Once upon a time a big monk and a little monk were travelling together. They came to the bank of a river and found the bridge was damaged. They had to wade across the river. There was a pretty lady who was stuck at the damaged bridge and couldn't cross the river. The big monk offered to carry the pretty lady across the river on his back. The lady accepted. The little monk was shocked by the move of the big monk. "How can big disciple brother carry a lady when we are supposed to avoid all intimacy with females," thought the little monk. But he kept quiet.
The big monk carried the lady across the river and the small monk followed unhappily. When they crossed the river, the big monk let the lady down and they parted ways with her. All along the way for several miles, the little monk was very unhappy with the act of the big monk. He was making up all kinds of accusations about the big monk in his head. This got him madder and madder.
But he still kept quiet. And the big monk had no inclination to explain his situation.
Finally, at rest-point many hours later, the little monk could not stand it any further, he burst out angrily at the big monk. "How can you claim yourself a devout monk, when you seize the first opportunity to touch a female, especially when she is very pretty. All your teachings to me make you a big hypocrite." The big monk looked surprised and said, "I had put down the pretty lady at the river bank many hours ago, how come you are still carrying her along?"
[This very old Chinese zen story reflects the thinking of many people today. We encounter many unpleasant things in our life, they irritate us and they make us angry. Sometimes, they cause us a lot of hurt, sometimes they cause us to be bitter or jealous. But like the little monk, we are not willing to let them go away. We keep on carrying the baggage of the "pretty lady" with us. We let them keep on coming back to hurt us, make us angry, make us bitter and cause us a lot of agony. Why? Simply because we are not willing to put down or let go of the baggage of the "pretty lady". We should let go of the pretty lady immediately after crossing the river, immediately after the unpleasant event is over. This will immediately remove all our agonies. There is no need to be further hurt by the unpleasant event after it is over. It is just that simple.
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Chinese Fables-The Turtles
A turtle family decided to go on a picnic. Turtles, being naturally slow about things, took seven years to prepare for their outing. Finally the turtle family left home looking for a suitable place for their outing. During the second year of their journey they found a place ideal for them at last! For about six months they cleaned up the area, unpacked the picnic basket, and completed the arrangements. Then they discovered they had forgotten the salt. A picnic without salt would be a disaster, they all agreed. After a lengthy discussion, the youngest turtle was chosen to retrieve the salt from home. Although he was the fastest of the slow moving turtles, the little turtle whined, cried, and wobbled in his shell. He agreed to go on one condition: that no one would eat until he returned.
The family consented and the little turtle left. Three years passed and the little turtle had not returned. Five years ... six years... then on the seventh year of his absence, the oldest turtle could no longer contain his hunger. He announced that he was going to eat and begun to unwrap a sandwich. At that point the little turtle suddenly popped out from behind a tree shouting, "SEE! I knew you wouldn't wait. Now I am not going to go get the salt."
[Some of us waste our time waiting for people to live up to our expectations. We are so concerned about what others are doing that we don't do anything ourselves.]
The family consented and the little turtle left. Three years passed and the little turtle had not returned. Five years ... six years... then on the seventh year of his absence, the oldest turtle could no longer contain his hunger. He announced that he was going to eat and begun to unwrap a sandwich. At that point the little turtle suddenly popped out from behind a tree shouting, "SEE! I knew you wouldn't wait. Now I am not going to go get the salt."
[Some of us waste our time waiting for people to live up to our expectations. We are so concerned about what others are doing that we don't do anything ourselves.]
Chinese Fables- The Frogs
A farmer came into town and asked the owner of a restaurant if he could use a million frog legs. The restaurant owner was shocked and asked the man where he could get so many frog legs! The farmer replied, "There is a pond near my house that is full of frogs---millions of them. They all croak all night long and they are about to make me crazy!" So the restaurant owner and the farmer made an agreement that the farmer would deliver frogs to the restaurant, five hundred at a time for the next several weeks. The first week, the farmer returned to the restaurant looking rather sheepish, with two scrawny little frogs. The restaurant owner said, "Well ... where are all the frogs?" The farmer said, "I was mistaken. There were only these two frogs in the pond. But they sure were making a lot of noise!"
[Next time you hear somebody criticizing or making fun of you, remember, it's probably just a couple of noisy frogs. Also remember that problems always seem bigger in the dark. Have you ever laid in your bed at night worrying about things which seem almost overwhelming like a million frogs croaking? Chances are pretty good that when the morning comes, and you take a closer look, you'll wonder what all the fuss was about.
[Next time you hear somebody criticizing or making fun of you, remember, it's probably just a couple of noisy frogs. Also remember that problems always seem bigger in the dark. Have you ever laid in your bed at night worrying about things which seem almost overwhelming like a million frogs croaking? Chances are pretty good that when the morning comes, and you take a closer look, you'll wonder what all the fuss was about.
Business Lesson: Know Your Enemy
There's one simple approach that isn't perfect but will tend to keep you from making mistakes. Simply stated, it is Know Your Competitors.
Now, that might sound very simplistic. Of course you have to want to know your competitor. What big company doesn't? Well, this might come as a shock but many of those troubled brands of which I've written, either didn't recognize or badly underestimated their most important enemy in the marketplace.
Consider the following:
I could go on, but you probably get the idea. While each case has its extenuating circumstances, the one thing that could have kept these companies out of trouble would have been a clearer perspective on the enemy. Because with this, you know what to do before you get into trouble. Here are a few more competitive guidelines to follow.
Source: Unknown
Now, that might sound very simplistic. Of course you have to want to know your competitor. What big company doesn't? Well, this might come as a shock but many of those troubled brands of which I've written, either didn't recognize or badly underestimated their most important enemy in the marketplace.
Consider the following:
- General Motors never saw the German or the Japanese small cars as threats. Instead they ended up competing with their own brands. By the time they got around to the Saturn, it was too late.
- Xerox thought IBM was their enemy, when it was Hewlett-Packard and the laser printer that did them in. Digital Equipment never saw the desktop computer as having the potential to undermine their mini-computer franchise. Once IBM's PC was established, DEC's days were numbered.
- AT&T never saw MCI and Sprint as the legitimate competitors they became. They never exploited the technological differences.
- Levi's never saw cheaper, me-too jeans as something that could overwhelm them in a category they invented.
I could go on, but you probably get the idea. While each case has its extenuating circumstances, the one thing that could have kept these companies out of trouble would have been a clearer perspective on the enemy. Because with this, you know what to do before you get into trouble. Here are a few more competitive guidelines to follow.
- Avoid a competitor's strength. Exploit their weakness.
When a competitor is known for one thing, you have to be known for something else. Quite often, that something else is a built-in weakness that can be exploited. If McDonald's strength is that of being a little kids' place, Burger King can exploit that by being a grown-up kids place.
IBM is known for large proprietary computer systems. Hewlett-Packard can exploit that by offering open, distributed computer systems. But remember, we're talking strength and weakness in the minds of the marketplace. Marketing is a battle of perceptions. What you're really doing is exploiting perceptions. - Always be a little bit paranoid about competition.
Remember, we're living in a world where everyone is after everyone's business. You have to realize that one of your competitors is probably in a meeting figuring out how to nail you in some way or another. You must constantly be gathering information on what your competitors are planning.
This can come from an astute sales force or a friendly customer or from some research. Never underestimate your competitor. In fact, you're safer if you overestimate them. AT&T, DEC and Levi's are testimony to underestimating the kind of damage competitors can do even to market leaders. - Competitors will usually get better, if pushed.
Companies that figure they can exploit a sloppy competitor make big mistakes. They ridicule their product or service and say they can do things better. Then, lo and behold, their big competitor suddenly improves and that so-called advantage melts away.
No 2 Avis did indeed try harder but Hertz quickly improved their efforts. Then one day they ran a devastating ad with the headline, "For years, Avis has been telling you they are No 2. Now we're going to tell you why." Then they went on to lay out all their improvements. Avis never quite recovered. Never build your program around your competitor's mistakes. They will be corrected in short order. - Squash your smaller competitors as quickly as possible.
In war, the generals have an important maxim about being attacked. Here's how they put it: The best place to deal with an invading force is to get them in the water where they have the least manoeuvrability. Next, attack them on the beaches where they have limited manoeuvrability. But most of all don't let them get inland where they can develop momentum.
So it is in business, you must move against your smaller competitors as soon as possible, so as to not let them develop legitimacy and momentum. General Motors hung back when the Germans and Japanese invaded the US market with small cars. They felt they couldn't make any money on this type of car, so they quickly rationalized their position by convincing themselves that Americans wanted big comfortable cars. Wrong.
Gillette on the other hand countered BIC's disposable razors with the twin-bladed disposable called Good News. I suspect they don't make much money on these razors (They love to get us by the blades) but today they dominate this category as well as the traditional and more profitable category of cartridge razors. - If you've got a bigger competitor, avoid being squashed.
Here's the other side of the coin. How do you avoid a big competitor that has just taken my advice? In two words, be careful.
The best strategy is to sneak up on a bigger competitor early on and never appear to be threatening. Slowly build your business and momentum in places where you're less visible. After you've got some size and momentum, you can step up and better deal with the bigger players.
Wal-Mart really got their start in the small C and D counties of America where their main competitors were only mom-and-pop retailers. Only after they built size and momentum did they move into the larger A and B counties, where they confronted the other big-mass merchandisers.
Southwest Airlines pursued a similar strategy of slowly building their route structure in non-hub airports and limited routes. They started in Texas, moved to the West Coast, then spread up into the Mid-West and now are working their way around the East. By the time the big airlines took them on, Southwest had real momentum.
And Herb Kelleher maintained some real differences from his bigger competitors that kept his costs down: no food, no reservations, no hubs and just one kind of place. - If you're losing the battle, shift the battlefield.
A company that takes a licking will not keep ticking. (Only a Timex watch does that.) Even companies with deep pockets will suffer in this very competitive world. A better approach is to shift your efforts to a place where you can better take advantage of your strengths.
By manufacturing in the US, Levi's couldn't compete on price with the me-too jeans manufacturers. By shifting to an authentic or original strategy, they were playing to their strength while making the case of paying a little more for the jeans. And it also gave them some time to shift manufacturing offshore.
You want to move the marketplace to a point where you can use your point of difference against your competitor instead of being hammered by your competitor's point of difference. - If a bigger competitor is about to attack, you should attack first.
Finally, you must face reality about size and force. As in war, the bigger armies generally tend to overwhelm smaller armies. More people shooting at fewer people almost always results in a victory for the side with more people.
So if you're faced with a major attack, you must find a way to attack first if for no other reason than to keep your competitor distracted and off balance. If you don't, you will be over-run quickly and decisively.
That was exactly what faced DEC as IBM was readying its small computer attack with the PC. An early launch of a more powerful, mini-computer based desktop machine would have dramatically slowed down IBM's penetration into the business market. It would have raised questions about whether the IBM PC was powerful and serious enough.
Instead, by not attacking, it gave IBM time to improve the power and performance of these machines by introducing new generations (the XT and the AT). In short order, DEC's decline was set in place.
Source: Unknown
CreditCard & SavingA/c with the same bank? BEWARE!
The advertisement for a bank uses the following punchline:Hum Hai Na (we are there for you). This bank also offers a credit card. And apparently, it's pretty easy to get one.
Shiju Joseph, 31, an engineer with a private firm in Delhi, was enticed and ended up with XYZ Bank's preferred credit card in April 2007.
He signed the credit card application form without bothering to read the terms and conditions.
Big mistake.
What happened next:
Shiju defaulted on his payment from October 2007 to March 2008. He made a part payment but due to some miscommunication, the amount was not recorded in his bill. In April 2008, the bank debited the outstanding amount from Shiju's savings account without informing him!
Shiju was left wondering how the bank could do this as his savings account was in no way connected to his credit card. So, he e-mailed the bank asking who gave them the authority to deduct the money. I reproduce below, in verbatim, the bank's reply:
In addition to the general right to set off or other right conferred by law or under any other agreement, XYZ Bank may, without notice, combine or consolidate the standing balance on the Card Account with any other account(s) which the Card-Member maintains with XYZ Bank and its Group Companies, and set-off or transfer money standing to the credit of such other account(s) in or towards the satisfaction of the card-member's liability to XYZ Bank under his/her Card Account. Hence the amount has been marked as lien in your savings account.
I expected the T&C to be mentioned in the credit card application form. So, I hopped across to a branch and got a copy of the form. I read it but to my surprise there was no such clause.
I was about to give up and look for another explanation, when the very first point (of 54 points in the T&C) caught my eye: To get the complete version of the credit card terms and conditions, please visit the web site.
The title of the page that I was reading was 'the most important Terms & Conditions' and not 'complete terms and conditions'. To get the complete T&C, I had to visit the bank web site. And to get to this page, I had to apply for a preferred credit card online!
I filled up personal details such as my educational qualifications, residential status, etc. Once I finished filling up the forms, I found a link to the T&C at the bottom of the page.
T&C went into 23 pages!
After spending much time mulling over some vague clauses, I came across the relevant clause on Page 17. So, when Shiju signed the credit card application form, he had agreed to all these 23 pages of T&C!
I spoke to lawyer Sunil Ramani to find out if Shiju has a legal recourse. Ramani explained that Shiju could try and file a complaint with the Consumer Guidance Society of India (CGSI). 'But I am not sure if there is much they can do,' he added. MV Kamath of the CGSI also confirmed the same.
You may argue that banks can't fool you by inserting such clauses in long and winding documents, but they are on the right side of the law. Your only recourse is to be cautious.
The basics before getting a card:
1. Don't ignore the fine print. Even if it's a tedious job but it can save you a lot of trouble, not to mention, money.
2. Whatever the reason, don't default on credit card dues because credit cards are nothing but unsecured loans and banks use every method to recover their money, while being legally correct at the same time.
So, do not be enticed by catchy punchlines!
Disclaimer: While efforts have been made to ensure the accuracy of the information provided in the content, the web site or the author shall not be held responsible for any loss caused to any person whatsoever who accesses or uses or is supplied with the content (consisting of articles and information).
http://www.ibnlive.com/news/wealth-23-pages-of-credit-card-fineprint-cost-me-a-lot/74596-7.html
Shiju Joseph, 31, an engineer with a private firm in Delhi, was enticed and ended up with XYZ Bank's preferred credit card in April 2007.
He signed the credit card application form without bothering to read the terms and conditions.
Big mistake.
What happened next:
Shiju defaulted on his payment from October 2007 to March 2008. He made a part payment but due to some miscommunication, the amount was not recorded in his bill. In April 2008, the bank debited the outstanding amount from Shiju's savings account without informing him!
Shiju was left wondering how the bank could do this as his savings account was in no way connected to his credit card. So, he e-mailed the bank asking who gave them the authority to deduct the money. I reproduce below, in verbatim, the bank's reply:
In addition to the general right to set off or other right conferred by law or under any other agreement, XYZ Bank may, without notice, combine or consolidate the standing balance on the Card Account with any other account(s) which the Card-Member maintains with XYZ Bank and its Group Companies, and set-off or transfer money standing to the credit of such other account(s) in or towards the satisfaction of the card-member's liability to XYZ Bank under his/her Card Account. Hence the amount has been marked as lien in your savings account.
I expected the T&C to be mentioned in the credit card application form. So, I hopped across to a branch and got a copy of the form. I read it but to my surprise there was no such clause.
I was about to give up and look for another explanation, when the very first point (of 54 points in the T&C) caught my eye: To get the complete version of the credit card terms and conditions, please visit the web site.
The title of the page that I was reading was 'the most important Terms & Conditions' and not 'complete terms and conditions'. To get the complete T&C, I had to visit the bank web site. And to get to this page, I had to apply for a preferred credit card online!
I filled up personal details such as my educational qualifications, residential status, etc. Once I finished filling up the forms, I found a link to the T&C at the bottom of the page.
T&C went into 23 pages!
After spending much time mulling over some vague clauses, I came across the relevant clause on Page 17. So, when Shiju signed the credit card application form, he had agreed to all these 23 pages of T&C!
I spoke to lawyer Sunil Ramani to find out if Shiju has a legal recourse. Ramani explained that Shiju could try and file a complaint with the Consumer Guidance Society of India (CGSI). 'But I am not sure if there is much they can do,' he added. MV Kamath of the CGSI also confirmed the same.
You may argue that banks can't fool you by inserting such clauses in long and winding documents, but they are on the right side of the law. Your only recourse is to be cautious.
The basics before getting a card:
1. Don't ignore the fine print. Even if it's a tedious job but it can save you a lot of trouble, not to mention, money.
2. Whatever the reason, don't default on credit card dues because credit cards are nothing but unsecured loans and banks use every method to recover their money, while being legally correct at the same time.
So, do not be enticed by catchy punchlines!
Disclaimer: While efforts have been made to ensure the accuracy of the information provided in the content, the web site or the author shall not be held responsible for any loss caused to any person whatsoever who accesses or uses or is supplied with the content (consisting of articles and information).
http://www.ibnlive.com/news/wealth-23-pages-of-credit-card-fineprint-cost-me-a-lot/74596-7.html
The New World Economies-India and China
It may not top the must-see list of many tourists. But to appreciate Shanghai's ambitious view of its future, there is no better place than the Urban Planning Exhibition Hall, a glass-and-metal structure across from People's Square. The highlight is a scale model bigger than a basketball court of the entire metropolis -- every skyscraper, house, lane, factory, dock, and patch of green space -- in the year 2020.
There are white plastic showpiece towers designed by architects such as I.M. Pei and Sir Norman Foster. There are immense new industrial parks for autos and petrochemicals, along with new subway lines, airport runways, ribbons of expressway, and an elaborate riverfront development, site of the 2010 World Expo. Nine futuristic planned communities for 800,000 residents each, with generous parks, retail districts, man-made lakes, and nearby college campuses, rise in the suburbs. The message is clear. Shanghai already is looking well past its industrial age to its expected emergence as a global mecca of knowledge workers. "In an information economy, it is very important to have urban space with a better natural and social environment," explains Architectural Society of Shanghai President Zheng Shiling, a key city adviser.
It is easy to dismiss such dreams as bubble-economy hubris -- until you take into account the audacious goals Shanghai already has achieved. Since 1990, when the city still seemed caught in a socialist time warp, Shanghai has erected enough high-rises to fill Manhattan. The once-rundown Pudong district boasts a space-age skyline, some of the world's biggest industrial zones, dozens of research centers, and a bullet train. This is the story of China, where an extraordinary ability to mobilize workers and capital has tripled per capita income in a generation, and has eased 300 million out of poverty. Leaders now are frenetically laying the groundwork for decades of new growth.
INVALUABLE ROLE
Now hop a plane to India. It is hard to tell this is the world's other emerging superpower. Jolting sights of extreme poverty abound even in the business capitals. A lack of subways and a dearth of expressways result in nightmarish traffic.
But visit the office towers and research and development centers sprouting everywhere, and you see the miracle. Here, Indians are playing invaluable roles in the global innovation chain. Motorola, (MOT ) Hewlett-Packard (HPQ ), Cisco Systems (CSCO ), and other tech giants now rely on their Indian teams to devise software platforms and dazzling multimedia features for next-generation devices. Google (GOOG ) principal scientist Krishna Bharat is setting up a Bangalore lab complete with colorful furniture, exercise balls, and a Yamaha organ -- like Google's Mountain View (Calif.) headquarters -- to work on core search-engine technology. Indian engineering houses use 3-D computer simulations to tweak designs of everything from car engines and forklifts to aircraft wings for such clients as General Motors Corp. (GM ) and Boeing Co (BA ). Financial and market-research experts at outfits like B2K, OfficeTiger, and Iris crunch the latest disclosures of blue-chip companies for Wall Street. By 2010 such outsourcing work is expected to quadruple, to $56 billion a year.
Even more exhilarating is the pace of innovation, as tech hubs like Bangalore spawn companies producing their own chip designs, software, and pharmaceuticals. "I find Bangalore to be one of the most exciting places in the world," says Dan Scheinman, Cisco Systems Inc.'s senior vice-president for corporate development. "It is Silicon Valley in 1999." Beyond Bangalore, Indian companies are showing a flair for producing high-quality goods and services at ridiculously low prices, from $50 air flights and crystal-clear 2 cents-a-minute cell-phone service to $2,200 cars and cardiac operations by top surgeons at a fraction of U.S. costs. Some analysts see the beginnings of hypercompetitive multinationals. "Once they learn to sell at Indian prices with world quality, they can compete anywhere," predicts University of Michigan management guru C.K. Prahalad. Adds A. T. Kearney high-tech consultant John Ciacchella: "I don't think U.S. companies realize India is building next-generation service companies."
SIMULTANEOUS TAKEOFFS
China and India. Rarely has the economic ascent of two still relatively poor nations been watched with such a mixture of awe, opportunism, and trepidation. The postwar era witnessed economic miracles in Japan and South Korea. But neither was populous enough to power worldwide growth or change the game in a complete spectrum of industries. China and India, by contrast, possess the weight and dynamism to transform the 21st-century global economy. The closest parallel to their emergence is the saga of 19th-century America, a huge continental economy with a young, driven workforce that grabbed the lead in agriculture, apparel, and the high technologies of the era, such as steam engines, the telegraph, and electric lights.
But in a way, even America's rise falls short in comparison to what's happening now. Never has the world seen the simultaneous, sustained takeoffs of two nations that together account for one-third of the planet's population. For the past two decades, China has been growing at an astounding 9.5% a year, and India by 6%. Given their young populations, high savings, and the sheer amount of catching up they still have to do, most economists figure China and India possess the fundamentals to keep growing in the 7%-to-8% range for decades.
Barring cataclysm, within three decades India should have vaulted over Germany as the world's third-biggest economy. By mid-century, China should have overtaken the U.S. as No. 1. By then, China and India could account for half of global output. Indeed, the troika of China, India, and the U.S. -- the only industrialized nation with significant population growth -- by most projections will dwarf every other economy.
What makes the two giants especially powerful is that they complement each other's strengths. An accelerating trend is that technical and managerial skills in both China and India are becoming more important than cheap assembly labor. China will stay dominant in mass manufacturing, and is one of the few nations building multibillion-dollar electronics and heavy industrial plants. India is a rising power in software, design, services, and precision industry. This raises a provocative question: What if the two nations merge into one giant "Chindia?" Rival political and economic ambitions make that unlikely. But if their industries truly collaborate, "they would take over the world tech industry," predicts Forrester Research Inc (FORR ). analyst Navi Radjou.
In a practical sense, the yin and yang of these immense workforces already are converging. True, annual trade between the two economies is just $14 billion. But thanks to the Internet and plunging telecom costs, multinationals are having their goods built in China with software and circuitry designed in India. As interactive design technology makes it easier to perfect virtual 3-D prototypes of everything from telecom routers to turbine generators on PCs, the distance between India's low-cost laboratories and China's low-cost factories shrinks by the month. Managers in the vanguard of globalization's new wave say the impact will be nothing less than explosive. "In a few years you'll see most companies unleashing this massive productivity surge," predicts Infosys Technologies (INFY ) CEO Nandan M. Nilekani.
To globalization's skeptics, however, what's good for Corporate America translates into layoffs and lower pay for workers. Little wonder the West is suffering from future shock. Each new Chinese corporate takeover bid or revelation of a major Indian outsourcing deal elicits howls of protest by U.S. politicians. Washington think tanks are publishing thick white papers charting China's rapid progress in microelectronics, nanotech, and aerospace -- and painting dark scenarios about what it means for America's global leadership.
Such alarmism is understandable. But the U.S. and other established powers will have to learn to make room for China and India. For in almost every dimension -- as consumer markets, investors, producers, and users of energy and commodities -- they will be 21st-century heavyweights. The growing economic might will carry into geopolitics as well. China and India are more assertively pressing their interests in the Middle East and Africa, and China's military will likely challenge U.S. dominance in the Pacific.
One implication is that the balance of power in many technologies will likely move from West to East. An obvious reason is that China and India graduate a combined half a million engineers and scientists a year, vs. 60,000 in the U.S. In life sciences, projects the McKinsey Global Institute, the total number of young researchers in both nations will rise by 35%, to 1.6 million by 2008. The U.S. supply will drop by 11%, to 760,000. As most Western scientists will tell you, China and India already are making important contributions in medicine and materials that will help everyone. Because these nations can throw more brains at technical problems at a fraction of the cost, their contributions to innovation will grow.
CONSUMERS RISING
American business isn't just shifting research work because Indian and Chinese brains are young, cheap, and plentiful. In many cases, these engineers combine skills -- mastery of the latest software tools, a knack for complex mathematical algorithms, and fluency in new multimedia technologies -- that often surpass those of their American counterparts. As Cisco's Scheinman puts it: "We came to India for the costs, we stayed for the quality, and we're now investing for the innovation."
A rising consumer class also will drive innovation. This year, China's passenger car market is expected to reach 3 million, No. 3 in the world. China already has the world's biggest base of cell-phone subscribers -- 350 million -- and that is expected to near 600 million by 2009. In two years, China should overtake the U.S. in homes connected to broadband. Less noticed is that India's consumer market is on the same explosive trajectory as China five years ago. Since 2000, the number of cellular subscribers has rocketed from 5.6 million to 55 million.
What's more, Chinese and Indian consumers and companies now demand the latest technologies and features. Studies show the attitudes and aspirations of today's young Chinese and Indians resemble those of Americans a few decades ago. Surveys of thousands of young adults in both nations by marketing firm Grey Global Group found they are overwhelmingly optimistic about the future, believe success is in their hands, and view products as status symbols. In China, it's fashionable for the upwardly mobile to switch high-end cell phones every three months, says Josh Li, managing director of Grey's Beijing office, because an old model suggests "you are not getting ahead and updated." That means these nations will be huge proving grounds for next-generation multimedia gizmos, networking equipment, and wireless Web services, and will play a greater role in setting global standards. In consumer electronics, "we will see China in a few years going from being a follower to a leader in defining consumer-electronics trends," predicts Philips Semiconductors (PHG ) Executive Vice-President Leon Husson.
For all the huge advantages they now enjoy, India and China cannot assume their role as new superpowers is assured. Today, China and India account for a mere 6% of global gross domestic product -- half that of Japan. They must keep growing rapidly just to provide jobs for tens of millions entering the workforce annually, and to keep many millions more from crashing back into poverty. Both nations must confront ecological degradation that's as obvious as the smog shrouding Shanghai and Bombay, and face real risks of social strife, war, and financial crisis.
Increasingly, such problems will be the world's problems. Also, with wages rising fast, especially in many skilled areas, the cheap labor edge won't last forever. Both nations will go through many boom and harrowing bust cycles. And neither country is yet producing companies like Samsung, Nokia (NOK ), or Toyota (TM ) that put it all together, developing, making, and marketing world-beating products.
Both countries, however, have survived earlier crises and possess immense untapped potential. In China, serious development only now is reaching the 800 million people in rural areas, where per capita annual income is just $354. In areas outside major cities, wages are as little as 45 cents an hour. "This is why China can have another 20 years of high-speed growth," contends Beijing University economist Hai Wen.
Very impressive. But India's long-term potential may be even higher. Due to its one-child policy, China's working-age population will peak at 1 billion in 2015 and then shrink steadily. China then will have to provide for a graying population that has limited retirement benefits. India has nearly 500 million people under age 19 and higher fertility rates. By mid-century, India is expected to have 1.6 billion people -- and 220 million more workers than China. That could be a source for instability, but a great advantage for growth if the government can provide education and opportunity for India's masses. New Delhi just now is pushing to open its power, telecom, commercial real estate and retail sectors to foreigners. These industries could lure big capital inflows. "The pace of institutional changes and industries being liberalized is phenomenal," says Chief Economist William T. Wilson of consultancy Keystone Business Intelligence India. "I believe India has a better model than China, and over time will surpass it in growth."
For its part, China has yet to prove it can go beyond forced-march industrialization. China directs massive investment into public works and factories, a wildly successful formula for rapid growth and job creation. But considering its massive manufacturing output, China is surprisingly weak in innovation. A full 57% of exports are from foreign-invested factories, and China underachieves in software, even with 35 software colleges and plans to graduate 200,000 software engineers a year. It's not for lack of genius. Microsoft Corp.'s (MSFT ) 180-engineer R&D lab in Beijing, for example, is one of the world's most productive sources of innovation in computer graphics and language simulation.
While China's big state-run R&D institutes are close to the cutting edge at the theoretical level, they have yet to yield many commercial breakthroughs. "China has a lot of capability," says Microsoft Chief Technology Officer Craig Mundie. "But when you look under the covers, there is not a lot of collaboration with industry." The lack of intellectual property protection, and Beijing's heavy role in building up its own tech companies, make many other multinationals leery of doing serious R&D in China.
China also is hugely wasteful. Its 9.5% growth rate in 2004 is less impressive when you consider that $850 billion -- half of GDP -- was plowed into already-glutted sectors like crude steel, vehicles, and office buildings. Its factories burn fuel five times less efficiently than in the West, and more than 20% of bank loans are bad. Two-thirds of China's 1,300 listed companies don't earn back their true cost of capital, estimates Beijing National Accounting Institute President Chen Xiaoyue. "We build the roads and industrial parks, but we sacrifice a lot," Chen says.
India, by contrast, has had to develop with scarcity. It gets scant foreign investment, and has no room to waste fuel and materials like China. India also has Western legal institutions, a modern stock market, and private banks and corporations. As a result, it is far more capital-efficient. A BusinessWeek analysis of Standard & Poor's (MHP ) Compustat data on 346 top listed companies in both nations shows Indian corporations have achieved higher returns on equity and invested capital in the past five years in industries from autos to food products. The average Indian company posted a 16.7% return on capital in 2004, vs. 12.8% in China.
SMALL-BATCH EXPERTISE
The burning question is whether India can replicate China's mass manufacturing achievement. India's info-tech services industry, successful as it is, employs fewer than 1 million people. But 200 million Indians subsist on $1 a day or less. Export manufacturing is one of India's best hopes of generating millions of new jobs.
India has sophisticated manufacturing knowhow. Tata Steel is among the world's most-efficient producers. The country boasts several top precision auto parts companies, such as Bharat Forge Ltd. The world's biggest supplier of chassis parts to major auto makers, it employs 1,200 engineers at its heavily automated Pune plant. India's forte is small-batch production of high-value goods requiring lots of engineering, such as power generators for Cummins Inc. (CMI ) and core components for General Electric Co. (GE ) CAT scanners.
What holds India back are bureaucratic red tape, rigid labor laws, and its inability to build infrastructure fast enough. There are hopeful signs. Nokia Corp. is building a major campus to make cell phones in Madras, and South Korea's Pohang Iron & Steel Co. plans a $12 billion complex by 2016 in Orissa state. But it will take India many years to build the highways, power plants, and airports needed to rival China in mass manufacturing. With Beijing now pushing software and pledging intellectual property rights protection, some Indians fret design work will shift to China to be closer to factories. "The question is whether China can move from manufacturing to services faster than we can solve our infrastructure bottlenecks," says President Aravind Melligeri of Bangalore-based QuEST, whose 700 engineers design gas turbines, aircraft engines, and medical gear for GE and other clients.
However the race plays out, Corporate America has little choice but to be engaged -- heavily. Motorola illustrates the value of leveraging both nations to lower costs and speed up development. Most of its hardware is assembled and partly designed in China. Its R&D center in Bangalore devises about 40% of the software in its new phones. The Bangalore team developed the multimedia software and user interfaces in the hot Razr cell phone. Now, they are working on phones that display and send live video, stream movies from the Web, or route incoming calls to voicemail when you are shifting gears in a car. "This is a very, very critical, state-of-the-art resource for Motorola," says Motorola South Asia President Amit Sharma.
Companies like Motorola realize they must succeed in China and India at many levels simultaneously to stay competitive. That requires strategies for winning consumers, recruiting and managing R&D and professional talent, and skillfully sourcing from factories. "Over the next few years, you will see a dramatic gap opening between companies," predicts Jim Hemerling, who runs Boston Consulting Group's Shanghai practice. "It will be between those who get it and are fully mobilized in China and India, and those that are still pondering."
In the coming decades, China and India will disrupt workforces, industries, companies, and markets in ways that we can barely begin to imagine. The upheaval will test America's commitment to the global trade system, and shake its confidence. In the 19th century, Europe went through a similar trauma when it realized a new giant -- the U.S. -- had arrived. "It is up to America to manage its own expectation of China and India as either a threat or opportunity," says corporate strategist Kenichi Ohmae. "America should be as open-minded as Europe was 100 years ago." How these Asian giants integrate with the rest of the world will largely shape the 21st-century global economy.
Source :
Pagelink-http://www.businessweek.com/magazine/content/05_34/b3948401.htm
There are white plastic showpiece towers designed by architects such as I.M. Pei and Sir Norman Foster. There are immense new industrial parks for autos and petrochemicals, along with new subway lines, airport runways, ribbons of expressway, and an elaborate riverfront development, site of the 2010 World Expo. Nine futuristic planned communities for 800,000 residents each, with generous parks, retail districts, man-made lakes, and nearby college campuses, rise in the suburbs. The message is clear. Shanghai already is looking well past its industrial age to its expected emergence as a global mecca of knowledge workers. "In an information economy, it is very important to have urban space with a better natural and social environment," explains Architectural Society of Shanghai President Zheng Shiling, a key city adviser.
It is easy to dismiss such dreams as bubble-economy hubris -- until you take into account the audacious goals Shanghai already has achieved. Since 1990, when the city still seemed caught in a socialist time warp, Shanghai has erected enough high-rises to fill Manhattan. The once-rundown Pudong district boasts a space-age skyline, some of the world's biggest industrial zones, dozens of research centers, and a bullet train. This is the story of China, where an extraordinary ability to mobilize workers and capital has tripled per capita income in a generation, and has eased 300 million out of poverty. Leaders now are frenetically laying the groundwork for decades of new growth.
INVALUABLE ROLE
Now hop a plane to India. It is hard to tell this is the world's other emerging superpower. Jolting sights of extreme poverty abound even in the business capitals. A lack of subways and a dearth of expressways result in nightmarish traffic.
But visit the office towers and research and development centers sprouting everywhere, and you see the miracle. Here, Indians are playing invaluable roles in the global innovation chain. Motorola, (MOT ) Hewlett-Packard (HPQ ), Cisco Systems (CSCO ), and other tech giants now rely on their Indian teams to devise software platforms and dazzling multimedia features for next-generation devices. Google (GOOG ) principal scientist Krishna Bharat is setting up a Bangalore lab complete with colorful furniture, exercise balls, and a Yamaha organ -- like Google's Mountain View (Calif.) headquarters -- to work on core search-engine technology. Indian engineering houses use 3-D computer simulations to tweak designs of everything from car engines and forklifts to aircraft wings for such clients as General Motors Corp. (GM ) and Boeing Co (BA ). Financial and market-research experts at outfits like B2K, OfficeTiger, and Iris crunch the latest disclosures of blue-chip companies for Wall Street. By 2010 such outsourcing work is expected to quadruple, to $56 billion a year.
Even more exhilarating is the pace of innovation, as tech hubs like Bangalore spawn companies producing their own chip designs, software, and pharmaceuticals. "I find Bangalore to be one of the most exciting places in the world," says Dan Scheinman, Cisco Systems Inc.'s senior vice-president for corporate development. "It is Silicon Valley in 1999." Beyond Bangalore, Indian companies are showing a flair for producing high-quality goods and services at ridiculously low prices, from $50 air flights and crystal-clear 2 cents-a-minute cell-phone service to $2,200 cars and cardiac operations by top surgeons at a fraction of U.S. costs. Some analysts see the beginnings of hypercompetitive multinationals. "Once they learn to sell at Indian prices with world quality, they can compete anywhere," predicts University of Michigan management guru C.K. Prahalad. Adds A. T. Kearney high-tech consultant John Ciacchella: "I don't think U.S. companies realize India is building next-generation service companies."
SIMULTANEOUS TAKEOFFS
China and India. Rarely has the economic ascent of two still relatively poor nations been watched with such a mixture of awe, opportunism, and trepidation. The postwar era witnessed economic miracles in Japan and South Korea. But neither was populous enough to power worldwide growth or change the game in a complete spectrum of industries. China and India, by contrast, possess the weight and dynamism to transform the 21st-century global economy. The closest parallel to their emergence is the saga of 19th-century America, a huge continental economy with a young, driven workforce that grabbed the lead in agriculture, apparel, and the high technologies of the era, such as steam engines, the telegraph, and electric lights.
But in a way, even America's rise falls short in comparison to what's happening now. Never has the world seen the simultaneous, sustained takeoffs of two nations that together account for one-third of the planet's population. For the past two decades, China has been growing at an astounding 9.5% a year, and India by 6%. Given their young populations, high savings, and the sheer amount of catching up they still have to do, most economists figure China and India possess the fundamentals to keep growing in the 7%-to-8% range for decades.
Barring cataclysm, within three decades India should have vaulted over Germany as the world's third-biggest economy. By mid-century, China should have overtaken the U.S. as No. 1. By then, China and India could account for half of global output. Indeed, the troika of China, India, and the U.S. -- the only industrialized nation with significant population growth -- by most projections will dwarf every other economy.
What makes the two giants especially powerful is that they complement each other's strengths. An accelerating trend is that technical and managerial skills in both China and India are becoming more important than cheap assembly labor. China will stay dominant in mass manufacturing, and is one of the few nations building multibillion-dollar electronics and heavy industrial plants. India is a rising power in software, design, services, and precision industry. This raises a provocative question: What if the two nations merge into one giant "Chindia?" Rival political and economic ambitions make that unlikely. But if their industries truly collaborate, "they would take over the world tech industry," predicts Forrester Research Inc (FORR ). analyst Navi Radjou.
In a practical sense, the yin and yang of these immense workforces already are converging. True, annual trade between the two economies is just $14 billion. But thanks to the Internet and plunging telecom costs, multinationals are having their goods built in China with software and circuitry designed in India. As interactive design technology makes it easier to perfect virtual 3-D prototypes of everything from telecom routers to turbine generators on PCs, the distance between India's low-cost laboratories and China's low-cost factories shrinks by the month. Managers in the vanguard of globalization's new wave say the impact will be nothing less than explosive. "In a few years you'll see most companies unleashing this massive productivity surge," predicts Infosys Technologies (INFY ) CEO Nandan M. Nilekani.
To globalization's skeptics, however, what's good for Corporate America translates into layoffs and lower pay for workers. Little wonder the West is suffering from future shock. Each new Chinese corporate takeover bid or revelation of a major Indian outsourcing deal elicits howls of protest by U.S. politicians. Washington think tanks are publishing thick white papers charting China's rapid progress in microelectronics, nanotech, and aerospace -- and painting dark scenarios about what it means for America's global leadership.
Such alarmism is understandable. But the U.S. and other established powers will have to learn to make room for China and India. For in almost every dimension -- as consumer markets, investors, producers, and users of energy and commodities -- they will be 21st-century heavyweights. The growing economic might will carry into geopolitics as well. China and India are more assertively pressing their interests in the Middle East and Africa, and China's military will likely challenge U.S. dominance in the Pacific.
One implication is that the balance of power in many technologies will likely move from West to East. An obvious reason is that China and India graduate a combined half a million engineers and scientists a year, vs. 60,000 in the U.S. In life sciences, projects the McKinsey Global Institute, the total number of young researchers in both nations will rise by 35%, to 1.6 million by 2008. The U.S. supply will drop by 11%, to 760,000. As most Western scientists will tell you, China and India already are making important contributions in medicine and materials that will help everyone. Because these nations can throw more brains at technical problems at a fraction of the cost, their contributions to innovation will grow.
CONSUMERS RISING
American business isn't just shifting research work because Indian and Chinese brains are young, cheap, and plentiful. In many cases, these engineers combine skills -- mastery of the latest software tools, a knack for complex mathematical algorithms, and fluency in new multimedia technologies -- that often surpass those of their American counterparts. As Cisco's Scheinman puts it: "We came to India for the costs, we stayed for the quality, and we're now investing for the innovation."
A rising consumer class also will drive innovation. This year, China's passenger car market is expected to reach 3 million, No. 3 in the world. China already has the world's biggest base of cell-phone subscribers -- 350 million -- and that is expected to near 600 million by 2009. In two years, China should overtake the U.S. in homes connected to broadband. Less noticed is that India's consumer market is on the same explosive trajectory as China five years ago. Since 2000, the number of cellular subscribers has rocketed from 5.6 million to 55 million.
What's more, Chinese and Indian consumers and companies now demand the latest technologies and features. Studies show the attitudes and aspirations of today's young Chinese and Indians resemble those of Americans a few decades ago. Surveys of thousands of young adults in both nations by marketing firm Grey Global Group found they are overwhelmingly optimistic about the future, believe success is in their hands, and view products as status symbols. In China, it's fashionable for the upwardly mobile to switch high-end cell phones every three months, says Josh Li, managing director of Grey's Beijing office, because an old model suggests "you are not getting ahead and updated." That means these nations will be huge proving grounds for next-generation multimedia gizmos, networking equipment, and wireless Web services, and will play a greater role in setting global standards. In consumer electronics, "we will see China in a few years going from being a follower to a leader in defining consumer-electronics trends," predicts Philips Semiconductors (PHG ) Executive Vice-President Leon Husson.
For all the huge advantages they now enjoy, India and China cannot assume their role as new superpowers is assured. Today, China and India account for a mere 6% of global gross domestic product -- half that of Japan. They must keep growing rapidly just to provide jobs for tens of millions entering the workforce annually, and to keep many millions more from crashing back into poverty. Both nations must confront ecological degradation that's as obvious as the smog shrouding Shanghai and Bombay, and face real risks of social strife, war, and financial crisis.
Increasingly, such problems will be the world's problems. Also, with wages rising fast, especially in many skilled areas, the cheap labor edge won't last forever. Both nations will go through many boom and harrowing bust cycles. And neither country is yet producing companies like Samsung, Nokia (NOK ), or Toyota (TM ) that put it all together, developing, making, and marketing world-beating products.
Both countries, however, have survived earlier crises and possess immense untapped potential. In China, serious development only now is reaching the 800 million people in rural areas, where per capita annual income is just $354. In areas outside major cities, wages are as little as 45 cents an hour. "This is why China can have another 20 years of high-speed growth," contends Beijing University economist Hai Wen.
Very impressive. But India's long-term potential may be even higher. Due to its one-child policy, China's working-age population will peak at 1 billion in 2015 and then shrink steadily. China then will have to provide for a graying population that has limited retirement benefits. India has nearly 500 million people under age 19 and higher fertility rates. By mid-century, India is expected to have 1.6 billion people -- and 220 million more workers than China. That could be a source for instability, but a great advantage for growth if the government can provide education and opportunity for India's masses. New Delhi just now is pushing to open its power, telecom, commercial real estate and retail sectors to foreigners. These industries could lure big capital inflows. "The pace of institutional changes and industries being liberalized is phenomenal," says Chief Economist William T. Wilson of consultancy Keystone Business Intelligence India. "I believe India has a better model than China, and over time will surpass it in growth."
For its part, China has yet to prove it can go beyond forced-march industrialization. China directs massive investment into public works and factories, a wildly successful formula for rapid growth and job creation. But considering its massive manufacturing output, China is surprisingly weak in innovation. A full 57% of exports are from foreign-invested factories, and China underachieves in software, even with 35 software colleges and plans to graduate 200,000 software engineers a year. It's not for lack of genius. Microsoft Corp.'s (MSFT ) 180-engineer R&D lab in Beijing, for example, is one of the world's most productive sources of innovation in computer graphics and language simulation.
While China's big state-run R&D institutes are close to the cutting edge at the theoretical level, they have yet to yield many commercial breakthroughs. "China has a lot of capability," says Microsoft Chief Technology Officer Craig Mundie. "But when you look under the covers, there is not a lot of collaboration with industry." The lack of intellectual property protection, and Beijing's heavy role in building up its own tech companies, make many other multinationals leery of doing serious R&D in China.
China also is hugely wasteful. Its 9.5% growth rate in 2004 is less impressive when you consider that $850 billion -- half of GDP -- was plowed into already-glutted sectors like crude steel, vehicles, and office buildings. Its factories burn fuel five times less efficiently than in the West, and more than 20% of bank loans are bad. Two-thirds of China's 1,300 listed companies don't earn back their true cost of capital, estimates Beijing National Accounting Institute President Chen Xiaoyue. "We build the roads and industrial parks, but we sacrifice a lot," Chen says.
India, by contrast, has had to develop with scarcity. It gets scant foreign investment, and has no room to waste fuel and materials like China. India also has Western legal institutions, a modern stock market, and private banks and corporations. As a result, it is far more capital-efficient. A BusinessWeek analysis of Standard & Poor's (MHP ) Compustat data on 346 top listed companies in both nations shows Indian corporations have achieved higher returns on equity and invested capital in the past five years in industries from autos to food products. The average Indian company posted a 16.7% return on capital in 2004, vs. 12.8% in China.
SMALL-BATCH EXPERTISE
The burning question is whether India can replicate China's mass manufacturing achievement. India's info-tech services industry, successful as it is, employs fewer than 1 million people. But 200 million Indians subsist on $1 a day or less. Export manufacturing is one of India's best hopes of generating millions of new jobs.
India has sophisticated manufacturing knowhow. Tata Steel is among the world's most-efficient producers. The country boasts several top precision auto parts companies, such as Bharat Forge Ltd. The world's biggest supplier of chassis parts to major auto makers, it employs 1,200 engineers at its heavily automated Pune plant. India's forte is small-batch production of high-value goods requiring lots of engineering, such as power generators for Cummins Inc. (CMI ) and core components for General Electric Co. (GE ) CAT scanners.
What holds India back are bureaucratic red tape, rigid labor laws, and its inability to build infrastructure fast enough. There are hopeful signs. Nokia Corp. is building a major campus to make cell phones in Madras, and South Korea's Pohang Iron & Steel Co. plans a $12 billion complex by 2016 in Orissa state. But it will take India many years to build the highways, power plants, and airports needed to rival China in mass manufacturing. With Beijing now pushing software and pledging intellectual property rights protection, some Indians fret design work will shift to China to be closer to factories. "The question is whether China can move from manufacturing to services faster than we can solve our infrastructure bottlenecks," says President Aravind Melligeri of Bangalore-based QuEST, whose 700 engineers design gas turbines, aircraft engines, and medical gear for GE and other clients.
However the race plays out, Corporate America has little choice but to be engaged -- heavily. Motorola illustrates the value of leveraging both nations to lower costs and speed up development. Most of its hardware is assembled and partly designed in China. Its R&D center in Bangalore devises about 40% of the software in its new phones. The Bangalore team developed the multimedia software and user interfaces in the hot Razr cell phone. Now, they are working on phones that display and send live video, stream movies from the Web, or route incoming calls to voicemail when you are shifting gears in a car. "This is a very, very critical, state-of-the-art resource for Motorola," says Motorola South Asia President Amit Sharma.
Companies like Motorola realize they must succeed in China and India at many levels simultaneously to stay competitive. That requires strategies for winning consumers, recruiting and managing R&D and professional talent, and skillfully sourcing from factories. "Over the next few years, you will see a dramatic gap opening between companies," predicts Jim Hemerling, who runs Boston Consulting Group's Shanghai practice. "It will be between those who get it and are fully mobilized in China and India, and those that are still pondering."
In the coming decades, China and India will disrupt workforces, industries, companies, and markets in ways that we can barely begin to imagine. The upheaval will test America's commitment to the global trade system, and shake its confidence. In the 19th century, Europe went through a similar trauma when it realized a new giant -- the U.S. -- had arrived. "It is up to America to manage its own expectation of China and India as either a threat or opportunity," says corporate strategist Kenichi Ohmae. "America should be as open-minded as Europe was 100 years ago." How these Asian giants integrate with the rest of the world will largely shape the 21st-century global economy.
Source :
Pagelink-http://www.businessweek.com/magazine/content/05_34/b3948401.htm
Your Brain on Exercise
By Gabrielle deGroot Redford/Janet Kinosian,
We all know that exercise is good for the body. Now, scientists are discovering it’s good for the brain as well. In recent years researchers have found that exercise improves memory, concentration, and abstract reasoning among older adults, and may even delay the onset of Alzheimer’s. It works like this: aerobic exercise increases blood flow to the brain, which nourishes brain cells and allows them to function more effectively—“kind of like making sure your engine is all tuned up,” says Waneen Spirduso, Ed.D., a professor at the University of Texas at Austin and the author of Exercise and Its Mediating Effects on Cognition (Human Kinetics, 2007).
A recent study showed that exercise actually promotes the growth of new neurons (brain cells) in the hippocampus—the part of the brain that controls memory and learning. Scientists previously believed that once brain cells died, they were not replaced.
“You can get cognitive benefits with activity that is fairly simple, like walking for 20 minutes a day,” says Spirduso.—Gabrielle deGroot Redford
Mental Muscle?
While yoga has long been shown to affect mood, one yoga move in particular is getting attention for boosting brainpower. Superbrain Yoga, as the exercise is called, is being practiced across the country as an antidote to brain drain. Go ahead. Try it!
This simple move, shown at right, boosts brain function by stimulating acupressure points on the earlobes, according to Yale-trained neurobiologist Eugenius Ang, Ph.D.
Mental Muscle?
Step 1 Place your left hand on your right earlobe, thumb on the front of the lobe with fingernail facing outward and second finger behind the earlobe. Then, with your right hand, grasp your left earlobe, again keeping your thumb on the front of the lobe, facing outward. Press both earlobes simultaneously, making sure your left arm is close to your chest and inside your right (which devotees say helps energy travel upward to the brain).
Step 2 As you press on the earlobes, squat down, keeping your back straight. Do 10 to 12 deep bends, inhaling through the nose on the way down and exhaling through the mouth coming up. You may place a chair underneath you as a safety precaution.
Step 3 Repeat daily. “It’s like putting more gas in your brain’s tank,” says Ang. To learn more, read Superbrain Yoga by Master Choa Kok Sui. —Janet Kinosian
Source:
World's Largest Circulation Magazine
if you like this, you will also like Memory Test
Negotiating salary? 4 important tips
When Sanjeev Verma took the offer to join a new company, he was quite happy with the cost-to-company salary that was offered to him.
However, afthttp://www.blogger.com/img/gl.photo.gif
Add Imageer the first month, when the salary cheque came, he was shocked with the numbers. His actual take-home was slightly more than his previous salary. And,Verma is not alone.
There are many of us who get lured with the numbers that show in our CTC package, but when the actual take-home salary comes in our hand, it causes a lot of heartache. It is therefore very important that when you are negotiating the salary, you should have a clear idea about numbers. A good way to achieve this is by using tax saving strategies that would reduce your burden.
Ah! those slips that snip
The first thing to look for is the different heads in your salary package. Heads like performance incentive sound challenging, but they are always taxed. Special allowances, added with conveyance and phone reimbursement, also attract tax.
Often, there is a notion among salary-earners that a lesser basic pay and high allowances may bring down income tax burden. However, it is best if you avoid this approach. A reduced basic salary leads to a lower provident fund, which is a forced saving for your future.
Anyone who gets many allowances must combine all of them under a single head. Put car allowance, books reimbursement, house rent allowance, office travel allowance, phone, vehicle and staying in hotels under on head, which straight away lowers your tax bill. Call this consolidated allowance.
src="http://pagead2.googlesyndication.com/pagead/show_ads.js">
Allowances that help
Always go for conveyance allowance. A sum of Rs 800 a month is tax-free. Even if your office does not give conveyance allowance, you can ask for a reduced basic pay and additional conveyance allowance. This move can cut down tax outgo.
Daily allowance, wherever allowed, must be grabbed with both hands because it carries total tax exemption. Professional tax, up to Rs 2,500, is also unencumbered by tax. Also, office loans for car or personal reasons can be used to avoid taxation to a great extent.
Policies that pay
Employees State Insurance Scheme, if available, must be compulsorily availed. Unlike LIC [Get Quote] schemes, the amount is absolutely free from income tax. Fidelity Guarantee Scheme is another insurance plan that is completely tax-free.
Even if you are contributing to a Public Provident Fund, a salaried individual must also opt for Employers Provident Fund, because this also doesn't attract tax. Many salaried people are unaware that a loan for medical treatment is exempt from income tax under Rule 3 A, but make sure that your medical insurance policy is not utilised.
Avoiding FBT
The fringe benefit tax can be avoided if you own a car and the company pays for maintenance and petrol bills. The most profitable way to claim HRA is to ask the company to take a house on lease, which is owned by any of your relatives. If it's your parents, who don't have any income, it works completely to your advantage.
It is because, on one hand, you claim HRA and they, having zero income, don't have to pay any tax. In fact, even if they have some income, but less than the stipulated base limit of Rs 220,000 a year (assuming they are retired), they would gain from the situation. The maximum benefit occurs when the rent is over 20 per cent of your salary.
When gift vouchers are given, insist on taking them under the employee welfare scheme.
Mobile phone bills are considered a perquisite and taxed, causing your office to fret a lot. You can again offer tax counselling by suggesting a simple trick.
The mobile phone bills can be placed under "recurring operative expenditure" head. All taxes are eliminated at one stroke. At home, leased phone landlines installed at the company's behest and cost, allows you to get rid of paying tax on calls.
src="http://pagead2.googlesyndication.com/pagead/show_ads.js">
Travel expenses and hotel stays are taxed under FBT. In fact, even a conference to discuss reducing tax incidence on perquisites will also be taxed! However, by not showing the expenditure as conference/seminar and calling it "convention" would remove the tax burden.
The office may want to give meals, breakfast or tiffin, but FBT fear precludes an employer from extending this perquisite to staff. Why not have an office "food and beverage" account? Show the claim in the income tax return.
The FBT will not apply, at all. Finally, soft furnishings for a house (such as curtains and table cloth), which give the abode a decent appearance for entertaining guests who drop in for official duties, can be shown as expenses. They also qualify for tax exemption.
Source: Powered by
However, afthttp://www.blogger.com/img/gl.photo.gif
Add Imageer the first month, when the salary cheque came, he was shocked with the numbers. His actual take-home was slightly more than his previous salary. And,Verma is not alone.
There are many of us who get lured with the numbers that show in our CTC package, but when the actual take-home salary comes in our hand, it causes a lot of heartache. It is therefore very important that when you are negotiating the salary, you should have a clear idea about numbers. A good way to achieve this is by using tax saving strategies that would reduce your burden.
Ah! those slips that snip
The first thing to look for is the different heads in your salary package. Heads like performance incentive sound challenging, but they are always taxed. Special allowances, added with conveyance and phone reimbursement, also attract tax.
Often, there is a notion among salary-earners that a lesser basic pay and high allowances may bring down income tax burden. However, it is best if you avoid this approach. A reduced basic salary leads to a lower provident fund, which is a forced saving for your future.
Anyone who gets many allowances must combine all of them under a single head. Put car allowance, books reimbursement, house rent allowance, office travel allowance, phone, vehicle and staying in hotels under on head, which straight away lowers your tax bill. Call this consolidated allowance.
src="http://pagead2.googlesyndication.com/pagead/show_ads.js">
Allowances that help
Always go for conveyance allowance. A sum of Rs 800 a month is tax-free. Even if your office does not give conveyance allowance, you can ask for a reduced basic pay and additional conveyance allowance. This move can cut down tax outgo.
Daily allowance, wherever allowed, must be grabbed with both hands because it carries total tax exemption. Professional tax, up to Rs 2,500, is also unencumbered by tax. Also, office loans for car or personal reasons can be used to avoid taxation to a great extent.
Policies that pay
Employees State Insurance Scheme, if available, must be compulsorily availed. Unlike LIC [Get Quote] schemes, the amount is absolutely free from income tax. Fidelity Guarantee Scheme is another insurance plan that is completely tax-free.
Even if you are contributing to a Public Provident Fund, a salaried individual must also opt for Employers Provident Fund, because this also doesn't attract tax. Many salaried people are unaware that a loan for medical treatment is exempt from income tax under Rule 3 A, but make sure that your medical insurance policy is not utilised.
Avoiding FBT
The fringe benefit tax can be avoided if you own a car and the company pays for maintenance and petrol bills. The most profitable way to claim HRA is to ask the company to take a house on lease, which is owned by any of your relatives. If it's your parents, who don't have any income, it works completely to your advantage.
It is because, on one hand, you claim HRA and they, having zero income, don't have to pay any tax. In fact, even if they have some income, but less than the stipulated base limit of Rs 220,000 a year (assuming they are retired), they would gain from the situation. The maximum benefit occurs when the rent is over 20 per cent of your salary.
When gift vouchers are given, insist on taking them under the employee welfare scheme.
Mobile phone bills are considered a perquisite and taxed, causing your office to fret a lot. You can again offer tax counselling by suggesting a simple trick.
The mobile phone bills can be placed under "recurring operative expenditure" head. All taxes are eliminated at one stroke. At home, leased phone landlines installed at the company's behest and cost, allows you to get rid of paying tax on calls.
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Travel expenses and hotel stays are taxed under FBT. In fact, even a conference to discuss reducing tax incidence on perquisites will also be taxed! However, by not showing the expenditure as conference/seminar and calling it "convention" would remove the tax burden.
The office may want to give meals, breakfast or tiffin, but FBT fear precludes an employer from extending this perquisite to staff. Why not have an office "food and beverage" account? Show the claim in the income tax return.
The FBT will not apply, at all. Finally, soft furnishings for a house (such as curtains and table cloth), which give the abode a decent appearance for entertaining guests who drop in for official duties, can be shown as expenses. They also qualify for tax exemption.
Source: Powered by
The 25 most difficult interview questions
The 25 most difficult questions you'll be asked on a job interview
Being prepared is half the battle.
If you are one of those executive types unhappy at your present post and embarking on a New Year's resolution to find a new one, here's a helping hand. The job interview is considered to be the most critical aspect of every expedition that brings you face-to- face with the future boss. One must prepare for it with the same tenacity and quickness as one does for a fencing tournament or a chess match.
This article has been excerpted from "PARTING COMPANY: How to Survive the Loss of a Job and Find Another Successfully" by William J. Morin and James C. Cabrera. Copyright by Drake Beam Morin, inc. Publised by Harcourt Brace Jovanovich.
Morin is chairman and Cabrera is president of New York-based Drake Beam Morin, nation's major outplacement firm, which has opened offices in Philadelphia.
1. Tell me about yourself.
Since this is often the opening question in an interview, be extracareful that you don't run off at the mouth. Keep your answer to a minute or two at most. Cover four topics: early years, education, work history, and recent career experience. Emphasize this last subject. Remember that this is likely to be a warm-up question. Don't waste your best points on it.
2. What do you know about our organization?
You should be able to discuss products or services, revenues, reputation, image, goals, problems, management style, people, history and philosophy. But don't act as if you know everything about the place. Let your answer show that you have taken the time to do some research, but don't overwhelm the interviewer, and make it clear that you wish to learn more.
You might start your answer in this manner: "In my job search, I've investigated a number of companies.
Yours is one of the few that interests me, for these reasons..."
Give your answer a positive tone. Don't say, "Well, everyone tells me that you're in all sorts of trouble, and that's why I'm here", even if that is why you're there.
3. Why do you want to work for us?
The deadliest answer you can give is "Because I like people." What else would you like-animals?
Here, and throughout the interview, a good answer comes from having done your homework so that you can speak in terms of the company's needs. You might say that your research has shown that the company is doing things you would like to be involved with, and that it's doing them in ways that greatly interest you. For example, if the organization is known for strong management, your answer should mention that fact and show that you would like to be a part of that team. If the company places a great deal of emphasis on research and development, emphasize the fact that you want to create new things and that you know this is a place in which such activity is encouraged. If the organization stresses financial controls, your answer should mention a reverence for numbers.
If you feel that you have to concoct an answer to this question - if, for example, the company stresses research, and you feel that you should mention it even though it really doesn't interest you- then you probably should not be taking that interview, because you probably shouldn't be considering a job with that organization.
Your homework should include learning enough about the company to avoid approaching places where you wouldn't be able -or wouldn't want- to function. Since most of us are poor liars, it's difficult to con anyone in an interview. But even if you should succeed at it, your prize is a job you don't really want.
4. What can you do for us that someone else can't?
Here you have every right, and perhaps an obligation, to toot your own horn and be a bit egotistical. Talk about your record of getting things done, and mention specifics from your resume or list of career accomplishments. Say that your skills and interests, combined with this history of getting results, make you valuable. Mention your ability to set priorities, identify problems, and use your experience and energy to solve them.
5. What do you find most attractive about this position? What seems least attractive about it?
List three or four attractive factors of the job, and mention a single, minor, unattractive item.
6. Why should we hire you?
Create your answer by thinking in terms of your ability, your experience, and your energy. (See question 4.)
7. What do you look for in a job?
Keep your answer oriented to opportunities at this organization. Talk about your desire to perform and be recognized for your contributions. Make your answer oriented toward opportunity rather than personal security.
8. Please give me your defintion of [the position for which you are being interviewed].
Keep your answer brief and taskoriented. Think in in terms of responsibilities and accountability. Make sure that you really do understand what the position involves before you attempt an answer. If you are not certain. ask the interviewer; he or she may answer the question for you.
9. How long would it take you to make a meaningful contribution to our firm?
Be realistic. Say that, while you would expect to meet pressing demands and pull your own weight from the first day, it might take six months to a year before you could expect to know the organization and its needs well enough to make a major contribution.
10. How long would you stay with us?
Say that you are interested in a career with the organization, but admit that you would have to continue to feel challenged to remain with any organization. Think in terms of, "As long as we both feel achievement-oriented."
11. Your resume suggests that you may be over-qualified or too experienced for this position. What's Your opinion?
Emphasize your interest in establishing a long-term association with the organization, and say that you assume that if you perform well in his job, new opportunities will open up for you. Mention that a strong company needs a strong staff. Observe that experienced executives are always at a premium. Suggest that since you are so wellqualified, the employer will get a fast return on his investment. Say that a growing, energetic company can never have too much talent.
12. What is your management style?
You should know enough about the company's style to know that your management style will complement it. Possible styles include: task oriented (I'll enjoy problem-solving identifying what's wrong, choosing a solution and implementing it"), results-oriented ("Every management decision I make is determined by how it will affect the bottom line"), or even paternalistic ("I'm committed to taking care of my subordinates and pointing them in the right direction").
A participative style is currently quite popular: an open-door method of managing in which you get things done by motivating people and delegating responsibility.
As you consider this question, think about whether your style will let you work hatppily and effectively within the organization.
13. Are you a good manager? Can you give me some examples? Do you feel that you have top managerial potential?
Keep your answer achievementand ask-oriented. Rely on examples from your career to buttress your argument. Stress your experience and your energy.
14. What do you look for when You hire people?
Think in terms of skills. initiative, and the adaptability to be able to work comfortably and effectively with others. Mention that you like to hire people who appear capable of moving up in the organization.
15. Have you ever had to fire people? What were the reasons, and how did you handle the situation?
Admit that the situation was not easy, but say that it worked out well, both for the company and, you think, for the individual. Show that, like anyone else, you don't enjoy unpleasant tasks but that you can resolve them efficiently and -in the case of firing someone- humanely.
16. What do you think is the most difficult thing about being a manager or executive?
Mention planning, execution, and cost-control. The most difficult task is to motivate and manage employess to get something planned and completed on time and within the budget.
17. What important trends do you see in our industry?
Be prepared with two or three trends that illustrate how well you understand your industry. You might consider technological challenges or opportunities, economic conditions, or even regulatory demands as you collect your thoughts about the direction in which your business is heading.
18. Why are you leaving (did you leave) your present (last) job?
Be brief, to the point, and as honest as you can without hurting yourself. Refer back to the planning phase of your job search. where you considered this topic as you set your reference statements. If you were laid off in an across-the-board cutback, say so; otherwise, indicate that the move was your decision, the result of your action. Do not mention personality conflicts.
The interviewer may spend some time probing you on this issue, particularly if it is clear that you were terminated. The "We agreed to disagree" approach may be useful. Remember hat your references are likely to be checked, so don't concoct a story for an interview.
19. How do you feel about leaving all your benefits to find a new job?
Mention that you are concerned, naturally, but not panicked. You are willing to accept some risk to find the right job for yourself. Don't suggest that security might interest you more than getting the job done successfully.
20. In your current (last) position, what features do (did) you like the most? The least?
Be careful and be positive. Describe more features that you liked than disliked. Don't cite personality problems. If you make your last job sound terrible, an interviewer may wonder why you remained there until now.
21. What do you think of your boss?
Be as positive as you can. A potential boss is likely to wonder if you might talk about him in similar terms at some point in the future.
22. Why aren't you earning more at your age?
Say that this is one reason that you are conducting this job search. Don't be defensive.
23. What do you feel this position should pay?
Salary is a delicate topic. We suggest that you defer tying yourself to a precise figure for as long as you can do so politely. You might say, "I understand that the range for this job is between $______ and $______. That seems appropriate for the job as I understand it." You might answer the question with a question: "Perhaps you can help me on this one. Can you tell me if there is a range for similar jobs in the organization?"
If you are asked the question during an initial screening interview, you might say that you feel you need to know more about the position's responsibilities before you could give a meaningful answer to that question. Here, too, either by asking the interviewer or search executive (if one is involved), or in research done as part of your homework, you can try to find out whether there is a salary grade attached to the job. If there is, and if you can live with it, say that the range seems right to you.
If the interviewer continues to probe, you might say, "You know that I'm making $______ now. Like everyone else, I'd like to improve on that figure, but my major interest is with the job itself." Remember that the act of taking a new job does not, in and of itself, make you worth more money.
If a search firm is involved, your contact there may be able to help with the salary question. He or she may even be able to run interference for you. If, for instance, he tells you what the position pays, and you tell him that you are earning that amount now and would Like to do a bit better, he might go back to the employer and propose that you be offered an additional 10%.
If no price range is attached to the job, and the interviewer continues to press the subject, then you will have to restpond with a number. You cannot leave the impression that it does not really matter, that you'll accept whatever is offered. If you've been making $80,000 a year, you can't say that a $35,000 figure would be fine without sounding as if you've given up on yourself. (If you are making a radical career change, however, this kind of disparity may be more reasonable and understandable.)
Don't sell yourself short, but continue to stress the fact that the job itself is the most important thing in your mind. The interviewer may be trying to determine just how much you want the job. Don't leave the impression that money is the only thing that is important to you. Link questions of salary to the work itself.
But whenever possible, say as little as you can about salary until you reach the "final" stage of the interview process. At that point, you know that the company is genuinely interested in you and that it is likely to be flexible in salary negotiations.
24. What are your long-range goals?
Refer back to the planning phase of your job search. Don't answer, "I want the job you've advertised." Relate your goals to the company you are interviewing: 'in a firm like yours, I would like to..."
25. How successful do you you've been so far?
Say that, all-in-all, you're happy with the way your career has progressed so far. Given the normal ups and downs of life, you feel that you've done quite well and have no complaints.
Present a positive and confident picture of yourself, but don't overstate your case. An answer like, "Everything's wonderful! I can't think of a time when things were going better! I'm overjoyed!" is likely to make an interviewer wonder whether you're trying to fool him . . . or yourself. The most convincing confidence is usually quiet confidence
As Reprinted from FOCUS Magazine -- January 5, 1983
Being prepared is half the battle.
If you are one of those executive types unhappy at your present post and embarking on a New Year's resolution to find a new one, here's a helping hand. The job interview is considered to be the most critical aspect of every expedition that brings you face-to- face with the future boss. One must prepare for it with the same tenacity and quickness as one does for a fencing tournament or a chess match.
This article has been excerpted from "PARTING COMPANY: How to Survive the Loss of a Job and Find Another Successfully" by William J. Morin and James C. Cabrera. Copyright by Drake Beam Morin, inc. Publised by Harcourt Brace Jovanovich.
Morin is chairman and Cabrera is president of New York-based Drake Beam Morin, nation's major outplacement firm, which has opened offices in Philadelphia.
1. Tell me about yourself.
Since this is often the opening question in an interview, be extracareful that you don't run off at the mouth. Keep your answer to a minute or two at most. Cover four topics: early years, education, work history, and recent career experience. Emphasize this last subject. Remember that this is likely to be a warm-up question. Don't waste your best points on it.
2. What do you know about our organization?
You should be able to discuss products or services, revenues, reputation, image, goals, problems, management style, people, history and philosophy. But don't act as if you know everything about the place. Let your answer show that you have taken the time to do some research, but don't overwhelm the interviewer, and make it clear that you wish to learn more.
You might start your answer in this manner: "In my job search, I've investigated a number of companies.
Yours is one of the few that interests me, for these reasons..."
Give your answer a positive tone. Don't say, "Well, everyone tells me that you're in all sorts of trouble, and that's why I'm here", even if that is why you're there.
3. Why do you want to work for us?
The deadliest answer you can give is "Because I like people." What else would you like-animals?
Here, and throughout the interview, a good answer comes from having done your homework so that you can speak in terms of the company's needs. You might say that your research has shown that the company is doing things you would like to be involved with, and that it's doing them in ways that greatly interest you. For example, if the organization is known for strong management, your answer should mention that fact and show that you would like to be a part of that team. If the company places a great deal of emphasis on research and development, emphasize the fact that you want to create new things and that you know this is a place in which such activity is encouraged. If the organization stresses financial controls, your answer should mention a reverence for numbers.
If you feel that you have to concoct an answer to this question - if, for example, the company stresses research, and you feel that you should mention it even though it really doesn't interest you- then you probably should not be taking that interview, because you probably shouldn't be considering a job with that organization.
Your homework should include learning enough about the company to avoid approaching places where you wouldn't be able -or wouldn't want- to function. Since most of us are poor liars, it's difficult to con anyone in an interview. But even if you should succeed at it, your prize is a job you don't really want.
4. What can you do for us that someone else can't?
Here you have every right, and perhaps an obligation, to toot your own horn and be a bit egotistical. Talk about your record of getting things done, and mention specifics from your resume or list of career accomplishments. Say that your skills and interests, combined with this history of getting results, make you valuable. Mention your ability to set priorities, identify problems, and use your experience and energy to solve them.
5. What do you find most attractive about this position? What seems least attractive about it?
List three or four attractive factors of the job, and mention a single, minor, unattractive item.
6. Why should we hire you?
Create your answer by thinking in terms of your ability, your experience, and your energy. (See question 4.)
7. What do you look for in a job?
Keep your answer oriented to opportunities at this organization. Talk about your desire to perform and be recognized for your contributions. Make your answer oriented toward opportunity rather than personal security.
8. Please give me your defintion of [the position for which you are being interviewed].
Keep your answer brief and taskoriented. Think in in terms of responsibilities and accountability. Make sure that you really do understand what the position involves before you attempt an answer. If you are not certain. ask the interviewer; he or she may answer the question for you.
9. How long would it take you to make a meaningful contribution to our firm?
Be realistic. Say that, while you would expect to meet pressing demands and pull your own weight from the first day, it might take six months to a year before you could expect to know the organization and its needs well enough to make a major contribution.
10. How long would you stay with us?
Say that you are interested in a career with the organization, but admit that you would have to continue to feel challenged to remain with any organization. Think in terms of, "As long as we both feel achievement-oriented."
11. Your resume suggests that you may be over-qualified or too experienced for this position. What's Your opinion?
Emphasize your interest in establishing a long-term association with the organization, and say that you assume that if you perform well in his job, new opportunities will open up for you. Mention that a strong company needs a strong staff. Observe that experienced executives are always at a premium. Suggest that since you are so wellqualified, the employer will get a fast return on his investment. Say that a growing, energetic company can never have too much talent.
12. What is your management style?
You should know enough about the company's style to know that your management style will complement it. Possible styles include: task oriented (I'll enjoy problem-solving identifying what's wrong, choosing a solution and implementing it"), results-oriented ("Every management decision I make is determined by how it will affect the bottom line"), or even paternalistic ("I'm committed to taking care of my subordinates and pointing them in the right direction").
A participative style is currently quite popular: an open-door method of managing in which you get things done by motivating people and delegating responsibility.
As you consider this question, think about whether your style will let you work hatppily and effectively within the organization.
13. Are you a good manager? Can you give me some examples? Do you feel that you have top managerial potential?
Keep your answer achievementand ask-oriented. Rely on examples from your career to buttress your argument. Stress your experience and your energy.
14. What do you look for when You hire people?
Think in terms of skills. initiative, and the adaptability to be able to work comfortably and effectively with others. Mention that you like to hire people who appear capable of moving up in the organization.
15. Have you ever had to fire people? What were the reasons, and how did you handle the situation?
Admit that the situation was not easy, but say that it worked out well, both for the company and, you think, for the individual. Show that, like anyone else, you don't enjoy unpleasant tasks but that you can resolve them efficiently and -in the case of firing someone- humanely.
16. What do you think is the most difficult thing about being a manager or executive?
Mention planning, execution, and cost-control. The most difficult task is to motivate and manage employess to get something planned and completed on time and within the budget.
17. What important trends do you see in our industry?
Be prepared with two or three trends that illustrate how well you understand your industry. You might consider technological challenges or opportunities, economic conditions, or even regulatory demands as you collect your thoughts about the direction in which your business is heading.
18. Why are you leaving (did you leave) your present (last) job?
Be brief, to the point, and as honest as you can without hurting yourself. Refer back to the planning phase of your job search. where you considered this topic as you set your reference statements. If you were laid off in an across-the-board cutback, say so; otherwise, indicate that the move was your decision, the result of your action. Do not mention personality conflicts.
The interviewer may spend some time probing you on this issue, particularly if it is clear that you were terminated. The "We agreed to disagree" approach may be useful. Remember hat your references are likely to be checked, so don't concoct a story for an interview.
19. How do you feel about leaving all your benefits to find a new job?
Mention that you are concerned, naturally, but not panicked. You are willing to accept some risk to find the right job for yourself. Don't suggest that security might interest you more than getting the job done successfully.
20. In your current (last) position, what features do (did) you like the most? The least?
Be careful and be positive. Describe more features that you liked than disliked. Don't cite personality problems. If you make your last job sound terrible, an interviewer may wonder why you remained there until now.
21. What do you think of your boss?
Be as positive as you can. A potential boss is likely to wonder if you might talk about him in similar terms at some point in the future.
22. Why aren't you earning more at your age?
Say that this is one reason that you are conducting this job search. Don't be defensive.
23. What do you feel this position should pay?
Salary is a delicate topic. We suggest that you defer tying yourself to a precise figure for as long as you can do so politely. You might say, "I understand that the range for this job is between $______ and $______. That seems appropriate for the job as I understand it." You might answer the question with a question: "Perhaps you can help me on this one. Can you tell me if there is a range for similar jobs in the organization?"
If you are asked the question during an initial screening interview, you might say that you feel you need to know more about the position's responsibilities before you could give a meaningful answer to that question. Here, too, either by asking the interviewer or search executive (if one is involved), or in research done as part of your homework, you can try to find out whether there is a salary grade attached to the job. If there is, and if you can live with it, say that the range seems right to you.
If the interviewer continues to probe, you might say, "You know that I'm making $______ now. Like everyone else, I'd like to improve on that figure, but my major interest is with the job itself." Remember that the act of taking a new job does not, in and of itself, make you worth more money.
If a search firm is involved, your contact there may be able to help with the salary question. He or she may even be able to run interference for you. If, for instance, he tells you what the position pays, and you tell him that you are earning that amount now and would Like to do a bit better, he might go back to the employer and propose that you be offered an additional 10%.
If no price range is attached to the job, and the interviewer continues to press the subject, then you will have to restpond with a number. You cannot leave the impression that it does not really matter, that you'll accept whatever is offered. If you've been making $80,000 a year, you can't say that a $35,000 figure would be fine without sounding as if you've given up on yourself. (If you are making a radical career change, however, this kind of disparity may be more reasonable and understandable.)
Don't sell yourself short, but continue to stress the fact that the job itself is the most important thing in your mind. The interviewer may be trying to determine just how much you want the job. Don't leave the impression that money is the only thing that is important to you. Link questions of salary to the work itself.
But whenever possible, say as little as you can about salary until you reach the "final" stage of the interview process. At that point, you know that the company is genuinely interested in you and that it is likely to be flexible in salary negotiations.
24. What are your long-range goals?
Refer back to the planning phase of your job search. Don't answer, "I want the job you've advertised." Relate your goals to the company you are interviewing: 'in a firm like yours, I would like to..."
25. How successful do you you've been so far?
Say that, all-in-all, you're happy with the way your career has progressed so far. Given the normal ups and downs of life, you feel that you've done quite well and have no complaints.
Present a positive and confident picture of yourself, but don't overstate your case. An answer like, "Everything's wonderful! I can't think of a time when things were going better! I'm overjoyed!" is likely to make an interviewer wonder whether you're trying to fool him . . . or yourself. The most convincing confidence is usually quiet confidence
As Reprinted from FOCUS Magazine -- January 5, 1983
Sleep With Your Head Towards South
The direction your head faces while sleeping has a strong effect on your physical and mental well-being. Head placement refers to the direction the top of your head points when lying down.
One should avoid sleeping with his head to the north or west. We all know that our planet has a magnetic pole stretched from north to south with the positive pole at the north and the negative pole at the south. Now, health scientists tell us that we too have a similar magnetic stretch with the positive pole at the head and the negative one at the feet.
It is common knowledge that like poles repel and unlike poles attract not only scientific but also in social spheres. When we lay our heads on the north side, the two positive sides repel each other and there is a struggle between the two.
Since the earth has a greater magnetic force, we are always the losers, and rise in the morning with headache or heaviness.
Additional Details
But when we lay our heads in the southern direction, there is mutual attraction and we wake up fit, fresh and free, unless afflicted by some illness.
We also know that our planet revolves itself from west to east, and sun's magnetic field enters earth from east side. This magnetic force enters our head if we lie with head on the east and exits through feet, promoting cool heads and warm feet as per the laws of magnetism and electricity. When the head is laid towards the west, cool feet and hot head -- result -- an unpleasant start for morning.
Now we may realize why the ancient people said, that our intellect improves by east facing head or house, and life lengthens with the head facing south.
North brings disease and west dulls the brain. They gave us a few more healing hints for a healthy sleep. Never lie on one side for long. Keep changing.
Conclusion:
Source: Yahoo answers
One should avoid sleeping with his head to the north or west. We all know that our planet has a magnetic pole stretched from north to south with the positive pole at the north and the negative pole at the south. Now, health scientists tell us that we too have a similar magnetic stretch with the positive pole at the head and the negative one at the feet.
It is common knowledge that like poles repel and unlike poles attract not only scientific but also in social spheres. When we lay our heads on the north side, the two positive sides repel each other and there is a struggle between the two.
Since the earth has a greater magnetic force, we are always the losers, and rise in the morning with headache or heaviness.
Additional Details
But when we lay our heads in the southern direction, there is mutual attraction and we wake up fit, fresh and free, unless afflicted by some illness.
We also know that our planet revolves itself from west to east, and sun's magnetic field enters earth from east side. This magnetic force enters our head if we lie with head on the east and exits through feet, promoting cool heads and warm feet as per the laws of magnetism and electricity. When the head is laid towards the west, cool feet and hot head -- result -- an unpleasant start for morning.
Now we may realize why the ancient people said, that our intellect improves by east facing head or house, and life lengthens with the head facing south.
North brings disease and west dulls the brain. They gave us a few more healing hints for a healthy sleep. Never lie on one side for long. Keep changing.
Conclusion:
- Head to East: Benefits: Auspicious
- Always make sure you put your head in the East direction as much as possible.Head to South: Benefits: Auspicious
- The best position for sleeping is with the top of your head pointing to the south and feet pointing north.Head to North or West: Results: Dangerous.
- Never sleep with the top of your head pointing to the north and feet pointing to the south. Brings terrible dreams and disturbed sleep. You will feel miserable. Irritability, frustration and emotional instability will develop. It sucks your positive vibrations while you sleep. You will lose 50% of your willpower and your soul power will not increase while you sleep. Your physical and mental health will suffer.
Source: Yahoo answers
Edited: Feb 28, 2016
One of our anonymous friend has posted a link in comments which is very informative and will clears doubts of many. Please do watch it.Thanks to whoever posted this video here and also to Isha Foundation for uploading this informative video on youtube
Subprime pain: Who lost how much
The United States' subprime crisis has turned out to be bigger than previously thought and has the potential to drag the world's largest economy into a recession.
And although there are varying opinions on whether the US could slip into a recession or not, most economists do feel that despite the US Federal Reserve's rate cuts and the Bush administration's $161-billion economic aid plan, chances of a recession are high.
Be that as it may, one thing is for certain: the losses from the subprime that financial majors have incurred will take a long time to get over.
Given below, in the table, are the estimated losses that some of the world's largest banks have suffered on account of home loan defaults in the US. The total figure adds up to over $76 billion and does not take into account losses suffered by many other financial majors that had an exposure to the crisis.
Four Indian banks -- State Bank of India [Get Quote], ICICI Bank [Get Quote], Bank of Baroda [Get Quote], and Bank of India too have big exposure to credit derivatives, with the spreads on these widening since international lenders turned risk-averse following the crisis in the US subprime (or high-risk home loan) market.
Credit derivatives are instruments for which the underlying asset is a loan or a bond. Marking to market means valuing a portfolio based on the prevailing market price.
Subprime losses till date
ICICI Bank has the highest exposure of $1.5 billion. SBI has an estimated exposure of $1 billion, BoI of $300 million, and BoB of $150 million. About 5-10 per cent of this figure could be the losses that these banks could incur.
Understanding the subprime crisis
Just what is the subprime crisis? And why is it having such a decisive impact on the Indian stock market?
Let's understand it. Take, for example, an American who seeks a home loan, but does not have a very good credit rating. That essentially means that banks may not extend him a home loan. Enter, another American with stellar credit rating and the willingness to take on some risk. Given his good credit rating, banks are willing to give him a loan at a certain rate of interest.
This individual the divides the loan into small lots and gives them out as home loans to lots of Americans, who do not have very good credit rating and cannot get a home loan from any bank. He gives out the home loan at a rate of interest higher than it is paying to the bank it borrowed money from.
This higher rate is referred to as the subprime rate and this home loan market is referred to as the subprime home loan market.
By giving out a home loan to lots of individuals, the individual ensures that even if a few of them default, his overall position is not affected much. But the individual giving out loans in the subprime market does not stop here. He does not wait for the principal and the interest on the subprime home loans to be repaid, so that he can repay his loan to the bank, which has given him the loan.
He goes ahead and securitizes these loans. Securitization involves converting these home loans into financial securities, which promise to pay a certain rate of interest.
These financial securities are then sold to big institutional investors. The interest and the principal that is repaid by the subprime borrowers through equated monthly installments is passed onto these institutional investors.
The individual giving out the subprime loans, takes the money that he gets from selling the financial securities and passes it on to the bank, he had taken the loan from, thereby repaying the loan.
A neat plan. But then things went horribly wrong. The subprime home loans were given out as floating rate home loans. So as interest rates increased, the rates on floating home loans too went up, and so did the monthly installments needed to service these loans.
These high installments hit the subprime borrowers with the terrible force. Many, given their poor credit rating to begin with, defaulted. Once, more and more subprime borrowers started defaulting, payments to the institutional investors who had bought the financial securities stopped, leading to huge losses.
So how did that effect stock markets in India? Institutional investors who had invested in securitized paper from the subprime home loan market, saw their investments turning into losses. Most big investors have a certain fixed proportion of their total investments invested in various parts of the world.
Once investments in the US turned bad, more money had to be invested in the US, to maintain that fixed proportion. In order to invest more money in the US, money had to come in from somewhere. And this money came in from emerging markets like India, where their investments have been doing well.
These big institutional investors, to make good of their losses on the subprime market, have been selling their investments in India and other emerging markets. Since the amount of selling in the market far overweighs the amount of buying, Indian stock prices have been falling.
source: February 06, 2008
And although there are varying opinions on whether the US could slip into a recession or not, most economists do feel that despite the US Federal Reserve's rate cuts and the Bush administration's $161-billion economic aid plan, chances of a recession are high.
Be that as it may, one thing is for certain: the losses from the subprime that financial majors have incurred will take a long time to get over.
Given below, in the table, are the estimated losses that some of the world's largest banks have suffered on account of home loan defaults in the US. The total figure adds up to over $76 billion and does not take into account losses suffered by many other financial majors that had an exposure to the crisis.
Four Indian banks -- State Bank of India [Get Quote], ICICI Bank [Get Quote], Bank of Baroda [Get Quote], and Bank of India too have big exposure to credit derivatives, with the spreads on these widening since international lenders turned risk-averse following the crisis in the US subprime (or high-risk home loan) market.
Credit derivatives are instruments for which the underlying asset is a loan or a bond. Marking to market means valuing a portfolio based on the prevailing market price.
Subprime losses till date
| Bank | Losses |
| Citigroup | $18.0 billion |
| UBS | $13.5 billion |
| Morgan Stanley | $9.4 billion |
| Merrill Lynch | $8.0 billion |
| HSBC | $3.4 billion |
| Bear Stearns | $3.2 billion |
| Deutsche Bank | $3.2 billion |
| Bank of America | $3.0 billion |
| Barclays | $2.6 billion |
| Royal Bank of Scotland | $2.6 billion |
| IKB | $2.6 billion |
| Societe Generale | $2.0 billion |
| Freddie Mac | $2.0 billion |
| Wachovia | $1.1 billion |
| Credit Suisse | $1.0 billion |
ICICI Bank has the highest exposure of $1.5 billion. SBI has an estimated exposure of $1 billion, BoI of $300 million, and BoB of $150 million. About 5-10 per cent of this figure could be the losses that these banks could incur.
Understanding the subprime crisis
Just what is the subprime crisis? And why is it having such a decisive impact on the Indian stock market?
Let's understand it. Take, for example, an American who seeks a home loan, but does not have a very good credit rating. That essentially means that banks may not extend him a home loan. Enter, another American with stellar credit rating and the willingness to take on some risk. Given his good credit rating, banks are willing to give him a loan at a certain rate of interest.
This individual the divides the loan into small lots and gives them out as home loans to lots of Americans, who do not have very good credit rating and cannot get a home loan from any bank. He gives out the home loan at a rate of interest higher than it is paying to the bank it borrowed money from.
This higher rate is referred to as the subprime rate and this home loan market is referred to as the subprime home loan market.
By giving out a home loan to lots of individuals, the individual ensures that even if a few of them default, his overall position is not affected much. But the individual giving out loans in the subprime market does not stop here. He does not wait for the principal and the interest on the subprime home loans to be repaid, so that he can repay his loan to the bank, which has given him the loan.
He goes ahead and securitizes these loans. Securitization involves converting these home loans into financial securities, which promise to pay a certain rate of interest.
These financial securities are then sold to big institutional investors. The interest and the principal that is repaid by the subprime borrowers through equated monthly installments is passed onto these institutional investors.
The individual giving out the subprime loans, takes the money that he gets from selling the financial securities and passes it on to the bank, he had taken the loan from, thereby repaying the loan.
A neat plan. But then things went horribly wrong. The subprime home loans were given out as floating rate home loans. So as interest rates increased, the rates on floating home loans too went up, and so did the monthly installments needed to service these loans.
These high installments hit the subprime borrowers with the terrible force. Many, given their poor credit rating to begin with, defaulted. Once, more and more subprime borrowers started defaulting, payments to the institutional investors who had bought the financial securities stopped, leading to huge losses.
So how did that effect stock markets in India? Institutional investors who had invested in securitized paper from the subprime home loan market, saw their investments turning into losses. Most big investors have a certain fixed proportion of their total investments invested in various parts of the world.
Once investments in the US turned bad, more money had to be invested in the US, to maintain that fixed proportion. In order to invest more money in the US, money had to come in from somewhere. And this money came in from emerging markets like India, where their investments have been doing well.
These big institutional investors, to make good of their losses on the subprime market, have been selling their investments in India and other emerging markets. Since the amount of selling in the market far overweighs the amount of buying, Indian stock prices have been falling.
source:
February 06, 2008
Your Life Sucks Because You Expect It To Suck (and 10 Ways to Improve It Right Now)
Contrary to popular belief, you are in control of our life. You may believe, based on what you have been taught, that other people have at least some control over your destiny.
We want you to understand that this is not the case…unless you allow it to be.
You may have learned to expect life to be difficult, limiting, and unrewarding. Now is your chance to unlearn that, grow, and succeed.
The following list will help guide you through taking back control over your life. It’s a lot of information so I would suggest printing it out or bookmarking it so you can return on a regular basis and remind yourself what you are trying to accomplish.
1. Don’t Exist to Survive, Exist to Flourish
Everyone has basic survival needs. It is important that you seek to meet your needs and then strive to move beyond them.
So many people get caught up in meeting their needs that they stop after that small accomplishment. It’s paycheck to paycheck. We pay the rent, we pay the bills, we buy the food, we buy the clothes, we borrow for our pleasure and we go back to work. The money comes in, the money goes out, and the names are changed to protect the innocent.
An ant works all day and at the end of the day it’s still an ant and it’s still working. In order to break from the habits of the ant, you simply need to choose to do so. Don’t let life happen to you; you need to happen to life.
Get out of debt, get an emergency fund, generate more income, save for your retirement, and build wealth.
2. Don’t Allow Other People’s Limits To Control You
Your expectations of life were developed as a child. Your beliefs and views of the world depend on how your parents, grandparents, friends, and teachers interacted with you.
Some people think that they will never be rich or treated fairly because of their skin color. Others think they need the government to help them get ahead because their parents thought they needed the government. One friend told you that being rich was simply good fortune; that you had to win life’s lottery in order to make it. Your uncle told you that it’s impossible to live comfortably without borrowing money.
These people have set limits on you and you are allowing those limits to control your life.
You can identify a limit that has been set on you every time you find yourself thinking negatively about a situation or goal. Work to identify each limit as it presents itself and then conquer the limit by proving it wrong.
Free yourself from the control of other people’s beliefs.
3. Don’t Manufacture or Invite Pain
Do you believe that life has to be difficult? My Aunt always told me, “Life’s a bitch and then you die.” (I’ve conquered the limit she set on me, by the way).
Sometimes we invite pain because we don’t feel comfortable without it. Pain is at least a sign that you’re still alive, right? But does it help us or hold us back?
Life does not have to be hard. It’s really only as hard as you want it to be.
Say this to yourself a few times: I don’t owe anyone anything and I am not responsible for others. We bring pain on ourselves when we feel that we need to repay that which was given to us as a gift, or when we try to take responsibility for others.
Stop brining unnecessary pain on yourself.
4. Fix Yourself, Don’t Affix Blame
Be accountable for your past, present, and future. Whatever has happened thus far is your fault and whatever is going to happen in the future is also your fault.
If you affix blame and live life as a victim, you will stay a victim forever. Victims do not realize dreams and goals, proactive people do.
Besides, blaming doesn’t fix anything, only action does. If you want to improve your life, you have to take responsibility for it.
5. Forgive Others To Release Their Control Of You
Face whatever has been done to you in the past, recover from it, and then forgive.
When you fail to forgive, you allow the unforgiven person or thing to control you forever. It will be a constant weight hooked to your ankles that you choose to drag around for your entire life. Notice I said you choose to drag it around. You choose to drag it because you can also choose to break the chain at any time.
Face it, accept it, recover from it, and forgive. You will never find freedom without forgiveness.
6. Think Positive Of Yourself and Your Life
Cultivate an indomitable spirit. Believe you can and will succeed.
Make a list of positive statements about yourself and read them everyday.
Do not make excuses or put yourself down in conversations with others or with yourself. And analyze the people you come in contact with on a regular basis. Are these negative people or positive people? Your friends should support you and lift you up, not depress you and drag you down to their level.
And when someone compliments you, say thank you. That’s important. Many people receive compliments and respond with, “oh well, I’m really not…”.
Believe in yourself and others will believe in you.
7. Suppress Drama and Embrace Reality
If you notice, the drama queens always have drama in their life. Drama doesn’t find them, they find the drama. That’s because drama is a choice.
It’s also important to understand that drama limits you. It is a tool of victims. The more drama you allow in your life, the more you will lose sight of your goals. Drama does not create progress, it forbids it.
If you are around people who always experience drama of one type or another, think about distancing yourself from that person. You don’t need the baggage that comes with constant drama.
8. Fulfill Your Own Wants and Needs
Many people are caught up in putting other’s first. It is ingrained in a lot of us during childhood. Let your friends go first, serve the guests first, hold the door for others, etc. So when it comes to true needs and wants, we often transfer those learned behaviors and suppress ourselves.
Instead, start putting yourself first when you really want to or need to. If you are asked to work an extra day but you really feel like you need to spend some time with your family, don’t agree to work. If someone asks you what you want, don’t answer in generalizations or tell them it doesn’t matter, think about it and tell them what you really want.
Make your own wants and needs a number one priority.
9. Leave the Past Where it Belongs
The past is just that–the past. What happened in the past does not necessarily allude to what is going to happen in the future.
Each new career, new relationship, and new friendship have their own unique potential. If you were let down in the past, you can’t let that affect your present and future. They aren’t the same.
If you live in the past, you will constantly live in a self fulfilling prophecy. It’s the title of this article. Your life will suck because you expect it to suck. It’s that simple.
10. Realize that the Enemy is You
We have met the enemy, and he is us.
In order to conquer the outside, you must first conquer the inside. Look to yourself. We hold ourselves back more than anyone else has the power to. When you realize this is the reality you will find it easier to deal with your issues and make progress toward your goals.
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