l2 analysis of industry i

7/28/2019 L2 Analysis of Industry I

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L2. Analysis of Industry I

Hanif KanjerMBA (London Business School), BE (Production)

Founder Director, Rustomjee Business SchoolFounder Director, Rustomjee Cambridge International School

Director, Rustomjee International School


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The Business of Business is

Business


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A business has to be involving, it has to be fun, and it has to exerciseyour creative instincts.

Richard Branson
http://www.google.co.in/search?q=torino+gameshttp://www.msnbc.msn.com/http://www.ebay.in/


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Governments

In business, Ive discovered that my purpose is to do my best to myutmost ability EVERY DAY.

Donald Trump

Individuals

Mukesh rejects Anil Ambani's objections

P Chidambaram with JapaneseFinance Minister in Tokyoat the Ministry of Finance, Tokyo

CompaniesControl Your Identity or Microsoft and Intel Will


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Who do these transactions impact?

Lets look at a CASE


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The deal is very good for business, our shareholders, [and]the industry.. it will prove that in India things can be donebetter than anywhere in the world

Naresh Goyal,Jet Airways chairman

Jet Airways buys Air Sahara

Deal $500m, 19 January 2006

Air Sahara, which is not publicly listed, has beenlosing money and is estimated to have debt of up to 7billion rupees


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Total TakeoverGoyal, who described the deal as a "total

takeover," said his airline was not planning toretain all of Air Sahara's workers.

Sahara claims full protection ofemployees' interests

When people can see which direction the leaders are going in, it becomes

easier to motivate them.

Lakshmi Mittal


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Flash strike by Sahara pilots upsetsflight schedules

February 12, 2006

Air Sahara's staff strength is about 1,700,including 91 Pilots and 105 flight crew

As you get bigger, you have to learn to delegate. Its also an excellent way to

get staff involved in the companys operations.

Azim Premji

Jet to interview Air Sahara employeesFebruary 10, 2006


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I arrived at the Mumbai airport early in the

morning to catch a flight to Delhi. I waited for

long and at the last moment it was announcedthat the service has been cancelled,said Vikas Chaddha, passenger.

Sunday, February 12, 2006


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Kingfisher Chairman Vijay Mallya: it would not affect KingfisherAirlinesas it was doing well.

19 January 2006

Kingfisher, GoAir, and IndiGo Airlines considering forming an alliance

23 January 2006


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The StakeholdersShareholders of

Jet Airways

Facts do not cease to exist just because they are ignored.Aldous Huxley

Employees of Jet &

Air Sahara

AirPassengers


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The only society that works today is also one foundedon mutual respect,

on a recognition that we have a responsibility

collectively and individually,

to help each other on the basis of each other's equalworth.

A Selfish Society is a contradiction of termsTony Blair


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The business of Business is

RESPONSIBLE TRANSACTION

Lets look at another CASE


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According to ORG-MARG figures,in the chocolate category,

there was a 3% drop in October

while in November the fall was around 10%.Cadbury's lost sales in the festival gifting space.

The company expects a drop of 3-5% in sales this year.

Indian State seizes Cadbury chocolate stocks after worms

Friday, 03-Oct-2003 9:10AM PDT


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Sometimes it is better to lose and do the right thing than to win and do thewrong thing.

Tony Blair

Mr Sanjay Purohit, General Manager - Marketing,

Cadbury India Ltd, explains the new packaging at a

press conference Kochi , March 31, 2004

Cad-bury's concerns...Big B seals chocolate's purityJanuary 07, 2004

It has spruced up its packaging after decades, capitalexpenditure Rs. 12 to 15 crores.

12-15% more expensive than the previous easy to tear foil.

The company's priority is to first bring back some of the losttrust in the chocolate category and then work towards bettermargins.


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And then there are many more..

Mother of All Scams : The Bermuda Triangle!Telgi stamp Paper Scam


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Failure of responsibilityto Employees

Clients

Society at large

Stockholders

Why do these things happen?

Power, money, and knowledge can fosterarrogance anda sense of entitlementthat lead to truly shocking behavior

The temptationsfor cuttingcorners anddefraudingothers are great.


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Responding to Failures of Responsibility

Possible responses

Discourage people from wanting to do bad (characterdevelopment). Ethics in business, Spiritual Quotient

Eliminate structures that encourage or reward wrongdoing

Making wrongdoing impossible (auditing, closesupervision, etc.)

Quick and harsh punishment of wrongdoing (trials of Enronexecutives)ultimately most costly response


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Reconceptualizing Solutions

Selfish Altruistic

Often, solutions are seen as either/or, aseither selfish or altruistic.


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The HK MatrixHelps Self

Hurts Self

HelpsOthers

HurtsOthers

Government Subsidies

Infosys

Lose/Lose Self-sacrifice

TatasEnron

NGOs

Win/Win

Harshad Mehta

Plantation schemes

l2 analysis of industry i

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