rajesh purohit / blog

Everyone loves milking a cash cow, especially politicians. But the story here is very different. Fed is desperate to avoid any kind of deflation be it Milk industry. The slowing demand of milk and milk product is bringing milk prices down and in turn making it tough for dairy farms to survive. Unlike automobile industry, they can't turn cows on and off. They have to milk cows, which results in surplus of milk in market and driving down the prices. Federal government is planning on option to give incentives to farmers and dairy owners to 'retire' cows to bring down the milk production and to make price climb again. But this could result in downfall of meat industry; more cows are slaughtered more is the meat supply which in turn bring down the meat prices for consumer. It's lose-lose situation for federal government. By the way, if milk production is down, pr ices will go up again, the dairy owner/farmer will try to 'milk the situation' and surplus milk will flo...

Dividends are payments made by a corporation to its shareholder members. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business (called retained earnings), or it can be paid to the shareholders as a dividend. Now in case of banks and big blue chips across the world, it’s weird that banks are still paying dividends to shareholders and bonuses to their employees. By the vary definition of bonus and dividend any child can understand that these should only be paid only when organisation is in profit and have surplus left after setting aside money for future expansions. Banks in US, UK and Europe are bailed out by the taxpayers of those countries and banks are using this amount to pay investors and awarding themselves!! I agree that Mutual funds, retirees, teachers, pension funds are all beneficiaries of dividend payments. They get dividend payments from banks, Nevertheless it should be done only when they are generatin...

The sociologist William Ogburn once wrote, Never before in the history of mankind have so many and so frequent changes occurred ... they have been occurring faster and faster until today mankind is almost bewildered in his effort to keep adjusted to these ever-increasing changes This is not relatively recent observation but actually was made in 1922!! There is always a tendency to believe that our era is more turbulent than the time before.

Normal 0 false false false EN-US X-NONE HI The research by Nath and Mahajan (2008) develops theory to investigate what factors defines whether or not a firm’s top management team (TMT) will have Chief Marketing Officer (CMO) and does the presence of CMO affects firm performance in the face of these factors. None of the research prior to this tries to relate firms branding strategy with TMT’s structure choice. However, there has been increasing need to develop and enhance ability to account for marketing’s contribution to firm performance and has been voiced in earlier researches [ (Bolton, 2004) and (Hyde, Landry, & Tipping, 2004) et al]. The purpose of this empirical research was to prove that CMO’s presence on TMT affects positively to the firms performance. Unfortunately, research could not prove this hypothesis and found n...

Ramalinga Raju, chief of Satyam Computer Services was very respected man in India and his home town Hyderabad. Even in wildest dream no one would have thought he would become Stein Bagger of Denmark or Madoff of USA. Stein Begger’s story is somewhat similar to Raju. He too got entrepreneur of the year award, his company was progressing at fast pace, Accounts were audited by world’s top audit firms KPMG audited IT Factory's accounts from 2005 through 2007. Deloitte did the same in the previous two years. From 2003 through 2007, IT Factory reported that its revenue grew 69 times and its profit rose 288 times, to 121 million kroner ($22 million). This year, says Mr. Jensby, the chairman, IT Factory expected to roughly quadruple its profit. Mr. Bagger used a web of phantom firms to get money from banks and then used these same companies to place big purchase orders for IT Factory software and services. He was buying from himself using other people's money. But Stein was no match in...