Sep 2, 2016 - ITC's Sanjiv Puri sees maximum potential in consumer goods business

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Sree Vijaykumar
Sree Vijaykumar
From the Editor's Desk
One of the most striking things about the Camorra (Italy's foremost crime syndicate) is how good they are at business. The group runs much of Europe's drug trade, including the continent's largest open-air narcotics market in Secondigliano, in the north-east of Naples. The syndicate appears to be organised like a typical corporation, with descending levels of power. There is a top tier of senior managers who determine strategy and allocate resources; a second tier of middle managers who purchase and process the product; a third level of sales chiefs who co-ordinate distribution; and a fourth grade of street salesmen who deliver the product directly to customers. The group employs all the usual supply-chain-management methods. Its leaders source drugs from around the world (cocaine from Latin America, heroin from Afghanistan and hashish from north Africa) and make sure that alternatives are in place in case of disruption. Paolo Di Lauro, the former head of one of the most powerful clans, is arguably one of the most innovative businesspersons Italy has produced in recent years (since 2005 he has been held in solitary confinement in a maximum-security prison). As well as co-ordinating the drug trade with Colombia, he designed the group's successful franchise system, in which it treats distributors like franchisees who are responsible for their own turf rather than as mere employees. That gives them an incentive to recruit more people as well as to shift more product. They take care of the relatives of workers who die on the job. Gang members known in their role as the "submarine" deliver money and groceries to the bereaved families on Fridays. The group's efforts at corporate social responsibility (CSR) pay off. Local people invariably take the gangsters' side during police raids, forming human barricades, pelting law enforcers with rubbish and setting fire to their cars. More here

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