The Hindu Business Line : Bosses know to grow business when golfing and gossiping

STORY so far: The last quarter of the financial year has begun and companies come under pressure to achieve results. Why should there be a compulsion to show the numbers that people want to see, I wonder, because such a focus leads to shortsightedness.

The usual meeting, when the boss greets the employees for the New Year, is a disappointment for me because his speech stressed the usual values such as giving the best, quality and so on. It is only later that I understand that he was anchoring his staff in the process and getting them feel the presence of a substratum in the company. During the week, I attend a presentation on ERP and am put off by the unprofessional practices of those engaged in selling software.

Episode 59

It came as a surprise to me one afternoon, when opposite the Park hotel, while waiting for the signal to change, I could notice that there was some change in the landscape. After moments of scanning through stored images in the brain for archived memory, I realised that a lifestyle shop had existed there not long ago.

When it had launched, the ad campaign was impressive and its displays and boards showed that it was a cut above the rest. Even as we hear words such as recovery, growth, upturn, revival and so on in our daily news, of late, why do such things happen, I asked myself.

Only the previous evening, I had been to a new eatery in the neighbourhood and found myself to be the only customer at prime time. The manager there was too courteous to me when I asked him to show the roof garden that offered a good view of the ancient temple and tank. He explained to me how they had a water treatment facility installed at great expense.

"Who runs this?" I asked him. The answer he gave me was strange: The owners were in chemical business in a mofussil place, did civil construction for a telecom company and now diversifying into food chain. The staff who served in the restaurant seemed not to belong to an eating joint, making me guess if the chemical company had offloaded some of its excess staff from the factory onto a new venture like this.

Quality of food was okay, but the place was making losses ever since it had started about four months ago. The manager was telling me about an alternative location they were planning to move into, but I wondered if there was any purpose in diversifying recklessly.

*********

When I entered the boss's cabin that evening to finalise the agenda for the next Board meeting, I found that he had before him a clipping of Infosys takeover of Expert Information, Australia. There were also other stories of acquisition.

Gupta was studying a spiral-bound report, which I presumed must be from some consulting agency. "Swati," said the boss, "what do you think we should take over?" I was too weak to think anything positively, especially after seeing a string of business failures the previous day. So, I blurted out, "Sir, is it necessary?" He seemed disappointed that I couldn't see the need. "Companies have to grow if they have to survive," he said. "They never reach a peak and stay there, doing nothing, because that would mean decay." I couldn't agree: "But, sir, a big company such as ours has no threats. Are we not happy the way we are, with the big market share at our command, popular products and we all live peacefully without any tension." Gupta smiled at me, and resumed reading the report. Boss explained: "Swati, what you say is too idealistic. I agree we are a key player in our segment, but things can change overnight. A competitor may bring out a revolutionary product and we are just out of the game. Solution lies not in engaging in industrial espionage to find out what our rivals have up their sleeve, but in ever striving for improvements and developments."

I reasoned, "Okay, but why acquisitions? We would then have new problems. Employees of the company we take over may have to be integrated with our people and the cultures may never blend. Their customer values might be different from ours. More important, the market may look at the move as a derailment."

Boss made a pause before replying, perhaps to ensure that I had finished my outpouring. "Swati, all the points you make are all true. Which is why we engage in what is called a screening process to identify the potential target. No different from the matchmaking exercise that marriage brokers normally do. I have given a report from a leading consultant giving a list of possible companies that could be ours. Read it leisurely before you join us at the golf course tomorrow morning."

*********

5 a.m. I am up. And by 6 I was at the portico of the club office that fronted the vast golf course behind. Gupta was waiting for me. "Hi, Swati, you are late by a few minutes," he said. "Boss and Zakhir are already out there." Gupta arranged to hire from the club what I needed for the outdoor venture for the morning. "This is called a bat?" I asked him, swinging the long stick like Sachin. "No," he said in a hush. "It's the club! Not bat. If you look up the golf terms, it would explain that club is the implement used in golf to strike the ball, and that it consists of a shaft, grip and a clubhead of wood or metal." I said,

"Ah, I know, we hit the shuttle into the pit." Gupta slapped his forehead, and an attendant turned to ensure there were no mosquitoes around. "Swati, the ball is the round object which we attempt to hit into the hole. And a hole is a 4 ½" round receptacle in the green, at least 4" deep.

It also refers to one of the nine or eighteen areas between the tee and the green." I said, "Green tea? Not now, Gupta, later." He nodded helplessly, "Okay, later." I decided that I should study all about golf and go on to participate in a tournament. "If you are interested," Gupta said, as we were walking to what seemed to me nowhere, "I can get you a membership on company account. We can even sponsor you for events."

*********

But we were there for a different purpose. Boss was discussing not golf alone with the consultant, we could guess, looking at the two working a stroke, amidst animated gesticulations. "Is he teaching Zakhir how to grip the racquet, er... club?"

I asked. Gupta shook his head, "No, he is trying to narrow down on his prey." I tried a shot in the meanwhile and the ball flew into a bush, and when we successfully retrieved it, I asked Gupta, "How do we identify a target?" He queried, "Target is for playing darts." I was angry, "I mean, target for take over, understand?"

(To be continued)

Swati_CA@hotmail.com

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