Here are few steps to maintain the cash flow and to strive in the troubled times.
- Protect the cash flows and operating margins with emphasis on growing volumes.
- Better management of supply chain.
- Negotiate with the supplier on prices- clinch the best deal.
- Global buying of ingredients /spare parts to achieve economies of scale.
- Cut travel cost by at least 30 percent and use video conferencing.
- Hire selectively.
- Keep the inventory of finished goods to the minimum level.
- Collect the money as soon as possible from the trade.
- Rewrite the credit strategies.
Believe in yourself and in your country.
India is a country of hope and opportunities and progress.
Thanks
vibhor
Monday, March 23, 2009
Sunday, March 22, 2009
A food for thought.....
In August 2008, grocery prices soared and inflation ripped through the roof to breach the 12 percent mark.
The week ended march 7 inflation fells to a 30 year low of 0.44 percent from the previous week’s 2.43 percent (4 percent in January).
Such a sudden fall in inflation brings to fore another worry, namely Deflation.
What is Deflation?
It is sustained fall in prices that occurs when the inflation rate passes down below zero percent.
It merits attention that the current sharp fall in inflation is an outcome of :
- Correction in crude oil and commodity prices in the global markets and subsequent price correction in domestic markets.
The deflation is even more worrisome than inflation because it reflects too little money chasing goods and services. When prices start falling, a vicious cycle of lower spending and lower demand sets in, hampering growth.
As consumers defer spending, manufacturers cut production, workers lose jobs and household incomes fall. This, in turn, leads to drop in demand and a further fall in prices.
In these times most companies will be forced to sell their products at reduced prices, which means their sales and profits may soon start declining. And when profits get hit companies cut costs by cutting production and jobs. One devil will lead to the other – falling salaries will increase the burden you carry in the form of loans – home/car/personal.
During extended periods of deflation, equities as an asset class lose their significance as corporates deliver poor results.
Measures for Deflation:
-Measure to counter deflation is monetary policy operations by the central bank. By buying government bonds they increase the money supply and deliberately induce rising prices. Rising prices provide an essential lubricant for any sustained recovery because it increases profits and takes some of the depressive pressures off wages and debtors of every kind.
-And also theoretically government has to just print more money .Printing money is normally a pleasant experience for all governments. Printing more money increases the quantum of money in circulation making it easy for people to spend.
Vibhor
The week ended march 7 inflation fells to a 30 year low of 0.44 percent from the previous week’s 2.43 percent (4 percent in January).
Such a sudden fall in inflation brings to fore another worry, namely Deflation.
What is Deflation?
It is sustained fall in prices that occurs when the inflation rate passes down below zero percent.
It merits attention that the current sharp fall in inflation is an outcome of :
- Correction in crude oil and commodity prices in the global markets and subsequent price correction in domestic markets.
The deflation is even more worrisome than inflation because it reflects too little money chasing goods and services. When prices start falling, a vicious cycle of lower spending and lower demand sets in, hampering growth.
As consumers defer spending, manufacturers cut production, workers lose jobs and household incomes fall. This, in turn, leads to drop in demand and a further fall in prices.
In these times most companies will be forced to sell their products at reduced prices, which means their sales and profits may soon start declining. And when profits get hit companies cut costs by cutting production and jobs. One devil will lead to the other – falling salaries will increase the burden you carry in the form of loans – home/car/personal.
During extended periods of deflation, equities as an asset class lose their significance as corporates deliver poor results.
Measures for Deflation:
-Measure to counter deflation is monetary policy operations by the central bank. By buying government bonds they increase the money supply and deliberately induce rising prices. Rising prices provide an essential lubricant for any sustained recovery because it increases profits and takes some of the depressive pressures off wages and debtors of every kind.
-And also theoretically government has to just print more money .Printing money is normally a pleasant experience for all governments. Printing more money increases the quantum of money in circulation making it easy for people to spend.
Vibhor
Monday, January 12, 2009
Do the things you fear...and your fear will disappear.
Enjoy the power and beauty of your youth; oh, never mind; you will not understand the power and beauty of your youth until they have faded. But trust me, in 20 years you’ll look back at photos of yourself and recall in a way you can’t grasp now how much possibility lay before you and how fabulous you really looked….You’re not as fat as you imagine. Don’t worry about the future; or worry, but know that worrying is as effective as trying to solve an algebra equation by chewing bubblegum. The real troubles in your life are apt to be things that never crossed your worried mind; the kind that blindside you at 4pm on some idle Tuesday. Do one thing everyday that scares you .
Sing
Don’t be reckless with other people’s hearts, don’t put up with people who are reckless with yours.
Floss
Don’t waste your time on jealousy; sometimes you’re ahead, sometimes you’re behind…the race is long, and in the end, it’s only with yourself. Remember the compliments you receive, forget the insults; if you succeed in doing this, tell me how. Keep your old love letters, throw away your old bank statements.
Stretch
Don’t feel guilty if you don’t know what you want to do with your life…the most interesting people I know didn’t know at 22 what they wanted to do with their lives, some of the most interesting 40 year olds I know still don’t. Get plenty of calcium. Be kind to your knees, you’ll miss them when they’re gone. Maybe you’ll marry, maybe you won’t, maybe you’ll have children, maybe you won’t, maybe you’ll divorce at 40, maybe you’ll dance the funky chicken on your 75th wedding anniversary…what ever you do, don’t congratulate yourself too much or berate yourself either – your choices are half chance, so are everybody else’s. Enjoy your body, use it every way you can…don’t be afraid of it, or what other people think of it, it’s the greatest instrument you’ll ever own.
Dance
even if you have nowhere to do it but in your own living room. Read the directions, even if you don’t follow them. Do NOT read beauty magazines, they will only make you feel ugly. Get to know your parents, you never know when they’ll be gone for good. Be nice to your siblings; they are the best link to your past and the people most likely to stick with you in the future. Understand that friends come and go,but for the precious few you should hold on. Work hard to bridge the gaps in geography in lifestyle because the older you get, the more you need the people you knew when you were young. Live in New York City once, but leave before it makes you hard; live in Northern California once, but leave before it makes you soft.
Travel.
Accept certain inalienable truths, prices will rise, politicians will philander, you too will get old, and when you do you’ll fantasize that when you were young prices were reasonable, politicians were noble and children respected their elders. Respect your elders. Don’t expect anyone else to support you. Maybe you have a trust fund, maybe you have a wealthy spouse; but you never know when either one might run out. Don’t mess too much with your hair, or by the time you're 40, it will look 85. Be careful whose advice you buy, but, be patient with those who supply it. Advice is a form of nostalgia, dispensing it is a way of fishing the past from the disposal, wiping it off, painting over the ugly parts and recycling it for more than it’s worth.
Bye For Now.
vibhor
Sing
Don’t be reckless with other people’s hearts, don’t put up with people who are reckless with yours.
Floss
Don’t waste your time on jealousy; sometimes you’re ahead, sometimes you’re behind…the race is long, and in the end, it’s only with yourself. Remember the compliments you receive, forget the insults; if you succeed in doing this, tell me how. Keep your old love letters, throw away your old bank statements.
Stretch
Don’t feel guilty if you don’t know what you want to do with your life…the most interesting people I know didn’t know at 22 what they wanted to do with their lives, some of the most interesting 40 year olds I know still don’t. Get plenty of calcium. Be kind to your knees, you’ll miss them when they’re gone. Maybe you’ll marry, maybe you won’t, maybe you’ll have children, maybe you won’t, maybe you’ll divorce at 40, maybe you’ll dance the funky chicken on your 75th wedding anniversary…what ever you do, don’t congratulate yourself too much or berate yourself either – your choices are half chance, so are everybody else’s. Enjoy your body, use it every way you can…don’t be afraid of it, or what other people think of it, it’s the greatest instrument you’ll ever own.
Dance
even if you have nowhere to do it but in your own living room. Read the directions, even if you don’t follow them. Do NOT read beauty magazines, they will only make you feel ugly. Get to know your parents, you never know when they’ll be gone for good. Be nice to your siblings; they are the best link to your past and the people most likely to stick with you in the future. Understand that friends come and go,but for the precious few you should hold on. Work hard to bridge the gaps in geography in lifestyle because the older you get, the more you need the people you knew when you were young. Live in New York City once, but leave before it makes you hard; live in Northern California once, but leave before it makes you soft.
Travel.
Accept certain inalienable truths, prices will rise, politicians will philander, you too will get old, and when you do you’ll fantasize that when you were young prices were reasonable, politicians were noble and children respected their elders. Respect your elders. Don’t expect anyone else to support you. Maybe you have a trust fund, maybe you have a wealthy spouse; but you never know when either one might run out. Don’t mess too much with your hair, or by the time you're 40, it will look 85. Be careful whose advice you buy, but, be patient with those who supply it. Advice is a form of nostalgia, dispensing it is a way of fishing the past from the disposal, wiping it off, painting over the ugly parts and recycling it for more than it’s worth.
Bye For Now.
vibhor
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