This is the first book which I read an autobiography in my life. I am not a perfect person to review this book, because I am the biggest fan and smallest book reviewer.
Monthly Archives: November 2010
Warren Buffett: Panak Kadavul is a Kizhakku publication book. The book wrote by Mr.Chellamuthu Kuppusamy.
When I was searching a book call snow ball an autobiography of Warren Buffett in recent book fair in Colombo, but unfortunately I got that book. Therefore I brought this Warren Buffett: Panak Kadavul to get a basic idea about the Warren Buffett.
The book is Constance of 15 chapters with the pages of 189.the book price is INR 100 or LKR 350.
This book has changed my real thinking about the share market. Especially the Warren Buffett financial strategies and investment predictions are gratefully explained. Till I read this book, I thought the share market is for buying and selling shares and made quick money. But this book changes my thought totally and advice me so many factors which should be consider before investing in share market.
And the writer is well experience in share market is explaining though this book. The heading of each chapter is well organized and very plan to be written. It’s had proper way of explanations and description about Warren Buffett.
When a person start reads this book will get a total picture about the Warren Buffett investment strategic and techniques. And the way he explain with his small stories which Warren Buffett mention to his shareholders letter added value to this books to be read.
In over the book is greatly added value to me and I focus to buy shares for long term perspective than a short term.
No one can match to Warren Buffett. But anybody can be fan of him.
Specially thanks for by Mr.Chellamuthu Kuppusamy and Kizhakku publication to produce suck a good book like this.
Defences Against Takeover bids
When a company bid to a target company the following techniques use by Target Company to against their takeover bids.
Before the bid
• Effective communication with share holders
When a target company gets to know there are going to bid by other companies, the target company will start the effective communicational with shareholder to not to sell their shares to others.
• Poison Pills
This is where the target company issues bonds or preference shares which can be convert as an ordinary share at the takeover points. This technique is use to threat the bidder to spend much more for acquiring the target company.
• Shark repellent super majority
This is usually happen to the target companies. This is where change articles of association to very high percentage of shares approve an acquisition or merger.
Convert the 80% of share approvals to acquisition or merger.
• High assets value
Revalue the fixed assets value and show the companies true value to the acquirer.
After the bid
• Rejection letter
When a target company received the bidders offer document, the target company must reply to the share holders within 14 days. The letter should Constant the position of the organisation and what are they going to do feather.
• Profit forecast
The target explains their profit forecast to the stakeholders and says their expected returns in future as this.
This forecast should be a viable and achievable to the company, if not its create the company value feather less than now.
• Attacking to bidder
This is where typically evaluate the bidder’s strategies and the financial source and attack back to the bidder.
• White Knight
Bring a favourable investor or a partner to counter bid to the original acquiring company.
• Regulatory protections
This is where the target company seeks the government intervention to the takeover bid and announce as takeover is not possible due public interest.
• Advertising campaigns
Create a high level of advertising against to takeover bid and use that advertisement to show their power to all stakeholders.
Introduction about the books
Book is published by the Kizhakku. The Kizhakku is a well-known brand for the book publishers for self development books and knowledgeable books. As fan of their books I fund a book of “Iraq plus Saddam minus Saddam”. The time I choose this book I was getting ready for an exam, so I said myself read this book only when you finish studies and having a time.
But fortunately I finished this book within 3 days, because of the writers made this book to be read interesting. Therefore I should say my best wishes to Mr.Pa.Raghavan for write this book to make us to be known well about Saddam Hussein better.
Review of Iraq plus Saddam minus Saddam
The book is containing a 21 chapters and 3 additional reading. Each chapter is well explained and makes readers to be interesting. The whole chapters are explaining about Saddam Hussein characteristics and the strategies follow in his life time and his powered period.
The book stays in an independent position and explains about Saddam Hussein’s positive and negative Habits. How he handle USA and USSR in sometime, and his government policies and the leadership skills.
And the writer talks about more on Saddam Hussein good Habits and make his as a role model. But whether if he [writer] brainstorm or not, I became a biggest fan of Saddam Hussein after reading this book. I made Saddam Hussein as my profile photo in facebook. But the writer wrote about his other side as well of oil bribes and the killing their own people for self benefits.
But whatever it is, an USA involvement is Iraq made Saddam Hussein as a hero, who against to USA’s Military operations.
But I learn a following from this book [Saddam Hussein],
• Leadership skills,
• Delegation of the power,
• Management skill of public and staffs,
• International business policy making,
• Quick decision making skill,
• Dedication to country,
• The ways to handle foreign countries delegations,
The books is very much value for money [INR 100 OR LKR 325], compare to get a maximum knowledge of about the Saddam Hussein and Iraq. I suggest this book for all level of students and professionals.
I strongly suggest to public the Kizhakku Publication books are more satisfactory for people who concern to knowledge gaining.
Short and sweet of this book
The book is explain3 main topics,
How the Iraq was before Saddam Hussein taken in Power
The changes after Saddam Hussein taken Power
The political stability in Iraq
Educational development in Iraq
Infrastructure development in Iraq
Other facilities in Iraq
Same time political violence in Iraq.
After Saddam Hussein vacate from his post of president of Iraq.
The difficulties they faces
Loses of businesses
Lack of political stability
Lost of oil resources due to war
Public Private Partnerships
The Public Private Partnership is where a government organization gets together with private partnerships.
The private partnerships can be stoke exchange, or joint ventures, venture capitals, organizational Partnership and any other private source of funds.
This partnerships are creates a strengths and weaknesses.
Advantages or Strengths
Advantages or Strengths for Government entity to jounce hand with Private Partnership
This private partnership will be a source funding to government origination.
High technology involvements
This leads to introduce new technology to be economic and efficient
The private partnerships may come with the excess of cooperate knowledge, which will success their operations.
Improvement of the service quality of staffs
The private partnerships will expect to improve the staff’s efficiency, and reduce the operating cost.
Advantages or Strengths for Private Partnership to jounce hand with Government entity
Easy to enter the market
The government support will help to enter the market in the country or specific business industry.
Special tax exemptions
For the government partnership some governments are allows the tax exempted for certain time period.
May support to bank loans at special rates
If the government jounce hand private partnership for knowledge, than government provides special bank loans with lesser interest rates.
Depend on the brand name ownership this partnership will help to develop their product or service widely.
Disadvantages or Weaknesses
Disadvantages or Weaknesses for Government entity to jounce hand with Private Partnership
Lost the purpose of public entity,
With the private partnership the public sector will lost their main objective of serving to the general public.
Misuse of the government supports
The partnership company can be misuse the government support for some of their other businesses.
The influence of private partnership of setting the prices,
Disadvantages or Weaknesses for Private Partnership to jounce hand with Government entity
Too much of political involvement
The too much of political involvement will lead to unsuccessful of the business entity.
Government policy changes and the regulations
After sometimes it’s difficult to be operate with new policies and the regulations passed by government
The operations should have a proper mission and vision to be continuing. It should not effect if the government changes.
Rules and regulations for taken back their investment or their profits.
The rules and regulations should be understandable to how to exit from the partnership or how to take their income to their country.
May lose of brand name, if the process is fail.
If the project is fail, the private company may have chances to lose their brand name in their home market.
Merger define as “where two companies have agreed to integrated operations and as emerged to a new company together”.
A company A and company B merger and create as a new entity of company C. in the same time company A and B also Exiting their businesses.
The acquisition is where to define as “this is where a company[X] purchases another company[Y] and be identical as same as before[X]”.
When company X Purchases the company Y and be company X. after the Acquisition there is no company Y to be Exiting.
Reasons for Acquisitions and merger
The synergy effect
Combination is creating greater value than individual.
Economies of scale
The combination will lead to reduction of cost through the rationalization of functions.
To increase market share
Combination leads to lager customer base, and reduce of competition due to synergic effects.
The firm can claims tax reliefs for a group. [When the acquiring company is in loss position its help the acquirer to claim as tax benefits for short time]
To take advantages of other firm
Its help to improve the technical, management expertise is combining to build a more efficient and competitive advantage.
Utilization of surplus cash
Its help the merger or acquisition to use the surplus cash to the investment opportunity.
Problems with merger and Acquisition
Lack of goal congruence
The merged organizations might not have a clear direction with regards to their strategies.
Over Valuation or Under Valuation of new company
Some cases paying over value and acquire the company may not getting their expected value for their investment.
Purchase of cheap company
Buying a company when it’s available to cheaper rate, but sometimes the company brought may not related to the company’s operations.
Purchase made diversified risks
To been diversified in to too many businesses may lead lost the brand name or the total value of the company.
Improper management of post acquisition or post merger,
After the merger or acquisition the companies may feel it’s not run properly or as their expectations.
Financial options of Acquisition or merger
Payment through cash
The payment through the cash is not practically follows because of shortage of cash [liquidity]. But only benefit of payment method is to getting maximum benefits of acquisition or merger.
A Share exchange
This is where the exchanging the acquirer company shares instead of acquire company shares. This approach is dealing without any cash transaction. But while the time existing shareholders of acquire company enjoy the ownership undisrupted.
In practical situation of the merger and acquisition are fail of 95%. Because the mergers or acquisitions are may not according with the organizational mission and vision statements. When the understandability and sharing the information’s within the merger or acquired companies not efficient the chance of failure is high.
In practical the financing options are not purely cash or shares. It’s happen with mixing percentages such as 50:50, 40:60 or 60:40.
Therefore the merger and acquisition companies should understand “their purpose of the business and what business are they in?”
The rational planning model is a model commonly uses for the business evaluations and strategic decision making purposes. Specially in CIMA examination focus rational planning model as a critical subjects for management students.
But there are only few points to be remembering for rational planning model. The subject of Enterprise strategy [E3] and enterprise management [E2] are mostly focus on rational planning model.
Its containing of
Mission and Objectives
Strategic option generation
Strategic option evaluation and choice
Review and control
From review and control again continues with position audit and the environmental analysis.[its repeat the same process again and again]
Mission and Objectives
The mission and objectives are related to create the mission and objective of the organisations. When making the mission and objective the following should be considers,
Importance of Stakeholders and stakeholders power and interest
Key players, keep satisfied, keep inform, minimal efforts.
Cooperate social responsibility[CSR polices ],
Critical success factors [CSF].
Setting objectives for profit making organisations and non profit making organisations.
The environmental analysis is analysis of the environmental factors how it’s help or affect the business environment. This is fully depending on the risk profile of the organisation.
Importance of business environments
PESTEL or PEST approach and Michel porter 5 Force theory,
Competitor analysis and reactions,
Domestic and international environmental affects.
Strengths, weaknesses, opportunities and threats.
Value chain analysis,
Primary activities and the secondary activities, how its help to identified the position of organisation.
Resource based positioning.
Most of the positioning approaches are help the organisation to identify the internal capabilities of the organisation to develop their strategies.
The co-operate appraisal is a gathering point of the mission and objectives, position audit and the environmental analysis.
In the co-operate appraisal the organisation considering their internal, external factors are according with their mission and vision statements. After the success of elevations, it will lead to strategic option evolution level.
Strategic option generation
The strategic options are a pool of options. These options are indentifies and suggested by the different levels of management and the individuals. The collections of the strategic options are evaluated by the senior level management before it suggested to the top management to decide. Therefore the strategic options should be very carefully evaluate according to the mission and vision statement.
Strategic option evaluation and choice
It’s the level to evaluate the strategic options collected by the above stage. It’s should consider the following approaches,
3 generic strategy of Michel porter.
Cost leadership, differentiation and focus.
Market development, product development, penetration and diversification.
Alternative growth approaches,
Internal approach and external approach.
Options for non profit organisations.
The strategic option evaluation activities are to select the suited strategy rather than best strategy.
The implementation of the strategy is like the project planning approach. This implementation activity is shown a success of the position of the chosen strategy.
Performance measures of the strategy,
Key mile strong and gates,
Financial evaluation of the businesses.
Value addition of the strategy,
There are not specific approaches to elevate the strategic implementation; the success in of the implementation will depend on the success of the project completions.
Review and control
The review and control is an activity of the evaluate the strategic decisions are following the basis of mission and objectives or not,
Comparison between the actual performance and the expected performance.
Alternative approaches for proper control mechanism,
Budgets and the performance,
Needs of the amendments or adjustments.
The rational planning approach is continues process. The same steps are moving again and again, which develops to the organisation to be efficient and effectiveness.
The hospitality management is define as “the management involve with the hospitals management”. The hospitality management is not different from the business management, but the hospitality management more concern about the relationships and marketing with management backgrounds.
The hospitality management is focus on
HRM [human resource management]
Strategic decision making
basic first aides
I have seen some small level hospitals in the market which suffering because of lack of management skills. Some of the semi government hospitals also suffer sick of lack of management[Hospitals].
I have a plan to takeover such lose making hospital ventures and developed accordingly, I have target a hospital which providing a worst service now[hope until i buyout],
These are some strategies to Run A Successful Hospitals to be
Providing an of the excellent services,
Hospital is a place where earn through service they provides, the services are depend on the panel of the doctors and the board of directors. Most of the time people scold the hospitals are earning through get fear to the patient. But the reality is the hospital business is a most reputed business than the other businesses.
Excellent patient care,
The Patient care [customer] service is a key success factor of the business.
Panels of doctors,
The panel of doctors are also a main pillar of the hospitality business. The specialized and the patient friendly doctors are having a good demand for their consultancy services. The qualifications of the doctors also value added to the hospitals to build their brand name.
The fee collecting from the patient should be a sensitive factor in hospital businesses. The hospital needs to develop a good names and capture the minds of customers,therefore they should charge lesser rates in initially.
This is a part of relationship marketing, to reduce the profits in first few arrivals and make them to feel the hospital is friendly service, therefore the money loose in the patients can collect thorough their developments of customers services.
Long term strategies,
The strategies to develop a long term business plans, than the short term focus. The short term business plans will show good profits in initial stages but in future is questionable about their success.
The future plans should accordance to the mission and vision statement of the hospital.
Skilled supportive staffs,
The skilled supportive staffs are also a pillar of the successful business. The quality of services by the support staffs are added value to the hospitals and make the patient to feels free.
The location is an important factor of the business. Especially the hospital should have an easy access to the location. The location also is a peaceful and the widely available of transportation facilities to reachs hospital easily.
The ward facilities,
The ward is where the patient stays and getting the medical assistance. These ward facilities are necessary service to the patients.To be successfully to provide service of 24 X7, the ward facility is important to be access.
Track record of the services
The track records of the services important to be maintain their standards and the levels of business.
Level of acceptance of the standards and regulations
Some of the standards are optional to follow to provide a good service to the patients. The level of the acceptance of the requlations and standrads are the critical success factor of business.
The success of the hospitality is depending on the success of the capturing patient minds, and how fast the patient gets their good health backs
Today November 03, 2010, the shell Gas Lanka signed an agreement with Srilankan government to sell 51% of shake for US$ 63 million. While the government gets the power of control, its change the name of Shell Gas Lanka to Litro Gas.
As management student I am analyzing the usefulness of the brand name changes,
The Strengths’ of the new Brand name [Litro Gas]
Widely distribute Litro Gas in overall Srilanka with more distributional centers,
New pricing strategy and possibility of reduction in Gas Prices,
Be monopoly distribution in Gas at affordable price,
Providing a better management style as the locals need,
New marketing strategies,
Loyalty service from the government services,
Special regulations for price setting and avoidance of less sudden price increments,
Weakness of the new Brand name [Litro Gas]
May incurred huge cost for new brand development.
Loosing of multinational brand name.
Loosing of better management styles [ subjective and conditions apply ]
High risk of competitions from the Laughs gas.
The relationship with the mother company of Royal shell Gas, Netherlands.
How the market will be react with government services,
How the quality of services,
But whatever it is changing of the brand name and the controls creates a hope to the people to reduction in Gas prices in soon. And if the srilankan government is hoping to serve better services to public is greatly appreciate by public.
Deepawali is an important festival in Hindu’s life. It’s commonly known as Divali or Diwali. Deepawali interpret in English as festival of lights.
The countries where Hindus lives are celebrating Deepawali in grate extents. The Deepawali festival is festivals of lights for the businessmen also. Because Hindus in all over the world, celebrating Deepawali with wearing new cloths and exchanging sweets with their family and friends and wish their greeting too.
The countries such as Srilanka, India, Singapore, Malaysia, Fiji, Guyana, Trinidad & Tobago, Mauritius, Nepal and Myanmar are announced Deepawali as an official holiday and respecting the Hinduism.
Therefore businessmen are looking forward the Deepawali festival to lighting their business.
Here are some small businesses related to Deepawali,
Clothing’s or textile outlets
The clothing’s are most consumable item in Deepawali season. Specially most of the Asian countries, which celebrate Deepawali are enjoying the high growth in their businesses during these Deepawali season.
The expected sale in the Deepawali season is 3 to 4 times more than the normal sales in other days. The main reason for such huge demand is that every Hindu believes wearing new dress in Deepawali is bring wealthy and blessings.
This weakness use by the businessmen and develops their business over the time. The best example is Indian advertisements which related to Deepawali, one month before the Deepawali starting an advertising campaign to reach their targets.
Key to be success of clothing or textile shops or outlet is
Starting Advertisement campaigns,
New design clothing’s,
New offers and price reductions,
Value added services,
Promotional items for business developments
Understanding the consumer needs
The Deepawali is another name for the sweetness and sharing the sweets. About 1990’s or the before the housewives are made sweets on their home [rational Hindus made sweets at their home for Deepawali purposes]. These sweets are exchange to their friends and their family members to sharing their happiness.
But there is a business an opportunity in this Deepawali season is to make sweets and sell by unemployed women. These days most of the housewives are buying sweets from the corner shops and sharing with their neighbor, Rather than make by them.
Who’s having an experience in preparation on sweets can earn good revenue on it. There are some housewives get-together and doing this business. Most of them are earning a profit about 30% to 40% from their investment per day.
Key to be success of the sweet selling business is
The contacts of the customer base and the relationship maintenance.
Maintaining High quality on sweet productions.[Oil and % mixers ]
Highly experience in preparing sweets.
To know how to satisfy the customer needs.
On time delivery.
Order acceptance in different verities.
Value addition on their service.
Greeting card designs and new innovations on wishes designs.
Even the new technologies come in to greeting their wishes to their loves one, the greeting cards holding its potion as it. Still the people happy to see greeting cards than the SMS [Massages] or the E-mail wishes. Because everyone knew that sending messages or E-mail is a forward and it’s commonly sending. Therefore the people who get message or mails won’t happy like getting their personal greeting card.
The new businesses where the manual hand worked greeting cards are highly demand to express their wishes.
This is a good opportunities to an innovative ideas to do business. Most of the youngsters are involving in these businesses With using new technology.
Key to be success of the greeting card designs business,
Understand the need of the wishes.
The durability of the greeting cards.
Cost of the card.
Widely available to buy.
Environmental friendly material usages.