There stood, on the fringes of south Kolkata, an old sprawling 2-storeyed house which was home to eight to nine families of tenants and the landlady. Over the years, the families of the tenants and the landlady had come close to each other and shared a warmth and togetherness that lasted through thick and thin.
However, with the passage of time came the inevitable expansion of Kolkata. One of the components of this expansion was the start of construction of the Metro Railway project close to this house. This activity consequently enhanced the commercial value of the area around the house, which attracted the attention of the landlady and a local real estate promoter. With huge profits expected, the landlady and the promoter planned to remove the present residents, demolish the old two storied house and build a multi-storied complex in its place, without giving any consideration to the plight of the families that resided in the house. The eviction process began with the conventional serving of notices to the tenants to vacate the premises but this proved to be ineffective in the face of resistance from the tenants. Realising that unconventional and drastic methods are required, the promoter and the landlady resorted to stopping the power and water supply and withdrawal of all other services availed by the tenants. However, the tenants continued their resistance and started depositing their rent with the Rent Control Board. The only option left now with the landlady and the promoter was to intimidate the tenants and force them to leave.
In connivance with the local Police Station, a 10 year old boy named Pailan, son of a tenant, was falsely accused of rape of a 6 year old girl, daughter of a co-tenant and friend of the boy. Pailan was arrested, put behind bars and his family along with other tenants were terrorized by the combined actions of the landlady, the promoter and his cronies. With a passive Police force providing no help to the victims, Pailan’s family was finally compelled to leave their premises and shift to a nearby slum. Meanwhile, Pailan’s case was taken up in court where, after initial delay in proceedings and oversight, the defence succeeded in making the Honourable Judge realize the truth about Pailan’s innocence, after due consideration given to the case facts and the medical report submitted. The guilty officials were reprimanded and Pailan was acquitted of the false charges with honour.
But the question remains: Will the verdict ever be able to restore that innocence and pride of childhood that Pailan has been robbed off?
Monday, January 24, 2011
Thursday, December 23, 2010
For my lady
Its all there
The void and the full
The darkness and bloom
The quiet and the shout
The pain and you
Its all there
The eyes and the tears
The hands and the lines
The lips and the smile
The love and the fear
Its all there
The faults and the defaults
The shadow and the light
The deep and the shallow
The love and the tomorrow
Its all there
The touch and the caress
The eyes and the smile
The glide and the flow
The love and my princess....you
The void and the full
The darkness and bloom
The quiet and the shout
The pain and you
Its all there
The eyes and the tears
The hands and the lines
The lips and the smile
The love and the fear
Its all there
The faults and the defaults
The shadow and the light
The deep and the shallow
The love and the tomorrow
Its all there
The touch and the caress
The eyes and the smile
The glide and the flow
The love and my princess....you
Saturday, September 05, 2009
Hero Honda Analysis
Factors which affected the industry in general :
1. Rising steel prices – pushing up the costs of production.
2. 8 percent import duty coupled with octroi, sales tax, registration, transportation, insurance etc. Pushing expenditure up
3. Credit Crunch – specially for the executive segment. Interest rates have gone up.
Factors which have affected Hero Honda in particular in addition to general factors :
1. Impact of interest rates on two wheeler buyers at the entry level. Interest rates started firming up in early 2007, and have shown no signs of letting up ever since; the slump in the entry segment has coincided with this rise. Indication that entry segment is very Interest Elastic.
2. Quantum of down payment percentages has shot up exponentially, destabilising the market.
3. Rising Commodity prices during 2008 which has been compensated for and is already in the verge of decline in the 1st quarter of 2009.
The motorcycle segment is further sub divided into 3 classes, starting from the entry/economy class (Rs 30,000 – Rs 40,000), executive class (Rs 40,000 – Rs 50,000) and the premium class (>Rs 50,000).
Performance of Hero Honda :
1. Entry Segment – Sales of Hero Honda went down by 6% (same as the whole industry). But overall its market share in the industry went up from 28.7 to 36.6 %. This shows that the decline in the quantity supplied to the market by other market firms has declined at a faster rate than Hero Honda.
2. Executive Segment – Sales went down by 1.18%. But similar to Entry segment, the share of market went up to 71.5 % from 68%.
3. Premium Segment – Outperformed all other players where its sale went up by a whopping 69% whereas in the previous year it had grown by 25%. Its share in this segment has increased by 8% and now account for the major source of revenues.
Interpretations from the given data :
1. Due to recession, expendable income of consumer has gone down. Having said that and considering the credit crunch existing in the market (Banks not ready to lend loans) it can be concluded that the spending behaviour of consumer is different across different income segments.
2. For the executive and entry segments, the demand is going down. Reason being mainly – High percentage of down payments and banks not willing to lend/lending at higher rates of interest. This particular segment is Interest elastic.
3. For Premium segments the demand has not been affected since these are consumers whose expendable income has not been much affected by the recession. Evidence being the strong position of Hero Honda still in this segment. These consumers are least likely to postpone purchase decisions on account of increasing EMI. This segment is relatively Interest Inelastic.
4. According to the National Council of Applied Economic Research (NCAER) in 2001-02, there were 61 million Indians belonging to families that earned more than Rs. 2 lacs a year; by 2005-06, that number had crossed 100 million. In 2009-10, this number is projected to increase to 173 million. It is safe to assume that the bulk of the buyers from these segments will opt for either entry or deluxe segment motorcycle offerings. On the other hand, it has now been established beyond doubt that a large chunk of entry segment buyers will continue to react when there is a spike in interest rates. In other words, two wheeler makers have few options but to ride out the difficult times.
1. Rising steel prices – pushing up the costs of production.
2. 8 percent import duty coupled with octroi, sales tax, registration, transportation, insurance etc. Pushing expenditure up
3. Credit Crunch – specially for the executive segment. Interest rates have gone up.
Factors which have affected Hero Honda in particular in addition to general factors :
1. Impact of interest rates on two wheeler buyers at the entry level. Interest rates started firming up in early 2007, and have shown no signs of letting up ever since; the slump in the entry segment has coincided with this rise. Indication that entry segment is very Interest Elastic.
2. Quantum of down payment percentages has shot up exponentially, destabilising the market.
3. Rising Commodity prices during 2008 which has been compensated for and is already in the verge of decline in the 1st quarter of 2009.
The motorcycle segment is further sub divided into 3 classes, starting from the entry/economy class (Rs 30,000 – Rs 40,000), executive class (Rs 40,000 – Rs 50,000) and the premium class (>Rs 50,000).
Performance of Hero Honda :
1. Entry Segment – Sales of Hero Honda went down by 6% (same as the whole industry). But overall its market share in the industry went up from 28.7 to 36.6 %. This shows that the decline in the quantity supplied to the market by other market firms has declined at a faster rate than Hero Honda.
2. Executive Segment – Sales went down by 1.18%. But similar to Entry segment, the share of market went up to 71.5 % from 68%.
3. Premium Segment – Outperformed all other players where its sale went up by a whopping 69% whereas in the previous year it had grown by 25%. Its share in this segment has increased by 8% and now account for the major source of revenues.
Interpretations from the given data :
1. Due to recession, expendable income of consumer has gone down. Having said that and considering the credit crunch existing in the market (Banks not ready to lend loans) it can be concluded that the spending behaviour of consumer is different across different income segments.
2. For the executive and entry segments, the demand is going down. Reason being mainly – High percentage of down payments and banks not willing to lend/lending at higher rates of interest. This particular segment is Interest elastic.
3. For Premium segments the demand has not been affected since these are consumers whose expendable income has not been much affected by the recession. Evidence being the strong position of Hero Honda still in this segment. These consumers are least likely to postpone purchase decisions on account of increasing EMI. This segment is relatively Interest Inelastic.
4. According to the National Council of Applied Economic Research (NCAER) in 2001-02, there were 61 million Indians belonging to families that earned more than Rs. 2 lacs a year; by 2005-06, that number had crossed 100 million. In 2009-10, this number is projected to increase to 173 million. It is safe to assume that the bulk of the buyers from these segments will opt for either entry or deluxe segment motorcycle offerings. On the other hand, it has now been established beyond doubt that a large chunk of entry segment buyers will continue to react when there is a spike in interest rates. In other words, two wheeler makers have few options but to ride out the difficult times.
Wednesday, July 22, 2009
What is the Network Economy
Mr. Jones is a successful entrepreneur. He believes in the power of scarcity. He believes that whatever he produces, if it is unique and has a high utility, it would earn him a handsome revenue as the demand would hardly ever go down. He marvels at the wonders of the industrial revolution and feels his break-even point, although distant, would come soon because he has priced his products at a comfortably high price. Since he is the only producer in the market, he believes he can enjoy this singular privilege of high pricing. He has already started succession planning, keeping a keen eye on his nephew working under him as the regional manager in Wales. What gives him immense satisfaction is that his product is by far unhindered by the cut-throat competition faced by other products in other segments. Hence, he concludes; reap the rewards while the sunshine of open roads still smiles on him.
While the above scenario would ring true somewhere in the 19th century, it miserably fails in today’s context and age. Today’s Network economy has indeed turned these well sculpted notions on their heads. What is this Network Economy, the attentive reader might ask? The answer is quite simple and would be obvious to the reader, once he or she finishes reading the rest of this article. It all started in the year 1969 when the advent of knowledge workers marked the dawn of an era where information assimilation and dissemination would play a major role in the economy. With the evolution of computers and the internet, the flow of information became easier and with that the power of uniqueness was lost. Communication has become the norm in today’s world. The laws that govern today’s world economy, without us even realising it, are actually very simple and forthright.
To begin with, do not under-estimate the dumb power of the silicon chip. Computers by themselves are dumb objects. If you don’t connect them to the network, any information that you might have with you is useless. And once you do connect them to a network you transform the data with you into information that adds to the network’s database. Moving on, stop thinking like Mr. Jones. Scarcity is not the order of the day. To cite a pertinent example, a single fax machine is worth nothing. Neither are 5 or 6 fax machines. 200 or 300 fax machines spread across continents, each communicating with the other and forming a large number of combinations of connections is of some use. The more the network grows, the more does the utility of the product plugged into it. Hence, with a decrease in scarcity, utility increases; this directly contradicts the law of scarcity of the industrial revolution. Moreover, success is nonlinear in today’s world. A case in point is the success of the internet, a dormant entity till the 1990s. Hence do not predict the success of any invention or innovation in the network economy to be a linear curve. It might break even, even before the proverbial ‘tipping point’ has been reached. Besides, if I would have been a well wisher of Mr. Jones, I would have asked his great grandsons to make virtuous circles. Linked In, a major networking site, would have been my advice to his kith and kin. This will guarantee his business visibility in the corporate world and a unique podium to communicate ideas with likeminded souls, which ultimately will benefit the business.
My final advice to Mr. Jones, of this generation, would be to let go at the top. Churn and not change is what defines today’s economy. ‘Find, nurture and destroy’ is what he should do. He should not be afraid of exploring the unknown and leave the known. The ability to relinquish something at the peak of its success and setting out on a venture to discover something totally unique is what would define the way forward for his business.
In fact, as management students of the 21st century, I believe this holds true for us all. Our minds will at first be bound by old rules of economic growth and productivity. Listening to the network can release them. In the Network Economy, as Peter Drucker so coherently puts it, don't solve problems, seek opportunities.
While the above scenario would ring true somewhere in the 19th century, it miserably fails in today’s context and age. Today’s Network economy has indeed turned these well sculpted notions on their heads. What is this Network Economy, the attentive reader might ask? The answer is quite simple and would be obvious to the reader, once he or she finishes reading the rest of this article. It all started in the year 1969 when the advent of knowledge workers marked the dawn of an era where information assimilation and dissemination would play a major role in the economy. With the evolution of computers and the internet, the flow of information became easier and with that the power of uniqueness was lost. Communication has become the norm in today’s world. The laws that govern today’s world economy, without us even realising it, are actually very simple and forthright.
To begin with, do not under-estimate the dumb power of the silicon chip. Computers by themselves are dumb objects. If you don’t connect them to the network, any information that you might have with you is useless. And once you do connect them to a network you transform the data with you into information that adds to the network’s database. Moving on, stop thinking like Mr. Jones. Scarcity is not the order of the day. To cite a pertinent example, a single fax machine is worth nothing. Neither are 5 or 6 fax machines. 200 or 300 fax machines spread across continents, each communicating with the other and forming a large number of combinations of connections is of some use. The more the network grows, the more does the utility of the product plugged into it. Hence, with a decrease in scarcity, utility increases; this directly contradicts the law of scarcity of the industrial revolution. Moreover, success is nonlinear in today’s world. A case in point is the success of the internet, a dormant entity till the 1990s. Hence do not predict the success of any invention or innovation in the network economy to be a linear curve. It might break even, even before the proverbial ‘tipping point’ has been reached. Besides, if I would have been a well wisher of Mr. Jones, I would have asked his great grandsons to make virtuous circles. Linked In, a major networking site, would have been my advice to his kith and kin. This will guarantee his business visibility in the corporate world and a unique podium to communicate ideas with likeminded souls, which ultimately will benefit the business.
My final advice to Mr. Jones, of this generation, would be to let go at the top. Churn and not change is what defines today’s economy. ‘Find, nurture and destroy’ is what he should do. He should not be afraid of exploring the unknown and leave the known. The ability to relinquish something at the peak of its success and setting out on a venture to discover something totally unique is what would define the way forward for his business.
In fact, as management students of the 21st century, I believe this holds true for us all. Our minds will at first be bound by old rules of economic growth and productivity. Listening to the network can release them. In the Network Economy, as Peter Drucker so coherently puts it, don't solve problems, seek opportunities.
Sunday, July 12, 2009
What does it take to....
So i blog again...
this time albeit in an irregular manner. But i do return to this part of the cyberspace from time to time to give vent to pent up thoughts and feelings.
One of them is a very pertinent one for me and I guess would be for some 1.2 lakh people of this country, pursuing an MBA degree at various institutes across the nation.
What does it take to make an MBA ? Although the answer to this question would be more detailed when I pass out of IMT, but i guess now is the time to start answering it, bit by bit, part by part.
According to me, MBA is all about confidence. Its only when u have confidence on your self and your abilities that u can multitask, multioperate, coordinate, accomplish etc etc.
What is it that is wanted from an MBA grad ? Is it theoretical knowledge ? (NO) Is it comparitive advantage ?(No) Is it expertise in one particular field (Not exactly)?
What I believe is wanted is the confidence to be at the helm of affairs, even if the answer to all the above 3 questions is No. It is this confidence that rubs off on the team ur leading which eventually shows in the performance. I believe, management cannot be taught. Its a very basic activity, done right from the time man was a beastly being, electing a leader to lead the pack. The leader had to decide how much meat woud be consumed by the pack, when & where to hunt, where to set up camp and how to defend the pack from invaders or wild animals.
Confidence, as a virtue, existed since man came into being and hence it is the only trait that helps one to lead, defend, argue, win, admit defeat and so on...
What will be interesting to see is my progress, from a soft spoken, mild mannered, joke cracking guy to the supremely confident, cool calm manager...after 2 years.
Keep watching this space...would update it as time flies by..
this time albeit in an irregular manner. But i do return to this part of the cyberspace from time to time to give vent to pent up thoughts and feelings.
One of them is a very pertinent one for me and I guess would be for some 1.2 lakh people of this country, pursuing an MBA degree at various institutes across the nation.
What does it take to make an MBA ? Although the answer to this question would be more detailed when I pass out of IMT, but i guess now is the time to start answering it, bit by bit, part by part.
According to me, MBA is all about confidence. Its only when u have confidence on your self and your abilities that u can multitask, multioperate, coordinate, accomplish etc etc.
What is it that is wanted from an MBA grad ? Is it theoretical knowledge ? (NO) Is it comparitive advantage ?(No) Is it expertise in one particular field (Not exactly)?
What I believe is wanted is the confidence to be at the helm of affairs, even if the answer to all the above 3 questions is No. It is this confidence that rubs off on the team ur leading which eventually shows in the performance. I believe, management cannot be taught. Its a very basic activity, done right from the time man was a beastly being, electing a leader to lead the pack. The leader had to decide how much meat woud be consumed by the pack, when & where to hunt, where to set up camp and how to defend the pack from invaders or wild animals.
Confidence, as a virtue, existed since man came into being and hence it is the only trait that helps one to lead, defend, argue, win, admit defeat and so on...
What will be interesting to see is my progress, from a soft spoken, mild mannered, joke cracking guy to the supremely confident, cool calm manager...after 2 years.
Keep watching this space...would update it as time flies by..
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