July 2012

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.

 

Peter Drucker Leadership & Management Quotes~ Pictures

Peter Drucker ,Leadership , Management Quotes, Pictures, MBA Quotes, Success Quotes, Financial Management

Peter Drucker ~ Success Advices
– The purpose of business is to create a customer.
– Efficiency is doing things right; effectiveness is going the right things.
– A manager is responsible for the application and performance of knowledge.
– Knowledge has tobe improved, challenged, and increased constantly, or it vanishes.
– The most important thing in communication is hearing what isn’t said.
– Follow effective action with quiet reflection. From the quiet reflection will come even more effective action.

~ Leadership Quotes~

June 2012

How advertising sells us a tradition

Diamonds, Advertising, Marketing, Branding, Management, Leadership, Pictures, Quotes, Positioning, Articles,Nicky Oppenheimer, De Beers chairman, Prior to 20th century, engagement rings were strictly luxury items, rarely contained diamonds. The industry nosedived in 1870s after massive diamond deposits discovery in South Africa. 
 
But in 1939, the De Beers diamond company changed all of that by hiring N.W. Ayer & Son. It Introduced diamond engagement ring and quietly spread the trend through fashion magazines. 
 
In 1948, “A Diamond is Forever” campaign was launched. By sentimentalizing the gems, De Beers ensured that people wouldn’t resell them. 
 
The company vigorously promoted the concept of surprise proposals “Will You Marry Me” as a tradition  thus shifting the purchasing power to men… Voila!!!!
 
This is what Nicky Oppenheimer, De Beers chairman, had to say about Diamonds
“Diamonds are intrinsically worthless, except for the deep psychological need they fill.”
Nicky Oppenheimer, De Beers chairman, 1999
It’s all in the mind…. Nah!!!!! Karma….Advertising…. Branding & Creating Traditions… Amazing.