Anand Saxena

University of Pennsylvania - The Wharton School November 9, 2009 Abstract: In view of the enormity of the economic power of the family owned and controlled business groups in India, the study proposes an eclectic framework for an examinationof the succession related issues in these groups. The study contends that these issues have much far reaching implications for the functioning and governance of the entire corporate, market and economic system than pertaining merely to the private domain of the family. The study notes that cohesion as well as splits in business groups potentially have some favourable and unfavourable consequences. The essential question is whether such a symbiosis and mitosis is the natural outcome of the constellation of economic, historical, socio-cultural, politico-legal-institutional and ethico-moral forces exerting their influences on business and family systems. And that, whether the transition toward a new equilibrium is mediated by a well planned, logical and smooth succession. The paper takes the position that while institutional change takes longer to take place, greater market activism that penalizes sub-optimal successions can be a way out. It also makes a case for the requirement of prior public disclosure of the planned ownership, leadership and managerial succession. Number of Pages in PDF File: 38

Title:

Building brand identity in competitive markets: a conceptual model

Author(s): Bhimrao M. Ghodeswar, (School of Management, Asian Institute of Technology, Klong Luang, Pathumthani, Thailand)

absract: Purpose The purpose of this conceptual paper is to identify important elements of brand building based on a literature review and case studies of successful brands in India. Design/methodology/approach This paper is based on a review of the literature and takes a case study approach. The paper suggests the framework for building brand identity in sequential order, namely, positioning the brand, communicating the brand message, delivering the brand performance, and leveraging the brand equity. Findings Brand-building effort has to be aligned with organizational processes that help deliver the promises to customers through all company departments, intermediaries, suppliers, etc., as all these play an important role in the experience customers have with the brand. Originality/value The paper uses case studies of leading Indian brands to illustrate the importance of action elements in building brands in competitive markets.

Ravi Agarwal
Birla Institute of Management Technology

Wasif Mukhtar
Deloitte Touche Tohmatsu India

Nataraj K.
Birla Institute of Management Technology (BIMTECH)

Sweta Agarwal

affiliation not provided to SSRN

Ridhima Arora
affiliation not provided to SSRN January 15, 2010 Abstract: Some studies show that the performance of option strategies with stock portfolios could depend on other factors or on market conditions. Benninga and Blume (1985) analyzed the optimality of portfolio insurance in complete and incomplete markets, and found that buying put option may be optimal only in an incomplete market, not in a complete market. Brooks and Hand (1988) examined the return characteristics of index futures contracts, and found that both the return distribution and performance evaluation depend on the risk-free rate, the dividend rate, the basis and the margins. In the present study, we have computed implied volatility using a number of models and statistically compared each of them with the historical one. We propose to advocate a portfolio strategy based on such mispricing of options contracts. Number of Pages in PDF File: 21 Keywords: Derivatives, BSOPM, Implied Volatility JEL Classifications: G12, G32

Indian Family Businesses: Their survival beyond three generations

K. Ramachandran
Abstract Interest in family businesses is recent, and most often knowledge creation in this field is limited to Western academics. Although stray outputs have started appearing on developing countries or Asia in general, no comprehensive picture is still clear on most aspects of family business. It is in this context that this exploratory research is undertaken. Family businesses constitute most businesses in India, as anywhere else. Economic liberalisation and rapid expansion in the industrial base in recent years have not only created growth opportunities for many but also have tested their resource capabilities to respond to them; some have chosen to follow the role of a custodian of their existing wealth and followed the preservation route, while some others have followed more of an entrepreneurial route of exploiting opportunities with or without relevant resources, with mixed results. One of the key resources for all of them is their family, and their prime concern is wealth and welfare of their family. A major dilemma many of them have faced particularly in the last decade since economic liberalization began is to choose between combinations of risks and returns of business growth and conservation of wealth of the family. This, of course, is intertwined with the missions of their businesses and families. Family businesses are fascinating because of the mutual dependence of two ecosystems (family and business) that have inherently conflicting characteristics. Some of the key dimensions that determine the cohesiveness of both the family and business are: succession planning, remuneration and rewards planning, recruitment and rewards for non-family professionals, retirement and estate planning, induction and grooming, ownership structure, preserving wealth, resolving conflicts, business vision, strategy and governance, family vision, strategy and governance. Research evidence suggests that these come under strain especially when their operating environment comes under pressure. Growing interest in corporate governance has its positive effects on family governance too especially in introducing greater level of professionalisation in business. The six Indian case studies analysed in this paper have been carefully selected: all fourth generation family businesses with diversified portfolios, and managed jointly by family members and outside professionals. However, they are different in terms of leadership quality across generations, response to environmental forces, family unity and business performance. Families with a unified command and harmonious relationship have responded well to the economic liberalisation process that started in early 1990s. We conclude that the quality of family leadership reflected in the level of Compassion Orientation nurtured in the families is found to be critical for building Competitive Orientation in the groups business. Also, the nature and characteristics of Competitive Orientation required in business and Compassion Orientation required in families are influenced partly by the stage in their life to which they belong and the impact of environmental forces existing. Families with high quality leadership have been able to transcend from early to later stages in their life cycles smoothly.

Ram Upendra Das

Abstract While most regional cooperation initiatives entail trade liberalisation and investment cooperation agreements, they have largely been bereft of being contextualised in terms of developmental goals like poverty reduction. The importance of understanding these issues is especially pronounced in a poverty-stricken South Asian region. Thus, the paper probes into the complex interlinkages among trade-FDI-poverty reduction in a regional context. It provides some fresh analytical insights into the issue by dwelling on some of the channels through which these variables might be interlinked. The conceptual arguments are further substantiated with the help of some illustrative examples from the region. It is argued that it would be nave to conclude that increased trade and FDI integration in the region would not have had any employment generating and poverty reducing effects due to regional integration. On the contrary, deeper trade and FDI integration in the South Asian region is needed to reap larger benefits of integration in terms of achieving developmental goals. This is particularly important for the lesser developed economies of the region since they may face limits to their individual efforts to combat poverty. Finally, the paper offers some evidence of growth-converging effects in the South Asian region.

Regional Economic Integration Some Unexplored Issues

Abstract While most regional cooperation initiatives entail trade liberalisation and investment cooperation agreements, they have largely been bereft of being contextualised in terms of developmental goals like poverty reduction. The importance of understanding these issues is especially pronounced in a poverty-stricken South Asian region. Thus, the paper

probes into the complex interlinkages among trade-FDI-poverty reduction in a regional context. It provides some fresh analytical insights into the issue by dwelling on some of the channels through which these variables might be interlinked. The conceptual arguments are further substantiated with the help of some illustrative examples from the region. It is argued that it would be nave to conclude that increased trade and FDI integration in the region would not have had any employment generating and poverty reducing effects due to regional integration. On the contrary, deeper trade and FDI integration in the South Asian region is needed to reap larger benefits of integration in terms of achieving developmental goals. This is particularly important for the lesser developed economies of the region since they may face limits to their individual efforts to combat poverty. Finally, the paper offers some evidence of growth-converging effects in the South Asian region