KIT: The institutional furnishing market in India

STRATEGIC TOOLS FOR THE PRACTISING MANAGER

The institutional furnishing market is estimated to be Rs 530 crore.

It is growing at 14 per cent a year (CAGR) and is expected to reach Rs 1,000 crore by 2012.

The institutional furnishing market is divided into hotels, hospitals, railways and others.

Hotels contribute to 64 per cent of the institutional furnishing market. The segment, estimated to be Rs 340 crore, is expected to grow to Rs 680 crore by 2012.

Hospitals contribute to 15 per cent of the institutional furnishing market. Valued at Rs 80 crore, this segment is expected to grow to Rs 150 crore by 2012.

Railways contribute to 8 per cent of the institutional furnishing market. This segment is expected to grow from Rs 45 crore to Rs 80 crore by 2012.

NUGGETS
Selections from management journals

Managing the tension between performance and people is at the heart of the CEO's job. But CEOs under fierce pressure from capital markets often focus solely on the shareholder, which can lead to employee disenchantment.

Others put so much stock in their firms' heritage that they don't notice as their organisations slide into complacency. Some leaders, though, manage to avoid those traps and create high-commitment, high-performance (HCHP) companies.

The authors' in-depth research of HCHP CEOs reveals several shared traits: These CEOs earn the trust of their organisations through their openness to the unvarnished truth. They are deeply engaged with their people, and their exchanges are direct and personal.

They mobilise employees around a focused agenda, concentrating on only one or two initiatives. And they work to build collective leadership capabilities.

HCHP CEOs approach finding a firm's moral and strategic centre in a competitive market as a calling, not an engineering problem. They drive their firms to be strongly market focused while at the same time reinforcing their firms' core values.

They are committed to short-term performance while also investing in long-term leadership and organisational capabilities. By refusing to compromise on any of these terms, they build great companies.

The uncompromising leader
By Russell A Eisenstat, Michael Beer, Nathaniel Foote, Tobias Fredberg and Flemming Norrgren
Harvard Business Review
Subscribe to this article at www.hbr.com

Investors and pharmaceutical industry leaders were astonished by the June 11 announcement that Japanese firm Daiichi Sankyo would buy the Singh family's 34.8 per cent stake in Ranbaxy, India's largest pharmaceutical company, plus additional shares to gain control.

Ranbaxy CEO Malvinder Mohan Singh is to stay on as CEO and chairman, but some wondered if he had "sold the family silver." Some experts see value for both companies, but will Singh really remain in charge, and does the sale signal that something is brewing in the pharmaceutical industry?

The Ranbaxy-Daiichi deal: Good medicine, or a harbinger of future ills?
India Knowledge@Wharton
June 27 - July 10
Read this article at http://knowledge.wharton.upenn.edu/india/

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