DoMination April 2013

VOLUME-IV ISSUE-03 APRIL 2013
D OMINATION
NEWSLETTER FROM DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Editorial
Dear Readers, It is the month of April. As the new financial year is on, we present you another thought provoking issue of DoMination from the inquisitive minds. The edition covers a number of articles from a diverse and interesting set of subjects. The cover story Rethinking Business is written by Ashish Aggarwal and deals with the idea of organizational agility in modern day organizations. Another equally appealing piece is the Brand Tribalism authored by Manish Rajwar. It tries to illustrate some key characteristics and trends in the field of marketing. Recent budget has already created a lot of waves both for general public and experts. This edition takes a dig into one of the vital aspect of Taxing High Net worth individuals, written by Abhay Kumar and Sharad Srivastava. It is an attempt to gauge the effect of the policy for government, public and other stakeholders. Apart from these stimulating articles, DoMination is also rich in terms of fun quotient. This month has another round of quiz for curious minds. Further it also contains a beautiful poem Winner by Vaibhav Shrivastava. It is always good to listen to industry leaders. This edition presents an interview of Sneh Mahiwal. Sneh is a 2010 batch pass out of DoMS and currently working in Shipping Corporation of India. We also have a success story of Mr. Vijay Shekhar Sharma, founder and CEO of one97, a telecom products and services company. We hope these articles will be helpful for the budding managers and leaders. Recently we have witnessed Avyudaya, the operations summit which was successfully conducted in DoMS. The event was attended by some eminent industry experts and proved to be very useful for the students. The edition includes a report on the event, and other major details. We hope that the current edition will be liked by you. As we are constantly trying to improve the magazine, your guidance is most welcome. Please feel free to write to us for any suggestions & comments. Happy Reading...
rds a g e R ination M o D Team
02 | DOMINATION, APRIL 2013 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Contents
Faculty Advisor
Dr. R. L. Dhar
04
Team DoMination
Abhay Kumar Arun George Nilaya Shankar Priyank Singhal Rohan Krishnan Saurabh Paul Sharad Srivastava
07
11
Designing Team
Ritesh Kumar Sabhariswaran P Saurabh Patel
23
12 18
DEPARTMENT OF MANAGEMENT STUDIES INDIAN INSTITUTE OF TECHNOLOGY ROORKEE
15
Roorkee - 247 667, India Tel: +91-1332-285014, 285617 Fax: +91-1332-285565 Email: domination.doms.iitr@gmail.com
17
Cover Story
Business-Competing through organizational agility

Organizational agility of a company implies that an organization is active in understanding the changes and reacting to them. The main challenge for an organization these days is not just to continue its operations but to react to changes that happen in the economy. The business environment is changing every day in terms of trends, standards, competitions, technology, opportunities etc. Only those organizations these which and foresee react changes ability of the organization to make a new game plan when a new opportunity emerges or change the strategy of profit making when some business units are not working as expected. The strategy also includes understanding market growth in a particular business unit and applying its resources to maximize the revenue. Portfolio agility means maximizing its revenue through effective sources utilization in business of reareas strengthen supply chain and reduce the overall cost of the production. Today the market has become price sensitive because of which we cannot increase the price of the product so the only way to remain profitable is to reduce the manufacturing cost. There are some companies which have leverage on its organizational agility. One of those companies is Toyota. Toyota has been highly successful in its supply chain management and its constant improvement. Toyota follows the practice of Kaizen which means continuous improve-
where profitability is more and revenue growth is expected to be better. Operational agility is defined as the way to
quickly to them thrive in todays world. Strategic agility is the
Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez Ieconomie | DoMS Spotlight

ment . Its competitors are not able to imitate its supply chain structure which is why they have not been able to beat Toyota , the largest seller of automobiles the world over. Strategic Agility: The strategic planning model which uses the core concept of documenting and a step -by-step analysis of ways for an organization to reach its goals is considered to be obsolete in todays business environment. The basic flaw here was that the model worked on the assumption that business conditions the world over remain constant over time. When we are not confidentially able to predict the market conditions for six months or a year, our planning and results are seldom coherent. In todays scenario what we require is strategic thinking as compared to strategic planning. logical, Strategic planning is a linear, step-by-step incomplete information and time pressure. Strategic thinking is continuously looking at linear as well as nonlinear paths for opportunity. Strategic planning is end to end whereas strategic thinking has no end. Strategic agility is the ability of an organization to remain flexible and to develop innovative ways to create value. It is about being an opportunist rather than being rigid. Strategic agility is formed by the combination of these three capabilities. Strategic Sensitivity which refers to sensing of growing trends and converging forces at real time pace. It is achieved by the high level of attention to the market. Leadership Unity which refers to the capability of the senior management to take a quick decision in the event of a new opportunity/development even if the complete data is not available. It refers to the ability of the leadership to understand the strategic change and the choices it can produce. Top leadership needs to take a decision fast enough to capitalize on the opportunity. Resource Fluidity is the capability to reconfigure the business system and redeploy the
Rethinking business-competing through organizational agility
process for an organization to reach its goals, whereas strategic thinking is grabbing any new opportunity and capitalizing on opportunities even with

resources rapidly. The company should be capable to redeploy its resources to a new business development which is more profitable than the rest. Nokias Experience in strategic agility A former President of Nokia captured the point succinctly, Five to Ten years ago you would set your vision and strategy and then start following it .This does not work anymore. Now you have to be alert every day, week and month to renew your strategy.Nokia being an old company whose business was forest products, rubber and cables transformed into an entirely telecom based company is a brilliant example of strategic agility. Nokias success story From the 1860s to the 1950s Nokia had been primarily a company based on forest products. Since then it was transformed into a diverse conglomerate. Nokia had always looked for innovation and diversification which led it to enter into insulated cables making business in 1960s and then to mobile handset company by acquiring Mobira in 1970s. In the late 1980s it was in deep trouble due to the fall of the Soviet Bloc in 1989 followed by that of the Soviet Union two years later which was its main dealers. In a short run Soviet demand plummeted which reduced the telecom business of Nokia to half. The senior management was under immense pressure and the last option was to be acquired by Ericsson. This was the time when Nokia showed its strategic agility in sensing the opportunities in telecom sector which led to its overwhelming growth in this sector.

Rethinking business-competing through organizational agility

tion, Nokia started learning how to deliver end to end services to small scale operators. Simultaneously Nokia also anticipated the emergence of new private operators in the market with which they do business. Nokia sensed the likelihood of full digitalization of the network. It used to rely on Intel processors for its semiconductor chips. Nokia realized the implication of fully digitalization to a better effect than its competitors. Nokia committed early to the emerging European Nokia digital GSM Mobile communication standard. also started building relationships with new independent mobile network operators. In early 1990s when the GSM market took off Nokia had already struck a deal with a new operator. This shows the strategic agility of Nokia which led it to a wonderful growth over the years. By: Ashish Aggarwal ashish_ar122@yahoo.co.in DoMS, IIT Roorkee (2012-2014)
Nokia sensed that the Government was likely to invite new entrants to provide mobile services on a commercial competitive basis all over the world. With its experience of serving local service providers in Finland and with market liberaliza-
Perspective
BRAND TRIBALISM
Do we have anything in us, living in a post-modern society, in common with the primitive tribes like the one shown in the super hit 1980 film "Gods Must Be Crazy"? According to Marketing Gurus, the answer seems to be "Yes". In fact they have a term where they term us as tribesBrand tribes, to be precise. So what does it mean? According to Wikipedia, A brand tribe can be defined as a network of varied persons who are linked by a shared belief around a brand; its members are not simply consumers, they are also believers and promoters. A brand tribe is capable of collective action and therefore has implications for post-modern business. According to Veloutsou and Moutinho (2009), "In todays postmodern society there exists a network of societal micro-groups in which individuals share strong emotional links, a common sub -culture and a vision of life." They are called the BrandTribes. A brand-tribe goes beyond brand loyalty in the sense that brand loyalty means that you buy the particular offering from the brand again and again whereas the brand tribe would buy the associated offerings too. For example being loyal to Disney brand means you would watch Disney movies again, while being a member of a brand tribe means that you may choose to buy associated merchandise like Water Bottles with pictures of Disney characters. So, the new postmodern brand-tribe is in fact no different from the ancient tribes except in one respect. Since the modern society is multi-faceted, we may be
07| DOMINATION, APRIL 2013 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Brand Tribalism
members of multiple brandtribes in same and different areas at the same time. Background: Brand Tribalism is a fairly new concept which can be traced back to two researchers in particular. The first one is Michel Maffesoli who published "The Time of the Tribes: The Decline of Individualism in Mass Society" in 1996. The next is the Bernard Cova
used more frequently. The most prominent book on the subject- " Tribes: We Need You to Lead Us" is written by Seth Godin. How it Works: There are 5 things which describe a brand tribe: Joining the tribe/ Initiation: This is the step when the consumer decides to associate himself/ herself to the brand. Some say that it is when the
I am not part of the iPhone tribe. In fact, I am still a 'wannabe'. However, since I may still display some of the characteristics of an iPhone owners club, I may be termed as a non-profiting member of the brand tribe.
Rituals: A brand tribe ritual
is a set of things you do to show affiliation to a brand. The annual HOG's (Harley Owner Group) gathering is an excel-
who mentioned it in two of his researches "Relationship Marketing: A View from the South" and "Community and Consumption: Towards a Definition of the Linking Value of Products or Services" in 1997 and has been improving on this theory. There have been a lot of other researches which point out to evidence of such a phenomenon. In popular business literature too, this term is being
consumer uses your product or service for the very first time whereas others argue that it begins well before that, when they first fixate on your product/ service as their choice. The promoters of the first stream of thought argue that since a lot of customers don't end up buying the product of their choice due to various reason, they don't qualify. For example, I love the iPhone. However, since I cannot afford an iPhone,
lent example of a brand- tribe ritual.
Shared beliefs: This is a no-
brainer. People want to associate themselves to a brand tribe because they believe in it. For example, irrespective of yearon-year results, Manchester United Fans continue to believe that their club is the best football club in the world.
Symbolism: Symbolism are
things you do to show affiliation to your tribe without any
Brand Tribalism
particular occasion. For example, people dress up as their favorite characters, such as Elvis Praisley or Ghazini, to show their affiliation to the brand tribe for that particular character. People bought Star-Wars merchandise like Light Sabers and Darth-Vader masks as symbols of their brand-tribe affiliation to Star-Wars movie franchise.
where. The most prominent one's which turned bitter are Mac OS users vs Windows users and Apple iPhone vs Samsung Galaxy users. What is the evidence? Although few studies provide empirical relationships, there have been myriad examples highlighted by researchers which throw light on this phenomenon. An early study which signaled the presence of brand tribes was on Harley Davidson Owners Group by Schouten and Alexander in 1995 which led to concentrated marketing efforts including the formation of Harley Davidson Owners Group (HOGS) and the annual motorcycle rally organized by them. It helped the company strengthen its brand and maintain a significant market share even in the presence of nimbler competition. Another study which emphasizes the importance of brand tribes is on Toyota Prius in Portugal. After selling only 50 1st generation Prius in Portugal, the company tried to promote it widely with the launch of 2nd generation
model in 2005. As part of that market awareness exercise, it organized a meeting with existing Prius owners which can be viewed as the first tribe ritual. Later, a consumer created an online community Prius PT, which has over 900 members who are owners, prospects or simply people curious to know about the Prius. Over 100 members actively engage and share experiences and respond to queries. They know each other personally. All this has led to a boost in sales of the Prius model in Portugal. However, ignoring consumers can also lead to creation of tribes. One of consumers of a renowned computer company faced trouble with his newly bought laptop and the tedious response of the servicing centre. He wrote a blog about it. Garnering a huge amount of response from people facing problems with their devices of the same brand, he launched a site which organized people who were facing troubles with their devices of the same brand. The negative word of mouth publicity so
Recruiting new Members: their brand tribe
People try to recruit new members to through word of mouth publicity. You can find numerous such examples on product selling websites where existing users try to convince people to buy one particular product. Some even go on to the extent of gifting you the item in the hope that you will appreciate it and start using it.
Defending your tribe: It is
the most advanced level of brand-tribalism where you actually start defending your brand-tribe against that of the competitor. For example you may have seen rubbishing a competitor's product on any of the social media sites or else-
Brand Tribalism
generated affected quarterly sales. The company ultimately paid attention and started resolving the problems one by one. Today, the site still exists, albeit under the ownership of the company. All problems posted on it are addressed within a day. Many other anti brand sites such as anti-WalMart, anti-MacDonalds and anti-Starbucks exist and have been studied which shows that such sites have a negative influence. Companies must address their problems in order to save their image and market share.
What are its implications for the Marketers? A brand tribe has some very distinct advantages like: Free publicity through Word Strong associations The lower cost of acquiring of Mouth Advertising

actively try to create a brandtribe. The initial members must be recruited with enthusiasm. Current users must be amazed regularly and members of a rival-brand tribe should be wooed so that the feeble associates may be weaned away. The growing evidence of brand tribes has led to rise of a few consulting firms which specialize in helping companies create their very own brand tribes. In these rapidly changing times, all firms, big and small need to create their own brand tribe to survive in the long run.
new customers as existing customers bring more customers
Higher purchases of brand Lower cost of defending Future versions sell like hot In the wake of the above
and associated merchandise
your brand
cakes from day one advantages, marketers must
By: Manish Rajwar rajwarmanish@gmail.com DoMS, IIT Roorkee (20122014)

Its wise to learn, its GOD like to create
Chlorophyll
WINNER
People with pretence, People with parallel perceptions. Hatred with deep abhorrence, Relations like faked connections. Amongst them, caught up is you, Caring for people and their views. The jolt of punch from the fate, Impulsive enough to push you in the race. Now, you run, you run hard, No people, no fate, just win on your card. Dont recognize failure, As you never learnt to lose. All you know is to win, All you have to choose.
ByVaibhav Shrivastava vaibhav.iitroorkee@gmail.com DoMS, IIT Roorkee (2012-2014)
Qutopia
Its 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! Rush in your answers to domination.doms.iitr@gmail.com before 3oth April, 2013. The winner will have their names published in the next issue. Also, person getting the highest score in the current quarter (Apr-Jun 2013) will get a gift voucher. Answers in the next issue of DoMination.
Section A
(1 Point for each correct answer)
1) Which is the second brand to be launched by Maruti after 800? 2) THE ROOTS a Chennai band, was a quartet comprising John Antony, Jojo, X and Y. Identify X and Y. 3) Which is the existing oldest football competition in the world outside Britain? Also identify the host country. 4) What was established in 1988 by government of India in collaboration with Russia as a result of refusal by Cray research to provide super computers to India? 5) This company started a social networking project with a code name which was named after a painting by Albert Bierstadt. Name the company. 6) This policy seeks to strengthen Indias relationship with South East Asian nations. This policy is known as........................................
Qutopia
Section B
(2 Point for each correct answer)
1) Identify the brand by the ad given below.
2) What is the Occasion?
3) Identify the movie by below picture.
4) Identify the personality .He is film director, screenwriter and producer.
Qutopia
Answers for Mar13 edition
Section A 1. 2. 3. 4. 5. 6. HCL Technologies The Fiscal Cliff Related Diversification Project Shakti Kanwal Rekhi Shanghai Cooperation Organization 1. 2. 3. 4.
Section B Kung Fu Panda Carrefour Delhi Commonwealth Games 2010 Dr. Sarvepalli Rashakrishnan
Winner of March Edition Mohit Goyal DoMS, IIT Roorkee 2010-2012
DoMS-da-Evince
Sneh Mahiwal is a 2010 batch pass out of DoMS, IIT Roorkee and presently working as an Assistant Manager in Shipping Corporation of India.
Question: Please let us know the market is truly knowledge- sion in ERP .And above all its all about your journey prior to able and exciting; the 2 months about negotiating skills and the joining DoMS, IIT Roorkee. Response: Prior to joining IIT Roorkee, I was pursuing B. Tech in Question: What are your roles Computer Science from M.B.M and responsibilities at Shipping Question: What steps SCI has Engineering College Jodhpur. I Corporation of India Ltd.? taken to manage the effect of joined DoMS as a fresher with Response: I am working in Pur- economic slowdown? no prior experience and frankly chase and Service department Response: Shipping industry is speaking I was bit nervous be- as Assistant Manager in Pur- still wading through choppy wafore joining as everybody told chase division. I am responsible ters and it is unlikely to come me that MBA is only for experi- of Procuring goods, which are out of the rough currents at enced people. essential for running our ships least for the next threesafely and without any incon- quarters. Freight rates are low. Question: How was your experi- venience. For procuring materi- So, 2013 might still be a stressful ence as an intern at Bharti als, I have to be commercially year. One cannot expect reAirtel? aware with experience of each markable improvement. Things Response: I have been fortunate step of the purchase cycle, the might start improving by end of to work in Bharti Airtel corpo- cost specifications, the quality 2013.SCI has been conservative rate office. Airtel was my first standards, order-detailing and in its financial management. SCI entry into the corporate world scheduling and managing ten- now have a fleet strength of 79 and I can vouch for the fact that dering process within tight pro- vessels with 5.85 million dead it has one of the best work cul- ject deadlines, budget parame- weight tonnage (dwt). That is tures in terms of the exposure ters Apart from this, I am in a about 38 per cent of the total and flexibility you get. The core team of ERP-SRM module Indian tonnage. SCI have young whole experience of working in for implementing in the Corpo- fleet now, which means better marketing division, the pressure ration and Handling the Mate- acceptability in the market, less of launching a new product in rial Master of procurement divi- repair and maintenance and less were truly unforgettable. ability to obtain best value for the company.
DoMS-da-Evince
fuel consumption. SCI is trying to increase the rates in certain European segment, stopped making some calls at certain ports, trying to reduce the loss in unprofitable segments. So I SCI will be again profitable Corporation. Question: What has been the most challenging role in your career so far? Response: The most challenging part in my job is being efficient, patient, innovative, result oriented within the parameters of Question: Any message readers, especially for the current batch of DoMS? Wish you all best of luck!! Question: Would you like to share any interesting incident government guidelines. Its like you are running to win a race while your legs are cuffed. Response: Ohhh...thats the most difficult one to answer, I believe I am far too young and not that experienced to really be spreading out messages. All I would say is that believe in yourself, be competitive, be bold yet edge from whatever source u find in your way even the assistgive you an insight of life . Use time.
hope, if the plan goes well, soon with us? esting incidents and quoting only one will be unfair to the to pass this question for future
Response: My life is full of inter- humble and try to get knowl-
rest of incidents. So, I would like ing staff or the Chaiwala will talk in person with Domsonians. your knowledge wisely and in
The road of life twists and turns and no two directions are ever the same. Yet our lessons come from the journey, not the destination.
Don Williams Jr.
Success Story
Mr. Vijay Shekhar Sharma is the founder of One97, a telecom product and services company. Currently he is the chief executive officer of the organization.
Energetic, knowledgeleadership team in One97 that is currently powering ambitious growth plans. One97 Communications Pvt. Ltd. (www.one97world.com) today is a business leader in the Indian telecom applications and mobile services space. The company that was born out of one mans passion has managed to build unparalleled nation-wide telecom infrastructure and delivery capability and is recognized as a pioneer in the field of telecom innovation. One97 spans the length and the breadth of the telecom landscape in India and overseas, servicing across segments, customers, technologies and geographies. One97 works closely with telecom operator to enhance revenue, profitability and customer retention opportunities. It also creates innovative solutions for the mobile eco-system for consumers and corporate with relevant content, community and applications products. One97 thrives on disruptive innovation in telecom application space. One97 is also home to telecom brands like mPandit, oc2ps, New PayTM; Delhi, and Oorja. One97 is headquartered in with presence across the telecom map. A strong group of investors comprising Intel Capital, SAIF Partners and Silicon Valley Bank have funded One97 Communications. Music and Gizmos are Vijays other passions and he actively supports a number of non- governmental organizations. able, passionate, driven, positive some of the qualities that strike you when you meet Vijay Shekhar Sharma, the young and dynamic business leader, Founder and CEO at One97 Communications Pvt Ltd. From being the youngest graduate from Delhi College of Engineering (DCE) to making One97 amongst the most coveted telecom applications and mobile services company in Asia today, Vijay has always sided with the unconventional at each step. He has created unprecedented business milestones using his sharp and quick decision making skills. Vijay is also been credited by the telecom industry for putting together the most entrepreneurial, agile and incisive
Regardez Ieconomie
TAXING HNI
The concept of taxing the high Net worth individuals originated from the developed countries and largely an outcome of the recession. This was the period when most of the developed nation observed negative growth in their GDP. In order to contain the depressing effect they had to spend huge amount of money on several activities such as bailout packages or social spending. This massive expenditure has led to fiscal deficit and debt has increased enormously over the years. Today most of the developed countries' debt has increased so exhaustively that it is going to overtake their GDP; and in some cases it already has. It means the government has more debt liabilities than its gross production i.e. technically bankrupt economy. To avoid the collapse of the economy, the government has resorted to discriminatory taxation policies which emphasizes that those who earn more will be taxed more heavily. The idea of higher taxes for richer people is hotly debated and even transferred into a political issue. For example in 2012, this was the one of the hot issues in France presidential election. Interestingly the socialist Party Candidate Mr. Francis Hollade who vowed to tax the super rich by 75% finally won the election. Similar calls for tax regulations are on the rise in other developed nations like France, Australia, US, UK etc. An overview of debt-to-GDP ratio is given for several countries. The data provides some fascinating insights. It reveals that most of the developed countries were reeling under high debt. Europe is also reeling under the pressure as evident from the 150% figure of Greece and over 100% figure for Italy. Asia on the other hand, is doing
Taxing HNI
exceptionally well barring Japan. USA, the largest economy, too has surpassed the critical mark of 100% and making desperate efforts to save its economy. In 2013, it passed a very controversial law The American Tax Relief Act 2012or ment usually go for disinvestment of public assets or tax rate increases. Similarly cost cutting can be done by austerity measures such as decrease in social spending and the removal of subsidy. Each method has their comparative advandecisions. In India story is not too different though not as serious as developed nations. As of now India is having debt which comprises about 68% of GDP. The good thing is that the government is aware of the situa-
popularly known as Fiscal Cliff Bill; which talks about increasing GDP growth along with raising tax rates and a cut in social spending. The obvious question in such situation is, what the way forward is. In layman terms the deficit can be controlled by two ways, either increase the revenues or reduce the expenses. To increase revenue govern-
tages as well as disadvantages. Out of them, increasing taxes is most often used technique by governments. However many believe that taxation should be done according to their financial position rather than a sweeping policy for everyone. Socialistic mindset, politically correctness and income inequality are various factors which play their part in these
tion
and
taking
necessary
measures. Following the global trend, economic advisor to Prime Minister of India, Mr. C. Rangarajan has suggested for higher taxes for the super-rich in India. His proposal has been considered and in recent annual budget for the year201213, Finance Minister Mr. P. Chidambaram proposed an additional incometax surcharge
Taxing HNI
of 10% to super-rich of India. In Indian context, a person having an annual income equal to or more than 1 crore falls under the category of High Net worth Individual or Super Rich. The results of such policy are yet to be seen but many eyes are fixated on it. The success or failure of such initiative would dictate similar or otherwise deciand buts attached to it which is explained below. The first reservation is regarding the taxpayers headcount which is dismal by world standard. Going by finance ministry report in 2011-12, the total number of taxpayers has been just 3% of the total population. Even of these total tax paying population, around 89% contribution is 63% of the total tax collected. Talking about the Super Rich category, only 42800 people qualify for the group who has an income more than 1 crore. In comparison, USA has a huge taxpayer base which is 42% of their total population. Therefore the realities of India and USA or other developed countries are com-
sions in other nations. This also symbolizes a role reversal where a measure taken by a developing country might be replicated in a developed economy. However the task is not easy and there are many ifs
20 | DOMINATION, APRIL 2013
of people comes under income category 0-5 lakh and their contribution is not much (just 10% of total tax collected). Only 1.25% people come under high annual income segment of 20 lakh and above and their
pletely different and same policies cant work everywhere. The developed countries have very evolved tax structure, income tax policies and its enforcement. Their system is very efficient when compared
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Taxing HNI
to ours. Indian process is lesser user friendly and it involves experts to even file the tax return. On the other hand, USA has very simple process which could be fulfilled by an ordinary person. Another issue is cultural by its nature. In India many people do not pay taxes even if they earn higher. There are many people from business and agriculture class who even comes under super rich category but do not contribute anything to government tax collection. It is mostly service class or big corporate who follow the rules. Therefore such policies basically affect the person who follows the rules and does not encompass those who violate it. The overall impact on long run could be far reaching as many otherwise honest people would start trying to look for safe havens. Hence tax evasion is a potentially damaging aspect of this. There are some other reasons for opposition of taxation as well. In long run taxes tends to deteriorate the market which is known as deadweight loss by economists. Also
21 | DOMINATION, APRIL 2013
taxes act like a cap on purchasing power and thus act as reducing agents for demand. This affects the supply in a negative way and therefore the total gross production declines. The chain reaction further leads to unemployment and then socioeconomic problems such as crime and depression. Apart from them taxes also discourages the entrepreneurial spirit as it kills the desire to be wealthy. In practical sense also, tax collection in India has not increased with increasing tax rates. India tax system is complicated and brittle. By increasing tax burden on an individual, it will only work for adding to the earning of lawyers and charter accountants for their advice on how to evade taxes. Currently India is having a fiscal deficit of 5.3% of GDP, which is highest among the BRICS country. The GDP growth rate is also not very healthy with little over 5% mark, the lowest in the decade. The current fiscal and economic situation of the country is very alarming and requires special attention. It is time for government to remain vigilant and
carefully assess before taking any step. Considering the implications, taxing high net-worth Individual is certainly not an ideal way to reduce the fiscal deficit. A better way is to reduce subsidy as it overcomes many of the deficiencies which taxes have such as deadweight losses. The social sector cut is another viable option although it carries political baggage along with it. Government has already implemented some of the measures such as deregulating the fuel prices, implementing austerity measures in government functioning, steps to increase FDI etc. Apart from these, strict policy enforcement is required while spending money on social sector schemes. Some people have also argued for disinvestment route. This needs additional scrutiny and those whose performance is not up to the mark can be sold out, like Air India. In effect, a combination of these strategies in varying degrees is what is required at the moment. It should also be evaluated from time to time to decide on further steps. Various reward schemes such as
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE
Taxing HNI
rebate for regular payers or those who pay taxes above a certain limit could also be leveraged to attract new segment. Coercive technique such as increased tax burden can work for short duration but more holistic solutions are required for long term and sustainable growth.
ByAbhay Kumar checkabhaykumar@gmail.com Sharad Srivastava Sharad.iitr@gmail.com DoMS, IIT Roorkee (2012-2014)
DoMS Spotlight
AVYUDAYA-2013
In the contemporary 15/03/2013. The event was graced by the presence of eminent speaker like

fice Business Transformation, CSC Mr. P. K. Garg, Indian Railway Service of Engineer The summit was sponsored by IFB, global leader in home appliances and Valuence training and Research Pvt. Ltd., knowledge services Provider Company. We were also fortunate to have
world, the buzzwords are PPP, supply chain, investors, shareholders, customer, rural supply chain etc. To highlight these issues and to bring lucid perspective on these important issues, Operazione (Operations Club of DoMS, IIT Roorkee) organized AVYUDAYA-2013 in association with an ISTD Dehradun Chapter on
Mr. Mangu Singh , Managing Director Delhi Metro Rail Corporation (DMRC)
Mr. Shammi Dua, Head Logistics and customer service Akzo Nobel India Ltd
Mr. Keerthi Prasad, Head Program Management Of-
Avyudaya13
Prof. S. P. Gupta, Deputy Director of IIT Roorkee, with us. The ized operations to emerge victorious in the present coeval world. After his insightful lecture, the dais was taken over by Mr. Mangu Singh, MD DMRC. He dealt mostly with issues such as PPP, DMRC conevent started with the lighting of the lamp by the dignitaries and a welcome note by Dr. Santosh Rangnekar, Head of the Department. Dr. Rangnekar emphasized the need to develop oneself in entirety. He talked about the multitude of clubs which department has and the various summits which they have conducted .This was followed by the introduction regarding the theme of event by Dr. Rajat Agrawal. He started on the need and importance of operations in the corporate sector, industry, country lighted that PPP in Rapid transport like India has not achieved much success. The challenges which the corporations face are mainly financing, land, and resource constraints. He further highlighted how DMRC is earning carbon credit by saving on energy consumption. An interesting question was raised by a student whether it will be posetc. He highlighted how countries like Japan and China utilsible to replicate DMRC in Indian railway. To this, Mr. Apart from this he highlighted following points: struction issues and Carbon Credit. He explicitly stated the importance of the public sector in building organization like DMRC. He said though PPP is a very novel concept but highMangu Singh answered that it is easy to build a great organization when you are building it from scratch. He cited DMRC as an example. The second speaker was Mr. Shammi Dua, from Akzo Nobel India Ltd. He started his session by asking questions to the student such as what is the role of Mangal Pandey in supply chain Management. He explained that after the first war of independence, British built Chawani (cantonments). He also gave another example of Bhelpuriwalas to highlight how they manage their inventory and supply chain. Then he discussed the topic The heart of India - Rural India. He stated that the rural India is going to be a future booming sector of India.
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Logistics versus Supply Chain and pursue your dreams. He Collaboration gave his own example how he wanted to become a professor gave a reference of Steve Jobs, who is a college dropout. Finally he concluded by saying that do whatever you want that makes you happy. student community. He encouraged students to actively engage in industry projects and learn about real business environment. After this a panel discussion was conducted where all The final speaker was Mr Keerthi Prasad. He started by highlighting the importance of business model and its effect on the cloud computing. He explained the concept of platform the eminent speakers shared their understanding. The discussion was very fruitful and enriched the knowledge of the students. This marked the end of
Systematic approach in Ne- but he joined railways. He even gotiation
Finally he explained supply chain of paint. During the session a student raised an important question regarding current scenario. As the economy is not growing as anticipated, so what is the role of SCM in the current times. The speaker aptly responded that one has to be more aggressive in an economic slowdown. The CEO would like to conserve cash which will reduce the inventory as well as operational cost.
servers etc. Further he talked the event. A note of thanks was about Google war and con- delivered and a token of graticluded by highlighting that cloud tude was presented for their is going to be the future. After the enriching sesThe event was further
sion, the next speaker was Mr. charmed with the presence of P. K. Garg. His session was en- Mr. Manoj Sadavarte, Location thralling as he spoke from the Head Godrej & Boyce Mfg. Co. heart. He taught the difference Ltd. H also shared his underbetween My world and The standing on various contempoworld. He also emphasized on rary issues and topics. His ses- time. The session was much enthe need to know your heart sion was very much enjoyed by joyed by the students.
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It was a very important event agement but also for various proved successful in achieving not only about operation man- other business functions and its goal
DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE ROORKEE - 247667, INDIA Comment/Feedback Mail to : - domination.doms.iitr@gmail.com Contacts: Sharad Srivastava (+91-9627419049), Nilaya Mitash Shanker (+91-9415580227) Follow us :Blog Page- http://domsiitroorkee.blogspot.com/ Twitter Page- http://twitter.com/#!/doms_iitroorkee Facebook Page- https://www.facebook.com/pages/DoMS-IIT-Roorkee/156383884413349

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VOLUME-IV ISSUE-03 APRIL 2013

rds a g e R ination M o D Team

02 | DOMINATION, APRIL 2013 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

DEPARTMENT OF MANAGEMENT STUDIES INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

03 | DOMINATION, APRIL 2013 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Business-Competing through organizational agility

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Shared beliefs: This is a no-

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Defending your tribe: It is

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By: Manish Rajwar rajwarmanish@gmail.com DoMS, IIT Roorkee (20122014)

ByVaibhav Shrivastava vaibhav.iitroorkee@gmail.com DoMS, IIT Roorkee (2012-2014)

1) Identify the brand by the ad given below.

2) What is the Occasion?

3) Identify the movie by below picture.

4) Identify the personality .He is film director, screenwriter and producer.

Winner of March Edition Mohit Goyal DoMS, IIT Roorkee 2010-2012

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Mr. Keerthi Prasad, Head Program Management Of-

Systematic approach in Ne- but he joined railways. He even gotiation

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