myra business school, mysore business education in emerging markets - prof rajiv sinha
DESCRIPTION
The key point is to understand the aspirations of the customers. With nearly 1250 approved business schools, 1600 accredited by AICTE, 1,250,000 full time MBAs and 1,000,000 online MBAs, the factors in the presentation will tell you what can drive results in the management education sector.TRANSCRIPT
Business Education in Emerging Market Economies
Rajiv K. SinhaLonnie Ostrom Chair in Business
W.P. Carey School of BusinessArizona State University
Business Education in IndiaBusiness Education in India THE HYPE THE HYPE
1250 approved business 1250 approved business schoolsschools
1600 accredited by AICTE1600 accredited by AICTE
1,250,000 full time MBAs1,250,000 full time MBAs
1,000,000 online MBAs1,000,000 online MBAs
13 IIMs13 IIMs
____________________________________________________________
Business EducationBusiness Education THE CRISIS THE CRISIS
QUALITY OF GRADUATESQUALITY OF GRADUATES____________________________________________________________
FACULTY TRAININGFACULTY TRAINING
RESEARCHRESEARCH
CURRICULUMCURRICULUM
FACULTY DEVELOPMENTFACULTY DEVELOPMENT
EXECUTIVE EDUCATIONEXECUTIVE EDUCATION
____________________________________________________________
IIM-SHILLONG, INDORE IIM-SHILLONG, INDORE ETCETC..
Value of Business EducationValue of Business EducationValue For Whom?Value For Whom?
StudentsStudents
AlumniAlumni
Employers Employers
EducatorsEducators
MediaMedia
____________________________________________________________
SocietySociety
Re-think FundamentalsRe-think Fundamentals Shareholder valueShareholder value Profit and loss accountProfit and loss account People accountPeople account Planet accountPlanet account Beyond lip serviceBeyond lip service
How do we achieve this?How do we achieve this?
““BUSINESS HAS TWO BASIC FUNCTIONS: BUSINESS HAS TWO BASIC FUNCTIONS: MARKETING AND INNOVATION. MARKETING AND INNOVATION.
MARKETING AND INNOVATION PRODUCE MARKETING AND INNOVATION PRODUCE RESULTS. ALL THE REST ARE COSTS.” RESULTS. ALL THE REST ARE COSTS.”
(PETER (PETER DRUCKER)DRUCKER)
RE-DEFINE BUSINESSESRE-DEFINE BUSINESSES
Greatest potential in Biodiversity and Greatest potential in Biodiversity and
Ecosystem services: water,Ecosystem services: water, agriculture, forest agriculture, forest
products…..products…..
2050 PLAN : $970 BILLION IN US ALONE2050 PLAN : $970 BILLION IN US ALONE
Sustainable products and services that Sustainable products and services that
provide provide socialsocial and and economic economic benefits over benefits over
their their entire commercial cycleentire commercial cycle, from the , from the
extraction of raw materials to final extraction of raw materials to final
disposition, while preserving public health, disposition, while preserving public health,
societal welfare and the environment.societal welfare and the environment.
FUTURE OF INNOVATION AND FUTURE OF INNOVATION AND MARKETINGMARKETING
Big Issues : GeneralBig Issues : General
What constitutes What constitutes social value HEREsocial value HERE? ?
VIRGINIA SLIMS: YOU’VE COME A LONG WAY VIRGINIA SLIMS: YOU’VE COME A LONG WAY
BABY? BABY? Better routes to Emancipation: TARUBetter routes to Emancipation: TARU What is the What is the role of consumersrole of consumers in driving socially in driving socially
responsible behavior?)responsible behavior?) How can they be motivated to care about the How can they be motivated to care about the
social and environmental characteristicssocial and environmental characteristics of the of the
products/services they buy and use? products/services they buy and use? How do we get managers to incorporate this in How do we get managers to incorporate this in
their vision for the products and services they their vision for the products and services they
market?market?
Big Issues: SpecificBig Issues: Specific
How do we change management How do we change management
education to reflect this?education to reflect this?
New tools, different paradigmsNew tools, different paradigms
Bihar AIDS projectBihar AIDS project
CemexCemex
Global ResolveGlobal Resolve
Re-defining Product Re-defining Product MarketsMarkets
The results are:
1.New products that improve lives for
communities at the base of the pyramid
2.New business ventures to build village
economies
3.Life-changing educational experiences for
students
GlobalResolve builds partnerships to create technological and economic solutions for villages in the developing world.
GlobalResolveGlobalResolve
The GlobalResolve The GlobalResolve MethodMethod
The GlobalResolve The GlobalResolve MethodMethodThe GlobalResolve The GlobalResolve MethodMethod
The GlobalResolve The GlobalResolve MethodMethodThe GlobalResolve The GlobalResolve MethodMethod
The GlobalResolve The GlobalResolve MethodMethodThe GlobalResolve The GlobalResolve MethodMethod
The GlobalResolve The GlobalResolve MethodMethodThe GlobalResolve The GlobalResolve MethodMethod
The GlobalResolve The GlobalResolve MethodMethodThe GlobalResolve The GlobalResolve MethodMethod
The GlobalResolve The GlobalResolve MethodMethodThe GlobalResolve The GlobalResolve MethodMethod
The Problem:How can a supply chain model help make these ventures successful?
The Problem:How can a supply chain model help make these ventures successful?
Case Study
Cooking Fuel Pollution
Smokeless Cooking Fuel: Gelled Ethanol
Case Study
Cooking Fuel Pollution
Smokeless Cooking Fuel: Gelled Ethanol
And a Matching Gel Fuel Stove
Green Accounting for Indian States and Union Territories Project ( “GAISP” )Green Accounting for Indian States and Union Territories Project ( “GAISP” )
Business Education must address poverty alleviationBusiness Education must address poverty alleviation
Eco-Systems, Markets and Poverty
Breaking the Vicious Cycle : A Case Study from India
The ‘Vicious Cycle’ of Poverty and The ‘Vicious Cycle’ of Poverty and Environmental DegradationEnvironmental Degradation
Low assets → low income → no surpluses
→ consuming natural capital in which they
are stake-holders → even lower assets
The Backdrop : The Backdrop : lack of markets in public goods / externalities lack of markets in public goods / externalities pricing … eco-system conservation benefits all, but hits the resident pricing … eco-system conservation benefits all, but hits the resident poor with disproportional opportunity costs of conservation ..poor with disproportional opportunity costs of conservation ..
The Challenge : The Challenge : finding alternative, sustainable, local, income finding alternative, sustainable, local, income models such that residents can earn a return on conservation . models such that residents can earn a return on conservation .
The Goal : The Goal : converting the accidental custodianship of forest-converting the accidental custodianship of forest-dwelling poor into purposeful stewardship … the ‘win-win’ solutiondwelling poor into purposeful stewardship … the ‘win-win’ solution
A Case Study from IndiaA Case Study from India
Nilgiris Biosphere Reserve
in the Western Ghats global biodiversity hot-spot , and home to the ancient Toda tribe and later Badaga tribals …
The Vicious Cycle : An Example from the The Vicious Cycle : An Example from the Nilgiri Biosphere ReserveNilgiri Biosphere Reserve
‘Shola’ (Reserve Forest Land)
Tea Estate ( Revenue Land )
land ‘patta’ allocated by local corporator from ‘Revenue Land’
clear felling by Tribals
lease to local farmer (INR 4,000- p.a. per acre)
cash crops or grain
seasonal employment to Tribals (INR 50 p.d.)
land goes fallow…
next ‘patta’ allocated ..
Tribal Family earns ~ INR 25 K p.ha.… & Natural Capital Lost = ?
The Capital Cost of this ‘Vicious Cycle’ is StaggeringThe Capital Cost of this ‘Vicious Cycle’ is Staggering
Values per Hectare Values per Hectare (INR)(INR)
Tamil Tamil NaduNadu
India India (Average)(Average)
Carbon Storage * Carbon Storage * 36,837 35,882
Non-Timber F.P. *Non-Timber F.P. * 5,950 10,763
Fodder *Fodder * 7,079 4,736
Bio-prospecting ¬Bio-prospecting ¬ 10,267 17,085
Eco-Tourism ¬Eco-Tourism ¬ 962,266 382,941
Water RechargeWater Recharge (t.b.c.) (t.b.c.)
Flood Damage Flood Damage Prevention Prevention
(t.b.c.) (t.b.c.)
Soil Erosion Soil Erosion Avoidance ¬Avoidance ¬
64,671 63,832
TOTAL (INR) TOTAL (INR) > 1 Mio > 1 Mio
Sources : * from GAISP, Monograph 1, Jan 05¬ from GAISP, work in progress
‘Shola’remnant
‘Shola’ cleared last year
‘Shola’ cleared two years ago
Lessons from PEP …. Seeing the Poor as Part of the SolutionLessons from PEP …. Seeing the Poor as Part of the Solution
“PEP’s work since 2001 has identified three broad lessons :
1 The environmental quality of growth matters to poor people. The poor depend more immediately on clean water, fertile soils, etc, than other groups. Ignoring the environmental sustainability of growth – even if it reaps short-run gains – can undermine growth itself and its effectiveness in reducing poverty.
2 Environmental management cannot be treated separately from other development concerns. Improving environmental management in ways that benefit poor people requires policy and institutional changes that cut across sectors. These lie mostly outside the control of environmental institutions.
3 Poor people must be seen as part of the solution rather than part of the problem. If environmental management is to contribute to sustainable growth and poverty reduction, it should reflect the priorities of the poor.”
"Certain environmental services, e.g. watershed protection, management of landscape beauty, and carbon sequestration, can be supplied competitively by poor groups and rural communities – given the labour- and land-intensive nature of such services."
Sustainable Income Models for Poverty Alleviation in Sustainable Income Models for Poverty Alleviation in Nilgiri Biosphere Reserve Nilgiri Biosphere Reserve
degraded local land
employable local labour
access to capital : (a) Govt of India (carved out of
“EGS” scheme INR 240 Bio, 100 days @ Min Wage)
(b) Institutional & Philanthropic (c) Microfinance
Local income models …Local income models …1.1. Eco-restorationEco-restoration2.2. Eco-tourismEco-tourism… … earn a tribal family 5%-8% on earn a tribal family 5%-8% on
conserved natural capitalconserved natural capital
Eco-Restoration Eco-Restoration isis a viable income model a viable income model
Rental of land @ INR 5,000 per acre OR… purchase @ INR 100 K per acre Removal of unharvestable Tea @ INR 10,000 per acre OR… De-weeding ( + +) Pitting, Planting, Watering, Weeding @ INR 65 per day (Tea Garden Rates ) Resident watchman wages @ INR 50 - 75 per day ( 1 x through the year ) Nursery Maintenance & Sapling preparation ( 1 x through the year) Tribal harvesting of medicinal plants & herbs, floriculture, and nursery sales 1 Hectare afforested with endemics @ low cost , and 3 tribals employed
Cultural / Eco-Tourism is a another sustainable Cultural / Eco-Tourism is a another sustainable income opportunity ..income opportunity ..
The Todas have a unique & complex ancient culture, a separate pantheon, an evolved mythology … a fascinating anthropological subject
Their unique, eco-friendly huts are a tourist experience
Income ModelIncome Model : : Five Huts “for tourists” maintained by one Five Huts “for tourists” maintained by one TodaToda village village
“ “Fair Trade” share of Tourist booking Incomes to the Fair Trade” share of Tourist booking Incomes to the TodaToda Tribals Tribals
The Key Point….The Key Point….
The Key Point….The Key Point….
… … is to understand is to understand their aspirations !their aspirations !