What makes Marwaris so successful in business?

Marwaris

According to Thomas A Timberg’s book, The Marwaris: From Jagath Seth to the Birlas, there are seven secrets of Marwari businessmen which are still valid “and perhaps will remain so”.


1. Watch the money

Marwaris

There are two key functions performed by the Marwari business firms and business groups – strategic management of investment funds by moving them to where they are most productive in the long term and close financial monitoring of the enterprises in which they have a share.

It is perhaps the changes in Harsh Goenka and Kumar Mangalam Birla’s business styles that point to a dilution of finance-centric strategies in present times.


2. Delegate but monitor

Marwaris

Successful business have to learn how to delegate, otherwise the span of economic activity can engage in will be limited.

They also have to know when to intervene, fully aware that a decision to intervene is costly. Usually it is easier to replace an unsatisfactory executive rather than turn him around. Ineffectual executives and family members are gently moved out to cushy and uncritical positions.


3. Plan, but have a style and a system

Marwaris

This is somewhat ambiguous as we clearly see a transition from an intuitive style to a more systematic one. However, this may be, as some suggest, a product of the transition from business founders to inheritors.


4. Lead to expand and do not let the system inhibit growth

Marwaris

A key characteristic of successful businessmen is a drive to expand. Many forms have expansion in their mission statements but few implement it.


5. The right corporate culture

Marwaris

The firm or group must have a style which befits its market and the times. Changes or adjustments constitute one of the most difficult tasks.

Corporate culture in a firm is critical in inspiring loyalty, especially of competent managers. Financial incentives can go only thus far, and are sometimes counterproductive.


6. Don’t get blown away by fads

Marwaris

The shelf life of half the management fads is six months. Professors, including those from business schools, devise striking and attractive theories which bear no responsibility for success.

A responsible manager has to be more tentative and experimental in his approach. As any school debater knows, there are usually at least two sides to any question, even multiple sides as in the Anekantavada of Jain logic. The problem is to decide which is right in a given situation.


7. Do not miss new developments

Marwaris

Some businesses describe themselves as ‘knowledge businesses’. As a matter of fact, all are. The world’s oldest family businesses have had some very successful ventures and a lot of failed ones because of missed opportunities.

Originally at http://economictimes.indiatimes.com/slideshows/management-leaders/7-secrets-that-makes-marwaris-so-good-in-business/what-makes-marwaris-so-successful-in-business/slideshow/55223494.cms

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Sat 03 Dec 16

Pay check: How much do these world leaders earn?

World Leader

Have you ever wondered how much money the top leaders of some of the world’s leading nations earn annually? Here’s a list of the most recent official data (as of September, 2016) of the yearly earnings of these world leaders.

* All figures in US dollars.

World Leader
Xi Jinping, President, People’s Republic of China
Salary: $20,600

 


World Leader
Narendra Modi, Prime Minister, India
Salary: $28,800

 


World Leader
Matteo Renzi, Prime Minister, Italy
Salary: $120,000

 


World Leader
Vladimir Putin, President, Russia
Salary: $137,650

 


World Leader
Theresa May, Prime Minister, UK
Salary: $186,119

 


World Leader
François Hollande, President, France
Salary: $198,700

 


World Leader
Jacob Zuma, President, South Africa
Salary: $206,600

 


World Leader
Shinzo Abe, Prime Minister, Japan
Salary: $241,250

 


World Leader
Angela Merkel, Chancellor, Germany
Salary: $242,000

 


World Leader
Justin Trudeau, Prime Minister, Canada
Salary: $260,000

 


World Leader
Barack Obama, President, USA
Salary: $400,000

– All figures according to official data compiled by CNN

Originally at http://www.msn.com/en-us/money/savingandinvesting/pay-check-how-much-do-these-world-leaders-earn/ss-AAawHzo#image=1

 

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Sat 15 Oct 16

Would Warren Buffett buy the iPhone 7? Probably not.

Here is why Warren Buffett will not buy iPhone 7

His company Berkshire Hathaway recently bought $1 billion worth of Apple stock. However, as per reports, the decision to invest was made by one of Buffett’s lieutenants, and not by the billionaire investor himself.

Buffett is known for being averse to investing in technology companies but his fund managers are reported to take their own calls.

What is more, Buffett’s last known cell phone is a flip phone, which he displayed in an interview to a TV channel in 2013.

Marked down

Buffett has been quoted as saying: "’Price is what you pay; value is what you get. Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down." Clearly value for money is Buffett’s motto and the iPhone 7 is definitely not ‘marked down’.

Further, Buffett does not feel that great businesses should be bought at any price.

‘Great’ phone at a high price

He has been further quoted as saying: "For the investor, a too-high purchase price for the stock of an excellent company can undo the effects of a subsequent decade of favourable business developments."

So should you be buying a ‘great’ phone at a high price?

Comfort for a year

With Rs 60,000, the starting price of iPhone 7, you could do a lot of other things such as running your room and/or car air-conditioner the entire summer without stinging. You could buy comfort for the entire year depending on your usage.

Depreciation

You could invest the amount in a tax saving instrument under Section 80C and get tax relief equal to a maximum of 30 per cent of Rs 60,000 if you are in the 30% tax bracket. This way you would be getting returns on your money plus saving tax.

High-end electronic gadgets depreciate the fastest. In a few years time this model would be half obsolete. So look at buying it only if you just can’t do without the unique features offered by the iPhone 7. Ponder some more of Warren’s wisdom: "If you buy things you do not need, soon you will have to sell things you need."

If you are looking at getting value for money check the market for other phones which offer good features at lower prices.

Finally, if you do decide to go for the iPhone 7 it would be advisable to insure it immediately after purchase and enable anti-theft mechanisms/apps.

Originally at

http://m.economictimes.com/slideshows/investments-markets/would-warren-buffett-buy-the-iphone-7-probably-not/great-phone-at-a-high-price/slideshow/54272110.cms