THE NAPOLEON OF MODERN BUSINESS

Posted on September 24, 2019Categories Entrepreneurship, Executive Courses, MBA   Leave a comment on THE NAPOLEON OF MODERN BUSINESS

“Of all the things I’ve done, the most vital is coordinating those who work with me and aiming their efforts at a certain goal” – Walt Disney

As a child, you might remember the times you were chosen to be a leader. It needn’t be for a huge event. It could even be the time you were elected as the captain of your cricket team while playing.

How did you feel in that very moment? I remember how I felt. I could feel a sense of responsibility on my shoulders, to make sure my team performs well, and wins the match.

THE IDEAL LEADER

People often look at a leader and say that he/she is a born leader. Do you really think a person is born with all the qualities to be a leader? The answer is ‘NO’.

Although, yes, there are some people who are born with certain qualities that help them lead, but in the end, it is all about how eager you are to learn from your mistakes and bounce back.

How effective are you when it comes to observing the people around you. There are people who go through different experiences, which makes them behave differently. These help a leader understand the differences that exist among people. It is a vital experience for a leader’s growth.

Basically, a leader is someone who is willing to learn and grow through experiences and be the better version of himself all the time.

We as human beings tend to be different. We have different personalities, habits, interests, etc. But when it comes to leadership, there are certain values that you need to inculcate in yourself. This includes treating people the right way, making sure they are motivated at all times, working towards a common goal and being available to your people.

This will make sure that they look up to you every time they are in trouble, and most importantly, they will have your back when required.

During the tough times, you will be the ray of hope for them, who can guide them from the point of struggle to the point of victory. This is the essence of any leader and something every single employee will expect in his superior.

THE IDEAL BUSINESS

A business during its early stage is like a baby. You need to be very careful and conscious about your decisions because the decisions that you take in the start will make sure how strong your roots are.

One of the common problems faced by a business is when they start hiring. When an employee is hired, it is necessary to make sure that the person is well aware about the goals, the values and cultures of the company. This will give him an idea as to how he should work, and the importance of his contribution. The employees will lose motivation if they feel that there’s no clear idea for the business.

Moreover, most of the employees who join a company hope to be a part of a business which helps the world. Therefore, the leader of the organization is expected to align the business goals (monetary) with things that have a positive impact on the world.

This is a good point to speak about in “Corporate Culture”. Culture is not something the employers or leaders make, it is something that the employee witnesses every single day. To ensure a positive culture, it is important to make sure that the right people are hired for the right jobs. This ensures that the people working are competent and are really interested in what they are doing.

Similarly, communication is something that needs to be focused on. A lot of the things discussed between top executives never reach the employees. Transparency in communication helps maintaining a positive culture in the organization. An organization which follows these values can feel the positive atmosphere around itself.

This can be done through one-on-one session which will make the employee comfortable in giving out their opinion. You could ask for feedback on the current culture surrounding the work and suggestions to make it better. A thorough and an honest dialogue will inculcate a sense of inclusiveness among the employees, and this will motivate them to be better.

HENRY FORD

I’ve read about some of the most famous business leaders but none of them have impressed me as much as Henry Ford. There’s something about him that makes you feel that he’s one of the most successful leader.

Ford wasn’t just someone who used to think about the end consumers. He valued the workers at his firm as much as he valued any other person. He exemplified this by paying a good sum of money to his workers so that they could afford the cars that they make.

He was also a firm believer of the fact that you should surround yourself with like minded people who would motivate you to be better and push your limits. He made sure he hired some very motivated personnel who would work hard for the firm, and believed in his vision for the company.

The man was the epitome of leadership, who valued the small things and knew that these were the things that would help his business eclipse the rest.

THE DIGITAL AGE

The digital age or the modern age is moving and changing rapidly. You can get queries and opinions through digital means at any given point. From stakeholder queries to employees, you’re answerable to each question. This calls for you to be ready with the answers at any given point.

The decisions you take must be taken after a clear thinking process and should ensure that there’s a genuine reason for taking a particular decision. Communication here is the key. A smooth and convincing flow of words will establish the fact that you have a better idea about running the business.

This is where an in depth knowledge in history, human interaction and philosophy can do wonders for you! This is extremely important because no matter which business you are part of, you’ll always have a team with whom you’d have to interact with.

The people in your team need to be understood and trained accordingly in order to get the job done in an efficient way. A peoples man will always be able to get the work done from his team and at the same time maintain a positive attitude.

CONCLUSION

The modern world of business is a very different landscape from the past. It is constantly evolving and this calls for the leaders to be versatile. No one is born with all the qualities needed to be a leader. However, it is the ones who easily accept changes who reach the top of their industry.

Normal people become great leaders by focusing on areas that are ignored by others. This is what gives the great leaders an edge over the rest, which results in a positive impact on the whole business.

BSE Institute Limited and IIM Lucknow offer the Advanced Management Program, which helps you become an ideal leader of a modern business. Be the leader your troops need to win the business battle!

 

Data is more valuable than gold!

Posted on September 16, 2019Categories Algorithms, Analytics, Artificial Intelligence, Blockchains, Data analytics, Digital currency, Executive Courses   Leave a comment on Data is more valuable than gold!

This is not an exaggeration, but the truth. With Data Scientist salaries touching Rs 22 Lakhs/ annum, it’s safe to say that this industry is now one of the highest paying in the world. Data Analytics, is now a solid division in any MNC – just like HR, Finance, Sales and Marketing; but maybe more important than some of them. The question is, are you in place to earn the big bucks?

What is Data Analytics?

According to investopedia.com, data analytics is the science of analyzing raw data in order to arrive at conclusions about market information.

It is used by companies that rely on data for arriving at decisions. Once data is extracted, these metrics are analyzed to find out patterns and insights which can be used to bring in changes and exploit the opportunities available to benefit a business.

Why has data become this important?

Data reveals certain unexpected trends and a completely new insight that could help your business exploit chinks in your competitor’s armour, market requirements or customer needs that you may have never heard of. This will directly impact your sales, revenue, market share and profits.

It could even find certain correlations between two data points which was previously hidden. Ex: A decrease in prices could actually result in a drop in sales in certain geographies.

This is why data is considered an asset and the most valuable resource. A business always tries to expand and find the hidden potential of a market, and analytics is the catalyst that can help it do so.

To sum it up, all you need to remember from a business point of view is that it can help you in –

  1. Competitive advantage
  2. Helps provide better customer service
  3. Increases profits
  4. Discover new markets
  5. Product development

The size of data in our hands and its usage around the world is beyond imagination. All you need to know is that the big names such as Amazon, Starbucks, Netflix, Coca Cola and a lot of other big names have gone forward with analytics and earned big!

Let’s take the example of Coca Cola.

In 2009, Coca Cola introduced mix and match machines that had 150 sparkling and still beverages in them. As a consumer you could blend the flavours of your liking and make your drink. These “freestyle” machines were backed with Artificial Intelligence which found the flavour which was in demand. There were 40,000 of these machines in the U.S which served over 14 million drinks per day!

After dispensing a lot of drinks, Coke got the answer they were looking for. Cherry was the flavour which had the highest demand and this led to the birth of Cherry Sprite and Cherry Zero. This was a major boost for a company which has been criticized for the usage of sugar in its cola drinks.

Coca Cola today uses its data for a variety of reasons. One of the most common things is mining data through social media handles and using it to create ads!

Conclusion

If you’re in business and you wish for a competitive edge over your rivals, look no further – data analytics is your answer. It is time you invested in it before its too late.

BSE Institute and IIT Madras offer you a Business Analytics Program.

Invest in what is already the biggest resource on this planet and be responsible for building the future.

Build your wealth, Build it with wealth management

Posted on September 9, 2019Categories Education, Executive Courses, Financial Markets, Global finance, Indian Economy, Investment Banking   Leave a comment on Build your wealth, Build it with wealth management

The money that you earn is what backs you financially throughout your life. The problem is when you realize that the money earned is not sufficient enough to cover certain long term/ short term needs. This is exactly why you need to plan for multiplying your income.

Wealth management is your master plan for building multiple sources of income that can keep you comfortable throughout your life.

In order to have a well-planned wealth management system at your disposal, individuals hire wealth managers who assess their income sources and their financial goals.

Wealth managers act like CFOs for individuals. A wealth manager will start by developing a plan for his client which will involve steps to increase his wealth keeping in mind his risk taking appetite, goals and his financial situation. Once this is done, the client and the manager meet periodically to make changes and update the portfolio as required.

Let us suggest you a few tips that could act as the backbone of your wealth management plan.

  1. Spend less than you earnThis has to be the most basic and obvious tip you’ll ever get. The reason we mentioned this is because if you are planning to start managing your wealth, this is where you need to start.
  2. Invest only after proper research- There are various investment schemes for you to choose from. It is very important that you have thorough knowledge about the scheme you wish to invest in. After all it’s your hard earned money that’s at stake. One of the most common mistakes committed are by people who listen to the words of their friends or people they know personally. Never have blind faith in anyone when it comes to investing.
  3. Diversify your investments- In the words of Warren Buffett, “never test the strength of the current with both feet”. The reason being that the market is a volatile place filled with unpredictability. One of your investments might be giving great returns for years, but that doesn’t mean you should invest all your wealth in the same place. Diversifying your investment will keep you on the safer side at all times and ensure that market fluctuations don’t mess your whole portfolio.
  4. Be patient- Investing is no doubt a thrilling game, but it is important that you be patient at all times. The nature of market is such that it could test your patience and cause frustration. Believe in your investments and keep monitoring them. Always keep an eye and observe the investments that are performing and non-performing and accordingly shuffle your investments.

We have spoken about wealth management from an individual’s point of view, but it’s certainly not that narrow. It is extremely important from a business’ point of view to keep an eye on managing its income, expenditure and planning for the future.

A fine example now in the news, is the story of Micromax. Micromax is a consumer durables company that started off by selling mobile phones and now is getting into selling fridges, washing machines and electric vehicles. From the time they were valued at Rs. 21,000 crores in 2015, to dropping to a valuation of Rs. 1500 crores!

Many Private Equity investors are now selling their stakes in Micromax for heavy losses. These PE players are selling their stake for Rs. 93.65 crore to the promoters, who will now hold over 85%.

So why are investors shifting their money away from Micromax, when the company still has a lot of sales. The reason is that there are many Chinese brands which have flooded the Indian telecom market.

Chinese brands have changed the entire mobile phone market in India. These firms introduced the latest mobile phones, advertised heavily and built a solid distribution network in the market. This put many established players like Micromax on the back foot and they have struggled to adapt ever since.

Venture Capitalists and Private Equity Investors are companies which have raised funds from other HNIs, banks and other financial institutions. They come under tremendous pressure to pull out of loss making investments. PEs and VCs have to make money and reinvest the profits in other businesses. The managers running the funds get paid only when they earn profits. By staying put in a company with a falling valuation, the chances of earning, are quite low.

This is what successful investors do. They move their money from one investment to another – multiplying each time they move it. That’s how they build their wealth. This is how HNIs grow their wealth, but remember this – they all begin at the same place.

Conclusion

Wealth management is one of the most basic financial information that a person needs to know. It doesn’t matter if you’re from a different background, because we all earn money and our goal is to multiply it.

BSE Institute’s Executive Program in Wealth Management offers you an opportunity to manage your money with ease. This is your chance to be the person who doesn’t have to worry about money, because money to work for you!

Building with bonds

Posted on September 4, 2019Categories Corporate Finance, Education, Financial Markets, General, Global finance, Indian Economy, Investment Banking   Leave a comment on Building with bonds

Current account deficits, budget surplus, fund raising, etc, are all big terms which we hear about Governments during budgets. Have you ever wondered how a Government earns revenue when it plans to build bridges, roads and ports?

The Government just cannot print money when it plans to spend! It needs to have money it receives in the form of taxes for planning infrastructure expenditure, social sector spending and to pay employee salaries. A big majority of the income earned by Governments is via taxes – income tax, GST, export and import duties, etc. However only income earned through these is not sufficient to fulfill all budgeted commitments.

This is why Governments also raise funds through financial markets, primarily by selling long term bonds to investors. A bond is basically a loan taken from banks, Private Equity funds, Venture Capital Funds or anyone who has the capacity to lend large sums of money. The investors are paid a certain rate of interest for investing in these bonds.

An advantage of these bonds is that an investor can easily sell these on the bonds market and get his investment and interest almost immediately after purchase. Therefore, an investor can literally invest today and get a great return on his investment in a matter of few hours. Also, the chances of a Government defaulting are very very low, as a country can simply print money in order to meet its debt obligations and hence there is no risk of any debt default.

This has been the greatest attraction for investors, as it’s possible to multiply your funds immediately, without any risk of default.

In India, we have different types of bonds which are as follows:

  1. Government Bonds- These issued by the central government with mandatory periodic returns. The government borrows money to fund roads, schools, etc. These are also known as ‘sovereign debt’, and a good option for people with a low risk appetite.

 

  1. Corporate Bonds- These are bonds used by large financial corporations. They tend to give better returns but, there is a possibility of default as it’s corporates who issuing the bonds. A company’s assets are usually tied as collateral against bonds.

 

  1. Municipal Bonds- These bonds are issued by the state governments or the local governments in order to raise money for the government activities. They need to have a maturity period of 3 years and are backed by the government, and hence are safe for investors.

 

  1. High Yield Bonds- These are bonds rated below investment grade. They offer a high rate of interest because it runs a higher risk of default. It is usually issued by small companies who have just entered the market.

 

  1. Public Sector Bonds- These bonds are issued by Public Sector Concerns, which are companies, owned by the Central or the State Government. Therefore, the risk of default is again very low.

 

France, the second largest economy in the Euro zone is one of the latest European countries to issue negative rate of interests on its bonds. The other few notable names are Germany, Switzerland, Netherlands, Austria and a few others. What this means is that an investor is paying these countries to take his money! This situation arises, when investors don’t find other safe investment option and are basically buying bonds to safeguard their funds from taxes.

It’s quite a turnaround for the European Union, which in 2008 was on the brink of collapse, due to a possible debt (bonds) default by Portugal, Ireland, Italy, Greece and Spain. From sky high bond yields to getting paid for accepting investments – its’ quite a turnaround!

As the Euro Zone countries share the same currency, they have only one bank, .i.e. the European Central Bank (ECB). The bank’s Governor is nominated by taking all Euro zone countries on board. But, here’s the catch! These countries cannot print as much money as they wish to as no single country has any control over the central bank. Therefore, no country can spend without any worry and investors run the risk of facing real defaults.

This was an unseen circumstance for investors and the Governments. It resulted in severe budget cuts for the countries mentioned above in order to have an economy that can pay for these bonds. This resulted in a severe recession across Europe and in effect the World.

Apart from the Euro Zone crisis there have been very few instances of countries defaulting on their bonds. Thus, bonds are a great way for investors to earn money safely and quickly.

Conclusion

An investor is blessed with multiple investment options to choose from. It is time Indian investors start taking bonds seriously. They are one of the most underrated forms of investment.

BSEVarsity.com offers you a Certificate Program on Bond Markets to give you a better understanding of bond markets, and help you diversify your investments.