Business Information

10 Money Lessons from Billionaires

2012-08-09T04:18:00.000-07:00

Billionaires have changed the way our world works. They've altered the way we communicate, travel, and live. And along the way, they have made incredible amounts of money for their efforts.

Learning from the 10 billionaires below is not only a good idea if you want to boost your bank account, but also if you want your work to make a difference.

With that in mind, here are 10 lessons from billionaires on earning money, succeeding in business, and finding happiness in life.

1. "You become what you believe. You are where you are today in your life based on everything you have believed." --Oprah Winfrey, net worth of $2.7 billion First and foremost, you have to believe that greatness is possible. Many of the world's billionaires have shifted the way our world works, because they believed that they were capable of doing something that was previously impossible. Change is possible. Greatness is possible. But you can't do anything unless you first believe in yourself.

2. "What we say here every day is that our success is really based on our members' success, our community's success." --Pierre Omidyar, net worth of $6.7 billion Your success is directly tied to how much you do for others. It's not what you know. It's not who you know. It's what you do for who you know. Success follows generosity.

3. "The typical human life seems to be quite unplanned, undirected, unlived, and unsavored. Only those who consciously think about the adventure of living as a matter of making choices among options, which they have found for themselves, ever establish real self-control and live their lives fully." --Karl Albrecht, net worth of $25.4 billion Everything you do (or choose not to do) is a choice. Most of us think that life happens to us, but in reality life is something that we choose either by actively pursuing options and creating our own circumstances, or by blocking opportunities and limiting our beliefs of what is possible. You can choose the type of life you want to live.

4. "I think that our fundamental belief is that for us growth is a way of life and we have to grow at all times." --Mukesh Ambani, net worth of $22.3 billion Success is not an event--it's a process. Billionaires embody that process better than most of us. They are on a constant quest to improve, enhance, and outperform themselves. It's a constant, internal drive to become a better person.

5. "Getting the job done has been the basis for the success my company has achieved." --Michael Bloomberg, net worth of $22 billion Billionaires have grit and perseverance. Top performers work hard at hard things. And that means that successful people do the things that most people don't want to do, and that's why they get the job done.

6. "If I'm going to do something, I do it spectacularly or I don't do it at all." --Prince Alwaleed Bin Talal Alsaud, net worth of $18 billion Developing a world-class skill means that you have the capability to ignore everything else. You have to be able to focus on doing an incredible job or on ignoring it completely. Greatness doesn't come from simply "putting the time in" ... you have to put the time in with effort, energy, and resolve.

7. "It's through curiosity and looking at opportunities in new ways that we've always mapped our path at Dell. There's always an opportunity to make a difference." --Michael Dell, net worth of $15.9 billion Take a look at any market-leading company. Are they compromising on their product in one way or another? That's an opportunity for disruption, growth, and change. Any unmet need, any annoying problem, any half-baked solution offers a chance to change things.

8. "The role of business is to produce goods and services that make people's lives better." --Charles Koch, net worth of $25 billion If your only goal is to become rich, then you're going to have trouble meeting your goal. However, if your focus is on making people's lives better, then you'll find that success comes much more quickly.

9. "No person will make a great business who wants to do it all himself or get all the credit." --Andrew Carnegie, net worth of $298.3 billion (in 2007 dollars) Success unshared is failure. Our connections with other people are what give our work meaning. The things we do will only matter if they are shared with others.

10. "The ultimate definition of success is: you could lose everything that you have and truly be okay with it. Your happiness isn't based on external factors." --Tony Hsieh, net worth of $840 million So often, we push happiness out on the horizon of life. "Once I get this job, I'll be happy." Or, "If only I landed that promotion, then everything would be good." Of course, life doesn't work that way, and there is always another goal once we reach our previous idea of happiness. Money is important, but your life should never be built around it. Happiness comes before success, not after it.

Biggest beer companies in the world

2012-06-20T09:26:00.000-07:00

Beer is the world's most widely consumed alcoholic beverage. It is the third-most popular drink overall, after water and tea. It is thought by some to be the oldest fermented beverage.

Let's take a look at some of the biggest beer companies in the world.

Bud Light

Brand value: $8.368 billion
Global rank: 1

Budweiser

Brand value: $7.51 billion
Global rank: 2

Heineken

Brand value: $6.058 billion
Global rank: 3

Corona

Brand value: $5.114 billion
Global rank: 4

Skol

Brand value: $4.69 billion
Global rank: 5

Stella Artois

Brand value: $4.529 billion
Global rank: 6

Guinness

Brand value: $4.04 billion
Global rank: 7

Brahma

Brand value: $2.35 billion
Global rank: 8

Miller Lite

Brand value: $2.31 billion
Global rank: 9

Beck's

Brand value: $1.55 billion
Global rank: 10

Saving for the rainy day? Top 5 savings plans

2012-06-14T03:15:00.003-07:00

Interest rates are rising. It is good news for some - those who look at making deposits; bad news for some -- those who are looking at taking loans.

Savings, however, have to be channelled carefully so that the maximum can be gained from the deposits. Here are the top five savings instruments in a rising interest rate regime.

In today's scenario the top 5 savings instruments are:

1. Debt Mutual Funds.

2. Mutual Fund Monthly Income Plan -- Growth Option.

3. Company Deposits.

4. Post Office Recurring Deposit.

5. Post Office Monthly Income Scheme.

1. Debt mutual funds

These are managed funds that invest the funds from the investors predominantly in debt and debt oriented schemes.

There are a number of advantages that these mutual funds give compared to a direct deposit. The most apparent is the fact that this is a managed fund and the returns can be better as the manager has access to more information and will leverage that compared to individual investors. There is no TDS or tax on the interest. The returns will be processed as capital gains.

Returns from this fund are expected to be good. The top five debt mutual funds have given compounded returns in the range of 10.50-14.50% in the last 3 years.

This is much better than the normal bank deposit or company deposit. The advantage is that debt mutual funds can create capital gains when the interest rates go down

2. Mutual Fund Monthly Income Plan: Growth Option

For people who have a higher risk quoitent during the short term, monthly income plan (MIP) of mutual funds is good. Here a small portion (generally not more than 20%) of the funds is invested in equity.

So the returns can be better than the normal debt mutual fund when the market is rising. The typical returns in the last three years are 12% to 14% for the top 5 funds.

However caution needs to be taken when choosing the growth option. This is due to the fact that if we start to receive the monthly payouts there may be months when the principal is used for the payout. This will drain the fund particularly when the market goes down.

Being largely a debt oriented mutual fund, the tax treatment is the same as the debt mutual fund.

3. Company deposits

Companies that offer deposit schemes to consumers tend to offer rates that are in-between bank deposit rates and bank lending rates. This is a win-win situation for the company and the person saving.

The bank has to make a profit when borrowing from the public and lending to companies. So they have an interest rate difference (spread) of about 4.5%.

In effect, the deposit holders are paid less and the borrowers are charged more. When a company has direct access to the depositor, both benefit.

The depositor gets a better rate than what the bank can offer and the company is able to borrow at a lesser rate when compared to a bank interest rate.
However, it is in the best interest of the borrower to do his research thoroughly and double check how good the credit rating of the company is before investing. On an average estimates show that one can easily get 11-12% on reputed companies' deposits for a 3 year term.
The returns will be taxed as interest and will have TDS.

4. Post Office recurring deposit

This is a five-year scheme where one invests on a monthly basis. However, there does exist an option for the fund to be closed after 3 years, which comes with a penalty of 1%.

The advantage with the postal recurring deposit over the bank recurring deposit is that the minimum monthly investment is only Rs 10 with no upper limit. In case the payment is made once is 6 months or on a yearly basis, there are discounts for that too.

The limitation is that the interest rate is fixed at 7.5% only and auto-debit to bank account is not available.

There are no tax benefits from the scheme. However Post Offices have not been deducting TDS.

5. Post Office Monthly Income Scheme

For the retired people, the Post Office Monthly Income Scheme is a good savings instrument. The interest is 8% divided on a monthly payout basis. The payout if not required can be channeled to a recurring deposit. The effective returns increases by almost 10% by doing this.

The interest can be credited to a savings account of any bank too. The account can be closed after 1 year with a 5% penalty and after 3 years without any penalty. The limitation however is that the maximum investment for any individual is only Rs 600,000.

The ranking of the above five savings schemes have been done based on their returns, the convenience factor to close and change to another savings scheme (important when the interest rate is rising) and the safety for investments.

Of all the options the debt mutual funds appear to score the highest due to their flexibility and returns. This is closely followed by the mutual fund MIPs.

Biggest silver reserves in the world

2012-06-14T03:15:00.002-07:00

World silver mine production increased to a new record of 23,800 tonnes as a result of increased production at primary silver and lead-zinc mines.

Production at the Palmarejo (primary silver) and Penasquito (lead-zinc) Mines in Mexico contributed to maintaining Mexico as the world's leading silver producer.

Production increases also took place in China and Australia - for example, at the Cannington Mine, the world's leading silver-producing mine.

Let's take a look at some of the biggest reserves of silver in the world.

Peru

Mine production (2010): 3,640 tonnes

Mine roduction (2011): 4,000 tonnes

Total reserves: 120,000 tonnes

Global rank: 1

Poland

Mine production (2010): 1,180 tonnes

Mine production (2011): 1,200 tonnes

Total reserves: 85,000 tonnes

Global rank: 2

Chile

Mine production (2010): 1,280 tonnes

Mine production (2011): 1,400 tonnes

Total reserves: 70,000 tonnes

Global rank: 3

Australia

Mine production (2010): 1,860 tonnes

Mine production (2011): 1,900 tonnes

Total reserves: 69,000 tonnes

Global rank: 4

China

Mine production (2010): 3,500 tonnes

Mine production (2011): 4,000 tonnes

Total reserves: 43,000 tonnes

Global rank: 5

Mexico

Mine production (2010): 4,410 tonnes

Mine production (2011): 4,500 tonnes

Total reserves: 37,000 tonnes

Global rank: 6

Bolivia

Mine production (2010): 1,260 tonnes
Mine production (2011): 1,350 tonnes
Total reserves: 22,000 tonnes
Global rank: 8

The United States

Mine production (2010): 1,270 tonnes
Mine production (2011): 1,160 tonnes
Total reserves: 25,000 tonnes
Global rank: 7

Russia

Mine production (2010): 1,150 tonnes

Mine production (2011): 1,400 tonnes

Total reserves: N/A

Global rank: 9

Canada

Mine production (2010): 600 tonnes
Mine production (2011): 700 tonnes
Total reserves: 7,000 tonnes
Global rank: 10

Largest Economies in the World

2012-06-13T02:37:00.000-07:00

If we compare the largest economies in measures of the gross domestic product (GDP) at purchasing power of parity (PPP), then in the first position stands United States of America and on the second position is China. But it seems that in few years China will overtake U.S.A looking at their rapid growth. Here’s the list of the world’s largest economies in 2012.

United States

United States comprises fifty states and a federal district and is known as the federal constitutional republic. It is the third largest by both land area and population and one of the world’s most ethnically diverse and multicultural nations. It has a capitalist mixed economy; it is the largest importer of goods and the third largest exporter. It is the world’s largest national economy with the estimated GDP at PPP as $14.66 trillion until 2010. The contribution of the industrial sector in the GDP is 22.1 percent, the agricultural sector in GDP is 1.1 percent and the service sector in GDP is 76.8 percent. Their population that was recorded in 2011 was 312,222,000 and the unemployment rate is 9.6 percent.

China

China is the world’s most populous country and is a single party state governed by the Communist Party of China that exercises a jurisdiction over 22 provinces, 5 autonomous regions, four directly controlled municipalities and 2 most special administrative regions. It is world’s fastest growing economy and ranks after United States in terms of nominal GDP and Purchasing Power Parity. It is also the world’s largest exporter and second largest importer of goods. In 2011 china ranked 90th by nominal GDP and 91st by GDP (PPP) in terms of per capita.

Japan

Japan is an island in East Asia and an archipelago that comprises of 6852 islands. It is also known as the “Land of the Rising Sun” and is the world’s third largest economy in terms of nominal GDP. It ranks as the fourth largest exporter and fourth largest importer. Japan maintains a modern military force in self defense and peacekeeping roles. In 2011 it was considered as the third largest national economy in the world in terms of PPP after United States and China. Japan has the longest life expectancy according to UN and WHO. It has a large industrial capacity and holds some of the most technologically advanced producers of motor vehicles, electronics, machine tools, steel etc

India

India is the seventh largest country and the second most populous democracy with over 1.2 billion people. It is the tenth largest economy by market exchange rates and third largest by PPP according to the International Monetary Fund. India is one of the fastest growing economies in the world with the average annual GDP growth rate of 5.8 percent and reaching 6.1 percent in 2011-2012. It was the world’s tenth largest importer and the 19th largest exporter in 2011. It ranks 24th in banking sector, 17th in financial market sophistication, 39th in innovation and 44th in business sophistication. Its telecommunication industry is growing faster and the automotive industry is the second fastest growing industry in the world.

Germany

Germany is a federal parliamentary republic in Europe and consists of 16 states. It is the fourth largest economy in terms of nominal GDP and fifth largest by PPP. It is also the second largest exporter and third largest importer of goods. It has high standard of living and ample of social security. Germany has a social market economy with a large capital stock, low level of corruption, high level of innovation and highly qualified labour force. The country is home of many scientists and inventors and the service sector contributes almost 71 percent of the total GDP. In 2011 the unofficial average unemployment rate was 5.7 percent.

Russia

Russia is a country situated in northern Eurasia and is a federal semi presidential republic comprising of 83 federal subjects. It has the largest reserves of mineral and energy resources and is also the largest producer of natural gas and oil in the world. It has largest forest reserves in the world and its lakes contains one quarter of the fresh water of the world. The country’s economy ranks ninth in terms of nominal GDP and sixth by PPP in the world. It became the member of World Trade Organization in 2011 and could bring a bounce of 3 percent in the economy.

United Kingdom

United Kingdom is a sovereign state located towards the north western coast of the continent of Europe and includes Great Britain, north eastern part of the island of Ireland along with the smaller islands. It is the seventh largest economy in the world in terms of nominal GDP and seventh largest economy by PPP. During the 19th and 20th century it was considered as the first industrialized country and the world’s foremost power. It remains a great power because of its leading economic, cultural, military, scientific and political influence. U.K. would be the sixth largest economy and the third largest in Europe on the basis of market exchange rates.

Brazil

Brazil is the largest country in South America and is the world’s sixth largest by nominal GDP and eighth largest by PPP. It is one of the fastest growing economies in the world. The country has received new international recognition because of economic reforms. According to the International Monetary Fund and the World Bank it is the largest economy in Latin America and world’s sixth largest economy at market exchange rates. It has a mixed economy with scarce natural resources and is predicted to become one of the five largest in the world on the basis of GDP per capita growth.

France

France is a unitary semi presidential republic in Western Europe that comprises of several territories and islands. It is one of the most developed country, the wealthiest nation in Europe and the fourth wealthiest in the world depending upon the aggregate household wealth. France is listed as the fifth largest economy in the world measured by GDP, ninth largest by PPP and Europe’s second largest by nominal GDP. It has one of the world’s longest life expectancies, high standard of living and high public education level. France ranks world’s 4th and Europe’s first in the Fortune Global 500 list as it holds 39 biggest companies of the world out of the 500.

Italy

Italy is a unitary parliamentary republic in south central Europe and is a democratic republic. It is ranked as the 24th most developed country in the world and has high quality of life index in the world. It has high GDP per capita and also very high standard of living. Italy is characterized by high per capita GDP and low unemployment rates thus making it a free market economy. It ranks eighth largest in the world and fourth largest in Europe on the basis of nominal GDP, and fifth largest in Europe and tenth largest in the world by PPP. Tourism is one of the fastest growing sectors of their economy and is considered as the fifth most visited country with the highest tourism earner in the world.

India could be 1st BRIC to lose investment grade - S&P

2012-06-13T02:36:00.000-07:00

MUMBAI (Reuters) - Standard & Poor's said on Monday that India could become the first of the BRIC economies to lose its investment-grade status, sending the rupee and stocks lower, less than two months after cutting its rating outlook for the country.

Workers walk in front of a multi-storey commercial building under construction on the outskirts of Ahmedabad May 31, 2012. REUTERS/Amit Dave

"Slowing GDP growth and political roadblocks to economic policymaking are just some of the factors pushing up the risk that India could lose its investment-grade rating," the ratings agency said in a Monday statement on a report dated June 8.
S&P said the new report, "Will India Be The First BRIC Fallen Angel?", gave further detail as to why India's investment-grade rating could be at risk. The report did not appear to represent a change in view since April.
India's sovereign rating is BBB-, the lowest investment grade rating, and in April S&P lowered its outlook on the rating for Asia's third-largest economy to negative from stable.
Indian stocks fell into negative territory after the S&P statement, while the rupee skidded to as much as 55.82 to the dollar, a near one-week low, from 55.45 earlier.
The benchmark 10-year bond yield rose 2 basis points following the statement release. Traders said the bond markets were affected lesser because offshore investors hold a small share of the market.
"While INR and bonds moved on this S&P headline, it may not have been warranted. While the report is new, the content in itself is probably not," said Kumar Rachapudi, fixed income strategist at Barclays Capital in Singapore.
"The discussion in this report has largely been covered in their previous report when S&P revised outlook in April."
The two analysts who wrote the report could not immediately be reached for comment.
India recently posted annual March quarter GDP growth of 5.3 percent, its weakest in nine years and far below expectations.
"Setbacks or reversals in India's path toward a more liberal economy could hurt its long-term growth prospects and, therefore, its credit quality," said Standard & Poor's credit analyst Joydeep Mukerji.
The so-called BRIC economies consist of Brazil, Russia, India and China. India has the lowest S&P rating of all the BRIC countries, and is the only one with a negative outlook from the rating agency, it said in the report.
"The combination of a weakening political context for further reform, along with economic deceleration, raises the risk that the government may take modest steps backward away from economic liberalization in the event of unexpected economic shocks," Mukerji said in S&P's Monday statement.
The government's inability to push through reforms is widely blamed for yawning current account and fiscal deficits. In addition to slowing growth, India is plagued by persistently high inflation.
"S&P's warning clearly highlights the challenge facing the Indian economy, which has been crippled by the complete dysfunctionality of the government machinery," said Upasna Bharadwaj, economist at ING Vysya Bank in Mumbai.

Building Trust In The Company

2012-06-12T01:54:00.000-07:00

Building Trust In The Company

Stephen Covey's ode to awesome management, 'The Seven Habits of Highly Effective People' is a must-read for the new breed of dynamic young managers.

In his book, Covey talks about the 'emotional bank account', where you would need to build a positive balance in your relationship with your colleagues, boss. Creating a positive 'emotional bank account' will help you earn the respect and admiration of your subordinates and they will willingly work twice as hard for you.

One of the easiest ways of building a positive emotional bank balance is to build an environment of trust and confidence in your team. This requires you to feel and act personally responsible for positivity at the workplace.

Mentioned below are things that will enable you to build trust in your company:-

Always tell the truth

How often we are guilty of doing otherwise! Being the boss means that your subordinates base their career decisions on what you say – so make sure that it’s the truth.

Keep promises

Being the boss, have to deal with so many people and say things which, at times,you don’t really mean. Don’t break your promises. If you say you will do someone a favor, then make sure that you do it.

Be fully attentive during a conversation

While talking to your colleagues and subordinates, make sure that you’re fully attentive during a conversation and give them enough time to have their say. While conversing with them, put their needs first. Switch off your cell phone and log from online messaging when you discuss an issue with your workers.

Always be fair to all

Become consistent with office friendships. While at office, make it clear that you treat everyone equally. If you treat some people 'fairer' than others, it will soon result in a deficit in your 'emotional bank account'.

Always follow the rules you make

There are bosses who refuse to show favoritism towards their colleagues and subordinates but allow themselves to be lenient with their own rules. If you are adverse to the idea of your subordinates taking extra coffee breaks, avoid doing the same.

Help the younger lot learn and grow

Invest money and manpower to comprehensively train freshers before they join the team full time. Also ensure that they all feel comfortable enough to not let a few initial mistakes rile them. Only when they are encouraged will they feel comfortable enough to take initiatives, and work with fearless zeal.

Discuss your problems with the person you are having it with

If you are facing work-related problems with some of your subordinates, honestly tell them how you feel. They should feel a personal vendetta against them.

Let your employees know that you trust them through and through

You know that your employees are working hard. You need to acknowledge to your employees that you are aware of this. This will only encourage them to trust the organisation.

Mukesh Ambani richest Indian on annual Forbes list

2012-06-10T19:00:00.001-07:00

Head of Reliance Industries, India's most valuable company, was placed 19th on a list headed by Mexican tycoon Carlos Slim. (Source: Forbes ‘The World’s Billionaire’s List, March 2012)

Mukesh Ambani retained the top spot among Indians on Forbes' annual list of the world's billionaires released in March this year, with a net worth of $22.3bn. (Source: Forbes ‘The World’s Billionaire’s List, March 2012)

The head of Reliance Industries, India's most valuable company, was placed 19th on a list headed by Mexican tycoon Carlos Slim (pictured). 'Mukesh Ambani is the world's richest Indian, despite losing $4.7bn in the past year,' Forbes said. (Source: Forbes ‘The World’s Billionaire’s List, March 2012)

Lakshmi Mittal (No.21) was listed as the biggest loser, with Forbes saying Mittal lost $10.4bn, falling to a net worth of $20.7bn and out of the world's top 10 for the first time since 2004. Mittal was placed 21st on the list. The drop came after shares in his company ArcelorMittal, the world's largest steelmaker, fell due to surging costs and soft demand in Europe. (Source: Forbes ‘The World’s Billionaire’s List, March 2012)

Billionaire brothers Shashi and Ravi Ruia (No.133), who control Essar Group, suffered the second largest loss this year, losing $8.8bin on the year and placed 133 on the list with a net worth of $7bn. (Source: Forbes ‘The World’s Billionaire’s List, March 2012)

Azim Premji, chairman of Wipro, was ranked 41 with a net worth of $15.9bn. Savitri Jindal, head of Jindal Steel and Power Ltd, was India's richest woman, 80th on the list with a net worth of $10.9bn. (Source: Forbes ‘The World’s Billionaire’s List, March 2012)

Sunil Mittal (No.113), Kumar Birla (No.116), Anil Ambani (No.118) and Dilip Shanghvi (No.124) were among the 48 Indians on the Forbes list. (Source: Forbes ‘The World’s Billionaire’s List, March 2012)

Carlos Slim retained his position atop the list with an estimated worth of $69bn, while his Mexican rival Ricardo Salinas Pliego enjoyed the largest increase in wealth. Fifty-eight countries were represented on the list of a record 1,226 billionaires whose average fortune was $3.7bn. (Source: Forbes ‘The World’s Billionaire’s List, March 2012)

No.1: Carlos Slim Helu & family

$69bn

Age: 72

Industry/ Company: Telecom

Country: Mexico

(Source: Forbes ‘The World’s Billionaire’s List, March 2012)

No.2: Bill Gates

$61bn

Age: 56

Industry/ Company: Microsoft

Country: United States

(Source: Forbes ‘The World’s Billionaire’s List, March 2012)

No.3: Warren Buffett

$44bn

Age: 81

Industry/ Company: Berkshire Hathaway

Country: United States

(Source: Forbes ‘The World’s Billionaire’s List, March 2012)

No.4: Bernard Arnault

$41bn

Age: 63

Industry/ Company: LVMH

Country: France

(Source: Forbes ‘The World’s Billionaire’s List, March 2012)

No.5: Amancio Ortega

$37.5bn

Age: 75

Industry/ Company: Zara

Country: Spain

(Source: Forbes ‘The World’s Billionaire’s List, March 2012)

No.6: Larry Ellison

$36bn

Age: 67

Industry/ Company: Oracle

Country: United States

(Source: Forbes ‘The World’s Billionaire’s List, March 2012)

No.7: Eike Batista

$30bn

Age: 55

Industry/ Company: mining, oil

Country: Brazil

(Source: Forbes ‘The World’s Billionaire’s List, March 2012)

No.8: Stefan Persson

$26bn

Age: 64

Industry/ Company: H&M

Country: Sweden

(Source: Forbes ‘The World’s Billionaire’s List, March 2012)

No.9: Li Ka-shing

$25.5bn

Age: 83

Industry/ Company: diversified

Country: Hong Kong

(Source: Forbes ‘The World’s Billionaire’s List, March 2012)

No.10: Karl Albrecht

$25.4bn

Age: 92

Industry/ Company: Aldi

Country: Germany

Also view: Meet Carlos Slim: the world’s richest man

(Source: Forbes ‘The World’s Billionaire’s List, March 2012)

How to Manage Work Without Authority

2012-06-10T19:00:00.000-07:00

How to Manage Work Without Authority

Didn’t you always hate your bully brother or teacher or anyone who abused power and made you do things without giving you any reasons,

because they “said so”, because you weren’t allowed to question? You hate their guts. You hate them for not respecting you enough, for treating you like their slave. You will always resent them. Intimidation works, but at what cost? It’s always better to get work done without authority. Here’s how to go about it:

Respect
Now consider the teacher who told you why you should not tease others, and how hurtful it is for them. The one who didn’t tell you to hold your ears and stand on the bench. She gave you an opportunity to better yourself and trusted you to not repeat your mistake. She said it so nicely that the next time your monkey mind started acting up, you thought of the respect and trust she entrusted in you and kept away from your antics. That’s what a great manager should do.

Involve
Not everyone in a team thinks or reacts in the same way. Some people need motivation, some need coaxing, some need a little pushing and some need a guiding hand. The key is to understand everyone and not try and force your ideas on them. As much as possible, try and take everyone on board with you. Try and involve every team member into the decision making process, and make them feel wanted. They should feel they are contributing to the bigger goal. Once they feel that way, their commitment and interest towards the project will inevitably rise.

Care
Genuinely care for your employees and their issues. If someone has a grouse, listen to them patiently and offer solutions. Don’t brush it off as “trivial”. If some employee has bungled in some way, take the blame on your shoulders. Also, do not take credit when you haven’t really done squat. Give it where it is due. If it’s a team mate’s idea to use digital medium to get more customers, acknowledge that and appreciate the person who came up with it. This will give you credibility, and people will do what you say without any questions.

Appreciate
If an employee has done a stellar job, make sure you throw a party in his or her honour and draw attention to their contribution. Not only will this make the employee happier and strive even harder, it will also inspire others to raise the bar. It’s like getting merit certificates in school if you scored above 75% in a particular subject. It made you keep up the good work and it made the others competitive, in a good way.

Getting work done without authority is fairly simple. Of course you will come across stubborn people who will never listen to you no matter what. You can always fire them. But there are others who will look up to you and respect you if you use your authority sparingly. Work towards building a solid team that will have your back. It’s really a give and take relationship. You will get what you give.

Green Business Definition

2012-06-09T22:05:00.000-07:00

Green Business Definition

Green Times defines "Green" as per the Merriam-Webster dictionary definition as

"being concerned with and supporting environmentalism" and "tending to preserve environmental quality".
Green Times is committed to promoting businesses, organizations, and products that fall under this definition. All of our listings and advertisers meet our Green Business Definition to ensure the quality and credibility of our content.

Green Business Eligibility Criteria

To be listed on Green Times, the business or organization must generally follow the following practices:

Relate to or advocate ecological awareness and the preservation of natural resources,
Operate in ways that solve, rather than cause, environmental problems,
Offer a majority of products that are certified organic, fair trade, or recycled,
Offer a majority of products that provide a low carbon alternative to traditional products,
Use alternative and low carbon sources for energy and transportation,
Purchase renewable electricity or renewable electricity credits for electricity needs,
Purchase carbon credits to offset all emissions.
Other practices that contribute to the eligibility for directory listing and website advertising include:

A clear commitment to helping protect the environment,
A commitment to reducing energy consumption,
A commitment to maximizing workplace recycling,
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Rajat Gupta, the story so far

2012-06-09T19:55:00.000-07:00

The trial of Rajat Gupta, former global head of McKinsey & Co. continues. Gupta is on trial, charged with leaking confidential information while serving on the board of directors of Goldman Sachs Group Inc and Procter & Gamble Co in 2007 and 2008.Gupta denies wrongdoing and is fighting the allegations.

Rajat Gupta (C), a former Goldman Sachs Group Inc and Procter & Gamble board member, exits the Manhattan Federal Court in New York May 21, 2012 with his family. His wife Anita along with their second daughter and many close friends, have been in attendance at his trial.

Lloyd Blankfein (L), Goldman Sachs Group Inc CEO, is seen in this courtroom sketch testifying in Manhattan Federal Court during the Rajat Gupta (bottom R) insider trading case in New York June 4, 2012.

Former Goldman Sachs Group Inc board member Rajat Gupta leaves Manhattan Federal Court in New York June 6, 2012. Lawyers for Gupta on Wednesday tried to use phone records to sow doubt at his insider-trading trial about contact with now-imprisoned hedge fund founder Raj Rajaratnam.

Prosecutors have alleged that Gupta tipped Rajaratnam, founder of the Galleon Group hedge fund, that Goldman was losing $2 per share in October 2008, when analysts were anticipating the bank to turn a profit.

Rajat Gupta (L), a former Goldman Sachs Group Inc and Procter & Gamble board member, arrives with his lawyer Gary Naftalis at the Manhattan Federal Court in New York June 7, 2012.

Goldman Sachs Chairman and Chief Executive Lloyd Blankfein (2nd R) leaves the Manhattan federal court after attending the Rajat Gupta insider-trading trial in New York June 7, 2012. Blankfein told a federal court jury on Thursday that he did not authorize former board member Gupta to share information about the bank that was discussed at board meetings.

Goldman Sachs Chairman and Chief Executive Lloyd Blankfein (C) talks to reporters as he leaves the Federal Court after speaking to the jury during the Rajat Gupta trading case in New York June 7, 2012.

Is India's GDP a Gasping Elephant or a Tortoise?

2012-06-09T05:49:00.003-07:00

The March quarter results indicate the slow growth rate of 5.3 percent which is the slowest in the past nine years. Prime Minister Manmohan Singh has set up an investment Tracking System to ensure that the projects are completed. India’s Central bank warned that the economic growth might further fall. This growth in the GDP is high by the standards of developed countries but is a disappointment in once booming India.

Robert Prior-Wandesforde a senior economist at Credit Suisse said in an investors note, “It is hard to describe India’s March quarter GDP release as anything other than shocking” and he was sure that the figures would bring “shivers down the spines” of the politicians who would then pressure the RBI to further cut down the key lending rates. This view is shared by other economists as well like Samiran Chakraborty, head of the regional research at Standard Chartered told Bloomberg, “We can’t rule out the possibility of India facing a deeper slowdown in the absence of quicker economic reforms, when the central bank has limited room to cut rates.”

In an official statement from the Prime Minister’s Office it was said, “Major projects will be specially tracked to take them forward on a fast track in order to provide a fresh impetus to the economy. This was in the context of delays faced by projects on multiple fronts – security clearances, environmental clearances, other clearances, land related matters.” This issue was raised at the PM’s Council on Trade and Industry last year to ask the Prime Minister to create a system to track the major projects. To ease the concerns of the investors there was the arrival of the figures that revealed the Indian economy growth of 6.5 percent in 2011-2012.

Finally the Investment Tracking system was introduced to monitor all the projects that cost over 1, 000 crore. So the public sector projects would be tracked by the National Manufacturing Competitiveness Council and the private sectors would be monitored by the Department of Financial Services. These departments would be expected to submit quarterly reports on the progress of the projects and enlighten about any issues that needs to be resolved in order to complete the project.

The figures are considered as the wake-up call for the left-leaning coalition government which was elected in 2009, the government is just filled with corruption and scandals say most of the commentators. It seems like we are heading back to the crisis of 1991 and this was described in the front page news by The Economic Times with the headline stating, “Goodbye 2020, Hello 1991!” The other indicators that are the source for worry are the rupee at historic low, annual inflation remaining high at 7 percent, the public deficit is large.

The high public deficit means that the government spending has to reduce and the high inflation makes it difficult for the Central Bank to cut the interest rates. Analysts say that ideological differences and the distractions over corruption scandals have made the government unable to push through reforms to open up the economy and throw out the red tape. A long standing recommendation by the business leaders to open the retail sector to foreign investment last year ended with a revolt in the coalition. After the publication of the GDP the government announced to ban officials meeting in five star hotels to save money.

In a note to its client Morgan Stanley an investment bank said that it had reduced its estimate for growth to 5.8 percent from 6.3 percent this fiscal year. A research consultancy named Capital Economics also slashed its forecast to 6 percent from 7 percent. The other corporate lobby groups the Confederation of Indian Industry and Federation of Indian Chambers of Commerce and Industry have renewed their calls for economic reforms. Adi Godrej the President of CII said, “We have to get back on the track of reforms.”

Sajjan Jindal the Chairman of JSW Steel told the Economic Times, “This is truly a missed opportunity, at a time when the whole world is looking to invest in developing economies; internal issues have plagued our nation.” Though the government claims that it is trying to woo the foreign investors it is surprising to know the committee on trade and industry headed by the Prime Minister Manmohan Singh has just met twice in two years. The first meeting was a preliminary meeting where five sub-committees were set up on issues like skill development and financial inclusion and the second meeting was focused on the global crisis and inflation.

In a report by one of the U.K. newspapers the Indian economy was referred to as a “tortoise” which has been changed from the previous comparison of “elephant”. Leif Lybecker Eskesen the chief economist for India at HSBC said that India has turned into a “gasping elephant”. All these names like tortoise and gasping elephant is like downgrading the Indian economy but it’s not their fault as the GDP is running below everyone’s expectations.

Eswar Prasad an economist at the Brookings Institution and Cornell told The New York Times, “The latest growth numbers signal India’s deteriorating economic prospects and presage much worse to come as industrial output has stalled and investment is falling. These numbers reflect not just a loss of economic momentum but, far worse, a loss of confidence in the government’s ability to tackle the enormous short-term and long-term challenges to sustaining growth.”

10 Youngest Billionaires in the World

2012-06-08T23:51:00.001-07:00

It is surprising to see so many young talents in the field of business and who have earned lots of money. Some have achieved the status and wealth with their hard work and perseverance but some have inherited the status and wealth through their ancestors. The younger generation is able to achieve success at this age which our older generation businessmen were able to achieve at their old age. So are these young ones giving competition to the older ones? Here is the list of 10 youngest billionaires in the world.

Mark Zuckerberg

Mark Zuckerberg has to be on the list of the youngest billionaires as he has achieved lot of fame for his invention of Facebook which was earlier known as Facemash. At the college dorm room of Harvard he o created Facemash which allowed the users to choose, who was the most attractive person in the campus, later with the help of his friends he was able to reach other college campuses as well and that’s how it kept growing. Though he was associated with lot of criticisms but still his Facebook become successful worldwide. Mark is worth $15 billion and has been named as among the wealthiest and most influential people in world by Time magazine in 2010

Sean Parker

Sean Parker is the co-founder of Napster which is a free file sharing service for music and he was also the first President of Facebook. He also co-founded Plaxo, Causes and Airtime. He along with his friend Shawn Fanning created Napster and for its launch in 1999 he was able to raise $50,000. He was opposed by recording labels and there were lawsuits against him by various industries. But still Napster is regarded as the fastest growing business of all time. Sean is worth $2 billion and he was an investor in Spotify the music sharing company.

Eduardo Saverin

Eduardo Saverin is a Brazilian investor and internet entrepreneur. He was one of the co-founders of Facebook along with Zuckerberg, Dustin Moskovitz and Chris Hughes. He sued Facebook and later agreed to come to a settlement. He used up at least $250 million worth of Facebook stock to invest in Digital Sky technologies and SharesPost. In 2012 he owns less than 5 percent shares of Facebook and his net worth is $2 billion. He has investe3d in other projects such as Qwiki and Jumio.

Dustin Moskovitz

Dustin Moskovitz was also one among the four who created the Facebook. Later on he left Facebook to create his own start up along with charitable work. In 2011 Forbes ranked him as the world’s youngest self-made billionaire on the basis of his shares in Facebook which was 7.6 percent. Currently his worth is $3.5 billion as estimated by Forbes.

Scott Duncan

Scott Duncan became a billionaire as he inherited it from his late father. He now runs his father’s business of Energy Pipeline Company. He is at his late twenties now and is worth $4 billion. He maintains a limited online presence.

Fahd Hariri

Fahd Hariri is 31 year old son of the Lebanese Prime Minister Rafiq Hariri. He is married now and works in real estate. He holds a degree in architecture and is worth $1 billion. He is frequently seen on the international social scene.

Robert Pera

Robert Pera was the former Apple engineer and founded Ubiquitti Networks which makes wireless gear. In his mid-thirties Pera still continues to live frugally instead of being worth $1 billion.

Ayman Hariri

Ayman Hariri is also the son of Rafiq Hariri the Lebanese Prime Minister. He pursued his undergrad degree at Georgetown University in United States. Ayman who is also in his mid-thirties works in real estate and has an international pedigree. He is also worth $1 billion.

Yang Huiyan

Yang Huiyan is the only woman in this list and she also gained the fortune when her father transferred most of his wealth to her in 2005. Her father was a self-made man who started a country garden which is a successful Chinese high-end real estate company and the estimated worth of this company was $7.4 billion in 2009. She graduated from the Ohio State University and in 2007 Yang’s net worth was $16.2 billion.

Albert Von Thurn Und Taxis

Albert Maria Lamoral Mifuel Johannes Gabriel is the 12th Prince of Thurn and Taxis. After his father’s death in 1990 he has been listed in the world’s youngest billionaire’s list many times. He attended school in Italy and Scotland and enjoys car racing and local energy projects. He is a German socialite and his mother was a popular media figure.

10 Most Expensive Google Acquisitions

2012-06-07T21:51:00.001-07:00

Bangalore: The world’s most preferred search engine- Google, is one of the best innovators around the globe. But most of the success is shared by its famous acquisitions. Google is one of the proud companies to have some of the renowned takeovers, which includes more than a hundred companies.

So here’s the list featuring top 10 expensive Google takeovers.

#1. Motorola Mobility:

Acquisition cost: $12.5 Billion
Year: 2012

The Motorola Mobility Holdings Inc. takeover is Google’s biggest ever acquisition. With a massive $12.5 billion as acquisition price, it’s thrice bigger than Google’s previous highest, the takeover of online advertising company DoubleClick for $3.2 billion in 2008. It’s also more than the total amount Google spend in buying nearly 200 companies since they went public in 2004.

#2. DoubleClick

Acquisition Cost: $3.2 Billion

Year: 2007

One of the best moves from Google, the launch of Google into the display advertising business was through their acquisition of DoubleClick in 2007. This $3.2 billion takeover helped Google to provide better multimedia ads over the old fashioned short links. $2.5 billion a year is what Google supposedly makes from display advertising.

#3. Youtube

Acquisition Cost: $1.76 billion

Year: 2006

Another renowned takeover is Google’s $1.76 billion acquisition of online video sharing site, Youtube. The takeover of Youtube in 2006 was considered as a huge risk as Youtube was known only for its copyrighted content that users used to upload without any permission and home videos. After the takeover, Google has masterfully discussed the contents with its owners and applied a very good takedown policy. From a site that had billions in lawsuits to one of the most preferred entertainment destinations, Google simply carried Youtube to greater heights. With an estimated $ 1 billion a year, Youtube is one of the best Google acquisitions up to date.

#4. ITA Software

Acquisition Cost: $700 Million

Year 2011

ITA Travel Service, an airline fare tracker helped Google to be introduced in the online travel market. The nearly $700 million purchase of ITA, which compiles of flight information for airlines and travel agencies, has raised some eyebrows of bitter rivals like Microsoft Bing and Kayak even after Google clearing the regulatory rules. But whatever the case, this takeover has taken Google to the top in travel market and that gave the number 4 spot in our top 10 Google acquisitions.

#5. AdMob

Acquisition Cost: $681 Million

Year: 2010

The acquisition of the mobile advertising service provider, AdMob gave Google the much needed push in the mobile market. This $681 million stock buy took Google to new heights in the mobile advertising market. The AdMob acquisition of Google makes it to the number 5 spot in top 10 expensive Google acquisitions.

#6. Widevine Technologies

Acquisition Cost: $158 Million

Year: 2010

In 2010 Google paid off $158 million in acquiring Widevine Technologies which is digital-right management software. This acquisition helped Google with some powerful DRM and streaming technology. Widevine works with companies in delivering protected video across the multiple channels and helps to content piracy. This takeover from Google is in at number 6 spot in expensive Google acquisitions.

#7. On2 Technologies

Acquisition Cost: $123 Million

Year: 2010

The acquisition by Google over On2 is at number 7 spot in our top 10 expensive takeovers by Google. A provider of digital video compression technology, On2 was bought by Google in 2010 for a sum amount of $123 million. The main reason of Google going for On2 was to cut the bandwidth cost at Youtube. The VP8 video codec that Google acquired from this deal has been renamed as WebM and since then Google have continuously been promoting WebM over H.264 which is the widely used standard for Web video.

#8. Keyhole

Acquisition Cost: Undisclosed

Year: 2004

A little known digital mapping service, Keyhole propelled itself into the top spot after being acquired by Google. Google used services of Keyhole to integrate with Google Maps which was mainly used for online directions. A combination of images from satellites and aircrafts along with tera-bytes of data is what Keyhole Technology provides and Google took advantage of this and implemented in their Google Maps, which now is the most preferred software for online directions. Still the financial terms of this acquisition are not disclosed.

#9. GrandCentral Communications

Acquisition Cost: Around $50 million

Year: 2007

Google made the giant leap in the Telecommunications market after acquiring GrandCentral Communications for an undisclosed sum of around $50 million. Google took this Web-phone service and later rebranded it as Google Voice.

#10. Android Mobile Platform

Acquisition Cost: Estimated up to $50 million

Year: 2005

The takeover of Android mobile platform is at number 10 spot in our top 10 expensive acquisitions by Google. Google acquired Android from ex-Danger leader Andy Rubin who started this mobile platform. Since then Android is one of the most preferred mobile operating systems over the world. With a built-in-userbase for mobile search and an annual contribution around $1 billion, there is no doubt that Android is the “best deal ever” by Google.

6 New Multibillion Dollar Businesses Facebook Can Bank on

2012-06-07T21:51:00.000-07:00

Bangalore: The Facebook IPO was valued at a whopping $ 104 billion. It comes as a surprise for most of us when a company that generates a revenue of $5.8 billion is valued so high. The sole reason for this could be the market’s undying faith in Zuckerberg and company to come up with new ways to monetize the site that has over 900 million users. With Facebook having the attention of an average user for about 8 hours a month they have a deep insight in the psyche of the user which can serve as valuable information for advertisers. Here is a list of six multimillion dollar businesses compiled by VentureBeat, which Facebook can look at to justify its sky high valuation.

1. Search:

Search is one sector dominated by Google. Google’s primary business is search advertising and the company has a mighty good control over this sector. It would be a little stupid to expect Facebook to compete with Google head-on. But as we know Facebook has an upper hand in user information and preferences. A recent survey by comScore found out that an average American Facebook user spends eight hours on the site per month as compared to two hours spent on Google.

Facebook can focus on search terms that can have commercial value, such as clothing or travel. Facebook is uniquely positioned to serve taste-based search terms based on the data it already has on its users. So it is evident that even though the ‘search’ sector is ruled by Google, Facebook still has a huge potential in the sector.

2. Person to Merchant Payments:

Facebook can venture in the person to merchant payment sector in Countries such as India; Indonesia etc which are largely cash based economies. It would be easier to set up camp in such nations as compared to United States where going up against Visa, MasterCard, AmEx, and Discover will be incredibly difficult. And Facebook is more likely to rule the market since the basis of commerce is trust and Facebook as a brand is trusted by over 1/7th of the world’s population.

3. Person-to-Person Payments:

The most important thing a company needs to venture into the person to person payment sector is its presence everywhere. There are a lot of companies in the US such as PayPal, Amazon, Chase, Citibank, and American Express that are trying to get a hold of this sector but they all lack in ubiquity. Facebook is probably the only site with its unique position where it is present everywhere. This makes person to person payment sector a win-win situation for Facebook.

4. Social Commerce:

When one has to plan an event the biggest challenge is to co ordinate with a large group of people at a time. Sites such as groupon and eventbrite have ventured in this sector but none of them possess the unique user insight that Facebook possesses. With its large user base Facebook can help in planning event. Facebook has the data and the network to effectively suggest things that you might want to do with your friends. It could also help organizations in every step of event planning ranging from marketing to inviting people and receiving conformations. Facebook has all the solutions you are looking for.

5. Local Businesses:

Local small businesses in smaller parts of the world do not necessarily have the infrastructure or time to maintain websites to cater to their customers. Facebook allows users to create profiles and pages for businesses and organizations. This provides such users a strong positioning on the web. Facebook can bank on such businesses that use Facebook to interact with existing or potential customers. Here too Facebook will benefit from its humungous user base and insightful user information.

6. Television:

Facebook can successfully influence what people watch on television. The big bucks in advertising still focuses more on television and Facebook can easily divert traffic to content providers. A lot of the content on Facebook can actually displace some TV viewing time if presented correctly on the big screen.

Not such diamond years: How the Queen's reign has witnessed the decline of British industry

2012-06-06T21:44:00.000-07:00

Not such diamond years: How the Queen's reign has witnessed the decline of British industry

The Jubilee has proved that the monarchy to be Britain’s most enduring institution — but the economic and corporate empire over which the Queen rules has, tragically, been greatly diminished over the past 60 years.
When Elizabeth II ascended the throne, Britain was the third most prosperous country in the world, lagging behind only the almighty United States and the Soviet Union.
Our corporate giants — a list of household names stretching from Blue Circle cement through Imperial Chemical Industries to shipbuilders Swan Hunter — ruled global commerce like colossi.

Golden era: The Queen and the Duke of Edinburgh visit the London Stock Exchange in 1978

Indeed, back then, the FTSE 30 read like a Who’s Who of Britain’s industrial might, encompassing every facet of business from shipbuilding to car-making, electrical industries to chemicals, and banking to insurance.
Today, many of the illustrious names that helped put the ‘Great’ into Britain have been beaten to dust by more efficient competition from overseas.
Others have been sold off to the highest foreign bidder as if they were unfashionable vases on offer in a car boot sale.
The sense of national pride that has been expressed across the country over the Diamond Jubilee weekend can no longer be seen on the floor of the London Stock Exchange, in the boardrooms of Britain or among the workforce.
It would be easy to dismiss the disappearance of the nation’s industrial and manufacturing behemoths as of no consequence; simply a result of the globalisation of the world economy and the advance of technological change.
Certainly, these have been important factors. But it can be no coincidence that in the same 60 years, the U.S. and German economies — the first and fourth largest in the world (Britain is now sixth) — have maintained and expanded their industrial heritage.

Corporate giant: Chemical manufacturer ICI was sold to a Dutch firm

In the U.S. many of the firms whose stock was listed on the Dow Jones Industrial Index in the Fifties are still sitting there proudly: DuPont, General Motors, General Electric, Boeing and industrial equipment maker Caterpillar.
Similarly, in Germany, most of the companies quoted on the Deutscher Aktienindex (DAX) reach back into the nation’s manufacturing past, including chemical firms BASF and Bayer, Daimler and BMW.
In contrast, great names from Britain’s industrial landscape have largely vanished. The Fort Dunlop factory in Birmingham, once a world leader in rubber, has been demolished and the site is now a shopping centre. The Westland helicopter test field in Weston-super-Mare has been turned into a helicopter museum, with the engineering work moved to Italy.
Of the parent companies that were quoted on the stock exchange when the Queen acceded the throne, only a handful survive.
Those that are no longer independent enterprises include textile makers Coats and Courtaulds, music firm EMI, the General Electric Company, aircraft maker Hawker Siddeley, Leyland Motors, Vickers and brewers Watney Combe Reid.
Those corporate survivors include financial firms Barclays and Prudential, Imperial Tobacco and British American Tobacco, engineer Rolls-Royce (saved from the scrapheap by Ted Heath’s government) and every woman’s High Street favourite, Marks & Spencer.

Survivor: Marks and Spencer is one of the dwindling number of companies still in British hands

The transformation of Britain’s industrial landscape is often attributed to the advance of the free market. The most pure form of this is Anglo-Saxon capitalism, whose advocates say ownership doesn’t matter, and that only efficiency and profits count.
But the truth is that other nations have carefully nurtured and looked after key industries, while successive British governments — of all political colours — have been less keen to play the patriotic card.
Instead, they have concluded that keeping markets open is what is most important, and the best measure of success is the amount of inward investment rather than a question of ownership.
This is all very well if every country plays by the same rules. But they do not. Despite being the home of Milton Friedman’s school of free market economics, the U.S. does not practice what it preaches.
For example, control of our ports passed from one of the nation’s great historic shipping companies, P&O, into the shoddy hands of Dubai Ports World in 2006. Yet the American government took a typically robust position. Though happy for Britain to control ports on its eastern seaboard, it did not want to see them in Middle Eastern hands.
Similarly, no foreigner is allowed to buy an American airliner. In fact, U.S. government workers are only allowed to travel on American carriers when on official business!

A prudent move? Prudential insurance is eyeing a move to Hong Kong

The same applies for broadcasting companies. Rupert Murdoch had to become a U.S. citizen and move his News Corporation to Delaware before he could buy the TV stations that became his Fox network.
In France, ten key sectors of the economy — from aerospace to yoghurt manufacture — are regarded as strategic industries and prevented from being bought by foreign firms.
Even British companies that have survived down the decades, such as Prudential insurance, have diluted their Britishness.
Six decades ago, the Pru stood at the centre of the UK’s commercial empire. It held at least a 3 per cent shareholding in all other major companies, giving it a major influence over decisions in businesses such as ICI and British Leyland. However, it tossed away that home-grown culture as if it were of no importance.
The traditional man from the Pru who sold us insurance has vanished. Instead, the firm is run by an Ivory Coast-born whizz-kid who has had his eye on moving the company to Hong Kong.
Of course, another factor behind our industrial decline was the bloody-mindedness of the trades union movement in the Seventies. Their crazy demands sabotaged scores of businesses just at the time that surging oil prices were bringing the economies of the Western democracies to a crashing halt.

Destruction: Striking British Leyland workers brought the car manufacturer to its knees

The unions are particularly to blame for the destruction of our home-grown car industry.
The other disease that has destroyed so much of Britain’s business heritage is management short-termism.
The dangers were identified by a Royal Commission headed by former prime minister Harold Wilson in the Seventies.
He found that our big battalion investors were more interested in short-term gains than in long-term investment in the nation’s industrial future.
But few took notice. Managements took a foreign buck rather than investing for growth.
A typical example of this was when Cadbury was taken over by U.S. giant Kraft Foods in 2009. Despite promises to keep open a chocolate factory near Bristol, Kraft shut it down — leading to the direct loss of 400 jobs and the indirect loss of others in the supply chain.

Sweet deal: Cadbury was taken over by US company Kraft in 2009

Clearly, cultural ties and history stand for nothing when there is money on the table.
Over the past few days, the UK has echoed to the sounds of Land Of Hope And Glory, Rule Britannia and Let It Be.
Yet EMI (a FTSE company in 1952), the home of much of this music, is owned by Citigroup of New York and is soon is to be sold to French-owned Universal Music.
Britain is left with a grotesquely unbalanced economy, with the value of assets of firms in the financial sector worth five times our annual national output. The assets for the same sector make up only 80 per cent of output in the U.S.
This disproportionate growth of banking and over-reliance on free markets over the past 60 years has undermined our manufacturing base and destroyed any semblance of loyalty to the company and any belief in heritage in most of our boardrooms.
And then we wonder why the economy has been so slow to emerge from the Great Recession, and why output is 4 per cent below its 2007 peak.
The answer lies in the fact that we have betrayed those historic names that were vital to Britain’s commercial advancement.

A career in Corporate Communication

2012-06-06T20:44:00.000-07:00

Consumers and employees form merely two of the myriad publics that an organization must interact with, thus the growing importance of corporate communication.

Just until a few years ago, companies communicated with their consumers via press releases, and with their employees through internal bulletins. Today however, the importance of communication has gone up manifold.

The field of corporate communication serves as an excellent example of the evolution of corporate functions and its subsequent impact in terms of career prospects. The field has undergone radical developments over the years and has become a full-fledged career option today. The number of job openings has increased what with more companies taking notice of its importance in business objectives, and a rise in competition.

Also, due to escalation of the mass media, the public scrutiny of companies has intensified, once again impacting the growth of corporate communication.

"As competition grows and as reputation becomes more important, any company serious about its image will always have a need for corporate communication," asserts Manish Kalghatgi, General Manager, Corporate Communication, Mumbai International Airport Pvt Limited. "The only way this field is going is upwards," he adds.

What is corporate communication?

Corporate communication encompasses all the communication that takes place between an organization and its various stakeholders in order to project the company's brand within and beyond the organization. Corporate communication is responsible for creating and maintaining the brand and looking after the organization's reputation.

Traditionally about media relations and internal communication, this field now encompasses functions such as advertising and brand building and management.

Corporate communication also deals with crisis control, but it does not wait for a crisis to occur. It works towards projecting an excellent image at all times, which helps when the chips are down. The positive image a company projects helps in molding public opinion in its favor in times of an actual crisis.

'With globalization, all companies operating in India and abroad need to meet global benchmarks in the way that they represent themselves,' opines D Morada, Head, Corporate communication, Larsen & Toubro Ltd, adding, 'In many companies, there is also a need to transform the perception of the brand from its traditional perception to a more contemporary and global image.'

How is it different from PR?

Corporate communication is often confused with public relations, although the two are distinctly different from one another.

'Corporate communication is a far more intense and strategic method of communication than public relations,' explains Jimmy Mogal, Head, Corporate Communication, Hindustan Constructions Company. 'Corporate communication has to communicate strategically, depending on the situation, message and audience and come out with different solutions for different scenarios.'

Mogal further clarifies, 'Public relations form a part of corporate communication. Corporate communication includes all forms of communication, explicit or otherwise, that an enterprise uses to project itself.'

In other words, the range of corporate communication extends far more than the primary PR function of media relations. Today, even PR agencies are expected to come up with corporate communication solutions.

What do students need for it?

A degree or diploma in mass communication helps for a career in corporate communication. However, many professionals agree that more than the degree, it is your personal skills that matter the most. 'It helps to have a degree in communication, but it is not essential. What matters is being able to understand issues related to your organization, an understanding of current affairs, and an eye for any development that could affect the organization.' states Kalghatgi.

'A degree or diploma in communication, no doubt, helps get an entry into the field,' adds Thrity Dadabhoy, Head, Corporate Communication, Wigan and Leigh College, Mumbai. 'But more important is the loyalty to the organization, the sense of allegiance that facilitates better performance. Also, language skills and the ability to see opportunities are important qualities.'

'A degree won't give you the strategic thinking and the ability to make and maintain contacts that matter a lot in corporate communication,' agrees Mogal. 'You also need an ability to understand the business, ability to network within and outside the organization and the ability to make people believe you as well as believe in you. You have to project an aura of credibility, which is crucial. Only then will your audiences trust you. Once you have earned their trust, however, you have to be sure never to lose it.'

Future Outlook

'There is enormous scope for corporate communication,' states Thrity. 'Industries are expanding and need to recognize the importance of having to communicate with the public that matters to the most. With the kind of development we are witnessing in India and abroad, corporate communication is here to stay.'

Prospects in the field are plentiful for more than one reason. Firstly, competition has grown. The need to maintain the brand has grown considerably, with regard to Indian as well as global consumers, as more foreign companies are coming to India than never before. Secondly, the need to communicate has exploded. Even the target audiences have expanded radically. We have come to use more and developed tools of communication to reach out to them. Finally, the external scenario has become extremely dynamic.

More variables affect the image of the company now than before. Also, the number of tools of communication has increased significantly. Television and internet have changed the communication scenario. What would reach the public in 24 hours in case of newspapers or 12-14 days in case of magazines earlier, now reaches them in a matter of seconds. The tasks formerly being taken care of with a couple of press releases are now being handled by entire departments. The heads of corporate communication departments are more often than not part of the executive committee, if not the board of directors.

In such a scenario, fresh talent is always welcome. A fresher can earn anything between three to five lakh per annum. And from there, the sky is the limit.

Source: Circle2Corner

Working for a knowledge warehouse

2012-06-06T01:52:00.001-07:00

KPOs are likely to grow nexpectedly. But what is it they do that is helping them pull professionals out from their careers to join the KPO bandwagon?

Recent visit of United States (US) president, Barek Obama has proved that the job inflow from US will remain to continue in India. The one of the answer is- through knowledge process outsourcing (KPO). KPO is the outsourcing of knowledge work in fields like law, finance, medicine, etc.

It involves transfer of business to other geographic locations for access to highly skilled workforce, improved quality, operational efficiency and cost savings. KPO is one step ahead of business process outsourcing (BPO) in which work other than software development and technical support is outsourced.

Current scenario

Though the KPO sector started emerging around the turn of the century in India, it is still in nascent stage. However, things are looking up. In last four years, the industry witnessed more than 26% CAGR (Cumulative Annual Growth Rate), creating a sea of opportunities for young graduates and experienced professionals. Career in KPO industry is exciting, fast-paced and rewarding. It provides a number of functional domains to graduates where they can hone and develop their skills and knowledge.

According to a study of Evaluserve, a leading provider of KPO services, the industry will provide 2,55,000 jobs in India by 2011. The research shows strong growth in the KPO sector in India. During 2000-01, India had 9,000 KPO professionals generating total revenues of US$260 million.

Currently, India employs nearly 80,000 employees in the sector and figures will increase in future.

India is one of the most preferred destinations for KPO industry because of cost, availability of skilled manpower, operational efficiencies and improved quality. The workforce is educated and well-versed with English.

Every year, the country produces large number of professionals in fields like IT, education, science, engineering, finance, law and architecture (About 3,60,000 graduates, including 40,000 MBAs and 6,000 PhDs). KPO brings a range of opportunities to this ever-growing young and dependable workforce.

Type of jobs

KPO involves work that requires advanced technical and analytical skills. The areas associated with KPO include research and development, advanced web applications, learning solutions, financial consultancy and services, animation and design, medical services, business and technical analysis, business and market research, writing and content development, pharmaceuticals and biotechnology, legal services, training and consultancy, data analytics, network management and intellectual property research.

Eligibility

The minimum eligibility to work in the KPO industry is graduation in any discipline. However, those with professional and postgraduate degrees are preferred. Good logical analytical skills and in-depth knowledge of a domain are the necessary skills to work in the KPO industry. In case of legal outsourcing, one should be a trained lawyer.

Similarly, candidates proficient in English can work for a university in foreign country. Financial process outsourcing is another hot job. Creating reports, balance sheets and other such documents requires expertise in finance. So, one has to be master of a particular subject. Graphic designing is another field which needs training from a good school.

Remuneration

The career avenues provided by the industry are one of the best suited and growing options which even freshers can opt for. Wide range of opportunities, well paid jobs, and facilities make it a good option.

In KPO sector, performance is measured on the basis of projects handled and efficiency in performing the work given. A young graduate can expect to join the industry with a package of Rs3 to 5 lakh per annum, with an average annual increase ranging from 12 to 20%. However, along with many benefits associated with the industry, there are some negative points that make people rethink about the job. After doing the job for some time, many people find it difficult to continue as it becomes tedious and monotonous. Some leave the job when they need to spend sleepless nights. So evaluate well before taking a plunge.

There are numerous well established KPO companies in the country. Some of the best KPO companies in India are Genpact, Evalueserve, Ugam Solutions, WNS, 24/7 Custmoer, ICICI OneSource, EXL Service, Copal Partners, Pangea3 and TechBooks. Most of them are based in metro cities.

Source: Team DNA/ DNA-Daily News & Analysis

Facebook Feels the Heat from Investors and Regulators

2012-06-05T23:34:00.000-07:00

Facebook shares were trading slightly higher on the Nasdaq on Wednesday following the steep decline that saw share prices for the social media giant plunge 8.9%, which followed an 11% drop on Monday.

Modest gains saw Facebook shares trading up 2.4% at $31.74, a gain of 74 cents a share.

But financial regulators have stated that issues around the initial public offering of Facebook should be reviewed; therefore putting new pressure on the company, lead under writer Morgan Stanley and the Nasdaq stock exchange.

Facebook decided to tell analysts to cut estimates due to feedback during the investor road show. What was revealed was that most people were connecting to Facebook through their cell phone devices, which generate less advertising revenue.

Financial regulators will now review Facebook's initial public offering after it closed flat Monday. For Facebook and Morgan Stanley, news about the revised projections has further undermined confidence in the social media company's shares.

How to Follow Your Dreams

2012-06-04T22:29:00.003-07:00

“Our truest life is when we are in dreams awake” - Henry David Thoreau Everybody has a dream.
Everybody wants to enjoy life to the fullest. It is practically impossible to come across a person who does not have aspirations and goals in life. However, it remains to be seen whether people allow themselves to dream or not. Also if they do, then it remains to be seen whether they act on that dream or not. Achievement follows action, depending on how they’ve acted to fulfill their dreams. So do you have a dream, which you are desperate to follow? Here’s how you should go about it.

1. Allow yourself to dream
Dreams are the very foundation on which great ideas, inventions, empires, dynasties and revolutions have been based. As TE Lawrence said, “Those who dream by night in the dusty recesses of their minds wake in the day to find that it was vanity; but the dreamers of the day are dangerous men, for they may act their dream with open eyes to make it possible.” Mind you, this does not encourage you to daydream. It merely symbolizes dreaming about things that can be achieved. It would not be wise to fantasize about things beyond our reach and ability.

2. Plan
A dream will remain that – a dream – and wither away into nothingness if you do not act upon it. In order to act, you need a plan. Remember, when you decide to follow your dreams and act on them, you will find that you have to accommodate the extra ‘dream work’ in your normal schedule. This could very well cause time management issues. This is where you need to prioritize. You will have to let go of some activity here and there to make extra time. However, make sure that you do not take away time essential for yourself and your family.

3. Step-wise approach
Consider achieving your dream similar to working on a project. While you do have an overall aim and objective, it is obvious that you would break down the project in to smaller, easily-achievable targets. Follow the exact same approach with your dreams. Also set specific deadlines, which will help maintain a sense of purpose and urgency about your dream. This also has the added benefit of allowing you to celebrate the achievement of each individual milestone, which will serve as motivation for the next step ahead.

4. Mentor, friend, role model
Very often, you tend to get disheartened or you lose the will and the courage to carry on with your efforts towards following your dreams. This is a natural human tendency and is nothing to be ashamed of. However, you can stay away from such a situation by sharing your ideas and beliefs with a friend or a mentor. Having a role model will also help, as they will serve as a constant source of inspiration for you and will urge you to fight on.

Dr APJ Abdul Kalam has rightly said, “A dream is not what you see when you sleep, a dream is something which does not let you sleep.” If your desires are true and you have a fire burning in your belly to achieve what you want, there is little that can come in your way. Believe in yourself. Believe in your dreams. Believe in your ability to achieve that dream. Above all, believe that you are worthy of that dream, for it is only a big dream which has separated big minds from those of the common men.

7 ways to loosen the grip of work stress

2012-06-04T22:05:00.000-07:00

Many of us experience trying days on the job. From projects that force us to labor into the wee hours to recurring arguments with co-workers, work stress surfaces in our lives now and then.

The good news is that relief from your pressure-filled workday might be more attainable than you think.

Here are seven ways to alleviate job stress:

1. Treat yourself.

Finally put that huge budgeting project to bed? Why not dine out? Check out a movie at the local cinema, or maybe spring for an hour-long massage at that spa you've always wanted to try. Not looking to spend much money? Treating yourself to an ice cream cone or picking up the latest novel from your favorite author might also do the trick.

2. Call a loved one.

Everyone tackles stress differently, says Brandan DuChateau, executive director for the National Wellness Institute. Some prefer to sort through their problems alone, while others depend on the help of friends and family members. The latter can prove beneficial in the long run, DuChateau says. "The research shows that social wellness is very important. So, even if you don't want to recoup with a group, it's important to have that group so when you are recouped, you can have fun with them so you have that social network," she says. "That group is so essential to people's overall happiness." Try bouncing a concern or two off of a good friend or acquaintance. It just might be your job-stress cure-all.

3. Exercise.

Yoga, Tai chi, or even a 15-minute walk can help ease your mind. Meryl Rosenthal, chief executive officer and co-founder of the agile work solutions company FlexPaths, says exercise plays a crucial role in relieving work stress. "It's hugely important to be able to exercise and clear your mind and take care of yourself," says Rosenthal. "All those health issues help people be more engaged at work and help them be more patient in managing people."

4. Go to sleep earlier.

Try heading to bed before midnight. This simple move gives you sufficient time to recuperate from the day's frustrations and rejuvenate your strength for what lies ahead.

5. Set boundaries.

When the clock strikes 5 p.m., leave heavy workloads and frustrations with co-workers behind at the office. Setting boundaries between work and family time can significantly reduce stress. "I call it work-life integration, because really there is no balance," Rosenthal says. "It's really the integration of both and how you navigate them." She also suggests keeping a calendar to help organize your life better, lessening scheduling conflicts and reducing worry.

6. Set boundaries.

When the clock strikes 5 p.m., leave heavy workloads and frustrations with co-workers behind at the office. Setting boundaries between work and family time can significantly reduce stress. "I call it work-life integration, because really there is no balance," Rosenthal says. "It's really the integration of both and how you navigate them." She also suggests keeping a calendar to help organize your life better, lessening scheduling conflicts and reducing worry.

7. Organize a post-work seminar.

If you're experiencing stress on the job, chances are, you're not alone. Companies that allocate time and space for their employees to discuss conflicts and concerns in a group setting foster a psychologically sound workforce, DuChateau says. "We actually see an enormous growth in the number of businesses recognizing that the health and well being of their employees is essential to the productivity of their company," she says. As a result, many companies are now hosting in-house stress-reduction seminars and workshops, because "they recognize that a stressed person is going to be a less-productive person," DuChateau explains. DuChateau also encourages employees to initiate lunch-and-learn sessions about ways to positively reduce job
source:http://in.finance.yahoo.com/photos/7-ways-to-loosen-the-grip-of-work-stress-slideshow/stress-photo-1338793171.html

All about the Reliance-KG Basin controversy

2012-06-03T23:36:00.003-07:00

Over the last two years, the United Progressive Alliance government has steadily lost credibility mainly because of the many cases of corruption that have been unearthed in recent months.

Yet another controversy has hit the national scene with a new report by the Comptroller and Auditor General indicting India's largest private sector company, Reliance Industries Ltd, for the violation of the terms of its contract in exploring gasfields in the Krishna-Godavari Basin.

If the allegations of irregularity, as indicated by the CAG, in the exploration in the KG Basin in Andhra Pradesh are true, then this could be a major factor contributing to price rise, as corruption in national assets like gas and petroleum puts inflationary pressure on the price of goods due to the high rate of fuel and transportation.

The CAG has asked the Union petroleum ministry to review the decision to allow Reliance Industries to retain the entire KG-D6 block.

Communist Party of India-Marxist Rajya Sabha member and trade union leader Tapan Sen has been fighting the alleged nexus between Reliance Industries and the UPA government for the last five years.

Away from the media glare, his -- and his party's -- battle for years was largely unknown, but the CAG report appears to have vindicated his stand.

Early in his career, Sen worked with the Steel Authority of India Limited. He has been a trade union activist since 1971 and eventually became general secretary of the CPI-M's Centre of Indian Trade Unions, CITU, a position he holds currently.

He is a member of Parliament's Standing Committee on Petroleum and Natural Gas. Sen has interacted with the Prime Minister's Office regularly on the alleged irregularities committed by Reliance Industries in gas exploration in the KG Basin.

In a tape-recorded interview to Rediff.com, Sen explains in detail what he believes are the irregularities committed by Reliance Industries and how the UPA government has allowed the petrochemicals giant to get away with it.

The interview was conducted after the draft CAG report was released, but before the final report was made public. Sen granted Sheela Bhatt the interview expressing apprehensions that it will not be published. "Nobody," he said, "wants to write on this huge scam which is bigger than the 2G scam."

How were you introduced to the irregularities in the petroleum and gas sector?

It was my duty to do the follow-up of the petroleum sector because my party had assigned me that duty by making me a member of the Standing Committee on Petroleum and Gas.

Besides, it is not just about my own political interest since the petroleum sector is a lifeline of the national economy in terms of fuel and energy security. So I had to take deep interest.

Through competitive bidding in the National Exploration Licensing Policy, the major part of the Krishna Godavari Basin had gone to Reliance Industries and its partner Niko Resources Ltd. They discovered gas in the KG Basin.

I was keeping a close watch on the time given to them, how the explorers were working, how gas was found and how the government would ensure that, finally, gas reaches consumers at an affordable price.

I kept a close watch on the whole chain of development. The entire scam of KG Basin came to light through a Parliament question first asked on December 12, 2006 by me and my colleague, the late Chittabrata Majumdar. It was a joint question.

We had got the information that in the KG Basin case, Reliance had placed a field development plan to produce 40 million standard cubic meters per day (MMSCMD) of gas. They placed the expenditure of $2.47 billion.

After some time they submitted a renewed field development plan claiming that now they will produce 80 MMSCMD at the expense of $8.84 billion. So production capacity doubled, but expenditure was inflated almost four times.

How did you come to know about it?

Nobody knew this till December 2006. It came out in Parliament in the reply of the petroleum minister. Any layman can tell you that, as per textbook economics, if your production is increasing, then your expenditure per unit must come down. But, here, production cost almost quadrupled.

Even if you take into account the uncertainties of the sector. . . even if you take into account the trial and error method of digging here and there, even if you take into account your wasted efforts of searching gas and exploring, and even if you take international standards for doubling production, your development cost cannot triple or quadruple.

Immediately I wrote to the (then) petroleum minister Murli Deora. He acknowledged my letter and gave a standard response that the matter is being looked into.

Within a few days Deora called me. He spoke to me on the issue. He told me to speak to the chief of the Directorate General of Hydrocarbons, V K Sibal -- who has now been charge-sheeted by the CBI for favouring the US firm.

In my meeting with him, he (Sibal) tried hard to justify the figure of expenses given by the Reliance. I told him, 'I have access to information on what's happening around in the world of gas exploration. If you take into account wasted efforts, even then Reliance can't charge the country like this. It's a clear case of gold-plating the cost.'

It would incur the government a big loss because only after recovering the cost of production would the government start getting a return on the national asset.

Gas is a national asset. Reliance is the contractor and definitely it is entitled to recover the cost.

But the inflated cost of Reliance has national ramifications. If the cost of gas exploration is too high, then it will affect the prices.

What must be the estimated cost to the exchequer?

It is not right to quantify the loss only on one account. The loss is on various accounts. Let me first tell you what happened at Sibal's level.

Deora asked Sibal to arrange for a conference with me. We wanted to examine the field development cost and wanted to know how it was approved.

The approval was given to Reliance in 33 days. I repeat, the renewed field development plan worth $8.84 billion was approved by the ministry in 33 days.

How can such a huge cost escalation be approved in 33 days only?

In the petroleum ministry, the conference took place. They could not reply to any of my questions. I told them, 'You have not presented to me your own estimate of cost of exploration. You have only presented before me the types of expenditures, cost of rigs, etc.'

I told the ministry's officers, 'you haven't quantified how you have arrived at the estimate of $2.47 billion for 40 MMSCMD to $8.84 billion for 80 MMSCMD. I understand 5 to 10 per cent of cost here or there, but it can't be more than that because it's an international business'.

The ministry should have allowed reasonable profit to Reliance, but before that they should have quantified it on their own. They could not convince me. I requested for an independent examination of it.

No doubt, accordingly the petroleum ministry appointed an impartial agency that included a Canadian expert also.

Then I got information that the Canadian company had a conflict of interest because they were earlier with Reliance. Again, the formation of the examining panel was changed.

I am not a spy. These people are very powerful and they have lots of money. Anyway, the DGH stood by its decision.

The independent agency also stood by DGH's decision. They never gave me that report. They communicated to me. . . orally.

What did you do next?

In 2007, I wrote to Prime Minister Manmohan Singh. I wrote that I am not satisfied with the petroleum ministry's presentation. I wrote four or five times to the PM. Again, I resumed my letter-writing when the petroleum ministry was deciding the pricing of KG Basin gas.

High cost of gas has a bearing on prices of goods, so again I started writing letters. The government appointed the Empowered Group of Ministers.

On the floor of Parliament, I questioned it because fixing of price of gas is a technical job and not a political job.

A bunch of ministers cannot be the custodian of all the knowledge under the sky. For fixing of pricing of gas and petroleum, you need cost accountants and industrial engineers. Here, the EGoM was doing it.

I proposed that they scrutinise the cost of production, get the price set that gives reasonable returns on cost of production. The government gives reasonable returns of 12 to 15 per cent on the cost to companies like ONGC.

I said, 'For Reliance you make it 25 to 30 per cent. I wanted the technical people to decide the price of gas explored by Reliance and then let political men decide if Reliance would deliver the fuel to the common man at that price or not.'

That was the political decision the government should have taken. After all, 30 per cent of power production in the country is run on gas.

What happened eventually?

Reliance, the company that had 'gold-plated' the expenditure of exploration, asked for a price of $4.3 per mmBtu. It was their discovery of price and they made out some formula for it, that I subsequently came to know.

And the EGOM had to work on it. They claimed that they got the bidding for it and they linked it to international price of crude oil.

Whatever India is producing under its own soil was linked it with the international price. I questioned the process of fixing of price.

I told the government, 'You must reply what is the basis of fixing the price of $4.3 per mmBtu by Reliance.'

Just to make a posture and fool the people, the government agreed to $4.2 mmBtu. A slight difference was made to say that they have not accepted what Reliance told them.

There was another impropriety done to the nation.

Reliance, that quoted $4.3 mmBtu to EGOM, quoted $2.34 mmBtu in the international competitive bidding of NTPC.

They would not have quoted $2.34 mmBtu without keeping a satisfying profit-margin.

The same Reliance is on record saying in the Supreme Court, where two brothers were fighting a legal case, on an affidavit, that their basic cost of exploring gas is much less than $2.00 mmBtu.

The EGOM had all these facts before them, but still in their wisdom they obliged Reliance and fixed the price at $4.2 mmBtu. I think the gold-plating done by Reliance in the capex had the bearings on that.

The country has to apply national security parameters and also the actual cost of exploration before fixing the price. What actually happened then?

Even before getting commercial production Reliance started getting its profit on the asset that belongs to the people of this country. . . they (Reliance) are just a contractor.

The manner in which they deceived the nation and the government and the way they fixed the price formula, they got a bonanza.

NTPC has written to the government that if it fixes the price as per Reliance's claims then government-owned company NTPC will lose Rs 24,000 crore (Rs 240 billion) in its two project in Kawas and Gandhar. It was given in writing to the EGoM.

hat was the real game behind the scene?

Mukesh Ambani's RIL backed out of the NTPC agreement. Different games were played at different times. Initially, when both (Ambani) brothers were together RIL had quoted a certain price, but when they fell out, the equations changed.

Anil Ambani said he should be given gas at the price agreed with NTPC. So RIL backed out from NTPC, too. RIL didn't bother about NTPC which is generating power for the nation.

Now, a court case is going on between Reliance and NTPC.

How much is the actual loss to the government?

Whatever the money Reliance has to make, they have made.

The government should have quantified the loss to the exchequer. The government should have calculated when would Reliance recover its cost and when would the government start sharing profits.

Reliance hiked the price from $2.34 mmBtu to $4.2 mmBtu. So, fertilisers companies, power plants and common consumers are paying more to Reliance. This collective loss by the nation and to 1.2 billion people should be calculated.

The cost to the nation is just not quantifiable. It's unquantifiable.

You can quantify revenue generation, but not the real loss. It is due to the venture where the government and corporate played jointly.

The higher capex cost means it will take longer for the government to get net revenue from the project.

Reliance made the gain, and I don't know who else made the gain in the process. That's anybody's guess.

There is another angle to the issue. The same Reliance sold 30 per cent stake to British Petroleum for $7.2 billion. It was approved by the government.

This is a windfall for Reliance, but it is the loss to the people of India.

What was Prime Minister Manmohan Singh's response to you?

I wrote to him. He said, 'I have received your letters. I am having the matter looked into'. That's all. Nothing more. His stand is what stand the EGoM has taken.

The government has not come out till now to admit that something wrong has been done. Prime Minister Singh has said regarding the 2G scam that, 'We live in a world of uncertainty and whether it is the Comptroller and Auditor General, whether it is a parliamentary committee. . . they analyse post facto. They have a lot more facts which were not available to those who took the decision'.

But, in the KG Basin case much before the EGoM took the final view on pricing, we took pains to make the government aware of all the information. There is nothing post facto here. The prime minister can't have this excuse. Everything was in public domain.

I raised (the issue) in Parliament, facts were given to the EGoM headed by (Finance Minister) Pranab Mukherjee. A greater crime has been committed here.

On pricing, a committee of secretaries was appointed and they also said, 'Don't do this now. ' The Cabinet secretary and many others have directly or indirectly told the government not to fix a price of $4.2 mmBtu.

The EGoM had Ministers of Power Sushilkumar Shinde, Fertilisers Ram Vilas Paswan, and the petroleum minister. I have information that the decision was not unanimous to favour Reliance in the EGoM.

In their presentation to the EGoM, the power and fertilisers ministries gave their opinion against fixing the price asked by Reliance. You can get it through RTI (the Right to Information Act).

Where does the matter stand now?

The country stands looted and the country continues to be looted.

What was the role of DGH?

DGH Sibal should be punished. He was the regulator. I have demanded that he should be questioned. The approval of cost of exploration projects is given to him and he approves it.

To be fair to a risk-taker like Reliance, one has to say that you can't quantify risk. When somebody is taking such a huge risk on such a huge project they would like to earn . . .

That's a general statement. Yes, there are risks. This risk is not something that is immeasurable.

I said, 'Please go by international standards. In this world, it is not only Reliance that is drilling into the earth or sea and finding gas'. I told you I have taken into account the risk that is involved, and the failure also.

See, when Reliance filed its first field development plan they had surely taken into account the risk factor.

Why did Reliance do this?

They wanted to make more money.

Then why did they not think of it in the first field development plan?

Because they wanted to make more money. Making money doesn't have an end.

Fooling the people is a kind of addiction. Once, I can fool you for $10, next time I will fool you with a bigger margin of $30.

What do you think of the draft CAG report on the KG Basin contract?

The CAG has said that there is a loss to the government in the KG Basin deal. Reliance has inflated cost on different counts. Whatever I have said in my 2006 letter to the government has been thoroughly vindicated in the CAG's draft report.

I think DGH Sibal should be prosecuted. The production-sharing contract should be re-written and price level should be revised and the government should bring it down.

It will make electricity cheaper, fertilisers cheaper and industries would benefit.

Whom do you blame?

I don't blame Reliance.

If I get the opportunity to steal, am I going to leave it? It is the duty of the government to see that nobody takes people for a ride.

There can be some defaults or mistakes in deals. This is not such case.

All the facts were before the government . . . there were whistleblowers within the system, but the government turned a blind eye to them and took the decision to favour Reliance.
source:http://www.rediff.com/business/slide-show/slide-show-1-special-all-about-the-reliance-kg-basin-controversy/20110920.htm

The world's most reputable companies

2012-06-03T23:20:00.001-07:00

The United States-based Reputation Institute has been studying the dynamics of corporate reputations since 1997.
Companies increasingly compete for market share and mindshare in all corners of the world. Having a strong and favourable reputation with consumers plays a critical role in helping a company to differentiate itself from rivals.

At the same time, consumers want to know more about the companies that stand behind the products and services that they buy.

The 2011 Global RepTrak 100: The World's Most Reputable Companies summarises the results of a comprehensive analysis of the world s 100 top-rated companies based on input from over 50,000 consumers in 15 countries.

Let us have a look at 20most reputable companies in the world.

1. Google

Country: US

Score: 79.99

Google is an American multinational public corporation invested in Internet search, cloud computing and advertising technologies.

Google hosts and develops a number of Internet-based services and products, and generates profit primarily from advertising through its AdWords programme.

The company was founded by Larry Page and Sergey Brin, often dubbed the Google Guys.

2. Apple

Country: US

Score: 79.77

Apple is an American multinational corporation that designs and markets consumer electronics, computer software, and personal computers.

The company's best-known hardware products include the Macintosh line of computers, the iPod, the iPhone and the iPad.

3. The Walt Disney Company

Country: US

Score: 79.51

The Walt Disney Company is the largest media conglomerate in the world in terms of revenue.

The company is best known for the products of its film studio, the Walt Disney Motion Pictures Group, and today one of the largest and best-known studios in Hollywood.

Disney also owns and operates the ABC broadcast television network; cable television networks such as Disney Channel, ESPN, and ABC Family; publishing, merchandising, and theatre divisions; and owns and licenses 14 theme parks around the world.

4. BMW

Country: Germany

Score: 79.42

Bayerische Motoren Werke is a German automobile, motorcycle and engine manufacturing company founded in 1916.

It also owns and produces the Mini marque, and is the parent company of Rolls-Royce Motor Cars.

BMW produces motorcycles under BMW Motorrad and Husqvarna brands.

5. LEGO

Country: Denmark

Score: 79.26

Lego is a line of construction toys manufactured by the Lego Group, a privately held company based in Billund, Denmark.

The company's flagship product, Lego, consists of colorful interlocking plastic bricks and an accompanying array of gears, minifigures and various other parts.

Lego bricks can be assembled and connected in many ways, to construct such objects as vehicles, buildings, and even working robots.

Anything constructed can then be taken apart again, and the pieces used to make other objects.

6. Sony

Country: Japan

Score: 79.05

Sony Corporation is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo.

It is the world's fifth-largest media conglomerate.

Sony is one of the leading manufacturers of electronics, products for the consumer and professional markets.

7. Daimler

Country: Germany

Score: 79.03

Daimler is a German car corporation. By unit sales, it is the 13th-largest car manufacturer and second-largest truck manufacturer in the world.

In addition to automobiles, Daimler manufactures buses and provides financial services through its Daimler Financial Services arm.

The company also owns major stakes in aerospace group EADS, high-technology and parent company of the Vodafone McLaren Mercedes racing team McLaren Group.

Daimler produces cars and trucks under the brands of Mercedes-Benz, Maybach, Smart, Freightliner and many others.

8. Canon

Country: Japan

Score: 78.07

Canon is a Japanese multinational corporation that specialises in the manufacture of imaging and optical products, including cameras, camcorders, photocopiers, steppers and computer printers.

Its headquarters are located in Ota, Tokyo, Japan.

9. Intel

Country: US

Score: 77.56

Intel is an American multinational technology corporation headquartered in Santa Clara, California, United States and the world's largest semiconductor chip maker, based on revenue.

It is the inventor of the x86 series of microprocessors, the processors found in most personal computers.

Intel also makes motherboard chipsets, network interface controllers and integrated circuits, flash memory, graphic chips, embedded processors and other devices related to communications and computing.

10. Volkswagen

Country: Germany

Score: 77.33

Volkswagen Group is a German automobile manufacturing group.

As of 2010, Volkswagen was ranked as the worlds third largest motor vehicle manufacturer and Europe's largest.

The Group's parent company develops vehicles and components for all marques of the whole group, and also manufactures complete vehicles for the Volkswagen Passenger Cars and Volkswagen Commercial Vehicles marques.

11. Microsoft

Country: US

Score: 77.29

Microsoft Corporation is an American public multinational corporation headquartered in Redmond, Washington, that develops, manufactures, licenses and supports a wide range of products and services predominantly related to computing through its various product divisions.

12. Nike

Country: US

Score: 76.92

Nike is a major publicly traded sportswear and equipment supplier based in the United States.

The company is headquartered near Beaverton, Oregon.

It is the world's leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment.

13. Panasonic

Country: Japan

Score: 76.84

Panasonic Corporation is a Japanese multinational consumer electronics corporation headquartered in Kadoma, Osaka, Japan.

Its main business is electronics manufacturing and it produces products under a variety of names including Panasonic and Technics.

14. Johnson and Johnson

Country: US

Score: 76.75

Johnson & Johnson is an international American pharmaceutical, medical devices and consumer packaged goods manufacturer founded in 1886.

Johnson & Johnson's brands include numerous household names of medications and first aid supplies.

Among its well-known consumer products are Band-Aid line of bandages, Tylenol medications, Johnson's baby products, Neutrogena skin and beauty products, Clean & Clear facial wash and Acuvue contact lenses.

15. Nokia

Country: Finland

Score: 76.17

Nokia Corporation is a Finnish multinational communications corporation that is headquartered in Keilaniemi, Espoo, a city neighbouring Finland's capital Helsinki.

Nokia is engaged in the manufacturing of mobile devices and in converging Internet and communications industries, with over 132,000 employees in 120 countries, sales in more than 150 countries.

It is the world's largest manufacturer of mobile phones.

16. Nestle

Country: Switzerland

Score: 76.01

Nestle, founded and headquartered in Vevey, Switzerland, is the largest food and nutrition company in the world.

The company operates in 86 countries around the world, and employs over 280,000 people.

17. Hewlett-Packard

Country: US

Score: 75.90

Hewlett-Packard is an American multinational information technology corporation headquartered in Palo Alto, California.

The company was founded in a one-car garage in Palo Alto by Bill Hewlett and Dave Packard.

Now it is one of the world's largest information technology companies, operating in nearly every country.

18. Michelin

Country: France

Score: 75.75

Michelin is a French tyre manufacturer and one of the world's two largest tyre makers.

The company also owns European tyre brands like BFGoodrich, Taurus, Riken, Kormoran, etc.

19. LOreal

Country: France

Score: 75.72

L'Oreal Group is the world's largest cosmetics and beauty company.

With its registered office in Paris and head office in the Paris suburb of Clichy, Hauts-de-Seine, France, it has developed activities in the field of cosmetics.

Concentrating on hair colour, skin care, sun protection, make-up, perfumes and hair care, the company is active in the dermatological and pharmaceutical fields.

20. Kelloggs

Country: US

Score: 75.20

Kelloggs is a producer of cereal and convenience foods, including cookies, crackers, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles and vegetarian foods.
The company's brands include Corn Flakes, Keebler, Pop-Tarts, Eggo, Cheez-It, Nutri-Grain, Rice Krispies, BearNaked, Morningstar Farms, Famous Amos, Special K, All-Bran, Frosted Mini-Wheats, Club and Kashi.

Kellogg products are manufactured in 18 countries and marketed in more than 180 countries around the world.
source:http://www.rediff.com/business/slide-show/slide-show-1-here-are-the-worlds-most-reputed-companies/20110922.htm

Understanding the savings interest rate scenario today!

2012-06-01T05:01:00.000-07:00

RBI’s deregulation drive on saving interest rates has created a competitive environment across banks in an effort to retain and capture a loyal customer base. The second quarter of the monetary policy review instructed banks to implement deregulation of savings bank rates with immediate effect, allowing banks to set their own interest rates.
The rate of interest in savings bank account was 4% per annum as mandated by the government in May 2011. However with the recent change banks are now allowed to fix their interest rates for saving account customers.
Banks now use this as a competing factor and weave it into their merits to enhance their customer base.
The happy news for savings account holders is maximum benefits for their money irrespective of the time period. Before deregulation there was hardly any competition in this segment, and all banks offered the same rate of interest. So, there were no second thoughts for customers about shifting their savings account from one bank to another. However, now customers think twice before they start a new account or wish to switch an existing account to get the maximum benefits.
So, how it is calculated?
Many wonder how banks calculate their savings account interest. Let us understand this process with an example:
Earlier banks used to pay an interest rate of 4% p.a. against the lowest available balance in the account between the 10th and final day of a month. Any deposits happening during this period were not eligible for interest rate calculation of that month, but at the same time, withdrawals during the period were taken into account.
For instance, Vishal had a balance of Rs.50000 in his account as on January 10th. On January 20th, he received Rs.100000 as maturity bonus for his LIC policy. On 28th January he had withdrawn Rs. 125000 for making a down payment for his new flat, thereby reducing his account balance to Rs. 25000. In his case, the bank would consider Rs.25000 for interest calculation, as it is the lowest amount available in his account between 10th and 28th January. So, the interest amount Vishal is eligible for the month of February will be for Rs.25000 @ 4% p.a. which amounts to Rs.83.33.
Effective from April 1, 2010 onwards, following RBI’s mandate to rework interest rate calculation methods, banks started calculating interest on a ‘daily balance method.
Let’s see what difference this move can make to Vishal’s interest earned on his savings account:
From January 1st to 20th, he will be paid an interest for Rs.50000.
From 20th to 28th, interest is calculated for Rs. 150000 and for the remaining three days, interest is calculated on Rs.25000/-
So, the interest he earns for January will be Rs.249.28/- against the older method, whereby he would have earned Rs. 83.33 only.
So, now every rupee you keep in your account earns for you and you need not plan ahead for your withdrawals to gain maximum benefits.
Now, let us understand how the de-regulation works for you when clubbed along with the new interest rate calculation method.
Benefits of Deregulation
• It raises the level of competition between banks which directly benefits the customers
• Maximum return for your money
• High interest rates on short term deposits (less than 6 months).
• Switching banks offers better options
Provided below is a comparison of the interest rates offered by different banks on saving accounts:
Bank Name

Savings
Interest Rate below Rs. 1 Lakh
Savings
Interest Rate above Rs. 1 Lakh
Axis Bank

4% p.a.

4% p.a.

Citibank

4% p.a.

4% p.a.

HDFC Bank

4% p.a.

4% p.a.

HSBC Bank

4% p.a.

4% p.a.

ICICI Bank

4% p.a.

4% p.a.

IDBI Bank

4% p.a.

4% p.a.

Indus Ind Bank

5.5% p.a.

6% p.a.

Kotak Bank

5.5% p.a.

6% p.a.

State Bank of India

4% p.a.

4% p.a.

Yes Bank

6% p.a.

7% p.a.
The data in the above table does dampen the initial excitement that the deregulation drive created. However, it could still beearly days and with various RBI measures on other fronts it could just be a matter of time before this aspect becomes a reason for people to have more liquid cash in their accounts, the daily balance calculation is already a valid reason enough! However one must also remember that if banks compete to raise interest rate on the savings account, in may result in lending rates going up to maintain balance and the profit equation. However, other market conditions also come into play here and one reason alone cannot be isolated as being responsible for any kind of change.

How to Be Innovative at Work

2012-05-30T05:35:00.000-07:00

To state the obvious, work is a very integral part of our lives. We do the same thing, day in and day out for most of our careers.

At the same time, there’s all the talk about new ideas and increasing productivity at the workplace. In this scenario, innovation is the buzz word all over the place. Innovate, companies say. Moreover, do it quick. How do we really go about value addition to our routine work, while dealing with our normal responsibilities at the same time?

1. Not an option

First of all, it should be clear in our heads that innovating is no longer an option. It has become a necessity – for the organization to thrive and survive, and also for the individual employee to make his presence felt at the workplace. We must make it a point to get started right away. It’s never too late to start thinking of new practices that can be implemented at work or looking at better methods to get certain tasks done.

2. Be sure, be real

We need to be completely certain when it comes to innovation. It may seem very tempting at first, to think of a plethora of thoughts, trying too hard to come up with ideas related to phases at work that we have nothing to do with. We must have a clear sense of purpose when we set upon the search for gathering data and finding new solutions. To begin with, our area of work is the best place to focus on.

3. Think new, think different

It is but obvious that the best way to innovate is to come up with a new strategy or a new methodology of going about activities, tasks or achieving targets, rather than trying to modify existing ones. Best case in point is the way Apple came up with the idea of touch-screen phones. We can clearly see how they have revolutionized the smartphone market today. Similarly, we must try and find areas that the organization can work on, but have been overlooked or have not been registered as areas of improvement or building upon.

4. Gather your thoughts

Innovating is quite like trying to put together the pieces of a puzzle. New ideas and thoughts come to us as fragments of our imagination as a whole, with the entire picture still hazy. This is when we need to gather our thoughts and make an effort to put the pieces in place. The bigger picture is always what matters in the end. Will each individual step make its desired successful contribution to the greater cause? We also need to work out the timing of each step in the process.

5. Implementation

The importance of a well planned and effective implementation strategy just cannot be undermined. Without a proper push from the management and the proper utilization of employees’ capabilities, the blue prints for any innovation will remain just that – a blue print. We need to be aware of any hiccups we may face during execution and we should be well-equipped to tackle and overcome any obstacles which we may face.

What really defines the innovation process is the burning desire to improve upon our past successes and the constant itch to leave a mark in our respective fields of work or study. We must be willing to experiment and face the unknown out there. Innovation is nothing without a longing for adventure and the willingness to think and do different.