Showing posts with label CEO. Show all posts
Showing posts with label CEO. Show all posts

Saturday, December 8, 2012

No ‘auto pilot’ can work here

Stability at the top management level is the need of the hour for Jet Airways in the financial slump

Turbulent weather, expert pilots needed, and only the best will do. Considering that the Indian aviation sector is going through one of its most critical and painful periods, the change of guard at the helm of Jet Airways is quite significant. A major domestic player of the Indian aviation sector, Jet Airways has recently witnessed a change of guards at the top of its management. And looking at the turbulence in the sector thanks to declining air traffic, mounting input cost et al leading to the bleeding bottom-lines and uninspirational top lines, it becomes all the more important to ensure that the baton is now given in safe hands.

Naresh Goyal’s private carrier Jet Airways’ group CEO Ravi Chaturvedi has put down his papers after serving the airline for only four months (Chaturvedi had joined Jet Airways in October last year after serving FMCG major Procter & Gamble). It cannot be more wrongly timed as the player, who was once the largest private carrier in the market (dethroned by Vijay Mallya’s Kingfisher Airlines), is reeling with the recent Rs.2.14 billion losses in the quarter ended December 2008. This forced the airline major to ask its senior officials to accept salary cuts. It was also forced to close down services to three of its major loss-making international routes (Amritsar-London-Amritsar, Bombay-Shanghai-San Francisco and Bangalore-Brussels) and has also unveiled plans to lease four wide-body Boeing 777 aircraft, coupled with phasing out of three Boeing 737 planes. Were these the actual reasons behind Chaturvedi stepping down from the helm? “The current financial standing of the company has got nothing to do with the resignation of Jet Airways group CEO Ravi Chaturvedi. He has resigned from the company, citing personal reasons. Chaturvedi and his family desire to return to the US,” clears a spoke-person of Jet Airways to B&E.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri

For More IIPM Info, Visit below mentioned IIPM articles.

Posted by at
Labels: , , , , , , , , , , , , ,

Thursday, December 6, 2012

PROFILE: CRAIG BARRETT

Barrett led Intel from the front, but little did we realise, he was the masthead for the entire industry...
He is also the brains behind Intel’s “copy exactly” process which Intel adopted full scale in 1996, and which was responsible for uniformity in facilities setup, increased economies of scale through viable output, more efficient logistics and improved yields. “Craig has had a very distinguished career at Intel.

Under his leadership, he turned Intel’s manufacturing operations in the best semiconductor manufacturer in the world,” explains Chuck Mulloy, an Intel Spokesperson. During his tenure as CEO, he oversaw a period of unprecedented growth, steered the company through two recessions, while ensuring that investments remain alive!

Ironically though, Barrett’s career closure may lack the shimmer as for the first time after 21 years of profitability, the company (and investors) are readying themselves for a loss in the last quarter of FY2008. [According to industry sources, a memo from CEO Paul Otellini to Intel employees supposedly noted that after 87 quarters of profit, 2009’s first quarter is “too close to call”.] Many regard Barrett as a statesman for the industry and as proof, he currently chairs the United Nations Global Alliance for Information and Communication Technologies and Development. 35 years is a real long time, and all at Intel acknowledge that he was the man who led Intel’s growth into the largest semiconductor chip making entity! We’re not sure whether his earning peanuts ($0!) in bonus during 2006 & 2007 makes his exit less glorious, but one thing’s for sure – every time a computer will be switched on, there will be a smile on his face; for this man stood for the industry as a whole, a revolutionary in his own right! Fare thee well! 

Read more....... 
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri

For More IIPM Info, Visit below mentioned IIPM articles.

Posted by at
Labels: , , , , , , , , , ,

Friday, October 26, 2012

Relax! It ain’t a giant wave, not yet!

With two IPOs hitting its shores one can finally see some sign of life in the primary market again. But is the market really ready? manish k. pandey acts investor... oops investigator!

At least 50,000 retail investors applied for shares when Mahindra Holidays & Resorts came out with its initial public offering (IPO) in June this year, while the much awaited Adani Power IPO, which closed last week, received a whopping 5,79,000 applications (the Rs.30 billion IPO attracted total bids to the tune of Rs.650 billion). So the entire IPO ecosystem is buzzing with energy and enthusiasm yet again. Investors are seeing this as a chance to party again after a prolonged sobering period.

But then, is the market really ready for the next big wave of IPOs considering that the retail investor is still sceptical to investing in IPOs after the failure of Reliance Power IPO? “Capital markets have short memories. They have the habit of forgiving and forgetting the losses quickly as soon as they start making money again. Investor response to the Adani Power IPO is a case in the point after the fiasco of Reliance Power IPO. Certainly, investors are back into the IPO arena and it’s business-as-usual for them,” reasons Jagannadham Thunuguntla, CEO and Equity Head, SMC Capitals.

Further, the participation of retail investors in an IPO depends primarily upon two factors. Firstly, on the valuations at which the IPO is being made available to investors and secondly, on the state of the market at the time of the IPO (which has a bearing on investor sentiments). If these two factors are in favour, there is little doubt about the success of an IPO. But are these two factors really in favour of the investor as of today? “I believe that the market is ready for quality IPOs. With the return of the risk appetite amongst the investor community at large, there is certainly a demand for newer IPOs. However, to ensure that investor appetite remains unaffected, it’s important that these IPOs are not bunched together within a short span of time,” cautions Hitesh Agrawal, Head – Research, Angel Broking.
 

Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.
 
IIPM : The B-School with a Human Face
Posted by at
Labels: , , , , , , , , , , ,

Wednesday, October 17, 2012

Why we loved Rick’s trick... (Sic!!!)

32 long years did this Harvard MBA take to understand GM; one fine day it took the US Senate to fire him! No more gambles, Rick...

George Bush Jr. (the former US Prez, who else?!) and Rick Wagoner share many things in common. Both are men. Both married. Both Americans. Both Harvard MBAs. Both controlled the strongest entity in their fields (one ruled over the US Senate & the other, over the largest US automaker). Both elected in 2000. Both saw their best days in the first four years of their administration. Both reigned for eight years. Finally, 2009 saw both becoming history… And yes, before we forget, both can hold the Democrat Obama responsible for their ousting! But beyond the drama, there exists one stark difference between the two, and in the manner in which they played their final goodbye tunes. While Bush was ‘booth’ed out respectfully by Democrat Obama & his administration (as he’d run out of time), that very same Obama army, booted out Rick!

And it all happened on March 29, 2009, when Rick Wagoner (now former CEO & Chairman, GM), met up with officials from the US Senate. The Senate (under the Republican Bush administration) had previously given him a reason to raise a toast on New Year eve, showering upon him a most benevolent $18.88 billion on December 31, 2008. But matters got no better, and GM ended up burning dollars in public, reporting $52.8 billion in net losses for FY2008!

His affair with GM shareholders haven't been too cordial (See chart to note how GM shares have lost value on NYSE). But hey Rick, we're not here to criticise you... we are proud of you, and surprised we are, as to how the world's turned a blind eye to what's left in the glass... Yes, the $90 billion in GM’s Mcap that you peacefully destroyed during your reign amounts to just 98% of GM's total Mcap when you began gnawing. Rick, now what are they cribbing about? You've still saved 2% for your successors!!! What’s more, the day your resignation was announced, GM’s Mcap rose by a cool $128.2 million; did someone thank you?

Then there are other issues that will keep you fresh in our memories. Your utmost detest for fuel-efficiency and your scrapping of the futuristic EV1 ‘electric car’ project wins you our fan cards! Really Rick, we admire your awareness, and the manner in which you forgot how the global auto market is more elastic than the US army. Afterall, you belong to the Harvard MBA Class of '77, right?


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.
 
IIPM : The B-School with a Human Face

 
Posted by at
Labels: , , , , , , , , , , , ,

Saturday, September 8, 2012

“AMD provides the ‘right’ quality; we will maintain this”

After years of being stuck in the doldrums, AMD, with its relatively new CEO Dirk Meyer and the fusion technology bet, is finally gaining some momentum. B&E’s Steven Philip Warner talks to Chris L. Cloran, Corporate Vice-President, AMD, about how AMD plans to save its semiconductor skin
 
B&E: AMD is looking to strike back at its competitors in the PC and notebook market with its new Turion chips. And the results so far look promising, with HP, Acer, Dell, Lenovo, MSI and Asus either having already launched or announcing the launch of AMD-based notebooks in 2010. It looks like the entire operational and front end model of AMD underwent a radical change with 2010 setting-in.

Cloran_Chris (CC): Yes. AMD entered 2010 with a new business model, compelling products and greater access to customers. Our first quarter marked a good balance of achieving strategic milestones and operating performance in an improving market. Our Server, Desktop and Notebook businesses saw double digit revenue growth compared to the same period in 2009. So after the tough times during the slowdown, we started 2010 with a different mindset altogether.

B&E: When he was made the CEO two years back, what were the immediate fire-fighting steps that Dirk Meyer took to make changes to save a market share that was growing weaker by the day?
CC: July 2010 marked Dirk’s two year anniversary as CEO and over the past two years, yes, he has tried to make certain serious changes. During this time, he has worked to strengthen the company’s leadership team, align the company’s focus on delivering AMD’s Fusion family of products, improved the company’s product and platform execution and implemented several moves to improve the company’s financial position.

B&E: Late last year, AMD settled a $1.25 billion anti-trust complaints with Intel. More than Intel, market watchers view this settlement as being of more help to AMD. Are they right?
CC: No comments on whether they are right or not! But yes, it has been very encouraging for AMD. For us, the settlement marks the beginning of a renewed focus on innovation and development. We now have the essential tools to compete and innovate – ground rules for an open and competitive market, the freedom to design and manufacture to serve our customers, and a new IP cross-license. This settlement is in the public’s best interest as well. 


Source : IIPM Editorial, 2012.
For More IIPM Info, Visit below mentioned IIPM articles.
 
IIPM : The B-School with a Human Face
 
Posted by at
Labels: , , , , , , , , , , , , , , , , ,

Thursday, August 23, 2012

HOW NIYAMGIRI BECAME A GLOBAL HOT SPOT

SLATED TO BE A MAJOR GAME CHANGER, THE NIYAMGIRI MINING PROJECT CONTINUES TO TAKE A TOLL ON TIME, MONEY AND PATIENCE FOR VEDANTA. WHERE DID THEY GO WRONG?

While planning mining activity in India, the actual operational intricacies of the mining hardly seem to be issues at all, compared with the larger issues that are giving so many CEOs sleepless nights. Actually, the ground above has hardly proved as rosy as the ground below. Vedanta’s Orissa mining project is just one of those that seem to have come to the right place but the wrong time.

The periphery of Niyamgiri Hills, where Vedanta set up an alumina refinery and entered into an agreement with the government and the Orissa Mining Corporation (OMC) for bauxite (which the latter would mine from the Niyamgiri Hills), remains a global flashpoint; which we can largely credit to the no holds barred propaganda campaign unleashed by international NGOs against Vedanta, supported by voices within political circles as well. That is ironic, since Vedanta had precisely invested in the Rs.45 billion project to greatly improve its competitive position globally. Was it flawed intent or was it the manner in which Vedanta presented it to the world? Or, as some company officials put it, a larger competitive conspiracy?

Well, the ball started rolling when Sterlite (Vedanta group company) got approval for its refinery in 2004, and hoped to secure bauxite supplies from Orissa Mining Corporation, which was supposed to mine on the Niyamgiri Hills. The case of OMC got stuck in the court due to environmental and community issues, and Sterlite filed an application seeking expediting of the process. That was really when environmental groups and NGOs smelt blood and criticised the move strongly; saying that the two projects should not have been submitted for clearance separately if they were part of one commercial venture. And then began intense scrutiny of the environmental impact and societal impact of the two projects, and all conjectures were built on the premise that there were skeletons in Vedanta’s cupboard. And the faces of protesting Dongria Kondh tribals, who reside in the Niyamgiri Hills were shown across the world as victims of Vedanta’s mining project. Naturally, political implications followed in India, since poverty has that irresistable appeal.

The SC cleared the mining project, understanding that there was no displacement involved and also mandating that the three parties – Sterlite, OMC and Government of Orissa would invest in the Scheduled Area Development of Lanjigarh. Sterlite was supposed to invest 5% of its net profits or Rs.1 billion, whichever is greater, in the SPV, apart from other investments towards wild life management, tribal development and compensatory afforestation. But clearance from the Ministry of Environment & Forests is still pending in this matter.

Read more......

Posted by at
Labels: , , , , , , , , , , ,

Monday, July 30, 2012

It took Just one Report to...

The Furore over The Report on Illegal mining in Karnataka, compiled by Lokayukta Santosh Hegde has already compelled Chief Minister B. S. Yeddyurappa to step down from his post; there is more to come.

The recent report submitted to the Karnataka government by Lokayukta Santosh Hegde has translated into the end of Chief Minister B. S. Yeddyurappa’s stint at the coveted post. The voluminous report probing the illegal mining scam in the state, which has charged the CM and Tourism minister G. Janardhana Reddy, goes on to recommend the initiation of criminal proceedings against Yeddyurappa. “I consider it necessary to recommend to the competent authority to take appropriate steps to initiate criminal proceedings against the Chief Minister and such other persons who are involved in the said transaction,” the report states, further calling for the removal of G. Janardhana Reddy from the Cabinet in view of his ‘misconduct’.

The latest development comes with the Supreme Court (SC) suspending all mining activities in Bellary. The 25,228-page report of the Karnataka Lokayukta detailed a web of deceit, including violation of mining and environmental laws, tax evasion and money laundering in international tax havens by the powerful brothers – Tourism Minister G. Janardhan Reddy, Revenue Minister G. Karunakara Reddy and Karnataka Milk Federation Chairman Somashekhar Reddy.

The report compiled by Hegde is based on the investigation report submitted by Chief Conservator of Forests and Head of the Lokayukta investigating team related to illegal mining, Uday Veer Singh, who has made an extensive study and submitted very elaborate report supported by documentary evidence. It is pertinent to note here that Singh, who is also the ex-officio CEO of the Bangalore Lake Development Authority, was attacked in the course of investigation. In an exclusive conversation with B&E just before he demitted office, Justice Hegde pointed out that the element of threat existed, perhaps more than ever. “With the SC having suspended mining in questionable areas, there is still threat and we have enhanced provisions for our security,” Hegde told B&E.

The bigger administrative challenge in Karnataka, however, will be to ensure how the revelations in the Lokayukta report are translated into reforms. “I think reforms are distant. It is because the state government alone cannot make the desired amendments. Much also needs to be done by the Centre,” says Hegde. “Moreover, the current mess of rampant corruption in mining in the state is not because policies are flawed, it is because the existing rules and regulations were given no heed,” Hegde explains, adding, “if the rules would have been followed, 70% of the illegal mining and allied activities would never have taken place.”

As per the report, 29.86 million MT of illicit iron ore, valued at Rs.122.28 billion, was exported between 2006-07 and 2010. The report details the complete breakdown of democratic governance in the Bellary area and uncovers the “zero risk system”, a protection and extortion racket, allegedly masterminded by G. Janardhana Reddy. The report describes the illegal money transfers to foreign companies and tax shelters by mining entities such as Obulapuram Mining Company, Associated Mining Company, GLA Trading and GJR Holdings owned by the Reddy Brothers. Even banks and public sector companies allegedly participated in the loot. NMDC, Adani Enterprise and JSW Steel are some major names in the list. Charges against these companies range from illegal movement of iron ore from mining yard without permits and without paying royalties, forest encroachment, mining lease violations, overloading of trucks and sandry violation, et al.

The extent of the scam is reflected in the findings that iron ore was illegally exported even to China through ports of southern India and payments were made through more than 4,000 banks account. The damage excessive mining has done to the environment has also been huge. The report says there have been severe ecological changes due to illegal mining.

For around five years, the Reddy brothers controlled the administration in impoverished Bellary, even flattened state boundary markers to excavate iron ore, all the way insisting they had no mining interests in Karnataka. Now, the reign of the rulers of the “Republic of Bellary” appears to be at an end. For the BJP though, the bigger challenge will be to keep them as far away from the government as possible.

With inputs from Sahana Attur (Bengaluru)


Posted by at
Labels: , , , , , , , , , , , , , , , ,
Subscribe to: Posts (Atom)