Thursday, April 27, 2006

Richard Daly Effect, Diversification as Comp Adv

First problem definition using Xlogics (More than 1 exist)
1.

Xchaas = Luchaas*Mvar + Muggos*Lvar (Pls refer Motley's http://motleyfoolatiimapgpx.blogspot.com/ detailed definition about Luchaas and Muggos)

Lvar = Conversion rate at which Luchaas can convert to Muggos
Mvar = Muchaas can convert to Luchaas

Lvar < Mvar
2. CI and Richard Daley Effect. As the no of 'Alleged contribution from Richard Daly' increases the CI decreases. At one point in X axis the CI reaches 0. Richard Daly's contribution to English Language might have benefitted him. But we the Luchaas are being bludgeoned by it. We were shot through our heart for atleast 6 consecutive times. For the more inquisitve mind, here is the link,

http://www.askoxford.com/asktheexperts/faq/aboutwordorigins/quiz

When some one told me WIMWI was tough sometime back, I thought it was an 'Arbit' Comment. Now I realize how true he was.

The amount of learning that is happening here is outstanding. I have learned so much in 25 days what I would not have done had I not decided to become a 'Xchaa'. Opportunity Benefits far outweigh Opportunity costs.

Shifting to a different plane.

What causes a Firm to diversify. From my Eco Learning I derive that 'Managerial Decision' -like Managers may simply want to run a large firm, Eco of Scope etc can cause the Firm to Diversify.
At the same time I was also looking for some Oout of Box Factor that can cause a Firm to diversify/attempt to diversify.

I stumped upon the argument by Ramachandran in Hindu about Mittal Vs Arcelor

http://www.thehindubusinessline.com/2006/04/18/
stories/2006041800641000.htm

The fact that the hostile bid may result in favor of Mittal or Arcelor is unimportant, important thing is in the process what has Mittal done to Arcelor.

Mittal and Arcelor - No 1 and 2 Companies in terms of Volume and Profits vice versa globally.

1. Mittal dampened Arcelor's spectacular growth figures by announcing the bid before Arcelor's Shareholder's conf.
2. Arcelor spend(ing) huge amount of money/efforts to hold its fort
3. Arcelor is taking a 4Billion USD loans from European Banks to manage the new dividend payouts and other activities that have arised after the hostile bid. (Apr 26 Eco Times)

So in effect without tasting the blood, Mittal in its attempt to diversify by acquiring Arcelor, has managed to setback few gains of Arcelor.

In net I believe 'Diversification' has been used as a Competitive Weapon in this case.

Lets see how the game proceeds.




Sunday, April 16, 2006

Advance Ski range and a Novice

Much water has flown over the last 10 days. IIMA is a demanding place. Shifting to 4th gear after years of lazying around in neutral gear has not been a easy task.

All said and done, I see a difference in myself.

Multi dimensional thinking - thats what teachings in an MBA class equip you with.

When u see a person shopping, I become curious to observe

why he is shopping, how he is shopping,
Is he getting what he wants,
how does the customer service rep treats him/her,
What is the probability he will choose one brand over other,
How does the shopping mall keeps a supply of 'Kellogg's Mango Puree'. I find it everytime when I search for it in the aisle,
How much amount the mall is making on a single 'Kellogg's Mango Puree'.

and the list goes on.

Arguably there is no other professional program that can make you think in so many angles.


After a couple of bouncers, I am still trying to find my feet here. Hope I shall find them soon. :)

On an interesting note - Arcelor started their first production facility in India couple of days ago. Let the world learn the free market fundas from India.

Sunday, April 02, 2006

Pgpx Kicked Off

Today morning the IIMA Pgpx Program was kicked off by the Chairman of Board of Governors, IIMA Mr. Narayana Murthy.

It was a historic day for all 61 of us dressed in Pgpx T shirts and accompanied by Friends and Families.

We had our classes and after 7 (Short?, Avg W.E - 9 Years) years I sat in a formal class room setting.

My 5 mths Kid was appreciative of the Kick Off Ceremony and held her nerves till the lighting of lamp.

Group Profile, IIMA Pedagogy, Professors, Facilities are excellent.

2Morrow I have my First Case discussion. Trying hard to get those dusty brain cells to be active again.

Tail Ender:-

I loved the 'Brickly Beauty' a.k.a IIMA Old Campus. Louis Kahn smiles thru the open places, geometric shapes and hidden alleys.