II ISSUE – III JAN – MAR’12 e  -­‐  globuzZ   Alumni  Speak:  Jyoti  Anand    -­‐  Gurpreet  Kaur  PGDM-­‐IB  (2011-­‐13)     2. Over the last 2 years, how have you Jyoti Anand, alumnus leveraged your learning pertaining to IB? In of SIMSR, 2008-10, what ways has PGDM-IB programme helped batch, PGDM- you to rise up the corporate ladder in the last International 2 years? Business, is currently working as a In today’s global business environment, any   Customer Supply company faces global competition in the Chain Analyst at market place. The overall exposure to IB helpsCHEP. He has also worked as Operation & you understand the mindset of internationalMaintenance Associate with Tata Steel. companies working in different geographies &Jyoti is one of the founder members of the conditions. This also gives me an advantage ofInternational Business Society and also the understanding cross-cultural factors whileclass representative of IB batch, 2010. dealing with internal & external customers. One can not only get comfortable in any company quickly, but can start contributingInterview: effectively as per company’s vision and policies. Two years is comparatively very1. What were your expectations when you small time to talk about the leverages taken outjoined PGDM-IB, SIMSR in 2008? Which of of the IB programme.those expectations, you think, have beenfulfilled in these 2 years? 3. Looking back, what do you feel (skills, capabilities, subjects), you should haveExpectations were many. Few of them can be focused on while you were a student atdescribed as: SIMSR-PGDM-IB?-­‐ To understand the basics of business Statistical tools, MS office are some basic tools administration and general management to get the mastery in. International trade, practices in global business environment.-­‐ To understand the impact of cultural & marketing & operations could have been more socio-economic factors on business effective with live cases & projects. environment-­‐ Get the exposure to a mixed profile people, 4. What would you suggest for the current where cross functional learning gives us an PGDM-IB batch (2010-12, 2011-13) to advantage of understanding various improve their long term career prospects? situations in different business conditions.This knowledge and experience can beleveraged in future career path of senior Just after graduating from the college, it is verymanagement or at best in entrepreneurship. important to know where you want to move inCertainly in these two years, understanding the long term. While getting a right profileabout business functions, their importance and gives a perfect start to your career, you mustroles in organization has increased a lot. also note that getting a handsome salary 23  
  23. 23. VOL - II ISSUE – III JAN – MAR’12 e  -­‐  globuzZ      without good learning might get counted in I believe the inclusion of some live case-studiesthose years of experience that went in vain and or recently winning B-plan can be moremay affect negatively. Therefore selection of refreshing and worth reading for all theyour aim in life and choosing the right path to students and alumni.achieve your goal is very important. Gettingexperience across various functions may give 7. Being one of the founder members of IBS,you good confidence both for entrepreneurship what additional initiatives you suggest foror senior management positions in long term International Business Society?prospect. Cultural changes based ongeographical variation could be a good IBS team should now go one step ahead of alllearning, both for national as well as in terms of bringing in eminent guest speakersinternational business understanding. from across the industries and verticals on regular basis. Seminars on international topics5. What do you feel should be the can be arranged frequently with the help ofcapabilities and skills, PGDM-IB students respected lecturers. This gives IB course anshould develop while at SIMSR? opportunity to showcase itself across industries and get more relevant job offers in future.Apart from regular curriculum, participationin various B-school competitions should be 8. Would you like to suggest some initiativesincreased. There should be a regular watch for the Alumni Committee /Imprints?and news spreading from respectivespecializations in order to make sure the Alumni Committee can have an “Active Cell”,participation of students in good competitions. which can work exclusively with esteemedFurther, live projects can be a very good add- alumni to maintain healthy relations and geton for students to learn and contribute to any quality projects/summers/placements forcompany. This can also create a chance to deserving candidates. Highlights of Imprintsshowcase the students’ abilities and may can be put in mail, covering the successconvert in job offers. story/Award wins by SIMSR students in recent competitions. This can allure alumni6. What changes would you like to see in the towards reading it fully and may bring theircontent and format of e-globuzZ? attention to their contribution in it.     24
  24. 24. VOL - II ISSUE – III JAN – MAR’12 e  -­‐  globuzZ   IBS  Interactions  Financing entrepreneurial ventures by Colin Bottomley: An hour and ahalf discussion with sir was really an insightful one where we learnt aboutthe sources of funds for an entrepreneur and how they go about in the  struggle in setting up their own “ventures-a physical manifestation of theirdreams”. He started with a small group activity wherein we had to listdown our (students) revenue structure and expenditure pattern. This waywe were enlightened by the fact that-if managing daily transactions is sodifficult for a human being then the scale and complexity of businesstransactions an entrepreneur deals in is unimaginable! This way he threwopen the discussion and told us about the various funding agencies for anentrepreneur to name a few were-angel investors, venture capitalists, bank overdraft, and last but notthe least friends and families. We not only learnt the literal definitions of the same but also about somenitty-gritty involved in the inception of ventures.HELM Interaction: Two delegates from a global MNE Helm AG, Mr.Daniel Wilhoeff and Mr.AxelThomas Viering along with Mr. Samir Somaiya graced the afternoon and made the IBS interaction session a memorable one! The team started with a fine group activity involving not only the students (SIMSR and other colleges of Somaiya campus) but present faculty and Mr Samir Somaiya too. The latter half of the discussion involved understanding Germans work culture, the role of Indians in their firm and what is their perspective on “Global India and its Resurging economy”. All this was followed by a quick rap- up question-answer session where the intrigued audience asked relevant questions pertaining to international Business and in return got extremely satisfying answers. A lot of practical learning and cross polarizations of ideas took place and students had a lot in their palette to discuss and take away before they leftthe room!Cultural Awareness Session on Spain: On 23rd Jan, IBS@SIMSRarranged an interaction with Dr. Myriam Guerra Balic, MD PhDfrom Ramon Llull University in Barcelona. She was accompanied byMs. Andrea Granell Querol. They made an interactive presentationon Spain highlighting its history, culture including the dances andfoods, levels of economic development in various sectors andachievements in sports, arts etc. They also dwelt on the possibilitiesfor cooperation between Ramon Llull University and SIMSR. Thevisitors were immensely impressed with our campus and the students  as well. 25
  25. 25. VOL - II ISSUE – III JAN – MAR’12 e  -­‐  globuzZ  CHEP India InteractionWe had the president of CHEP India, PranilVadgama to interact with us. He has been heading theIndian operations for the last three years of which hespoke about in detail. He was very candid in telling usabout his experiences with Indian clients and how hemanaged to expand his pallet and logistics business insuch a short span of time. Mr. Vadgama has also beenpart of GE, Europe division and he elaborated on thework culture at GE. The insights provided by him wereof immense value and definitely complemented ourclassroom learning with what he had to share with thestudents. He was accompanied by our alumnus JyotiAnand of the 2008-2010 batch, who is currently aCustomer Supply Chain analyst at CHEP India.  Asian Paints Tom Thomas, General Manager International Business Division at Asian Paints addressed the students of PGDM-IB on the strategies adopted by Asian Paints in the past to expand their business in APAC and other European countries. He gave interesting anecdotes on his experiences at Asian Paints while dealing with foreign business associates. He related theoretical concepts with real time practical situations, which helped the students, get a holistic view of international business as a profession. It was indeed a great learning experience for us and was a reassurance that the learning in the classroom is applied in the real world. Mr. Thomas also invited queries from the students and explained at length quenchingthe curiosity of the students pertaining to the current international business scenario.   26
  26. 26. VOL - II ISSUE – III JAN – MAR’12 e  -­‐  globuzZ   Alumni  Interactions  Interaction 1.Our alumnus, Mr. Mihir Deshpande who is currently the assistant managerfor Business Development and New Product planning at Johnson & Johnsonwas with us recently for an interaction with the IB class. He spoke to us abouthis journey after graduating from SIMSR as an International Businessprofessional. Mr. Deshpande also gave us insights into the pharmaceuticalindustry and in particular explained about J&J’s business in India. At the laterend, the session became highly interactive when students inquired theprospects of international business as a profession and the current employment  scenario for the same. He answered all of them very patiently and his warmthwon everyone’s hearts.Interaction 2: Co-hosted along with Alumni CommitteeKey Speakers for the event:Vipul Khosla,Research Manager at Australian Broadcasting Corporation, Melbourne, AustraliaPGPIB (2002-04 Batch), SIMSR Aarohi Vashishtha, Associate Director at IPE Global, London, UK Amruta Kulkarni, Manager -Client Relations at Sodexo Svc India Pvt. Ltd, Mumbai, PGPIB (2002-04 Batch), SIMSR Mr. Vipul Khosla and his colleagues were in the SIMSR campus on 24th February, 2012. Prof. C.P. Joshi coordinated our interaction with the 2 PGPIB alumni and an esteemed guest from London. Vipul shared his personal experiences and   learning in SIMSR very candidly. During his SIMSR tenure, he had his summer internship at EXIM bank and got placed with an advertisingfirm later. He found that ‘media’ and ‘developmental work’ were his core interest areas. His callingwas ‘child educational development’ and Media literacy. He completed his Master’s programme in thisdomain at London School of Economics (LSC) after which he worked with BBC, London.Vipul is currently working with ABC, Australia, in the Research Management division. He showcasedto the students one of his online live projects for UN. Vipul explained how IB programme at SIMSRacted as a launch pad for him and his International career progression in a great way. He told theaudience, the importance of voluntarily going out and trying different activities, exploring and gettingnew ideas for personal development. He also talked about the attitude and motivational differencesbetween students at Indian institutes vis-à-vis the foreign institutes. 27