The New Next step

I often start up with a thought, which blinds me with the depth of its practical application. Imagine a "dreamy" person like me, being held by thoughts like these..

It'll definitely look funny..

Okay, the thought goes like this:

 " Out of every 10 men in this world, 9 work for the 10th.

Prepare to be the Tenth"

Nice..

I wonder who said this, coz it really inspires me too...

A very strong thought indeed!!

Looks like I have the next step to work on, how to climb, till when to climb and be there..and so on..

Change engulfs me, I cant recognise my own self..

:)

Business Startup Successes of 2008

http://www.thestartcompany.com/blog/2008/12/23/business-startup-successes-of-2008/?goback=.hom

In their article from Dec 19, 2008, BusinessWeek, gives a list of 25 most successful startups for 2008. While it was a dismal year  for most, some startups managed to raise significant capital to expand and pursue their goals.  More than $7 billion of venture capital money was invested into early stage companies in 2008 which is “more than any calendar year since the dot-com bubble burst in 2001.” 

Venture capitalists however aren’t prone to just sink their money wherever.  These were proven companies, many with senior management at the helm with decades of proven experience in their industry, and all had products and/or prototypes, and who, in major part, directed their efforts at solving global problems of climate change and disease. i.e. these were not just entrepreneurs with an idea.  

Sorting through all of the success stories, here is a list of principal characteristics which the businesses themselves claim was the key to their success.

1. have a solid business plan and stick to the deadlines
2. look to fill a critical need
3. innovate and collaborate
4. price your product appropriately
5. understand the business and your product
6. seek experts and hire good people
7. focus and use your time efficiently
8. set goals and pursue with passion and dedication
9. be opportunistic
10. think outside the box
11. track your finances and ROI
12. be persistent
13. listen to your customers

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Survey : Day2&3

.....................

I feel I have no words left..

Only to add that we had could get a good number of respondants today. 

I enjoyed listening!!

And...got very very tired.

From yesterday's and today's survey, I've made myself clear to the fact that I should NEVER work as an investigator. There were too many errors and other things which could have been avoided.

Anyways, anything different today?

One thing...noone's happy with the Government, there are all complains. Like, lack of auction houses, where they can hope to sell their goods at a better price.

This is from the farmer's point of view..

The survey, from my point of view, was an eye opener. I could see, how I ask or deliver questions. We were making the errors, which had been mentioned by our prof. However, since we are aware of them, we were trying hard not to commit them! Like, asking questions without looking at the questionnaire, or the tone in which the questions should be asked.

Natural factors, like tired-ness, were affecting things a lot.

To stand in the sun for hours, constantly searching for the respondants, and finding 1 in 600, was a........ (I dnt even have words to explain)

But to be honest, I've decided not to carry out surveys (to be an investigator). Not totally, but the least the possible.

But there is something very unique in the experience we had for the three days. More than the objective of achieveing our targets of the number of respondants to be interviewed(which was easily completed by the end of day3), we were absorbing so much of data and information, which awed us, surprised us, dissapointed us, confused us, angered us and delighted us..

We never hear a "neutral" news in any newspaper, tv channel, etc. Its always a point of view, despite the fact that it should be neutral. 

But what we were hearing there, was right from the heart and soul of the farmer.

Farmers who are still cultivating, because they cannot switch to something else, famers who are making good profits, farmers who failed & left it totally and farmers who want to start but do not get the right information even from the Government sources.

I also heard, that this year, the percentage of farmers was very less as compared to last year. So, I feel that we probably missed out on more such information.

Overall, I'm even more empowered to learn now.

I feel, there's much more to the picture than what apprears!!

Survey of Farmers, day1

I've never been in a Kisan Mela before, and definitely never surveyed people in Hindi/Marathi. So, it is something totally out of the way, something not normal and something not common in any aspect.

"This experience was going to be different" I had thought, and I wasn't wrong..

We first prepared our questionnaire, keeping in mind our objectives, the time limit, the results (in terms of validity and reliablity) and output (to get good data).

And we prepared this questionnaire in 3languages: English, Hindi and Marathi.

We prepared our stall at the destination alloted, and divided our group of 8 into a pair, one girl one boy, and after a pre-check of the whole mela, we decided to start our survey.

The pre-check was done to enjoy the mela, definitely, and to find the possible destinations where we would find our respondant(s).

After we went out as a pair, we first did pretesting on 2-3respondants per pair. This was done, in order to judge our questionnaire, whether it was framed well, if it led to any errors or mis-lead towards a wrong direction and so on...all in all, it was done so that we could make the necessary changes and get better data in lesser time.

Ofcourse, all of this is the theory part of it. Though we followed what I just mentioned, but we had to face a lot of difficulties. 

1. You cannot find the right respondants.

2. You get tired asking and searching for them.

3. Even if you do find them, they get impatient after sometime.

There's more, but I'll restrict myself.

We had a very hard time to find Rose and/or Gerbera respondants. I for once felt,  that they havn't turned up at the mela!!

After constantly asking people for hours, we could only get 15-20 respondants (the whole group) who actually qualified as our "respondants"...

Phew!!!!

Need I tell how delighted I was to question them?!

After the pre-testing, we made some changes and also realised how much a farmer wanted to tell. We felt our questions were not enough. We did not increase the number of questions as our objectives did not require it, but we kept our ears open to all the information.

Infact, while searching for the right respondants, we asked some basic questions to other farmers as well, who did not belong to the Rose Gerbera category, only because "we" were eager to hear more. 

We mostly found Sugarcane or Maize or Neem cultivators.

An interesting experience was, we introducing ourselves in Hindi and getting replies in English. Yes, flattering english from the farmers.

There were Big, Small, Rich, Poor, all types of farmers.

I'm eagerly waiting for the second day, and hoping to not only complete the target, but also gain more insights...I cherish and thank God for giving me such an invaluable opportunity.

Organic Farming

(The Economic Times : 14th December 2008)

Azamgarh gives a radical thumbs-up

ON A visit to Azamgarh in UP, you expect to find many things radical but hardly a business model that overturns way agri-business companies handle and share risk. Yet there it was — triumphant, recession-proof and wildly popular among the locals. 
    Like all truly smart ideas, it’s blindingly simple. Moreover, it creates value in a way that is sustainable, creative and transforming. The $10-million Lucknow-headquartered Organic India (OI) is one of India’s top manufacturers of organically-grown herbal and ayurvedic health products. It exports proprietary health supplements, brands such as Tulsi Tea Collection, as well as organic spices, pulses, fruits and veggies, and grains around the globe. It claims to be the only Indian company that complies with the toughest US standards. 
    From inception, OI was committed to working chiefly with marginal farmers and tribal villages. Put the two objectives together and you get a farming-based company that requires highly specialised and premium medicinal crops to sell in a ruthlessly competitive international market but has suppliers with few resources. Usually a company planning to export farm produce rarely thinks beyond contract farming — the tried-and-tested formula for halving risk and doubling profit. Low on mutual trust, most experiments end with dismay and defaults as both parties find it hard to keep their side of the bargain. We all know the names. 
    OI took a different approach. It decided it would bear the cost of production, and the risks of crop failure and market volatility. Farmers were to only tend and harvest the crop. In short, each one contributes according to his ability. An OI supplier contributes only what he owns — half-acre plot, labour and farm wastes. He need not worry about investment or prices. OI contributes the seeds, organic fertilisers (converted from farm waste), extension services, organic certification and an assured purchase price. It also assumes the risks of crop failure (this year floods drowned the fields) and market competition. 
    It normally takes a few seasons before a farm can be certified organic. In the interim, a farmer has to grow organically but gets few buyers offering a premium. It’s a risk he is forced to bear in hope of future profits. OI decided to eliminate even this challenge. It starts buying from season one even though the produce can’t be used in its factories. Though it may sound zany, the model worked. On dozens of struggling, rain-fed farms around Azamgarh, where cane, gram and wheat have failed for several years due to water scarcity, this zero-risk business has brought amazing prosperity and peace of mind. 
    “My mother and I have been growing tulsi for seven years. We get the seed and fertilisers free. Plus the company helps look after the crop. After three months, we pluck the green leaves, dry them and sell at a pre-fixed rate. The three varieties — Ram, Shyam and Vana tulsi — are sold at different rates, which are higher than what traders offer. When floods washed away our fields, the company helped us re-plant. I made Rs 28,000 net profit this year from tulsi. It’s less than last year because yields were low but I’m satisfied,” says farmer Ravindra Nath Sharma, who owns half acre, and now lives in a pucca house. 
    It’s a view echoed by most small farmers in the area. They have realised that with missing government support, no irrigation, erratic power supply, and no marketing opportunities, partnering with OI is their only chance of a half-decent life without mortgaging land or migrating. There is an additional benefit. Now trained in organic farming, crops they grow for rest nine months are also certified organic and fetch a premium. The benefits from no chemicals to their soil and their own health is an unexpected bonus. 
    For Organic India, the benefits are equally large and not limited to assured supply of organic products. It allows the company to fulfil its vision of doing business “without greed” in a way that is sustainable and benefits farmers, consumers, and the bottomline. “We don’t do charity. We want to practice eco-friendly agriculture through market-driven sustainability,” says co-founder Bhavani Mitra. OI has replicated this model from Bundelkhand in UP to Rajasthan, Gujarat, and Madhya Pradesh. South India and the North-East are next on the anvil. With 50,000 acres under its belt, OI today has the largest and most widely spread certified organic cultivation plan in India. 
    Interestingly, it’s a model that migrates well not just across crops but industries as well. Suguna Poultry Farm is a classic example. Across 10 states, it has got 15,000 farmers to raise chicken for a fee. It identifies farmers with requisite infrastructure (sheds, water supply and labour). It supplies them day-old chicks, along with feed and medicines. Suguna staff visit the farms daily to check the health of its chicken. After six weeks, birds are weighed and sold. Farmers are paid for growing the birds, apart from incentives. 
    Farmers have no risk because they don’t own the chicken. They don’t worry about feed prices, vets, or chicken prices. For Suguna, the model offers faster scalability as it does not have to buy or lease farms. It keeps costs low, and allows economies of scale while buying raw materials, feed and medicines. By 2013 Suguna says it intends to have 60,000 contract farmers. 
    Indian farmers are mostly entrepreneurs producing for the market. But with small farms, expensive credit, poor margins and high costs of doing business, their ability to take risk is extremely low. Companies like Organic India and Suguna understand farmer psychology. Then they courageously go a step further and harness it to create wealth for themselves, the economy and these farmers. It’s a radically new way to stay ahead of the game in these tough times. 

The next step towards Market Research

First what, I feel, is most amazing is the fact that within 6months, we have learnt a lot about market research. And a lot is yet to come. With the practical project going on side by side, the combi of theory and practical has only helped us think and do more.

What we are doing : A study of Rose and Gerbera cultivators to improvise its cultivation and marketing practices.

How we are doing it: By recognising the following:

1. The managerial brief

2. Our objectives

3. Operational definition

4. Secondary Data

5. Information Needs

6. Characteristics of Information Needs

7. Identifying Survey Technique

8. Questionnaire Formation

9. Field work

10. Post Field work: Tabulation and analysis.

We currently are forming our questionnaire, infact have complete more than half of it.

What is most important, as quoted by our professor is "One verb per question please!"

:)

Job at field, that is to survey famers is coming soon...

Kisan Mela, Dated: 16th December 2008

Lets do it!!

The Photography Contest

After coming to SIIB, or should I add, after starting photography, for the first time in my life I got a chance to show my talent.

To show my artistic side.

And here it is:

This is worth pondering

IMF wakes up to threat from sovereign funds

AFTER European policymakers and Reserve Bank of India, the International Monetary Fund is now awakening to the potential threat by the sovereign wealth funds (SWF). 

    In its latest World Economic Outlook released on Wednesday, the fund has expressed concern that the growing presence of SWFs have the potential to impact global financial stability and the key parameters in the US markets if they choose to diversify their currency portfolio mix. Though many central banks that promote such funds predominantly hold their foreign exchange reserves in dollars and dollar-based assets, the same does not hold true for stylised SWFs. “Compared to reserve assets, which are predominantly dollar-denominated and generally held in the form of US Treasury bills or agency securities, the stylised SWF portfolios are more diversified across both asset classes and currency exposure.’’ the IMF has said. 
    An IMF analysis suggests that the pattern of global capital flows would change significantly, with advanced economies facing lower capital inflows and emerging economies attracting substantially larger inflows.This suggests reduced inflows into government bond markets, with attendant implications for interest rates. The shift away from reserve assets could have the most significant effect on markets in the United States, if countries diversify away from dollar holdings, the fund said in its report. 
    Market estimates suggest that assets under management of SWFs exceed assets managed by hedge funds ($1.9 trillion)—and account for about onefourth to one-third of foreign assets held by the central banks of the economies that have floated such SWFs. Although SWF assets remain small relative to total global financial assets (about $190 trillion), they are large compared to the stock market capitalisation of even mature market and also some debt and capital markets in emerging economies. But SWFs’ portfolios is often invested in nonfinancial assets, such as real estate. SWF assets are projected to surpass the stock of global foreign exchange reserves in the not-so-distant future and to top $7 to $11 trillion by 2013 . 
    Thus it is clear that SWFs will play an increasingly prominent role in global financial scene. Against this background, a key concern is the impact of the growing presence of SWFs on the pattern of global capital flows, asset prices, and financial stability more generally.

Article from ET dated 10th October 2008

"Kabhi Kabhi..."

"Kabhi kabhi..."

Its all about learning how to apply and carry out work..with perfection, nothing less nothing more..

That what I demand from myself as well..PERFECTION!

Lets go and study and complete that damn chapter..

its not all that boring, but all that grilling since the last two weeks..has left me exhausted and the urge to rather sleep than go out is setting in!

But I cant let that happen..afterall, exams are just 2weeks down the way, which I have to pass...with better satisfaction than last time

Last time, it was all about just PASSING, this time I want to learn...

simulate...

trigger..my mind..

be more open, receptive, with the evnvironment..(whats this jargon singing? probably, the hangover of market research and quantitave techniques.....)

Anyways..

So, I watch live news, which is live TV, with ads...havnt seen them since 3months! And get satisfied..that atleast I'm watcihng tv..and news!!

And my next objective:

1.To study properly and be happy!

2.To play TT and be happier!!

3.To sleep and be happiest!!!

:)

The mind of strategist - kenichi ohmae(part1)

Analysis is the critical starting point of strategic thinking. Faced with problems, trends, or situations that appear to constitute a harmonious whole or come packaged as a whole by the common sense of the day, he strategic thinker dissects them into their constituent parts. Then, having discovered the significance of these constituents, he reassembles them in a way calculated to maximize his advantage.

 

In business as on the battlefield, the object of strategy is to bring about the conditions most favorable to one’s own side, judging precisely the right moment to attack or withdraw and assessing the limits of “compromise” correctly. Besides the habit of analysis, what marks the mind of the strategist is an intellectual elasticity or flexibility that enables him to come up with realistic responses to changing situations, not simply to discriminate with great precision among different shades of grey.

 

Steps in Strategic Thinking

 

1. Pinpoint critical issue in the situation.

In problem solving, it is vital at the start to formulate the question in a way that will facilitate the discovery of a solution.

Limitation: The questions are not framed to point toward a solution; rather, they are directed toward finding remedies to symptoms.

Isolating the crucial points of the problem- in other words, determining the critical issue- is most important to the discovery of a solution.

The “key” at this initial stage is to narrow down the issue by studying the observed phenomenon closely.

Abstraction: Brainstorming, opinion polls used to assemble and itemize various analysis parameters or variables.

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To be continued....

The Lehman Story

The history of Lehman Brothers parallels the growth of the United States and its energetic drive toward prosperity and international prominence. What would evolve into a global financial entity began as a general store in the American South.

Henry Lehman, an immigrant from Germany, opened his small shop in the city of Montgomery, Alabama in 1844. Six years later, he was joined by brothers Emanuel and Mayer, and they named the business Lehman Brothers. The firm, thus, was founded in 1850.

 

Cotton was the cash crop of the time, and the Lehmans accepted it from the local farmers as currency to settle accounts. The brothers traded the cotton for cash or merchandise, becoming brokers for buyers and sellers of the crop.

In 1858, they opened an office in New York, which was the commodity trading center of the country.

 

1860-1869: Expands its horizons

The Civil War disrupted the Lehmans' business. When hostilities ended, the brothers moved north and concentrated their operations in New York, where they helped establish the Cotton Exchange.

The post-war period witnessed the rapid growth of railroads, sparking the transformation of the nation from an agrarian to an industrial economy. At the time, Lehman Brothers' future merger partner, Kuhn, Loeb, was underwriting much of the financing for railroad construction.

Railroad bonds represented a significant advance in the development of capital markets. Their affordable price attracted a great number of individual investors and Lehman Brothers, recognizing a trend, expanded its commodities business to include the sale and trading of securities. The firm also moved into the area of financial advisory, which provided the foundation for underwriting expertise.

 

1880-1889: Going global

 

During the vigorous economic expansion of the second half of the 19th century, Lehman Brothers broadened its expertise beyond commodities brokerage to merchant banking. Building a securities trading business, they became members of the New York Stock Exchange in 1887.

Setting the stage for future global growth, Jacob Schiff, a Kuhn, Loeb partner, led the firm to establish investment-banking relationships in Europe and Japan.

The firm acquired a seat on the New York Stock Exchange in 1887 and underwrote its first stock offering in 1889.

 

 

1900-1909: Financier of emerging retailers

At the turn of the century, Lehman Brothers was a founding financier of emerging retailers, including Sears, Roebuck & Company, F.W. Woolworth Company, May Department Stores Company, Gimbel Brothers Inc and R H Macy & Company.

 

1920-1929: Focus on consumer industries

In the 1920s, Robert Lehman perceived dynamic changes occurring in the nation’s economy, and focused the company on rapidly-developing consumer industries such as retailing, airlines and communications. Lehman Brothers was a strong supporter of the entertainment sector and advised on the consolidation of major movie theater chains. Start-up ventures, including film studios RKO, Paramount and 20th Century Fox, benefited from financing arranged by the firm.

Triggered by the stock market crash of 1929, the depression placed tremendous pressure on the availability of capital. Lehman Brothers was one of the pioneers of innovative financing techniques such as private placements, arranging loans between blue-chip borrowers and private lenders. These loans offered strict safeguards and solid returns for lenders, while enabling borrowers to raise much-needed capital.

 

1930-1939: Funding capital

 

The 1930s witnessed the explosive growth of radio and experimentation with a developing technology called television. Lehman Brothers underwrote the initial public offering for DuMont, the first television manufacturer, and helped fund the Radio Corporation of America, known as RCA.

Beginning in the 1930s, the increasing demand for oil set off waves of wildcat drilling in search of the resource. Companies like Halliburton and Kerr-McGee relied on Lehman Brothers for capital to fund their activities.

 

1940-1949: Becomes an important financial advisor

The end of World War II ignited an unprecedented era of prosperity, fueling the growth of consumer industries such as home appliances and auto manufacturing. Lehman Brothers became an important financial advisor and underwriter for many growing companies and established a number of long-term relationships that are still active today.

 

 

1950-1959: Start-up financing, IPO underwriting

Economic expansion accelerated in the 1950s with the dawn of the Electronics Age, and Lehman Brothers arranged start-up financing for companies such as Litton Industries. The Firm also lent its expertise and advisory skills to Burlington Mills, Schenley Industries and American Export Lines.

This period was also the beginning of the computer era, and Lehman Brothers provided IPO underwriting for industry pioneer Digital Equipment. The Firm later arranged the acquisition of Digital by Compaq.

The travel industry benefited from the sustained economic growth of the period, and Lehman Brothers sponsored the IPO of Hertz Rent-a-Car. The focus on transportation and travel continued into the 1960s, with Lehman Brothers advising Ford Motor Company, TWA, American Airlines and Continental Airlines.

At this time, consumer-driven companies such as General Foods, Campbell Soup and Philip Morris turned to Lehman Brothers to help finance the growth necessary to satisfy burgeoning demand for their products.

 

1960-1979: Works with leading players

By the 1960s and 1970s, many of Lehman Brothers' clients were expanding overseas. To meet their financial needs, the firm opened an office in Paris in 1960, followed by a location in London in 1972 and Tokyo in 1973. This growing international presence was enhanced by the merger with Kuhn, Loeb.

With continued advances in electronics and information technology in the 1970s, Lehman Brothers worked with leading players such as IBM, Digital Equipment Corporation and Loral. It acquired Abraham & Co in 1975.

 

1980-1989: Amex acquires Lehman Brothers

In the 1980s, Lehman Brothers played an important role in the dawn of the Information Age, helping fund such companies as Intel and new technology businesses of the period, which later became the leading players in the high-tech revolution.

During the robust merger and acquisition activity of the 1980s, Lehman Brothers advised companies such as Chrysler, American Motors, General Foods, Philip Morris and Hoffman-LaRoche on expanding domestic and international operations.

In the mid-1980s, breakthrough research in the life sciences introduced the biotech era, revolutionizing the healthcare industry. Lehman Brothers assisted a number of new businesses in obtaining the capital needed to fund research and development. A leading advisor to the healthcare sector, the Firm worked with major pharmaceutical companies during the international consolidation and globalization of the industry. In 1984 American Express acquired Lehman Brothers and merged the firm with Shearson.

1990-1999: Becomes independent   

American Express divested Shearson in 1993, and the independent firm once again became known solely as Lehman Brothers.

The firm became independent in 1994 through a public stock offering and Lehman Brothers Holding Inc. common stock commences trading on the New York & Pacific stock exchanges.

Lehman Brothers opens an office in Tel Aviv, Israel, building upon its long-term presence in that country.

 

2000+: Celebrates 150th anniversary

Lehman Brothers celebrates its 150th year anniversary.

The firm joins the S&P 100 Index and its stock price hits $100 for the first time.

Lehman Brothers becomes the first firm to underwrite corporate debt on the Internet.

The firm launches LehmanLive, a web site that offers clients around the globe access to a vast array of services and proprietary information 24 hours a day.

 

2001: Brings the first IPO

The firm resumes fixed income trading two days after September 11 and equity trading when US markets open.

Lehman Brothers brings the first IPO, Given Imaging, to market after September 11.

The Firm buys 745 Seventh Ave. for its new global headquarters in Midtown Manhattan and purchases additional space in New York City and New Jersey.

Lehman Brothers becomes a member of the Amsterdam Stock Exchange.

 

2002-2004: Moves into new global headquarters

Lehman Brothers moves into its new global headquarters in Midtown Manhattan in 2002 and establishes the Wealth and Asset Management Division. It also executes the largest financial services IPO in history for CIT Group, and the largest European leveraged buyout in history for KKR and Wendel Investissement. Lehman Brothers acquires Lincoln Capital Management's fixed income business.

Lehman Brothers acquires Neuberger Berman in 2003 and moves to its new European headquarters at 25 Bank Street in Canary Wharf.

It moves to its new Asia headquarters in Tokyo's Roppongi Hills in 2004 and executes the largest capital markets transaction in the history of the US utility industry for Pacific Gas & Electric and the largest IPO globally in 2004 for Belgacom SA.

 

2005-2007: Opens office in Mumbai

Lehman Brothers achieves record revenues, net income and earnings per share based on record results in each business segment and region in 2005. The Firm's assets under management grow to a record $175 billion. Named ‘Best Investment Bank’ by Euromoney in its 2005 Awards for Excellence.

Lehman Brothers opens an office in Mumbai in 2005.

In 2006 Lehman Brothers ranks #1 in the Barron's 500 annual survey of corporate performance for the largest companies in the US and Canada.

Lehman Brothers ranks #1 ‘Most Admired Securities Firm’ by Fortune in 2007. Also acts as financial advisor on largest-ever M&A transaction in financial institutions sector: $98 billion acquisition of ABN AMRO by a consortium of the Royal Bank of Scotland, Santander and Fortis.

Creates the Lehman Brothers Center for Global Finance and Economic Development at Spelman College. Establishes the Council on Climate Change.

source: Lehman Brothers&economic times

The Hair-Cut

I recently got a new hair cut..admired by some and rejected by some..but "the business-look" by most..


Is this what we do here..at B-school??Lets find out...

Where do I stand today after three months of rigorous work pressure: As a little confident, little more knowledgeable, a little apprehensive because of market effects and little more stressed with work load piling up!!



Whether I would land up with a good job, is NOT the most important issue for me..will I be a better person than what I already am, is! If I would be able to deliver the best, and be the best in the field I work in..in the BIGGEST priority for me..and so to work towards the same now, is even more important.



I read another book, despite work pressures, and even more social pressures..

Its called "Who says elephants cant dance"...one of the best-sellers.

Its all about strategies, strategies and even more strategies..(yes in compilation with the earlier aspects of the books which I have mentioned din my earlier posts:employee relationship etc...)



The book practically took me closer to myself..the dust of old times swept clean.

Its not about talking about myself..its more about the feeling of being able to do, what as a student I was able to implement at an early age of 12-13years.

1. To understand the concept of organisation culture, and defining Victory on this alone.


2. In competition, culture is not one of the elements to win, it is EVERYTHING..


3. Understanding both the need of the consumer and your own people is most important, because if you dnt know your own strength then you will never be able to get the best out either.


4. If needed, the organisation structure must be changed, afterall..its the organisation which needs to sustain, and at a profit.

I implemented all this and more when I was at school. As the head of a student organisation, I had implemented, out of instinct, what would be best for my group. Not only did this common sense work, it took us from the spot of number3 to Number One.

I mention this today just for my personal knowledge, just in case I underestimate my capabilities or forget about all this in future.

One of the important things which is changing our purview, is Market research subject, one of major contributors towards our growth.

The focus, the objectives, the approach, the learning and implementation which takes place side by side, and the overall brainstorming which follows after each session, within our groups....what more can one say. We are learning what most people learn after working for years at an organisations..and I can challenge, we are learning it better!!

Our ongoing project is on the study of Rose and Gerbera growers/cultivators, in India.

But the theoretical base forms the basis of every and any Applied Market research!!

Be back soon with the rest of the story soon...

The MBA life

I'm sure its nothing new, that I potray here today. Its as if every MBA(ian) is going through the same thing, but maybe my feelings and perception say more about it, than just the HELL part of it!

Today was no different, another presentation, and another day to study for the test tommorow.
The days..seem to fly by, and the books are seeming to pile up in front of me, than making me feel that I know something already.
Its right, I do know something, but all this is beyond that too..it challenges my abilities and challenges what I had learnt earlier.
They say, there's a lot you need to "unlearn" and "relearn" here.

Phew! but I'm glad I'm doing fair enough than others, who have to struggle too much. I may not be a very flexible person, but atleast I analyse and then accept or reject whatever comes my way! And I give the other person a chance to prove their point.

Our classroom is big enough to accomodate around 60 students, and guess what..I'm in the category of first bencher(s), only because I cant see the board well from behind(my eyes!)
My will power, that I came here to be something, is constantly moving me..yes it still is..
And if I tend to move away from my focus of learning and applying it practically, I let myself loose for some time, that is let myself daydream and then again come back to reality.
I just read a blog of Robin Sharma, the famous consultant, who says: that in order to rejuvinate yourself, it is important you take breaks and do what would relax you..nature, a sip of coffee in a quiet place, etc...
Yes, Mr.Sharma...thats exactly what I do..

I love to DAYDREAM

And another thing I love to do is to read a book. But this time, I'm not reading a fiction but a real life-based book. Called"Snapshots from Hell"...as if written on my own story.
Naahhh...Just kidding..
My life isnt that Hell afterall..Its not how you make it..Its how you feel about it!
And I feel that I'm having a lot of fun, learning a lot of new things and keeping quiet and Listening...
Another Jargon of MBA..but applicable in every aspect of life.

I'm still a human, and being that I'll try remaining that till I live here..

Its been a long time since I wrote here, I hope I've improved..if not, I'll try again..

Rose and Gerbera1

We have a group of 10people: 4 Gir;s and 5girls, with 3 of us with agri backgroud and one a Marathi speaking girl and others engineers

, and were assigned a project which will be carried out for the coming two semesters.

We have to make presentation(s) on the same every week...and every week we will be moving one step deeper towards getting to know about this topic, and hence in a way be able to know each and every, big or small thing associated about the topic.



The topic assigned is "Cut Flower: Rose and Garbera"

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As soon as the class got over, we all got together to discuss on how to complete or should I say manage to complete the first presentation in 2days, including today!



We first of all decided all the topics that we would cover in it, since it would only be an overview, we made a long list of things which could be inculcated easily.

The topics included:

1. The origin, botanical and geographic aspects.


2. Th commercial aspects


3. The technological aspects


4. The SWOT analysis


5. On India level, the market and demand, etc.

It wasn't difficult to communicate, what each of us wanted to pick out. I suggested that the agri-people take up the topics which they feel they are best at. I was in a way, positioning them towards there strengths and what they are most effecient at. And my suggestion was humbly taken too.

The other suggestions that people from the group gave were that we should all set a time limit, so that each one of us has enough time to manage other assignments and personal works, and also work on the material to be gathered. Also, one of them suggested that we could use art-clips(for ex: on powerpoint we could put up a clip of flower petals opening).

We gave around 4:30hrs, to everyone for all there work and the presentation. And like all, I was also assigned a topic, for which I will now start..

When success means no barriers

In my last post, I had mentioned about the simple book, which can teach all..Here are a few things which I get to realise, and be able to see the common mistakes people make at their business end.

1.To demean the value of every and any employee, big or small.
2.To focus on only growth or only profit, and if a small enterprise, to only focus on market capturing.
3.To not question the basics questions of survival, our potential, our strengths, our weaknesses and our threats.(just like SWOT analysis)
4.The importance of communication at ALL levels.
5.The ability to not only generate ideas, but the power of execution.(there is a common saying that ideation without execution is dillusion)


There are many other points as well, but they are interlinked to the ones mentioned above. Not that we or our company never faced or focused on many issues mentioned above, but to maintain the focus and on some occasions, the ignorance towards some basic things, did cause a lot of trouble.
The ideology, or the path this book provides, simplifies all such issues...it though only shows us the direction through live examples, there's a lot more that can be explored within the company for better inculcation of the methods this book provides. It all comes to the basic conclusion that if one does not know his/her company well...they cannot succeed beyond a limit.

Its not about mugging up those balance sheets, as the book also says, its about knowing and caring for both the product and the product makers(your employees).
And most of all "the customer and consumer"

I often heard my father say, that power cannot be in the hands of a single person, it has to be distributed wisely amongst those who are capable. But, if you think you can run a "One Man Show", you'll end up being a "One Man Company". Give your eligible employees both the space and time to deal with few things themselves, those things which they are best or good at!
Let them decide, what is best for the company, and hence make them a part of the company..it is more like a family feeling then..
I understand, how much meaning his words have. Not everyone is after money alone, there is also respect, recognition and power, which lure people.

I'm still waiting for the best to come, though this book is on the verge to be finished soon..

Just another Day

I'm reading a new book called "what you ceo wants you to know"
Its only been two chapters and the book already makes you understand the basics of business.

I had few doubts how well I would be able to understand whatever this book is meant to teach. However, when one of the World's best consultant is out there to do something, they do it for the masses..
Its a masterpiece and something which teaches you in a very simple and effortless manner.(thats what it seems)
I guess, it was how Mr.Ram Charan was able to interpret things, the book clearly captures his view point, his focus and his simplicity.

I may not be an MBA or even experienced enough, but what this book is giving me Now, doesn't require any qualification to understand.
Yes, its THAT simple.

As a amateur this book is changing my thought process, I'm able to see and understand the basic common sense of a business and most of all able to understand the depth of various aspects of business.
It also proves the importance of Employees at every level in an organisation. They have a significant role to play, in the time(velocity), growth and cash generation of a business.
Not only is it important to have a direct contact with the employees, but also with the customers and consumers. Another very common thing, which we tend to neglect(consumers&customers), the two different worlds.

The micro aspects are important, but the macro should not be neglected either. Time is the most important thing. Its both instinct and attitude which finally help in setting the right cord.

I hope to complete this book soon to start another one..I am going slow to understand and grasp each and every important thing, this book has to offer.
I dnt want to miss out on anything..just anything!

Really BIG things

I have always been a nature's child and being close to it has always made me feel more energetic and powerful!
However the idea of making business out of this love, has been a new thought. But how it could be executed 'is and was' one big challenge.

The pieces of this puzzle is now falling into its place as I am exploring and getting my mind focused towards the outer world and the things involved.
The first one thing which helped me strike the cord is, Burj Dubai. Its profiling and construction was being shown on television the other day, and one could only awe at the Magnificent Mega Structure.(why can't we own it, damn it!)
Anyways, its for the richest and famous!
But this really really really BIG thing is one of the masterpieces in modern world, and guess what?!...all the apartments are already sold!!

Ofcourse I thought and wished I had enough money to buy one, and be a apart of the rich and elite(just think about the people who'd be living there..they would definitely not be ordinary)
But thats just a dream, for now.
Apart from the way I was thinking about this "city-cum-building", I was also thinkiing about a place more close to nature, all green and fresh and beautiful.
Wouldn't you want a house near a beautiful waterfall, with greenery around and everything fresh and hot served, whenever you want?!!
Wow..think of the comfort and coziness of such a place!!!!

A wooden home in the heart of a green valley or so, with total privacy from outside world(or whatever option you prefer, coz now internet is available anywhere), with good and fresh food and milk, being served directly from the farm. And note, this food will be organic, no chemicals used at all!
There would no problem of water or cleanliness ever in your life, because there would be water waste management and rain water harvesting mechanisms. There would be fuel from gobar gas plants and electricity from solar cells or windmills. However, the trees would be so planted that you would never need to put on the fan. There would be no AC, only coolers, but as I mentioned you wnt need them.
So, fresh Air...and do you know what would be the best thing above all these...
You would be able to see clear sky at night!

Have you ever been in a village? At night you can see so many stars that you would wonder where they hid, when you tried to see them at night. Its as if, the whole sky is covered with them. And try sleeping under this cover of stars..you would have the best sleep of your life!
"taaron ki chaanv me"

I long to sleep that way, the beauty and the coolness both are out of this world.

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Building each of such homes, and services would give me the opportunity to realise my dream and be a part of the green-revolution. We today live with almost everything ready-made and unnaturally produced. The side-effects of which are coming out now. Bad health, depression, new forms of diseases, and what not.
Why not be a apart of the Nature, which produced us!
Remember, the Nature will give us, what we give it..

Add that depth!

What 'drives' a company MOST?
The product they sell...
The quality they offer...
The market that they enter or exist in..
OR
The CEO?


Reading and hearing of both the small&successful and big&successful, which ironically follow the same mantra and maintain the same focus, it becomes even more clear that apart from destiny and many such factors, there's only ONE thing that can and will put you up with those we read about.
And that is: Your attitude, as the one(owner/CEO/Chairman...etc etc)

Many a times, we hear about looking at the big picture, rather than the small..which to me means, to be able to take risk or compromise for now, for better results tomorrow. This means two things,
one: to take care of the immediate problems First!and then creating the Structure on this solid base,
and two: Never being selfish to not let others benefit who have been a part of the the process, if everyone is benefiting from this win-win situation, only then will the effect of this success last forever(esp as a beginner)
I read somewhere that this was the strategy of the famous madwadis

But compromising is one such factor which cannot be applied everytime and in every situation. It varies, for ex:you will never compromise on the quality of your product just because there are temporary financial restrains, but you can compromise on the expenses or the quantity produced, for the time being.
Ofcourse, one should never let a situation get so worse, that you have to make compromises on the quantity, so planning is very important. Again, we have to consider the Big picture.

As I was mentioning, what drives a company is how well the Driver is!! If the Driver is smart, he'll take care of the car, wash it daily, get it serviced on time, and repair if any punctures or other problems arise and if he can't repair it he'll get it repaired by someone.
So, even if the car is a model of the 80s, it'll shine and work smoothly. Oh yes, even with bumpy roads like these..

But, one must not forget, that change is inevitable.
If you do not change with time and need, you are left behind. However, I leave this concept to the business line only, not at all to the personal agendas. Those run on different fundas and bases!

So, to judge a company and how it will function in times to come..one MUST first look at the...
DRIVER!!

Another Amazing Insight!

GURUsPEAK : Ralph Wanger

Author of the immensely popular investing book, ‘Zebra In Lion Country’, Ralph Wanger’s investing style was simple. He isolated small Companies with financial strength and passionate managers that ran businesses that could be understood. He did not deviate much from these simple tenets and thus made a lot of money for his funds. Here are some nuggets of wisdom:

* One lesson 1973-1974 taught us, repeated in 1987, is that bear Markets are great times to load up on stocks. In the third quarter of 1974, when the market was reaching its bottom, the weighted average price-earnings ratio of the Acorn portfolio was a mere 4.3 times estimated 1974 earnings. Stocks don’t get cheaper than that.

* Value stocks have another attraction: they are constantly in fresh production. A new batch often appears when the troubles of a few leaders taint a whole industry.

* Trying to sell an illiquid stock in a down market brings to mind the galley slaves in Ben-Hur, chained to their bench while the ship sinks.

* Value investing is basically based on a static analysis, a concentration on value right now. Your value investor might wear a T-shirt that proclaims ‘We don’t pay for the future.’ The growth investor thinks about where the company will be in five years.

* When people ask how we’ve managed to get our results [at Acorn], I tell them it’s not by avoiding disasters, because I have had my fair share of them. That’s understood with small cap investing. But if you manage to own some stocks that go up ten times, that pays for a lot of disasters, with profits left over.

* You can’t make five or ten or twenty times your money if you don’t hold on to stocks. Most people are delighted when a stock doubles, and quickly sell to lock in their gain. If a company is still performing, let its stock, too, continue to perform.

* Since the industrial revolution began, going downstream - investing in businesses that will benefit from new technology rather than investing in the technology Companies themselves - has often been the smarter strategy.

* The best assurance of continued growth, and high profit margins, comes back to this: the company should have a special niche in the marketplace, so that sales don’t depend on offering a commodity item at a lower price than the competition’s. It should, to a degree, dominate that niche....

The best company in a marginal industry is worth more than the third-best company in a major industry. I’d rather own the shares of Hokuto, the leading mushroom grower in Japan, than of Mitsubishi Motor or Subaru.

* Glamour has nothing to do with a niche’s appeal. A dull business run by a good businessman is far better than a glamorous business with mediocre management. And even if the glamorous business is run by a genius, often, in that kind of industry, its competitors are also geniuses, so nobody has an advantage, as I’ve commented about high-tech Companies.

* Good management to Wall Street means nothing more than a company with three consecutive quarters of rising earnings. Make it four quarters and you have great management. But exciting performance numbers by themselves aren’t enough to qualify managers as superior, at least not in my book. One good year or two could be a fluke. Or maybe current management’s predecessors set operations up so well that the incumbents haven’t had time to wreck everything.

* Managements can be guarded, especially if they know we [Acorn fund] own a lot of their stock. But their competitors will usually talk freely about them. It’s like trying to find out about a young lady you are interested in. If you ask her mother, you are certainly going to get a different perspective than you would if you asked the boyfriend she has broke up with. We like to hear what the boyfriend has to say.

* No mutual fund manager who relies on market timing has kept his job for fifteen years. Individual investors who try to time the market will be tossed on the same horns.

* Small is good, micro is not. For the littlest Companies, it’s like auditioning for the chorus line: one misstep and you’re out. I’ve made it a practice to stay away from the start-ups, the tiny techs, the near-venture-capital situations. I want Companies that are established and whose management have proven, at least thus far, that they know how to run a company.

* Deciding on an investment philosophy is kind of like picking a spouse. Do you want someone who is volatile and romantic and emotional, or do you want someone who is steady and trustworthy and down to earth. If you want a successful investment career, you’d better bind yourself to a style you can live with....

The Feminist Version

Opening new frontiers: Story at the bottom of the pyramid
-Anita Motwani(senior VP(marketing), Max New York Life Insurance

Rural India seems to be the latest flavour in town. From finance ministers to corporate India across industries, everyone seems to be shifting focus to the bottom of the pyramid. All boardroom discussions are getting centred on finding ways and means to grab a share of this lucrative pie. Numbers look seductive with statistics and data giving enough evidence of volume potential...smaller ticket sizes but more buyers making it eminent for most industries to ignore this segment at its own peril.
With near saturation and cut-throat competition in urban markets, there is almost no debate left on the potential of the rural population whose incomes are rising and mindsets are changing. While certain industries like FMCG have made an early entry, others are learning the ropes with each passing day. Most industries are trying to test the waters through various forms of pilots and test launches, with n clear indicators of gains in the short run. But there is no denying the long term potential is vast, but so are the challenges.
Till recently, a large part of marketing was done targeting the Urban Consumer, and with most marketers having no prior exposure to the rural audience, they are applying the same rules to connect with this completely different segments. THE MISTAKE that most companies make while chalking their rural strategies is to treat the rural consumers as an extension of the urban counterpart. The other common mistake is to treat rural consumers as a homogeneous mass without segmenting them into appropriate segments. The most relevant point to note is that this segment is extremely fragmented and spread out over a large geographical base. The cultural and behavioural differences vary not just from state to state but from villages to villages. Mapping out this difference in consumer behaviour is the key to any successful rural strategy.

A recent insighting exercise in India's villages has revealed some interesting trends:

• From buffaloes to beauty parlours

Farmers verging on retirement, sensing the decline of their own profession, are encouraging their children to enter different vocations. Around one-fifth of rural households now generate their primary income from a salaried job or a small business. Besides small village shops, loans are being taken for novel business ideas like beauty parlours, popcorn machines, spice factories, tailoring shops, etc. A villager equals farmers is true no more as life has moved beyond farming and agriculture.

• Don't just sell dreams, tell them how to live their dreams

Thanks to the TV having made substantial inroads into rural homes, villagers have also learned to dream. Everyday they are exposed to images of ordinary people scaling extraordinary heights. This has given them enough hope about their own future, but where they flounder is the "way" to go about it. It is here that measured approach consisting of small actions, one step at a time, finds better acceptance and credibility. Actions where outcome can be measured from time to time and results are visible in the near future. So, go ahead and sell them dreams, but at same time give them a solution and a formula for it to materialise.

• Not just economic but emotional security

Even though they are receptive to new ideas, they do not readily dash into ventures. They do not only want economic security but also emotional security. They are likely to welcome innovations that satisfies their sense of security. If they feel that a particular idea will help them improve their economic position or their social relationship, they will accept it. Selling a product to them is not a cold commercial transaction(but) an agreement of trust between the marketer and the consumer. And companies that live up to the trust that this consumer places in them will benefit immensely in the long run.

• Their children are like stocks in a portfolio

Its alws known that family ties are very strong in hinterland, but the difference is in the proportion of family budget that is being allocated to the children, esp the male child and his education. Son's education in a pvt school is like a stock market investment that is bound to yield return far greater than any other investment. Any marketing effort that appeals to this agenda is bound to catch his immediate attention.

• Sharing risks and rotating savings

This insight is the basis for the SUCCESS of all micro-finance ventures in rural India. A simple model that lends on the back-up commitment of small groups has minimised risks and reduced bad-debts to near zero percent (certainly doesn't need the intervention of finance minister to help instt recover their money)!Some of the other industries that can leverage this to their advantage are Insurance schemes that offer group products and innovative saving schemes.

• Community empowerment and Inclusion

The rural communities have not been empowered in the past. So they do not participate in the development process. A participatory model that mobilises the community and makes it responsible for its own well-being is bound to find greater success. The attempt should be turn villages into entrepreneurs and keep the ownership of the various projects with the community. Given the vastness and diversity of the geographies involved, marketers would do well to leverage the potential of villagers themselves by creating entrepreneurial communities. Make them an extended team of your business and let them grow with you.


A last word of caution, the companies the rural markets must do so for strategic reasons and not for tactical gains. The rural consumer is still a "closed book" and it is only through unwavering commitment that companies can hope to make a dent in this market. Not to forget that it has to be a revolutionary and not just evolutionary business approach that will open new frontiers of consumer demand and create an emerging market within a developing market.

A Business Idea or A passionate Dream?!

My love for food has been undeniably strong, ever since my taste buds experienced the differences, as a child!
http://the-food4thought.blogspot.com/
So, I thought of sharing the ideas, thoughts, etc through a new blog.

Interestingly, the more I see and hear about it..the more I smell the prospect of a good business..
Hmm..
My passionate dream becoming a Business idea?!
Yes..someday..
But the planning is on, from Now!

When, Where, Which, Why and How. The 4 W's and and H.
I know the answer to Why, only the rest is to be achieved.
Having a food chain ultimately, with all the delicacies one can imagine, and with no table unturned..
I mean, with possibly every menu on the dish, local or foreign!
BUT...
There' a lot to be achieved before that..
A standardised recipe (like Mc-Donalds), Quality, cleanliness, efficiency, fairly cheap Bill, etc etc etc..
And my target would be..everyone..
From lower middle class to Upper class.

Thinking of this, I want an idea how to achieve this target. Because, upper class peope dnt normally go to places where Aam Admi goes, and vice-versa is true as well.
So, should there be different sections in the same restaurant, or different restaurants in the same area?!!
POINT TO BE EXPLORED!!
I must find a way out for this problem as well..

Like most successful chains, I will also have to maintain the taste of the items we sell..
So, a standard recipe is a must.
But before all this, I want to explore all the varying kinds of dishes of various "locals". One of the best things about this country...you have so much to explore, that a lifetime may be small..
But then, it is also important to set a collection of recipes, which would be same everywhere, no matter where the restaurant is opened. The rest can be in accordance with that place!
And then, we can take our "Made in India" brand, to the World..

Yummm!!!

The First Book

Ahem..
Its not everyone's comfort zone, I know. But since this student kingdom has every aspect to follow, I thought this is a MUST to mention!!

I have always been fond of books, novels in particular, since they've been the best imagination tools. And till date, the best one I've read is Eragon. Yes, the same one from which the movie was made. But like Harry Potter fans say, the book was better than the movie, I couldn't more agree with them on Eragon as well.
Anyways, so when I thought of getting some "gyan" through the books the BIG business people read..I searched through a lot of forums and found a bunch to munch.
However, I was very much unaware that my first book, wasn't actually or directly related to MBA or business culture. It is actually the end of this dragon tail.

Its called... "The Monk Who Sold His Ferrari" by Robin Sharma.
And those who have read this master-piece, would surely agree that this is one of those rare books to get all hands on..One which has the basic essence of time, of possessing hidden energy and power and most of all of valuing the people around us.
It wasn't anything I expected it to be!!
First I never ever expected that the title of the book was so literal to whats inside it.
Second, its narration as a story, and very unlike those confidence/motivation booster books, we come across. So it sends out its message in the most simple manner.
But as I said earlier, its the tail of the dragon. Either a beginner or a professional, when you start to think on those lines(simple lines) you get that deep sense of being. A sense of yourself and those around you.

So..go on and have a bite!!I'm sure you won't regret it..
:)

After this one..my second book is.. "What your CEO wants you to know" by Ram Charan.
I'll surely mention about this one later.. I know it will take time to grab and apply what this has to say. Coz I'm as amateur as anyone..
So, be it..lets move on with the book love...

A discussion on success..

Me and my friends got together yesterday to celebrate my "finally" getting into one of the better colleges of the country.
A treat for them, and a joyous moment for us.

We talked about everything: how it all started, the way we all got stuck, and yes, the way a few of us, finally made it into different B-schools.
But...one thing, which caught our attention, was the troubling fact of not getting the desired results. Although the enthu with which we all started was higher than an average person, we hoped (practically enough) to be a part of a list of colleges, which everyone dreams to be in.
The mock tests, the GDs, everything was quiet satisfying, but the RESULTS weren't.

But as I've mentioned before, one gets tough facing these failures. I didn't even cry after my CAT exam, which went in the bin, right away! Because while giving it, I knew its GONE.
And then and there I set my target for the next best place..
Ahh.. these bitter experiences...

But life means to move on...and so did we.
It is one of the changes you'l notice about self, when you are fighting for such places and seats.
That, though winning "is" the only thing that matters, but if you loose, do NOT give up to try again or other options.

Atleast I didn't...

But yes, I do expect to know the basis of my rejection. The reason and the criteria which these colleges and for that matter, every college uses to select students.
Because none of us(me and my friends) expected to not get into one the colleges which was on our list.

Should I say its unfortunate for us, or should I say its deliberate on there part..that not all the colleges, have transparency towards there selection procedures. Infact, to reveal the placements, is another category,where its hard to know whats the truth. For ex:they never mention the lowest salary package that a student gets, or in many cases, they won't even upgrade there website.
How should a student know, where he stands...until and unless he/she has a clear idea whether they'd make to the college or university of there choice. We all fill the forms and then get nowhere even near that institute. On the basis of a small hope, we go ahead, wasting all the money, time and effort.
Its quiet a Guilt to realise, that all that hard earned money of our parents, just got wasted.

All these false hopes and dreams may never end till the end, thats around first week of April. And till that time, we carry on...


I'm sure frustrated, like all my friends and fellow students, because we thought hard work matters.

I got selected in a good college, but its not about where you finally land up.
Its about that hope one has, and the hope your family has towards you.
I did succeed in giving back that hope to them, and to myself.
Its not IIMs, but so what... It doesn't matter where I am, what I am, does!!
And to succeed, thats all you need: Know Yourself!!

Know your strengths, know your talent(s) or explore and find that hidden talent and be Unique.
"The Unique You" is the first thing these people want to see.
And the rest will fall into the RIGHT place.

Best of Luck..

Is it FINALLY over...??

Didn't we already have had enough of pressure, getting into a good B-school, that the banks also were ready for another of there tricks!?
yeah...a bit of frustration there as well..with EDUCATION LOANS

My first assignment(unofficial) was getting an education loan. And like all those people who are on a high after getting a good call converted, I just acted like a manager, made a BIG BIG BIG list of the loans available from various banks.
Go to the net, and you'l have everything (I thought!)

duh!
But how would one know the nature of minds of those sitting on BIG posts at these so called nationalised banks???!!
(wait, to hear more...)

So...me and my list were all very happy, with the list of comparison between various banks..
With each and every column ready: Loan amount, Rate of Interest, Margin, repayment period, Incentives if any, and so on..
I just patted on my back, to have completed a complex task so very easily.
Now all I had to do was, go to the bank which offered the best deal and get the loan..
wallah!!
(wait you idiot, to face the REAL world)

With the most genuine smile and the look of a "big war won"(for getting selected in a good instt.) I went to the bank XYZ, to meet the manager.
Me: Sir, I am so&so, got selected for abc instt. and require a loan..
He cut me..
Him: Hmm...so do you have an account with our bank, or your father??!!
Me(ALL SHOCKED!!): Excuse me Sir!?
Him: Do you have an account with us? Or your father??
Me: Ahem! No sir, actually I'm here for the education loan..
Him: Yes, I'm talking about the same. If you dnt have an account, you won't get a loan!
By the way, where do you have an account?
Me: Sir, so&so Bank.
Him: Then try there itself. They also provide loans..
I was getting the shock of my life, just because you don't have an account, you won't get a loan????No such thing was mentioned at the site or by RBI!
Me: Sir, but..
Him: See, until and unless you have an account here, and that too an old one, we can't do anything.
Now, I was really angry, and better thought of leaving than arguing with a person like him.
Then I thought of approaching the next bank on my list: SBI.
Thankfully it didn't deny the loan offer, but its interest rate was higher than others. But one point to be noted is, that for upto a loan amount of 7.5Lacs, it doesn't require any collateral(it means a guarantee through property or bonds,etc) That is why the interest is high, since the risk is high!

I did apply for loan there, but I wanted to explore other options as well, the interest rate being one concern and yes, the requirement of security, the other.
Upto 4Lacs, no bank would ask for any security, but your parents and guardian would be co-borrowers. But you wnt have to mortgage your land or other assets.
However, the Interest rates of banks vary. In some, there is FIXED interest rate, and in some it is FLOATING.
Its very important to keep these factors into mind, before applying.

Most of the Nationalised Banks I visited, demanded an old account with the same. It was a real disappointment, because a genuine student would not be able to avail a good loan deal for such reasons. I could not understand why such a demand. Though, before giving a loan, every bank demands proof of the person taking it and also the credit history(Know-Your-Customer, I once read in ET), but to fulfill such a requirement they'd ask for a copy of account summary of last 1year, if you are not there customer, and 6-months if you are there customer.
That is why, it frustrated me even more, that simply to increase there customer base, they adopted such techniques, and that too the nationalised banks!!

Since I had a deadline to meet, I thought else(than getting frustrated and cursing them) and applied to a bank. Not SBI, since I needed a loan amount much less, upto 4Lacs, and also since I didnt want to give the property papers. So, I applied to another bank, where upto 4lacs the interest rate is lower.
One thing to notice is, the interest rate in most banks upto 4lacs is different and it is higher above 4lacs. Also, the repayment period varies accordingly.

In view of incentives provided, different banks have different policies.
Some would even provide a 1% concession for girls. But mostly, the 1% concession comes, in case you start paying in the period, while your studies are going on. During your study period, the money is Simple interested. But later, that is, either 1 year after course completion or 6months of job, it is Compound Interest.

Here's a brief idea of how it is in SBI:


Eligible Courses

All courses having employment prospects are eligible.

• Graduation courses/ Post graduation courses/ Professional courses
• Other courses approved by UGC/Government/AICTE etc.

Expenses considered for loan

• Fees payable to college/school/hostel
• Examination/Library/Laboratory fees
• Purchase of Books/Equipment/Instruments/Uniforms
• Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tution fees for the entire course)
• Travel Expenses/Passage money for studies abroad
• Purchase of computers considered necessary for completion of course
• Cost of a Two-wheeler upto Rs. 50,000/-

Any other expenses required to complete the course like study tours, project work etc.

Amount of Loan

• For studies in India, maximum Rs. 10 lacs
• Studies abroad, maximum Rs. 20 lacs

Interest Rates

For loans up to Rs.4 lacs - 12.25% p.a. Floating

For loans above Rs.4 lacs - 13.25% p.a. Floating

Processing Fees

• No processing fee/ upfront charges
• Deposit of Rs. 5000/- for education loan for studies abroad which will be adjusted in the margin money

Repayment Tenure

Repayment will commence one year after completion of course or 6 months after securing a job, whichever is earlier.

Place of Study	Loan Amount	Repayment Period in Years
Studies in India	Rs. 10.0 lacs	5-7
Studies Abroad	Rs. 20.0 lacs	5-7

Security

Amount	For loans upto Rs. 10.00 lacs for Studies in India and upto Rs. 20.00 lacs for studies abroad
Upto Rs. 4 lacs	No Security
Above Rs. 4 lacs to Rs. 7.50 lacs	Collateral security in the form of suitable third party guarantee. The bank may, at its discretion, in exceptional cases, weive third party guarantee if satisfied with the net-worth/means of parent/s who would be executing the documents as "joint borrower".
Above Rs. 7.50 lacs.	Tangible collateral security of suitable value, along with the assignment of future income of the student for payment of installments.

All loans should be secured by parent(s)/guardian of the student borrower. In case of married person, co-obligator can be either spouse or the parent(s)/ parents-in-law


Margin

• For loans up to Rs.4.0 lacs : No Margin
• For loans above Rs.4.0 lacs:
  • Studies in India: 5%
  • Studies Abroad: 15%

Documentation Required

• Completed Education Loan Application Form.
• Mark sheets of last qualifying examination
• Proof of admission scholarship, studentship etc
• Schedule of expenses for the specified course
• 2 passport size photographs
• Borrower's Bank account statement for the last six months
• Income tax assessment order, of last 2 years
• Brief statement of assets and liabilities, of the Co-borrower
• Proof of Income (i.e. Salary slips/ Form 16 etc)

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Phew!
I applied on 28th feb, and still haven't got the cheque for the first instalment. If you have a deadline to meet too, you better hurry!!!
;)