Module 3

(1BBA4)BUSINESS TRENDS

MODULE 3

THE TOP THREE CEO’S

LEARNING OBJECTIVE

In This module we will learn :

 The top 10 performing CEO of the world in 2018(acc to HBR)

 Learn about the role and qualities of CEO’S
 Learn about the reasons for attrition of CEO’s
 Study about three world’s best CEO in detail : Elon Musk, Jeff Bezos, Kiran Mazumdar-
Shaw.

INTRODUCTION

A chief executive officer (CEO in American English) or managing director (MD in British
English) describes the position of the most senior corporate officer (executive) or administrator in
charge of managing a for-profit organization.

The top 10 performing CEO of the world in 2018(acc to HBR)

Name Position
Pablo Isla, Inditex 1
Jensen Huang, Nvidia 2
Bernard Arnault, LVMH 3
Francois- Henri Pinault, Kering 4
Elmar Degenhart, Continental 5
Marc Benioff, Salesforce.com 6
Jacques Aschenbroich, Valeo 7
Johan Thijs, KBC 8

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Hisashi Ietsugu, Sysmex 9

Martin Bouygues, Bouygues 10

• Communicating, on behalf of the company, with shareholders, government entities, and the
public.

• Leading the development of the company’s short- and long-term strategy.

• Creating and implementing the company or organization’s vision and mission.

• Evaluating the work of other executive leaders within the company, including directors,
vice presidents, and presidents.

• Maintaining awareness of the competitive market landscape, expansion opportunities,

industry developments, etc.

• Ensuring that the company maintains high social responsibility wherever it does business.

• Assessing risks to the company and ensuring they are monitored and minimized.

• Setting strategic goals and making sure they are measurable and describable

WORLD'S LEADING CEO’S AND THEIR QUALITIES

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WHY CEO ‘S KEEP CHANGING?

Attrition is a hot-button issue particularly if it’s about the CEO of the organisation. What he does
in the top jobs sends a clear signal down below.

But if a study done by EMA Partners, an executive search firm, is to be believed than the situation
isn't that encouraging. A five-year study done across 100 companies between 2001-06, reveals that
a high 66% of the companies has had a change of CEO in the last five years.

There are of course patterns depending on pedigree of the companies and sectors they belonged to.
"Not a single company (who were being tracked) sacked its CEO - clearly in India CEOs "resign"
never get sacked" says K Sudarshan, managing partner, EMA Partners.

Here's the story behind the CEO churn in the last five years:

Outsider CEOs

MNCs: 37%

Family-owned firms: 42%

Professional firms: 0%

Succession planning is the best in companies who are run-managed by professional boards, a
reason why they have almost zero churn.

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Reasons for leaving

Death: 2%

Global
Retired: 24%
Transfer: 17%

Restructuring:
M&A: 11%
5%

Resigned: 41%

CEOs in India rarely get sacked - they just resign and move on. Still a substantially high
percentage - 24% - change in CEO happens because the CEO is retiring. Change of CEOs due to
global transfer is at 17% - perhaps a fair endorsement of the demand of Indian CEOs overseas

Churn due to global transfer

We can see it at HLL, P&G, a large number of banks - FMCG and banking lead in sending Indian
CEOs to many other global positions.

Churn in CEOs

There's far more stability at the top in family-owned (understandable because most of the time its
the promoter who runs it) and board-run businesses than the headquarter-driven MNCs. Coca Cola
has had three CEOs in the last five years.

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LEADING CEO’S

ELON MUSK

Early life and family

Elon Reeve Musk was born on June 28, 1971, in Pretoria, Transvaal, South Africa, His mother
is Maye Musk (née Haldeman), a model and dietitian, His father is Errol Musk, a South
African electromechanical engineer, pilot, sailor, consultant and property developer, He has a
younger brother who was an early business partner of his, Kimbal (born 1972), and a younger
sister, Tosca (born 1974), the CEO of the video streaming site Passionflix.

During his childhood, Musk was an avid reader. At the age of 10, he developed an interest
in computing while using the Commodore VIC-20. He learned computer programming using a
manual and, by the age of 12, sold the code of a BASIC-based video game he created
called Blastar to PC and Office Technology magazine for approximately $500.

His childhood reading included Isaac Asimov's Foundation series, from which he drew the lesson
that "you should try to take the set of actions that are likely to prolong civilization, minimize the
probability of a dark age and reduce the length of a dark age if there is one. He

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attended Waterkloof House Preparatory School and Bryanston High School before graduating
from Pretoria Boys High School.

Although Musk's father insisted that Elon go to college in Pretoria, Musk became determined to
move to the United States, saying "I remember thinking and seeing that America is where great
things are possible, more than any other country in the world." Musk knew it would be easier to
get to the United States from Canada and moved there against his father's wishes in June 1989, just
before his 18th birthday, after obtaining a Canadian passport through his Canadian-born mother.

Education
While awaiting Canadian documentation, Musk attended the University of Pretoria for five
months. Once in Canada, Musk entered Queen's University in 1989, avoiding mandatory service in
the South African military. He left in 1992 to study economics and physics at the University of
Pennsylvania; he graduated in 1997 with a Bachelor of Science degree in economics from
the Wharton School and a Bachelor of Arts degree in physics from the College of Arts and
Sciences.

In 1994, Musk held two internships in Silicon Valley during the summer: at an energy storage
start-up called Pinnacle Research Institute, which researched electrolytic ultracapacitors for energy
storage, and at the Palo Alto-based start-up Rocket Science Games. Bruce Leak, the former lead
engineer behind Apple's QuickTime who had hired Musk, noted: "He had boundless energy. Kids
these days have no idea about hardware or how stuff works, but he had a PC hacker background
and was not afraid to just go figure things out."

In 1995, Musk was accepted to a Ph.D. program in energy physics/materials science at Stanford
University in California. In California, Musk attempted to get a job at Netscape, but never received
a response to his job inquiries. He ended up dropping out of Stanford after two days, deciding
instead to join the Internet boom and launch an internet startup instead.

Business career

Zip2
In 1995, Musk and his brother Kimbal and Greg Kouri started Zip2, a web software company, with
money raised from a small group of angel investors. They housed the venture at a small rented

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office in Palo Alto.The company developed and marketed an internet city guide for the newspaper
publishing industry, with maps, directions and yellow pages, with the vector graphics mapping and
direction code being implemented by Musk in Java. Before the company became successful, Musk
could not afford an apartment, instead sleeping on the office couch and showering at the YMCA.
Furthermore, they could only afford one computer, and consequently, according to Musk, "The
website was up during the day and I was coding it at night, seven days a week, all the time." Their
efforts materialized when the Musk brothers obtained contracts with The New York Times and
the Chicago Tribune, and persuaded the board of directors to abandon plans for a merger
with CitySearch. Musk's attempts to become CEO were thwarted by the board. Compaq acquired
Zip2 for US$307 million in cash in February 1999. Musk received US$22 million for his 7 percent
share from the sale.

X.com and PayPal

In March 1999, Musk co-founded X.com, an online financial services and e-mail payment
company, with US$10 million from the sale of Zip2. One year later, the company merged
with Confinity, which had a money-transfer service called PayPal. The merged company focused
on the PayPal service and was renamed PayPal in 2001 Musk was ousted in October 2000 from his
role as CEO (although he remained on the board) due to disagreements with other company
executives over his desire to move PayPal's Unix-based infrastructure to a Microsoft one. In
October 2002, PayPal was acquired by eBay for US$1.5 billion in stock, of which Musk
received US$165 million. Before its sale, Musk, who was the company's largest shareholder,
owned 11.7% of PayPal's shares.

In 2017, Musk purchased the domain X.com from PayPal for an undisclosed amount, explaining
that it had sentimental value to him. [

SpaceX
Mars Oasis and the founding of SpaceX

In 2001, Musk conceived Mars Oasis, an idea to land a miniature experimental greenhouse on
Mars, containing food crops growing on Martian regolith, in an attempt to reawaken public interest
in space exploration. In October 2001, Musk traveled to Moscow with Jim Cantrell (an aerospace
supplies fixer), and Adeo Ressi (his best friend from college), to buy

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refurbished Dnepr Intercontinental ballistic missiles (ICBMs) that could send the envisioned
payloads into space. The group met with companies such as NPO Lavochkin and Kosmotras;
however, according to Cantrell, Musk was seen as a novice and was consequently spat on by one
of the Russian chief designers. The group returned to the United States empty-handed. In February
2002, the group returned to Russia to look for three ICBMs, bringing along Mike Griffin. Griffin
had worked for the CIA's venture capital arm, In-Q-Tel, as well as NASA's Jet Propulsion
Laboratory, and was just leaving Orbital Sciences, a maker of satellites and spacecraft. The group
had another meeting with Kosmotras and were offered one rocket for US$8 million. Musk
considered the price too high, and stormed out of the meeting. On the flight back from Moscow,
Musk realized that he could start a company that could build the affordable rockets he needed.
Ultimately, Musk founded SpaceX with the long-term goal of creating a true spacefaring
civilization.[

With US$100 million of his early fortune, Musk founded Space Exploration Technologies Corp.,
traded as SpaceX, in May 2002. Musk is CEO and CTO of the Hawthorne, California-based
company. By 2016, Musk's private trust held 54% of SpaceX stock, equivalent to 78% of voting
shares.

Flights to ISS and collaboration with NASA

In 2006, NASA announced that the company was one of two selected to provide crew and cargo
resupply demonstration contracts to the International Space Station, followed by a US$1.6
billion Commercial Resupply Services program contract on December 23, 2008, for 12 flights of
its Falcon 9 rocket and Dragon spacecraft to the Space Station, replacing the US Space
Shuttle after it retired in 2011. On May 25, 2012, the SpaceX Dragon vehicle berthed with the ISS,
making history as the first commercial company to launch and berth a vehicle to the International
Space Station.

Starting in 2011, SpaceX received funding under NASA's Commercial Crew

Development program, to develop the Dragon 2 crew capsule. A contract to provide crew flights
to the ISS was awarded in 2014.

Musk believed the key to making space travel affordable was to make rockets reusable, though
space industry experts believed reusable rockets were impossible or infeasible. On December 22,

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2015, SpaceX successfully landed the first stage of its Falcon rocket back at the launch pad, the
first time this had been achieved by an orbital rocket. The first stage recovery was replicated
several times in 2016 by landing on an autonomous spaceport drone ship, an ocean-based recovery
platform, and by the end of 2017, SpaceX had landed and recovered the first stage on 16
consecutive missions where a landing and recovery were attempted, including all 14 attempts in
2017. Twenty out of 42 first stage Falcon 9 boosters have been recovered overall since the Falcon
9 maiden flight in 2010.

In 2017 SpaceX launched 18 successful missions, more than doubling their highest previous year
of 8.

On February 6, 2018, SpaceX successfully launched the Falcon Heavy, the fourth-highest capacity
rocket ever built (after Saturn V, Energia and N1).] The inaugural mission carried a Tesla Roadster
belonging to Musk as a dummy payload

Starlink and further progress

SpaceX began development of the Starlink constellation of low Earth orbit satellites in 2015 to
provide satellite Internet access, with the first two prototype test-flight satellites launched in
February 2018. A second set of test satellites and the first large deployment of a piece of the
constellation occurred on May 24, 2019 UTC when the first 60 operational satellites were
launched. The total cost of the decade-long project to design, build, and deploy the constellation
was estimated by SpaceX in May 2018 to be about US$10 billion.

Space X's goal is to reduce the cost of human spaceflight by a factor of 10. In a 2011 interview, he
said he hopes to send humans to Mars' surface within 10–20 years. In Ashlee Vance's biography,
Musk stated that he wants to establish a Mars colony by 2040, with a population of 80,000
humans. Musk stated that, since Mars' atmosphere lacks oxygen, all transportation would have to
be electric (electric cars, electric trains, Hyperloop, electric aircraft). Musk stated in June 2016 that
the first uncrewed flight of the larger Interplanetary Spaceship was aimed for departure to the red
planet in 2022, to be followed by the first crewed ITS Mars flight departing in 2024 In September
2016, Musk revealed details of his architecture to explore and colonize Mars.

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In late 2017, SpaceX unveiled the design for its next-generation launch vehicle and spacecraft
system, Big Falcon Rocket (BFR), that would support all SpaceX launch service
provider capabilities with a single set of very large vehicles: Earth-orbit, Lunar-orbit,
interplanetary missions, and even intercontinental passenger transport on Earth, and totally replace
the Falcon 9, Falcon Heavy and Dragon vehicles in the 2020s. Starship will have a 9-meter (30 ft)
core diameter. Significant development on the vehicles began in 2017, with an initial prototype
unveiled in September 2019, while the new rocket engine (Raptor) development began in
2012, with a first test flight performed in August 2019.

In a September 2018 announcement of a planned 2023 lunar circumnavigation mission,

a private flight called dearMoon project, Musk showed a redesigned concept for the BFR second
stage and spaceship with three rear fins and two front canard fins added for atmospheric entry,
replacing the previous delta wing and split flaps shown a year earlier. The revised BFR design was
to use seven identically-sized Raptor engines in the second stage; the same engine model as would
be used on the first stage. The second stage design had two small actuating canard fins near the
nose of the ship, and three large fins at the base, two of which would actuate, with all three serving
as landing legs. Additionally, SpaceX also stated later that September that they were "no longer
planning to upgrade Falcon 9 second stage for reusability. The two major parts of the re-designed
BFR were given descriptive names in November: "Starship" for the upper stage and "Super
Heavy" for the booster stage, which Musk said was "needed to escape Earth's deep gravity well
(not needed for other planets or moons). As of October 2020, Musk was spending most of his time
at the company's Boca Chica launch site leading the engineering work on Starship development

Human flight

On May 30, 2020, SpaceX launched its first crewed flight called Demo-2 becoming the first
private company to both place a person into orbit and to eventually dock a crewed space-craft with
the ISS.[110] Further, the launch was the first time since the end of the Shuttle Program that an
American astronaut has been launched from American soil on an American rocket.

During discourse with his peers when the technology of SpaceX was criticized or had the potential
to cause fatalities, Elon Musk has described himself as the company's responsible chief
engineer/designer, while giving the entire team at SpaceX credit for its success.

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Tesla
Origins and master plan part one

Tesla, Inc. (originally Tesla Motors) was incorporated in July 2003 by Martin Eberhard and Marc
Tarpenning, who financed the company until the Series A round of funding. Both men played
active roles in the company's early development prior to Elon Musk's involvement. Musk led the
Series A round of investment in February 2004, joining Tesla's board of directors as its chairman.
According to Musk, all three, along with J. B. Straubel, were inspired by the earlier AC Propulsion
tzero electric roadster prototype. Musk took an active role within the company and oversaw
Roadster product design at a detailed level, but was not deeply involved in day-to-day business
operations. Following the financial crisis in 2008 and after a series of escalating conflicts in 2007,
Eberhard was ousted from the firm. Musk assumed leadership of the company as CEO and product
architect in 2008, positions he still holds today. As of 2019, Elon Musk is the longest tenured CEO
of any automotive manufacturer globally.

Tesla's "master plan", as iterated by Musk in 2006 was:

Build sports car. Use that money to build an affordable car. Use that money to build an even more
affordable car. While doing above, also provide zero-emission electric power generation options.

Tesla Motors first built an electric sports car, the Tesla Roadster, in 2008, with sales of about
2,500 vehicles to 31 countries, which was the first serial production all-electric car to use lithium-
ion battery cells. Tesla began delivery of its four-door Model S sedan on June 22, 2012. It unveiled
its third product, the Model X, aimed at the SUV/minivan market, on February 9, 2012; however,
the Model X launch was delayed until September 2015. In addition to its own cars, Tesla sold
electric powertrain systems to Daimler for the Smart EV, Mercedes B-Class Electric Drive
and Mercedes A Class, and to Toyota for the RAV4 EV. Musk was able to bring in both
companies as long-term investors in Tesla.

Product line expansion and master plan part two

Musk favored building a more affordable Tesla model; this led to the Model 3 that was unveiled in
2016, with a planned base price of US$35,000. Initial deliveries began in 2017, with
the US$35,000 base model becoming available in February 2019. As of March 2020, the Tesla

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Model 3 is the world's best-selling electric car in history, with more than 500,000 units
delivered.Musk originally intended to name the model 3 as the model E but was blocked
by Ford which held the trademark, with Musk concluding that "Ford was killing SEX".

In 2014, Musk announced that Tesla would allow its technology patents to be used by anyone in
good faith in a bid to entice automobile manufacturers to speed up the development of electric
cars. "The unfortunate reality is electric car programs (or programs for any vehicle that doesn't
burn hydrocarbons) at the major manufacturers are small to non-existent, constituting an average
of far less than 1% of their total vehicle sales," Musk said.

In February 2016, Musk announced that he had acquired the Tesla.com domain name from Stu
Grossman, who had owned it since 1992, and changed Tesla's homepage to that domain.

Musk with Indian Prime Minister Narendra Modi in San Jose, California, on September 26, 2015

Anticipating that the global lithium-ion battery supply was insufficient for their planned electric
car output, a lithium-ion battery factory that would more than double existing global output was
planned.On July 29, 2016 the first phase of Gigafactory 1, a lithium-ion battery and electric
vehicle subassembly factory, was officially opened near Reno, Nevada, by Tesla in partnership
with Panasonic.As of May 2020, Gigafactory 1 produces 35 GWh/year of batteries.

In July 2016, Musk released Tesla's "master plan part 2"

Create stunning solar roofs with seamlessly integrated battery storage. Expand the electric vehicle
product line to address all major segments [including small SUV and pickup truck]. Develop a
self-driving capability that is 10X safer than manual via massive fleet learning. Enable your car to
make money for you when you aren't using it.

In July 2016, Tesla began developing Autopilot, their advanced driver-assistance system, in-house
after Mobileye ended its partnership with Tesla, citing safety concerns following a fatal crash in
May 2016 where the driver of a Model S using Autopilot was killed.

In September 2017, Musk arranged a contract with the government of South Australia for Tesla
Energy to install what would then be the world's largest lithium ion battery pack, to help alleviate
energy blackouts in the state. The terms included a guarantee that it would be installed in 100 days

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or would be free. This deadline was achieved and the resulting battery exceeded expected
performance and returns, despite skepticism from Australian federal politicians

SEC lawsuit

In September 2018, Musk was sued by the U.S. Securities and Exchange Commission for a tweet
claiming that funding had been secured for potentially taking Tesla private (at a price of $420 a
share, an alleged reference to marijuana). The lawsuit claimed that verbal discussions Musk held
with foreign investors in July 2018 did not confirm key deal terms and thus characterized the tweet
as false, misleading, and damaging to investors, and sought to bar Musk from serving as CEO
on publicly traded companies. Musk called the allegations unjustified and that he had never
compromised his integrity.Two days later, Musk settled with the SEC, without admitting or
denying the SEC's allegations. As a result, Musk and Tesla were fined $20 million each, and Musk
was forced to step down temporarily as Tesla chairman while remaining Tesla's CEO.

Ownership of Tesla

As of January 29, 2016, Musk owned about 28.9 million Tesla shares, which equated to about 22%
of the company. In January 2018, Musk was granted an option to buy up to 20.3 million shares if
Tesla's market value were to rise to $650 billion. Majority shareholder approval for this package
was approved in March 2018.The grant was also meant to end speculation about Musk's potential
departure from Tesla to devote more time to his other business ventures. A report by advisory
firm Glass Lewis & Co. to its clients argued against granting the options.As of December 31,
2019, Musk owns 38,658,670 shares or 20.8% of all Tesla shares

Solar City

SolarCity solar-panel installation vans in 2009

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Musk provided the initial concept and financial capital for SolarCity, which was then co-founded
in 2006 by his cousins Lyndon and Peter Rive.By 2013, SolarCity was the second largest provider
of solar power systems in the United States. In 2012, Musk announced that SolarCity and Tesla
would collaborate to use electric vehicle batteries to smooth the impact of rooftop solar on the
power grid, with the program going live in 2013.

Kiran Majumdar Shah

Kiran Mazumdar-Shaw (born 23 March 1953) is an Indian billionaire entrepreneur. She is the
chairperson and managing director of Biocon Limited, a biotechnology company based
in Bangalore, Indi and the chairperson of Indian Institute of Management Bangalore.

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Early life and education:

Kiran Mazumdar was born to Gujarati parents in Bangalore, India. She went to school at
Bangalore's Bishop Cotton Girl's High School, graduating in 1968. She then attended Mount
Carmel College, Bangalore, a women's college offering pre-university courses as an affiliate of
Bangalore University. She studied biology and zoology, graduating from Bangalore
University with a bachelor's degree in zoology in 1973. Mazumdar hoped to go to medical school,
but did not obtain a scholarship.

Her father, Rasendra Mazumdar, was the head brewmaster at United Breweries. He suggested that
she study fermentation science, and train to be a brewmaster, a very non-traditional field for a
woman. Mazumdar went to Federation University (formerly University of Ballarat) in Australia to
study malting and brewing. In 1974 she was the only woman on the brewing course, and came top
of her class. She earned the degree of master brewer in 1975.

She worked as a trainee brewer in Carlton and United Breweries, Melbourne and as a trainee
maltster at Barrett Brothers and Burston, Australia. She also worked for some time as a technical
consultant at Jupiter Breweries Limited, Calcutta and as a technical manager at Standard Maltings
Corporation, Baroda between 1975 and 1977. However, when she investigated the possibility of
further work in Bangalore or Delhi, she was told that she would not be hired as a master brewer in
India because "It's a man's work. She began to look abroad, and was offered a position in Scotland.

Biocon

Before Mazumdar could move, she met Leslie Auchincloss, founder of Biocon Biochemicals
Limited, of Cork, Ireland. Auchincloss's company produced enzymes for use in the brewing, food-
packaging and textile industries. Auchincloss was looking for an Indian entrepreneur to help
establish an Indian subsidiary. Mazumdar agreed to undertake the job on the condition that if she
did not wish to continue after six months she would be guaranteed a brewmaster's position
comparable to the one she was giving up.

Beginning with enzymes

After a brief period as a trainee manager at Biocon Biochemicals Limited, of Cork, Ireland, to
learn more about the business, Kiran Mazumdar Shaw returned to India. She started Biocon India

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in 1978 in the garage of her rented house in Bengaluru with a seed capital of Rs. 10,000. Although
it was a joint venture, Indian laws restricted foreign ownership to 30% of the company. The
remaining 70% belonged to Kiran Mazumdar Shaw.

Initially, she faced credibility challenges because of her youth, gender and her untested business
model. Funding was a problem: no bank wanted to lend to her, and some requested that her father
be a guarantor. A chance meeting with a banker at a social event finally enabled her to get her first
financial backing. She also found it difficult to recruit people to work for her start-up. Her first
employee was a retired garage mechanic. Her first factory was in a nearby 3,000-square-foot
shed. The most complicated piece of equipment in her lab at that time was
a spectrophotometer. As well, she faced the technological challenges associated with trying to
build a biotech business in a country with a shaky infrastructure. Uninterrupted power, superior
quality water, sterile labs, imported research equipment, and workers with advanced scientific
skills were not easily available in India at the time.

The company's initial projects were the extraction of papain (an enzyme from papaya used to
tenderize meat) and isinglass (obtained from tropical catfish and used to clarify beer). Within a
year of its inception, Biocon India was able to manufacture enzymes and to export them to the US
and Europe, the first Indian company to do so. At the end of her first year, Mazumdar used her
earnings to buy a 20-acre property, dreaming of future expansion.

Expanding into biopharmaceuticals

Mazumdar spearheaded Biocon's evolution from an industrial enzymes manufacturing company to

a fully integrated bio-pharmaceutical company with a well-balanced business portfolio of products
and a research focus on diabetes, oncology and auto-immune diseases. She also established two
subsidiaries: Syngene (1994) which provides early research and development support services on a
contract basis and Clinigene (2000) which focuses on clinical research trials and the development
of both generic and new medicines. Clinigene was later merged with Syngene. Syngene was listed
on BSE/NSE in 2015 and has a current market cap of US$1.15 billion.

Establishing independence

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In 2004, after seeking the advice of Narayana Murthy, Mazumdar-Shaw decided to list Biocon on
the stock market. Her intent was to raise capital to further develop Biocon's research programs.
Biocon was the first biotechnology company in India to issue an IPO. Biocon's IPO was
oversubscribed 33 times and its first day at the bourses closed with a market value of $1.11
billion, making Biocon only the second Indian company to cross the $1-billion mark on the first
day of listing.

Affordable innovation

Biocon's major areas of research now include cancer, diabetes, and other auto-immune
diseases such as rheumatoid arthritis and psoriasis. Because of the high percentage of people in
India who chew betel or tobacco, India accounts for eighty-six per cent of oral cancer in the world,
known locally as "cancer cheek". Diabetes is prevalent, and people who do not wear shoes are at
risk to have a minor scrape or injury develop into gangrene, or "diabetes foot". Biocon is also
working on drugs to treat psoriasis, a skin pigment disease which can result in social ostracization.

Philanthropic activities

Kiran Mazumdar-Shaw argues that philanthropy too often tries to apply temporary fixes to
intractable problems. She follows a different model for giving, which combines a social worker's
empathy with a chief executive's mindset. She calls her approach, "compassionate capitalism":
using proven business strategies to build a durable foundation for sustainable social development.
"When innovation and commerce are used to drive social progress," says Kiran, "the
implementation is a lot cheaper, many more people benefit, and the effect is longer lasting."

Kiran graduated from Federation University Australia in 1976, becoming India's first female
brewmaster. She worked as a technical consultant at breweries in India and Australia and was later
offered the position of head master brewer at a brewery in Scotland. Instead of moving to the UK,
she took up a more challenging opportunity—to launch the Indian subsidiary of Biocon
Biochemicals Limited, which produced enzymes for food and textile makers around the world.

In 1978, in a makeshift office in a garage in Bangalore, Kiran founded Biocon India, a joint
venture in which she had 70 percent ownership. She organized her startup around a purpose: to
offer green technologies to industry and establish biotechnology as a sector in India. Within a year,

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Biocon India was manufacturing and exporting enzymes to the United States and Europe, the first
Indian company to do so. It soon grew into India's largest enzymes company.

In the late 1990s, Biocon moved up the value chain to become a biopharmaceutical company that
went beyond profit: to help ensure that all people, regardless of their income or social status, have
affordable access to high-quality healthcare. Under Kiran's leadership, it has since become India's
largest biopharmaceutical company and Asia's largest producer of insulins. "As an entrepreneur
from the developing world, I have challenged the Western pharmaceutical model of creating
monopolistic markets that deliver high margins at low volumes," she says. "I have always believed
that blockbuster drugs are not about a billion dollars, but a billion patients."

The second Indian to sign the Giving Pledge, Kiran is motivated by personal experience: the
illnesses of her husband, mother, and best friend led to a focus on cancer research and treatment.
The state-of-the-art, Mazumdar-Shaw Cancer Center in Bangalore, one of the largest hospitals of
its kind in India, was founded on an affordable healthcare model that allows low-income patients
to access treatment that is subsidized by those who can pay the full cost of their therapy.

Kiran is particularly concerned about the financial burden that debilitating diseases like cancer
impose on patients in poor countries. She is conscious of the fact that two thirds of the world's
population have little or no access to quality healthcare. And when they do, the financial burden
often pushes them into poverty.

Through the Biocon Foundation, Kiran has adopted a large number of Primary Health Centres
(PHCs) in rural India and worked to transform them into telemedicine- and technology-enabled
centres with links to doctors who are based in major cities. The hope is that with major
government support, the model can be scaled—and that it will leapfrog the present PHC system,
which has struggled to consistently provide quality care.

Kiran has also used her philanthropy to create the 1,400-bed Mazumdar-Shaw Cancer Centre in
partnership with Dr. Devi Shetty, whose commitment to compassionate capitalism is legendary.
She also supports scientists and research-driven clinicians at the Mazumdar-Shaw Centre for
Translational Research and the Koch Institute of Integrative Cancer Research at the Massachusetts
Institute of Technology. Taken together, her philanthropic efforts are driven by compassionate
capitalism's ethos, which is to generate positive returns for all stakeholders, not just investors.

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"A profitable organization has a responsibility to give back to the community," says Kiran. "The
success of an organization and the community it operates in is always interconnected."

Board memberships

Mazumdar-Shaw is a member of the board of governors of the Indian School of Business and a
past member of the board of governors of the Indian Institute of Technology Hyderabad.

Dr Kiran Mazumdar-Shaw, Chairperson, Board of Governors, IIMB, with Shah Rukh Khan during
IIMBUE 2015 on Dec 11

As of February 2014, Mazumdar-Shaw became the first woman to head the board of governors of
the Indian Institute of Management Bangalore (IIMB)

She is an independent director on the board of Infosys.

Awards and Honours:

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Mazumdar-Shaw with the Othmer Gold Medal, 2014

Awards and positions:

Owing to her massive contribut ion in t he field of biopharmaceut ical manufact uring,
R&D, clinical advancement and philant hropic act ivit ies, Shaw has been accredit ed
and decorated wit h several awards and recognit ion. In 2000, t he World Economic
Forum named her as a “Technology Pioneer”. In 2002, Ernst & Young honoured
her as t he best ent repreneur in t he healt h & life care sciences.

In 2004, The Economic Times recognized her as Business Woman of t he Year. In

2005, Shaw was awarded t he Padma Bhushan for her cont ribut ion to biot echnology
and also was given t he Lifet ime Achievement Award from t he Indian Chamber of
Commerce. She has also received several prest igious int ernat ional awards like t he
Nikkei Asia Prize in 2009 and Ot hmer Gold Medal in 2014.

Apart from such dist inguished recognit ion, Shaw has held several advisory and
cardinal posit ions. She was t he Chairperson of Nat ional Task Force on
Biot echnology est ablished by t he Confederat ion of Indian Industry and has also
remained a member of t he Prime Minister ’s Council on Trade & Industry. At
present, she is on t he board of governors of t he Indian Business School. She is also
t he first ever woman Chairperson of t he board of governors at IIM - Bangalore.

Furt hermore, she is also a lead independent director at In fosys. Recent ly, in June
2018, Shaw was elect ed as a full-t erm MIT Corporat ion member. MIT Corporat ion
is t he Board of Trustees of t he prest igious Massachusett s Inst it ut e of
Technology.Indeed, t he journey has been long for Shaw, but her hard work,
dedicat ion and passion are an inspirat ion for all.

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JEFF BEZOZ

American entrepreneur Jeff Bezos is the founder and chief executive officer of Amazon.com. In
2013, he purchased The Washington Post.

Synopsis

Entrepreneur and e-commerce pioneer Jeff Bezos was born on January 12, 1964, in Albuquerque,
New Mexico. Bezos had an early love of computers and studied computer science and electrical
engineering at Princeton University. After graduation, he worked on Wall Street, and in 1990
became the youngest senior vice president at the investment firm D.E. Shaw. Four years later, he
quit his lucrative job to open Amazon.com, a virtual bookstore that became one of the internet's

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biggest success stories. In 2013, Bezos made headlines when he purchased The Washington Post
in a $250 million deal.

Early Life and Career

Jeff Bezos was born on January 12, 1964, in Albuquerque, New Mexico, to a teenage mother,
Jacklyn Gise Jorgensen, and his biological father, Ted Jorgensen. Bezos's parents were married
less than a year, and when Bezos was four years old his mother married his step-father Mike
Bezos, a Cuban immigrant.

As a child, Jeff Bezos showed an early interest in how things work, turning his parents' garage into
a laboratory and rigging electrical contraptions around his house. As a teenager, his family moved
to Miami where he developed a love for computers and excelled in school, becoming the
valedictorian of his class. In high school, he also started his first business, the Dream Institute, an
educational summer camp for fourth, fifth and sixth graders.

Bezos pursued his interest in computers at Princeton University, where he graduated summa cum
laude in 1986 with a degree in computer science and electrical engineering. After graduation, he
found work at several firms on Wall Street including Fitel, Bankers Trust, and the investment firm
D.E. Shaw where he met his wife Mackenzie and was named the youngest vice president in 1990.
While his career in finance was extremely lucrative, Bezos chose to make a risky move into the
nascent world of e-commerce. He quit his job in 1994, moved to Seattle and targeted the untapped
potential of the internet market by opening an online bookstore.

Pioneering E-Commerce

Bezos set up the office for his fledgling company in his garage where, along with a few
employees, he began developing software. They expanded operations into a twobedroom house,
equipped with three Sun Microstations, and eventually developed a test site. After inviting 300
friends to beta test the site, Bezos opened Amazon.com, named after the meandering South
American River, on July 16, 1995.

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The initial success of the company was meteoric. With no press promotion, Amazon.com sold
books across the United States and in 45 foreign countries within 30 days. In two months, sales
reached $20,000 a week, growing faster than Bezos and his start-up team had envisioned.

Amazon.com went public in 1997 and many market analysts questioned whether the company
could hold its own when traditional retailers launched their own e-commerce sites. Two years
later, the start-up not only kept up, but also outpaced competitors, becoming an e-commerce
leader.

Bezos continued to diversify Amazon’s offerings with the sale of CDs and videos in 1998, and
later clothes, electronics, toys and more through major retail partnerships. While many dot.coms of
the early '90s went bust, Amazon flourished with yearly sales that jumped from $510,000 in 1995
to over $17 billion in 2011.

In 2007, Amazon.com released the Kindle, a handheld digital book reader that allows users to buy,
download, read and store their book selections. That same year, Bezos also set his sights far, far,
away, announcing his investment in Blue Origin, a Seattle-based aerospace company that is
developing technologies to offer space travel to paying customers.

Bezos then moved Amazon into the tablet marketplace with the unveiling of the Kindle Fire in
2011. The following September, he announced the new Kindle Fire HD, the company's next
generation tablet designed to give Apple's iPad a run for its money. "We haven't built the best
tablet at a certain price. We have built the best tablet at any price," Bezos said, according to ABC
News.

Buying 'The Washington Post'

Bezos made headlines worldwide on August 5, 2013, when he purchased The Washington Post
and other publications affiliated with The Washington Post Co., which owns the paper and other
entities, for $250 million cash. The deal marks the end of the four-generation reign over The Post
Co. by the Graham family, including Donald E. Graham, the company's chairman and chief
executive, and his niece, Postpublisher Katharine Weymouth.

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"The Post could have survived under the company's ownership and been profitable for the
foreseeable future," Graham stated, in an effort to explain the transaction. "But we wanted to do
more than survive. I'm not saying this guarantees success, but it gives us a much greater chance of
success."

In a statement to Post employees on August 5, Bezos wrote: "The values of The Post do not need
changing. ...There will, of course, be change at The Post over the coming years. That's essential
and would have happened with or without new ownership. The internet is transforming almost
every element of the news business: shortening news cycles, eroding long-reliable revenue
sources, and enabling new kinds of competition, some of which bear little or no news-gathering
costs. There is no map, and charting a path ahead will not be easy. We will need to invent, which
means we will need to experiment. Our touchstone will be readers, understanding what they care
about—government, local leaders, restaurant openings, scout troops, businesses, charities,
governors, sports—and working backwards from there. I'm excited and optimistic about the
opportunity for invention."

Recent Projects

In early December 2013, Bezos made headlines when he revealed a new, experimental initiative
by Amazon, called "Amazon Prime Air," using drones—remote-controlled machines that can
perform an array of human tasks—to provide delivery services to customers. According to Bezos,
these drones are able to carry items weighing up to 5 pounds, and are capable of traveling within a
10-mile distance of the company's distribution center. He also stated that Prime Air could become
a reality within as little as four or five years.

Other Activities

Aside from Amazon, Bezos founded a spaceflight company, Blue Origi, in 2000. Blue Origin
bought a launch site in Texas soon thereafter and planned to introduce a crewed suborbital
spacecraft, New Shepard, in 2018 and an orbital launch vehicle, New Glenn, in 2020. Bezos

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bought The Washington Post and affiliated publications for $250 million in 2013. Bezos’s net
worth was calculated in 2018 at $112 billion, making him the richest person in the world.

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