Cover Story

Revitalizing Agriculture

-- D Satish and Anupama Chowdary

Indian agriculture is at the crossroads. The unpredictable weather and lackluster government policies have made dependence on agriculture a losing proposition. Agriculture needs massive investments and needs it now. The newly formed UPA Government has promised to put agriculture and rural development in the spotlight. With the Common Minimum Program at the backdrop, the Government has announced some measures in order to revitalize this sector. How would these measures work on the ground and most importantly, would these measures make agriculture sustainable and globally competitive?

© IUP. All Rights Reserved.

Corporate Strategy

European Football Club's New Business Model: Who is Scoring the Goal

-- G. Saradhi Kumar

What does the new business model of the premier clubs hold for the European football business?

In the recently concluded European football championship, even the die-hard fans would have missed the Beckhams and the Zidanes, but none missed the Roteiro—the only ball to appear throughout the competition. The result was simply amazing. Within a few weeks time Adidas, the maker of Roteiro, sold 6 million balls. And that is the commercial value of football. No wonder why the big European clubs make huge money.

© IUP. All Rights Reserved.

Boeing vs. Airbus: Competition Fuels Designs

-- K B S Kumar

While Boeing is back with its new and much-awaited 7E7 version, Airbus has positioned its A 380 to suit the business models of the airliners. The war in the skies is on.

© IUP. All Rights Reserved.

Berger Paints: Colorful Future

-- Nidhi Joshi

Will cost-cutting measures help the company build a better future?

The Indian paints industry can be broadly classified into two segments, namely, decorative and industrial. Decorative paints’ market size stands at Rs. 32.5 bn with Asian Paints as the market leader in this segment. On the other hand, industrial paints’ market size is around Rs. 9.5 bn with Goodlass Nerolac as the leading player. While some have been performing very well, Berger Paints is facing problems related to costs and reduced market share. To deal with them, it is taking up various measures like reduction of overheads, transportation costs, cost audits, etc.

© IUP. All Rights Reserved.

Merger of MTFG and UFJ Holdings: Potential Synergies

-- Sumit Kumar Chaudhuri

In tune with the consolidation process in the Japanese banking industry since the late 1990s, MTFG and UFJ have initiated discussions for their proposed merger. What would be the potential synergies of this merger?

© IUP. All Rights Reserved.

International Finance

Yuan: Fixed to Float

-- Priyanka Sugandhi

China is working on developing its forex markets. This is seen as the first step towards floating its currency—the Yuan.

In 1994, China had pegged its currency yuan at 8.28 to a dollar. Since then it has stuck to this fixed exchange rate despite pressures from US and other countries. The fixed exchange rate suppressed the value of the yuan making Chinese goods globally competitive. This has led to a massive current account surplus and it is estimated that the yuan could be as much as 35-40% undervalued against the US dollar.

© IUP. All Rights Reserved.

Business Environment

Agriculture: Promoting Sustainbility?

-- Prof. P C Kesavan

Sustainability cannot be achieved with only sustainable management of natural resources and attractive policies.

Agriculture still remains the backbone of the Indian economy and forms the livelihood base for a very large proportion of our population. The point to be always kept in mind is that if agriculture goes wrong, nothing else will go right for us as over 25% of our GDP comes from it.

© IUP. All Rights Reserved.

Experience Economy: Providing Competitive Edge

-- Anindya Roy

If a firm can offer a unique experience to its customers, it can protect itself from competition even if its physical attributes are imitated.

© IUP. All Rights Reserved.

Private Banking in Asia: Wealth from Wealthy

-- Indu Prasad

The private banking market in Asia is growing more rapidly than in other parts of the world with the offshore bankers reaping the maximum rewards.

© IUP. All Rights Reserved.

Discrimination Against Women: Business Implications

-- Feroz Zaheer

With more and more class-action suits being filed, do they really have any implications on the organizations?

In the 21st century, which is regarded as the most modern and civilized era, it is bizarre to read about women being discriminated at their workplace. These days, many newspapers carry headlines of some giant business corporation being sued by its women employees for alleged discrimination on gender grounds. This is happening in a suave, dignified, well-mannered, elegant and educated society that boasts of equality of sexes in all spheres of life!

© IUP. All Rights Reserved.

Financial Services

ARCs in India: Present Scenario

-- Nidhi Joshi

How successful are the Asset Reconstruction Companies in India?

Compared to financial sector reforms in India, which moved ahead fast on issues like riskbased supervision, interest rate deregulation, and barriers to entry, the focus on structural institutional aspects has been much slower, causing concern. Mounting Non-Performing Assets (NPAs) is a growing anxiety for lending institutions and banks and their recovery would help improvizing the bottom line. The recovery is being made through policy changes, recovery strategies and judicial and non-judicial methods.

© IUP. All Rights Reserved.

Funds of Hedge Funds: A New Mutation

-- Shashidhar Mishra

In spite of concerns about use of leverage, funds of hedge funds are gaining acceptance among institutional investors.

In the autumn of 1998, the world appeared to be doomed for hedge funds. Long-Term Capital Management (LTCM), then a popular hedge fund studded with Noble laureates, was on the verge of closure, creating the possibility of putting the global financial system in jeopardy.

© IUP. All Rights Reserved.

Crises Management: RBI's Dilemma

-- Priyanka Sugandhi

The recent downfall of the Global Trust Bank has put the spotlight on the role of the regulator.

© IUP. All Rights Reserved.

Pension Scheme for Artists: A New Dawn

-- Indu Prasad

Recently, a new retirement scheme has been introduced for artists in the US, which allows them to reap the rewards of their success in a never before way.

© IUP. All Rights Reserved.

Treasury Income for Banks: No More Easy Monye

-- Shashidhar Mishra

In the present scenario, Indian banks are finding it difficult to continue to rely on treasury income.

In the past few years, especially since 2001, the Indian banking sector has been showing strong growth in profits. This is largely due to the boom in retail lending and also the treasury income whose rise can be attributed to the low bond yields. .

© IUP. All Rights Reserved.

RTGS in India: A New Beginning

-- Dr. R B Barman

The introduction of RTGS has ushered in a new era in the payment systems in the country.

© IUP. All Rights Reserved.

Financial Markets

Wall Street Research: Dependence to Independence

-- Sharath Jutur

Given the ongoing controversy over Wall Street research, one day stock market research would move from Wall Street to independent research firms.

© IUP. All Rights Reserved.

Industry

Wireless Telecom Market: Delayed Idea?

-- Anupama Chowdary

Will Tata Teleservices be able to catch up with the big boys of the wireless market?

© IUP. All Rights Reserved.