E D I T O R I A L

Dear Readers,

We hope you all enjoyed our previous edition. We are well into summers now and as things are starting to heat

up, we have returned with another thought provoking edition of DoMination.

This edition features a number of articles from a diverse range of topics such as Governance, Marketing and Economy. The cover story for this edition is titled “Prevailing Slacktivism across the world”, written by Ms Ka-rishma Manik. Slacktivism is the act of showing support for a political or social cause via the Internet, but with little time or involvement required, like signing an online petition or joining a campaign group on a social me-dia website. The Perspective section of this month’s domination is titled “Understanding Inflation”. This article is written by Ms Mohana Bhattacharaya and she gives a descriptive outline of what is Inflation and how it im-pacts our everyday life. DoMination is never short of the fun quotient. This edition features our next round of quiz to test your grey

cells. We also have a Sketch by Mr Ashutosh Puri in which he tries to give his unique view on the Ignorance

women face in our country ( the sketch won the online competition in Cognizance’15, IIT-R) . DoMS, IIT Roor-

kee organized its Annual Management Summit called Confluencia in the month of February. Eminent Speakers

from industry came to DoMS and shared their experience and expertise with the students on varied topics. We

have a report on the event including parts of speeches by some our esteemed guests. It is written and compiled

by Mr Kapil Gupta and Mr Ashutosh Puri.

This edition also includes the success story of Mr Howard Schultz, CEO of Starbucks, written by Ms Karish-maManik. We finish this month’s DoMination with an article titled “India’s Union Budget 2015: Achche din or tough time ahead?” written by Ms Prachi Jain. Prachi has talked about Finance Minister Arun Jaitley’s Union Budgetand its possible implications for the Indian economy.

We hope you will like the present edition of DoMination. Your thoughts and feedback are always welcomed and

appreciated. Feel free to write to us your inputs. Happy Reading.

Regards-

Team Domination

2 | DOMINATION, FEBRUARY 2015 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

CONFLUENCIA

SUCCESS STORY

C O N T E N T S

D O M I N A T I O N

CHLOROPHYLL ___________________________________

WOMEN EMPOWERMENT

__________________________________

THE BUSINESS SUMMIT

PERSPECTIVE _______________________________________

UNDERSTANDING INFLATION

___________________________________

HOWARD SCHULTZ

REGARDE’Z I-ECONOMIE ________________________________________

INDIA’S UNION BUDGET 2 0 1 5

COVER STORY _______________________________________

PREVAILING SLACKTIVISM

QUTOPIA ____________________________________

9

13

18

6

4

10

16

Faculty Adviser Dr. R.L. Dhar

Team DoMination Apurva Sood Gaurav Mittal Mehul Lala Sudeshna Naskar Vignesh B Ashutosh Puri Kapil Gupta Karishma Manik Karan Sharma Vikrant Kanwar

Designing Team Ashish Jaiswal Dhruv Kadian Rakesh Kumar Bratati Roy Brijesh Kori Vishisht Veer

DEPARTMENT OF MANAGEMENT STUDIES

INDIAN INSTITUTE OF TECHNOLOGY

ROORKEE

Roorkee- 247 667, India

Tel: +91-1332-285014, 285617

Fax: +91-1332-285565

Email: domination.doms.iitr@gmail.com

Website: www.iitr.ac.in/departments/DM/Pages/Index.html

(For private circulation only)

3 | DOMINATION, FEBRUARY 2015 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

S L A C K T I V I S M NOUN The self-deluded idea that by linking, sharing or retweeting something you are helping out

A C R O S S T H E W O R L D

Slacktivism is a prominent attribute of today’s generation. All over the world, ordinary people have a lot of opinion sand views on the social and political issues surrounding them, which they want to express to the world. But, despite being motivated enough to shape their ideas intriguingly, the harsh reality is that they are too busy in their lives to come out of their comfort zone and fight for the cause. And, that is what has given rise to Slacktivism. Slacktivism is the act of showing support for a politi-cal or social cause via the Internet, but with little time or involvement re-quired, like sign-

ing an online petition or joining a campaign group on a social me-dia website. Even though it has a little practical impact in serving the real cause, slacktivists get a personal satisfac-tion that they have done their bit in contributing to the society. It is just a feel-good measure that requires little effort or sacrifice on part of an individual. Most of the slacktivists simply share the videos or sign

online petitions in the comfort of their homes or offices, with others wearing T-shirts and bracelets em-bossing the name of the issues in cursive writing font. A recent cause, which has been criticized by many as Slacktivism, is the ALS Ice Bucket Challenge. It involved dumping a bucket of ice water on one's head to promote awareness of the disease Amyotrophic Lateral Sclerosis (ALS) and encourage do-

nations for research. This went viral on all the social media platforms and everyone from celebrities to ordinary people were seen pouring water on their heads, nominating others as well as posting videos on You Tube, Facebook, Twitter, Insta-gram, etc. However, it won’t be incorrect to say that Slacktivism has slowly be-come the ultimate democratization of the mass media. This is because

every little step does help in mov-ing towards the bigger change. Small actions such as Facebook likes, shares, status updates or re-tweets for social or political change does have a powerful emotional and psychological impact on the minds of the people. And, if enough pressure is built up on the issue, success of a social movement cannot be avoided. An example of this is the famous Anna Hazare

movement for Jan Lokpal Bill, where thousands of people gathered together for the sup-port. Mass Media played an im-portant role in spreading awareness regarding the cause. Also, all the important meetings, discussions and deci-sions took place on the social media platforms.

Slacktivism operates at three lev-els. At the first level, every member of a social network makes a deci-sion of what is important to them, by either passing on the cause-related story or not. Even though this may not look as a productive step at the moment, but it will defi-nitely help in spreading the mission in the long run. When seen from a broader perspective, the act of spreading information and aware-

P R E V A I L I N G S L A C K T I V I S M

C O V E R S T O R Y

4 | DOMINATION, FEBRUARY 2015 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

ness of an issue is generally the first step towards fixing a problem. It is easy as well as convenient, and hence, most slacktivists stick to the first level activities only. At the second level, Slacktivists may purchase some items to show support for a cause. This commer-cialism is often denigrated, as most of the times only little or no money actually goes to the cause. This money could have been judiciously used to directly help the cause. And finally, at the third level, only a small group of people remain, who are ‘moved’ enough to take neces-sary action. They help the cause by engaging in street protests, organ-izing rallies, putting political efforts, working with affected people, trav-elling to problem areas, etc. These set of levels initially give a

bird’s-eye view of the issue, with slowly moving to the real cause and matching with the traditional activ-ism. In fact, many contemporary activist groups are also turning to Slacktivistic methods to spread awareness and increase funding. Therefore, Slacktivism is something which cannot be ignored. That being said, not all causes can

be served by Slacktivism, or even

traditional activism. The changes

incurred due to Slacktivism are not

sufficient to devise deep social, cul-

tural, political and economic chang-

es. To obtain significant and quanti-

tative changes in the society, it is

necessary to come out of the hous-

es and exceed the click of a mouse

to put some real-time efforts in-

stead of just haphazardly exclaim-

ing a few empty sentences in cy-

berspace towards a societal injus-

tice.

C O V E R S T O R Y

KARISHMA MANIK karishma.m25@gmail.com

B Y

5 | DOMINATION, FEBRUARY 2015 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

U N D E R S T A N D I N G I N F L A T I O N

P E R S P E C T I V E

DEFINITION: Inflation can be de-

fined as the sustained increase in

the prices of goods and services

due to the increased supply of

money in the economy, in rela-

tion to the physical volume of

business being done. This leads to

a decrease in the purchasing

power of money, and hence, the

value of a particular currency.

Thus, every unit of the currency

will buy a smaller percentage of

the goods and services with rising

inflation.

Types: Deflation: The opposite of inflation is marked by ageneral decline in prices of goods and services, often caused by a reduction in the supply of money or credit. Deflation can have the effect of increased unem-ployment due to reduced demand levels in the economy, which can lead to a condition of economic depression. Japan has been facing deflationary conditions for over two decades.

Hyperinflation: Unusually rapid inflation, i.e., when the rate of in-flation reaches the double digits, it is known as hyperinflation. This is generally caused due to irresponsi-ble printing of currency without regard to the rate of inflation, thus, causing rapid increase in money supply. One of the most notable examples of hyperinflation oc-curred in Germany in 1923, when

prices rose 2,500% in one month.

Stagflation: is a situation where the

economic growth stagnates/slows

down due to high inflation rates

combined with high unemployment

rates. The developed world wit-

nessed stagflation in the 1970s

when the world oil prices rose

sharply fuelling high inflation.

Causes: The causes of inflation can be grouped under two broad catego-ries:

Increase in demand for goods ser-vices: When demand for goods and services rise faster than the supply for the same, prices rise causing inflation. The increase in demand is generally fuelled when people have more money in their hands for dis-posal. This can be due to increased public spending by the government

that transfers the purchasing pow-er to the households through vari-ous schemes, or due to the easy availability of credit facilities. De-crease in taxation can also lead to increase in disposable income of the individuals. Apart from these, the ever-increasing population also places immense pressure on the supply of goods and services. In-creasing exports, despite high do-mestic demands, may also create a condition of shortage in the do-mestic markets, leading to higher prices.

Decrease in supply of goods and services: Industrial disputes can lead to strikes and lockouts at fac-tories halting production and cre-ating a temporary situation of shortage in the economy. Shortage of any of the factors of production (man, material, money, machine etc.) can also lead to the rise in prices of these factors.

6 | DOMINATION, FEBRUARY 2015 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

This rise in prices, in turn, is trans-ferred to the consumers of the final product so that the companies can maintain their profit margins. Natu-ral calamities, like earthquakes, floods and droughts, can damage structures and affect agricultural production, thus cutting off the raw material supply for production. Al-so, a situation of artificial scarcity can be created by un-ethical practices of hoarding and black marketing, by trad-ers and businessmen. When consumers start ex-

pecting inflation, they gener-

ally rush to buy goods at the

moment, rather than later

when they expect prices to

rise further. This heats up the

market as the demand for the re-

quired goods increases unusually.

Since the supply cannot be in-

creased overnight, prices rise. This

adds to the panic with consumers

expeditiously rushing in to stock

more and more. Inflation is pushed

further and might spiral out of con-

trol. Such a condition is known as

spiralling inflation.

Measures to Control Inflation: Contrary to popular belief, exces-sive economic growth can be detri-mental for the economy. At one extreme, an economy that is grow-ing too fast can experience hyper-inflation. While at the other, an economy with no inflation has es-sentially stagnated. The right level of economic growth, and thus infla-tion, is somewhere in the middle. It is very important to maintain that delicate balance. There are a num-

ber of ways by which this balance could be maintained. Some of these are mentioned below:

Monetary Measures: These measures are adopted by the central bank of a country (the Reserve Bank of India, in case of India) to control the supply of mon-

ey in the economy.These measures work as instruments of debt man-agement. Some of these measures include:

Increase in bank rates: The bank rates refer to the rates at which the RBI lends to the other banks. As the bank rates increase, the cost of funds becomes higher for the banks which, in turn, have to in-crease their lending rates to stay profitable. As borrowing becomes dearer, businesses are discouraged to borrow more. Moreover, provid-ing incentives such as higher inter-est rates on savings and fixed de-posits will induce more savings by individuals and households and help in cutting down aggregate consumption expenditure.

Sale of government securities in the open market: When the RBI sells government securities through

the open market, the purchasing power of the public is locked for a certain period, thus, controlling the supply of money in the economy.

Increase in CRR and SLR: By an up-ward revision in the Cash Reserve Ratio (CRR: Banks have to maintain a certain percentage of all the de-

posits in the bank with the RBI in cash) and the Statutory Li-quidity Ratio (SLR: A certain percentage of all the deposits of a bank need to be used to purchase certain government securities), the RBI can reduce the availability of credit in the economy by reducing the cred-it creation capacity of the banks. This is used to control liquidity in the banking system, and in turn, in the economy.

Fiscal Measures: These measures are adopted by the government to affect the changes in purchasing power of the public. These include: Reduced Government Expendi-ture: Government expenditure, financed by newly created money by the RBI, is passed on to the pub-lic as rise in income levels, thus, raising the aggregate demand of goods and services. In order to keep inflation under check, the government must reduce its ex-penditure. Increased Taxation: The excess dis-posable income in the hands of the public can be taken away by means of taxes, in order to balance the demand for goods and services with the supply. With raising ex-isting taxes and introduction of

P E R S P E C T I V E

U N D E R S T A N D I N G I N F L A T I O N

7 | DOMINATION, FEBRUARY 2015 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

P E R S P E C T I V E

taxes, the government can cut spending. Public borrowing: The excess pur-

chasing power of businesses and

individuals are absorbed in the form of public borrowings, by means of bonds. The private savings are mo-bilised and locked up for a certain period of time in these bonds, re-ducing money supply in the econo-my. Other Measures: Supply Management via Imports: The shortage of supply in the do-mestic market can be raised by in-creasing the imports. In order to boost imports, the government can reduce the import duties on the same. The increased imports will have the added effect on the hoarders, who will be forced to re-lease the hoarded goods in the market in order to stay competi-tive, thus increasing the aggregate

supply of the desired goods in the domestic markets. Recent Developments: After battling high inflationary pres-sures and slow economic growth, the country has finally turned around. Post the unveiling of the Union Budget, the RBI cut the lend-ing rates by 25 bps. This rate cut is expected to be transmitted by the banks to their lending rates, boosting economic development and spurring investment. The an-nouncement from the apex bank is a result of controlled and stabilised inflation in the past months and a trust in the new government’s commitment to maintain fiscal dis-cipline. In a major boost to India's sover-eign outlook, Moody’s recently de-clared that the new 'inflation tar-geting' mechanism is a "credit posi-tive" move and it would make RBI's monetary policy tools much more

effective. Under this 'inflation tar-geting' mechanism, the govern-ment has mandated RBI to bring down inflation to below 6 per cent by January 2016 and then target a level of 4 per cent by March next year. RBI will have to explain the reasons if such targets are not achieved. The outlook of the country looks promising, with both the RBI and the government joining hands to revive economic growth as inflation cools.

MOHANA BHATTACHARAYA mohanabhattacharyay@gmail.com

B Y

U N D E R S T A N D I N G I N F L A T I O N

8 | DOMINATION, FEBRUARY 2015 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

C H L O R O P H Y L L “W O M E N E M P O W E R M E N T”- won 2nd prize Cogni-zance’15, IIT-R

B Y

ASHUTOSH PURI ashutoshpuri123@gmail.com

9 | DOMINATION, FEBRUARY 2015 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

QUIZ Q U T O P I A

S E C T I O N - A

Which Indian owned company is behind the visual effects of Interstellar that won an Oscar for its visual effects?

Who took out a full page ad in the Wall Street Journal with the lines “Welcome, IBM.

Seriously and why?” The founder of this company launched this brand in the 1890s in the northwest of

UK. He wanted to make it affordable for people living in the overcrowded slums of Liverpool to protect themselves from the spread of cholera. Name the brand?

She is the CEO and Managing Director of ______________ Limited. In a career span-ning nearly four decades, she has held leadership roles with global brands like Voltas, Cadbury and Coca Cola. She was conferred the "Business Woman of the Year" Award at the 2009 Awards.

I am a very famous product of a very famous FMCG company whose name has been

rechristened twice. The product came to India the very year it rolled out in England in 1932. My original name would have been PCMX (it was finalized but was never kept). Name of the product and company.

What was founded in 1937 by Gangabisenji Agrawal, as a retail sweets and namkeen

shop in Bikaner, Rajasthan ?

10 | DOMINATION, FEBRUARY 2015 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Q U T O P I A

S E C T I O N - B

1.IDENTIFY THE LOGO

2.IDENTIFY THE LOGO AND NAME OF ITS CREATOR

3.IDENTIFY THE FAMOUS PERSONALITY

4.CONNECT THESE

11 | DOMINATION, FEBRUARY 2015 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Q U T O P I A

A N S W E R S F O R J A N U A R Y E D I T I O N

1. Flipkart 2. H&M Beauty 3. Rolls Royce 4. Peter Drucker 5. Fiji and New Zealand 6. Brown and Polson custard powder 7. Primary Education 8. Deloitte 9. Dubai 10.SBI

1. Chinese Eastern Airlines 2. View Master, Mattel 3. Virtual store to place

orders from bus tops and railway stations

4. Darrel Winfield, Marlboro 5. John D Rockfeller

S E

C T

I O

N -

A

WINNER OF JANUARY EDITION

S E C T I O

N - B

NITIN AGARAWAL nitin2396383@gmail.com

12 | DOMINATION, FEBRUARY 2015 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

R E P O R T - D A Y 1

C O N F L U E N C I A : T H E B U S I N E S S S U M M I T

OFFICIAL BANNER

A national symposium, Confluencia has been an enriching and engag-ing event since its inception in 2008. With every passing year it has evolved into one of the most appreciated events by industry pro-fessionals. Continuing with the same spirit and vigor, Confluen-cia’15 was a leap ahead taking the event to new heights. Eminent guest speakers shared their knowledge and insight over latest trends happening in the mar-ket. The event started with a wel-coming speech from Dr. San-toshRagnekar, Head of Depart-ment, DoMS, IIT Roorkee and Pro-fessor Deepak Kashyap, Dean of Faculty, IIT Roorkee. Sirs explained the paradigm shift from the subjec-tive part to objective part in the approach followed at IIT Roorkee to be termed as the first level man-

agement.

The event was graced by the open-ing lecture from Mr. Virag Jain, Re-gional Head, Reliance Capital As-sets Management Co. Ltd. Sir talked extensively on financial de-velopments as well as the econom-ic outlook pertaining to the Make in India campaign. He explained that the macroeconomic trends are continuing to be positive in the near future, the disinvestment by government is going to bring down the fiscal deficit giving positive vibes for economy to flourish. He touched on several topics explain-ing the stock market and how India has jumped from an agrarian econ-omy to directly service economy which is now changing with the committed new government in power. Sir also covered the Mutual fund sector and explained various

functionalities and also how Mutu-al Fund Assets work.

Continuing with the same enthusi-

asm, our next guest speaker was

Mr. Baldeep Singh, GM

(Operations), Walmart. Sir brought

with an enriching over 10 years of

experience from Cognizant and

Jabong. Sir covered various intrica-

cies involved in the logistics and

supply chain management. He

elaborated on the logistics arm

(Gojavas) and catalog arm

(Moksha) of Jabong.

The first part of Confluencia day 1

before lunch break was concluded

by Mr. Suben Rana, recently re-

tired as the VP (Operations), Bajaj

Motors Ltd. Sir came with over 25

13 | DOMINATION, FEBRUARY 2015 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

R E P O R T - D A Y 1

C O N F L U E N C I A : T H E B U S I N E S S S U M M I T

years of experience and shared his thoughts on stress management and how to prioritize various roles we play in our day to day life. Post lunch we had three more lec-

tures with even more energetic en-gagement from all sides. The event restarted with speech from Mr. Atul Tripathi, Senior Manager, Ab-solutdata. Sir touched the hottest topic in the market, i.e., Analytics. Sir covered different apects of big Data Analytics and its implication in logistics. According to sir, in today’s scenario companies have that glob-al footprint they needed and are now focussing on local footprint. Sir talked extensively on the sea-sonality factors involved in logistics innovations and how the customer loyalty comes into picture. Sir also talked about the Monte Carlo simu-lation for optimization of results. Next the podium was graced by

Mr. Sanjay Srivastava, Director -

Analytics, American Express. Going with the flow, sir talked about the history of analytics and how it has become an integral part of decision making and strategy build in to-day’s business world. Sir explained how analytics has evolved from nascent stage to nurture to natural in past few years. Sir imparted his enriching knowledge and explained the descriptive analytics-predictive analytics as well as the career op-portunities available in the field of analytics.

Lastly, the event was aggrandized by the presence of Mr. Mukesh Jain,VP, Head - Big Data

Analyitcs, Reliance JIO Communi-cation. Adignified personality, Mr. Mukesh Jain brought with him the enlightening and enriching experi-ence from Microsoft and Reliance. Sir extensively talked about the precision level required in statisti-cal analysis. He explained four business models for success, namely, product fea-tures, quality of service, adoption-satisfaction and business results. Sir explained the prism of possibili-ties with Big Data Analytics. Sir mesmerized everyone with his fun

filled lecture along with technicali-ties involved in various business models. Sir also covered the A/B testing and categorization of ana-lytics. Sir is currently writing a book

on analytics, Solomo analytics (Solomo- Social, Local, Mobile). Sir explained everything with a bit of humour to make it interesting and engaging. In the last, sir explained the App Analytics and User Attri-tion which could be achieved with proper analysis. Day 1 of Confluencia’15 ended with

everyone wanting for more. The

plethora of knowledge imparted by

eminent guest speakers could not

be covered in a single report. The

students were all gladden and

gratified by the presence of such

esteemed personalities

14 | DOMINATION, FEBRUARY 2015 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

R E P O R T – D A Y 2

C O N F L U E N C I A : T H E B U S I N E S S S U M M I T

Day 2 at Confluencia begin with an

extremely intellectual and inspiring

session by Mr. Gagan Arora, Co-

founder, PrintVenue.com. He gave

his valuable insights on Entrepre-

neurship Opportunities and chal-

lenges in India.

Mr Gagan talked about the various

challenges facing him and his part-

ners when they first began their

entrepreneurial venture. He talked

about various aspects of a Business

Plan and an execution plan and

how at the beginning of your start-

up, you should be equipped to han-

dle multi facet roles. He then dis-

cussed the importance of finding

the right niche in your market and

how printvenue has developed a

niche of online customized printing

He also addressed the MBA stu-dents present about their interest in Entrepreneurship and asked up-on the various challenges facing them in pursuing their interests. Next guest speaker for the day was

Mr. Sridhar Bollam, VP - Analytics,

Capillary Technologies; Sir, spoke

on the topic 'Business Analytics in-

tegration with Technology' in a

highly informative session

Mr. Bollam talked about big data

Exploration in the Pizza industry.

He told us how capillary divided

pizza customers for one of its cli-

ents into 17,000 different segments

and deployed a different marketing

scheme for all these segments. Sir,

talked about Customer Life cycles

and why it is important to maintain

customer loyalty. In today’s world,

every customer has a footprint and

analytics can help us recognize cus-

tomer footprint so that businesses

can customize their offerings keep-

ing the customer in mind.

The final session was taken up by

Mr. Shivinder Singh, Senior Prod-

uct Manager, Dabur. He shared his

knowledge and experience on

'Marketing Insights of Product Plan-

ning'. Sir talked about the Product

strategy of Dabur in early times.

Dabur associated its products with

Herbs and Ayurveda, which has

created powerful brand equi-

ty among the customers. Mr

Shivinder talked upon the

importance of this brand eq-

uity. Sir also touched upon

the complexity of logistics

and the maximum cost of a

product is incurred at the

logistics stage. He then,

talked about the challenges in-

volved in storage of seasonal prod-

ucts and the issue of product stabil-

ity. He briefly compared the prod-

uct strategy of Dabur with other

companies like Himalaya.

The session ended with an interac-tive Q&A round with the students. The Business Summit, to sum up,

was a great experience and stu-

dents gained a lot from the promi-

nent people from various indus-

tries. The practicality of the event,

a glimpse and an exposure to the

world where students aspire to be

as young managers was in itself the

most exciting fact. The event

turned out to be a success and eve-

ryone was left asking for more.

These kinds of events are an inte-

gral part of one’s management ed-

ucation and students hope to see,

hear and interact with more speak-

ers in future events.

KAPIL GUPTA kapil.gupta172@gmail.com

ASHUTOSH PURI ashutoshpuri123@gmail.com

B Y

15 | DOMINATION, FEBRUARY 2015 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

S U C C E S S S T O R Y

H O W A R D S C H U L T Z

Howard Schultz is the CEO of Star-bucks, which is one of the largest well-known coffee store chains of the world. Schultz was born on July 19, 1953 in Brooklyn, New York, to a former US Army trooper and later truck driver Fred Schultz, and his wife Elaine. The family had three kids and was poor. Schultz’s par-ents worked hard to give their chil-dren a decent future, and at that time they could not even imagine that one day their son would be-come one of the wealthiest busi-nesspersons of the United States. The future billionaire grew up in the neighbourhood of low-income families, and he saw an escape in sports such as baseball, football, and basketball. Schultz always knew that it would be difficult for him to break out of this poverty.

However, his dream of becoming successful was stronger than any obstacle. Being a little boy, Schultz often watched his father trying to find a job, which would meet his expecta-tions. When Schultz was seven years old, his father broke a leg while being at work. As he had no medical insurance, the subsequent family financial difficulties left an indelible mark in the boy’s memory. “I saw my father losing his sense of dignity and self-respect. I am sure that this was caused mostly by the fact that he has been treated as an ordinary working man.” – Howard Schultz recalls. At the age of 12, Schultz got his first job as a newspaper seller, and then soon he started working in a

local cafe. The boy faced rather hard experience when he turned 16. He was working at the fur store, where he had to deal with stretch-ing the leather. This exhausting job only made Schultz stronger and his wish to succeed in future firmer. Being physically strong, Schultz ex-celled at sports and was awarded an athletic scholarship at Northern Michigan University where he re-ceived his Bachelor’s degree in Communications in 1975. He was the first person in his family to go to college. After his graduation, Howard Schultz spent three years as a sales manager at Xerox Corporation, and then he started working at a Swe-dish company Hammarplast, where he was selling home appli-ances, including coffee grinders to different businesses like Starbucks.

C E O O F S T A R B U C K S

16 | DOMINATION, FEBRUARY 2015 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

S U C C E S S S T O R Y

When Schultz noticed that he was selling more coffee makers to this little company than the other pop-ular stores, he decided to meet the owners of Starbucks and went to Seattle. "When I walked into this store for the first time—I knew I was home. I can't explain it. But I knew I was in a special place, and the product kind of spoke to me." Schultz later remembered. After tasting Starbucks coffee, Howard immediately fell in love with it, as it was something better than everything he had tried be-fore. And he immediately knew that this was something he wanted to be a part of. A year after meeting with Star-

bucks' founders, in 1982, Howard Schultz was hired as director of re-tail operations and marketing for

the growing coffee company, which at the time, sold only coffee beans, and not coffee drinks. In 1983, Howard went to Milan and re-turned with the recipes of latte and cappuccino, which tripled Star-bucks’ sales over the next year.

He continued doing the great work to later become CEO of the compa-

ny, and in 2012, Forbes magazine ranked Schultz as the 354th richest person in the United States, with a net worth of $1.5 billion.

KARISHMA MANIK karishma.m25@gmail.com

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H O W A R D S C H U L T Z

17 | DOMINATION, FEBRUARY 2015 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

R E G A R D E ’ Z I - E C O N O M I E

I N D I A ’ S U N I O N B U D G E T 2 0 1 5

A c h c h e d I n o r t o u g h t i m e a h e a d ?

The Union Budget of India (Annual financial statement) is the annual budget of the Republic of India. It is presented each year in Parliament on the last working day of February by the Finance Minister of India. This year it was presented on 28th Feb, 2015 by the present honorable Finance Minister Mr. Arun Jaitley for Asia’s third largest economy. Present scenario in India calls for trade off among high growth, fiscal deficit, domestic and foreign in-vestment as well asto ensure that ordinary people get benefited. More than just another pack of pol-icy proposals, India needs a di-recting vision for revolutionizing its economy. The budget gives an opportunity to prove the fact that the immense potential still needs to be unlocked in a country heading towards mod-ern market economy. Key high-lights of the 2015 budget include financial inclusion, transparent coal block auctions, Swachh Bharat pro-gram, Jan Dhan, Goods and Service Tax (GST), Mobile (JAM) and

Aadhar. The “Team India” vision of our respectable Prime Minister is taken care of and measures like housing for all, 24x7 power, clean drinking water, road connectivity, reduction in poverty, provision of medical services, enhancing the quality of education, promotion of entrepreneurship etc. have been proposed with relevant support from the government. More money has been allocated for public investment in the 2015-16 budget, new avenues have been proposed for unlocking funds to monetize unproductive gold assets, National Investment and Infrastruc-ture Fund have been set up, and permit of infra bonds for investing in road, rail and irrigation pro-jects.GAAR (General Anti Avoid-ance Rules) that aims to minimize tax avoidance has been deferred by two years.The intention of the gov-ernment to coordinate efforts un-der the planned Skill Mission is a great idea since we would need a large number of high skilled man-power to realize PM’s vision for

Make in India campaign (a manu-facturing powerhouse). For AamAdmi, there are no chang-es in tax slabs but a slew of tax con-cessions are in place. Liquid petro-leum gas, cooking gas and fertilizer subsidies have been untouched. In line with the pro-growth strategy, corporate tax rate has been low-ered over four years from 30% to 25%to make it easier to get project approvals. The hike in the service tax rate from 12.36% to 14%will impact taxi aggregator segment, online buyers, banking services (except for income from loans and advances), foreign exchange firms, distributors of mutual funds, pur-chase of insurance products, travel industry, other services industries like hotel, online wallets etc. There have been no major policy/reform announcements in the Un-ion Budget that will have a direct impact on the automobile industry. The government has only proposed allocation of 75 crores towards betterment of electric vehicles to

18 | DOMINATION, FEBRUARY 2015 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

terment of electric vehicles to move to the next level of clean technology. In the banking sector, due to limited fiscal space, much couldn’t be offered for the cash-strapped public sector banks (PSBs) whereas the private sector would continue to benefit through higher market share gains and lower tax rate in years to come. Finance minister gave a lip service to e-commerce sector. The sector failed to find a place in the budget. Though measures have been proposed on taxa-tion and they may bene-fit online retailers, but in reality there were no sec-tor-specific measures. To boost the agriculture sector, Rs. 25,000 crore has been allocated for Rural Infra-structure Development Bank and Rs. 5,300 crore to support Micro Irrigation Program. For defense sector, a nominal increase of 9.87 per cent over last year has been proposed and the major focus is put on domestic manufacturing. The key highlighting feature of the budget is that states have been empowered with additional funds

to give more fiscal autonomy. Pri-vatization shall be back nearly after 10 years through strategic disin-vestments (the sale of the govern-ment's majority shareholding in selected companies) which would help in increasing non-tax revenue. Ideas like creation of social security for all, abolition of wealth tax are steps in the right direction to take

the Indian economy to a double digit growth over the coming years. Overall the budget’s direction is

encouraging in current circum-

stances with several macro as well

as micro factors making a clear and

tangible way for a better economic

regime. Stable investments made

across manufacturing, agriculture,

infrastructure and various seg-

ments of the society are focused

towards a steady and sustainable

growth. It drew a mixed reaction,

with some calling it to be as an in-

vestor-friendly India, but others

seeing as a missed opportunity to

tackle structural problems. This

budget is mainly focused on ease of

doing business, infrastructure,

Make in India and social sectors.

Concrete implementation of

GST will help in rejuvenating

the industry and making man-

ufacturing sector more com-

petitive. It made sense to

stretch the fiscal deficit target

by one year because nothing

is to be gained by strict adher-

ence to a paper target when

picking up of the economy is

of the utmost importance. There is

a touch of sensibility by paying

attention to expenditure subsidies

on the absolute poor while cutting

the ones fraught with leakage.

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I N D I A ’ S U N I O N B U D G E T 2 0 1 5

PRACHI JAIN prachijain13@gmail.com

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19 | DOMINATION, FEBRUARY 2015 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

ROORKEE - 247667, INDIA

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