| THIS WEEK: ONE YEAR OF A QUOTA-FREE WORLD |
| The quota elimination brought in a number of changes in the world of textile and apparel trade. |
| American imports in 2005 crossed Rs 4,09,400 crore in 2005, an increase of 7 per cent. |
| China emerged as a major gainer with 29 per cent increase in market share of textile and apparel for the US market and 16 per cent share in the European Union (EU) market. |
| Although most of the Asean countries gained market share, Mexico and countries in AGOA (African Growth & Opportunity Act) and CBI (Caribbean Basin Initiative) lost out, with a 6 per cent fall in export value in 2005, compared to the previous year. |
| Imports by the EU climbed 1.1 per cent and reached Rs 8,64,800 crore. |
| Indian industry also witnessed a 19 per cent growth in apparel and textile exports in 2005, compared to 2004. |
| Countries adopted different strategies to take full advantage of the quota eliminations: while China and Bangladesh emerged favourites when it came to cheap sourcing options, Pakistan became a category specialist and Turkey turned to low lead time and high fashion exports. |
| Although imports increased in the US and EU, prices in both major markets dropped 3-5 per cent. |
| The Global market for apparel is expected to grow from Rs 12,92,600 crore in 2005 to Rs 18,26,200 crore by 2010, and the textile market for the same period is estimated to grow from Rs 9,24,600 crore to Rs 11,86,800 crore. |
| Selections from management journals NUGGETS |
| J P Morgan Chase (JPMC) ranks among the world's leading financial-services businesses, boasting $1.3 trillion in assets, a major US consumer-banking franchise, and operations in more than 50 countries. |
| Its $58 billion merger with Bank One, in July 2004, was among JPMC's most ambitious deals to date, marking the return to Wall Street of Jamie Dimon, Bank One's former president and chief executive officer, who took over as president and CEO of JPMC in early 2006. |
| Dimon is well known for his roles at Citigroup, its subsidiary Salomon Smith Barney, and its predecessor Travelers Group, where his energy, eye for detail, and firm approach to cost cutting first attracted attention. |
| In this McKinsey Quarterly interview he speaks with McKinsey director Clay Deutsch about the benefits and disadvantages of scale, the challenge of integration, the difficulty of balancing acquisitions and organic growth, and what he expects from the people who run individual business units. |
| Building the global bank: An interview with Jamie Dimon Clayton G Deutsch McKinsey Quarterly, 2006, Number 4 |
| Read the interview at www.mckinseyquarterly.com |
| A wave of supersizing in the brand portfolios of consumer packaged-goods (CPG) companies is coming to an end. Decades of unfocused growth, with acquisitions that doubled or tripled portfolios overnight, had left CPG companies, including such notables as H J Heinz, Sara Lee and Kraft, suffering the economic health hazards of portfolio obesity. |
| To their credit, CPG companies have awakened to the risks of an overextended brand portfolio and begun to cut the fat with a vengeance. |
| Unfortunately, brand-portfolio liposuction can be high-risk surgery. CPG companies must walk a fine line. They must rid themselves of second- and third-tier brands that consume resources, while receiving little space on store shelves, without losing the strong portfolios and geographic breadth that allow them to be influential, valued partners of major retailers. |
| CPG companies slimming down their own brand portfolios can follow three basic precepts to avoid similar mistakes: exploit advantaged capabilities; pursue strategic coherence; and enhance economic currency. |
| Of course, conclude the authors, one round of portfolio contraction is not enough: cutting portfolio fat and building brand muscle will take ongoing and disciplined effort. |
| How to Slim Down a Brand Portfolio By Nikhil Bahadur, Edward Landry and Steven Treppo strategy+business, Autumn 2006 |
| Read the article at www.strategy-business.com |
| WHO BOUGHT WHAT October 2006 |
| Top online buys |
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| Source: ebay India (www.eBay.in) |
| BOOKWORM 10 business bestsellers |
| The World Is Flat Author: Thomas L Friedman Publisher: Penguin Books Price: Rs 495 ISBN: 0141022728 |
| Execution Authors: Larry Bossidy and Ram Charan Publisher: Random House Price: Rs 650 ISBN: 0712625984 |
| Our Iceberg is Melting Authors: John Kotter and Holger Rathgeber Price: Rs 195 Publisher: Macmillan ISBN: 0230014208 |
| The Penguin CNBC-TV 18 Business Year Book Author: Derek O' Brien Price: Rs 395 Publisher: Penguin Books ISBN: 0143099620 |
| Creating Success Series Price: Rs 150 each Publisher: Kogan Page India |
| Direct From Dell Author: Michael Dell Publisher: HarperCollins Publishers Price: Rs 250 ISBN: 1861975570 |
| The Leadership Genius of Alfred P Sloan Author: Allyn Freeman Price: Rs 1,498 Publisher: Tata McGraw-Hill ISBN: 0071457968 |
| How To Prepare A Business Plan Author: Edward Blackwell Price: Rs 275 Publisher: Kogan Page ISBN: 0749443138 |
| Building a Better Future Author: Nandita Sengupta Publisher: Roli Books |
| Every Business Is A Growth Business Author: Ram Charan and Noel M Tichy Price: Rs 490 Publisher: Random House ISBN: 0812933052 List provided by Oxford Bookstore |
Strategic tools for the practising manager
KIT
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First Published: Nov 14 2006 | 12:00 AM IST
