How to turn an Interview into a Job

Instructions

1. CALL the day before your interview to confirm the appointment (time, location) and ask if there is anything you need to bring with you. This helps you stand out from the other candidates, shows interest and preparation.
2. Do RESEARCH on the company you are interviewing with, this will build your comfort level, will assist you in answering a few key questions and again will show your interest in the position.
3. BODY LANGUAGE is huge in an interview! Have an open posture such as slight forward lean, uncrossed legs and arms. Mirror their gestures to help build rapport by sitting in a similar manner, similar hand movements, facial expressions. Of course your not copying every move, just slightly mirroring.
4. So, do YOU have any QUESTIONS ? Always say YES to this and have a few questions prepared, have at least 6 ready since some of your pre prepared questions may have been answered during the interview. Speak as if you already work with the company, ex. instead of asking What are your goals for....? say What are our goals for....?

Your interview IS OVER *whew, give them a nice firm handshake (as you did when you arrived), thank them for their time and always, always follow up with a thank you phone call or email. When doing this, again, mention a point or two

The secret of happiness

A certain shopkeeper sent his son to learn about the secret of happiness from the wisest man in the world. The lad wandered through the desert for 40 days, and finally came upon a beautiful castle, high atop a mountain. It was there that the wise man lived.

Rather than finding a saintly man, though, our hero, on entering the main room of the castle, saw a hive of activity: tradesmen came and went, people were conversing in the corners, a small orchestra was playing soft music, and there was a table covered with platters of the most delicious food in that part of the world. The wise man conversed with everyone, and the boy had to wait for two hours before it was his turn to be given the man's attention.

The wise man listened attentively to the boy's explanation of why he had come, but told him that he didn't have time just then to explain the secret of happiness. He suggested that the boy look around the palace and return in two hours.

"Meanwhile, I want to ask you to do something", said the wise man, handing the boy a teaspoon that held two drops of oil. "As you wander around, carry this spoon with you without allowing the oil to spill".

The boy began climbing and descending the many stairways of the palace, keeping his eyes fixed on the spoon. After two hours, he returned to the room where the wise man was.

"Well", asked the wise man, "Did you see the Persian tapestries that are hanging in my dining hall? Did you see the garden that it took the master gardener ten years to create? Did you notice the beautiful parchments in my library?"

The boy was embarrassed, and confessed that he had observed nothing. His only concern had been not to spill the oil that the wise man had entrusted to him.

"Then go back and observe the marvels of my world", said the wise man. "You cannot trust a man if you don't know his house".

Relieved, the boy picked up the spoon and returned to his exploration of the palace, this time observing all of the works of art on the ceilings and the walls. He saw the gardens, the mountains all around him, the beauty of the flowers, and the taste with which everything had been selected. Upon returning to the wise man, he related in detail everything he had seen.

"But where are the drops of oil I entrusted to you?" asked the wise man. Looking down at the spoon he held, the boy saw that the oil was gone.

"Well, there is only one piece of advice I can give you", said the wisest of wise men. "The secret of happiness is to see all the marvels of the world and never to forget the drops of oil on the spoon".

Author: Paul Coelho in "The Alchemist"

Zen Stories

When Tired

A student once asked his teacher,

"Master, what is enlightenment?"

The master replied,

"When hungry, eat. When tired, sleep."

Empty Your Cup

A university professor went to visit a famous Zen master. While the master quietly served tea, the professor talked about Zen. The master poured the visitor's cup to the brim, and then kept pouring.

The professor watched the overflowing cup until he could no longer restrain himself.
"It's overfull! No more will go in!" the professor blurted.

"You are like this cup," the master replied, "How can I show you Zen unless you first empty your cup."

Moving Mind

Two men were arguing about a flag flapping in the wind.

"It's the wind that is really moving," stated the first one.
"No, it is the flag that is moving," contended the second.

A Zen master, who happened to be walking by, overheard the debate and interrupted them.
"Neither the flag nor the wind is moving," he said, "It is MIND that moves."

It Will Pass

A student went to his meditation teacher and said, "My meditation is horrible! I feel so distracted, or my legs ache, or I'm constantly falling asleep. It's just horrible!" "It will pass," the teacher said matter-of-factly.

A week later, the student came back to his teacher. "My meditation is wonderful! I feel so aware, so peaceful, so alive! It's just wonderful!'

"It will pass,"
the teacher replied matter-of-factly.

Also Read:

Zen StoriesII
Zen Stories  III
Zen StoriesIV

Porter’s Five Forces

Understanding the dynamics of competitors within an industry is critical for several reasons. First, it can help to assess the potential opportunities for your venture, particularly important if you are entering this industry as a new player. It can also be a critical step to better differentiate yourself from others that offer similar products and services.

One of the most respected models to assist with this analysis is Porter’s Five Forces Model. This model, created by Michael E. Porter and described in the book “Competitive Strategy: Techniques for Analyzing Industries and Competitors,” has proven to be a useful tool for both business and marketing-based planning.

Background
The pure competition model does not present a viable tool to assess an industry. Porter’s Five Forces attempts to realistically assess potential levels of profitability, opportunity and risk based on five key factors within an industry. This model may be used as a tool to better develop a strategic advantage over competing firms within an industry in a competitive and healthy environment. It identifies five forces that determine the long-run profitability of a market or market segment.

• Suppliers
• Buyers
• Entry/Exit Barriers
• Substitutes
• Rivalry

Supplier power

• Supplier concentration
• Importance of volume to supplier
• Differentiation of inputs
• Impact of inputs on cost or differentiation
• Switching costs of firms in the industry
• Presence of substitute inputs
• Threat of forward integration
• Cost relative to total purchases in industry

Buyer power

• Bargaining leverage
• Buyer volume
• Buyer information
• Brand identity
• Price sensitivity
• Threat of backward integration
• Product differentiation
• Buyer concentration vs. industry
• Substitutes available
•  Buyers’ incentives

Entry/exit barriers

• Absolute cost advantages
• Proprietary learning curve
• Access to inputs
• Government or other binding policy
• Economies of scale
• Capital requirements
• Brand identity
• Switching costs
• Access to distribution
• Expected retaliation
• Proprietary products

Substitutes

• Switching costs
• Buyer inclination to find alternatives
• Price-performance
• Trade-off of the available substitute products or services

Rivalry

• Exit barriers
• Industry concentration
• Fixed costs
• Perceived value add
• Industry growth
• Overcapacity status
• Product differences
• Switching costs
• Brand identity
• Diversity of rivals
• Corporate stakes 

Service
•    Level of service compared to others
•    Added value perceptions
•    Dynamics with other attributes




Power of suppliers
An industry that produces goods requires raw materials. This leads to buyer-supplier relationships between the industry and the firms that provide the raw materials. Depending on where the power lies, suppliers may be able to exert an influence on the producing industry. They may be able to dictate price and influence availability. A segment is unattractive when an organization’s suppliers have the ability to:

• Increase prices without suffering from a decrease in volume
• Reduce the quantity supplied
• Organize in a formal or informal manner
• Compete in an environment with relatively few substitutes
• Provide a product/material that is a critical part of the end product or service
• Impose switching costs on their customers when they depart
• Integrate downstream by purchasing or controlling the distribution channels.

One example of this is DeBeers’ ability to wield influence within the diamond industry. DeBeers’ high level of control over some of the most productive diamond mines in the world gives them extreme power within the industry.

The best defense in mitigating the power of suppliers is to build win–win relationships with suppliers or arrange to use multiple suppliers.

Power of buyers
The power of buyers describes the impact customers have on an industry. When buyer power is strong, the relationship to the producing industry becomes closer to what economists term a monopsony. A Monopsony is a market where there are many suppliers and one buyer. Under these market conditions, the buyer has the most influence in determining the price. Few pure monopsonies actually exist, but there is often a connection between an industry and buyers that determines where power lies.


The bargaining power of buyers increases when they have the ability to:

• Be “organized” in some form with others providing similar products and services
• Purchase a product that represents a significant fraction of the buyer’s costs
• Buy a product that is undifferentiated
• Incur low switching costs when they change vendors
• Be price sensitive, with other options available
• Integrate upstream, to purchase the providers of the goods.

To mitigate the power of buyers, sellers can seek to select buyers with less power to negotiate, switch suppliers, or develop superior offers that strong buyers cannot refuse.

Barriers to entry/exit
The possibility of new firms entering the industry impacts competition. A key is to assess how easy it is for a new player to enter an industry. The most attractive segment has high entry barriers and low exit barriers. Although any firm should be able to enter and exit a market, each industry often presents varying levels of difficulty, commonly driven by economics. Manufacturing-based industries are more difficult to enter than many service-based industries. The definable characteristics of each industry protect profitable areas for firms and inhibit additional rivals from entering the market. These inhibitive characteristics are referred to as barriers to entry.

Barriers to entry are more than the expected ebb and flow that markets typically experience. For example, when industry profits increase, one would expect firms to enter the market to take advantage of the high profit levels, which will eventually result in reducing profits.

Conversely, when profits decrease, we would expect some firms to exit. Other factors that will deter new entrants are falling prices, actions that keep prices artificially low, expectations that future prices will fall, large or unpredictable start-up expenditures, and other extreme uncertainties.

Barriers to entry are unique characteristics to each industry. They reduce the rate of entry of new firms and, therefore, maintain a level of profits for current industry competitors. Barriers to entry can be created or exploited to enhance a firm’s competitive advantage.


Barriers to entry arise from several sources:

• Patents and proprietary knowledge
• Asset specificity – (Specialized technology or infrastructure)
• Economies of scale
• Government.

Barriers to exit work similarly to barriers to entry. Exit barriers limit the ability of a firm to leave the market and can exacerbate rivalry – unable to leave the industry, a firm must compete. Some of an industry’s entry and exit barriers can be summarized as follows: Profitability potential is high when both entry and exit barriers are high. In this situation, firms do face more risk because poorer-performing ones tend to continue to produce regardless of profitability and, therefore, continue to add to the supply.

Substitute products
Porter’s Five Forces model refers to “substitute products” as those products that are available in other industries that meet an identical or similar need for the end user. As more substitutes become available and affordable, the demand becomes more elastic since customers have more alternatives. Substitute products may limit the ability of firms within an industry to raise prices and improve margins.

For example, the price of aluminum cans is constrained by the price of glass bottles, steel cans, and plastic containers. These containers are substitutes, yet they are not rivals in the same industries.

The treat of substitutes often impacts price-based competition. There are other concerns in assessing the threat of substitutes relating to technology. New technologies contribute to competition though substitute products and services. Think of the impact wireless technologies have had on traditional telephone service. Except in remote areas it is unlikely that cable TV could compete with free broadcast TV from an antenna without the greater diversity of entertainment that it affords the customer.

Again, a segment is unattractive when there are actual or potential substitutes for a product.

Rivalry
Firms strive to secure a competitive advantage over their rivals. The intensity of rivalry varies within each industry and these differences can be important in the development of strategy.

Industries that are “concentrated,” versus “fragmented,” often display the highest level of rivalry. Many,  recognize industry concentration and measure it by the “concentration ratio” (CR). A high concentration ratio indicates that a majority of market share is controlled by the largest firms. If a few firms hold a large market share, the competitive landscape is less competitive as it nears that of a monopoly. A low CR indicates that the industry has many rivals, none with significant market share. These fragmented markets are said to be competitive.

In pursuing an advantage over its rivals, a firm can choose from several competitive moves:

• Changing prices
• Improving product differentiation
• Creatively using channels of distribution
• Exploiting relationships with suppliers.

For example, the intensity of rivalry is increased by the following industry characteristics:

• Numerous competitors that are particularly strong or aggressive that are competing for the same customers and resources
• Declining sales revenues and volumes resulting in slow market growth, creating the need to actively fight for market share
• High fixed costs result in an economy of scale effect
• High storage costs or highly perishable products
• Plant capacity is being added, over and above what is needed to meet demand
• Low switching costs for buyers
• Low levels of product differentiation
• Strategic stakes are high when a firm is losing market position or has potential for great gains
• High exit barriers place a significant cost on abandoning the product
• A diversity of rivals with different cultures, histories, and philosophies
• An industry shakeout
• When a rival acts in a way that elicits a counter-response by other firms
• Competitors have high stakes – economic and other – and will battle to remain as a player within the segment.

These conditions will make competing within the industry more challenging, commonly leading to frequent price wars, advertising battles, and the addition of new products.

Service
Service can also play a part in the industry’s dynamics. Those competitors that provide superior service may bring an advantage to their competitive position if the industry/customer places value on this attribute. This is another point of differentiation and can be a key strategic element to consider. If a competitor has a service component that is difficult to replicate, it will prove to offer a strategic advantage.

The result
We can look at several industries and see how Porter’s Five Forces would depict them; the entertainment industry is in flux, telecommunications companies are volatile, computer firms are merging, utility industries are down, the housing market is up. Porter’s Five Forces can assist us to better understand these dynamics in a more objective manner and hopefully make better strategic decisions as a result.

The surprising truth about what motivates us

This video by Dan Pink provides a really insightful overview as to what motivates people. As leaders this is a critical considerations. Unless we can inspire and motivate people to follow and engage with the vision – leadership fails!

As was so effectively illustrated in this video, we tend to overly rely on monetary reward as the primary means to motivate people. Which can be a very blunt instrument. This is especially true of how we reward and motivate our leaders. high levels of monetary reward does not produce leadership! the best leaders are primarily motivated by purpose and mastery, rather than money.

What are your thoughts?

Can leadership be bought?

SWOT Analysis

This article is about putting SWOT together which stands for Strengths, Weaknesses, Opportunities and Threats.We are going to talk how to develop SWOT to help your organization. The SWOT matrix is 2 x 2 Matrix which is divided into 2 parts, first part made up of strengths and weaknesses and second part contains opportunities and threats.In SWOT matrix identify the strengths to capitalize, weaknesses to overcome, Opportunities to utilize or invest on it and  threats to defend.

The purpose of dividing to segregate the internal and external environment means the strengths and weaknesses are internal to the company and opportunities and threats are external to the company. The internal part of the matrix is under control of the organization and external part is not in control of organization, this point is super important keep it in the mind while developing SWOT matrix of your organization.

The internal strengths and weaknesses data are based upon organization capabilities,resources and processes on the other hand external opportunities and weaknesses data are based upon industry, competitors and environment. After compiling the information and placing in SWOT matrix can help the organization to define objectives, set goals and formulate strategies. The SWOT matrix is used to develop SO (Strength-Weaknesses), WO (Weakness – Opportunities), WT (Weaknesses – Threats),and ST (Strengths – Threats) Strategies.

What is That

Banking Company Financial Statements

How is a bank profit and loss statement different from a manufacturing company’s profit and loss account (P&L)?

As the name suggests, a manufacturing company manufactures a product. The cost involved in the process of manufacturing is the cost of goods. Other incidental costs like salaries, electricity and rent are clubbed under selling, general and administrative expenses. Upon the sale of the goods, net sales are recorded in the accounts. Unlike a manufacturing company, a bank does not manufacture anything. It’s an intermediary between a lender and a borrower. Therefore, it accepts deposits and lends advances. Hence, the two most important elements of a bank’s P&L are interest expense on deposits and interest earned on advances. In a manufacturing company’s P&L, other income is a trivial entry including one-off items like profit/loss on sale of assets. However, in a bank’s P&L, other income includes income from distribution of financial products, income from investment banking related activities, treasury gains and other fee incomes. While a manufacturing company makes a provision for bad customers, a bank makes provision for bad borrowers.

What are the factors that contribute to the bottom line of a bank?

As a bank’s business depends upon interest rate at which borrows and then lends it to borrowers, general level of interest in an economy plays a huge part in a bank’s performance. In a rising interest rate scenario, a bank often has to borrow at higher rate and is unable to shift the entire incremental cost of borrowing to its customers. So the percentage increase in interest expense is more than that in interest earned. And the difference between them, which is known as net interest income (NII) in banking parlance gets compressed. On the other hand, in a falling interest rate scenario, a bank normally improves its spread leading to high growth in NII. In a rising interest rate scenario, the market value of bank’s investments fall, as price of investment is inversely proportional to interest rate. So a bank has to book losses on investment. In Indian context, bank’s have made huge strides in increasing the share of non-fund based revenue, which includes revenue from distribution of insurance and mutual funds, revenue from investment bank related activities like debt syndication and etc. Such non-fund based revenue comes under other income, which contributes an important share to a bank’s bottom line today.

What are the key items that determine the efficiency of a bank?

Be it a bank or any other company, its efficiency is measured by how well it utilises its assets. So in a bank’s case return on assets (RoA) is very important measure to separate the wheat from the chaff. The return from assets should not come at the cost of comprising the asset quality. And therefore, what percentage of loan-book are non-performing assets (NPA) is another most important criterion. NPA is often expressed as a percentage of advances. Another important criterion to measure a bank’s efficiency is net interest margin (NIM), which is a measure of spread between the interest rate at which a bank’s lend and borrows. In Indian context, a 3% NIM is considered as a benchmark level. Among large banks, only a handful banks including HDFC Bank, Punjab National Bank & Axis Bank have been able to maintain that level of NIM. Banks improve their NIM by controlling their cost of funds, which in turn is done by improving the share of low cost current account and saving account (CASA) deposits in total deposits.

What are the other factors that display strengths or weaknesses of a bank?

A low NPA indicates high asset quality and vice versa. Apart from it, capital adequacy ratio (CAR) shows whether the bank has sufficient capital to grow in short to medium term. Since banking is a capital-intensive business, the regulator requires banks to maintain a minimum percentage of their assets as capital. As per Reserve Bank of India (RBI) regulation, Indian banks have to maintain a minimum CAR of 9%. Most of the Indian banks meet this regulatory requirement. A capital adequacy ratio of higher than 9% indicates that the bank has sufficient capital to grow for sometime without bothering to raise more funds. So a high CAR provides a kind of cushion to the bankers.

Some hidden information contained in famous logos

Amazon.com

This logo doesnt seem to hide much at first sight, but it gives you a little insight in the philosophy behind the brand. First of all, the yellow swoosh looks like a smile: Amazon.com want to have the best customer satisfaction. The swoosh also connects the letters a and z, meaning that this store has everything from a to z.

Fedex

This is probably one of the best known logos with a hidden meaning. If you look closely, youll see an arrow thats formed by the letters E and x. This arrow symbolizes speed and precision, two major selling points of this company.

Continental

Continental is a manufacturer of tyres. You could actually see this in their logo, because the first two letters create a 3-dimensional tyre.

Toblerone

Toblerone is a chocolate-company from Bern , Switzerland . Bern is sometimes called The City Of Bears. They have incorporated this idea in the Toblerone logo, because if you look closely, youll see the silhouette of a bear.

Baskin Robins

The old logo of Baskin Robbins had the number 31 with an arc above it. The new logo took this idea to the next level. The pink parts of the BR still form the number 31, a reference to the 31 flavours.

Sony Vaio

Sony Vaio is a well known brand of laptops. But did you know that the name Vaio logo also had a hidden meaning? Well, the first two letters represent the basic analogue signal. The last two letters look like a 1 and 0, representing the digital signal.

Carrefour

Carrefour is one of the biggest European retailers, and its also French for crossroads. The logo symbolizes this word via two opposite arrows. They also added the first letter of the name, because if you look closely youll see the letter C in the negative space between the two arrows.

Unilever

Unilever is one of the biggest producers of food, beverages, cleaning agents and personal care products. They produce a huge amount of different products and they wanted to reflect this in their logo. Each part of the logo has a meaning. For example: the heart represents love, care and health - feeling good, a bird is a symbol of freedom. Relief from daily chores “ getting more out of life.

Formula 1

At first, this logo might not make much sense. But if you look closely, youll see the number 1 in the negative space between the F and the red stripes. I also love how this logo communicates a feeling of speed.

Sun Microsystems

The Sun logo is one of the most famous ambigrams in the world. You can read the brand name in every direction; both horizontally and vertically. This logo was designed by professor Vaughan Pratt of the Stanford University .

NBC

The NBC (National Broadcasting Company) is one of the biggest American television networks. I think most of you have already seen the peacock in this logo. The peacock has 6 different tail feathers, referring to the six divisions at the time that this logo was created. The peacocks head is flipped to the right to suggest it was looking forward, not back.

10 important things a business plan should ideally contain

http://pritzone.blogspot.com/2010/08/10-important-things-business-plan.html[1] The first thing to consider for a good business plan is size of the market. What speed is it growing at. How large a pie of this market can your product/service capture?
[2] Problem statement. What is the problem you are solving, who's your customer, where do you see yourself in five years?
[3] Description of the key people in your company — their past successes and area of expertise
[4] What is the product/service you are offering? How does it help? What's unique about it? Describe the tech
[5] Describe your business model? Quantify benefits to customers? How much can you charge?
[6] What stage of development are you at? What is the plan going forward?
[7] What is your go-to-market strategy? Any backup plans?
[8] Who are the current or future players in this market? How are you different? Are their any barriers to entry?
[9] Yearly financial projections up to five years which should be optimistic but realistic
[10] How much money are you looking to raise? How long will it last? What will it be used for?

Warren Buffett: Stock Market advice

Tips and advice for smart investors by Warren Buffet:

1. Beware of companies displaying weak accounting.

2. Unintelligible footnotes usually indicate untrustworthy management.

3. Be suspicious of companies that trumpet earnings projections and growth expectations.

4. Suspect those CEOs who regularly claim they do know the future –and we become downright incredulous if they consistently reach their declared targets.

5. Managers that always promise to “make the numbers” will at some point be tempted to make up the numbers.

6. Derivatives are financial weapons of mass destruction.

7. A director whose moderate income is heavily dependent on directors’ fees is highly unlikely to offend a CEO or fellow directors, who in a major way will determine his reputation in corporate circles.

8. If regulators believe that “significant” money taints independence (and it certainly can), they have overlooked a massive class of possible offenders. (referring to outside directors)

Those attributes are two legs of our “entrance” strategy, the third being a sensible purchase price. We have no exit to strategy –we buy to keep.

That is one reason why Berkshire is usually the first- and sometimes the only –choice for sellers and their managers.

This is the synopsis of Warren Buffet speech in 2003.

Basics of Demat Account

What is a demat account? What securities can I hold in my demat account ?
Today,to buy and sell securities,brokers insist on having a demat account.Just as you open a bank account to hold money and make payments,similarly you need to open a demat account now to buy and sell securities in the financial markets.Today,all trades are settled in dematerialised form i.e.in the form of electronic records rather than certificates.Physical securities carry the risk of being stolen,forged or faked,and hence,it is necessary for investors to trade in demat form.A demat account can be used not only to hold shares,but also mutual funds,debentures and exchange-traded funds (ETFs).Hence,it is essential to have a demat account.
How does one convert physical shares into demat form ?
If you are holding shares in physical form,it is advisable to convert them into dematerialised form.To get your shares dematerialised,you have to open a demat account and get into an agreement with a depository participant (DP).You need to surrender your physical share certificates to the company which issued them,informing them and giving details of your agreement with your depository participant.On the basis of this,the company would cancel your certificates and register your shareholdings in the name of your depository participant as the registered owner of those shares and intimate this registration through a notice to your depository participant.On receipt of the aforesaid notice from the company,the depository participant would register you as the beneficial owner of those shares.As a registered owner,your depository participant has no rights of benefits from those shares.All rights would lie with you as the beneficial owner.
With whom can you open a demat account ?
You can open a demat account with any depository participant which could be a bank or even a stock broker having the licence to do so depending on your convenience.A broker is separate from a DP.A broker is a member of the stock exchange who buys and sells shares on his behalf and on behalf of his clients,though he could also hold a licence to provide depository services.A DP will just give you an account to hold those shares.It is not necessary for you to open a DP account with your broker.Your account can be different from that of the broker.Many brokers also offer you three-in-one trading accounts which link your broking,demat and bank accounts online,thus making it easier for you to trade.To view a complete list of registered depository participants,you can visit the websites of NSDL and CDSL.
What are the charges incurred in a demat account ?
Various entities could levy various charges while operating a demat account.Broadly,there are three kinds of charges which a depository participant can levy.The first is an account opening charge,which also covers the cost of the agreement with the depository participant.The second is the annual maintenance charge to maintain your account and send you statements on a regular basis.The third charge is the transaction charge which is charged every time you sell a security,and request the DP to move it from your account to the brokers account.

Basics of Capital Adequacy Ratio (CAR)

What is Capital Adequacy Ratio
It is the measure of a banks financial strength expressed by the ratio of its capital (net worth and subordinated debt) to its risk-weighted credit exposure (loans).It is also called CRAR-Capital to Risk-weighted Assets Ratio.The Reserve Bank of India (RBI),currently prescribes a minimum capital of 9% of risk-weighted assets,which is higher than the internationally prescribed percentage of 8%.Most banks in India have a capital adequacy of more than 12 %.A bank with a higher capital adequacy is considered safer because if its loans go bad,it can make up for it from its net worth.
What does Tier-I capital mean
Tier-I capital is also referred to as core capital.This includes equity capital and disclosed reserves.This component of a banks capital essentially serves the purpose of absorbing losses without a bank requiring to cease trading.Tier-II capital,secondary capital of a bank,consists of undisclosed reserves,general loss reserves,subordinate term debts which can absorb losses in the event of a winding-up,and thus providing a lesser degree of protection to depositors.
Why do banks have to maintain CAR
CAR is the ratio that measures a banks capacity to meet time liabilities and risks likeoperational risks,credit risks and other risks.Indias bank regulator,RBI,has prescribed a minimum ratio to be maintained by the banking system.This is done because the depositors are secured about their deposits and banks have a cushion for their potential losses.In the face of the financial crises seen in the last few years,maintenance of CAR is mandated by the regulatory authorities to protect the depositors.
What is risk weighting
Every financial asset carries a risk.The extent of risk,however,varies.For instance,government bonds carry almost no risk while loans to government-promoted companies carry some risk.On the other hand,loans to a corporate carry 100% risk weighted as the entire loan is exposed to risk.Degrees of credit risk expressed as percentage weights have been assigned by RBI to each such asset.
How are risk weight assigned
Different types of assets have different profiles in risk value.CAR primarily adjusts for assets that are less risky by allowing banks to discount lower-risk assets.The specifics of CAR calculation vary from country to country.In the most basic application,government debt is allowed a 0% risk weighting that is,they are subtracted from total assets for purposes of calculating the CAR

LIFE = RISK

Increase Motivation

If you want to make things happen the ability to motivate yourself and others is a crucial skill. At work, home, and everywhere in between, people use motivation to get results. Motivation requires a delicate balance of communication, structure, and incentives. These 20 tactics will help you maximize motivation in yourself and others.



Motivation

1. Consequences – Never use threats. They’ll turn people against you. But making people aware of the negative consequences of not getting results (for everyone involved) can have a big impact. This one is also big for self motivation. If you don’t get your act together, will you ever get what you want?

2. Pleasure – This is the old carrot on a stick technique. Providing pleasurable rewards creates eager and productive people.

3. Performance incentives – Appeal to people’s selfish nature. Give them the opportunity to earn more for themselves by earning more for you.

4. Detailed instructions – If you want a specific result, give specific instructions. People work better when they know exactly what’s expected.

5. Short and long term goals – Use both short and long term goals to guide the action process and create an overall philosophy.

6. Kindness – Get people on your side and they’ll want to help you. Piss them off and they’ll do everything they can to screw you over.

7. Deadlines – Many people are most productive right before a big deadline. They also have a hard time focusing until that deadline is looming overhead. Use this to your advantage by setting up a series of mini-deadlines building up to an end result.

8. Team Spirit – Create an environment of camaraderie. People work more effectively when they feel like part of team — they don’t want to let others down.

9. Recognize achievement – Make a point to recognize achievements one-on-one and also in group settings. People like to see that their work isn’t being ignored.

10. Personal stake – Think about the personal stake of others. What do they need? By understanding this you’ll be able to keep people happy and productive.

11. Concentrate on outcomes – No one likes to work with someone standing over their shoulder. Focus on outcomes — make it clear what you want and cut people loose to get it done on their own.

12. Trust and Respect – Give people the trust and respect they deserve and they’ll respond to requests much more favorably.

13. Create challenges – People are happy when they’re progressing towards a goal. Give them the opportunity to face new and difficult problems and they’ll be more enthusiastic.

14. Let people be creative – Don’t expect everyone to do things your way. Allowing people to be creative creates a more optimistic environment and can lead to awesome new ideas.

15. Constructive criticism – Often people don’t realize what they’re doing wrong. Let them know. Most people want to improve and will make an effort once they know how to do it.

16. Demand improvement – Don’t let people stagnate. Each time someone advances raise the bar a little higher (especially for yourself).

17. Make it fun – Work is most enjoyable when it doesn’t feel like work at all. Let people have fun and the positive environment will lead to better results.

18. Create opportunities – Give people the opportunity to advance. Let them know that hard work will pay off.

19. Communication – Keep the communication channels open. By being aware of potential problems you can fix them before a serious dispute arises.

20. Make it stimulating – Mix it up. Don’t ask people to do the same boring tasks all the time. A stimulating environment creates enthusiasm and the opportunity for “big picture” thinking.

Master these key points and you’ll increase motivation with a bit of hard work.

Bouncing Back Quickly, Powerfully

Disasters and deep disappointments are an inevitable part of life. Here are secrets to bouncing back quickly and powerfully:

Focus on Fixes – What can you do to correct the problem, ensure it doesn’t happen again, gain from your pain, learn, grow, strengthen your skills and insights to build happiness and future success?

Don’t Beat Yourself Up, Blame, Complain or Criticize! Focusing on where you are now and what’s wrong keeps you stuck in the problem and miserable. Focusing on what you want to do differently and where you want to go in the future helps you grow and achieve it.

We don’t feel better by blaming, beating ourselves up or by focusing on problems. Beating ourselves up reinforces errors we want to avoid. It focuses time and attention on what’s wrong, not on building new skills and strategies that bring happiness and future success.

We Bounce Back by embracing our goals, our Best Selves and by focusing on what we want to achieve and do differently and then working hard to attain it.

Turn Anguish Into Achievement – Turn anger, regret and anguish into positive actions that improve the situation and help you to be happy and more effective in the future.

Worrying about problems is very different from solving or resolving problems. Regret and remorse do not bring reform. Desire and Determination To Do Things Differently Bring Positive Change.

Ask yourself, Is being upset helping me to fix the problem or to be more effective in the future? How long do I want to be upset? How miserable do I want to be and for how long?

Rebounding Rapidly: Think about how will you feel when the problem is behind you, when you have successfully rebounded. Visualize yourself successfully recovered from the problem. Feel those powerful positive feelings, embrace and project them. Practice feeling and being in rebound mode until it becomes habit.

Our Best: We are truly at our best and able to perform our best when we are UP, confident, energized, focused and happy. Don’t tear yourself down, distract or distress yourself. Don’t detract from your ability to excel and do well.

Bad things happen but they don’t have to make you miserable.

See yourself at your best, feel those powerful, confident feelings and project them. They will become genuinely yours.