AITM Seminars >> 5th Public Seminar: “Emerging (Global) Corporate Landscape Speaker” Prof. Dr. Arun Kumar Jain; IIM, Lucknow

 

AITM organized its 5th Public Seminar on “Emerging (Global) Corporate Landscape” on May 20, 2013 in its lecture theatre in AITM Building. Prof. Arun Kumar Jain, a distinguished Professor of Indian Institute of Management (IIM), Lucknow and our AITM visiting faculty for Strategic Management and CSR for our MBA program, delivered the seminar on this important topic. Prof. Emeritus Ram Manohar Shrestha, Chairperson of AITM Academic Council chaired the session. Some senior distinguished personalities, faculty and students attended the seminar.

The global corporate landscape is a huge market that covers almost everything under the Sun. One should not see it as a totally new phenomena but the continuation of activities and developments from past. In each generation there are visible changes, as we also observe in last few decades there have been sweeping changes in all landscapes, from family to global level.

A few decades ago the family size used to be quite large, but today the size has become smaller with two to three children per family. Everywhere nuclear families have replaced the traditional joint families. In old days marriage age used to be below thirteen years, but now people are getting married quite late. In last few decades educated people used to go abroad and settle for greener pastures, but now many of them are coming back home since there are equally good opportunities.

For today’s young people aspiration is not the moon but beyond the moon. Relations amongst people or in family are changing fast and so are the changes in corporate relations. New technology has put all information on finger tips of young generation. Today’s children are becoming adult faster and bigger than in earlier days, and have invited many complications along. Their aspirations are quite different and higher than older generations. They want to own a Lamborghini by the age of 30 years, own a boat house at Zurich Lake and become CEO of a multinational company before they reach 40 years of age.

Title: Emerging (Global) Corporate Landscape
Speaker: Prof. Dr. Arun Kumar Jain, Visiting Prof. – AITM; Professor – Indian Institute of Management (IIM), Lucknow
Date: May 20, 2013

This reflects the trends in young generation’s aspirations and also effects the change in relationships. Similar trends are happening in the corporate world. The global corporate landscape has a foundation like the perception of Earth being flat and standing on a turtle, which again stands on two turtles and these two stands on another for and so on goes to infinity. When any turtle gets tired or dies, it is immediately replaced by another equally stronger and able turtle. These turtles symbolize many aspects of life in this world. In today’s world, this could represent many –ism also like, capitalism, socialism, Maoism in political arena, and Buddhism, Hinduism, Jainism etc. in religion. All these represent various places the turtles that are holding the Earth. The collapse of Berlin wall has brought a paradigm shift towards capitalism and a great leap towards privatization at global level.

According to Fortune 500 that lists top 500 companies with highest sales in the world, the 500 companies listed in 1950 virtually came down to a total number of only 27 as listed in the last decade. Hindus believe in Brahma, Vishnu and Mahesh the Gods of Creation, Maintenance and Destruction. It’s a normal phenomenon to see that like life, companies also are created, maintained and destroyed. The companies that were flourishing in earlier decades have almost non-existed and new companies have evolved. Many of these companies did not exist before like internet business houses, Google, Facebook etc. Wall-Mart, biggest company in the world today, has a turnover US 450 billion per annum which can be regarded as the twelfth largest economy in world in terms of GDP. Today the outsourcing world considers China as the factory and as the India back-office for whole corporate world. Thus the nature of globalization has also affected the global value change and global supply change. Bangladesh, though a developing nation, is second after China in textile production worth 18 Billion US$ outputs per annum, due to its lowest labor cost. However, in recent years it mired by social values change that consider this low cots labor as modern day slave and has suffered stoppage of orders from developed nations.

This is always interesting to see that the corporate landscapes have been changing with generations. A few decades ago, amongst 500 top companies listed by Fortune, there used to 330 in US, 125 in Europe and 15 to 20 in Asia mainly Japan. They had turnovers of 60 trillion $ in US, 30 in Europe and 10 in Asia-Japan. Now that global corporate landscape has changed with almost equal number of companies, about 160, in all regions and also the turnovers in these regions are almost equal at 700+ trillion US$ per annum.

Now we may say, what is there for Nepal in all this? Nepal needs to exploit its resources and take on the opportunities. The base or foundation is quality education. As one candle can light others without diminishing its own brightness, institutions like AITM that has been established to cater quality education in Nepal must help other institutions to achieve similar goals. In case of Nepal a person always wonders why it is far behind Switzerland, which has similar natural beauties and landlocked boundary. The Swiss has the most competitive economy in the world today with $ 69,000 GDP for a population of only 8 million people. Similarly, Israel with population of 8 millions has a GDP of $ 30,000 almost 50 times of Nepal’s GDP $600 for a population of 35 millions. Why this has happened? What is the reason? Institutions like AITM must look into these issues to establish itself as the prominent academic and research centre in Nepal. The private companies and corporate houses can run the show, government can facilitate for market capitalization.

There are good and bad points in capitalism but market capitalization have been instrumental in change of economy today. The companies must show its ability to change economy but education and research institute like AITM can assist in building pressure to create values, creating global opportunity in global companies and capitalizing the stock market in today’s global corporate landscape.