Contemporary Issues In Management

CONTEMPORARYISSUESINMANAGEMENT (INDIANCONTEXT) KEYNOTELECTUREBY: DR.T.K.JAIN AFTERSCHOOOL centreforsocial entrepreneurship [email protected] [email protected] BIZ MAZE 2009

www.afterschoool.tk

BIZ-MAZE 2009 2ND 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

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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

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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

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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

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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’.

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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

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REFORMS …. • unique client code • Withdrawal of restriction on short sales • underwriting made mandatory

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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.

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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

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