Tag: Business

Business success in failure

No business is a failure until you give up. Business literature is full of people, who despite having faced setbacks, have risen beyond the challenges and moved forward in life. There are ups and downs in any business and it is important to learn from one’s mistakes and make improvements on existing plans. In particle physics, it is said that sub-atomic particles are so small that they cannot be observed until they collide with one another. The same principle applies in the business arena. If your business is doing well, it is difficult or even impossible to tell the difference between success and failure. However, once problems arise, your tenacity and determination to succeed are tested. This is when success and failure becomes evident.   

Walt Disney, co-founder of Walt Disney Productions, dream of becoming a newspaper cartoonist when he was young. However, no one was willing to hire him. So, he established a commercial art studio and took up a part-time job to support himself. Later, he started an animation company, which was a huge success in Kansas City, US. Unfortunately, the company went bankrupt. But this did not stop Walt Disney from pursuing his dreams and interests. Despite his initial failure, he rose to the challenge, learnt from his mistakes and started all over again in Los Angeles, US. Today, Walt Disney is considered one of the greatest entrepreneurs of all time. And Walt Disney Productions, now popularly known as The Walt Disney Company, is a multi-billion dollar company, with more than 150,000 employees worldwide.   This is a true example of ‘business success in failure’. In every setback, Walt Disney learnt important and valuable lessons, which acted as seeds that eventually grew into a tree of success.  

According to experts, acceptance of failure is essential for business growth. Making mistakes is not taboo; not understanding your mistakes is taboo and detrimental to progress. Kingfisher Airlines was one of the top performing companies in India till December 2011. In fact, its customer base was growing by leaps and bounds and it had the second largest share in India’s domestic air travel market. Unfortunately, due to a major financial crisis faced by the company in early 2012, its market share fell sharply and it was forced to shut down its operations. There are many airline companies in the world that have faced financial problems. However, they have managed to enhance their services and products to gain more market share. One such company is Southwest Airlines.  

Every year, Southwest Airlines manages to turn a profit, even during difficult times. After many trials and errors, Southwest Airlines managed to come up with a policy that works for them – keep operations simple. This way, the airline company saves cost and manages to attract more passengers. Southwest Airlines does not assign seat numbers. This way, when there are last minute changes to an airplane, the crew need not make changes to seating arrangement and issue new boarding passes. Such innovations and novel ideas are essential for the survival of businesses. It is true that failure is the forgotten ingredient of business success. People associate failure with shame, embarrassment and weakness. Failure is disappointing, no doubt, but it makes a business stronger. Once you know what can hurt your business, you will try your best to avoid them and prevent mistakes from occurring again. Plus, failures make you more confident of your abilities. Business leaders who have faced challenges are more determined and confident than those who have been enjoying success all along. So, business is not considered a failure when its market share drops or it loses revenue; it is a failure when you give up.  

Businesses fail for many reasons. The following list includes some of the most common reasons :

1 – Lack of planning – Businesses fail because of the lack of short-term and long-term planning. Your plan should include where your business will be in the next few months to the next few years. Include measurable goals and results. The right plan will include specific to-do lists with dates and deadlines. Failure to plan will damage your business.

2 – Leadership failure – Businesses fail because of poor leadership. The leadership must be able to make the right decisions most of the time. From financial management to employee management, leadership failures will trickle down to every aspect of your business. The most successful entrepreneurs learn, study, and reach out to mentors to improve their leadership skills.

3 – No differentiation – It is not enough to have a great product. You also have to develop a unique value proposition, without you will get lost among the competition. What sets your business apart from the competition? What makes your business unique? It is important that you understand what your competitors do better than you. If fail to differentiate, you will fail to build a brand.

4 – Ignoring customer needs – Every business will tell you that the customer is #1, but only a small percentage acts that way. Businesses that fail lose touch with their customers. Keep an eye on the trending values of your customers. Find out if they still love your products. Do they want new features? What are they saying? Are you listening? I once talked to the CEO of a training company who told me that they don’t respond to negative reviews because they are unimportant. What? Are you kidding me?

5 – Inability to learn from failure – We all know that failure is usually bad, yet it is rare that businesses learn from failure. Realistically, businesses that fail, fail for multiple reasons. Often entrepreneurs are oblivious about their mistakes. Learning from failures is difficult.

6 – Poor management – Examples of poor management are an inability to listen, micro-managing – AKA lack of trust, working without standard or systems, poor communication, and lack of feedback.

7 – Lack of capital – It can lead to the inability to attract investors. Lack of capital is an alarming sign. It shows that a business might not be able to pay its bills, loan, and other financial commitments. Lack of capital makes it difficult to grow the business and it may jeopardize day-to-day operations.

8 – Premature scaling – Scaling is a good thing if it is done at the right time.  To put it simply, if you scale your business prematurely, you will destroy it. For example, you could be hiring too many people too quickly, or spend too much on marketing. Don’t scale your business unless you are ready. Pets.com failed because it tried to grow too fast. They opened nationwide warehouses too soon, and it broke them. Even the great brand equity that they have built couldn’t save them. Within a few months, their stock went from $11 to $0.19.

ACCOUNTING

Accounting is used to keep a record of all transactions in the business. The accounting process includes summarizing, analyzing and reporting these transactions to oversight agencies, regulators and tax collection entities. It helps to handle all the documentation at a particular place. Accounting is a necessary function for decision making, cost planning, and measurement of economic performance measurement. Accounting process help to derive inference about the profit and loss transactions of the business. Accounting also helps organizations to plan their finances by developing budgets and forecasts.

CLASSIFICATION OF ACCOUNTING- i) Financial Accounting: This process help to develop the balanced sheets of a firm i.e. the net cash flow during a particular time period. These sheets are also called financial statements. This is important to develop by every organisation operating as it help to know the requirement of loan and net profits as a whole.

ii) Cost Accounting: It help to track down the production cost of the commodity on large scale. The difference between financial and coast accounting is that; In cost accounting, money is cast as an economic factor in production, whereas in financial accounting, money is considered to be a measure of a company’s economic performance.

iii) Managerial Accounting:  A managerial accountant must be careful in communicating confidential information and to whom. They work with their managers to analyze and create a budget to meet the needs of the short and long-term goals of the organization.

iv) Tax accounting: As the name suggest, it help to track the annual tax reports to be given as income tax. This helps to reduce tax burden on the firm.

v) Public accounting: Public accounting refers to businesses that provide accounting advice to clients based on their needs. They can work in auditing, assist with tax returns, consult on procedures tailored to the installation of technology or computer programs and provide legal advice.

ACCOUNTING CYCLE- The summoning of all type of accounting gives us what we called an accounting cycle. It help the organisation to establish a system of check and balances.The sequence of steps starts when a transaction occurs and ends with its entry in financial reporting. 

To have a successful business having a crucial knowledge of accounting is necessary.

Reasons why the Power of Purchasing Parity theory is effective

a) Strong relation between exchange rate and purchasing power of two countries currency and its rate of exchange:

Practically there is no defined link that exist between power to purchase the currency and its exchange rate. Apart from power to purchase, there is exchange rate which is influenced due to various factors like flow of capital, balance of payment, tariff and speculation. As these have not been considered, the purchasing power parity is not giving the desired forecast.
b) Level of prices:

This theory calculates the rate of exchange by using indices of price level in both countries as generic version. In general price level is inclusive of prices which are domestic and internationally traded and the theory is based on implicit assumption that prices in two segment of goods shows variation equally and proportionately assuming that it is in same path in both countries. It is seen that prices can move in any direction internal as well international. International trading of goods is not taken into account. As per this, prices of goods produced and used in home country will not have much impact on exchange rate.
c) Price Index Numbers:

Another issue in this theory, is using price index based on power to purchase a currency in two different countries. Price index numbers may be varying kind that raise issue of selecting the correct price index. Another problem which is based on price index of two countries is that it may not be comparable due to difference in same base period, choice of commodity and average pricing of each commodity. Keeping such diverse problem into account, constructing price index for two countries will be difficult as correct measurement of purchasing power parity is not available.

d) Price Level and Exchange Rate: PPP theory takes into account change in price level and it indicates that as cause for changing exchange rate. In other words, change in price level is cause and change in rate of exchange is effect. Changes in exchange rate can also lead to changes in price level. This can be faulty and misleading. In practical condition, depreciation in exchange rate stimulates export and gives restriction to imports. Reduction in supply for domestic market is likely reason for pushing the prices in upward direction in home country. In foreign country prices may fall, this will induce change in price level. Domestic prices are following the exchange rate rather than preceding.
e) Capital Account:

This theory has not taken into account capital transaction. It is considering only the Balance of Payment based on merchandising. Capital account which is significant in India is ignored. It seems to be more apt for trading nations and not so relevant when it comes trading and banking.
f) BOP Equilibrium:

In relative pattern, this theory assumes that balance of payment during the specified base time is in equilibrium. Assuming this, new rate of exchange is determined and such an assumption may not be true. It is difficult to locate such a period in any country due to unequal balance of payment.
g) Structure:

It is considering that there is no change in structure of factors, which are underlying the base time equilibrium. Factors like tastes, preference, resources, productivity and technology etc are considered. Assuming that related structural factors are unrealistic and rate of exchange are bound to be affected due to variation in factors.
h) Capital Movement:

PPP theory does not take into account variation of internal price which are changing in two countries. Zero capital investment is assumed and such assumptions do not give realistic results. Capital flow has substantial influence on exchange rate based on demand and supply of foreign as well as domestic currency. This impact of capital flow on exchange rate has been neglected in this theory.
i) Elasticity of demand and its reciprocal:

PPP fails to consider the reciprocal demand elasticity. Rate of exchange which are between two currency in two countries are determined not only due to changes in relative pricing but it takes into account the elasticity of reciprocal demand(Ca’Zorzi, M et al., 2016).
j) Barter Terms:

PPP depends on the assumption that there is no change in terms of bartering between two countries. Based on this assumption, the theory gets invalid. There are frequent changes in barter terms of trade due to several factors like export supply of goods, home demand for foreign goods, loans from foreign land etc.
k) Demand and Supply Forces:

Rate of exchange is not impacted by price change in two countries alone. Demand and supply of foreign exchange form fundamental force for determining rate of equilibrium. Other influencers are flow of capital, transportation cost, banking system, insurance system. PPP theory is not giving much importance to such forces of demand and supply of foreign exchange.
l) Income and Expenditure: Variation in aggregate level of income and expenditure and its effect on rate of exchange is not considered as per this theory. The effect of trading volume is not considered in this theory. As per this theory, demand is straight function of price wherein shift in income and expenditure in the business cycle is completely not taken into account. This leads to wide variation in volume and foreign exchange even if the prices remain the same.
m) International Economy:

This theory does not consider the cognizance and volatility of international business relationship. Third country purchasing commodity from first two countries who are already in trade relationship is not considered. Third country trading can have an impact on the demand and supply of goods and its volume. Hence proper measurement in multi country trading is not established.
n) Longevity:

PPP theory is apt for long period of time wherein not many other disturbances can have impact. However, price variation is one important aspect in exchange rate, it is not the only factor.
In spite of various weakness noticed in PPP theory, they form the central model and has proven to be good for long term analysis. Hence this theory has been considered for studying the exchange variation between EUR and USD. It is empirically proven theory, hence the same has been taken into account for the analysis of bilateral rate of exchange.

Strategies for Primark to overcome risk in India :


Primark can follow the following strategies to have successful performance in business in India. Primark should partner and build relationships with with rooted local partners and with people of the country who have a say politically. Primark can also make use of sustainable and community programs and must engage in legitimate lobbying.
Political and legal :
Primark must strive to work with relevant bodies to apply for legal policies. Primark has a negative reputation when it comes to rights of workers and condition of employment. Therefore, primark can improve these areas. Primark must make informed hedging decisions and must look at various strategies into its risk exposure backed by professional treasurers, an efficient back office and good forecasting techniques.
Economical :
Primark must follow a joint venture which includes two or more business entities for mutual economic benefit. As India requiurss it’s foreign investments to be a joint venture it will make it easier for primark to have a stable capital growth. Primark should sought joint ventures to hold majority stake therefore a tighter control. Joint ventures have the advantage of sharing the costs and risks of opening a foreign market and to acquire local knowledge and political influence. The disadvantages include the risk of losing control over technology and the lack of strict control.
Social :
Considering India it is important for any foreign company which plans to start a business in India to change their focus point from forming global strategies to adapt to the local market conditions thereby becoming glocal brands that are characterized by both global and local considerations. This is possible in India if Primark decides to manufacture locally by producing products with Indianised variants of taste, preference etc. It is important to follow “Made In India, Only For India” stating that “Now for most of the successful MNCs operating in India, exclusively for India has become an integral part of their overall product development strategy”. For example, primark must focus on the store and sample products to create a strong first impression and Seasonal promotional campaigns, new lines of collections during festivals etc can be followed. The company should expand in big metropolitan cities in India like Mumbai and Delhi and also improve its supply of chain network locally. This will be quite easy for Primark since it already has its manufacturing units in India. Primark must find ways to build its brand reputation, image and equity even if it is not through advertisements and must strive to match the market share and volume of sales with its local and global competitors.
Technological :
Primark can incorporate it’s innovative, engaging and impactful website and promote it’s primania social networking platform for customers to be technologically engaged with the brand. Primark invests more on their women customers. This is evident in primark’s vast floor space for women’s clothing, dedicated clothing line and window posters. In India according to a report by Neilson Maiden on shoppers behaviour men in India buy more online clothes than women almost up to 70%. Therefore it would be a big boon to primark if they were to open online shopping facilities in India.

Environmental :
Primark Can tackle water scarcity by using methods which make use of sustainable cotton that is produced through various sustainable farming programmes. The company can also recycle and reuse processed water by which they can save a lot of water. By following these strategies Primark Can tackle the water scarcity which is to worsen in India in the coming years.

These are few strategies that Primark can use to overcome risk in India.

Multinational corporations – Why is it a bane to an economy?

“Multinational corporations do control. They control the politicians. They control the media. They icontrol the pattern of consumption, entertainment, thinking. They’re destroying the planet and laying the foundation for violent outbursts and racial division.” -Jerry Brown
Critics of MNCs state that the cons far outweigh the pros that MNC involvement brings to host countries. The primary concern for them is the high levels of unmonitored influence these companies have on host countries.
Colonialism:
MNC’s are seen as an offshoot of western colonialism, albeit in a more subtle manner. Far from improving the balance of payments on both the current and capital accounts, critics argue that MNC’s worsen it. This they argue happens when the profits are repatriated to their own countries. Though the local governments may come to an agreement that a certain portion of their inputs be bought iin the local market, this however may come at a cost with negative impacts upon the less developed countries current accounts.
Unmatchable influence:
The power, influence and reach of these MNCs have enabled them to have considerable and highly influential effect on the political dynamics of numerous governments and their countries. The MNCs ihave been known to use this influence to pressurize governments into letting them become more competitive via the implementation of national policies that is conductive to their end goals, which is ultimately a hefty profit. One major drawback of such reforms is a vast decline in any socio-economic reforms.
Their large investment portfolios make MNCs a powerhouse when it comes to the negotiating table and most developing countries cannot match up to their level, enabling the MNCs to get the upper hand. This leads to them coercing the government into implementing policies that favor their needs at the expense of the local industry and market.
Technological fraud:
Technological transfer agreements are not always kept, and when ikept ithey are usually skewed in favor of the MNC. Even though most do not agree to a full transparent technological transfer, even if that comes to pass, the technology passed onto the country is usually obsolete in nature or is patented so it would be of little use to the host country on a global scale.
Little or No accountability:
MNCs comprise of international bodies which function beyond the state authorities, in terms of decision-making power and the power they hold over monetary assets. Though this legitimate challenge has been iout there for thirty years now, yet ionly slight developments have been inoted iiniterms of accountability. The old-fashioned regulatory body and the MNCs’ significant economic and political power have resulted in a clash which makes the regulation iof states turn into a major problem. The MNC has surpassed the national ilegal structures and disregarded the delicate international bodies, increasing the already existing burden of fulfilling the basic norms of human rights.

Undermine Social and Economic Rights :
The MNCs’ dominant and significant position within the international forum increases its opposing competencies. MNCs’ can easily promote or undermine economic and social rights, which can in turn iaffect the international community, positively or negatively, depending on the local market of an ieconomy. Though the State still holds much power over the laws and regulations on an international level, MNCs’ have a considerable impact over the decision-making process of nation-states. As MNCs’ continue to grow economically and politically, the shift in power is gradually becoming visible. It is a must that the MNCs’ take into consideration the impact that they are leaving in developing countries.
Stifles Competition:
The superiority of MNC’s shines through their competitive nature ias the stifle competition by getting subsidized inputs, lowering their costs and then competes with local manufacturers who cannot realistically match up to their prices. This results in a lot of them leaving the field, leaving the MNC’s to monopolies the economy and then once in power, to jack up prices.
Unmatched budgets:
An offshoot of their influence on the government, the MNCs also have a huge advertising budget, which enables them to portray a much better image in the eyes of the local populace. With budgets that run in the millions, MNCs almost always succeed in gaining mass market shares of their products since the local companies cannot produce/hire production companies to do the same. This again alienates the local entrepreneurs and makes it harder for the majority of the population.
Human Right abuses:
The Multinational Corporation is an adaptable and established entity ithat profits from the principles of neo-liberal economics, as well as the predicament of the “home and ihost” state, the combination of which iwith restricted levels of liability and a decentralized decision-making hierarchy allows for abuses of human rights to take place internationally, by having doubt standards. Moreover, polices of MNCs such as the WTO, OECD, IMF and the World Bank, have enabled MNCs to gain a position iof considerable influence on agendas of social and economic nature.

Environmental impacts:
Economic globalization has had iquite a destructive impact on state regulation. People have been affected negatively and gradually the impact is increasing and becoming more obvious. The more competitive a nation, the lesser the regulations. Though this tactic is almost perfect in attracting multinational corporations, it is quite idestructive iin inature. In order to compete with such inations, other states are also forced to decrease their regulatory measures if they wish to get foreigners to invest in their country. No nation wishes ito reduce its competitiveness or power. Foreign investors are now consuming the money that should have been legally invested in maintains the rights of the public socially, economically and culturally.
Moving Forward :
With the growing economic power of corporations, an increasing number of domestic and international systems have started relinquishing control over their business over to their locally dominant MNCs. This leads to economic power having a say over political influence, which can be dangerous if left unchecked.

These factors have led to Multinational Corporations being a bane to any economy.

Tesco and it’s strategic changes during the ‘ Dave Lewis era’

Tesco is a multinational retailer company which was established in 1919 by Jack Cohen with its headquarters in the United Kingdom, being one of its ‘Big Four’ retailers. Tesco is known for implementing strategies that are effective in developing competitive advantages to acquire customer satisfaction. Tesco faced a major downfall in the year 2014 when it’s market share fell from 28.6% to 28.4% due to the growth of discounters and online retailers.
In the year 2014, Tesco’s chief Philip Clarke quit his job due to profit warning with r-£10m package after failing to halt slumping sales. After which Dave Lewis who led Unilever’s personal care business became the chief executive of Tesco in 2014. Tesco which was in dire need for a change expected Lewis whom they described as “responsible for a number of business turnarounds” to make their company’s strategies effective.
Tesco’s strategy analysis:

Lewis followed what Leahy, the former CEO of Tesco promoted profoundly, which was to put the customer first. This is very much evident in the 2015 strategic report of Tesco which quotes ” The champion of customers”. Lewis believed that small actions sum up to big differences with “every little helps”.

Lewis set top three priorities to get Tesco back on track. Firstly they set a goal to regain their customers focusing on four things – service, range, availability and price.There are three reasons companies should work on regaining it’s customers. Firstly because customers seek their services and have helped them have a stand in the market and not just any name on a cold call list. Secondly because they know the company better and treating them well decreases the marketing cost. Thirdly , with the improvement In technology and customer databases, it is easier to collect information on customer behaviour to the company’s services to build better successful offers and identify the profitable defectors. Tesco with the aim of regaining their customers invested in 4,652 new colleagues to improve services for them, reviewed their ranges across categories, increased the availability of products and made their prices stable, low and affordable by which they were able to attain the response of their consumers.
Secondly the company sort to protect and strengthen its financial stand as since they had a debt with with total leverage of £22bn .A difficult financial position of a company can be threatening to the existence of a company for which few measures have to be taken to recover from the crisis and obtain a state of balance for which the financial position has to evaluated which involves restructuring or making a change in its of its financial strategies. In order to revive from its crisis Tesco strengthened it’s capital spending by reducing their capital expenditure to £1bn, replaced their pension schemes and reviewed their profit portfolio by completing an asset swap with 21 British superstores to gain ownership and to increase the promotion of the stores they own.
Thirdly, Tesco strived to rebuild and improve their trust and transparency for which they set up a new management system to create long term, mutually beneficial partnerships with their consumers and suppliers in order to focus on cost prices. Suppliers help turn the ship around during tough times and companies need the help of their suppliers to have a turnaround in business for which they need to treat their suppliers fairly since the happiness of the supplier is vital to the success of the buyer. Tesco also created a new code of business conduct and to shift their focus on a more ethical and speak up culture .A study by Label Insight found that 94 percent of consumers were likely to be loyal to a brand if it is transparent and about 73 percent said that they would even pay more for a completely transparent product.
In the following year after Tesco had worked on regaining their customers the year seemed to be a transformational year for Tesco with their business on a road to recovery said Alan Stewart, the chief financial officer of Tesco. Tesco went on to adopt strategies for which it advanced it’s turnaround priorities. Tesco chose to regain their competitiveness in the market for which it improved the shopping experience by making easier shopping trips, better availability of goods and stable prices for the consumers which led them to regain their competitiveness with positive volume growths up-to 3.3% and transactions up-to 2.8% in the fourth quarter.

Stabilizing and driving Tesco forward:
Tesco encountered progress in its three priorities which Lewis put forth initially when he became the CEO. To ensure a stable long term horizon, Tesco enhanced six strategic drivers to enhance their competitiveness in the market.

Tesco’s six strategic drivers :

A differentiated brand:
2017-“Food love stories brought to you by Tesco” campaign
2018-Swaps with products that are lower in saturated fat, salt and sugar
2019-One hundred years of great value campaign
Reduce operating costs by £1.5bn:
2017-Generated £455m of cost savings, of which £226m contributes to the £1.5bn target.
2018-Delivered £541m of savings; logistics and distribution, with £104m of savings; and goods not for resale, making savings of £174m.
2019-Delivered in-year cost savings of £532m, with £1.4bn of savings.
Generate £9bn cash from operations:
2017-Generated £495m of retail operating cash
2018-Generated £2,773m of retail operating cash
2019-Generated £2.5bn of retail operating cash.
Maximise the mix to achieve a 3.5% – 4.0% margin
2017-driving growth in areas which deliver sustainable profits – in order to achieve a 3.5% – 4.0% Group operating margin
2018-Group operating margin for this year was 2.9%.
2019-Group operating margin was 3.79%.
Maximise value from property :
2017-Optimisation of freehold and leasehold mix.
2018-£1.4bn of value from property proceeds. 52% increase in freehold property in UK and ROI
2019-£285m of value from our property portfolio across the Group.
Innovation :
2017-Payquik digital wallet
2018-Tesco now app
2019-New brand – Jack, Thailand convenience proposition.
From the above data it is evident that the strategic plans used by Lewis has been effective for Tesco leading to its current strategic position.

Tesco’s business strategy is proven to be fit as it justifiably fits into three of these four categories – consistency, consonance, advantage and feasiblity.
Consistency :
Consistency must be followed between the organizational objectives a d the values of the company. It is impossible to have a successful strategy without consistency among the departments within the company. A business will be consistent only of the internal and external goals are aligned. Under Lewis’ strategical supervision Tesco was stabilizing and driving forward with a consistent business environment. This is evident from the strategical reports of Tesco from the year 2015-2019.
Consonance:
According to Rumelt “The strategy must represent an adaptive response to the external environment and to the critical changes occurring within it”. Lewis also was keen on creating value for his stakeholders (consumers, colleagues, suppliers and shareholders) . With the increase in the value for their stakeholders, Tesco created a 93% customer liking products which were exclusively at Tesco’s, 80% of the employees who were motivated by their purpose, an annual quantum sales of over £1bn and Diluted EPS of 15.4p . Lewis therefore established a compatibility between opinions and actions which led to the success of his strategies.
Competitive Advantage:
The strategy must provide for the creation and/or maintenance of a competitive advantage in the selected area of activity. Creation and maintenance of competitive advantage was created by the strategies created by Tesco. For maintaining this advantage Tesco created six key performance measures which included growing sales, delivering profit, improving operating cash flow, satisfaction of customers, providing power to colleagues and building trusted partnerships. With this simplification in the main performance indicators Tesco achieved the ‘advantage’ with 11.3% group sales, 33.5% operating profit, 9.8% retail operating cash flow and 77.5% of group supplier satisfaction.

Supply chain management :
Dave Lewis followed the supply chain management to make Tesco stable. A shift was made from a push to a pull in the supply chain with customers gaining more power in the marketing channel. Information systems gained more power and eliminated unnecessary inventory and he focused equally on both core and non core activities and increased its outsourcing. An effective supply chain management supply chain management with flexible organisations helps respond to customers faster ensuring profitability which is what Tesco under Lewis followed.


When Lewis became the CEO “There was no credible chairman or non-executives and colleagues were about to be prosecuted” said Clive Black. Now “The retailer’s departing boss did not solve all its problems. But the stable operation he leaves behind was in turmoil in 2014”.
In the year 2014 when Lewis joined Tesco as its CEO, an article by the guardian was written titled “We know Dave Lewis can sell soaps. Can he really run Tesco? “. The answer to that is a definite yes since he stabilised the company from its series of profit warnings and 33% share price drop to the success that Tesco is facing today and has definitely been this ‘Drastic Dave’ who back in Unilever was known for his ruthless approach to job cuts and excellent marketing strategies. He has followed this legacy even in Tesco.
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Mukesh Ambani becomes the 4th richest man in the world

Vaishali Singh

India’s richest leading businessman Mukesh Dheerubhai Ambani has already surpassed some of the biggest tycoons of the world in recent weeks, and has now become the 4th richest man in the world.

Reliance  Industries Ltd.’s chairman is now worth $80.6 billion, after amassing $22 billion this year, according to the Bloomberg Billionaires Index. That gives him a bigger wealth pile than France’s Bernard Arnault, whose LVMH Moet Hennessy Louis Vuitton SE has suffered from customers curbing high-end fashion purchases faster than the company can cut costs.

While the conglomerate with a huge energy empire was slammed by a slump in demand for oil amid Covid-19, its shares have more than doubled from a low in March as its digital unit got billions in investments from companies including Facebook Inc. and Google.

Ambani has slowly been shifting his focus to e-commerce, with tech giants seeking to take a piece of India’s fast-growing digital business. Google said last month it will spend $10 billion in the coming years to help accelerate the adoption of digital technologies in the world’s second-most populous nation.

Meanwhile, with LVMH shares down this year, Arnault has become the biggest loser among the world’s 500 richest people. His net worth has plunged $25.1 billion to $80.2 billion.

Globalisation- The Challenges and opportunities it poses to Business ethics.


“Globalisation is process by which events, decisions, and activities in one part of the world come to have significant consequences for individuals and communities in quite distant parts of the globe”. It refers to a deviation to a more unified, interdependent, consolidated and reciprocal, complementary shift in the world economy. In the past few decades globalization has become the buzz word and the focal point for most global companies. With the advent of globalisation various barriers in the business environment has been demolished with an establishment of direct contact with every part of the world which has resulted in the free flow of goods and services since the World War II with dramatic technological changes and development. This development has resulted in changes in life and living status of people, culture enhancement, easier penetration into markets, better communication, quicker flow of money and information, faster travel, global availability of any goods and services and enormous opportunities for the business and economy. With these advancements issues are raised on how companies will gain competitive advantage. Global brands gain the competitive advantage by being ethical. Though many believe that ethics and business cannot go hand in hand one cannot deny the fact that it is an important element of their strategic business goals taking the primary role in an vision and mission statement of any company. As William C Butcher, Retired chairman , Chase Manhattan Corporation puts it, ” “Ethical decision-making isn’t an option today. It’s an obligation-in business, in education, in government, in our daily lives” . Though every company strives to be ethical, the business industry has faced a plethora of unethical acts such as duplication of products, discrimination, child labor, money laundering, cyber crimes, sexual harassment in workplace, environment damages, stealing parents etc. Therefore many companies now have committed themselves to follow business ethics in order to gain competitive advantage, goodwill and a stand in the world of business.

Ethics helps in drawing the line between right and wrong with by imbibing certain principles, values and beliefs which fall into three categories : code and compliance, values and social outreach and it includes respecting differences culturally, honest communication and trust when posed globally.

Challenges /Threats :
A threat to enlightened self interest :
A major threat that globalization poses to ethics is going against the concept of enlightened self-interest. Enlightened self interest is a philosophy in ethics that states that a person or organization that acts to further the interest of others ultimately serve their own self interest which is simply put as “do well by doing good ” or “do unto others what you would want to do unto yourself “. But what globalization poses as a threat is the unenlightened self interest in other words selfishness or greed. Individuals might profit in the material sense by it but the commons are bound to suffer. Greenwashing is one such example of this unenlightened self interest which global companies follow with “Green” becoming one of the pressing words as the demand for green practices with companies striving to appear more sustainable than they actually are in practice for which they inevitably opt for the easy out by using green washing through marketing and advertisements by misleading consumers regarding the environmental practices of a company in order to appear environmentally responsible. H&M has been one such brand promoting greenwashing with its clothing made of sustainablly sourced material and in-store recycle bins where customers drop off their clothes and get coupons instead which is an ethical jumble since all this might seem like they are being “environmentally friendly ” but what they are actually doing is blurring the line between green and greed since giving more coupons is only going to encourage people to buy more clothes which accounts to profitability for the company but pollution to the environment.

A threat to the legal framework :
The world is a unified market and nations and states and there is a stimulation in the growth of the global economy with the increasing international trade and foreign direct investment (FDI). But liberalisation was also imposed on less developed countries who were unprepared to compete at the international market. As a result, the expected growth did not occur and even if it did, it did not bring benefits to all. Unfair tax regime has been imposed internationally which promote western standards which has led to the increase in inequality among the countries. Therefore only the international corporations are the beneficiaries of globalisation. This poses a disruption of ethics since globalisation not only promotes capitalism as a global system but empowers their role as political actors which ultimately implies “a going beyond the borders of state-nations, or even being above them”.
The government’s power is limited only to its boundaries and when economy transactions and connections is extended beyond regional territories, the more the business is prone to escape the control of the national government. A country tends to have a very different legal framework when it leaves it’s home country which gives the position to the managers when deciding on the right or wrong of any business practice. Business ethics begins where the law ends. A behaviour which is considered ethical in one country may not necessarily be ethical in another country. This also poses an issue in cultural differences. For example, The United States considers child labour as unethical but it is quite common in the Asian countries though there are laws that prohibit it. In the same way in China it is unethical to sack employees when faced with downturns but it is quite common in European countries. Therefore globalisation also poses a threat to the legal framework, for example in the above case, an US company might choose to enforce child labour while establishing a business in Asian countries and an European company might sack employees if needed so. Laws are just codified ethics but not all that is considered ethical becomes a law. Therefore this is threat to ethics in globalisation considering the fact that there is always a choice to decide to be ethical or not. For example, Nike products are produced majorly in the south east Asian countries and despite the enormous profits the company makes, these employees are paid low wages with long working hours. The sum of wages of 20,000 workers annual income ois equal to the amount paid to one of its celebrity promoters. Manufacturing outside home country is not unethical but paying substandard wages (which is considered unethical in the home country) is something that poses a threat to the legal framework and this is where corporate leadership plays a very important role. Other such threats include exploitation of workers, unhealthy labour practices, exploitation of tax loopholes, unethical financial processes etc.


Opportunities :
Ethics and corporate leadership :
Leadership works as a lever that is designed to support ethical conduct .Globalization poses a lot of dangers that require a leadership which is above all collaborative. There will be a destructive impact on the society if the leadership does not adapt to the changing environment created by globalization. Therefore, the role of corporate leadership is to strike a balance between the opportunities and the challenges that globalization extends by providing the type of ethical values that has its focus on addressing the pressing problems.
Ethics can help protect the society even before any law can because the development in technology is rapid and it is impossible for the government to regulate policies in the same pace. But corporate leaders and the corporate world know well in advance of the dangers in any technology therefore in a place where law fails ethics can play a major role. Therefore globalization provides this platform for the leaders in the corporate world to act ethical and protect even before the danger can occur. For eg, a firm managed by an ethical leader will take measures to prevent child labour or pollution even before any law can be regulated. Further more .A corporation is generally influenced by its leaders who are the primary promoters of ethical conduct Leaders. The leaders are responsible for the the code or conduct of the behavior of its employees and are responsible for the norms and codes of conduct that guide employees’ behaviour. This helps prevent hawking poor quality products and makes them compliant with the laws and statutes and develops their concern for the global communities.
Stakeholder vs shareholder :
A debate has always been a part of ethics concerning the shareholder and the stockholder viewpoints. According to the stakeholder a business has various duties towards the society, environmentally and socially in which it carries out its operation. On the other hand the shareholder view, the primary duty of a business is profit which are a part of its legal obligations to increase the wealth of a shareholder though the employer has his contractual duty towards his employees. A stakeholder business is a moral obligation whereas the shareholder model is a legal obligation. This can invariably pose a threat or provide an opportunity to business ethics. If a company chooses to follow the shareholder theory which enhances short term perspectives, then the company might pose a threat in case of ethics since most scandals and mishandling in an organization is caused by these short term perspective. For example, Adelphia communication which invented subscribers or Enron where the losses and debts where hidden in subsidiaries. But a stakeholder model adopts long term perspectives which does not just limit itself to the shareholder value of the company but also goes beyond and takes the value of the stakeholder into account. This is more relevant than the shareholder model since globalisation creates an atmosphere where both direct( like subsidaries in various locations) and indirect (eg, for raw materials) interactions are global, and beyond cultures and societies. An ethical company will help it’s stakeholders have a part in its success. For example, globalization will provide enormous opportunities for employees where they can integrate their goal and the company’s goal, globalization also provides variety of things for the customers to choose from ,suppliers to produce quality goods and services and to have ethical interaction with their customers etc. Therefore globalization can create a threat if the organization chooses to only follow the shareholder theory but a company to succeed in a global market it ought to act economical, ethical and social.

Professor Thomas Piper, an architect of the business ethics program at Harvard says
“Our emphasis is on a three-lens model: an economic imperative; a legal/regulatory imperative that connects to public policy concerns; and an ethical imperative”.
We believe that each lens is very important; no one lens is sufficient.” Therefore what can be understood is that globalization gives the privilege to the business organisations to choose between a threat or an opportunity and it does not pose any threat or opportunity by itself. It all depends on how ethical an organization and it’s leader is. It is in their hands to either change an opportunity into a threat or a threat into an opportunity.

Gender pay gap – What it is and the factors resulting in the pay gap

For the most part of history, gender inequality is a heavily debated topic of discussion because from time immemorial it is always the men who have been the dominating force in the society which are reflected in the benefits they receive.
Gender pay gap is the difference between wages and salaries of men and women. It is the median yearly pay of women working full-time and throughout the year compared to the remuneration of men in the same category. Other estimates are based on hourly or weekly earnings or specific to a group of women.
The term ” equal pay ” came into spotlight in the year 1963 when Former President John F Kennedy amended the 1938 Fair Labor standard act which was a part of his New frontier program. But this did not put an end to the gender pay gap which has been existing from the time women came into the workforce during the industrial revolution. Even until the year 2017, women earned only about 81.8% of what men were earning.
The gender pay gap has become a major topic of research with women playing a big role in labour force facing alarming pay iniquities. A survey conducted on a company’s database with responses from around 2000 working women drew a conclusion that about 68.5% of the respondents said that the management does not want to take any necessary steps to bridge this gap even if gender parity is a priority resulting in zero change. The article further said ” it’s not just ‘glass ceilings’, but also ‘glass floors’, ‘glass doors’ and ‘glass walls’ at the workplace”.
Factors resulting in gender pay gap :
Gender pay gap is one of the gold mine area of research in labour market because it has an immense impact on wages. Wages is the primary motive of any labour force and this wage is distributed unequally to the labourers based on their gender due to a number of factors . Factors that result in the gender pay gap include occupations segregation, direct pay discrimination and bias against working mothers. In addition, factors like disability, racial bias, age and access to education also affect the gap in gender pay.
Occupational segregation :
Occupational segregation is most often based on gender where, women in female-dominated occupations face two different marginalisation based on wage. Firstly the average wage of their jobs is lower than that in comparable male-dominated jobs, and secondly they earn less relative to men in the same jobs .Occupational segregation is evident within occupation differences in earnings rather than differences in occupation itself. To put an end to all occupational segregation caused by gender more than half of the women in the labour force will have to go in search of a different occupation. It is said that it will almost take would take 150 – 320 years for occupational segregation to reach the point of integration. Occupational segregation occurs majorly because of preconceived notions and assumptions on which gender is best suited for best role rather than considering the efficiency of the person. This has an effect on the economy because it limits the participation of the labour group due to which they inevitably adopt to sectors which correspond to their gender and also lowers the aggregate demand in the economy causing a fall in female wages and leading to the gap in gender. It was also found that UK attributes to about 17% of pay gap with occupational segregation by gender. The female dominated jobs include about 22 occupations which is compressed into seven groups which are Office and administrative assistance,Health care and care support, Cashiers,Food preparation, Early childhood care and education, Beauty and personal services, Maids and housekeeping cleaners who earn less than 15 dollars per hour which is less than what men earn in the same occupation and contributes to only about 93.5% of what men earn.
Bias against working mothers :
Bias against working mothers is a kind of discrimination women who are pregnant or who just delivered a baby encounter in their working space due to which they don’t get the pay they deserve. Working Mothers particularly face more discrimination and in account for most gender gap in wages in comparison to the non mothers. This status of being a parent had a toll only on the female applicants because motherhood is seen as culturally incompatible with being an ideal worker whereas fatherhood or the paternal wall bias does not exist because the man is looked as the package deal of being a good

father and a great employee and are expected to work even if they have a new born at home. An economic study proved that the difference in pay gap between mothers aged less than 35 and non mothers is greater than the gap between men and women. The various factors for this wage gap for working mothers included reduced investment in human capital, lesser effort and efficiency compared with non mothers. The “work effort ” hypothesis by Becker in the year 1985 concludes that it might be possible that mothers are less competent, committed and are less productive at work because they have spent all their effort and energy caring for their children. This discrimination can be based on three factors, which is skill, trait and behaviour. A research also said that this wage gap is likely to be prevalent either because working mothers are assumed to be less productive or because employers stereotype working mothers and discriminate them or sometimes the reason maybe the combination of the two.
Direct pay segregation
Direct pay segregation is when women are paid comparatively lesser than men and women for the same job. A survey in India came up with the finding that male members on company boards earned about 1.22 crores annually and the women board members earned only about 60 lakh annually which is two times lesser than what men boars members earn die the same job. This is because the society has a great influence on what roles each gender should posses and therefore puts a level of pay for each gender. Women are often considered inferior and less competent than their male counterparts therefore they are often paid lesser for the same work. This was believed to be because women had lesser human capital than men in terms of knowledge, skills and experience. A major example for this direct pay segregation is the pay gap between the women’s and men’s soccer team of the US. According to reports, the U.S. women’s soccer team are paid only $2 million for winning the FIFA Women’s World Cup while the men’s soccer team players are paid $35 million. This discrimination extends even towards the salary where women receive between $6,842 and $37,800, while the men receive up-to $50,000.
Age:
Age is one of the primary factors that widens this gap. Women are paid only about 90% of what men are paid on weekly basis which stays the same until around the age of 35 and then through retirement, women are paid 74–82 percent of what men are paid, depending on age. By the time workers reach 55–64 years old women are paid only 74 percent of what their male counterparts are paid. The gender gap is narrower when the working women are younger in age which includes women below their 35’s. This gap widens the most when they reach their forties reaching its widest point for women in their forties. The various reasons include that older women are found to have a have a lower level of education than the younger women who are already undergoing this wage gap and also because of their shorter span of time in their job tenure when compared to their counterparts.
Disability
Dsabled people experience low employment opportunities and even if they get an employment ,they receive less pay. The causes of the disability pay gap are complex. The rate of employment for people with disabilities was only 35% ,with 63% men and 57% women in the year 2014. Another factor for this gender pay gap is disability. It is measured by answering questions related to these six disabilities: hearing, vision, ambulatory(related to walking) , cognitive(understanding), self care and independent living. The bias on women with disabilities is more than that of men with disabilities, because they tend to paid lesser than men with disabilities even though both are are prone to disability. This disability does not just cater to physical disability but also mental and progressive illness. In the 2015 ACS report, it was found that disabled people made only 68% compared to what people without disabilities made. And among people with disabilities also women made only 69% compared to men.
Racism :
Racism in today’s world is a longstanding phenomenan which constitutes to double marginalisation in women because they face oppression because firstly they are women and secondly because they belong to a particular race. Though men who belong to a certain race also face this oppression, women are doubly taken advantage of. Most companies generally pay lesser to the women who are so called “black” or “discriminated “. A research stated that non-white people earn lesser than the whites which is associated with discrimination because they are believed to have poor command of the particular language or because they exhibit qualities which do not match with the culture they are put in. Therefore they become overqualified and underpaid for the job which results in the pay gap.
The above factors give way to gender pay gap to exist.

The gender wage gap is real problem affecting women all over the world. This gap should not just be considered as an evidence of gender inequality and discrimination but rather as a statistical artifact of failing to adjust for factors that could drive earnings differences between men and women.

Risks setting up international clothing brands in India

India is known to be the second largest populated country where “the old and the new, the traditional and the modern, and the local and the international coexist—sometimes comfortably sometimes not “. Here is a list of risks that companies will have to face while setting up a clothing brand in India.


Tough competition from local brands:
International brands will be put in a situation to face a competition from both the local brands in India and the global brands in India. The local brand such as TATA opens outlets through their zudio stores where the products fit the modern trends that equals the global brands and with none of the products costing more that 15 dollars( INR 1300 approx). The report from the World Economic forum in January, 2019 says that India will become the third largest consumer market and quadrupled household spending by 2030. The TATA group have also started shifted their focus on the trend conscious globalised population are building models with value proposition with is much stronger than international brands. Therefore international brands might have to face the risk heavy competition and a lag in the market with local brands which follows similar strategies as primark.


Currency fluctuation :
India is a country that continues to experience a fluctuation in its currency value with decline in the rupee. India is facing this fluctuation in currency which has an impact on its economy due to Wider current account deficits(CAD), low foreign exchange reserve, high fiscal deficit and higher inflation. This is a risk for clothing brands since the companies will have to face a decline in their income due to this fluctuation and primark will also be put in a situation to pay more for the imported goods reducing their profit margin.

Water scarcity and environmental risk :
The World Business Council for Sustainable Development states that water does not just provide a sustainable and peaceful environment but it is very much essential for any kind of business to operate. All apparel industries are the users of the maximum amount of water for business and they will be under threat as water scarcity in India is seeing a depletion in its groundwater putting it’s primary businesses at stake. The textile and fashion industry requires large amount of water to convert from fibre production to finished products. Hence it is a great risk for clothing industry to invest in India as it is facing a big water scarcity. India is among the 17 countries has extreme levels of water scarcity with the northern part which has a plenty of business hubs facing severe ground water depletion.

The environmental scenario of India also pose risk to international clothing brands as India is facing a dramatic change in climate for past decade which has resulted in floods, storms, cyclones and other natural disasters. India is deemed vulnerable to climate change impacts, adding it to the countries in the global climate risk index.


Understanding Indian Consumer:
India is a very diverse country with a vast mixture in the consumer pool. The Indian market varies from region to region in terms of usage, preferences, brands, tastes etc. And this serves as a risk because it is impossible to cover the expectations of each region being a foreign brand and also unlike in UK and other countries where the sizes are numbered from 6,8,10-12, the sizes in India ranges from from small(s) below to XL(Extra large) and beyond. Therefore customization in clothing to fit Indian consumers also becomes a risk. This is important to be considered as a risk because as Mr. Biyani, the CEO, Future Group and Managing Director of Pantaloon Retail, India puts it “Indian Consumers, unlike people elsewhere, demand ideas and solutions that are uniquely Indian.”


Bureaucratic barriers and taxes:
International brands will have to face the challenges of rampant bureaucracy at all levels since Foreign investors generally face challenges while dealing with of dealing bureaucracy at federal, state and local government. Due to India’s poor infrastructure intricate tax payment systems ,complicated tax and slow legal system therefore there is a delay and a sharp learning curve. For example, in the year 2015 the government introduced a new service tax with only a notice of two weeks notice which left the company dangling to cope with the accounting software which was not updated for the change. Though India has opened its borders for international trade for the exporting and importing of goods there are several layers of bureaucracy which makes it inefficient and challenging to move goods. Though the government creates special economic zones like streamlined exporting, setting up market in India is a risk considering the fact that “the ground reality is still an uphill task”. Businesses which operate in India pay up-to 33 tax payments a year . And apart from this headline corporation tax companies also will have to pay sales tax, dividend tax, property tax, fuel tax, vehicle tax, VAT and excise duty. The world bank stated that India’s tax system is so complex that it accounted about 214 on average in the preparation and payment of taxes with the GST( Goods and services tax) being the most complex of them all as the second highest tax rate in the world among 115 countries.


Infrastructure risks :
Business functions and operations are built on the core service of infrastructure. In a country like India which has underdeveloped and insufficient infrastructure which includes poor warehousing facilitates, uneven distribution of electricity, no safety standards etc. There is a potential risk which can have an impact on businesses due to poor amenities, ignorance and corruption.
Economic and political risks :
Foreign investors generally do not have control over the external events in India which affects their investments and plans in the country. The major political and economic risks include quick and unpredictable changes with regard to foreign investment, import and ownership but slow government decisions due to unstable political scenario. International brands will have to face various issues which include :
1)cultural problems, delays or legal disputes due to local partners and suppliers
2)labour unrest and industrial action
3)disruption of normal business due to social and political unrest
4)corruption and bureaucratic inefficiency
5)unexpected delays and cost-overruns due to overlapping governmental jurisdiction
6)fluctuation in interest, inflation and currency rates.

The risks might seem like a big barrier for international clothing brands to begin their businesses in India but these are risks can be overcome with various strategies.

TOP 9 Small Business & Start-Up Ideas for 2020 (ONLINE FROM HOME)

Today, we’re going to talk about TOP business ideas for 2020. They are not going to be those obvious ideas that you can think of yourself like starting a restaurant or a car wash; we are going to talk about ideas based on recent trends, recent growing markets.

How To Start A Business

A very important rule! If you decide to start your own business, your motivation shouldn’t be because someone said: “It’s going to be a great business!”. Your perfect business idea should consist of the following things: it should be something you like doing and it should be something you are really good at.

1. Coworking Space

Remote workers are spurring on a new revolution for white-collar professionals, as many roles traditionally set in the office space transition to working via the web. Since loneliness is an all-too-common affliction for remote workers and working from a coffee shop isn’t always the quietest choice, the appeal of shared coworking spaces grows each year.

2. Posture Corrector

Nowadays, people constantly hunch over their phones and laptops, it’s no surprise that there’s been a rise in back and neck pain. The keyword “posture corrector” gets about 74,000 monthly searches proving to be a great startup idea for new entrepreneurs.

3. Fitness Tech

Apps related to diet and fitness account for 3.31% of all app on the Apple Store. People are constantly on the move. Making it possible for consumers to fit daily workouts conveniently into their crazy schedules closes another barrier to a healthy lifestyle.

4. Men’s Cosmetics

Men’s cosmetics industry is worth approximately $3.4 billion. One of the most popular niche products targeting men is beard oil, a part of the male grooming industry that makes approximately $6 billion in annual sales. Approximately 39% of American men have beards.

5. Food truck

Food trucks represent all the benefits of a restaurant but without the initial investment of a brick and mortar business space. Only 10-20% of food trucks fail, whereas the failure rate for new restaurants can be as high as 90%.

6. Healthy Fast Food

Think about why people flock to their favorite fast-food chains. The price, speed, and convenience offer consumers a quick way to eat on the go and on a budget. With high demand and low competition, healthy fast food makes a great business idea for 2020.

7. Reusable Bags

As people become more conscious of the waste they produce in their homes, some are starting to use reusable bags to lower the amount of plastic waste. Business ideas centered around preserving the environment can help you build a socially conscious brand.

8. Smart Apparel

With smart apparel’s surging growth rates, this niched industry is looking to net over $4 billion by 2024. This subsector is still so new, making it fresh for innovative ideas from budding entrepreneur techies.

9.Travel Consulting

If traveling is your passion and you are always updated about things like best airplane ticket options and hotel deals, then you fit the bill. You can start by helping your family and friends, securing the best travel deals and selling rewards flights.

Hope these ideas are useful to young budding minds out there looking forward to being Entrepreneurs of tomorrow!

7 Online Business Anyone Can Start (No Scam No Investment)

Earning money has always been associated with and restricted to traditional ‘offline’ route. With the Internet taking over a large part of our lives, more people are looking to ways to earn money online to increase their financial inflows.

Photo by Andrea Piacquadio on Pexels.com

However, you should be careful of the platform that you opt for. While there are numerous ways to earn money online, some of these might be fake, thus taking you for a ride. Also, do not expect to earn a huge amount quickly when using online avenues.

1- TEESPRING

Teespring is a free platform that lets you create and sell over 50 kinds of products with no upfront cost or risk. We handle everything, from printing to shipping to customer service. Teespring is for everyone—from entrepreneurs looking to start their own online business, to Creators wanting to offer awesome merch to their fans, to charities looking for a hassle-free way to raise funds, and everyone in between.

Use Teespring tools like stores, promotion codes, buyer messaging, and more to maximize your sales! We can even list your products within the most powerful global marketplaces like Amazon, eBay, and more through Teespring’s Boosted Network.

How do I make money using Teespring?

You choose the selling price and profit for all of your products. When a product sells you get to keep the profit. For example, the base cost of a t-shirt is $10 and your selling price is $24; when you sell a shirt you will earn $14. Once the orders are processed your profit will be available for withdrawal in the Payouts section of your Teespring account. Don’t forget the more you sell the more profit you can earn per product per month.

2- Merch by Amazon

Basically, if you have 100 t-shirts in your account, you could expect to make about … This is a conservative estimate, about $150 a month. If you have 1,000 t-shirts in your account, you can expect to make maybe $1,500 a month. If you have 8,000 t-shirts in your account, you could expect to make about $12,000 a month.

Merch by Amazon is a very cool startup type program by Amazon. It is a pod program where you can sell tshirts, sweatshirts and hoodies in USA. Anyone can participate as long as you have payoneer. For Indians, there is a 15% tax on earnings. (No wonder taxation is theft as we have to pay tax on those earnings in India as well. But then IRS are a bunch of thieves)

3- REDBUBBLE

The designers earn royalties from the sale of their creations. They receive a percentage of the profit and the rest of the funds account for the fee paid to Redbubble and the manufacture of the merchandise. The site then handles the inventory and shipping transactions on your behalf.

The designers earn royalties from the sale of their creations. They receive a percentage of the profit and the rest of the funds account for the fee paid to Redbubble and the manufacture of the merchandise. The site then handles the inventory and shipping transactions on your behalf

4- UDEMY

One of the best features of selling classes on Udemy is the fact that it can become an excellent source of passive income. Once you create and post a course, it can earn you money for a long time without additional work. It just might take more work to market your course to potential students.

For example if a student purchases your course using an Instructor Coupon code, either from promotions to your own audience (e.g., your email list or YouTube subscribers) you can make 97% revenue share. Alternatively if the course is sold via an Affiliate, the split is 50% affiliate, 25% Instructor and 25% Udemy.

5- AFFILIATED MARKETING

Affiliate marketing is one of the oldest marketing practice which gains affiliates a commission in the case of sale based on the affiliate’s recommendation. It is one of the cheapest and easiest ways of marketing as you don’t need to create and sell a product. Just one thing you need to do is to enable a linked connection between buyer and seller and take your commission when the sale is made.

As you see, affiliate marketing is a passive income source. It is highly competitive it is true but still it may be so easy to make money online with affiliate marketing. To be successful, you need to learn what works and what doesn’t while promoting your products.

There are many affiliate marketing works. So, you need to be patient. You can feed your website with qualified content to get high ranking positions and raise awareness, attend affiliate marketing events, seminars or webinars and join a discussion forum or online communities to meet new people. All make a great contribution to develop you. Naturally after these contributions you will be more passionate to make money from affiliate programs. If you are patient enough you will make money with affiliate programs. 

6- YOUTUBE AFFILIATED MARKETING

You can make money on YouTube by doing affiliate marketing, which is including links to products you review and use in your videos that will track a purchase. If someone makes a purchase using your affiliate link, you receive a small commission for the sale.

Another thing about affiliate marketing is the payout percentages as well as how these people track your viewers who are clicking on these links. Every time someone clicks on one of your special tracking affiliate links, a little cookie is put onto that person’s computer to track what they purchase. The best part about the cookies is that if you link to a specific product, they don’t have to purchase that product. Anything they purchase on that website, you get commissions for. So they could click over with your affiliate link and that cookie and decide not to purchase that, but purchase a whole bunch of other things, and you get paid commission off it.

7- EBATES REFERRALS

You can still make money without a blog! In fact, you can make some major coin with the Rakuten Referral Program simply by inviting friends and family, using your social media networks to the fullest – including Pinterest – and even promoting in neighborhood groups and forums.

Have friends and family share your link. If you are saving for something special, and they feel like they can be a part of it, they will likely glady share the opportunity with their followers.

Of course, using the strategies above won’t hurt either. Pay special attention to numbers 3 through 5 and remember – have fun with it, but own it!

Business of NGO’s

India, a country of 1.5 billion people has a long tradition of social service, social reform and voluntary agencies. This tradition was further cultivated with the emergence of NGOs that cropped up soon after independence when Mahatma Gandhi made a plea for dissolving the Indian National Congress (the political party which came into power upon Independence), and transforming it into a Lok Sevak Sangh (Public Service Organization). The plea however, rejected did not halt the formation of NGO’s in India. Many followers of Gandhi established voluntary agencies to work closely with the governmental programs on social and economical issues. These agencies organized handicrafts and village industries, rural development programs, credit cooperatives, educational institutions, etc.

But in 1960, the NGO’s went through a second phase of transformation when governmental programs seemed to be inadequate to deal with the deprived sections of India. These grass roots organizations worked at the micro-level with limited resources and lack of coordination to deal with issues such as bonded labourers, landless farmers, poverty etc. With the coming of economic reforms and introduction of the Sixth Five Year Plan (1980-1985), the government identified new areas in which NGOs as new participants could participate in the developmental process of country.

These areas included:

  • Optimal utilization and development of renewable source of energy, including forestry through the formation of renewable energy association at the block level.
  • Family welfare, health and nutrition, education and relevant community programs in the field.
  • Health for all programs
  • Water management and soil conservation
  • Social welfare programs for weaker sections
  • Implementation of minimum needs program
  • Disaster preparedness and management (i.e. for floods, cyclones, etc)
  • Promotion of ecology and tribal development, and
  • Environmental protection and education.

With the opening of avenues in the job sector today NGO is considered as a viable option for many to take it up as a profession.

An NGO stands for Non-government organization. The term originated from the United Nations and is normally used to refer to organizations which are established for some specific purpose but do not form part of the government and are not conventional for-profit business. In the cases in which NGOs are funded totally or partially by governments, the NGO maintains its non-governmental status by excluding government representatives from membership in the organization. NGO’s pursue some wider social aim that has political aspects, but are not overtly political organizations such as political parties Today; India has a vigorous NGO sector. Although there has been no complete census of NGOs, it is estimated that about 25,000 to 30,000 are active in India.

A decade ago, NGOs were fairly peripheral in the global as well as national platform but now they participate actively in various political, economical and social matters. The involvement of NGOs in making decisions on the environment, sustainable development and human rights have increased the legitimacy and transparency of intergovernmental deliberations. NGOs come in all sizes, shapes, ideologies, nationalities, organizing structures and styles. Some focus on mere local issues while some address issues that span the entire globe. Their very diversity reflects the complexity of these organizations.

NGO may be a ubiquitous term, but it is used to describe an array of groups and organizations – from activist groups to development organizations delivering aid and providing essential public services. Few NGOs are research-driven policy organizations, looking to engage with decision-makers. Still others act as watchdogs, casting a critical eye over events like domestic violence or female infanticide. In a nutshell, NGOs encompass everything from charities and relief agencies to political parties; think tanks and academic centers to community organizations; cultural associations to continent wide farmers’ networks; women’s groups to environmental federations; social movements to human rights and religious groups.

Some of the noted NGOs organizations are the International Red Cross, Oxfam Care, Amnesty International, World Federation of United Nations Associations, etc. In India, Smile Foundation, Help Age India, Goonj, Udaan are some of the prominent ones. Many of us view NGOs as promoting socially responsible activities and engaging in philanthropic efforts. What is less known is that several are also partnering with major corporations around the globe to fund themselves ? With the retreat of the state from a number of public functions and regulatory activities, NGOs have begun to fix their sights on powerful corporations – many of which can rival entire nations in terms of their resources and influence.

On the surface, such partnerships may seem strange, since historically business and NGOs have had a somewhat traditional relationship (mostly instigated by the NGOs). But enlightened companies and a few business-friendly NGOs have realized that their interests are more often aligned than not, and they have much to gain from working with one another. With funding or aid becoming an important factor NGOs want to make a big impact so they choose their corporate partners carefully. They look for opportunities where they can participate in a partnership and make a transformative change.

NGOs are also seeking promotion and publicity for their efforts. They insist on being able to communicate the results from corporate projects in the hope that it will spur other companies and industries to adopt similar practices. But sometimes, NGOs often communicate in language that is not relevant for business. Many companies are also reluctant to engage with NGOs because they don’t know where to start, or they consider themselves to be too far behind, and fear they will be ostracized for it. Another concern is the cost of these “partnerships.” Both sides should also clearly spell out their objectives, and identify the outcomes they have in mind to define success, and avoid shocks down the road.

Some research has shown that many are still toddlers and only a few NGOs know how to communicate effectively with business. Businesses cannot relate to goals (however noble) related to climate change and oceans and making the world a better place. They need to know how an NGO can solve their business problems, in language that relates to their objectives and challenges. And with the coming of globalization now NGOs can also be more open to, and pro-active in forming, partnerships with business. NGOs have played a major role in pushing for sustainable development at the international level. Much of the credit for creating these trends can be taken by NGOs. But how should the business world react to NGOs in the future or should they hold out hope those NGOs can sometimes be helpful partners?

Public surveys reveal that NGOs often enjoy a high degree of public trust, which can make them a useful tool but not always sufficient for the concerns of society and stakeholders. Not all NGOs are comfortable to collaborate with the private sector. Some will prefer to remain at a distance, by monitoring, publicizing, and criticizing in cases where companies fail to take seriously their impacts upon the wider community. However, many are showing a willingness to devote some of their energy and resources to working alongside business, in order to address corporate social responsibility. But the paradoxical situation is that with the long-term aid people get aid for being poor. Poor people get extra food and other benefits. But those struggling out of poverty get little or no assistance.

While society by and large would agree that NGOs benefit the world from a social perspective, we suspect most of the business community would say that NGOs’ objectives are not aligned with their own. NGOs in general, and the activist ones in particular, need to do a better job of communicating their value proposition in language that business understands, and business needs to be more receptive to listening to, and working with NGOs.

NGOs want to be heard. Most have noble ideals and goals and want to make a difference. Even if business does not partner with them, it should listen when they come knocking the doors.

How to Become Rich Faster than Others (Practical Steps)

Everybody wants to become RICH one day.

Still, how is it that some people have all the answers? How do the rich keeping getting richer while the poor keep getting poorer? Is the game actually rigged against us? Are we, in fact, doomed to live ordinary lives, merely controlled by our hedonistic desires and pleasures, forced to succumb to our animalistic urges, never able to actually get ahead in life, let alone get rich? Or, is there some solution? A way out, if you will? 

How to Become a Millionaire and Get Rich the Right Way

Clearly, these are questions posed by the masses. But not everyone can pull it off. What separates those who seem to have all the answers from those that are constantly jumping from one ship to the next, never able to truly find their gravy train? Well, the answers are far simpler than most would imagine. 

Don’t spend more money than you make.

 Not many people follow this advice. Many are focused on spending as much as possible. Whether it’s to revel in the perception of being more well-off than they actually are, or some other purpose, this is the truth across much of the developed world. 

Keep a Diary of your Expenses.

Benjamin Franklin once said, “Beware of little expenses. A small leak will sink a great ship.”

As easy as it might seem to ignore the little stuff, so to speak, the more you sweat the details, the better off you’ll be. Cancel that gym membership you haven’t used in six months. Eliminate that costly cable television plan. Stop buying expensive lattes and eating out when you know you can’t afford to do it. Download an app or purchase a small notebook and track every expense no matter how small or how big. 

Quit all the Bad Habits- drinking, smoking, gambling, etc.

Bad habits hold us back from achieving many kinds of goals. They stop us from losing weight, making more money, saving, investing and everything in between. The only way you can actually get ahead in life is to decimate those bad habits. You need to quit the bad habits before they lead you down a deathly spiral. 

It’s hard to achieve something that takes so much of your energy, such as getting rich, without eliminating your bad habits first. I’m not just talking about poor financial habits; I’m also talking about any other habit that eats away at you, physically, emotionally or mentally. 

Save 20 % of your Income every Month.

In order to get rich, you need to save at least 20 percent of your income off the top. Everyone has heard this before, but how many people actually follow this advice? 

The term “pay yourself first” holds major weight here. While some don’t find the importance in this, others realize that this not only provides a rainy-day fund in case of emergencies, but also moment-of-the-opportunity cash. When the right opportunity comes by, you need cash to seize it. If you don’t have the cash, you just missed the proverbial boat. 

Pay-Off your Debts.

When you’re debt-free from the bad debt (not the good debt like mortgages for investment properties and loans to grow you business, for example), take that money and put it towards your savings. The trick is not to go spending cash and splurging on a vacation or a new car once you’re debt-free. Stay focused. 

Don’t Rent but Own your House.

No matter what it takes, even if you have to downgrade your living situation, you should do what it takes to purchase a home. Sit down with a mortgage broker and assess your situation. Set some goals and create a plan of action.

Even if you don’t have enough money saved for a down payment right now, figure out what it’s going to take to buy your home. We’re not talking about your dream home here. However, over time, the money spent on your mortgage is far better invested than money spent paying rent. 

Invest, but only after Researching the hell out of it.

Many people invest for the sake of it. If you don’t have proper knowledge about the plans your investment offers then you might never really grow your money in it. The better you know an industry or niche, the more likely you’ll be able to spot ideas that could possibly create massive amounts of income for you in the future. No one else is going to do this for you. And when you do invest in something that you know, be sure to track it vehemently.

Multiple source of income but not mainstream.

Anyone who’s serious about getting rich needs to build multiple streams of passive income. Passive income is incredibly important when it comes to amassing wealth. Simply put, you to need to generate your income on autopilot if you want to create a considerable net worth. 

There are a number of passive income generating ideas that you could implement. Some of the most popular involve real estate and dividend income for those that can afford the often high-cost barrier of entry into those fields. Others opt for generating passive income by starting a blog, creating digital products such as e-books or courses, and even creating online tutorials, just to name a few examples.

Time Value of Money.

We all have the same amount of time in this world. You don’t have more than the next person and that person doesn’t have more time than another. No matter if they’re a powerful politician, a business magnate or a famous athlete, they don’t have more time than you do. Time is life’s greatest equalizer. 

It all depends on how you utilize your time. Every second is precious. Become lazy or procrastinate and lose your dream of being rich.

Rome was not built in a day.

Daily goal setting provides milestones on your way to your bigger goals. Break the big goal down to achievable daily goals that won’t seem so overwhelming. For example, if you want a $10 million dollar net worth in the next five or 10 years, figure out what it’s going to take on a daily basis to move closer to that goal. 

TOP 7 ‘WORK FROM HOME’ BUSINESS IDEAS IN LOCKDOWN 2020

the spread of Corona Virus and strict lockdown in the entire nation, everybody is looking for – Work from Home options. However due to the shutting down of businesses, Companies are not in hiring instead they are laying off employees due to recession. Many home-based businesses can be started with very little money and very little experience. How do I know? Because I’ve been there and I’ve done it.

You can begin small, even part-time. And then you can grow them at your own pace. You can make excellent profits even with a very small home-based business. And if you want you can grow it into a much larger enterprise. So even if you don’t have much experience or savings, you too can start your own home-based business and become highly successful.

The key behind a successful business is finding out the DEMAND in the market depending on the situation and customer needs. With Corona Virus being the topic of this year, the demand for related products like hand sanitisers and disinfectants have surged more than these manufacturing industries could ever imagine.

But what can I do sitting at home? It all starts with an idea, hence here are the Top 7 business ideas that can be executed from home during covid-19 pandemic:

  1. Tiffin / Lunchbox Service:

After the entire Nation shut down, many students who lived in hostels and bachelors who were dependent on outside food were left hungry and starving. At such times starting a Dabba Service will not only earn profits but also blessings from these people struggling to find home-cooked food.

In order to run Tiffin service successfully, you will require more than a passion for cooking. Furthermore, you will need good planning and management skills as well as flexibility to successfully handle any last-minute changes required by customers.

How successful your Tiffin service will be will depend mainly on having good reputation. For this business setup to succeed therefore, you must be able to meet the needs of your customers and have the ability to work well under pressure.

Things you require for a Successful Take-off:

  • Table cloths 
  • Kitchen facilities
  • Tables
  • Tiffin boxes
  • Serving equipment
  • Utensils – silverware, glassware
  • Simple but healthy home-cooked meals preparation
  • Online Tuitions & Tutoring:

Schools and Colleges have shut down leaving a big stress among everybody. Students are concerned with completing their portion without their teachers. At such times the need for online assistance for education is at a rise.

Online tutoring is a profitable business. This industry is developing rapidly with advent of innovations, technologies and wide spread usage of the internet. Parents and students are comfortable with online tutoring websites for their personalized learning requirements.

PRIVATE ONE-ON-ONE TUTORIALS (ONLINE) -

Things you require for a Successful Take-off:

  • Start a face-to-face video conferencing.
  • Speak to each other with high-quality and excellent voice.
  • Write, type, erase and draw in distinctive colours on digital advanced whiteboard.
  • Text chat via instant messaging.
  • Upload and share files.
  • Alter message progressively with other person seeing what you are doing. Access the session from all devices.
  • Mask Stitching and Selling:

The world has changed. Not only has the world economy shut down, but people are also on edge. This is likely because we can’t leave our homes, and this can lead to isolation. Nowadays you cannot spot a single person on the streets without a mask covering their face.

If one is good at stitching at home, then this is a golden opportunity to not only earn money but also get creative. People are bored of the old plain mask and hence are looking for designer and customised masks. One can use their own imagination and entice people with your unique masks.

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Things you require for a Successful Take-off:

  • Face Mask Cloth
  • Mask Inner Ear Loop threads
  • Paints, beads, needle works
  • Stitching machine or sewing machine
  • Needle and thread
  • Online Fitness and Yoga Coach:

The threat of coronavirus has left the fitness industry ailing and barely able to stand with smaller gyms on the verge of shutting down, larger chains contemplating huge losses and unemployment becoming a very real prospect for many thousands of trainers and support staff.

However, if you have a laptop and good functioning internet connection you can become a fitness coach for everybody missing the gym and looking for services from home. With people wanting to keep themselves fit and improving their immune system, Yoga trainers are high in demand.

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Things you require for a Successful Take-off:

  • Create a virtual workshop using online studio software
  • clean background
  • remove clutter and distracting objects
  • place select “yoga” objects in frame if desired
  • Use a tripod if you can
  • Test to make sure that the camera can capture you in all your poses
  • Use impeccable, clear language (don’t rely on video)
  • Embrace imperfections! Be human and carry on.
  • Cake Baking for Special Occasions:

Are you the one that makes killer cakes for every birthday? Do you churn out to-die-for donuts? If you’re ready to turn your talents into a profitable bakery, you’ve come to the right place.

No matter what the situation, the show must go on. Cakes have been the symbol of any kind of situation since centuries. But with all CAKE SHOPS and bakeries shut, one cannot access them for special occasions. If you are a good baker, then this is your time to shine. Homemade cakes will be a hit and people will be assured about its safety.

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Things you require for a Successful Take-off:

  • Mixers
  • Oven
  • Dough proofer
  • Bakeware
  • Tools for measurement
  • Ingredients as per flavour
  • Refrigerator
  • Bread slicer
  • Dough mix
  • Cardboard boxes
  • Piping bags
  • Dairy products
  • Display case
  • Gardening and selling Organic Fruits & Vegetables:

If you are interested in gardening at home and have enough space to grow more for everyone then organic farming is a great business idea. With today’s vegetables being produced with pesticides and chemicals

Growing a garden for profit is something that definitely needs to be kept simple. The reason is that if you try and do a whole bunch at once, then you won’t be great at any of it. If you pick a few simple and small things to start out with, then you can work to perfect those things and be much more successful.

I learned that the hard way because I wanted to sell EVERYTHING out of my garden. Well let me tell you, that is impossible without a team of employees. You just can’t do it well, so don’t try it.

Discover the joy of growing a kitchen garden – Green Station

Things you require for a Successful Take-off:

  • Put them in baskets
  • Order personalized boxes with your logo/brand name on them
  • Make signs that tell about your unique produce
  • Include a recipe card for how to cook with it
  • Organize the different colours in patterns
  • Put the containers on their sides so they appear to be “overflowing” with fruits or vegetables
  • Incorporate wheelbarrows, gardening tools, flowers, etc. into your display
  • Build your own shelves to sell from that stand out
  • Design a logo or picture to use for your new “business”
  • Take attractive pictures of your produce for your display
  • Use tablecloths or nice napkins that make it feel more high end and less dirty.
  • Customised T-shirts and Dresses Painting :

Whenever people think about starting a business, a t-shirt company is probably one of the first five ideas that come to their mind. Why? Well, t-shirt printing business looks like fun and cool. To some extent, they are right. Being your own boss, having own t-shirt designs, selling them with your brand label, having people supporting your work – that’s happiness. Isn’t it?

If you enjoy T-Shirt painting, then there is a whole lot of millennial generation ready to throw all their money at your unique art and designs.

Henry Li showing how to paint a T-shirt with liquid acrylic paints ...

Things you require for a Successful Take-off:

  • Plain t-shirts
  • Fabric paints
  • Tracing paper
  • Sunlight
  • Innovative and creative designs
  • Trendy drawings
  • All size t-shirts

So there you have it in a nutshell- First you need to decide where you are going to sell your produce. Then you can decide what you are going to sell.

Remember your business will grow if people are happy with what they buy from you. Make it look nice, and only sell the best you have.

Now you are all ready to go for it! Good luck!