General Motors, an 101 year old company has opted for Chapter 11 bankruptcy. "My years with General Motors" by Alfred P.Sloan would make one believe that General Motors is for ever. What went wrong with the company?
It is true that there is worldwide recession and demand for automobiles is on a southward journey. Japanese companies Toyota et al are tough competitors. But there is no need to blame external environment.
GM had become too bloated. Committees ruled the roost in the company making it very bureaucratic. Agreements with worker-unions were very liberal and suicidal. Cost per GM vehicle exceeded cost of comparable vehicle produced by competitors atleast by $1400 on account of pension and healthcare outflow alone. Lesson: If management is too benevolent to any stakeholder, it could be ruinous to the company.
Saturday, June 13, 2009
Sunday, June 07, 2009
Constructive Activism
Social activism has generally received cynical coverage in the media on account of its negative, and sometimes even nihilistic, approach. Activism in most cases has been in condemnation of a project and very rarely in support of something worthy. In this context, it is refreshing that a new group called carrotmob has emerged in San Francisco the members (known as slacktivists who cannot spare too much money or time) of which actively support malls which contribute to environment-friendly measures. These members make their purchases from such malls only. May such groups multiply in every sphere of life !
Friday, June 05, 2009
Peace in Sri Lanka
Here is an interesting excerpt from The Economist dt.30th May:
"On May 25th the UN Human Rights Council convened a special session on Sri Lanka following a request submitted by Germany on behalf of 17 mostly European countries. Its members proceeded to vote down a proposed resolution decrying the Sri Lankan government's disregard for civilian life. But another draft resolution tabled by the Sri Lankan government itself, praising its own commitment to human rights, was passed by a vote of 29 to 16. Its motley crew of supporters included China, Cuba, India, Russia, Pakistan and Egypt."
It is good that the violence in Sri Lanka has come to an end. The Sri Lankan government was forced to adopt tough measures to counter the villainy of LTTE. But it is a travesty of truth to say that the government was committed to human rights. Commitment of China, Russia and Pakistan to human rights is well known ! India's support to the resolution is intriguing. India perhaps was trying to prevent further beachheads to China in Sri Lanka. But China is too shrewd a diplomatic player to be secondguessed by bumbling India.
"On May 25th the UN Human Rights Council convened a special session on Sri Lanka following a request submitted by Germany on behalf of 17 mostly European countries. Its members proceeded to vote down a proposed resolution decrying the Sri Lankan government's disregard for civilian life. But another draft resolution tabled by the Sri Lankan government itself, praising its own commitment to human rights, was passed by a vote of 29 to 16. Its motley crew of supporters included China, Cuba, India, Russia, Pakistan and Egypt."
It is good that the violence in Sri Lanka has come to an end. The Sri Lankan government was forced to adopt tough measures to counter the villainy of LTTE. But it is a travesty of truth to say that the government was committed to human rights. Commitment of China, Russia and Pakistan to human rights is well known ! India's support to the resolution is intriguing. India perhaps was trying to prevent further beachheads to China in Sri Lanka. But China is too shrewd a diplomatic player to be secondguessed by bumbling India.
Thursday, June 04, 2009
Obama's olive branch
President Obama's flawless articulation was again in evidence in Cairo yesterday. He made a compelling plea against violence and voiced a strong case against clash of civilisations.
He probably believes that uttering falsehood is acceptable if it would help mend relationship. How else can one explain his statement that America and Islam share common principles of justice, progress, tolerance and the dignity of all human beings?
He probably believes that uttering falsehood is acceptable if it would help mend relationship. How else can one explain his statement that America and Islam share common principles of justice, progress, tolerance and the dignity of all human beings?
Monday, June 01, 2009
Air France catastrophe
The disappearance of AF447 (A330-200) on its way from Brazil to France is a tragedy of epic proportions. It raises many questions about safety of air travel.
This is not the first air crash, but its circumstances are scary. It is not even known where exactly the crash has occured. Reasons for the crash are so far in the speculative sphere only. Air France suspects but is not sure that weather conditions including a possible lightning did the aircraft in. Could it be an act of terrorism? Of course, no terrorist organisation has so far owned up. But, one cannot be too sure. It is too early to know whether the black box can be retrieved. An enquiry will doubtless be conducted. However, with so little known as to what has happened, one is sceptical about outcome of any enquiry.
Do we learn anything from this catastrophe, as air travellers or airlines? Absolute guarantee of safety in air travel is out of question. Various airlines keep parroting that air travel is among the least risky as a travel mode. That something like this disaster can happen with prospects of recovering fuselage wreckage, black box and bodies of passengers being bleak, is too chilling to comprehend.
This is not the first air crash, but its circumstances are scary. It is not even known where exactly the crash has occured. Reasons for the crash are so far in the speculative sphere only. Air France suspects but is not sure that weather conditions including a possible lightning did the aircraft in. Could it be an act of terrorism? Of course, no terrorist organisation has so far owned up. But, one cannot be too sure. It is too early to know whether the black box can be retrieved. An enquiry will doubtless be conducted. However, with so little known as to what has happened, one is sceptical about outcome of any enquiry.
Do we learn anything from this catastrophe, as air travellers or airlines? Absolute guarantee of safety in air travel is out of question. Various airlines keep parroting that air travel is among the least risky as a travel mode. That something like this disaster can happen with prospects of recovering fuselage wreckage, black box and bodies of passengers being bleak, is too chilling to comprehend.
Mathematics and New York University
Srinivasa S.R.Varadan is a Chennai-born probability theorist associated with the New York University from 1963. He was awarded the Abel Prize (Nobel Prize equivalent in Mathematics) in the year 2007. Earlier, Peter D.Lax of NYU was awarded the same prize in 2005. Quite improbably, the 2009 prize also goes to a NYU Professor, Dr.Gromov.
Dr.Varadan is known for his fundamental contributions to probability theory and in particular for creating a unified theory of Large Deviations. This has applications in a wide array of subjects including physics, biology, economics, computer science and statistics. Large Deviations deals with the probability of rare events.
Dr.Lax (incidentally a mathematician like him is far from lax !) says,"Our fields are rather separate, but whenever I have a question about probability, I go to Varadan." Lax is credited with groundbreaking contributions to the theory and application of partial differential equations and to the computation of their solutions. Dr.Gromov specialises in something more enigmatic. His forte is Riemannian geometry, symplectic geometry, string theory and group theory.
A combined theory of Large Deviations and Black Swans may explain the global economic crisis, in retrospect.
Dr.Varadan is known for his fundamental contributions to probability theory and in particular for creating a unified theory of Large Deviations. This has applications in a wide array of subjects including physics, biology, economics, computer science and statistics. Large Deviations deals with the probability of rare events.
Dr.Lax (incidentally a mathematician like him is far from lax !) says,"Our fields are rather separate, but whenever I have a question about probability, I go to Varadan." Lax is credited with groundbreaking contributions to the theory and application of partial differential equations and to the computation of their solutions. Dr.Gromov specialises in something more enigmatic. His forte is Riemannian geometry, symplectic geometry, string theory and group theory.
A combined theory of Large Deviations and Black Swans may explain the global economic crisis, in retrospect.
Sunday, May 31, 2009
Campaign against Greed : HBS and CBS show the way
It is reported in the NewYork Times that at Columbia Business School, all students must pledge to an Honour Code to the effect that "As a lifelong member of the CBS community, I adhere to the principles of truth, integrity and respect. I will not lie, cheat, steal or tolerate those who do".
The newspaper also reveals that graduates of Harvard Business School have started voluntarily signing the "M.B.A.Oath" that promises that Harvard M.B.A.s will act responsibly, ethically and refrain from advancing their own narrow ambitions at the expense of others.
Very good, isn't it? It is a pity that business graduates have in the recent past become so unscrupulous that it requires a pledge or an oath to remind them the basic requirement of ethical behaviour and truthful conduct.
Will solemn pledges really impact behaviour? Will violation of the oath attract any action from the business schools? It is worth noting that no business school has taken /been able to take any action against its deviant alumni so far.
The newspaper also reveals that graduates of Harvard Business School have started voluntarily signing the "M.B.A.Oath" that promises that Harvard M.B.A.s will act responsibly, ethically and refrain from advancing their own narrow ambitions at the expense of others.
Very good, isn't it? It is a pity that business graduates have in the recent past become so unscrupulous that it requires a pledge or an oath to remind them the basic requirement of ethical behaviour and truthful conduct.
Will solemn pledges really impact behaviour? Will violation of the oath attract any action from the business schools? It is worth noting that no business school has taken /been able to take any action against its deviant alumni so far.
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