Monday, 25 November 2013

Thanksgiving Day

Fourth Thursday of November is a Thanksgiving Day in USA. It is different in different countries. In USA this the most eagerly awaited event. I may not call it as a festival, but is certainly an annual event. Thanksgiving is important in an individualistic society like USA where family and friends can meet and party on this day or on following days. This is the longest weekend in the US starting almost from Wednesday afternoon through Sunday midnight. Children meet their parents on this day and gifts are exchanged. The holiday season starts with this.

Thanksgiving was traditionally celebrated in England for thanksgiving prayers after the harvesting. It is known as Loaf mass. Farmers make a bread from freshly harvested wheat and that would be handed over to the local church. Thanksgiving is very much similar to Holi and Diwali in India which are also post harvesting festivals that are social and religious. In Christianity there were ninety-five holidays and fifty-two Sundays on which one was expected to offer the prayers in the church. Following reforms the numbers of holidays were reduced to twenty-seven. There cannot be any reduction in Sundays, in certain years these could be even fifty-three, so these were left untouched. Original migrants to America started celebrating this day during same period as that of England, even though in New England the harvesting is over much earlier than it is in England. No adjustment in dates was ever made, unlike other countries. This reminds me of Australians celebrating X-mas in summer, knowing well that Santa cannot come on a sledge in their country in that season.

Thanksgiving has assumed different dimensions and  great importance in America. England doesn't have that kind of celebrations as America has. Some researchers also put forward another theory. It states that the first batch of migrants was fighting with sickness and shortage of food when they landed in America. The seeds and food that they had brought with them was either of no use in this new-found land or had got spoiled, except for barley. The natives taught the migrants to fish, to hunt and to cultivate. The migrants in honour of the natives celebrated Thanksgiving Day.

Wild Turkey
Few things are of great importance in this period and one of them is turkey. This beautiful bird is roasted and served on this day to the invitees. As during Halloween everything is of pumpkin, likewise during this period everything is dominated by turkey (scientific name - Meleagris gallopavo). This native American bird travelled to Central Europe via Turkey.   I am not very clear via such an odd route, but Wikipedia says so and thus this native American bird got the name turkey. Guests are served turkey for few simple reasons. Being a large bird (can weigh upto 18 kgs) and cheaper than chicken, turkey was the choice. Turkey got preference over beef as cow was considered as a useful animal when alive (similar to considerations by Hindus) and thus was not preferred to be slaughtered for feasting. Ham and bacon are not considered as good meat for such occasions thus pigs were spared. Unable to compete with these edible creatures, poor turkey had to submit to the knives of the butchers to satisfy holiday hunger. PETA has campaigns to protect turkey. Average number of turkeys raised in America is about 248 million, valued at USD 4.37 billion.
Turkey farm
As per the published estimates as of 20th Nov 2013, over 51 million Turkeys are reported to have been slaughtered for Thanksgiving Day feast. It is estimated that nearly 50% consumption of turkeys in America is between Thanksgiving Day and Christmas. 


Average American consumes about seven kg of turkey per annum. Turkey is relatively cheap, being priced around USD 2.50 per kg. Like the broiler farms there are domesticated turkey farms in US. The wild turkey hunting has restrictions from 1991 as these were declining.

There is a tradition to present a turkey to American President for Thanksgiving Day Dinner. However as per one legend Abraham Lincoln’s son Ted requested his father to release the turkey, meant for the President’s Christmas dinner, back in the natural habitat as the turkey also has a right to live. President gave a presidential pardon to the turkey and was thus released. So when did the Presidential pardon for the turkey for Thanksgiving Day dinner start? It is reported to have started with President Truman, who released the bird in 1948 in his home state. JFK sent back the turkey to the farm from where it came. President Eisenhower and President Johnson actually ate the turkeys that were presented to them. Officially the Presidential pardon started with President Bush (senior) in Nov 1989.  What an irony of fate, on one side millions of turkeys get slaughtered for Thanksgiving Day and on the other hand on the same day a lucky one is released to live the remaining life (about ten years) without fear of being slaughtered.

Presidential pardon by President Bush (Senior)
Another highlight of Thanksgiving Day is Black Friday. The next day after the Thanksgiving Day is traditionally the first day of Christmas shopping. The idea generated in mid 1960’s in Philadelphia and the police called it as a Black Friday due to jammed streets and congested traffic. Retailers try hard to get additional footfall on Black Friday. Accountants gave another angle in 1980’s. They called Black Friday for the reason that those retailers who were in loss, for which my accountant friends use red ink, make profit on this day, for which black ink is used in account books. Thus turning red into black makes this a Black Friday. For online shopping from 2005, the first Monday after the Black Friday is termed as Cyber Monday. For both these days prices are slashed for limited number of products and it is a very common site to see long queues outside retail outlets. At times the disappointed customers who could not get the desired product due to limited quantity offered for sale is sold out, do get into arguments and fights. In good old days shops would remain closed on Thanksgiving Day and would have an early opening on Black Friday. The mad competition changed the picture. Wherever the local law permits even Walmart keeps outlets open on Thanksgiving Day and offers the deals. The early opening on Friday morning is a history now. It got shifted to Thursday/Friday midnight and now it’s on Thursday afternoons, if shops are not open on the morning of Thanksgiving Day. Strange are the ways of marketers. Research shows that early opening increases the footfall but not the revenue. Early opening of stores cannot generate surplus cash with spenders.

Customers lined up outside retail outlet
This strategy reminds me of campus interviews in Management schools in India. In the year 2000 many management colleges would have companies coming on the campus for recruitment in March onward for vacancies to be filled up by June. Over a period of time the campus visits started getting advanced and now we find campus interviews as early as September or October. Many companies force the students to join early and some colleges even permit the student to remain absent in the last semester. Both the employers and colleges make mockery of management education creating a half-baked product in job market with a hope that it will mature with the time. Not everyone really matures, it’s a tragic reality.


Back to Thanksgiving Day, it’s a great holiday to enjoy meeting relatives and friends, exchanging greetings, even if you don’t shop, which is relatively a low possibility. With so much of promotion going on, one always lands up buying something whether needed or otherwise. Whatever may be the event, be it Halloween or Thanksgiving Day or Christmas, the marketing companies will never miss out an opportunity to earn an extra buck, no complaints. After all it’s a mainstay for the economic growth. Happy Holidays and enjoy.

Source: Wikipedia for the pictures, published non-copyright material

Sunday, 10 November 2013

Assassination Attempt

Every cold winter morning in this Nov 2013, when I log on to a particular website from India, I find a recommendation by the editor for some news related to Jawahar Lal Nehru. May be these goody goody  articles are to remember the first prime minister of India or may be to precondition the minds of gullible persons to vote for certain political parties in 2014 elections. This blog is not a political commentary. I would like to do that but not here. I also don’t want to comment on Nehru for various actions that he took. The pain of Nehruvian socialism that my aspiring generation has undergone in our prime days is unforgettable. His dividing India on linguistic basis, was another painful action for which we are still suffering, be it Belgaum or the recent Andhra Telangana rift and there are many more in the pipeline.

Nehru was charismatic leader. I liked the aristocracy that he had. One of his pictures, in the book that I had on his USSR visit, was showing him making a toast at a dinner party. It was so aristocratic that I still remember it even after nearly sixty years. Nehru’s pictures of horse riding, playing golf were also equally impressive. Among children Nehru was always projected as “Nehru Chacha”, who always had a red rose pinned to his majestic sherwani. As an individual his personality was adorable.

Nehru and trademark Rose
The security that is seen today for political leaders and at the airports was not imaginable till 1980. I have seen motorcades with leaders shaking hands with their supporters. Security was not lax, but was not needed in that period. I would like to share an incidence of 1955.  Not many persons may know that there was an assassination attempt on Nehru in Nagpur. As a child I was a witness to the incidence. This incident dates back to March 1955. I was a primary student of Somalwar High School, Ramdas Peth, Nagpur. In the first week of March during the prayer time students were informed that Nehru Chacha is visiting Nagpur and we have to greet him when his motorcade passes on Wardha Road, not very far off from our school. Wardha Road was also called as Jail Road in those days as Nagpur Central Jail is also situated on the same road. This road connects airport in south to Raj Bhavan in north, where Nehru was to stay during his Nagpur visit. Janata Chowk, the junction of road passing over my school to the east and Wardha Road was less than a kilometer from my school and was midway between my home and school. I understand that this place is now called as Lokmat Chowk. Wardha Road was a part of NH6, and considering the traffic in those days the width of 60 feet was adequate. There were no pavements but some kachcha road on both the sides of the road. We were supposed to form a single line and stand facing the road with flags in our hand. We were instructed to wave the flags and shout “Chacha Nehru Zindabad”. We practiced this almost for a week. Finally on March 12th, 1955, we were ready to greet “Chacha Nehru”. There were no school uniforms in those days but we were asked to come in a white shirt and a khaki half pant that almost every student had in those days of Nehruvian socialism, being the most affordable. For few other students the possession of Khaki half pant was due to allegiance of their parents to RSS, of course of their parents as we were too small to understand political ideologies of RSS or Congress.

That morning we marched in a single file from our school. We made a brief halt at Caltex petrol pump that situated little away from Wardha Road on the opposite side of a small factory manufacturing industrial spades; we called it as “Phavadyacha Karkhana”. We had to wait there as police had to block the traffic, so that we can occupy our positions on the road at the junction. A police jeep sounding siren zoomed past on the Wardha Road. Immediately few whistles were blown, smartly dressed policemen took their positions and traffic was blocked. We were led to the junction by our teachers ensuring the flags were held properly and instructions were given as to when to shout the slogans.


It was bright sunny morning and it was brighter for us as we were facing east. In few minutes two smartly dressed policemen, riding motorcycles one on the right side of the road and another on the left were seen approaching from south towards us. That was the indication that “Chacha Nehruwas coming. I strained my eyes to see a white car little behind the “Daroga”, vernacular synonym for the policeman who were riding the motorcycles. The car was approaching at very slow speed. As the car came further I could see Nehru standing in the rear open car in the center and greeting the waiting public waving his both hands. He was in white sherwani with his trademark red rose. We were instructed to shout the slogan and wave the flags. We were certainly excited to see someone whom we had so far seen only in pictures, in print media. No TVs in that era. The motorcade came nearer. The policemen on the motorcycles crossed us and suddenly there was some commotion just opposite me. On the other side of the road, I saw a man pushing a cycle rickshaw northwards on the road, through the crowd that was watching Nehru. His rickshaw breached the crowd and rolled over the road. He managed it so well that the motorcycles had crossed and there was enough space between them and Nehru’s car. The rickshaw rolled and hit the car in the front. Driver applied the brakes; Nehru’s hands came down on the back of driver’s seat to balance himself. In the meantime the man who pushed the rickshaw came running towards the car, stood on the foot board behind the driver’s seat, grabbed Nehru’s Sherwani near the neck with one hand and raised another to attack Nehru with knife that he was holding. Nehru was surprised, he tried to resist. In the meantime the Daroga riding the motorcycle on the right side sprinted towards the assailant and overpowered him. I was watching the entire episode with wide open eyes and awe. I was in no position to scream, I was flabbergasted. I realized the gravity of situation when I heard my schoolmate screaming and crying. Our teachers were trying to pacify us and cordon off the area due to the commotion. Police from the van that was following Nehru rushed and cleared the area. The attacker was hauled to the van and the motorcade resumed its journey. Nehru looked composed and continued waving to his admirers.

We returned to the school to continue with our classes, but everyone was really disturbed.
Author in 1955
I returned home after the school and described the entire incidence to my parents and siblings, who had already heard the same from neighbours and on radio. However my account was most significant for them being actual witness to what they had heard. Next day the newspapers carried te news in details. I was told that the attacker’s name was Baburao Chakole, who did this just to get publicity and for no political motives. The inspector who overpowered Baburao was attached to Sitabuldi Police Station and his surname was Quin, I don’t remember his first name (if anyone knows, please mention in the comments below).


Days went by; I grew up but could never forget the incidence. I might not have endorsed Nehru’s political ideology or policies, but I admired him for his personality, his aristocracy and calmness that he had after the assassination attempt. I doubt if India would ever have that kind of aristocratic, charismatic leader? His positioning in various segments was perfect, more so in 0-15 age group as Chacha. With 2014 election round the corner will some of the leaders reposition themselves?

I hate cooking - Read at New blog from the author

Tuesday, 29 October 2013

Halloween and It's Economic Impact

Halloween is a tradition in western world, with its roots in the Christianity. Halloween is the first day of the three days of triduum of all hallows also known as Hallowmass. This triduum, religious observance of three days starts with Halloween (All Hallows Eve) on Oct 31st and concludes with All Soul’s Day on Nov 2nd. The 1st day of Nov is All Saint’s Day. Halloween is also celebrated as harvest season in Celtic region of Europe.

Halloween is one of the most important events in the US. The typical celebration is trick or treat, children who visit your house are to be given candies else they play pranks. Costumes and costume parties are important part of the Halloween. Pumpkin carving is another important activity in this celebration. Haunted attractions in Halloween are for thrill and to scare. Age is no bar but largely it’s the children who participate the most. Many of the holidays in US are on Fridays or Mondays to enjoy long weekends. Some of the days are celebrated on a particular day in the month not on the date like Mother’s Day or Father’s Day. Not many ‘days’ that are celebrated on a particular date but Halloween is one of them that’s always on Oct 31st, just like the Chrtistmas on Dec 25th. However the communities, schools have Halloween parade or party on preceding Friday evening, Saturday and Sunday. Schools also have some celebrations and parades on Oct 31st.

Pumpkin farm with witches and black cats
Pumpkins have great importance during this period. Every decoration in showcases has pumpkins. In restaurants pumpkins takes over other routine cuisine. One gets right from pumpkin soup to pumpkin ice cream. And of course the main course is full of pumpkin, pumpkin and pumpkin. The orange coulor of pumpkin dominates everywhere. Farmers growing pumpkins are the happiest lot.


I tend to compare this period with Sarva Pitri Amavasya (सर्व पितृ अमावस्या last day of Shraddh श्राद्ध fortnight) in India as far respects are to be paid to departed souls and to Holi in terms trick or treat and costumes. Here colours of Holi are replaced with costumes. Decorations of the houses reminds of Diwali, but for the fact that these decorations are haunted/horror based. All festivities come with great business opportunities. I wrote a blog Marketing Significancs of Shravan in July 2011. I got reminded of that when I saw the marketing activities for Halloween in USA.  

Costumes for sale
Any taker for 59.99 plus Taxes
Celebrations have some rituals. These rituals are from belief  (in Sanskrit shraddhā श्रद्धा). There is a thin line that divides faith and blind faith, as these are mostly religion based. It’s best not to touch them. UNICEF an organ of United Nations Organization collects donations on Halloween Day to support the children from poorer nations. Traditions are followed, departed souls are respected and no one has challenged UNICEF as to why they believe in Halloween. It should be left to individuals to decide what they should believe or not believe. However in India certain elements want to encroach on individual religious practices and sentiments. They pronounce themselves as crusaders for abolition of blind faith. As far as an individual causes no trouble or harm to the society and has some faith or a blind faith, others need not worry. In India these so called champions attacks the poor Hindus for reposing certain faiths or blind faiths. They have a lobby. Ghosts demons, souls all have a mention in every religion, Christianity and Islam included, yet only Hindus are targeted by these groups. Someone observes a fast, someone doesn’t drink water, someone remains absent from meat and alcohol, how can one pass a judgment? What one calls as a faith may be a blind faith for others, it’s subjective. Leave it alone as long as it is not a threat to the society.

I always teach my students of International Business that faith, beliefs, superstitions have a great potential for business. Chinese trader and manufacturers become rich when India celebrates, Ganapati festival or Diwali. Most of items needed for decoration come from China. Faith, rituals and religious practices of Indians is a business opportunity for Chinese. Celebrations in any part of the world have an economic angle. Halloween has a great impact on American economy. The business reported last year for Halloween was nearly USD 8.00 billion. This year it is expected to be USD 7.00 billion. The drop of USD 1.00 billion is attributed to slowdown and shutdown of US government for few days in this October. But we really don’t know, the business may be higher than estimates. There has been a constant growth in the Halloween related business. It has grown from USD 3.29 billion in 2005 to USD 8.00 billion in 2012, a phenomenal growth even in the so called recession. Of the USD 8.00 billion spent last year USD 2.33 billion was spent on the Halloween Candy and USD 2.87 was expenditure on Halloween Costumes. Decorations had a share of USD 2.33 billion and the greeting cards could net USD 0.59 billion in competition with free e-cards and texting on BBM, WhatsApp etc. Remember these are all direct expenses. Indirect expenses are not accounted. Chinese must have been happy to supply variety of products and the local government is happy to collect taxes. The rituals have generated the income.

Crooner and children in costumes
There is month long horror movies schedule on TV channels. Serials like Walking Dead top the TRP charts. Haunted places, haunted hotels are in great demand. One finds lots of advertisements for haunted hotels. Malls have special activities to attract the customers. They conduct programmes and event particularly for children, like pumpkin carving, face painting, singing and dancing.
Pumpkin painting for children in a mall
Parents and Children in a mall

Homes are decorated with pumpkin lamps and with haunted look. Halloween parties are a big attraction as everyone comes in Halloween costume. Artificial skulls, bones are in great demand. A local cake shop in Princeton had an offer of a free skull on order of thee dozens of cupcakes, needless to mentions that many of these cakes had pumpkin. People dress up in Halloween costumes and go to the work place, have fun, enjoy the thrill and scare. It’s a great atmosphere. I only wish no self-advocated reformist group comes forward and demands a ban on these celebrations. Enjoy the festivals and rituals, it’s a binding force for the society.

Sunday, 6 October 2013

Cause of Poverty


On Jun 2, 2013 I posted a blog Nurturing Laziness. Recently I saw a comment. This post is in response to all the comments that further my belief that nothing should be given free or be subsidized  Anything that comes free loses its value. One has to work and achieve. To deserve and to desire are two different aspects. One may dream but that dream has to be a function of ones efforts and not just wishful thinking. To work and earn, to buy the food is a priority and the very act of turning this priority in to non-priority takes away the incentive, the desire to work. Empty stomachs will work better if work is made available. Food subsidy is a form of charity for selected group. Charities are generally counterproductive. Their main beneficiaries are not the intended recipients, but the givers. May be it’s a vote bank politics. Frankly, the idea of charity itself is corrupting to both parties in the transaction and that is bad for a nation. I would once again like to emphasize that the programs that are specifically designed to teach an individual to fish, rather than to just hand out fish are essential. Conduct the programs that teach job skills.

Nurturing Laziness was posted much before government came out with ordinance to offer food at subsidized rates to those below the poverty line. Unfortunately for India just 33% population above the poverty line will have to shoulder the responsibility to feed those who are below the poverty line. It’s sad, in many ways. How come a country has over two third of its population below the poverty line even after 66 years of independence? Who should take the responsibility for this? I have no idea of numbers of 1947, that would tell us if there is any percentage increase in the poverty figures, but one thing is certain that today in absolute numbers we nearly have twice the Indian population of 1947 below the poverty line. I try to find answer to a simple, why are we still poor as a nation. One question but there are hundreds of answers. I firmly believe that in most cases poverty if not a function of bad luck. It may be so for those who are born with physical or mental disabilities, but largely not for others.
We as a nation have failed to have disciplined ourselves. Discipline needs training, efforts, restrains, motivation and willingness. If anyone of these is missing then we are not on the track. Singapore is an excellent example of a disciplined nation. American President’s daughters get a ticket from police for alcohol-related misdemeanors or Queen Elizabeth’s grandson fights a war in Afghanistan are actualities from developed nations. We do see an element of discipline and national character in this. Discipline eliminates poverty. Poverty is simply a sign of bad habits. It’s a sign of a lack of self-discipline. Laziness causes distress or pain to those who are not willing to learn skills that can get them right jobs. Poverty is a sign of having no self-respect. In the vast majority of cases, those who suffer from poverty are not victims of anything other than their own bad habits (smoking, drinking and drugs included).
Giving free food or necessities of life will deprive of the motivation to achieve higher goals. Endowing groups, or individuals, because they happen to have so called bad luck culminating in poverty, or those who are perpetual losers, is actually immoral. I happened to read a Jew philosopher Maimonide’s “Eight Levels of Charity”, the great philosopher and thinker has different ideas about helping people. Top on his list is to support a fellow Jew by endowing him with a gift or loan, or by entering into a partnership with him, or finding employment for him, in order to strengthen his hand until he need no longer be dependent upon others. No wonder a small country like Israel is so strong and self-sufficient. One need not depend upon the government to provide everything. It is bad for developing nation and also for the developed nations. We have seen what’s happening in EU, in country like Greece. The “Obamacare” and resultant shutdown of American government from Oct1, 2013 is not a good sign. People have come to believe that an instrument of coercion, the state, has to take care of them. This is possible if country has large natural resources and these are so large that the state has not even to tax the subjects. Few Middle East countries can do that but not others. If government has to provide then government has to generate revenue and the easiest way is to tax those above poverty line. Wealth creates wealth, taking away wealth by means of taxes results in slowdown of wealth creation. Taxation is always a debatable issue in any country. All that is needed is rationality. A small number of poor can be supported by large number of rich subjects, not like India where 33% population has to bear the burden of feeding 67% population who may lack further motivation to work. This will diminish the pool of workers, production will suffer and soon the 67% will soon swell to 76% and even more. The farmers will not get due price for their produce as subsidized food is available. This will sway the farmers from agriculture and will finally lead to drop in agriculture production. We are playing with fire that is likely to be out of control.

I would refrain from any political commentary, even though it is a root cause for indiscipline and the resultant effects. India has to mature, understand the importance of discipline. On the front of inculcating discipline we are a big failure. Simple things like obeying traffic rules (remember these are for our own safety), following schedules and appointments, punctuality etc. have lost their meaning. Nearly 55 years back, I had to compete with 120 students to get selected in NCC. We took pride being the cadets and later on NCO’s. Twice a week we had parade at Kasturchand Park ground in Nagpur and it was a spectacular site. Bypassers would pause and watch the parade. While in college I continued to be in NCC, for a year in Engineers and later on in Infantry. My fellow cadets were from engineering and other professional colleges. Those five years in NCC made us tough, more disciplined. Today I hardly find any existence of NCC. There is overall apathy among the students to join NCC. It is so unfortunate that there are many vacancies in our armed forces and very few really seem to be interested to join the armed forces that demands discipline and integrity. On the other hand there is a huge rush to join police force and state civil services, which have questionable credentials. Why should one opt to be a policeman rather than a Jawan? Both are in the service of the nation, but discipline, honesty and integrity levels are so different. I don’t think much needs to be written on this. There is no substitute for discipline and it has to spread like virus.

We are losing out fast. China has already trapped us from all side, be it Pakistan (POK and Gwadar) or Mayanmar or Sri Lanka (Hambantota port). Our supremacy over the Indian Ocean is gone. We had great opportunity in last decade to be a super power. Former American President Jimmy Carter’s National Security Advisor Zbigniew Brzezinsky in his book, Strategic Vision – America and Crisis of Global Power published in 2010 has recognized India as complicated mixture of democratic self-governance, massive social injustice, economic dynamism and widespread political corruption. Three years down the line after the book was published many changes have taken place in India. Major scams have surfaced, politics has further corrupted, social injustice against women and children is on rise, democratic principles are being misused – supporting criminals in politics, No RTI for political parties are recent example. The high flying economic development is nose diving with no one in position or not willing to control. On the top of this subsidized food is to be supplied to over two third population of the country, that’s going to add further misery to the crumbling economy. We need to have fiscal discipline. Time has come to wake up, take a stock of the situation and take certain harsh decisions. Subsidized food has to go. Socialism has limitations. One of the major problems of socialism is corruption. It finds its roots and flourishes in socialistic regimens. Even the Russian President has been vocal on this. On the official web portal of the Russian President, a message was posted on Sep 10, 2009 which acknowledged that corruption has debilitated Russia. The message further states, Quote ”Until today this erosion has been due to excessive government pressure in many significant aspects of economic and other social activities” Unquote. Can we learn something from this?

I am aware that I drifted from my comments about subsidized food. I standby with my statement that nothing should be given free or at a price that is almost free. This is a multifaceted issue and cannot be looked in isolation. Each aspect is to be looked into with diligence. There is a gap between truth and belief that needs to be understood and bridged. Let there be a better tomorrow.




Friday, 20 September 2013

Fall of Retail

 I took Carillion Blvd and drove into Carnegie Center Blvd, I had few seconds to decide before I would be at the traffic junction whether to take right turn on US 1 North or left turn to be on US 1 South. Couple of miles on North would take me to Wegmans and Wal-Mart whereas South would take me to Superfresh about five miles away.

US1 - Expway in US

I stayed in left lane to head towards North. I was waiting for the signal, the traffic on US 1 was moderate and impressed me with lots of new cars zooming past the crossing. I felt auto industry was not in that bad shape in US. I turned left and was comfortable driving in the center lane for another 2 ½ miles before I took the Scudders Mill exit. On my right I saw the Princeton Health Center. It was under construction when I visited Princeton a few years back. I was impressed to see widening of Campus Road at next traffic signal to facilitate smooth flow of traffic towards the health center. After driving for a mile and a half I was at Schalks Crossing, I slowed down the car and took free right turn at the signal, crossed USPS (post office) took a right to park my car near McD. I had a surprise in store, the McD was almost gone, couldn't be easily noticed, may be they were doing well but from outside it wasn't prominent as we find it in India. In stead some Mexican joint was more prominent. Anyway I parked my car there and decided to move around.

The place looked so familiar even after little over three years. I could make out in a glance that the Block Busters is gone and Pet shop has come in its place. Block Busters was in keen competition with Netflix. I would frequently visit Block Buster to rent a DVD and to drop back in the box. I felt sad to see the Block Busters go. 
No more CDs, DVDs on rent
In any case recession was not the reason for its closure. It was the technological advancement that had taken the toll of an established business. Online availability of movies and serials, Apple TV, free downloads, iPhones, smartphones etc. all had forced the closure of Block Busters. The changes in technology can impact business and result in zero sum game. Pet shop replacing Block Busters indicated surplus money available to spend on pets in American society. The CVS pharmacy around the corner was still going strong. I proceeded towards the Superfresh and on way found a photo processing lab run by Chinese had downed its shutters. Again it was the technology to blame. The photographic business was not the same after the advent of digital photography. The next door Hallmark was also gone. Blame it again to the technology, social networking eliminating the need of a physical greeting cards. I moved further. The dollar shop of a Pakistani was gone, Dunkin Donuts had its usual clientèle  wine shop run by an Indian was doing better, NYSC gym was replaced by another gym perhaps the change of franchiser. Indian restaurant had a new management and double the space. All looked well. As I came near the Superfresh, I was in for a surprise. Superfresh was closed.
In front of empty corridors where Superfresh existed

Chill ran down my spine. How could it be? I asked a question to myself. The store was apparently doing well when I visited last. I could easily compare it to Shoprite in terms of its size and services. Right from fresh vegetable and fruits section to Parmacy, Superfresh had everything. In fact fresh vegetables and fruits section and its Pharmacy were better than many other similar supermarkets. The salad bar and ready to eat food area with multi cuisine menu was a treat for working executives in the neighbourhood of Plainsboro and College Road. I just couldn’t imagine that it was all gone. Superfresh belonged to A&P group, a leading company in US. The company was in expansion mode till mid 2008, acquiring Pathmark. But it announced closure of its outlets from early 2011 and the Plainsboro Superfresh was closed on Nov 14th 2012. Competition may not be the reason for the closure. There was no competitor for Superfresh in radius of nearly eight miles. The nearest competitor was Wal-Mart, Wegman’s, Shoprite all of them close to each other. They should have been the one who would feel the heat of competition. It was Kmart that had similar fate like Superfresh few years back. Was recession the reason for Superfresh closure. I personally feel not.

My mind went back to India, Navi Mumbai in particular, the place where I stay. I have seen organized retail closing down. For a change the government policies were not much responsible for such closures. There have been hundreds of hurdles for FDI in retail. The single brand, multi brand has been topic of discussion for politicians. Similarly 100% investment by foreign player was also adequately debated. Many hurdles were created right from city selection based upon population to state government approval. No worthwhile investments have come in this sector. The death of organized retail in India was of Indian companies. Business decision based largely on political situation was seen in UP. Reilance took decision to shut the business there. Strategic decisions going wrong started with Subhiksha. Others did similar mistakes sooner or later. I have seen in my locality closure of few outlets of More, Fairprice, Spinach, Foodland to name a few. In the recent past More mega stores was also closed. In Navi Mumbai two major attractions of yesteryears, Palm Beach Galleria and City Center met an early death. There was a time when these places were responsible for traffic snarls and jams in the area. That was the rush these places attracted. Center One, the first of its kind in Navi Mumbai and the still half vacant Raghuleela Mall are struggling for their survival. All these resulted in loss of thousands of jobs. At the same time the “Gupta Stores” around the corner is flourishing. How do we explain this? No real FDI has come but the retail crumpled and what crumpled was Indian organized sector. And all this happened when the Indian economy was growing better that US economy and was perhaps the second best after China in the world. Explanation for this is too complex.

I shifted my thoughts from India to US and went back to my car. I drove to Nassau Blvd on US1 that had Wal-Mart, Target, Wegmans. All of these were all doing well. A little away Comp USA, a leading computer hardware and software chain stores was replaced by Dollor Tree, but Best Buys selling computer hardware and software was doing well. Boarders, a leading book stores that would satisfy the hunger for knowledge was replaced by Buy Buy Baby a competitor for Babies ‘R’ Us and diversification of Bed, Bath and Beyond. I don’t know if closure of book stores should be blamed to e-books and technological advancement or surplus disposable income available to spend on children rather than buying books?

Parking lots are full even now
The food court in Market Fair has been replaced by high end sit in restaurants that results in increased customer spendings and these too are doing good business. Fortunately Barnes and Nobel is still there though at different location. For a person like me returning to US after over three years the business scenario is different. There is a certain shift in business, I don’t see any decline, parking lots are full, stores are crowded but where and how the money is being spent has undergone a change.


I have no answers for many questions and to the major question if these changes have any logical relation to recession? And will these lead to economic prosperity or downfall? Time will tell.


Wednesday, 26 June 2013

Retail Pharmacy

Perhaps stars are not favourable for Indian pharmaceutical industry. On one side the vested interests are bent upon to malign the manufacturing industry that provides affordable medicines across the world. The fact that hurts MNCs. On the other side pharmacies are holding the manufacturers and the consumers at ransom, threatening strike every other day and dictating term. It’s painful reality.

The retail pharmacy business dates back to 1860’s. The manufacturing sector emerged in India almost after five decades in mid 1900. Even with the late start the manufacturing sector made a spectacular progress. With government support the manufacturing sector is galloping from 1970 onwards. Ever thought why retail sector could not keep pace with the manufacturing sector? There are many reasons, but just one most important reason has been lack of professional management. Retail never got the right impetus. It lacked professionalism. Unfortunately pharmacy has been an extension of a grocery shop in India and that mentality of owners and consumers hindered its progress. We hardly see any board of Pharmacy. What we see is board of medical and general stores or a chemist. There is tremendous increase in the number of such shops (pharmacies) but there is a lack of quality. There is hardly any pharmacy that can come close to its counterparts even in a nearby place like Dubai. The standards of pharmacies in developed nations are far superior. Unless the mentalities of the pharmacy owners undergo a drastic change, the Indian consumers will always be at receiving end.

One of the most neglected lots of professionals in India is the pharmacists. The poor pharmacy graduates study mathematics and microbiology, pharmaceutical engineering and pharmacology, pharmaceutical management and pharmacognosy, and many other subjects for the graduation. It is a much harder discipline than many other fields, but when they graduate they are offered peanuts by the pharmacies. The diploma holders are not much different. There is a exploitation of this young generation. At many places one finds a ‘qualified person’ is grossly unqualified, but who cares?

The margins for the pharmacies in India are perhaps the best in the world. In addition to medicines the pharmacies indulge in many other activities. Selling talk time of mobile service providers is unique to India. Very often one find a big board of mobile services provider and the name of pharmacy appears in small letters in one corner of the board. Substitution of doctor’s prescription by another product that offers better margin is very common. Some unscrupulous elements also indulge in selling samples. The bonus offers and discount schemes announced by manufacturers never reach the consumers. Some assume a role of clinician and practice medicine. In many places in UP and Bihar, patients are injected by someone in the pharmacy. The pharmacies also make large profits by selling cosmetics and daily necessities, even bread and butter. The claim that pharmacy business is not lucrative is a myth. There are hardly any pharmacies that have downed their shutters. Many of the pharmacies get credit from the wholesalers and do their business with negligible investments in stocks. Date expired and unsold products are replaced by the manufacturer. Pharmacy is one of the most lucrative business in India.

There is greater awareness by FDA. The rules are being implemented. Consumers are getting smarter. There is an increased competition. Availability of more pharmacy graduates and their chances of starting their own business in a professional way and many more reasons make old timers, and the so called leaders in the wholesale and retail sector jittery. The problem is threat to the supremacy of some individuals, unions and associations. All these years the companies are restricted from marketing their products unless they pay large sums to local associations. Unless NOC is obtained, the manufacturer cannot market the product. The word NOC was replaced by word LOC (Letter of cooperation) due to MRTP issues, but the practice still prevails. Long back the chemist association in Aurangabad had decided to restrict number of brands in the market. Just five brands of Ampicillin were allowed in the local market. This practice prevented a local leading manufacturer Lupin from making their Lupilin available in the local market where it was produced. This dadagiri of the chemists association started in early eighties. Sarabhai Chemicals, the leading company in that era had reduced the margins and the association went for boycott of Sarabhai products that lasted for a while. The unity among the pharmacies was about to break. Many of the pharmacies were losing business and were keen to end the boycott. It was the time when Sarabhais decided to go public and had announced their public issue (what we call now as IPO). Fearing the adverse impact on the public issue, unfortunately the management succumbed to the demands of the chemists association. Tiger tasted the blood and eventually became a man-eater. The arm twisting practices by the wholesalers and retailers that started in that era have increased over a period of time. FDA has now stepped in and want the pharmacies follow the rules and provide better service. This is what hurts the leaders who are mentally still in the last millennium. They want to dictate terms on the association members, arm twist them to maintain their supremacy. There has to be end to it.


With the changes that are taking place in the society, and with the diminishing role of family doctors, there is a need for community pharmacists. This is a noble profession, but certain unscrupulous elements are tarnishing the image. Time has come to empathize with the patients, understand their pain and provide them with right medication and advice. The element of social responsibility has to be there. Business ethics must include obligations to the society. There has to be a difference between a person selling paratha for Rs. 200 to a stranded devotee in Kedarnath and the pharmacist. Pharmacists should not hold the consumers and manufacturers at ransom. This is possible only when the pharmacies are managed by professionals and are treated as pharmacies and not as an extension of grocery shops. Running pharmacy should not be a Dhanda, but should be a noble profession. It’s a dignified profession. Act that way, don’t degrade. Will the pharmacy owners realize this and act?

Saturday, 22 June 2013

Life begins NOW…..

Every year the months of Jun/Jul assume different importance for me. I see so many of my young friends on the threshold of new life. Life begins for them now. This is the time when the results of MMS and PGDM are announced. FB is flooded with the messages and there is a sense of achievement. Yes, it is an achievement, fulfillment of aspirations. The moist eyes of parents and a affectionate hug of siblings enhance the pleasure of this achievement. But these achievements come with a price. The price that has been paid and the price that is to be paid in future, the uncertain one, the unknown one.

MBA adds greater responsibility. As a management graduate one is expected to perform better than others. The mistakes committed by others may be overlooked, but the management graduates are not expected to commit those mistakes. So better application of acquired knowledge is needed, eye for the details is needed and commitment to excel is needed. The maturity levels attained by management graduates help them to mould themselves. Many of management students ask me a simple question. Why should I do this job now after MBA? I could have done it even without MBA. That’s a very valid question. I feel MBA puts you on a different platform that helps to perform any job better and faster than non MBAs. One develops an edge and then over the years this edge has to be regularly sharpened to get better and better results. Management qualification helps to have a better vision. What cannot be seen, anticipated, visualized by others can be done by management graduates. These skills get developed, this may not be a part of structured syllabus, but it comes without asking. Therefore a job that a graduate can perform will be done much better and faster by a MBA.   

Many of my young friends who started at grass root levels are doing exceedingly well. The zeal for achievement, determination and commitment with a pinch of luck has done the trick. Adaptability to so far not known work culture helps a long way, be it a job or own business. My young friends who chose the less travelled path and used their MBA knowledge are also doing well. Developing websites, selling fruits and vegetables online, starting a fast food joint, venturing in to real estate or interior decoration business or just helping father to do better with existing business are the fields where my young friends have done noteworthy job. Taking risk and going on less travelled tracks helps in the long run. But one has to have patience and has to believe in self. MBA helps in this respect.

The world is changing fast. There are plenty of opportunities. These are to be cashed upon. One has to be proactive. Anticipate what will be needed a year later and work on that today. If one starts working on providing what is needed today, it may be too late. By the time one develops and offers something the needs might change, so work for the future needs and offer desired product at right time. MBA helps you do to this. This applies not only to marketing but to every specialization. HR has challenges to manage knowledge resources, finance has to work in challenging times as world economy is delicately poised, operations and IT will have to operate on higher platforms due to rapid changes in technology. Every field has challenges, every field offers opportunities, and if one has vision then one can see through for others it’s like unscaleble wall. Use your MBA knowledge here.

For all those who failed to get the formal degree, remember it’s not the end of the world. But the knowledge acquired is still there. Knowledge is indestructible. It cannot be destroyed. Apply this knowledge to whatever you choose to do in future. Success is certain. Remember one simple principle, knowledge is an advantage acquired, but this advantage can be nullified if not refreshed. No one should relax, strive to update knowledge every moment, be a student for life time. You will learn to succeed.  

Choose the field that interests you. Your interest will help you perform better. And better performance will propel you for the growth. Guide your future yourself. No one knows you better that yourself, so choose what suits you, what interests you. It’s time to begin, take right step forward.


And a final word. Be a good human being. All the wealth, power, knowledge is worthless if one is not a good human being. May God bless you all for bright future.