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Showing posts from August, 2018

Initial Public Offering Model (IPO Model)

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An Initial Public Offering (IPO) is a model when a company issues its share to the general public for the first time. Before going for an IPO, the company may be considered as a private Limited company generally with a small number of investors (it may be founders, families members, friends, and maybe business investors such as angel investors or venture capitalists). When a company going for an IPO, the general public will be able to buy shares and own a portion of the company for the first time. An IPO is often stated to as “going public” and the underwriting process is normally led by an investment bank. Why companies go for IPO Companies which are looking for growth, often use IPO to raise capital. The biggest advantage is capital raising itself. These capital raised can be used for buying properties, assets, building plants or research and development activities or maybe even to pay off debts. Challenges of going IPO Though there are multiple benefit...

Merger Model

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Merger model is one of the very relevant financial models in today’s scenario. Merger model in simple terms defines as a model which analyzes the impact or outcomes when a merger of two companies happens. An acquisition or merger happens when a company proposes to offer cash or shares of the company to acquire another company. In all the cases, both the companies merge to form one single company, subject to the approval of the shareholders of both the companies. Below are the steps of how to build a merger model. Making Acquisition Assumptions Making Projections Valuation of Each Business Business Combination and Pro Forma Adjustments Deal Accretion/ Dilution There are many examples available for a merger model. Some of the recent ones are Flipkart’s acquisition of ebay, Merger of Idea and Vodafone and Telenor merged with Airtel. Acquisitions and mergers are strategic moves by the companies for various reasons. One of the major reasons is, foreseeing scope fo...

Discounted Cash Flow Model

Discounted cash flow model (DCF) is a valuation technique used to estimate the potential of an investment opportunity or a company. DCF values a company or the investment by forecasting its future cash flows and after that using the Net Present Value (NPV) method DCF value those cash flows. In a DCF analysis, the cash flows are calculated by using a series of assumptions on how the business will perform in the future under various parameters and then translates the business performance into the cash flow —which is one of the important things any investors would be worried about. Why to use Discounted Cash Flow DCF can be used in many scenarios as it tries to measure the value created by a business directly and precisely. DCF is probably one of the most widely used valuation technique, because of its theoretical foundations and its ability which can be used in almost all scenarios. DCF is used by Investment Bankers, Business Development professionals, Internal Corporate Finance,...

Three Statements Financial Model

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The Three Statement Financial Model is one of the most basic setups for financial modeling. As the name indicates, this model basically follows the three financial statements (cash flow, income statement & balance sheet). The prime objective of Three Statement Model is to set up all the three statements connected, and a set of assumptions can drive changes in the entire model.  Three Statement Model assimilates cash flow statement, income statement and balance sheet into one dynamically connected financial model. Layout and Structure There are two common approaches a 3 statement model follows: a single worksheet or multiple worksheet models. Through both approaches are fine, most of the financial experts suggest using a single worksheet structure. Some of the prime reasons are below; Advantages of a single worksheet model are: • Easier to play around with data and less headache of  switching between tabs • Reduces risk of mislinking formulas (Since all time ...

Emerging IT Trends That Influence Business

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The advancement of IT and technology has made a huge impact in all walks of life. Business and management is one such sector that witnessing tremendous transformations with the implementation of the emerging trends in IT. Below listed are the top IT trends that are influencing the business sector. • Cloud computing – It is the utilisation of computing services, both software and hardware over a network. Cloud computing help reduce the IT infrastructure cost of a company and promotes virtual storage of data across an organization. • Mobile Apps – A tech advancement that has been receiving tremendous acceptance from all type of industries, mobile applications make devices like smart phone and tablets access and interpret information with the utmost convenience. This allows businesses to tap into a wide demographic while also being accessible at the fingertips of their customers. • User interfaces – Touch screen technology has revolutionised user interface and enco...

Key Skills for a Career in Marketing

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In a simple definition, a marketer’s role is to explain about the company and its services and products to the public. A successful career in marketing is aimed at increasing the company’s income by promoting sales. Here is a list of skills for a successful career in marketing. • Communication – Professional communication is at the key of marketing as it involves communicating to the public the need for the buying the products by the brand. And hence marketing also involves designing written and verbal communication, multimedia campaigns and other forms of effective communication. • Public speaking – Presenting the thoughts and ideas in front of the team or clients is also involved in marketing. One must also be equipped with preparing presentations to communicate to potential buyers, • Analytical thinking – Research –based analysis is required in marketing to determine the audience preferences and to craft an effective strategy around it. Drawing logical conclusions ba...

Importance of Business Environment

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A business and its environment is closely linked with each other and this continuous interaction between the two helps strengthen the organisation using its resources effectively. Also, a business environment is multifaceted, complex and dynamic in nature. Below listed points show why business environment is an important concept. • Helps determine opportunities and threats - The increased interaction between the business and its environment help identify the threats to the business. This in turn helps meet the challenges in the business world. • Direction for Growth – The business environment leads to opening up of new opportunities of growth in business organisations. It also enables businesses to help identify the areas for growth and opportunities for expansion. • Continuous Learning - Environmental analysis eases the task of dealing with the business challenges. The managers are encouraged to grow the knowledge and understand the skills to meet challenges in business. ...

Benefits of Organizational Development

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Organizational Development involves the practice of planned and systemic change in the beliefs, attitudes and values of employees to stimulate company growth. Here are 4 of the major benefits of organizational development. Improvement – Companies that encourage organizational development aims for continuous improvement of their business and offerings. It also ensures a continuous cycle of improvement where strategies are planned, implemented, evaluated and improved. Increased Communication – Organizational development encourages communication, feedback and interaction inside the organization. When improving communication, it is aimed at aligning employees to share the company goals and values. This also ensures communication is also open across all levels of the organization. Employee Development – Organisational development heavily focuses on enhanced communication to influence employees to bring into action the required changes. As organisations are in constant need for ...

Search Engine Marketing and its relevance in Digital World

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In today’s digital world Search Engine Marketing or SEM is a widely used terminology.  What does SEM actually mean? Search engine marketing is a mode of marketing using paid advertisements that appear on search engine results pages. Different advertisers bid on various keywords in Google and other search engines, so that when the target audience search for any specific services or products, advertiser get the opportunity for their ads to come first in the listings. These ads are commonly known as pay-per-click ads, come in a variety of formats. Some are text-based ads, some are visuals such as product listing ads PLAs, also known as Shopping ads. Customers can see the important information at-a-glance, such as price and reviews. One of the major advantage of Search Engine Marketing is, it offers advertisers an opportunity to put their ads in front of interested customers who are ready to buy at the precise moment. In fact no other medium can do this, which...

Which Stream is Right for you In MBA and How to Choose it?

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We all know MBA’s are one of the top paid Jobs across the globe. Once you decided to go for MBA, the most confusing question is which stream I will specialize in? Especially unlike other technical specialization, MBA is a course which is very closely aligned with your personality. So before choosing the stream or even MBA itself, the two questions you should introspect yourself are; 1.Why MBA? The prime question needs to be answered. Is it just for a job or you felt you would be a good management person. If your answer is for a Job, better don’t choose and if it’s later one, analyze yourself and identify your best qualities that make you a good management person. 2. Which Stream? Once you decided to go for MBA, next confusion is on which stream to choose. You need to do a thorough self-examination by asking questions like; a)Are you a people person, and good at understanding emotions, probably HR might be a good choice for you b)Good in presenting and people listen to ...

Importance of Macroeconomics

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Macroeconomics is the study about the averages and aggregates of an entire economy and it is also a part of the economic theory which studies the economy in its whole. Unlike microeconomics which includes the study of individual economic units likes a household or an industry, macroeconomics concentrates on the total economic system which involves the national income, investment and total savings, employment, demand and supply, price levels, etc. The below listed reasons outline the importance of macroeconomics. ·         Helps understand the functioning of the modern economic system which is complicated, while also describing how the economy functions as whole. ·         Aims to achieve the goal of economic strength with higher levels of GDP and employment. It also analyses the factors that determine the economic growth in a country. ·         Helps bring stabil...

Key Skills Taught By An MBA In Finance Degree

MBA Aspirants who specialise in Finance will learn key business skills that can be applied across different sectors in a company which include leadership, governance, marketing, management and human resources. It also encourages the students to explore practical application of finance need of the business or organisation. Below listed are some of the key skills taught by an MBA in Finance degree. •     Determine value – Specialisations in finance teach students the value of a business, how to determine the worth of stocks and shares and how to maintain a capital budget. It also teaches important practical, strategic and analytical skills to help students determine the worth of accompany. •     Analyse financial markets – The degree offers students the ability to keep up with the updated knowledge on key financial markets. They will also learn about the risks associated with finance and learn about the financial standing of the organisation....

Skills of a Good Manager

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Managers are considered the pillars of a business or an organisation. The role of the manager is a key contributing factor to the growth of the company, and hence the manager should possess great skills and attributes. Below listed are some of the important skills required by a manager. • Simplicity – A manager should be able to break down something complex to simple with ease and should be able to explain a task easily to the employees. • Delegation – A manager should be adept at delegating the tasks and should assign a work with deadlines to others and encourage them to complete it successfully. • Prediction – He should know where the business or the company is heading and should discuss about the future with others. • Systematic approach – Skilful use of resources at one’s disposal is an important skill a manager should possess. He should work for the company’s growth by effectively putting together different systems. • Structure – A great manager will be able to set...

People Management

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Why it is important to be a People Person? Many times we would have heard this phrase “He’s not a people person.” Sometime some job descriptions say as “Looking for a people person.” What does this actually mean? Who is a “People Person?” A “people person” is someone who can easily relates well with others thought process. A person who is friendly and warm, even to strangers. A person who thinks about the other individual, their experience, their thought process and deals with them without upsetting their emotions are good People Persons. Benefits of becoming “People Person” Being a “people person” is one of the key quality required for any management graduates. A good people person is always a good listener; good in interactions and give values to others emotions. When it comes to promotion and team leading roles one of the major attribute any management look for is your People Management skills. Similar in client facing roles, management gives preference to those who ...

ATL and BTL Marketing Strategies

Many of us or at least people who are working in Marketing would have heard about these two abbreviations. What are exactly ATL and BTL Marketing? Let’s have some basic understanding on these. ATL stands for ‘Above the Line’, and ‘BTL is Below the Line’. Both these models are widely used in the industry. ATL is used where the brands need to reach to a mass audience. All conventional methods of advertising like Television, Radio, Newspaper, Print ads and even Ads over Internet fall in this category. Here the investment will be huge and the reach is also expected to be more. BTL is more focused towards a small crowd and it is more one to one. Some of the best examples for BTL marketing are handbills, pamphlets, stickers or brochures placed on an event and even hoardings falls in BTL category. This model will be more effective if you are deeply focused on a specific location or in a city. Both the marketing models are widely used by the brands depending upon the location, occasion,...

Distinctive features of MBA in Corporate Social Responsibility

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MBA in Corporate Social Responsibility offers candidates the opportunity to develop career by integrating social issues with business perspectives. It grooms one to differentiate between a typical welfare project and peoples benefit with the help of corporate participation through CSR. Below listed are some of the distinctive features of CSR • CSR is linked to Industrial Relations, Supply Chain Management, R&R, Brand Values, etc. This will help one with the knowledge and skills to combine business and society for the benefit of the people. • MBA in CSR allows one to grow in one’s own time, while also helping to realizing the power of his dreams. • It also demonstrates a commitment to ensuring that the social responsibilities of corporate practices and ethics are taught as a core part of management. • Even though different when compared to general MBA program it is emerging as a new trend in combining business and social responsibility for the benefit of the society. ...

Which is best? - Digital Or Traditional marketing

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In today’s digital era one of the most confusing questions every Marketing head face are “which stream my marketing investment should go” “Which platform would give me maximum results? Is Digital Better than Traditional Marketing Methods? Ideally, you should have a perfect blend of both Digital and Traditional marketing. It is also depends on which business you are in, who are your prospective audiences? If your business is more of B2C (Business to end Customer), it is wise to choose those mediums where you can maximise your reach to your target audience. In recent times Urban and Metros, Digital Marketing is one of the best medium given maximum results. One of the major advantage of Digital Marketing over Traditional Marketing is the Cost factor. Targeting and segmentation is another advantage of Digital marketing when compared to Traditional marketing. For e.g. mediums like Facebook and Twitter offers in depth targeting. It allows you to specifically target States, Cities an...

MBA Admission process in IIMs

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Indian Institutes if Management or IIMS are pioneer B-schools offering MBA education in India. There are 20 IIMs in the country which offer 2 years full time courses post graduate courses in management. Here is a brief guide on the admission process in IIMs. ·         Step 1 – Students aspiring to join for programmes at the IIMs in Ahmedabad, Bangalore, Kolkata, etc. should have appeared in the Common Admission Test. ·         Step 2 – On the basis of the CAT scores, the candidates will be shortlisted for the next round of admission. ·         Step 3 – Shortlisted candidates will have to appear for the Written Ability Test or WAT which is followed by Personal Interview or PI round.   Final merit is evaluated on the basis of CAT score, academic profile, performance in PI, work experience, etc. Rajagiri Center for Business Studies Kerala, one of the top ...

Scope of Part Time MBA

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MBA aspirants who are unable to pursue management programmes through regular classroom learning for 2 years can opt for part time MBA courses. Reputed B-schools like Symbiosis, IMT, MDT, etc. now offer part time MBA courses identifying its scope. Below listed are the pointers that explain the scope of MBA. • Part-Time MBA from reputed institutions are approved by AICTE/UGC and has a career growth that equals other MBA programs • Part time MBA Placement options are also high as the course is accepted by the corporate sector. • 3 year Part Time MBA course can be considered as an alternative to regular MBA programme for working professionals • It offers flexibility as the course can be attended in the weekends • The program is affordable when compared to regular courses Top Business Schools in Kerala For more details please visit :  https://rcbs.rajagiri.edu/