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Volume - 1 Issue – 03 April 2010
Volume - 1
Issue – 03
April 2010
Focus ERP-II: Planning for a better Future Rang-De ‘10 -Holi Celebration @ DOMS A Thin
Focus
ERP-II: Planning for a
better Future
Rang-De ‘10
-Holi Celebration @ DOMS
A Thin Line Between Price
& Financial Stability
Union Budget 2010 –
Impact on Various Sectors
Celebration @ DOMS A Thin Line Between Price & Financial Stability Union Budget 2010 – Impact
Celebration @ DOMS A Thin Line Between Price & Financial Stability Union Budget 2010 – Impact
From the Editor ’ s Desk Dear Reader, Welcome to the third edition of "DoMination“.
From the Editor ’ s Desk Dear Reader, Welcome to the third edition of "DoMination“.

From the Editors Desk

Dear Reader, Welcome to the third edition of "DoMination“. I would like to thank you
Dear Reader,
Welcome to the third edition of "DoMination“. I would like to thank you for
responses & appreciations that were sent to us as they have been instrumental in
moulding our newsletter in a way that best fits our readers' expectations.
In the last edition we presented to you: What Union budget means to an individual,
in one of the feedbacks we received it was suggested that we could include impact
on different sectors also. Catering to this we have come up with an article titled
"Impact of Union Budget 2010 on Different Sectors"
'ERP II' is a buzzword , and we cant afford to exclude it from the platter served to
our readers, do go through "ERP II : Planning for a Better Future“
We promised you that 'While all the entertainment we experience here inside the
campus; we will make sure to reach out to you with true info-tainment on them.'
here it is; 'COGNIZANCE-2010' as always was a rocking 3 day fest. Go ahead to have
your share of it in "Cognizance 2010 - Events @ DOMS".
Not to miss out on our 'Holi' Celebration - "Rang-De' 10" here at DOMS.
Bridging the memorable moments of past & those in the making; DoMS is to
witness yet another phase of transition thereby leaving behind many more
treasured memories. Amidst all this "Regalia" comes back; Regalia – an effort to
bring together all batches to re-live there moments of fun; one of the "Best phases
of life" campus life at IIT-Roorkee.
This year “Regalia” unfolds on 18 th April 2010.
As batch of 2011 gets nurtured from the very able mentors of 2010 batch, coupled
with guidance from the faculty and none the less our most valuable Alumni, we
feel extremely privileged to have "Mr. Ray Mehra " an IIT-Roorkee Alumni
(Currently CEO of 'R Squared Group'); with us in "Elite Talks" article titled "The
House on the Hill".
Do look out for winners of first two editions of “Qutopia-1 & 2”. Keep playing,
keep reading, keep enjoying.
Till the time we meet again; "Happy Reading".

Animesh Agrawal

Editor – “DoMination” (Department of Management Studies, IIT-Roorkee.)

1 Union Budget 2010 – Impact on Various Sectors -Akhil Verma & Rahul Mondkar DoMS,

1

1

Union Budget 2010 Impact on Various Sectors

-Akhil Verma & Rahul Mondkar DoMS, IIT-Roorkee

Sectors -Akhil Verma & Rahul Mondkar DoMS, IIT-Roorkee 4 The House on the Hill Elite Talks:
Sectors -Akhil Verma & Rahul Mondkar DoMS, IIT-Roorkee 4 The House on the Hill Elite Talks:

4

The House on the Hill Elite Talks: Mr. Ray Mehra CEO of R Squared Group
The House on the Hill
Elite Talks: Mr. Ray Mehra
CEO of R Squared Group

6

Hill Elite Talks: Mr. Ray Mehra CEO of R Squared Group 6 Rang- De ‘10 -Holi

Rang-De ‘10

-Holi Celebration @ DOMS DoMS, IIT-Roorkee

6 Rang- De ‘10 -Holi Celebration @ DOMS DoMS, IIT-Roorkee 9 ERP-II: Planning for a better
9 ERP-II: Planning for a better Future - Mayank Bajaj DoMS, IIT-Roorkee Department of Management
9
ERP-II: Planning for a
better Future
- Mayank Bajaj
DoMS, IIT-Roorkee
Department of Management Studies, IIT Roorkee
12 A Thin Line Between Price Stability and Financial Stability - Vamsi Somesh M DoMS,

12

12 A Thin Line Between Price Stability and Financial Stability - Vamsi Somesh M DoMS, IIT-Roorkee

A Thin Line Between Price Stability and Financial Stability

- Vamsi Somesh M

Price Stability and Financial Stability - Vamsi Somesh M DoMS, IIT-Roorkee 16 Qutopia - 3 -J.
Price Stability and Financial Stability - Vamsi Somesh M DoMS, IIT-Roorkee 16 Qutopia - 3 -J.

DoMS, IIT-Roorkee

16

Financial Stability - Vamsi Somesh M DoMS, IIT-Roorkee 16 Qutopia - 3 -J. Arjun & Mayur
Financial Stability - Vamsi Somesh M DoMS, IIT-Roorkee 16 Qutopia - 3 -J. Arjun & Mayur

Qutopia - 3

-J. Arjun & Mayur Gurjar DoMS, IIT-Roorkee

Qutopia - 3 -J. Arjun & Mayur Gurjar DoMS, IIT-Roorkee 14 Events @ DOMS & Others

14

- 3 -J. Arjun & Mayur Gurjar DoMS, IIT-Roorkee 14 Events @ DOMS & Others 17

Events @ DOMS & Others

17

Gurjar DoMS, IIT-Roorkee 14 Events @ DOMS & Others 17 Hocus-Focus Upcoming Event, you just can’t

Hocus-Focus

Upcoming Event, you just can’t afford to miss out

Upcoming Event, you just can’t afford to miss out -Annual DOMS Alumni-Meet Department of Management Studies,

-Annual DOMS Alumni-Meet

- Akhil Verma & Rahul Mondkar DoMS, IIT-Roorkee 1

- Akhil Verma & Rahul Mondkar DoMS, IIT-Roorkee

1

The Finance Minister tabled the Union Budget for the next financial year on 26 th February 2010. The significant proposals in this budget include:

1.

Hike in the slabs of individual income tax,

2.

Levy of Re 1 per litre as excise duty on petrol

and diesel

3. Hike in the peak excise duty

4. Hike in excise duty for luxury cars

5. Higher

allocation

for

road

infrastructure

development

6. Hike in the MAT rate

and

reduction in the tax surcharge for domestic

companies.

The service tax net has been widened by adding some more services in this particular area, but the limit has been retained at 10 percent which is a positive sign for sectors like FMCG The finance minister has reiterated the government's

7. Higher custom

duty

on

crude

oil

focus on education and generating skilled manpower with a higher allocation towards education.

In general, the market has taken the budget with positive sentiments, especially the hike in income tax slabs. A rough calculation shows that individuals earning more than Rs 8 lakhs per annum would now be able to save Rs. 50,000 from their tax burden. This means more money in the hands of consumers and investors, and hence an overall feel-good in the market. Every new budget has a positive effect on some sectors and negative on some of the others. Some of the important sectors which will be greatly affected by the budget proposals in the next fiscal year are as follows:

the budget proposals in the next fiscal year are as follows: Auto Sector As expected, the
Auto Sector As expected, the Finance Minister has proposed a hike in the excise duty
Auto Sector
As expected, the Finance Minister has proposed a hike in the excise duty for cars. The
positive factor is that the excise duty hike is only for luxury cars and the utility vehicles
segment. The duty has been left unchanged for small cars. Analysts believe this is positive
for the automobile sector as the demand in the luxury segment is not generally that
elastic, and the volume growth in the sector would not be impacted as there is no change
in the duty for small cars. Though the hike in petrol and diesel prices is seen as a minor
negative for the automobile sector, still it would not have any major effect on the sales
volumes of auto companies.
For Investors:
The Excise duty hike is lesser than what market expected. The income tax breather would
mean more disposable incomes, and hence more customers which is turn means
increasing volume of sales for auto companies Investors can hold their current positions
and may accumulate at lower levels Investors can also explore the option of buying more
during market corrections
Department of Management Studies, IIT Roorkee
Department of Management Studies, IIT Roorkee
2 Contd Oil & Refinery The Finance Minister has proposed a duty roll-back on petroleum
2
Contd
Oil & Refinery
The Finance Minister has proposed a duty roll-back on petroleum prices. A basic duty of
five percent on crude oil, 7.5 percent on diesel and petrol, and 10 percent on other
products is proposed. This means that the overall cost of petroleum products would go
up. On the other hand, oil marketing companies are facing a tough task in passing on the
rising costs to the consumers. The government is trying to moderate the impact of
increasing prices as a steep hike will push the inflation further up, which is already beyond
the comfort level.
For Investors:
The increased duty on crude oil, though moderate, will hike fuel prices. This is a negative
for oil and oil marketing companies Risk-averse investors should avoid exposure in these
uncertain times
Infrastructure The allocation has been increased by almost 13 percent for road infrastructure improvement and
Infrastructure
The allocation has been increased by almost 13 percent for road infrastructure
improvement and defense projects. This reiterates the fact that spending on infrastructure
development has been among the top priorities of the government. This is a positive
development for companies in the infrastructure development space. However, the
gestation period for these projects is quite long and therefore investors with a long-term
investment horizon only would look at investing in these stocks.
For Investors:
The market looks good for cement and steel manufacturing companies Investors can aim
for long term gains as the outlook is good for this sector
Hospitality The Finance Minister has announced some tax benefits for the hotel industry, especially on
Hospitality
The Finance Minister has announced some tax benefits for the hotel industry, especially on
investments in the economy segment. This is a positive development as it will give a boost
to the investment-intensive hospitality sector, and indirectly have a positive impact on
tourism. The government is promoting tourism aggressively for the last few years.
For Investors:
Tax holiday for this industry will give impetus to investments in budget segment Front
running hospitality stocks will be good buys in these conditions
3 Contd Power & Energy The power and energy sector has got a mixed bag
3
Contd
Power & Energy
The power and energy sector has got a mixed bag in the current budget. The Finance
Minister has announced a cess (clean energy) on domestic and imported coal. This will
have a negative impact on the companies which are operating in this segment. On the
other hand, the Finance Minister has provided a boost to the wind and solar energy-
related companies by cutting duty on wind farm units.
For Investors:
Wind energy companies will benefit. Investors should pick stocks at lower levels Investors
can hold on to their current positions in these sectors.
Information Technology There is some disappointment for the IT sector. The IT industry was expecting
Information Technology
There is some disappointment for the IT sector. The IT industry was expecting an extension
of the tax holiday (STPI) for another couple of years as it is struggling due to the global
slowdown but were left disappointed when it did not happen.
For Investors:
Investors should hold on to their stocks. Entrants should buy at lower levels Investors
should go for major and well-established IT companies since the market is subject to
currency fluctuations.
IT companies since the market is subject to currency fluctuations. Department of Management Studies, IIT Roorkee
4 -An excerpt from the talks with Mr. Ray Mehra Elite- Talks Ray Mehra is
4 -An excerpt from the talks with Mr. Ray Mehra Elite- Talks Ray Mehra is

4

4 -An excerpt from the talks with Mr. Ray Mehra Elite- Talks Ray Mehra is the

-An excerpt from the talks with Mr. Ray Mehra

4 -An excerpt from the talks with Mr. Ray Mehra Elite- Talks Ray Mehra is the
Elite- Talks Ray Mehra is the CEO of R Squared Group, a manufacturing business supporting
Elite- Talks
Ray Mehra is the CEO of R Squared Group, a manufacturing business supporting automotive, and
commercial /residential industries with heat transfer systems components. Ray is a serial entrepreneur
and has acquired and sold many ventures over the past fifteen years. He is also an active Real Estate
investor.
Ray led a $100 million manufacturer -Oak Controls acquired by Corning-of gas range components
supplying to General Electric, Maytag, Amana; grew sales 35% and profits 100% during second year;
generated cash flow of over 10 million; produced RONA of 30% along with three successive record years.
He is now focused on acquisition and consolidation of OEM component suppliers to the consumer/
commercial markets.
Prior to R Squared, Ray was the president of Sunbeam Health and comfort products group, a $200 MM
manufacturer of Electronic Scales, Electric Blankets and health monitoring products for consumer and
commercial markets, which \ was part of the larger consumer products company. During his tenure at
Sunbeam, Ray was also responsible for 4 manufacturing operations in Mexico, where he led 1100
employees and all aspects of its operations to improve its contribution margin significantly by reducing
cost, improving quality and making other productivity gains.
Ray is actively involved in the IIT Roorkee Alumni Association. He is a board member of the IIT Roorkee
Heritage Fund. He also currently heads the Midwest chapter of PanIIT. He has held membership on the
board of PanIIT, North America. He has been instrumental in successfully growing the Midwest chapter
through mentoring and networking activities in the Chicago land.
He has a Master degree in Mechanical Engineering from the University of Illinois at Urbana- Champaign
and a Bachelor’s degree from IIT Roorkee. Ray is an avid tennis player and downhill skier and enjoys
travelling and spending time mentoring friends and family. He lives with his wife Joyce in Naperville, a
suburb of Chicago in Illinois.

Mr Ray Mehra visited the Indian Institute of Technology-Roorkee on March 21 st . Here are his views on business and life.

on March 21 s t . Here are his views on business and life. Department of
5 Contd
5
Contd

-An excerpt from the talks with Mr. Ray Mehra

Secret of Success

Success is a concoction of just the right things. It

can be indexed in several ways. Success in essence is

happiness. When I was young my family used to vacation in hill stations across India. I used to love the houses there and dreamt of owning a house on a hill one day. I preserved the same dream when I joined college and even after when I started working. I feel that everyone should have a dream and should work his way to achieve it. I now own a skiing resort and several real estate properties and all this was is because of my dream of a house on a hill.

Importance of Networking

At the same time Networking is what makes you stand out from the rest of success endeavoring souls. In a bar, we can go and stand beside a bum or we can choose to be with a prudent student from Harvard and have a sip or two of wisdom as well. Networking can begin with something as simple as a smile and has the power to take you places. While in a conference I happened to meet the CEO of a company. I casually

mentioned in our conversation, my plans for a skiing

trip with my family. Since the CEO was from the area we were planning to visit, I asked him to recommend a good place to stay. To my surprise, he gave me the keys of his house there for us to stay in our vacations. We enjoyed the vacations and also found some good real estate opportunities. I bought property over there, which a few years later fetched me very handsome returns. Had I not approached him for the casual chit chat I really would have lost a big deal.

The challenges after acquisition

After the acquisition of a unit by an enterprise, the new management faces numerous challenges. There exists, a natural level of uncertainty in the minds of employees in terms of job security. The first thing to

be done is to clear these clouds of uncertainty from their minds. Then is the task of aligning the entire organization along with the newly acquired units towards one goal, which is a long and complex process. It usually takes around six months for the same. This is the time to bring the derailed things back on track. It is these six months that are the most crucial for any new owner. Hence this is what determines the future of the firm.

Selling a Business

Market conditions of the product have the decisive say on the selling of a business. When the profit

margins of the product begin to shrink, I think is the

right time to sell a business unit.

Difference between Indian and Mexican Business Environments

The environment, in which the businesses operate, has the power to shape them, nurture them and to shake them as well. Across the nations environmental differences come out stark and clear. Most of my businesses are based in Mexico and I have had a very

good experience working there. I’ll say that Mexicans

are very hard working. Mexico also benefits from having large oil reserves and of course its association with the USA. At the same time India as a huge talent

pool. The level of education is much better than in Mexico; both at the school and college level.

Learnings from IIT Roorkee

I remember that even when I was studying here in IIT Roorkee, which was then University of Roorkee, it

had a humanities department. Having learnt the

humanities subjects helped me a lot. While technical knowledge gives the confidence of doing the things right way, human skills help in marketing our products better and making them successful.

-Contributed by Affan Alavi DoMS, IIT-Roorkee

and making them successful. -Contributed by Affan Alavi DoMS, IIT-Roorkee Department of Management Studies, IIT Roorkee
Department of Management Studies, IIT Roorkee
Department of Management Studies, IIT Roorkee
6 DoMS is well known for proposing, organizing and managing vivid events. RANG DE „

6

DoMS is well known for proposing, organizing and managing vivid events. RANG DE 10 -a Holi celebration was the latest. DoMSonians are always eager to put all the managerial theory concepts learnt in class to put to practical use. Whether it is a well composed, creative invitation letter to the faculty or the style in which they told to everyone about this celebration- it all shows their marketing management. Planning, approval and organization of an event overnight is not a cakewalk but if your approach is correct, dedication is brimful, together with „never give up‟ attitude then the outcome will be good. The event focused on the maximum involvement of the crowd. Rang De was not just a Holi celebration event- it was also a crash-course of management!

The event was divided into three tasks, all tasks were very closely related to colors and Holi .The tasks had to be performed among three teams Red, blue & Green. On special request of some close-to-heart members of our class, a special team- Pink was created. The tasks were-

Matki phod:

co-ordination, resource utilization, creativity, time management.

Musical Chair :

Third and last task was musical chair which was hit among girls. Task focused on concentration. The fittest and the smartest emerge winner in this game.

Overall, „Team Green‟ was declared the Grand Winner of Rang De 10.

The organizers of the RANG DE 10 were Anil Singh and Prabhav Azad, helped by other 1 st year students of DoMS. They said that everything was

planned, proposed and organized by students

only. They have learnt a lot in this event like handling and controlling the crowd, Team Building among colleagues etc. “Motivation is the key factor in every activity” said Prabhav. “If you are honest to yourself, your work and your customers then you can achieve anything.said Anil Singh.

All in all, the whole activity was a great learning experience.

Task one was Matki Phod Competition. It majorly focused on testing their planning, strategy, resource utilization, time management and team coordination. As it was the first task of the event it also focused on the team principles of forming, norming etc.

Arts Collection : Task two was art competition which consisted of three subtasks- face painting , rangoli and T-shirt painting. Every team was provided the same amount of raw material like paints, brushes, dry colors, T shirts etc. For this whole task they were given only 15 minutes. In those 15 minutes, they had to distribute work, allocate right job to the right person and bring out their thoughts on the varied canvasses- Face, T- shirt and DoMs floor. This put a test to their team

canvasses- Face, T- shirt and DoMs floor. This put a test to their team Department of
canvasses- Face, T- shirt and DoMs floor. This put a test to their team Department of
7 Department of Management Studies, IIT Roorkee

7

8 Department of Management Studies, IIT Roorkee

8

Enterprises are starting to transform themselves from vertically integrated organizations focused on optimizing internal
Enterprises are starting to transform themselves from vertically integrated organizations focused on optimizing internal

Enterprises are starting to transform themselves from vertically integrated organizations focused on optimizing internal enterprise functions to more- agile, core-competency-based entities that strive to position the enterprise optimally within the supply chain and the value network. A primary aspect of

this positioning is engaging not just in B2B and B2C

electronic commerce, but in collaborative- commerce (c-commerce) processes as well. Collaborative commerce, also referred to as c- commerce, involves the collaborative, electronically enabled business interactions among an enterprise’s internal personnel, business partners and customers throughout a trading community. The trading community can be an industry, industry segment, supply chain or supply chain segment. In a

collaborative world, enterprises must compete not

only on the availability, cost and quality of their products and services, but also on the quality of the

information they can publish for consumption by collaborating partners.

The demand on ERP processes and systems to meet this change caused users to redesign ERP processes to include outward-facing elements, thereby rendering the vast majority of current ERP systems obsolete from both architectural and business relevance perspectives. As a result, the fundamental value proposition for ERP is forced to change, evolving into extended ERP or “ERP II”.

ERP II is defined as a business strategy and a set

- Mayank Bajaj

9

is defined as a business strategy and a set - Mayank Bajaj 9 DoMS, IIT-Roorkee of

DoMS, IIT-Roorkee

of industry-domain-specific applications that build customer and shareholder value by enabling and optimizing enterprise and inter-enterprise, collaborative-operational and financial processes.

ERP II includes six elements that touch business, application and technology strategy:

The role of ERP II Its business domain, The Functions addressed within that domain, The
The role
of ERP II
Its business
domain,
The Functions
addressed within that
domain,
The kinds of processes
required by those
functions,
The system architectures that
can support those processes,
and
The way in which data is handled
within those architectures.
ERP Financials Project Management Portal & Website Workflow Document Management Sales HR Logistics
ERP
Financials
Project Management
Portal & Website
Workflow
Document Management
Sales
HR
Logistics
ERP-II — Bringing ERP to the Entire Enterprise ERP-II is the next step in extended
ERP-II — Bringing ERP to the Entire Enterprise ERP-II is the next step in extended

ERP-IIBringing ERP to the Entire Enterprise

ERP-II is the next step in extended ERP. It’s a solution that includes the traditional materials planning, distribution, and order-entry functionality

strengthened by capabilities like Customer

Relationship Management (CRM), Human Resources Management (HRM), Document/Knowledge Management (KM) and Workflow Management.

Such a system can quickly, accurately and consistently operate an entire organization. It delivers information in an instant to the people who need it. It manages the access to that information by establishing security roles and ratings that define

10

Contd

establishing security roles and ratings that define 10 Contd which employees can use certain pieces of

which employees can use certain pieces of information. It also addresses the issue of multiple office locations by making the solution web-based, so employees can access the system no matter where they may be.

Businesses are utilizing the Internet more and more. It is no longer just a tool for email, research and single-transaction commerce. It is quickly becoming a tool for globalizing a businessa tool that allows an organization to tie together its employees, its suppliers and its customers. It enables the free flow of information, and the next generation of solutions will be built upon it. In most organizations, information has traditionally been isolated within specific departments, whether on an individual database, in a file cabinet, or on an employee’s PC. ERP-II enables employees across the organization to share information across a single, centralized database. With extended portal capabilities, an organization can also involve its suppliers and customers to participate in the workflow process, allowing ERP to penetrate the entire value chain, and help the organization achieve greater operational efficiency.

chain, and help the organization achieve greater operational efficiency. Department of Management Studies, IIT Roorkee
11
11

11

ERP vs ERP II

manage

information and use it to their advantage.

It organized customer data in ways that helped individual departments operate more efficiently, and it created streamlined processes that helped manufacturing operations cut costs and move products along more quickly. But traditional ERP systems failed to complete the task they ultimately set out to accomplish: to unify the enterprise and turn it into one smoothly running machine.

ERP-II promises to bridge this gap. New software tools are available that link departmental communications, work processes, customer data

and supplier capabilities into a centrally functioning

systemall focused on driving the enterprise forward. Challenges remain. Companies will continue to face obstacles as they revise internal processes, open up communications to outside sources and integrate disparate technology functions. But the move toward the next technology frontier is under way, and enterprises are already starting to benefit from extending their ERP installations to more of their organizations.

ERP was a giant step forward when first introduced, however, over time it had reached a plateau in functionality and most products on the market offered similar functionality. The market then saw new buzz terms arise such as lean manufacturing, it did not bring new functionality but promised greater efficiencies, when in fact all it did was deliver what ERP was supposed to do in the manufacturing space.

ERP-II, in contrast, does offer advancements in

functionality. It delivers on the original concept of ERP being for the entire enterprise, so that the whole organization can operate more efficiently. No longer does corporate information sit isolated in departmental silos, but it is housed with all

ERP

gave

businesses

a

vehicle

to

Contd

it is housed with all ERP gave businesses a vehicle to Contd corporate information, used to

corporate information, used to benefit the entire organization. That is the true initiative that ERP was based from, and it is an initiative whose time has finally arrived.

ERP was based from, and it is an initiative whose time has finally arrived. Department of
12
12

12

12 In this article I would like to quote some theories and real time cases at

In this article I would like to quote some theories

and real time cases at a very basic level to mock the relation between Price Stability (PS) and Financial Stability (FS). There is a very sensitive and interesting relationship between them. The thin line between the two makes them go hand in hand and also hamper each other.

To start with, we have the Schwartz Hypothesis. It says that sustained inflation encourages speculative investment and borrowing because

there exists an expectation that prices will continue to rise. When inflation abruptly declines, borrower incomes may prove insufficient to repay loans that had been made with the expectation of continued price increases. The resulting rise in borrower defaults reduces the equity of lenders, possibly causing an increase in financial institution failures. In the absence of inflation and disinflation, real shocks, such as those affecting commodity markets

in the 1970s and early 1980s, might still cause

significant financial distress. The Schwartz Hypothesis argues, however, that if the aggregate price level is stable, or at least if its movements are fully predictable, then resources will be employed

- Vamsi Somesh M DoMS, IIT-Roorkee

will be employed - Vamsi Somesh M DoMS, IIT-Roorkee more economically, and financial distress, regardless of

more economically, and financial distress, regardless of its proximate cause, will be less severe.

That means with this hypothesis it is clear that

Price Stability α Financial Stability

Hence more stable (stable doesn’t mean static; it means a slow pace increase) the prices, more predictable the economy which encourages better investment thereby leading to financial stability.

As we know price stability depends upon the “monetary policy” of the economy which is in the hands of the respective central bank.

The years before the crisis saw a powerful

intellectual consensus building around inflation

targeting. A growing number of central banks, starting with New Zealand in the late 1980s and currently numbering over 20, geared monetary policy almost exclusively to stabilizing inflation. Even where central banks did not target a precise inflation rate, their policy objectives were informed, if not dominated, by price stability. This approach seemed successful. There was an extended period of price stability accompanied by stable growth and

low unemployment. In the world that existed before

the crisis, central bankers were a triumphant lot.

They had discovered the Holy Grail.

13
13

13

13 The unraveling of the Great Moderation during the crisis has diluted, if not dissolved, the

The unraveling of the Great Moderation during the crisis has diluted, if not dissolved, the consensus around the minimalist formula of inflation targeting. The mainstream view before the crisis was that price stability and financial stability reinforce each other. The crisis has proved that wrong. We have seen that price stability does not necessarily ensure financial stability. Indeed there is an even stronger assertion - that there is a trade-off between price stability and financial stability and that the more successful a central bank is with price stability, the more likely it is to imperil financial stability.

So here, Price Stability α

All in all, the crisis has given fresh impetus to the ‘new environment hypothesis’ that pure inflation targeting is inadvisable and that the mandate of central banks should extend beyond just price stability. Hence the Million or the Billion or even more costlier question here is “Should central banks persist with pure inflation targeting?

1/(financial Stability)

- Vamsi Somesh M DoMS, IIT-Roorkee

1/(financial Stability) - Vamsi Somesh M DoMS, IIT-Roorkee Diplomatic answers like 1. There should be a

Diplomatic answers like

1. There should be a trade off between restriction and development

2. Should be dealt by case to case can easily be given. But I personally think both the answers keep us groping in the darkness to find the thin line between the PS and FS. A clear framework is required to thicken the line. And the stage is now left to the policy makers and economists to come out with the right extinguisher to address this burning problem. I am ending my article with a question, because it is yet unanswered.

I am ending my article with a question, because it is yet unanswered. Department of Management
I am ending my article with a question, because it is yet unanswered. Department of Management
Events@DOMS 1 4 Mind Your Business This event was a popular one as it promised
Events@DOMS
Events@DOMS

14

Mind Your Business This event was a popular one as it promised to give participants
Mind Your Business
This event was a popular one as it promised to give participants
a chance to build their own business empires. The event took
place in 2 stages where the 1st stage was a general aptitude test
on the basis of which the top 8 teams were shortlisted for the
2nd stage where the objective of the event was to survive till the
end and maximize the teams’ profits through efficient
operations, shrewd investment and immaculate planning.
Magnate
This event entailed the search for the next business tycoon. It
took place in three rounds, the first being a general aptitude test
on the basis of which 30 participants were selected. The 2nd
round was an extempore which eventually led to the top 8
participants whose final task was to handle a press conference
upon being given a guise of a personality surrounded by
controversy. The third round tested a participant’s capability to
both handle the questions as well as ask questions as a reporter.
A student of the Department of Management Studies, IIT Roorkee
emerged as the winner and received a cash prize of Rs. 3000.
Doms Stocks Exchange (DSE)
A wise man once said “Never invest in anything that eats or needs
repainting.” So where will you invest today? This exhilarating event
took participants on an exciting journey of interactive live trading
on a synthesized stock market with live simulation and SMS
trading. The event took place in three rounds. The first round was
the qualifying round comprising of a business quiz where approx
104 teams took part out of which the top 50 teams went on to the
next round. Here, the teams had to trade on a virtual stock
exchange through their assigned broker. Students of the Maths
department, IIT Roorkee emerged as the winners of the event.

-Contributed by Astha & Rama DoMS, IIT-Roorkee

winners of the event. -Contributed by Astha & Rama DoMS, IIT-Roorkee Department of Management Studies, IIT
Department of Management Studies, IIT Roorkee
Department of Management Studies, IIT Roorkee
-J. Arjun & Mayur Gurjar DoMS, IIT-Roorkee 16 It’s Exquizite, Kills your Quriosity and adds
-J. Arjun & Mayur Gurjar DoMS, IIT-Roorkee 16 It’s Exquizite, Kills your Quriosity and adds

-J. Arjun & Mayur Gurjar

-J. Arjun & Mayur Gurjar DoMS, IIT-Roorkee 16 It’s Exquizite, Kills your Quriosity and adds to

DoMS, IIT-Roorkee

16

It’s Exquizite, Kills your Quriosity and adds to your Quizdom. Need we say more? ‘Qutopia’
It’s Exquizite, Kills your Quriosity and adds to your Quizdom. Need we say more?
‘Qutopia’ – A Utopia of the best Biz Quiz Tidbits to wreck your brains! Mail in your
answers to arjunastra@gmail . com . The winner will have their names published in the
next issue . Answers in the next issue of DoMination .
1. Which was the first company formed to manufacture motor cars? 2. Which vehicle took
1.
Which was the first company formed to manufacture motor
cars?
2.
Which vehicle took its name from the fact that it was made
to be used for general purposes?
3.
Which car is featured in the film Back to the Future?
4.
Excluding India name 2 other countries that use the rupee
as currency.
5.
Which company's name is short for Durability, Reliability
and excellence?
Winners of Qutopia 1:
1. Pulkit Trivedi
2. Vamsi Somesh
3. Siddharth Atray
Winner‟s of last edition (Qutopia 2)
1. Supriya Agrawal
2. Amit Goriyan
3. Ritika Mahajan

The Answers of Qutopia-2 were:

1. Touch Diamond

5.

Singer Sewing Machines

6.

All

the

words

are

adjectives

referring

to

2. Bharti Airtel

3. Duncan Tea

Inflation Look for winners in next edition

4. with

Nestle

its

Maggi

Brand

Hocus -Focus

17
17
Hocus -Focus 17 Department of Management Studies, IIT Roorkee

The Team:

The Team: Editor: Animesh Agrawal Sub-Editors: Akanksha Tikku Himanshu Mishra Prashant Nath Endley Rama Pruthi Siddharth

Editor:

Animesh Agrawal

Sub-Editors:

Akanksha Tikku Himanshu Mishra Prashant Nath Endley Rama Pruthi Siddharth Srivastava Varun Goel Sushant Sharma

Design Team:

Animesh Agrawal Arushi

Contributors:

J.Arjun & Mayur Gurjar

Akhil Verma & Rahul Mondkar Mayank Bajaj

Vamsi Somesh M

Affan Alavi Astha & Rama

Comments / Feedback Mail to: domination.doms.iitr@gmail.com

Tel: 01332-285014, 285617, Fax: 01332-285565

Tel: 01332-285014, 285617, Fax: 01332-285565 Do Visit:

Do Visit: http://www.iitr.ac.in/departments/DM/pages/Index.html

Department of Management Studies, Indian Institute of Technology Roorkee, Roorkee Uttarakhand-247667

Animesh Agrawal:

Department of Management Studies, IIT Roorkee
Department of Management Studies, IIT Roorkee

ani85pdm@iitr.ernet.in, animeshagr@gmail.com, Mobile: 09368090764