Tell me why you want to become a trader

Multinational Enterprise (MNE) - A quick thought

As part of assignment for my MBA program, I put up some report over the challenges, risks faced by a MNE, which I would like to share. I take GE as an example

Genral Electric's primary divisions include GE Capital, GE Technology Infrastructure (including GE Aviation, the former Smiths Aerospace and GE Healthcare), GE Energy Infrastructure, and NBC Universal. GE operates in a wide variety of markets including the generation, transmission and distribution of electricity, lighting, industrial automation, medical imaging equipment, motors, railway locomotives, aircraft jet engines, and aviation services. It offers a range of financial services through GE Commercial Finance, GE Consumer Finance, GE Equipment Services, and GE Insurance . GE has presence in over 100 countries and also one of the largest lenders in countries other than the United States, such as Japan. It was announced in May 2008 that General Electric would auction off its appliances business for a sale between $5-8 billion.

Economic Enviroment have a direct impact to a financial company with a manufacturing arm such as GE. Macroeconomic event such as the present economic downturn especially in the Banking Industry has an adverse effect on a financial services business like GE’s. Unfavourable economic event might force an MNE to alter or rethink its projected plan for entering a new market. A slowdown might make is difficult to raise capital for investments in new or existing business. Foreign government policy also impacts a company looking to do business and an unfavourable event might discourage future expansion.

Stakeholders like to see their equity value increase over time. A public MNE like GE is pressured from its investors to invest in projects or division which have a high Return on Investment (ROI). In pursuing the stakeholders objective GE is forced to restructure on its portfolio of Businesses and avail all its restructure options including selling off some of its loss making or low profitable businesses.

General Electric takes a global approach to foreign markets and production. GE continues to expand strongly overseas, sales outside the U.S. accounted for 53% of GE’s revenue for the second quarter of 2008. The company is headquartered in Fairfield, Connecticut and through its franchise and divisions GE operates in both developed and developing nations.

A Multinational Enterprise like General Electric’s faces Cultural shock as a result of the global expansion. There are culture variations in different parts of the world and for different parts of GE’s operations. In some areas, diversity will decrease as small cultural groups are absorbed into more dominant national ones. Some of the cultural barriers faced are Behaviour practices like preference of people for certain occupation, Motivation, Value systems, ideals, thinking systems, people knowledge, Language knowledge, work culture, foreign attitude, and transnational subculture seems to pose as cultural barrier to a MNE’s expansion and performing business.

India is a multicultural, diversified country with a vast availability of skilled labour. GE has been in India since 1902 though its GE Advanced Materials, GE Commercial Finance, GE Money, GE Consumer & Industrial, GE Energy, GE Healthcare, GE Infrastructure, GE Transportation and NBC Universal businesses.

In a foreign country a MNE considers the political and legal factors that would influence the managerial decisions. For the company to succeed, its management must carefully analyze whether its corporate policies will fit a desirable political and legal environment. India is a

India is a Coherent democracy, Pluralist or Secular politically, and hence many different ideologies coexist within it. The Managers from a MNE must determine how to articulate the firm’s interest and how to influence policy making.

When entering into a contract in India, it is important for a MNE Manager to understand which type of legal system (common law, civil law, and theocratic law) will establish the contract.

Very much true!!!

“I think that if you have a squirt gun in your pocket you may have to take it out. If you have a bazooka in your pocket, and people know you have a bazooka, you may never have to take it out.” - Henry Paulson

Setting up MySQL For Ruby On Rails

Python Vs Ruby, don't want to debate on that, however right now I have given up on Python and more interested in exploring Ruby on Rails. For a quick guide on installing MySQL you can visit http://www.sapphiresteel.com/Installing-MySQL-For-Ruby-On-Rails
Another good step by step guide to running Ruby on Rails can be found at http://blog.completelysurrendered.com/?p=6
More on Ruby on Rails later.

Ruby on Rails vs Java - RailsEnvy.com Commerical

Ruby on Rails Screencast 1 - David Heinemeier Hansson

LIBOR Rate up

Another increase in the LIBOR rate. In other news the market closed lower today, the FED released its 6th report on the economy for this year. I would definitely like to do some sentiment analyses over the report (would like to test my newly acquired Python coding skills). WSJ has an article which states that the rates cuts might be on their way pretty soon. I think as FED point of view the market is still in pretty OK position unless the DJIA goes below say 12,458 i.e. it sheds its entire gain for the year and the economy would be in recession.

Passenger asked to leave flight for showing a little too much leg!

Yes that true, check more on it at http://www.signonsandiego.com/news/metro/braun/20070905-9999-1m5braun.html

Apple slashes iPhone 8GB price by $200!

Nice news, however I still prefer to wait for the second generation of the iphone or if Nokia does launch a similar product I would go for that. The new N95 seems to be awesome but the iphone touch screen feature is something which I desire at present. Right now Apple Inc. seems to be the blue eyed guy in the Technology Sector. I believe its more of a feel good factor, many of the features present in the iphone had their presence in the market way before the iphone was introduced. The new ipod nano looks cool no doubt about it. I am not complaining, nice, very nice.

UPS delivers !

Back to New York

On Sunday Feb 25th, returned to New York from the 8 day vacation in San Francisco. I think I was cursed for the Valentines day in the sense that I boarded the 6.45 am Jetblue flight on Feb 14th to Oakland only to spend the next 6 hours sitting on the same seat with the aircraft going nowhere. Little frustrating and a complete waste of time.

Anyways the weather in Cali as always was gr8 in 60's when I returned to NY I witness all kinds of weather, some part it was snowing, some parts ice and other places shover. I believe my flight was the last flight to arrive at JFK after which all flights were cancelled in and out of JFK by Jetblue. (lucky this time)