Whites still prefer to vote for a white and the non-whites for non-whites

A recent poll survey showed that whites still prefer to vote for a white and the non-whites for non-whites. Arizona Senator John McCain, the Republican front-runner for Presidency and a white, won 13 points ahead of Obama among the whites; Hillary Clinton, another white, is head-to-head match up between the two front-runners.

Although non-whites have got their share of rights in the US, still being a minority, their support alone can’t make a contestant win. Opinion Dynamics Chairman, John Gorman, suggests, “Obama is the ‘new’ product on the market and the real test is whether he can survive long scrutiny.”

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Source:- IIPM Editorial

An IIPM And Management Guru Prof. Arindam Chaudhuri’s Initiative

The typical recipe for BPR is a recipe for disaster!

In the very words of Allen Messerli, Head, IT Unit, 3M, “The typical recipe for BPR is a recipe for disaster! You can easily throw tens of millions of dollars at these (BPR) projects and still fail…” The most critical disclosure about the concept was publicized by the world-famous Centre for Reengineering Business Processes (REBUS), which proved that there are “...illogically high risks associated with radical changes of business processes… The failure rate of BPR projects is as high as 70%!” Dr. Samuel Ryan of University of New York famously postulated, “One of the hazards of BPR is that the company becomes so wrapped up in fighting its own demons that it fails to keep up with its competitors in offering new products or services.” Even Harvard didn’t mince any words. According to a cutting BPR 2005 study by Harvard Business School, “The most important reason why it (BPR) fails is due to the failure to understand the process requirements!” Gary Steinel, Partner, Arthur Anderson, championed in another benchmark paper, “Unfortunately, BPR became equivalent to cost reduction and there was too much focus on reducing fat rather than radically redesigning (processes).”

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Source:- IIPM Editorial

An IIPM And Management Guru Prof. Arindam Chaudhuri’s Initiative

T the dollar depreciation against the euro and pound would never address the global current account imbalances

Moreover, the dollar depreciation against the euro and pound would never address the global current account imbalances. If we look at the US deficits, to a large extent it reflects the surpluses of Asian economies. Interestingly, there hasn’t been any marked depreciation of dollar against the major Asian currencies. Rather, major Asian currencies like the yen and the yuan have actually depreciated by 0.8% and 2.9% respectively, against the dollar during the same period (Jan 03, 2006 – Dec 01, 2006). So, till the time dollar doesn’t depreciate against the Asian currencies, hoping the imbalances to improve is actually being too optimistic.

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Source:- IIPM Editorial

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Second hit – long positions on Gold futures and Gold ETFs is ensured

Going by the fact that a falling dollar will help in balancing out the imbalances is not appealing as it would have been in the past. Today we live in a globalised era and the curtains have come down significantly between economies and markets are far more deregulated. And this has narrowed the scope for correction in the trade balances through an exchange rate window. Conventionally, a depreciation in the dollar would help American exports and make imports costlier (discouraging imports) thereby, bridging the trade gap. But in the present context depreciation in dollar would hardly affect imports today as pricing power of producers have fallen significantly due to commoditisation. So, we generally do not experience any shock due to depreciation of currency thereby imports stay unfettered, subsequently having a minimal corrective effect on the current account balances. And if at all such a thing has to happen, then it would require the dollar to fall more than what it should have in the past; and this variation which is not considered might be quite high and bring the whole global financial system to its knees. Well, there can be a less violent solution to this imbalance problem.

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Source:- IIPM Editorial

Visit also:- IIPM Publication, Business & Economy & Arindam Chaudhuri Initiative