{Re-articulation} on Indian economy

Why family-run corporates are still among the top in India Inc {original article title}

(http://economictimes.indiatimes.com/features/corporate-dossier/india-incs-most-powerful-ceos-2012-why-family-run-corporates-are-still-among-the-top-in-india-inc/articleshow/13407758.cms?adcode=1 )

{Because they rule these businesses as dictators & run the Government with their combined corruption policies. } Planet mirror’s Ramnarayan's Re-articulation.

Original article by Medha Kudaisya

Re-articulated by {Ramnarayan} {Planet mirror}

 
Family capitalism is here to stay! It remains the predominant form of modern capitalism in India.

RAM: {Forceful domination}

RAM:     -Indian economy (Indian economy means common man difficult earning rich person lavish spending) used to rules & run by Rajas, after some time with some Big business families & politicians now also a part of the economy was in the hands of some business families & politicians but major part got globalized (Economy Globalization Means rich countries control on remaining countries economy.)

The 'Buddenbrooks syndrome', that tells us that businesses run by the third generation tend to run out of stream and lose their dynamism, can safely be laid to rest, at least as far as Indian business is concerned. Family business remains the most dynamic and persistent form of business organisation, as the 2012 list of the country's Top CEOs' shows.

RAM:    Family capitalism was a predominant capitalism in India. It’s a Forceful domination in our country presently running third or thirtieth generation if the growth seed are corrupted all upcoming generation will also get corrupt. in the 1800’s these business families are very few sill they played several dirty plays to get business now these families were little bit increased and also global business got Flat, with the increase of business corrupt tactics also increased new families invented New corrupt modules which were effect Indians growth very badly Ex: - Reliance Ambani’s family

If one were to look at medium and small-scale manufacturing and at the retail sector the picture would not be much different. History shows us the inseparableness of family and the business firm, the rootedness of the firm in culture and local community, the importance of 'status' in commercial practice and the necessity of understanding the family firm in the totality of its relationships in the South Asian context. What is fascinating is the continuing resilience of the family firm in the new context of liberalisation.

RAM:   { These type of rootedness culture come in to picture in the medieval history of India when some people became more selfish and they used every social tool for their selfish growth means some selfish groups of people framed cast system & spreaded some social evils in the society in the name of god & wrongly interpreted the Vedas in the society. These selfish groups spoiled real Indian cultures finally they became brutal dictators & these small groups of people grabbed the entire society money & power to their hands. From then two big evils took birth the in society those are Rich & Poor. Form then till now rich is getting richer Poor becoming poorer. Generations’ together These Rich group’s culture is to squeeze Poor’s Blood & flesh. Now these Rich changed their name as Entreasure their stupid tricks became commercial practices. With reference to South Asian family Group business context these are the true facts in the Roots.

Yet those that have survived beyond the third and fourth generation have gone to great efforts to transform themselves, have managed inter-generational succession, have kept family conflicts out of board rooms and have incorporated managerial capitalism. Family capitalism can no longer be thought of as conservative and backward as the skeptics of family businesses view them.

RAM:   {Some of the present 3^rd & 4^th generations were still fighting for survival. Some are away for the racing track & enjoying the interests of reserves. Some are Re-engineering the traditional business and with some successes spreading their business to wide range like Kumar mangalam Birla. Today’s generations were facing global challenges in the open economy. What ever the generations it may be business strategies didn’t changed, still most of the business runs with the collation of ruling Government not with the social interest these 3^rd & 4^th generations were not only inventing in new business process their corrupt strategies also globalizing. Generations changed, year’s numbers changed but the business brains are with same stuff.

As the 2012 list shows, much of the leadership of these firms has been trained in the world's best business schools. Ratan Tata has a degree from Cornell, Azim Premji trained at Stanford, Anand Mahindra has an MBA from the Harvard, Kumar Mangalam Birla has a London Business School degree.

RAM:     {This is the bad fate of India event though the top listed leaders passed out form the Best B-Schools of the world they can’t apply those ideal Business concepts in India. Indian business was in a stage that we were not able to decide who spoiled whom? is the past generations spoiled or the political environment or west countries curse. Even though our economy was in the hands of well educated leaders our growth was still a lazy Bear.

These are not new groups, although their business aggressiveness and their ability to think in global terms is a new phenomenon, which has been sharpened by the more pro-business atmosphere of the post 1980s. Not surprisingly many of the larger groups have incorporated managerial capitalism with family capitalism since at least the 1970s and have thus been able to rise to the challenges of liberalisation. Further, daughters are increasingly becoming part of succession planning, inheriting assets and entering boardrooms. Prime examples would be Manjushree Khaitan of the BK Birla Group and Priya and Priti Paul of the Apeejay Surendra Group.

RAM:     {Even though there is a huge need of new products & processes, even though there is a hug demand for new business our Indian closed Business minds didn’t allowed new players. Not allowing new player in to our ground was a big united strategy of our business Families. Some of the new kids tried to set up a interlink cable with the global business but still our business was not transparent mirror.

What is clear is that business as an actor has been able to negotiate several different regimes - the Nehruvian period was an especially difficult one when business, which was hoping to be a player in the newly independent nation state, was sidelined by the general anti-business rhetoric, the licenses and permits.

RAM:     Indian independence phase is the worst stage in Indian economy. Our economy had bad seeds in the initial stages with Fear, Closed thoughts, political & business family’s selfish strategies, huge free hand spending for nation building, and great business minds partition like this there are lot of issue which was affected our Indian economy base that is the reason now we are facing some land slides

There was brief relief in the 1960s but it proved to be too short lived. A worsening atmosphere came thereafter epitomized by Indira Gandhi's disdainful comments such as 'our private enterprise is more private than enterprising.' It is only with liberalisation that the private sector is beginning to be seen as a legitimate partner by the state.

RAM:    After Nehru rule India started thinking apart for the nation building. Then the public policy makers started thinking about future Business image of India but still some politicians and some selfish big private business families influenced our business strategies. At the same time India passed through the internal & external safety challenges. Indira’s emergency thoughts also showed some long term business deficits. Liberalization was started but in a closed boundaries. At this time some foreign companies & countries started influencing Indian economy indirectly for the remaining resources of India. The foreign companies strategically planed & kept Indian economy in their control for future decades with the name of private liberalization.

This new scenario has been enthusiastically received and channelised into measures, which have made private enterprise globally competitive. These measures include corporate restructuring, focusing on core competencies, implementing management changes and enhancing competitiveness as they aspire to global status. Larger groups have shown concerns that 'reputation' and 'high brand equity' should not be compromised in the face of rapid expansion and major acquisitions.

 

RAM:     Present Indian scenario should be a 25 years past scenario in growth perspective. But form 2010 Indian economy was traveling towards dark side because of Indian political instability & global economical slowdown effect. (our flashing growth was interlinked with global economy especially with USA economy). Indian private enterprises should go global otherwise they can’t survive in the global competition that is the reason they are investments went global. Most of the Indian organizations doing propaganda that we were globalize with “D” graded outsourcing services they were showcasing poor locals that we operate globally & our organization competing globally but their product & services standers are too much low with the global standers some of the organizations are competing with Indian natural resources foreign investors also came to us for our rich natural resources only. We all are aspiring to get global status but our practices are not matching for that status. Still our 'reputation' and 'high brand equity' are with in the country local business incorrect influences.}

Not surprisingly, the Tatas were among the earliest groups to implement a new code of ethics and 'brand equity Business Promotion agreement' and a 'Tata Business Excellence Model.' A confident private sector has gone on a global acquisitions spree with fierce aggressiveness.
 
The acquisitions are impressive especially.

Amongst the most symbolic is the takeover from Ford of Jaguar and Land Rover which heralds the acquisition of a 'symbol of British style', the makers of 'James Bond's new wheels' and 'Inspector Morse's classic.'

Godrej is aspiring to global status through acquisitions of local brands in the personal care line and the AV Birla group in aluminum and carbon black.

 

RAM: May be now Tatas were implementing a new code of ethics and 'brand equity Business Promotion agreement' and a 'Tata Business Excellence Model.' But their history contains some black pages; they also have some bad roots beneath the ground. Even though some wings are acquiring prestigious product manufacturers like Jaguar and Land Rover but still at roots cultures are same

However, this could only be maintained if the pro-business atmosphere which was inaugurated with the economic reforms of the late 1980s and especially post 1991 is sustained. Unfortunately, this seems to be evaporating in the UPA II dispensation. Family business has thrived under liberalisation and has been able to forge meaningful links with MNCs in a confident way.

The next challenge that lies before family business relates to what may happen to the retail sector, particularly in the context of the issue of entry of FDI. Walmart and 'Mom and Pop' run retail shops need not necessarily be adversaries. There may exist develop complementarities through the forging of relationships to mutual advantage. In any case the investment in logistics and supply chain would ultimately benefit the lower and medium segments of the retail sector energizing the vibrant bazaar component of the Indian economy.

RAM:     {How ever Before 1991 politicians (policy makers) will be feed through some 10 to 20 big business families that is the reason they got what ever the policy which they want. But after 1991 libaralisation the politicians (policy makers) feeding program also globalized. With Multinationals feeds they started doing policies according to the MNC needs. With these policies the local companies suffered lot still when we offer FDI in some sectors like retile the local companies with the support of local social bodies making some agitations. But still the central political parties are getting huge feed from the Multination companies especially from the UAS. If the USA need to retain the past business glory they need to expand their business to as much as many countries. Our Prime minister was an acting doll in the hands of UPA leader sonia, UPA leader sonia was an acting doll in the hands of USA & other west countries. So UPA –II or else any other Government should act according to the rich countries needs. Indian economy depends upon the rich countries economy. What ever the day If they felt Best & Great then we can have 2 meals a day otherwise_________.