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The Perspective IMT.......... Lead The FuTure September 2010 Corporate Communications and Media Relations Committee IMT Ghaziabad
The Perspective IMT.......... Lead The FuTure
September 2010
Corporate Communications and
Media Relations Committee
IMT Ghaziabad
THE PERSPECTIVE September, 2010
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Out of all the seasons created there is one season which brings joy to most of the living organisms be it us humans, plants or animals. That season is none other than the season of joy or as it is commonly known as Monsoon. All livings forms enjoy it equally but express their joy in different ways like the peacock spreads its feathers to welcome rainy season.
Each of us might have their own special memories of this season spread across their respective life spans. Some might remember it as the time when they danced in rains without worrying about the world and its troubles. Some might remember the hot maggi they shared with their friends at a stall outside their school or college while waiting for the rains to stop. Some might even remember the awesome pakodas and “pudine ki chatni” which their mom used to make on their special request which was made while sitting in balcony to enjoy the rains.
This month we celebrate this season of joy and happiness with all our peers and hope they enjoyed this season and its beauty to the fullest.
This issue of “The Perspective” like its previous edition focuses on the various activities on campus in our institute throughout the month. This month due to the end term examinations and the summer placement week, very few activities were undertaken by the various clubs and committees as all the students were busy in preparations of the two very important parts of the academic calendar.
We would love to hear from our readers and would also like to invite students to send in articles, photographs and suggestions for the magazine.
Happy Reading!!
Corporate Communications and Media Relations Committee
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Index
Article Page No
Editorial 2-3
FMCG Week 4
The Battle: End Term Examination 5-6
Summer Placements 7-8
Joy of Summers Week 9
What does a B-school mean? 10
Why US needs to Innovate 11
Challenges in Microfinance 12-14
Quizbee 15-17
Life @ IMT Ghaziabad 18
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FMCG Week
Among the plethora of events to be organized by the Alumni Relationship Committee of IMT Ghaziabad during the academic year 2010-2011 was the ‘FMCG Week’ held in the month of September, 2010. The week witnessed a series of Guest Lectures for the students by our esteemed alumnus from some of the biggest names in the FMCG sector. The purpose was to ensure that the students gain an insight of the sector and an enriching experience as they interact with the best minds that have been a part of the industry for long.
The week began with Mr. Ashim Nayar, Owner at Agro Food Industries, coming and addressing the students on a distinct group of consumers: ‘pets’. He introduced the students to “pet care and grooming”. Stating the tremendous potential and scope, he gave examples from various parts of the world and drew analogies and differences to those in India. Speaking about different marketing strategies and innovative ideas, he emphasized on research and its importance in this sector and general. Towards the end, Mr. Nayar shared with the students a bit about his journey to success and mantra of doing “work that one loves”.
A guest lecture by Mr. Ramarao Dhamija, Senior Product Manager Home Care, at Dabur India Ltd, was the perfect food for mind just before IMT’s very own “Pizza Night”. Beginning with the basic terms in marketing, he focused on various marketing and advertisement strategies used by Dabur. He explained the importance of values while marketing a product with the aid of various advertisements which have made a difference for the organization while sharing insights associated and success delivered. In the middle of the week as the excitement reached its zenith while the thirst for knowledge was barely quenched, Mr. Sunayan Mitra, Marketing Manager-Coffee & Beverages, Nestle, visited the campus to deliver a lecture on “Branding: Brand Development and its importance”. He gave examples from the industry to explain the power of values and insights which transcend the barriers of language and borders while building and leveraging brands. As an apt culmination to the week, we had Mr. Ambarish Bandyopadhyay, Regional Sales & Customer Manager at Hindustan Unilever Limited, Kolkata come to IMT and share with students the importance of sales. An informative and entertaining session on Lever’s sales strategy in urban as well as rural markets helped students understand how things are done in real time. He spoke about past and present activities at the organization followed by information on their future plans and how to go about achieving them. In conclusion, the FMCG Week made its mark on the students by imparting knowledge and deeper insights on the sector. A well blended mixture of fun and learning witnessed great participation and enthusiasm by the students making the event a grand success.
Courtesy: Alumni Relationship Committee
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The Battle: End Term Examination
A student's declaration at the end of answer paper reminded me of the Disclaimer Notices as
it said "I hereby declare that answers written above are true to the best of mine & my friend's
knowledge & I claim no responsibility whatsoever for any mistakes. Whatever I have written
is truly fictitious & any resemblance with the Subject Matter is purely Coincidental."
MBA’s are known for delegating work to subordinates but when they face the test??????
That’s what happened as the end terms approached. Library full of people trying to clear
fundamental concepts and thinking, why had they left a settled job and came here. Everybody
was asking the same question –“How much have you done”. People who were attentive in
class were seen holding out Tutorial sessions for rest of the class and there was 100%
attendance in those classes as the future managers realized it was the only means of
succeeding in their exams
A very interesting status message of a student said “We all are in a Prisoner's Dilemma..We
all are studying assuming other's are doing the same...But we all could reduce the effort put in
by not studying...If only everyone cooperated”
Relative grading did bring this thought and it was theory put into excellent practical use.
But as the theory said we did have to study. If the examination fever was not enough,
students were charged up about the summer placement week. First year students were seen
discussing about the likely prospects of the companies coming in, reading financial and
marketing terms, and discussing sectors in which they would like to work in and even the
prospects of final placements. Excitement was all around in the air and students were seen
bubbling with enthusiasm regarding the summer placement process.
All the things were enough to sway a student away from studies, away into the exciting land
of prospective placements and perks but as it happens the disaster always strikes. The first
exam was Financial Accounting Management and if it was a dream for people from
commerce background it was a sleepless night for the bulk of the engineers present in the
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campus. People trying to match the balance sheet and find out ratios to predict a company’s
performance could hardly predict their own performance.
As the exams continued the students started getting more upbeat not so because the exams
were going as planned but they were ending. Open book exams always bring a joy but when
you don’t find answers in the book or you don’t know where the answers are it can be
excruciatingly painful. Also it is rightly said that when you have an open book exam you
forget the book.
Finally when the exams ended the campus was back to life. Continues sleepless nights did
nothing to sway them away from partying or playing. One could feel the sense of joy in the
air. We the students did finish our part and now the fate is sealed. At this point of time
students have forgotten about their prospective scores which are now in the hands of the
destiny. They just want to relax and enjoy a couple of days off before the stressful new term
begins.
By: Nimesh Gupta
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Summer Placements “The ability to learn faster than your competitors may be only sustainable competitive advantage.”
Arie de Geus The quote so aptly defines the situation of each and every human being across the globe, who has just one thing on their minds and that is to be better than others. There is a huge race among the graduates and post graduates to prove their mettle in front of the companies coming to their campus for placements may it be for the summer internships or the final placements. India is a growing economy and one thing which such an economy requires in plenty is good managers to handle the businesses. The companies go to the best educational institutes across the country to hunt for talent, who according to them would be able to work for the growth of the organization. Each company has their own criterions and bench marks on which they judge the applicants, thus finally choosing the very few who were able to live up to the company’s expectations. The condition at IMT is no different, even IMT Ghaziabad students who are one of the best students of the country have to prove themselves in front of the companies. The students of IMT Ghaziabad like all the other top B-Schools of the country have two forms of placements, which are the summer internship placements and the most important of them all the final placements, during which the top companies visit the IMT Ghaziabad campus to hire students. The summer internship placement is placement of a first year management student in a company for the period ranging between 8-10 weeks. During this period the students are assigned a guide in the company as well as a project on which they need to work. The students are supposed to use their knowledge and understanding to complete the task assigned to them in the project. At the end of the summer internship the students have to make a detailed report about their project, the students are also supposed to present their project report both in the company as well as in the campus. This year the summer internship placements for the first year students of 2010-2012 batch took place in the later half of the month of September. During placement process a huge number of companies came to the IMT Ghaziabad campus to recruit the first year students for summer internship projects. The huge excitement among the students specially the ones who had just completed their graduation and had no experience of working for a company could be clearly sensed. Everyone had just one thing on their mind which was to be at their best; be it their looks, their presentation or their GD performance. The huge turn up of students in business formals gave a sense of a huge business conclave where the students had come to market themselves. The whole process was very well coordinated and executed by the Placement Committee of IMT Ghaziabad which was also acknowledged by many of the companies which came to campus. The whole process was conducted very efficiently with the help of second year as well as first
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year students, who volunteered to handle the operations and execution part of the process in sync with the Placement committee. By the huge number of students who were selected by various companies to join them for the summers, it was evident that IMT Ghaziabad is one of the top B-schools of the country and that its students are at par with the students of other top B-schools. The process as is said does not end till all the students are placed and that is what is going on in the campus. With many companies who had not been able to come earlier due to time constraints, coming to the campus the process still continues thus giving both the companies as well as the students who were not so lucky earlier one more opportunity to prove themselves. By: Nishant Singh Gahlot
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Joy of Summers Week
Giving is divine, it is warmth, it is humane, it is happiness, it is a reward, it is joyous; The Joy of Giving.
The joy of giving can't be defined or measured. It can only be felt, again and again, in more ways than we can imagine. September 27 to October 3 marked a very important week in the life of IMTians. While the rest of the IMTians were busy with their placements in the Summer Placement Week, the Make A Difference Foundation of IMT Ghaziabad geared up the students to give in their own unpretentious way and celebrate the joy of giving with the Joy of Summers Week. Joy of Summers Week was on the lines of Joy of Giving Week which is a "festival of giving" that aims to bring together people all across the country through different acts of giving- money, time, skills and resources. As Mother Teresa said, “Let us not be satisfied with just giving money. Money is not enough, money can be got, but they need your hearts to love them. So, spread your love everywhere you go.” IMT celebrated the Joy of Summers Week by spreading smiles all across. Other than giving money people gave chocolates and notebooks to the needy. To make people feel this happiness from within MADF had a provision for one to come along and then give the items himself to the children in the slums. This is a wonderful way of ensuring that more children in distress continue to be helped, in the process also contributing to many smiles. To continue spreading happiness in IMT, MADF is planning to organize Joy of Placement Week for the Senior Batch in their final placement week.
Spread the joy; in the Joy of Summers Week 2010. Be a part of something big, in your own small ways and put a smile on several faces including yours. Giving joy to everyone will give you yours in return.
By: Swati Goyal
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What does a B-School mean?
I realized it recently. Management Education is not about theory. One does have to build a strong base in the Fundamentals but one also ‘has to’ apply it outside the books. B-School is what you make of it- a research lab or a source to ‘connect’ with the industry. Exploring the infinite possibilities that a B-School offers and applying the concepts learnt outside your realm is what an ‘ideal learning’ should be. One should be prepared to live life the ‘harder way’. Harder way, I reiterate, does not mean burning the midnight oil. It means going for sales pitches in the scorching sunlight.
We, at Sydenham Institute of Management Studies, Research and Entrepreneurship Education (SIMSREE), go through this grind. Because we lack the luxury of a residential B-School, there is no lush green sprawling campus welcoming a student. Nor are there dormitories to relax and provide for an ‘accommodation’. This lack of luxury drives us and makes us stronger. Looking into the eyes of a Sydenhamite, you would realize that we have been ‘trained’ to live life the harder way. We capitalize on what we have and what is the most crucial element- Mumbai. Cluster of financial firms surrounding our modest campus is what we call ‘Heaven’. What more direct way of asking for industry exposure?
Theory is what you learn in books. Practical is what you apply outside. That’s the rule of SIMSREE. Luxuries of a B-School are foregone when we know we have the means to explore the world outside and implement the ‘learning’. The grilling of going out there on your own begins from day one. And that’s what I call, the opportunity of a lifetime.
Capitalize on every little chance you get. Make the best of the B-School years by being inside and ‘outside’ it. Take all the learning you can get and be ready to get your hands dirty. That would make you the Master of ‘Management’. B-School life is different for different people. But the most passionate share the dream to achieve more every single day and night. It’s about learning the art of perseverance, marketing, pressure handling and getting things done. When you pass out, you can count on the opportunities you would have not explored. There would be plenty. But an effort to give your best goes a long way. It paves the path of a bright future ahead..
By: Vishuddha Thakkar
Sydenham Institute of Management Studies, Research and Entrepreneurship Education (SIMSREE), Mumbai.
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Why US needs to innovate
Silicon Valley has always prided itself on producing some of the most cutting edge technology and commercializing most of the tech adding more jobs and employing people thereby contributing in a much greater way to the economy than just producing more profit. It has always been the hub of innovation and inventions. But off late, there has been a marked shift from technological innovations to software driven innovations. This has starred hurting the innovation landscape as US has slipped from its previously unchallenged position as the “Mecca of Innovation”.
The story has been replicated in the east with Japan seeing a similar trend in recent years. China has been the Manufacturer of the world and India the Service provider. Both the countries are low on innovations as much as being focused on cost and value delivery to the customers. This has created a slowdown in the pace of innovation across the world and to make matters worse, the Obama administration with its various rules and regulations is further contributing to this as it is a well documented fact that immigrants form a sizable chunk of the entrepreneurs and hence contribute to the economy of the US. To add on to this the Venture capitalists are losing money and are afraid to invest on start up driving more nails into the coffin of innovations.
Latin America is fast becoming the destination of choice for entrepreneurs and venture capitalists alike. To attract and retain innovators, Chile has created a new policy where entrepreneurs can avail of many benefits from the government like seed capital up to $40000 and infrastructure. This is luring many people to abandon the formerly lush meadows of US and set shop in Chile. Chile with its low labour cost and location proximity to US being near shore is intent on being home to the next Pirates of the Silicon Valley.
With the new age mantra of “Innovate or die” catching up with US, it is time that US woke up to the reality it is facing. The brain drain that US will likely face in the face of competition from various countries together with massive unemployment rates, US has a hard time and an uncertain future on its hands. To regain its former glory, US has to innovate and create a atmosphere to lure the entrepreneurs back which can only be done by relaxing the regulations it has imposed to stifle the innovators. US will have to play the role of facilitator than protector at this point to regain its former glory.
By: Nikhil Pai
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Challenges in Microfinance and the way ahead
Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime.
Bangladeshi banker, economist and Nobel laureate Mohammad Yunus first developed the benignant concepts of microcredit and microfinance. Microfinance is a tool of reaching out to the low-income clients, poor and self employed, who traditionally lack access to banking, to equip them with financial services such as loans, in order to sustain and hence uplift them in the process. Mohammad Yunus is also the founder of Grameen bank and cornerstone in successfully implementing the microcredit framework in Bangladesh. Yunus and the bank were jointly awarded the Nobel Peace Prize in 2006 for their efforts in creating social and economic development for the bottom of the pyramid.
This micro-credit movement in the 1970s tested practices and built institutions, designed to bring the kinds of opportunities and risk-management tools that financial services can provide to the doorsteps of poor people. While the success of the Grameen Bank (which now serves over 7 million poor Bangladeshi women) has inspired the world, it has proved difficult to replicate this success. In nations with lower population densities, meeting the operating costs of a retail branch by serving nearby customers has proven considerably more challenging. Although much progress has been made, the problem has not been solved yet, and the overwhelming majority of people who earn less than $1 a day, especially in the rural areas, continue to have no practical access to formal sector finance. Microfinance has been growing rapidly with $25 billion currently at work in microfinance loans. It is estimated that the industry needs $250 billion to get capital to all the poor people who need it. The industry has been growing rapidly, and concerns have arisen that the rate of capital flowing into microfinance is a potential risk unless managed well.
Traditionally banks have never provided financial services to clients with lower or no incomes. Bank will incur substantial cost in managing a client account regardless of the sum of money involved. The gross revenue generated in delivering a hundred loans of $1000 each will not differ greatly from that of lending a loan of $100,000. But the cost will be hundred times more in case of managing hundred loans. To serve the poor, large number of smaller loans is required while the lender will prefer to lend smaller number of large loans to minimize administration costs. And here lies the fundamental snag in extending loans and savings deposit facilities to the poor.
Collateral deposit is another facet banks deal with while extending loan. The poor households generally do not have substantial collateral like title deeds of land holdings due to the lack of proper records and tend to submit crops, utensils, jewelry which is unacceptable to the banks. Hence banks have no cushion against defaulters. Again it is indispensable for clients to have a steady source of income to repay the loan and this cannot be ascertained in case of poor people. This gets manifested in increased risk factor of extending financial services to the disadvantaged section of society.
The recent decision by finance ministry directing the public sector banks to impose and monitor a cap of 24% rates at which MFIs lend to the ultimate micro credit borrowers may
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have a detrimental impact on the sustainability of those microfinance institutions. In the absence of formal financial services, the poor borrowed money from moneylenders who charged exorbitant rates as high as 10% per month. MFIs in India have been lending loans at reasonable interest rates of 27% -30%. This allowed the MFIs somewhat affordability in terms of managing the administration costs of maintaining accounts and receiving funds from its sources. At this juncture curtailing the already abutted interest rates may hurt the prospects of MFIs, especially the struggling ones.
It has been a long standing debate about how microenterprise lending geared to providing short term capital to small businesses in the informal sector be sustained as an integral part of the financial sector and how their financial services can be further expanded using the principles, standards and modalities that have proven to be effective.
Microfinance institutions can, on a perpetual basis, broaden their resource base by mobilizing savings, accessing capital markets, loan funds and effective institutional development support. One of the ways in garnering this support would be urging corporate houses, millionaires to generously invest part of their wealth in such institutions. The foremost task should be to cultivate the culture of savings amongst the poor and encourage the same through various incentives. Location convenience, flexibility and security of savings will be essential in promoting it among the poor. Savings facilities will make large scale lending feasible.
Another important aspect is achieving excellent repayments and providing services to a wider audience. Microfinance experts agree that women should be primary focus of service delivery and evidence shows they are less likely to default than men. MFIs have employed the solidarity lending methodology, where women in group borrow loan, to increase its client base along with minimizing the potential risk. Employing newer technologies to reduce operating and administrative cost, cost reductions through simplified and decentralized loan application processing will have to be accomplished to increase their competitiveness.
Conducive legal and regulatory framework is imperative for the growth of such institutions. Ample freedom should be given to MFIs to determine their interest rates to cover operating costs and generate revenue. Government interference should facilitate the transition of MFIs to sustainable stage by providing subsidies, and credit enhancement mechanisms. Collaborating with the formal banking sector will aid in expanding successfully the microcredit operations. Comparative strength of each sector could be entwined to foster a mutually beneficial venture. Formal sector can refinance the loans made by the informal sector while informal sector can incorporate its cost effective administrative and operating practices. Roping in NGOs to act as intermediaries between commercial banks and the micro entrepreneurs will also help leverage the micro lending process.
The major consequence of microfinance lending will be in addressing the financial inclusion. Banks should give wide publicity to the facility of no frills account. Technology can be a very valuable tool in providing access to banking products in remote areas. ATMs cash dispensing machines can be modified suitably to make them user friendly for people who are illiterate, or less educated. Creating awareness about financial products, education, and advice on money management, debt counseling, savings and affordable credit is indispensable for achieving inclusive growth. It may appear in the first instance that taking
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banking to the sections constituting “the bottom of the pyramid”, may not be profitable but it should always be remembered that even the relatively low margins on high volumes can be a very profitable proposition. Financial inclusion can emerge as commercially profitable business. Only the banks should be prepared to think out of the box.
By: Prajnasmita Rout
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Quizbee
Q1) Company that runs Orange and T-Mobile in the UK has said that it will cut 1,200 jobs. What is the name of the firm?
Q2) Auctioneers Christie's have raised over £1.5m from the sale of office artifacts from which business?
Q3) The Journal first published in 1889 featured the Jones 'Average', the first of several indexes of stock and bond prices on the New York Stock Exchange. How do we know that today?
Q4) Started by X and Hearst Corporation, it was first published on April 19, 2000. Since its inception X posing alone, has exclusively appeared on the cover of each issue every month. Which publication am I talking about?
Q5) Connect this building to the world of business.
Q6) This agency has recently tied up with John Abraham for a 100crore 3-year contract, the agency will handle all his endorsements, appearances, licensing, television tie-ups and marketing representation for the next three years.
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Q7) Identify the Brand.
Q8) The sub brand was created to distinguish items that encompassed the use of consumer audio and video, as well as being conventional computing products. The logo represents the integration of analog and digital technology. The ‘__' represents an analog wave and the ‘__' represents digital binary code. Q9) "The letter 'K' is forceful, direct and arresting. I decided to use it twice for emphasis, to begin the name and to end it. Then I filled in the other letters to make the word short and catchy as to sound." Who said this? Q10) It was founded in 1851 as ‘The New York and Mississippi Valley Printing Telegraph Company’. The name was changed in 1856 at the insistence of Ezra Cornell, founder of Cornell University. Identify the company.
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Answers: 1. Everything Everywhere 2. Lehman Brothers 3. Wall Street Journal 4. O, The Oprah Magazine 5. 232 Santa Margarita Avenue, Menlo Park, California. Google was started here. 6. Mates, the entertainment unit of Madison. 7. Visa 8. Sony VAIO 9. George Eastman, on Kodak 10. Western Union Compiled By: Vineet Sehgal
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Clicked By: Nishant Singh Gahlot
