All about Business and management

December 11, 2009

Internal recruitment

Filed under: Business management — Jagdish Hiray @ 6:18 am

            The internal recruitment process is popular among organizations as well among employees. It benefits both employer as well as employees. Typically, companies post job positions on their intranet portal, establishing direct communication between hiring manager and candidate looking for change in job position. Internal recruitment (also known as internal transfer) offers many advantages to both employee as well as employer with some disadvantages.

            For employer, internal recruitment offers direct savings over cost of external recruitment. It also saves time, efforts and resources needed to do search for external candidate. Internal recruitment facilitates direct communication happens between hiring manager and candidate on open position and avoids other formalities involved otherwise. Since internal recruits are familiar with overall operations of organization it benefits for hiring manager to minimize learning curve and hence increase in productivity. Some organizations offer specialize training courses to enhance skills so that internal human resources can be internally used across various lines of business as and when required. This practice is particularly seen in large industrial manufacturing companies, pharmaceutical industry and other larger sector of businesses. Internal recruitment thus saves time and cost associated with external recruitment utilizing human resources within company. Therefore, internal recruitment helps to fertilize strong bond, trust and attachment between employees and employer, resulting in better performance at work space. Internal recruitment also helps to minimize brain drain to out of company and tries to keep skilled workers within one company. Companies spend lot of money to train its employees and internal recruitment helps to convert training cost to actual company profit over period of time. Trained and skilled employees are tangible asset to company. Internal recruitment helps to retain this asset within company.

            For employees, internal recruitment offers choices and new opportunities within organization. This in turn offers opportunity to look for alternative to existing job profile as a part of job satisfaction. Existing employees therefore gets opportunity to enhance their skills and develop expertise into various fields across various organizations. This keeps employees motivated and committed to give their best performance. Keeping job in the same company also gives employee peace of mind and stability against job security worries. This in turn increases employee’s productivity and hence benefits employer. Another significant advantage to employees is that over period of time employees can develop multi platform skills during their tenure in organization. This is in particularly true in modern industries like information technology field where multiple skill sets are required and are added advantage for job profile. Internal recruitment gives stable job, constant source of income and keeps employee loyal to one company. Internal recruitment opportunities help employees to void time and effort to look for job outside organization. Since internal recruitment keeps flow of employees within one company, it helps to create strong personal bond among employees and creates virtual network within organization that helps to accelerate day to day operations to be efficient due to personal contacts developed during employee’s tenure in organization. Therefore, larger organization has special HR division to manage internal recruitment process.

            With advantages, internal recruitment also comes up with some disadvantages both for employees as well as for the employer. One of the flip sides of the internal recruitment is, it keeps internal employee movement within organization and over time employees get used to internal operations, strategies and general know how. This in turn creates phenomenon of ‘group think’ in which people thinks in same way, resist to any new change and tries to keep processes intact benefiting them. For any change in policy or change in the business direction which might cause change in their operating habits, they resist change or that can affect their productivity. This in turn affects company’s overall readiness to respond to changing demands of global market and hence negatively affects company’s competitive advantage. This is in particularly true for filling up higher management positions, therefore many companies prefer external skill sets while filling up key strategic management position. Internal recruitment also creates competition among groups to attract best talent within company. To avoid frequent job shift within company, some companies have rules pertaining to internal recruitment. With advances in technology and availability of highly educated work force internal recruitment can prevent flow of advanced skilled workers within company and can prevent company to have competitive edge over rivals. An employee might overlook or tend to avoid outside job positions and might lost touch with general awareness about jobs demand, present job market trend and importantly latest skill sets. This in case is disadvantage in cases where employee looses job during reduction in force. In that situation, skill sets possessed by employee during his or her tenure in one company might not be sufficient to compete in job market and might be tougher to compete.

            Internal recruitment is powerful tool to retain employees within organization. Employer has to make smart decision whether a job position needs to be filling in internally or from out side. Looking at both advantage and disadvantages of recruitment, both employees and employers can get benefited from it.

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November 16, 2009

Recruitment process

Filed under: Business management — Jagdish Hiray @ 9:20 pm

The recruitment process is a critical process in an organization. This is the process which is a part of building healthy and stronger organization. The process of recruitment varies depending upon size of organization, nature of type of business and type of open positions for new recruits. This is the process which affects both organization who is recruiting and new recruit who is going to be part of organization. Therefore, process of recruitment has special importance in building competitive and leading organization in the business word.

            The process of recruitment starts with a business need to have a human resource to manage and execute business tasks. Generally hiring manager seeking new resource puts together business requirements; justification such as implications to business and how new resource will add value to business. The hiring manager also lay outs detail job description stating skills required, base location and urgency for new recruitment. In some organizations there are pre allocated positions allocated to each business group whereas some organizations have recruitment board to review need for additional resources and skills required. In large organizations there are also a quota allocated for fresh college graduates.

            The hiring manager works close with human resources (HR) representative (recruiter or hiring agent) during recruitment process. Once new recruit position is approved, HR representative starts process of search for a candidate for skills required. The process of approval for new recruit position can vary across organizations. There are various avenues and approaches available to search for appropriate skilled candidate among pool of candidates. This really depends on urgency of recruitment, type of position and expense or budget approved that position. For example, to hire an executive, HR representative might appoint outside agency to screen and interview candidates. However, for other positions there might be candidates available internally. In some organizations positions are listed on their internal portal to find internal candidates. Also, larger organizations are always in process of receiving external candidate profiles through their corporate portal and therefore maintains centralized database of resumes which can be searched and available for hiring manager. Some organizations have paid corporate account on global job search engines like www.dice.com, www.moster.com and so. In case of smaller organization like a startup company word of mouth plays important role to find out candidate through colleagues and friends. Job fares, business related conferences and workshops also introduce future candidates.

            The hiring manager goes through candidate profiles received for opened positions. In some organizations members of recruitment committee does review of these profiles. Members of group reporting to hiring manager and other members from broader group can also be asked to screen resumes and grade candidates. Then, short listed candidates are called for personal interviews. In some cases, either hiring manager or a group does screening telephonic interview to short list candidates for personal interviews. Personal interview can take several rounds. First round might include an objective test based on skill requirements and can be based on questions to judge personal workplace behavior. Next round of interview can be with broader team including team with which candidate is going to work with. In some organizations hiring manager considers team members feedback and ratings for candidate. Involving more people to screen candidate helps hiring manage to choose best candidate suitable for job as well as minimizes any future risk which may arise due to any issues associated with candidate after hiring. Before offering job offer, HR representative runs background checks and does personal referral checks. For executive positions this is very critical step to review candidate’s past experience and achievements. Background checks and personal references give hiring manager a peace of mind and confidence about his or her decision to hire candidate.

            Generally in final personal interview hiring manager goes over pay package and benefits with candidate. If agreed final offer is made either personally or through mail. Candidate is given a period of couple of days to review and accept an offer. Once an offer is accepted by candidate, joining date is decided and position is marked as filled or closed.

            Hiring a candidate is very crucial task, particular when business is very conservative about incurring extra cost of adding a head count. This is also crucial from the point view from new recruit who leaves existing job and tries to assimilate into new job environment for better future. It is also vital from hiring manager point of view to mentor and positioned newly hired candidate to fulfill business needs. In many organizations, failure to recruit appropriate candidate turns out to be costly particularly candidates hired at higher executive positions. Therefore, the process of recruitment works as a check post to bring right candidate inside a company for better future.

March 17, 2009

AIG bonuses and corporate America

 

AIG is not the only corporate company which gave away huge amounts to their executives.
Because of public bail out, bonuses to AIG executives became public.
But what about other corporations who already distributed various bonuses to executives in
this rough time when main street is going through difficult time. What so un usual about these executives? what different work do they do other than comman man do?

This is not only about AIG but this is about corporate world. Executives are paid with huge bonuses, money is spent
on unnecessary projects and other spendings. There is no direct oversight on these spendings.

With your hard earned money, any investment you make in stock market, do not count on it, basic assumption is you are gambling. You might get it back or may not, you can not count on it. You do not know how it is been used.

Common man has to decide whether to gamble or keep money for future survival?
Save money for your future.

Jagdish Hiray

November 24, 2008

Is Mr. Paulson too late?

Filed under: My Opinion — Jagdish Hiray @ 9:40 pm
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            Yesterday first time I noticed US treasury secretary Mr. Paulson started talking about helping consumers and trouble homeowners. Do former CEO of Golman Sachs and supporter of so-called ‘free market’ economy know consumer is important element of economy? Consumer is building block of this economy. This is the consumer who promptly wakes up in the morning, works hard and feeds family. This consumer if ‘atom’ of this economy; this economy is built on millions of atoms ‘consumers’. Not all of these consumers have investment in stock market nor majority of them have 401K accounts. But this ‘consumer’ was ignored, focus was given to stock market and efforts were seen to secure foreign investment in stock market.

 

            Today ‘consumer’ is dead. Money stops flowing in ecosystem of this economy. You do not have to wait for report to come showing banks tighten lending policies, banks stopped lending to consumers… You need to be in mall, in wal-mart, in offices, in restaurants, at gas stations to see how consumer is suffering what is its pain. You need to pass by through towns to see forecloses happening in communities, you need to feel what you feel when you vacant your home with heavy heart …

 

            Too late to rescues … regulators were waited too long to watch economy get recovered, expecting consumer to suffer and stand again to keep life going. Yes, this time consumer will stand up again but with different vision and mission. New born consumer will stop using credit cards and unnecessary spending, will refuse to borrow money from financial institutes, will not invest in stock market to pay for huge CEOs compensation and fund manager’s expensive mortgages, will try to increase savings and refuse to gamble in stock market. Will be happy to get small amount of 401K returns with peace of mind.

 

            There is enough of free market and capitalism. Henceforth consumes will drive market not bankers and traders.

 

November 23, 2008

Microsoft Yahoo merger good for tech sector?

Filed under: My Opinion — Jagdish Hiray @ 7:39 pm
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            There is lot of buzz around Microsoft and Yahoo merger. Microsoft has clearly denied possibility of taking over Yahoo Inc. Any one who is using Microsoft products and watching Microsoft’s business will agree that Yahoo will loose its characteristics if Microsoft takes its business over.

           

            There is couple of things to consider about Microsoft. First of all Microsoft is still struggling with its online search engine msn.com. Microsoft seriously lacks expertise in search area.  Second point to consider, possibility of success merger and keeping Yahoo in business after merger. Looking at past, Microsoft failed to keep hotmail brand name in emai business and could not give head to head competition with gmail. Chances that Microsoft-Yahoo merger a success is close to impossible. Most software companies like Microsoft lack proven management skills to make such acquisition success. Next, Microsoft- Yahoo merger, in fact will benefit Goggle as possibility of retaining Yahoo employees is going to be big challenge. Which in turn will affect Microsoft negatively.

 

            Therefore, there are serious practical reasons why Microsoft denying Yahoo acquit ion. It is not only matter of existence of Yahoo but also posses serious concerns to Microsoft existence.

 

 

 

 

 

 

 

 

 

November 22, 2008

City of Toledo and $700 billion bailout plan

Filed under: My Opinion — Jagdish Hiray @ 9:02 am
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This is story about the city of Toledo in state of Ohio. In around 1980s, city of Toledo started offering incentives and concessions to attract new businesses as well as to existing business to stay around area. These incentives were ranging from funding these businesses to exceptional tax breaks. In couple of years city has attracted many known industries such as General Motors and Chrysler. When state of Ohio authorized an Enterprise Zone program to create industrial base, city of Toledo was ahead to take advantage. The main goal was to create more new jobs and prosper.

However, in next couple of decades, study found out that new jobs were not created as expected, new jobs were moved to different locations, jobs were outsourced and companies failed to keep their promises. Companies took advantage of tax breaks but failed to create new employment. The government spent over $280 million dollars to bring and keep new Chrysler plant in Toledo; in reality it caused more job losses than creating new jobs.

Study found out that there was no monitoring mechanism setup to monitor how these companies were using incentives and whether they are being appropriately utilized. Companies were not accounted for their promises. Tax breaks were gone to hundreds of companies that closed or reduced their facilities. There was no accounting for how public money was spent.

 

Today we have similar situation. In today’s economical crisis, we as people of this democratic country represent the city of Toledo. We have public bail out money $700 billion dollars approved by congress on behave of tax payers. Auto makers and various other well know companies of this so called ‘Capitalist’ system are coming forward to ask for help to keep their businesses running and hence to keep jobs for thousands of workers. Toledo (here we people) has second and probably last chance. If we want to help these industries to keep our jobs and keeps economy flowing, we have to get answer for some basics questions.  Are we going to have monitoring mechanism this time? Who is going to monitor this mechanism? Who is going to review their business plan (may be industry experts)? What if they do not use people’s money as promised, what will be penalty? Who is going to take personally responsibility? …

 

Toledo has money to fund but still fighting for survival … dark side of ‘Capitalism’.

 

 

November 3, 2008

Leadership and fellow-ship

Filed under: Business management — Jagdish Hiray @ 9:42 pm
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            All-important social accomplishment requires complex group effort and, therefore, leadership and follower ship. Leader-follower relationship is two way, leader as well as followers have great capacity to influence the relationship. Just as a leader is accountable for the actions and performance of followers, so followers are accountable for their leaders. Followers support leaders when necessary and help them correct their actions, just as leaders must support followers and help them to correct their actions. This is partnership and both sides must be proactive. Organizations are successful or not partly on the basis of how well their leaders lead, but also in great part on the basis of how well their followers follow. Courageous followers help leaders stay on track and manage their decision-making processes in the right direction. Responsible and effective followers have a critical role in maintaining the desired partnering dynamics. In his book (The Courageous Follower, 2003) Ira Chaleff points out that the old paradigm of the leader/follower is based on power. The leader has traditionally had the power to reward and promote, this has led to a relationship in which the follower avoids jeopardizing their chances of obtaining these rewards. Hence, the follower tends to do what the leader wants and, just as important, not offend or create a negative impression of them. A relationship based on this kind of power does not serve the organization, it shuts down the open flow of communication and candor a leader needs to order to optimize their effectiveness. Chaleff sees a very different kind of relationship between leader and follower.  He suggests a relationship where the leader and follower have equal power but different roles that orbit around support and fulfillment of the organizations’ purpose.   When both the leader and follower are focused on the common purpose a new relationship between them arises. This new relationship is candid, respectful, supportive and challenging.  It is a relationship that honors open communication, honesty and trust from both parties. According to Chaleff, there are three things we need to understand in order to fully assume responsibility as followers: understand out power, appreciate the value of the leader and work towards minimizing the pitfalls of power.

When we think about leadership, we tend to focus almost entirely on the leader. Yet without followers, there is no leader. Leadership is participatory: leaders and followers exist in a mutually beneficial relationship where each adds to the effectiveness of the other. Key to this process is listening, because leadership is as much about listening as it is about talking, or perhaps more so. From the beginning, a leader must be informed by the followers’ values, beliefs, and aspirations, the followers’ identity. The commitment gap people frequently experience, the difference between what the leader desires and what the followers actually do, can often be traced back to not aligning the elements of leaders’ and followers’ identities—who they think they are—to find common ground on which to function and grow. It is the quality of the relationship of leaders and followers, all the way up and down the organization chart, that makes or breaks organizations.

Leadership is one of the most widely talked about subject and is most elusive and puzzling. Leadership is a complex phenomenon involving the leader, the followers, and the situation. In general there are individuals who exhibits leadership qualities and there are people who do not.  People who are effective in the leader role have the vision to set goals and strategies, the interpersonal skills to achieve consensus, the verbal capacity to communicate enthusiasm to large and diverse groups of individuals, the organization talent to coordinate disparate efforts. Some people posses inbuilt personality traits like self-determinant, honest, strong desire to achieve goal, devotion and sacrifice. However, there are exceptions, some theorist believes each individual has built-in qualities to make difference and hence influence people around them. Their leadership qualities can be seen by their actions, reactions on situations they manage and support from their followers. However, some people do exhibits their leadership qualities under some circumstances. For example, Mahatma Gandhi was an ordinary person, he faced same realities youth of his age faced at that time, but he evolved as a charismatic leader who stood against British rule to give independence to his country. His thinking, initiatives, selfishness, care about people and honest actions made him a leader.

There are personalities, which are of ‘leader type’ (effective leaders), and there is not ‘leader type’ (poor leaders). Effective leaders are good communicators, especially in providing vision and purposes that are consistent with follower goals, values, dreams and myths. Effective leaders are socio-centric, physically strong, humanistic, approachable, visible, patient, decisive, and open-minded. They maintain high standards of dignity and integrity. Good leaders create a sense of trustworthiness as perceived by their followers.  They do this by being consistent, honest, and dependable. They are good role models, coaches, mentors and teachers. Effective leaders establish a strong participative management culture. They are technically competent but possess important interpersonal skills such as assertion, empathy and negotiation ability. Good leaders show “value focused leadership.” They have a set of purposes and ethics that guide their behavior and decision-making. Control theory suggests that effective leadership is goal-directed with synergy created by the alignment of group members on these goals and priorities. “Value focused leadership” requires that leaders help create “value” for both workers and customers.

Non-effective leaders fail to give clear direction, mission and purpose to the followers or organization. They fail to create cohesion and commitment by neglecting to give support and encouragement to followers. They neglect to energize followers and obtain their dedication and loyalty by providing consistent reward and recognition.  They fail to listen to followers and empower them to take a full, participative role in all-important decisions. When followers do offer suggestions these suggestions are ignored.  Poor leaders tend to tolerate incompetence, a fact that de-motivates followers who are trying hard to get work done.  Poor leaders fail to develop and support a “culture of quality.” Poorly led organizations have a scarcity of clear, consistent goals and when they do have goals they do not have benchmarks or outcomes measures with which to evaluate them. In poorly led organizations there is a paucity of effective communication and true consultation in the organization. Leaders usually find someone to take the blame for a negative event. They spend a great deal of time protecting themselves and their positions and neglect the overall welfare of the organization. The poorly led organization shows shoddy ethics. In the poorly led organization there is a great resistance to change, innovation, and new ways to integrate the various parts of the organization.

 

 

 

 

 

August 7, 2008

Financial intermediaries

Filed under: Business management — Jagdish Hiray @ 9:56 pm
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With advances in computer technology, one can transfer money instantly, anywhere in the word, you can trade your funds across major stock exchanges online, you can use your credit card across the globe and so on. Lending and borrowing of money is made simple by financial institutions called financial intermediaries. Financial intermediaries such commercial banks, credit unions and brokerage funds carryout these transactions on your behalf. A financial intermediary is a financial institution that borrows from savers and lend to individuals or firms that need resources for investment. The investments made by financial intermediaries can be in loan and/or securities. Basic role of financial intermediaries is transforming financial assets that are less desirable for a large part of the public into other financial asset, which is preferred more by the public. This transformation involves at least four economical functions: providing maturity intermediation, risk reduction via diversifications, reducing the costs of contracting and information processing and providing a payment mechanism.

 

Without financial intermediation we must not have seen revolution in financial services in past couple of decades. Financial intermediation is responsible for creation of institutional investors in financial market. Modern world would not have been so modern without financial intermediaries. Financial intermediation has won savers confidence by protecting their asset while providing efficient services to help manage their asset. On contrary, with pool of household savings from savers, they emerged as one large lender who can lend money to businesses and various other borrowers. Financial intermediaries are vital part of our economic system and they help to maintain constant flow of money in economy.

 

If there were no intermediaries, individual savers would have to directly purchase the securities of borrowers. There would have been incompatibility of the maturity needs of lenders and borrowers since most savers want to lend funds at short maturity, while borrowers want to borrow at longer maturities. It would have been difficult to match small amounts of individual savings to the larger loan amounts desired by borrowers. This would have cause borrowing more difficult and more tedious. Financial intermediaries perform important function of maturity intermediation to make investment from savers and money borrowing for borrowers seamless. Maturity intermediation involves a financial intermediary issuing liabilities against it that have maturity different from the assets it acquires with the fund raised. An example is a commercial bank that issues certificate of deposit and invests in assets with a longer maturity than those liabilities. Maturity intermediation offers more choice concerning maturity for their investments to investors and reduces cost of long term borrowing for borrowers. Financial intermediaries issue their own debt claims to the saver in forms more attractive to savers, and in turn, lend to borrowers on terms satisfactory to the borrowers.

 

Financial intermediaries bears risk on behalf of investors by investigating their savings across various sectors of business. They transform risk-by-risk spreading and risk pooling; they can spread risk across a range of institution. In turn institutions can pool risk by spreading investment across firms and various projects. Diversification allows a financial intermediary to allocate assets and bear risk more efficiently. Financial intermediaries do risk screening, risk monitoring and risk evaluation; it is more efficient for institution to screen investment opportunity on behalf of individuals than for all individuals to screen the risk. It helps individual saver to save time and money and offers low risk investment opportunity. One of the common example of this function is; a dollar deposited in a checking or savings account, it is not redeemed at less than a dollar but in turn one get paid interest on it over period of time. Therefore without financial intermediaries it would really have been difficult for individual investor to screen prospect borrower or investment opportunity, which would have discouraged individual savers from lending money and would have affected economical developments.

 

Financial intermediaries provide convenient and safe way to store finds and creates standardized forms of securities. It also facilitates easy exchange of funds. Due to high volume it is able to bear transaction and information search cost on behave of savers. Therefore, individual saver enjoys financial services that enable them to deposit and withdraw funds without negotiation whereas borrower avoids having to deal with individual investors. Since it has information available for both lenders and borrowers, it minimizes information cost for analyzing their data. Without financial intermediaries lenders and borrowers would have to pay higher transactional and information costs.

 

            Modern world would not have been so efficient, aggresive and progressive without financial intermediation.

 

August 1, 2008

Functions of investment banker

Filed under: Business management — Jagdish Hiray @ 7:04 pm
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When corporation sells new securities to raise funds, the offering is called a primary issue. The agent responsible for finding buyers for these securities is called the investment banker. The investment banker purchase primary issue from corporation and arranges immediate resell of these securities to the investors. Merrill Lynch & Co., Goldman Sachs are some examples of well-known investment banking firms. Broadly investment bankers (investment banking firms) perform three functions: Investigation, Analysis and Research (Origination), Underwriting (Public Cash offerings) and Distribution. Most of time a single investor banker performs all functions, however some investment bankers are specialized in certain functional areas only.

 

Investigation, Analysis and Research (Origination):            Origination includes the subsidiary operations of discovery, investigation, and negotiation. Discovery is the finding of a prospective issue of securities; investigation is the testing of the investment credit of the prospective security issuer, and the intrinsic soundness of the issue; negotiation is the determination of the amount, the price, and the terms of the proposed issue. Investigation usually involves an analysis of the financial history of the corporation by accountants, investigation of legal factors, a survey of its physical property by engineers, and in-depth review of operations. The purpose of investigation and analysis is to determine whether a proposed issue has sufficient merit to be offered to investment community. In other words, function of investment banking is careful analysis of the soundness and reliability of the corporation whose securities are seeking the investment market. The task of investigation and analyzing the numerous factors, which govern the value of investment securities, varies considerably with the different types of issuing bodies.

 

Underwriting (Public Cash offerings): When a corporation wishes to issue new securities and sell them to the public, it makes an arrangement with an investment banker whereby the investment banker agrees to purchase the entire issue at a set price, known as underwriting. Underwriting also refers to the guarantee by the investment banker that the issuer will receive a certain minimum amount of cash for their new securities. The investment banker buys a new security issue, pays the issuer, and markets the securities. The underwriter’s compensation is the difference between the price at which the securities sold to the public, and the price paid to the company for the securities. Underwriting can be done either through negotiations between underwriter and the issuing company (called negotiated underwriting) or by competitive bidding. A negotiated underwriting is a negotiated agreed arrangement between the issuing firm and its investment banker. Most large corporations work with investment bankers with whom they have long-term relationship. In competitive bidding, the firm awards offering to investment banker that bid the highest price.

 

In certain cases, for large or risky issues a number of investment bankers get together as a group, they are referred to as syndicate. A syndicate is a temporary association of investment bankers brought together for the purpose of selling new securities. One investment banker is selected to manage the syndicate called the originating house, which does underwriting of the major amount of the issue. There are two types of underwriting syndicates, divided and undivided. In a divided syndicate, each member group has liability of selling a portion of offerings assigned to them. However, in undivided syndicate, each member group is liable for unsold securities up to the amount of its percentage participation irrespective of the number of securities that group has sold.

 

Distribution: Another function of investment banker it to market the security issues. The investment banker acts as a specialist to distribute securities efficiently for the corporation. It can be very expensive and ineffective for a corporation to sell an issue by establishing marking and selling organization by its own. Investment banker has established marketing and sales network to distribute securities. For a reputed invest banker, with its past history of selecting good companies and pricing securities builds a broad client base over time, and further increases the efficiency with which securities can be sold.

 

            Invest banker offers security to both corporation issuing securities and investors buying securities. For corporations investment banker offers definite price guaranty on a certain date for securities to offer. The corporation runs no risk of the uncertainties of the market and do not have to spend on resources with which it is not equipped with.

To the investor, the responsible investment banker offers protection against unsafe securities. The offering of a few unsound issues can caused serious loss to its reputation, and hence loss of business. Therefore, investment banker play very important role in issuing new security offerings.

 

June 29, 2008

Oil crisis and we!!

Filed under: My Opinion — Jagdish Hiray @ 12:43 am
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                     In last few months oil price at pump suddenly gone up and we do not see any signs of coming it down. It made life essentials expensive forcing people to make choice between food and commute to work. Every smallest news affecting oil supply was considered to hike crude oil prices but major drop in oil consumption in past 17 years by people, increase in price of oil in major oil consuming countries to cause decrease in oil consumption, and decision to increase production of oil by major oil producers, did not caused a penny of decrease in the price of crude oil. Is it not mysterious? No body has explanation nor wants to explain people why it is so? Regulators once again failed to avoid ‘oil boom’ created by so called ‘capitalism’. Once again common has to pay price for it.

                  

This reminds me people on ‘AXIOM’ space cruise from WALL-E movie. People’s life depicted on “AXIOM” space cruise is very much synonymous with our lives today; our lives are no more independent. This movie not only gives strange glimpse about our future but uncovers truth of our current lives.

 

How? Take couple of seconds to think, compare our lives with those on space cruise shown in the movie. Our lives are totally dependent on oil driven transportation, we are used to large luxurious cars sold by motor companies as per their business profitability model, and we are hypnotized by easily available loans and paralyzed by accumulating debt. For generations we are traditionalized by junk food chain. We are trapped in the web woven by corporate world under name of ‘capitalism’.

 

Our social position is not at all different than people on space cruise shown in the movie. Those people lost their existence, lost their thinking and could not think of anything else other than their own comfort. Are our lives different than those people from space cruise?

 

 

 

 

 

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