Management of Risk – An Art or a Science?

BUSINESS RISK is a term that explains the difference between the expectation of return on investment and actual realization. In CAPITAL BUDGETING, several alternatives of investments are examined before taking an investment decision and only then the Director Director of the firm along with financial executives gear up for investing in a project that is sound and feasible. Even then the project may not become viable and may not work to our expectations due to the fluctuations in the economic environment.

So, the million dollar question arises, Whether to invest and if invested, will it fetch me profit? See, you can not have the cake and eat it too. Risk factor prevails in all kinds of environment and we try to over react in a business arena since it involves huge investments. But remember, MONEY WILL MULTIPLY IF YOU MANIPULATE IT WITH CARE.

Business firms commit large sums of money each year for capital expenditure. It is therefore essential that a careful FINANCIAL APPRAISAL of each and every project which involves large investments is carried out before acceptance or execution of the project. These capital budgeting decisions generally fall under the consideration of the highest level of management.

Factors of risk to be considered before investing:

  • Time value of money
  • Pay back period
  • Rate of return on investment (ROI)
  • Uncertainties in the market
  • Cost of debt
  • Cost of equity
  • Cost of retained earnings

Factors to be monitored after investing:

  • Maximizing profit after taxes
  • Maximizing earnings per share
  • Maintain the share prices
  • Issue of disputes
  • Ensuring management control
  • Financial structuring

Cost of capital reimbursers to the opportunity cost of the funds to the firm ie, the return to the firm had it invested these funds elsewhere. Thinking businessmen like RATAN TATA, DHIRUBHAI AMBANI and the like have also mastered the art of capturing the market by INNOVATIVE THINKING THAT PROVIDES GOOD TO THE MASSES.

While making the decisions regarding investment and financing, the Finance Manager seeks to realize the right balance between risk and return. If the firm borrows heavily to finance its operations, then the surplus generated out of operations should be sufficient to "SERVICE THE DEBT" in the form of interest and principal payments. Th e surplus would be greatly reduced to the owners as there would be heavy Debt Servicing. If things do not work out as planned, the situation becomes worse, as the firm will not be in a position to meet its obligations and is even exposed to the " DANGER OF INSOLVENCY ".

Considering all these factors, we have to come to the conclusion that FINANCIAL MANAGEMENT is like the BACKBONE of a business firm and WORKING CAPITAL MANAGEMENT will be the blood flow infused into the body. Risks arise ONLY IF WE MISMANAGE, otherwise in a business everything goes as planned and I feel that luck does not favor anyone who is poor in planning and not ready to work hard.

Why They Avert Learning?

The success of any organization depends on the attitude of organizational members towards the process of learning and how they operateally define it. Mostly top management of any organization argues that, they know how to learn but actually they do not know at all. They believe that learning is the process of correction of errors but ignores the problem inwardly. They think learning is a one way process and spend their lives in this dilemma. According to the experts, learning occurs in two ways. One is single loop learning (eg Air conditioner tripped on specific room temperature) and the second is double loop learning (if air conditioner asked why I am fixed at specific temperature and explore about other options).

Professionals are good at single loop learning but not at double loop learning. Because they rarely face unfavorable situations in their lives and when they face undesired situations, they become defensive instead of being realistic. They start blaming on others as the reason of problem. Blaming on others blocks their own learning process. Companies should learn how to break the barriers among their members and make them double loop learners. They should make them able to do reasoning of their own behaviors. There was a famous consulting organization which provided services to different companies. According to the feedback from the clients, they were very much satisfied with the performance of consulting services but the CEO of that consulting organization was not satisfied with the performance of his own staff. He was worried about the performance of the employees and think that the employees are not meeting with standards. He decided to get help from the external consultant to unaware the problems facing by the employees.

During the initial meetings, members were not comfortable to share the problems but after the series of meetings with external consultant they opened up and raised some points. They said that the clients were non-serious and CEO was distant during the process. We were under pressure by our CEO to end the project on time which affected their performance. At time the members were asked to give the evidence of problems that they have discussed, their responses being changed. Instead of being realistic, they presented the problem in such way which stopped learning. Finally, they ended-up unclear conversation. According to the theory of actions; Espoused theory will be different from the theory-in-use because people want to maximize the winning and avoid embarrassment.

I am agreeing with the idea of ​​single loop and double loop learning. Most of the times people are committed to change and they want too but they locked up their selves in defensive reasoning and even they are unaware of the defensive boundary they made around them. Companies can help employees to break their membrane of defensive reasoning by showing the gap between actual and espoused theory of actions and encourage open conversations among the members to make the place of continue improvement. It will help them to understand the deeper aspects of employee-client relationship and also they will learn the process of learning by real discussions. Acceptance should be encouraged instead of blaming each other for any problem. Proper training of the employees can transform organizations into a better place for work.

Why Retail Businesses Fail Part 3: Do You Make This Mistake In Retail?

Lack of Understanding of Target Market

I visited Harrods for research for my books on store design and visual merchandise display. Harrods, for anyone reading this White Paper who might not know this, is the Mecca of retailing. Royalties, A-list celebrities and the 'who-is-who' from around the world fly into London just to shop at Harrods.

You can now imagine my anticipation when I visited Harrods. In my mind everything in Harrods was made of gold. I was disappointed, when I noticed a toy bus I had purchased for my son from ASDA, was also being sold in Harrods. It was exactly the same toy bus, in exactly the same packaging that it is sold in ASDA.

A question popped into my mind, why is it that exactly the same bus, probably manufactured in exactly the same factory in China, is sold in Harrods for twice the price that it is sold for in ASDA?

The answer is decisively simple – ASDA sells a 'toy bus', however, Harrods sells a 'classy toy bus'. There is a difference. This is marketing 101: people buy emotionally but justify their decision logically.
Customers who shop at Harrods do not shop there to buy Harrods' products; They shop at Harrods to buy 'elegance and class'. Harrods sells them class even if it is 'Made in China'.

How does Harrods pull this off? They achieve it with the combination of elegant store design and attractive visual merchandising displays. When you move from one department to the next in Harrods it is like moving from one store to another. Their ability to use their store design to create the illusion of differentiation is one of the keys to Harrods' success. Harrods understand their customers; They know what their customers desire so they design their store and display their products to satisfy the desire of their customers.

Marcus Buckingham, in his book "The First Thing You Need to Know," said when he interviewed Sir Terry Leahy, who transformed Tesco into a global brand, he asked him what the key to Tesco's successful transformation was. Sir Terry Leahy replied that it was asking and answering the simple question: Whom do we serve?

When Tesco figured out what they were going to serve, they changed their store layout and products to serve their target market. As a result of this change; Tesco increased the number of checkout counters which reduced the amount of time customers sent queuing at the checkoutouts extremely resulting in a dramatic increase in Tesco's footfall.

Wal-Mart serves the person who lives: pay check to pay check.

Body Shop serves the ethical consumer.

Waitrose and Holland & Barrett serve the consumer who wants to live longer.

Ann Summers took merchandise that was hidden in secret 'adult' shops; Made them trendy and bought them to the High Street. They made a taboo subject acceptable to the mainstream.

If I was to take my significant other clothes shopping at John Lewis she would probably phone my mother to inform her that I was having a nervous breakdown. She would not want to be sentenced dead in John Lewis' outfit. She describes John Lewis' clothing department as a Bridget Jones museum where they store a collection of Bridget Jones costumes.

However, John Lewis continues to increase profit year after year because John Lewis understands their target market. Someone like my significant other might not want to be sentenced dead in John Lewis' outfit, but there are people in the UK, who love Bridget Jones' memorabilia, these people are John Lewis' target market, so John Lewis cater for them.

The most successful retailers understand their target market and show their understanding of their target market through their store design and visual merchandising displays.

The retailers that go bust fail to understand this basic marketing concept.

Most book retailers are struggling because they are still using the 1960's business model in the Amazon era. Borders failed because it did not develop its internet business properly and it invested heavily in compact disks when music was going digital. WH Smith only makes money from its airport and train station sales. The rest of its stores are struggling. Waterstone's is also on a downward trend. Sales are down and customer footfall is in steep decline.

Why are bookshops under threat? Amazon! They will all shout. Of course Amazon is the cause because Amazon understands their market better than them. Since it looks Amazon is not going away anytime soon, are all book stores going to close down?

Will WH Smith and Waterstone's close down? Or will they rise to the challenge and modernise their stores? Instead of complaining about Amazon, they need to redefine their target market and redesign their stores to attract their target customers.

On Christmas Eve, I had not done my grocery shopping and was wasting the prospect of entering a supermarket, knowing how packed they were going to be. But as I drove past my local Lidl store, I noticed it was empty. I rushed in and completed my shopping. As I bulldo back home a question came to mind; Why is it, that even on this day when most supermarkets are typically jam packed to capacity, was Lidl empty?

The answer, in my opinion, is that Lidl does not have a target market. One of their biggest sins was making the decision to force customers to pay for carrier bags. Marks & Spencer can afford to do that because they appeal to a different class of customer.

In Tesco and ASDA, customers who are environmentally conscious have the option of paying for shopping bags. However, those who do not want to pay for carrier bags also have the option of getting free ones.
This is because Tesco and ASDA understand their customers. Lidl's senior management, on the other hand, believed that having implemented a similar strategy in Europe, can introduce the same in the UK. If the Brits do not like it, tough! Well, the Brits are showing their displeasure with their feet.

I have tried to demonstrate with the above examples, that success or failure in retail is the result of the strategies every retailer adopts. Those retailers who understand their target market and cater to them will continue to move from success to greater success, while those who roll the dice and hope that customers show up are the ones who will struggle or go into administration.

I hate to be the one breaking this type of news to the retail industry I guess someone will have to do it: the internet is not going away. This means that retailers are not only competitive with one another, they are also competing with factory owners in China whose name they have never heard. Shoppers are now ordering directly from warehouses and distributors, for example an individual can log on to eBay and order a pallet load of goods.

Here is the good news: the majority of people still prefer to shop from physical retail outlets. The question is how does an individual retailer ensure that shoppers are attracted to their store? It can be done by adopting the concept of the "Blue Ocean" strategy.

Adopting the "Blue Ocean" strategy is the only salvation for book, DVD, music and furniture retailers. What is "Blue Ocean" strategy? "Blue Ocean" strategy "is the simultaneous pursuit of differentiation and low cost" which results in the creation of a new market space making the competition irrelevant.

The concept of "Blue Ocean" is practiced by the most successful business organizations while struggling businesses pursue what is described as the "Red Ocean" strategy. "Red Ocean" strategy is fighting to compete in the existing market place.

The "Red Ocean" strategy is adopted by many of the book, DVD, music and furniture retailers. They are trying to compete against the internet and it is just not possible. A brick and mortar store can never go head to head with the internet and win. It can never be cheaper that the internet.

However what they need to do in order to drive customer traffic to their stores is becoming innovative and creative. For example a book store could arrange periodic book signings; Of course authors want to sell their books so it is a win-win situation for all parties concerned.

In order for the book signings to be a successful marketing platform for the book stores it would be advisable for retailers to work in collaboration with the publishers from the sunset in order for the book signings to be better promoted.

Promotion of the book signings could take various formats such as making effective use of social media sites, local press and captivating signage in and outside the store.

Another idea could be arrange book clubs for various genres of books this would entice a variety of customers in to the store, these book clubs would also need promoting in a similar way as described for the book signings promotion.

The trick is to be innovative.

Richer Sounds is a classic case of a retailer that has adopted the "Blue Ocean" strategy. They understand that people still prefer to interact with other people. So whilst other electronic retailers focus on price, they focus on excellent customer service and staff product knowledge. Their "Blue Ocean" is excellent customer service and superior product knowledge.

For book, DVD or music retailers to compete in Amazon country, they need a "Blue Ocean" strategy that goes beyond price discount. They need soul. They need understanding of the perception of their target market.

• What do they want?
• What are their hopes and fears?
• What is their perception?

I can order a book or DVD from Amazon and receive it the following day. I can download music instantaneously from iTunes. There are millions of me in the world. What kind of "Blue Ocean" strategy can WH Smith or HMV devise to get me away from my laptop? It takes me half an hour to drive to the town center, pay for parking, spend another half an hour in WH Smith or HMV and another half an hour to drive back home.

The 64 million dollar question is: What can WH or HMV do to make it worth my while?

Let me give them a clue, I could order my groceries online, however, I choose to go to the supermarket. What is the difference? That is for book, DVD, electronic and furniture retailers to find out. They probably need to visit Starbucks it might just hold the keys to unlocking their creativity.

The only point of differentiation that most retailers know is price reduction. Price reduction is not a business strategy, it is a death wish.

Computer Aided Manufacturing Applications

Computer Aided Manufacturing (CAM) refers to an automation process, which accurately converts product design and drawing or the object into a code format, readable by the machine to manufacture the product. Computer aided manufacturing complements the computer aided design (CAD) systems to offer a wide range of applications in different manufacturing fields. CAM evolved from the technology utilized in the Computer Numerical Control (CNC) machines that were used in the early 1950s. CNC involved the use of coded instructions on a punched paper tape and could control single manufacturing functions. CAM controlled computer systems, however, can control a whole set of manufacturing functions simultaneously.

CAM allows work instructions and procedures to be communicated directly to the manufacturing machines. A CAM system controls manufacturing operations performed by robotic milling machines, lathes, welding machines and other industrial tools. It moves the raw material to different machines within the system by allowing systematic completion of each step. Finished products can also be moved within the system to complete other manufacturing operations such as packaging, synthesizing and making final checks and changes.

Some of the major applications of the CAM system are glass working, woodturning, metalworking and spinning, and graphical optimization of the entire manufacturing procedure. Production of the solids of rotation, plane surfaces, and screw threads is done by applying CAM systems.
A CAM system allows the manufacturing of three-dimensional solids, using ornamental lathes with greater intricacy and detail. Products such as candlestick holders, table legs, bowls, baseball bats, crankshafts, and camshafts can be manufactured using the CAM system. CAM system can also be applied to the process of diamond turning to manufacture diamond tipped cutting materials. Aspheric optical elements made from glass, crystals, and other metals can also be produced using CAM systems.

Computer aided manufacturing can be applied to the fields of mechanical, electrical, industrial and aerospace engineering. Applications such as thermodynamics, fluid dynamics, solid mechanisms, and kinematics can be controlled using CAM systems. Other applications such as electromagnetism, ergonomics, aerodynamics, and propulsion and material science may also use computer aided manufacturing.

Job Satisfaction Of Employees In Spinning Mills

Introduction

A job is a part of one's life and such work not only physical needs are fulfilled through monetary gain but also giving psychological satisfaction. It is the work and through it the individual finals opportunities for the satisfaction of many of his social personal needs.

The term job satisfaction refers to an individuals general attitude toward his or her job. A person with high level of job satisfaction holds positive attitude towards his job while a person who dissatisfaction with his job holds negative attitude towards his job.

Most manufacture believes that satisfied employees are more productive than dissatisfied employees. A sound human rights management based on norms of social welfare contribute sub statically to better employee relations, high productivities and potentially better prospects it an organization.

The term job satisfaction not only covers the satisfaction derived from the job by employers but their surroundings. Supervisor and managers, his way of approaching and handling the employers to a accomplish the particular job, nature of the communication, workplace, work particulars etc.

It one company wants to sustain permanently in the market that concern should work with 'satisfied employees'. Satisfied employee not only increases the company's corporate status in around the society but also increase the social value. All actions and creation if the company normally nit the merle goes down, it automatically tells us that the company is working with satisfied employees should be placed in high politics and promulgation of the top management, because job satisfaction the employee is not in the hand of The employee. So top management must take serious steps for satisfaction and development of employee.

The concept of satisfaction came into light after the famous 'Hawthorne studies' these studies were concluded to fadeout the nature of relationship between improvement in productivity. Prior to these studies researcher believe that these was a direct relationship between working environment and workers efficiency. The; Hawthorne studies' indicated that there is no such direct relationship between the two but that the relationship is indirect mediated by the workers attitude towards work, work situation.

The industrial revolution has been the revolution not only in technology but also in human relationship as technology great, more and more complex people become more dependent on one another and the problem of working together becomes. Trouble some the workers started to recognize their needs and these workers organized themselves to light with the management to satisfy some of their needs like working conditions, working hours etc.

At this stage the government also realized the problem of the industrial workers and the way the exploited by the employers. So that the government passed some social basis lotions for the protection of workers from the clutches of employers.

In the middle of the 19th century, Indian capitalists started participating in Industrial Development. Cotton Textile Industry, Iron and Steel Industry, Sugar etc were set up and developed. Till 1923, the Government did not show any positive interest in the development of industries. But in 1924, it introduced the system of protection to encourage describing industries. Under this system, the Government selected a few industries and protected them against foreign competition. The protected industries naturally developed very fast.

The shyness of Indian capital, lack of enterprise, absence of technical skill and comparative inefficiency of labor were important factors responsible for slow industrial growth in India during the past. Beside, there was no proper planning for balanced growth of industries in the country

After Independence

After Independence, India has made remarkable progress in the industrial field. Industrialization has been sped up since 1951, when the first five-year plan was introduced. Capital goods industries have been given great importance and strong enterprises have been laid for the development of these industries. Many of the major industries like cotton and jute, textiles, coal etc., have made considerable progress since Independence. With the setting up of several new industries like fertilizers, chemicals, pharmaceuticals, rubber, oils etc. many of the gaps in industrial production have also been filled up.

History of Spinning Industry

For thousands of years the distaff and spindle was the only tool used for spinning. Up to the 1500's the spinning wheel, was the only tool in Europe. This spinning wheel did not make yarn strong enough for thread.

As the textile industry developed in England and Western Europe, manufacturers employed women to spin and weave at home, an arrangement known as cottage system. Even after spinning became mechanized (a development that marked the beginning of the Industrial Revolution), family clothing and household textiles were often woven from home spun yarn.

The first of several machines that revolutionized the spinning industry was the Spinning Jenny of James Hargreaves, invented about 1764. The next invention was Richard Arkwright's Spinning Frame, the first power driven textile machine, patented in 1769. In 1779 Samuel Cromption introduced his hand- Operated Spinning Mule, which combined the best features of Jenny and Frame and produced yarn both fine and strong.

In 1793, Hannah Slater, founder of the first cotton spinning mill in the United States-developed a plied thread (several yarn twisted together) that was strong and could be made by machine.

Steam power in the spinning industries was applied first to the Spinning Frame (1785) and later to the Spinning Mule (1800). Mechanization in the 19th century increased production efficiently.
Definition of Job Satisfaction

Various authors have given Different of job satisfaction. Hoppock 'describes job satisfaction as "any combination of psychological and environment circumstances that cause any person truthfully to say that I am satisfied with my job".

Lock (1976) defined job satisfaction as "a pleasurable of positive emotional state, resulting from the assessment of one's job experience."

B. Hallen Gellmor defines job satisfaction in the following words "it is the result of various attitude the persons hold to wards related factors and towards like in general."

Role of Industrialization in developing Economies

India is a mixed economy where State Government and private enterprises exist. Industrialization has a major role to play in the economic development of developing economies. Modern industry could directly or indirectly raise the productivity of the labor force and increase output and income. Raising imports are expected to increase the volume of savings which could create more investment in industry. This progressive spiral could lead the economy from 'take off' into 'self-sustaining' growth.

Industrialization could also boost the demand for agricultural produce, since it could lend to more employment and more purchasing power with the people resulting in greater demand for agricultural produce. Myrdal call these effects as "spread effects" through the changing in demand and in supply. As a result of domestic investment which lead to improve demand side in the supply side, there could be 'spread effect' due to reduction in the cost structure of industries as industrial growth grathers momentum.

Private enterprise may be praised for this development. Through planning of economic resource, provision of finance, granting of protection, expectation of internal and external markets, and through securing foreign aid, the Government of India has laid the foundation for solid industrial progress in the country.

Cotton Textile Industry

In India Textile Industry is the most important industry providing employment to large number of people next to agriculture. The textile industry has pioneered the growth of modern industrial consciousness in the country. A large number of established entrepreneurs like Tatas Birlas and Mab atlas started their entrepreneur's career with cotton textile industry. After gaining sufficient experience in these industries, they branched out into a large number of other industries.

The real foundation of the cotton textile industry was laid in 1818 when a cotton mill was set up in Calcutta. After 1954 many more mills were started in Bombay, Ahmedabed, Sholapur and Nagpur. There were over 800 textile mills in the country which produced over 1260 million kg of yarn and over 4140 million meters of cloth in 1982.

A cotton mill in Madras could needarily serve the Tamil Nadu region much more effectively than a mill from Mumbai or Ahmedabad. This was the reason for Tamil Nadu to become an important center (of cotton textile) in textile industry.

The primary division of the cotton textile industry in this country can be classified as spinning mills, composite mills, power looms and handlooms.

Spinning Mills

50 years ago there were only 107 spinning mills in India. Rapid development of spinning mills lead to the increase in production of cotton yarn. At present, there are 1565 spinning mills in India. India is the largest yarn exporter with a share of 28% of the world market and is known for the quality of its fine count cotton yarns.

7 Benefits of the Doctor and Clinic Management System Software

A cloud-based clinic management system addresses your hospital management related woes. It brings simplicity to the patient appointments, their treatment, medical billing and payments and services that take care of other requirements of the hospital.

Advantages of a Cloud Compliant Software

A software that leverages the cloud technologies in full, offers flexibility, cost saving, fast service, ease of accessibility and sustainability.

Flexibility

Even small hospitals can harness the power of this type of software. As the business grows, the software automatically scales itself to the hospital's increasing needs without the user having to provide for it. The software is easy use, at its fullest, right from the first day.

Cost Saving

Choosing to use clinical management software located on the cloud platform is cost effective for the hospitals. It is an attractive choice for the small as well as big hospital setups.

It requires no expenditure on hardware, equipments and trained IT staff. These are the resources that a hospital, supporting an in-house IT setup must utilize. They are costly.

This highly optimized software is maintained, updated and configured in the cloud by the skilled IT experts. The users are, that, spared from the burden. It leads to cost saving. Unhindered, the hospital staff places focused on the core functions of the hospital.

Harness it From Anywhere at Anytime

The hospital administrator acts as the super-user of the software. He or she, then, grant access permissions to the others. The managers, doctors and others can then access the necessary data stored in the cloud, from anywhere at anytime.

They can use smartphones, tablets, phables, laptops, notebooks and desks over the internet for the purpose.

Fast Service

This software gives fast, easy and simple solutions for the hospitals in managing their day-to-day activities. It helps in streamlining patient management, inventory management, employees 'and doctors' attendance, online report generation and other tasks.

Sustainability

For hospitals using this software, it is easy to recover from an on-site disaster. Their data is stored in the cloud, where it remains safe. It is repeatedly backed up. They need to simply access it to get their system online.

Features of the Cloud Based Clinical Management System

1. Patient management: Maintains records of the patients that include personal details, visits to the hospitals, allergy related data, medication, etc.

2. Appointments and schedule management: Determines the availability of the doctors before scheduling appointments. Uses powerful search engine to set up an appointment for the patient. The software assists the staff in knowing the availability of the beds for the patient's hospital stay.

3. Alerts: Sends alerts and reminders using SMSs and Emails. It notifies the patients about the future appointments and custody schedules.

4. Purchase and inventory management: Keeps track of the drugs, equipments, instruments and other hospital items in the stock. Generate expiry alerts for the drugs in stock. Assists in creating a purchase list.

5. Records: Stores all the electronic medical records of the patients and the data related to the hospital, in a central place. It is available to the authorized persons from anywhere, at any time. Doctors can use the patient data to conduct medical research.

6. Payment Processing: Assists the hospital's accounting department in, accurate medical billing to the patient. Provides connectivity to the top accounting software and eases the tasks of accountants.

7. Lead Generation: It assists the business managers employed by the hospitals in lead generation and tracking.

It is easy to start using a cloud-based clinic management system software . It needs no installation and one can access and start using it over the internet, in a jiffy.

Make Dry Ice Blasting Your Small Business Opportunity

What is dry ice blasting? Dry ice blasting is a form of abrasive blasting industrial cleaning that uses a solid form of carbon dioxide known as dry ice. Pellets or ice is shot through pressurized air stream of either one hose or two hose machines.

Which System is Best? Most systems today are the single hose technology. Technology using the single hose was created by the Cold Jet company in 1986. One advantage of the single hose system is that it avoids the possible dangers of a pressurized hopper by the use of a quick cycle airlock. Another advantage of the single hose system is that it has more power and you can use a longer hose.

Making Massive Money! There are many ways to make money cleaning with Dry Ice. Many people prefer Dry Ice Blasting for paint removal, because it is less harsh than sand blasting. Another great business opportunity is to clean food processing equipment. Because it can decontaminate surfaces that could contain Salmonella and E. coli. Dry Ice can clean without residue so the Environmental Protection Agency prefers it to many kinds of solvent based cleaners. The Aerospace industry also uses Dry Ice Blasting to sensitive equipment like clean semiconductors. Manufacturers are also a great business opportunity because cleaning with cold can be used for maintaining their equipment and can drastically reduce their down time.

The Freeze Jet is just one of several different types of Dry Ice Blasting equipment. For around $ 3,000 you can usually purchase a Dry Ice Blasting machine.

What about Safety? How safe is this type of industrial cleaning? Cleaning with cold (normal pressure is -78C (-108 F) can be toxic if the concentration is over 1%. Asphyxia can be caused because of oxygen removal so Dry Ice must be used in a well ventilated area.

Safety Equipment: Typical safety equipment will include a positive pressure blast hood or helmet. Air hoses are attached to a grade D pressurized air supply, which is mandated by Occupational Safety and Health Administration (OSHA). Also using ear plugs for hearing protection is part of the usual safety equipment. Body protection usually includes gloves and overalls as well as a leather coat and chaps.

What fees can I charge? How much money can I make in this Industrial Cleaning business? Total typical fees can range in the $ 300.00 per hour range, so it can be one of the more lucrative types of industrial cleaning.

The Benefits of Dry Ice Blasting: This type of industrial cleaning meets EPA, USDA, and FDA guidelines. Has less clean up of the waste material. Extends the life of the equipment. Cleans more thoroughly. Reduces or eliminates equipment damage. Provided a safer cleaning environment. Is Non-polluting and environmental friendly. Can destroy and eliminate bacterial and fungal growth.

How can I get started? You can get started with your small business by beginning with a business plan. A business plan is a formal statement of business goals, reasons that they are attainable, and plans for reaching them. It may also contain background information about the organization or team attempting to reach those goals. It should also contain a good marketing plan. Then apply for small business government grants or small business loans, so you can purchase equipment.

Having your own business can help you to end money worries. Having a business plan is essential to having a successful small business. Knowing how to market your small business for little or no money is an important key to your business success as well. Imagine how much more profit you can have when you do not have to budget much on advertising.

Get Colossal Cash from Government Contracts. Companies interested in selling their products and services to the federal government (the United States General Administration Administration) can prepare by fulfilling applicable requirements, and registering in the appropriate systems. Companies may also participate by seeking sub-contracting opportunities with current contract holders. The General Services Administration provides and contracts for Billions of dollars' worth of products and services for federal agencies.

In summary Dry Ice Blasting can be an extremely profitable business and helps with the environment as well.

Credit Repair Business Plan

Here's the executive summary of a Credit Repair Business Plan:

  • A description of your company, including your products and / or services
  • Your mission statement
  • Your business's management
  • The market and your customer
  • Marketing and sales
  • Your competition
  • Your business's operations
  • Financial projections and plans

For someone looking for a credit repair business plan, a simple description may be "Ace Credit restoration provides credit restoration services to help consumers attain good credit and therefore have more attractive financing options. The company provides credit repair on a fee-for-service model Charging $ 800 to $ 2000 per client and reaches new clients via relationships by credit-dependent professionals (real estate, car dealers, etc.), financial professionals (tax, insurance, financal planners), consumer direct marketing (internet, radio, tv, postcards ), And past-client referral cultivation.

Any business plan should then talk about management, which indicates to your experience. If you have experience managing a team, attention to detail, and / or financial experience, this is relevant and should be included.

When writing about your client, the consumer, you'll find there are about 70 to 80 million americans with bad credit, many millions of whatever will need to finance a home or car or other purchase and will there be interested in purchasing credit repair services . While some people do attempt credit repair on their own, credit is becoming increasingly complex and important. Fewer people succeed or event attempt it, and like dealing with plumbing or auto repairs, most are willing to pay a professional to get it done right.

Next, you should include a specific marketing breakdown. We have found that at first, referral relationships are a great place to start. By offering "credit repair seminars" or "lunch and learn" events to local real estate agents or car dealers, you can quickly position yourself as an expert, develop referral sources, and help them sell more homes or cars. As your business grows, you'll want to branch out into mass media, internet marketing to increase your visibility and scale up your operations.

The next section generally will cover competition, which of course varies by market. Currently, the credit repair business is still open and large driven on referrals at time of need, meaning people often get their credit restored when preparing to buy a home or car, or after being declined for some type of financing (ie a credit card at Better terms than they have previously). Longer term, the internet is a massive source of business that still has fundamental opportunity. One still large untapped area requiring someone to execute their credit repair business plan is in the area of ​​social marketing (ie Facebook) and joint ventures with point-of-need media ie a referral relationship with leading real estate websites, car dealer websites, etc . Who depend on attractive financing.

Next, your plan should cover operations. You can run a credit repair home based business, or you can use office space. One under-used idea is renting a desk inside a busy real estate office. This can provide more than just a professional meeting place, but the abundance of agents who depend on their clients having good financing will actually guarantee some clients are delivered to you. This can also help embed your credit repair business into the local ecosystem of potential referring businesses such as mortgage, insurance, and financial professionals. Most real estate offices would be open to rent a desk or office within or near the facility. Another option for your credit repair business plan is to run a home based credit repair business, but have a set schedule at local real estate offices or car dealers to review any new files and answer questions the agents or dealers might have.

Financial projections and plans in your credit repair business plan should address startup costs and revenue, and possibly even exit such as sale of the company. Since there are systems that provide more than just software, but complete turn-key systems (similar to a franchise) including training to make you the expert, unlimited paralegal support, annual conferences, marketing support, legal support, and much more you should investigate Your options.

Obviously success varies by talent, work, resources and abilities with any business opportunity. That said, we know of affiliates who have taken their credit repair business plan and implemented on that plan, grossing over $ 100,000 per month. If you like the idea of ​​being your own boss and earning an executive level income, we encourage you to take look at your business plan as just the first step an an exciting new venture.

Digital Marketing – Revolutionized Marketing and Different Innovative Strategies

Digital Marketing is much like modern architecture in many ways. It is the way of the world and these guidelines are just a start to get your business off on the right foot. Mastering digital marketing is not a cakewalk. According to the Digital Marketing Institute, it is the required result of digital channels to promote or market products and services to consumers and businesses. It believes to be wavering these days as many companies that once used the old style of marketing are now going digital. It is essential in today's world that a company which exists physically, must exist digitally as well. It is believed that existing digitally gains advertising process. There exist a different and more approachable digital marketing tools like web designing, pay-per-click marketing, SMS, and email marketing. The following article will educate you in not one but many ways.

Direct marketing and advertising is an advertising in which companies offer physical marketing and advertising materials to consumers to communicate details about a service or product. Inbound marketing can likewise be an essential tool in the continuing retention of present customers, by creating communication with those customers and enabling business to engage with other customers by giving informative, educational result together with product promotions. While outbound marketing could reach a greater audience, additionally, it runs the danger of barring uninterested consumers also. If you prefer to do better marketing without harming your finances, direct marketing will probably be somewhat decent for you. Second, content promotion is a pull, instead of a push, strategy. To the contrary, it is a refreshingly new concept in marketing which provides a unique comprehension of consumer behavior.

Content can typically be about a service or a product, it might be be item, price, service charges or the selling of digital products like books, movies or software. It is something that helps in relaying old customers and theby helps in pulling traffic from popular search engines. The very first and most critical issue is quality content, try using attractive words that could connect nicely with readers. Step one on any advertising (or indeed, marketing) campaign needs to be to recognize the aims and goals of the campaign and the way they fit into the aims and goals of the business all around. Digital advertising and marketing campaigns will need to rely on these limits to be prosperous. Together with creating great advertising text (copy), you may want to study the way you can earn a corporation's marketing campaigns visually appealing, through the usage of banners, images, videos and more.

Although these facts may be true, but sometimes it gets difficult to do all these techniques in the company. Therefore, known and recognized companies and firms may hire a digital marketing agency to do on behalf of them. Most renovated digital marketing agency may not only offer quality and dependable benefits, also they have a digital marketing and advertising strategist which may help plan the most helpful campaigns. To be successful in today's day, companies need to continuously create new content that does not only get them found but also lets them capture leads. Soon it will not be enough for businesses to understand what you might want. All businesses wish to strengthen their relationship with clients and prospects. Now everyone is aware of what the business is shooting for. It is essential that businesses optimize their online properties effectively to be able to get to the top of the important important search engine result page.

Even though many mistake digital for internet, to their surprise online marketing is only a part of the huge digital marketing framework. In a broader sense, the net is the center of digital marketing. It has made easier for marketing managers to measure the results of a campaign. Since you can see the internet is by far not the only spot for marketers to assemble success, even in past couple of years. The web and the world have brought in an entire new perception of the advertising market. Thus, if you need to effectively advertise your business on the internet then seek the services of a renovated digital advertising company at the earliest.

Textiles Exports: Post MFA Scenario Opportunities and Challenges

Introduction

The Multi-Fiber Arrangement (MFA) has governed international trade in textiles and clothing since 1974. The MFA enabled developed nations, mainly the USA, European Union and Canada to restrict imports from developing countries through a system of quotas.

The Agreement on Textiles and Clothing (ATC) to abolish MFA quotas marked a significant turnaround in the global textile trade. The ATC mandated progressive phase out of import quotations established under MFA, and the integration of textiles and clothing into the multilateral trading system before January 2005.

The Agreement on Textiles and Clothing

ATC is a transitory between the MFA and the integration of trading in textiles and clothing in the multilateral trading system. The ATC provided for a stage-wise integration process to be completed within a period of ten years (1995-2004), divided into four stages starting with the implementation of the agreement in 1995. The product groups from which products were to be integrated at Each stage of the integration included (i) tops and yarns; (Ii) fabrics; (Iii) made-up textile products; And (iv) clothing.

The ATC mandated that importing countries must integrate a specified minimum portion of their textile and garment exports based on total volume of trade in 1990, at the start of each phase of integration. In the first stage, each country was required to integrate 16 percent of the total volume of imports of 1990, followed by a further 17 percent at the end of first three year and another 18 percent at the end of third stage. The fourth stage would see the final integration of the remaining 49 percent of trade.

Global Trade in Textile and Clothing

World trade in textiles and clothing grown to US $ 385 billion in 2003, of which textiles accounted for 43 percent (US $ 169 bn) and the remaining 57 percent (US $ 226 bn) for clothing. Developed countries accounted for little over one-third of world exports in textiles and clothing. The shares of developed countries in textiles and clothing trade were estimated to be 47 percent (US $ 79 bn) and 29 percent, (US $ 61 bn) respectively.

Import Trends in USA

In 1990, restrained or MFA countries contributed as much as 87 percent (US $ 29.3 bn) of total US textile and clothing imports, whereas Caribbean Basin Initiative (CBI), North American Free Trade Area (NAFTA), Africa Growth and Opportunity Act AGOA) and ANDEAN countries together contributed 13 percent (US $ 4.4 bn). Thereafter, there has been a decline in exports by restrained countries; The share of preferential regions more than doubled to reach 30 percent (US $ 26.9 bn) of total imports by USA.

The composition of imports of clothing and textiles by USA in 2003 was 80 percent (US $ 71 bn) and 20 percent (US $ 18 bn), respectively. Asia was the principal sourcing region for imports of both textiles and clothing by USA. Latin American region stand at second position with a share of 12 percent (US $ 2.2 bn) and 26 percent (US $ 18.5 bn), respectably, for textiles and clothing imports, by USA. In most of the quota products imported by USA, India was one of the leading suppliers of readymade garments in USA. Although China is a largest competitor, the unit prices of China for most of these product groups were high and thus provide opportunities for Indian business.

Import Trends in EU

EU overtook USA as the world's largest market for textiles and clothing. Intra-EU trade accounted for about 40 percent (US $ 40 bn) of total clothing imports and 62 percent (US $ 32.5 bn) of total textile imports by EU. Asia dominates EU market in both clothing and textiles, with 30 percent (US $ 30 bn) and 17 percent (US $ 8 bn) share, respectively. Central and East European countries hold a market share of 11 percent (US $ 11.3 bn) in clothing and 7.5 percent (US $ 4 bn) in textiles imports of EU.

As regards preferential suppliers, the growth of trade between EU and Mediterranean countries, especially Egypt and Turkey, was highest in 2003. As regards individual countries, China accounted for little over 5 percent (US $ 2.8 bn) of EU's imports of textiles and over 12 percent (US $ 12.4 bn) of clothing imports.

In the EU market also, India is a leading supplier for many of the textile products. It is estimated that Turkey would emerge as a largest competitor for both India and China. However, with regard to unit prices, India appears to be lower than both Turkey and China in many of the categories.

Import Trends in Canada

Amongst the suppliers of textiles and clothing to Canada, USA had the highest share of over 31 percent (US $ 8.4 bn), followed by China (21% – US $ 1.8 bn) and EU (8% – US $ 0.6 bn) . India was ranked at fourth position and was ahead of other exporters like Mexico, Bangladesh and Turkey, with a market share of 5.2 percent (US $ 0.45 bn).

Potential Gains

It may be noted that clothing sector would offer higher gains than the textile sector, in the post MFA regime. Countries like Mexico, CBI countries, many of the African countries emerged as exporters of readymade garments without having much of textile base, utilizing the preferential tariff arrangement under the quota regime. Beside, countries like Bangladesh, Sri Lanka, and Cambodia emerged as garment exporters due to cost factors, in addition to the quota benefits.

It may be said that countries like China, USA, India, Pakistan, Uzbekistan and Turkey have resource based advantages in cotton; China, India, Vietnam and Brazil have resource based advantages in silk; Australia, China, New Zealand and India have resource based advantages in wool; China, India, Indonesia, Taiwan, Turkey, USA, Korea and few CIS countries have resource based advantages in manmade fibers. In addition, China, India, Pakistan, USA, Indonesia has capacity based advantages in the textile spinning and weaving.

China is cost competitive with regard to manufacture of textured yarn, knitted yarn fabric and woven textured fabric. Brazil is cost competitive with regard to manufacture of woven ring yarn. India is cost competitive with regard to manufacture of ring-yarn, OE yarn, woven OE yarn fabric, knitted ring yarn fabric and knitted OE yarn fabric. According to Werner Management Consultants, USA, the hourly wage costs in textile industry is very high for many of the developed countries. Even in developing economies like Argentina, Brazil, Mexico, Turkey and Mauritius, the hourly wage is higher as compared to India, China, Pakistan and Indonesia.

From the above analysis, it may be concluded that China, India, Pakistan, Taiwan, Hong Kong, Brazil, Indonesia, Turkey and Egypt would emerge as winners in the post quota rule. The market losers in the short term (1-2 years) would include CBI countries, many of the sub-Saharan African countries, Asian countries like Bangladesh and Sri Lanka.

The market losers in the long term (by 2014) would include high cost producers, like EU, USA, Canada, Mexico, Japan and many east Asian countries. The determinants of increase / decrease in market share in the medium term would always depend upon the cost, quality and timely Review of Indian Textiles and Clothing Industry The textiles and garments industry is one of the largest and most predominant sectors of Indian economy, in terms Of output, foreign exchange earnings and employment generation. Indian textile industry is multi-fiber based, using delivery. In the long run, there are possibilities of contracting in intra-EU trade in textile and garments, reduction of market share of Turkey in EU and market share of Mexico and Canada in USA, and thus provide more opportunities for developing countries like India.

It is estimated that in the short term, both China and India would gain additional market share proportionate to their current market share. In the medium term, however, India and China would have a cumulative market share of 50 percent, in both textiles and garment imports by USA. It is estimated that India would have a market share of 13.5 percent in textiles and 8 percent in garments in the USA market. With regard to EU, it is estimated that the benefits are mainly in the garments sector, with China taking a major share of 30 percent and India gaining a market share of 8 percent. The potential gain in the textile sector is limited in the EU market considering the proposed further enlargement of EU. It is estimated that India would have a market share of 8 percent in EU textiles market as against the China's market share of 12 percent.

Review of Indian textiles and Clothing Industry

The textiles and garments industry is one of the largest and most prominent sectors of Indian economy, in terms of output, foreign exchange earnings and employment generation. Indian textile industry is multi-fiber based, using cotton, jute, wool, silk and mane made and synthetic fibers. In the spinning segment, India has an installed capacity of around 40 million spindles (23% of world), 0.5 million rotors (6% of world). In the weaving segment, India is equipped with 1.80 million shuttle looms (45% of world), 0.02 million shuttle less looms (3% of world) and 3.90 million handlooms (85% of world).

The organized mill (spinning) sector recorded a significant growth during the last decade, with the number of spinning mills increasing from 873 to 1564 by end March 2004. The organized sector accounts for production of almost all spun yarn, but only around 4 percent Of total fabric production. In other words, there are little over 200 composite mills in India leaving the production of fabric and processing to the decentralized small weaving and processing firms. The Indian apparel sector is estimated to have over 25000 domestic manufacturers, 48000 fabricators and around 4000 manufacturer-exporters. Cotton apparel accounts for the majority of Indian apparel exports.

Textiles and Garments Exports from India

The share of textiles and garments exports in India's total exports in the year 2003-04 stood at about 20 percent, amount to US $ 12.5 billion. The quota countries, USA, EU and Canada accounted for approximately 70 percent of India's garments exports and 44 percent of India's textile exports. Amongst non-quota countries, UAE is the largest market for Indian textiles and garments; UAE accounted for 7 percent of India's total textile exports and 10 percent of India's garments exports.

In terms of products, cotton yarn, fabrics and made-ups are the leading export items in the textile category. In the clothing category, the major item of exports was cotton readymade garments and accessories. However, in terms of share in total imports by EU and USA from India, these products hold relatively less share than products made of other fibers, thus showing the restrain in this category.

Critical Factors that Need Attention

Although India is one of the major producers of cotton yarn and fabric, the productivity of cotton as measured by yield has been found to be lower than many countries. The level of productivity in China, Turkey and Brazil is over 1 tonne / ha., While in India it is only about 0.3 tonne / ha. In the manmade fiber sector, India is ranked at fifth position in terms of capacity. However, the capacity and technology infusion in this sector need to be further enhanced in view of the changing fiber consumption in the world. It may be stated that the share of cotton in world fiber demand declined from around 50 percent (14.7 mn tons) in 1982 to around 38 percent (20.12 mn tons) in 2003, while the share of manmade fiber has increased from 44 percent (13.10 Mn tons) to around 60 percent (31.76 mn tons) over the same period.

Apart from low cost labor, other factors that are having impact on final consumer cost are relative interest cost, power tariff, structural anomalies and productivity level (affected by technological obsolescence). A study by International Textile Manufacturers Federation revealed high power costs in India as compared to other countries like Brazil, China, Italy, Korea, Turkey and USA. Percentage share of power in total cost of production in spinning, weaving and knitting of ring and OE yarn for India ranged from 10 percent to 17 percent, which is also higher than that of countries like Brazil, Korea and China. Percentage share of capital cost in total production cost in India was also higher ranging from 20 percent to 29 percent as compared to a range of 12 to 26 percent in China.

In India, very few exporters have gone in for integrated production facility. It is noted that countries that would emerge as globally competitive would have significantly consolidated supply chain. For instance, competitor countries like Korea, China, Turkey, Pakistan and Mexico have a consolidated supply chain. In contrast, apart from spinning, the rest of the activities like weaving, processing, made-ups and garment are all found to be fragmented in India. Beside, the level of technology in the Indian weaving sector is low compared to other countries of the world. The share of shuttle less looms to total loomage in India is 1.8% as compared to Indonesia (10%), Bangladesh (10%), Sri Lanka (12%), China (14%) and Mexico (29%).

The supply chain in this industry is not only highly fragmented but is beset with bottlenecks that could very well slow down the growth of this sector. As a result the average delivery lead times (from procurement to fabrication and shipment of garments) still takes about 45-60 days. With international lead delivery times coming down to 30-35 days, India needs to cut down the production cycle time mainly to stay in the market. Beside, erratic supply of power and water, availability of adequate road connectivity, inadequacies in port facilities and other export infrastructure have been adversely affecting the competitiveness of Indian textiles sector.

Conclusions

It is believed the quota period has frozen the market share, providing export opportunities even for high cost producers. Thus, in the free trade regime, the pattern of imports in the quota countries would undergo changes. The issues that would govern the market share in the post quota period would be subjectivity, raw material base, quality, cost of inputs, including labor, design skills and operation of economies of scale.

It is believed that quotas, by limiting the supply of goods have kept export prices artificially high. Thus, it is estimated that there would be price war in the post quota period, with competitive price cuts. The price and quantity effects would depend on the efficiency in production process, supply chain management and the price elasticity of demand.

Due to the expected fall in prices, developing countries with high production cost have little choice but to compete head-on with the largest low cost suppliers. In this process, it is presumed that there would be better resource reallocation in these economies.

It is assumed that quota restrictions would continue beyond 2005 in various forms. It is also widely recognized that removal of quota may not directly provide easy and unrestricted access to developed country markets. There would be non-tariff barriers as well. Standards related to health, safety, environment, quality of work life and child labor would gain further momentum in international trade in textiles and clothing.

Strategies and Recommendations

Cost competitiveness in Indian garments sector has been restrained by limited scale operations, obsolese technology and reservation under SSI policies. While retaining its traditional cost advantages of home grown cotton and low cost labor, India needs to sharpen its competitive edge by lowering the cost of operations through efficient use of production inputs and scale operations. Beside, there are needs for rationalization of charges, levies related to usage of export logistics to remain cost competitive.

As fallout to the quota rule, there would be consolidation of production and restriction on supplying countries, which would necessarily mean improved scale operations. Indian players should also integrate to achieve operating leakage and demonstrate high bargaining power.

It is reported that Chinese textile firms have already invested heavily to expand and grab huge market share in the quota free world. In India, organized players in this sector would require huge investments to remain competitive in the quota free world. These players need to expand and integrate vertically to achieve scale operations and introduce new technologies. It is estimated that the industry would require Rs. 1.5 trillion (US $ 35 billion) new capital investment in the next ten years (by 2014) to lap the potential export opportunities of US $ 70 billion. It is estimated that USA and EU together would offer a market of US $ 42 billion for Indian textiles and garments in 2014.

Technology would play a lead role in the weaving and processing, which would improve quality and productivity levels. Innovations would also be happening in this sector, as many developed countries would innovate new generation machineries that are likely to have low manual interface and power cost. Indian textile industry should also turn into high technology mode to reap the benefits of scale operations and quality. Foreign investments coupled with foreign technology transfer would help the industry to turn into high-tech mode.

Internally, trading in textile and garment sector is concentrated in the hands of large retail firms. Majority of them are looking for few vendors with bulk orders and hence opting for vertically integrated companies. Thus, there is need for integrating the operations in India also, from spinning to garment making, to gain their attention. This would also bring down the turn around time and improve quality. Indian players should also improve their soft skills, viz., Design capabilities, textile technology, management and negotiating skills.

Garment manufacturing business is order driven. It would be difficult for the players to keep the work full time, even in lean season. This calls for changes in contract labor laws.

Logistics and supply chain would also play a crucible role as timely delivery would be an important requirement for success in international trade. The logistics and supply chain management of Indian textile firms are relatively weak and needs improvement and efficiency. China has already created a world class export infrastructure. Given the volume of projections for exports by India, it may be necessary to create additional export infrastructure, especially investment for modernization of ports. In addition, India needs to invest for creating brand equity, supply chain management and apparel industry education.

To sum up, the ability of Indian textile industry to take advantage of quota phase-out would depend upon their ability to enhance overall competitiveness through exploitation of economies of scale in manufacturing and supply chain. The need of the hour therefore is to evolve a well chalked out strategy, aimed at improvement in the levels of productivity and efficiency, quality control, faster product innovation, quick response to changes in consumer preferences and the ability to move up in the value chain By building brand names and acquiring channels of distribution so as to outweigh the advantages of competitors in the long run.

Source: Export-Import Bank of India, India.