Friday, February 8, 2013

“The equivalent of two Valdez spills is gushing into the Gulf, per week!”

John Hocevar, Oceans Campaign Director, Greenpeace USA, talks to B&E’s steven philip warner about the damage done and the consequences thereof of the most recent BP Oil spill holocaust

B&E: The most recent BP oil leak disaster in the Gulf of Mexico is estimated to lead to great ecological disbalances. What are you estimates of the damage?
John Hocevar (JH):
The impacts of the BP Horizon disaster on the Gulf of Mexico ecosystem and coastal communities are going to be felt for decades. It was terrible seeing oiled birds, dolphins swimming through oily water, and tens of thousands of dead hermit crabs. Of perhaps even greater concern is the impact on habitat, which will have long-lasting effects. Mangroves and grasses that have been covered in oil will die, and many low lying islands will wash away completely once the vegetation that holds them together disappears. Some of the islands which will be lost include some of the most important bird rookeries in the Gulf. Unfortunately, this is just the beginning. No one seems to know for sure how much oil has been spilled, but the estimates keep increasing. Some scientists are now saying that the equivalent of two Valdez spills is gushing into the Gulf right now, per week. So far, most of the oil has remained below the surface, offshore, and out of sight – and so have the impacts to marine life.

B&E: The Obama administration is acting first hand to take charge of this situation that already looks beyond control. It has been estimated by Credit Suisse that the cost of the clean up act can touch upto $49 billion in the four years to follow. Even BP is taking huge steps to accelerate its clean up acts. How far do you think will the mission be successful?
JH:
The effort to clean up or mitigate the impacts of this disaster is considerable, but has already proven insufficient to protect sensitive areas. The oil has entered the wetlands, where it will be impossible to clean. Even under the best of circumstances, at most 15-20% of the oil can be recovered. In this case, I would be surprised if they could recover more than 5%. The harsh truth is that the only way to avoid disasters like this is to prevent offshore drilling from happening in the first place.

B&E: So you think BP is the culprit in the spotlight or is it Tony Hayward who is the criminal in the crowd? Or are we to condemn the whole concept of deepwater drilling?
JH:
It is not a question of BP or Tony Hayward being a particularly bad apple, or even of deepwater drilling being much more dangerous than shallow drilling. Many big oil companies have had major accidents in the past under various circumstances, and more recent blowouts have occurred in shallow water than deep. Part of the problem with assessing what the spill is doing to Gulf species has been a lack of transparency by those doing the assessing. BP has hired contractors to test dead animals, but what we’ve seen from them so far has been a bit dubious. When contractors tell the media that the number of dead dolphins is no cause for alarm, or that there is no link to the spill, it doesn’t exactly instill confidence.


Source : IIPM Editorial, 2012.
An Initiative of IIPMMalay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail

IIPM Links
IIPM : The B-School with a Human Fac

 

Rajat Bal, General Manager EMEA (Europe, Middle East & Africa), International Business, i.Tech Dynamic reveals his company’s India plans to B&E

Formed in 2002 in Hong Kong, i.Tech is a relatively young company that has successfully carved a niche for itself in the electronics space in a short span of time. The company has launched a range of headphones and headsets. In addition, it is carving a market for itself in the realm of green-friendly chargers and bluetooth devices, that run on solar energy. They have taken their products through distributors to several countries, including China, Mexico, Middle East, India, Singapore, Europe, Malaysia, Thailand and countries in Europe as well. Through the tie up with Ingram Micro in India, the company is looking to expand its product reach in the market in a big way. In this interaction, Rajat Bal talks about the potential of the Indian market for the company and how they plan to expand their reach into the market. Some excerpts:

B&E: Tell us about the key products that i.Tech plans to leverage on in the Indian market.

RAJAT BAL (RB):
i.Tech has been present in the Indian market since 2008. i.Tech has an extremely innovative range of Mono as well as Stereo Bluetooth headsets. I.Tech offers unique innovative product features such as multipoint, multipoint and vibrate, stereo headsets with AVRCP, Noise cancellation, Bluetooth headsets with display as well as Radio features, as well as first in the market Solar Headset with multi point as well as Nosie Cancellation. i.Tech has a number of achievements to its credit. It was the first company to promote a stereo bluetooth headset in 2005. We introduced the first multipoint headset in 2006 which pairs two BT devices at the same time. In 2007, we launched the first stereo product with a radio FM feature. In 2008, we introduced the first bluetooth headset with 2.1 EDR (Enhanced Data Rate) and have also launched the first bluetooth headset with the triple point feature last year.

B&E: What is the main USP of these products that i.Tech has broght into the market in all these years?
RB:
i.Tech products have a very unique form factor, the Clip form factor, which allows users a much enhanced user experience. i.Tech products use enhanced features such as Display, Vibrate, and AVRCP in our products with relative ease that our competitors with the over the ear form factor cannot use. Our innovative feature set as well as a unique, user friendly Clip form factor are our key USPs.

B&E: Does the organisation have some significant business diversification plans going forward?
RB:
The core business of i.Tech is design and development of Bluetooth Wireless accessories and computer peripherals. We are looking at a diversification of our product range. Having said that, our core business will remain Bluetooth Wireless Accessories.

B&E: How would you rate your products in terms of the pricing?
RB:
A majority of i.Tech products are focused on mid to high end of the market, although limited to a few SKU’s i.Tech also has very strong entry level products. Our product feature set truly adds value to the end user. Our key value proposition is the price and quality of our products.

B&E: But what’s your core competence with respect to other players in the same industry?
RB:
i.Tech’s core competency lies in its in-house R&D and in its product design teams.


Source : IIPM Editorial, 2012.
An Initiative of IIPMMalay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

Wednesday, February 6, 2013

PFIZER & BIG PHARMAS: PATENT LOSSES

Losses of patent rights in the pharmaceutical industry prove how the biggest of dreams can turn into the worst of nightmares. And there are no exceptions. by steven philip warner

Of the biggest setbacks will be the losses of Lipitor’s patent (the largest-selling drug ever) in 2011, and that of its third-largest selling drug Celebrex in 2013; combine just these two, and you would have Pfizer’s revenues being reduced by an alarming $11.74 billion (as per research by Evaluate Pharma, the loss of revenues, post-patent expiry for a formulation, is estimated at 85%). Market reports suggest how by 2014, generic drug companies would be staging a grand stampede on 14 of Pfizer patents, representing 70% of its sales revenues; there is clear and present danger looming large over Pfizer.

There is another worry tantalising Kindler. Some of Pfizer’s new drugs have been failures or have simply underperformed. Even its most hyped-up launch three years back, Exubera, which was forecasted to become a $3 billion-a-year grossing drug by 2011, was withdrawn from the market just a year post-launch after generating an egg-on-the-face $12 million in sales in 2007, with the other drugs launched during the past two years, forecasted to return revenues of just $5 billion by 2011! “Pfizer has a number of downward revenue revisions. You have to believe board members are scratching their heads,” says David S. Moskowitz, Analyst at Friedman, Billings, Ramsey Group Inc. In short – a $50 billion-a-year Pfizer to a $15 billion-a-year skeleton; and that appears a possibility!

Pfizer is not the only one whose patent rights are in the line of fire. Well acclaimed multi-billion dollar names like GlaxoSmithKline (GSK), Novartis, Merck, AstraZeneca, Sanofi-Aventis & Bristol Myers are gearing up for a similar attack from generics (refer table above). The damage as per analysts at Datamonitor: by 2016, their loss in revenues will be about $160 billion! Worse, these patent losses will also lead to market share erosion – a study by Merck Foundation suggests how “big pharma brands typically lose 50% of their market share within a year of patent expiry.”


Source : IIPM Editorial, 2012.
An Initiative of IIPMMalay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

Tuesday, February 5, 2013

INDIA INC.: Q3 PERFORMANCE

A 34% rise in India Inc.’s Q3 profit may bring smiles to many, but it’s nothing more than a statistical jugglery of an ultra-low base founded in the third quarter of FY2009. Though things have started looking better, India Inc. still has miles to before they can really celebrate by Deepak Ranjan Patra

More than a real performance, the truth behind the superb bottom-line showdown in the third quarter is the statistical jugglery of base-effect. Low-base in the third quarter of the last fiscal, which was also the worst quarter during the current slowdown due to the turmoil in the financial industry caused by the sub-prime crisis and followed by collapse of giants like Lehman Brothers, is the particular reason that made India Inc. look bigger and better in Q3 this year. However, going by a quarter-on-quarter (q-o-q) analysis, net profit of the 467 companies mentioned above show a negligible growth of just 1.72% over the previous quarter. The only consolation for corporate India is the fact that it managed to break the q-o-q downward trend it had been witnessing since the first quarter of the current fiscal.

But then, not all is well with whatever small growth India Inc. managed in the last quarter over the second quarter. Apart from Tata Steel, TCS and NTPC, no other company among the top 10 profit makers has witnessed a bottom-line growth of over 5%. Worse than that, profit after tax for three of them have gone down in Q3 over Q2 (including a 40% fall by the country’s largest public sector units- ONGC. SBI and Wipro are the other two) and two of them have grown less than 1%, stating that big brothers among the Indian companies have failed to deliver; leaving it to the small and medium companies with smaller base to do the job. Even the numero uno in the country in term of profits, Reliance Industries, (RIL) too has shown a hairline rise of merely 4%.

However, a report card revival in the small and mid-cap companies is probably the biggest fact to be cheered about in corporate India’s results for the last quarter. Despite their low-base, one should not take away the credit from companies like Hindustan Copper, AIA Engineering, Areva T&D and Panacea Biotec et al, which have seen their bottom-line growing by over 100% in the last quarter on a quarter-on-quarter basis. Not to mention that the small and mid-cap companies have also got a strong back from big investors like the Foreign Institutional Investors (FIIs). As per a study conducted by CNI Research on small and mid-cap companies, FIIs increased their stake in as many as 322 companies in the last quarter. In 259 of those companies, the FII’s raised their stake by up to 2%.


Source : IIPM Editorial, 2012.
An Initiative of IIPMMalay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

Sunday, February 3, 2013

Wi ran outta ca$h, Oh! Jush like datt...

Bankruptcies in US companies have continued...

History is a great teacher, but we are among the poorest pupils, aren’t we? For if we were to learn, the biggest bankruptcy ever, wouldn’t have happened as recently as last year. Yes, we are talking about Lehman Brothers, the global financial services behemoth that tripped over the weight of its own mountain of toxic securities and had a massive, fatal fall. It seemed that all prudent thinking people in the company had been handed over pink slips, the way the bank kept extending loans to people with dubious credit reputations. What were some of the best financial brains of the world thinking when they kept riding the inflating housing bubble till it said ‘Pop’? Your guess is as good as ours.

And in our obsession with Lehman, let us not ignore the some other mammoth companies who seemed to have an esoteric obsession with ‘11’. Billionaire investor Donald Trump is as famous for his classy hotels and casinos as for his trysts with business and personal bankruptcy. This year itself, Trump Entertainment Resorts Inc. has filed for Chapter 11, and Trump has himself stepped down as Chairman after major disagreements with bond holders. The company’s major failing has again been extreme reliance on debt and failure to understand market dynamics. The gambling industry in Las Vegas is teethering on the edge; for people are visiting casinos less and less in the slowdown. It’s unfortunate, since the company only emerged from bankruptcy in 2005. They need to really give up on their ‘gambling’ habits!

Enron and Worldcom were two other dubious names at the dawn of this century that investors would remember with horror and trepidation. Accounting frauds at these companies, which were done by executives at multiple levels to hide the burden of debt on them, led to further investor billions going down the drain; and the government bringing out its much publicized Sarbanes-Oxley legislation to prevent further frauds.


Source : IIPM Editorial, 2012.
An Initiative of IIPMMalay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

 

Friday, February 1, 2013

‘Chicago Boys’ play foul

Pinochet’s economists bettered a Shakespeare play

General Pinochet’s ‘boys’ got it terribly wrong. The policies formed by a group of economists, termed as the ‘Chicago Boys’, appointed by the military government of Pinochet, soon saw Chile at the gates of a debilitating debt crisis. Their policies, like large scale privatisation and liberalisation of capital account, paved the way for huge inflow of foreign capital; but that literally added a huge slice to Chile’s debt everyday, without supporting structural protective measures. And when this inflow suddenly dropped (largely due to recession in the US) and turned into a rushing outflow in 1982, it upturned the economy as if a twister had hit it. It left Chile gasping for breath under an immediate $17.2 billion debt load (one of the highest per capita debt in the world at that time) which kept growing. With a soaring current account balance and high debt servicing burden, the country’s banking system got crippled. The busting of the global copper market too had its explosive effect. It wasn’t just that the Chicago Boys had got it all wrong; it almost seemed that they had worked pretty hard to use a so-named ‘automatic adjustment by using market dynamics’ strategy destroy the military junta government’s reform measures.


Source : IIPM Editorial, 2012.
An Initiative of IIPMMalay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail

IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)