Dear all,
I just read Ms Mansi Varmani note on CASA and its importance to bankers. It means higher the ratio the higher expected return.
Let us evaluate current account balance from corporate side. Why do they need CA? How do they operate so that they keep the balances to minimum?
Is it only the finance to worry about its operation? If not who are those stack holders and how do you expect them to act in overall interest of the organization?
On hearing from you, I will tell you the corporate role.
Till then keep learning!!!
Wednesday, October 13, 2010
Thursday, September 2, 2010
ECOMONIC GROWTH INDICATOR- GDP grew at 8.8% in Q1, 2010-11 in India
When we are appearing in interview for a job, the interviewers have limited time in which they make up their mind to select or reject a candidate - you. One of the qualities they look for is how well a candidate is aware of his / her surroundings – local / national / global issues affecting business / social enterprises. It is in this background that I would like to talk to you on an issue of national / global importance. In fact after the financial crisis, issue of economic growth / stability has assumed a lot of relevance and hence importance in economic well-being’s of all of us.
India’s growth story has also been attracting a lot of attention world over. Recently our GDP (Gross Domestic Product) has recorded a growth of 8.8% in Q1 of 2010-11 which was fastest in last 10 quarters. It was higher by 2.8% as compared to last year same period. Planning commission deputy chairman Montek Singh Ahluwalia expected that GDP growth in this fiscal year will be slightly better than 8.5% as projected earlier.
At the same time some experts and the economists have expressed a cautious approach to growth number. There are three factors which have a bearing on overall performance of any economy namely Private consumption, trade deficit (import > export) and investments. All three numbers are down as compared to the last year same period and also against the previous quarter. Perhaps you may all think it at odds with consumption trends seen in autos, durables and others.
Objective of this blog is to relate theory of GDP to real life business situation as was experienced in the Q1 in India and for that matter the application will equally be seen in any economy of the world; So that we as managers may develop a better understanding and appreciation of the issues.
If you had studied GDP concepts at school/ college/PG levels or are going to study in PG course, GDP equals Money times velocity.
GDP=MxV
M= Supply of money and V= No. of times a unit of money changes hands during a year.
It means GDP is function of money & velocity.
1. If both are going up, the impact on the economy will be favourable,
2. If both are going down, then impact will be unfavorable,
3. If the supply of money has gone down and no change in velocity, impact unfavorable and
4. If the supply of money has gone up but velocity has gone down faster than the rate at which M is rising, the impact will be unfavorable.
What have we seen in the last 18 months in our country and also around the world? The governments and central banks have been taking steps to increase supply of money and to keep rate of interest low. But despite that economies of many countries are faltering. Why?
It means that velocity is most important factor.
a. If people is not spending money (changing hands), it will slow down wheels of economic growth- multiplier effect.
b. If import is more than export, disposable income declines.
c. If businesses are making profits and are keen to invest, it will provide impetus to economic activity
It is for the aforesaid reasons we need to read carefully economic performance of Indian economy in Q1 and tread cautiously as business managers.
I am deliberately ending the blog at this point inviting your views and understanding of the concept. I request you all to try explaining reasons and relate it to the happenings in India and the world.
I look forward to receiving your comments.
Best wishes!
India’s growth story has also been attracting a lot of attention world over. Recently our GDP (Gross Domestic Product) has recorded a growth of 8.8% in Q1 of 2010-11 which was fastest in last 10 quarters. It was higher by 2.8% as compared to last year same period. Planning commission deputy chairman Montek Singh Ahluwalia expected that GDP growth in this fiscal year will be slightly better than 8.5% as projected earlier.
At the same time some experts and the economists have expressed a cautious approach to growth number. There are three factors which have a bearing on overall performance of any economy namely Private consumption, trade deficit (import > export) and investments. All three numbers are down as compared to the last year same period and also against the previous quarter. Perhaps you may all think it at odds with consumption trends seen in autos, durables and others.
Objective of this blog is to relate theory of GDP to real life business situation as was experienced in the Q1 in India and for that matter the application will equally be seen in any economy of the world; So that we as managers may develop a better understanding and appreciation of the issues.
If you had studied GDP concepts at school/ college/PG levels or are going to study in PG course, GDP equals Money times velocity.
GDP=MxV
M= Supply of money and V= No. of times a unit of money changes hands during a year.
It means GDP is function of money & velocity.
1. If both are going up, the impact on the economy will be favourable,
2. If both are going down, then impact will be unfavorable,
3. If the supply of money has gone down and no change in velocity, impact unfavorable and
4. If the supply of money has gone up but velocity has gone down faster than the rate at which M is rising, the impact will be unfavorable.
What have we seen in the last 18 months in our country and also around the world? The governments and central banks have been taking steps to increase supply of money and to keep rate of interest low. But despite that economies of many countries are faltering. Why?
It means that velocity is most important factor.
a. If people is not spending money (changing hands), it will slow down wheels of economic growth- multiplier effect.
b. If import is more than export, disposable income declines.
c. If businesses are making profits and are keen to invest, it will provide impetus to economic activity
It is for the aforesaid reasons we need to read carefully economic performance of Indian economy in Q1 and tread cautiously as business managers.
I am deliberately ending the blog at this point inviting your views and understanding of the concept. I request you all to try explaining reasons and relate it to the happenings in India and the world.
I look forward to receiving your comments.
Best wishes!
Wednesday, June 30, 2010
iPad vs. Adam or /and Phi ipod ( Indian made)
Dear Friends,
We are all aware of iPhone and iPod from Apple. Recently iPad was launched in the world, understand more than 1 million sets have been sold. At the same time there were two launches from India of the product similar in all respects to iPad. They are Adam from Notion Ink & Phi. Both are expected to have price advantages over Apple's iPad.
Do you think India being a price-sensitive country, Desi products will give iPad a run for the money whenever it is launched?
Or Desi version will die a natural death against the giant- Apple
Why iPhone is not able to gain a sizable market share in India?
I would like to hear your views and plan of action for both companies - Apple & desi companies. You may choose one of them for your analysis and final recommendation.
I shall be requesting senior alumni to judge your plan of action and choose the best first three.
Why wait, let us start!
Best wishes
We are all aware of iPhone and iPod from Apple. Recently iPad was launched in the world, understand more than 1 million sets have been sold. At the same time there were two launches from India of the product similar in all respects to iPad. They are Adam from Notion Ink & Phi. Both are expected to have price advantages over Apple's iPad.
Do you think India being a price-sensitive country, Desi products will give iPad a run for the money whenever it is launched?
Or Desi version will die a natural death against the giant- Apple
Why iPhone is not able to gain a sizable market share in India?
I would like to hear your views and plan of action for both companies - Apple & desi companies. You may choose one of them for your analysis and final recommendation.
I shall be requesting senior alumni to judge your plan of action and choose the best first three.
Why wait, let us start!
Best wishes
Monday, June 28, 2010
Reality Check
Why do we join MBA? Majority of us believe that MBA degree/
diploma is considered as a passport to prosperity.
1. Money
2. Respect
3. Career growth
You (once acquired MBA degree) are the part of management entrusted with job of achieving objectives of the organization through & with people.
Expected to understand & improve the running of the organization.
Understand organization as a whole & being able to understand people in it.
It means management expects certain skills MBA possess so that there is alignment in their way of working towards achieving goals of organization.
What are those skills?
They are
1. Good understanding of subjects and its application in real life
situation,
2. Analytical skills: Logical vs. lateral thinking,
3. Ability to work under pressure / obstacles,
4. Ability to work in team,
5. Proactive,
6. Learning attitudes,
7. Innovative mind and above all
8. Communication mastery because it is through communication one gets
result.
So why not we start with reality check – self- SWOT analysis. Do we possess the aforesaid skills? If yes work on it to fine tune it, if not what do I do to acquire those skills? Or in between, work on both but never ignore your strong areas.
It is said talents are incomplete when not aligned with skills. Talents may open doors, but skill will allow going through.
Therefore it is not too late.
Many of you may think strongly those skills are well known to us. Then why to repeat the same?
If you are serious about your career, would like to make you employable, you need to revisit this dashboard again and again to check whether you are on the track or not. Because those skills cannot be acquired in short period but it requires continuous practice. Remember The 10,000 – Hour Rule as explained in the book “OUTLIERS” by Mr Malcolm Gladwell.
I would strongly recommend the reality check exercise every week. Next time when we meet I am going to talk to you about real life situations / happenings and its linkages with your studies / career.
Till then wish you good time and do share your views I would be looking forward to receiving them in all humility.
Why do we join MBA? Majority of us believe that MBA degree/
diploma is considered as a passport to prosperity.
1. Money
2. Respect
3. Career growth
You (once acquired MBA degree) are the part of management entrusted with job of achieving objectives of the organization through & with people.
Expected to understand & improve the running of the organization.
Understand organization as a whole & being able to understand people in it.
It means management expects certain skills MBA possess so that there is alignment in their way of working towards achieving goals of organization.
What are those skills?
They are
1. Good understanding of subjects and its application in real life
situation,
2. Analytical skills: Logical vs. lateral thinking,
3. Ability to work under pressure / obstacles,
4. Ability to work in team,
5. Proactive,
6. Learning attitudes,
7. Innovative mind and above all
8. Communication mastery because it is through communication one gets
result.
So why not we start with reality check – self- SWOT analysis. Do we possess the aforesaid skills? If yes work on it to fine tune it, if not what do I do to acquire those skills? Or in between, work on both but never ignore your strong areas.
It is said talents are incomplete when not aligned with skills. Talents may open doors, but skill will allow going through.
Therefore it is not too late.
Many of you may think strongly those skills are well known to us. Then why to repeat the same?
If you are serious about your career, would like to make you employable, you need to revisit this dashboard again and again to check whether you are on the track or not. Because those skills cannot be acquired in short period but it requires continuous practice. Remember The 10,000 – Hour Rule as explained in the book “OUTLIERS” by Mr Malcolm Gladwell.
I would strongly recommend the reality check exercise every week. Next time when we meet I am going to talk to you about real life situations / happenings and its linkages with your studies / career.
Till then wish you good time and do share your views I would be looking forward to receiving them in all humility.
Monday, June 21, 2010
Lateral thinking vs logical thinking
Here is a very good story deals with the above concept. I find it useful so that you all may develop lateral thinking skill.Hence I am posting it.I look forward to receiving your feedback.
Many years ago in a small Indian village, A farmer had the misfortune of owing a large sum of money to a village moneylender. The Moneylender, who was old and ugly, fancied the farmer’s beautiful daughter. So he proposed a bargain. He said he would forgo the farmer’s debt if he could marry his daughter. Both the farmer and his daughter were horrified by the proposal.
So the cunning money–lender suggested that they let Providence decide the matter. He told them that he would put a black pebble and a white pebble into an empty money bag. Then the girl would have to pick one pebble from the bag.
1. If she picked the black pebble, she would become his wife and her father’s debt would be forgiven.
2. If she picked the white pebble she need not marry him and her father’s debt would still be forgiven.
3. But if she refused to pick a pebble, her father would be thrown into Jail.
They were standing on a pebble–strewn path in the farmer’s field. As they talked, the moneylender bent over to pick up two pebbles. As he picked them up, the sharp–eyed girl noticed that he had picked up two black pebbles and put them into the bag. He then asked the girl to pick a pebble from the bag.
Now, imagine that you were standing in the field. What would you have done if you were the girl? If you had to advise her, what would you have told her?
Careful analysis would produce three possibilities:
1. The girl should refuse to take a pebble.
2. The girl should show that there were two black pebbles in the bag and expose
the money–lender as a cheat.
3. The girl should pick a black pebble and sacrifice herself in order to save
her father from his debt and imprisonment.
Take a moment to ponder over the story. The above story is used with the hope that it will make us appreciate the difference between lateral and logical thinking. The girl’s dilemma cannot be solved with traditional logical thinking. Think of the consequences if she chooses the above logical answers. What would you recommend to the Girl to do?
Well, here is what she did ……
The girl put her hand into the moneybag and drew out a pebble. Without looking at it, she fumbled and let it fall onto the pebble–strewn path where it was immediately lost among all the other pebbles.
"Oh, how clumsy of me," she said. "But never mind, if you look into the bag for the one that is left, you will be able to tell which pebble I picked."
As the remaining pebble was black, it must be assumed that she had picked the white one. And since the money–lender dared not admit his Dishonesty, the girl changed what seemed an impossible situation into an extremely advantageous one.
Moral of the story: Most complex problems do have a solution. It is only that we do no attempt to think.
Many years ago in a small Indian village, A farmer had the misfortune of owing a large sum of money to a village moneylender. The Moneylender, who was old and ugly, fancied the farmer’s beautiful daughter. So he proposed a bargain. He said he would forgo the farmer’s debt if he could marry his daughter. Both the farmer and his daughter were horrified by the proposal.
So the cunning money–lender suggested that they let Providence decide the matter. He told them that he would put a black pebble and a white pebble into an empty money bag. Then the girl would have to pick one pebble from the bag.
1. If she picked the black pebble, she would become his wife and her father’s debt would be forgiven.
2. If she picked the white pebble she need not marry him and her father’s debt would still be forgiven.
3. But if she refused to pick a pebble, her father would be thrown into Jail.
They were standing on a pebble–strewn path in the farmer’s field. As they talked, the moneylender bent over to pick up two pebbles. As he picked them up, the sharp–eyed girl noticed that he had picked up two black pebbles and put them into the bag. He then asked the girl to pick a pebble from the bag.
Now, imagine that you were standing in the field. What would you have done if you were the girl? If you had to advise her, what would you have told her?
Careful analysis would produce three possibilities:
1. The girl should refuse to take a pebble.
2. The girl should show that there were two black pebbles in the bag and expose
the money–lender as a cheat.
3. The girl should pick a black pebble and sacrifice herself in order to save
her father from his debt and imprisonment.
Take a moment to ponder over the story. The above story is used with the hope that it will make us appreciate the difference between lateral and logical thinking. The girl’s dilemma cannot be solved with traditional logical thinking. Think of the consequences if she chooses the above logical answers. What would you recommend to the Girl to do?
Well, here is what she did ……
The girl put her hand into the moneybag and drew out a pebble. Without looking at it, she fumbled and let it fall onto the pebble–strewn path where it was immediately lost among all the other pebbles.
"Oh, how clumsy of me," she said. "But never mind, if you look into the bag for the one that is left, you will be able to tell which pebble I picked."
As the remaining pebble was black, it must be assumed that she had picked the white one. And since the money–lender dared not admit his Dishonesty, the girl changed what seemed an impossible situation into an extremely advantageous one.
Moral of the story: Most complex problems do have a solution. It is only that we do no attempt to think.
Sunday, June 20, 2010
Promise made is practiced
Dear FMS BHU Students,
It was nice interacting with all of you in career guidance session organised by BHUMAA on 19th June 2010 at Malaviya Smriti Bhavan, New Delhi.
As promised, I am starting a blog for you only. Primary objective is to prepare you for a better & secure career by sharing with you the real life application of your text book, enhancing your understanding of those theories, concepts.
I am a firm believer of whatever we read in text book has application in real life situation. It is up to us to create that relation.
In coming days, i am going to pick a topic / subject / concept from your current syllabus and take you through the journey of learning. I hope you are going to have a good time with me. In the process I shall also be learning from your input.
Let's start.
I shall welcome your suggestion/ feedback in right earnest and take it as an opportunity to explore new horizons of knowledge / skills.
Best wishes!
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