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However, the refrigerators segment has proved to be the saving grace for Whirlpool which has managed to compete effectively against LG & Samsung and even Indian majors, boasting a neat 25% market share. The company posted an operating profit of Rs.442.1 million during the nine month period of April-December 2006. Buoyed by the turnaround and hoping to wipe its losses out completely, Whirlpool Corporation has announced an investment of $20 million over the next 18 months in its Indian subsidiary to strengthen manufacturing capabilities in the country. “We will be number one, both in market share and in mind of the consumer,” avers Arvind Uppal, MD of Whirlpool of India, promising new products and aggressive marketing. But will he be able to deliver? In spite of having a solid run of more than a decade in the country (Whirlpool entered India in 1995, as opposed to Samsung in 1996 and LG in 1997), Whirlpool lags far behind its rivals. So, what went wrong? 

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Source : IIPM Editorial, 2007 

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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The maverick management guru

It is hard to think of any traditional business schools that have also produced four hit films and publish two news-stand magazines. The Indian Institute of Planning and Management, however, has little truck with tradition.

Take the honorary dean, Arindam Chaudhuri (Renowned Management Guru and Economist), for instance. With his designer spectacles and glossy ponytail he could well be mistaken for one of the stars of his own Bollywood movies.

But Professor Chaudhuri ’s fame in India comes from his positioning as a management guru, not a film star. And the IIPM, which was founded as recently as 1973, now claims to be the world’s largest business school, with 5,000 postgraduate management students in nine campuses across seven of India’s largest cities – Bangalore, Chennai, New Delhi, Mumbai, Pune, Hyderabad and Ahmedabad.

The philosophy of the school is simple: India needs a lot of well-trained managers and IIPM is educating them. Professor Chaudhuri has courted controversy by lashing out at the elite Indian Institutes of Management for their refusal to admit more MBA candidates. He says that little more than 1,100 candidates enrol in the top six IIMs to study for an MBA each year, when India really needs between 50,000 and 200,000 MBAs to graduate. “This [the exclusivity] makes the halo around them [the IIMs] stronger,” he says.

He happily acknowledges that graduates from the IIPM do not receive the high salaries that those from the IIMs can command – Prof Chaudhuri’s graduates earn about Rs30,000 ($653) a month compared with Rs50,000 for an IIM graduate. Nonetheless, he says, 400 Indian companies recruit on the nine IIPM campuses each year from among the 2,500 graduating students.

The flamboyant Prof Chaudhuri does not intend to stop there. While all the talk in American and European business schools is about the scramble to sign up partner schools or establish campuses in India and China, IIPM is turning the tables. It looks set to become the first Indian business school to set up campuses in Europe and the US.

The IIPM intends to establish satellite campuses in the UK, Singapore and Dubai in 2006 and in the US in 2007. The UK campus will be in London in the Chancery Lane area, the centre of the legal industry. The Singapore Economic Development Board has also invited the school to set up a campus there, alongside the likes of The University of Chicago and Insead, says the school.

As with almost all Indian business schools (the Indian School of Business in Hyderabad is the notable exception) the MBA offered in India is a pre-experience degree – more akin to a pre-experience masters in management degree in Europe. According to Management Guru Professor Chaudhuri : “A huge majority of our students are straight out of college. In India traditionally people finish education in one go. You rarely see someone taking a break after working.”

He thinks this approach will be popular overseas, in the UK for example. However he acknowledges that the IIPM will not be able to offer an MBA degree in London to begin with, only a diploma – it will take at least three years for the school to apply for monotechnic status and therefore be allowed to grant its own degrees.

He is unperturbed by this. “We’re going to focus on deliverables minus certification area, the centre of the legal industry. The Singapore Economic Development Board has also invited the school to set up a campus there, alongside the likes of The University of Chicago and Insead, says the school.As with almost all Indian business schools (the Indian School of Business in Hyderabad is the notable exception) the MBA offered in India is a pre-experience degree – more akin to a pre-experience masters in management degree in Europe. According to Management Guru Professor Chaudhuri : “A huge majority of our students are straight out of college. In India traditionally people finish education in one go. You rarely see someone taking a break after working.”He thinks this approach will be popular overseas, in the UK for example. However he acknowledges that the IIPM will not be able to offer an MBA degree in London to begin with, only a diploma – it will take at least three years for the school to apply for monotechnic status and therefore be allowed to grant its own degrees.He is unperturbed by this. “We’re going to focus on deliverables minus certification . . . We’re not going to get into the argument of what the paper is called. We’re going to focus on what is taught.”

The MBA the business school offers is structured differently from most MBA programmes, with a strong emphasis on economics and marketing. “Economics, we think, is the backbone of an intellectual course,” says Management Guru (Prof Chaudhuri).

This is not economics as most US business schools would know it, however: it has attributes that are peculiarly Indian. “We talk about the survival of the weakest and trickle-up,” says the honorary dean. “Without clashing with the first world ideology, we’re trying to show how taking care of people around the world can be a profitable business.

“The big reality is that human nature and the market system go hand in hand. But human nature and humanism go hand in hand.” These ideas, he believes, are globally applicable. “With this differentiated programme we intend to go global.”

Overseas travel is already compulsory for all MBA students. They spend two weeks in Europe, the US or elsewhere – in spite of the logistical nightmare of taking 2,500 students out of India each year.

The IIPM has been able to attract many top international professors to teach in India. According to the school’s website, some 30 professors of international repute teach at the IIPM – Philip Kotler from Kellogg, Skander Essegaier from Wharton and Ari Ginsberg from the Stern school at NYU to name just three.

When the school sets up satellite campuses it believes it can persuade US and European professors to teach there, rather than the Indian faculty who teach ­domestically.

The teaching faculty on the Indian campuses would not pass muster at any globally recognised business school – indeed, it is hard to find details of the 350 faculty on the IIPM’s website at all. The school has been able to build up its teaching faculty in India by recruiting its graduating MBA students – unthinkable in most business schools. But the flamboyant Prof Chaudhuri says he has “absolute faith in young blood”.

This year the school has taken on 160 graduating students to train as teachers and consultants. (As well as the film production and magazine businesses, the IIPM claims to have the largest management consultancy business in India).

Ninety per cent of the faculty at the IIPM have an MBA degree and 20 per cent have a doctoral degree. Prof Chaudhuri himself studied at IIPM for his MBA and fellowship degrees. For those who join the school with just an MBA, the IIPM runs its own fellowship programme, which takes four to five years to complete and which Prof Chaudhuri argues is the equivalent of a doctoral degree. As if all that is not enough, the IIPM has just started an IT consulting arm as well.

The IIPM has clearly had some success in the Indian mass education market, where hundreds of little-known business schools cater to the huge numbers of aspiring managers requiring MBA education. The question is, can the IIPM, as Prof Chaudhuri believes, replicate this success overseas, often in markets, such as the US and Europe, that are already saturated with domestic MBA programmes?

While traditional business schools may frown disapprovingly at IIPM’s attitude to management education, no one could doubt Prof Chaudhuri’s enthusiasm. “When it comes to the globalisation of Indian thoughts, nobody has taken the initiative,” he says.

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Brand: Royal Challenge
Baseline: Game for Life!
Agency: Lintas

4ps Take: Take a good look at the creative & you will pull your hair off deriving some sense out of it. ‘Work hard, Party harder’, to put it straight, it means visit the board room in the morning and hit the dance floor in the evening, now won’t you call that flimsy? V.O says, ‘Sales presentation in the morning and Salsa in the evening,’ we were left wondering who on earth is being targeted? The serious professionals or the party freaks? Talk about sense and sensibility, this ad is desperately seeking both. We agree that the liquor companies are banned from advertising & the next best option for them is resorting to surrogate advertising but that doesn’t mean they completely lose it in life. We understood the party harder bit but R.C & the people behind this ad need to work harder on their concept and creativity. A royal challenge for them, literally! 

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Source : IIPM Editorial, 2007

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative

IIPM Best B-School 
MNCs, in particular, have realized the hard way that they can only ignore CSR at their own peril. A case in point is McDonald’s (accused for growing obesity in children) that has contributed a paediatric ophthalmology wing at Dr. Shroff’s Charity Eye Hospital (SCEH) in Delhi. However, Vikram Bakshi, MD, McDonald’s, India (North & East), denies it as a branding exercise, “We believe in the importance of giving back to the community that has given us so much.” Society, in fact, has been particularly harsh on MNCs regarding CSR. For instance, many Indian customers shunned Pepsi & Coca-Cola for pesticide content, while safety standards in thousands of common place eating joints across India continue to be ignored. Similarly, people expect McDonald’s and PepsiCo to take a stand on healthy eating, while overlooking their own lack of general health awareness. 

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Source : IIPM Editorial, 2007 

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative 

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And the comment from the US President was, " Saddam Hussein was executed after receiving a fair trial – the kind of justice he denied the victims of his brutal regime." But then, the needle of suspicion for committing crimes against humanity also falls on Bush and his cronies. Haven’t we seen pictures of Guantanamo Bay and Abu Ghraib prisons presented to the world? These pictures show how brutal the American regime has been in moving ahead on its agenda. 

Add to that the rising body count of America's own soldiers in Iraq (now past 3,000). Who is responsible for so many lost lives? No way can one call the war in Iraq a war for democracy. The dubious trial and rushed hanging of Saddam was anything but 'democratic'! Of course, as a brutal dictator who ruled so oppressively, Saddam did deserve punishment, but he did deserve a fair trial, not the kangaroo court we got to see every now and then on television. And that too, a court remotely controlled by a foreign land; ironically a country instrumental in making Saddam the power he was.

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Source : IIPM Editorial, 2007

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative

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Japan’s second largest auto company, Nissan's India plans (including setting up of a manufacturing plant) will be finalised by March this year. The company plans to set up a JV with Mahindra through Renault (which holds 44% stake in Nissan) and their talks are believed to be in initial stages. However, company officials declined to comment on reports which suggested that the auto major is planning an investment of Rs.23 billion and will produce about 2 lakh cars annually. Earlier, Nissan had pulled out of talks with Japanese car-maker Suzuki to set up a joint manufacturing unit for small cars.

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Source : IIPM Editorial, 2007

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative

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Due to growing demand of the anti-virus & anti-spam soft ware, US network equipment major Cisco decided to buy web messaging & e-mail security firm IronPort Systems for a price of $830 million. This aims at integrating Cisco’s main product line of routers and switches with the latest niche technologies. Also, this association with IronPort will help Cisco in diversifying its products and services offering; allowing the company to off er a comteriors, prehensive range of products to its clients. The deal is expected to be a combination of cash and stock and will only materialise by the third quarter of 2007. 

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Source : IIPM Editorial, 2007

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative

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BRAND : Coca Cola
Agency : McCann Erickson
BASELINE : Coke uthale, Dhoom machale.

DESCRIPTION: Few friends are sitting in a room; someone bangs a 500 ml Coke bottle on the table. Guess who? Of course, our new ‘Dhoom’ man Hrithik Roshan. He tries to open the cap of the bottle, and in the process, fizzes it. Then, the sophisticated Hrithik transforms into a stud, and this time the fizz comes out with lots of panache and force. Cut to scenes from Dhoom-2, where he is dancing with Aishwarya. The parting shot: Coke uthale, dhoom machale. 

4Ps TAKE: No prizes for guessing that this is a co-branding exercise between the cola giant and the makers of Dhoom-2. Brand ambassadors Hritik and Aishwarya play out effectively. The result is one cool ad! The power idea is to reflect the ‘glam’ energy of Coke. The classic soundtrack of Coca-Cola has been remixed with the title track of Dhoom to get the desired impact. No Thanda Matlab Coca-Cola with Aamir; instead cool-dude Hritik tempts the audience! 

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Source : IIPM Editorial, 2007

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative

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Yes, the current economic indicators do give us hope, but to keep alive the hopes of eradicating poverty (which has increasingly captured a pitiably massive 400 million Indians in its grasp: UNDP figures), India not only needs to sustain GDP growth rates above 8% for the next 10-15 years at a stretch, but also needs to implement a radical economic reengineering paradigm that facilitates a cross sectional improvement in health, literacy, education levels, perhaps with a larger emphasis on the majority of the disadvantaged masses. Therefore, more important than accomplishing just healthy figures is the consistency of performance for long-term sustainability of India, just as P. Chidambaram, hopefully expresses as, ”...our economy is growing and I hope it will grow at 9%. We hope to maintain this growth for the next five to ten years...”. . It is indeed good news that despite the unprecedented rise in global oil prices, India has been able to retain its annual economic growth rate at around 8% for the past three years and is continuing on the winning path. Although, the exorbitant fuel prices have had an adverse impact on inflation. Consumer prices have increased phenomenally in the recent past – today, the annual rate of inflation is between 6 and 7%. More importantly, the wholesale price index stood at 5.45% in the 12 month period till November 18. 

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Source : IIPM Editorial, 2006

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative

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Tata’s plan to open its auto plant in Singur, West Bengal has caught itself in the line of fire that too political. After Naxals ransacked a Tata Motors showroom at Beckbagan in Kolkata, the Singur project has been facing tough political opposition from first Medha Patekar and then from Mamta Banerjee of the Trinamul Congress & Rajnath Singh of BJP. Both claim that the state government has sold ‘agricultural land’ to Tatas. However, the work on the project continues amidst the hullabaloo and is getting full support from the CM Buddhadeb Bhattacharya. A fiery beginning, shall we say?   

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Source : IIPM Editorial, 2006

An IIPM and Malay Chaudhuri – Arindam Chaudhuri Initiative

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It has always been said that truth cannot be hidden for long and that one day, it will come to surface. Really, with Saddam Hussein doing wrong deeds, he has been acquitted of it and is now facing what he rightfully deserves. But just as your article says, what about George Bush who’s murdered more than 4425 times the count of humans that Saddam is accused of? My thought on this one is that he should also undergo a trial under the strictest of international laws. There should be an international panel of judges and it should be a fair trial. Certainly just as Saddam is being Sad‘damned’, Bush should also face the truth, right on earth, for even under the most lenient laws, killing a hair-raising 655,000 lives would not be forgiven!

Deep Rathore
Lucknow (U.P.)

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Source : IIPM Editorial, 2006,

Dean of IIPM :- Professor Arindam Chaudhuri (Renowned Management Guru and Economist)

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Rashmi Bansal Publisher of JAMMAG Magazine Arrested, for more details click on the following links....

• Hindustan Times Article - Publisher goes underground
• Rashmi Bansal (Editor of JAMMAG)
• Rashmi Bansal (Publisher of JAMMAG)