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Thank You Letter after An Interview
- Sample Thank You Letter for a Job Interview
- Sample Thank You Letter Requesting a Second Interview
- Sample Follow-Up / Thank You Letter After a Job Interview
- Thank You Letter Template
- Sample Letter Thanking a Prospective Co-Worker
- Sample General Thank You Letter
- Thank You Letter for an Internship
- Sample by Email
- Sample Thank You Letter for an Informational Interview
- Sample Thank You Letter for a Job Offer
- Sample Thank You Letter for an Volunteer Interview
- Sample Networking Thank You Letter
- Job Rejection Letter (Thank you for job offer)
- Job Rejection Letter Sample (Thank you for job offer)
- Thank You Letters
Here is a sample selection of free thank-you letters:
- General Interview Thank You Letter
- Interview Thank You Letter that Stresses Fit
- Interview Thank You Letter that Builds on Strength
- Interview Thank You Letter that Entices the Employer
- Interview Thank You Letter that Aims at Damage Control
- Interview Thank You Letter that Mentions Interview Afterthoughts
- Interview Thank You Letter for a Campus Recruiter
- Career/Job Fair Interview Thank You Letter
- Career Networking Thank You Letter
Fatal mistakes when starting a new job
When you start a new job, obviously you want to impress your co-workers and bosses so you'll thrive. Milo Sindell and Thuy Sindell, Ph.D., a husband-and-wife team of consultants for clients like Charles Schwab, Cisco Systems, Wells Fargo, and Yahoo!, are authors of a book called Sink or Swim (Adams Media, $14.95) and a website (www.hitthegroundrunning.com) that just might help.
Some excerpts from recent conversation:
Q. Why do so many new hires wash out in their first year?
Milo: A big reason is that a huge percentage of new employees, including new managers, are not clearly told what they were hired to do or what their goals should be for the first six months and the first year.
Thuy: They also usually aren't told where to find information that they need, so they spend a lot of time reinventing the wheel - and their managers think they're idiots for wasting so much time and not asking colleagues or bosses for help.
Q. What are some "red flags" that might indicate you're in trouble in a new job?
Thuy: One is, if you don't know why you are doing something. If you don't know your goals or what success looks like, you can't succeed. Another red flag would be if you frequently find your mouth open. You need to listen at least five times as much as you talk.
Milo: It's a warning sign, too, if no one on your team comes up to you and tells you they're glad you're on the team. If you don't know what your team wants from you and how they want it, you haven't got a chance.
Q. Suppose there are people with hostile attitudes or petty turf concerns who are really hoping you'll fail at this job? How can you deal with that?
Milo: Three things. First, try to bring to the surface the reasons behind the attitude. Ask questions to understand what's really going on. Second, change the conversation. Focus on the goals of the group, team, or company.
Thuy: And third, rise above. If all else fails, you need to be the one who takes the higher road.
Q. Your book emphasizes the first 12 weeks in a new job as being the most crucial for laying a solid foundation. What is most important for someone just starting his or her first job out of college?
Thuy: Meet as many people as you can, and explore lots of different opportunities and areas of interest. Constantly look for chances to build your experience.
Milo: Make sure you deliver on every commitment that you make.
Some excerpts from recent conversation:
Q. Why do so many new hires wash out in their first year?
Milo: A big reason is that a huge percentage of new employees, including new managers, are not clearly told what they were hired to do or what their goals should be for the first six months and the first year.
Thuy: They also usually aren't told where to find information that they need, so they spend a lot of time reinventing the wheel - and their managers think they're idiots for wasting so much time and not asking colleagues or bosses for help.
Q. What are some "red flags" that might indicate you're in trouble in a new job?
Thuy: One is, if you don't know why you are doing something. If you don't know your goals or what success looks like, you can't succeed. Another red flag would be if you frequently find your mouth open. You need to listen at least five times as much as you talk.
Milo: It's a warning sign, too, if no one on your team comes up to you and tells you they're glad you're on the team. If you don't know what your team wants from you and how they want it, you haven't got a chance.
Q. Suppose there are people with hostile attitudes or petty turf concerns who are really hoping you'll fail at this job? How can you deal with that?
Milo: Three things. First, try to bring to the surface the reasons behind the attitude. Ask questions to understand what's really going on. Second, change the conversation. Focus on the goals of the group, team, or company.
Thuy: And third, rise above. If all else fails, you need to be the one who takes the higher road.
Q. Your book emphasizes the first 12 weeks in a new job as being the most crucial for laying a solid foundation. What is most important for someone just starting his or her first job out of college?
Thuy: Meet as many people as you can, and explore lots of different opportunities and areas of interest. Constantly look for chances to build your experience.
Milo: Make sure you deliver on every commitment that you make.
Get recruiters to call you with great jobs
What's the best way to get headhunters to call you the next time a terrific new opportunity crosses their desk? It helps to always take - and return - their calls. Headhunters remember people who make their own jobs easier.
"There is a lot of quid pro quo in our business," says Dale Winston, CEO of Manhattan-based executive recruiters Battalia Winston International. "We keep people in mind who have helped us find good candidates in the past, and we like to reciprocate that help."
Translation: Even if you aren't the right person for the job a headhunter is trying to fill at any given moment, you may be the right person for the next one. So take those phone calls, and see if you can't come up with the names of a couple of good prospects, or at least be willing to try.
It's also important to be as visible outside your own company as possible. In other words, get your name and accomplishments out there where headhunters will notice them.
"If you're not sure how visible you are to recruiters or to other people who might be interested in you, Google yourself," Winston suggests. "Headhunters do use Google to spot people who are leaders in their fields. So be there."
What if you try it and nothing comes up? Time to get busy. If you're already active in a trade association or professional group, try to take a more influential role, perhaps by running for elected office (treasurer, secretary, president...) or heading up an important committee.
"We do look at who is in leadership positions in professional organizations, because these tend to be smart, energetic, proactive people," Winston says.
Giving speeches at conferences and other industry events is another way to get yourself on the map (and your company's very own public-relations folks may be more than happy to put you forward as a possible speaker).
You might also write articles for trade journals or your local newspaper's opinion page on topics in which you're expert, particularly if they're timely.
"You need to make the time to get significant exposure beyond your own company - and do it before you get totally frustrated with your current job," says Winston. "Once you reach the woe-is-me stage, you're not going to be a good candidate."
"There is a lot of quid pro quo in our business," says Dale Winston, CEO of Manhattan-based executive recruiters Battalia Winston International. "We keep people in mind who have helped us find good candidates in the past, and we like to reciprocate that help."
Translation: Even if you aren't the right person for the job a headhunter is trying to fill at any given moment, you may be the right person for the next one. So take those phone calls, and see if you can't come up with the names of a couple of good prospects, or at least be willing to try.
It's also important to be as visible outside your own company as possible. In other words, get your name and accomplishments out there where headhunters will notice them.
"If you're not sure how visible you are to recruiters or to other people who might be interested in you, Google yourself," Winston suggests. "Headhunters do use Google to spot people who are leaders in their fields. So be there."
What if you try it and nothing comes up? Time to get busy. If you're already active in a trade association or professional group, try to take a more influential role, perhaps by running for elected office (treasurer, secretary, president...) or heading up an important committee.
"We do look at who is in leadership positions in professional organizations, because these tend to be smart, energetic, proactive people," Winston says.
Giving speeches at conferences and other industry events is another way to get yourself on the map (and your company's very own public-relations folks may be more than happy to put you forward as a possible speaker).
You might also write articles for trade journals or your local newspaper's opinion page on topics in which you're expert, particularly if they're timely.
"You need to make the time to get significant exposure beyond your own company - and do it before you get totally frustrated with your current job," says Winston. "Once you reach the woe-is-me stage, you're not going to be a good candidate."
3 things B-schools don't teach
I had the best time of my life at the Indian Institute of Management, Ahmedabad. It is a great institution and the overall ambience is highly conducive to intellectual pursuit.
The campus, designed by Louis Kahn, is inspiring to say the least. First-time visitors to the campus are likely to think that this is where great businesses of the future will be conceived. I wish it were true.
My experience in life has taught me that while a business school is a great stepping-stone into the corporate world, it is not necessarily the best guide to navigate successfully through it. B-schools exist as a part of our formal education system and serve a purpose: to provide two years of immersed study into various aspects of the science of management. No more, no less.
However, the MBA lore, culture and mystique has got so much media attention over the past decade that star business schools have acquired a larger-than-life image. Do we expect business schools to provide us the DNA for success? It would be a very tall order.
There is a lot that B-schools do very well. For instance, it was at B-school that I got my first lessons in deconstructing problems, logically structuring an argument, learning how to communicate effectively, and so on.
It is also a great place to network with people from across the country, understand different mindsets, aspirations and lifestyles. But there are huge gaps between critical factors for business success and what they do not teach you.
So, what do they not teach you at B-school? A lot really, and it is easy to sermonise about this. But if the purpose of a B-school is to produce wealth and value creators, then the people who run B-schools need to take a hard look at real life and model the curriculum based on how value gets created. So, here is my prescription of creating a cutting-edge curriculum
1. Life-skills: It is well known that the information and knowledge component of what we learn will soon be forgotten or become irrelevant, so focus on life-skills in the affective domain - that is, communication, creativity, critical thinking and problem-solving skills.
Measure how many new ideas each student comes up with. Don't make this a course, make this a part of every course. You have 24 months to change the thinking paradigm of each student, make full use of it.
2. Higher-order thinking: The ratio of theory to real-world learning should be 70:30. The real world is all about higher-order thinking; therefore, the ability to develop higher-order thinking skills such as application, design and evaluation should be valued more than knowledge and comprehension, and the evaluation and grading system of B-schools must reflect this.
3. Exposure and global outreach: When you start working, by definition your mental landscape becomes myopic and focused on work life.
B-schools should seize the opportunity to expose the student to things that he will find impossible to do on his own - take him to places like China and Brazil, let him hear from a business leader, thinkers and institution-builder each evening. Let him experience and learn to think multidimensionally.
How about a course on art history and seven days in an Indian village? You will trigger a thought process or open new doors in his life and help him redefine his life goals; thanks to this new and real perspective.
Above all, business schools have to reinvent themselves each year and hopefully, every B-school dean is awake at night thinking precisely this: what do I not teach at my school that I should?
Shantanu Prakash graduated from IIM, Ahmedabad in 1988.
The campus, designed by Louis Kahn, is inspiring to say the least. First-time visitors to the campus are likely to think that this is where great businesses of the future will be conceived. I wish it were true.
My experience in life has taught me that while a business school is a great stepping-stone into the corporate world, it is not necessarily the best guide to navigate successfully through it. B-schools exist as a part of our formal education system and serve a purpose: to provide two years of immersed study into various aspects of the science of management. No more, no less.
However, the MBA lore, culture and mystique has got so much media attention over the past decade that star business schools have acquired a larger-than-life image. Do we expect business schools to provide us the DNA for success? It would be a very tall order.
There is a lot that B-schools do very well. For instance, it was at B-school that I got my first lessons in deconstructing problems, logically structuring an argument, learning how to communicate effectively, and so on.
It is also a great place to network with people from across the country, understand different mindsets, aspirations and lifestyles. But there are huge gaps between critical factors for business success and what they do not teach you.
So, what do they not teach you at B-school? A lot really, and it is easy to sermonise about this. But if the purpose of a B-school is to produce wealth and value creators, then the people who run B-schools need to take a hard look at real life and model the curriculum based on how value gets created. So, here is my prescription of creating a cutting-edge curriculum
1. Life-skills: It is well known that the information and knowledge component of what we learn will soon be forgotten or become irrelevant, so focus on life-skills in the affective domain - that is, communication, creativity, critical thinking and problem-solving skills.
Measure how many new ideas each student comes up with. Don't make this a course, make this a part of every course. You have 24 months to change the thinking paradigm of each student, make full use of it.
2. Higher-order thinking: The ratio of theory to real-world learning should be 70:30. The real world is all about higher-order thinking; therefore, the ability to develop higher-order thinking skills such as application, design and evaluation should be valued more than knowledge and comprehension, and the evaluation and grading system of B-schools must reflect this.
3. Exposure and global outreach: When you start working, by definition your mental landscape becomes myopic and focused on work life.
B-schools should seize the opportunity to expose the student to things that he will find impossible to do on his own - take him to places like China and Brazil, let him hear from a business leader, thinkers and institution-builder each evening. Let him experience and learn to think multidimensionally.
How about a course on art history and seven days in an Indian village? You will trigger a thought process or open new doors in his life and help him redefine his life goals; thanks to this new and real perspective.
Above all, business schools have to reinvent themselves each year and hopefully, every B-school dean is awake at night thinking precisely this: what do I not teach at my school that I should?
Shantanu Prakash graduated from IIM, Ahmedabad in 1988.
How Companies Got their Name
Apple Computers
It was the favourite fruit of founder Steve Jobs. He was three months late in filing a name for the business, and he threatened to call his company Apple Computers if the other colleagues didn't suggest a better name by 5 O'clock.
CISCO
It is not an acronym as popularly believed. It is short for San Francisco.
Compaq
This name was formed by using COMp, for computer, and PAQ to denote a small integral object.
Corel
The name was derived from the founder's name Dr.Michael Cowpland. It stands for COwpland REsearch Laboratory.
Google
The name started as a joke boasting about the amount of information the search-engine would be able to search. It was originally named 'Googol', a word for the number represented by 1 followed by 100 zeros.After founders - Stanford graduate students Sergey Brin and Larry Page presented their project to an angel investor, they received a cheque made out to 'Google'
Hotmail
Founder Jack Smith got the idea of accessing e-mail via the web from a computer anywhere in the world.When Sabeer Bhatia came up with the business plan for the mail service, he tried all kinds of names ending in 'mail' and finally settled for hotmail as it included the letters "html" - the programming language used to write web pages. It was initially referred to as HoTMaiL with selective uppercasing.
Hewlett Packard
Bill Hewlett and Dave Packard tossed a coin to decide whether the company they founded would be called Hewlett-Packard or Packard-Hewlett.
Intel
Bob Noyce and Gordon Moore wanted to name their new company 'Moore Noyce' but that was already trademarked by a hotel chain so they had to settle for an acronym of INTegrated ELectronics.
Lotus (Notes)
Mitch Kapor got the name for his company from 'The Lotus Position' or 'Padmasana'. Kapor used to be a teacher of Transcendental Meditation of Maharishi Mahesh Yogi.
Microsoft
Coined by Bill Gates to represent the company that was devoted to MICROcomputer SOFTware. Originally christened Micro-Soft, the '-' was removed later on.
Motorola
Founder Paul Galvin came up with this name when his company started manufacturing radios for cars. The popular radio company at the time was called Victrola.
ORACLE
Larry Ellison and Bob Oats were working on a consulting project for the CIA (Central Intelligence Agency). The code name for the project was called Oracle (the CIA saw this as the system to give answers to all questions or something such). The project was designed to help use the newly written SQL code by IBM. The project eventually was terminated but Larry and Bob decided to finish what they started and bring it to the world. They kept the name Oracle and created the RDBMS engine. Later they kept the same name for the company.
Sony
It originated from the Latin word 'sonus' meaning sound, and 'sonny' a slang used by Americans to refer to a bright youngster.
SUN
Founded by 4 Stanford University buddies, SUN is the acronym for Stanford University Network. Andreas Bechtolsheim built a microcomputer; Vinod Khosla recruited him and Scott McNealy to manufacture computers based on it, and Bill Joy to develop a UNIX-based OS for the computer.
Yahoo!
The word was invented by Jonathan Swift and used in his book 'Gulliver's Travels'. It represents a person who is repulsive in appearance and action and is barely human. Yahoo! Founders Jerry Yang and David Filo selected the name because they considered themselves yahoos
It was the favourite fruit of founder Steve Jobs. He was three months late in filing a name for the business, and he threatened to call his company Apple Computers if the other colleagues didn't suggest a better name by 5 O'clock.
CISCO
It is not an acronym as popularly believed. It is short for San Francisco.
Compaq
This name was formed by using COMp, for computer, and PAQ to denote a small integral object.
Corel
The name was derived from the founder's name Dr.Michael Cowpland. It stands for COwpland REsearch Laboratory.
The name started as a joke boasting about the amount of information the search-engine would be able to search. It was originally named 'Googol', a word for the number represented by 1 followed by 100 zeros.After founders - Stanford graduate students Sergey Brin and Larry Page presented their project to an angel investor, they received a cheque made out to 'Google'
Hotmail
Founder Jack Smith got the idea of accessing e-mail via the web from a computer anywhere in the world.When Sabeer Bhatia came up with the business plan for the mail service, he tried all kinds of names ending in 'mail' and finally settled for hotmail as it included the letters "html" - the programming language used to write web pages. It was initially referred to as HoTMaiL with selective uppercasing.
Hewlett Packard
Bill Hewlett and Dave Packard tossed a coin to decide whether the company they founded would be called Hewlett-Packard or Packard-Hewlett.
Intel
Bob Noyce and Gordon Moore wanted to name their new company 'Moore Noyce' but that was already trademarked by a hotel chain so they had to settle for an acronym of INTegrated ELectronics.
Lotus (Notes)
Mitch Kapor got the name for his company from 'The Lotus Position' or 'Padmasana'. Kapor used to be a teacher of Transcendental Meditation of Maharishi Mahesh Yogi.
Microsoft
Coined by Bill Gates to represent the company that was devoted to MICROcomputer SOFTware. Originally christened Micro-Soft, the '-' was removed later on.
Motorola
Founder Paul Galvin came up with this name when his company started manufacturing radios for cars. The popular radio company at the time was called Victrola.
ORACLE
Larry Ellison and Bob Oats were working on a consulting project for the CIA (Central Intelligence Agency). The code name for the project was called Oracle (the CIA saw this as the system to give answers to all questions or something such). The project was designed to help use the newly written SQL code by IBM. The project eventually was terminated but Larry and Bob decided to finish what they started and bring it to the world. They kept the name Oracle and created the RDBMS engine. Later they kept the same name for the company.
Sony
It originated from the Latin word 'sonus' meaning sound, and 'sonny' a slang used by Americans to refer to a bright youngster.
SUN
Founded by 4 Stanford University buddies, SUN is the acronym for Stanford University Network. Andreas Bechtolsheim built a microcomputer; Vinod Khosla recruited him and Scott McNealy to manufacture computers based on it, and Bill Joy to develop a UNIX-based OS for the computer.
Yahoo!
The word was invented by Jonathan Swift and used in his book 'Gulliver's Travels'. It represents a person who is repulsive in appearance and action and is barely human. Yahoo! Founders Jerry Yang and David Filo selected the name because they considered themselves yahoos
Get a rude co-worker to shut up
A reader writes: "Dear Annie: I was hired about six months ago to do part of the work a colleague had been doing. Lately, he has developed the extremely rude habit of interrupting whenever I'm speaking - and almost always leaping to the wrong conclusion. He shouts me down to interrupt me. It's not that I'm delivering long monologues; I try to keep my remarks brief and to the point. This is really aggravating an already stressful working relationship. How does one make "shut up and let me finish" sound polite?"
The solution? "From your description, I'd say the person interrupting you is not only rude but is also a bully. For bullies, everything is a control issue, so you need to let him know that you are in control," says Frank Kenna III, CEO of the Marlin Co., a 93-year-old workplace communications firm in North Haven, Conn. "How you deliver your message is just as important as what you say. It's up to you to strike a delicate balance, somewhere between a battering ram and a doormat."
When your co-worker starts to interrupt you, Kenna suggests saying something like, "One moment, Fred (or whatever his name is), I'm not finished." Say it with "a strong and confident tone," Kenna says. "If you have a soft voice, you might also accompany it with a forceful hand motion. Make sure to do this consistently every time he interrupts." Sooner or later he'll get the point.
One other thought: It sounds to me as if this guy might be struggling with some turf issues, raised by your having been brought in to take over part of his job. Many people's egos are quite fragile and easily bruised, and that can give rise to some pretty obnoxious behavior - constantly interrupting, for example. Maybe he'd calm down and let you finish a sentence if you gave him a pat on the back once in a while and made a point of acknowledging his contributions to the team. It's worth a try.
The solution? "From your description, I'd say the person interrupting you is not only rude but is also a bully. For bullies, everything is a control issue, so you need to let him know that you are in control," says Frank Kenna III, CEO of the Marlin Co., a 93-year-old workplace communications firm in North Haven, Conn. "How you deliver your message is just as important as what you say. It's up to you to strike a delicate balance, somewhere between a battering ram and a doormat."
When your co-worker starts to interrupt you, Kenna suggests saying something like, "One moment, Fred (or whatever his name is), I'm not finished." Say it with "a strong and confident tone," Kenna says. "If you have a soft voice, you might also accompany it with a forceful hand motion. Make sure to do this consistently every time he interrupts." Sooner or later he'll get the point.
One other thought: It sounds to me as if this guy might be struggling with some turf issues, raised by your having been brought in to take over part of his job. Many people's egos are quite fragile and easily bruised, and that can give rise to some pretty obnoxious behavior - constantly interrupting, for example. Maybe he'd calm down and let you finish a sentence if you gave him a pat on the back once in a while and made a point of acknowledging his contributions to the team. It's worth a try.
FII (Foreign Institutional Investor)
Investopedia Says:
"The term is used most commonly in India to refer to outside companies investing in the financial markets of India. International institutional investors must register with the Securities and Exchange Board of India to participate in the market. One of the major market regulations pertaining to FIIs involves placing limits on FII ownership in Indian companies."
Foreign Institutional Investor [FII] is used to denote an investor - mostly of the form of an institution or entity, which invests money in the financial markets of a country different from the one where in the institution or entity was originally incorporated.
Institutional investors include hedge funds, insurance companies, pension funds and mutual funds.
FII investment is frequently referred to as hot money for the reason that it can leave the country at the same speed at which it comes in.
In countries like India, statutory agencies like SEBI have prescribed norms to register FII's and also to regulate such investments flowing in through FII's.
"The term is used most commonly in India to refer to outside companies investing in the financial markets of India. International institutional investors must register with the Securities and Exchange Board of India to participate in the market. One of the major market regulations pertaining to FIIs involves placing limits on FII ownership in Indian companies."
Foreign Institutional Investor [FII] is used to denote an investor - mostly of the form of an institution or entity, which invests money in the financial markets of a country different from the one where in the institution or entity was originally incorporated.
Institutional investors include hedge funds, insurance companies, pension funds and mutual funds.
FII investment is frequently referred to as hot money for the reason that it can leave the country at the same speed at which it comes in.
In countries like India, statutory agencies like SEBI have prescribed norms to register FII's and also to regulate such investments flowing in through FII's.
PNs (Participatory Notes)
Participatory notes (PNs) are instruments used by investors or hedge funds that are not registered with the SEBI (Securities & Exchange Board of India) to invest in Indian securities. Indian based brokerages buy Indian-based securities and then issue PNs to foreign investors. Any dividends or capital gains collected from the underlying securities go back to the investors.
Investopedia Says:
"In many ways, this is similar to an informal ADR process, where brokerages hold on to stocks for foreign investors. However, Indian regulators are not very happy about participatory notes because they have no way to know who owns the underlying securities. Regulators fear that hedge funds acting through participatory notes will cause economic volatility in India's exchanges."
Participatory notes are instruments used for making investments in the stock markets. However, they are not used within the country. They are used outside India for making investments in shares listed in that country. That is why they are also called offshore derivative instruments.
Like any other derivative instruments, their value is determined on the basis of the underlying asset. In the case of participatory notes, the underlying assets are shares listed on the stock exchanges.
In the Indian context, foreign institutional investors (FIIs) and their sub-accounts mostly use these instruments for facilitating the participation of their overseas clients, who are not interested in participating directly in the Indian stock market. For example, Indian-based brokerages buy India-based securities and then issue participatory notes to foreign investors. Any dividends or capital gains collected from the underlying securities go back to the investors According to one estimate, participatory notes constitute more than 25% of the cumulative net investments in equities by FIIs.
Any entity investing in participatory notes is not required to register with SEBI (Securities and Exchange Board of India), whereas all FIIs have to compulsorily get registered. Trading through participatory notes is easy because
Participatory notes are instruments used by foreign funds which are not registered to trade in domestic Indian Capital Markets. PNs are derivative instruments issued against an underlying security permitting holders to get a share in the income from the security.
How does it work?
Investors who buy PNs deposit their funds in US or European operations of Foreign Institutional Investors (FII) operating in India . The FII uses its proprietary account to buy stocks.
Why do investors use PNs?
Reason for using PNs is to keep investor name anonymous, some investors have used them to save transaction and overhead costs.
What is the problem with PNs?
Tax officials fear that PNs are becoming a favourite with a host of Indian money launderers who use them to first take funds out of country through hawala and then get it back using PNs.
Some FIIs issuing PNs:
Citigroup, Goldman Sachs, Merrill Lynch, Morgan Stanley.
Investopedia Says:
"In many ways, this is similar to an informal ADR process, where brokerages hold on to stocks for foreign investors. However, Indian regulators are not very happy about participatory notes because they have no way to know who owns the underlying securities. Regulators fear that hedge funds acting through participatory notes will cause economic volatility in India's exchanges."
Participatory notes are instruments used for making investments in the stock markets. However, they are not used within the country. They are used outside India for making investments in shares listed in that country. That is why they are also called offshore derivative instruments.
Like any other derivative instruments, their value is determined on the basis of the underlying asset. In the case of participatory notes, the underlying assets are shares listed on the stock exchanges.
In the Indian context, foreign institutional investors (FIIs) and their sub-accounts mostly use these instruments for facilitating the participation of their overseas clients, who are not interested in participating directly in the Indian stock market. For example, Indian-based brokerages buy India-based securities and then issue participatory notes to foreign investors. Any dividends or capital gains collected from the underlying securities go back to the investors According to one estimate, participatory notes constitute more than 25% of the cumulative net investments in equities by FIIs.
Any entity investing in participatory notes is not required to register with SEBI (Securities and Exchange Board of India), whereas all FIIs have to compulsorily get registered. Trading through participatory notes is easy because
- They are like contract notes transferable by endorsement and delivery.
- Some of the entities route their investment through participatory notes to take advantage of the tax laws of certain preferred countries.
- They are popular because they provide a high degree of anonymity, which enables large hedge funds to carry out their operations without disclosing their identity.
Participatory notes are instruments used by foreign funds which are not registered to trade in domestic Indian Capital Markets. PNs are derivative instruments issued against an underlying security permitting holders to get a share in the income from the security.
How does it work?
Investors who buy PNs deposit their funds in US or European operations of Foreign Institutional Investors (FII) operating in India . The FII uses its proprietary account to buy stocks.
Why do investors use PNs?
Reason for using PNs is to keep investor name anonymous, some investors have used them to save transaction and overhead costs.
What is the problem with PNs?
Tax officials fear that PNs are becoming a favourite with a host of Indian money launderers who use them to first take funds out of country through hawala and then get it back using PNs.
Some FIIs issuing PNs:
Citigroup, Goldman Sachs, Merrill Lynch, Morgan Stanley.
FII Flows into India
Why India will continue to attract inflows?
The finance minister said it all when he acknowledged that the Securities and Exchange Board of India’s move to phase out participatory notes (PNs) was part and parcel of the government’s attempt to moderate the pace of capital inflows. The steps against PNs have little to do with ascertaining their place of origin or to make the flows more transparent, but have everything to do with easing the inexorable upward pressure on the rupee caused by an avalanche of dollars landing on our shores.
It’s hurting exports, creating a big headache for the Reserve Bank of India, and threatens to throw people in the textiles industry and in small-scale industries out of their jobs; so the government will do everything possible to limit these inflows. First they tried lowering interest rates on non-resident Indian deposits, then they tried limiting external commercial borrowings and now they’re trying to plug inflows through PNs.
Will they succeed? They could, in the short run, because the move coincides with the tapering off of the first heady rush of capital fleeing the badlands of the US credit markets for a more salubrious home in emerging markets. Of course, if the US Federal Reserve goes in for another rate cut at the end of October, inflows may once again accelerate.
It’s no coincidence that the International Monetary Fund’s (IMF) World Economic Outlook contains lots of advice to developing nations on how to live with large capital inflows. Gross capital inflows to emerging markets, in dollar terms, are now higher than in the mid-1990s, just before the Asian crisis. The figure is not so high on a net basis, but it’s still pretty large. So what else can the government do to curb inflows? Well, it can learn from what Chile did in the 1990s or what Thailand, Colombia and Argentina have done more recently, and mandate setting aside a portion of short-term inflows in interest-free reserves, which basically amounts to a tax on inflows.
What’s the risk? IMF says: “Experience suggests that such measures tend to have a diminishing impact over time, as ways are found to elude the controls, and can, if sustained, also have negative consequences for financial system development.” Or the government could adopt measures aimed at cooling down overheated equity and property markets, such as China’s recent increase in stamp duty on stock market transactions and Singapore’s increased property redevelopment charge. IMF also points out that countries have used fiscal incentives to offset some of the implications of exchange rate appreciation, such as Brazil’s introduction of import tariffs on certain sectors. In India, the commerce ministry’s rather inadequate sops to exporters would also fall in this category.
The more important question is: why the rush of money to countries like India? There are several reasons. One of them is increased global liquidity. Now global liquidity can mean lots of different things, which is why the discussion about it in the World Economic Outlook report is very helpful. One way of looking at liquidity is to consider it as a function of monetary policy. It can then be measured by considering either real interest rates or by focusing on quantitative factors such as money supply or the build-up of foreign exchange reserves. Monetary policy, which had been very loose, was being slowly tightened until the credit crunch hit the developed markets. IMF says that “notwithstanding the reversion to a neutral monetary policy stance in the United States and the euro area, real long-term interest rates on government securities in advanced economies have remained low compared with their historical average”. If the money supply plus forex reserves measure is used, “global liquidity shows elevated growth rates until very recently”.
But the IMF report also talks of another kind of liquidity—market liquidity. It says that the liquidity of global equity markets has also increased substantially since the mid-1990s, with the rise in emerging markets being particularly impressive. True, this market liquidity is cyclical, with ebbs and flows, “but the cycle is only weakly related to movements in real policy rates and is unrelated to quantitative measures of the global monetary policy stance, suggesting that secular factors underlie improvements in global market liquidity”. In short, the improvement in global market liquidity is the result not just of cyclical factors, but also of structural ones. Globalization, securitization, derivatives and financial deepening have all contributed to this market liquidity. This, says IMF, is “strongly suggestive of an implied historical decrease in liquidity premiums, likely contributing to the overall decline in risk premium”. What this means is that higher market liquidity can reduce the risk associated with a given asset portfolio. As a result, a larger portion of investors’ wealth may be invested in “risky” assets, in spite of risk tolerance remaining at the same level. Put another way, the widening, maturing and deepening of capital markets has led to greater liquidity that has reduced the risk premium. This is particularly true of emerging markets and it has made them more attractive investments. The other reason for the huge inflows into the Indian market is best brought out by one statistic: India, China and Russia accounted for one-half of global growth in the past one year. Look at IMF’s forecasts of growth next year: the US is expected to grow 1.9% in 2008, the euro area 2.1%, Japan 1.7% and Britain 2.3%, while the forecast for China is 10% and India 8.4%. When you combine high growth and a reduced risk premium, the choice for investors couldn’t be clearer.
Mint’s resident market expert Manas Chakravarty looks at trends and issues related to investing in general and Indian bourses in particular. Your comments are welcome at capitalaccount@livemint.com.
The finance minister said it all when he acknowledged that the Securities and Exchange Board of India’s move to phase out participatory notes (PNs) was part and parcel of the government’s attempt to moderate the pace of capital inflows. The steps against PNs have little to do with ascertaining their place of origin or to make the flows more transparent, but have everything to do with easing the inexorable upward pressure on the rupee caused by an avalanche of dollars landing on our shores.
It’s hurting exports, creating a big headache for the Reserve Bank of India, and threatens to throw people in the textiles industry and in small-scale industries out of their jobs; so the government will do everything possible to limit these inflows. First they tried lowering interest rates on non-resident Indian deposits, then they tried limiting external commercial borrowings and now they’re trying to plug inflows through PNs.
Will they succeed? They could, in the short run, because the move coincides with the tapering off of the first heady rush of capital fleeing the badlands of the US credit markets for a more salubrious home in emerging markets. Of course, if the US Federal Reserve goes in for another rate cut at the end of October, inflows may once again accelerate.
It’s no coincidence that the International Monetary Fund’s (IMF) World Economic Outlook contains lots of advice to developing nations on how to live with large capital inflows. Gross capital inflows to emerging markets, in dollar terms, are now higher than in the mid-1990s, just before the Asian crisis. The figure is not so high on a net basis, but it’s still pretty large. So what else can the government do to curb inflows? Well, it can learn from what Chile did in the 1990s or what Thailand, Colombia and Argentina have done more recently, and mandate setting aside a portion of short-term inflows in interest-free reserves, which basically amounts to a tax on inflows.
What’s the risk? IMF says: “Experience suggests that such measures tend to have a diminishing impact over time, as ways are found to elude the controls, and can, if sustained, also have negative consequences for financial system development.” Or the government could adopt measures aimed at cooling down overheated equity and property markets, such as China’s recent increase in stamp duty on stock market transactions and Singapore’s increased property redevelopment charge. IMF also points out that countries have used fiscal incentives to offset some of the implications of exchange rate appreciation, such as Brazil’s introduction of import tariffs on certain sectors. In India, the commerce ministry’s rather inadequate sops to exporters would also fall in this category.
The more important question is: why the rush of money to countries like India? There are several reasons. One of them is increased global liquidity. Now global liquidity can mean lots of different things, which is why the discussion about it in the World Economic Outlook report is very helpful. One way of looking at liquidity is to consider it as a function of monetary policy. It can then be measured by considering either real interest rates or by focusing on quantitative factors such as money supply or the build-up of foreign exchange reserves. Monetary policy, which had been very loose, was being slowly tightened until the credit crunch hit the developed markets. IMF says that “notwithstanding the reversion to a neutral monetary policy stance in the United States and the euro area, real long-term interest rates on government securities in advanced economies have remained low compared with their historical average”. If the money supply plus forex reserves measure is used, “global liquidity shows elevated growth rates until very recently”.
But the IMF report also talks of another kind of liquidity—market liquidity. It says that the liquidity of global equity markets has also increased substantially since the mid-1990s, with the rise in emerging markets being particularly impressive. True, this market liquidity is cyclical, with ebbs and flows, “but the cycle is only weakly related to movements in real policy rates and is unrelated to quantitative measures of the global monetary policy stance, suggesting that secular factors underlie improvements in global market liquidity”. In short, the improvement in global market liquidity is the result not just of cyclical factors, but also of structural ones. Globalization, securitization, derivatives and financial deepening have all contributed to this market liquidity. This, says IMF, is “strongly suggestive of an implied historical decrease in liquidity premiums, likely contributing to the overall decline in risk premium”. What this means is that higher market liquidity can reduce the risk associated with a given asset portfolio. As a result, a larger portion of investors’ wealth may be invested in “risky” assets, in spite of risk tolerance remaining at the same level. Put another way, the widening, maturing and deepening of capital markets has led to greater liquidity that has reduced the risk premium. This is particularly true of emerging markets and it has made them more attractive investments. The other reason for the huge inflows into the Indian market is best brought out by one statistic: India, China and Russia accounted for one-half of global growth in the past one year. Look at IMF’s forecasts of growth next year: the US is expected to grow 1.9% in 2008, the euro area 2.1%, Japan 1.7% and Britain 2.3%, while the forecast for China is 10% and India 8.4%. When you combine high growth and a reduced risk premium, the choice for investors couldn’t be clearer.
Mint’s resident market expert Manas Chakravarty looks at trends and issues related to investing in general and Indian bourses in particular. Your comments are welcome at capitalaccount@livemint.com.
Apetite for high-yield debt improves
By: Stacy-Marie Ishmael in New York
Published: October 11 2007 21:24
Last updated: October 11 2007 21:24
The US has seen $4bn of new junk-rated bond deals in the past week as investors show tentative signs of returning to the market, although they are still steering clear of issues linked to private equity-backed leveraged buy-outs.
“Debt-laden issuers or those deemed economically sensitive are expected to struggle as long as the trend in economic data remains negative,” said Peter Acciavatti, JPMorgan’s head of global high-yield strategy.
“The price will still have to be paid for placement of leveraged buy-out deals.”
The junk-rated debt markets have been essentially shut since an overwhelming pipeline of LBO-linked debt contributed to the credit crunch this summer, the arrival of which was marked by banks’ failures to sell loans linked by the buy-outs of Chrysler in the US and Alliance Boots in Europe.
However, investors’ appetite for high-yield debt has been improving – in the US at least – since the Federal Reserve slashed interest rates by 50 basis points.
AES, an independent power producer, on Tuesday increased fourfold its planned $500m private debt sale to $2bn after extremely strong investor demand. The notes sold at par value and have maintained their price in secondary trading.
David Barcus, head of high-yield at BNP Paribas, said that, while investors were shunning bonds linked to LBOs, they were more willing to buy loans.
“The appetite for loans [rather than bonds] reflects investors’ calculation of relative value,” he said.
“Investors are also looking at the leverage levels on these deals and paying close attention to recovery values.”
The backlog of LBO bonds includes a planned $9bn issue by First Data, which would be the largest junk bond offering on record, according to Thomson Financial data.
“No one knows whether [First Data’s banks] are even going to try to bring it to market,” said Justin Monteith, KDP analyst.
They will be watching closely how investors take to coming LBO-linked bond deals. Allison Transmission, the former GM unit, needs to sell $550m of senior debt to pay bridge loans from its buy-out by Carlyle.
Next week, Bausch & Lomb, the eyecare group, will test the market with a $750m issue, expected to include risky payment-in-kind notes.
Copyright The Financial Times Limited 2007
Published: October 11 2007 21:24
Last updated: October 11 2007 21:24
The US has seen $4bn of new junk-rated bond deals in the past week as investors show tentative signs of returning to the market, although they are still steering clear of issues linked to private equity-backed leveraged buy-outs.
“Debt-laden issuers or those deemed economically sensitive are expected to struggle as long as the trend in economic data remains negative,” said Peter Acciavatti, JPMorgan’s head of global high-yield strategy.
“The price will still have to be paid for placement of leveraged buy-out deals.”
The junk-rated debt markets have been essentially shut since an overwhelming pipeline of LBO-linked debt contributed to the credit crunch this summer, the arrival of which was marked by banks’ failures to sell loans linked by the buy-outs of Chrysler in the US and Alliance Boots in Europe.
However, investors’ appetite for high-yield debt has been improving – in the US at least – since the Federal Reserve slashed interest rates by 50 basis points.
AES, an independent power producer, on Tuesday increased fourfold its planned $500m private debt sale to $2bn after extremely strong investor demand. The notes sold at par value and have maintained their price in secondary trading.
David Barcus, head of high-yield at BNP Paribas, said that, while investors were shunning bonds linked to LBOs, they were more willing to buy loans.
“The appetite for loans [rather than bonds] reflects investors’ calculation of relative value,” he said.
“Investors are also looking at the leverage levels on these deals and paying close attention to recovery values.”
The backlog of LBO bonds includes a planned $9bn issue by First Data, which would be the largest junk bond offering on record, according to Thomson Financial data.
“No one knows whether [First Data’s banks] are even going to try to bring it to market,” said Justin Monteith, KDP analyst.
They will be watching closely how investors take to coming LBO-linked bond deals. Allison Transmission, the former GM unit, needs to sell $550m of senior debt to pay bridge loans from its buy-out by Carlyle.
Next week, Bausch & Lomb, the eyecare group, will test the market with a $750m issue, expected to include risky payment-in-kind notes.
Copyright The Financial Times Limited 2007
BSE MARKET CAP ZOOMS TO $1.4 TRILLION-
AT THE height of the dotcom mania in 1999-00, the easiest way to maximise returns was to buy into any stock with the suffix ‘Software’ or ‘Technologies’. Eight years on, the same seems to hold true for any stock with the prefix ‘Reliance’, given their baffling run-up over the past one month.
As the benchmark logged its highest single-day gains in absolute terms on Tuesday to race past the 18,000-mark, factors like politics, valuations and earnings appear to have become non-issues overnight.
The only thing that matters for now is liquidity and there is nothing to suggest the tide could reverse. In less than three weeks since the US Federal Reserve cut rates, FIIs have pumped in a net of $5.4 billion into Indian equities. According to provisional data, foreign funds bought over Rs 1,400 crore worth of shares on Tuesday. The euphoria was not restricted to India. Benchmarks in China, Australia, Hong Kong, South Korea, Singapore, Indonesia and Pakistan hit new peaks. The Morgan Stanley Capital International Asia-Pacific index rose 0.5% to 166.69, and appeared set to close at a new high.
Eye-popping rallies in Reliance Industries, Reliance Energy and Reliance Communications lifted the 30-share Sensex to a record high of 18,327.42 intra-day. The index finally settled at 18,280.24, a gain of 788.85 points or 4.5% over the previous close. All three stocks hit new highs and have been the top gainers in the major indices over the past one month. RIL and Reliance Communications have gained around 30% each, while Reliance Energy has risen an astounding 80%. The three stocks have together contributed 42% to the latest 1,000-point rally in the Sensex. Bharti Airtel was the only other stock in the Sensex to touch a new high. In all, 60 stocks on the BSE hit fresh peaks.
The 50-share Nifty hit a peak of 5,348.70, before finishing the day at 5,327.25, up 242.15 points or 4.6% over the previous close. Market capitalisation of the BSE rose 4% to Rs 54.52 lakh crore, while those of the Mukesh Ambani group and Anil Ambani group stood at Rs 4.37 lakh crore and Rs 2.38 lakh crore respectively. “The pace of the rally has clearly taken everybody by surprise, and it is tough to take a call as the rise has been led by a handful of stocks,” says A Balasubramanian, CIO of Birla Sunlife Mutual Fund.
MONEY BAGS
The market boom has made the Ambani brothers arguably the richest in the world with the clubbed fortune totalling $170b
Midcaps fail to keep pace with Sensex
“THEREis too much money pouring in, and investors are chasing stocks which are showing high growth momentum right now. One can debate about valuations; nothing has really changed over the past one month,” he says, adding there were likely to be very few earnings surprises for the latest quarters.
Second line shares were overlooked in favour of their frontline counterparts, with the BSE Midcap and BSE Smallcap indices rising 2.6% and 2% respectively. Investors in mid cap and small cap shares have not really benefited from the recent rally, point out market watchers.
This could also be explained by the fact that the BSE Midcap and BSE Smallcap have risen 7% and 6% respectively over the last one month, compared with a 14% rise in the Sensex.
Master Key For Effective Job Interviews
Just like there is a master key for all locks, how about having a similar key to win any kind of interview - Imagine. I'm not going to tell average things like how to sit and how dress, but a genuinely winning thing that every one requires desperately. Here you will come to know the thinking, intention and the body language of the person who interviews you. Read thoroughly to know hidden facts.
I like to tell you the most predictable questions in the interview and then you will have chance to laugh on your eccentric imagination about interview, and you will also come to know that interview is little-more like KBC, where biggest thing matters is the presence of mind and expressions with difference.
I said presence of mind because it is your "INTER - VIEW", they check the kind n quality of responses form your inner world (Skills, abilities, smartness, etc.) that helps to do outer stuff smartly and smoothly. When they get what they want from your inside then you get 100% decided for the post. Mind guides the body; body does not guide your mind. Mind your answers as well as mind your body. They do not consider how you neatly placed your degree in a very expensive and good looking file or a folder. They are primarily interested in to unfolding your inner world in maximum possible intensity.
Question: How to know whether I'm on the winning road of the interview or how can I know whether they are desperately thinking to consider me for the post?
Answer: very simple, check your interview time, if your interview is going beyond the average time as you answering everything positively, its the same time and a sign that they are interested in you and you are on winning road.
Many students get scared when they are encountered for longer period and lost the battle by 1%. In the contrary it is same time to get relax and answer more. More questions= maximum chances.
Its a very simple logic, if you know there is a diamond where you are digging, then you have purpose to dig and you will dig it to get the diamond. Similarly, when they are digging you then understand that they are very closer to get the diamond, and this diamond is you. That's why calculate the situation by keeping the presence of mind.
Interviewing for a job can be one of the most uncomfortable events in your life. It is equally uncomfortable for many managers who must interview candidates for a position. Preparation can make the task easier.
Remember, basic thing of any interview is preparation - if you fail to prepare then you prepare to fail. Try to find out smartest answers to the following questions and then discuss with your friends or group of friends and filter the most catching and influencing answers. By doing so, you do 2 things, One- you will find impact answer with limited words. Second - you develop group discussions skills.
Here are some questions that are the most frequently asked,
- Describe your ideal job and/or boss.
- Why are you looking for a job? Why are leaving your current position?
- What unique experience or qualifications separate you from other candidates?
- Tell me about yourself.
- What are your strengths and weaknesses?
- Describe some of your most important career accomplishments.
- What are your short-term/long-term goals?
- Describe a time when you were faced with a challenging situation
and how you handled it. - What are your salary requirements?
- Why are you interested in this position? Our company?
- What would your former boss/colleagues say about you?
- What are the best and worst aspects of your previous job?
- What do you know about our company?
- What motivates you? How do you motivate others?
- Are you willing to relocate?
Winning Note 1: -
Remember to write a brief 'Thank You' note or a brief "SAYING" note to the person or people who interviewed you. You may be the only candidate who performed this small courtesy!
Winning Note 2: -
Use a single line "Catch-line" that describes you in an excellent way when asked about yourself.
Winning Note 3: -
While telling about salary expectation, avoid speaking like "greater than or less than $$$$(any amount)" or I expect $$$$(exact amount), such kind of answer will not please them instead say, "Anything in the range of 12000 to
14000 will be accepted."
Winning Note 4: -
Do personality assessment. You will get best personality assessment report at www.braindynamic.com . This web site will help you to know your Strength & Weaknesses & see yourself in totally new light. It can reveal various problems along with reasons. we can help you in understanding & removing the mental blocks to achieve greater personal & professional success. Personality assessment helps illuminate factors and negative attitudes and allows a person to understand the driving forces behind their decisions, gain an understanding of how people see the world differently and value different things in life, and to understand how values effect their choices and, provides purpose and direction in their lives.
Well, let’s go to the more questions, as follows:
- What stage you going to be next five years?
- If I ask to your friend about u how he describe you?
- How interesting to you this position?
- What has been your greatest achievement to date?
- What contribution could you make?
- How would you see the job developing in the next two years?
- Why do you want to work for us?
- What aspect of our advert attracted you to this job?
- What makes you think you can fit in with the culture of this organization?
- When could you start work here?
- Do you have any holiday commitments?
- Describe yourself in one word?
- What three major qualities do you possess?
- Tell me about yourself?
- What kind of person are you really?
- If you were to write your own obituary what would you write?
- What is your career path for the feature?
- What motivates you to be successful?
- What is your greatest weakness?
- How do you deal with difficult people?
- How do you handle pressure and stress?
- What is your ideal job?
- With what kind of people do you like to work?
- In what kind of work environment do you like to work?
- What salary are you seeking?
As I told you before, these are the key question to win the interview. Practice it; explore new smart answers in limited words. When you prepare using this question then you have a key to unlock the door of your expectations. The reason I did not provided any answers because, when everything is ready then it's a cause to be lazy. Work with your mind and with your friends. You will find smartest answers in the world.
GO AHEAD
-----------------------------------------------------------
Edited content of Master Key For Effective Interviews a E-book by - Nilesh Gore www.braindynamic.com
Qualities of a successful international manager
One of the best known facts in business is that the foundations of a successful company lie with its staff. Without them, the best product in the world, supported by the most comprehensive company strategy, is still likely to struggle.
The success or failure in business rests largely in the hands of the staff. As such, the person appointed to head up operations will carry rather a lot of weight on their shoulders and it is important that they are up for the challenge!
While the prospect of an overseas posting may appeal to many staff, the wrong person in the wrong position could prove disastrous to company’s strategy.
Not only is the international manager responsible for business growth, they also act as the figurehead for the organization – ambassador to the concern country. In this role, the ability to speak local language fluently is a significant advantage and an even greater strength is the ability to read and write also. To be successful, ‘ambassador’ should be mature in both age and attitude, well presented and able to adopt a very diplomatic approach to business relationships. Entertaining is a still a significant part of business dealings and a good international manager will be able to combine diplomacy with an enthusiasm for socializing.
Not a job for the faint hearted, they should be both a company expert, and industry leader. They will need to rely heavily on their industry knowledge to navigate the local maze. The challenges that exist in international business should not be underestimated and the manager appointed to head up operations should well find himself functioning in quite a different way from the one ‘back home’. It is important that differences are understood by everyone in the company, as even apparently simple issues can lead to undue pressure if an agreed solution is not outlined early on.
They must have a willingness to learn, as there will always be something new and surprising on the horizon in foreign countries. Not only do they need to understand a new economic and political environment, additional challenges will come from understanding the language, culture and social environment. The importance of an open mind cannot be overstated.
Staff who have had the experience of heading up another international operation are generally better placed to lead a company than someone without international experience. With fast changing economic and political environment, International business development is extremely challenging for executives posted overseas.
It is also important to consider the strategic stage of the company when selecting key staff. The skills required when establishing a new operation are quite different from those needed to consolidate an established business, which are different again when the company is expanding into new environments in a familiar market. Similarly, different organizational structures place different demands on managers. The person required to head up a joint venture will draw on a different set of skills than the person operating a wholly-owned-foreign-enterprise.
Above all else, companies should consider the appointments as carefully as they would consider every other aspect of company strategy, ensuring each unique part of company’s operation works in harmony with the others.
Resource:
An article Prasong Uthaisangchai
Senior Executive Vice President and Director of International Banking Group, Bangkok Bank
The success or failure in business rests largely in the hands of the staff. As such, the person appointed to head up operations will carry rather a lot of weight on their shoulders and it is important that they are up for the challenge!
While the prospect of an overseas posting may appeal to many staff, the wrong person in the wrong position could prove disastrous to company’s strategy.
Not only is the international manager responsible for business growth, they also act as the figurehead for the organization – ambassador to the concern country. In this role, the ability to speak local language fluently is a significant advantage and an even greater strength is the ability to read and write also. To be successful, ‘ambassador’ should be mature in both age and attitude, well presented and able to adopt a very diplomatic approach to business relationships. Entertaining is a still a significant part of business dealings and a good international manager will be able to combine diplomacy with an enthusiasm for socializing.
Not a job for the faint hearted, they should be both a company expert, and industry leader. They will need to rely heavily on their industry knowledge to navigate the local maze. The challenges that exist in international business should not be underestimated and the manager appointed to head up operations should well find himself functioning in quite a different way from the one ‘back home’. It is important that differences are understood by everyone in the company, as even apparently simple issues can lead to undue pressure if an agreed solution is not outlined early on.
They must have a willingness to learn, as there will always be something new and surprising on the horizon in foreign countries. Not only do they need to understand a new economic and political environment, additional challenges will come from understanding the language, culture and social environment. The importance of an open mind cannot be overstated.
Staff who have had the experience of heading up another international operation are generally better placed to lead a company than someone without international experience. With fast changing economic and political environment, International business development is extremely challenging for executives posted overseas.
It is also important to consider the strategic stage of the company when selecting key staff. The skills required when establishing a new operation are quite different from those needed to consolidate an established business, which are different again when the company is expanding into new environments in a familiar market. Similarly, different organizational structures place different demands on managers. The person required to head up a joint venture will draw on a different set of skills than the person operating a wholly-owned-foreign-enterprise.
Above all else, companies should consider the appointments as carefully as they would consider every other aspect of company strategy, ensuring each unique part of company’s operation works in harmony with the others.
Resource:
An article Prasong Uthaisangchai
Senior Executive Vice President and Director of International Banking Group, Bangkok Bank
