Monday, 30 January 2017

Why is a residential MBA always a worthwhile investment?

When we come across a smart professional, highly apt at their game, it is a natural phenomenon that we get immediately impressed and can’t help but develop a certain curiosity.The curiosity is about getting to know the person up-close and trying to find out whether it is a born trait or an acquired skill set that makes them the winner they are today. 

Yes, there is a distinct possibility that such charismatic people might be gifted in their DNA, but it is through intense professional training that skills are honed and polished.

It is no secret that MBAs from top notch B-Schools are dominating the corporate structure globally and the one thing about all these graduate management programs worldwide is the fact that almost all of them are delivered the full time on a residential campus. Most of these corporate honchos will tell you that they were not the same animal and even their shadows looked different before they got into a business school.

The classroom has its limitations of a pre-decided curriculum, so the bulk of the actual transformation happens beyond the walls of these lecture halls.

The entire persona of an aspirant becomes an adapted coagulate of the whole experience that the student goes through, right from the classroom, libraries, canteens to the dorms/hostels. Peers and seniors significantly influence once thought process as they are the most relevant, being in the same ambiance going through the same rigors and challenges.

MBA is a two-year lifetime experience that includes case studies, group discussions, debates, workshops, projects and so much more. The optimum outcome of this entire process flow happens when learning is through spending time with like-minded batch mates and professors beyond the stringency of classroom timings. This is substantially observed in a Hostel environment where community living is encouraged.

The diversity that students enrolled from various academic and cultural backgrounds bring in are breeding grounds for new innovative ideas and becomes a primary source of networking for fellow students. This diverse experience when only confined to classrooms will go underutilized until the adequate time is spent with classmates who also become hostel mates after class hours.This gives sufficient opportunities to develop the camaraderie through engagement in intellectual masturbation while brains are picked in assignments, case studies, etc.

The MBA experience at GIBS is not limited to academia only as recruiters are hunting for a well-rounded profile.The extra curriculum is not confined to sports or music anymore, so classrooms are not enough to provide the essential.The Hostel follows its curriculum where cultural fraternities, sororities, and clubs,  are hubs of intellect stimulation. Many entrepreneurial blueprints are designed under these Hostel roofs, and fresh ideas flow unapologetically and unflinchingly in late night “addas”. 

Considering the time saved from an everyday traveling adds ounces of energy to a student’s already stressed out mind and body, but often special lectures are scheduled on odd hours which almost becomes inaccessible to students not staying nearby and becomes an incredible loss of opportunity.

Summing up, it is needless to say that a residential program adds soul to the whole learning experience in the MBA curriculum at GIBS.Even if it might look like an unnecessary expense for students whose homes or relatives are not too far, it is an investment worth every penny of it.

Home or a homely atmosphere can be distracting at times and two years is just too little to let even a moment pass by that is not well spent and adds value to one’s pursuit of achieving the objective of joining an MBA program.

Friday, 6 January 2017

Environmental Laws and How They Affect World Economy


Environmental degradation and concerns about its policies has risen considerably in the past few decades. The debate of what kind of policy should be brought in to get a positive change in the environment continues. The lawmakers are torn between ardent environmentalists who want a change at the earliest and equally zealous economists who want to quantify these policies.
Over the years, in fact, the definition of what environmental law or regulations is itself has become very polarized and have different interpretations per different ideologies. However, for economists this has been a chance to critic and point out deficiencies of governments concerned.
Most economists argue based on costs when it comes to environments laws. But it is difficult to quantify the costs of environmental values like healthy ecosystem, clean air or clean potable water. Many environmentalists respond to such argument by telling that the economy depends on the environment and not the other way around. The worst part is that there is an ethical or moral aspect that comes in the way that usually undermines the financial part.
Economists also argue that strict and very rigid laws and regulations have led to people losing jobs in various sectors of economy. The whole manufacturing industry was hit although not at a very huge rate.
Environmentalists, on the hand, tell that if they do not take a step now the degradation might as well continue and not stop at all. They say that with the amount of resource depletion and pollution in the world, there might not be an economy to survive at all.
“The economy is a wholly owned subsidiary of the environment, not the other way around.” Said Gaylord Nelson, former US senator, in a speech whilst celebrating earth day.
The raison d’ĂȘtre for the laws is not to bring down the economy but to make the world a better place to live in. Furthermore, there is a huge number of environmentalists who say that entrepreneurs can build their firm and economy with regards to the environment. Innovation in new technology and resources will be a boon not only to the environment but also to the economy. The whole idea of sustainable development should become ingrained in people so that they educate and become aware of what is the future like.
The government also, this is something both economists and environmentalists agree on, must take effective, practical, and analysed decisions on environmental laws and issues. They should not push the papers just because the environmental groups are asking them to. At the end of the day, it is the government who takes the decision but they ought to keep in mind the aspects of what the people want and what the industries are demanding.

Powerful Female Business Leaders & Their Inspiring Stories

Gender does not define what a person does in their life. This is probably the mantra that some these women took very seriously and achieved more than what is expected of them. Here are some inspirational women business leaders who have broken all stereotypes and achieved the unachievable.
  • Untitled-1Indira Nooyi
Born in Madras on October 28 1955, she has a double master’s in business administration from IIM-Calcutta and a master’s degree in Public and Private Management from Yale School of Management. She started working with the Boston Consulting Group and later held positions in Motorola and Asea Brown Boveri. She started working with PepsiCo from 1994 and was named the CFO in 2001, and eventually in 2006 she was named the CEO of the company. Since her appointment as the CEO of PepsiCo, the net profit of the company increased from $2.7billion to $6.5billion. She has consequently been listed among Forbes top 100 most influential people since from 2007. She also holds the 3rdposition in the “world’s powerful moms’ list” and her daughters say that they talk to their mother at least 3 times in a day. Her idea to reclassify and redefine Pepsi’s products “fun for you” (such as potato chips and regular soda) to “better for you” (diet or low-fat versions of snacks and sodas), and “good for you” (items such as oatmeal) had significant impact in earning the profits for the firm.
  • Untitled-2    Arundhati Bhattacharya
The first woman to be the chairperson of State Bank of India was born in Kolkata on 18th March 1956. After completing her master’s degree from Jadavpur University, she went on to join SBI in September 1977 as a probationary officer. She can be called a very versatile woman as she held various positions in SBI over a career of 36 years. She has also served at the bank’s New York office. She has been involved in the launch of several new businesses such as SBI General Insurance, SBI Custodial Services and the SBI Macquarie Infrastructure Fund. She was named 25thmost powerful woman in the Forbes list and is the 4th most powerful woman in Asia pacific.
  • Untitled-3 Chanda Kochhar
Born on 17th November 1961 in Jodhpur, Rajasthan, she did her bachelors in Mumbai in Jai Hind College. Her academic track record itself is a proof of her grit and hard work. After graduating she studied cost accountancy and got a master’s in management studies from Jamnalal Bajaj Institute of Management Studies, Mumbai. She received the Wockhardt Gold Medal for Excellence in Management Studies, as well as the J. N. Bose Gold Medal in Cost Accountancy.  In the year 1984, Chanda started her career as a management trainee in Industrial Credit and Investment Corporation of India (ICICI). Her talent and hard work helped her raise above her peers. She became the Managing director of ICICI in the year 2009. She brought instrumental changes over the years to the firm. Kochhar was ranked as the most powerful businesswoman in India in Forbes’ list of ‘The World’s 100 Most Powerful Women 2013’. In 2015, she was ranked first in the Fortune List of 100 Most Powerful Women in Asia Pacific.
  • Untitled-4 Kiran Mazumdar-Shaw
Born and brought up in Bengaluru, this woman needs no introduction. Born on march 23rd1953, Shaw graduated from Bangalore University with bachelor’s in Biology and Zoology. Her father Rasendra Mazumdar, the head brew master at United Breweries, suggested young Kiran to study fermentation. This was not considered a woman’s profession at that time and Shaw was the only girl in her class, although she always topped with high results. She worked as a trainee brewer in Carlton and United Breweries, Melbourne and as a trainee maltster at Barrett Brothers and Burston, Australia. Wanting to settle down in her hometown she searched for a job here but was rejected only because of her gender. She eventually got a position in Scotland. Before she could consider moving there she met Leslie Auchincloss, founder of Biocon Biochemicals Limited, of Cork, Ireland who wanted to expand their industry to India. Auchincloss was looking for an Indian entrepreneur to help establish an Indian subsidiary. And she thought Kiran was the right candidate. Mazumdar agreed to undertake the job on the condition that if she did not wish to continue after six months she would be guaranteed a brew master’s position comparable to the one she was giving up. Shaw rented a house in 1978 with Rs.10000 as seed capital. Initial struggles were ruthless as she got neither funding, nor the technology to expand her business. She did not even have an idea how to go about in the business world as she was a science student. Within a year of its inception, Biocon India could manufacture enzymes and export them to the US and Europe, the first Indian company to do so. At the end of her first year, Mazumdar used her earnings to buy a 20-acre property, dreaming of future expansion. The dream became reality and today Biocon is one of the leading pharmaceutical companies in the world. The list of awards won by this iron-clad woman is endless. She has consequently been listed in Forbes and TIME magazine’s most influential people for 5 years.
Untitled-5
  • Naina Lal Kidwai
Born in 1957 to an insurance company CEO, Kidawai is a banker, Chartered Accountant and business executive. She is currently the Group General Manager and Country Head of HSBC India. She is also the former President of the Federation of Indian Chambers of Commerce and Industry (FICCI). She has a Bachelor’s degree in Economics from University of Delhi (1977 batch) and an MBA from Harvard Business School in 1982. Kidwai was the first Indian woman to graduate from Harvard Business School and the first woman to guide the functioning of a foreign bank in India. She is also a qualified chartered accountant. Kidwai has repeatedly ranked in the Fortune global list of Top Women in Business, 12th in the Wall Street Journal 2006 Global Listing of Women to Watch ad listed by Time Magazine as one of their 15 Global Influential 2002.
  • Untitled-6 Mallika Srinivasan
Born in 1960 in Chennai, her academic track record would hold good for the rest of her life. A university gold-medallist in Econometrics from the University of Madras, she graduated as a member of the Dean’s Honour List, and the Alpha Beta Gamma Society, from the Wharton School of Business, University of Pennsylvania, United States, and was ranked as one of its top 125 most successful alumni. Mallika Srinivasan is the Chairman and Chief Executive Officer of Tractors and Farm Equipment Limited, a tractor major incorporated in 1960 at Chennai, India. She is on the Board of AGCO Corporation – United States, Tata Steel Limited and Tata Global Beverages Limited. She is a member of the Executive Board of the Indian School of Business, Hyderabad, the Governing Board (Rural Technology and Business Incubator of the Indian Institute of Technology, Chennai and the Bharathidasan Institute of Management, Trichy. She led the company’s growth to its present status with revenues of INR 96 billion with diverse interests in tractors, farm machinery, diesel engines, engineering plastics, hydraulic pumps and cylinders, batteries, automobile franchises and plantations. In 2011, she was voted Entrepreneur of the Year by Ernst and Young; awarded the Woman Leader of the Year award by Forbes India; recognized by Forbes Asia as one of the Top 50 Asian Power Businesswomen, ranked second among India’s Most Powerful Women in Business by Fortune India and named among the six Most Powerful Women of India Inc. by Business Today, while the Asian Business Leadership Forum (ABLF) honoured her with the ABLF Woman of Power Award. NDTV Profit, India’s leading business television channel, accorded her the honour of Business Thought Leader of the Year 2012 Award, at the NDTV Profit Business Leadership Awards.
These women go on to prove that nobody should be underestimated to achieve anything in life. They serve as an inspiration to millions of young girls, to pursue a career of their choice and fight against all odds to become the best at anything they do. In an era and country where women were expected to stay at home and look after their family, these women broke stereotypes and perceptions, by building successful business empires.
At GIBS, we encourage our students to follow their passion, and spread their wings.

Tuesday, 3 January 2017

Impact Of A Cashless Economy On The 1.2 Billion Indians

The introduction of new 2000 and 500 notes came in as a shock and surprise to most people in the nation. Although the notion behind the introduction was supported but the practicality was critiqued. But one good aspect of all this was the push unto cashless economy that people have been talking about. ArunJaitley, the Finance minister of India, said “The note Ban is not merely nudge the economy in the direction of cashless economy but [give it] a significant push in that direction.” The general public were still digesting the whole note ban phenomenon when this new cashless idea came forth.

Basically a cashless economy means an economy that runs on digital cash which includes debit and credit cards, e-wallets, e-payments, and online transactions like NEFT, RTGS etc.

In a country like India, it seems very radical to change to a cashless economy as cash in its liquid form is used very widely. 85-90% of the economy runs on cash transactions and people seldom use the cashless way to deal in day to day life. The demonetization move actually made 85% of India’s cash null. Time had come for people to take a new carved way i.e. the cashless way.

Cashless economy has been laudedfor the reason that it will actually curb down the black money in the economy. Furthermore, these transactions leave a trial which can be used for taxation purpose. These new methods of transaction will provide universal banking services to all the people in the country making it easier to transact between far off places as well. 1 in 7 notes is supposed to be fake, which has a huge negative impact on economy, by going cashless, that can be avoided. The costs in online transaction seems to be the main concern for people to use their cards right now, but this will reduce immensely if the cashless action plan takes a full swing.

However, cashless economy has been criticised for various reasons. One of it being the fact that common people feel it is very complicated to deal everything online. Another reason is that internet and financial literacy might not be there among some people. India is dominated by small retailers. They don’t have enough resources to invest in electronic payment infrastructure. Another major fear that has risen is that of hackers who might take control of the banking system itself. So people are quite sceptic about this as well.


It has been 50 days that Mr. Modi asked for. And today we can see not much has changed except for the fact that even the vegetable vendor has a card machine to transact. So whether the country is going through an economic development or a degradation, this time will only tell.  

After-Effects Of Demonetisation

Demonetisation is being called one of the boldest and drastic measures taken in the history of independent India by Prime Minister Modi. The move has been lauded for being an excellent step towards eradicating the infamous black moneyin our society. It is told to bring back the unknown black money and make India a much richer and safer place to live in.

But what kind of an impact does this have on common men, the small traders, and other small shop owners.

Post announcement of the demonetisation move, people rejoiced that black money and all the evil that came with it would disappear. The next day itself people realised that this was a huge step taken rather hastily.

Now, almost after one month of the announcement of the move, people seem to be frustrated. Especially the common, poor and the daily working men. There have been complaints about how people waited in the queue for almost 8 hours to get their money exchanged with the new notes.
The small trader and small shopkeeper say that their business has been the worst hit since one month. These people deal with liquid cash on a day-to-day basis and due to the unanticipated note ban, their business has been hit adversely. The flower, fruits, and other road side vendors said that they usually bought their goods in bulk for a 500 or 1000 rupees. But could not do so as the wholesaler did not accept the notes. They earn money on a daily basis and suffered immense loss.

Similarly, the daily wage worker, who are required in all types of industries, were also largely hit. These people get paid at the end of the day after they do their and usually are paid around 800 to 1000 rupees. With insufficient hundred rupee notes with their employers, daily wage earners were either denied of any work or were told they would be paid in a later day. These worker earn the money to meet daily needs and cannot forgo the money that they get. They say it was a not a good move at all.

Furthermore, the same common and ordinary working citizens have questioned the functionality of 2000 rupees. The small traders and shopkeepers deal more in hundreds than thousands. Thus, they wonder where to find change for a rs.200 sale if the customer gives a 2000 note. This has led to a lot of confusion and chaos.

Banks have seen a long line of queue in front of their office. Frustrated customers and equally frustrated bank officials do not mix well. There are quarrels reported and of course the death that was apparent due to waiting in the line.


With the unfolding of this new move, common people have started to have an opinion that the government is not for the poor while making a safe haven for the rich and upper class. However, there is still a majority of people who believe that this move is a good one and prosperity will soon be in our way. All that needs to be done is wait and watch.

Paving The Way Towardsa Cashless Economy

On 8th November 2016, the Government of India took the bold step of demonetising all ₹500 and ₹1000 banknotes, ceasing the usage of all these banknotes as a form of legal tender in India. In an effort to stop the counterfeiting of current banknotes used to fund terrorism, and to control the black money in the country, the Indian Prime Minister Mr Narendra Modi made a live address to the nation declaring the usage of ₹500 and ₹1000 banknotes invalid, and announcing the issue of new ₹500 and ₹2000 banknotes, in a bid to reduce corruption, terrorism, and drug smuggling.
In the ensuing days, a lot has been written for and against this move. Although in general, the move to demonetise and thereby hinder black money was appreciated by the masses, the manner in which it was carried out, and the hardships caused to the common man has been criticised. It is important to understand the economics behind this historical move before forming any further opinion.
Demonetisation is a radical monetary step to invalidate a currency unit’s status as a legal tender. Such a monumental step is usually taken when there may be a need to change national currency, for example when the European Monetary Union nations decided to adopt Euro as their currency. In India’s case, this is a move to curb corruption and control counterfeiting by reducing the amount of cash available in the system.
There is no transparency or accountability for a significant amount of cash flowing through the Indian economy, with the money never entering the tax system of the county, hurting the Indian economy, and making the honest, working class Indian suffer. Due to large amounts of unaccounted money in the economy, the government is unable to collect enough tax revenues, prompting increasing of taxes, further impacting honest tax paying citizens. Rampant corruption exists because of a cash economy, as it allows the money to be unaccountable. Demonetisation may not completely weed out corruption, but it will enable the system to capture the flow of money.

This historical move is likely to have a significant impact because of being unanticipated, thereby not giving people any time to find means to park their black money. A cashless economy can help curb inflated prices, recapitalise banks, reduce interest rates thereby increasing capital inflow to the economy. Such monumental changes cause their share of inconveniences but recalibrating an entire nation’s economy is no small feat. Currently, only 2.6% of the Indian population pays taxes! The rest either don’t make enough money or siphon it off and bypass taxes. Accountability of the cash flow will help the system identify and keep track of the Indian currency, and control tax evasion. As Prime Minister Modi promised, it is a big leap towards building the “India of our dreams”.

Must take courses for MBA

An MBA is a very prestigious degree in itself, but today companies demand more than just a degree. They want their candidates to be all-rounders with an MBA degree. This is indeed a lot to cope up with for students. Thus, the choice of electives and many add-on courses makes a lot of difference in the future of the candidate.

Top 100 MBA schools in the world offer a variety of electives to choose from for whatever specialization the candidate has chosen to pursue. These should be the primary foundation for what to do in future.

If you have chosen marketing as your MBA specialisation then know what electives you can choose. Furthermore, do research and see what you can individually do to develop your CV. Probably taking online or certificate courses on online marketing or probably a personality development class will help a long way.

A specialisation in finance can be improved by a short term course on the stock market or any related short courses which can help you build your confidence level. These also add as a plus point while giving your interviews. 

Similarly in all other specializations in MBA, there can be a lot of add-on courses that can be taken up on the side. These help in the overall development of a candidate and also adds a feather to their academic record.

Learning a new language is especially appreciated by many MNCs as their employees can travel to different places with this advantage. An MBA graduate with knowledge of a foreign language can keep their passports ready as they are expected to travel and work in different places throughout the world.

Familiarity with software like System application products or SAP adds as a huge advantage. Companies search for people with this faculty within them as this gives the candidate an extra edge over the others.

Attending various workshops, seminars and guest lectures related to your specialization or interests also adds as an advantage.

GIBS, unquestionably a best b school in India, know that their students deserve best and thus, they provide some these facilities and many more as a part of the curriculum. It is no surprise that the students enjoy their life here and come out to be the best among the lot.