Why do the Factories work in low capacity?
The Answer to the question with every layman that why if a factory has a capacity of X units actually operates in under utilization of full capacity i.e. (X-dx) unit
The answer lies in the facts of sales model
It is taken into consideration that Net working capital when calculated in the form of percentage of sales the growth is shown ideal but that is not the case in actual life, There is already some Working capital involved more than required and the Net working capital is calculated by adding that amount already involved added with the percentage of sales
Networking capital=mY (m stands for the percentage factor &Y stands for sales revenue)
Actual Net working Capital =$50+mY
Another factor is when firm operates in full capacity then to show the rise in sales figure gradually it is not possible unless there is new investment on fixed assets like plant and machinery whereas it becomes easier till a point to add sales if the capacity of the plant is under utilized.
After a point for a small increase in sales one has to undergo a investment on the plant and machinery .
In this Till point A to B the plant can show the increase in sales growth without adding the capacity but after the point B it becomes real necessity to increase the capacity utilization
Wednesday, February 14, 2007
Monday, February 12, 2007
Competing with the customer
In service Industry Competition has taken its own transformation .Today as a Service vendor sells a service the primary concern for the Market aspects rises from Market dynamics, Market size, Number of Players,Market share etc.
There is more to this concern as can be seen as a potential in near future - Customer themselves. There are many things a Person does themselves so that they don't have to return to the vendor and spend more money .
this is a Marketing challenge for many Organisation which are generally into the Third party services , Customer premise services, Maintenance etc. The examples does not just spreads to the realm of household services of plumber, electricians etc . even the Corporate world faces the same .
Actually to be seen in a bigger picture this is not a issue at all it has always been like this , any one who can venture on can " Do it themselves" but then how can this be fought in a market place is a tough ask.
there is no clear bound defined paradigm and periphery under which a " DO it themselves" service can be defined ,but in reality this happens with every one . How can a Basic maintenance Organisation come over with a tactic to curb this tendency . AS Phhyschologically this tendency is natural and happens with every one .
AS a human an activity is tried first and then asked for help .
There are many aspects to this physche but my article will only base this as an assumption that there can be a way out to market a service to Compete with the " DO it themselves" tendency.
There is more to this concern as can be seen as a potential in near future - Customer themselves. There are many things a Person does themselves so that they don't have to return to the vendor and spend more money .
this is a Marketing challenge for many Organisation which are generally into the Third party services , Customer premise services, Maintenance etc. The examples does not just spreads to the realm of household services of plumber, electricians etc . even the Corporate world faces the same .
Actually to be seen in a bigger picture this is not a issue at all it has always been like this , any one who can venture on can " Do it themselves" but then how can this be fought in a market place is a tough ask.
there is no clear bound defined paradigm and periphery under which a " DO it themselves" service can be defined ,but in reality this happens with every one . How can a Basic maintenance Organisation come over with a tactic to curb this tendency . AS Phhyschologically this tendency is natural and happens with every one .
AS a human an activity is tried first and then asked for help .
There are many aspects to this physche but my article will only base this as an assumption that there can be a way out to market a service to Compete with the " DO it themselves" tendency.
Wednesday, February 07, 2007
India Bets
On the arrival of March 31 there is no more bigger scare to salaried class than the tax saving grind.
Every one goes through this more over every salaried person undergoes the same fright every year that whether the savings enough , whether one will be able to save the tax and keep the govt. goons at bay.So here is another way of looking at this the promotion of savings to be done by each person at the limit of one lakh under which things like - ELSS MF, Edu loans, Infrastructure bonds, PPF, NSC, POST office savings comes in.
Well so most people look for faster way to earn and they look on to Mutual funds where the view is they give bigger returns than instrument mentioned . Flip side is they have there risks but as many are betting on the Indian Economy and running bull market the bet is like promising risk which is too hard to leave by.
AS the growth story goes on and on and many making millions every small investors mainly the salaried class looks into this opportunity .
So her eon a opportunity to bet. Bet on a Fund manager who is running some fund by some Asset management comapny with the likes of HDFC, SBI, ICICI, REliance, Sundaram, ING, Principal , Birla etc.
SO how can Govt. still thinks of banning on betting well they say share market is not betting well it is right in some sane senses but what about insane senses .
Well this is sheer pleasure of betting on the growing story of Indian bull market .
There is ban on betting on Cricket, sports . Ban on playing roulette, poker. But there is no ban on Derby, no ban on lottery and of course betting on some share , some company some person who owns them ..
There is some reasonable explanation done in every legal and illegal activity by every govt. across the world and most have the same funda .
anyhow each of us are onto the same betting on the investment of there hard earned money to give returns some day .. poor Middle class
Every one goes through this more over every salaried person undergoes the same fright every year that whether the savings enough , whether one will be able to save the tax and keep the govt. goons at bay.So here is another way of looking at this the promotion of savings to be done by each person at the limit of one lakh under which things like - ELSS MF, Edu loans, Infrastructure bonds, PPF, NSC, POST office savings comes in.
Well so most people look for faster way to earn and they look on to Mutual funds where the view is they give bigger returns than instrument mentioned . Flip side is they have there risks but as many are betting on the Indian Economy and running bull market the bet is like promising risk which is too hard to leave by.
AS the growth story goes on and on and many making millions every small investors mainly the salaried class looks into this opportunity .
So her eon a opportunity to bet. Bet on a Fund manager who is running some fund by some Asset management comapny with the likes of HDFC, SBI, ICICI, REliance, Sundaram, ING, Principal , Birla etc.
SO how can Govt. still thinks of banning on betting well they say share market is not betting well it is right in some sane senses but what about insane senses .
Well this is sheer pleasure of betting on the growing story of Indian bull market .
There is ban on betting on Cricket, sports . Ban on playing roulette, poker. But there is no ban on Derby, no ban on lottery and of course betting on some share , some company some person who owns them ..
There is some reasonable explanation done in every legal and illegal activity by every govt. across the world and most have the same funda .
anyhow each of us are onto the same betting on the investment of there hard earned money to give returns some day .. poor Middle class
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