Biz Outlook

Dr. John Francis “Jack” Welch, Jr, shortly called as Jack Welch is well known as the world’s best CEO. Jack Welch was born in the land of the best university in the world “MIT”. He was born in Salem, for a Railroad conductor. He was born and brought up in a very austere and disciplined family. He finished his high school in the Salem High school. This man had convinced me that whatever you study is just for studying but your going to achieve something that is going to be a complete contrary on what you haev studied. And that is proved by Welch, who was a chemical engineer and became a CEO and an author who loved Management and being a journalist.
The later part of his life, gave him a great fortune. This changed him as well as the status and working conditions of all the Multi National Companies. Jack became the CEO of the General Electric. GE was the leading company and is the ever growing company which hired him as a CEO. He was called as a Neutron Bomb as he has the routine of “firing” atlease ten percent of the mangagers every year depending on their work and dedication to the company. At the same time, Jack will reward the best managers with twenty percent of the bonuses and promotions (Remember getting a job in GE is very difficult, so even when you are fired you have a great future ahead with your profile).
Once he joined the company and started following strict rules and regulations his company started earning share holders, earning projects and importantly the market value of the GE grew from just 14 million dollars to an outstanding 210 million dollars. And now at present the company made an increase of around 400 million dollars. And the value of Jack is around 720 million US dollars. And this is too much for a CEO but he deserves more. He used the Six Sigma rule of quality policy.
Jack Welch is the Neutron Bomb, who fired many, hired many, awarded few, and earned so much. You can read his book “Jack Welch and his wife Suzy Welch in WINNING”.

The Jet Airways has announced that the allowances and salaries would be cut down gradually in order to come out of the heavy losses which it is experiencing in the recent times. It has also announced that it has dropped out all plans of recruitment in near future. In order to come out of the losses, as most companies do, the Jet Airways are aiming on the employees to cut down their costs. The first step is to reduce the salaries of the employees earning more than Rs. 75, 000 per month. The cut would be 25 percent which is in effect from the 8th of December this year. The salary cut would be gradual for the next twelve months. The employees are yet to agree on the pay cuts, but fearing the loss of jobs like the drama which took place recently in the firm, the employees would mostly accept without any repercussions. The ousted 1,900 employees were taken back by the firm by mere political pressure and as government also came up with the bailout plan for the rescue of the airline industry. In the last eighteen months till September end this year, the Jet JetLite has suffered a loss of around Rs. 1, 500 crore due to various reasons like the fuel price hike resulting in the rise of ticket price followed by the decline in the air traffic. This has led the firm to cut down the number of domestic and also international flights. As recently the Air India had cut down the surcharge by Rs. 400 the Jet and Kingfisher are also forced to cut down. As a step to cut down costs, the deliveries of new aircrafts are also being delayed. The money spent on the expensive hotels is also bound to be reduced as a measure to cut down costs. The recent terror attacks in Mumbai added up to the already existing economic slowdown in bringing down the air traffic. The firm is under high pressure to cope with losses that has occurred.

We have been wondering so much on how a poor man can become the richest. We found that it is mainly because of their hard work and determination. But, there should also be something in the blood called as the “business knack”. That was what made a very poor Carnegie to become the emperor of steel. In our list of great moguls he is the oldest man born in 1835 in a small village in Scotland and died in 1919.
His career:
He started his career as a telegrapher messenger boy who earned just $2.5 a week (this is the money that a beggar of today gets in a minute). I say this comment just to show you all as how a person getting a very petty wage can become a richest man in the world. His education was not from school but from the voracious reading of the books from the libraries nearby. Then due to his great, sincere work in the telegraph office he was appointed as the Secretary of that office with just an increase of 1.5 dollars a week. Then his life started when his neurons helped him to find a key to his success by looking at the civil war and the need for steel. He started a steel roll mill in 1864 by investing a sum of $40,000 which gave him a million dollar in that same year. He sold his steel to lay the rail road for his country trains during the civil war.
The other side:
Carnegie started doing so much of investment and he rolled all his mills not with steel but with money. He became the richest man. But, apart form being a business man he was also a activist and had helped people and refugees around the world during the war. He was known for his generosity and political egalitarianism.
The end:
His quote “A richest man dies with disgrace”. Just as he said he donated all his money (350 million dollars) which is worth Bill Gates Money in today’s scenario of economics to the growth of Higher education and construction of numerous libraries around UK. Honors and Homage to Carnegie.

Samuel Moore Walton, shortly called Sam Walton is our next great legend who has added his sage to the budding entrepreneurs’ text book to success. He was born in Missouri in 1928. He was born in a low class family who was dependent on agriculture. His dad did farming but he couldn’t make much money to help Sam study. So, Sam himself tried his best and got a god score in his school and joined the University of Missouri under Economics major. He studied and once he came out of the college he got his first good job in JC Penny’s as a management trainee which gave him just $75 a month. Now, Sam is the owner of 128 billion US dollars. How can a man who was born in a low agrarian class family and find hundreds of billion dollars and get fame? This always makes me wonder, all the business legends are from poor families.
Sam Walton is the America’s largest retailer of grocery and owns the world’s largest chain of Departmental stores called “Wal Mart”. The city is said to be equipped with everything that a person needs in his life if that city has Wal Mart with it. Though there are many departmental and hyper markets nowadays, but Wal Mart’s quality of the goods are still praised since 1967. In 1972 Wal Mart was added in the Market Stock Exchange.
The Wal mart can be seen all over the world starting from Washington DC to newyork, even in North america, South America, middle east, and even Asia and Europe. The best biggest marts are available at Natal, Florida, Texas, Missouri, and Leeds. He always had a mantra in his mind for his wide success, thats “Break other’s rules”. You should be new and innovative and brave to take a risk of whatever you have planned. I can definitely say as this man had succeded worldwide in his biusiness with just Departmental store then he had to be the best business man who have actually found something to grab customers. It is not just a departmental store, it is Wal Mart!

Li Ka-Shing, when his name strikes in the mind we think about the world’s best business man from China who was under poverty line, fled from his native just to fill his stomach and get some more cash for his family. But, now he is able to fill around hundred thousand people’s stomach. He is the man who started with zero penny and made 17 billion dollars.
He has a variety of business, but amongst them he is the world’s best retailer of container terminals, health and beauty products. He owns Hutchison Whampoa Limited.(WPL) and he owns Cheung Kong Holdings. He is known for his modesty and his austere life. He always says “I never like to flaunt something fleeting – wealth”.
He is known for his outfit which he is keeping up for so many years : A normal suit, an inexpensive shoes, and a seiko watch. He is a very soft spoken person who had donated around two billion dollar totally as a philanthropist. Finally he is also known as a very grim and adament boss.
His business evolution:
Started with Plastics>Real estate>Electricity>Retailer
and now an asset trader and much more….
Stay tuned for more MOGULS living to make us envy and inspire..

We eat hamburgers almost thrice a week if we have a busy schedule and it is very difficult to cook food at home. And the most eaten hamburgers are from the most popular restaurant “McDonalds”. We should know the history behind it.
Tuning back hundred years, born a bright kid named a Ray Kroc. He was born in the era of Henry ford. So, there should be something from him also and that is destiny. He lied his age and joined as an ambulance driver when he was fifteen. Then he was working as an agent for some years and then he got sanction to become the marketing executive for a multimixer producing company. After almost fifty years of his lifetime of struggle and hassles, in 1954 after getting permission from his brothers he started a Drive in Restaurant “McDonalds” and started making hamburgers with a different taste which attracted people and gave him a turn over around 2.1 million dollars in just 4 years. Once, he did his best in the domestic market he started expanding it overseas.

Soon, McDonalds became the best place to hang out for people of all ages and still the secret of the Burger recipe is not revealed. Though Kroc was complained to have given less remuneration to the employees, he was named as the “Bachelor of Hamburgerology” and he was the legendary figure competing with Kentucky now.
His victory is because of tactics in selling the goods without any hassles with some STRICT guidelines. Honors to the great man who is making us taste the best food (and become fat ).

As each and every car maker in a pressure to increase their sales was forced to cut down the price of their cars, the ones who got affected are the used car sellers. The fall in the December month alone in the sedan section is expected to be about twenty percent where as that in the segment B cars are nearly fifteen percent. Even though the new cars are at their rock bottom prices there are no takers for the same. This had made the used car selling business skid like never before. One of the main factors affecting the pre owned cars industry till now was the non availability of loans and high interest rates but the new problem which is bothering them is the crashing prices of the new four wheelers. The price of a used car mainly depends on the market price of the new car which is taken as a benchmark for marking the price of the used car. The other factors that decide the price tag of a used car is the physical condition of the car and the mileage which the car gives. With the discount on the cards for the new cars about which I have already discussed in the blog, what can a used car seller get from a deal? What will happen to the pre owned car industry if the economic meltdown continues in the present rate? Their fate is unimaginable. With the car makers announcing discounts as high as Rs. 91, 000 for a new car, and the market being on the down, no one would come forward to purchase a used car. Now itself they say that there is no asking for the sedans. Even if few come forward to get a used car, it would be the high end customers who are well equipped economically even during the present economic crisis and as they know the present situation of the industry, they demand for a rock bottom price for the used car. This makes no sense for the pre owned car industry’s businessman as he is forced to run his business without a profit. Only if the RBI loosens its fund and hence if the trend reverses these used car dealers will have some breathing space.