No Money - More Honey

Could you save a constant amount today to try and reach an inflated adjusted goal tomorrow? "yawn"... lets take a example.. lets just say Mama - who needs to meet a 20 year goal to plan for his daughter’s education, which would cost 4 lakhs today, but 8% inflation would cost him Rs. 18.64 lakh after 20 years.

That will take a monthly investment of Rs. 2,046 per month, assuming you can get a 12% return per year.

But if Mama starts after 10 years, he’ll have to invest Rs. 8,400 per month. Much higher, you think? Yet, with 8% inflation, that is worth just 3,890 worth of today’s money. Not quite as much higher – and probably just as affordable

But then, you are likely to get salary hikes, at least to the same level as inflation. If you don’t, you’re retired  in which case you’re not saving. So let’s assume that you save a constant percentage of your income even though nowadays, you save a much higher percentage of your salary as you grow older. So the amount you save per month increases every year, by about 8%, the inflation rate you assume your expenses grow by.

That means to achieve this goal of 18.64 lakhs in 20 years, with an average increase per year of 8%, you need to invest just Rs. 1,100 per month.
And then you may decide that heck, I’ll pay in only for 10 years, and let the funds grow for the remaining 10 years. For that, you only need Rs. 1,826 per month.

Your burden increases every year, but so does inflation, and in that sense, your income. The question, rightfully, is: how can you calculate the total money you need to invest for a certain goal, with an “inflation linked investment” pattern?

alumni
w

Hold those floating rate plans

The Reserve Bank of India in its quarterly credit policy meet raised repo rates to 5.75% and reverse repo rates to 4.5%.

Repo is what banks pay to borrow from the RBI and Reverse repo is what they get when they park excess funds at the RBI.

Over the last two years we have only seen money parked with the RBI, meaning the system was flush with money and banks weren’t quite lending. From May this year, after the 3G and BWA auctions, banks have started to borrow from the RBI instead, an order of 60,000 crores every day. (Repo means they have to place high quality securities with the RBI which they buy back – or “repurchase” – the next day or in a short period.)




The differential of 0.25% costs the entire banking system a miniscule 35 lakhs a day (0.25% of an average 50,000 crores) which is a sort of rounding error, but it’s not what they do anymore, it’s what they intend to do.

Even though liquidity is tight, bank margins are wide,so there is a cushion. But the interesting question is: at what point does the credit system break the back of inflation? RBI says it expects 6% inflation by year end.
 
At a time when inflation’s gone through the roof, so to speak, we try to assuage ourselves saying that things will get better because, look at 2008. But oil prices were at $140 then, versus $80 today. Inflation fell because oil prices fell to $30, and alongside we did see corporate growth come down (but India’s growth didn’t fall too much, remember)
 
I don’t think it’s a supply issue that’s driving inflation. Supply problems would affect availability and literally everything, from fuel to CNG to tomatoes is available. If this is a demand problem – too much demand – then this piddly 0.25% is not going to help. In that case, I expect another policy rate increase as early as end August – bigger than 0.25%.
 
Inflation indexes will change. The WPI will have a different series with the base year as 2004-05, but we don’t know from when. Food’s weight should go down, so inflation must moderate just looking at things that way.
 
alumni
w

So much to learn from World(cup)!!!!

I really enjoyed following Soccer’10, not to watch my favorite stars on the field instead to take note of surprises that every match offered right from beginning of the league
First, the likes of England, Portugal and France walking out of the league followed by hot fav Brazil, on the contrary, teams- Uruguay, Netherlands finding a place in the quarters in something commendable.


This world cup has made me to think, think and think. One of the observation, which I could derive is that the teams which played as a 'TEAM' succeeded. There was so much expectation from Lionel messi; unfortunately, even he couldn’t turn around the match against German’s. They (Germans) strategized their game, played to their strengths and most importantly played in unison and end result; 4-0. This is just an anecdote of many such matches which had so many unprecedent outcomes.


What so special in this? …if watched as a game then nothing great about this, but if we go a step further and introspect, there are definitely some lessons, lesson’s about benefits of performing in a team, for MBA grad’s like us, who would get into the corporate world in few months and perform not as individuals but as members of teams, whose goal is to perform and deliver towards the corporate mission.


Off late, there has so much emphasis on this 4 letter word “TEAM” by corporate at large, right from Richard Branson to Steve jobs; N.R. Murthy to Azim premji, all are speaking of this 4 letter word. Is it really so powerful; I believe, it is!!...what do you think guys???


While you ponder, let me leave you with a quote from Michael Jordan ‘Talent wins games, but teamwork and intelligence wins championships’


Mervyn

W-I-P (inventory)

Propagator

Apple’s chain

There has been lot spoken about Apple’s innovative products reaching marketplace and making its competition redundant. I too agree and respect the product line it offers its customers and one of them being the recent launch of iPhone4.

It’s been reported that the company and its wireless carrier, AT&T, booked more than 600,000 pre-orders on June 15 alone, causing a suspension of sales because of the sheer volume of activity. The number is the largest Apple has taken in a single day, ten times higher than the previous iPhone3 launch last year, causing a sellout of all designated product allocation.

This kind of overwhelming response is something every company would love to achieve. Here I start to ponder over a dilemma; whether innovation and technology can only be sufficient to serve the target customers.

In my opinion, it’s, NO. The company should also focus on itself as well as it's suppliers supply chain. In Apple’s case, suppliers/ contract manufacturers are based in Asia, especially in China where there is now severe labor issues that are surfacing, and since Apple has limited supplier base, has it introduced too much risk in too few value-chain partners?

I believe Apple has, and I predict more snafus to come. The signs are unmistakable, and the pressures are building. Good process and the best technology can only take you so far. The rest comes down to the combined supply chain capability of partners. In the coming weeks Apple will have to demonstrate what being number one really means


Mervyn

W-I-P (inventory)

Propagator

Innovation as a competitive advantage

Without new ideas, businesses and individuals will never succeed. How many times have you had the Eureka moment only to find that the idea has slipped away? It’s amazingly annoying to find that your brain just can pull back that idea, and you will always feel that was the idea that will make you money.

Demands for organizational innovation and technological advantage are increasingly crucial for the firms to remain competitive. Most firms face serious competitive challenges due to the rapid pace and unpredictability of technology change. Global strategies are dependent in large part on accelerating the speed at which innovation reach the market place. These conditions have led management theorists and practitioners alike to call for more creativity in management practices, products, and production processes that a firm employs.

Several common themes emerge repeatedly across studies to suggest that the link between innovation activities and competitive advantage rests primarily on four factors.

- One, Innovations that are hard to imitate

- Two, innovations that accurately reflect market realities

- Three, innovations that enable a firm to exploit the timing characteristics of the relevant industry

- Lastly, innovations that rely on capabilities and technologies which are readily accessible to the firm

As the global playing field becomes increasingly level; Logic, linear thinking and rule-based analysis-- will remain important, but are no longer sufficient to succeed in the global economy.

One of the biggest impediments to innovation continues to be the "constraints of the product development lifecycle". Recognizing that product development cycles are longer than recessionary periods, and any opportunity to shorten the development life cycle could mean real rewards.

My take: Innovation is gradually moving from an occasionally interesting sideshow that is not focused and not strategic, to becoming a key focus of senior executives as they realize that only innovation can help the firms continually grow and differentiate. Innovation is rapidly becoming a capability or enabler that strengthens and focuses the corporate strategies, and should over time become a key enabler to many corporate goals and strategies

God Speed..!!!

Mervyn Lewis

W-I-P inventory

Propagator

Grab the Talent!!

In these days of globalisation and the ‘’competitive environment’’, change is the only constant. Surely, now the tides are turning in the corporate world, gone are the days where a person would join an organisation in his early age and stay on servicing that company till retirement. Today, young professional hop jobs especially during the first 4-5 years of their work life. Times have changed and now people cannot be rooted at one place for long time. It is therefore now proved, that with the advent in technology and knowledge, talent is on the hot seat. Now it’s for one who possesses it dictates and not the one who pays for it.

As Jack Welch says: "Any strategy, no matter how smart, is dead on arrival unless a company brings it to life with people—the right people."

Therefore, now the challenge is how to acquire the right talent and even bigger question is how to retain best talent? While there is no set map or wonder formula to manage talent, the trick is to locate the right talent in the organisation and encourage it. As Tom Friedman puts it across, that in order to compete in this ‘’flat’’ world, one needs to have (well) rounded people. Becoming a well rounded talent requires immense learning and development of skills. Organisations that aim to achieve that, must invest time and energies towards creating enriching workplace environment if they wish to attract and retain the high calibre talent.

It is now the duty of the global HR community to work upon building talent management strategies thereby nurturing the talented workforce. Talent must be spotted, well nurtured and most importantly preserved in the healthy environment.

Right talent for the right job – is the new mantra for organisations.

By Haider Jasdanwala
Proud Trendsetter

No need to say good bye

We 30 "Trendsetter" or as Sunny called us 30 beads of necklace are parting ways after one year of fighting, night outs, sweat and blood and above all friendship for life. Its a season of saying bye to each other. Some of us are elated that they are joining the corporate world while some of us are still in the process of finding the job. While it has already started one by one people are leaving this place and carrying on with life and saying "GOODBYE" to each other . I feel "No need to say Good bye" as we are not parting for ever we are and we will be together for ever , not necessarily physically but emotionally. In this moment of parting season a beautiful poem from "The Chronicles of Narnia " (movie)

It started out as a feeling
Which then grew into a hope
Which then turned into a quiet thought
Which then turned into a quiet word

And then that word grew louder and louder
Til it was a battle cry

I'll come back
When you call me
No need to say goodbye

Just because everything's changing
Doesn't mean it's never
Been this way before

All you can do is try to know
Who your friends are
As you head off to the war

Pick a star on the dark horizon
And follow the light

You'll come back
When it's over
No need to say good bye

You'll come back
When it's over
No need to say good bye..

Now we're back to the beginning
It's just a feeling and no one knows yet
But just because they can't feel it too
Doesn't mean that you have to forget

Let your memories grow stronger and stronger
Til they're before your eyes

You'll come back
When they call you
No need to say good bye

You'll come back
When they call you
No need to say good bye.


so friends keep in touch , luv you all

Paritosh
Proud to be a Trendsetters