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BIZ MAZE 2009
CONTEMPORARY ISSUES IN MANAGEMENT
(INDIAN CONTEXT)
KEYNOTE LECTURE BY :
DR. T.K. JAIN
AFTERSCHOOOL
centre for social entrepreneurship [email protected]
www.afterschoool.tk
91+9414430763
BIZ MAZE 2009
BIZ-MAZE 20092ND NATIONAL SEMINAR ON
CONTEMPORARY ISSUES IN MANAGEMENT
ORGANISED BY
JAGANNATH UNIVERSITY JAIPUR
BIZ MAZE 2009
WHAT ARE THE ISSUES ???
• Changing demand,• ecological issues, • appropriate technology • World wide recession• Greater expectations of stakeholders• Ethics and values• Changing social, economic and political
environment • Expect the unexpected
BIZ MAZE 2009
SMALL SCALE V/S LARGE SCALE – SURVIVAL ISSUES,
• Questions of technology, infrastructure and networking
• Consolidation, super brands and rule of 3
• Question of Economies of scale
• Questions of flexibility, innovation and adaptibility
• MSME law – 2006
BIZ MAZE 2009
ISSUES IN HR
• Industrial unrest • Increasing stress • massive retrenchments in companies. Industries
like BPO, Export oriented units etc. have been worst affected.
• In Pune alone, there have been over 40000 retrenchments.
• The challenge is how to keep the morale high• Cross cultural training, multi skilling, competence
building, and emotional intelligence• How to create a culture of innovation & change
BIZ MAZE 2009
ISSUES IN MARKETING
• how to survive in market structure where demand is falling
• how to match reducing customer demand
• how to ensure that there are no unnecessary inventories piled up
• how to ensure that the company is able to bring innovations in product design and delivery
BIZ MAZE 2009
TRENDS IN STRATEGIC MANAGEMENT
• 1. Corporate governance has become important and many companies have adopted transparency
• 2, companies like Infosys have adopted code of conduct, which enables these companies to run on ethical and professional grounds
• 3. Companies like Infosys have adopted international accounting and reporting guidelines and these will enable these companies to have better reporting
• 4. Companies are adopting better internal control systems.
• 5. Companies are today required to constitute audit committees, remuneration committee and other such measures to ensure that these companies are able to work in transparent
BIZ MAZE 2009
ISSUES IN STRATEGIC MANAGEMENT
• Corporate governance – Voluntary v/s regulatory
• Ethical conduct and code of conduct – ways and means
• Better accounting and reporting practices
BIZ MAZE 2009
ISSUES IN OPERATIONS MANAGEMENT
• how to design products and services which are environment friendly,
• how to develop products and services which are using appropriate technology
• how to develop products and services which are relevant to the today’s issues
• how to design products, which use minimum natural resources
BIZ MAZE 2009
ISSUES IN FINANCIAL SECTOR
• how to ensure that there is no insider trading
• how to ensure that price rigging and other such practices are minimized
• How to ensure that the interests of the investors are protected
• How to ensure that there is transparency, proper disclosure and proper reporting
BIZ MAZE 2009
RECENT DEVELOPMENTS IN FINANCE SECTOR
• grading of IPOs• book building process• mandatory underwriting• dematerialization of shares• demutualization of stock exchanges• greater transparency and better risk
management measures in stock exchanges• investor education and protection
BIZ MAZE 2009
RECENT DEVELOPMENTS IN FINANCE SECTOR
• The Securities and Exchange Board of India, set up in 1988 & SEBI Act 92
• Capital Issues (Control) Act, 1947 repealed & CCI abolished
• National Stock Exchange of India (NSE) with computerised on line screen based nation- wide electronic trading
BIZ MAZE 2009
CREDIT RATING
• CRISIL (Credit Rating and Information Services (India) Limited) was set up as the first credit rating agency in 1987. ICRA Limited (Investment Information and Credit Rating Agency of India Limited) in 1991 and CARE (Credit Analysis and Research Limited) in 1994 and Fitch Rating India Pvt. Ltd.
• Credit Rating Agencies are regulated by SEBI(Credit Rating Agencies) Regulations, 1999.
BIZ MAZE 2009
Requirements regarding public issues
• The promoters should contribute not less than 20% of post-issue capital,
• minimum public shareholding of 25 per cent
• grading of IPOs by the rating agencies at the option of the issuers
• abridged letter of offer which shall contain disclosures as required to be given in the case of an abridged prospectus
BIZ MAZE 2009
CLAUSE 49 OF LISTING AGREEMENT
• appointment of the independent directors.
• compliance date December 31, 2005.
• maximum gap between two Board meetings,
• sitting fees of the non-executive directors and
• certification on internal control system by the CEO/CFO
BIZ MAZE 2009
REFORMS IN FINANCIAL SECTORS
• Clearing and settlement cycle =T+2
• Qualified institutional buyers (QIBs) have prohibited from withdrawing their bids after the closure of bidding.
• SEBI introduced additional criteria of ‘net tangible assets’, ‘minimum number of allottees in public issue’ and ‘profitability’.
BIZ MAZE 2009
REFORMS IN FINANCIAL SECTORS
• Mutual Funds permitted to make investments in foreign debt securities including government securities
• Mutual Funds required to disclose the portfolios on their web sites in the prescribed format before the expiry of one month from close of each half-year
BIZ MAZE 2009
REFORMS ….
• unique client code
• Withdrawal of restriction on short sales
• underwriting made mandatory
BIZ MAZE 2009
DEMUTUALISATION OF STOCK EXCHANGES
• no broker member of the stock exchanges shall be an office bearer of an exchange or hold the position of President, Vice President, Treasurer etc.
BIZ MAZE 2009
CONCLUSIONS
• The issues are due to changes in economic, social and political environment
• World Economic system is undergoing massive changes
• Managers have undertake SWOT analysis and evolve strategies to suit the situation
• The age of discontinuity has started
BIZ MAZE 2009
It is all just a drop in the ocean…THANKS
The discussions should continue…
YOUR SUGGESTIONS ARE WELCOME
