Monday, September 28, 2009
Some interesting acronyms
WIIFM –What’s in it for me
KISS (for the boss) - Keep it short and simple
KISS (for a friend) - Keep it short, stupid
KISS (for the boss) - Keep it short and simple
KISS (for a friend) - Keep it short, stupid
Sunday, September 27, 2009
Metaphorical references
One of my profs who teaches an elective on managing Finance Function has an interesting way of using metaphors to explain aspects of finance function.
An interesting reference was about 'dial tone'. When we pick up the phone, what one wants to hear is a 'dial tone' instead of a promotional message, however useful it may be. Similarly, for a CFO, the ability to maintain books of accounts and keep the company solvent is much more important than understanding the business and giving strategic direction.
The latest that he came up with was the restatement of an old proverb.
Old proverb: A man is judged by the company he keeps.
New proverb (his version): A CFO is judged by the company he keeps solvent.
An interesting reference was about 'dial tone'. When we pick up the phone, what one wants to hear is a 'dial tone' instead of a promotional message, however useful it may be. Similarly, for a CFO, the ability to maintain books of accounts and keep the company solvent is much more important than understanding the business and giving strategic direction.
The latest that he came up with was the restatement of an old proverb.
Old proverb: A man is judged by the company he keeps.
New proverb (his version): A CFO is judged by the company he keeps solvent.
Saturday, September 19, 2009
Hiccups
Just thought of sharing something different.
How do you arrest hiccups?
A simple solution: take a deep breath, hold it as long as possible.... and lo! no more hiccups.
Wish we could have such simple solutions to other hiccups in life :-)
How do you arrest hiccups?
A simple solution: take a deep breath, hold it as long as possible.... and lo! no more hiccups.
Wish we could have such simple solutions to other hiccups in life :-)
Thursday, September 17, 2009
Google's encounter with The Great Wall
In our International Business class today, we discussed the case regarding Google's China entry and how google.cn was restricted in their operations.
Back in 2002-03, Google.com was not functioning effectively in China unlike the way it was in the rest of the world. They wanted to enter the Chinese market (after all, who can ignore over 1B strong population and its associated revenue streams). However, Chinese govt did not allow google.cn (hosted in China) to function the same way as google.com. The former was restricted from showing some specific sites which were against the philosophy of the land. This was in direct conflict with Google's corporate objectives giving its customers unbiased search results. The US community & the Congress also reacted and questioned the restriction on the lines of 'freedom of expression'.
My argument is as follows: compliance with local laws is a prerequisite for any business to operate in a particular country. The case of Google has probably been exaggerated because of the profile of the company and country in question. To draw a parallel, protectionism, in principle also goes against 'freedom of expression' - so why don't we question the same thing in all those cases which are present even today in the goods and services market. We have probably accepted them since they have been defined and followed by developed nations.
Finally, it is just a question of the implicit power and dominance that certain nations exercise over others in the international community. That will decide the fate of businesses.
Back in 2002-03, Google.com was not functioning effectively in China unlike the way it was in the rest of the world. They wanted to enter the Chinese market (after all, who can ignore over 1B strong population and its associated revenue streams). However, Chinese govt did not allow google.cn (hosted in China) to function the same way as google.com. The former was restricted from showing some specific sites which were against the philosophy of the land. This was in direct conflict with Google's corporate objectives giving its customers unbiased search results. The US community & the Congress also reacted and questioned the restriction on the lines of 'freedom of expression'.
My argument is as follows: compliance with local laws is a prerequisite for any business to operate in a particular country. The case of Google has probably been exaggerated because of the profile of the company and country in question. To draw a parallel, protectionism, in principle also goes against 'freedom of expression' - so why don't we question the same thing in all those cases which are present even today in the goods and services market. We have probably accepted them since they have been defined and followed by developed nations.
Finally, it is just a question of the implicit power and dominance that certain nations exercise over others in the international community. That will decide the fate of businesses.
Monday, September 7, 2009
Insurance vs Assurance
Although people have been using these terms interchangeably, there is a subtle difference that exists.
An insurance policy insures a person or a property for a certain sum of money and claim can be made only IF the event (death or accident) takes place.
An assurance policy pays a certain sum of money on the death of insured or reaching of certain age. Assurance policies are applicable only to life. They are also investment instruments apart from being insurance.
Our finance prof in IIMA pointed out the paradox in India where we have LIC and New India Assurance where it should have been the other way round.
An insurance policy insures a person or a property for a certain sum of money and claim can be made only IF the event (death or accident) takes place.
An assurance policy pays a certain sum of money on the death of insured or reaching of certain age. Assurance policies are applicable only to life. They are also investment instruments apart from being insurance.
Our finance prof in IIMA pointed out the paradox in India where we have LIC and New India Assurance where it should have been the other way round.
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