Tag: investors

  • Money Is Actually Important

    Money Is Actually Important

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    “If you think that money is not important, you don’t have any”

    After hearing the panelist make this comment, I immediately looked around the room to see who he just offended. Although I agree with him, I was surprised to hear him make such a strong comment in such a public forum. The truth is, this type of belief makes people without money, and no plans to get it, feel better. I have heard this a thousand times from family and friends when the topic of money comes up.

    I remember growing up and watching the movie “Can’t Buy Me Love” in school. The basic idea of the movie is that an unpopular male high schooler is desperate for approval and pays the lead cheerleader to date him for a month; or to at least make it look as though they are dating. This way he will become popular, which was a guarantee of his happiness. The result was that she starts to fall for him and he does in fact become popular. The popularity however, does not make him happy. In fact, the lesson was that money cannot buy you happiness. He was much happier with his original relationships than he was with the new ones from the “cool crowd”. I was in elementary school when this movie was shown to my class and I still remember it.

    I have always believed that money cannot buy happiness and that I could honestly be fulfilled without it, but I still wanted it and I still pursued it. I focused a huge part of my life to attain it and now, after all the years of hard work and struggle, I am glad I did. I live a very happy and fulfilled life, and money enhances it.

    I relate money to alcohol. Alcohol, when consumed responsibly, can enhance an experience. It can make challenging situations easier and it can bond people together. It can also ruin your life! A difference of course, is that alcohol is much easier to get, but outside of that, there are a lot of similarities. They both are enhancers and they both can be addictive. They both can ease stress, but they both can create stress too. I know rich people that are miserable, and I know rich people that are happy. The money does not create one or the other.

    There was a time as I was trying to create wealth that I lost almost everything financially. I went through an extremely challenging time in my business and my personal financial life. I stopped answering the phone because I knew it was debt collectors on the other end. I learned a great deal with this experience. One thing I know for sure is that I never want to be broke again. Although I believe having money is not a guarantee to happiness, not having money is a guarantee of at least some stress and pain. It is possible to be happy without money, but it is a hell of a lot easier with it. Money is important.

    From my experience, the only sure-fire way to happiness is through solid relationships. These days I spend a lot more energy strengthening relationships with friends and family that make me happy. I also focus on limiting time and energy into relationships that drain me or do not make me happy. This is tough to do, but the results are positive. Over the years in business, my circle of friends has shifted to more supportive and positive people. This happened organically, but now that I am aware of it, I can focus on it. The real estate industry has been good to me in many ways, but the most important is the people that I have met and that I now spend time with. Some of the most generous, supportive, and amazing people in the world are real estate investors. It is helpful to have a little extra cash to have amazing experiences with people I want to be around.

    It is true money alone will not make you happy, but it sure helps. Money is important.

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    Source by Kevin Amolsch

    Views: 1

  • Digital Medicine Platform for Treatment of Cognitive Disorder

    Digital Medicine Platform for Treatment of Cognitive Disorder

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    Akili, a pioneer in therapeutic prescription digital medicine has closed successfully it’s $55 million financing Series C trial of medicine. This funding follows a successful trial, including study, developing and testing a novel digital medicine named AKL- T01. This flagship product of Akili aimed to treat a type of cognitive disorder- attention deficit/hyperactivity disorder (ADHD). Once approved and launched commercially, it would be the first digital and standalone therapeutic medicine for ADHD. Company’s other product in the pipeline and research, AKL-T02 will treat autism spectral disorder (ASD) or what simply known as autism.

    Autism refers to another type of cognitive disorder, particularly in children, making them difficult to interact socially. The repetitive behavior and underdeveloped speech and verbal communication render them vulnerable in society. The reason behind autism could be genetic as well as environmental influence.

    The above news has brought in a new ray of hope for an autism patient where there is no specific traditional medicine is available for its cure. This new development has the potential for treating this disorder, probably with more efficiency.

    This funding will also help to advance products in the pipeline for treating multi sclerosis (MS) and depression. After approval by the U.S. Food and Drug Administration (FDA), it will be launched commercially for the patients. According to Akili AKL-T01 would be a standalone treatment for ADHD.

    The company’s founder and CEO Eddie Martucci is quite happy with the response of investors and welcomed the financing. He said this financing indicates faith of people in his company’s potential in digital medicines and growth. According to him, the company will continue to grow and supply novel solutions in the redefined healthcare sector.

    Akini Interactive is a company who believes in transforming healthcare through its digital therapeutics medicine solving Neuro-cognitive disorders. It believes in targeting specific cognitive area or nerve which has been suppressed by the dysfunction. The treatment includes, interestingly, not any pill, but customized action video games for patients to play.

    Video games are designed by neuroscientists and entertainer engineered with algorithms to treat a cognitive disorder like depression. According to the company, highly-interactive and highly engaging games provide a therapeutic experience to patients which actually benefit them. Through high-end therapeutics interactive video games, the specific regions of the brain could become functional which has been suppressed by the disorder, improving the condition of the patient. There would second by second tracking of patient’s cognitive response and data available for any improvement in the patient’s condition.

    AKL- T01 if approved by the FDA and then it would certainly indicate towards the acceptance of new healthcare solutions for patients. It has the capability to transform the whole healthcare process and system in coming years. This funding will boost the confidence of other investors, which are planning to invest or come together for such digital medicine research and development in the future and those patients who are searching for new areas to treat disorders like autism could be more than happy to read such positive news.

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    Source by Shalini Madhav

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  • Smart Trading Options for Conservative Investors in 2018

    Smart Trading Options for Conservative Investors in 2018

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    When it comes to the stock trade for the conservative investor, there is no doubt we're talking about stock options. But, what exactly is a conservative approach to trading? And what techniques can the savvy investor utilize in 2018 to manage risk and ensure growth? We've outlined a few options that might be right up your alley:

    1. Covered Call Options

    The covered call is really the most conservative of options and some say it's even more conservative than purchasing the original stock. Frequently used within IRA accounts, the covered call can be approached by a conservative investor from two perspectives:

    • Generate Consistent Income: You can employ this strategy without selling shares of a business while still generating monthly or weekly income. This strategy is usually used to capitalize in the event that your stock price is projected to decrease or not show improvement within in the short-term.
    • Sell ​​Stocks at Premiums Selling stocks above the current price may be useful when you can stipulate the price on a stock with which you'd not be uncomfortable selling. This tactic is useful in getting a stock that you are not in a hurry to offer and the sale of the Call may eventually take the stock but at the cost that you establish when the option was sold by you.
    1. Use Puts as Insurance

    This is a strategy that can be used by you if you anticipate a reversal in a short-term stock price hike. Because you're interested in reaping the long-term benefits, you are interested in taking the short-term profits, therefore purchasing a Put will ensure that if the stock goes down in value, the value of the Put will go up. Furthermore, you can sell the Put at a greater cost than you paid for it and reap a gain while the price of the stock is declining.

    1. Secure Puts with Cash

    Another method of securing your interest in a long-term investment is to hold adequate capital in cash on a stock that may see a fall in price. Of course, you must understand the business you're investing in and set a pre-determined price for your stock Put, but this is a simple method to ensure your long-term investment is protected because when the stock does fall, you can close in on the stock Put price.

    As with any investment opportunity, the strategies for stock options are endless. Although the stock market is normally associated with short-term investments, conservative investors are starting to identify options for long-term investments within the stock exchange system that not only generate income, but add value to your portfolio with minimally involved risk.

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    Source by Chris Bouchard

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  • BSE (Bombay Stock Exchange) – Online Trading System

    BSE (Bombay Stock Exchange) – Online Trading System

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    Gone are the days when you needed a broker to help you buy and sell stocks, shares and make stock market investments. Through online investment you can buy and sell shares with just a few clicks of the mouse. The economic and capital market in India cannot exist without a stock exchange; there are two main stock exchanges where transactions take place; the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). While all the major transactions take place here, there are over 20 different stock exchanges located across the country.

    Online trading in India has changed the meaning of trading in the country. With no requirement for a broker, trading has become easier, faster and far more convenient than earlier days. Some of the major financial products and services offered through online trading are mutual funds, equities, general insurance, life insurance, share trading, portfolio management, commodities trading and financial planning. In online trading, the investor has to pay less brokerage as compare to offline trading. There is no need for any paperwork through online investing and the need for a middle man is eliminated. All the stock accounts are stored in a Demat account where they can be viewed.

    BSE online trading was established in 1995 and is the first exchange to be set up in Asia. It has the largest number of listed companies in the world and currently has 4937 companies listed on the Exchange with over 7,700 traded instruments.

    The only thing that an investor requires for online trading through BSE is an online trading account. The trading can then be done within the trading hours from any location in the world. In fact, BSE has replaced the open cry system with automated trading. Open cry system is a common method of communication between the investors at a stock exchange where they shout and use hand gestures to communicate and transfer information about buy and sell orders. It usually takes place on the ‘pit’ area of the trading floor and involves a lot of face to face interaction. However, with the use of electronic trading systems trading is easier, faster and cheaper; and is less prone to manipulation by market makers and brokers/dealers.

    The BSE provides an efficient and transparent market for trading in debt instruments, equity and derivatives. This is performed through a system known as BOLT – BSE’s Online Trading System.

    In the stock exchange, a key index is used to keep track of the important or the most traded stocks in the exchange. The indice used at the BSE while trading is the SENSEX and is displayed in all major portals, newspapers and magazines. It is India’s first stock market index that enjoys an iconic stature and is tracked worldwide. It is conducted on a free-float methodology and is sensitive to market sentiments and realities.

    There are also indices such as BSE small cap, BSE mid cap and BSE500 to take care of medium and small companies. Furthermore, India index services and Products Limited has indices such as CNX Nifty Junior, S&P CNX Nifty, CNX 100, S&P CNX 500 and CNX Mid cap. The BSE offers 22 indices to suit a multiplicity of needs, inclusive of 12 sectorial indices. For example, the BSE PSU Index tracks the performance of the listed PSY companies and also helps the Central Government to monitor its wealth on the bourses.

    The BSE has become a completely ‘corporatised and demutualized stock exchange’ through the use of online exchanges. With partners such as Deutsche Borse (DB) and Singapore Stock Exchange (SGX) it has a global competitive force. BSE has strategic relationships in almost every part of the world- Europe (DB)), Hong Kong (ETF) and Asia (SGX), prominent public sector undertakings such as State Bank of India, Bank of India, Life Insurance Corporation of India and Central Bank of India.

    Benefits of BSE trading system in India for share brokers or newbies

    There are a number of attractive services to empower investors and facilitate smooth transactions. Some of these include:

    1) Investor Services: A range of services are offered to investors. Being the first exchange in the country to provide an amount of INR 1 million towards the investor protection fund, the BSE had launched a nationwide investor awareness program; ‘Safe Investing in the Stock Market’ under which there were 264 programmes which were conducted in over 359 cities in India.

    2) BSE has an Online trading BOLT system: the online-Trading system (BOLT) facilitates on-line screen based trading in securities. Currently it operates 25,000 Trader Workstations which are located across 359 cities in the country.

    3) The BSE has the world’s first centralized exchange-based Internet trading system – BSEWEBX.com. This system helps the investors anywhere in the world to trade on the BSE platform.

    4) The BSE has an online Surveillance system (BOSS) which monitors on a REAL-TIME basis the price movements, the volume positions and members’ positions as well as real time measurement of default risk, generation of cross market alerts and market reconstruction.

    5) The BSE has a training institute – known as the Bombay Stock Exchange Training Institute (popularly known as the acronym BTI).The BTI imparts capital market training and certification; in collaboration with a number of reputed management institutes and universities. There are over 40 courses to choose from on different aspects of the capital market and the financial Bombay Stock Exchange market.

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    Source by Monish P Kumar

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  • Small Business Owners: Accounting Is for Profit Planning, Not Just Tax Preparation

    Small Business Owners: Accounting Is for Profit Planning, Not Just Tax Preparation

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    One might be led to believe that profit is the main objective in a business but in reality it is the cash flowing in and out of a business which keeps the doors open. The concept of profit is somewhat narrow and only looks at expenses and income at a certain point in time. Cash flow, on the other hand, is more dynamic in the sense that it is concerned with the movement of money in and out of a business. It is concerned with the time at which the movement of the money takes place. Profits do not necessarily coincide with their associated cash inflows and outflows. The net result is that cash receipts often lag cash payments and while profits may be reported, the business may experience a short-term cash shortage. For this reason, it is essential to forecast cash flows as well as project likely profits. In these terms, it is important to know how to convert your accrual profit to your cash flow profit. You need to be able to maintain enough cash on hand to run the business, but not so much as to forfeit possible earnings from other uses.

    Why accounting is needed

    Help you to operate better as a business owner

    1. Make timely decisions

      • Know when to hire a team of employees
      • Know how to price your products
      • Know how to label your expense items
      • Helps you to determine whether to expand or not
      • Helps with operations projected costs
    2. Stop Fraud and Theft

      • Control the biggest problem is internal theft
      • Reconcile your books and inventory control of equipment
    3. Raising Capital (help you to explain financials to stakeholders)

      • Loans
      • Investors

    What are the Best Practices in Accounting for Small Businesses to address your common ‘pain points’?

    1. Hire or consult with CPA or accountant

      1. What is the best way and how often to contact
      2. What experience do you have in my industry?
      3. Identify what is my break-even point?
      4. Can the accountant assess the overall value of my business
      5. Can you help me grow my business with profit planning techniques
      6. How can you help me to prepare for tax season
      7. What are some special considerations for my particular industry?

    To succeed, your company must be profitable. All your business objectives boil down to this one simple fact. But turning a profit is easier said than done. In order to boost your bottom line, you need to know what’s going on financially at all times. You also need to be committed to tracking and understanding your KPIs.

    What are the common Profitability Metrics to Track in Business — key performance indicators (KPI)

    Whether you decide to hire an expert or do it yourself, there are some metrics that you should absolutely need to keep tabs on at all times:

    • Outstanding Accounts Payable: Outstanding accounts payable (A/P) shows the balance of cash you currently owe to your suppliers.
    • Average Cash Burn: Average cash burn is the rate at which your business’ cash balance is going down on average each month over a specified time period. A negative burn is a good sign because it indicates your business is generating cash and growing its cash reserves.
    • Cash Runaway: If your business is operating at a loss, cash runway helps you estimate how many months you can continue before your business exhausts its cash reserves. Similar to your cash burn, a negative runway is a good sign that your business is growing its cash reserves.
    • Gross Margin: Gross margin is a percentage that demonstrates the total revenue of your business after subtracting the costs associated with creating and selling your business’ products. It is a helpful metric to identify how your revenue compares to your costs, allowing you to make changes accordingly.
    • Customer Acquisition Cost: By knowing how much you spend on average to acquire a new customer, you can tell exactly how many customers you need to generate a profit.
    • Customer Lifetime Value: You need to know your LTV so that you can predict your future revenues and estimate the total number of customers you need to grow your profits.
    • Break-Even Point:How much do I need to generate in sales for my company to make a profit?Knowing this number will show you what you need to do to turn a profit (e.g., acquire more customers, increase prices, or lower operating expenses).
    • Net Profit: This is the single most important number you need to know for your business to be a financial success. If you aren’t making a profit, your company isn’t going to survive for long.
    • Total revenues comparison with last year/last month. By tracking and comparing your total revenues over time, you’ll be able to make sound business decisions and set better financial goals.
    • Average revenue per employee. It’s important to know this number so that you can set realistic productivity goals and recognize ways to streamline your business operations.

    The following checklist lays out a recommended timeline to take care of the accounting functions that will keep you attuned to the operations of your business and streamline your tax preparation. The accuracy and timeliness of the numbers entered will affect the key performance indicators that drive business decisions that need to be made, on a daily, monthly and annual basis towards profits.

    Daily Accounting Tasks

    1. Review your daily Cash flow position so you don’t ‘grow broke’.

    Since cash is the fuel for your business, you never want to be running near empty. Start your day by checking how much cash you have on hand.

    Weekly Accounting Tasks

    2. Record Transactions

    Record each transaction (billing customers, receiving cash from customers, paying vendors, etc.) in the proper account daily or weekly, depending on volume. Although recording transactions manually or in Excel sheets is acceptable, it is probably easier to use accounting software like QuickBooks. The benefits and control far outweigh the cost.

    3. Document and File Receipts

    Keep copies of all invoices sent, all cash receipts (cash, check and credit card deposits) and all cash payments (cash, check, credit card statements, etc.).

    Start a vendors file, sorted alphabetically, (Sears under “S”, CVS under “C,”etc.) for easy access. Create a payroll file sorted by payroll date and a bank statement file sorted by month. A common habit is to toss all paper receipts into a box and try to decipher them at tax time, but unless you have a small volume of transactions, it’s better to have separate files for assorted receipts kept organized as they come in. Many accounting software systems let you scan paper receipts and avoid physical files altogether

    4. Review Unpaid Bills from Vendors

    Every business should have an “unpaid vendors” folder. Keep a record of each of your vendors that includes billing dates, amounts due and payment due date. If vendors offer discounts for early payment, you may want to take advantage of that if you have the cash available.

    5. Pay Vendors, Sign Checks

    Track your accounts payable and have funds earmarked to pay your suppliers on time to avoid any late fees and maintain favorable relationships with them. If you are able to extend payment dates to net 60 or net 90, the better. Whether you make payments online or drop a check in the mail, keep copies of invoices sent and received using accounting software.

    6. Prepare and Send Invoices

    Be sure to include payment terms. Most invoices are due within 30 days, noted as “Net 30” at the bottom of your invoice. Without a due date, you will have more trouble forecasting revenue for the month. To make sure you get paid on time, always use an invoice form that contains the right details such as payment terms, itemized charges, and your payment address.

    7. Review Projected Cash Flow

    Managing your cash flow is critical, especially in the first year of your business. Forecasting how much cash you will need in the coming weeks/months will help you reserve enough money to pay bills, including your employees and suppliers. Plus, you can make more informed business decisions about how to spend it.

    All you need is a simple statement showing your current cash position, expected cash receipts during the next week/month and expected cash payments during the next week/month.

    8. Executive Dashboard (weekly review)

    This dashboard gives you a ‘snapshot’ of your operations on a weekly basis.

    It consist of Cash on Hand, Cash burn rate, Account Receivables, Accounts Payable, Items sold, Inventory on Hand, inventory turns, outstanding issues in the business, and gross profit margin, new sales wins, customer losses, customer service performance, on time delivery rate and product quality performance.

    Monthly Accounting Tasks

    9. Balance Your Business Checkbook

    Just as you reconcile your personal checking account, you need to know that your cash business transaction entries are accurate each month and that you are working with the correct cash position. Reconciling your cash makes it easier to discover and correct any errors or omissions-by you or by the bank-in time to correct them.

    10. Review Past-Due (“Aged”) Receivables

    Be sure to include an “aging” column to separate “open invoices” with the number of days a bill is past due. This gives you a quick view of outstanding customer payments. The beginning of the month is a good time to send out overdue reminder statements to customers, clients and anyone else who owes you money.

    At the end of your fiscal year, you will be looking at this account again to determine what receivables you will need to send to collections or write off for a deduction

    11. Analyze Inventory Status

    If you have inventory, set aside time to reorder products that sell quickly and identify others that are moving slowly and may have to be marked down or, ultimately, written off. By checking regularly (and comparing to prior months’ numbers), it’s easier to make adjustments so you are neither short nor overloaded.

    12. Process or Review Payroll and Approve Tax Payments

    While you have an established schedule to pay your employees (usually semi-monthly), you need to meet payroll tax requirements based on federal, state and local laws at different times, so be sure to withhold, report and deposit the applicable income tax, social security, Medicare and disability taxes to the appropriate agencies on the required dates.

    Review the payroll summary before payments are disbursed to avoid having to make corrections during the next payroll period. A payroll service provider can do all this to save you time and ensure accuracy at a reasonable cost.

    13. Review Actual Profit and Loss vs. Budget and vs. Prior Years

    Each month, take the time to review your budgeted expenses and compare them to what you have actually spent. Are you spending above or below budget? Discuss the variances and take action as needed

    Your profit and loss statement (also known as an income statement), both for the current month and year to date, tells you how much you earned and how much you spent. Measure it against your budget every month (or quarter). Comparing your actual numbers to your planned numbers highlights where you may be spending too much or not enough, so that you can make changes.

    If you have not prepared a budget, compare your current year-to-date P&L with the same prior-period year-to-date P&L to identify variances and make adjustments.

    14. Review Month-End Balance Sheet vs. Prior Period

    By comparing your balance sheet at one date-June 30, 2015, for example-to a balance sheet from an earlier date (December 31, 2014), you get a picture of how you are managing assets and liabilities. The key is to look for what is significantly up and/or down and understand why. For example, if your accounts receivable are up, is it due to increased recent sales or because of slower payments from customers?

    Quarterly Accounting Tasks

    15. Prepare/Review Revised Annual P&L Estimate

    It’s time to evaluate how much money you are actually making, whether your net assets are going up or down, the difference between revenues and expenses, what caused those changes, how you are spending profits, as well as identifying trouble spots, and making adjustments to improve sales and margins.

    16. Review Quarterly Payroll Reports and Make Payments

    You have been reviewing your semi-monthly payroll reports. However, the IRS and most states require quarterly payroll reports and any remaining quarterly payments. Again, it’s best if your payroll service provider completes these reports and files them. Your job is to review to make sure they appear reasonable.

    17. Review Sales Tax and Make Quarterly Payments

    If your company operates in a state that requires sales tax, make sure you comply to avoid serious penalties. The U.S. Small Business Administration (SBA) can help you determine your state tax obligations.

    18. Compute Estimated Income Tax and Make Payment

    The IRS and states that have income taxes require you to pay estimated income taxes. Review your year-to-date P&L to see if you owe any estimated taxes for that quarter. Your tax accountant can assist if necessary.

    Annual Accounting Tasks

    19. Review Past-Due Receivables

    Now it’s time to check significant past due receivables and decide whether you think customers will eventually pay, whether to send past due bills to a collection agency or whether to write them off for a deduction.

    20. Review Your Inventory

    Review your current inventory to determine the value of items not sold. Any write-down of inventory translates to a deduction on your year-end taxes. If you do not write down unsellable inventory, you are overstating your inventory balance and paying additional taxes that you don’t owe.

    21. Fill out IRS Forms W-2 and 1099-MISC

    The IRS has a January 31 deadline that requires you to report the annual earnings of your full-time employees (W-2s) and most independent contractors (1099s). This deadline includes mailing copies of the tax forms to the people who worked for you. Note: A 1099 form is not required for any contractors who earned less than $600. Consider saving time and avoiding errors with an e-filing service.

    22. Review full-year financial reports for tax reporting

    • Get organized

      • Collect and store important documents (use apps and calendars for help)

        • Create email folders to store bank statement and receipts
        • Store contracts and agreements
        • Track miles and vehicle expenses
        • Store all required documents for your business type.

      • Tax Preparation

        • Tax preparation is a historical view and not a profit planning event
        • Capture all relevant events
        • Identify all deduction categories
        • Capture all meals

          • Meetings —-whatever was discussed/calendar

            • Try not to go over industry average industry cost for meals.

    At tax time, carefully review your company’s full-year financial reports before giving them to your accountant. Before you sign your return, be sure to review it for accuracy based on your full-year financial reports. Remember if IRS audits due to underpayment, they will deal with you not your accountant for any additional taxes, penalty and interest.

    If you don’t have the bandwidth to do all this yourself, a great strategy is to partner with a monthly accounting service. Outsourcing your accounting to an expert will simplify your life and give you more time to focus on running your business operations.

    A monthly accountant will provide you with a profit and loss sheet, balance statement, and accurate account reconciliation every month, ensuring that you have the financial information you need to make the best choices for your company.

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    Source by Vinson Primas

    Views: 0

  • Is He Marriage Material? Four Steps for Creating Your Custom Plan & Deciding If He's Worth Your Time

    Is He Marriage Material? Four Steps for Creating Your Custom Plan & Deciding If He's Worth Your Time

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    It's important that you know yourself, your goals, your needs and wants really well before you can find a great relationship that could potentially lead to marriage.

    And the best way to determine if your current or future boyfriend is marriage material is to know yourself, create a checklist of what's right for you, and then test him to see if he fits.

    In this article, we'll break down what things you need to know about both yourself and him in order to even consider that next step!

    Step One: Know There Is a "Mr. Perfect for You" and That You Can Design Him

    Are you still waiting for HIM? You know who I mean:

    "Mr. Right". The perfect man that will satisfy all your dreams and make your life worth living?

    Yeah, that guy. Well, sorry to break it to you like this but …

    Prince Charming, riding on a white stallion, lost his way because men hate asking for directions.

    Or he found Princess Charming and got married to her on his way to your castle … or, you know, your apartment.

    And by the way, even Prince Charming wasn't flawless. I'm pretty sure he left dirty dishes in the sink and never made up the bed.

    Anyway, the point is that PERFECT isn't showing up anytime soon.

    Truth is … nobody is perfect. No man and no woman. Perfection doesn't exist in people. But don't feel bad if you have been looking for the perfect man.

    I did that for a long time, deathly afraid that if I didn't get him exactly right, I'd failed myself, my future kids, the planet, my Mama, and possibly God.

    I was wrong. Don't even look for perfect, because the concept of "perfect for YOU" exists instead. You can plan the guy that may not perfect in the world, but is perfect for and fits YOU well.

    The perfect-for-you man of your dreams is not hiding under your bed, though. That would be too easy. Can't have that.

    Nope, you are going to have to actively design and then look for him. But don't worry, the search can be fun if you want it to be, and the hardest part is done. You now know you won't find perfect, so the pressure is off!

    By the way, are you feeling the whole "not pretty enough" thing sometimes too? Wondering "why am I still single" even?

    I did too. However, I learned that although I may not completely fit my society's "standard of beauty", I did meet quite a few men's individual standard of beauty … or was at least close enough!

    And that's all you really need. So don't worry. "Mr. Close-Enough-To-Perfect-For-You" might be just around the corner … if you'll give him a chance!

    You can plan him. Don't do this by default.

    I've noticed that we sometimes find ourselves dating or even married by what I call "by default". That means we find a man, decide that he is the best we can do, and latch on without really analyzing him to determine if he's really right for us or our lives.

    Don't fall victim to default. This isn't the time for "get in where you fit in". You CAN plan him. When you do your research and work your strategy, you won't have to put up with the losers!

    You'll have a way to know whether he's marriage material … or not!

    Now that you know that there is no "Mr. Right" or perfect man, the pressure is off, and you can now have fun looking for what I call your "ideal male". You're also aware that dating by default isn't the best way to avoid the pain of being with a dud. And you understand you can take the bull by the horns and decide what you want your ideal guy to look like.

    Now it's time to dive into YOU, determine your dating deal breakers, and decide what kind of guy fits you best.

    Step Two: Get to Know YOU: Your Goals and Dreams, Needs and Wants, and Deal Breakers

    Did you see the first The Matrix ™ movie? Remember that scene where Neo goes to see the Oracle?

    He is trying to figure out if he's "the one" – a Messiah of sorts and the man Morpheus is searching for– and thinks the Oracle can help him decide what to do.

    Typical of a good mentor, the Oracle makes Neo find his own way. Before putting him out to find his own answers, she points out the plaque above her door that reads nosce te ipsum.

    Know thyself.

    You should know yourself really well before committing to someone else.

    Have you ever taken time to really think about what YOU want for your life? I don't mean what you THINK you want – which is usually what others want for you – or what society wants for you – don't get me started on that, but what YOU really, truly, want for yourself?

    Why? Well, understanding yourself is the most important thing you can do before getting deeply involved with another person.

    I'm not saying you'll do everything perfectly even if you see yourself clearly. Problems can still happen, and you will make mistakes.

    But if you pick a mate based on what you learn about yourself, you will have a much better shot at finding compatibility than if you have no idea who you are and just go into this blindly, hoping it will turn out okay.

    If you don't know yourself or your needs well, and hook up with someone before finding YOU first, you may end up realizing that the person you are with does not fit you or your life at all, or at least not enough for things to last very long. Relationship compatibility is CRUCIAL.

    Being badly matched could be disastrous, especially if you cement yourself to him by having a child or getting married.

    Know Your Goals and Dreams … and Stick With Them

    When I think about it, I'm so glad to have been born when I was. We've got so many options now that women in my mother's age range and older just didn't have. We now have the tools and the right to decide what we want in terms of a career, marriage, and family just as much as men do.

    However, despite having goals and dreams, we sometimes get so caught up in a relationship that our own lives take a backseat. We end up giving up our dreams for relationships and marriage, children and family.

    Now, if you have a family with a man that's right for you then maybe these sacrifices are worth it.

    However, they are never worth it with the wrong man, so always keep your goals in the front of your mind and don't let the wrong guy take them from you.

    So what are your goals and dreams?

    Think about the things you want to do with your life. Your goals can be in any category, including career, travel, health, spirituality … anything at all. It's up to you. But to get you started, I suggest you look at these areas.

    What do you want to be when you grow up?

    Do you have a specific career in mind? Is there any special education you want to achieve? Anywhere in particular you want to work? Maybe even start your own business?

    What about fun? Have you always wanted to travel? Where to? How long? Don't be modest; anything is possible!

    Do you have any specific body or health goals? Want to lose a bit of weight? Gain weight? Gain muscle? Run a marathon?

    Do you feel a lack in your spiritual life? Want to attend church more? Study other religions? Memorize a holy book or two? Become a Buddhist? None of the above? Don't forget this is about YOU.

    Do you want kids? No kids, but more dogs? A cat or two? A llama? Plan your own family goals!

    The point is that these are to be YOUR ambitions and no one else's. Let your imagination have some fun.

    Now that you've considered your goals, let's look at what you want and need in a relationship.

    Decide on Your Needs / Wants

    I hear some of you asking: "wants or needs … what's the difference?"

    Well, when I say needs, it's exactly that. Those are characteristics you can't really live without. Wants are nice, but not crucial. You can go on without them if necessary.

    I have several friends who are single and looking for a good man. A couple of these ladies wanted to buck the trend of just dating whoever came along.

    Instead they really studied themselves and then decided what type of man they want. They began to examine what type of guy complemented them and quickly discovered what they would and would not tolerate in a mate. I suggested they document their needs and wants to decide if the next guy would fit them.

    For example, one friend, Josie, decided her ideal guy would know how – and be willing to – cook some of the meals. He had to be thoughtful, emotionally available and like to talk things out after an argument instead of hiding out and pouting.

    She also realized she needed him to be on the same page as her spiritually, and that he would have to be an avid church attendee. He also should love and want children like she did.

    Clearly, getting involved with a man who had none (or barely any) of these characteristics would result in serious arguments and almost guaranteed problems in Josie's future.

    So she wrote her requirements on a checklist, and if potential dates didn't meet her minimum needs, she politely said thanks, but no thanks.

    By doing her work up front, Josie was able to avoid a lot of the painful frustrations of dating the wrong guy. She hasn't found the "right one" quite yet, but she's successfully avoided several really wrong ones.

    So what are your wants and needs pertaining to him?

    Like Josie, do you want him to be spiritual or religious? Look back at your goals list. Does it have any things on it that you want to do and he should match? For example, if your goal is to become a Buddhist, should he already be one, or be open to it?

    Should he want kids? Should he want pets? Do you already have a pet and / or or kids and the "children" have to sign off on him?

    Next, you will discover that some of your wants / needs will have nothing to do with your goals. They'll be all about his personality traits, which we'll cover in a bit.

    Be Aware of Your Deal Breakers

    Speaking of wants vs. needs … deal breakers – like needs- are crucial. These are the characteristics you must have – or avoid – for a relationship to work.

    A huge deal breaker that I have encountered in my work has been the differing desire for children. If that's you, just be upfront about it.

    If he wants kids and you don't, that's okay, but you two aren't compatible. If you want them and he doesn't, then it isn't going to work. Children just aren't something you can compromise on.

    Another deal breaker I recommend you consider is ANY type of abuse. Even if it seems "mild" or that he's "just playing", mistreatment is a red flag and it's better to be single than dead. Too many women have ignored the signs and ended up paying with their lives.

    Are there other deal breakers on your mind? Then put them on your list.

    Now That You've Listed Them, Look for Your Needs, Wants, Dreams and Deal Breakers in HIM

    If you're currently dating, does your current guy fit any of the items on your checklist so far?

    Remember to be honest about this. Be aware whether you see these attributes because you want to, or if they are really there.

    Be honest with yourself, put the emotion aside, and find out who he actually is. Time out for the fantasies and soap operas. This is serious. If he really doesn't fit – even if you really want him to – strike him from consideration. Doing so doesn't mean he isn't a good guy, he's just not the right one for you.

    Step Three: Look for Generally Good Traits in Him

    Remember I said earlier that you also needed to consider his personality traits too?

    Now it's time to look into whether he has good personality traits or whether he shows some relationship red flags you need to steer clear of.

    I'll mention my top three desirable traits just to get you started. It's up to you decide whether they are also on your list, or you can do without them. I know I've said this a lot, but your checklist is always yours and should reflect you, not me or anyone else.

    Trust

    Trust. I usually trust close family and friends, but are hesitant to extend it to strangers. It takes a while to gain my trust, and I suggest you do the same when dating.

    Have you ever heard the expression "measure twice, cut once?". I think it's mostly for carpenters and woodworkers who want to be sure before making a permanent move. You can always take off a little more, but you can't always put it back.

    Keeping that phrase in mind while dating wouldn't hurt. Why?

    We have to be careful. A poor choice in a mate can have huge consequences in a woman's life, so we definitely have to measure our men multiple times before committing. One of the ways you should evaluate a man is whether you trust him, so be sure to do that carefully.

    To determine whether you can trust your partner, here are a few tips:

    * Rely on yourself first. Do you normally make good decisions? Yes? Then trust that you will make the right call.

    * Depend on your head and your heart. Look for signs. Is he checking out other women when you're together? Does he hang around with trustworthy people or does he deal with shadies?

    * Pay attention to what he is telling you AND showing you and then use that information to help you make informed decisions. Talk is cheap. Watch what he DOES.

    * Remember that if you have decided that you are going to trust him, then follow through and trust him! Don't sit and worry at night, wondering what he's doing or if he's being unfaithful.?If you feel you have to do that, then a relationship with this guy just isn't worth the stress.

    Honesty

    Trust and honesty go hand in hand, so let's talk about it a bit. Find out if your partner is honest before getting too deeply involved with him.

    How do you know if your guy is honest?

    Take the initiative.

    You must be honest if you're expecting it from your partner. Don't hide things, mislead him, or tell little "white lies" that are so easy to rationalize: it's no big deal if I just hide this small detail, etc.

    I know an otherwise really sweet couple who seemed to build their relationship on white lies. I think they were trying to "spare each other" from bad stuff, but it ended up backfiring on them. They didn't outright lie to each other (at least in their minds), but those little lies formed cracks in their relationship that eventually caused it to collapse.

    Do your homework.

    Find out all you can about your partner.

    You don't have to be obsessed, but do your research within reasonable boundaries.

    I don't think it's necessary to get the cops involved here, but say if you were introduced by a mutual friend or family member, ask that person about your partner. Are they trustworthy? What are they like in private? Find out those types of things and you'll quickly get an idea of ​​their honesty.

    You'd ask for a referral and recommendations for anything else you're considering -from a plumber to a lawyer-why not get more information on a potential mate?

    Last, make sure he knows upfront that honesty is an expectation and you won't tolerate anything less.

    Have conversations about honesty. Make it clear that you are going to be honest and ask him to do the same. It's funny how many issues in relationships can be worked out through simple communication. Just talk.

    If you start your relationship on a good, honest foundation, your chances of success increase greatly over those who choose to be dishonest or shady. And if you inform him upfront that it's expected, here's his chance to leave if he can't handle it.

    As with anything else, there is risk involved. If trust is earned and then continues, awesome! But if it gets broken, don't beat yourself up and think you failed. You did everything you could.

    We all make mistakes, you're only human. Learn from it, move on, and eventually you'll get it right!

    Respect

    I try to follow "The Golden Rule". I try to treat others as I would like to be treated. I want to be respected, so I try my hardest to respect others. It ain't easy all of the time, but it's worth at least trying!

    If you have tried giving plenty of respect to your partner, but are not getting it in return, don't forget that you have the right to fix that problem. Don't just take his lack of respect lying down!

    Whether that means talking with him about the lack of respect and asking for changes, or deciding this is not worth your time, make sure you don't allow disrespect to continue too long.

    To figure out where you stand, ask yourself these questions:

    • Does he respect you? If he demeans, objectifies, or degrades you, you're better off leaving. As the investors say on Shark Tank ™: "I'm out".

    • Notice the way he treats you when you don't agree with him. Can you appreciate each other's different views without him getting pissed off?

    • Find opportunities to be around his closest friends or family. When with familiar people, he will show his true colors eventually. Is he respectful around them?

    • How does his family treat you? If they treat you as their equal, not an inferior, that's a good sign. Hopefully, he learned good things from them.

    You also need to be honest with yourself regarding how you view your partner. Do you really value him, too? If you find you don't, you need to rethink your relationship.

    Step Four: Tidy Up Your List

    This isn't the end, it's just the beginning. Your checklist is always growing and changing along with you, so don't hesitate to add or even delete items that no longer fit you.

    The point is that your plan reflect you at all times and if used, will allow you to choose a man who is right for you.

    Good luck!

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    Source by Nichole White

    Views: 0

  • Mergers and Acquisition – A Case Study and Analysis of HP-Compaq Merger

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    Brief Description

    The following is a brief description of the two companies:

    HP

    It all began in the year 1938 when two electrical engineering graduates from Stanford University called William Hewlett and David Packard started their business in a garage in Palo Alto. In a year’s time, the partnership called Hewlett-Packard was made and by the year 1947, HP was incorporated. The company has been prospering ever since as its profits grew from five and half million dollars in 1951 to about 3 billion dollars in 1981. The pace of growth knew no bounds as HP’s net revenue went up to 42 billion dollars in 1997. Starting with manufacturing audio oscillators, the company made its first computer in the year 1966 and it was by 1972 that it introduced the concept of personal computing by a calculator first which was further advanced into a personal computer in the year 1980. The company is also known for the laser-printer which it introduced in the year 1985.

    Compaq

    The company is better known as Compaq Computer Corporation. This was company that started itself as a personal computer company in the year 1982. It had the charm of being called the largest manufacturers of personal computing devices worldwide. The company was formed by two senior managers at Texas Instruments. The name of the company had come from-“Compatibility and Quality”. The company introduced its first computer in the year 1983 after at a price of 2995 dollars. In spite of being portable, the problem with the computer was that it seemed to be a suitcase. Nevertheless, there were huge commercial benefits from the computer as it sold more than 53,000 units in the first year with a revenue generation of 111 million dollars.

    Reasons for the Merger

    A very simple question that arises here is that, if HP was progressing at such a tremendous pace, what was the reason that the company had to merge with Compaq? Carly Fiorina, who became the CEO of HP in the year 1999, had a key role to play in the merger that took place in 2001. She was the first woman to have taken over as CEO of such a big company and the first outsider too. She worked very efficiently as she travelled more than 250,000 miles in the first year as a CEO. Her basic aim was to modernize the culture of operation of HP. She laid great emphasis on the profitable sides of the business. This shows that she was very extravagant in her approach as a CEO. In spite of the growth in the market value of HP’s share from 54.43 to 74.48 dollars, the company was still inefficient. This was because it could not meet the targets due to a failure of both company and industry. HP was forced to cut down on jobs and also be eluded from the privilege of having Price Water House Cooper’s to take care of its audit. So, even the job of Fiorina was under threat. This meant that improvement in the internal strategies of the company was not going to be sufficient for the company’s success. Ultimately, the company had to certainly plan out something different. So, it was decided that the company would be acquiring Compaq in a stock transaction whose net worth was 25 billion dollars. Initially, this merger was not planned. It started with a telephonic conversation between CEO HP, Fiorina and Chairman and CEO Compaq, Capellas. The idea behind the conversation was to discuss on a licensing agreement but it continued as a discussion on competitive strategy and finally a merger. It took two months for further studies and by September, 2001, the boards of the two companies approved of the merger. In spite of the decision coming from the CEO of HP, the merger was strongly opposed in the company. The two CEOs believed that the only way to fight the growing competition in terms of prices was to have a merger. But the investors and the other stakeholders thought that the company would never be able to have the loyalty of the Compaq customers, if products are sold with an HP logo on it. Other than this, there were questions on the synchronization of the organization’s members with each other. This was because of the change in the organization culture as well. Even though these were supposed to serious problems with respect to the merger, the CEO of HP, Fiorina justified the same with the fact that the merger would remove one serious competitor in the over-supplied PC market of those days. She said that the market share of the company is bound to increase with the merger and also the working unit would double. (Hoopes, 2001)

    Advantages of the Merger

    Even though it seemed to be advantageous to very few people in the beginning, it was the strong determination of Fiorina that she was able to stand by her decision. Wall Street and all her investors had gone against the company lampooning her ideas with the saying that she has made 1+1=1.5 by her extravagant ways of expansion. Fiorina had put it this way that after the company’s merger, not only would it have a larger share in the market but also the units of production would double. This would mean that the company would grow tremendously in volume. Her dream of competing with the giants in the field, IBM would also come true. She was of the view that much of the redundancy in the two companies would decrease as the internal costs on promotion, marketing and shipping would come down with the merger. This would produce the slightest harm to the collection of revenue. She used the ideas of competitive positioning to justify her plans of the merger. She said that the merger is based on the ideologies of consolidation and not on diversification. She could also defend allegations against the change in the HP was. She was of the view that the HP has always encouraged changes as it is about innovating and taking bold steps. She said that the company requires being consistent with creativity, improvement and modification. This merger had the capability of providing exactly the same. (Mergers and Acquisitions, 2010)

    Advantages to the Shareholders

    The following are the ways in which the company can be advantageous to its shareholders:

    Unique Opportunity: The position of the enterprise is bound to better with the merger. The reason for the same was that now the value creation would be fresh, leadership qualities would improve, capabilities would improve and so would the sales and also the company’s strategic differentiation would be better than the existing competitors. Other than this, one can also access the capabilities of Compaq directly hence reducing the cost structure in becoming the largest in the industry. Finally, one could also see an opportunity in reinvesting.

    Stronger Company: The profitability is bound to increase in the enterprise, access and services sectors in high degrees. The company can also see a better opportunity in its research and development. The financial conditions of the company with respect to its EBIT and net cash are also on the incremental side.

    Compelling Economics: The expected accumulation in IIP gains would be 13% in the first financial year. The company could also conduct a better segmentation of the market to forecast its revenues generation. This would go to as much as 2 and a half billion dollars of annual synergy.

    Ability to Execute: As there would be integration in the planning procedures of the company, the chances of value creation would also be huge. Along with that the experience of leading a diversified employee structure would also be there. (HP to buy Compaq, 2001)

    Opposition to the Merger

    In fact, it was only CEO Fiorina who was in favor of going with the merger. This is a practical application of Agency problem that arises because of change in financial strategies of the company owners and the management. Fiorina was certain to lose her job if the merger didn’t take effect. The reason was that HP was not able to meet the demand targets under her leadership. But the owners were against the merger due to the following beliefs of the owners:

    The new portfolio would be less preferable: The position of the company as a larger supplier of PCs would certainly increase the amount of risk and involve a lot of investment as well. Another important reason in this context is that HP’s prime interest in Imaging and Printing would not exist anymore as a result diluting the interest of the stockholders. In fact the company owners also feel that there would be a lower margin and ROI (return on investment).

    Strategic Problems would remain Unsolved: The market position in high-end servers and services would still remain in spite of the merger. The price of the PCS would not come down to be affordable by all. The requisite change in material for imaging and printing also would not exist. This merger would have no effect on the low end servers as Dell would be there in the lead and high-end servers either where IBM and Sun would have the lead. The company would also be eluded from the advantages of outsourcing because of the surplus labor it would have. So, the quality is not guaranteed to improve. Finally, the merger would not equal IBM under any condition as thought by Fiorina.

    Huge Integrated Risks: There have been no examples of success with such huge mergers. Generally when the market doesn’t support such mergers, don’t do well as is the case here. When HP could not manage its organization properly, integration would only add on to the difficulties. It would be even more difficult under the conditions because of the existing competitions between HP and Compaq. Being prone to such risky conditions, the company would also have to vary its costs causing greater trouble for the owner. The biggest factor of all is that to integrate the culture existing in the two companies would be a very difficult job.

    Financial Impact: This is mostly because the market reactions are negative. On the other hand, the position of Compaq was totally different from HP. As the company would have a greater contribution to the revenue and HP being diluted at the same time, the problems are bound to develop. This would mean that drawing money from the equity market would also be difficult for HP. In fact this might not seem to be a very profitable merger for Compaq as well in the future.

    The basic problem that the owners of the company had with this merger was that it would hamper the core values of HP. They felt that it is better to preserve wealth rather than to risk it with extravagant risk taking. This high risk profile of Fiorina was a little unacceptable for the owners of the company in light of its prospects.

    So, as far as this merger between HP and Compaq is concerned, on side there was this strong determination of the CEO, Fiorina and on the other side was the strong opposition from the company owners. This opposition continued from the market including all the investors of the company. So, this practical Agency problem was very famous considering the fact that it contained two of the most powerful hardware companies in the world. There were a number of options like Change Management, Economic wise Management, and Organizational Management which could be considered to analyze the issue. But this case study can be solved best by a strategy wise analysis. (HP-Compaq merger faces stiff opposition from shareholders stock prices fall again, 2001)

    Strategic Analysis of the Case

    Positive Aspects

    A CEO will always consider such a merger to be an occasion to take a competitive advantage over its rivals like IBM as in this case and also be of some interest to the shareholders as well. The following are the strategies that are related to this merger between HP and Compaq:

    * Having an eye over shareholders’ value: If one sees this merger from the eyes of Fiorina, it would be certain that the shareholders have a lot to gain from it. The reason for the same is the increment in the control of the market. So, even of the conditions were not suitable from the financial perspective, this truth would certainly make a lot of profits for the company in the future.

    * Development of Markets: Two organizations get involved in mergers as they want to expand their market both on the domestic and the international level. Integration with a domestic company doesn’t need much effort but when a company merges internationally as in this case, a challenging task is on head. A thorough situation scanning is significant before putting your feet in International arena. Here, the competitor for HP was Compaq to a large degree, so this merger certainly required a lot of thinking. Organizations merge with the international companies in order to set up their brands first and let people know about what they are capable of and also what they eye in the future. This is the reason that after this merger the products of Compaq would also have the logo of HP. Once the market is well-known, then HP would not have to suffer the branding created by Compaq. They would be able to draw all the customers of Compaq as well.

    * Propagated Efficiencies: Any company by acquiring another or by merging makes an attempt to add to its efficiencies by increasing the operations and also having control over it to the maximum extent. We can see that HP would now have an increased set of employees. The only factor is that they would have to be controlled properly as they are of different organizational cultures. (Benefits of Mergers:, 2010)

    * Allowances to use more resources: An improvised organization of monetary resources, intellectual capital and raw materials offers a competitive advantage to the companies. When such companies merge, many of the intellects come together and work towards a common mission to excel with financial profits to the company. Here, one can’t deny the fact that even the top brains of Compaq would be taking part in forming the strategies of the company in the future.

    * Management of risks: If we particularly take an example of this case, HP and Compaq entering into this merger can decrease the risk level they would have diversified business opportunities. The options for making choice of the supply chain also increase. Now even though HP is a pioneer in inkjet orienting, it would not have to use the Product based Facility layout which is more expensive. It can manage the risk of taking process based facility layout and make things cheaper. Manufacturing and Processing can now be done in various nations according to the cost viability as the major issue.

    * Listing potential: Even though Wall Street and all the investors of the company are against the merger, when IPOs are offered, a development will definitely be there because of the flourishing earnings and turnover value which HP would be making with this merger.

    * Necessary political regulations: When organizations take a leap into other nations, they need to consider the different regulations in that country which administer the policies of the place. As HP is already a pioneer in all the countries that Compaq used to do its business, this would not be of much difficulty for the company. The company would only need to make certain minor regulations with the political parties of some countries where Compaq was flourishing more than HP.

    * Better Opportunities: When companies merge with another company, later they can put up for sale as per as the needs of the company. This could also be done partially. If HP feels that it would not need much of warehouse space it can sell the same at increased profits. It depends on whether the company would now be regarded a s a make to stock or a make to order company.

    * Extra products, services, and facilities: Services get copyrights which enhances the level of trade. Additional Warehouse services and distribution channels offer business values. Here HP can use all such values integrated with Compaq so as to increase its prospects. (Berry, 2010)

    Negative Aspects

    There are a number of mergers and acquisitions that fail before they actually start to function. In the critical phase of implementation itself, the companies come to know that it would not be beneficial if they continue as a merger. This can occur in this merger between HP and Compaq due to the following reasons.

    Conversations are not implemented: Because of unlike cultures, ambitions and risk profiles; many of the deals are cancelled. As per as the reactions of the owners of HP, this seems to be extremely likely. So, motivation amongst the employees is an extremely important consideration in this case. This requires an extra effort by the CEO, Fiorina. This could also help her maintain her position in the company.

    Legal Contemplations: Anti-competitive deals are often limited by the rules presiding over the competition rules in a country. This leads to out of order functioning of one company and they try to separate from each other. A lot of unnecessary marketing failures get attached to these conditions. If this happens in this case, then all that money which went in publicizing the venture would go to be a waste. Moreover, even more would be required to re-promote as a single entity. Even the packaging where the entire inventory from Compaq had the logo of HP would have to be re-done, thus hampering the finance even further. (Broc Romanek, 2002)

    Compatibility problems: Every company runs on different platforms and ideas. Compatibility problems often occur because of synchronization issues. In IT companies such as HP and Compaq, many problems can take place because both the companies have worked on different strategies in the past. Now, it might not seem necessary for the HP management to make changes as per as those from Compaq. Thus such problems have become of greatest concern these days.

    Fiscal catastrophes: Both the companies after signing an agreement hope to have some return on the money they have put in to make this merger happen and also desire profitability and turnovers. If due to any reason, they are not able to attain that position, then they develop a abhorrence sense towards each other and also start charging each other for the failure.

    Human Resource Differences: Problems as a result of cultural dissimilarities, hospitality and hostility issues, and also other behavior related issues can take apart the origin of the merger.

    Lack of Determination: When organizations involve, they have plans in their minds, they have a vision set; but because of a variety of problems as mentioned above, development of the combined company to accomplish its mission is delayed. Merged companies set the goal and when the goal is not accomplished due to some faults of any of the two; then both of them develop a certain degree of hatred for each other. Also clashes can occur because of bias reactions. (William, 2008)

    Risk management failure: Companies that are involved in mergers and acquisitions, become over confident that they are going to make a profit out of this decision. This can be seen as with Fiorina. In fact she can fight the whole world for that. When their self-confidence turns out into over-confidence then they fail. Adequate risk management methods should be adopted which would take care of the effects if the decision takes a downturn. These risk policies should rule fiscal, productions, marketing, manufacturing, and inventory and HR risks associated with the merger.

    Strategic Sharing

    Marketing

    Hp and Compaq would now have common channels as far as their buying is concerned. So, the benefits in this concern is that even for those materials which were initially of high cost for HP would now be available at a cheaper price. The end users are also likely to increase. Now, the company can re frame its competitive strategy where the greatest concern can be given to all time rivals IBM. The advantages of this merger in the field of marketing can be seen in the case of shared branding, sales and service. Even the distribution procedure is likely to be enhanced with Compaq playing its part. Now, the company can look forward to cross selling, subsidization and also a reduced cost.

    Operations

    The foremost advantage in this area is that in the location of raw material. Even the processing style would be same making the products and services synchronized with the ideas and also in making a decent operational strategy. As the philosophical and mechanical control would also be in common, the operational strategy would now be to become the top most in the market. In this respect, the two companies would now have co-production, design and also location of staff. So, the operational strategy of HP would now be to use the process based facility layout and function with the mentioned shared values.

    Technology

    The technical strategy of the company can also be designed in common now. There is a disadvantage from the perspective of the differentiation that HP had in the field of inkjet printers but the advantages are also plentiful. With a common product and process technology, the technological strategy of the merged company would promote highly economical functioning. This can be done through a common research and development and designing team.

    Buying

    The buying strategy of the company would also follow a common mechanism. Here, the raw materials, machinery, and power would be common hence decreasing the cost once again. This can be done through a centralized mechanism with a lead purchaser keeping common policies in mind. Now Hp would have to think with a similar attitude for both inkjet printers as well as personal computers. This is because the parameters for manufacturing would also run on equal grounds.

    Infrastructure

    This is the most important part of the strategies that would be made after the merger. The companies would have common shareholders for providing the requisite infrastructure. The capital source, management style, and legislation would also be in common. So, the infrastructure strategies would have to take these things into account. This can be done by having a common accounting system. HP does have an option to have a separate accounting system for the products that it manufactures but that would only arouse an internal competition. So, the infrastructural benefits can be made through a common accounting, legal and human resource system. This would ensure that the investment relations of the company would improve. None of the Compaq investors would hesitate in making an investment if HP follows a common strategy.

    HP would now have to ensure another fact that with this merger they would be able to prove competitors to the present target and those of competitors like IBM as well. Even the operations and the output market needs to be above what exists at present. The company needs to ensure that the corporate strategy that it uses is efficient enough to help such a future. The degree of diversification needs to be managed thoroughly as well. This is because; the products from the two companies have performed exceptionally well in the past. So, the most optimum degree of diversification is required under the context so that the company is able to meet the demands of the customers. This has been challenged by the owners of HP but needs to be carried by the CEO Fiorina. (Bhattacharya, 2010)

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    Source by Rohit Agrawal

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  • Opportunities for Belgian investors in Nigeria

    Opportunities for Belgian investors in Nigeria

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  • What the CARES Act means for you

    What the CARES Act means for you

    Understand what rules exist to offer investors flexible relief options from their retirement savings accounts as a result of COVID-19.
    What the CARES Act means for you
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    https://investornews.vanguard/what-the-cares-act-means-for-you/

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