Thursday, May 31, 2012

The Economist draws attention to the shrinking IPOs in USA and Europe. It feels that the public limited company (plc) long viewed as the final destination of all business undertakings is yielding ground to other forms. New innovative forms on the one hand and over regulation of plcs, principal- agent problem and short- term bias of considering only the next quarter profits and market price of shares to the exclusion of the long view on the other are the reasons for this development.
In India, plcs account for only 7% of the total companies though it is taken for granted that a big business which requires large doses of capital will eventually have to go public. There is no noticeable drop in the number of plcs that are getting registered in the country. IPOs have shrunk in India also but that is due to the downswing in the capital market and recession in Europe and USA.

Thursday, May 24, 2012

Because of rapid economic growth in the last couple of years, people nowadays think that Indian business is endowed with some special qualities. The India Way talks approvingly of Indian values and flexibility/ adaptability in jugaad. This is a very exaggerated view.
Look at the massive fraud at Adidas Reebok's Indian operations. The CEO ran a secret warehouse stuffed with stolen Adidas products! Japanese firm Sankyo had to bear a whopping loss after acquiring Ranbaxy. So a restrained view of Indian business is necessary.

Tuesday, May 15, 2012

running academic institutions

Reading Ravi Mathai's part- biography is sobering. He stated categorically that heads of academic institutions must not look at their posts as mere stepping stones. If they do, the institutions would surely decline.
I was reflecting on this and I realised that around me, I have not seen any example of this. I also recalled the latest scandal caused by Loksatta's edit on 4 April 2012 about the rot at the top in universities of Maharashtra. The editorial named both Bhalchandra Mungekar and Narendra Jadhav. Jadhav was University of Pune's vice chancellor for 3 years until recently. The edit stated that his political ambitions came to the fore while he was in Pune.
Jadhav replied to these statements and blew his own trumpet. Then people reacted and each and every misdeed of his was reported, dissected and commented upon. Jadhav must have hoped to show how much better and open he was as compared to Rajan Velukar. Nothing of that sort happened and Jadhav stood exposed thoroughly.
Ravi Mathai and Jadhav - two opposite poles.

Wednesday, May 9, 2012

Got Brick by red brick by T T Ram Mohan. It is about Ravi Mathai's direction of IIM Ahmedabad. I had read the review first and IIMA senior faculty member V L Mote had raised objections to some points. I knew nothing about Mathai except the few mentions by V. Kurien in his autobiography. IIMA is also above my league totally. So I only intend to get information and possibly learn something about leading academic institutions from this book.  A quick browse yesterday gave the impression of a good writing style and racy narrative.

Tuesday, May 8, 2012


More Space!

A two- dimensional spacial existence: home and office, domestic space and official work- place is easy to conceptualize. Public and private spaces are the third and fourth dimensions of space. Restaurants and coffee shops, clubs, pubs and discos, bus stops, train compartments, airport terminals, auditoria, museums, gardens and parks, playgrounds, gyms and jogging tracks, theatres and opera houses, kitty parties, shopping malls, multiplexes, libraries and book shops, walking plazas and streets – we are all familiar with third space but how many have access to truly private space?

Amrita Pritam has talked of a fourth room in the house that women long for. They are at home all the time and have a limited brush with third space occasionally. At home too, they are mostly confined to kitchen. The drawing room and bedroom have their set functions. So what they covet is their own private space – the fourth room in the house, a dream most are unlikely to realize.

Automobiles are so popular because, apart from convenience and flagging status, they give us a tiny bubble of private space on the crowded roads.

Third space is always so crowded in India that having access to second space, howmuchever cramped and non- private, is a blessing. The daily commute from a tiny 1 bhk flat to a tiny, crowed office in an overflowing train or bus is still a stress buster. Taking up your assigned spot behind a crowded counter, at an assembly line or fast moving conveyor belt, at a long office table facing a supervisor or on a classroom platform to herald a new working day is enough to set adrenalin soaring. How zealously we guard our work space! Executives fight over its dimensions. A little more, a little closer to the boss means you are moving up in the hierarchy, make no mistake. Our table space too, is sacred. We put glass over the table top and insert photos, calendar, and pictures in between to give it individuality.

Technological advance is currently putting paid to the pursuit of individual second space. An office need have no real time existence. A wi fi connection, a laptop and a mobile phone and a virtual office space is instantly created anywhere. This collapsing of second and third spaces is surely convenient and makes for efficiency but it also means lack of privacy.

Recently it was reported that American parents are turning their attention to creating a special, hanging out space, equipped with home gym and theatre to keep their teenage children at home and prevent them from loitering about. This, in addition to large space and separate rooms for each family member and for every purpose. Farm houses as weekend retreats have caught on amongst our rich too. The idea is to make the first space so attractive that exposure to third space is minimized. Will it work? Lin Yutang has said,” Sure, I love my family. I want them upstairs when I am downstairs and downstairs when I am upstairs.” The desire to be with one’s peers is likely to eclipse everything else.

Come to think of it, privilege essentially means access to private space. Own room at home, a separate cabin at office, an old fashioned box in opera house, a favourite table reserved at a restaurant mean that you matter.

I started working early and before I understood its importance, had my own table and chair on a long table with two arms on either side in a large office. Own table is what I missed most after quitting the job. The second job offered no possibility of individual space. At tea time, we sat around two long tables that had been joined together and work meant taking turns at visiting classrooms for lectures. Tables at college library were few and were all booked if one reached late. So I joined three outside libraries to create temporary second space. Of course, there were many others before me. Though one could not reserve space in a library, readers would regularly put up “Do not disturb the books” message and achieve the same result. Once a month, a library staff member would clean out all these accumulated books and then one could breathe easy, at least for a short while.

At last, after many years, the college allotted me a separate room. I share it with a colleague who fortunately, is not alive to its possibilities. The room is at an inconvenient point on the top storey of the building. Three steep flights of stairs and then a narrow, rather make- shift staircase must be climbed before reaching it but they only serve to strengthen my privacy. I have fitted swing doors in the door frame but mostly it is so windy that I have to close the door and then I am alone! Books, magazines, paintings, collages, photographs, charts, bulletin boards with clippings and other knick knacks adorn my room. I read, I write or just look out of the window gazing at the trees beyond. I am completely at peace and manage to get a lot of work done.
 I am happy to spend time here. The space has magic for me. I could call it my studio. The place has become famous in college. Once a student entered the room and while I was busy with others, he  looked at the paintings, photos etc. as if he were in a museum and left quietly!



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Sunday, May 6, 2012

Coincidence

I just remembered Hilary Mantel's Wolf Hall yesterday. Decided to read it again, more carefully this time. I also got my copy of the Economist of 5 May 2012 yesterday. My subscription renewal took time and I did not get my copies for the whole of April. Imagine my surprise when I found a review of Mantel's latest book - Bring up the bodies- in it. It is a sequel to Wolf Hall but can also be read independently. I will look sharp for it.
However, the coincidence is very pleasing and makes me feel connected! Mantel looks like a madonna.

Saturday, May 5, 2012

literary versus research- based writing

An aspiring literary writer hits the writer's block and stares at the blank page in front of him. Nothing occurs to him/ her. Nothing can be done about it as s/he is engaged in a very difficult activity of imagining, thinking, articulating, debating over the correct way of expression etc. and all this within himself/ herself. Battling the inner demons so to say. It is actually like taking something out of yourself.
Research- based writing is comparatively easy. You can make steady progress every day. However, how much of it is your own contribution and how much is juggling, putting existing things together etc.?
Current trend in research is to forget about larger implications of the subject and concentrate only on methodology. The result is very narrow kind of work which may be technically rigorous but it says very little and it adds virtually nothing to what ordinary people know already. Technique over substance, quantitative over qualitative - that is the drift.
I feel out of sorts with the new breed of information saavy, technically well- equipped breed of young management researchers. Their research is empirically sound but it hardly tries to marry theory with empirical facts.

Thursday, May 3, 2012

outward foreign direct investment from India

It is substantial and growing. It consists of both equity and loans. For the latest year for which RBI data is reported, share of equity and loans is equal, almost. Otherwise for the past few years, it consisted of mostly equity. Indian businesses are buying other businesses abroad, particularly in developed countries. For investment in developing countries, they opt for joint ventures and wholly owned subsidiaries.
The reason for this difference is that mature markets in developed countries do not require promoters' equity. At the same time, to reach the scale of operations worth mentioning, an acquisition is the quickest way. Developing countries still require indigenous investment for reasons of control. Indian FMCG firms have gone for many acquisitions in the recent past. Individually they are not spectacular but together, they do add up to an important trend.

Tuesday, May 1, 2012

The India Way

Perhaps everyone else has read the above book. I did not know about it; had never heard about it; there was no review of it. It was sold out at the local bookshop where the counter person enquired if I would like to order it the e-tail way. A very nice book, he said. He had read it last year. Today, everybody is talking about Ruchir Sharma's Breakout Nations.
All the same, The India Way, is an important book because it has broken free of the old habit of comparing Indian business practices with Western practices and concentrating on the gap and distance to be covered. Instead, it proudly talks of Indian adjustments. It reflects the current mood of confidence among Indians.
Complete details of interview questionnaires, interviewees etc. in the end are very helpful. The style of writing is lucid but it is standard style to save the book for layreaders. Actually, the book strikes a good balance between academic style, content and popular writing.
Peter Cappelli, Harbir Singh, Jitendra Singh, Michael Useem: The India Way, how India's top business leaders are revolutionizing management, HBR Press, Boston, MA, 2011

Sthal, a Marathi movie

  I saw this movie yesterday by actually going to a movie theatre. It is located in a big mall and the entire ambience of the place makes yo...