CHLOROPHYLL

- Dreams

Divide and Rule!! UTTERLY PUNACIOUS: The story of naughty girl turning 43 Global supply chain & present scenario Should Air India go private? 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 headlines 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 babys 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 Regional Head(UP) of Oman Airways. Good Byes are always hard to say. The closer you are the harder it becomes. Its such a bittersweet experience which the batch of 2011 is going through, as the time to step out of these golden corridors 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 DoMS, IIT Roorkee Dishant.hans@gmail.com

- Jagmohan Chopra Freelance Writer jagmchopra@yahoo.co.in

- Nikhil Reddy DoMS, IIT Roorkee nikhil.lingala@gmail.com

- Chetna Yadav DoMS, IIT Roorkee Chetna.yadav07@gmail.com

- Paresh Kulkarni DoMS, IIT Roorkee pareshkulkarni1@gmail.com

CRICKET DIVIDE AND RULE AND BIZZ OF BRANDS

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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

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 limited to hotels. Markets for clothing, footwear, food, restaurants, and cinemas have also followed the same path. Gone are days of the white Fred Perry Tshirt 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, shed be impressed. The same was true of shoes. Everybody wore the same white canvas shoes

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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 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 superior 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 category of rooms was targeted at a niche market and offered something more than the category below, said the manager. Why rooms, even hotels are today categorized as tourist hotels, business hotels, convention hotels, heritage hotels, boutique hotels and resort hotels. Thanks to MNCs; nothing is targeted at

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

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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 isnt called high street? Doesnt height express superiority? Theres confusion everywhere, even in your office building. Thanks to the invention of the mezzanine floor, first floor is no longer situated 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. Barber shops have become salons, gymnasiums have become spas and tailors have become fashion designers. I am told people no longer buy watches to see time, or buy fountain pens to write, they do so

to express their social status. Same is true of cars. So much has happened while Ive 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 withdrawing from the Indian market are an indication, it doesnt 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? Lets wait and see.

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- Jagmohan Chopra Freelance Writer jagmchopra@yahoo.co.in

CRICKET AND BIZZ OF BRANDS UTTERLY PUNACIOUS: THE STORY OF NAUGHTY GIRL TURNING 43
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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 earcategory, and that is still growing, all because a thumb sized girl climbed on the lier advertising agency which was in charge of the account preferred to stick to routine, corporate ads. The account 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 dishe 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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hoardings humming utterly butterly delicious AMUL, some forty years back.

has been popular. Amul uses outdoor advertising Otherwise an epitome of Indias 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 adMovie Stars to terrorist attacks. Be it the recent one vertisements are created in different languages and on Indias poor performance against South Africa or pertain to the geographical region they are put in. 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 Amuls advertising strategy has followed the concept to1967 when the first hoarding of Amul came up in of Umbrella Branding. Amul is the common brand 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 adverbehind 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 housewifes 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 AND BIZZ OF BRANDS UTTERLY PUNACIOUS: THE STORY OF NAUGHTY GIRL TURNING 43
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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 ban English speaking population only. Though there its products. With advertising and marketing expenmay 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.

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- Chetna Yadav DoMS, IIT Roorkee Chetna.yadav07@gmail.com

CRICKET AND BIZZ OF BRANDS GLOBAL SUPPLY CHAIN & PRESENT SCENARIO
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Globalization has impacted our every walk of life, our busi- impact on the supply chain for any industry. A natural caness & 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 skysuring & 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 surGlobal supply chain started with developed countries capi- charge and insurance premium costs paid by the companies 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 global supply chain. as, instead of a challenging situation, a situation providing ample opportunities for industries to come forward with During late 1990s, JIT, supply integration and innovation innovative solutions to handle these new upcoming comhelped 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, demore products being introduced in any product category in mand management & forecasting tools. All the components

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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, supplier relations management, customer relationship management, research & development need to be more competitive & integrated.

- Paresh Kulkarni DoMS, IIT Roorkee pareshkulkarni1@gmail.com

Various external environmental factors also have significant

CRICKET AND Should Air India go private?BIZZ OF BRANDS

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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-

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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 doesnt 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 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 serin domestic and global arenas. Sadly though, the story vice; because the its business periphery doesnt just conhas 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 Im 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 nations pride the two state-owned carriers were Rs.447.93 crore and which someone in near future might give a serious frown 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? 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 employmeans, 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 emsources like taxes (unfortunately though, government ployees to fix the situation. has been feeding the airline to keep it alive!). Is that all?

CRICKET AND Should Air India go private?BIZZ OF BRANDS

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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, decentralipancy factor and average yield has gone up by 1.5% and zation, and choice) or a tool of government (for those

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30 paisa.

who see the private sector as more efficient, more flexible, 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 reducterm debts would be converted into long term debts, the tion in the role of government, the process carries differresult of which is that the national carriers annual debt ent implications depending on which function(s) of govrepayment burden will come down by around 42 per ernment are assigned to the private sector: financing; 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 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 characterin 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 responsibility for setting standards and rules concerning a good or service (Gormley, 1996 and 1997); asset sales, that is, the selling of a public asset (a city building, a sports stadium) to a private firm;

Rest of the things aside; will privatizing any public firm do any good? It definitely has its own pros and cons nonetheless considering the heat of the situation, the more resounding choice of most of the people would be privatize the airline. So, in an attempt to understand what privatization really means, I found these interesting and relevant lines on a website.

Vouchers, that is, government-provided or -financed cards or slips of paper that permit private individuals to purchase a good or service from a private

CRICKET AND Should Air India go private?BIZZ OF BRANDS

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provider (food stamps) or a circumscribed list of pro- As I see it, the government doesnt 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 expectagency, but implemented by approved private pro- ing that our government system in India would be funcviders; and tioning ideally? No. If one goes through above forms of privatization, he/she can find the answers deregula-

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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 with a private-sector organization that produces or delivers the services.

Strengths: Huge network Largest fleet size in the country Government backing

Opportunities: Capitalizing on its strengths to gain market share Can represent India abroad in terms of tradition and gain loyalty of foreign nationals and NRIs.
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:

Weaknesses: Operational inefficiencies Poor service Employee unions Low accountability Huge financial crunch Threats: Huge number of private players eating away market share. Shrinking customer loyalty Non cooperation from employees in terms of strikes
in it as possible. There can be a government represented 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 obviously have to be employed for top management

For managing the operations, private individuals have to be contracted with as less governments say

roles, thus bringing and percolating professionalism in the organizational culture, improving

CRICKET AND Should Air India go private?BIZZ OF BRANDS

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accountability and imbibing competitive attitude among the employees. None should be in a mindset that Air India is a government PSU.

which can either perform these tasks with their own employees or with the airlines employees (after thoroughly trained to perform appropriately in a corporate environment).

Implement deregulation. For example, there cant be any room for laid back attitude with any em-

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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 contracacceptable behaviors? Im 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 wrongdoings, but that they have to be reminded of of the employees and management than their ineffitheir 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, cant be set based on the government standards. I only hope strongly that Air India someday would beThe 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 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

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- L Nikhil Reddy DoMS, IIT Roorkee Nikhil.lingala@gmail.com

CRICKET AND BIZZ OF BRANDS Caught In A Bubble

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Economic bubble, Stock market bubble, Property bubble, those on the open market, while others found themasset price bubble, Dot-Com bubble, Tulip bulb bubble, selves in possession of bulbs now worth a fraction of the bubbles and more bubblesPhew..But what causes price they had paid. Thousands of Dutch, including busithese bubbles and why do these bubbles burst??? Lets 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 Missounds 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 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 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 acing 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 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 bubble burst.---COUNT 1--- People began to suspect that the demand for tulips could not last, and as this spread, a panic developed. Some were left holding contracts to purchase tulips at prices now ten times greater than The company was formed in 1711 by Robert Harley, and was granted exclusive trading rights in Spanish South America.

CRICKET AND BIZZ OF BRANDS Caught In A Bubble

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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.

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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 most extravagant rumors" of the value of its potential trade, and there was an enormous wave of "speculating frenzy". The share price had been rising from the time the scheme was proposed - from 128 in January 1720, to 890 in early June. The price finally reached 1,000 in early August and the level of selling was such that the price started to fall, trigFrom the 1960s to the 1980s, Japan had one of the I dont think this needs any introduction...we all have heard the great depression Crash of 1929. Black Thursday. Black Tuesday

another bubble....burst---COUNT 4--The Japanese "Bubble Economy"

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 finanCOUNT 3---. By the end of September the stock had cial markets, which allowed banks to actively seek fallen to 150. Railway mania was the term given to the speculative frenzy in Britain in the 1840s. It followed a common pattern: as the price of railway shares increased, more and more money was poured in by speculators, until the inevitable collapse. Unlike some stock market bubbles, however, there was actually a net tangible result from all the investment: a vast expansion of the system, though perhaps at an inflated cost. out new customers. During the mid-1980s, Japan took a loose approach to monetary policy, which caused the money supply to increase and interest rates to fall. The combination of these two actions was important to the creation of a speculative bubble: with low interest rates and easier access to credit, new actors entered the financial markets. As the Nikkei kept zooming higher and higher, corporations were able to report their speculative profits as higher earnings. At the end of the decade, speculation dominated the activities of some businesses: it is estimated that perhaps 50% percent of

CRICKET AND BIZZ OF BRANDS Caught In A Bubble

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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 LongTerm Capital Management. The Chinese central bank's balBy 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 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." October 19, 1987. On that day, the Dow Jones Industrial average fell 22.6%, the largest one-day decline in recorded I encourage you people to analyze for you own self, the reamarket 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%.

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Low interest rates a foundation for any financial bubble.

There is a certain degree of mystery associated with the 1987 crash. Many have noted that no major news or events occurred prior to the Monday of the crash, the decline seeming to have come from nowhere. Important assumptions concerning human rationality, the efficient market hypothesis, and economic equilibrium were brought into question by the event. Debate as to the cause the crash still continues many years after the event, no firm conclusions having been reached.

Inappropriate lending by the bank.

Excessive leverage and large liquidity contribute to market bubble formation.

Over supply of inflated money from central banks accelerate growth of bubbles.

And finally---the most important---GREED is the biggest human flaw that creates all possible financial bubbles.

Nobody knows how that bubble occurred. Some economists say it was program trading-- use of computers to engage in arbitrage and portfolio insurance strategieswhile other refute the argument and say it was a mere speculation.

- Dishant Hans DoMS, IIT Roorkee Dishant.hans@gmail.com

So are there any more bubbles to be seen..lets have a look

CRICKET AND BIZZ OF BRANDS MY DREAM

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- Alex DoMS, IIT Roorkee Alex.genial@gmail.com

QUTOPIA - 16
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Its 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 names published in the next issue. Also, person getting the highest score in the current quarter (AprilJune 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 Technology firm who in April 2011 took over as the CEO of the firm.

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: ______________? 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 Development 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
Section B
(2 Points for each correct answer)

Page 18

1. Identify this mountain pass between India and China which remained sealed for four decades after the India-China war in 1962 and was reopened in 2006 for Trade.

Perspective Chlorophyll Qutopia Elite Talks

2. When a company raises money through an IPO (Initial Public Offering), the liability side of the Balance 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? 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 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

Section B:
1. 2. 3. 4. Larry Ellison, co-founder and CEO of Oracle Corporation Bombay House, the Headquarter of the Tata Group Ready forward (RF) deal or the Badla system 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: Ankit Jain (DoMS, IIT Roorkee: 20092011 Batch) Mohit Goyal (DoMS, IIT Roorkee: 20102012 Batch)

- Rajneesh Kumar DoMS, IIT Roorkee rajneeshkumar3@yahoo.co.in

Tourism CRICKET AND BIZZ OF BRANDS Marketing

Page 19

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 organized 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 proved to be a perfect choice for the workshop. The workshop was divided into two sessions. The workshop was initiated by Prof. Devashish. He introduced students to the world of tourism marketing through various interesting videos and visual presentations. 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 India to various other countries who sustain themselves through tourism alone and how we can easily follow their approach and convert our tourism potential 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-

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 attraction. He made the students familiar with the 4ps 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 experiences 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 familiarized 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 opportunities in the future.

Perspective Chlorophyll Qutopia Elite Talks

- 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