Oil Price Deregulation and Common Man

Oil prices have gone up second time in last six month. Government wants to deregulate the oil prices and let the market decide retail oil price. A good move but do no think a good one for a country like India with 2/3rd of its population living under a dollar a day. Especially hike in kerosene and LPG will further create huge worries for common man, already suffering from food inflection.

57% percentage of retail petrol price is a tax component. If a price is raised by Rs. 1, there will be raise of 57 paise in taxes. The total cumulative effect will result into raise of Rs. 1.57 in retail petrol price. More the rise in oil prices in international market more will be tax component and higher will be resultant retail price.

For the sake of the common man, Government should think of possibility of a fix tax component to avoid cascading effect and some relief to country men. e.g. a tax component of Rs. 10 per litre of petrol, so even if the oil prices in international market move up or down, the raise or fall in retail price will be in proportion to that and will avoid cascading effect of tax component.

Possibilities are immense but there should be political will for implementation. Let us hope that the 'Govt. for Aam Aadami' really works for 'Aam Aadami" and not for Private Oil Companies.

Jugaad Management

'Jugaad', very commonly and regularly used term in India. In fact it is said that most of the things happen in India is the result of 'Jugaad'. Governments survive on 'Jugaad'. Commonwealth Games will be hosted by India later this year. The success of the games will depend on 'Jugaad'. 'Jugaad' is basically a quick fix especially in bad situations. Interestingly many companies today consider 'Jugaad' as new management style. I came across the new offer by Tata Docomo, one can pay Rs. 20 for a day and he/she gets 200 sms free. Whenever customer wants to avail the sms service he/she has to pay Rs 20 and get 200 sms pack for a day. Again 'Jugaad'.

Few examples of Juggad Management

1. A Dhaba (road side restaurant) in Punjab uses a washing machine to make lassi.

2. A Scooter is modified and converted into Floor Mill.

3. A bicycle is used as sprinkler in a farm

Many more of these little tricks or Innovations are very common in India. Companies may find solution in 'Juggad Management' to beat competition, reduce the costs or even manage resources more effectively.

Jugaad Management may finally get the deserved attention and due credit.

'Go Beyond' MBA

If I have to ask a question to my dearest students, why would they take up professional education (MBA, Engineering, Medicine etc)? I am sure most of them would tell me that they can expect a good job. Jobs are plenty and candidates seeking the jobs are also plenty yet we find students wondering for a job and companies trying hard to get the suitable candidates. This clearly shows that there is a huge gap between what is expected and what is available.

Students must realize that they may not get a job of their choice only because they have a degree from a govt. recognized and university approved college. They must possess the right skills required for the job, application of the concepts that they learn and anticipation for the futuristic technologies.

Students must choose the school, university or college based not only on affiliation and govt. recognition but need to look at the curriculum, faculty and right exposure. Indian School of Business (ISB, Hyderabad) is the best example of such B school. Everyone can not enter ISB but there are other colleges and B schools who will equip you to be future leaders. There are courses with industry support e.g. TV18 group supports post graduate program in Media and Entertainment, Indian Institute of Banking and Finance supports PG program in Banking and Finance. One must 'Go Beyond' the conventional courses and acquire new skills.

All the best.