What are assets ? :)

As many of my pals, asked me to explain assets with the same example (Boutique business) which I have used to explain balance sheet, I am using the same example to explain assets and liabilities.

PS: Please ignore former hospital example used.What are ASSETS?Technically, Assets are something which can be owned by a company to create some economic resource. Assets are classified into two types.

a.  CURRENT ASSETS:These are the assets which are expected to be converted into a cash within a year.

b.  FIXED ASSETS: These are the assets which are bought for long-term benefits and cannot be converted into cash immediately.Consider the same boutique stores to understand about types of assets.

 Let us brainstorm about the necessities(assets) required to start boutique stores.

You need a piece of land or a shop to put up a store, wallpapers, Tube lights, decorative items, mannequins, Carpets, Computers, Air conditioners, sewing machines, Cloth to make clothes.

The boutique also needs some products to maintain cleanliness and hygiene around the surroundings. For this purpose, we need Fragrant room sprays, as we are dealing with clothes, there is a probability of occurrence of Termites. So, we need to be precautious and make use of Naphthalene balls which comes under our requirements.Now we have a brief idea about the essential commodities of a boutique, let us classify them into current assets and fixed assets.

Current assets:The Naphthalene balls, Wallpapers, Decorative items like (China grass, Candles, artificial saplings, mini lights etc.), cloth from factory, carpets, Fragrant room sprays are said  to be current assetsThese assets are recurring in nature and they are taken on the timely basis.

For example, you buy a ton of cloth for a month or two but you will not buy it for a longer period of time, most likely for about ten years. You will buy cloth whenever it is necessary based on the requirement and also based on fashion today. It is same with Naphthalene balls, Wallpapers, Decorative items like (China grass, Candles, artificial saplings, mini lights etc.)

Fixed Assets:Land, buildings, Computers, Sewing machines, Mannequins are said to be fixed assets. They are non-recurring in nature and are fixed. They are not used on the timely basis. Their use to the organization is almost all the time. Indeed, a boutique makes its profits out of this equipment.

For example, An Sewing machine which is bought is fixed to one corner in the boutique. The machine will not be replaced in a month or two. The purpose of the machine is long term and it is not replaced until it is completely damaged. The use of an asset which is long-term is said to be FIXED ASSET.

The Cloth used in a Sewing machine is a CURRENT ASSET and the machine is the FIXED ASSET.

In a niche, the current asset is something which is the priority of any business that is, no organization cannot survive without these basic requirements wherever as the fixed asset is something by which as an organization makes the profit.
This is all about the assets which are mentioned on a balance sheet. 

I hope you have enjoyed reading about the asset classification and I also hope this might have helped you to some extent.

The LIABILITIES classification and CAPITAL will be explained in the next post.

Until then,

Have a great time 

Sneha Polapragada.😃😃😃😃😃

What are ASSETS?ᐋᐂᐅᐌᐋᐋᐂᐅᐌᐋ

Wasn't it fun learning about Assets = Capital + Liability last week?
As mentioned in the previous article, the basic interpretation of the balance sheet is [A=C+l]. Let us explore the terms included in the equation elaborately.
What are ASSETS?
Technically, Assets are something which can be owned by a company to create some economic resource. Assets are classified into two types.
a.  CURRENT ASSETS
These are the assets which are expected to be converted into a cash within a year.
b.  FIXED ASSETS
These are the assets which are bought for long term benefits and cannot be converted into cash immediately.

Consider a Hospital business to understand about the types of assets.
Let us brainstorm about, what are the things(assets) that you might require to run a hospital.
You need a piece of land, a building constructed on that land, ancillary services like diagnostics which includes various laboratory tests like blood test, radiology and microbiology needs test tubes for blood samples, syringes, cotton, chemicals and much more imaging requires equipment like MRI (Magnetic Resonance Image), ultra-scan, X-ray machines, X-ray films.
The hospital also needs therapeutic services like Neurology, Physiotherapy and necessary equipment for them, to maintain cleanliness in a hospital we need soap liquids, broomsticks etc.


Now we have a brief idea about the essential commodities of a hospital, let us classify them into current assets and fixed assets.
Current assets:
Test tubes required for various tests, syringes, cotton, chemicals, X-ray films soap liquids, broomsticks are said to be current assets
These assets are recurring in nature and they are taken on the timely basis.
For example you buy a ton of cotton for a month or two but you will not buy it for a longer period of time, most likely for about ten years. You will buy cotton whenever it is necessary. It is same with Syringes, soap liquids and broomsticks.
Fixed Assets:
Land, buildings, equipments like MRI, X-ray machine, ultra- scan and physiotherapy are said to be fixed assets.

They are non-recurring in nature and are fixed. They are not used on the timely basis. Their use to the organization is almost all the time. Indeed, a hospital makes its profits out of these types of equipment.
For example, An X-ray machine which is bought is fixed to one corner in the hospital. The machine will not be replaced in a month or two. The purpose of the machine is long term and it is not replaced until it is completely damaged. The use of an asset which is long term is said to be FIXED ASSET.

The X-ray film used in an X-ray machine is a CURRENT ASSET and the machine is FIXED ASSET

This is all about the assets which are mentioned in a balance sheet. I hope you have enjoyed reading about the asset classification and I also hope this might have helped you to some extent.

The LIABILITIES classification and CAPITAL will be explained in the next post.


Until then,
Have a great time 😃😃😃😃😃
Sneha Polapragada.

What is Balance Sheet?😅☝😅☝😅☝😅☝

My friend and I wanted to start a Boutique business. We have come up with many innovative ideas to commence the business. As we planned for a partnership business, we have invested 10 lacs equally. I have invested Rs.5 lacs where Rs.2,50,00 is invested on my own and remaining amount was borrowed from my uncle with an interest of 2% every month. The amount which is invested was been used for various expenses. (just think what do you need when you are opening boutique stores)
1.Renting a store: Rs.2,00,000/- in advance
2.Two sewing machines: Rs. 50,000/- (25,000 each)
3.Three Mannequins (display dolls): Rs.1,50,000/-(50,000 each)
4.Furniture and other essentials: Rs.1,25,000/- (including carpentry work and paintings)
5.Fabrics to make clothes: Rs.2,50,000/-
6. Bank deposit: Rs.1,50,000/- (a bank account in SBI)
7.Two Computers: Rs: 50,000/- (for maintaining accounts and billing information)
8. Stationary: Rs: 25,000/- (pens, pencils and decorative items)

These are all the essentials to open a store.  Well, here the physical items which we have purchased are said to be ‘ASSETS', the amount which we have invested is said to be ‘OWNERS EQUITY' or CAPITAL. The amount which I have borrowed from my uncle is ‘LIABILITY'.

"ASSETS= LIABILITY + EQUITY "is an equation which defines the "BALANCE SHEET". The amount which we have brought into the business must be equal to the amount which we have spent in the stores.


Maintaining of ASSETS, LIABILITIES, and EQUITY into physical records is said to be a balance sheet. It determines the financial position of an organization.
Isn't it easy to get to know about balance sheet in simple terms and a simple equation?
I hope you have enjoyed reading about the balance sheet and I also hope this might have helped you to some extent.
The ASSETS and LIABILITIES are classified into various categories. The classification will be explained in the next post.



Until then,
Have a great time 😊😊😊😊😊
Sneha Polapragada.

What is that you prefer? Sedan,Hatchback or Limo🚗🚕🚓🚐🚋🚗🚕🚓🚐🚋

Once upon a time, we used to go to schools on foot or typically by a bicycle. We hardly found cars around us. One in ten thousand people owned a car. The world has been changed. More than five thousand people of ten thousand own a car. What is so special about having a car with you or driving it? Of course, it gives comfort to our daily hectic life by reducing time span for traveling from a source to destination.

Has a car become our basic need? Boon or Bane? Without a debate, I would say it's a boon. A working class employee has a car, a boss has a car and now when a working father wants his daughter to get married, makes sure that his son-in-law has a car with him. He never cares whether it is a small one or bigger one. He just wanted his daughter to get benefitted by the facility.

Do you think adding comfort to our basic need or facility will result in ultimate satisfaction? Of course yes, adding special features to the car would make it an extraordinary luxurious car. We have various car models namely sedan, hatchback, and Limo.

Sedan:

The very first sedan car was designed by Louis Renault and it was named as Type A Renault Voiturette. The first car was sold to Louis's father's friend on December 24th, 1889. The specialty about this car has had a cylinder which has given 32kmph speed. Later, type B, C, D, E and many more models were introduced by adding a new feature to the preceding model.

A sedan car is a box-shaped car with a curved rare view and with four doors at four corners of the car. The storage space is the rare view and many of our belongings can be kept into them. They can seat four to five passengers comfortably and are very fuel efficient. The specialty about sedan cars is they are available at any price. For example, we have a swift desire for 8 lacs and Volkswagen Passat for 25 lacs. we also have jaguar sedan which is available for 50 lacs.

Hatchback:

The very first hatchback car designed by Chevrolet Vega, general motors in September 1970. The specialty about hatchback cars are, the seats are foldable and the cargo space can be extended. They have a flat rear view with a huge storage space. In olden days, the hatchback cars had only two doors: one at the driver's seat and other at the passenger's seat where the passenger's seat can be foldable.

At present we can differentiate the sedan and hatchback by looking at the rear view of the car. If it is a curved shape, then it is the sedan or if it has the flat rear view, then it is a hatchback. The latest hatchback cars are Renault KWID, Volkswagen Polo, Maruti Baleno and much more. These cars are known to be used by working class people as they are less expensive, economic and eco-friendly too.

Limo:

Limo or "Limousine's" inception has begun in 1902. These are the most luxurious cars. They have a separate cabin for a chauffeur. The passengers will get into the car through a door which indeed is a separate cabin. They are high-end cars and are very expensive. They have a glass window kept in between the cabin. This glass window can be kept closed to keep privacy in conversations. Well, I found such cars in olden Kishore Kumar movies.

The present most expensive limo cars are Euro mini which is Rs 96 crores, the midnight rider Rs 160 crores, American dream Rs 256 crores and many more models.

Whether it is sedan, hatchback or limo, the basic need for a person is satisfaction. If a person is satisfied with his basic requirement, he demands more and more to his prior needs. That is the reason we have so many models in the market.

 Now, it's your turn to choose the sedan, hatchback or limo? What is that you prefer?

   

Nitty-Gritty of the Mumbai Dabbawalas.⛻⛫⛭⛩⛮⛯⛱⛶⛷

Indian homemakers are very sophisticated about the preparation of lunch for their hard working husbands. Traditionally, preparing the lunch has become a primary domain for a woman since ages.

Based on our Indian housewives, here comes a business model called "the dabbawalas" who collects the lunch boxes from the homemakers and gives it at the husband's office. They again collect back from the office and returns the empty boxes home.

The dabbawalas are very much committed to their work. The following are the key points which made "the dabbawalas" a successful business.

Customer satisfaction: the satisfaction level of the customer is 100 percent. As Men work for hours and hours, they prefer to have homemade fresh food rather than the roadside food. They receive their lunch boxes from home within the stipulated time and hence they are the satisfied customers. The dabbawalas treat their customers as their kings.

On-Time-Delivery: People at Mumbai say that a clock might show its time wrong, but a dabbawala cannot be late. There are more than 16,000 dabbawalas where each one of them carries 40 boxes which weigh 65 to 70kgs over their head. If a train is late, they try to send the lunch boxes through other means of transportation. Though there are hurdles, the lunch boxes will reach up to the destinations on time.

Excellent Supply chain: Though the technology has emerged, the dabbawalas are very successful without it. The logistics and the supply chain of the dabbawala network are maintained excellently. The dabbawalas maintain a coding system where they give codes to the areas and exchange the lunch boxes. The lunch boxes will get exchanged with one and other at many places and finally, it will reach the destination.

The dress code: The dabbawalas wear a white color kurta and a dhoti with a cap over the head. The cap for them is compulsory as it defines their identity. Their dressing style is very unique and a dabbawala can be spotted very easily.

Flexible delivery charges: The dabbawalas charge rupees 100 every month for delivering the lunch box to the customers. The delivery charge is very low where an average working class people can afford it every month.

Acute visibility of supply chain: The beauty of the dabbawala-based system is that all of the dabbawalas understand exactly what is happening. If certain deadlines and hand-offs are missed, people don't eat. It's as simple as that. The dabbawalas will make sure everyone within their chain understands what he or she needs to do, where they need to be and what needs to happen for the chain to be successful.

Keep the delivery system simple: One of the key lessons any organization can learn from the dabbawalas is the simplicity with which this system works. The dabbawalas are intimately aware of what their customers value (food delivered on time, every day). And, just as importantly, they don't try to do anything other than that. They don't overcomplicate things. They don't add extraneous value. They simply understand what their customers want, and they focus 100 percent of their time and energy on meeting that need.

Hence, these are few key points which determine about the Mumbai dabbawalas successful business.   

VOODOO: WHAT DO THEY REALLY DO?𓀖𓀊𓀎𓀇𓉉𓊆𓊇𓊌𓊌𓊊𓊈𓊉𓉾𓉣𓉢𓉅𓈨𓈼𓉔

As we know in the present era we have a treatment for every ailment. The pharma world has opened its doors to every corner of the world to reach people to every extent. In light of this pharmacy, we have got a market named voodoo which is located in "Todo, west Africa". This is one of the most peculiar markets to be found in the world.

About Voodoo:

Well, do you have any sort of problems regarding relationships? Or are you suffering from financial woes? or are you possessed by evil spirits? Or do you have any disease which has no treatment? Don't you people worry; we are here to heal you for all kinds of problems says the tribe at voodoo.

Voodoo market is known to be a fetish market of akodesswwa which is located in the capital city of lome. This market basically sells fetish of various animals such as dog's heads, monkey's skull, chimpanzees paws, elephant feet, gorilla skulls, cobras skin and many more products.

The fetish of every animal has got a medicinal value and has the capability to cure the diseases which cannot be cured by western, ayurvedic and allopathy.

Monkey's skull: it is used to improve the memory power.

Elephant's leg: it is used to cure elephantiasis and also strengthens the bones

Chimpanzee: it is used to increase the athletic performance

Lion: it is kept as a totem to protect houses.

Horse: legs and heart of a horse are used for improving the strength levels for an athlete

Chameleon: it improves the business of every individual

Cobra skin: it is used to heal the skin disorders.

Hawk: if someone is possessed by a spirit, the priests perform prayers and offerings to the god and then the spirit is transferred from the human body to the hawk, and the hawk is set free to fly away. This ritual is believed and followed even today.

Procedure for the medication:

The corpse of animals is dried and stored in the market.

These animal body parts are mixed up with herbs and are burnt together to make a medicine

The obtained powder is given to the patient who is suffering from various chronic, autoimmune, allergic, arthritis, celiac, cancer, scleroderma, heart, rheumatic autoimmune and liver diseases.

Not only the diseases but also they cure the problems regarding relationships, business and finances too.

How does Voodoo make money?

There is no particular price fixed for a fetish to buy or bargain. The priests at voodoo will toss some shells and communicate with god on how much they think you should pay. The process is repeated until you can reach an agreed price.

As a management student, I feel that the world has a plethora of business opportunities. Given a chance, we need to grab the opportunity. The business plan of voodoo market is unique and excellent. This kind of medication and ailment is available only in west Africa. People who cannot afford the traditional medication will adopt this kind of medication and treat the most powerful diseases with the dead animal's body parts is really an innovative business plan.

The Essence of Ugadi 🌲🌲🌲🌴🌴🌴🌱🌱🌼🌼🌺🌻

Ugadi is the most important festival which is celebrated by the Hindu's in locations like Telangana, Andhra Pradesh, Karnataka, Maharashtra and many other places. It is also called as yugadi in Telugu speaking states and called to be as gudi padawa in Maharashtra.
Ugadi is said to be the beginning of the year. The word Ugadi was derived from Sanskrit, where uga means ‘age' and gadi means beginning which completely means beginning of a year.
The festival starts with drawing colorful rangoli on floors and putting mango leaves to the casings which is said be the tradition of Indian culture. People then will have traditional oil bath and then wear new clothes.  Delicious food items like yellow rice(pulihora), puran poli(bobatlu), curd vada(perugu garelu) and Ugadi pachadi are made and will be consumed.
The ugadi pachadi is the main food item for the festival. It has six ingredients like salt, sugar, bitter, sour, tangy and spices. This dish symbolically means various emotions of human life in the following year. Life is not always sweet and smooth, it will also have bitter, sour and spices in it which will reflect the human behavior
Salt – which determines the fear
Sweet- which determines the happiness
Bitter- which determines the sadness
Sour- which determines the disgust
Tangy- which determines the surprise and astonishment
Spices – which determines the anger.
All these emotions put together is said to be Ugadi pachadi which is happily consumed by several people.The most important part of the ugadi festival is "panchanga sravanam" which means telling about the horoscopes and future of the people in the new year. This is very interesting part of the festival.

The Indian culture is very prominent and unique. People here celebrate festivals to come together with zeal, social merriment and to share their happiness. Though the world is being changed, the customs and the rituals are still being the same which makes the indian culture to be unique ever after.

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Swiggy one time one order 🍦🍧🍩🍫🍜🍸🎂🍢🍣🍕🍵

I was very much hungry at 4 pm today. My sister said let us Swiggy something. I picked up my phone and placed an order of an ice cream and curry puff. The order has taken just 20 minutes to reach the destination. I wondered how was that possible. I quickly picked up my phone and started learning about Swiggy.

Swiggy is a Bangalore based company which is owned by Rahul jamini, Sriharsha Majety, and Nandan Reddy. They were inspired by a thought of providing the food just by clicking smartphones. It is a food ordering delivery based company which was started in August 2014. After facing a failure in Bundl technologies Reddy and his friend Majety planned to start an own business. For the technical support, the duo met IIT Kharagpur's former alumni jamini who has quit his job from Myntra to become an entrepreneur. All three of them started to work on Swiggy. Jamini has provided routing algorithms which run Swiggy on online successfully.

Food!Food!Food!💥💥💥💥💥

The world has become digital today. There are many companies which only run online without a physical existence. Swiggy is one among them. A person has to just download the "Swiggy app" from iOS or Android stores, then register yourself in the app and there you go to order the amazing and luscious food you wish.
How Swiggy makes money?
When you place an order, a Swiggy executive receives your order and he goes to the restaurant to pick up your order. For every order, Swiggy takes a commission of 20 to 25% and the remainings would be given to the restaurant holders.  In that way, both restaurant owners, as well as Swiggy, gets benefitted. Swiggy has generated a revenue of $2million after its inception in the first year.
Well, I tried to learn something really interesting and fascinating business plan today. The world is completely open. We have many opportunities to start a venture. Swiggy says one order one time but I say one business, one idea and one opportunity to make money forever.

I find business everywhere: A Commercial world!💭💬💫

A couple of weeks ago, I was asked to go out for a long drive with my friends. I went to a temple along with them. It was a good place with a lot of crowds around. It was lord Venkateswara's temple. My friends and I circumambulated around the temple and prayed to the sacred idol. We found a priest there who was announcing about the temple and its importance. He also said, "Dear devotees, if you wish for a good life with health, wealth, and prosperity, get these books and just pay some amount of your choice". I was wondered how books are related to a good life? I found it to be a pure business.

On my way back from the temple I found a parrot astrologers sitting outside the temple in a line. They kept yelling at us to check with our astrology. We went to one of them and he asked me to sit down and asked the parrot to choose a card for me. The parrot came out the cage and chose a card for me. He started saying that there was something bad going to happen to me and he would reveal the thing completely if I pay 1000 INR. I just said him thank you and left the place. How will a bird decide a person's future? It was just a speculation. what if the parrot chooses a different card? My future would be different then. I found it as a business.
Sharjah point: Well, this is a very interesting business. A small stationary owner owned this business. Sharjah is nothing but a cool drink made of coffee powder, bourn vita, slices of banana, milk, and ice are blended together to become a cool drink. Irrespective of the season many people visit there to enjoy the drink. Of course, it tasted luscious. Each glass of Sharjah was charged about 20 rupees. It is a small business but there are more than 300 to 500 people who visit there to taste and enjoy the drink.
Today, the world has opened many opportunities. The business is seen everywhere from the busy hustle and bustle cities to small towns. We need just have an idea a little funding and need to grab a right opportunity, at right time and at the right place.

Uber: A new way for innovation 🚘🚗🚦

 Technology has been evolving as part of our daily lives. We find technological enhancements in smartphone technology, Robotics, Virtual reality and many other segments which we often use.
When we have technological advancements in various segments, why can't the technology can be used in taxi services? Why can't we just tap a button on the smartphone and get a cab service in no time?
These questions were asked by two young men named "Travis Kalanick and Garrett Camp" who waited for a taxi for a long time. This thought of them made open "Uber service" which became very popular where you can get a taxi within no time once you tap on your smart phone
How does it work?
Uber is a smart phone application. Clients have to download the app from App store or Play store. After downloading, they are free to access the Uber services from various remote locations. When clients request a ride from the app, the drivers track the place of the client with GPS navigation and find the best way to reach the client as soon as possible. The payments for the drivers are done by using Optimization algorithm. It organizes the necessary information to reduce the cost per ride, fuel cost and also provides a ride-sharing option which is very beneficial for the clients.
How does it make business?
Uber does not own cars. They lease cars to its Uber X drivers. It provides the cheapest way of transportation through ride sharing. The company has partnered with general motors, Toyota, and other companies to lease the cars for Uber X drivers. By leasing the cars, drivers could borrow better interest rates rather than traditional leasing procedures.
Uber has also started xchange leasing, which was very beneficial when compared to the general leasing. The drivers are asked to pay $250 for a vehicle and it would be a 3-year contract. The company offers cars to the existing uber drivers for leasing and send them to local dealerships with financing in hand.
In a nutshell, the main aim of the uber is to satisfy the driver as well as the customer using the modern technology.

" Ask not what the country has done for you. Ask what you have done for the country!"👉✌

                  

Human beings are eccentric in nature. As an infant he enters the world and as a toddler he enters the society. In a course of time he gets involved into social life, absorbs its values and standard of behavior. As the man gets influenced by the society do the society gets influenced by man. It is essential that man has to get himself involved into society voluntarily, just as society shapes human beings, so the human beings shape the society.

The courtesy and the esteem of human beings does not lie with the wealth but it lies with showing responsibility towards the society. The eminence of a person is known after his demise, if he gives back something to the society. There are people out there who do not even have a proper refuge and they desire to grow up in their careers through proper education. Those young children out there who are from various parts of unknown rural areas and economically backward are very passionate about their careers and wanted to be respected in the society. How do we serve them? When you are earning thousand bucks, why can’t you donate one buck to satisfy the needs of those poor children. It is responsibility of each and every individual to take care of people who are really needy. Human beings are meant to help one and other. When they help one and other then the society becomes enhanced.

As an MBA student, I feel when u serve the society, the society will serve you back. The real happiness does not lie in wealth or having property. It lies in the smile of that person who is seeking for help.

Invention and innovation of a product/service in an enterprise using S-curve.

Invention and Innovation are the most common words which are used by entrepreneurs, politicians, and other workers. Their idea is to bring a new product or new idea into the world. In the purest sense, an invention is a process of introducing or creating a new product in the market, whereas innovation means adding supplementary features to the existing product. The focus of a company is not only to provide an inventive and innovative product but also it has to keep an eye on the hurdles the company would face. Imagine a tool which would analyze the product and idea of a company time to time from its inception and also predict the performance of a company in future. S curve is such a tool which would analyze and predict the performance of a company. The S-curve is a mathematical model which is also called as the logistic curve, describes the growth of one variable in terms of another variable over time. S curves are found from biology and physics to business and technology. Businesses, Products or new ideas of business are attributed by schematic start, where only new product inventors and niche markets adopt S curve strategies. When there is a rapid growth in the business it would ensure a high performance and when there is a little growth, it ensures a matured but a soaking business. When it comes to technology, entrepreneurs adopt S-curve life cycle for computers, software and other electronic devices. When a product of the prior categories is into the markets, the growth rate is very low because the researchers are very poor in understanding the new technology, but once they get to know about the technology, the progress accelerates rapidly. For example, IBM is a company which has adopted the S curve principle. In early 1990's the decline of the business in IBM can be explained by s curve or "innovator's dilemma" . There are some companies which fall into a prey of marketing myopia  , A company which innovates new products will try to put a good effort in its products/ services. Organizations image is based on particular product/service.If the innovative product/service goes beyond the standpoint, it leads to disruptive innovation. For example, Microsoft is a company which manufactures Windows Os, it will not change its platform and innovate a new product which would obsolete windows, the Microsoft's image is based on windows indeed.
WHAT IS INVENTION? A process which creates a new product or idea typically for the first time is said to be an invention. For example Invention of the superior stethoscope.
WHAT IS INNOVATION The process of transferring ideas of a person as an individual or as a group belonging to the organizations , in order to produce goods and services to benefit its customers. No human being wants to use same product over a period of time, there should be some change in the usage of the product. For example: let us take an example of "Android Os".The very first Alpha 1.0 which was released on September 23, 2008. There were many other versions of android os's got released which would meet the needs of customers in a better way. Today we have android version named Nougat. When you have a better version of android how will you expect customers to use the older versions? Can you imagine using a gramophone when you have superior versions of flash cards and other drives? As there is the change in technology, there should be the change in the psychology of the customer too. Along with a change in technology the customer has to adopt new needs, new wants and new demands.
Invention and Invention are interrelated to each other. When a company creates a new product, it is said to be invention and when additional features are added to it, it is said to be innovation.
the paper A study on an invention of a product/service in an enterprise using S-curve has given various traits of adopting innovations for existing products for various companies.The s-curve is the robust framework which identifies different industries at various stages. The way IBM adopted s-curve is different from apple inc, Starbucks, and Patanjali. Though the adoption of s-curve differs from company to company, the aim of the firm is profit making with a well satisfactory customer and also brand building in addition. Hence, whenever a company needs diversification or whenever the product/service gives diminishing returns or whenever the company has to invest into new technologies the adoption of S-curve is essential.

MOVIES, FINANCE, AND BUSINESS.

Don’t you think movies always fascinate people? Is there someone who doesn’t love movies in the present world? Absolutely not! I always wondered how movies make business in the present world.

Bhajrangi Bhaijan is a great movie which grossed $600 million. We quite often see on various websites that someone keeps on posting “the most profitable movies of the year”. This list usually uses the budget of the movie and the collections it has made after the initial release. This always confounded me whenever I give a quick glance to the list. Making movies is a kind of business where financing has to be made which is noted as “film financing”

HOW WILL THE FINANCING HAPPEN?

Financing is the important aspect of movie making. Without money, movies can’t exist, but it is a kind of topic where least information is floating around. The main factors that determine the commercial success of a movie are public taste, artistic merit, competition from other films released, the quality of the script, the quality of cash, etc. But there is no accurate method to determine the level of revenue returns for a film though it is mentioned commercial on paper. Many commercial films make money over decades. The time value of money plays an important role here. The film which got released today will be played on the televisions for over a decade or two which would generate the revenue for the succession years after the initial release of the movie.     In the past, there was only box office for the investors to gain present value return on their investment.

The difficulty in raising a capital for any venture is two-folded. Firstly, the market is too crowded with a plethora of opportunities that are currently earning strong returns. Secondly, speculation is the killer of financial deals. Future is uncertain and unlikely to know. Few people want to invest in an opportunity where returns are unlikely.

When it comes to film financing other than capital many other aspects like talent, timeline, multiple financiers, scheduling, and structure comes into play. So keeping this in mind, how do we finance a film?

There are plenty of ways to finance a film:

1.    Government subsidies: Government of many nations run various programs to provide subsidies to the various films. They are willing to provide subsidies in order to attract the creative individuals to their territory and to nourish employment.

2.    Tax incentives: Some US states and other territories provide provisions 15% to 70% tax or cash incentives for the cost of production to the films/televisions as expenditure. This is called soft money. This money is incurred by the production unit after the final payments to the workers, financial institutions, and other prop companies.

3.    Private equity financing: Most often the cost of production is regained by a couple of taxes which are state level and federal level tax incentives, eliminating the most of the risk. Though the risk is eliminated, capital is required as a direct investment here. For instance, if an investor invests capital into film production, he/she will receive the equal amount of capital in the form of tax incentives, pre-sales, and state tax credits.

4.    Debt financing: Pre-sales play a key role in debt financing. The production unit of the movie will distribute the copyrights of the movie to various territories before the movie gets completed. Typically, the buyer who buys the movie will pay 20% of the amount to the production unit as an advance and the remaining 80% balance will be paid after the initial release of the movie.

5.    Crowdfunding: It is a practice where general public started financing in movies. They are less risky, more profitable, more innovative independent films. Crowd financed films are iron sky, kung fury, star trek and veronica mars.

Even after scaling these hurdles, making the movie is one of the biggest challenges to the crew of the movie. Each and every person in the movie have to strive hard to make it a magnum opus.

Impact on stock market due to US presidential elections

Stock markets are very sensitive to events and information. There could be volatility in the stock prices either side based on the news. Events might be Natural disasters like Earthquakes and Man- made attacks like terrorism. For instance, the market today is interconnected. That is the earthquake which was occurred in the Indian ocean on December 26 ,2004, showed an impact on THE stock market by reducing the percentage of stock up to 3.8%.And also,from Oslo to London to Brazil to Brussels terrorist attacks would puncture the relative calm working world to enormous irregularity.After Paris attack on November 13,2015, the CAC 40 has dropped to 1% just after it opened.When it comes to information,the presidential elections of USA might impact the stock market worldwide. There was an illusion that the victory of Donald Trump would likely cause the stock market DJIA, -0.02% to crash and plunge the world into recession.
Is there any relation between US presidential elections and stock market worldwide?The US
presidential elections are the major event that takes place in every four years and affects economies all over the world. Election results not only influence the corporate performance but also on the stock market.Stock market participants incorporate their expectations about political changes into prices just before an election and adjust it according to the actual decision made following the election.Therefore future markets increase volatility in fixed elections due to uncertainty about the election results and their inference.The election process in some countries takes few weeks, but in United states ,the presidential candidates undergo a political marathon, negotiating primaries, party conventions, and electoral system. American politicians say the way they elect they president is one of the most open and democratic processes in the whole world. US presidential elections are always
held in November.
The presidential election begins with the primary elections and caucuses and moves to
nominating-conventions 3,during which political parties select a nominee to unite. The nominee also announces a vice presidential candidate at this time. The candidates then campaign across the country to explain their views and plans to voters and participant in debates with the candidates of other parties.And then comes the general election To win the election, a candidate must receive a majority of electoral votes. In the event no candidate receives the majority, the House of  Representatives chooses the President and the Senate chooses the Vice President.
In this study, we examine the affects of the presidential elections on the stock price indices like NIFTY 50, NASDAQ, SSE and EUROSTOXX 50 which are related to India, USA, China, and Europe respectively. This study measures the stock price sensitivity to election results for the presidential elections from 1992 to 2016 that is since the establishment of NSE. Therefore we measure stock price returns in different countries for 5 months period prior and after the election.
1.Djia: Dow jones industrial average
the Dow, is a stock market index, and one of the several indices created by Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow.
2.state primaries are run by state and local government. This voting occurs through a secret ballot.
Caucuses are private meeting run by political parties. In most, participants divide themselves into
groups according to the candidate they support and each group give speeches supporting its candidate and tries to persuade others to join its group.And the end they count the voters in each candidate’s group and calculate.
3.nominating conventions -the party normally knows who has won.
 The delegates from each state formally choose their champion to go forward as the presidential candidate.
From the above, it could be easily said that the investing community as a whole and the academicians are interested in understanding the factors that influence the sensitiveness of the stock indices. The present paper is an attempt to understand and document the sensitiveness (volatility) of the select stock indices such as Nifty 50 of India, Nasdaq of the USA, SSE of China,Eurostoxx of Europe. For the purpose of the study, the time period of 1992 to 2016 has been chosen. This period coincides with the establishment of National Stock Exchange in India in 1992. The above stated
period covers five number of presidential elections.