Tuesday, February 26, 2008

The Cartel Attack And Then The Flak


IIPM Management School

Aug 2007 Korean Airlines was fined $300 millions by the US Justice Department for fixing prices for passengers and cargo flights. The company thus posted its first loss in two years.

February 2007 The European Commission fined Otis, KONE, Schindler & ThyssenKrupp Groups €992 million for operating cartels for the installation and maintenance of lifts and escalators.

February 2006 British Airways was fined £350 million for its involvement in an alleged price-fixing scandal that included colluding with competitors over fuel surcharges on passenger and cargo flights.

November 2005 Mexico imposed its biggest anti-monopoly fines ever, totaling about $68 million (€ 58 million) against Coca Cola and dozens of its distributors and bottlers.

October 2005 The United States Department of Justice slapped a fine of $300 million on Samsung Electronics for participating in an international conspiracy to fix prices in the DRAM market.

October 2004 Infineon Technologies AGcompany was sentenced a fine of $160 million for participating in the conspiracy to fix prices in the DRAM market.

October 2003 The European Commission fined Aventis €99 million for its alleged involvement in a cartel alongside four Japanese companies for controlling price of the sorbates. The five companies controlled up to 85% of European sorbates market and met twice a year to set prices and production quotas.

March 2004 The European Commission slapped a fine of €497.2 million ($611.8 million) for violating the European Union the anti-trust law on software giant Microsoft. The commission ordered the unbundling of Windows Media Player within 90 days and required that ‘complete and accurate’ information be given to rival or other makers of computer servers within 120 days.

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Source :
IIPM Editorial, 2007

An
IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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Friday, February 15, 2008

Sin City


IIPM International Student Exchange Programme

Fallen women from pleasure paradise


“OneSIN in the Second CITY never quite knows where evil, i.e., the vice squad is lurking in this business. The misogynists get a real kick out of surprising (shocking) you girls, when you give them the opportunity!!! . . . Therefore, you are to lock, double lock, triple lock all doors!!! . . . Figure it out, before they ‘get cha’!!!,” wrote Miz Julia in one of her ‘business tips’ to the 132 women who ‘worked’ around Washington for her firm Pamela Martin &amp. Indicted by a jury on federal racketeering charges Miz Julia, a pseudonym for Deborah Jeane Palfrey, is a woman who ran a high end – $300 an hour – “erotic fantasies’ service for the ‘Public Servants’ of Washington and a woman who draws an exact parallel to the Everleigh sisters of Karen Abbott’s debut non-fiction title Sin In The Second City Madams, Ministers, Playboys, And The Battle For America’s Soul.

In a sense, Abbott’s queer historical manuscript is a chronicle of times, a departure from the ‘history’s mysteries’ series to real flesh and blood tales of lowland Chicago. It transcends to the days of criminal glory of Chicago at the turn of the last century. A city notorious for having become a melting pot of crimes and for setting up of perhaps the most assured venture known to mankind – of bordellos. But here’s a den with a difference. For it’s a den run by the famous Everleigh sisters – Minna & Ada – of whose very mention spells a certain degree of class, a $50 entrance fees and opulent parlours where guests follow a code and wine replaces the reek of any hard liquor.

The sisters, on their part, perforated Chicago’s notorious Levee district – an equivalent of our red lights – by means of a porous thin sheet - successfully tucking away their past behind that veil and leaving most to ponder about. In particular for Abbott, the trace proved quite unnerving for at best she had Minna Everleigh’s dictated allegories to one Charles Washburn, who authoured Come Into My Parlor based on those parables that oft en ventured around unwarranted schmaltzy. But surely they reached the gates of Chicagoland from rural Virginia and were said to have fl ed abusive marriages “to vicious, violent men” only to set America’s fi nest brothel – a cathouse where ‘whores’ were treated well as compared to others down the road. Where an age limit of 18 was imposed when girls of 13 were drugged, raped and sold for $50 to enterprising Madams. By those standards, the Everleighs “ran a clean place” that forbade dealing with pimps and “beaters” and employed lasses out of their free will. They “brought a bit of decency to a profession rife with shame.”

However, beyond the Levee there was a growing movement against changes that challenged Christian America and against utter lawlessness, of which the Levee was a key bait along with its pompous sisters at 2131-2133 South Dearborn Street, its most anticipated victim.

Even though, in Ada & Minna, one found honest businesswomen who didn’t subscribe to the ‘White Slave Trade’ that eventually cornered politicians to come up with the Mann Act of 1910 that forbidding interstate transportation of women for immoral purposes, their sheer extent of bawdyhouse splendour at display with its “silk couches, the easy chairs and the grand piano, the statues of Greek goddesses peering through exotic palms, the bronze effigies of Cupid and Psyche, the imported rugs…..,” coupled with the ‘openness’ in ways of functioning, rung the death knell to the business in 1911. “The Club was the gleaming symbol of the Levee district, shining too brightly on those who operated best in the dark.”

Abbott’s selection of history to be retold lies a current flavour. “Has anything changed?” one might ask of the likes of the Everleighs or the more recent Miz Julia. Like its politicians and its wars, to put forth, a society reaps what it sows.

Edit bureau: Shashank Shekhar

Book Extract
“The Club was the gleaming symbol of the Levee district, shining too brightly on those who operated best in the dark.

“They were the Angels of the Line,” wrote journalist Charles Washburn, twenty- five years after the war over the Levee, “and, as angels, hated and persecuted.”

But on that fall night, as Minna Everleigh watched the reporter disappear into the murk of Dearborn Street, she did not fret about what trouble might come, or who would be behind it. She and Ada had work to do: keep books, prepare the courtesans and greet their boys, watching each man admire the seesaw sway of a girl’s rear as he followed her up the stairs. Would he like a warm bath, or something scrumptious from the Pullman Buffet, or a favor far too naughty to say aloud?

They ran the most successful – and respected – whorehouse in America, and had no reason, yet, to believe that would ever change.”

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Source :
IIPM Editorial, 2007

An
IIPM and Professor Arindam Chaudhuri (Renowned Management Guru

Tuesday, February 05, 2008

The dragon’s attack on the elephant’s pants!


The Sunday Indian - India's Greatest News weekly

The The dragon’s attack on the elephant’s pants!dragon nation has been always proved to be a major hurdle when it comes to India’s onward march – be it any industry! Sure enough, with the question of FDI coming in textiles front too, this becomes yet another instance of how China prospering could well mean India losing out! And so the question arises – how big a hurdle is China in India’s way of becoming a major apparel supplier to global prĂȘt-a-porter market. Well, although India steals the show from China in producing cotton and several other textile materials, it has missed out big time in mass production as compared to the dragon nation. First of all, China has more manufacturing plants and infrastructure facilities, which are thrice superior to what India has today as per CITI (in terms of shipment and roads). Add to this the flexible labour laws (reformed in favour of both the labourers & the manufacturers) related to textile industry and we have a perfect picture of why China is a better textiles investment hub. So it’s no surprise that Chinese textile industry attracts 15% of the total FDI in textile industry, whereas the Indian textile industry attracted a mere 1.05% of total FDI (as per Northern India Textile Mills Association, NITMA). “FDI is required for value addition for export and it also helps companies to create market abroad,” feels, Shisir Jaypuria, President of NITMA. Thankfully, the Indian policy makers realised the need of the hour and thus allowed 100% FDI in the textile sector during 2006. However, there are not all smiles as S.P. Oswal, Chairperson of Textile division, CII, asserts, “That’s too late! It will take us more time to reach where China is today. They are a major competitor in India’s way of dominating the world’s largest apparel market – USA.” So it’s a no surprise that China exported an extensive $23.80 million of fabric to Uncle Sam’s dominion (during the period January-July 2007). On the contrary, India exported only $4.87 million worth of fabric to USA for the same period (as per OTEXA). Huge difference?! Well, let’s better ask – when are we reaching there?

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2007

An
IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

For More IIPM Info, Visit Below....
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Monday, February 04, 2008

In The Footprints Of Time


IIPM Mumbai Parables - Stories that change life

Carrying In The Footprints Of Timeforward his textile dreams, Mukesh Ambani is charting out strategies to revamp the Vimal brand which is all set to don a new logo in September 2007. The Wadias too of late, have shown much enthusiasm about their Bombay Dyeing brand and are currently scouting for strategic tie-ups. Even the globally fashionable brand Louis Vuitton – a part of the LMVH Group – has chosen Pondicherry as the location for its first manufacturing unit in Asia. Surely, with the domestic market estimated to be worth a spanking $45 billion by 2012 (as per CRISIL), all organised players, too, will have reasons enough to smile where returns are concerned.

However, what we cannot overlook here is the vital entry and market capture element that bigwigs have clearly missed out on – the fact that relatively smaller players like Arvind Brands (with their foreign collaborations) and retailers like Biyani have already stolen the show in the Indian market. On the global front too, it’s the smaller fish that rule the global seas (with organisations like Gokaldas Exports stealing the show) as Nair testifies, “These small players from the beginning were much focussed and their core strategy has been to capture the global apparel market... and they’ve done well...”

What, however, tarun joshi: CEO (Retail), S. Kumarsmakes the picture ugly is the fact that while on one hand, we talk of the Indian sub-continent being conducive for textile manufacturing units, on the other, we have stood silent spectators to the blow inflicted to this very industry, through closure of 92 mills in the 10-year period 1995-2005 (as per Ahmedabad Textile Mills’ Association) which includes one of the largest mills in India, belonging to Mafatlals. At the same time, as surprising it is, big Indian conglomerates never thought of either backward integration or offering other products (like moving across the value chain to include handloom, silk et al). Little wonder why Vimal & Bombay Dyeing are not referred to as ‘power brands’ today!

On theWHO’S THE SILKIEST OF THEM ALL? contrary, there were smaller players like Gokaldas, Alok Industries, Rajasthan Spinning & Weaving Mills (RSWM) et al who never banked on just one category of products. Explains, Vivek Hinduja, CEO–Marketing, Gokaldas Exports, “We generated huge funds from export of silk yarn & products made out of such yarn, as silk was the prime revenue earner during the pre-1980s years. However, my grandfather & father realized that it’s not always safe to keep all the eggs in one basket. So we moved up the value chain and when the demand for Indian silk yarn started falling in global market, we already had equipped our self with power looms...” No wonder, with clients like Nike, Adidas, Reebok, Gap et al, Gokaldas produces 2.5 million garments per month and is the largest apparel exporter in the country. Surely today, it’s reaping the fruits of long term vision.... So while McKinsey in its ‘Apparel Trade’ Report has forecasted $16 billion in domestic sales by 2008, one aspect becomes clear – ‘apparels’ in India are shining brighter post-quota regime.

For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2007

An
IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

For More IIPM Info, Visit Below....