- John Donahoe, CEO of eBay, discussed practices used by eBay in India like PaisaPay and money-back guarantees to increase revenues. eBay uses auctions for jewelry but fixed pricing for mobile phones. PaisaPay was adopted in India to build trust and comply with local regulations for cross-border payments. - President Obama announced tax breaks for US companies creating domestic jobs, not overseas, due to rising unemployment. This could significantly impact Indian outsourcing companies that rely on the US for 60% of IT exports if other states or countries follow with similar policies. - After the breakup of Hero Honda's joint venture, Hero will have to develop its own product specifications and distribution network to

1. 6th September,2010
Article 1:-Interview with John Donahoe:-CEO ofeBay
John Donahoe took the charge as President and CEO of eBay in March 2008.In this interview,he
told about the practices followed by eBay to increase the revenues .They are using PaisaPay and
money back guarantee schemes in India.eBay uses auction system for jewellery,but fixed rate
formats for mobile phones.The reason for using PaisaPay in India is to build India specific trust
and enables eBay to comply with the local regulatory authority to enable cross border payments.
The ration of fixed rate to auction led sales is 60:40 globally,while in Indian market,it is 80:20.
In China,eBay is focused on cross border market oppurtinties.Chinese sell to buyers all over the
world and PayPal and eBay enables that In domestic market ,they are having joint venture with
Tom Online.
From this article,the main thing I learnt is that customization is necessary,change should be made
according to the market demand,as eBay uses PayPal system for payment in China,while in India
,it uses the PaisaPay system.
Decisions should be taken quickly,company should be able to adapt quickly. The stock price
dropped below $11, down 81 per cent from its March 2000 peak and revenues remained under
pressure. But things are looking up now after some tough decisions, including selling off 70 per
cent in Internet telephony company Skype and a shift to more fixed-rate sales against auction-
led.

2. Article 2
20th sep. Issue
Return To Protectionism
It’s time Indian IT companies startrelying less on contracts from the US
President Barack Obama announced his intention of extending tax breaks to US companies who
create jobs in the home soil and not to those who create them overseas. The President spoke in
the backdrop of rising unemployment, public dissatisfaction with the economic situation. . In
2008, around 0.7 million people worked in the outsourcing sector in India, a number which has
gone up in the past year and a half. It is estimated that 60 per cent of Indian exports in the IT
sector are to the US. In other words, a substantial portion of India’s outsourcing industry is
dependent on the US.
Analysts say that it is only if other states follow Ohio or country-wide steps are taken to
discourage outsourcing, that Indian companies and the economy will be severely impacted.
if the US also adds tax regulations that raise a barrier for Indian companies, the impact for the
Indian sector can be quite significant. Additionally, countries such as China, Mexico and
Vietnam are also expanding outsourcing operations and often provide cheaper services.
The Indian industry would be wise to take note of this, and to try and reduce their dependence on
the country which has powered their growth so far.
Comment:-If there will be tax concession for home companies of USA ,then it will adversely
affect the employment scenario of India,as a substantial portion of India’s outsourcing industry is
dependent on USA.US government is about to adopt protectionism policy to discourage
outsourcing and to increase employment in the country.But it will adversely affect Indian
companies.

3. Article 3
1st November Issue
The Life After Separation
Hero will have to rearrange its strategies once Honda is out of the picture
Honda may be left holding all the aces as the Hero Honda joint venture heads for breakup.
After the breakup of the Hero Honda Joint venture,Hero has to rearrange its strategies. Honda
Motorcycle and Scooter India has already built up its distribution strength of 400 outlets in India
and its sales have risen by 37 per cent as of April-September 2010. Hero will have to be wary of
this fact because it has a technology review with Honda in 2014. Apart from paying royalties to
Honda, which has risen by 28 per cent this year, Hero will have to come up with a product spec
on its own if it is going to compete with original equipment manufacturer such as Bajaj and
TVS.
Hero still has to buy out Honda’s 26 per cent share. First, it has to find bankers who can finance
this deal worth Rs 9,300 crore. Then it will create a special purpose vehicle (SPV), where shares
will be sold to investors, who will indirectly get dividends from Hero Motors, once it uses the
funds to pay back the loans. An SPV is usually used to finance a buyout and also take debt off
the balance sheet. Analysts say these investors will get board seats in return. All the dividends
will then be paid to these investors and will flow into the SPV. Hero has sought to bring in
private equity players, such Carlyle, Warburg Pincus, Kohlberg Kravis and Roberts into the
SPV.It will be interesting how these two groups will settle this divorce of sorts.
Comment:-After breakup of joint venture of Hero Honda,Hero has to come up with product
specification of its own to compete with Bajaj and TVS.Hero has to buy out Honda’s 26%
share.so,after Breakup, Hero has to face lots of problems,like problems of financing,brand equity
and manufacturing own product specification.

4. Article 4