What’s the difference between a startup & a company?

Posted on September 29, 2017Categories Advanced Marketing   Leave a comment on What’s the difference between a startup & a company?

One question that has always intrigued a lot of us is why is a new company called startup and why not an organization or a company or any normal term used for an enterprise. The reason is simple – maturity! No, we do not mean maturity in terms of the age of the founders or their startup. We refer to their thoughts, their plans and their thought process. This is primarily the reason for a company’s success or failure. What truly distinguishes a company from a startup is the plans that have been made by the founder. These plans define the future course of action and it is this that determines the seriousness of the company. A company will always focus on building a positive cashflow and acquiring more customers, while a startup is usually still trying to find its feet.
Any company is heavily dependent on the vision and the plans made by their founders/ promoters/ senior management, etc. This vision is responsible for attracting talent, consumers, investors, etc. to the company. In the words of legendary Billionaire Uber investor Chris Sacca, “Having a great idea is simple, but executing it is what makes or breaks a company”. It is the ability of people like Mark Zuckerberg, Steve Jobs, Larry Page & Sergey Brin to convert their ideas to excellent products, at a very young age, that makes them extraordinary. Their achievements have not been matched so far and many never be matched by anyone. It is this ability that sets them apart as individuals and as professionals. It is the force of their vision and the execution of this vision that brings in the riches.
A clear thought process, a clear mission statement and a resolve to make the lives of human beings simpler and more efficient is what distinguishes a startup from a company. By having a lazer like focus and a will to implement your ideas, one can definitely bring their ideas to life.
The first step in this process is to identify a problem that affects a lot of people and then coming up with a solution that can help you to solve it. Please keep in mind that you must be as systematic as possible. Being systematic and detailed is what makes it easier for employees and investors to follow what you are saying or doing. The best way to do this is to assemble a team of like minded individuals who are committed to the same cause. Delegating work to these people with specific goals is what will allow you to focus on each and every detail that you want to excel at. This lets one person be incharge of every important part of a product.
For example: Apple has a separate division for their hardware and the software. Within hardware, you have different people responsible for each product – TV, Mobiles, Laptops, Computers, Watches, etc. Underlying these are separate teams of people who manage every little detail – the size of the phone, the type of screen material to be used, the buttons to be used, the battery types & features, the camera, the microphone, the headphones, handsfree options, connectivity with other devices, speakers, etc. Similarly, for the software division, you have different teams handling every detail like – Siri, the operating system, the mobile apps, the iTunes, etc. Only when each of these various details have been perfected can one claim to have a perfect phone or a laptop. Only when Job’s vision of this perfect device came alive, could he claim to offer the best product in the World.
It is this attention to detail that allowed not just Steve Jobs, but also Elon Musk, Mark Zuckerberg, Sergey Brin, Larry Page and Jeff Bezos to offer some of the best products in the World, attract the best employees and attract long lines of consumers & investors.
This genius or the X factor is nothing but a systematic mind that aims to make the lives of human beings better. This is what truly sets apart iconic products and world class companies. One may feel that it’s a tough thing to imagine that in India, but we do have good Indian companies like Reliance, Sun Pharma, PayTM, ISRO, etc. which are using this system to come up with excellent products and make a splash on the world.
BSE Institute Ltd (BIL) offers you a chance to learn about entrepreneurship and management from the best. It offers a 12 month Advance Management Program (AMP) that lets you learn about complex management techniques from senior industry professionals.
Innovation, management and sales are three tough things that a founder has to do on his own not only to survive, but to excel in the field of his choice. For people who wish to be examples like the one suggested above, it is possible, provided you have the right attitude and the right vision. Best of luck.

Mutual Funds can be your best option for an early retirement

Posted on September 28, 2017Categories Short term programmes   Leave a comment on Mutual Funds can be your best option for an early retirement

This is true. Mutual funds can truly be your way to retiring early. Mutual funds are considered to be some of the most unreliable and the most risky investments in the World. The reason is that far too many people invested without giving the investment a thought. Investing in mutual funds is just like investing in stocks, but a little less riskier.

The major difference in investing in a Mutual Fund and a Stock is in the equity market, you are betting on 1 company, but in MFs, you are betting on an entire industry. This is easier to do as understanding one industry, its dynamics, the parameters affecting it, etc. are easy to track. On understanding these, one can easily understand if the industry is going to do well or not. These parameters will be different for a single company as companies can operate in different industries at the same time and predicting its share price is difficult.

There are some MFs which have multiplied to 3 times their original value since 2006. For example: If you invested Rs 5,000/ month since 2006, your investment of Rs 6,60,000 would be worth Rs 20 lakhs today – a massive 68% return on investment ROI.

A mutual fund is nothing but a professionally managed investment scheme. It is run by an asset management company (AMC) which focuses on investing your money in industries or niches that are doing well. This money is invested in stocks, bonds and other securities. All AMCs are focused on multiplying the assets that they have by at least 2-3 times.

In order to do this, they employ data analysts and professional fund managers who have the right experience in managing and multiplying funds. This is truly a tough task as always being on the winning side is something that is tough to do as even the best fund managers do lose sometimes. The trick here is to pick a strong industry that you believe is poised for growth. Investing a steady sum over a period of time and getting a 68% ROI is something I would love to have.

BSE Institute Ltd (BIL) offers a Mutual Fund certificate course that has been devised by industry professionals. Thereby, you are get to learn and experience the essential aspects of  the Mutual Fund industry. BIL is located in the metropolitan city of Mumbai and its courses are taught strictly by professionals who are experienced in this field.

Pursuing a career in the field is also a good option, as even with a little industry exposure one can easily multiply their systematically invested salary, that can help you retire early and be rich!





Emotional Intelligence can help your company outperform competition

Posted on September 27, 2017Categories General   Leave a comment on Emotional Intelligence can help your company outperform competition

The most understated form of intelligence, one that is ignored and disrespected on a daily basis, is emotional intelligence. Emotional intelligence is the ability to understand the mental state, emotions and the mood of an individual or a crowd of people. Understanding people is important as different people react differently in different situations and being able to handle different people efficiently is truly a priceless skill.
Understanding the person in front of you is the first step towards being a good human being, marketer, employee, supervisor, salesman, etc. Each one of us understands that it is impossible to get your work done without convincing the person in front of you of your intentions and the benefit that he/ she will get from you.
Without emotional intelligence it is difficult for a person or an organization to move ahead and achieve its goals as it is people who run an organization. In an organization, it is the culture of a company that defines it and attracts similar kind of people, resources and clients. It forms the thought process of an organization. It tells employees how they are supposed to work, what their long term goals are and what they must do to achieve them.
With a well defined culture in place, you are defining the expected behaviour in a company, you are defining your goals and the path for achieving them. By listing everything explicitly, your employees know what is exactly expected of them and they can work together as a team to achieve their targets. This unity of purpose is what sets your company apart.
The best example for this is Apple. We all now they have some of the best professionals in the World working for them. How do they do it? They want to attract creative people who think differently and innovate. It is the culture of innovation that drives Apple. This allows it to stand out in a crowded market and attract many talented people who are passionate about innovating. Not just employees, the culture also attracts consumers to you.
In other words, an organization attracts or repels a certain type of crowd based on what culture is set by the senior management. This will not just attract or repel people, but also influence the kind of people who work here and give the respective output. Thus, understanding organizational behaviour is of utmost importance and cannot be ignored.
Emotional intelligence, company culture are both a part of Organizational behaviour- a subject thoroughly neglected in most business colleges. It helps professionals to understand their respective organizations and get the best results from their employees. Understanding how the entire workforce of a company behaves due to policies set by the senior management is difficult and it comes with experience at the senior level.
Another excellent way is through an integrated module methodology (IMT) that is used exclusively by BSE Institute Ltd (BIL). BIL offers a one year Advance Management program for senior executives who aim to lead a company in the next few years. The IMT teaches students using case studies. This allows students to predict and be prepared for outcomes even before they face it. This is a great way to understand organizational behaviour. You can learn more about the course here.
Reaching the top of an organization is difficult and it is not always possible to know every possible detail before you get the job. However, it is important for you to be determined to be better than what you were yesterday. By following this philosophy you will surely be a better professional and the best leader that the world has seen in a long time.

Why are portfolio managers the most well paid and influential investors?

Posted on September 26, 2017Categories Short term programmes   Leave a comment on Why are portfolio managers the most well paid and influential investors?

all have heard about the huge investments that some startups get from private individuals and High Networth Investors. How do these investors get to know about such opportunities? What gives them the inside track? How do they know about a good investment opportunity even before the rest of the word? In the world of investing, sinking your money in a stock/ business before it’s famous is what gives you a stupendous rate of return. The only difference between average investors and professional investors is that professional investors employ the services of a portfolio manager.
A portfolio manager is basically an investment banker who is continuously on the look out for great investment opportunities for his clients. The investment can be made in stocks, equity, bonds, businesses, privately held businesses, debt, debentures or anything else that gives a huge return on investment. These managers are considered to be some of the most influential people of the World. It is their ability to multiply money at a rapid pace that makes them invaluable. They are highly sought after throughout the world by businessmen, entrepreneurs, politicians and policy makers due to their network which lets them keep their ears to the ground for every financial and economic opportunity and activity that occurs across the world.
This is also why they are some of the most highly paid professionals of the World. An Indian portfolio manager’s salary can range from Rs 50 lakhs a month to over Rs 50 crores/ annum (including bonuses). Portfolio managers are some of the most hardworking professionals of the world. They easily put in 90 – 100 hours a week at work. This is due to them keeping an eye on not just their market, but also on other economies in different time zones. This lets them transfer the funds of their clients from one market (after it shuts down) to another market in another timezone (once its morning there).
Now all this may sound like a tough task for a normal investor beginning his journey in the financial markets, but it actually isn’t. All bankers and investors earn their stripes in the market in the same way – the hard way. You have to keep attending seminars on new concepts that you want to learn, you have keep meeting people of this industry, keep networking and most importantly keep in touch with all the people you meet. This is because one person can get an insight and understand only one industry at a time. However, by networking, you are able to multiply your knowledge and understanding about a 100 different sectors – all at the same time.
One of the best places to network and gain knowledge at the same time is BSE Institute Ltd (BIL). It is a 100% subsidiary of the Bombay Stock Exchange and it was founded over 2 decades ago to support budding entrepreneurs and investors who aim to make a name for themselves in the BFSI sector. It also offers a short term course for budding investors who aim to be Portfolio Managers.
One of the biggest advantage of working as Portfolio Manager is the knowledge that one earns while working. The salary is actually the second best thing. The reason is simple. Even with an average salary, a person can invest and re-invest in the market using the knowledge that they have and soon be an HNI in their own right. Best of luck.


Get the best of both Worlds by starting your career in New Zealand

Posted on September 25, 2017Categories MBA   Leave a comment on Get the best of both Worlds by starting your career in New Zealand

Finance is famous for paying some of the highest salaries in the World. However, some financial organizations are notorious for having a steep learning curve, which directly results in a tough work life balance. A steep learning curve is something that all professionals aim to have in order to grow swiftly. These organizations account for under 1% of the entire financial industry, but have been responsible for a tough image that the industry has received. For those who feel constrained and unable to keep up in the BFSI sector, escaping to other allied functions has been the easiest route. However, there is another option for them.
New Zealand is one of the most advanced and progressive countries of the World. It is an island that is strategically located to the South of Australia. Its location has for long made it an attractive destination for traders and manufacturers as it has the Americas to its East and the densely populated Asian and African continents on its West. Thus, it is an extremely attractive geography for businesses. Its Government had realized this and integrated itself into the global economic system many decades ago. This allowed it to provide a significantly higher standard of living for its residents. With a population of just over 45 lakhs, it has always struggled to have a huge skilled workforce that can fulfill the requirements that any business would need, be it manufacturing, consulting or any other service.
This has led to the country having a lax visa and an immigration policy that allows skilled professionals to migrate easily and settle in the country. Due to a low population and a highly developed economy, citizens enjoy the best of both worlds, .i.e. they are able to enjoy a high standard of living, without having to put with the hustle bustle that a major global economy usually faces. Thus, one can have a great experience of learning & working in New Zealand, without feeling the pulls and pressure of a living in a large economy.
Any economy, whether large or small, needs a robust financial sector to support and sustain the growth of its economy. New Zealand is no different and it has been welcoming skilled & experienced finance professionals for decades. New Zealand has also set up a host of venerable institutions and universities that support Financial literacy. Studying from these colleges is a good option for anyone looking to settle in New Zealand.
The University of Otago is one of the most respected University’s of New Zealand. It has tied up with BSE Institute Ltd (BIL) to offer a special 12 month Masters in Finance specially for Indian students. All students who successfully complete the course get a 2 year work search visa. The average salary for a student completing this course is $50,000/ annum.
Another advantage of working in New Zealand is that it does not have a history of changing its immigration laws suddenly or in a way that hurts the interests of professionals or students studying there. Building your career in one of the most influential economies of the world, one can surely make their career recession proof. Being at the right place at the right time is not a coincidence, but rather a well planned strategy that students can take advantage of.

Invest in every stock market of the World with Wealth & Investment Management

Posted on September 23, 2017Categories Short term programmes   Leave a comment on Invest in every stock market of the World with Wealth & Investment Management

Money never sleeps! This is absolutely true if you are an investment banker or if you are a HNI who has many people working for him. How do they do this? How is it possible? The answer is simple and it lies in understanding how the banks keep making money and how some families manage to stay rich for centuries together!

Investing is all about ensuring that your money keeps working 24*7. This is done by investing in the right stocks, bonds, businesses, etc. Your money is multiplied every second, every minute of the day, thus making you a richer person everyday. Most banks, corporations and HNIs try to ensure that their money is present in every market that is active, .i.e. it ensures that their money is present in all timezones – thus having some of their money getting multiplied at any point of time. Some investors keep transferring their funds continuously. They transfer the funds from one market to another as one closes for the day and the other opens for the day.

Thus, they are ensuring that their money has worked for 24 hours instead of the 8 hours a day that an Indian investor would get. This is what Venture Capitalists, Private Equities, Hedge Funds & Investment Bankers do. They do this to get the best return on investment in the shortest amount of time.

This is possible for the corporations mentioned above as they are the best at what they do and they have thousands of employees working for them. For investors and HNIs, this is possible as they have spent decades observing and studying the market of every country/ economy/ industry. Hence, they know how an industry or an economy reacts to various market scenarios. It is their extensive knowledge and superior skill that has been gained over many many decades. Also, an investor or an HNI will set up a family office comprising of a few experienced Investment Bankers (not more than 5-10), who will invest their money and keep a track of it for them. This family office acts like a mini investment bank, but all investments are made as per the requirements of the HNI.

We finally come back to the same question- how does an individual investor take advantage of this and get ahead of the rest? It is by being appropriately trained in the art of financial investing can one grow and be a better investor. One must keep doing refresher courses in order to learn new concepts and refresh your knowledge. A great place to begin learning is at BSE Institute Ltd. They offer short term courses on finance and investing, which are taught by professionals who are working in that particular industry. In other words, you get your pearls of wisdom, straight from the horse’s mouth! They offer an International Certificate in Wealth & Investment Management that helps you grasp all the necessary concepts needed to be an investor.

India is a huge country with corporations spread across the geography. How does one learn about the different industries and the opportunities that are available? Networking is the key. You may be focused on one industry but by being well networked you can keep your ear to the ground for good investment opportunities in many industries.

Investing is tough and just like any industry, becoming a champion takes years of practice. Be patient and getting rich is possible. Whether you think you can or whether you think you can’t – you’re right on both counts!!

Foreign Exchange – More important to the one trading with it rather than the country printing it!!

Posted on September 21, 2017Categories Short term programmes   Leave a comment on Foreign Exchange – More important to the one trading with it rather than the country printing it!!

A lot of us know that our country faced an economic crisis in the year 1991, but very few know the circumstances that actually pushed us to that stage. India had very little foreign exchange, which is required to import essential goods from foreign countries. The Government had foreign exchange only for financing purchases for the next 2-3 weeks. Our country reached this situation due to the unsustainable borrowings and a very high expenditure during the previous years. It resulted in very high interest payments to our foreign creditors. Another major reason for the crisis was that India had some of the most tough business policies, that restricted foreign trade. This prevented us from earning any foreign exchange. All this put together was a recipe for disaster, which it did become!

Foreign currencies are used mainly for two types of businesses. The first is for currency trading and the second is for international trade. The Forex market is highly regulated and is mostly operated by financial professionals who buy global currencies with the aim of selling it at a higher price. The rate of the currency is set by the demand and supply of a particular currency like a Dollar or a Pound. The major risk that a professional faces is that of market volatility. Markets can react in any way due to any news or event like – war, climatic conditions, diplomatic crisis, economic crisis, change in Govt, change in certain policies, etc.

Foreign exchange is very very important for any country in the World as without it, there can be no foreign trade and this may sometimes mean no oil, no petrol and no food products. Hence, it is very important for economies to manage foreign currencies well.

It is for this reason, foreign currency trade is highly regulated in almost all the economies of the World. Importers and exporters have to be very careful before signing any international contract as a wrong calculation may result in them losing pots of money.

Professionals who work on foreign exchange contracts need special experience. As foreign exchange rates keep fluctuating on a daily basis, the rate at which the contract has to be finalized is difficult to compute. Another challenge is the restrictions that some countries and commodities have. Certain items are banned for exports/ imports for some months of the year. This puts exporters/ importers at risk as the orders that they have received or placed cannot get processed and it puts them in a tough spot.

Certain countries are on a list of international sanctions and this makes trading with them very difficult. You may be able to trade, but getting your payments becomes difficult. Again, countries with a weak law & order are highly lucrative, but tough to work with. Getting your payments from these countries is difficult.

This is why understanding the international market & the Forex market is of utmost importance! Without a sound knowledge of the way these two function, it is next to impossible for professionals to earn profits. Another unforeseen risk is the constant change in the global financial rules and regulations of each & every country. These rules could result in a major change in the way an economy operates and thus result in your services as an importer/ exporter getting terminated!

In order to be well aware of the Global Forex Industry, one should keep his ears to the ground, network and connect with like minded individuals. One thing which many professionals do is keep doing courses that help them to stay in sync with the industry.

BSE Institute Ltd (BIL) offers short term courses for businessmen, industry professionals and students to learn about various financial concepts. It offers a short term course on Foreign Exchange Risk Management. The curriculum and concepts for each course are updated regularly, to ensure that participants learn industry relevant knowledge. You can learn more by clicking here.

Foreign exchange may is one of the most volatile markets to operate in, but like any business, it too has its upsides. The fact that there are major corporations and Millions of people who trade in FOREX and dabble in international trade, should be a good enough indicator of the riches that can be made by those willing to step in. Would like to quote an interesting thought to highlight my point here – “If you are not willing to risk the usual, you will always have to settle for the ordinary”. Let’s get cracking!!

Change is the only thing that’s permanent! Keep innovating to keep changing!

Posted on September 20, 2017Categories Advanced Marketing   Leave a comment on Change is the only thing that’s permanent! Keep innovating to keep changing!

Very sure that all of us listen to commentators talk about innovation on a daily basis. The key question that a lot of us have is how relevant is it to us in our daily professional lives? Why should we innovate when, your company may be earning a lot of revenue from the current portfolio of products. As a senior industry professional, how do we direct the organization in a direction to innovate and stay ahead of our competition?

Innovation is of 2 types – product innovation and process innovation. Product innovation is about inventing new products and process innovation is about better marketing/ sales/ management strategies. Indian companies have generally been good at process innovation and have relied on European countries for product innovation. However, it is product innovation that really matters as it is products which attracts consumers to a company.

Product innovation is taken very very seriously in western countries – especially in America. Two of the most important business leaders of this century – Steve Jobs and Jeff Bezos have put it beautifully as to why innovation is important.

“A lot of companies have chosen to downsize, and maybe that was the right thing for them. We chose a different path. Our belief was that if we kept putting great products in front of customers, they would continue to open their wallets.” – Steve Jobs, founder Apple Inc.

“I think frugality drives innovation, just like other constraints do. One of the only ways to get out of a tight box is to invent your way out.” —Jeff Bezos, founder Amazon.

One common philosophy of innovation that has helped them to do 2 diametrically opposite things –

  1. Get consumers to pay more for good products and
  2. Give the lowest prices possible to the consumers!!

Thus, innovation is one of the best strategy that keeps your company recession proof and can help you stay ahead of your competition.

Similarly, having a culture of innovation in your company can help you achieve a goal that you have set for yourself. Please note that innovating is not just about setting up an R&D division, but rather it is about having a mindset that focuses solely on making our consumers’ lives better. When people set out to innovate, the ultimate goal is to come up with products that creatively destroy existing products, .i.e. a new product that leaves the existing products obsolete and useless. This is a scenario that you want your competition to face always and it can only be achieved if your organization has a sound culture that promotes innovation.

Having said this innovation is extremely difficult to achieve and implement. You need some of thee best minds in the World to innovate. Inability to have competent engineers and product gurus is a major handicap and that can hinder your progress significantly.

The second challenge is implementation. Coming up with a good product is important, but understanding how one can fit it in the current portfolio is a major challenge. This is a tough call as that product may be your company’s main cash cow and replacing it with something completely different is tough.

The challenge here is that your competition can also come up with a similar product and its launch could push you out of the market. The opposite of this could also be true. You may launch this product and still despite all the research indicating otherwise, the product fails royally and it results in a huge loss.

In both the cases – it is the CEO who will be held responsible for not managing the situation effectively. There can be no correct answer for these types of situations. Every case will be different and has to be analyzed in a different way. However, one thing which can be done is to be prepared for such situations, by being updated about these situations. One must keep reading about these as it helps you to understand the impact of the actions taken by CEOs.

BSE Institute Ltd (BIL) teaches subjects about implementing innovation in its Advanced Management Program (AMP). It is a course designed for senior industry professionals of major companies. You can learn more about it on their site.

Innovation is tough work. Sometimes, people spend their entire lives without making significant progress and finally quit, only to see someone else use their research in an entirely different way. It is finally all about what your point of view about it is and how you manage to handle it. As someone aspiring to be a CEO, it is your eye for innovation that distinguishes between a leader and a follower.



Why is a Merger the best way for company to gain new customers

Posted on September 19, 2017Categories Short term programmes   Leave a comment on Why is a Merger the best way for company to gain new customers

Which are the biggest deals when with respect to corporate investments? We often hear about Million & Billion Dollar investments that companies receive from Private Equities and Venture Capitalists. These eye popping numbers are eclipsed by the IPOs that some of these companies have, but the biggest numbers are visible when a listed or a private company merges or acquires another company. The biggest such M&A is believed to have happened in China, with Shenhua Group acquiring the China Guodian Corporation for a staggering $278 Billion.

What this means is that the Shenhua group purchased a controlling stake in the Guodian Corporation for a $278 Billion and that the shareholders/ promoters received a huge payout of $278 billion after selling their shares to Shenhua. Can you imagine any situation where one transaction results in $278 billion exchanging hands?! The reason for this size and scale is simple. The acquiring company sees itself generating more funds and acquiring more customers after buying this company. There can rarely be any other logic for a M&A.

Scenario One: Building a company from the ground up is very very tough. It is difficult to come up with a good product, takes many many years to build a brand, get consumers to like it and then convert these customers to loyal consumers. After this people need to have a well planned strategy to go to the market and then spend on advertising & hope that consumers buy it. This is considering that you do not have too many strong competitors in the market.

When you compare this with a Merger/ Acqusition, an M&A is suitable as your investment in the other company is sure to give you the customers that you may or may not get by developing a new product and launching it in the market.

Second scenario: When you have a good product and you have some loyal consumers – but you are unable to break into newer geographies. There could also be a huge fragmented market with no clear leader, despite each brand having a set of loyal consumers. For this scenario, merging or acquiring another company makes a lot of sense as you are investing in your competitors and betting on them to continue with the strategy that has yielded results, instead of investing in competing against them (which may or may not yield good returns).

On acquiring a company, you get access to a well established brand, millions of customers and an organization that operates smoothly. This lets you build on your and the new company’s strengths, get better products out and increase your sales.

From the point of view off a CEO, a merger is a best case scenario as he is able to show increased sales and revenue for against an amount that was approved by the Board of Directors/ shareholders. This also gives them control over the resources, patents, etc. of the acquired company.

A M&A is a win-win situation for the company buying the brand, provided it happens at a reasonable price. Mergers and acquisitions are complex corporate deals that take a lot of time and specialist bankers, accountants and lawyers have to be hired to for the deal to go through. Despite getting everyone on board, things can still go wrong if you do not do your homework!

It is best to get some first hand information regarding M&As before you start the process. The best way to learn is to learn from the experts who have done this process many times BSE Institute LTD offers a short term course on M&As for senior industry professionals who wish to make a career in it or want to do an M&A deal. The course will be taught by senior professionals with decades of industry experience. Click here to know more.

A merger/ acquisition may sound like a tough task considering all the processes involved, but all good things are tough! The best way to overcome this is to learn more, read more and be more. Best of luck to all!

Spending more on CSR is good for getting more business!!

Posted on September 18, 2017Categories Advanced Marketing   Leave a comment on Spending more on CSR is good for getting more business!!

No, there is nothing wrong in what has been written in the headline. Spending money on CSR (Corporate Social Responsibility) projects does get a Corporate a lot of business! CSR activities are a way for Corporates to thank and give back to the society which has bought their products and helped build their organization. CSR projects are not-for-profit and are usually not related to the core business of a company.

Common CSR projects that we hear about are – building schools for children, providing basic healthcare facilities for the underprivileged, free skill training/ educational camps, educational scholarships for children, sports scholarships for children, etc. Every effort is made to enroll people who need society’s support to come out of the vicious circle of poverty. Most organizations appoint a CSR ambassador in order to spread awareness about their activities. All the work done through these activities is publicized in the media in order to ensure maximum participation of the masses.

The Corporate’s major aim is to get brownie points for all the work that they are doing and come out smelling like roses. However, with a smart strategy, one can easily go beyond and do more – get more business. There are some pockets of a country, state, district or a city that may have traditionally been weak markets for the company. No amount of marketing and smart sales strategy is able to crack the market for them and their competitors continue to rule these markets. This is where CSR activities can help a company make progress.

Most advertising/ marketing campaigns are based on tugging the heart strings of our consumers. CSR can be an unofficial ambassador for the company. When we promote a CSR activity, we are polishing our brand with all the positive vibes generated from the activity. A brand can easily appeal to the emotions of people and thus generate a sympathy wave for itself in that geography. People may become more open to looking at that brand, they will be more open to trying this new product due to these new feelings. All in all – this is exactly what marketing aims to do. Melt the hearts of consumers, get them to buy and make them loyal followers of the brand.

BSE Institute Ltd (BIL) is a 100% subsidiary of the Bombay Stock Exchange (BSE). It’s located at the centre of the country’s financial capital – Mumbai. It was started to provide industry relevant skills and knowledge to students and working professionals. It offers an Advance Management Program (AMP) for senior industry professionals who aim to lead a company in the next few years.

Thus, we are using CSR as a marketing/ advertising tool for our brand. CSR is used as a tool of the last resort when all traditional ways of selling to consumers has failed. This is when we move away from a brand’s strategy, to the tried and tested one of being a responsible company that cares about its consumers. These CSR activities are hits because your organization is now having a large budget specially for a certain section of the geography. The corporate and its team are more visible on the ground and this helps in strengthening the local sales team. The sales team gets a major morale booster & this helps them trudge the extra mile to get sales.

Most companies in the developed World use these activities regularly to connect with the local community in order to be in their good books and to ensure that their brand is always popular & relevant in the community.

There is another advantage of a CSR activity. People are happy to be surrounded by things that they know and are comfortable with. Once consumers develop a positive image of your brand, start liking your brand, etc. – it becomes very difficult for your competitor to occupy this position in the minds of consumers. A loyal consumer will stick to your brand despite the competition offering a better product. A consumer unwilling to try another product is the best sign of high brand loyalty.

Who would have thought that a CSR activity can actually be a great way to market your product/ brand/ services?! In the words of the great Issac Newton – “Every action has an equal and opposite reaction”. How true – a non-profit activity helps a company do exactly the opposite – earn profits!!