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Lets consider the actions two small airlines Paramount and SpiceJet to see if there are any moral, ethical and management lessons that Vijay Mallya can learn from them.

I had ealier posted an article wherein I had discussed the penchant of company executives to be the number one in their market. Maybe they have become convinced of the idea that the only way to make money is become number one in one’s market from Jack Welsh of GE or maybe they have read the book on PIMS database which suggests that high profitability is linked with high market share in the served markets. In another article, I have also made comments of executive’s obsession to grow fast by whatever means so that they can either become number one or become large enough to reap economies of scale.

I have never been able to understand people who put undue pressure on their kids to come first in class. Only one out of the many contestants or participants or students will come first or become a champion. Everybody cannot become a champion

I have been reading about the derivative transactions that a number of companies entered into with banks. It is clear both the companies and the banks entered into these risky speculative transactions to make quick bucks. Now when the transactions resulted in huge losses, the companies are blaming the banks and vice versa.

My interest in the stock market arose at the time of Reliance Power IPO. That was the first time that I commented on the stock market. At that time, I started reading Udayan Mukherjee’s column in HT. I liked his writing style.

I have been hearing a lot about Corporate Social Responsibility (CSR), that is, a company’s responsibility towards the society. In simple terms it means that a company must manage its role in society as a producer, employer, customer and citizen. I think most of the discussion on the subject centers around a corporations involvement in supporting social causes. Every corporation adopts some social causes and thinks that this is the best way of implementing CSR.

I think we should do away with targets. Hey, don’t shoot me. Listen to my complete story.

Anand Mahindra, vice Chairman, Mahindra & Mahindra Ltd. said in an interview, “…. The argument most people use against niche is scale.” Why are most people obsessed with scale? It follows that these people think that price is the only factor that matters and you can only bring down costs by increasing volume to achieve economies of scale. Everybody seems to working towards increasing scale. They seem to be saying that niche players cannot exist.

Recently, Prime Minister manmohan Singh said that “the economic reforms of 1991 unleashed a new era of entrepreneurial growth in India.” The subtitle of Mint’s article “India’s entrepreneurs have helped make the country what it is today” says it all. The article also suggests that the contribution of India’s entrepreneur has been ignored in making the country what it is today. The article also draws a parallel with the American economy and quotes a survey which found that during the period 1980 to 2001, firms less than 5 years old contributed to the net growth in employment whereas established firms lost jobs.

Everytime you read about a successful entrepreneur, it turns out that the man had a vision to be where he turned out to be. I think thats so untrue. Did Dhirubhai Ambani think when he started out that he would become what he became. I doubt it. Did Sunil Mittal ever even dream that his company would be valued at amost Rs. 100,000 crores? I doubt it. You ask management gurus and they will credit all the success to the vision of the entrepreneur. Well, what about the unsuccessful entrepreneurs? Didn’t they have a vision?