CHLOROPHYLL

- Dreams

 Divide and
Rule!!
 UTTERLY
‘PUN’ACIOUS: The story
of naughty girl turning 43
 Global supply chain & pre-
sent scenario
 Should Air India go pri-
vate?
 Caught In A Bubble

A Monthly Newsletter from the Students of

Department of Management Studies,
IIT Roorkee
Dear Readers,
Temperature is soaring all over the country as first heat wave makes its presence felt. The IPL heats
up things at the sport front while various scams boil the political environment. In midst of all this
hope you find this edition of Domination cool and refreshing!
Change is the only thing constant in the universe. The way of marketing too has changed, from mass
marketing to customize one. “Divide and Rule” is a contribution from an Alumnus of IIT Roorkee, in
which the writer throws light on the way products and marketing, have changed over the years.
“Caught in the bubble” examines the various economic bubbles since 17th Century till date. What
causes these bubbles and their burst, find the answers in this article.
Amul Advertisements are long known for entertaining people with their puns. It hit the news head-
lines once again with the recent row between Congress and Kerela Chief Minister who compared
Rahul Gandhi with the Amul Baby.While the Congress went hammer and tongs on the remark,
Shashi Tharoor went the Amul baby’s way. “Amul Baby is healthy and focused on future.Whats the
harm in being one”,he tweeted. Utterly Punacious is the story of the Amul baby girl turning 43.
Privatization has always been a double edged sword. Both protagonists and dissenters have their
own set of arguments. “Should Air India go private “discusses the same with respect to Air India.
With globalization becoming key to success, the importance of global supply chain is increasing day
by day. The essence of same is captured in “Global Supply Chain and its present scenario”.
Can the freedom of the rain drops make you feel jealous?” Dreams”, a poem depicts beautifully the
pang of jealousy the poet feels when it rains.
In the elite talks section we bring forth you “Tourism Marketing”, an article covering a wonderful
workshop taken by Professor Devashish Das Gupta ,IIM Lucknow and Mr Sameer Sharma who is Re-
gional Head(UP) of Oman Airways.
Good Byes are always hard to say. The closer you are the harder it becomes. It’s such a bittersweet
experience which the batch of 2011 is going through, as the time to step out of these golden corri-
dors into the corporate world is coming closer. Eager as they are to start their foray into the business
world and make their own place under the sun, they sure will have a hard time preparing to say their
goodbyes to life at DoMS. In the meanwhile, the first year similarly prepares to bid their farewell to
the seniors who were their guide and mentors for the past year. It feels like yesterday when they
were initiated into this institution and now the time has come to bid adieu, transfer responsibilities
and start preparing for a new batch. We wish the batch of 2011 best of luck for their budding careers
and hopes, that they carry forward the legacy of DoMS to even greater heights.
Until next edition, its Team Domination wishing you good bye and happy reading.

-Regards
Team Domination
- Dishant Hans - Jagmohan Chopra

DoMS, IIT Roorkee Freelance Writer

Dishant.hans@gmail.com jagmchopra@yahoo.co.in

- Nikhil Reddy

DoMS, IIT Roorkee

nikhil.lingala@gmail.com

- Chetna Yadav
- Paresh Kulkarni
DoMS, IIT Roorkee
DoMS, IIT Roorkee
Chetna.yadav07@gmail.com
pareshkulkarni1@gmail.com
 CRICKET
DIVIDE AND RULE AND BIZZ OF BRANDS
“Can I have an ‘ordinary’ room facing the sea
please?” I asked the receptionist while checking
into a hotel in Mumbai on an assignment. He
clicked on his computer and said “Yes Sir, we do
Perspective
have a ‘superior’ room facing the sea.” “I asked for
an ordinary room, young man, not superior. I am
an ordinary professor on an ordinary budget, what
will I do with a superior room?” “Our superior
room, Sir, is actually an ordinary room. We have
named it superior because it is better than what
we used to offer some time back. Otherwise, it is
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the lowest category room in our hotel. Should I
book one for you?”
Were it not for the affable front office manager,
the discussion would have gone on for hours. He
was kind enough to explain that days of ordinary
rooms in hotels were over. These were days of su-
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perior rooms, deluxe rooms, imperial rooms, club
rooms, executive suites, luxury suites, grand luxury
suites and grand presidential suites, the last one
tailored to meet the requirements of heads of
state and celebrities. Each cate-
gory of rooms was targeted at a
Elite Talks
niche market and offered some-
thing more than the category
below, said the manager. Why
rooms, even hotels are today
categorized as tourist hotels,
business hotels, convention ho-
tels, heritage hotels, boutique hotels and resort
hotels. Thanks to MNC’s; nothing is targeted at
Page 4
people wanting simple, ordinary things. Days of
ordinary AC and non-AC rooms in hotels are over.
Dividing the market into smaller segments is not lim-
ited to hotels. Markets for clothing, footwear, food,
restaurants, and cinemas have also followed the
same path. Gone are days of the white Fred Perry T-
shirt with that famous green crest which you could
wear to any game in school or college, be it football,
hockey, cricket or tennis. We could even meet our girl
friend in the evening outside Sarojini Bhawan during
our Roorkee days wearing a Fred Perry and nine out
of ten, she’d be impressed. The same was true of
shoes. Everybody wore the same white canvas shoes
without complaining of pain in their soles or ankles,
like present day athletes. Even Ramanathan Krishnan
and Jaideep Mukherjea wore the same during their
heyday at Wimbledon. Not anymore. Nowadays you
have separate shoes for walking, jogging, running and
jumping, not to talk of separate shoes for every sport.
Fred Perry T-shirts and canvas shoes were buried long
time back.
Clothes too have moved a long
way up from the white shirt and
black pant we wore to college,
office or party. These are days of
high street, luxury and boutique
clothing, all catering to finely
divided market segments. The
days of tailor made garments are gone. Were it not
for Sam, our 26 year old son, I would have never
 CRICKET
DIVIDE AND RULE AND BIZZ OF BRANDS
known there were categories of clothing above high
street also. If there were, then why high street
clothing should be called high street? Why the next
category isn’t called high street? Doesn’t height
Perspective
express superiority? There’s confusion everywhere,
even in your office building. Thanks to the invention
of the mezzanine floor, first floor is no longer situ-
ated fifteen feet above the ground, the way it used
to be. Now you have to climb the lower ground
floor, upper ground floor and the mezzanine floor
before you reach the first. Times have changed. Bar-
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ber shops have become salons, gymnasiums have
become spas and tailors have become fashion de-
signers. I am told people no longer buy watches to
see time, or buy fountain pens to write, they do so
Qutopia
Elite Talks
Page 5
to express their social status. Same is true of cars.
So much has happened while I’ve been sleeping, I
thought to myself.
Has dividing the market into smaller niches really
helped? If the empty stores in the malls and the
speed with which well-known brands are withdraw-
ing from the Indian market are an indication, it does-
n’t seem so. Then, would it be wise for companies to
switch back to mass marketing by making products
that cater to the needs of large chunks of people?
Will the days of Fred Perry T-shirts and canvas shoes
be back? Will the neighborhood tailor, barber and
cobbler be back in contention? Let’s wait and see.
- Jagmohan Chopra
Freelance Writer
jagmchopra@yahoo.co.in
 CRICKET
UTTERLY ‘PUN’ACIOUS: THE STORY AND GIRL
OF NAUGHTY BIZZTURNING
OF BRANDS
43

Page 6

Though table butter is not an ethnic Indian dairy bears. The butter, which had been launched in 1945,
product, Amul single-handedly managed to build the had a staid, boring image, primarily because the ear-
category, and that is still growing, all be- lier advertising agency which was in
cause a thumb sized girl climbed on the charge of the account preferred to stick
Perspective

hoardings humming “utterly butterly deli- to routine, corporate ads. The account
cious AMUL”, some forty years back. was then clinched by Sylvester da Cunha
who decided it was the time for a change
Round eyed, chubby cheeked, winking at you, from and then was born a star- a ‘pun’ loving star – who
strategically placed hoardings at many traffic light with her bold tongue-in-cheek topical made way di-
she is the Amul moppet. Commenting jovially on the rectly into the hearts of million.
latest news or current events the pun in her words
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has been popular. Amul uses outdoor advertising Otherwise an epitome of India’s largest food brand, it
strategy ( on billboards), with a humorous take on is interesting to note that the Amul girl has always
current events updating it frequently. The ads cover been flying high on the hoardings but never seen on
a wide spectrum of issues, from the Indian-loved- television. Reason being simple. Creativity cannot be
sport cricket to the Bombay Floods, Indo-Pak Wars, easily translated from one media to another. The ad-
Movie Stars to terrorist attacks. Be it the recent one vertisements are created in different languages and
on India’s poor performance against South Africa or pertain to the geographical region they are put in.
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about the year full of scams or the IPL auctions their Every kind of media has different attributes. The need
subtle humor brings smile for everyone. I am no ad- is to focus on that particular media, which brings
vertising guru but being a mango person I can claim maximum recognition & effectiveness to the brand.
that these dynamic ads can always tease laughter
out of general public. The history can be traced back Amul’s advertising strategy has followed the concept

to1967 when the first hoarding of Amul came up in of ‘Umbrella Branding.’ Amul is the common brand
Elite Talks

Bombay (now Mumbai) and became an instant hit, name for most of its products across categories.
especially with housewives. According to the man Therefore the Amul girl has also been used to adver-
behind the Amul girl, Sylvester da Cunha (founder of tise Amul ghee and milk.
daCunha Communications), “We needed a girl who
would make her way into a housewife’s heart.”Forty But now diminishing billboard sites seem to be posing
years hence, the bubbly Amul girl has found her way a challenge for the brand built through the Outdoor
directly into the Guinness Book of World Records for Hoardings. Therefore to stay visible the company is re
the longest running campaign ever with Smokey jiggling its media plans. They have started shifting to
 CRICKET
UTTERLY ‘PUN’ACIOUS: THE STORY AND GIRL
OF NAUGHTY BIZZTURNING
OF BRANDS
43

Page 7

print media and are also experimenting with digital Gujarat Cooperative Milk Marketing Federation
media. Few critics claim that Amul is losing on visibil- (GCMMF) has grown to capture 86 per cent share of
ity and is now all about point of purchase advertis- the market.It is an excellent example of a company
ing. Morover it is said that these ads aim at the ur- making the optimal utilisation of media to promote
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ban English speaking population only. Though there its products. With advertising and marketing expen-
may be some truth in it but the fact is that riding on ditures amounting to less than one percent of its
eye-catching hoardings the table butter brand from total revenues, it is indeed, The Taste of India.

- Chetna Yadav
Chlorophyll

DoMS, IIT Roorkee

Chetna.yadav07@gmail.com
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Elite Talks
 CRICKET
GLOBAL SUPPLY CHAIN AND
& PRESENT BIZZ OF BRANDS
SCENARIO

Page 8

Globalization has impacted our every walk of life, our busi- impact on the supply chain for any industry. A natural ca-
ness & industries are now no more geographically limited lamity like the recent devastating earthquake in Japan has
but resource capacity is. Many industries like the high tech- put more pressure on the supply side of the value chain for
nology industry are experiencing shorter life cycles for electronic and automobile sector across the globe. Political
product. Hence the functions like demand forecasting, en- unrest in Mideast countries like Libya, Egypt, Syria, has sky-
Perspective

suring & regulating the supply of resources, & calculating rocketed the prices of crude oil above $ 120 per barrel.
the risks in supply chain management become very critical. Forcing companies to invest more in transportation cost
Global demands, availability of resources & economic ad- reduction initiatives at the opportunity cost of developing/
vantage of a particular location compelled industries to integrating weak components of existing supply chain. The
have supply chain with globe as the limit. rise in the piracy in high seas have increased the risk of loss
of human life and materials, calling for more piracy risk sur-
Global supply chain started with developed countries capi- charge and insurance premium costs paid by the companies
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talizing on the benefits of low labor & material costs in de- to mitigate or insure against the piracy risk. Competitive
veloping nations. Later, developing nations showed remark- green initiatives & upcoming stringent environmental
able progress, economic growth & started producing and norms are driving, not just Fortune 500, but all companies
demanding more developed products. This created demand to cut their profit margins and invest that amount in green
& supply points to be present all over the globe for many technologies for a sustainable globe.
industries, creating more opportunities for growth. At the
same time, it created more challenges to manage such In spite of all, the present dynamic scenario can be viewed
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global supply chain. as, instead of a challenging situation, a situation providing

ample opportunities for industries to come forward with
During late 1990’s, JIT, supply integration and innovation innovative solutions to handle these new upcoming com-
helped industries manage challenges like cost reduction plex situations. Industry is developing & adopting various
and supplier reliability/ dependability issues. But now with new transportation & logistics management systems, de-
more products being introduced in any product category in mand management & forecasting tools. All the components
Elite Talks

a time span, shorter product life cycles possess new chal- of the value chain must be fully integrated & utilized to
lenges like meeting customers ever changing demands; cus- maintain sustainable growth rates.
tomer loyalty; maintaining /accelerating growth in terms of
profits & market share; operate with limited resources. For
such dynamic requirements, functions like forecasting, sup-
plier relations management, customer relationship man- - Paresh Kulkarni
agement, research & development need to be more com-
petitive & integrated. DoMS, IIT Roorkee
pareshkulkarni1@gmail.com
Various external environmental factors also have significant
 CRICKET
Should Air India AND BIZZ OF BRANDS
go private?
Page 9

Given its mammoth debts, operational inefficiencies, Was that the reason why, the erstwhile Tata Airlines and
often questioned employee accountability levels, poor other domestic carriers around that time were all force
service and hospitability, intermittent strikes by em- nationalized to form state-owned carriers Air India and
ployee unions, added apprehension due to frequent ac- Indian Airlines? The reason might be too broad for a nor-
Perspective

cidents and plummeting customer loyalty; should our mal citizen – like me – to understand the original motive
flag national carrier, Air India, be privatized? This, admit- of the then national government. However, an obvious
tedly, has long been the only question in the minds of intent of the government that stands out to me is that
many people. “every country should have its own state-owned flag
carrier”. I concur. That doesn’t mean the firm can just be
After the merger of Air India with Indian Airlines, there another government PSU, where employee jobs are
was a faint hope that the air carrier would be revived to guaranteed regardless of their efficiency levels, or it can
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life – because the huge network and fleet size of both make losses – that too beyond repair – in its operations,
the carriers combine together making its presence both or it can long live with its rather infamous customer ser-
in domestic and global arenas. Sadly though, the story vice; because the its business periphery doesn’t just con-
has proven otherwise. Air India has accumulated fine to India but fans out into all corners of the world.
Rs.13,300 crore losses since its merger with Indian Air- The point I’m trying to drive home is that Air India is not
lines in 2007. Before the merger, the losses reported by just a national air carrier; it carries our nation’s pride –
the two state-owned carriers were Rs.447.93 crore and which someone in near future might give a serious frown
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Rs.240.93 crore, respectively – as told in the Parliament at, considering the current state and future prospects of
by the aviation minister Mr.Vayalar Ravi in March 2011. our public airline – too. I wonder how many of us really
The firm has also taken Rs.40,000 crore long-term loans. prefer flying Air India, right now, given an option!

Until now, whatever have been the deeds of the airline Now with all this hullaballoo happening around, is Air
to see itself in soup of losses, huge costs and debts, the India really not attempting to do some repairing work?
Elite Talks

government of India has been backing it by infusing huge Surely, it is. For instance, as reported by Air India Ltd, it
funds into the airline – only to repeat the history. The trimmed down its operating loss by Rs.1,179 crore for
situation never seemed positive let alone promising. the period April 2010 to February 2011. According to
Knowing this jolly well, why is the government, by all them, Air India received 190 proposals from its employ-
means, trying to keep the airline for itself, after all? Ac- ees to cut costs and increase revenue, including printing
cording to me, the government has to rely on some of its ads on boarding passes, fuel-saving measures and selling
own firms to make regular earnings, apart from other holiday packages – meaning it is even involving its em-
sources like taxes (unfortunately though, government ployees to fix the situation.
has been feeding the airline to keep it alive!). Is that all?
 CRICKET
Should Air India AND BIZZ OF BRANDS
go private?
Page 10

The “lean” thinking has gotten into every corner of op- Privatization can be an ideology (for those who oppose
erations, so much so that even the thickness of the government and seek to reduce its size, role, and costs,
boarding passes has been reduced! Also, the seat occu- or for those who wish to encourage diversity, decentrali-
pancy factor and average yield has gone up by 1.5% and zation, and choice) or a tool of government (for those
Perspective

30 paisa. who see the private sector as more efficient, more flexi-
ble, and more innovative than the public sector)
Recent news is that, Air India would be undergoing finan- (Kamerman and Kahn, 1989; Gormley, 1991). Although
cial restructuring, in that a considerable chunk of short privatization in the most general sense involves a reduc-
term debts would be converted into long term debts, the tion in the role of government, the process carries differ-
result of which is that the national carrier’s annual debt ent implications depending on which function(s) of gov-
repayment burden will come down by around 42 per ernment are assigned to the private sector: financing;
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cent to Rs 700 crore from Rs 1,200 crore. Besides, there production or delivery of services; and monitoring or
is also news that the some part of the debt accumulated regulation (Kamerman and Kahn, 1989; LeGrand and
by the airline would be converted to equity. Even so, I Robinson, 1984).
think it is not the balance sheet but the management
culture where the root of the problem lies with. Even if Privatization may take many forms (Kamerman and
the restructuring exercise ends up taking out a very large Kahn, 1989; Gormley, 1994: Kettl, 1995), including:
portion of debt from the airline, there is no guarantee
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that Air India will start making money. All the efforts cur- Elimination of a public function and its reassignment to
rently are concentrated on clearing off its debts and be- the private sector for financial support as well as delivery
coming profitable seems only remotely possible at least (police, fire department, schools); opponents character-
in the near future. Now the discussion again boils down ize this as "load-shedding" (Bendick, 1989);
to – privatizing the firm!
 Deregulation, that is, the elimination of government
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Rest of the things aside; will privatizing any public firm responsibility for setting standards and rules con-

do any good? It definitely has its own pros and cons – cerning a good or service (Gormley, 1996 and 1997);

nonetheless considering the heat of the situation, the

more resounding choice of most of the people would be  asset sales, that is, the selling of a public asset (a city

“privatize the airline”. So, in an attempt to understand building, a sports stadium) to a private firm;

what “privatization” really means, I found these interest-

 Vouchers, that is, government-provided or -financed
ing and relevant lines on a website.
cards or slips of paper that permit private individuals
to purchase a good or service from a private
 CRICKET
Should Air India AND BIZZ OF BRANDS
go private?
Page 11

provider (food stamps) or a circumscribed list of pro- As I see it, the government doesn’t have to control the
viders (Medicaid; a child care voucher); operations of the airline or eliminate itself completely
from the firm either. The airline can still be a public
 Franchising, that is, the establishment of a model by owned enterprise with an effectiveness and efficiency of
the public sector that is funded by a government a private firm. How? Am I being too optimistic by expect-
Perspective

agency, but implemented by approved private pro- ing that our government system in India would be func-
viders; and tioning ideally? No. If one goes through above forms of
privatization, he/she can find the answers – deregula-
 Contracting, that is, government financing of ser- tion, franchising and contracting. A small SWOT analysis
vices, choice of service provider, and specification of of the airline would let us understand its actual standing.
various aspects of the services, laid out in a contract
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with a private-sector organization that produces or

delivers the services.

Strengths: Weaknesses:
Huge network Operational inefficiencies
Largest fleet size in the country Poor service
Government backing Employee unions
Low accountability
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Huge financial crunch

Opportunities: Threats:
Capitalizing on its strengths to gain Huge number of private players eating
market share away market share.
Can represent “India” abroad in terms Shrinking customer loyalty
of tradition and gain loyalty of for- Non cooperation from employees in
eign nationals and NRIs. terms of strikes
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Going back to basics, any individual or firm can always
live on its strengths by simultaneously working on its
weaknesses to overcome threats and grab opportunities.
Same goes for Air India too. My submission on the topic
“privatization of Air India” would be this:
 For managing the operations, private individuals
have to be contracted with as less government’s say
in it as possible. There can be a government repre-
sented panel or committee, however, to review the
progress of contracted work. The contractors – who
should be veterans enough to know the industry in
and out and handle challenges pertaining to it – ob-
viously have to be employed for top management
roles, thus bringing and percolating professionalism
in the organizational culture, improving
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Should Air India AND BIZZ OF BRANDS
go private?
Page 12

accountability and imbibing competitive attitude among
the employees. None should be in a mindset that Air In-
dia is a government PSU.
 Implement deregulation. For example, there can’t
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– which can either perform these tasks with their
own employees or with the airline’s employees
(after thoroughly trained to perform appropriately in
a corporate environment).

be any room for laid back attitude with any em-

ployee at any level – after all, it is our money, the tax One can note that, nowhere did I mention that the firm
payers’ money that has been pumped into the airline has to be downsized, or the government has to sell its
all these days. If employees can go on strike with stake in the firm. I only stated that, the operations have
public money at stake, why give leeway to such un- to be managed by private individuals (call them contrac-
acceptable behaviors? I’m not saying that the em- tors) and firms (call them franchises), with deregulation
ployees have to be sacked on an account of their in place; because, it is rather the problem of orientation
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wrongdoings, but that they have to be reminded of of the employees and management than their ineffi-
their responsibilities to exercise their duties properly ciency or ineffectiveness – for every resource available
which is why they are paid for. Also the quality of with them is in surplus except for the output.
service provided to valuable customers, can’t be set
based on the government standards. I only hope strongly that Air India someday would be-

 The stake of the airline need not be sold to private come synonymous to quality service, professionalism,
firm(s). It can still be public owned enterprise. The hospitality, care, satisfaction, respect, safety and would
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government can come up with a business model that be among the airlines that offer the best experience that
includes franchising. For example, maintenance of customers would love to go with. I believe that day
aircraft, ticketing services, food services, hospitality, would surely arrive, time will only tell us when!
customer care etc. can be taken care of by franchises
Elite Talks

- L Nikhil Reddy

DoMS, IIT Roorkee

Nikhil.lingala@gmail.com
 Caught InCRICKET
A BubbleAND BIZZ OF BRANDS
Page 13

Economic bubble, Stock market bubble, Property bubble, those on the open market, while others found them-
asset price bubble, Dot-Com bubble, Tulip bulb bubble, selves in possession of bulbs now worth a fraction of the
bubbles and more bubbles…Phew..But what causes price they had paid. Thousands of Dutch, including busi-
these bubbles and why do these bubbles burst??? Let’s nessmen and dignitaries, were financially ruined.
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look at some economic bubbles of the past under the

magnifying glass… Miss-is-sip-pi

Tulipomania, a term given to a large economic bubble-- In August 1719, Law devised a scheme in which the Mis-
sounds more like a mental disease that catches economy sissippi Company subsumed the entire French national
in expansion mode with ‘EXCESS MONEY’ as virus-- came debt, and launched a plan whereby portions of the debt
from the period in the history of the Netherlands in the would be exchanged for shares in the company. Based
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17th century during which demand for tulip bulbs upon the expected riches from the trading monopoly,
reached such a peak that enormous prices were charged Law promised 120 percent profit for shareholders, and
for a single bulb. Tulip cultivation in the Netherlands is there were at least 300,000 applicants for the 50,000
thought to have started in 1593. The flower rapidly be- shares offered. As the demand for shares continued to
came a coveted luxury item and a status symbol. In rise, the Banque Royale -- which was owned by the
1623, a single bulb of a famous tulip breed could cost as French government but effectively controlled by Law --
much as a thousand Dutch florins (the average yearly continued to print paper banknotes, causing inflation to
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income at the time was 150 florins). Tulips were also ex- soar.
changed for land, valuable livestock, and houses. By
1636, tulips were traded on the stock exchanges of nu- The bubble burst---COUNT 2---in May 1720 when a run
merous Dutch towns and cities. . This encouraged trad- on the Banque Royale forced the government to ac-
ing in tulips by all members of society, with many people knowledge that the amount of metallic currency in the
selling or trading their other possessions in order to country was not quite equal to half the total amount of
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speculate in the tulip market. paper currency in circulation.

In February 1637 tulip traders could no longer get in- South Sea
flated prices for their bulbs, and they began to sell. The
The company was formed in 1711 by Robert Harley, and
bubble burst.---COUNT 1--- People began to suspect that
was granted exclusive trading rights in Spanish South
the demand for tulips could not last, and as this spread,
America.
a panic developed. Some were left holding contracts to
purchase tulips at prices now ten times greater than
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A BubbleAND BIZZ OF BRANDS
Page 14

In 1719 the company proposed a scheme by which The line in Lewis Carroll's The Hunting of the Snark,
it would take on the entire remaining national debt ‘They threatened its life with a railway share’, is a
of Britain, offering its own stock at 5% in exchange reference to the Railway mania and those who lost
for government bonds in a deal lasting until 1727, money investing in it.
Perspective

the Bank of England proposed a similar deal. The

company hoped to make a considerable profit. The The Bull Market of the 1929
company then set to talking up its stock with "the
I don’t think this needs any introduction...we all
most extravagant rumors" of the value of its poten-
have heard… ‘the great depression’… ‘Crash of
tial trade, and there was an enormous wave of
1929’…. ‘Black Thursday’…. ‘Black Tuesday’…
"speculating frenzy". The share price had been ris-
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another bubble....burst---COUNT 4---

ing from the time the scheme was proposed - from
128 in January 1720, to 890 in early June. The price
The Japanese "Bubble Economy"
finally reached 1,000 in early August and the level of
selling was such that the price started to fall, trig-
From the 1960s to the 1980s, Japan had one of the
gering bankruptcies amongst those who had bought highest economic growth rates in the world. In the
on credit and increased selling. The bubble burst---
1970s, the government began to deregulate finan-
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COUNT 3---. By the end of September the stock had cial markets, which allowed banks to actively seek
fallen to 150.
out new customers. During the mid-1980s, Japan
took a loose approach to monetary policy, which
Railway mania was the term given to the specula-
caused the money supply to increase and interest
tive frenzy in Britain in the 1840s. It followed a com-
rates to fall. The combination of these two actions
mon pattern: as the price of railway shares in-
was important to the creation of a speculative bub-
Elite Talks

creased, more and more money was poured in by

ble: with low interest rates and easier access to
speculators, until the inevitable collapse.
credit, new actors entered the financial markets.

Unlike some stock market bubbles, however, there

As the Nikkei kept zooming higher and higher, cor-
was actually a net tangible result from all the invest-
porations were able to report their speculative prof-
ment: a vast expansion of the system, though per-
its as higher earnings. At the end of the decade,
haps at an inflated cost.
speculation dominated the activities of some busi-
nesses: it is estimated that perhaps 50% percent of
 Caught InCRICKET
A BubbleAND BIZZ OF BRANDS
Page 15

total reported profits from Japan's largest corporations were China is in the midst of "the greatest bubble in history," said
derived from zaitech or ‘financial engineering’. James Rickards, former general counsel of hedge fund Long-
Term Capital Management. The Chinese central bank's bal-
By 1989, Japanese government officials were growing un- ance sheet resembles that of a hedge fund buying dollars
easy about the skyrocketing values of the Nikkei and land and short-selling the yuan, said Rickards, now the senior
Perspective

valuations. In May 1989, it tightened monetary policy by managing director for market intelligence at consulting firm
raising interest rates, and ordered another hike on Dec. 25. Omnis.
While the Nikkei reached its all-time high on Dec. 31, stock
prices began to plummet. In January, the bubble burst--- "As I see it, it is the greatest bubble in history with the most
COUNT 5---. massive misallocation of wealth," Rickards said at the Asset
Allocation Summit Asia 2010 organized by Terrapinn in Hong
Black Monday---COUNT 6--- is the name ascribed to Monday Kong on Tuesday. China "is a bubble waiting to burst."
Chlorophyll

October 19, 1987. On that day, the Dow Jones Industrial av-
erage fell 22.6%, the largest one-day decline in recorded I encourage you people to analyze for you own self, the rea-
market history. This one day decline was not confined to the son for the bubbles and reach the conclusion. Now, let me
United States, but mirrored all over the world. By the end of go to the major reasons for formation of financial bubbles..
October, Australia had fallen 41.8%, Canada 22.5%, Hong
Kong 45.8%, and United Kingdom 26.4%.  Low interest rates – a foundation for any financial bub-
ble.
Qutopia

There is a certain degree of mystery associated with the

1987 crash. Many have noted that no major news or events  Inappropriate lending by the bank.
occurred prior to the Monday of the crash, the decline seem-
ing to have come from nowhere. Important assumptions  Excessive leverage and large liquidity contribute to
concerning human rationality, the efficient market hypothe- market bubble formation.
sis, and economic equilibrium were brought into question by
the event. Debate as to the cause the crash still continues  Over supply of inflated money from central banks ac-
Elite Talks

many years after the event, no firm conclusions having been celerate growth of bubbles.
reached.
 And finally---the most important---GREED is the biggest
Nobody knows how that bubble occurred. Some economists human flaw that creates all possible financial bubbles.
say it was program trading-- use of computers to engage in
arbitrage and portfolio insurance strategies—while other - Dishant Hans
refute the argument and say it was a mere speculation.
DoMS, IIT Roorkee
So are there any more bubbles to be seen..lets have a look Dishant.hans@gmail.com
 CRICKET AND BIZZ OF BRANDS
MY DREAM
Page 16
Perspective
Chlorophyll
Qutopia
Elite Talks

- Alex

DoMS, IIT Roorkee

Alex.genial@gmail.com
 QUTOPIA - 16
Page 17

It’s Exquizite, Kills your Quriosity and adds to your Quizdom. Need we say
more? ‘Qutopia’ – A Utopia of the best Biz Quiz Tidbits to wreck your brains!
Rush in yo u r a n s we r s to d o m i na ti o n. d o m s . i i tr @g m a i l . c o m,
rajneeshkumar3@yahoo.co.in before 31st May, 2011. The winner will have their
Perspective

names published in the next issue. Also, person getting the highest score in the
current quarter (April—June 2011) will get a gift voucher. Answers in the next
issue of DoMination.

Section A
(1 Point for each correct answer)
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1. Identify this 38 year old co-founder of a Technol-

ogy firm who in April 2011 took over as the CEO
of the firm.
Qutopia

2. If financial Instruments are rated as Aa1, Aa2, Ba1, Ba2, Caa1 etc. Which Credit Rating
Agency uses these kinds of scales?

3. Complete the following with reference to Product Mix in Marketing:

Width: Length: Depth: ______________?
Elite Talks

4. In the Satyam Computers auditing fraud of 2009, which firm was their Auditor?

5. He Joined Infosys in 1994, served as its CFO ( Chief financial Officer) till 2006 & then become
HR director and now has resigned from Infosys in April 2011. Name this Indian chartered
Accountant?

6. Born on 15th January 1940, he joined the Indian Army in 1963 and is well known for the De-
velopment of Ralegan Siddhi, his village in Ahmednagar district, Maharastra since the 1970's.
He is now a member of the Lokpal Bill Committee. Name this Indian social Activist?
 QUTOPIA - 15
Page 18
Section B
(2 Points for each correct answer)

1. Identify this mountain pass between India and China

which remained sealed for four decades after the In-
Perspective

dia-China war in 1962 and was reopened in 2006 for

Trade.

2. When a company raises money through an IPO (Initial Public Offering), the liability side of the Bal-
ance Sheet is impacted in two ways. One is the increase in the paid up capital (Share Capital). What is
the other impact on the liability side of the balance sheet?
Chlorophyll

3. This is the most popular Business Excellence Model developed in 1987 in the United States. Name this
model on which Tata Business Excellence Model (TBEM) is modeled.

4. As part of the Sourcing Strategy of a firm, complete the following:

Single: Multiple: ____________?

Answers to Qutopia 15
Qutopia

Section A:
1. Mark Zuckerberg : Co-founder of Facebook
2. US $ 5 Billion to be paid by Vodafone to Essar Group for its 33% stake in all cash deal.
3. The prize money for winners of the ICC World Cup 2011 was US$ 3 million & US$ 1.5 million for the
runner-up Sri Lanka.
4. Bill & Melinda Gates Foundation or Simply "Gates Foundation"
5. Oligopoly
6. Sam Pitroda
Elite Talks

Section B:
1. Larry Ellison, co-founder and CEO of Oracle Corporation
2. Bombay House, the Headquarter of the Tata Group
3. Ready forward (RF) deal or the Badla system
4. LIC needs to convert its status from "Corporation" to "Company". LIC was formed as a corporation
under the LIC Act, 1956 which has to be modified.

Winners:
- Rajneesh Kumar
Ankit Jain (DoMS, IIT Roorkee: 2009—2011 Batch)
DoMS, IIT Roorkee
Mohit Goyal (DoMS, IIT Roorkee: 2010—2012 Batch)
rajneeshkumar3@yahoo.co.in
 Tourism CRICKET
MarketingAND BIZZ OF BRANDS
Management education must ensure that the student
should be well versed with his surroundings and a clear
understanding of how he can apply what he learns in a
class room to the outside world. It is for serving this
purpose that seminars and guest lectures are organ-
Perspective
ized at a regular interval on relevant and interesting
topics. Continuing the trend, DoMS hosted a work
shop on Tourism Marketing. The speakers for the
workshop were ProfessorDevashish Das Gupta, who is
associate professor IIMLucknow, and Mr Sameer
Sharma who is Regional Head (UP) of Oman Airways.
Professor Devashish with his vast teaching experience
and Mr Sameer with his in-depth knowledge of airways
Chlorophyll
proved to be a perfect choice for the workshop.
The workshop was divided into two sessions. The
workshop was initiated by Prof. Devashish. He intro-
duced students to the world of tourism marketing
through various interesting videos and visual presenta-
tions. He stressed on the huge potential of India in the
Tourism Industry and how, if developed properly, India
can achieve huge earnings from Tourism. He compared
Qutopia
India to various other countries who sustain them-
selves through tourism alone and how we can easily
follow their approach and convert our tourism poten-
tial to monetary gains. He emphasised that Indians
were unique in the world and how people across the
globe yearn for an “Indian” experience and how we
can utilize this to enhance our Tourism Industry. In his
second session he went into the finer details of tour-
Elite Talks
Page 19
ism marketing. He explained to the students how to
approach tourism with a marketing perspective and
how to apply the marketing ideologies to a tourist at-
traction. He made the students familiar with the “4p’s”
of Tourism marketing and also covered what are the
expectations of a tourist when he arrives at a country.
Mr Sameer Sharma followed Prof Devashish. He talked
with students about the Aviation Industry. With his
vast experience in the industry he indeed proved to be
a treasure house for the students. He talked about the
volatility of aviation industry and how the companies
compete in the market. With his past working experi-
ences at various air carriers he gave a comparison of
various air carriers and their business strategies. He
stressed on the importance of having good airways for
developing the tourism Industry. The Indian aviation
industry has huge potential to grow and development
of Airways will automatically lead to the development
of tourism Industry as well.
The workshop attained its purpose as students were fa-
miliarized with an important and growing sector of the
economy. Students were also able to learn about various
career opportunities that are arising in the field and also
entrepreneurship opportunities available in the field. In
this way a successful workshop was concluded at DoMS.
DoMsonians look forward to many more similar opportu-
nities in the future.
- Rohit Menon
DoMS, IIT Roorkee
rohitmenonmech@gmail.com
The Team
Shruti Goel
Anuj Mody
Anirudh De
Chetna Yadav
Deep Pathak
Harsh Singh
Mukesh Rathi
Pallavi
Rajneesh Kumar
Rishi Arora
Rohini Sharma
Udit Gupta
Sudeep Dakua