Friday, December 28, 2007

Taming the tantalizing tentacles of change

Located on the Eastern Express Highway and nestled amidst the greenery of Vikhroli, Mumbai; Godrej Consumer Products Limited (GCPL), a 110- year-old enterprise has created space for itself amongst millions of Indians with soaps, toiletries, fabric-care, baby-care and hair-care products. And with ‘change’ being heralded as the crest to conquer for every corporation, India Inc. too is learning fast. Surely, this very ubiquitous battle demands a bolstering of their respective human resource wings.

With a legacy that is over a century old, and having withstood numerous changes both in business and personnelrelated matters, Godrej had incorporated change in its vision much before others. Speaking exclusively to B&E, Sumit Mitra, VP (Human Resources) at GCPL, talks on the changes witnessed in the human resources domain of the company, “When I joined the company about 10 years ago, Godrej was an organization that had more of administration and industrial relations (IR) focussed activities happening.


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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative


IIPM, Business College Ranking India BBA Institute India, IIPM IIPM - Nikhil Khade Online Welcome to 4Ps Business and Marketing The IIPM Think Tank IIPM New Delhi India Professor Arindam Chaudhuri, Renowned Management Guru & Economist IIPM Info Planning and Entrepreneurship Programme, IIPM New Delhi, India Business And Economy IIPM Placements New Delhi, India IIPM Business Management Institute India

Wednesday, December 12, 2007

Trade buries the hostilities: a new era for US-Vietnamese ties

The US, on the other hand, wants to learn from its past mistakes and acknowledge that trade alone can help it establish the strategic leverages (it was in 1994 that US had lift ed the trade embargo against Hanoi. The trade between the two was worth US $ 9.7 billion at the end of 2006) and bury the existing anti-Americanism in the region. Bush is also telling the Vietnamese about the importance of multi-party rule and democracy

The magnanimity displayed by the erstwhile foes bears testimony to the fact that over the last three decades, the world has indeed moved a large distance away from the barriers erected by ideology. It is a welcome development that economic imperatives are now guiding the two nations to resolve their long-pending differences amicably.
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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

Tuesday, December 04, 2007

And kiss ‘n make up with Pakistan?

Pakistan perennially remains the emotionally disadvantaged Siamese sibling of India whose existence is a predicament more for itself than for India. It took more than sixty years for India to reach the trillion dollar mark in GDP. Would India have taken lesser time if Pakistan had been more, ahem, loving? One guesses not. But born on the pretext of a separate nation for Muslims, the fact cannot be wished away that Pakistan has not digested the existence and success of a secular India whose Muslim population is bigger than its own. Over the years, as it witnessed the increasing stability of India against all odds and its rising economic and strategic prominence in the global arena (while Pakistan’s slide continued), the powers within the nation become hell bent on killing India’s social harmony.
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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

Wednesday, November 28, 2007

L3 outbids mighty Raytheon…

L3 Communications Holdings has been granted a $2.04 billion contract by Pentagon. L3 would provide tactical transport aircraft to service the US Army as well as the air force. L3 along with Italian partner Finmeccanica SpA’s subsidiary Alenia North America Inc., Boeing Co. and Global Military Aircraft Systems had outbid Raytheon. Massachusetts based Raytheon had partnered CASA, a subsidiary of European Aeronautic Defence & Space Co. NV, (EADS). L3 would build 78 C-27J Spartan cargo planes, which would replace C-23 Sherpa, C-36, a few C-12s and other established transport aircraft s like Boeing’s CH-47 Chinook.

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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

Wednesday, November 21, 2007

Alarm bells

In a survey conducted by ICMR (Indian council for market research), involving about 1,000 parents in the age bracket between 30-40, living in major metropolitan cities, it was found that Indian parents are also waking up to the potential harmful effects of video games on their children. More than 3/4th of the respondents interviewed agreed that their child played video games, with 2 in every 3 parents fearing that s/he might be addicted. About 60% also said that their child regularly buys video game related products, a classic symptom of overdependence.
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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

Tuesday, November 13, 2007

Who said Dalal street feels media stocks are bitter?

While the Sensex continues to make and break records, media and entertainment stocks have not been far away from the limelight and at present offer good opportunities. At current levels, some of the media and entertainment stocks’ performance seem stupendous and have outperformed the index as well. Recently, stocks like Entertainment Network (India) Limited, UTV Software, Balaji Telefilms and HT Media have appreciated by 102.20%, 93.63%, 92.16% and 39.85% (January 1, 2007 to July 9, 2007) respectively. Due to the gradual liberalization by the government, the sector has seen considerable amount of foreign and domestic investments. Even increasing private equity investments, Initial Public Offerings (IPOs) and mergers and acquisitions are acting as catalysts and fuelling growth. For the first quarter of 2007 there has been investment worth $640 million already by private equity firms in this sector. There are certain segments like the radio and news that continue to be strictly regulated, which leaves enough scope for opening up, hence more investments. These investments will definitely give a fillip to marketing and new product development in these sectors fuelling overall growth. Radio and entertainment segments are expected to grow even faster at a CAGR of 20%-30%. Like cousins in the IT sector, some media companies too are getting listed in global markets. UTV and Indian Film Company of TV18 have been listed in London’s AIM. Who knows, we might see some global acquisitions too.
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Source: IIPM Editorial, 2006
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

Thursday, November 01, 2007

Chávez is busy building a military machine to protect sovereignty

During his three day tour, Chávez visited several Russian weapons factories. The two countries discussed military technical cooperation that helps Venezuela build advanced technologies and help it obviate the need to depend on Washington for military assistance. Venezuela has already purchased over 50 helicopters, 24 Su-30MK2 warplanes, as well as 100,000 Russian AK-103 assault rifles. Russian submarines are certainly on the agenda of Chávez. “Most likely, Chávez will buy five Project 636 submarines with missile systems, but it could end up buying nine,” said Ivan Konovalov, noted Strategic expert from The Centre for the Analysis of Strategies and Technologies, while talking to B&E. He adds further, “… the submarine deal could be split into two or three parts, and include construction of submarine bases and training of submarine crews and, in future, might also include the purchase of advanced Tor-M1 air defence systems.”

Clearly Chávez seems to be on a shopping spree, building military infrastructure free of any ‘imperialist’ pressures. Only time will tell if Chávez is successful in altering the uni-polarity of the world and the hegemony of the United States of America.


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Source: IIPM Editorial, 2006
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative


Friday, October 26, 2007

Google always looks to venture into different services

Mark Blowers, Senior Analyst, IT Infrastructure, Butler Group, says “Google always looks to venture into different services whether e-mail, chat, text messaging based search. So, its venture into voice communication was expected as that would be what consumers would want. Through this purchase, Google is positioning itself as a true player in communication.”

This makes matters worse for soft ware giant Microsoft, which might not be feeling really that big now. Struggling to compete with its relatively young counterpart, which has blatantly marched ahead to steal the show when it comes to online advertising, as well as its unquestioned dominance in the web search category. Noticeably, as per Nielson/Net ratings, Google is leading the Internet search market space with 55% market share followed by Yahoo (22%), MSN (9%) & AOL (5.4%).
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Source: IIPM Editorial, 2006

Monday, October 22, 2007

SREI: A ‘loan’ ranger...

One time – city of refugees, city of joy, city of tram-cars with disjointed electric lines, city of ‘addas’...HEMANT KANORIA, VICE CHAIRMAN & MD that’s ‘Mahanagar Kolkata’ for you! When can we start associating this heritage city with industrialisation, where star corporations like ITC are few & far between? Well, there is one name that comes to mind from the city of Kolkata, as a leader in the rapidly growing sector of infrastructure financing in India. And interestingly, in a field where one would consider banks to be showing the way, this leader in this sector is an NBFI by the name of SREI Infrastructure Finance Ltd. (formerly known as SREI International Finance Ltd.).

Since SREI1989 (liquidity crunch period), there’s one name that has carried the baton of infrastructure development in this city. What started with basic equipment financing has now grown to encompass project financing & renewable energy product financing as well. States Hemant Kanoria, Vice Chairman & MD, SREI, “From 1989 till now, we are in the entire value-chain of infrastructure... So, everyone, who is working in this particular field, would have to necessarily deal with us & we have to deal with them.” The company, which stepped in with the vision of being the most inspiring global infra- structure financial institution with passing time, has gone on to leave quite a mark on Kolkata’s infrastructural landscape & stood the test of time. Within a span of 17 years, the assets under management for this company have reached Rs.50.83 billion.
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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

Monday, October 15, 2007

Change management

Huge Change management(Soth Africa)reserves of natural mineral & metal resources acts as accelerator for strong growth in manufacturing sector. This country contributes 40% of the entire continent’s industrial productions and 45% of mineral productions. Importantly, 50% of electricity is produced here, thus making it as a ‘Power Hub’ of Africa. This production facility attracts huge foreign investors & can eventually boost the economy & infrastructure. Luxury car manufacturing plants are not only pumping in investments but also generating skilled & unskilled employment. It is the largest gold & platinum exporter (contributes 29.1% to GDP)

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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

IIPM, Business College Ranking India BBA Institute India, IIPM IIPM - Nikhil Khade Online Welcome to 4Ps Business and Marketing The IIPM Think Tank IIPM New Delhi India Professor Arindam Chaudhuri, Renowned Management Guru & Economist IIPM Info Planning and Entrepreneurship Programme, IIPM New Delhi, India Business And Economy IIPM Placements New Delhi, India IIPM Business Management Institute India

Thursday, October 11, 2007

SBI funds a series of huge response

Infrastructure Fund – Series I from SBI Mutual Funds has SBI funds a series of huge response got an overwhelming response from the investors & has accumulated Rs.25 billion. SBI received 6 lakh applications for the fund. This fund is a three-year close-ended, growth oriented scheme & would reopen for constant re-purchases from July, 2010. The company is also planning to set up new schemes like gold exchange traded fund (ETF) & on-shore fund for overseas investment – keeping the needs of their customers in mind. The Resurgent Indian Opportunity Fund – the off shore fund launched by SBI MF, however didn’t draw notable response.
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Source:
IIPM Editorial, 2006
An
IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

Thursday, October 04, 2007

Women make better primate watchers than men is discriminatory or true

After nearly a decade along this primate path, I believe that the Vervet (monkeys) and Chacma (baboons) have further aided my understanding of our relationship to the environment, culminating in the theory that we are not one species above but one species amongst all others, and that conservation when focusing simply on serving people and less on biodiversity is unlikely to achieve successful long term initiatives. A feminine perspective of the environment is still less apparent than a male one. Developing poorer countries where socio-economic, or religious and cultural factors have influenced the scarcity of African and Asian women in primate conservation in the past, have been fortunate in having the knowledge of Leakey’s “angels”.

Since democracy in 1994, South Africa has been slowly moving away from a patriarchal society. The battle to eradicate poverty and remove inequity jostles for top position with environmental degradation and the effects of global warming.

Floods and droughts brought about through climate change have found wildlife struggling to adapt to changing ecosystems that are also responsible for rural Africans increasingly moving to towns, highlighting the fragile relationship between humankind and eco-systems. In areas where humans live side by side with wild animals, and resources are competed for, ongoing conflict between humans and wild animals has escalated. The Vervet monkey and Chacma Baboon are merely two species that continue to be shot, poisoned and captured as human habitats encroach further on their territories. These primates are listed on Appendix two of C.I.T.E.S., yet their populations are not officially monitored; reports reveal escalating damage to troop structures as well as dwindling numbers. If this trend continues, our primates face extinction.
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Source: IIPM Editorial, 2007
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

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Tuesday, September 11, 2007

Do we ever care at all?

The Indian bureaucracy is well Do we ever care at all?-IIPM Editoralknown for designing lopsided development models. There is hardly a semblance of sanity in the thought processes, which plans India’s future. In their zeal to build fl yovers, they conveniently forget that pedestrians too have to be provided for. Highways are inaugurated with great fanfare, paying scant regard to the fact that shops and residences along the highway can be traffic hazards. They spend millions on advertising Goa as the ultimate tourist destination in India, but hardly bother about the cows, which squat right at the entrance of the Airport to greet the incoming tourists. This lack of holistic planning is much evident in the way we have encouraged consumerism without thinking about how we would dispose off the waste created by high consumption levels.


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Source: IIPM Editorial, 2007
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

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Tuesday, September 04, 2007

The government as well as Indian cement companies need to address mining related environment hazards

A recent report bycement:Environmental issues CSE reveals some anomalies, though. The report covered 80% of the sector and stated that the top players are poor environmental managers, who are concerned “more about economics than environment.” Grasim was rated mediocre and ranked ninth and ACC (now a part of Holcim) was awarded the third position. India Cements was way down the table. Interestingly though, Indian cement producers have been found to have significantly lower carbon dioxide levels as compared to their European and American peers. It is also true that cement companies are playing a major role in reduction of fl y ash (from power sector) and blast furnace slag (from iron & steel plants), which are used for making blended cement. So what exactly are critics raising their eyebrows for?
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Source: IIPM Editorial, 2007

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

Thursday, August 30, 2007

The IBM effect is still visible here.

However, the ultimate verdict, of course, lies with the Indian consumer and this is where the company has digressed from the IBM way. Nearly two years ago, people did not even know Lenovo. The first objective was to build brand awareness & sponsorship of KBC 2 played a huge role. Today, brand awareness of Lenovo is 85% in corporates & 74% in consumer space, as quoted by Rahul. Unlike IBM, Lenovo is competing head on in the HP dominated home PC segment. The company has therefore ramped up the distribution model significantly. There is more focus on B & C class towns as opposed to IBM’s focus on metros. The company has more than doubled its Lenovo exclusive stores to 100 currently. The multi brand outlets have more than tripled to 579 currently while the business partner network is now present in over 366 cities with 2,076 partners currently. But Lenovo is also taking its relational business model (with large corporates) very seriously. According to Neeraj, the company looks at segment- wise leadership like government, education et al. And Rahul claims the transition to Lenovo was very smooth, as he says they lost “practically no one” from their key corporate customers.
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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

Tuesday, August 14, 2007

RCom to spell the black magic

This spells good news for all Blackberry fans but non- Hutch RCom to spell the black magicand Airtel users. The high-end device is now being made available by Reliance Communications on the CDMA platform. Until now, it was only available on GSM platform. The wireless e-mail experience up till now was restricted only to subscribers of Bharti Airtel and Hutch- Essar. Reliance, however has refused to divulge any further details about the same. The company recently had also unveiled Reliance Classic, the new range of colour mobile phones, priced in the range of Rs1,222- 1,299. RCom have claimed that Rs777 monochrome Classic handset recorded sales of one million in the first week of its launch itself!
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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

Monday, August 13, 2007

AT&T revs up before the iPhone launch...

The re-branding campaign AT&T Inc. for AT&T Inc. will be paced up at the Cingular wireless stores in a quest to raise AT&T’s profile prior to the launch of Apple Inc.’s iPhone. The company is expected to bring AT&T brand name instead of ‘Cingular’ and it expects to complete the process of re-branding the stores before the launch of iPhone in late June. Acquisition of BellSouth Corp. by AT&T last year has helped in the process of consolidation of ownership of the wireless joint venture between the two companies. Michael Coe, spokesperson from the company, however, revealed that the iPhone is one of the strongest product in the wireless industry and for the same, the company would make it sure t h a t every drop of equity from the iPhone gets accumulated to the AT&T brand.
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Source: IIPM Editorial, 2006
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

Thursday, August 09, 2007

. Establishing brand value and loyalty is more of a psychological process

It’s more than merely fabricating an emblem and a punch-line, though. Establishing brand value and loyalty is more of a psychological process, which prompts customers walking the tightrope between cognition and anticipation to crossover to the realm of acceptance, time and over. Here, creating a genuine emotional connect is a potent force, of which I feel McDonald’s represents the perfect exemplar with nearly every promotional approach of the company tugging at the heartstrings of its target audience. Considering Nike again, the brand has played on the aspirations of millions who believe they too can do just about anything if their favourite sportstar brandishing his magic Nikes could.

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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

Wednesday, August 08, 2007

Cigarettes and Alcohol

Based on the methodology followed for the survey on India’s 100 most valuable brands, ICMR conducted a similar survey for the section on alcohol and cigarettes. The initial phase of the survey had 72 brands of alcohol and 24 brands of cigarettes. The parameters of brand awareness and recall were taken as the main parameters to short-list the number of brands to 25 brands of alcohol and 13 brands of cigarettes. These short-listed brands were then rated by consumers (non-smokers and non-alcoholics did not form a part of the survey) on a scale of 1-5 (where 1 is low and 5 is high) for the parameters of brand awareness, brand image/perception and brand loyalty.

The survey was conducted in 5 cities (Delhi, Mumbai, Chennai, Kolkata & Bangalore) amongst 3000 respondents unlike other categories wherein the research was conducted in 9 cities. The survey revealed that Wills Classic, Wills Navy Cut and Gold Flake topped the consumer rating in almost all parameters with ITC very easily taking away 4 positions amongst the top 5.

The survey for the alcoholic beverages category was conducted on 25 brands that were based on the same parameters. The alcoholic beverages were categorised into regular and premium segments based on the pricing (Delhi prices) of a 750 ml bottle.

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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

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Thursday, August 02, 2007

Planning for failure

The year is 1955 and Jawaharlal Nehru’s tryst with destiny still inspires millions of Indians. Bollywood actor-producer Raj Kapoor is successfully peddling his quaint version of utopian socialism. Nehru is fired up and all set to pay homage to the ‘temples of modern India’. There is touching faith in the ability of the State to lift hundreds of millions of Indians from poverty and destitution. Faith, and hope are all pervasive.

The Union Finance Minister C. D. Deshmukh summons a group of select economists for a closed door meeting to discuss the strategy for India’s Second Five Year Plan. The meeting is attended by P. C. Mahalanobis, B. R. Shenoy and C. N. Vakil. Mahalanobis is the blue eyed boy of Nehru and skillfully plays with numbers to convince the Establishment that a strategy of massive State led industrialization is the answer to India’s teeming problems. Economists Shenoy and Vakil vehemently disagree with Mahalanobis. But then, who could Deny the blue eyed boy his place under the sun?
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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

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Tuesday, July 17, 2007

“Bharti Telesoft wants to be a consolidator and not a consolidatee!”

Apart from these factors, the company also believes strongly in its ability to identify emerging market opportunities. Currently, there is tremendous excitement in Bharti Telesoft regarding two relatively new VAS areas – m-commerce and Live TV. The company hopes that m-commerce will be a huge success as it will allow small low-value transactions and money remittances, where banks are failing. Sur further adds, “With m-commerce, the role of the mobile operator will change. He will be your money transfer agent, your bank, bill payment or collection guy or might even end up being your address verification document.” On the strategy of bringing Live TV to mobiles, Mital comments, “Just like PC became a window to the wired world, mobile phone will be a window to the wireless world.” The company is also excited about the advent of 3G, which would open up a whole new world of VAS opportunities, as well as competition. Banters Chowfla in jest, “No one is going to offer us a free lunch!”
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Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

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Wednesday, July 11, 2007

Soon to be a global giant?

Sensing a fast-expanding and profitable market, backed with continuing deregulation, the Dutch banking giant ABN Amro in Indian has transformed itself into a corporate bank with comprehensive Global Transaction Services. Though small in numbers, it’s a well established player and pioneer to some of the most innovative products in the Indian banking milieu like targeted banking products.

India, along with China figures amongst the strongest-performing regions for ABN Amro in Consumer Banking. The bank set a new record in India by placing approximately $100 million in equity funds within a single month. Recently, ABN Amro also launched a host of services, which includes a microfinance programme (delivering credit to women in rural India), Private Banking Services (Portfolio Advisory Services along with transaction executive platform) and the novel ABN AMRO Sustainable Development Fund that primarily seeks to invest in socially responsible companies. Furthermore, realising the potential for growth in personal loans the bank has realigned its retail loan in favour of unsecured loans (personal loans and credit card loans). To this effect it recently launched ‘ABN – Amro One.’ Of late, hogging more news space because of the mega merger bid from Barclay’s (which will create a $155 billion global banking giant), “Making more possible” will certainly continue to be their cherished dream in the burgeoning Indian market.

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Source : IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

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Thursday, June 21, 2007

This is not where the sky wars end

This is not where the sky wars end. After the Jet-Kingfisher brou-haha, e-mails have been floating where another billboard (of GoAir) has been placed atop Jet’s and Kingfisher’s saying, “We’ve not changed. We’re still the smartest way to fly.” (Go on, we give you time to laugh out loud). GoAir has not confirmed that the viral marketing campaign has been initiated by them (but, isn’t it obvious!). “When elephants dance, ants too get in the way,” is what Seth has to say about GoAir jumping in. Now, that’s having some real fun at someone else’s expense!
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Source : IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
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