Domination Feb 2014

VOLUME– IV ISSUE- 02

Domination

Managers OR

Managers

FE

BR

UA

RY

20

14

NEWSLETTER FROM DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Editorial ………………………………………………………

02 | DOMINATION, FEBRUARY 2014 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Dear Readers,

It's February, the shortest month of

the year; bursting forth from the

romance of Valentine's Day to the

auspicious occasion of Basant Pan-

chami the mood swings from ex-

citement to reverence. At the exo-

dus of yet another chilly winter, we

bring another edition of the DoMi-

nation.

This edition features a number of

articles from a diverse range of top-

ics. The cover story of this edition is

on a very interesting topic of

“Hippocratic Oath for Managers”,

written by Kunal Bansal. The author

presents professional ethical stand-

ards with a different point of view.

Another interesting piece is on “Pro

-Globalization vs. Anti-

Globalization” written by Saurabh

Singh. It talks about some of the

views from different groups of peo-

ple on globalization and its pros

and cons. This edition contains a

well written article on the “Mergers

and Acquisitions”, authored by Su-

deshna Naskar. The author pre-

sents an overview of the reasons

and need for mergers and acquisi-

tions.

It is always good to listen to indus-

try experts and to learn about their

journey. The current edition con-

tains an interview of Anupriya Goel.

Anupriya is a DoMS alumnus of

2000 batch and currently working

in Samsung R&D, California. The

edition also includes the success

story of Pierre Omidyar, founder of

the eBay.

DoMination is never short of the

fun quotient. This edition features

the next round of quiz for them

who love brain twisting. The edition

also has a report on guest session

on Private Equity held at DoMS, IIT

Roorkee. We hope that the present

edition of DoMination will be to

your liking. Your thoughts and feed-

back are always welcomed and ap-

preciated. Feel free to write to us

for any input. Happy Reading...

- Regards

Team DoMination

………………………………………………………

Contents

Faculty Adviser

Dr. R.L. Dhar

Team DoMination

Apurva Sood

Arun George

Gaurav Mittal

Mehul Lala

Nilaya Shankar

Rohan Krishnan

Sudeshna Naskar

Vignesh B

Designing Team

Ashish Kumar Jaiswal

Dhruv Kadian

Rakesh Ranjan Kumar

Roorkee- 247 667, India Tel: +91-1332-285014, 285617 Fax: +91-1332-285565 Email: [email protected] Website: www.iitr.ac.in/departments/DM/Pages/Index.html For private circulation only

DEPARTMENT OF MANAGEMENT STUDIES INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

04

26

06

10

Qutopia

16

DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

16

03 | DOMINATION, FEBRUARY 2014

13

09

15

19

DoMS da Evince Success Story

Hippocratic Oath for managers

Pro-Globalization Vs. Anti-Globalization Chlorophyll

Mergers and Acquisitions

Spotlight

mailto:[email protected]?subject=Feedback

http://www.iitr.ac.in/Departments/DM/Pages/Index.html


The oath taken by doctors to

fulfil their duty in any condition to-

wards another life and humanity de-

fines a framework that shapes their

orientation towards society. We are

living today in a very brittle state of

economy and for that matter politics.

Each and every day, managers who

run the big corporations have to take

decisions beneficial for their organi-

zations. And in these times, the mor-

al conduct expected by them may

sometimes be put aside for the

“higher good”, as they say. The point

here is whether they should be

forced to take Hippocratic Oath to

instil in them a sense of morality to-

wards others!

Hippocratic Oath as Wikipe-

dia puts it is “one of the most widely

known of Greek medical texts. It

requires a new physician to swear

upon a number of healing gods that

he will uphold a number of profes-

sional ethical standards.”

Generally taken by medical profes-

sional during convocation, this oath

helps them to remember their duty

towards society. In modern times, it

has since changed a lot but the crux

remains the same.

Hippocratic Oath taken in Weill Med-

ical College, Cornell University –

“I do solemnly vow, to that which I

value and hold most dear:

That I will honor the Profes-

sion of Medicine, be just and gener-

ous to its members, and help sustain

them in their service to humanity;

.

.

.

I now turn to my calling,

promising to preserve its finest tra-

ditions, with the reward of a long

experience in the joy of healing.”

But the question arises,

whether this sort of oath should be

included in the management curricu-

la or not. In 1995, Sir Joseph Rotblat,

in his acceptance speech of Nobel

Peace Prize, suggested a Hippocratic

Oath for scientists. And since then

the talk has accelerated to a new

level to include it in each profession.

Harvard Business School students


Cover Story

Perspective | Chlorophyll | Qutopia | DoMS da Evince | Success Story | Regardez I’economie | Spotlight


………………………………………………………

………………………………………………………have already taken a lead in this

matter. The oath they have formulat-

ed and its signatories can be seen on

the website mbaoath.org

When the political scenario

of our country is on the turmoil and

economic revolution is on the verge,

these kinds of things prepare us to

follow what we stand true. As talked

by Ms.KiranBedi in her speech in IIT

Roorkee, ethics and moral duties

should be part of the curricula. A per-

son can oppose this on the basis of

necessary govt. lobbying, business

profits and cut-throat race to move

ahead but when in doubt, it’s only

the faith that makes us do things

which cannot be done otherwise.

And if we put the seeds of morality in

the school itself, the effect will be

longing. Facing a difficult scenario is

everyday situation for us managers,

and if we stick to what is correct in-

stead to what is needed defines the

kind of person we are. And it takes us

a long way not only in our career but

in personal life too.

Recently, we have seen the

likes of Phaneesh Murthy – ex direc-

tor of iGate corp., Vikram Pandit- ex

CEO of citigroup, Ramalingam Raju –

ex Chairman of Satyam Computer

Services and many more. And it be-

comes evident to not to look away.

So, my view is Hippocratic Oath is

absolutely necessary to put things in

perspective. Each B-School should

takea lead in determining the con-

tents of their oath. This might not

help the veterans already there in

the field but for newcomers like us, it

will give us a chance to uphold what-

ever we held true, and it will con-

stantly remind us the way our con-

duct should be in difficult situations.

The short version of MBA

Oath is as given below (by mba-

oath.org project)-

As a manager, my purpose is

to serve the greater good by bringing

people and resources together to

create value that no single individual

can create alone. Therefore I will

seek a course that enhances the val-

ue my enterprise can create for soci-

ety over the long term. I recognize

my decisions can have far-reaching

consequences that affect the well-

being of individuals inside and out-

side my enterprise, today and in the

future. As I reconcile the interests of

different constituencies, I will face

choices that are not easy for me and

others.

Therefore I promise:

I will act with utmost integrity

and pursue my work in an ethical

manner.

I will safeguard the interests of

my shareholders, co-workers, cus-

tomers and the society in which we

operate.

I will manage my enterprise in

good faith, guarding against deci-

sions and behaviour that advance my

own narrow ambitions but harm the

enterprise and the societies it serves.

I will understand and uphold,

both in letter and in spirit, the laws

and contracts governing my own

conduct and that of my enterprise.

I will take responsibility for my

actions, and I will represent the per-

formance and risks of my enterprise

accurately and honestly.

I will develop both myself and

other managers under my supervi-

sion so that the profession continues

to grow and contribute to the well-

being of society.

I will strive to create sustainable

economic, social, and environmental

prosperity worldwide.

I will be accountable to my peers

and they will be accountable to me

for living by this oath.

This oath I make freely, and upon

my honour.



05 | DOMINATION, FEBRUARY2014


By-

Mr. Kunal Bansal

DoMS, IIT Roorkee(2013-2015)

[email protected]

mailto:[email protected]

………………………………………………………


In today’s world, economies are

evolving at a very fast pace and in a

very un-predictable manner. Today

people are more connected with

each other because of Telecommu-

nication & Technological advance-

ment. Globalization is the new defi-

nition of trade across world in

which Good & Services, Capital are

moving from one place to another

in no time and with fewer barriers.

Globalization is defined as the pro-

cess of international integration

arising from the interchange of

world views, products, ideas, and

other aspects of culture. Advances

in transportation and telecommu-

nications infrastructure, including

the rise of Internet, are major fac-

tors in globalization.

There are two schools of thoughts

on Globalisation; One group con-

sists of those who think globaliza-

tion is good for the world econo-

mies especially the third world

economies and have a lot of bene-

fits, they are called Pro-Globalists

and the others are those who think

globalization is bad and they stand

against it and are called Anti-

Globalists.

Pro-Globalist views on

Avantages of Globalization.

Pro-globalists say that globalization

has lot of advantages for econo-

mies and its people. It has the po-

tential to resolve some big eco-

nomic problems like poverty. Fol-

lowing are the positive views of

globalization:

Free Trade Economies:

Free trade is a policy in which

acountry does not impose taxes,

duties, subsidies or quota on the

import/export of goods or services

from other countries. This allows

consumers to buy goods and ser-

vices, at a comparatively lower

cost.

Peaceful Relations:

Countries are moving to bilateral

trade relations with each other in

order to boost their economy, leav-

ing behind any bitter past experi-

ences if any. Nations now try to

raise capital and strengthen their

position in international trade, ra-

ther than hosting a war. Hence,

globalization has induced interna-

tional peace and security in a big

way.

Global Connectivity & New Mar-

kets:


Perspective


Pro-Globalization Vs. Anti-Globalization

http://en.wikipedia.org/wiki/World_view

http://en.wikipedia.org/wiki/Culture

http://en.wikipedia.org/wiki/Transportation

http://en.wikipedia.org/wiki/Telecommunication

http://en.wikipedia.org/wiki/Telecommunication

http://en.wikipedia.org/wiki/Internet


………………………………………………………With the use of the Internet, the

world has definitely become a

smaller place.

This has been further boosted by

Companies, which have started to

invest in different countries. The

Expending markets have helped

countries to raise money by the

means of foreign domestic invest-

ment.

Employment Opportunities:

One of the most advantageous fac-

tors of globalization is that it fos-

ters the generation of employment.

This happens due to the emergence

of new companies and new mar-

kets, requiring skilled as well as un-

skilled Labour. This also helps to

improve the standard of living.

Quality Products:

As the companies compete with

each other to gain confidence of

the customer, it becomes im-

portant for the companies to focus

on high quality goods and services,

in order to have strong foothold in

the market. Customer gets good

products at cheaper rates along

with options to select from.

Globalization also has effects on

Environment protection, boosting

Travel and tourism.

The topic is incomplete without

considering the negative effects of

globalisation on the world and on

its economy.

Disadvantages of Globalization

High Inequality:

The first and for-most problem ad-

vocated by Anti-globalists is that

the globalization has increased ine-

quality .It has made the rich richer

while making the poor poorer and

the gap between them is increas-

ing.

Unemployment in Developed Na-

tions:

Globalization has increased the Un-

employment rate in most of the

developed nations through the con-

cept of outsourcing. The US /UK

have outsourced the Manufactur-

ing to China and India.

Job Insecurity in Market:

Globalisation has given rise to out-

sourcing affecting unemployment

and job security factors in devel-

oped/ outsourcing nations e.g. US,

Europe. Outsourcing has created a

culture of job insecurity.

Multinationals affect developing

nations’ political Decision making :

Multinational corporations which

were previously restricted to com-

mercial activities are increasingly

influencing political decisions.

Exploitation of Labour

Globalization has led to the exploi-

tation of labour. Human Trafficking,

Child Labour, working in inhumane

conditions or ignorance of safety

standards are all consequences of

globalization.

Apart from these, the consequenc-

es of Globalization also include ex-

ploitation of natural resources lead-

ing to their faster Depletion, defor-

estation, increased social injustice,

etc.

Globalization in my point of

view

Globalization in my view is very im-

portant tool which nations can use

for their development by recognis-

ing their positive terms of trade

and utilising it fully to develop oth-

er areas as well subject to not ac-

cepting unfavourable conditions of

other nations. According to Amart-

ya Sen, a Nobel-Prize winning econ-

omist, Globalization “has enriched

the world scientifically and cultural-

ly, and benefited many people eco-

nomically as well”.

On the other hand, Globalisation

has not been found favourable for

developed economies. Globalisa-

tion has been criticised by econo-

mists who are against the concept

of free-market economies. Econo-

mists like Joseph Stiglitz and Ha-

Joon Chang are against globaliza-

tion. They say that Globalization

has been perpetuating inequality in

the world rather than reducing it.

Some agree that they may have a

DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE 07 | DOMINATION, FEBRUARY 2014



………………………………………………………point. The International Monetary

Fund admitted in 2007 that ine-

quality levels may have been in-

creased by the introduction of new

technology and the investment of

foreign capital in developing coun-

tries. Others, in developed nations,

distrust globalization as well. They

fear that it often allows employers

to move jobs away to cheaper plac-

es. In France, “globalization” and

“delocalization” have become de-

rogatory terms for free market poli-

cies. An April 2012 survey by IFOP,

a pollster, found that only 22% of

French people thought of globaliza-

tion as a “good thing” for their

country.

If we take the example of the iconic

Indian IT company, Infosys, which

believes that when market opens

for trade with developed countries

then jobs will be created for the

middle class or the educated, the

process would also benefit the en-

tire system of support services for

these employees since they have to

spend money on their basic neces-

sities and everyday needs. Moreo-

ver, the creation of wealth would

not be restricted to capital gains

alone but would also benefit those

who produce goods and services

for consumption. This will up-lift

other sectors of the economy as

well, which in- turn increase the

national consumption and also the

GDP. This positive effect can be

seen in cities like Bangalore, Delhi-

NCR, Gurgaon ,Pune etc. where the

presence of multinationals and In-

dian service sector companies has

led to a flourishing economy for the

locals.

We can say that the impact of glob-

alization is visible and affects large-

ly the politics and the economy of

the country but its effect on the

mindset and the culture is noticea-

ble gradually in the way people

think and react. Now our counter-

parts in other nations or people in

other countries have started ac-

cepting Developing nations’ views,

their Ideas, culture and have fully

understood our strength.

Globalization has helped the world

to deal with crises like Unemploy-

ment, Poverty and Human Traffick-

ing. It will help us to raise the glob-

al economy only when the involved

power blocks have mutual trust

and respect for each other's opin-

ion. The way we have developed in

the last decade, globalization

seems to have given us good re-

turns. Globalization has made the

life of the third world citizens a

completely different story. There

are so many foreign companies

that have made way to Orient and

have made India a brand name all

over the world.



By-

Mr. Saurabh Singh


[email protected]


Chlorophyll ………………………………………………………Its wise to learn, its GOD like to create



I loved the silent hour of night,

Sitting by the river side

Staring your eyes in the moonlight,

Was it you that made the night

or the moon that made the night seem so bright.

Look at me now,

I am there, where it all began .

The moon is still at her full, and, riding high,

Floods the calm fields with light .

The airs that hover in the summer sky ,

Are all asleep to-night .

But now I see this moonlight unfold a mystery ,

I see You with me

Illusion and reality, a rare symphony .

Now there are no seasons to wail,

There is no rain in winter pale.

There is nothing here just the Moon and me ,

With this universal surround

And the pitch black of light

In this dimension of sound.

I look at this Moon and make a wish ,

May your slumber end on a shiny night ,

May the Moon be shining bright and you be riding high ,

Just a possibility how it might ,

There is only space for the images in mind .

I wish to be with you..atleast in your dreams

I wish this moon to be by our side

But it’s not to be, it’s not to be

Somehow it seems, you made up the life in me

Now I find this moon staring at me

Eyes fixed, motionless it leans

By-

Ms. Archana Singh


[email protected]


Qutopia ………………………………………………………

It’s Exquizite, Kills your Quriosity and adds to your Quizdom. Need we say more? ‘Qutopia’ – A Utopia of the best Biz Quiz Tidbits to wreck your brains! Rush in your answers to [email protected] before 21st March 2014. The winner will have their names published in the next issue. Also, person getting the high-est score in the current quarter will get a gift voucher. Answers in the next issue of DoMination.

Powered by Buzzing Crowd - Quizzing club of DoMS, IIT Roorkee


1. Which brand has retained its spot as India’s most valuable brand, according to Brand Finance Glob-

al 500, an annual study conducted by a brand valuation consultancy called Brand Finance?

2. Which smartphone maker last week of February launched 5 models under the new ‘Kochadaiiyaan

series’?

3. Which state has unveiled a 20km free Wi-Fi zone, the longest across the globe?

4. The Corporate Affairs Ministry has directed the Registrar of Companies to ensure that no company

be registered with which word as part of its title unless it is a Government company?

5. PepsiCo Inc has moved the Delhi High Court against the release of which film on trademark viola-

tion?

6. Which company will hive off its products, platforms and solutions (PPS) business into a separate

subsidiary called Edge Works at the beginning of the next financial year?


Section A (1 Point for each correct answer)


Qutopia


1. Identify what is different about this

currency.

3. Identify the connect in the collage.

4. Name the company that used this advertise-ment to encourage women to vote.


Section B (2 Point for each correct answer)

………………………………………………………

2. Name the company that uses this add.

Qutopia ………………………………………………………

Section A 1. INS Vikramaditya, Admiral Gorshkov

2. Dena Bank

3. K. Radhakrishnan, Chairman of ISRO

4. UCO Bank

Winner of January edition

Agam Gupta DoMS, IIT Roorkee (2013-15)

12 | DOMINATION, FEBRUARY 2014 DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE


Answers for January edition

SECTION B

1. Jaguar

2. Tesco

3. World Wide Fund for Nature

DoMS-da-Evince Anupria Goel is a 2000 batch pass out of DoMS and

presently working at Samsung R&D, San Jose,

California.

1. Please give us a little insight

about your journey prior to joining

DoMS?

I pursued my degree in commerce

from Meerut University after com-

pleting my schooling from the Modi

School. In January 1998, I visited

Roorkee for the very first time and

instantly fell in love with the UOR

campus (Well that’s what it was

called back then!) The only thought

that crossed my mind was “Wish I

could study here”! In the summer of

1998, UOR introduced its first MBA

program and well, I got a chance to

live my dream, I started my journey

at DOMS in July!

2. What different type of roles have

you played (been a part of) after

your journey from DoMS?

Being the first MBA batch to

graduate from IITR, we were put to

strict programs or regime, as I recall!

DOMS prepared us for the tough cor-

porate world outside! After gradua-

tion, I joined the Citigroup in Mumbai

and worked in their Finance Opera-

tions division for 2 years. After com-

ing to the US in 2003, I switched my

career to Human Resources and ever

since then, I have played various

roles in HR i.e. Training, Staffing, and

Vendor Management etc. I am cur-

rently leading one of the recruiting

teams at Samsung Research America

(R&D) in the Silicon Valley.

I still remember, Prof Harish Midha,

our visiting Organizational Behaviour

professor from Canada, once told me

“Anu, you are cut out only for HR

roles” J - Well, I cannot agree more!!

3. How is R & D different from other

areas in terms of work environ-

ment?

Being a part of Samsung R&D

gives me a feel of working in a start-

up environment, where things

around you are very ambiguous, and

people are just stumbling upon vari-

ous ideas to design, innovate and

develop crazy concepts and innova-

tive products, that enhance the com-

petitiveness of a company. Just to

give you an example – I hire for

teams that came up with the idea/

concept/design of the Samsung Gear

and now, Samsung Fit! It’s fun to be

a part of such innovative teams!

4. Samsung topped in R&D spending

as per the industry report, Is this

direct indication of spending for mo-

bile division or its focusing on other

sectors as well?

Samsung is an industry lead-

er not only in the Mobile segment,

but also in Smart TVs, Home appli-

ances, Wearable, tablets, Cameras.

Samsung is venturing into

Healthcare, Education and many

more new areas.

(On a separate note, did you know, the primary contractor for Burj Kha-lifa was Samsung C&T of South Ko-rea )

5. What advice would you like to

give to students who are interested

in joining this field?

If you genuinely feel ‘People’

are the most important assets of a

company, if you value relationships

more than your targets, and if you

love talking to people, then explore

the wide field of HR. Recruiting is an

integral and one of the most im-

portant and highly visible area of HR.

I recruit great professionals for one

of the largest industry giants in the

world and one thing that keeps me

going is my passion and love for my

job! (Trust me; I don’t hate Monday

mornings J!!)



………………………………………………………

http://en.wikipedia.org/wiki/Samsung_C%26T

http://en.wikipedia.org/wiki/South_Korea

DoMS-da-Evince ………………………………………………………

6. How has IIT Roorkee and in partic-

ular DoMS has helped in your ca-

reer?

In a world, where you are

competing with millions of qualified

professionals, you definitely need a

USP! In my recent conversation with

my managers, she revealed that they

hired me over other great candidates

just because of the fact that I am an

IIT graduate. IIT is recognized across

the globe for its prestige and high

quality education. I truly owe a great

part of my success to IITR/DoMS.

7. Which thing do you miss most

about IIT Roorkee?

Roorkee is not an event or an

instance of my life, it’s an experi-

ence! Whenever I look back at the

days I spent at IITR, all the memories

come rushing by! I can never forget

my wonderful professors / men-

tors, my amazing batch mates, the

late night group discussions – (well,

more gossips and crib sessions than

GDs), Sarojini Bhavan and the friend-

ly hostel inmates, the music section,

the lush MBLs, Satkar, Thomso, our

winning trips to IIML and IMT …

memories are endless …memories I’ll

cherish forever!

I am a part of the IITR Alumni asso-

ciation in the Silicon Valley and keep

meeting folks who graduated in

1960s to those who graduated like

last year – such is the heritage of

IITR!

Special thanks to Dr MP Jain, Prof

Nangia / Prof Midha / Prof Saini / Dr

Bhattacharya, Dr Rahman, Prof Vivek,

Prof Shiri and everyone who made us

strive to excellence. We planted the

seed of DoMS in 1998 and feel so

happy to see it getting nurtured by

all our rock star juniors! We feel

proud to see our alums creating an

impact in India and across the globe.

IITR / DoMS is an amazing place –

enjoy your experience!



“Formal education

will make you a

living;

self-education will

make you a

fortune.”

J im Rohn

………………………………………………………

http://www.brainyquote.com/quotes/quotes/j/jimrohn121282.html






http://www.brainyquote.com/quotes/authors/b/bill_cosby.html

Success Story

Pierre Morad Omidyar is a

French-born Iranian American entre-

preneur and philanthropist, who is

the founder and chairman of the

eBay auction site. In 1995, at the age

of 28, Omidyar began to write the

original computer code for an online

venue to enable the listing of a direct

person-to-person auction for collecti-

ble items. He created a simple proto-

type on his personal web page, and

on Labor Day, Monday, September 4,

1995 he launched an online service

called Auction Web which would

eventually become the auction site

eBay.

It was hosted on a server Omidyar

had created for information on the

ebola virus. The first item sold on the

site was a broken laser pointer.

Omidyar was astonished that anyone

would pay for the device in its bro-

ken state, but the buyer assured him

he was deliberately collecting broken

laser pointers. Similar surprises fol-

lowed. The business exploded as cor-

respondents began to register trade

goods of an unimaginable variety.

By 1996, when Omidyar signed a li-

censing deal to offer airline tickets

online, the site had hosted 250,000

auctions. In the first month of 1997,

it hosted 2 million. By the middle of

that year, eBay was hosting nearly

800,000 auctions a day. In 1997,

Pierre Omidyar changed the compa-

ny's name to eBay and began to ad-

vertise the service aggressively. The

word "eBay" was made up on the fly

by Omidyar when he was told that

his first choice for his web site,

"echobay", had already been regis-

tered. Not wanting to make a second

trip to Sacramento, he came up with

"eBay".

In September 1998, eBay launched a

successful public offering, making

both Omidyar and Skoll billionaires.

As of July 2008, Omidyar's 178 mil-

lion eBay shares were worth around

$4.45 billion. Omidyar is also an in-

vestor of Montage Resort & Spa in

Laguna Beach, California.

In 2010, Omidyar launched online

investigative reporting news service

Honolulu Civil Beat covering civic

affairs in Hawaii. The site has been

named Best News Website in Hawaii

for three consecutive years.[14] On

September 4, 2013, Honolulu Civil

Beat started a partnership with The

Huffington Post, launching the web-

log's latest regional addition, Huff-

Post Hawaii. In 2013 Omidyar an-

nounced the creation of First Look

Media, a journalism venture which

launched February 10, 2014 with The

Intercept, and includes journalists

such as Glenn Greenwald, Laura Poi-

tras, Jeremy Scahill, Dan Froomkin,

and Jay Rosen.

According to Forbes, Pierre Omidyar

is worth $8.5 billion (US) as of Sep-

tember 2013, making him the 123rd

richest person in the world



Pierre Morad Omidyar is a French-born Iranian American entrepreneur and philanthropist, who is the founder and chairman of the eBay auction site

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http://en.wikipedia.org/wiki/France

http://en.wikipedia.org/wiki/Iranian_American

http://en.wikipedia.org/wiki/Philanthropist

http://en.wikipedia.org/wiki/EBay

http://en.wikipedia.org/wiki/Labor_Day


http://en.wikipedia.org/wiki/Ebola

http://en.wikipedia.org/wiki/Laser_pointer

http://en.wikipedia.org/wiki/Initial_Public_Offering

http://en.wikipedia.org/wiki/Laguna_Beach,_California

http://www.civilbeat.com/

http://en.wikipedia.org/wiki/Hawaii

http://en.wikipedia.org/wiki/Pierre_Omidyar#cite_note-14



http://en.wikipedia.org/wiki/The_Huffington_Post

http://en.wikipedia.org/wiki/The_Huffington_Post

http://www.huffingtonpost.com/hawaii/

http://www.huffingtonpost.com/hawaii/

http://en.wikipedia.org/wiki/First_Look_Media

http://en.wikipedia.org/wiki/First_Look_Media

http://en.wikipedia.org/wiki/The_Intercept

http://en.wikipedia.org/wiki/The_Intercept

http://en.wikipedia.org/wiki/Glenn_Greenwald

http://en.wikipedia.org/wiki/Laura_Poitras

http://en.wikipedia.org/wiki/Laura_Poitras

http://en.wikipedia.org/wiki/Jeremy_Scahill

http://en.wikipedia.org/wiki/Dan_Froomkin

http://en.wikipedia.org/wiki/Jay_Rosen

http://en.wikipedia.org/wiki/France

http://en.wikipedia.org/wiki/Iranian_American

http://en.wikipedia.org/wiki/Philanthropist


Regardez I’economie

Most companies desire to

grow by offering better product, ser-

vice and customer care. Those com-

panies with more insight into cus-

tomer needs and preferences and

who utilize more innovative thinking

is likely to attain growth they seek.

Yet some companies also

give thought to accelerating their

growth and using their capital better

by turning to acquisitions sometimes

buying a company seems a better

solution than competing with it. Ac-

quisitions are often essential for en-

try into related product. BHP Billi-

ton’s acquisition of Petrohawk for

$12.1 billion strengthens the mining

giant’s quest for natural gas asset.

Companies frequently seek exclusive

control of innovative components

and systems that enhances their

product or service line. For example

recently facebook bought whatsapp

for $19 billion.

Why Acquire or Merge

No company can be success-

ful alone. Organizations will always

have to relate to other organizations

in one way or another. They have to

buy from suppliers and sell to and

through distributors. They must re-

late to a number of government

agencies and regulate tax or send out

bids. The selectivity and care with

which a firm forms relation with oth-

er firms determine its success. Gen-

eral Motors for example works with

different companies those supplies

engines, dashboard system and other

car components.

Every company will occasion-

ally consider whether to continue a

market based relationship with an-

other company or actually take it

over or even consider a merger. An

acquisition consists of taking over

absolute ownership or a controlling

share of another company and either

absorbing it or letting it operate on

its own with some changes. However

a merger requires two companies

that decide to form a new legal com-

pany which is the merged company.

Some successful mergers are Exxon

Mobil and JPMorgan Chase and the

troubled merger of Alcatel and Lu-

cent.




………………………………………………………


General Motors has made

many acquisitions over its lifetime

buying both its competitors and sup-

pliers.GM acquired several compo-

nent companies of Delphi Automo-

tives worldwide steering business.

This move gave GM more control of

vital electronic supplies to fit its long

range plans. Acquiring and a supplier,

distributor or even a competitor

gives the company ownership power

instead of jus relying on market pow-

er.

Followings are the specific reasons

why a firm might want to acquire or

merge with another firm.

Increase its sales revenue market

share or profitability by taking

over a competitor (GM’s acquisi-

tion of Cadillac, Pontiac, Chevro-

let, oldsmobile and another auto

brand)

Enter into a new business or

market (Proctor & Gamble’s

takeover of Gillette)

Enter into a new geographical

area (Cadbury had very strong

presence in UK and common

wealth countries where Craft had

weak presence)

Increase in ownership of supply

inputs (Sany - china’s leader in

construction) acquired German

concrete pump manufacturer

Putzmeister to improve its prod-

uct quality)

Increase its efficiency by reduc-

ing job redundancies and oper-

ating costs(Both steel companies

Arcelor Mittal and cement maker

Cemex have consolidated their

industry worldwide for greater

efficiency)

Increase its economy of scale or

scope (United Airlines’ merger

continental Airlines to become

the world’s largest airline)

Enlarge its brand portfolio (Coca-

Cola has grown by acquiring car-

bonated soft drink brand like

Sprite as well as juice brands like

Tropicana and water brands like

Dasani

Increase its profits by opportun-

istically buying actual or poten-

tially profitable companies (The

holding company of Berkshire

Hathaway under Warren Buffet is

constantly seeking profit making

opportunities. It has acquired

100 percent ownership of over

40 companies in diverse indus-

tries like Acme Brick, Dairy

queen, Netjets, Helzberg Dia-

monds etc.)

The desire to take over an-

other company is not always consid-

ered a friendly move in fact one can

distinguish between a friendly takeo-

ver and a hostile takeover. In a

friendly takeover the acquiring com-

pany notifies the target companies

owners or board of directors that it

would like to buy the company. If the

board believes that selling the com-

pany would serve the stockholders’

or owners’ best interest they will

then negotiate an agreement.

In a hostile takeover howev-

er the board or owner is unwilling to

sell the company. The acquirer then

engages in number of tactics to

achieve the sale in spite of the target

company’s resistance. The acquirer

can make a tender offer in

public to pay the company much

more price than current market

price. If the company still resists then

acquirer can engage in proxy fight to

persuade enough share holders to

vote in a new management that will



………………………………………………………

Picture Source: Bearingpoint.com

Mergers and Acquisitions approve the takeover. Alternatively

the acquiring company can quietly

purchase enough stock in open mar-

ket to vote in new management that

is receptive to the takeover. The

problem with the hostile takeover is

that the acquirer does not gain all

the information about the target

company creating vulnerability to

hidden risks. A few famous hostile

takeovers include HP’s hostile takeo-

ver of Compaq and Krafts’ hostile

takeover of Cadbury

Whether friendly or hostile

there are questions in any takeover.

Is the price fair? What are the esti-

mated costs? Can the acquirer afford

the acquisition, raise the necessary

money, and reintegrate the money

and the acquisition if the company

goes badly? Will the acquirer be able

to keep the acquired firms talent,

clients and suppliers? What are the

technology risks? Will the acquired

company be broken into parts to sell

off?

One must think over all this

before going for an acquisition or

merger. To overcome such kind of

situations an acquiring company

must perform due diligence that

goes all the way from checking with

acquired firms’ customers and sup-

pliers, and making sure that acquired

firm is not carrying any hidden in-

debtedness, responsibilities or com-

mitments. Some uncertainty will al-

ways exist about a variety of matters:

whether the acquired firms’ manager

and employees will stay with the

new company and be easy to man-

age and whether the acquired firm’s

customers will continue to work with

new management or switch their

purchase to another firm. The reason

to go for mergers or acquisitions is to

capture synergy that happens when

two firms may compliment each oth-

ers in skills such as technical, mar-

keting or financial. One should exer-

cise care in choosing a partner, mak-

ing sure that terms are spelled out

and are understanding in order to

minimize the chance of conflict or

misunderstanding.



By-

Ms. Sudeshna Naskar


[email protected]

………………………………………………………


Spotlight

Every entrepreneur wants to

see his company making it to Fortune

500 list one day but to achieve that

they need appropriate funding at the

right point of time. For management

students and future entrepreneurs, it

is vital to have a sound knowledge

about this aspect of business. Fortu-

nately, students of DoMS, IIT Roor-

kee got such an opportunity to learn

about the same. A Guest Lecture was

organized on the topic “Private Equi-

ty/Venture Capital: In Context of

Funding Options” on 5th February

2014 in DoMS. Lecture was delivered

by Mr. Samir Inamdar and Mr. Hem-

chandra Javeri. Students were eager-

ly waiting for this session and were

excited about it.

Currently, Mr. Samir Inamdar

is working as MD & CEO, Forum Syn-

ergies PE Fund Managers. Previously,

he has over 25 years of corporate

experience in different roles in com-

panies such as Tyco electronics, Gen-

eral Electric etc. He has done me-

chanical engineering from Mumbai

University and Post Graduate Diplo-

ma in Management (PGDM) from

Indian Institute of Management

(IIM), Calcutta. Mr. Samir Inamdar

was accompanied by his colleague

Mr. Hemchandra Javeri. Mr. Javeri is

co-founder of Forum Synergies along

with Mr. Inamdar. Mr. Javeri also has

over 25 years of corporate experi-

ence. He has held many roles across

wide ranging industries in the past.

Mr. Javeri completed his Bachelors in

Commerce from Sydenham College,

Mumbai and then went on to com-

plete PGDM from IIM, Calcutta.

The session took off with a

welcome note from students. It was

followed by showing the Batch

presentation to speakers. After this,

it was the turn of the speakers to

take the stage. Mr. Inamdar started

off by clearly stating the difference

between Angel Investors, Seed fund,

Venture Capital and Private Equity.

He then went on to explain the

strength and weakness of three

types of capital markets viz. Public

Capital Market, Internal Capital Mar-

ket and Public Capital Market. It is

under the aegis of Private Capital

Market that Angel Investors, Venture

Capital and Private equity fall. He

also stated that Angel Investors, VC

and PE come into different stages of

business and are related to risk pro-

file of the business. Speaker also

touched upon different risk such as

Regulatory Risk, Operational Risk,

Market Risk etc. that come into pic-

ture while investing into PE. Next,

Mr. Azeri took students through the

internal process that a PE firm goes

while deciding to invest in a particu-



Private Equity/ Venture Capital: In Context of Funding Options

………………………………………………………

Spotlight lar company. He stressed that Under-

standing Business and Due Diligence

are the two most important tasks in

the whole process. Mr. Zaveri also

pointed that personality and value

system of the owner of business also

plays a key role in making decision.

Lastly, both of them shared some of

their recent investment in startups

such as JustEat, Ampere to give stu-

dents a real hand feel of the whole

process.

This marked end of the session. It

was quite energetic and interactive

session with students asking ques-

tions and clearing their doubts

throughout the process. A note of

thanks was delivered by Dr. Santosh

Rangnekar, Head of Department,

DoMS IIT Roorkee and the speakers

were presented mementos for their

valuable time.



………………………………………………………

Department of Management Studies, IIT Roorkee

Roorkee - 247667, INDIA

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Domination Feb 2014