Monthly Archives: July 2018

Financial improvements by CSR


As we already know that CSR has gained popularity in very less time and it is acting as one of the main aspects which are helping the firms to increase their profits and respect towards their company in society. As this is proven fact many large-scale companies are involved in it. There are different firms available in markets such as healthcare, financial services, software, goods consumers, and etc. they all spend a specific amount on CSR activities, there are two different models in CSR:

  • CSR-CA: company ability relevant CSR
  • CSR-NCA: company ability irrelevant CSR

The corporate company can choose any of the models to pursue it. Relating the CSR activities with profits is not an easy thing to understand but doing it is so easy by doing various CSR activities form the firm it would help:

  • Gaining brand reputation: by increasing the reputation of the brand it will get more name and fame all over the world due to which sales of a particular company will increase.
  • Transparency of the company increases
  • Cost saving can be done for CSR by cutting some unnecessary things
  • By involving better in CSR the firm will be able to attract the investors as people want to invest in a firm which has a low risk with better CSR the company is safe hence it will attract investors.
  • To get best out of the employees, the organization will be interacting with them continuously hence there will be an improvement in production which results in profits of the firm.
  • Going for CSR activities make the firm socially responsible, hence the firm will be completely transparent with their policies so it has a chance to attract more and more investors by which they can improve the condition of company economically

Here I can provide you a good example of Wal-Mart which was involved in CSR by which they were able to reduce the impact caused by environment and also save money by doing cost cutting on their value chain by deducting the inefficiencies. To be more progressive and helpful for CSR they have reduced packing by using disposals and used the investment in better routes. They saved $200 million by reducing their carbon footprint by using similar quantum. Many researchers say that CSR is wealth protective effects than wealth-enhancing effects. By practicing good CSR company can reduce financial risk and avoid adverse risk from the balance sheet of the firm.


Factors That Drive Mergers And Acquisitions


Though the term mergers and acquisitions are always seen and discussed together as synonymous words, there is a difference between them. A merger is when two companies come forward to get merged into one and they decide to combine and collate all their operations, their business concepts, their business secrets and everything together as one.

The acquisition is when a company takes over the other thereby accepting to take all its financial and business dealings as such and later bringing in changes in them according to its operations and business dealings. So in both cases, there are two companies becoming one but under different heads. Now there are a lot of factors that influence and trigger one of these.

  • Strategy – we have come across a lot of mergers and acquisitions but have we ever thought of the baseline that would have lead to this? The baseline for any two companies merging or when there is an acquisition happening would definitely be a strategic fit. Yes, it is a very advantageous and profitable move in case of both merger and acquisition. Generally, companies that decide to come closer under any of these two would have a match in their strategies. It might be either in terms of the market they are serving currently, the type of product they are dealing with or a service that would complement each other. It is this that actually makes the mergers and acquisitions a success and a possibility too making it a profitable move.
  • Synergy – generally companies that come together either for a merger or an acquisition try to merge department wise eliminating all the extra and the temporary ones in each of them. This makes it a more meaningful move wherein the marketing department would have marketing executives dealing and selling the products of both companies matching their suites thus bringing profits to the company. This way the other departments also function to benefit the major move and finally the company.
  • Another important factor that drives mergers and acquisitions is the acquisition or absorbing of talents. When two companies merge, they get to pool their talents into one single area thereby focussing and driving a better and enhanced approach to the customers. By doing this many companies have made their successful moves and they have also been very successful in their business operations. In such situations, there also happens a better understanding and sharing of knowledge giving birth to new ideas and concepts.

How Does A Payment Gateway Work?

We are one lucky bunch who is living in a generation of technology in everything around us. When we say technology we mean the ease of use of all services in our day to day life that has been supported by an electronic factor which helps us to deal it conveniently. Creating huge databases which can be effective and procedures to ensure ease of transactions is the key to this new terminology called Financial technology (Fintech).

Most of us are the users of the technology upliftments in banking, investment, and insurance sectors. For example, most of us have the mobile banking feature which is an easy to adapt facility which helps us in online shopping and also making online cash payments. We choose the items we want to buy and place an order and make payments using our credit or debit card online or the net banking feature online. And then we wait for the products to reach our doorstep. But the process behind the scene is more complicated and unknown to us. This is a sincere approach to make you aware of how any payment gateway will work and cater to your needs.

The mechanism of a payment gateway

Any online payment process follows the following steps to fulfill cash transaction from customer to supplier.

  1. The customer makes a purchase and inputs all his payment information as required on the website.
  2. This data travels to the merchant’s payment processor which works for the company and processes the transaction.
  3. These are then routed to credit card association like visa, master card etc where an interchangeable fee is charged.
  4. Now it is time for the transaction to be approved or denied. Here the card needs to be valid and have enough funds for the transfer.
  5. After a matter of few seconds, the above steps finish. After the transaction becomes authorized, the payment bank redirects the transaction to the parties in the payment process. This travels through a series of authorization like credit card association, payment function and finally to the e-commerce site’s payment gateway
  6. This looks simple but the transfer of funds can be anywhere from 24 to 48 hours.

This completes the entire process of the payment gateway process which most of us have seen as a function of our online purchases.

Why do we need a payment gateway?

In order to have safe and secure cash transactions online, a payment gateway is a must. It has the authorizations and hence there can be no illegal use of our credit cards or banking credentials.


Growth or Dividend pay-out- which to choose!!

There is a saying that ‘Ignorance is the biggest mistake of mankind’! every word is so true, let’s consider the example of the biggest asset that we have- money. We all know that it’shard to earn and even hard to save, yet we make the grave mistake of analyzing the info available and researching and end up cribbing.

Most of us are aware of mutual funds, heard about them. But in reality, we don’t have much info about why each of them is different and why is that our funds aren’t earning like any other pro? Why? Let’s chuck that ignorance and open our minds and eyes rot the info available and make the most.

The main aim to invest in mutual funds should be your goal at the end and your risk capability. If you know these 2 factors, then we are here to help you. In mutual funds, each fund has its own pro and cons, yet few of them are the best ones in terms of returns and are appreciating in the initial capital more than any other fund.

There are 2 options in mutual fund investment, one is the growth option and the next one is dividend pay-out. Here we explain; what’s the difference which will make in your end capital amount.

Growth option:

This is one of the most sought options, as the name says it gives you growth in the longer term. When talking about any investments, we always look for a longer term. It must be for a longer term, beyond 3 years, to see any change in your capital. So, always have a long-time period to allow your money to grow. Growth period doesn’t give you any short-term earnings but concentrates on your capital appreciation. Here you’re NAV increases, and also the number of shares per unit.

Dividend Pay-out:

This option as the name says you get a pay-out every monthly or quarterly. But, the point here is, this type is suitable for only short-term investments. If you are looking to invest only for a year, then you can choose this option. Here, the capital appreciation is very low to moderate, and gain dividend.

This type is good for senior citizens and families who need a steady income for the invested capital and also a decent appreciation in capital.

We hope this will help you in choosing the right kind of fund according to your needs.





What you must know about salary negotiations

We have all been in a situation like this as an employer or an employee we either seek salary negotiation or have to sit through one. My friend, Lenny has been on the board of a staffing agency and he claims that he has seen it all!

Possibly so, with a career spanning a decade and a half in the same industry, I am sure he knows what he is saying. He claims to have seen quite a lot of people sit through this most uncomfortable of sessions. Some of them coming out impressively well but most of them cut a sorry figure.

So, we get talking about this one evening:

Honestly, I never quite realized the importance of salary negotiation before I had Lenny explain to me the importance of this one aspect of job seeking which has the capacity of letting the employee have or not have complete work satisfaction.

Lenny was a matter of fact trying to push the envelope saying that more than the job interview, more than the actual acceptance of job and making the first impression, what is more, important is how you carry forward your terms of engagement with the company you want to join. Stressing the importance of a salary negotiation further he also points out that the exercise helps both the parties appreciate each other’s role in the company and also helps them appraise each other, which is a positive thing!

Everyone makes the same mistake”:

If there is one thing that everyone who is seeking a job does is that he prefers to silently accept the terms as given to him in writing by the company choosing not to argue or even debate the pros and the cons. This can be understood in the light of the facts that the employee

  1. May not want to come across as acting pricey;
  2. May not want to put off the interviewers by asking them about the remuneration package just yet;
  3. May want to accept the job first even before he opts for someone else.

There is absolutely no stigma in negotiating your salary:

Lenny spoke about the fact that a lot of youngsters seeking jobs at big conglomerates think that they would come across as snooty and egotists if they suggested a figure or negotiated for better perks. However, this is absolutely not the case. The employers are more than happy to hear what the employee thinks he deserves.

In the end, it is not what you deserve but what you ask for that you get! Lenny says with a wink!