Skip to main content

Organic Growth - Your opinion please Yes or No

Two news items that caught my attention this week, the first one in Japan and second one is India. They are

  1. Japan takes aim at regional jet market: Mitsubishi estimates the world’s carriers will order 5,000 regional jets over the next 20 years, as developing countries expand their air networks and airlines shift to smaller, less fuel-thirsty planes.

    “This isn’t just about a single project. Our goal is to take Japan’s aerospace in­dustry to the next level of development,” says Masakazu Niwa, general manager of Mitsubishi’s aerospace division.
  2. Kerala govt mulls ban on organised retail: The Kerala Government is all set to bring in legislation to prevent multinational companies and larger Indian companies from entering the retail sector.

    The Left Government says that opening up of the retail sector would harm consumers in Kerala and also affect the strong PDS network.
I was wondering, how can a organised development harm the national interests. Japan knows that it is far behind its competitors in aviation industry and it has now taken initiative to aim on small aircraft market. The government is supporting the industry initiatives so that in next 20 -50 years Japan will not be behind China which has started its own program a year ago.

In contrast, in India, there is still discussion about organised retailing whether it will be good for indian consumers. We lost out to China and Taiwan in 1980s when there were chances of setting up hardware industry in India. Luckily India managed to attract services industry in 1990s because of English speaking ability.

Reading from various sources, we find that MNCs and Indian corporate houses are interested to set up retailing across India. The most affected that we read from media are small retailers or shops. However no one seems to take into account large Indian consumers who have been paying more and abused right from the beginning. Is it not true operations in large scale brings economy ? Do we still believe in cottage industry ?

The encouragement from Japanese government will help the Japanese aerospace industry to take risks and reach to the next level.

In India, we have Investors are willing to pump in capital and expertise. Its time to encourage the home growth corporates so that they help in rapid growth in this sector. A known logic - distinction from ownership and management will bring in good corporate practises and government will be benefitted by steady growth of tax revenues which in turn will fuel overall development of the country.

Management Accountants ... share your thoughts on organised retailing in India... with examples how it will affect overall consumers and nation as a whole.


Santosh Puthran

Related Posts

  1. India's retail policy attacked
  2. Boeing rolls out Dreamliner on Sunday


MMC said…
Please view my take on the issue of organised retail here:

Actually it took off from the earlier discussion on the same on this blog...

Popular posts from this blog

Poll : Does CIMA, UK qualification add value

Poll : Does pursuing CIMA, UK qualification add value to a member of ICWAI, India ? Vote on the poll and share your thoughts by commenting the blog. Poll: Vote here I feel that if you are a member of ICWAI and you pursue CIMA, UK qualification, you are not adding any value to your skills since you will be learning the same. Once you are qualified, you are still a Cost & Management Accountant but from UK. For an employer, I would still have same skills and training on Management Accounting. However if you pursue qualification like Company Secretary or CPA or ACCA , your skills are enhanced with the knowledge gained during training and passing of exams. After qualification, you are bound to follow the CPD programs of ICWAI and other institute. In competitive world, employer look for people with multiple skills. Which one promotes you as professional better against your name: AICWA, ACMA or AICWA, ACS or AICWA, CPA or AICWA, ACCA Widgets Regards, Santosh

Learning Curve Theory

Learning Curve Theory is concerned with the idea that when a new job, process or activity commences for the first time it is likely that the workforce involved will not achieve maximum efficiency immediately. Repetition of the task is likely to make the people more confident and knowledgeable and will eventually result in a more efficient and rapid operation. Eventually the learning process will stop after continually repeating the job. As a consequence the time to complete a task will initially decline and then stabilise once efficient working is achieved. The cumulative average time per unit is assumed to decrease by a constant percentage every time that output doubles. Cumulative average time refers to the average time per unit for all units produced so far, from and including the first one made. Major areas within management accounting where learning curve theory is likely to have consequences and suggest potential limitations of this theory. Areas of consequence: A Standard

Resistence to Change - Approaches of Kotter and Schlesinger

The Six (6) Change Approaches of Kotter and Schlesinger is a model to prevent, decrease or minimize resistance to change in organizations. According to Kotter and Schlesinger (1979), there are four reasons that certain people are resisting change : Parochial self-interest (some people are concerned with the implication of the change for themselves ad how it may effect their own interests, rather than considering the effects for the success of the business) Misunderstanding (communication problems; inadequate information) Low tolerance to change (certain people are very keen on security and stability in their work) Different assessments of the situation (some employees may disagree on the reasons for the change and on the advantages and disadvantages of the change process) Kotter and Schlesinger set out the following six (6) change approaches to deal with this resistance to cha