Domination February 2011
Content
Volume - II
Issue – 02
Fe bruary2011
Chlorophyll Greater than GodMy Mother
Focus
From Editor’s Desk
Dear Readers, This month we bring you yet another informative as well as a creative edition of Domination. DoMS has been a host to a lot of activities in the month gone by. From guest lectures to knowledge sharing sessions, it has been a month of learning to learn. We had with us various speakers from the industry to talk about diverse yet inter-related subjects like CSR, HR practices etc and their words of wisdom have been captured in the ‘Elite Talks’ section. “Conscious Capitalism is a term used to describe a business enterprise that seeks to be aware of the effects of its actions, and to consciously affect human beings and the environment in a beneficial way.” The cover article covers more about the recent wave of conscious capitalism and its effect on the many Indian companies following the same. Starbucks is ready to redesign its logo wherein the name has been dropped from the logo. Starbucks-A new Chapter dwells into its past and brings forth the rationale behind this step also eliciting the significance of the new logo. The case of Dabbawalas best exemplifies supply chain management, and the article deals with the case of Mumbai Dabbawalas, and the ingredients into its success story. The writer brings out a beautiful poem ‘Greater than God’ through the Chlorophyll section. The centrestage event of DoMS in Cognizance (the annual technical fest of IIT Roorkee) - “Corpostrat” in collaboration with THDC, brings a real life problem situation, and the contest invites entries for the solution to the problem. Discover more about it in this edition. Until next time keep discovering and keep learning!
Editor – “DoMination” (Department of Management Studies, IIT-Roorkee.)
Animesh Agrawal
Table of Contents
1
Conscious Capitalism Udit Gupta DoMS, IIT-Roorkee
4
Starbucks- A new Chapter Chetna Yadav DoMS, IIT-Roorkee
5
The case of Dabbawalas Paresh Kulkarni DoMS, IIT-Roorkee
10
Elite- Talks
7
147
Creative Section
Qutopia - 9
Rajneesh & Anirudh DoMS, IIT-Roorkee
Chlorophyll
-Fresh Green Creativity, right from the roots of DOMS through the leaves of this newsletter
Harsh Singh DoMS, IIT-Roorkee
Its wise to learn, Its GOD like to create
16
Hocus-Focus
Department of Management Studies, IIT Roorkee
Conscious Capitalism
- Udit Gupta
1
DoMS, IIT-Roorkee
Businesses have a choice to make. They can keep chasing the narrow goal of maximizing profits. Or, they can realign themselves to larger goals. In times to come, they might not even have a choice. After the economic crisis of 2008, companies have started looking for more humane ways of doing business just as profitably they were doing before so as to give regard to values and to improve people’s lives. One of the ways that is emerging is Conscious values like respect for employees, customers, suppliers, contractors, other businesses and the environment. In USA there are institutes and alliances like Conscious Capitalism
Institute and Conscious Capitalism Alliance, which helps the companies in making the transition. In India, too, there are
Capitalism.
Conscious Capitalism pursues the triple
bottom-line approach: people, planet and profits instead of just one (profits) pursued by Capitalism. Conscious Capitalism and what it entails is not philanthropy, as it’s not charity. It’s more than Corporate Social Responsibility (CSR), as it’s about doing business, not being divorced from it. It’s not even a social business, as social good is one of its several objectives, not the overriding one. Conscious Capitalism is a business model that shares the philosophy of ‘me to we’ – the notion that our own lives improve when we focus on improving the lives of the others. A company that is really interested in Conscious
organizations like ChittaSangha and CoEvolve,
which are working with companies to develop leaders who can ease the transition from creating shareholder value to creating multistakeholder value. Following companies in India are already treading the path of Conscious Capitalism: Forbes Marshall: Forbes Marshall found that though scheduled castes and scheduled tribes formed a quarter of the country's population, they accounted for only 6.8% of its workforce. So it decided affirmative action, rather than reservations, was the way to fix this demographic kink. The company has adopted a four-point plan put forth by the
Capitalism would have to embrace ethical
Department of Management Studies, IIT Roorkee
Conscious Capitalism
2
Contd..
Confederation of Indian Industry: direct employment, improving employability, developing entrepreneurship, and primary and secondary education. The philosophy is to provide extra inputs to the underprivileged to make them more competitive. Mahindra & Mahindra: Mahindra & Mahindra is transforming its tractor-selling outlets by adding a repository of agricultural information and advice to farmers. The new name of these outlets is Samriddhi (or 'prosperity'). Farmers can come here to buy tractors. Irrespective of whether they own a Mahindra tractor, they can come here to solve their agricultural problems. Every Samriddhi centre has an agricultural expert and a lab technician. Their approach to farmer problems is intensive and scientific. When a farmer walks into a Samriddhi centre, the expert asks him about his problem and farming practices. The nature of intervention is varied: for instance, lab tests on the farmer's land and crop, advice on croprotation schedules and fertilizers, demonstration of farming techniques or different seeds. Advice is free, supplies are charged for. It has worked with about 50,000 farmers in the last two-and-a-half years. So far Mahindra has transformed all its 92 dealer outlets, with plans to increase to 125 by March 2011. Marico: It is in the business of cooking oil, yet FMCG major Marico spends time and money telling people to go easy on it. Its good business: Marico positions Saffola, its cooking-oil brand, as a healthy oil. It's also a belief system. Saffola is made in such a way
that consumers use less of it than other oils, so in a commodity category, what the Saffola brand stands for gets reinforced. The company reinforces this belief system -consume less oil -- in many ways. It has a 9 am-6 pm phone line, where anyone can talk to a nutrition expert for diet-related queries. And, no, the expert doesn't plug Saffola. Time and again, through various mediums, it sensitizes and incentivizes people to know the state of their heart. In 2009-10, for example, with every pack of Saffola Functional Food, it gave away two coupons for a free lipid-profile test. The Saffola Healthy Heart Foundation, set up by Marico in 1991, holds free heart and cholesterol check-up camps and walkathons. For heart patients, it holds a cardiac rehabilitation workshop, which includes sessions by cardiologists, dieticians and physiotherapists; in 2009-10, its first year, and 14000 heart patients attended these workshops. That many of them prefer Saffola for cooking shows healthy practices can be healthy business too. PepsiCo India: In 2009, PepsiCo India used 5.17 billion litres of water for its products. The same year, it saved or put back 6 billion litres - 830 million litres more than what it consumed -- into the system, according to figures released by the company and verified by audit firm Deloitte Touche Tohmatsu India. It was even more important for PepsiCo India since they were accused of depleting water resources. PepsiCo India has achieved a 'positive water-balance' through three steps:
Department of Management Studies, IIT Roorkee
Conscious Capitalism
3
Contd..
One, the company helped its contract farmers change the way they planted paddy. Instead of flooding the fields, it gave them a directseeding machine, which could be mounted on a tractor. This reduced water consumption by 30-40%. The direct-seeding programme, which covered 6,500 acres across five states, saved about 4.7 billion litres of water. Two, it built check dams and recharge ponds around its plants. It trapped rain water, and diverted some of it to people around the area for farming or drinking. For instance, in Aurangabad, a water-scarce area where it has a plant, it constructed 13 check dams and recharged over 100 wells. This has created the potential to recharge 700 million litres of water and benefited 12,000 villagers. Three, all its plants have rain or roof water harvesting, which brings in 133 million litres. In 2002, PepsiCo India started 'revaluing' water as a resource. In 2009, it became the first company in PepsiCo to become waterpositive. The Indian arm now plans to extend its outreach to its bottling franchisees and supply-chain partners. And the parent plans to replicate this in other water-scarce markets like China. Tata Steel: One of the 'articles of association' of Tata Steel says: "The Company shall be mindful of its social and moral responsibilities to consumers, employees, shareholders and the local community." That thought in mind, Tata Steel built the city of Jamshedpur to house people working in the company's plant there. All civic amenities in the 103-year-old city are managed by Tata Steel's subsidiary Jusco. It spends about Rs 100 crore a year on
the city's development and maintenance. Jamshedpur was built from scratch. Today, the focus is on displacement of people for projects. Tata Steel, which has captive iron ore and coal mines, has a policy for minimum displacement. In 1979, it set up Tata Steel Rural Development Society (TSRDS) as a subsidiary to address the needs of people near its plants and mines in Jharkhand and Orissa. Funded by Tata Steel, TSRDS promotes integrated rural development. Its goals include drinking water, health and hygiene, education, environmental awareness, youth development and income-generation programmes. For instance, 75% of the population in Ganjam district in Orissa depended on agriculture, but they were migrating to cities due to lack of water. Ganjam is close to Gopalpur, where Tata Steel faced opposition to its steel project in the nineties. In 2005, TSRDS started reviving 29 lift irrigation projects there, which it completed in 2009-10. Conclusion The old paradigm of maximizing profits and shareholder values as the sole purpose of business has created negative unintended consequences. Business needs to become holistic and integral with deeper more comprehensive purposes. If business owners/entrepreneurs begin to view their business as a complex and evolving interdependent system and manage their business more consciously while fulfilling their highest business purpose, we would begin to see the hostility towards capitalism and business disappear.
Department of Management Studies, IIT Roorkee
Starbucks- A new Chapter
- Chetna Yadav
In March, Starbucks will celebrate their 40th anniversary with the launch of a new logo and identity. Coca-cola, Pepsi, and Mountain Dew and many more, have all gone through major rebranding of their logos. One thing in common though – none of them dropped the name from the logo. This leaves many, wondering why Starbucks would even consider dropping the “Starbucks” name from the logo. Probably there comes a point where the logo is synonymous with the name (Pepsi, Nike, McDonalds, etc). But is Starbucks there yet? Since the original Starbucks opened in the seventies, the Starbucks logo has always had a round-shaped siren. It started as brown and white, and then later evolved to include green. The green circle, regardless of what’s in the centre, is identified worldwide as a Starbucks beverage .Now, facing new market entries and attempting to get away from the snobby Starbucks stigma, the beverage giant has decided to drop the circle around the siren touting “Starbucks.” The Wall Street Journal reported that the new logo represents the company's newfound emphasis on becoming a consumer packaged-goods company, as well as the idea that Starbucks might have other products that don't have coffee in them at all. Howard Schultz, the C.E.O. says that“The new logo embraces and respects their identity plus evolves the company to a point that’s more suitable to the future. The logo is at the core the same –
4
DoMS, IIT-Roorkee
the love of the coffee – but by changing it allows the company to move beyond just being a purveyor of coffee. Starbucks will continue to offer the highest-quality coffee, but will offer other products as well – and while the integrity, quality and consistency of these products must remain true to who we are, our new brand identity will give us the freedom and flexibility to explore innovations and new channels of distribution that will keep us in step with our current customers and build strong connections with new customers.” Starbucks' ventures into more widespread retail channels, such as grocery stores, drug stores, discounters, and other venues aren't new. Nor is the idea that folks can get non-coffee items under the Starbucks brand. But fiddling with a venerable logo can sometimes leave unwary companies badly scalded. Last October, Gap briefly changed its own tried-and-true logo to a widely mocked and quickly discarded new version, in what many observers still regard as a massive gaffe. Although that was a complete change and this one is just a simplification of an already existing mark. CEO Howard Schultz caused a ruckus when he talked in 2007 about the possibility that the coffee giant was "losing its soul." Now, thanks to the new logo heralding the company's 40th anniversary, it's definitely lost something else: the word "coffee." and "Starbucks," for that matter.
Department of Management Studies, IIT Roorkee
The case of Dabbawalas
- Paresh Kulkarni
5
DoMS, IIT-Roorkee
Just the other day I was going through the books I came across a jargon “Supply chain Management” and “Mumbai Dabbawalas”. Let’s explore more about this interesting topic. Gartner (2000) defined Supply Chain The case of Mumbai Dabbawalas Everybody must have heard a lot about the supply chain management systems used by the Mumbai Dabbawalas and the global accolades they have received. From
presentations at Harvard Business School to the Special visit of Prince Charles, they have received the six-sigma, ISO certification and the limelight like never before. These days they speak about the organizational structure, working style, and delivery systems of their organization. The Need Mumbai has a population of 13,830,884 and the Mumbai Metropolitan Area has a
Management as the set of processes that accomplish “the delivery of goods, services and information”. Supply chain management has roots in the focus on lean and efficient manufacturing. These lean efficiencies were driven by corporations initiating cost saving changes to the business process. Supply chain management is seen as a process-driven approach to streamline the business.
Supply chain management has at times been
referred to as “logistics”; however there is a difference - supply chain management are those activities, departments, organizations or firms that network together to deliver a product to market. The supply chain typically includes the functions or organizations of: planning, supplier management, operations, logistics and material control.
population of 21,347,412. Every morning
there are over 10 million train commuters and bus passengers making interminable trips to offices mostly located in the South Mumbai. But most of them spend more than 90 minutes to reach office. So these people are not able to pick their lunch packed from home, so early in the morning. This is where “Dabbawala” comes into
Department of Management Studies, IIT Roorkee
The case of Dabbawalas
action and picks lunch boxes from various houses and deliver 2,00,000 lunch boxes on time & to the respective persons. The Secret Mumbai Dabbawala have achieved
6
Contd..
wanted to meet them, they gave him a precise time slot so that the thousand customers would not have to skip their lunch. Pride in their work makes them move about their mission briskly with a smile, making sure they are never late. Spirituality plays an important role in relieving the day's stress. They regularly chant songs of praise to the Lord. They truly embody a living where one looks beyond materialistic
unprecedented success in the areas of Supply chain logistics, reverse supply chain logistics, time management, customer relationship, customer & employee satisfaction, and cost effectiveness. Another important feature is the processing in transit like sorting, coding done during train travel. Looking at the core of their business, it is more human intense service, majority employee less educated, delivery of service dependent on many external factors like local trains, weather conditions, etc. In spite of all this, they are
earnings and serves with commitment for a cause. The Learning Supply chain management needs to be applied with proper consideration for
processes, human capital and other external factors. Only then it can help to provide cost
successful because of:
Honesty and Integrity having strong roots in their culture results in efficient team work. Discipline and Time Management can be judged from the fact that when Prince Charles
efficient and reliable delivery of goods &
services, beyond customer’s expectation. This helps organizations to develop unmatched core competency, giving strategic advantage in long run.
Department of Management Studies, IIT Roorkee
-Fresh Green Creativity, right from the roots of DOMS through the leaves of this newsletter
Greater than god…… my mother
One day to know my greatest asset my mind tried, To get the answer my thought’s took a ride, In my core’s each and every side, And in this universe so wide, But that answer my soul tried to hide , And sometimes it lied, But I kept on searching in the tide, And slowly the answer demystified, And with a sudden joy and tears I cried. Of my imperfections the world makes me aware, All my vulnerabilities it bares With prospects so bleak, Deep within I feel so weak,
7
Department of Management Studies, IIT Roorkee
Greater than god…… my mother
Contd..
But when you say in this whole world east or west , My son is the best, I ride a new energy crest, In your love’s nest ,life seems like a fest, For everything I feel a new zest, Moving all around I have only found, showering love that knows no bounds, it’s the woman no other, but it’s only you oh! sweet mother. I ask between god and you who’s greater, God I yet haven’t seen, But a witness of your love’s bliss I have been,
8
Department of Management Studies, IIT Roorkee
Greater than god…… my mother
To help those in pain, woman who’s so keen, In you an idol of compassion I’ve seen, So simple and kind in this world so mean, All I am is only due to your beautiful hearts sheen, When in lands far away,I see on street, Feeling this cruel world’s heat, A mother embracing his child with love, And caring him in a way so sweet, Beauty of this moment my soul wishes to greet, Feeling you in the sky,in the air, And in nature’s every beat, Oh! Dear mother I wish to touch your feet……..
Contd..
-- HARSH SINGH
9
Department of Management Studies, IIT Roorkee
10
-An excerpt from the talks with industry people
In the month of January, Department of Management Studies, IIT Roorkee witnessed the presence of many guest speakers from the industry to address the first year students. The first and foremost speaker was the General Manager of THDC, Mr. Rakesh Khare. The next in the list was Mr. Ajay Agarwal. We also had Mr. B. Ram Mohan, currently VP (HR) at Everest Industries Ltd. The three of them enlightened the students on three different current topics. Mr.
Rakesh Khare conversed with the students on implications of
Corporate Social Responsibility and how they can help the society at large. Mr. Ajay Agarwal sensitized the students to the realities faced by management graduates once they step out into the real corporate world., and Mr. B. Ram Mohan threw light on the existing HR practices and problems faced henceforth.
Department of Management Studies, IIT Roorkee
11
Implications of Corporate Social Responsibility
THDC-Sewa is an initiative taken up by THDC under the guidance of Rakesh Khare, GM (S&E), THDC Ltd. We at DoMS had the privilege of having a session with Mr. Khare. This session threw light on the ground level implications of Corporate Social Responsibility. Corporate Social Responsibility (CSR), started initially as a
voluntary initiative in some companies, later caught on with the corporate world
over the last few decades. CSR became a standard best practice as per few countries’ corporate governance codes. Many other countries are contemplating inclusion of CSR initiatives as a standard corporate governance practice. It has become a competitive necessity rather than a nicety as once it used to be. The companies saw the benefit and the stakeholders appreciated the initiatives. Broadly though, companies have to work harder to maintain their reputation and the growth environment in which they do business. The program that THDC is presently doing is named as Participatory Rural Appraisal wherein a group of volunteers were deployed in a village in the remote areas of Uttar Pradesh with the object of making the village and thereby the villagers to be self-sustained and independent. For this, the group studied the demographics of the village and discovered the key areas of weaknesses and
opportunities as well. They then chalked out a plan which included generation of a
resource map so as to gauge the potential and thereby cause effective utilisation of the resources of the village, creating awareness and motivating the inhabitants of the village towards self employment for long term self-sustenance of the village. In this process the key areas of focus were education, health, environment, welfare, infrastructure, income generation and women empowerment. This initiative exemplifies CSR in true light. The lecture gave us an insight into the challenges faced while executing the process and alongside opened avenues for the students to participate in CSR programs under THDC.
--Rohini
Department of Management Studies, IIT Roorkee
“What to have” as a Management Graduate
Mr. Ajay Agarwal is a nationally acclaimed Corporate Trainer and
an HR consultant with his expertise in Energising People, Synergising Competencies HR consulting, Organisational Development Programmes and HR interviews. He has an intrinsic knack of gauging philosophy behind every success and failure which makes him a phenomenon in the industry today. The lecture started on a high note with the need and relevance of a management course in today’s corporate scenario. He went further discussing the role of a management graduate and the characteristic traits that need to be possessed; from a strong hold on fundamentals to effective interpersonal skills. He stressed on the need to be updated on information and also on the fact that maintaining a proactive approach is inevitable. Going a step further, to emphasise the importance of a balanced approach to achieve success he substantiated it mathematically i.e. Performance= Willingness X Ability which implies a balanced input would ensure an optimum output. The workshop aimed at improving self-confidence, interpersonal
12
skills and attitudinal change in our perceptions and proved to be a true
learning experience. The session ended on a high note with Mr. Ajay Agarwal showing an impressive video to encourage and motivate students that nothing is impossible if they really want it.
--Rohini
Department of Management Studies, IIT Roorkee
HR Practices
13
As we have progressed from the era of personnel management to the more holistic Human resource management, we now are faced with the challenges to make human resource management more effective through improved HR practices. This month we had with us Mr. B.Ram Mohan, currently VP (HR) at Everest Industries Ltd. which diversifies into different domains like steel building solutions, steel doors, cement sheets etc. Whilst having served at HAL, JK Tyres earlier he shared his experiences and learning at the different workplaces which he attributed to the difference in the organisational culture of different workplaces. Having had immense industry exposure, Mr. B. Ram Mohan threw light
on the existing HR practices and the problems faced henceforth. More
importantly he stressed on the challenges being faced by an HR manager in today’s scenario and brought forth the ten C’s (challenges) some of which include competence: war for talent, competition faced from other industries, compensation is another important factor which in turn is affected by the margin levels of the company. Also cost of manufacturing and confidence of the employees in the organisation play a key role in the decision making of an HR. Having brought forth the various challenges, Mr. B. Ram Mohan suggested ways to cope up with the challenges which include effective manpower utilisation and welfare employment which would result in confidence building and lower attrition rate. Moreover, another effective measure could be providing training, development and result oriented programs for the employees so as to build leaders from within the organisation
The session was enriching which gave an insight into the implications of
Human Resource Management into the today’s corporate scenario.
--Rohini
Department of Management Studies, IIT Roorkee
14
- Rajneesh & Anirudh DoMS, IIT-Roorkee It’s Exquizite, Kills your Quriosity and adds to your Quizdom. Need we say more? ‘Qutopia’ – A Utopia of the best Biz Quiz Tidbits to wreck your brains! Mail in your answers to [email protected], [email protected]. The winner will have their names published in the next issue. Answers in the next issue of DoMination.
1.
As per schedule, from April 2011, this is the accounting standards that will be implemented in India and will replace the existing Indian accounting standards. Name this new accounting standard which is aimed at providing a single set of globally accepted accounting and reporting system. These are financial instruments used by foreign investors that are not registered with the Securities and Exchange Board of India (SEBI) to invest in Indian Securities. What are these derivative instruments better known as? In the recently concluded IPL (Indian Premier League) Auction in January 2011, this player was the most expensive foreign player and was auctioned for $1.5 million. Name this stylish right handed batsman? This was the area where George Washington took his oath of office as the first President of the United States of America (USA) in 1789. In the contemporary world, this has become the biggest financial hub of the world having headquarters of many financial institutions including the New York Stock Exchange. What is this place better known as? These are standards providing best practice recommendations on information security management published by International Organization for Standardization (ISO) and International Electro-technical Commission (IEC). What are these standards better known as? Connect the following: Year 1937: "fertile rice paddies": Just in Time (JIT): Lexus
2.
3.
4.
5.
6.
Department of Management Studies, IIT Roorkee
15
1.
In 2010, this country overtook Japan as world’s second-largest economy behind USA in terms of GDP. Name this Asian giant? In the biggest financial scandal of 2010, this company was sued for fraud by the Securities and Exchange Commission (SEC) for Insiders trading concerned in a deal known as "Abacus". Name this company which finally in July 2010, settled with the SEC and had to pay a fine of $550 million. This was the largest IPO (Initial Public offer) in the history of Indian Stock Market. The $3.46 billion deal attracted $52.5 billion of demand and shot up by 40% on its first day of trading. Name this company that went to the primary market in October 2010. This program was launched in the tribal village, Tembhli in Nanurbar, Maharashtra on 29th September, 2010 which aims to give a unique identity to all Indians. Name this ambitious project of the UPA Government which will give a unique 12-digit number to every citizen of India and could be used in financial inclusion and accessing government programs by the masses.
2.
3.
4.
5.
In a first of its kind corporate event, in April 2010, this company shut down its Chinese operation in protest for what it termed as an attack on its servers by Chinese hackers which resulted in the mail accounts of Chinese human rights activists being unethically accessed. Name this modern day corporate giant which has its slogan as "Don't be evil".
This is the crisis which hit Europe in March 2010 following the financial recession of 2008-2009 and threatened to engulf the whole of the Eurozone countries. What is the name of this crisis which also risks the Euro and the European Union and has recently spread to Ireland?
6.
The Answers of Qutopia-12 are: 1. China 2. Goldman Sachs 3. Coal India IPO 4. UIDAI launched AADHAAR program(UID Project) 5. Google. 6. European Soverign Debt Crisis of 2010
Winners are: • Rakesh K. Sah – DoMS (2002-2002)
Hocus-Focus
16
Corpostrat, one of the few Centre Stage events of Cognizance, is the flagship event of the Department of Management Studies, IIT Roorkee. This is not just another B-Plan Contest that we are now used to seeing in almost every college event. This aims to get the best out of the contestants’ both idea wise and also tests their marketing, strategy and decision making skills. This time Corpostrat in collaboration with THDC has brought a real life problem. Further details are present on the website www.cognizance.org.
Department of Management Studies, IIT Roorkee
The Team
Editor
Animesh Agrawal
Sub-Editors:
Rohini Deep Pathak Sudeep Dakua
Design Team:
Animesh Agrawal Shruti Goel Anuj Mody
Contributors:
Paresh Kulkarni Chetna Yadav Udit Gupta Rohini Harsh Singh
Comments / Feedback Mail to: [email protected] Tel: 01332-285014, 285617, Fax: 01332-285565 Do Visit: http://www.iitr.ac.in/departments/DM/pages/Index.html Department of Management Studies, Indian Institute of Technology Roorkee, Roorkee Uttarakhand-247667
Animesh Agrawal: [email protected], [email protected], Mobile: 09368090764
Issue – 02
Fe bruary2011
Chlorophyll Greater than GodMy Mother
Focus
From Editor’s Desk
Dear Readers, This month we bring you yet another informative as well as a creative edition of Domination. DoMS has been a host to a lot of activities in the month gone by. From guest lectures to knowledge sharing sessions, it has been a month of learning to learn. We had with us various speakers from the industry to talk about diverse yet inter-related subjects like CSR, HR practices etc and their words of wisdom have been captured in the ‘Elite Talks’ section. “Conscious Capitalism is a term used to describe a business enterprise that seeks to be aware of the effects of its actions, and to consciously affect human beings and the environment in a beneficial way.” The cover article covers more about the recent wave of conscious capitalism and its effect on the many Indian companies following the same. Starbucks is ready to redesign its logo wherein the name has been dropped from the logo. Starbucks-A new Chapter dwells into its past and brings forth the rationale behind this step also eliciting the significance of the new logo. The case of Dabbawalas best exemplifies supply chain management, and the article deals with the case of Mumbai Dabbawalas, and the ingredients into its success story. The writer brings out a beautiful poem ‘Greater than God’ through the Chlorophyll section. The centrestage event of DoMS in Cognizance (the annual technical fest of IIT Roorkee) - “Corpostrat” in collaboration with THDC, brings a real life problem situation, and the contest invites entries for the solution to the problem. Discover more about it in this edition. Until next time keep discovering and keep learning!
Editor – “DoMination” (Department of Management Studies, IIT-Roorkee.)
Animesh Agrawal
Table of Contents
1
Conscious Capitalism Udit Gupta DoMS, IIT-Roorkee
4
Starbucks- A new Chapter Chetna Yadav DoMS, IIT-Roorkee
5
The case of Dabbawalas Paresh Kulkarni DoMS, IIT-Roorkee
10
Elite- Talks
7
147
Creative Section
Qutopia - 9
Rajneesh & Anirudh DoMS, IIT-Roorkee
Chlorophyll
-Fresh Green Creativity, right from the roots of DOMS through the leaves of this newsletter
Harsh Singh DoMS, IIT-Roorkee
Its wise to learn, Its GOD like to create
16
Hocus-Focus
Department of Management Studies, IIT Roorkee
Conscious Capitalism
- Udit Gupta
1
DoMS, IIT-Roorkee
Businesses have a choice to make. They can keep chasing the narrow goal of maximizing profits. Or, they can realign themselves to larger goals. In times to come, they might not even have a choice. After the economic crisis of 2008, companies have started looking for more humane ways of doing business just as profitably they were doing before so as to give regard to values and to improve people’s lives. One of the ways that is emerging is Conscious values like respect for employees, customers, suppliers, contractors, other businesses and the environment. In USA there are institutes and alliances like Conscious Capitalism
Institute and Conscious Capitalism Alliance, which helps the companies in making the transition. In India, too, there are
Capitalism.
Conscious Capitalism pursues the triple
bottom-line approach: people, planet and profits instead of just one (profits) pursued by Capitalism. Conscious Capitalism and what it entails is not philanthropy, as it’s not charity. It’s more than Corporate Social Responsibility (CSR), as it’s about doing business, not being divorced from it. It’s not even a social business, as social good is one of its several objectives, not the overriding one. Conscious Capitalism is a business model that shares the philosophy of ‘me to we’ – the notion that our own lives improve when we focus on improving the lives of the others. A company that is really interested in Conscious
organizations like ChittaSangha and CoEvolve,
which are working with companies to develop leaders who can ease the transition from creating shareholder value to creating multistakeholder value. Following companies in India are already treading the path of Conscious Capitalism: Forbes Marshall: Forbes Marshall found that though scheduled castes and scheduled tribes formed a quarter of the country's population, they accounted for only 6.8% of its workforce. So it decided affirmative action, rather than reservations, was the way to fix this demographic kink. The company has adopted a four-point plan put forth by the
Capitalism would have to embrace ethical
Department of Management Studies, IIT Roorkee
Conscious Capitalism
2
Contd..
Confederation of Indian Industry: direct employment, improving employability, developing entrepreneurship, and primary and secondary education. The philosophy is to provide extra inputs to the underprivileged to make them more competitive. Mahindra & Mahindra: Mahindra & Mahindra is transforming its tractor-selling outlets by adding a repository of agricultural information and advice to farmers. The new name of these outlets is Samriddhi (or 'prosperity'). Farmers can come here to buy tractors. Irrespective of whether they own a Mahindra tractor, they can come here to solve their agricultural problems. Every Samriddhi centre has an agricultural expert and a lab technician. Their approach to farmer problems is intensive and scientific. When a farmer walks into a Samriddhi centre, the expert asks him about his problem and farming practices. The nature of intervention is varied: for instance, lab tests on the farmer's land and crop, advice on croprotation schedules and fertilizers, demonstration of farming techniques or different seeds. Advice is free, supplies are charged for. It has worked with about 50,000 farmers in the last two-and-a-half years. So far Mahindra has transformed all its 92 dealer outlets, with plans to increase to 125 by March 2011. Marico: It is in the business of cooking oil, yet FMCG major Marico spends time and money telling people to go easy on it. Its good business: Marico positions Saffola, its cooking-oil brand, as a healthy oil. It's also a belief system. Saffola is made in such a way
that consumers use less of it than other oils, so in a commodity category, what the Saffola brand stands for gets reinforced. The company reinforces this belief system -consume less oil -- in many ways. It has a 9 am-6 pm phone line, where anyone can talk to a nutrition expert for diet-related queries. And, no, the expert doesn't plug Saffola. Time and again, through various mediums, it sensitizes and incentivizes people to know the state of their heart. In 2009-10, for example, with every pack of Saffola Functional Food, it gave away two coupons for a free lipid-profile test. The Saffola Healthy Heart Foundation, set up by Marico in 1991, holds free heart and cholesterol check-up camps and walkathons. For heart patients, it holds a cardiac rehabilitation workshop, which includes sessions by cardiologists, dieticians and physiotherapists; in 2009-10, its first year, and 14000 heart patients attended these workshops. That many of them prefer Saffola for cooking shows healthy practices can be healthy business too. PepsiCo India: In 2009, PepsiCo India used 5.17 billion litres of water for its products. The same year, it saved or put back 6 billion litres - 830 million litres more than what it consumed -- into the system, according to figures released by the company and verified by audit firm Deloitte Touche Tohmatsu India. It was even more important for PepsiCo India since they were accused of depleting water resources. PepsiCo India has achieved a 'positive water-balance' through three steps:
Department of Management Studies, IIT Roorkee
Conscious Capitalism
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One, the company helped its contract farmers change the way they planted paddy. Instead of flooding the fields, it gave them a directseeding machine, which could be mounted on a tractor. This reduced water consumption by 30-40%. The direct-seeding programme, which covered 6,500 acres across five states, saved about 4.7 billion litres of water. Two, it built check dams and recharge ponds around its plants. It trapped rain water, and diverted some of it to people around the area for farming or drinking. For instance, in Aurangabad, a water-scarce area where it has a plant, it constructed 13 check dams and recharged over 100 wells. This has created the potential to recharge 700 million litres of water and benefited 12,000 villagers. Three, all its plants have rain or roof water harvesting, which brings in 133 million litres. In 2002, PepsiCo India started 'revaluing' water as a resource. In 2009, it became the first company in PepsiCo to become waterpositive. The Indian arm now plans to extend its outreach to its bottling franchisees and supply-chain partners. And the parent plans to replicate this in other water-scarce markets like China. Tata Steel: One of the 'articles of association' of Tata Steel says: "The Company shall be mindful of its social and moral responsibilities to consumers, employees, shareholders and the local community." That thought in mind, Tata Steel built the city of Jamshedpur to house people working in the company's plant there. All civic amenities in the 103-year-old city are managed by Tata Steel's subsidiary Jusco. It spends about Rs 100 crore a year on
the city's development and maintenance. Jamshedpur was built from scratch. Today, the focus is on displacement of people for projects. Tata Steel, which has captive iron ore and coal mines, has a policy for minimum displacement. In 1979, it set up Tata Steel Rural Development Society (TSRDS) as a subsidiary to address the needs of people near its plants and mines in Jharkhand and Orissa. Funded by Tata Steel, TSRDS promotes integrated rural development. Its goals include drinking water, health and hygiene, education, environmental awareness, youth development and income-generation programmes. For instance, 75% of the population in Ganjam district in Orissa depended on agriculture, but they were migrating to cities due to lack of water. Ganjam is close to Gopalpur, where Tata Steel faced opposition to its steel project in the nineties. In 2005, TSRDS started reviving 29 lift irrigation projects there, which it completed in 2009-10. Conclusion The old paradigm of maximizing profits and shareholder values as the sole purpose of business has created negative unintended consequences. Business needs to become holistic and integral with deeper more comprehensive purposes. If business owners/entrepreneurs begin to view their business as a complex and evolving interdependent system and manage their business more consciously while fulfilling their highest business purpose, we would begin to see the hostility towards capitalism and business disappear.
Department of Management Studies, IIT Roorkee
Starbucks- A new Chapter
- Chetna Yadav
In March, Starbucks will celebrate their 40th anniversary with the launch of a new logo and identity. Coca-cola, Pepsi, and Mountain Dew and many more, have all gone through major rebranding of their logos. One thing in common though – none of them dropped the name from the logo. This leaves many, wondering why Starbucks would even consider dropping the “Starbucks” name from the logo. Probably there comes a point where the logo is synonymous with the name (Pepsi, Nike, McDonalds, etc). But is Starbucks there yet? Since the original Starbucks opened in the seventies, the Starbucks logo has always had a round-shaped siren. It started as brown and white, and then later evolved to include green. The green circle, regardless of what’s in the centre, is identified worldwide as a Starbucks beverage .Now, facing new market entries and attempting to get away from the snobby Starbucks stigma, the beverage giant has decided to drop the circle around the siren touting “Starbucks.” The Wall Street Journal reported that the new logo represents the company's newfound emphasis on becoming a consumer packaged-goods company, as well as the idea that Starbucks might have other products that don't have coffee in them at all. Howard Schultz, the C.E.O. says that“The new logo embraces and respects their identity plus evolves the company to a point that’s more suitable to the future. The logo is at the core the same –
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DoMS, IIT-Roorkee
the love of the coffee – but by changing it allows the company to move beyond just being a purveyor of coffee. Starbucks will continue to offer the highest-quality coffee, but will offer other products as well – and while the integrity, quality and consistency of these products must remain true to who we are, our new brand identity will give us the freedom and flexibility to explore innovations and new channels of distribution that will keep us in step with our current customers and build strong connections with new customers.” Starbucks' ventures into more widespread retail channels, such as grocery stores, drug stores, discounters, and other venues aren't new. Nor is the idea that folks can get non-coffee items under the Starbucks brand. But fiddling with a venerable logo can sometimes leave unwary companies badly scalded. Last October, Gap briefly changed its own tried-and-true logo to a widely mocked and quickly discarded new version, in what many observers still regard as a massive gaffe. Although that was a complete change and this one is just a simplification of an already existing mark. CEO Howard Schultz caused a ruckus when he talked in 2007 about the possibility that the coffee giant was "losing its soul." Now, thanks to the new logo heralding the company's 40th anniversary, it's definitely lost something else: the word "coffee." and "Starbucks," for that matter.
Department of Management Studies, IIT Roorkee
The case of Dabbawalas
- Paresh Kulkarni
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DoMS, IIT-Roorkee
Just the other day I was going through the books I came across a jargon “Supply chain Management” and “Mumbai Dabbawalas”. Let’s explore more about this interesting topic. Gartner (2000) defined Supply Chain The case of Mumbai Dabbawalas Everybody must have heard a lot about the supply chain management systems used by the Mumbai Dabbawalas and the global accolades they have received. From
presentations at Harvard Business School to the Special visit of Prince Charles, they have received the six-sigma, ISO certification and the limelight like never before. These days they speak about the organizational structure, working style, and delivery systems of their organization. The Need Mumbai has a population of 13,830,884 and the Mumbai Metropolitan Area has a
Management as the set of processes that accomplish “the delivery of goods, services and information”. Supply chain management has roots in the focus on lean and efficient manufacturing. These lean efficiencies were driven by corporations initiating cost saving changes to the business process. Supply chain management is seen as a process-driven approach to streamline the business.
Supply chain management has at times been
referred to as “logistics”; however there is a difference - supply chain management are those activities, departments, organizations or firms that network together to deliver a product to market. The supply chain typically includes the functions or organizations of: planning, supplier management, operations, logistics and material control.
population of 21,347,412. Every morning
there are over 10 million train commuters and bus passengers making interminable trips to offices mostly located in the South Mumbai. But most of them spend more than 90 minutes to reach office. So these people are not able to pick their lunch packed from home, so early in the morning. This is where “Dabbawala” comes into
Department of Management Studies, IIT Roorkee
The case of Dabbawalas
action and picks lunch boxes from various houses and deliver 2,00,000 lunch boxes on time & to the respective persons. The Secret Mumbai Dabbawala have achieved
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wanted to meet them, they gave him a precise time slot so that the thousand customers would not have to skip their lunch. Pride in their work makes them move about their mission briskly with a smile, making sure they are never late. Spirituality plays an important role in relieving the day's stress. They regularly chant songs of praise to the Lord. They truly embody a living where one looks beyond materialistic
unprecedented success in the areas of Supply chain logistics, reverse supply chain logistics, time management, customer relationship, customer & employee satisfaction, and cost effectiveness. Another important feature is the processing in transit like sorting, coding done during train travel. Looking at the core of their business, it is more human intense service, majority employee less educated, delivery of service dependent on many external factors like local trains, weather conditions, etc. In spite of all this, they are
earnings and serves with commitment for a cause. The Learning Supply chain management needs to be applied with proper consideration for
processes, human capital and other external factors. Only then it can help to provide cost
successful because of:
Honesty and Integrity having strong roots in their culture results in efficient team work. Discipline and Time Management can be judged from the fact that when Prince Charles
efficient and reliable delivery of goods &
services, beyond customer’s expectation. This helps organizations to develop unmatched core competency, giving strategic advantage in long run.
Department of Management Studies, IIT Roorkee
-Fresh Green Creativity, right from the roots of DOMS through the leaves of this newsletter
Greater than god…… my mother
One day to know my greatest asset my mind tried, To get the answer my thought’s took a ride, In my core’s each and every side, And in this universe so wide, But that answer my soul tried to hide , And sometimes it lied, But I kept on searching in the tide, And slowly the answer demystified, And with a sudden joy and tears I cried. Of my imperfections the world makes me aware, All my vulnerabilities it bares With prospects so bleak, Deep within I feel so weak,
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Department of Management Studies, IIT Roorkee
Greater than god…… my mother
Contd..
But when you say in this whole world east or west , My son is the best, I ride a new energy crest, In your love’s nest ,life seems like a fest, For everything I feel a new zest, Moving all around I have only found, showering love that knows no bounds, it’s the woman no other, but it’s only you oh! sweet mother. I ask between god and you who’s greater, God I yet haven’t seen, But a witness of your love’s bliss I have been,
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Department of Management Studies, IIT Roorkee
Greater than god…… my mother
To help those in pain, woman who’s so keen, In you an idol of compassion I’ve seen, So simple and kind in this world so mean, All I am is only due to your beautiful hearts sheen, When in lands far away,I see on street, Feeling this cruel world’s heat, A mother embracing his child with love, And caring him in a way so sweet, Beauty of this moment my soul wishes to greet, Feeling you in the sky,in the air, And in nature’s every beat, Oh! Dear mother I wish to touch your feet……..
Contd..
-- HARSH SINGH
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Department of Management Studies, IIT Roorkee
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-An excerpt from the talks with industry people
In the month of January, Department of Management Studies, IIT Roorkee witnessed the presence of many guest speakers from the industry to address the first year students. The first and foremost speaker was the General Manager of THDC, Mr. Rakesh Khare. The next in the list was Mr. Ajay Agarwal. We also had Mr. B. Ram Mohan, currently VP (HR) at Everest Industries Ltd. The three of them enlightened the students on three different current topics. Mr.
Rakesh Khare conversed with the students on implications of
Corporate Social Responsibility and how they can help the society at large. Mr. Ajay Agarwal sensitized the students to the realities faced by management graduates once they step out into the real corporate world., and Mr. B. Ram Mohan threw light on the existing HR practices and problems faced henceforth.
Department of Management Studies, IIT Roorkee
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Implications of Corporate Social Responsibility
THDC-Sewa is an initiative taken up by THDC under the guidance of Rakesh Khare, GM (S&E), THDC Ltd. We at DoMS had the privilege of having a session with Mr. Khare. This session threw light on the ground level implications of Corporate Social Responsibility. Corporate Social Responsibility (CSR), started initially as a
voluntary initiative in some companies, later caught on with the corporate world
over the last few decades. CSR became a standard best practice as per few countries’ corporate governance codes. Many other countries are contemplating inclusion of CSR initiatives as a standard corporate governance practice. It has become a competitive necessity rather than a nicety as once it used to be. The companies saw the benefit and the stakeholders appreciated the initiatives. Broadly though, companies have to work harder to maintain their reputation and the growth environment in which they do business. The program that THDC is presently doing is named as Participatory Rural Appraisal wherein a group of volunteers were deployed in a village in the remote areas of Uttar Pradesh with the object of making the village and thereby the villagers to be self-sustained and independent. For this, the group studied the demographics of the village and discovered the key areas of weaknesses and
opportunities as well. They then chalked out a plan which included generation of a
resource map so as to gauge the potential and thereby cause effective utilisation of the resources of the village, creating awareness and motivating the inhabitants of the village towards self employment for long term self-sustenance of the village. In this process the key areas of focus were education, health, environment, welfare, infrastructure, income generation and women empowerment. This initiative exemplifies CSR in true light. The lecture gave us an insight into the challenges faced while executing the process and alongside opened avenues for the students to participate in CSR programs under THDC.
--Rohini
Department of Management Studies, IIT Roorkee
“What to have” as a Management Graduate
Mr. Ajay Agarwal is a nationally acclaimed Corporate Trainer and
an HR consultant with his expertise in Energising People, Synergising Competencies HR consulting, Organisational Development Programmes and HR interviews. He has an intrinsic knack of gauging philosophy behind every success and failure which makes him a phenomenon in the industry today. The lecture started on a high note with the need and relevance of a management course in today’s corporate scenario. He went further discussing the role of a management graduate and the characteristic traits that need to be possessed; from a strong hold on fundamentals to effective interpersonal skills. He stressed on the need to be updated on information and also on the fact that maintaining a proactive approach is inevitable. Going a step further, to emphasise the importance of a balanced approach to achieve success he substantiated it mathematically i.e. Performance= Willingness X Ability which implies a balanced input would ensure an optimum output. The workshop aimed at improving self-confidence, interpersonal
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skills and attitudinal change in our perceptions and proved to be a true
learning experience. The session ended on a high note with Mr. Ajay Agarwal showing an impressive video to encourage and motivate students that nothing is impossible if they really want it.
--Rohini
Department of Management Studies, IIT Roorkee
HR Practices
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As we have progressed from the era of personnel management to the more holistic Human resource management, we now are faced with the challenges to make human resource management more effective through improved HR practices. This month we had with us Mr. B.Ram Mohan, currently VP (HR) at Everest Industries Ltd. which diversifies into different domains like steel building solutions, steel doors, cement sheets etc. Whilst having served at HAL, JK Tyres earlier he shared his experiences and learning at the different workplaces which he attributed to the difference in the organisational culture of different workplaces. Having had immense industry exposure, Mr. B. Ram Mohan threw light
on the existing HR practices and the problems faced henceforth. More
importantly he stressed on the challenges being faced by an HR manager in today’s scenario and brought forth the ten C’s (challenges) some of which include competence: war for talent, competition faced from other industries, compensation is another important factor which in turn is affected by the margin levels of the company. Also cost of manufacturing and confidence of the employees in the organisation play a key role in the decision making of an HR. Having brought forth the various challenges, Mr. B. Ram Mohan suggested ways to cope up with the challenges which include effective manpower utilisation and welfare employment which would result in confidence building and lower attrition rate. Moreover, another effective measure could be providing training, development and result oriented programs for the employees so as to build leaders from within the organisation
The session was enriching which gave an insight into the implications of
Human Resource Management into the today’s corporate scenario.
--Rohini
Department of Management Studies, IIT Roorkee
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- Rajneesh & Anirudh DoMS, IIT-Roorkee It’s Exquizite, Kills your Quriosity and adds to your Quizdom. Need we say more? ‘Qutopia’ – A Utopia of the best Biz Quiz Tidbits to wreck your brains! Mail in your answers to [email protected], [email protected]. The winner will have their names published in the next issue. Answers in the next issue of DoMination.
1.
As per schedule, from April 2011, this is the accounting standards that will be implemented in India and will replace the existing Indian accounting standards. Name this new accounting standard which is aimed at providing a single set of globally accepted accounting and reporting system. These are financial instruments used by foreign investors that are not registered with the Securities and Exchange Board of India (SEBI) to invest in Indian Securities. What are these derivative instruments better known as? In the recently concluded IPL (Indian Premier League) Auction in January 2011, this player was the most expensive foreign player and was auctioned for $1.5 million. Name this stylish right handed batsman? This was the area where George Washington took his oath of office as the first President of the United States of America (USA) in 1789. In the contemporary world, this has become the biggest financial hub of the world having headquarters of many financial institutions including the New York Stock Exchange. What is this place better known as? These are standards providing best practice recommendations on information security management published by International Organization for Standardization (ISO) and International Electro-technical Commission (IEC). What are these standards better known as? Connect the following: Year 1937: "fertile rice paddies": Just in Time (JIT): Lexus
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Department of Management Studies, IIT Roorkee
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1.
In 2010, this country overtook Japan as world’s second-largest economy behind USA in terms of GDP. Name this Asian giant? In the biggest financial scandal of 2010, this company was sued for fraud by the Securities and Exchange Commission (SEC) for Insiders trading concerned in a deal known as "Abacus". Name this company which finally in July 2010, settled with the SEC and had to pay a fine of $550 million. This was the largest IPO (Initial Public offer) in the history of Indian Stock Market. The $3.46 billion deal attracted $52.5 billion of demand and shot up by 40% on its first day of trading. Name this company that went to the primary market in October 2010. This program was launched in the tribal village, Tembhli in Nanurbar, Maharashtra on 29th September, 2010 which aims to give a unique identity to all Indians. Name this ambitious project of the UPA Government which will give a unique 12-digit number to every citizen of India and could be used in financial inclusion and accessing government programs by the masses.
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In a first of its kind corporate event, in April 2010, this company shut down its Chinese operation in protest for what it termed as an attack on its servers by Chinese hackers which resulted in the mail accounts of Chinese human rights activists being unethically accessed. Name this modern day corporate giant which has its slogan as "Don't be evil".
This is the crisis which hit Europe in March 2010 following the financial recession of 2008-2009 and threatened to engulf the whole of the Eurozone countries. What is the name of this crisis which also risks the Euro and the European Union and has recently spread to Ireland?
6.
The Answers of Qutopia-12 are: 1. China 2. Goldman Sachs 3. Coal India IPO 4. UIDAI launched AADHAAR program(UID Project) 5. Google. 6. European Soverign Debt Crisis of 2010
Winners are: • Rakesh K. Sah – DoMS (2002-2002)
Hocus-Focus
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Corpostrat, one of the few Centre Stage events of Cognizance, is the flagship event of the Department of Management Studies, IIT Roorkee. This is not just another B-Plan Contest that we are now used to seeing in almost every college event. This aims to get the best out of the contestants’ both idea wise and also tests their marketing, strategy and decision making skills. This time Corpostrat in collaboration with THDC has brought a real life problem. Further details are present on the website www.cognizance.org.
Department of Management Studies, IIT Roorkee
The Team
Editor
Animesh Agrawal
Sub-Editors:
Rohini Deep Pathak Sudeep Dakua
Design Team:
Animesh Agrawal Shruti Goel Anuj Mody
Contributors:
Paresh Kulkarni Chetna Yadav Udit Gupta Rohini Harsh Singh
Comments / Feedback Mail to: [email protected] Tel: 01332-285014, 285617, Fax: 01332-285565 Do Visit: http://www.iitr.ac.in/departments/DM/pages/Index.html Department of Management Studies, Indian Institute of Technology Roorkee, Roorkee Uttarakhand-247667
Animesh Agrawal: [email protected], [email protected], Mobile: 09368090764
