January 2016

Why every aspect of business is about to change ? ~ Article from Fortune

Investment Planning, Identifying multibaggers, Stocks , INvesting for 2016 Ideas

What better way to start new year than analyzing the past ? A Brilliant Summary of changes that is going to hit us one way or other sourced from www.fortune.com

Why every aspect of your business is about to change

Geoff Colvin

Imagine an economy without friction-a new world in which labor, information, and money move easily, cheaply, and almost instantly. Psst-it’s here. Is your company ready?

Cars bursting into flames are never a good thing. So when a Tesla Model S ran over a metal object in Kent, Wash., in October 2013 and burst into flames, owners, potential customers, investors, and company executives got worried. When the same thing happened a few weeks later in Smyrna, Tenn., federal regulators opened an investigation. We all know what happens next: a massive recall, costly repairs at dealerships nationwide, and a painful financial hit to the carmaker. Yet none of that occurred. The problem was that the Model S could lower its chassis at highway speed to be more aerodynamic, and if debris hit the car’s battery pack in just the wrong way, it could catch fire. So Tesla  beamed a software update to the affected cars, raising ground clearance at highway speed by one inch. The problem went away. Just four months after opening their investigation, the regulators closed it.

Using software and the mobile-phone network, Tesla avoided any need for a recall. It doesn’t have any dealerships; customers can configure and order a car online, and they can test-drive cars at company-owned showrooms. Tesla’s advanced electric technology is simpler than gas or diesel technology, so cars can be built with fewer employees and less capital. Combine those factors and here’s what happens: General Motors  creates about $1.85 of market value per dollar of physical assets, while Tesla creates about $11. GM creates $240,000 of market value per employee, while Tesla creates $2.9 million. You don’t get differences like that just by being more efficient. Tesla, though in the same business as GM, is a fundamentally different idea

 

GM is changing, but for now it’s still a 20th-century corporation. Tesla is a 21st-century corporation, built for sweeping new realities that change the rules of success. The big theme is the arrival of the long-heralded friction-free economy, a new world in which labor, information, and money move easily, cheaply, and almost instantly. Companies are forming starkly new, more fluid relationships with customers, workers, and owners; are rethinking the role of capital (as traditionally defined), finding they can thrive while owning less and less of it; are creating value in new ways as they reinvent R&D and marketing; and are measuring their performance by new metrics because traditional gauges no longer capture what counts. (more…)

July 2012

The Managerial ~ Leadership Grid ~ What type of manager/leader are you?

Peter Drucker Quotes, Pictures, Inspirational, Leadership, Management, MBA QuotesThe style of management in changing situations is influenced by various factors like organization’s culture, value system, personal history of the manager or chance or opportunity.

The style of the manager, nevertheless, impacts the performance of various stakeholders associated with the organization including the manager himself. 

What management style do you belong to?  Are you driven by results, Are you autocratic or a people man, driven by relationships.. 

The leadership ~ management grid (Source Blake RR & McCanse, A. A, 1991 ~ Leadership Dilemmas ~ Grid Solutions) classifies the leadership styles into 5 distinct types.

(1) Impoverished Management ~ Very little concern for productivity or people
(2) Country Club Management ~ Very great concern for people but very little for productivity
(3) Authority – Compliance Management ~ Great concern for productivity & very less concern for people
(4) Middle of the Road Management ~ Compromising ~ Medium concern for both productivity and people
(5)  Team Management ~ High concern for both people and productivity ~ Considered to be the Ideal Style

Management, Leadership Grid, MBA, Successful manager, Team Management, Leadership Styles,

What category do you fit in? It’s Worth a look……

 

What is Investment Banking~And why is it HOT…..

Investment Banking,Mergers and Acquisition, Raise Capital, Issues, IPO, Venture Capital , Private Equity,

The other day, a doctor was asking me about investment banking and why is it so hot. He was rather perplexed about the sky-high digit salary figures doled out to MBA’s by top notch financial MNC’s. And so..I thought of penning down my thoughts and discussion with him for the benefit of those who would like to know the reasons for the lucrative remuneration of the blue-eyed I-Bankers..

Investment Banking are involved primarily in 2 main businesses : a) Mergers and Acquisitions and b) Merchant Banking

The MnA team advises companies on various aspects when the companies decide to expand and buy another company. The various aspects involved are strategic analysis of the deal, Screening, Due Diligence, Valuation, Structuring of the deal, Negotiation, various approvals, regulatory compliance etc. In essence the MnA team facilitates the process by bringing in expertise. The I-Bank earns a fee which is typically a percentage of the deal. So for eg: In the I-Gate – Patni deal which was about $1Billion, a percentage of the deal amount goes to the I-Bank…

Now here is the sweet part. Typically the team size is small and the bonuses earned are spread in this small team which makes the profile of an I-Banker extremely lucrative and ‘Hot’ ~ Since the team size is small, the hiring is small and hence getting into this profile is low.

The other area is Merchant Banking, which involves raising capital for the businesses. The Banker’s job is to figure out the best way to raise money, keeping into consideration market conditions, duration of requirement, urgency etc. For Eg: IPO or Initial Public Offering is a type of Issue Management which an I Banker would get involved

I Bankers are one of the most sought after professionals and their rewards multiply once they develop a reputation in the circle for their expertise ~ which makes them a HOT property.