E-mail Marketing

Search Engine Marketing (SEM) and E-mail Marketing (EMM) is becoming the latest sort out marketing tool for companies because of the increasing cost of print and broadcast marketing. E-Mail Marketing is quickly becoming the in advertising industry a preferred cost effective medium for reaching, targeting, and selling to businesses and consumers. Online advertising companies like Google and Yahoo! have proved this to businesses worldwide, as well as their investors have started utilizing Search Engine Marketing and E-mail marketing thereby generating a healthy profit. Companies and organizations are always in search for a medium to save money and reduce the sale cycle. This objective could be certainly be achieved to a great extent by E-mail marketing as it saves time and resources for retailers by sending electronic messages in a timely order, to their in-house customers.

As other marketing tools, for E-mail marketing also certain strategies have to be followed to ensure its success for a business venture. It is the web site is where sale is made but the email is what that would bring customers to the website.
(Image source: Ccmkt.com)

Total Quality Management

Total Quality Management (TQM) is an organized approach for quality improvement along together with product and service specifications to customer performance. TQM is applying to target producing these specifications with zero defects. This makes a worthy cycle of constant improvement for production, customer satisfaction and profits.

Total Quality Management (TQM) is not only adopted by a single person or an employee but all employees can become involved (including top management to shop floor management, in other words total or complete involvement, hence, Total) for the continuous improvement of the production of goods and services within the framework of organizations to strive for excellence in everything they do to achieve best quality standards (customer satisfaction to the quality, hence, Quality) by it’s integrated well-managed (quality can and must be managed with best practiced system or tools hence, Management) system of various best practiced principles, methods. In other words, it is a combination of quality and management tools intended for maximizing business, profits and cut down inefficient applications.

Total Quality Management is both a management philosophy and a set of principles that ask for integration of all organizational functions (marketing, finance, design, engineering, and production, customer service, etc, i.e. from top level to bottom line.) to focus on meeting customer needs and organizational objectives.

The simple aim of TQM is "Do the right things, right the first time, every time".

(Image source: Ehow.com)

Dual-class Share Structure

Until recently, corporate governance practices were not considered to have a major impact on a company’s financial performance; as a consequence, they drew little attention from investors. However, recent corporate scandals such have prompted investors to put a greater premium on transparency, accountability, and other sound governance practices. These scandals illustrate how the absence of effective corporate control can put a company and its investors at great risk – a matter of particular importance in Canada, where 46% of the population owns shares, whether directly or indirectly via mutual funds or superannuation funds. Today, higher standards of corporate governance are becoming obligatory for public companies wanting to maintain investor confidence and improve long-term performance.

Broadly, corporate governance systems comprise the framework of rules, relationships, systems and processes an organization has in place for overseeing its direction and management. An important aspect of best practices in corporate governance deals with shareholder rights. This article discusses shareholder rights, focusing on the issues raised by dual-class share structures.

Many company founders wish to avoid the dilution of control that normally accompanies the public issuance of shares. One mechanism at their disposal is to issue different classes of shares that confer different voting rights on the holder. These are known as dual-class share structures, or, alternatively, as restricted- or subordinate-voting share structures. Note that this is substantially different from the situation where one group of shareholders or a single shareholder holds a significantly large share position to control the company. In this latter case, control is proportionate to the financial risk conferred by share ownership. In contrast, dual-class share structures alter the normal 1:1 relationship between cash flow rights and voting rights.

A wide range of dual-class structures exist. In some cases, the superior class allows multiple votes per share; in others, the superior class carries only a single vote per share while the inferior shares are non-voting. Restricted-voting structures that confer special voting rights on the superior-class shareholder, such as the right to elect a certain number of board members or approve executive compensation plans, are also possible. So are various other types of dual-class structures. Essentially, the term covers any structure that confers a disproportionate amount of control on one group of shareholders in relation to their equity participation in the company.
(Source: Parliament of Canada)
(Photo Credit: Andrzej Pobiedzinski)

Dubai seeks a reprieve on its debts

Investors in Dubai were given an early chance to get into the spirit of things. The emirate’s government asked creditors of Dubai World, one of three big government-backed conglomerates, to agree to a standstill on repayments until May 30th 2010 at the earliest.

Dubai’s debts are heavy, amounting to about $80 billion including the government and the conglomerates it controls. Investors had half-expected Dubai World to seek forbearance from its bankers, asking them to extend their loans. But they felt sure the emirate would make good on publicly traded instruments, and in particular Nakheel’s sukuk (Islamic bond), rather than suffer further damage to its financial reputation.

Credit-rating agencies quickly downgraded all government-related debt. Whether the standstill counts as a default depends on whether Dubai is asking investors to defer their claims or telling them to. If push comes to shove, the emirate surely has the means to satisfy many of them. It raised $10 billion from Abu Dhabi, its wealthier neighbour, in February. And hours before it requested a standstill, it said it had raised another $5 billion from two Abu Dhabi banks, although only a portion of that was available immediately.

These bail-out funds flow to the Dubai Financial Support Fund, a committee which is overseeing the restructuring of Dubai’s indebted companies. Dubai has to borrow to finance its future. As the recovery takes hold, it will make money again from its property, tourism, trade and financial industries.
(From The Economist)

Customers have the Power

Today’s consumers have more buying power then ever before and are generally less tolerant because of the increased time pressure inherent in today’s lifestyles.

They are more aware of environmental and human rights issues and have higher quality expectations. They demand greater variety and more frequent changes in the choices available to them, and they expect instant availability of the exact matching set of garments and accessories in the desired color and size combinations in the same store.

Retailers are first in line in terms of meeting consumer demands, but all companies in the supply chain are driven by the necessity to anticipate and meet the needs of their customers. From design through production to the final sale, all members of the supply chain need to ensure that stores are stocked with the right goods when the consumer wants to buy!

The companies that are responsive to customer demands are those that will remain profitable in an environment of fierce global competition and escalating material and operational costs.

Do grades reflect true ability of an individual?

I feel that grades do not actually reveal the true ability of any individual. Grades are one of the ways of testing the knowledge but not a complete and correct way of deciding the capability of the students.

Though I highly respect those who score high and work towards good scores; I wonder if scores / grades truly reflect one’s full potential in profession or life! I’m not saying it’s a ‘must have’ and I’m not saying it’s a ‘nice to have’; my point is that it’s just one of those minimum requirements and should be treated as just like that!

Our exams are like the ODI games in cricket. We know that all the players have the ability and the potential, but not all the players perform well in a given day. Does this mean that the players who do not perform do not have the ability? So I want you all to share your thoughts on this...

Stop Innovating......Start Minnovating

If we want more entrepreneurs, stop worrying about jumpstarting innovation. Focus on "minnovation." That is what some of the experts are saying which I saw in a recent article. So if you do not agree with the statement....no problem as these are not my words. But I believe whatever is mentioned in that article and that's why I am posting it in my blog.

In reality, the vast majority of real-life entrepreneurs around the world aren't innovators. They're minnovators — mixing small parts of novelty and creativity with huge helpings of flexibility scrappiness and a generous portion of hard-driving execution.

Public officials from Colombia to New Zealand are hoping to create the next Silicon Valley by building modern "innovation centers" for entrepreneurs. But that tactic may unwittingly backfire: overemphasis on innovation as the pillar of entrepreneurship could actually stunt entrepreneurial growth. Some potential entrepreneurs, who think entrepreneurship is only about innovation, don't even bother trying because they know their chances of being the next Bill Gates or Steve Jobs are nil.

You don't need to have a Ph.D., a team of engineers, a wall of patents, or even the proverbial garage. More often than not you need that little twist on an existing idea, the tweak of the business model, the minor product adaptation, or even just the ability to put together and lead a fantastic team that is supremely resourceful in overcoming obstacles and driving the tweaked idea to market.

It's time for a generation of minnovators to emerge.

Simplifying Financial Regulation

Unfortunately, over the past year the financial regulatory system has been extremely visible, and not in a good way. As the post-mortems on the economic downturn continue, regulatory bodies are being put in the spotlight. Why didn't they prevent the crisis or at least send early warning signals? How did the examiners allow institutions such as Lehman Brothers, AIG, Bear Stearns, and Citibank to assume so much risk? How did various Ponzi schemers slip through the regulatory nets for so many years?

Even at the Securities Industry and Financial Markets Association's annual conference in New York, the head of the SEC, Mary Schapiro, said, "the right questions were not asked...to mitigate the risk before we coasted to the brink."

Given the chorus of criticisms, momentum is building to fix or change the financial regulatory framework. Many are calling for new regulations and new regulatory bodies, such as a consumer protection agency. Others are suggesting that all of the regulatory agencies be combined into some sort of "super regulator." Another suggestion is to give new powers to existing bodies to fill some of the gaps in regulating hedge funds or new financial products. There's also a movement afoot to create a "systemic regulator" that will look at issues that cut across the entire financial system.

Clearly not all of these reform proposals will be developed or enacted. But before rushing into any of them, it may be useful to step back and think about simplifying the system, rather than just reforming it.
(From Harvard Business Review)

Food Inflation

Riding on the back of rising prices of staple items like potatoes, onions and pulses, food inflation rose to 14.55 per cent in the first week of November in India. In what could give a sense of sky rocketing of food prices, there is no item on the list considered in the data that has shown a declining trend on a yearly basis. I think now the governments need to do two things: invest in the productive capacity of agriculture and improve the operation of food markets. So far they have done one but not the other and this is the need of the hour to check food prices going up.

In a recent article published in 'The Economist' on ‘How to feed the world’, it has been mentioned that it may be too late to avoid another bout of price rises. Despite a global recession and the largest grain harvest on record in 2008, food prices are heading up again. Boosting world food production without gobbling up land and water will also require technology to play a larger role in the coming years. Between now and 2050 the world’s population will rise by a third, but demand for agricultural goods will rise by 70%. But this will have to happen without farmers clearing large amounts of new land as there is very little scope for expansion.

So now it is the time to rethink!!!

A yuan-sided argument

Why China resists foreign demands to revalue its currency? An interesting point which I am sure must be waving around in everybody’s mind. There is an article published recently in ‘The Economist’ which I am posting below. Lot of arguments and counter arguments on the issue are covered in the article. But after reading the article, I am in a fix to decide what or who is RIGHT….I want you to post your comments after reading it. Enjoy reading.

PRESIDENT Barack Obama, on his first visit to China, urged the government to allow its currency to rise. President Hu Jintao politely chose to ignore him. In recent weeks Jean-Claude Trichet, the president of the European Central Bank, and Dominique Strauss-Kahn, the managing director of the International Monetary Fund, have also called for a stronger yuan. But China will adjust its currency only when it sees fit, not in response to foreign pressure.

China allowed the yuan to rise by 21% against the dollar in the three years to July 2008, but since then it has more or less kept the rate fixed. As a result, the yuan’s trade-weighted value has been dragged down this year by the sickly dollar, while many other currencies have soared. Since March the Brazilian real and the South Korean won have gained 42% and 36% respectively against the yuan, seriously eroding those countries’ competitiveness.

Speculation about a change in China’s currency policy increased in the week before Mr Obama’s visit, after the People’s Bank of China tweaked the usual wording in its quarterly monetary-policy report. It dropped a phrase about keeping the yuan “basically stable” and added that foreign-exchange policy will take into account “international capital flows and changes in major currencies”. But exchange-rate policy is decided by the State Council, not the central bank. And many policymakers, notably in the Ministry of Commerce, do not favour a revaluation right now.

Indeed, Chinese officials have become bolder in standing up to Washington. “We don’t think that it’s good for the world economic recovery, and it is also unfair, that you ask others to appreciate while you depreciate your own currency,” said a spokesman for the Ministry of Commerce on November 16th. The previous day Liu Mingkang, China’s chief banking regulator, blasted Washington for its low interest rates and for the falling dollar, which, he claimed, was encouraging a dollar carry trade and global asset-price bubbles. He strangely ignored the fact that China’s own overly lax monetary policy, partly the result of its fixed exchange rate, is fuelling bubbles in shares and property.

Foreigners argue that a stronger yuan would not only help reduce global imbalances, such as America’s trade deficit, but would also benefit China. It would help China regain control of its monetary policy. By pegging to the dollar, it is, in effect, importing America’s monetary policy, which is too loose for China’s fast growing economy. A stronger yuan would also help rebalance China’s economy, making it less dependent on exports, putting future growth on a more sustainable path.

If a stronger exchange rate is in China’s own interest, why does it resist? Beijing rejects the accusation that its exchange-rate policy has given it an unfair advantage. It is true that other emerging-market currencies have risen sharply this year, but this ignores the full picture. Last year China held its currency steady against the dollar throughout the global financial crisis, while others tumbled. Since the start of 2008, the yuan has actually risen against every currency except the yen.

Beijing also argues that it has done a lot to help global rebalancing. Thanks to its monetary and fiscal stimulus, domestic demand has contributed an incredible 12 percentage points to GDP growth this year, while net exports subtracted almost four percentage points. Its current-account surplus has almost halved to around 6% of GDP from 11% in 2007. Chinese policymakers accept that the yuan needs to appreciate over the longer term, but say now is the wrong time, because exports are still falling, by 14% over the past 12 months.

Another reason for hesitation is that the theory that revaluing the yuan will allow Beijing to tighten its monetary policy is too simplistic. China’s experience since 2005 shows that a gradual rise encourages investors to bet on further appreciation; hot-money inflows then swell domestic liquidity. A large one-off increase might work, as it would stem expectations of a further rise. But the sort of increase required—perhaps 25%—is politically unacceptable because it would put many exporters out of business overnight.

Some Chinese economists warn that the benefits to America from yuan revaluation are much exaggerated. In particular, a stronger yuan would not significantly reduce America’s trade deficit. There is little overlap between American and Chinese production, so American goods cannot replace Chinese imports. Instead, consumers would simply end up paying more for imports either from China or other producers, such as Vietnam. This would be like imposing a tax on American consumers.

These arguments help explain why China is dragging its feet. Nevertheless, in the long run, a stronger yuan would benefit China’s economy—and the world’s—by helping shift growth from investment and exports towards consumption. It would boost consumers’ purchasing power and squeeze corporate profits, which have accounted for most of the increase in China’s excessive domestic saving in recent years. China will probably allow the yuan to start rising again early next year. This will not be the result of foreign lobbying—indeed, China is more likely to change its policy if foreign policymakers shut up. But by early next year China’s exports should be growing again, its year-on-year GDP growth could be close to 10%, and its inflation rate will have turned positive. The arguments in favour of revaluation will then loom much larger.

SWOT Analysis

SWOT is a handy mnemonic to help corporate planners think about strategy. It stands for Strengths, Weaknesses, Opportunities and Threats. What are an organisation’s SWOTs? How can it manage them in a way that will optimise its performance? A second four-letter acronym is sometimes brought into play here: USED. How can the Strengths be Used; the Weaknesses be Stopped, the Opportunities be Exploited; and the Threats be Defended against?

The process starts by listing a firm’s attributes under the four headings; a particular strength, for example, might be a dedicated workforce or some currently valuable patent. These are then given scores according to what is seen as likely to be the company’s business environment over the next few years. If a recession is beginning and employees have to be laid off, a dedicated workforce might be a weakness. If a boom is about to begin, however, it will be a strength.

The four features can be divided along two main dimensions:

• Internal/external - The internal features are the company’s own strengths and weaknesses. Analysing them is a matter of analysing the state of the company. They are things that already exist. The external features are the organisation’s opportunities and the threats to its future performance. These exist only on the horizon, and they are less easy to assess and measure. They arise from things like changes in technology, demography or government policy.

• Positive/negative - The positive things are the strengths and opportunities; the negative ones are the threats and weaknesses.

A SWOT analysis can be applied to different aspects of a company’s business, such as its it capability or its skills. The simplicity and intuitive wholeness of the framework have helped to make it extremely popular with both corporations and governments. An analysis of the competitive advantages and disadvantages of Germany in 1999 found that the country’s strengths lay in its educated and skilled workforce. Among its weaknesses were its high labour and social costs.

Nevertheless, there has been no shortage of critics. One of the main criticisms is that, in the end, such an analysis invariably relies on subjective judgments. Objective measures of all the ingredients in the balance simply do not exist. Some say that this does not matter, because the process of doing the analysis is more important and revealing than the results of the analysis themselves. The journey is more important than the destination.
(From The Economist)

Strategic Alliance

Alliances are often said to be like marriages

A strategic alliance is a relationship between two or more organisations that falls somewhere between the extremes of an arm’s-length sourcing arrangement on the one hand, and a full-blown acquisition on the other. It embraces things such as franchising, licensing and joint ventures.

Booz Allen & Hamilton, a firm of management consultants and an acknowledged expert in the field, defines a strategic alliance as:

A cooperative arrangement between two or more companies in which:
• A common strategy is developed in unison and a win-win attitude is adopted by all parties;
• The relationship is reciprocal, with each partner prepared to share specific strengths with the other, thus lending power to the enterprise;
• A pooling of resources, investment and risks occurs for mutual gain;

In general, there are two types of strategic alliance: a bilateral alliance (between two organisations) and a network alliance (between several organisations). Strategic alliances have many advantages: they require little immediate financial commitment; they allow companies to put their toes into new markets before they get soaked; and they offer a quiet retreat should a venture not work out as the partners had hoped. However, going into something knowing that it is (literally) not a big deal, and that there is a face-saving exit route, may not be the best way to make those charged with running it hungry for success.

The most popular use for alliances is as a means to try out a foreign market. Not surprisingly, therefore, there are more alliances in Europe and Asia (where there are more foreign markets nearby) than in the United States. In some cases, alliances are used by companies because other means of entering a market are closed to them. Hence there have been many in the airline industry, where governments are sensitive about domestic carriers falling into foreign hands.

One thing crucial to a successful alliance is a degree of cultural compatibility. Companies are advised, for example, to pick on someone their own size. Alliances between the very big and the very small are hard to operate not least because of the different significance that the alliance assumes in each organisation’s scale of things.

Alliances are often said to be like marriages. The partners have to understand each other’s expectations, be sensitive to each other’s changes of mood and not be too surprised if their partnership ends in divorce. Indeed, many companies build into their alliances a sort of prenuptial contract, an agreement as to what is to happen to their joint property in the event of a subsequent divorce.
(From The Economist)

Energize Your Customers Online

Competing for your customers' attention online can be tough, especially when you're up against dancing banner ads and all of the daily emails customers get. Here are three tips to cut through the clutter and capture your customers' attention in this crowded space:

Create a sense of urgency - Send out a coupon that needs to be used by midnight or offer a free product to the first 50 respondents.

Energize your customers to tell their friends - Word of mouth is incredibly powerful and valuable, especially on the internet. Give your customers something exciting that they'll want to share with their friends.

Make it fun - Whatever the interaction is, keep it simple, fresh, and engaging.

Is really the economy improving?

There are now lots of news in the air about economic improvements. How far it is true? We should take a very close look to understand if it is really improving or not. Recently I came across an interesting article in 'Business Recorder' which I have mentioned below and after reading this I want you to take the decision - 'Is really the economy improving?'

On the global economic and financial front, China, the world s third largest economy is in fact booming while other Asian and Far Eastern countries like Hong Kong, South Korea, Australia and several other countries are also following the trail. However, there are fears that this progress is essentially stimulus based as the national treasuries of several countries are fearfully prodigal and are lavishing large sums of monies to prop up their economies beyond normal rationale.

Besides possibly breeding inflation, there is a perceived tendency for the banks to lend monies for investment in equity markets which appear to be moving up without being in sync with the ground realities pertaining to economic growth or rehabilitation. Thus there are fears that asset creation may have been achieved by liberal and often unwarranted and unchecked lending to investors who are not really investing in productive ventures but may be just speculating.

In this context, World Bank president Robert Zoellick has said in a defining statement that already asset bubbles are forming in certain economies and property prices are also rising which should make us more cautious about the future course of economic functioning and restitution around the globe.

Therefore, it would now be reasonable to think that further financial stimuli by the leading economies of the world may create undesirable or harmful liquidity while several countries have already mortgaged the future of its citizens by lending out extravagantly.

Leadership

What Makes a Leader?
(By Daniel Goleman)
When asked to define the ideal leader, many would emphasize traits such as intelligence, toughness, determination, and vision — the qualities traditionally associated with leadership. Often left off the list are softer, more personal qualities — but they are also essential. Although a certain degree of analytical and technical skill is a minimum requirement for success, studies indicate that emotional intelligence may be the key attribute that distinguishes outstanding performers from those who are merely adequate.

What Leaders Really Do?
(By John P. Kotter)
Most corporations today are overmanaged and underled. They need to develop their capacity to exercise leadership. Successful corporations don't wait for leaders to come along. They actively seek out people with leadership potential and expose them to career experiences designed to develop that potential.

The Work of Leadership
(By Ronald A. Heifetz and Donald K. Laurie)
More and more companies today are facing adaptive challenges: Changes in societies, markets, and technologies around the globe constantly force businesses to clarify their values, develop new strategies, and learn new ways to operate. The most important task for leaders in the face of such challenges is mobilizing people throughout their organizations to do adaptive work.

Why Should Anyone Be Led by You?
(By Rob Goffee and Gareth Jones)
We all know that leaders need vision and energy, but after an exhaustive review of the most influential theories on leadership — as well as workshops with thousands of leaders and aspiring leaders — it is learned that great leaders also share some unexpected qualities.

Crucibles of Leadership
(By Warren G. Bennis and Robert J. Thomas)
What makes a great leader? Why do some people appear to know instinctively how to inspire employees — bringing out their confidence, loyalty, and dedication — whereas others flounder again and again? No simple formula can explain how great leaders come to be, but Bennis and Thomas believe it has something to do with the ways people handle adversity. Research suggests that one of the most reliable indicators and predictors of true leadership is the ability to learn from even the most negative experiences.

Segmentation

The idea of segmentation has spread beyond its consumer origins

Segmentation is the process of slicing a market for a particular product or service into a number of different segments. The segments are usually based on factors such as demographics, beliefs or the occasion of use of the product. One segment of the market for video cameras, for instance, might be the group of people who have new-born babies. Another could be the group of people visiting relatives who live abroad.

Once different segments of a market have been identified, suppliers to that market can target their advertising and promotional efforts more accurately and more profitably. Different segments can be reached through the most appropriate channel: parents of new-borns through ante-natal clinics, for instance, and foreign travellers through airlines’ websites.

Each market segment represents a group of potential customers with common characteristics. In consumer markets, segmentation is usually based on the following:

• Demographic factors - Gender, age, family size, and so on.

• Geography - In most countries there are marked differences in the consumer preferences of different regions. The consumption of wine in the north of England, for example, is very different from that in the south.

• Social factors - One classic segmentation is by income and occupation, but this is proving to be less and less useful. There are a lot of extremely wealthy people who do not spend much, and vice versa. So the focus is shifting to lifestyle. In recent years, marketers have become more interested in categorising consumers as “generation Xers” or “the millennial generation” rather than by the size of their bank accounts. Consumers are thought to have more in common with people from the same generation than with any other grouping.

Industrial markets have been notoriously more difficult to segment than consumer markets. Firms find it hard to decide which factors are most useful for categorising their corporate clients. Should it be size, industry sector, or geography? Computer-maker Hewlett-Packard segmented its big industrial customers into five categories based on the value of their purchases and the complexity of their IT systems.

Segmentation was in part a reaction against the mass-marketing tactics sparked off by Henry Ford when he said that customers could buy his Model T car “in any colour as long as it’s black”. Many of its classifications, however, have proved to be of little use. Baby boomers have been found to have little more in common than their defining characteristic: a birthdate in the years following the second world war. John Forsyth, a consultant, wrote in McKinsey Quarterly in 1999.

The internet promises to provide new opportunities for segmentation. It offers continuous opportunities to capture information about customer behaviour. Consumers identify themselves and their characteristics by their electronic participation in particular interest groups, and by their general online behaviour.

(The Economist)

Key point for Communication

Let’s start with the famous quote - "Great Communicators Are Great Explainers" by John Baldoni.

Good communicators know they need to use energy and enthusiasm to persuade their audience. Great communicators know they also need to explain what all the excitement is about. Next time you need to share something important, be sure you convey enthusiasm, but also clearly explain what is at stake and answer the question "What does it mean?" Lay out what the issue, initiative, or problem is — and be clear about what it isn't. Use metaphors only if they are helpful to your point and share details that support your claims. Then, define what you want people to do by establishing clear expectations. Don't lose or confuse your audience with too many details, though — save those for written communications.

Pleasing Wall Street is a Poor Excuse

(From Harvard Business Review)
Outsourcing, in and of itself, isn't responsible for the erosion of America's high tech infrastructure. The short-term thinking that led to a lot of bad outsourcing decisions is the root cause. And short-term thinking isn't a problem confined to the executive suite.

Managers who focus on maximizing short-term profits end up driving out things that generate long-term value — like R&D. They use all sorts of excuses when they make those decisions, including the need to please Wall Street and create shareholder value. But they're just excuses for poor thinking.

There is a need of business leaders who have a respect for technical issues even if they don't have technical backgrounds. Technical understanding should be a core competency of any company.

Align Employee and Company Priorities

Lucky managers find that their employees' interests naturally align with company priorities. If you're not one of the lucky ones, here are three ways to line up what your employees care about with what your company needs to get done:

Know your employees' priorities - Don't wait for review time. Regularly ask your employees what they care most about. As a manager, you need to know what drives them.
Communicate company priorities - Tell employees what the company needs to achieve in the next week, month, and year. Be clear and consistent, and do this often.
Align interests to responsibilities - Now that both agendas are clear, try as much as possible to channel employees' interests into relevant company priorities.

Economic Round-up

 America’s Federal Reserve kept interest rates at a level close to zero. The Fed’s accompanying statement, which markets were keenly awaiting for any sign of a shift in policy, reiterated its intent to keep rates “exceptionally low” for an “extended period”.

 The Bank of England decided to inject a further £25 billion ($42 billion) into the British economy through its quantitative easing programme, raising the cumulative total to £200 billion. The extra asset purchases will be made over the next three months, a slower rate than before.

 At a conference in London several leading bankers criticised new proposals for regulating banks that are “too big to fail”. Josef Ackermann, head of Deutsche Bank and chairman of the Institute of International Finance, defended large banks as the “most efficient” means of providing financial services to multinationals.

 In an effort to diversify its foreign reserves, India bought 200 tons of gold from the IMF during October, which will nudge the country into the top ten gold-holders worldwide. The news sent the price of gold to another high.

 UBS made an unexpected loss in the third quarter, as net outflows from clients mounted in its private-banking business. The Swiss bank earlier this year reached a settlement with American authorities over “secret” accounts.

 CIT, a lender to small businesses, filed for bankruptcy protection under a reorganisation plan that had been accepted by most of its bondholders. The move was widely anticipated as CIT struggled with $30 billion in debt, which its restructuring will reduce by a third. The company received a $2.3 billion bail-out last year—money that is now unlikely to be returned to taxpayers.
(From The Economist)

US Dollar Index – USDX

The USD Index measures the performance of the U.S. dollar against a basket of currencies: EUR, JPY, GBP, CAD, CHF and SEK. A measure of the value of the U.S. dollar relative to majority of its most significant trading partners. This index is similar to other trade-weighted indexes, which also use the exchange rates from the same major currencies. Currently, this index is calculated by factoring in the exchange rates of six major world currencies: the euro, Japanese yen, Canadian dollar, British pound, Swedish krona and Swiss franc.

It is a weighted geometric mean of the dollar's value compared only with:
. Euro (EUR), 57.6% weight
. Japanese yen (JPY), 13.6% weight
. Pound sterling (GBP), 11.9% weight
. Canadian dollar (CAD), 9.1% weight
. Swedish krona (SEK), 4.2% weight and
. Swiss franc (CHF) 3.6% weight.

The makeup of the "basket" has been altered only once, when several European currencies were subsumed by the Euro at the start of 1999. This index started in 1973 with a base of 100 and is relative to this base. This means that a value of 120 would suggest that the U.S. dollar experienced a 20% increase in value over the time period. It is possible to incorporate futures or options strategies on the USDX. These financial products currently trade on the New York Board Of Trade.

Twitter's Business Model

An interesting article recently published in 'Harvard Business Review' about Twitter's business model by David L. Smith who is the is the CEO of Mediasmith. I think everyone will like to go through it as anyone and everyone is talking about Twitter now.

It has become a popular game, even among investors who should know better, to dismiss Twitter based on lack of a business model. But there is a difference between not generating income and lack of a business model. I believe that, in just a few short months, Twitter will show the world that not only do they have a business model, but that theirs is the most sophisticated around. As the founders have admitted, they did not necessarily plan out their success. But the result of their outside funding and considerable valuation is that they have been free to watch and learn what might be possible.

Most publishers talk about the two common monetization streams — advertising and subscribers — as though there are no other options. As many have seen over the last year, dependence upon advertising is a slippery slope in a downturn.

Last week, Microsoft's Bing and Google announced "search deals" with Twitter, with Bing also making a deal with Facebook, allowing the search engines to show results related to "what is going on right now". They tried to build this and still may, but paying Twitter and Facebook is logical for now as they are rapidly becoming major referral engines to many sites.

In fact, these are traffic deals. Until now Google has been the only company on the planet to make major money by driving traffic to other sites. These deals are Twitter's first steps toward doing the same.