Monthly Newsletter of University School of Management Studies...a great job done by Abhinav (Helllooooo Guys)..

2. ALOHA
Connecting Thoughts
Includes
GOVERNMENT BIJOYENDRA SANYAL explores the future
National Rural Employment Guarantee Act scope in this month’s special focus!
has been recently been launched by the
Manmohan Singh government. ASHISH BOOKWORM
KAUSHIK explains its real effects and In this month’s edition of the bookworm
implications. LATIKA MAHER presents her views on
Stephen R. Covey’s highly appreciated best-
MARKETING selling work – 7 Habits of Highly Effective
Changing business scenario HARPREET People.
KAUR presents the newly evolving
purchasing practices in the country. CAMPUS CATCHUP
Get to know all the latest happenings on the
HEALTH campus of University School of Management
Medical tourism is on an upswing in the Studies with MAYANK GOEL’s first hand
country with the growth projected to increase reporting.
steadily in the coming times. SACHIN
GUPTA identifies the reasons for this sudden FACE-TO-FACE
spurt of health travelers. In the interview of the month Mr. D. P.
Nanda, GM, Moser Bear spoke to RAHUL
TAXATION BHIMRAJKA about the future plans of the
SUMIT MAHAJAN presents the highly company.
controversial FRINGE BENEFIT TAX in a
new perspective. BIG BULLY
HIMANSHU NAUTIYAL and VIDHI tame
BE POSITIVE the bulls and bears of the sensex in this
The key to success in today’s competitive monthly roundup of the stock market.
world is to have a Can – Do Attitude. NEHA
TIKOO explains 5 easy steps to building a QUIZZLER
‘Can-Do Attitude’. Update your business knowledge with this
month’s edition of QUIZZLER compiled by
SECTOR ROUNDUP quizmaster BIJOYENDRA SANYAL.
This month PRABHAT JHA rounds up the
major happenings in the Automobile sector in GURU COOL
the past few months. This month ASHISH KAUSHIK talks about
the works of the famous business guru
SPECIAL FOCUS Michael Porter. Click here to know your guru!
The launch of Club One Air gives India its
first fractional cost based airline.
ALOHA
Connecting Thoughts
GOVERNMENT

3. EDITOR’S NOTE
Welcome to the inaugural issue of ALOHA – Communicating
Thoughts, the monthly magazine of the University School of
Management Studies.
We, the students of the country, have the task of shaping tomorrow.
We have the potential to transform and transcend all – be it old
conventions, standards or above all, our own limitations. Strangely
enough, for a group as important as this, our voice is still not heard. There is no proper
channel for us to speak out – for what we think is right or against what we feel is wrong.
ALOHA is just a small step towards setting that right. It is the voice of the students of
USMS – the mouthpiece through which we would make our opinion known. The views
expressed in here are purely those of the authors, and thus bear no necessary relationship
with the institution. And that’s what ALOHA is – a way to reach out to the rest of the
world.
This first issue marks the fruition of months of hard work and planning. Right from the
initial concept to the final design, everything has been managed by us students. The issue
spans a gamut of articles on varied topics to make this one of the most comprehensive
mirrors of the managerial and economic issues gripping the country.
I am proud to present to you ALOHA – Communicating Thoughts. Hope you like this
small effort on our part.
ABHINAV PUROHIT
Editor - ALOHA

4. ALOHA
Connecting Thoughts
GOVERNMENT
India's rural job guarantee scheme
The World Bank says that more than 30 manual work. Through this Bill the
per cent of the Indian population lives on government, aims at removing poverty
less than $1 (Rs 43.50) a day, but Indian by assuring at least 100 days'
economists believe the figure of poor -- employment. The minimum daily wage
especially rural poor -- could be much had been pegged at Rs 60. State
higher. We have tried to fight poverty by governments, Panchayati Raj institutions
various means, but have met with little as well as non-government organizations
success. So what India needs is would be involved in implementing the
something more lasting than patchwork law.
policies to help its millions of poverty
stricken people. The government feels
that the National Rural Employment
Guarantee Act can solve that problem,
given that it has the potential to provide
a livelihood to millions. But will the plan
succeed? Why is there resistance to it?
What will it cost the nation?
According to the last Census, 72 crore
(720 million) people live in rural areas. The National Rural Employment
Currently at around 7.8 per cent, the Guarantee Act will cost about Rs 40,000
unemployment has been steadily rising (Rs 400 billion) crore annually.
in India. This has led to a migration of According to another estimate, however,
huge numbers of people from rural to it could cost about Rs 50,000 crore (Rs
urban areas. With over 65 per cent of 500 billion) annually, or about slightly
India's population under the age of 35, less than 2 per cent of GDP. The Rural
the country needs to create 6 crore (60 Development Ministry currently is
million) jobs over the next five years to allocated Rs 24,000 crore (Rs 240
prevent the unemployment rate from billion) annually for all its schemes. To
gaining unmanageable proportions. meet the total cost of this ambitious
scheme, states will still have to shell out
Jean Dreze, a Belgian economist, who is Rs 4,000 crore (Rs 40 billion). The rest
currently with the Delhi School of of the Rs 12,000 crore (Rs 120 billion),
Economics, is the chief author of the assuming the total cost works out to Rs
National Rural Employment Guarantee 40,000 crore, might be raised from other
Bill, 2004 promises wage employment to schemes whose allocations may now be
every rural household, in which adult merged into this project.
members volunteer to do unskilled
1

5. ALOHA
Connecting Thoughts
GOVERNMENT
Finance Minister P Chidambaram says major problems of employment and
that the government will meet the development.
requirement for the job guarantee
scheme by: The opposition party BJP on the other
hand brought out the major demerits of
• Normal increase in budgetary the bill, which are as follows:
support;
• Savings from existing • The decision to provide Rs 60
employment schemes; and per day for a guaranteed 100
• Additional allocation in gross days rural employment translated
budgetary support to states. to only Rs 500 a month, which is
not sufficient to run a family.
Chidambaram said the states' share in • The law could lead to friction
the funding is only 10 per cent. In his within a family over selection of
Budget for 2005-06, Chidambaram had the member to be provided the
stated that the National Food for Work job.
• It is feared that in the process
Programme would be converted into the women and physically
National Rural Employment Guarantee challenged could be left out.
Scheme with an allocation of Rs 11,000 • The decision to make the state
crore. governments finance 10 per cent
of the scheme could lead to
To begin with, as many as 200 districts, financial problems because of the
including 150 districts under the Food poor financial conditions of some
for Work Programme, would be covered states.
under the Bill. It would be extended to
all the 600 districts in the country within With back up of such arguments BJP
five years. The Bill also provides for demanded inclusion of the urban sector
unemployment allowances if the job, in the bill or a separate bill for the urban
under the scheme, is not provided in the sector as 4 crore urban poor are still
rural households. living in slums. There were also
concerns about increasing fiscal deficit,
With UPA government taking all the rising interest rate and corruption level
credit for the bringing the bill out, Rural as past initiatives such as food-for-work
Development Minister Raghuvansh programme have all resulted in the
Prasad Singh stressed on the point that above-mentioned problems creating an
employment would be generated through insecure environment
development works, solving the two
.
ASHISH KAUSHIK
2

6. ALOHA
Connecting Thoughts
MARKETING
Status of purchasing practices & IT in India
The business world is changing rapidly This integration calls for accurate &
and newer innovations in every field are timely flow of information throughout
ruling the roost. The purchasing trends the supply chain.
of Indian industries have similarly
undergone a radical transformation in Various effective purchasing practices
the last couple of decades. In 1980s, could be: -
companies could reduce cost of their
products and services to compete in the 1. Single Sourcing - It implies that
market through number of suppliers should be
the application reduced to minimum; ideally to
of strategies like one only.
time and lean 2. Supplier Involvement – Initially
manufacturing this practice characterized only a
(this means buyer - seller relationship, with
manufacturing price-based decisions being the
products sole determinant. But now, both
according to the parties, buyers as well as sellers,
time period or are interested in long-term
according to the profits. Thus long-term cost
seasonal trends), total quality cutting, quality, capability and
management amongst others. But these services form the basis of
strategies do not help now in further cost purchasing decisions.
reduction, so many of the companies 3. Strategic Purchasing - It can be
discovered effective Supply Chain viewed as the pattern of
Management as the next step to increase decisions related to acquiring
profit and market share. required materials and services
that support operations and
Better purchasing practices and activities of the organization.
integration of the processes of the supply These have to be consistent with
chain members are two key elements of the overall corporate competent
supply chain management. Purchasing strategy. It means that the various
practices can be hailed as the foundation business practices adopted by the
on which the whole Supply Chain organization so as to survive in
Management structure is based. For this competitive business world
effective management of the supply like diversification of products,
chain, these practices need to be price and quality management
supplemented with the integration of etc. are well aligned with the
processes of the supply chain members. purchasing plan for the future.
3

7. ALOHA
Connecting Thoughts
MARKETING
Adoption of the above purchasing deliveries between manufacturers,
practices has benefited numerous suppliers, distributors and customers.
organizations around the world. Second one involves the backward
coordination of information, which
USE OF INFORMATION flows from customers to suppliers and
TECHNOLOGY for this real time exchange modern IT
tools need to be used rather than
Exchange of traditional paper based information
information at systems.
each and every
level at USE OF INFORMATION
appropriate time TECHNOLOGY IN PURCHASE
by appropriate PRACTICES IN INDIA
personnel is the
need in today’s business scenario. A survey conducted among 273
Organizations have to work in companies results that Indian Companies
coordinated manner with their suppliers, have adopted new purchasing practices
distributors, and the retailers. to a large extent but the use of IT is very
Information about consumers purchases, less. Among the top 5 IT technologies,
sales forecasts, promotion activities, on- fax is the most commonly used as a
hand inventory and production schedules communication technique. E-mail is the
is required to be exchanged among the next most used whereas use of bar
chain members in real time to effectively coding and e-commerce is almost nil.
manage the supply chain. For this there Thus, Indian companies are at the
should be integration along the supply preliminary stage of employing supply
chain. It can be of two forms. The first chain management. Because real
type of integration involves coordinating integration can only be achieved through
and integrating the physical flow of the application of IT tools.
HARPREET KAUR
4

8. ALOHA
Connecting Thoughts
HEALTH
Medical Tourism
When multi-specialty luxurious private Current Scenario:
hospitals came on the horizon in the Referrals and word of mouth used to be
early 80’s , many people scoffed at their the mantra for the hospitals. But now
classy comforts, 5 star facilities & air these private hospitals are realizing that
conditioned atmosphere. But today we this mantra is loosing its sheen. So they
are living in an era where all these coming up with some of the innovative
facilities are prerequisite to a good, marketing strategies like - sponsoring
hospital. Now it looks like as if hospitals events, associating with neighborhood
are not attracting patients, rather they are doctors through which doctors are
attracting customers who are willing to referred. Some cases to these hospitals &
pay more for availing these facilities. in return they will get some of the perks
like – invitation to medical seminars,
The mushrooming of new private discount for themselves & their family at
hospitals, coupled with the rise of an these hospitals. Some of the other
urban & middle class willing to pay strategies adopted include tie-up with
more for quality healthcare and the hype medical insurance companies, opening
surrounding medical tourism in India, is call centers to enquire about the health
forcing large private hospitals to act like of the patients & reminding them about
a corporate house with marketing & PR their regular health check-ups after they
department and spend huge amount of have been discharged. Some of the big
money on just marketing . private hospitals like Apollo, Escorts and
Max Healthcare are adopting all these
Reasons, why private hospitals are strategies.
going for aggressive marketing look
very apparent:
1] There is a shortage of good medical
facilities in some parts of India and these
private hospitals want to fill this gap.
2] Rising Income of people of India is
enabling them to demand not only the
basic medical facilities but some of the
extended benefits like – air conditioned
rooms, state of art infrastructure etc.
also.
3] A huge chunk of foreign patients are
coming to India for availing cheap
medical facilities.
4] Competition in the urban markets is
forcing these hospitals to differentiate
themselves through their facilities.
5

9. ALOHA
HEALTH Connecting Thoughts
Future trends: a year, are expected to double within the
It is next 2 to 7 years.
expected More and more private hospitals will go
that more rural to tap up this huge market and
and more more and more schemes like “kisan
private card” by Escorts hospital which requires
hospitals the farmers to “save a rupee a day “ to
will come finance their
up with all medical bills
their kind will come up.
of innovative marketing strategies. Corporation of
Competition will increase in this sector, the Indian
as some of the foreign hospital chains Medical
like Fortis, Wookhardt, and Duncan etc. Sector will
will enter the Indian market soon. pick up fast
Hospital rooms with facilities like TV, and the
refrigrator, telephone, sofa set, easy process from
chair & dining chairs will become the illness to
norms of day. International patients to recovery is going to be very smooth and
India, which currently stood at 1.5 lakhs patients in the hospitals will have an
amazing experience in the hospitals.
SACHIN GUPTA
6

10. ALOHA
Connecting Thoughts
TAXATION
Fringe benefit tax: a new look
benefit & hence tax has to be paid. A
point to be noted here is that there might
not be any benefit to the employee
because the expense is incurred on
behalf of the client but still the amount is
taxable under FBT.
There is further reiteration of this point
as another clarification says that if the
employer has incurred any expense for
any one of the purposes enumerated in
the relevant section, then the whole of
the expense shall be deemed to have
been provided. No segregation of
expenses for employees & for others is
to be allowed. The only saving grace is
that the same amount would not be taxed
as FBT in the hands of the client.
There are occasions when some expense
If you thought that the fringe benefit tax has to be incurred with respect to the
was to be paid by the employer only for customer or the client. An entity would
the expenses incurred or benefits incur such expenses & there might not
provided to the employee then the latest be employee in this situation also. Some
circular from the government will make of the common expenses in this area
you change your mind. Various include hotel stay & air ticket charges.
explanations & clarifications shows that These expenses would be classified as
expenses on a client or a customer & being taxable & hence FBT will have to
even dealers would see the fringe benefit be paid on this.
tax (FBT) springing into effect.
Next time HLL, NESTLE or COLGATE
If a company incurs an expenditure for offer freebies such as cups with a pack
the client & this out-of-pocket expense is of tea leaves, cold coffee shakers with
reimbursed by the client, then the instant coffee powder or a free
company that has incurred the toothbrush with pack of toothpaste, they
expenditure has to pay FBT on this. The will have to cough up FBT on such
client will not pay FBT on this. The expenditure. All these expenses are to be
logic here is that head of expense is treated as sales promotion expenditure
covered under FBT as a deemed fringe and therefore, are liable to attract FBT.
7

11. ALOHA
Connecting Thoughts
TAXATION
Similarly, free samples of medicines
distributed by pharmaceutical
companies to doctors also qualify as
sales promotion expenditure & would
attract FBT. Consumer durable
companies that give away freebies,
such as a DVD player with a colour tv
or film/music software with a player,
could be asked to pay FBT on the
expenditure incurred on free offers.
The summer holidays of employees may
now prove expensive for the employers.
It now appears that the employer will
have to pay FBT in the years that in
which employee claims the income tax
exemption on leave travel assistance Right now, employees are liable to pay
(LTA). When the LTA is not included in tax if the company reimburses expenses
the salary, the expense would be taxable of over Rs 15,000 a year for medical
in the hands of the employer. treatment in unapproved hospitals. This
is because expenses above this threshold
The tax liability of companies providing are treated as a perquisite. However, the
medical reimbursements to their CBDT has now clarified those expenses
employees is to rise. The central board on medical reimbursement for treatment
of direct taxes (CBDT) has made it clear in unapproved hospitals will be taxed.
that companies will have to pay FBT on The employer will have to pay FBT if
reimbursements up to Rs 15,000 for the amount is below Rs 15,000 & the
medical expenses incurred by their employee will have to pay tax if the
employees in unapproved hospitals. amount exceeds Rs 15,000.
SUMIT MAHAJAN
8

12. ALOHA
Connecting Thoughts
BE POSITIVE
Boost your attitude
!!! Accomplish your goals!!!
"A positive attitude is the one characteristic that all successful people have in
common." Anon
“Attitude”- What is attitude? It is why. We should believe in our selves
a manner in which one feels, thinks, or and believe that nothing is impossible
acts that shows one’s disposition, because the word impossible itself says
opinion, or frame of mind etc. In today’s that ‘I-M-POSSIBLE’.
world, having a positive attitude is often
considered a secret to success, but for
maintaining that attitude; ‘will’ is the 3. With the
main prerequisite. The power of positive problem in
attitude can help us in accomplishing mind, focus
whatever goals we set for our selves in on what
life. Conversely, negative thoughts and you can do
feelings can prevent us from living the about it
life we really want. It is a positive state
of mind, which manifests in the way one Finding ways to use what we’re good at
thinks and acts. One can develop it is to solve the problem. Generally,
through the following steps: whenever we face a problem we tend to
think negatively and feel low about it,
we should curb this habit by looking at
5 Steps to building a ‘Can-Do the problem from different perspective
Attitude’: and thinking about the alternative ways
of solving our problem.
1. When you hear yourself say you
can't do something, stop! 4. Be open to trying a different
approach
Resist going down this path – it's a one-
way STREET, WHICH lowers our By perceiving from different outlooks
confidence and demotivates us. we can solve any problem that we face.
Refraining our selves from saying “I Whatever we do, we should take interest
can’t” can work wonders. Remember, in it and make it enjoyable and fun for
it's a habit – and it can be broken. ourselves.
2. Develop a problem solving mind-set
Look beyond the "can't" to the reason
9

13. ALOHA
Connecting Thoughts
BE POSITIVE
at the world, but also our whole
5. Do it your way environment and the people around us.
We should make things work for Negative attitude says: “You cannot
ourselves, on our own terms. We should achieve success”
leave a mark on what ever we do and be
our selves and not imitate anyone. Positive attitude says: “You can
achieve success, and that is what
A positive attitude leads to everyone wants and strives for”
happiness and success. It possesses the
power to change our whole life. When Even one single step towards
we see the bright side of life, our life manifesting a positive attitude will bring
becomes filled with light. This light more light into our life!!!!!!
affects not only us, and the way we look
NEHA TIKOO
Your erroneous zones
Have you ever looked into the mirror and asked worth. Remember, at no time, under no
yourself what’s wrong with you? Or have you ever circumstance is self-hate healthier than self-love.
said ‘Yes’ when you wanted to say ’No’? Or do Even if you have behaved in a way that you dislike,
you feel that it’s not you but others in your life that loathing yourself will only lead to immobilization
controls your feelings? and damage. So instead of hating yourself, develop
positive feelings. Learn from the error and resolve
If your answer to any one of these is yes then they not to repeat it but don’t associate it with your self-
reflect your erroneous zones. An erroneous zone worth.
is a kind of self-destructive behavior that may seem
perfectly acceptable, but in reality, is harmful to• You don’t need their approval
your own happiness. Needing approval is tantamount to saying “your
view of me is more important than my opinion of
So how does one go about overcoming his/her myself”. You can never escape disapproval no
erroneous zones? matter how much you want it to go away. For
every opinion you have, there is a counterpart out
• Taking charge of yourself there with exactly the opposite view.
Don’t judge your intelligence on the basis of your
ability to solve complex problems. A truer• The useless emotions – guilt and worry
barometer of intelligence is effective, happy life If you believe that feeling bad or worrying long
lived each day and each present moment of life. enough will change a past or future event, then you
You are intelligent if you know how to choose are residing on another planet with a different
happiness over depression. Feelings are not just reality system. Learning from your mistakes is
emotions to you. They are reactions you choose to healthy but guilt is unhealthy because you are
have and so once you learn that you can feel what ineffectively using up your energy in the present
you choose to feel, you will be on the road to feeling hurt, upset and depressed about a historical
intelligence – a road where there are no bypaths happening.
that lead to nervous breakdowns.
So break yourself from the past and free yourself
• Self love and self worth from all the pressures that drive you towards your
If you love someone then don’t judge your self past. Past is over and don’t let your past occupy
worth on the basis of whether the other person feels your future.” Your future is an empty canvass
the same for you or not. You might want the other and you can paint it the way you want”
person’s love but it is not essential to your self SUCHITRA AHUJA
10

14. ALOHA
Connecting Thoughts
SECTOR ROUNDUP
Automobiles Sector
The growth in Indian Automobiles of finance at relatively low rates of
Sector has been high for the past few interest and price discounts offered by
years, since 2001-02 to be precise. Post the dealers and manufacturers have
liberalization, the arrival of new and stimulated the demand for vehicles and a
contemporary models, easy availability strong growth of the industry.
Passenger Car Market
2002-03 (A) 2007-08 (P)
Total Units - 547,083 Total Units - 975,703
Premium & Premium &
Executive Luxury
Executive Luxury Mid-size 2% 3% Mini
Mid-size 2% 19%
0% Mini 20%
17%
26%
Compact
Compact 56%
55%
Projected CAGR 12.3%
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15. ALOHA
Connecting Thoughts
SECTOR ROUNDUP
Two Wheeler Market
Present estimated size 5.4 mn units per year
CAGR (last 5 years) 10%
Average two-wheelers per 1000 people
India 27
China 08
Advantage India
• Largest Two-Wheeler Industry Milestones 2003-04
Manufacturer in the World • Car production crosses 1 million
• 2nd Largest Tractor Manufacturer mark.
in the World • Car exports cross US$ 1 million
• 5th Largest Commercial Vehicle mark.
Manufacturer in the World • Auto component exports cross
• Number 1 in Global Motorcycle US$ 1 billion mark
Manufacturer is in India
• 4th Largest Car Market in Asia -
crossed the 1 million mark
PRABHAT JHA
12

16. ALOHA
Connecting Thoughts
SPECIAL FOCUS
Fractional cost based airline model-the Indian perspective
The airline sector in India has grown by The Indian economy is growing at a
leaps and bounds in the past few months berserk speed and business travel is also
and that has opened a lot of interesting grown rapidly. The inconvenience and
possibilities. While most of the new frequent delays of airline travel
entrants are in the low cost segment one increasingly may cause companies to turn
airline that stands out is Club One Air; to business aircraft to help solve at least
India’s first airline based on fractional part of their air transportation needs. Many
ownership model. Promoted by Manav companies recognize that business aircraft
Singh, it caters to the top executives and are tools to enhance productivity. Through
businessmen allowing them to pick up a point-to-point, on-demand, private
stake in the venture and fly wherever and transportation, the use of business aircraft
whenever they want. Besides the flying can result in considerable timesavings.
charges, the fractional ownership costs The need for connecting flights
between Rs 50 lakh and Rs 2 crore, disappears, while the time spent at airports
ranging between one-eighth and one- is minimized as companies can control
fourth of an aircraft cost thus enabling a their employees' travel schedules.
person to own an aircraft at a fraction of Employees also can use travel time more
the cost. effectively, as business jets provide quieter
working environments than the
Fractional cost based airline model have commercial flights.
been in vogue in the west for some time.
One of the factors driving the business jet However many Indian corporate and even
market is MNC’s may not want to bear the cost of
growing buying an aircraft. These companies could
frustration own them jointly with others through a
with travel fractional ownership program, thus
on providing a lucrative market to Club One
commercial Air and others of its ilk. The number of
airlines. customers for fractional programs may
Polls and expand, as they may prove more attractive
surveys, as to first-time business aircraft users than
well as outright purchases. In the west, fractional
considerable ownership is an important element in the
anecdotal business jet market; and its growth has
evidence, indicate that many corporate been phenomenal.
executives resent time spent waiting for
commercial flights at airports, seeing it as
lost productivity.
13

17. ALOHA
Connecting Thoughts
SPECIAL FOCUS
In the Indian context its success is It may also end up with planes that
largely dependent on how the market produce no revenue but still have capital
shapes up in the coming years. One of and operating costs attached.
the factors that they need to be careful
about is price. Even the top segments of Club One Air must also be extremely
Indian corporate sector are frigidity sensitive to demand surges, and the fleet
about the expenses they acquire. It is must be sized to meet the greatest of
expected to face competition from these. If it is not done, customers will
airlines offering club card or jet card have to be paid for any violation of
programs, which are popular in the west. timing and availability guarantees. To
Already there has been a buzz in the avoid this, it will need to supplement
industry that Kingfisher is eyeing this their fleets by chartering other people’s
market. In general, the card programs planes, which is an expensive
provide the benefits of fractional proposition.
ownership, but without the need for
capital investment in a full share.
Essentially, the programs are simply a
means to market block charters.
Another aspect airlines like Club One
Air need to keep in mind is the fact that
making money with fractional operations
is difficult. Unless the airline has a
tremendous market presence (in terms of
bases and airplanes), it will need to fly a Despite all possible roadblocks it may
large number of non-revenue-producing face, the future of fractional cost based
flights. Planes will often need to fly airlines in India, seem to be bright. Its
empty somewhere to pick up a customer; success will go a long way making our
they might also need to fly empty after civil aviation sector truly international.
dropping one off.
BIJOYENDRA SANYAL
14

18. ALOHA
Connecting Thoughts
BOOKWORM
7 habits of highly effective people
In The 7 Habits of Highly Effective principles, the more accurate and
People Stephen R. Covey presents a functional they will be.
holistic, integrated, principle centered
approach for solving personal and The book is based on 7 habits, three of
professional problems. Covey, one of the which pull us from the level of
famous management gurus, reveals a dependence, where the actions we take
step-by-step pathway for living with are a result of the situations we are in or
fairness, integrity, honesty and living behavior of people around us, to the
with dignity. He makes us realize how level of independence, where we act
important an aspect of our lives ‘change’ rather than being acted upon.
is, and how we can take the advantage of Independence is the paradigm of I — I
the opportunities can do it; I am responsible; I am self-
that change creates. reliant; I can choose. These are included
in the second part, PRIVATE
The book is divided VICTORY. These three habits are:
into four parts. The
first part talks about 1. Be proactive…. Where
the paradigms and proactivity signifies that we do
principles. A not blame the circumstances for
paradigm is how we our actions. Rather we hold
see the world, how ourselves responsible for
we perceive, everything we do. Proactivity is
understand and the freedom to choose our
interpret what we response to any stimulus in life.
see. Covey states
that if we want to 2. Begin with the end in mind……
make a significant, Where Covey lays stress on
quantum change, we need to work on imagining what kind of thoughts
our basic paradigms. Then he talks about would we like to hear from the
principles. He makes us aware of the fact people associated with us after
that principles are like lighthouses. They our death, and act accordingly.
are natural laws that cannot be broken. He very effectively exemplifies
They have an enduring and permanent the fact that whatever we do, we
value. He blends our basic paradigms should keep in mind the long-
with these principles. The more closely term results emerging from it.
our paradigms are aligned with these
15

19. ALOHA
Connecting Thoughts
BOOKWORM
a team achieves much more than
3. Put first things first….. Where all the members would
he explains the concept of individually.
personal management through
the “Urgent Vs Important” Part four of this book, RENEWAL,
quadrants. One realizes how to talks about the seventh habit:
prioritize in order to succeed.
7. Sharpen the saw…. It’s the habit
The third part, PUBLIC VICTORY, is that surrounds all the other habits
where we reach the level of and makes all these habits
interdependence. Interdependence is the possible. It’s renewing the four
paradigm of we — we can do it; we can dimensions of nature - physical,
cooperate; we can combine our talents spiritual, mental and
and abilities and create something better social/emotional.
together. Covey includes the next three
habits in this part. These are: All in all with penetrating insights
and powerful anecdotes, this book
4. Think Win/Win…. Where the teaches us principles - principles of
author emphasizes on going for a personal vision, personal leadership,
deal in which both the parties personal management, interpersonal
win which will lead to active leadership, empathic communication,
efforts from both sides and best creative cooperation and balanced
results. self-renewal.
5. Seek first to understand and It’s a book that gives you not just
then to be understood… A very essential tips, which can be used to
important aspect of an become good managers, but also can
interdependent living, where help a layman to become an effective
Covey introduces the term and efficient human being. Its for
‘empathy’. this reason that it is hailed as one of
the best ever written management
6. Synergize…. Which means that book and I recommend you to get a
in an organization, two plus two copy for yourself without further
is not four, its much more than adieu!
that. Synergy is the power where
LATIKA MAHER
16

20. ALOHA
Connecting Thoughts
CAMPUS CATCHUP
CAMPUS ROUNDUP
August 1st marked the induction of the
6th batch of University School of
Management Studies MBA programme-
+. The whole batch of new comers of all
the courses of the university were
addressed by the Vice Chancellor Prof.
K.K Aggarwal at the University
Auditorium. Prof Aggarwal introduced
all the Schools and the Head of different
departments. The students were
informed about the infrastructure of the
university. Also included was a visit to
the University Information Resource The students body of USMS- Synergy,
Center. The students were then offered was introduced to the freshers by the
refreshments at the end of the President of the body Mr. Ravi
programme. Dhanwariya. Synergy’s structure, goals
and operations were explained in detail
to the rapt audience. Some of the
newcomers then took the podium to
share their impressions of the first day at
USMS.
The rest of the day saw the healthy
interaction between the newcomers and
their seniors.
This is what some of the new comers
had to say:
Then the Dean of University School of
Management Studies, Dr R.K. Mittal at “This (university) is a whole new
the seminar hall of USMS, separately experience for me and I am glad that I
oriented the new batch of MBA students. am here” Himanshu Nautiyal
The event began with the dean giving a
brief introduction about the school’s “I never thought the student body
infrastructure and the facilities. All the Synergy would be so active….” Sumit
faculty members gave an introductory Mahajan
speech about their background and
vision for the university. “The faculty is illustrious” Akanksha
Gupta
17

21. ALOHA
Connecting Thoughts
CAMPUS CATCHUP
The fresher party of USMS was held at participants for the title with over 15
the BLUES Discothèque on the 28th of guys and 10 girls putting in their best
August. The place was rocked by the effort. The first round was the ramp walk
students of USMS with all of them in which the contestants showed some
arriving in style, putting on the hippest style and attitude on the ramp. Then
outfits in town. The party began at 11 in came the introduction round with the
the morning with a bang and the dance brief introduction by the participants.
floor was set on fire. The music was The final was the talent round in which
loud and rocking with DJ Sunny exciting the contestants flaunted the various
the souls. The party saw some talents they possessed. Eventually the
commendable dance performances and results came out with Miss & Mr.
happening moves. Everybody had a ball Fresher award going to Latika Mahar &
and unlimited snacks and soft drinks Gaurav Sharma in that order.
helped the matter. The dance session Another jam session followed for an
lasted for four hours followed by the hour and a half. This was a memorable
Miss & Mr. Fresher competition. There occasion with everybody enjoying the
was fierce competition amongst the moment to the fullest.
MAYANK GOYAL
18

22. ALOHA
Connecting Thoughts
FACE-TO-FACE
General Manager of Moser Bear, Mr. D. P. Nanda
In a candid talk with Rahul inflationary conditions prevailing in the
Bhimrajka, the General Manager of economy has also contributed to our
Moser Bear, Mr. D. P. Nanda explains price tags!
the secrets behind the run-away success
of Moser Bear. He also talks about the Rahul Bhimrajka: - Moser Bear,
future expansion plans of Moser Bear in despite being a benchmark in quality,
India and abroad. The excerpts of the has reported heavy profit cuts of the past
interview are: one year. Comment.
Rahul Bhimrajka: - With two- D. P. Nanda: - This can be attributed to
production unit in NCR, one in Noida, two distinct reasons. Firstly as I
and the other in New Delhi, it has been mentioned earlier, the increasing prices
seen that the company is experiencing of raw materials has hit us badly.
high communication and traveling costs. Secondly the international CD sale has
What has been done to minimize these taken an unprecedented and unexpected
costs? dip. To counter this, we are launching
some new formats in the CDs, which
D. P. Nanda: - We have a hotline would help us in creating a steady
between our Delhi and Noida offices, demand. But, as of now, the market
and we have our own logistic facilities demand does not argue well for us.
apart from the hired truck capacity. We
have also shifted our loading operations Rahul Bhimrajka: - the one problem
from Tuglakabad and moved to a much that has plagued every corporate in the
closer location in Dadri. These small country is that of Power. How do you
changes have contributed several deal with it?
millions to our savings.
D. P. Nanda: - As power is the
Rahul Bhimrajka: - What is the reason backbone of our industry, only a small
that despite stable prices of fluctuation too can greatly affect the
Polycarbonate in the market, the quality of our products. To tackle this,
company has seen an increase of around we have our own powerhouse that
25% in average costs? generates nearly 40 MW of electricity
everyday. We use filter water for the
D. P. Nanda: - The raw materials used smooth working of the power plant.
apart from Polycarbonate, have been
steadily rising in the international Rahul Bhimrajka: - What are your
market. Moreover, the overall plans to explore the domestic market?
19

23. ALOHA
Connecting Thoughts
FACE-TO-FACE
D. P. Nanda: - It is growing. In fact, we
believe that the real India lies in its D. P. Nanda: - We are known in the
villages, and as the computer penetration market for our quality price and
in these areas is increasing, now logistics, which we handle brilliantly.
electricity and other infrastructure Our reach with the suppliers is excellent
facilities too reaching here, the rural which help us having a very good
market is opening up and we are gong to credibility with our clients. Our major
market our products more aggressively threat is from China, as they produce
in these areas. Also, we would now look products low in quality and price. But
to grab a better hold over the urban because of price difference they are
market by launching some new format eating our share. But we will come out
CDs and other products in the urban of it soon.
markets.
Rahul Bhimrajka: - How does the
Rahul Bhimrajka: - What was the attrition rate affect you as compared to
motive behind joining the Blu-ray Disc other industries?
Association?
D. P. Nanda: - The attrition rates is not
D. P. Nanda: - Currently our brand is an issue with us as the salaries, perks,
not very well known in the international quality, that we are offering to our
market, so tie-ups with these types of clients is as per the existing industry
associations will get us some exposure structure.
as well as popularity in the global
market space. Rahul Bhimrajka: - tell me about the
latest MOU signed between IIT, Delhi
Rahul Bhimrajka: - Why was HP and Moser Bear.
chosen to manufacture optical media
using the unique “light scribe” D. P. Nanda: - We engage in extensive
technology? R&D for the format of our CDs and
other products. The MOU is towards that
D. P. Nanda: - It is the need of the hour; end too. As the rural market is still to
we are paying royalty to HP to get its capture, we are banking heavily upon
services. our solar energy products to succeed in
these markets.
Rahul Bhimrajka: - What is your
competency in? Rahul Bhimrajka: - Thank you.
RAHUL BHIMRAJKA
20

24. ALOHA
Connecting Thoughts
BIG BULLY
"Psychology of trading"
Successful futures traders always
acknowledge the importance of 4. MAINTAIN MENTAL CLARITY
psychology in their trading. Traders One of the keys to successful trading is
must be disciplined and remain mental independence and clarity - the
emotionally detached from the market. ability to free you from concerns that
might distract you from trading. Whether
Trading requires management of the they be family, friends, or financial
emotional states. Emotional imbalance concerns, always aim for a complete
impairs the ability to make congruent clarity of mind in your
decisions. The most optimal state is one trading. Being clear in your goals and
of complete emotional detachment, to maintaining your mental focus will help
remain calm and to act in accordance to you stick to your plan and not make rash
the markets. That includes negative as decisions based on emotion.
much as positive emotions - the key
word is to stay "cool". Following are 5. DON'T PLACE ALL YOUR
the some important points that a trader EQUITY IN ANY SINGLE
should observe in his or her trading POSITION
strategy…. One of the keys to success in trading is
lasting in
1. DISCIPLINE the game.
Like most things in life, without it you Don't over
DID YOU KNOW?
Bombay Stock Exchange
won't succeed. Discipline is sticking to commit
Limited is the oldest
your plan, including your "stops" and your
stock exchange in Asia
entry points. It is the hardest, but most account to
important rule of all. any single
position.
2. KNOW YOUR PURPOSE
Know why you are trading, if it is for the 6. ACCEPT THAT THE MARKET
thrill, to make a living, whatever it is…. IS ALWAYS RIGHT
you will enjoy it more and trade better if The market cannot be controlled by one
you know why you are doing it. person so it has to be accepted that it
will move regardless of what you want it
3. TRADE ONLY WHAT YOU CAN to do. Fear, greed and hope can cloud
AFFORD TO LOSE your vision of the market and can
Futures trading are risky; so don't fund cause emotional responses detrimental to
your trading with money, which, if lost, your trading. The market will go where
could put you into financial difficulty. it wants to go.
“THE BIGGEST RISK IN LIFE IS NOT TO TAKE RISK.”
21

25. ALOHA
Connecting Thoughts
BIG BULLY
7. TRADE WITH DEFINITE GOALS 9.ADMIT DID YOU KNOW?
IN MIND THAT Bombay Stock Exchange
Profits belong to those who make YOU was established as "The
decisions and act, not those who react. ARE Native Share & Stock
Your trading plan should not only focus WRONG Brokers Association" in
on the best time to get in but also when Don't fall 1875
to get out. This involves setting a view in love
for profit taking or loss minimization. It with a
is better to set a stop for a losing position. If you get it wrong,
loss amount and stick to it. If in profit it admit it, get out, conserve your equity
is a good plan to set a stop to take a and wait for another opportunity.
minimum profit while still giving the
trade the potential for further profit. 10. LET PROFITS RUN UNTIL YOU
HAVE A REASON TO CASH IN
8. DON'T TRADE TOO MANY Let profits run until you are given a
MARKETS reason to cash in, whether that
Concentrate and focus on a few select be a trading system signal, a
markets and completely master them; fundamental factor or your initial
this is what professional traders tend to objective.
do.
HIMANSHU NAUTIYAL and VIDHI
22

26. ALOHA
Connecting Thoughts
BIG BULLY
Benefits of online trading
Trading futures online is not magic. especially important if you are
Even though the information is moving placing a market order. Online
at the speed of light, success in the orders get to the trading floor
market still requires discipline, faster than telephoned orders.
knowledge, and patience. There are • Lower Commissions.
several benefits to online trading: Brokerage firms usually charge
less for handling an online
• Convenience. The financial transaction because fewer of their
information you need for your resource are tied up in executing
trading decision - your a trade.
outstanding futures positions, the • Control. When you trade online,
amount of cash you have in your you decide (no one else) what to
account, and the amount of do and when to do it.
margin required for your
intended trade - can be found on Accuracy. Occasionally, messages
your computer screen. between you, your broker, and the
• Speed. Futures prices can move trading floor can be mis-communicated.
quickly. Once you have made Online trading reduces the number of
your trading decision, you want steps in the order process, therefore
to place your order ASAP. reducing the chances of a
Speed of the execution is misunderstanding.
HIMANSHU NAUTIYAL and VIDHI
STOCK JAGRONS
Dear Money
A situation in which money or loans are very difficult to obtain in a given country. If you do
have the opportunity to secure a loan, then interest rates are usually extremely high.
Also known as "tight money".
Trend Trading
A trading strategy that attempts to capture gains through the analysis of an asset's momentum
in a particular direction. The trend trader enters into a long position when a stock is trending
upward (successively higher highs). Conversely, a short position is taken when the stock is in a
down trend (successively lower highs).
Effective Date
The date, declared by the Securities & Exchange Commission (SEC), on which shares can start
trading. This usually refers to the date when shares become available for sale in an initial
public offering.
23

27. ALOHA
Connecting Thoughts
QUIZZLER
1 Which major car company owes its A. Uncle chips
postwar existence to British army officer B. Lays
Major Ivan Hirst, who scrounged steel C. Cheetos
and other materials to keep the heavily D. None of these
bombed plant going and then secured a 8. 'Think bright, not white' is used by
British Army order for 20,000 vehicles? which company?
A. Land Rover A. National
B. Bentley B. Onida
C. Volkswagen C. Samsung
D. Jaguar D. LG
2 Which famous cheese is made in the 9. What is the alternative name for
town of Hawes in Yorkshire? Consumer Price Index (CPI)?
A. Cheddar A. Laspeyres Index
B. Wensleydale B. Keynes Index
C. Stilton C. Paasche Index
D. Ticklemore D. Mundell Index
3. In which year was the Polo mint 10. Who introduced the concept of
launched in the U.K., initially being 'Permanent Income Hypothesis'?
marketed as `the peppermint ring made A. Adam Smith
wholly by Rowntree'? B. Milton Friedman
A. 1930 C. Franco Modigliani
B. 1941 D. Irving Fisher
C. 1948 11. In what year was the WTO (World
D. 1955 Trade Organisation) created?
4.What does CNN stand for on the TV A. 1993
or Internet? B. 1992
A. Cable News Network C. 1994
B. Cental News Network D. 1995
C. Complete News Now 12. According to Okun's Law, a 1%
D. Crisp Noodle Nest increase of unemployment rate results in
5. 'Quality first, cost second' is used by a loss of GDP of how many percentage
which pen company? points?
A. ADD Gel A. 3
B. Cello B. 5
C. Reynolds C. 4
D. Oliver D. 2
6. 'Prepared to be watched' is used by 13. If an economy uses a floating exchange
which cycle company? rate system then what will happen to GDP if
A. TI Cycles the government decided to use expansionary
B. Hero Cycles fiscal policy?
C. Avon Cycles A. Increases
D. BSA B. No change
7. 'No one can eat just one' is used by C. Decreases
which chips company? D. Nobody knows
24

28. ALOHA
Connecting Thoughts
QUIZZLER
14. What was the first Indian luxury A. Tata House
hotel established by the Tatas? B. Jasmshedji House
A. Taj Mahal Hotel C. Bombay House
B. Hotel President D. TISCO House
C. Watson Hotel
D. Hilton Hotel 21.The Tatas built India’s first steel mill.
15. The Tata group consists of how In which year was it completed?
many companies? A. 1902
A. 60 B. 1905
B. 80 C. 1911
C. 125 D. 1945
D. 26 22. Which of the following appliance
16. The merger of which two large names once were part of the GM family
pharmaceutical majors created a new of companies?
company Aventis? A. Westinghouse
A. Ciba and Sandoz B. Frigidaire
B. Rhone-Poulenc and Hoechst C. General Electric
C. Glaxo and SmithKline Beecham D. Whirlpool
D. Ranbaxy and Cipla 23. Which Vice-President of General
17. Which is India's largest Motors left the company, formed his
pharmaceutical company? own company and named a car after
A. GlaxoSmithKline himself?
B. Dr Reddy's A. Hernando DeSoto
C. Ranbaxy B. Barney Oldfield
D. Cipla C. John Z. Delorean
18. Who is the CEO of Dr Reddy's D. Edsel Ford
Laboratories? 24.'We move the world' is used by which
A. G V Prasad courier company?
B. Satish Reddy A. Professinal Couriers
C. Dr Anji Reddy B. None of these
D. Dr Ramoji Reddy C. Blue Dart
19.Which pharmaceutical company D. DHL
recently acquired a UK-based firm 25.'Spoil yourself' is used by which car
called CP Pharmaceuticals? company?
A. Pfizer A. General
B. Cipla B. Toyota
C. Wockhardt C. Tata
D. Ranbaxy D. Opel
20. What is the headquarters of the Tata
group called?
BIJOYENDRA SANYAL
1-a, 2-b, 3-c, 4-a, 5-a, 6-b, 7-b, 8-c, 9-a, 10-b, 11-d, 12-b, 13-b, 14-a, 15-a, 16-b, 17-c, 18-
a, 19-c, 20-c, 21-c22-b, 23-c, 24-d, 25-c
25

29. ALOHA
Connecting Thoughts
GURU COOL
MICHAEL PORTER
strategic choices. He showed different
One of the choices of creating wealth, which had
world’s most been quite limited in the world of
sought-after traditional trade theories. Several
business guru, scholars have lately extended his
strategists and diamond model.
business There are four factors, Porter suggested,
conference that help to make a nation competitive: -
speakers,
Michael Porter brings phenomenal 1 .Tough Domestic Rivalry
knowledge and insight that helps 2. Country Resources
corporations achieve greater 3. Country Infrastructure (including the
performance. The leading authority on educational quality of its workforce)
competitive strategy and international 4. The Cluster Phenomenon
competitiveness, he is Harvard Business
School’s C Roland Christensen Porter also suggested that there were just
Professor of Business Administration. three generic strategies for managers to
Porter speaks to government and choose from if they wanted to gain
business audience around the world, competitive advantage, something that
including AT&T, First Boston and he believed was the underlying purpose
Proctor & Gamble, focusing on of every business. These could be briefly
necessary strategies. Author of 14 books identified as under: -
and more than 50 articles, his
competitive strategy: Techniques for • Things could be made as cheaply
Analyzing Industries and Competitors is as possible and the firm could
the leading work in its field. become the lowest cost producer
Traditionally, a nation's international in a market.
competitiveness has been explained by
international trade theories originating • Alternatively it could offer
from Adam Smith. However, today's something special or different
global economy is too complicated to be which would allow it to
explained by the traditional trade command a premium price.
theories. Porter introduced a new
competitiveness theory, the so-called • Or, thirdly, it could choose to be
diamond model. He differentiated his what Porter calls a focused
theory from the traditional trade theories producer, looking to dominate in
by arguing that national prosperity is not a niche market, so that others
inherited, but created by choices; in would find it too difficult to
other words, national wealth is not set by challenge the firm.
factor endowments, but created by
26

30. ALOHA
Connecting Thoughts
GURU COOL
To help the firm choose which strategy insight - and strong leadership, the
to adopt, Porter has said that it needs to willingness to make hard choices and to
decide which of five types of industry it take a stand against the conventional
is operating in: - wisdom of the industry.
1. Fragmented
2. Emerging
3. Mature
4. Declining
5. Global
Porter has also said that every firm needs
to examine the following five forces of
competition: -
• The threat of substitute products
• The threat of new entrants
• The bargaining power of
suppliers
• The bargaining power of buyers
• The state of rivalry among
existing companies Honored with numerous titles and
awards, he earned Harvard’s, David A.
Always try to do things in ways that are Wells Prize in Economics for his
hard for other companies to copy, says research in industrial organization, two
Porter. He further adds that finding that McKinsey awards and many others.
unique position isn't always obvious; in
the end, it comes down to creativity and
ASHISH KAUSHIK
The Opinion expressed in this Magazine are solely the author views and should not be interpreted as those of University School Of Management Studies. The Institute and
Editorial Board does not take any responsibility of the facts, views publishes here in.
27