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Now imagine what would happen if President Bush accepted Rumsfeld’s resignation. Forget swift and smooth. All partisan hell would break loose, leading to months of confirmation hearings for Bush’s new appointee. Both Republicans & Democrats will use them as a big media opportunity to conduct a kangaroo court trial of not just US policy in Afghanistan & Iraq, but the entire Bush presidency. Who would run the Iraq War then? Everyone and no one! What a dangerous mess. Business has politics too, but in companies, keeping people or letting them go doesn’t present such perils. Top people can leave with minimum upheaval, particularly when companies put successors in place immediately. That keeps the machine running, and shouts out the all-important message that no individual is bigger than the organization. In best case scenarios, jobs are filled within eight hours. Almost nothing in government happens in eight hours. So stop looking at the Rumsfeld situation from management perspective. It can only be seen with a political filter on your lens. For complete information on IIPM Articles, please click here...

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Source: IIPM Editorial and B&E

It's not just New Delhi that has ambitious plans of hosting the Commonwealth Games in 2010. Javed Habib Hair and Beauty is planning to have a network of 500 salons by the same time! With that as a longer-term goal, the chain will set up 100 new salons in India and abroad next year – and it also plans to double its business this year from around Rs 10 crore in 2005-06. While in India, the company will be concentrating on metros like Delhi, Mumbai, Kolkata, Bangalore, Chennai and Hyderabad, side by side it is also looking at aggressive overseas expansion, and is busy studying international markets and fashion capitals (already, it has a presence in eight salons across London, New York, Dhaka and Kathmandu). And finally, what’s the business of beauty without a little education and smartening up of grey cell? So, Javed Habib also plans to explore the education and training businesses. It currently runs seven schools across India and Kathmandu, and will set-up a clutch of new ones in 2007.

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Editor: Arindam Chaudhuri; Source: IIPM Publication and Business & Economy


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‘He’s the poor little rich kid of India Inc, Well, almost!

Since his breakup with elder brother Mukesh Ambani, Anil Dhirubhai Ambani, seems to be practically running into bottlenecks nearly everywhere he looks, or even glances. The tale of the duel between the two brothers with the whole world watching their spat is now old hat. But sure enough, it is that very settlement that has perhaps unsettled the Anil Dhirubhai Ambani led camp. Consider some of Anil’s most ambitious dreams and see how his plans and ambitions appear suddenly vulnerable: Be it the bids for coal-bed methane blocks, or his aspiration to procure cheap gas from Mukesh Ambani owned Reliance Industries Limited (RIL), or even the government denying him that critical last mile connectivity (so essential for his convergence dream), or the pending DTH proposal, Anil seems to be running into the famed bureaucratic hurdles of the well-oiled government machinery. In stark contrast to those days when Reliance, as a joint entity, wielded tremendous clout in the corridors of power. Some analysts suggest that Anil Ambani – perhaps deliberately – did not play the political games as masterfully as his father did and perhaps as his brother is doing. Somewhere, industry experts can sense a huge storm brewing in all the four entities, which Anil has taken control of – a storm that will either blow away all of ADAG’s competitors, or may well prove to be the undoing of the ADAG camp! It seems that Anil Ambani is now on the crossroads of his corporate career; and the turn he takes may well decide his fate in the near and long term future. 4Ps B&M does a check out…

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Editor: Arindam Chaudhuri; Source: IIPM Publication and Business & Economy

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One explanation for the changes is what Harvard economist Raymond Vernon called the “obsolescing bargain”: Over the long life cycle of an infrastructure project, negotiating power shifts from the private investor to the government customer. Initially, the customer offers attractive terms because it needs private investment, technology or management expertise; when the customer has what it desires, it unilaterally changes the terms. Frequently, government takings are triggered by unpredictable events such as economic crises, coups, assassinations or wars. Such big, destabilizing changes expose issues not covered in the initial agreement and alter both parties’ attitudes about suitable risks and rewards. In other cases, government insistence on contract changes is not the product of an external crisis but of changing political circumstances, public opposition to a project or opposition within the bureaucracy itself.

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Editor: Arindam Chaudhuri

Source: IIPM Publication

It is so beautiful, that it seems nothing can go wrong here. Tucked away in the Caribbean, it lies enchanting and beckoning spellbound wanderers into its arms. A true tropical and ‘volcanic’ wonder – the paradise has exquisite white sandy beaches, scores of palm trees, tropical forest mountains, pristine turquoise lagoons and even a virgin coral reef. Ravaged by Hurrican Ivana in 2004, the island’s Plantation Villa would require complete renovation, but it is this very seductive past that adds character to the petit 20 acre island. A case of fatal attraction? Or fatalism, Dr Watson?

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Source: IIPM Publication, Editor: Arindam Chaudhuri

With the sheer power it wields in its grasp to influence global oil prices, any economy can choose to ignore Saudi Arabia only at its own peril. However, the emerging realities have prompted the Saudi government to move beyond being a predominantly oil-dependent nation to a more open, broad-based market economy. And therein lie tremendous trade opportunities for India.

As a home to the sacred cities of Mecca and Medina (visited by millions of Muslims every year), the religious significance of Saudi Arabia doesn’t require any introduction to the world. And the fact that this country accounts for over 25% of the world’s proven oil reserves, exemplifies its significance to the global economy as well. This becomes even more relevant considering how concerns about energy security are widespread. However, this enviable position does not come without its pitfalls, as Saudi Arabia also faces threats of terrorist attacks on its oil installations. Moreover, the country has, in the late ’90s, borne the brunt of declining oil prices while it also faces competition from a resurgent Russia, whose oil production is on the rise. These factors necessitate steps towards reducing heavy economic dependence on oil. Hence, the time is ripe to explore Saudi Arabia for mutually beneficial trade relations.

...Democrats will still fail to capitalise on George Bush’s low public image

Alame duck is defined in politics as a person in power who will not contest elections in future. George Bush fits this definition to a T. As his popularity ratings keep crashing across the United States, the Republican Party is realising that Bush is not just a lame duck, but also an albatross around the party’s fortunes in the American Senate elections, due in November 2006. More worrisome is the prospect of losing seats in the US Congress to Democrats in elections that are due in a few weeks. The latest opinion poll conducted by Gallup in the first week of July 2006 shows that 51% of registered voters declared they will vote for Democrats, while barely 41% declared their intention to vote for Republicans. Quite clearly, the more-than-a-decade old dominance of the Republicans over the American Senate and the Congress seems to be coming to an end. As the toll of dead and injured American soldiers keeps mounting in the Iraq war, the unease of the general public at being misled by Bush is increasingly turning into ire at Republicans. “They raise non-issues like gay marriage or abortions, and never address the real issues,” says James Reid, a Republican supporter. Despite a historical chance to recapture the White House, Senate and the Congress, the Democrats are not offering a concrete agenda for the future to Americans. And they are busy sending confusing signals to voters. Till date, leaving Al Gore (who was even berated for calling Bush “a liar”), there is no clear front emerging within the Democrats of who all will be credible Presidential candidates. Perhaps Republicans really needn’t worry! Who knows, Karl Rove, the discredited Republican strategist, might pull out yet another victorious rabbit?


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Source: IIPM Publication, Editor: Arindam Chaudhuri