some tips from a mock GD

JUDGE : Good morning. You can choose any topic you like or take a slip from that box. You are given one minute to think to start with the discussion. The observers will not interfere in your discussion. If no conclusion is reached, we may ask each of you to speak for a minute on the topic at the end of the discussion. The topic on the slip is "Multinationals: Bane or Boon". I suggest you should start the discussion.
Mr A : This is a good topic. I am against multinationals. We have Coke and Pepsi. Do we need them? We can manufacture our own soft drinks. Multinationals destroy the local industry and sell non-essential products.
Mr B : I agree with you. What is the fun of having Coke and Pepsi? We have our own Campa Cola.
Mr C : I think water is good enough.
Mr D : We are not here to discuss soft drinks. The topic given to us is a much larger one. First, let us define multinational companies. They are merely large companies which operate in a number of countries. There could be some Indian multinationals also. So there is nothing wrong with them. The point is whether they have a good or bad impact on the host countries. We have to discuss their business practices and find out whether they are desirable or not.
Mr E : That is a very good introduction to the topic. Multinational companies do serve an important function that they bring new products and technologies in countries which do not have them. And it is not just Coke and Pepsi. They set up power plants and build roads and bridges, which really help in the development of host countries.
Mr F : But are they all that good? We have seen that they destroy local industry. In India they just took over existing companies. They came in areas of low technology. Moreover, we have to see why they come at all. They come for earning profits and often remit more money abroad than they bring in.
Mr A : I agree with you. I am against multinationals. We can produce everything ourselves. We should be swadeshi in our approach. Why do we need multinational companies?
Mr E : We may not need multinational companies but then it also means that our companies should not do business abroad. Can we live in an isolated world? The fact is that we are moving towards becoming a global village. The world is interconnected. Then we have also seen that foreign companies bring in business practices that we are impressed with. Look at foreign banks. They are so efficient and friendly that the nationalized banks look pathetic in comparison. I think we can learn a lot from multinationals if we keep our eyes and mind open.
Mr B : Take a look at McDonald's. They are providing quality meals at affordable prices. One does not have to wait at their restaurants.
Mr C : How do you account for the fact that they take out more than they put in and thus lead to impoverishing the country?
Mr D : The fact is that every poor country needs foreign investment. Poor countries often lack resources of their own. That is why they have to invite foreign companies in. There is nothing wrong in this because then products like cars, air conditioners and so on can be made in poor countries. Often multinationals source products from different countries which helps boost their export earnings.
Mr E : We have been talking about Coke and Pepsi. It is well known that Pepsi is in the foods business also and has helped farmers in Punjab by setting up modern farms to grow potatoes and tomatoes. Modern practices have helped the people in that area.
Mr A : I still feel that multinationals are harmful for the country.
Mr D : Well, there could be negative things associated with such companies. They may not be very good in their practices. But can we do without them? I think the best way is to invite them but also impose some controls so that they follow the laws of the country and do not indulge in unfair practices.
Mr E : I think laws are applicable to everyone. Very often officials in poor countries take bribes. The fault lies not with the company which gives a bribe but the person who actually demands one. Why blame the companies for our own ills?
Mr A : What about the money they take out?
Mr D : We have had a good discussion and I think it is time to sum up. Multinationals may have good points and some bad ones too, but competition is never harmful for anyone. We cannot live in a protected economy any longer. We have been protected for many years and the results are there for everyone to see. Rather than be close about multinationals, let us invite them in selected areas so that we get foreign investment in areas which we are lacking. Laws can be strictly enforced that companies operate within limits and do not start meddling in political affairs.
Analysis : Though Mr A started the discussion, he could not make any good points. Later, he could not give any points about why multinationals are bad. It is also a bad strategy to say at the outset whether you are for or against the topic. Remember, it is not a debate but a discussion. The first step should always be to introduce the topic without taking sides. See the way in which the discussion is proceeding and give arguments for or against. The observer is not interested in your beliefs but in what you are saying. The participation of Mr B and C is below average. A candidate must make 3-4 interventions. Their arguments are also not well thought out and add nothing to the argument. It is important to say relevant things which make an impact rather than speak for the sake of speaking. The arguments of Mr D and E are better. They seem to be aware of the role of multinational companies. Mr E's approach is better as he intervenes a number of times. He has also taken initiative in the beginning and brought order to the group. If selection has to be made from the above six candidates, the obvious choice would be Mr E and thereafter, Mr D.

Accounting ratios

To test	Name of Ratio	Formula	Parties interested	Industry norm
Liquidity and Solvency	i) Current Ratio	Current Assets Current Liabilities	Short-term creditors, investors, money lenders & like parties	2:1
	ii)  Liquid/Quick/ Acid Test Ratio	Current assets - Stock - Prepaid Expenses Current Liabilities - Bank Overdraft - Prereceived Income	-do-	1:1
	iii)  Absolute Liquid Ratio	Cash + Marketable securities Quick Liabilities	-do-	1:1
	iv)  Proprietary Ratio	Proprietor's Fund Total Assets [Proprietor's funds = Equity Capital + Preference Capital + Reserves and Surplus + Accumulated funds - Debit balances of P & L A/c and Miscellaneous Expenses]	-do-	60% to 75%
Capitalisation	i)  Debt Equity Ratio	Debt Equity [Debt = Long/Short-term loans, debentures, bills, etc, Equity = Proprietor's funds]	-do-	2:1
	ii)  Capital Gearing Ratio	Fixed cost funds Funds not carrying fixed cost [Fixed cost funds = Preference share capital, Debentures, Loans from  banks, financial institutions, other unsecured loans]. [Funds not carrying fixed cost = Equity share capital + undistributed profit - P & L A/c (Dr. Bal.) - Misc. expenses].	-do-	2:1
Profitability and management efficiency	i)  Gross Profit Ratio	Gross Profit x 100 Net sales	Shareholders, Long-term Creditors, Government	20% to 30%
	ii) Net Profit Ratio	Net Profit x 100 Net sales [Net profit may be either Operating Net profit, Profit before tax or Profit after tax].	-do-	5% to 10%
	iii)  Return on Capital Employed (ROCE)	Net profit x 100 Capital employed [Capital employed = Fixed Assets + Current Assets - Current Liabilities].	-do-	�
	iv)  Return on Proprietors fund	Profit after tax Proprietor's funds	-do-	�
	v)  Return on Capital	Profit after tax less pref. Dividend  x 100 Equity Share Capital	-do-	�
	vi)  Earnings per share [EPS]	Profit after tax less pref. Dividend Total  No. of Equity Shares	-do-	�
	vii)  Dividend per share [DPS]	Total Dividend paid to ordinary shareholders Number of ordinary shares	Shareholders, Investors	�
Management efficiency	i)  Stock Turnover	Cost of goods sold Average Stock	Management	5 to 6 times
	ii)  Debtors Turnover Ratio	Debtors + Bills receivable  x 365 Net Credit sales	Management	45 to 60 days
	iii)  Debtor's Turnover Rate	Credit sales Avg. Debtors + Bills receivable	Management	60 to 90 days
	iv)  Creditor's Turnover Ratio	Creditors + Bills payable x 365 Credit purchases	-do-
	v)  Creditor's Turnover Rate	Credit purchases Average Creditors
	vi)  Operating Ratio	Operating Costs x 100 Net sales [Operating Cost = Cost of goods sold + Operating expenses (viz. Administrative, selling & finance expenses)]
Number of times preference dividends covered by net profit	Preference shareholders' coverage ratio	Net profit (after Interest & Tax but before equity dividend) Preference Dividend	Preference shareholders
Number of times equity dividends covered by net profit	Equity shareholder's coverage ratio	Net profit (after interest, tax & Pref. Dividend) Equity Dividend	Equity shareholders
Number of times fixed interest covered by net profit	Interest coverage  ratio	Net profit (before Interest & Tax) (PBIT) Fixed interests & charges	Debentureholders, Loan creditors
Relationship between net profit and total fixed charges	Total coverage ratio	Net profit (before Interest & Tax) (PBIT) Total fixed charges	Shareholders, investors, creditors, lenders
The idle capacity in the Organisation	Fixed expenses to total cost ratio	Fixed expenses Total cost	Management shareholders
Material consumption to sales	Material consumption to sales ratio	Material consumption Sales	Management
Wages to sales	Wages to sales ratio	Wages Sales	Management
The future market price of a share	Price earning ratio	Market price of a share (MPS) Earnings per share (EPS)	Investors, speculators

ATTENTION: B.Sc. ( Biotech) -III

For students interested in knowing more about FDI's , here is a link

http://planningcommission.nic.in/aboutus/committee/strgrp/stgp_fdi.pdf

Even wars can teach lessons in Management !!!

Throughout history, wars have left an indelible mark on human psyche. Serious debates have been held on the morality of and the strategic necessity for war. And yet, like every dark cloud that has a silver lining, wars too at times leave a society wiser.

India too is no stranger to wars. And there are many lessons to be learnt from each of those battles -- management lessons, to be precise. Here we present the first of a series of articles on management lessons drawn from Indian history. This one picks out management gems from the Battle of Haldighati.

Battle of Haldighati (1576 AD)

Mughal Emperor Akbar had captured Chittorgarh (Chittor fort) from Maharaja Udai Singh II in 1568. But before this, Udai Singh sensed the Mughals' intention to capture Chittor and the strength of the army. Thus, he built a new town at Udaipur near the foothills of the Aravali mountains. Udai Singh II, father of Maharana Pratap, shifted his capital to Udaipur, when Chittor fell.

Lesson: Prepare a backup plan to face any contingency. This plan should be executed at an appropriate time when the current plan fails to deliver the desired result. This is what Maharaja Udai Singh II had done by building a new town and seamlessly shifting the capital when Chittor fell.

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Udai Singh II wanted his favourite son Jagmal to be his successor, but his ministers instead preferred his eldest son Pratap.

They argued that Pratap had the required skill to fight the Mughals in these difficult times to retain Mewar's independence and to recapture Chittor. Finally, they made Maharana Pratap the king of Mewar.

Lesson: Succession planning should be reviewed periodically, and modified based on the ground realities. It should be done on merit, not on favouritism.

*****

Maharana Pratap was unlike many other Rajput rulers who had joined hands with Akbar and had matrimonial alliance with Mughals. He turned down multiple proposals from Akbar to join hands with him.

He was determined to take over the Chittor fort and avenge the killings of innocents during that battle. Maharana Pratap knew it was not easy to capture Chittor.

Lesson: One could set an aggressive goal even if it is against popular belief or practice, provided one is determined and weighs the decision well by considering the full perspective.

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In 1576, a big army of Akbar led by Kunwar Man Singh (who later became Raja Man Singh) met Maharana Pratap's men at Haldighati. Maharan Pratap was riding his famous horse, Chetak.

Maharana Pratap and his few men fought valiantly, but his army was no match to the numerical strength of Man Singh's army. When defeat looked imminent, Maharana Pratap's general, Jhala Mansingh, convinced Maharana Pratap to change the clothes and escape from Haldighati as he had bigger mission to accomplish.

Pratap agreed and escaped from the battlefield. Jhala Mansingh fought well, but was killed on the battlefield.

Lesson: Don't be rigid. One should be flexible in entertaining new ideas and suggestions from the team members, and take corrective actions if convinced.

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Shakthi Singh was the brother of Maharana Pratap, but was fighting along with the Mughal army due to the family feud. He was amazed at Maharana Pratap's skill in the battlefield.

A couple of Mughal soldiers realized that Maharana Pratap had escaped and they followed him. Sensing this, Shakthi Singh followed the soldiers. When Maharana Pratap's famous horse Chetak died on the way, and Mughal soldiers came close to attacking Maharana Pratap, Shakthi Singh killed these soldiers and saved his brother's life and joined him in his battle against the Mughals.

Lesson: Leadership does not come by position, but by the qualities one demonstrates. This can turn the person into a role model, someone people would like to emulate. Here, Pratap's leadership qualities impressed Shakhti Singh, who, in turn, showed a higher sense of maturity. Bravery and leadership of Pratap appealed to his higher senses. Leadership guided by higher senses and great value systems are sustainable. It makes others follow the path.

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The Mughal army suffered heavy casualties due to the arrows shot at them by the Bhils from the Aravali mountains. Bhils sided with Maharana Pratap during this battle and later too.

Maharana Pratap realized that defeating the Mughal army in a face-to-face battle was difficult and, therefore, he changed tack, shifting to guerilla warfare. His guerilla war was supported by tribes in the mountains and others, who kept attacking the Mughal army in whatever way they could. They even provided a spy network that saved Maharana Pratap several times.

Lesson: Willing to change the strategy by learning from the failed ones. The goal is to find a winning strategy. It's a case of using one's strength against the enemy's weakness. Lack of knowledge of the local terrain made Mughals vulnerable to guerrilla attacks that Maharana Pratap together with Bhils utilised to their advantage.

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Pratap captured many areas of Mewar, but Chittor remained elusive. He made sure that the Mughals would never be able to rule in peace in Mewar. Even Akbar sent multiple expeditions to ferret out Maharana Pratap from his hideouts, but to no avail.

During this period, in one of his weak moments, Maharana Pratap decided to give up the fight and negotiate a peace treaty with Akbar. Knowing this, Pratap's cousin Prithiviraj Rathore, who served in Akbar court, wrote a letter to Pratap, urging him not to go ahead with his plan, as he was the only Rajput whom everyone respected. He urged Pratap to continue to be the custodian of this great responsibility.

Maharana Pratap responded positively and continued to fight till his last breath.

Lesson: During execution, it is sometimes common to lose sight of the goal and move away from the path and take one that is not aligned with the end goal. During this time, one needs mentors, friends and allies to provide the right guidance.

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Maharana Pratap started his campaign with an aggressive goal to capture the Chittor fort. Approximately, 20 years after the battle of Haldighati, Maharana Pratap died. He had captured almost all of Mewar, except the Chittor fort.

He was such an icon of patriotism and the fight for freedom that four centuries later Sardar Vallabhbhai Patel, one of the stalwarts of India's freedom struggle, commented that if Mewar could merge with independent India, then no other state had the right to remain independent.

Lesson: One should not be worried about setting aggressive goals for the fear of failure. Even if one cannot achieve the entire goal, partial achievement in the right direction is far more commendable than taking an easy way out.

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In memory of Jatinder Sir, my friend, and above all a noble human being

I  thought that your death was a waste and destruction. I am only beginning to learn that your life was a gift, and it's memory is left with me. The fear of death destroyed the existence of love, but the fact is, that death cannot destroy what has been given.
I am learning to look at your life again
Instead of your death and your departing.


Friends like us relied upon one another to inspire and encourage, to support each other in following our dreams as far as they would take us. Friends like us are winners not only, because we believed in ourselves, but because we believed in each other.


May your soul rest in peace. I'll miss you my dear friend, and your memory will encourage me to be a great human being like you.

INDIAN EDUCATION : AMERICA IS WORRIED

A recent news report stated US President Barack Obama addressing the American students saying, “At a time when other countries are competing with us like never before, when students around the world in Beijing, China, or Bangalore, India, are working harder than ever, and doing better than ever, your success in school is not just going to determine your success, it's going to determine America's success in the 21st century." While the statement establishes the fact that the US President considers India to be a threat to the wobbling American economy, it is a testimony to the fact that India has emerged to be the Intellectual capital in the global forefront.

It is the same western culture that had destroyed the traditional Indian education system during the British rule by introducing Macaulay’s education policies. The education policy propelled slavery through out the country putting an end to our age old Vedic traditions  that died a natural death at that time. It took place in the year 1835. Come 2010, India is again rising as a global economic power. And dare we say, the Protectionist American Government is ‘threatened’ that the jobs in their country are being eaten up by efficient technically qualified Indians! This established one thing for sure. No matter what, India is a survivor. And Indian education system has not failed in producing competent professionals who can rule the world by the virtue of their knowledge and efficiency.

However, we can do better if we can make certain amendments in the existing education system. Measures are being taken to make the system more efficient and stimulant in molding the students’ personalities. At the same time, we require a system that imparts knowledge without putting undue pressure on the young minds. This is particularly relevant as far as secondary and higher secondary education is concerned. Day is not far when our Universities and Colleges will have more foreigner students trying to get a slice of Indian education, and our Indian students occupying the top most jobs all over the world.

CHANAKAYA SAID...

A person should not be too honest.Straight trees are cut first and Honest people are victimised first.


Even if a snake is not poisonous,it should pretend to be venomous.


The biggest guru-mantra is: Never share your secrets with anybody. It will destroy you.


There is some self-interest behind every friendship. There is no Friendship without self-interests. This is a bitter truth.


As soon as the fear approaches near, attack and destroy it.


Once you start working on something,don't be afraid of failure and don't abandon it.People who work sincerely are the happiest.


The fragrance of flowers spreads only in the direction of the wind. But the goodness of a person spreads in all direction.


A man is great by deeds, not by birth.

Education is the best friend. An educated person is respected everywhere.

Education beats the beauty and the youth.