Should We Continue to help the Big 3 - Now and in the Future?

In a global economy where competition, especially from efficient global players can kill a competitor, the Big 3 have been essentially sleeping giants. Unfortunately, not getting stronger, but weaker from the inside out. And when they woke up, they were too plagued to even stand on their feet.

Thus unfolded the drama the world has been seeing over the last few weeks. First a very ill managed PR debacle during the Round 1 of their ‘begging campaign’. Then came a more subtle and humble ‘begging campaign’ Round 2. But this time around, similar to the first, Congress took a very hard stance against once seemingly indestructible executives.

As another round of the high stakes drama unfolded in the Congress, foes of the current administration, surprisingly Senators from their own party knocked down Detroit’s Big 3 Bailout Plan. With that the plan moved on to White House we may see TARP (Troubled Asset Relief Program) money spending plan assume a new direction.

The $700 billion that was originally set out to save the economy and in turn the world was first used to bailout big banks and financial institutions. As we see now, bailing them did not help much, as this only rewarded those who got us here in the first place, with no relief for those on main street.

Then came a new direction, ‘lets try and bailout the people’ resulting in twist #2 in the globally watched crisis. But we do not see any money coming to those who need it- namely small and medium business and individuals alike.

Now to twist # 3. White house wants to help the auto makers. Before we do that lets ask - can Detroit's Big Three really get out of this mess if they get financial support? This question unfortunately can not be answered without skepticism. And this, my readers is a problem.

The white house wants to bailout the big 3 with $14 + billion dollars (as of Dec 14th, they are still finalizing the actual amount). I doubt if that $14 billion will be sufficient, because they originally wanted $34 and chances are they will soon come back asking for more. Additionally, as I mentioned in my previous post on this topic, they have been losing billions every quarter, at time every month. Supporters of Big 3 bailout say that this money will get them through March of 2009. But then what? Are the big three taking any major initiatives to survive after March 2009, so they do not come back begging for more? I think the bigger question is: can they actually do something that will show results in three months (by March 2009)? I have not heard anything that strongly indicates this. In fact, I believe that the 3 amigos are going to take the money and will likely invest in new processes and operations, that will take years to payoff, but at the same time will cut costs by laying off people and closing some of their large plants. So, the feared scenario, the big 3 going back to feds looking for additional tax payer dollars, may not be inevitable after all.

I do not see any immediate relief. If they get the money, the problem has only been kicked off for the new administration to deal with. Bush of course does not want to be associated with yet another catastrophe in his presidency. He has enough to put him at the bottom of the presidency pile in terms of liking.

So it basically it comes down to Obama and team to deal with this mess. But what can they really do? May be give the big 3 more money if they come begging again? Yes, to me that seems very likely.

I think the current and next administration need to hold the automakers accountable, push them very hard for strong reforms within these companies. They need to be pushed to take drastic measure to increase efficiency, eliminate plants, decrease production of SUVs and Pick-ups and most of all make what people really want, like what their rival auto makers have been doing for decades. And mind you none of this can be achieved in months or even a year, it will take years. They may also have to finally jump in and navigate the choppy waters of UAW. Union workers should be willing to take major cut backs in privileges and may see a new beginning where retired employees may not be entitled to more benefits than working employees. They may see their clout reduce and will likely see a paradigm shift in how and what they can command from their management.

If the big three can not get their act together and show progress by end of March 2009, they should essentially file for bankruptcy and reorganize and possibly come out stronger. I believe that these 3 should not receive any more money beyond the $14 billion. Not a really bad option at some level in my opinion. Yes, I hear all those skeptics that say bankruptcy is not an option, who will buy a car from bankrupt automaker and such… That is exactly what I was talking about earlier- these firms need to reinvent and make what people want. If they can show that they are committed to their promises from their begging sessions in front of the Congress and are actually delivering on those promises, always resilient and second chance believing Americans will surely give them a second chance. There is no shortage of patriots and believers in this country, the questions is can the big three deliver without betraying the trust of the very people they are serving?

Cultural and Societal Differences between the US and India

I was recently invited by my graduate school Professor to deliver a guest lecture to the MBA class at Sacred Heart University, CT. The topic of lecture was “Cultural and Societal Differences between the US and India”. India, approximately 1/3 the size of the US with 3x the population, has many difference with the US, but I chose to narrow them down to 16 important elements that in my opinion are the most prominent difference between these two very diverse societies.

I tried to inform students of not just professional differences, but also the societal/ lifestyle differences. My objective was to discuss elements that form the very core of the Indian culture and at some level are still dominant in that society. Of course some of these are slowly changing due to western influence, predominantly US, but many are still present and followed as they were ages ago.

The lecture was a great experience and the class was very engaging with great questions, I believe driven by genuine inquisitiveness about a new culture. Some questions even got me thinking hard. So I would like to thank the class for being so active and for their questions.

I would also like to thank my Professor for giving me this great opportunity. It was a true privilege.

To give you a brief overview of what I discussed I have included my lecture slide here: http://ksajjan.blogspot.com/.

If you have any questions or are interested in getting more information on the cultural differences between the US and India please contact me.

Thanks.

To Save or Not To Save?

I have been following the bailout news of the Detroit's Big Three for sometime. I couldn't help but notice the desperate situation these once well established firms, with thousands of talented employees and operating in a powerful and innovative country like America have put themselves in.

It is truly a shame and I think they are here today primarily because of lack of innovation, creativity and inability to produce what the American consumer really wanted. They failed to change with time and demand.

While the management of the Big Three sits in front of the congress begging for a bailout, employees and consumers are facing a very uncertain future. As indicated on CNN Money millions of people’s livelihoods are at stake(http://money.cnn.com/2008/11/18/news/companies/detroit_faq/index.htm?postversion=2008111804) .

Decision makers in Congress definitely have a major challenge on their hands and needless to say their actions could very well drop the axe on all those who depend on the automotive industry, directly or indirectly. If not rescued, big three’s failure could have far reaching negative impact, not to mention loss of iconic American brands. But on the other hand after evaluating decades of docile and lackluster work, saving them offers little hope for the future either.

If rescued these giants will need to be exceptionally innovative and show product/ business creativity, for the next 10 to 15 years at least, to barely sustain and compete. And of course if they do get federal help (or more like taxpayers help) there is no guarantee that there won’t be any layoffs either. In fact I believe that to effectively utilize the bailout money of $25 billion or what ever that amount ends being, these firms will have to shutdown plants and cut workforce significantly to cut costs. If rescued these firms will also need to drastically switch their strategy from followers to leaders and innovators. I wonder if the management of these firms is up for this challenge?

What is happening is unfortunate. But bailout or not I hope these firms come out strong (as indicated in the article above, they do have an option to file for chapter 11 and restructure). I hope this as I feel for millions of ordinary people who would end up suffering for the incompetence of few.

Impact of Food Crisis, Today and the Future…. Globalization or Protectionism?

I have been thinking about the great benefits us humans have been experiencing with globalization and trade relationships between countries. It is amazing to see how globalization is essentially changing our perception of the world and opening us to the broader scope that we were not previewed to before. It is great to see how different countries are interdependent and supporting each others economy. Take for instance the economies in BRIC (Brazil, India, Russia and China) nations. These economies have seen significant uplift in the recent past, thanks to developed countries such as US, Canada and EU. Much needed skills in developed nations can be found in these and other developing nations. A mutually beneficial relationship has raised the economic and living standards of many countries.

While on one hand one may think these relationships will last for ever, one recently emerging crisis in the world could throw a wrench in this seemingly amicable relationship between these countries. Believe it or not, with the current food crisis, some countries may actually resort to protectionism again. A practice where by countries establish certain economic policies where by they create trade barriers between countries, be it in the form of tariffs, stopping export of their absolute advantage goods or by other means.

Take for example Indonesia a once major exporter of wheat and rice. With food crisis hitting an all time high in recent past they have stopped or limited the export of these items to other countries. Essentially advancing towards practicing protectionism that once was followed only when kings ruled our world. I wonder if this practice will creep into other countries too?

This begs the question, what about globalization where countries share resources that were mutually beneficial? Seems like change is around the corner. With the projected increase in food demand for the ever growing world’s population (estimated to hit 8 billion by 2030) and diminishing arable land, the situation is far from being fixed or even close to a potential solution.

Here are my thoughts. I think the situation with food crisis is only going to worsen. With developing and developed countries increasingly protecting their agricultural outputs for their own citizens, and rightfully so, I think that there is a potential for major unrest in countries like Africa that heavily depend on foreign aid for their survival. Oxfam very recently appealed to the world to bring awareness to the increasing crisis in Africa. Research has also shown that when ever there is less arable land or lack of food (due to even lack of rain) it resulted in civil unrest.

While developed and possibly some developing nations are well equipped to handle such crisis (for a certain duration), it is the underdeveloped that are going to face the most difficulty. In a deeply destabilized world the country that is the least favorite is likely to have the most sufferers.

It is probably time to evaluate and test alternative resources and advanced technologies that will help in a higher crop yield, in probably most unstable environment drawn by global warming. Under some very recent and reasonable estimates the preservation of human life would require such intense innovation and even tougher actions around the world. These attempts are probably our best bet to averting a potential human catastrophe, unfortunately this time triggered by lack of food, which many residents of the world have not experienced and may not be in a position to cope.

Summer semester starts tomorrow...

My MBA summer semester starts tomorrow. One more class left to graduate after this. Woohoo!

I am taking International Business this semester and I am very excited. I am looking forward to learning concepts that govern cross border trade in a globalized world. I think most intriguing to me is the global corporate strategy and how it shifts with a constantly changing landscape of international business.

Citing Others Work: How to do it Right.

A key element to writing any paper, at undergrad or graduate level, is ensuring that when using others work you are citing it appropriately. Failing to do so can be considered plagiarism and if your university or teachers find out, you could be kicked out of the school. Same applies for professional writing as well.

While doing research for proper APA citation guidelines for my MBA I came across many sites that offered plethora of information. At times it was overwhelming. Hence, in the hopes that others looking for such information are not overburdened, I am consolidating few of my favorites here. I am sure there are more out there that may appeal to you, so be sure to check them out if you need more help or information.

This site from Rochester Institute of Technology and is my favorite:
http://wally.rit.edu/pubs/guides/apa.html#intext

This site from The College of Wooster, Ohio. I specifically like the page formats and introduction provided here:
http://www.wooster.edu/psychology/apa-crib.html#RPage

This site offers great information on citing online resources. Check this site out for in-text and reference section citation. http://www.bedfordstmartins.com/online/cite6.html

I hope that these resources are helpful.

Quick guide to a Successful Presentation Writing. The Do's and The Dont's.

Through out my professional career and biz school I have come across many power point presentations. Some good and some bad experiences have prompted me to write this blog. With many years of experience in writing and presenting to large groups, here I discuss how I think good presentations should be written and how a presenter can maintain an active and engaging flow of content.

I think there are two key features to a successful powerpoint presentation: one, ‘the look’ and two ‘the content’. You could have great content, but if the look is not friendly or appealing to your audience, rest assured they will probably have a grocery list prepared by the time you finish your presentation.

I think a presenter (assuming he/she is the one writing the presentation in powerpoint as well), should undoubtedly follow very simple, but often ignored steps. With my experience, professionally and in biz school, I can tell you that these ‘four’ steps mentioned below, if followed to the ‘T’ will help you develop a great presentation flow.

While many steps below are a great fit for professional presentations, I think the same can be easily modified to fit your requirements at the college or university.

4 key steps to creating a successful presentation. The goal here is to lay a foundation for your audience and build on it.

1) I call the first section: WHY? Always start with an overview of why you are presenting.
2) The WHAT? section. Include what you are going to present. You want to ensure that your slides are clear and that you are presenting your thoughts/ ideas in single line sentences, rather than a whole paragraphs.
3) HOW? This section should cover: how are you going to accomplish what you just presented. And hopefully the WHAT and the HOW meets your clients, professor’s or team’s requirements.
4) Always include a WHEN? section. This is more like a timetable of when you will accomplish all that you just promised. This section may or may not apply to you depending on the scope of the presentation.

Now that you understand the general flow to make your presentation a success, don’t forget that before you drive off to do your presentation you include an ‘AGENDA’ slide up front. This slide should cover everything you will be presenting.

Couple of other quick checks before you present. Make sure you double check the consistency in your text box positioning and text fonts. There is nothing worse than having text boxes or text fonts jumping all over the place as you move from slide to slide.

As a rule of thumb, try not to have ‘a lot’ of text on one slide. If you do and you are basically reading off that while presenting, ask you’re self, why am I here? If your intention was to have a presentation in which you were just going to just read off of your slides, you could have just given a printout to your audience so they could read at their convenience, possible try to fall asleep faster at the night. They don’t need to sit through the grueling minutes in those very uncomfortable chairs to listen to something they could have just read on their own.

My best experiences, presenting and listening to presentations, have been when there were couple of lines per topic, per slide and the presenter was engaging me (and other audience members) with his/her knowledge and insight.

Suggestions above are based on my personal experience and are my personal thoughts. I am sure there are many resources available online that you can leverage to create a compelling presentation. I strongly suggest you review those as well.

Just remember, you need to cater your presentations to your audiences needs, not your own. Good luck!

Writing MBA Research and Course Papers

While pursuing MBA, you will inevitably, end up writing many research or case study papers. One of the core elements of these papers, besides the fact that these need to precisely address the situation or problem on hand, is that these need to flow smoothly while putting your point across elegantly, and with out confusing the reader.

Important to note also is that fact that these papers should typically follow the APA guideline or one proposed by your professor/ university.

Below I have discussed one way n which you can organize your writing. Main focus below is on hierarchy and overall flow. You spend so much time reading, researching and writing, don’t you want to ensure you are presenting your content the write way?

While the final out-put of your paper will vary vastly depending on your research, case study, thesis or per your professors requirements, few general guidelines should always apply.

So, what are these general guidelines?

1) A research paper or a case study should always start with an ‘Abstract’ or an ‘Overview’ section. Some times ‘Background’ is suitable as well. This is the section where you will provide a high level overview of what you will be or are covering in those tons of papers to follow.

2) The second section should almost always have a brief explanation of the problem or research on hand. This can be as small or lengthy depending on the depth of your topic.

3) Following this you want to get into the meat and potatoes of your paper. This is where you explain the research and your findings or discuss the case and your thoughts or solutions you are proposing for the research/ problem on hand.

4) The next section should be one that picks a side (especially if you have suggested multiple options or shown multiple research results). This is essentially your recommendation section or a stand you are taking.

5) And finally the ‘Conclusion’. It is always important to briefly recap your findings/ position and why you are doing so.

I can tell you from my personal experience that the start and finish of your paper will have the most impact on your reader. While the entire paper and its flow is critical to receiving an ‘A’ grade, the bookends (French, Doug, 2005, The Princeton Review, Verbal Workout for GMAT, Random House, Inc., NY, 2nd Ed.) are the key to impressing the reader. Solid 'bookends' show that you have a clear understanding of the problem on hand and the research you are claiming to be yours or are proposing.

Also be sure to cite any research or work that is not yours so you are following your university’s academic integrity guidelines. University’s typically require that you follow APA guidelines. I will dig deeper and provide few useful APA resources I found online while doing my research in my next blog.

Until then, Good luck with your papers.