Management Thought

Volume III Issue 2

November’16

MANAGEMENT

VISTA MONTHLY E-NEWSLETTER– AMITY BUSINESS SCHOOL

"Focus on a few key objectives ... I only have

three things to do. I have to choose the right peo-

ple, allocate the right number of dollars, and

transmit ideas from one division to another with

the speed of light. So I'm really in the business of

being the gatekeeper and the transmitter of

ideas."

- Jack Welch

Expert Talk: Fed to Raise Rates But in Line With Inflation 2

Business Bytes 3-5

Guru Mantras 6

Events@ABS: Training Program on “Entrepreneurship and Leadership

Skills Development” for the students of Vidya BhavanPublic School -

Gwalior

7

Events@ABS: National Seminar on “Entrepreneurship Development in a

Globalised Economy”

8– 9

Management Terminology 10

Test your knowledge 10

Our Inspirations: Prem Ganapathy 11

Inside the Issue

Fed to Raise Rates But in Line With Inflation

JAN DEHN Head of Research, Ashmore Group

Equities in India are ex pensive compared to many other markets, but the country's macro story is also more solid than many others,

said Jan Dehn, head of research at Ashmore Group, which has about $54.6-billion worth of assets under management. In an interview

to Sanam Mirchandani, UK-based Dehn said India's consumption story is unlikely to get affected by the demonetisation of high-

denomination notes. Edited excerpts:

What is your assessment of the global macro picture after Donald Trump's win in the US election?

It is not significant as to who won the election. The important thing is we have run to the end of monetary policy easing in the west-

ern world and they are all switching to fiscal policy now. What happens now is that they start stimulating fiscally into an economy

that is already at full employment. Inflation is coming and that is basically putting pressure on the long end of the yield curve in the

United States. We are looking at a huge change in the global macro environment and one that investors are very poorly positioned

for. This will send shockwaves through the market and because there is a lot of uncertainty, people are de-risking and selling emerg-

ing markets. But I don't think anything that Trump will do is going to have much of an effect on EMs (emerging markets). Trump is

going to focus on domestic policy which is going to stoke inflation and that is what the bond market is responding to.

Do you think the US Federal Reserve will hike rates in December?

Yes. But the Fed would have to hike eight or nine times just to bring the real Fed funds rate to positive territory. This seems unlikely,

because growth is too tepid to enable the Fed to hike enough to fight inflation without killing the US economy. They are going to

protect growth. The policy, I think, the Fed is going to pursue is one of raising interest rates but only in line with inflation so that real

interest rates stay the same.

What is your view on the ban on higher-denomination notes by the Indian government?

The demand backdrop in India and inflation outlook is very good and the central bank (Reserve Bank of India) is probably going to

ease monetary policy rather than tightening it. We are in a goldilocks environment here and that's exactly the time for this type of re-

form because the economy can take it without pushing it into a significant slowdown. The effect of demonetisation is very good in

the long run for India and in the short term it could lead to some financial tightening, which at the margin can have a slowdown effect

on the economy. The markets are going to take it in its stride. The issue that still affects the Indian market and is holding back the

country's growth potential is recapitalisation and restructuring of the public sector banks. If you really want the Indian economy to

take off and if you want to open the market to foreign investors, you do need to get those banks fixed.

What kind of returns do you expect from Indian equities in the next one year?

Indian equities are expensive compared to many other equities but India's macro story is also more solid than many other countries.

We should expect returns somewhere in the high single digits-low double digits for India for the next year. I am taking into account a

bit of a pull back as a result of the uncertainty that prevails in the fourth quarter.That's going to give us a very attractive entry point

for Indian equities. Indian equities are probably going to underperform the returns we are going to see in other equity markets in EMs

because people are already positioned for it and they are already long. It has already rallied a lot. It is still going to perform well, but

it is just that there are opportunities in other markets such as Latin America.

What is your outlook on the rupee?

The broad backdrop next year is going to be a gentle appreciation of EM currencies versus the dollar, because if inflation rises in the

US and they don't do anything about it, the dollar is going to look a bit expensive and that should result in a gentle flow into EMs,

supporting EM currencies. The recovery story is going to be much stronger and currencies are much cheaper in Latin America. So,

most of the forex money is going to hit Latin America and less of it will go into India. The Indian currency is going to be flat for next

year. It is going to be driven by what happens to the dollar.

Source: http://epaperbeta.timesofindia.com/

Page 2 Expert Talk

Volume III Issue 2 Business Bytes Page 3

State-wise Ranking for Ease of Doing Business in India and the Auto Components Market in Northeast India

November 1, 2016 by India Briefing

Newly divided states Andhra Pradesh and Telengana jointly occupy the top spots in the Ease of Doing Business Reforms Ranking for 2015-2016 con-

ducted by the government’s Department of Industrial Policy and Promotion (DIPP) and the World Bank. Last year’s top ranked state, Gujarat, came

in third in the latest assessment. The DIPP-World Bank report assesses India’s states and union territories based on performance in various categories,

which include single-window systems; tax reforms; construction permits; environment and labor reforms; inspection reforms; access to information

and transparency; and commercial dispute resolution enablers. Information is gathered on a real-time basis, which is made visible on the Business Re-

form Action Plan portal run by the DIPP. This past year, 32 states and union territories submitted evidence showcasing 7,124 reforms. Interestingly,

eight of the top 10 performing states are governed by the ruling party, Bharatiya Janata Party (BJP).

States across India performed much better this year than reflected in the overall national score in the World Bank’s 2017 Doing Business report. In

fact, between July 2015 and June 2016, 16 Indian states implemented more than 75 percent of the 340 reforms proposed by the DIPP’s Business Re-

form Action Plan. The DIPP’s assessment process has encouraged a competitive federalism among states as they compete for higher ranks through

faster implementation of pro-business norms. States with a laggard record include Kerala, Goa, and the northeastern states with a 0 to 40 percent re-

form implementation.

Foreign enterprises seeking to establish presence in India or looking to expand operations in the country can take advantage of the comprehensive

breadth of the DIPP-World Bank’s report as it covers each part of the country and breaks down the reforms addressed. The World Bank Doing Busi-

ness survey, on the other hand, only evaluates Delhi and Mumbai, both cities belonging to states that feature poorly in national rankings at

19th (Delhi) and 10th(Maharashtra), respectively.

What Multiple GST Rates Could Mean For Indian Businesses

NOVEMBER 5, 2016 www.entrepreneur.com

The multiple tax structure announced as part of the Goods and Services tax regime that the Indian government intends to implement as of April 1,

2017, may have serious implications on businesses.

The GST Council backed by Finance Minister Arun Jaitley has finalized a four-slab tax structure of varied taxes from 5 percent, 12 percent, 18 per-

cent to 28 percent depending on the goods and services involved.

Two additional taxes – estimated demerit rate of 40 percent on aerated drinks, pan masala and luxury cars and a second 65 percent rate for tobacco

products – will be imposed as cess upon a 28 percent rate. The cess along with the clean energy cess is expected to be used to compensate states for

loss of revenue for the first five years of GST implementation as promised by the government.

Essential commodities will be taxed at zero percent; goods of common use are expected to fall under the 5 percent tax slab while high-end products

will attract a 28 percent tax and above. Most services are expected to fall under the 12 percent and 18 percent bracket.

Besides the arduous task of implementing this complex tax structure from April 2017 onwards, business houses will have to deal with certain impor-

tant issues before GST becomes a reality.

Businesses will have to ensure goods are fitted into the most appropriate tax rate. Keeping in mind the purpose of GST is to reduce taxes, goods

are likely to be categorized such that they attract taxes lower than the current tax. However, states and the Centre may differ in their categoriza-

tion leaing to further complicating the process.

Companies would want clarity on whether securities would finally fall under the definition of goods as proposed and hence attract additional

tax. Curently, securities are levied with stamp duty, securities transaction tax of 0.1 per cent on delivery-based trades, Krishi Kalyan and Swachh

Bharat cess, exchange transaction charges along with clearing member charges.

Small and medium sized business will have to invest in digitizing their businesses and ensure e-filing of taxes is put in place.

Companies involved in the business of demerit goods that would attract heavy cess will have to access their total taxation. Will the GST end up

being higher than taxes levied until now will need to be accessed.

Banking and financial services may need clarity on whether GST will be imposed on net interest income. If applicable, GST would end up in-

creasing transaction cost which may have a cascading effect.

India leads world in the digital transformation business impact

http://tech.firstpost.com/news-analysis 08 Nov 2016 , 18:23

India leads the world in the digital transformation business impact scorecard, according to a global survey conducted by CA Technologies with Cole-

man Parkes. It reveals that firms in India are seeing the greatest business impact from their digital transformation investments. Sunil Manglore, Man-

aging Director, CA Technologies India, on Tuesday released India results of the global survey while addressing media through video conference from

Mumbai.The findings were based on the Digital Transformation Business Impact Scorecard (BIS), a global ranking of countries and industries across

14 key performance indicators (KPIs) critical for digital transformation success.

The findings were based on the Digital Transformation Business Impact Scorecard (BIS), a global ranking of countries and industries across 14 key

performance indicators (KPIs) critical for digital transformation success. India ranks first on the list for the BIS. With a score of 79 (out of 100),the

impact driven from digital initiatives in India is higher than the global BIS average score of 53 and Asia-Pacific and Japan (APJ) score of

56.Conducted in May and June 2016, the survey covered 1,770 senior business and IT executives from large enterprises, across 21 countries and 10

industry sectors. (Next Pg.)

Cont.

Conducted in May and June 2016, the survey covered 1,770 senior business and IT executives from large enterprises, across 21 countries and 10 in-

dustry sectors. A total of 799 respondents were from APJ area, including 78 in India. “India is at the cusp of a major revolution, as we see digital tech-

nologies being at the center of business strategy for leading businesses.A Our survey results are a testimony to a strong correlation between business

performance and smarter technologies that underpin digital transformations,” said Manglore.The survey found a strong correlation between busi-

nesses adopting digital transformation and their business performance.

The survey found a strong correlation between businesses adopting digital transformation and their business performance. However, despite leading

the digital transformation initiatives, only 46 percent of Indian decision makers believe they are disrupting their respective industries with advanced

digital initiatives. This ranks India at the bottom of the list amongst the countries in APJ.Manglore said Indian businesses were seeing the greatest im-

provement (55 percent) in generating new revenues as a result of digital transformation.

Manglore said Indian businesses were seeing the greatest improvement (55 percent) in generating new revenues as a result of digital transformation.

He underlined the need for Indian companies to collaborate with a strategic partner and ensure adoption of digital technologies and practices that

helps them grow their business revenues while enhancing customer satisfaction and retention.

According to the survey, as many as 84 percent of Indian businesses were seeing moderate to significant improvements in their ability to differentiate

from their competition through digital transformation Almost all India-based businesses (97 percent) showed moderate to significant improvements in

customer experience post digital transformationIndian businesses were seeing (35 percent) improvement in time-to-decision and time-to-act on new

opportunities (business agility) post digital transformation.

Indian businesses were seeing (35 percent) improvement in time-to-decision and time-to-act on new opportunities (business agility) post digital trans-

formation. They showed the greatest gain (56 percent) in terms of impact on employee productivity as a result of digital transformation. From a verti-

cal sector perspective, the top 5 industries in APJ were telecom (BIS score of 45), public sector (45), banking & financial services (41), retail (40) and

healthcare (37).

Govt demonitises Rs 500, 1000 notes: Here is how India Inc reacted

http://indianexpress.com/ November 8, 2016

In a step to curb the major issue of black money, Prime Minister Narendra Modi on Tuesday, introduced demonetization of Rs 500 and 1000 currency

notes with effect from midnight. Welcoming this step, introduced by the PM, bankers and industry leaders said that it has been “a bold and revolu-

tionary” step, and affirmed their commitment to smoothen the transition.

There has been several statements issued by bankers and industry leaders.

“We will strive to restock ATMs at the earliest and make them operational. The Government has given enough exemptions to ensure urgent needs are

met. We will work round the clock to ensure that customers have a smooth experience,” State Bank of India Chairperson Arundhati Bhattacharya

said.

ICICI Bank chief Chanda Kochhar said, “It’s perhaps the most significant move ever taken to curtail the parallel economy. It will give a sharp boost

to all formal channels of payments which in turn will help the formal economy to grow at a faster clip in the long term.”

“It is a big reform which no one expected and will have a huge impact on people who are hoarding money and not disclosing money for tax pur-

poses,” mortgage major HDFC Chairman Deepak Parekh said.

Mahindra Group Vice-Chairman Anand Mahindra tweeted, “success required an element of surprise and its incredible that this master stroke was kept

confidential.” In a lighter vein, he added, “Urgent message to anyone who robbed a bank tonight: You just got robbed…”

Sajjan Jindal of JSW Group termed the move as an “amazing and very brave step to curb black money.”

Nirmal Jain, Chairman of leading NBFC IIFL, said the move “is a very powerful measure to curb black money. The Prime Minister has kept his

promise of taking stern measures against black money. It was done some 30 years ago and since then a huge build up of unofficial money had hap-

pened. On the larger impact of the move, he said it will have deflationary impact in general and more specifically on real estate prices and make

homes affordable. It is also indirectly a boon to honest tax payers.”

Mukesh Butani, Managing Partner, BMR Legal, said, “An unprecedented, bold move leading charge from the front, the PM in the most secretively

planned, seamlessly executed a move to root out unaccounted and counterfeit currency. A combination of national security concerns and wider

agenda to filter out unaccounted income guided the Government to make this move. Figures of high denomination currency in circulation in past 5

years compared to growth in the economy pointed towards indicators of unaccounted money in circulation. Timing was perfect – a month after clo-

sure of the income disclosure week and a week after Diwali such that the impact of short term disruption in festive period is minimised.”

Co-founder and CEO, CoinTribe, Amit Sachdev, said, “PM Modi’s move is a watershed moment in India’s fight against the ubiquitous black money

issue executed with the finesse and secrecy this issue deserves. While this will have several significant benefits for the economy in the long term,

there is likely to be a negative impact on sectors with high cash economy in the immediate term. Sectors like Real estate, construction material, unor-

ganized trade and services will see significant pain in the near term. With liquidity drying up, both NPA and demand for working capital credit are

likely to go up. In view of bank’s ongoing NPA issues, how fast will banks react to this situation will be interesting to watch. With limited tax arbi-

trage between organized and unorganized segments, India will see much sharper move from unorganized to organized segment.

In the long term, though, this is likely to drive several benefits for the economy. India has made the first move from cash economy to a digital econ-

omy. Larger amount of savings and cash will find a way into the mainstream economy and be deployed for physical and financial asset creation. Use

of digital currency and payment systems driven by UPI, wallets and cards will create enormous transparency and paves way for faster evolution of

Fintech companies in India especially in transactions and Online lending space.

Mr Modi has made the right investment for the next generation. This move should improve India’s position on transparency and corruption in the

global league table enabling higher capital flow (FDI/FII) into India. It would be good step for government to think of another VDS scheme with 70-

80% penalty rate to bridge fiscal deficits.”

In a statement, Kunal Bahl, Co-founder & CEO Snapdeal said, “We welcome the Government’s bold and courageous move to weed out black money,

which will have significant long term benefits for the economy. With this, the quantum of India’s economy moving through the digital pipes will wit-

ness massive growth. Both Snapdeal and FreeCharge are committed to supporting all such initiatives.”

Anuj Puri, Chairman & Country Head, JLL India said, “The banning of higher currency notes is a major move which will help curb unaccounted-for

cash in the real estate sector. We have just witnessed a tremendous step towards increased transparency in the Indian real estate industry. The effects

will be far-reaching and immediate, and shake up the sector in no uncertain way. Stricter measures against black money have for long been required

to help bring about greater transparency, give the Indian real estate sector more credibility and make it more attractive for foreign investors. Black

money deals are more common on the unorganized market, but this practice has, in fact, been on the decrease with greater awareness on the part of

buyers. Before too long, the caricatured version of black money driving Indian real estate is no longer applicable.”

Page 4 Business Bytes Volume III Issue 2

Demonetisation: Can India go cashless?

November 16, 2016 http://www.business-standard.com/

Days after the Narendra Modi-led government decided to demonetise Rs 500 and Rs 1,000 currency notes, the queues outside banks and ATM centres only seem to get longer.

With people scrambling to exchange their old banknotes, the use of plastic money in the form of debit and credit cards is being touted as the way forward. Even the government is

promoting cashless transactions to enable people to get by.

But how feasible is the idea of a cashless India? Are we prepared for such a regime? The numbers do not seem to paint a very happy picture.

According to the latest data (July 2016) available on the website of the Reserve Bank of India (RBI), banks in India had issued 25.9 million credit cards and 697.2 million debit

cards as of July-end. These were net figures after adjusting withdrawn and cancelled cards. A month earlier, this figures for credit and debit cards had been 25.4 million and 691.1

million, respectively.

Is the total number of cards enough for India to go cashless and still transact freely? Cards are used to make transactions in three ways. First, they can be used to make payments online; second, to withdraw cash at ATMs; and third, by swiping these at point of sale

(POS) terminals at merchant establishments.

E-commerce transactions completed using cards have not been affected by the demonetisation move (except those where payments are made through the cash-on-delivery mode).

But most of Indians’ other transactions take place mostly in cash. Moving the cash transactions to plastic money would require a large penetration of POS terminals across India.

Besides, the number of cards in use is not reflection of the number of Indians using these cards; a large number of people, especially in urban India, have multiple cards.

What is the current status of POS terminal penetration in India? According to RBI data, India had a total of 1.44 million POS terminals installed by various banks across locations at the end of July. Besides, there were more than 200,000 ATMs

across India. Are 1.44 million POS terminals enough for a country of the size of India to be able to transact cashlessly? There are approximately 150,000 to 200,000 (as per differ-

ent estimates) telecom recharge counters in the state of UP alone. This figure pertains only to telecom retailers and cannot be used to estimate the total retail universe, either in the

state or in India. It does, however, make it clear that the POS terminals available at present are not sufficient to enable India to transact without cash anytime soon.

The RBI data do not inform about POS penetration in rural India but experience suggests that POS terminals so far remain an entirely urban phenomenon. Of the 1.44 million POS

terminals, SBI, Axis Bank, HDFC Bank, ICICI Bank and Corporation Bank account for 1.16 million. Four of these five banks are predominantly urban.

What do people use debit cards for? In the month of July, a total of 881 million transactions across India took place through debit cards at ATMs and POS terminals. About 85% of these transactions were done to

withdraw cash at ATMs. In terms of value, 92% of all debit card transactions were at ATMs. This only suggests that debit cards are used less for purchase and more as a means to

withdraw cash.

What are the challenges in increasing the spread of plastic money in India? POS terminals use mobile internet to enable transactions. Mobile internet penetration remains weak in rural India. Besides, the cost of transactions is also high, as banks charge on a

per-transaction basis. These, in addition to a lower literacy level in poor and rural parts of the country, make it problematic to push the use of plastic money on a wider scale.

Should India go cashless? The beauty of cash is that it just works. Even in the remotest locations of India, where the State might not be present with all its paraphernalia, its writ runs in the form of currency

notes that people use to do business on a daily basis. The large, informal economy that supports a large number of Indians also runs using cash. White money moves to informal

economy with ease and helps support these livelihoods. It does not necessarily lead to the generation of more black money or pose a threat to national security. Cash transactions

are not necessarily immoral transactions. They are a highly refined way in which human beings, having evolved from the barter system prevalent in the ancient period, transact

business today. Cash in itself represents order and evolution.

As cash gets sucked out of the Indian economy, this informal economy and remote areas with poor connectivity will get affected the most. It is suggested that it would take nearly

six months for India to remonetise completely and restore cash supply to the pre-November 8 level. In the absence of an assured transaction mechanism, there is a possibility that

people in the informal sector will migrate to alternative arrangements or, worse, a parallel black economy might emerge and use old, banned currency.

Economic costs of a money supply crunch and the difficulties in using plastic money on a larger scale across a wider geography in India make it difficult for India to go cashless.

Given India’s economic reality, telling people to go cashless might be like telling the poor to eat cake if they can’t find any bread.

Conflict Of Interest? The Indian Twist To Donald Trump Controversy

November 21, 2016 http://www.ndtv.com/india-news/

US President-elect Donald Trump's meeting with Indian businessmen has fed a controversy in the US over conflict of interest after the billionaire's election and raised concerns

over whether he can separate his presidency from his business.

The New York Times reported that days after his win, even before he had interacted with many world leaders, Mr Trump met three real estate developers who have built Trump-

branded luxury apartments in India - Atul Chordia and Sagar Chordia from Panchil builders in Pune and Kalpesh Mehta, Trump's business representative in India. One of them was

quoted by the Times as confirming that in the November 15 meeting, "future business deals" were discussed. Mr Trump reportedly praised Prime Minister Narendra Modi.

Also in the meeting in New York were his son Donald Trump junior and daughter Ivanka Trump, whose presence two days later at Mr Trump's interaction with Japanese Prime

Minister Shinzo Abe was also widely commented upon.

After the meeting, Kalpesh Mehta's Tribeca Developers released his pictures with Mr Trump and his daughter. US President-elect Donald Trump's daughter Ivanka Trump with

Indian businessman Kalpesh Mehta Mr Trump has five luxury real estate projects in India - in Pune, Mumbai, Gurgaon and Kolkata. Apartments in Pune's Trump Towers are said

to be between Rs. 23,000 to Rs. 25,000 per square feet. Trump does not invest in these projects but allows developers to use his name for an undisclosed amount.

Trump has been lending its name to projects all around the world and they have done that in India but it's much more than just the name," Mr Mehta had told NDTV prior to the

meeting, adding, "They have expressed interest in the past to expand their involvement in India, maybe that involves investing equity."

A Tribeca group spokesperson said: "India probably has the highest number of Trump branded real estate projects outside of North America. Trump has five ongoing deals in India

with a gross development value of about $1.5 billion."

Three more projects, said the company, are likely to be launched next year. Vice President-elect Mike Pence has defended Mr Trump and insisted that by the time he takes over,

there would be a 'proper separation' between his business and presidential duties.

India's GDP growth to be better than that of China: Fitch Ratings

25th November 2016 http://www.newindianexpress.com/

While there are many facets to India's demonetisation measure making it difficult to predict the impact on real gross domesti c product (GDP) growth, the growth will still be

higher than China's in the medium term, said Fitch Ratings.

In a statement, the credit rating agency said it expects India's GDP growth trend higher than China's in the medium term.

"In India we expect GDP growth to accelerate in FY2018 on the back of reform implementation, monetary easing of the past year and infrastructure spending, while in China

a continued increase in leverage in the broader economy is more and more becoming a burden for growth," Thomas Rookmaaker, Di rector in Fitch's Asia-Pacific Sovereigns

Group said.

"In China, we forecast real GDP growth of 6.4 per cent in 2017, down from a projected 6.7 per cent in 2016, due to the impact of recent macro-prudential tightening meas-

ures targeting the housing market," he said. In October 2016, Fitch forecast 7.4 per cent growth for the current fiscal for I ndia. Fitch also added that the growth would ace

erate to eight per cent only by 2018-2019, on account of a lagged impact of monetary easing. On the impact of demonetisation on the Indian economy, he said it would be

negative in the short run and depended to a large extent on how long the cash crunch is going to take.

"A significant decline in the growth number for this quarter is highly likely, but for the fiscal year as a whole the decline may still be relatively moderate," he said.

There are many elements to the demonetisation, which makes it difficult to quantify the impact on real GDP growth and explain the wide range of forecasts by different ana-

lysts, he said.

According to him, on the positive side, the demonetisation may improve the fiscal position to the extent more earnings would be declared and a transfer was possible from

the RBI to the government of the seigniorage (profit from the difference between the face value of the currency and cost of p roduction) earned from unchanged notes.

A stronger revenue intake would be positive from a rating perspective, as the fiscal position forms the Achilles' Heel in Ind ia's sovereign credit profile, given the high general

government debt burden and fiscal deficit compared with peers.

Page 5 Business Bytes Volume III Issue 2

Emotional intelligence

Emotional intelligence is the capacity for recognising our own feelings and those of others, motivating our-

selves, and managing emotions well. The emotional intelligence has two major components-personal compe-

tence and social competence.

Personal competence refers to awareness of the self. It means knowledge of one’s feelings, emotions etc. Man-

agement of self relates to being able to adapt to changing situations.

Social competences are the capacity to understand the feelings of others, and the management of relationships.

In other words, the social competence is the ability to work effectively with others.

Emotions can be classified into positive and negative emotions. Both kinds of emotions influence the behaviour

of employees and also the organisational culture. Emotions also differ among individuals based on racial charac-

teristics, gender etc. There are two types of emotions positive and negative emotions. Negative emotions are un-

helpful to attain the goals of organisation. It is our duty to identify the negative emotions. Negative emotions are

the roots of various problems at workplace such as absenteeism, high employee turnover, and decrease in pro-

ductivity, reduced quality, an increasing number of conflicts, decreased motivation etc. Negative emotions may

cause serious problems in any organisations, if left unchecked. So, they have to be sorted out before they be-

come serious. Positive emotions are conducive for the performance of employees in the organisation. It should

be ensure that the positive emotions should remain continuously in the organisation. Positive emotions boost the

morale of employee and help them to work better. It increases the productivity. Positive emotions should be in-

creased and negative emotions can be managed in many ways such as by shifting the focus- we should try to get

the upsetting things off the mind by focusing on something else. By talking to a person with whom emotions can

be shared and who will offer support to solve the problem. By taking a break from your work and try to walk

along the corridors or parking for some time we can manage negative emotions.

Emotional intelligence is most important characteristic that determine the career development. An emotionally

intelligent person possesses qualities of self awareness, self control and social skills etc. An emotional intelligent

leader can understand the need of their team members and anticipate any situation proactively any situation

which may arise. Therefore, emotional intelligence in must to be develop in every person to become successful

in their life.

- Dr. Anil Singh Parihar

Assistant Professor

Amity Business School

Page 6 Guru Mantras Volume III Issue 2

Training Program on “Entrepreneurship and Leadership Skills Development” for the students of Vidya Bhavan-

Public School - Gwalior

A training program was conducted by Amity Business School, Amity University, Madhya Pradesh on 16th November 2016 for the stu-

dents of Vidya Bhavan Public School Gwalior.

The objectives of the training program were

1. To develop entrepreneur skills

2. To make them understand the process of learning.

3. To make them understand the common attributes of the most successful leaders of the world.

4. To develop them as better human beings, better students and better professionals by shaping their learning attitude.

5. To understand aspects of goal setting.

6. To understand and adopt innovation.

The training program intended to develop the participants on entrepreneurship and leadership traits.

The program was based up on role plays, management games and leadership and entrepreneurship development skills. All the partici-

pants very actively attended the training program and took keen interest in all the sessions. They found all the sessions very useful and

were very excited and enthusiastic during the entire training program.

The feedback taken from all the participants was very positive.

The Training program was addressed by Prof. Dr. Anil Vashisht Vashisht (Director – ABS) . The resource persons for the training pro-

gram were Dr. Tripti Tripathi, Dr. Rohit Singh Tomar and Mr. Rajiv Kumar Dwivedi. This training program was organized under the

guidance of Prof. (Dr.) Anil Vashisht (Director – ABS). The students were given certificates by the Prof. (Dr.) Anil Vashisht (Director –

ABS) and Dr. Manoj Pandey (HOD-ABS) after the workshop.

The training program will enhance the brand image of Amity University among educational institutions, will empower students in realiz-

ing their goals, which is a part of Amity University’s vision and will pave a way for getting more such consultancies and projects in

coming times.

Page 7 Events @ABS Volume III Issue 2

Amity Business School organises National Seminar on “Entrepreneurship Development in a Global-

ised Economy”

27 October' 2016: A National Seminar titled "Entrepreneurship Development in a Globalised Economy" was or-

ganised on 27th Oct. 2016 by Amity Business School, Amity University Gwalior.

A nation cannot aspire to become a developed one without having an entrepreneurial environment. It requires a con-

tinuous supply of innovative, creative, and enterprising people. In fact, everyone has potential to excel but only some

are able to do so while many can not and this leads to many socio-economic problems such as poverty, illiteracy, and

unemployment.

Therefore, there is an urgent need to create an environment of entrepreneurship (a process of transforming passion/

ideas into business reality), self-employment, and enterprise creation providing solution to unemployment and blocking

sustainable economic growth. The objective of the National Seminar was to throw light on the entrepreneurship devel-

opment opportunities & a challenges in today’s dynamic global business environment.

The seminar theme provided an excellent opportunity for the delegates-researchers, academicians, policymakers and

other professionals working in these areas to interact with each other, share their views and provide guidance to young

researchers.

The inaugural session of the seminar started with the traditional lighting of the lamp followed by the opening remarks

of the Hon’ble Vice Chancellor AUMP, Lt.Gen. V. K. Sharma AVSM (Retd.). Prof (Dr.) M M P Akhouri, Amway Chair

Professor at FMS, Delhi University was the Chief Guest on the occasion, while Mr. Uday Wankawala, Chief Business

Evangelist -Lemon Ideas Innovation Pvt. Ltd. and Mr Rajesh Mehrotra, Co-Founder &Director- Sports Root graced the

occasion as the Guests of Honour. The dignitaries along with Prof. (Dr.) M. P. Kaushik, Pro. Vice Chancellor AUMP

Gwalior & Prof. (Dr.) Anil Vashisht, Director Amity Business School, also released the Book of Proceedings on this oc-

casion.

Prof. (Dr.) H. K. Singh, Professor- BHU was the Session Chairperson in the Technical Session, which was co-chaired

by Dr. Manoj Pandey, Head of the Department, Amity Business School. Eminent Speakers in this session of the semi-

nar were Prof. Meera Singh, Mahatma Gandhi Kashi Vidyapeeth, Varanasi, Mr. Amit Tiwari,CEO Flying Penguins. The

concluding remarks were presented by Session Chairperson Prof. (Dr.) H. K. Singh, Professor- BHU.

The Valedictory Session of the seminar was chaired by Hon’ble Vice Chancellor AUMP, Lt. Gen. V. K. Sharma AVSM

(Retd.). Mr. Sanjay Bindal, Vice President, J.K.TYRE & Industries Limited was the Guest of Honour for the session.

Dr. Ashish Mehra from GLA University, Mathura was given a cash prize & certificate for the best paper presentation in

this session. The session concluded with the vote of thanks by Prof. (Dr.) Anil Vashisht, Director, Amity Business

School and Organizing Secretary of the seminar.

Page 8 Events @ABS Volume III Issue 2

Glimpses of the National Seminar organized by Amity Business School

Page 9 Events @ABS Volume III Issue 2

Page 10 Management Terminologies MANAGEMENT VISTA

Absolute Advantage - Being able to produce goods more cheaply than other countries.

Abstract- A brief summary covering the main points of a written article or research project.

Accelerator- A company which supplies office space, marketing services, etc., in exchange for payment, to

help get new companies started.

Acceptance Bonus - The amount paid to an employee who agrees to perform a difficult task.

Activity Based Costing- An accounting/business term and method of profitability analysis which calculates

and includes all business costs attributable to (used by) a particular business activity (typically a service provi-

sion of one sort or another for a given market). Conventional accounting tends not to allocate fixed/indirect

costs per activity, which creates risks of overheads not being adequately recovered, or overheads being drained

or over-burdened by one activity or another (the activity concerned thereby seeming a lot more profitable than it

actually is, quite aside from the negative effects on other activities which may be starved of essential indirect

support).

Adjunct - A thing which is added or attached as a supplementary, rather than an essential part of something lar-

ger or more important.

Adoption Curve- A graph showing the rate at which a new piece of technology is bought by people for the

first time. It is based on the idea that certain people are more open for adaptation than others.

Ad Rotation - Describes the rotation of advertisements on a web page - each time a user clicks on a different

page or returns to a page they've viewed previously in the same session, a different advert appears on the

screen.

Adverse Event - Term used when a volunteer in a clinical trial has a negative or unfavourable reaction to a

drug, etc

Test your knowledge #1016

1. Point of Sale terminals of which bank has been authorised to dis-

pense cash up to Rs 2000 at petrol pumps of PSU oil companies?

2. Which American car co will be reexporting back to US cars manufac-

tured by their Indian subsidiary?

3. After voting out Cyrus Mistry as Chairman, who has taken over as

Chairman of Tata Global Beverages?

4. Investment in which industry was called a ‘death trap’ by Warren

Buffett but has now gone ahead and invested in 3 cos from the indus-

try?

5. The principle of subrogation applies to which industry?

ANSWERS: 1015

1. Thomas Friedman

2. Harley and the Davidsons

3. Orient Cement of CK Birla Group

4. Intas pharmaceuticals

5. Salman Talkies

Page 11 Our Inspirations MANAGEMENT VISTA

EDITORIAL BOARD

CONCEPT BY

Prof. (Dr.) Anil Vashisht (Director, ABS)

Creative head

Dr. Deepika Singh Tomar (Asst. Professor, ABS)

Preceptors

Mr. Vikrant Vikram Singh (Asst. Professor, ABS)

Dr. Anand Kumar Shrivastava (Asst. Professor, ABS)

For Suggestions:

managementvistaabs@gmail.com

FEEDBACK AND SUGGESTION FORM

Kindly give your feedback and suggestions in the space provided:-

NAME:

CONTACT No:

FEEDBACK:

____________________________________________________________________

____________________________________________________________________

____________________________________________________________________

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SUGGESTIONS:

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Prem Ganapathy, Owner– The Dosawala

Prem Ganapathy, was stranded at the bandra station,when the person accompanying him left him and ran away. Prem had no local acquaintances or knowledge of the language.

Out of pity, a fellow Tamilian guided him to a temple and appealed worshipers to contribute money for his return ticket to Chennai.

Prem refused to go back and decided to work in Mumbai and started cleaning utensils in a restaurant. He appealed to his owner, to let him become a waiter as he was class 10 pass.

The owner refused, because of regional politics and Prem bided his time till a neighbor hood dosa restaurant opened and offered him a job from a dishwasher to a tea boy. Prem

became a huge hit with the customers because of his excellent customer service, initiatives and relationship and brought business Rs. 1000 daily which was almost 3 times as com-

pared to other tea boys. The life was good. A customer made him an offer. He was planning to open a tea shop in Vashi in Mumbai. He wanted Prem to be his 50 – 50 partner

where the owner would invest the money while Prem would run the shop.

The shop started doing brisk business when the owner became greedy. It hurt him to share 50 % of the profit with Prem and he threw Prem out replacing him with an employee.

Prem was made of a different material and he was never going to be defeated. He took a small loan from his uncle and with his brother, opened his own tea stall. Unfortunately the

neighbourhood residents objected. He then started a hand cart but that also did not work out. He found a spot and set up a south Indian stall. He did not know a thing about dosas

and idli but learnt by observation, trial and error. The dosa stall was a huge hit and flourished during the 5 years from 1992-1997. But why was the tiny dosa stall was was so suc-

cessful in spite of competition from ubiquitous eateries prevalent in Mumbai. According to Prem it was its hygiene, proper appearances of the waiters and fresh ingredients which

stood out as a difference. He saved a couple of lakhs of Rupees and instead of heading home he took the biggest risk of his life and opened a new shop near Vashi station and

named it as Dosa Plaza. His Chinese plaza next to the Dosa Plaza flopped miserably and was shut down in 3 months. Undaunted, Prem realized some lessons from it. He applied

those lessons in making Chinese cuisine in his dosas which worked very well.

He got passionate and invented a variety of dosas with Chinese style like American Chopsuey, Schezwan Dosa, Paneer chilly, Spring roll dosa etc. The 108 types of Dosas in his

menu gets him a lot of publicity. A chance encounter with a customer who was part of the team setting up a food court in a mall in New Bombay advised him to take a stall at the

food court and again Prem was ready and willing to grow and expand. His vision was to grow by better offerings and better customer service. He also went to ad agencies to create

the brand identity including the logo, brands, menu card, waiters dress etc. He started getting a lot of offers for franchising and had to find out the meaning of franchising and its

modus operandi. Dosa Plaza currently has 26 outlets and 5 of them are company owned. It has 150 employees and a turnover of 5 crore. All the branches are connected and net-

worked and there are training managers and proper manuals to maintain standard and uniform product and services.