tag:blogger.com,1999:blog-1764272219848718172024-03-02T17:47:04.901-08:00Small Ideas Big Opportunities This blog is for entrepreneurs. Smart Small Ideas can Create Big Opportunities. Success comes with small start but great vision.Zia Ahmedhttp://www.blogger.com/profile/15251232944846705347noreply@blogger.comBlogger166125tag:blogger.com,1999:blog-176427221984871817.post-23090550475490964192022-06-28T07:32:00.004-07:002022-06-28T07:32:30.310-07:00Startup Ecosystem<p><span style="font-size: large;"> <span style="color: #2b00fe;"><b>Startup Ecosystem </b></span></span></p><p><span style="font-size: large;"></span></p><div class="separator" style="clear: both; text-align: center;"><span style="font-size: large;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgpZndXlvUJOB2235rdTmwq3UxKygOrwA5Ndv4oK5snmo_cEEBfBTodgUzLSHfFT4rHlyb2c5jZ61RBuv20AzzoMBo39lYz2_WFylurA-uJtyIzQooJp-Yp_T-dimMk5vdcUXzjFKveSjyxlM9Vwihg_3DbiLBdv7zQH0R3Mq3opS9EqiCuXN-43xQG/s1080/Ecosystem%20.jpeg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1080" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgpZndXlvUJOB2235rdTmwq3UxKygOrwA5Ndv4oK5snmo_cEEBfBTodgUzLSHfFT4rHlyb2c5jZ61RBuv20AzzoMBo39lYz2_WFylurA-uJtyIzQooJp-Yp_T-dimMk5vdcUXzjFKveSjyxlM9Vwihg_3DbiLBdv7zQH0R3Mq3opS9EqiCuXN-43xQG/w400-h400/Ecosystem%20.jpeg" width="400" /></a></span></div><span style="font-size: large;"><br /> </span><p></p><p><span style="font-size: large;"> </span><br />Startup Ecosystem is essential to the Sustainable Growth. Small businesses are key driving force of the economy. Most of Employment is created by Small Business. Vibrant Small Business drive the growth. Every Big Enterprise essentially runs on inputs and supports given provided by Small Businesses.<br />Startups and Small Business essentially needs environment which encourages and supports them. This Environment / Support Mechanism which make sure to build Success Story is called Ecosystem. <br />This Ecosystem has many components, which make sure things can move in right direction. </p><p><br /><span style="color: #2b00fe;"><b><span style="font-family: arial;"><span style="font-size: large;">Learning System </span></span></b></span></p><p><br />Early Education is first step. Education system should be creativity and curiosity driven. Enough importance should be given to building skills and knowledge driven by Creativity and Curiosity. Students should understand importance of learning to improve the lives. Building confidence to do something new, something different. <br />Yes, I Can, Attitude Can only Bring Change. <br />Which will develop creativity and curiosity</p><p><span style="color: #2b00fe;"><b><span style="font-size: large;"><span style="font-family: arial;"><br />Training</span></span></b></span></p><p><br />Which will build Entrepreneurial Capabilities. Training is essential component of success. Entrepreneurship Training Programs which will cater essential skills to the Entrepreneurs. These training programs should be available to everyone and widely promoted. Programs should build Entrepreneurial skills. These training programs must also tell, Failure is not End, it is only a step to success. <br />Right training will mentally strong Entrepreneurs who are ready to take risk. <br />No Risk no Reward <br />Entrepreneurship is all about taking risk. Putting your money and time to build bright future for self and society. Entrepreneurship is all about improving life for everyone, at the same time getting Rewarded. <br />Training programs must preach importance of Risk Taking, and Rewards on success. </p><p></p><p></p><p></p><p></p><p><br /><span style="color: #2b00fe;"><b><span style="font-size: large;"><span style="font-family: arial;"> </span></span></b></span></p><div class="separator" style="clear: both; text-align: center;"><b><span style="font-size: large;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhstmnszRgmTLo29Uus-ytTqLzcXa5MLlMh1qjYljcEkrhiU9DmQrv9cBeNfbOIICRQ4cpU24vlowXl3Py_8ZeG8tZv196zt1QpWqazj0cZAZIU5bdaJUA4gLf3VqVfLBjeuucuEb4zmB-hgdu5tmBjCyXO4XWzR-ALcePY0p5iaw8auLDHFV6dCFAc/s1080/Startup%201.jpeg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1080" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhstmnszRgmTLo29Uus-ytTqLzcXa5MLlMh1qjYljcEkrhiU9DmQrv9cBeNfbOIICRQ4cpU24vlowXl3Py_8ZeG8tZv196zt1QpWqazj0cZAZIU5bdaJUA4gLf3VqVfLBjeuucuEb4zmB-hgdu5tmBjCyXO4XWzR-ALcePY0p5iaw8auLDHFV6dCFAc/w400-h400/Startup%201.jpeg" width="400" /></a></span></b></div><b><span style="font-size: large;"><br /></span></b><p></p><p><span style="color: #2b00fe;"><b><span style="font-size: large;"><span style="font-family: arial;">Idea Development</span></span></b></span></p><p><br />Developing Ideas is very important. Feasibility Study, Market Strategy, Evaluation of Idea is essential. Evaluation is required to see if idea is commercially viable. What is market potential, what are the challenges. Once basic questions are addressed, now it is ready for launch. <br /><br /><span style="color: #2b00fe;"><span style="font-family: arial;"><b><span style="font-size: large;">Support for building Ideas</span></b></span></span></p><p><br />Even though Idea may be very good. What is important is its Commercialization. <br />Hand-holding is essential to building a Commercially viable Idea. Understanding the potential and then Monetization are very important. </p><p><br /><span style="color: #2b00fe;"><span style="font-family: arial;"><span style="font-size: large;"><b>Mentors </b></span></span></span></p><p><br />Mentors are essential for Hand-holding. Mentors provides essential inputs and knowledge to successfully implementing the Idea. The role of Mentor is multi-functional and needed at each step. Mentors are essential to the Success of Idea. <br /><span style="color: #2b00fe;"><span style="font-size: large;"><b><br /> </b></span></span></p><div class="separator" style="clear: both; text-align: center;"><span style="font-size: large;"><b><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi1a_AcMxesGZcQE7A018ov6CUY8WjnytSuDhpes4i0aCcgyN5pO3T502xYEg4xuvyEs9d4xrLHc8ej76wEXONHj3ePPCyzcH05Bk0BcL2kqd-GGRFHFDQ1rWIQTbxWrwRjxMbYbJ8UGzbqLTsR09hmI-FOxP43XA_nexdeWNfx_2pteAN5jPMwcFm5/s1080/Entrepreuners.jpeg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1080" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi1a_AcMxesGZcQE7A018ov6CUY8WjnytSuDhpes4i0aCcgyN5pO3T502xYEg4xuvyEs9d4xrLHc8ej76wEXONHj3ePPCyzcH05Bk0BcL2kqd-GGRFHFDQ1rWIQTbxWrwRjxMbYbJ8UGzbqLTsR09hmI-FOxP43XA_nexdeWNfx_2pteAN5jPMwcFm5/w400-h400/Entrepreuners.jpeg" width="400" /></a></b></span></div><span style="font-size: large;"><b><br /></b></span><p></p><p><span style="color: #2b00fe;"><span style="font-size: large;"><b>Seed Capital..</b></span></span></p><p><br />The First investment must come from the owner of the Idea. This is essential to the commitment of the project. <br /> After first money, next money should come from Near and Dear who trust the Owner of Idea and Idea. <br />Once Idea starts moving, it is time for others to cheap in. </p><p> </p><p></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="274" src="https://www.youtube.com/embed/gXCU8DSpBrA" width="455" youtube-src-id="gXCU8DSpBrA"></iframe></div><br /> <p></p><p><br /><b><span style="color: #2b00fe;"><span style="font-size: large;">Commercialization Support </span></span></b></p><p><br />Every good Idea can not be monetize and make money. It is most important to understand the monetization potential of the Idea. Unless the Startup does not potential for mass acceptance and success, no investor will put his money. The Entrepreneur must prove the Startup can be monetize and has potential to grow. <br /><br /><span style="color: #2b00fe;"><span style="font-size: large;">Venture Finance.. Investment </span></span></p><p><br />Once Startup Idea is commercialize, and it started growing. This is stage when Venture Capital sees potential and invest. Investors see long term growth potential. They see market opportunity and invest. At this stage the the Idea gets big boost and growth speeds up. </p><p> </p><p></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="321" src="https://www.youtube.com/embed/YTuk8nHgD-4" width="482" youtube-src-id="YTuk8nHgD-4"></iframe></div><br /> <p></p><p><br /><span style="color: #2b00fe;"><span style="font-size: large;"><b>Growth Capital.. Private Equity </b></span></span></p><p><br />Once the startup comes to the breakeven and see huge growth potential, Private Equity takes interest to invest more money. Speed up the growth, so that it can be listed or sold to another investor. <br />Exit..<br />Exit is essential, it is life. IPO, sell out or Mergers, what ever may be the name, Exit is life.</p>Zia Ahmedhttp://www.blogger.com/profile/15251232944846705347noreply@blogger.com0tag:blogger.com,1999:blog-176427221984871817.post-34884863868064664612021-10-10T09:56:00.001-07:002021-10-10T09:56:12.041-07:00What is Salam Financing<p> </p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b style="mso-bidi-font-weight: normal;"><i><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">Salam</span></i></b><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;"><o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><i><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">Salam </span></i><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">(Advance Payment against Deferred Delivery of Goods) <i>Salam </i>(also
referred to as <i>Bai Salam</i>, <i>Al-Salam</i>, <i>Bai al-Salam</i>) is an
ancient form of forward contract wherein the price is paid in advance at the
time of making a contract of sale for goods to be delivered at a future date. <o:p></o:p></span></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;"><br /></span></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjc9fEGfg4Rr-HMTKkVyIBLLXo12dd7LgKpqejhCqIpAInL_Ov_HbAlPH_LFvBHZct-RRaVcQJHkJIZVMy_jAjd9JE7ZcOxPwUOj-2xCf18GCeqnvjAoFTMjidGoOLXyn3zpWWZwABmAng/s1080/Salam+Finance.jpeg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1080" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjc9fEGfg4Rr-HMTKkVyIBLLXo12dd7LgKpqejhCqIpAInL_Ov_HbAlPH_LFvBHZct-RRaVcQJHkJIZVMy_jAjd9JE7ZcOxPwUOj-2xCf18GCeqnvjAoFTMjidGoOLXyn3zpWWZwABmAng/w400-h400/Salam+Finance.jpeg" width="400" /></a></div><br /><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;"><br /></span><p></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;"><br /></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">What is given in exchange for the advance payment of the price
should not in itself be in the nature of money. For the payment in advance, the
contracting parties stipulate a future date for the supply of goods of
specified quantity and quality <i>Salam </i>may be considered as a kind of
debt, because the object of the <i>salam </i>contract is the liability of the
seller, up to the agreed future date, to deliver the object for which advanced
payment of the price has already been made. </span></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;"><br /></span></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="308" src="https://www.youtube.com/embed/-IXZrp6HDTY" width="449" youtube-src-id="-IXZrp6HDTY"></iframe></div><br /><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;"><br /></span><p></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">There is consensus among Muslim
jurists on the permissibility of <i>salam, </i>because the object of the
contract is that the goods are a recompense for the price paid in advance, just
as the price is recompense paid for getting the goods in advance. <i>Salam </i>is
permitted, notwithstanding the general principle of the <i>Shari´ah </i>that
does not permit the sale of a commodity which is not in the possession of the
seller. When Prophet Muhammad (pbuh) came to Madinah (the second holiest city
in Islam, after Makkah), the people used to pay in advance the price of fruits
(or dates) to be delivered within one, two or three years. But such a sale was
carried out without specifying the measure, weight and the time of delivery.
Prophet Muhammad (pbuh) said: "He who sells on Salam (money in advance)
must sell a specific volume and a specific weight to a specific due date (to be
delivered later)". The practice of <i>salam</i>, as ordained by the
Prophet Muhammad (pbuh), continued during his life time and also in later
periods. The list of items covered by <i>salam</i> suggests that it benefited
the owners of farms and orchards. Barring a few exceptions, the Muslim jurists
have now expanded the list of items which can be sold under salam to cover all
homogeneous commodities that can be precisely determined in terms of quality
and quantity.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;"><br /></span></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgGBtVkPy0GVi3RKR-OJECRyv2DoJmM_bfvLk6Ai1NMyJ7Ji7qi2JLFA0EPhzQkIG37H2_LGAchFwmSEbgiSj3tWo-vpSgQTE0Byhvx-klhNe8qDbyhADY0lQb1JqjrI4XtawViXJObzaM/s1080/Salam+Rules.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1080" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgGBtVkPy0GVi3RKR-OJECRyv2DoJmM_bfvLk6Ai1NMyJ7Ji7qi2JLFA0EPhzQkIG37H2_LGAchFwmSEbgiSj3tWo-vpSgQTE0Byhvx-klhNe8qDbyhADY0lQb1JqjrI4XtawViXJObzaM/w400-h400/Salam+Rules.png" width="400" /></a></div><br /><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">Rules for a Valid <i>Salam </i>Contract<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">Only those fungible (mithli) things which can be precisely
determined in terms of quantity and quality can be contracted in <i>salam</i>.
Besides, <i>salam </i>cannot take place between identical goods, e.g., wheat
for wheat, Dollar for Dollar and potato for potato. All goods that can be categorized
as belonging to the same species can be the subject of <i>salam</i>.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;"><span style="mso-spacerun: yes;"> </span>For example, wheat, rice,
barley or other grains of this type, motor cars of any trade mark, oil, iron
and copper can all be sold through <i>salam</i>. Similarly, electricity
measured in kilowatts can be considered a fungible commodity. <span style="mso-spacerun: yes;"> </span>In <i>salam, </i>it is necessary to fix
precisely the time of delivery of the goods. The buyer must unambiguously
specify the quality and the quantity of the goods and the specifications must
be applicable to the generally available items of the goods of the contract.
The specification of goods should particularly cover all those characteristics which
could cause variation in price. Thus the general terms and conditions of <i>salam</i>
should be binding in nature and Q2P2T be followed. The first Q stands for the
quantity of the commodity to be supplied. The second Q stands for the quality
or variety of the commodity. The first P stands for the price to be paid in
advance by the buyer and the second P stands for place of delivery. Finally, T
stands for the time of delivery.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">The buyer in <i>salam </i>should advance the price of the commodity
at the time of making the contract<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">Risks in <i>Salam-</i>based Financing<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">Islamic banks may face the following risks in <i>salam</i>-based
financing: <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">a) Counter-party Risk (the client may default after taking the
payment in advance.)<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">b) Commodity Price Risk (at the time the goods are received the
price may be lower than the price that was originally expected).<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">c) Quality Risk/ Low investment Return or Loss (goods received
might not be of desired quality – unacceptable for the potential buyer)<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">d) Asset-Holding Risk / possibility of extra expenses on storage
and <i>takaful </i>(the bank might not be able to market the goods in time,
resulting in possible asset loss for the unsold goods and locking funds in the
goods until they are sold)<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">e) Asset-Replacement Risk (in case the bank has to purchase goods
from the market in <i>parallel salam </i>where the third party fails to supply
the specified goods under the parallel contract.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">f) Fiduciary Risk in the case of <i>parallel salam </i>(original <i>salam
</i>seller might not deliver).<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">Islamic banks need to take proper measures for mitigation of the
above risks. They should purchase only those goods which have good marketing
potential; take proper security and a performance bond; insert a penalty clause
in the contract as a deterrent against late delivery; obtain a binding promise
from the prospective buyers along with a sufficient amount of earnest money in
deposit; and fulfil the responsibility of <i>parallel salam-</i>purchase
similar goods from the market on spot to supply these to the buyer and recover
the loss, if any, from the seller in the original <i>salam</i>.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;"><br /></span></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg0qBfmkcQlxb_m_LLqw2Kz33H5xPpk1qtD2vwKwWn4FyQR3GcuSKHFfrcaCzn9nP3yTVoq1leF8mSGHra9okHIiG7L-moZAFC6CTduyQRV6YbE1DXYabv7b4_wpMCa676CHph-iNwCGnw/s1080/Parallel+Salam.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1080" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg0qBfmkcQlxb_m_LLqw2Kz33H5xPpk1qtD2vwKwWn4FyQR3GcuSKHFfrcaCzn9nP3yTVoq1leF8mSGHra9okHIiG7L-moZAFC6CTduyQRV6YbE1DXYabv7b4_wpMCa676CHph-iNwCGnw/w400-h400/Parallel+Salam.png" width="400" /></a></div><br /><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;"><br /></span><p></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;"><br /></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">Parallel <i>Salam </i>and Disposal of <i>Salam </i>Goods</span></b><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;"> – to <b>manage
and mitigate risk</b><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">For the disposal of goods purchased under <i>salam</i>, Islamic
banks have a number of options, including: <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">i) to enter into a parallel <i>salam </i>contract where the bank is
involved as a buyer on one side and as a seller on another side, <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">ii) an agency agreement with any third party or with the client
(seller) to sell the goods on behalf of the bank and / or <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">iii) a sale in the open market the bank itself by entering into a
promise with any third party or direct selling upon taking the delivery.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">Where the bank (as buyer) enters into a parallel <i>salam </i>contract
there cannot be any condition or linkage to the first <i>salam </i>contract. (<i>Parallel
Salam </i>is allowed with a third party only. The seller in the first contract
cannot be made purchaser in the parallel contract of salam, because it will be
a buy-back contract, which is not permissible in the <i>Shari’ah</i>). Each one
of the two contracts entered into by a bank should be independent of the other,
but the bank (as seller) can sell the goods on <i>parallel salam</i> on similar
conditions and specifications as previously purchased on the first <i>salam</i>
contract without making one contract dependent on the other. This arrangement cannot
be tied up in such a manner that the rights and obligations of one contract are
dependant on the rights and obligations of the parallel contract. The period of
parallel contract in the second transaction is usually shorter and the price
may be a higher than the price of the first <i>salam </i>transaction. The
difference between the two prices is the bank’s profit<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;"><br /></span></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="321" src="https://www.youtube.com/embed/aUxwczqugLs" width="534" youtube-src-id="aUxwczqugLs"></iframe></div><br /><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">The parallel contract arrangement may not be an attractive mode of
disposal of goods for banks, as the amount invested by the bank (the advance
payment of the price in the first <i>salam</i>) would be disinvested when the
buyer in the parallel contract made the advance payment to the bank for the
purchase of the goods under the parallel contract. Under an agency agreement,
the Islamic bank may appoint the seller its agent to sell the <i>salam </i>goods
on its behalf at a given price which would include the bank’s profit. Some
Islamic banks are, therefore, using <i>salam </i>for purchasing goods and
appointing the sellers as their agent for subsequently marketing the goods at a
price with a suitable profit margin for the bank. In the case of an agency, the
<i>salam </i>contract and the agency agreement should be separate and
independent of each other. The purchased goods cannot be sold back to the <i>salam
</i>seller, hence a parallel <i>salam</i> cannot be entered into with the
original seller in the <i>salam </i>contract as it would be considered as being
a ‘buy-back’, which is prohibited under the <i>Shari’ah </i>rules.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">In the third option, the Islamic bank (as buyer under <i>salam</i>)
may obtain a binding promise from a third party to purchase the goods from the
bank. This promise should be unilateral from the prospective buyer. The bank
(as buyer) will not have to pay the price in advance, as the prospective buyer
is merely making a promise and it is not an actual sale. However, the bank can
ask for earnest money (a security deposit as an act of good faith). As soon as
the bank purchases the goods, they will be sold to the third party at the
pre-agreed price, according to the terms of the promise. Banks may also wait
until receipt of the goods and sell them in the open market, but they will be
taking the asset-risk for the period the goods remain in the bank’s inventory.
It is important to note again that the <i>salam </i>goods cannot be sold back
to the original seller owing to the prohibition of the ‘buy-back’ arrangement.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;"><br /></span></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="315" src="https://www.youtube.com/embed/l3DTOV-Pn4A" width="456" youtube-src-id="l3DTOV-Pn4A"></iframe></div><br /><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;"><o:p> </o:p></span></p>Zia Ahmedhttp://www.blogger.com/profile/15251232944846705347noreply@blogger.com0tag:blogger.com,1999:blog-176427221984871817.post-82081513487449231692021-10-03T07:04:00.005-07:002021-10-03T07:04:36.824-07:00Premium Branding for New and Innovative Products<p> </p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Premium
Pricing Strategy<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Pricing is
a major element of marketing any product, and it is vitally important to set
the right price. A price that is too high or too low for the target market can
seriously affect sales. Premium pricing can use for several purposes. A premium
pricing strategy involves setting the price of a product higher than similar
products. This strategy is sometimes also called skim pricing because it is an
attempt to “skim the cream” off the top of the market. It is used to maximize profit
in areas where customers are happy to pay more, where there are no substitutes
for the product, where there are barriers to entering the market or when the
seller cannot save on costs by producing at a high volume. Premium pricing can
also be used to improve brand identity in a particular market. This is called
price-quality signaling, because the high price signals to consumers that the
product is high in quality. Competition<o:p></o:p></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEigoQkX1CVqqTWdIc1YnrSK1nZYnQjYNuLbgTjFhpD4MBBVopBne4kRwtFf28NTgC-ZXU5rAO7fi4BPoSPBmLvZtk8gDIvM8pxNKJ4wnJk09llgVptM3YKpBaASRZjtSt7cAjrxmkM6zVQ/s1080/Premium+Brand+.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1080" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEigoQkX1CVqqTWdIc1YnrSK1nZYnQjYNuLbgTjFhpD4MBBVopBne4kRwtFf28NTgC-ZXU5rAO7fi4BPoSPBmLvZtk8gDIvM8pxNKJ4wnJk09llgVptM3YKpBaASRZjtSt7cAjrxmkM6zVQ/w400-h400/Premium+Brand+.png" width="400" /></a></div><br /><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><br /></span><p></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><br /></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">BRAND
AWARENESS<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Some brands
can continue to charge a premium price because their entire brand image is
based around premium. Unique products usually have the best chance of
commanding premium prices.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">The first
step is to understand that in the so-called luxury market, there are three
possible strategies, which I named in my book as luxury, fashion and premium.
The difference between these three strategies is huge. It does not change much
in the eyes of most basic consumers, at least in the short-term. But when one
has to manage a brand, the difference is pivotal. In fact, if you decide to
implement a fashion or a premium strategy, the classical marketing styles works
pretty well. But if you decide to implement a luxury strategy, you need to
reconsider all the aspects of your marketing management.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><br /></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="317" src="https://www.youtube.com/embed/UNcwMw9iEt8" width="484" youtube-src-id="UNcwMw9iEt8"></iframe></div><br /><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">The luxury
strategy aims at creating the highest brand value and pricing power by
leveraging all intangible elements of singularity- i.e. time, heritage, country
of origin, craftsmanship, manmade, small series, prestigious clients, etc. The
premium strategy can be summarized as “pay more, get more.” Here the goal is to
prove -through comparisons and benchmarking- that this is the best value within
its category. Quality/price ratio is the motto. This strategy is, by essence,
comparative.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><br /></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjpI51yUu3V7acq7X2ZekbkJGMstrv91EWCd2fdfv9SbxS7cR-OcUdbbVckGcW0wzfHsc-uABIfW2VlQ3j_A-tVADCii8Fk_I15l9If0OT2yjtFxs21cpemD2-OtR9a-QEngHfteEvGJ2g/s1080/Perception+of+Value+%25281%2529.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1080" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjpI51yUu3V7acq7X2ZekbkJGMstrv91EWCd2fdfv9SbxS7cR-OcUdbbVckGcW0wzfHsc-uABIfW2VlQ3j_A-tVADCii8Fk_I15l9If0OT2yjtFxs21cpemD2-OtR9a-QEngHfteEvGJ2g/w400-h400/Perception+of+Value+%25281%2529.png" width="400" /></a></div><br /><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Here are
six factors that will influence your ability to establish and maintain premium
price position and reap the rewards:<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Become a
Premium Provider. Identify the features that would be considered high-end on
the value scale, and then highlight those crucial elements in your marketing.
Resist the urge to offer a basic service level or baseline product. Stick with
the premium level of service if you plan to maintain your premium pricing
strategy.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><br /></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><br /><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><br /></span></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="360" src="https://www.youtube.com/embed/iG9NBH7x-Uc" width="479" youtube-src-id="iG9NBH7x-Uc"></iframe></div><p></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Define Your
Value. Help your customers understand why your prices are higher. If you know
how competitors are undercutting your prices, and you feel the competitors'
lower cost equates to poorer quality or service, explain this difference. In
other words, don't hide your price; instead, explain your value to the
customer, and be prepared to demonstrate the ROI associated with your service
or product.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Go the
Extra Mile. You'd be surprised how many business owners declare they offer
superior service simply because their people are friendly. Successful companies
have more than friendly employees.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Don't
Sacrifice Price, Even When Times are Tough. Just explain why your product or
service is worth the investment, but be a little flexible for long-time
customers.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Don't Play
the Lowest Price Game. Weaker competitors are quick to cut prices to earn
business. Don't play their game.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Project
Financial Stability. A colleague told me about his expensive dilemma. He needed
to replace his entire home air conditioning system. He asked two local
companies for </span><span style="font-size: 12pt;">estimates.</span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12pt;"><br /></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjkdwC2OQWzxkFkBfT4IcsPTSVNocTLSaYARy2nzMRFrOSrwc7UZeufYxveXUerzH0eDJwXN9u3gUNjRa5UV_g0FI3vW4mDRQTJhx2wuXekJWAo_c3IJk93_Gcsat5lNDmd4PjyIX_gl8E/s1080/Unique+Products.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1080" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjkdwC2OQWzxkFkBfT4IcsPTSVNocTLSaYARy2nzMRFrOSrwc7UZeufYxveXUerzH0eDJwXN9u3gUNjRa5UV_g0FI3vW4mDRQTJhx2wuXekJWAo_c3IJk93_Gcsat5lNDmd4PjyIX_gl8E/w400-h400/Unique+Products.png" width="400" /></a></div><br /><span style="font-size: 12pt;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Challenging
a Timeless Tradition<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Ending
prices with the number nine is one of the oldest methods in the book, but does
it actually work? The answer is a resounding yes, according to research from
the journal Quantitative Marketing and Economics. Prices ending in nine were
able to outsell even lower prices for the same product.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Time Spent
vs. Money Saved<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Stanford
University’s Jennifer Aaker argues that in many product categories, customers
recall more positive memories when asked to remember time spent with the
product over the money<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">saved.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Different
Levels of Pricing<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Test #1<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Four out of
five people chose the more popular premium option.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Test #2<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">The cheap option was ignored and it upended the ratio of standard to
premium purchases.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">These
examples show just how important it is to test out different pricing brackets,
especially if you believe you may be undercharging. Some customers are always
going to want the most<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">expensive
option. Get smart with your pricing strategy. Great products and services are
priced on purpose. They have prices that develop over time and are guided by debate,
scrutiny, and, most importantly, feedback from paying customers.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Strategies
that help grow premium perceptions<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Commenting
on a recent survey that found 88 percent of U.S. consumers love store brands,
Pat Conroy, vice chairman at Deloitte LLP and U.S. Consumer Products leader,
stated that many name brands suffer "from a crisis of the similar,"
giving consumers no compelling reason to choose their product instead of a
store brand. He is right.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><o:p> </o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Build
perceptions of product superiority<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Innovation,
the type that produces a step change in product performance, is still the most
effective way to build competitive advantage. Tide Pods and Singapore Airlines
are good examples of brands that have used product innovation to improve
premium perceptions and justify prices. P&G's commitment to innovation paid
off in the U.S. with the introduction of Tide Pods—a three-in-one liquid tablet
that allowed the new product to gain market share at a significant price
premium.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Build
perceptions of value<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">By framing
perceptions of value premium, brands can gain competitive advantage over
cheaper brands provided the claim is defensible and not undermined by consumer
experience.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Build
premium credibility<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Irrespective
of how the redesign impacts flyers in-flight experience, Singapore Airlines
sends a clear signal that they perceive themselves as a luxury brand by teaming
up with BMW. In China, Häagen-Dazs presents a unique, indulgent, and adult ice
cream experience, primarily through its retail stores. It justifies a
significant price premium through locating those stores in upmarket areas,
offering unique desserts, and selling wedding cakes designed to appeal to
wealthy celebrities. For Johnnie Walker, special blends and gift packs offer
the chance to ask a higher price for their well-known brand. Mechanisms like
these are designed to build credibility around a brand's premium positioning,
making it easier for consumers to justify why they are paying a higher price
for the brand.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Advantages
of Premium Pricing<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">The following are advantages of using the premium pricing method:<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Entry
barrier. If a company invests heavily in its premium brands, it can be
extremely difficult for a competitor to offer a competing product at the same
price point without also investing a large amount in marketing.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">High profit
margin. There can be an unusually high gross margin associated with premium
pricing. However, a company engaging in this strategy must attain sufficient
volume to offset the hefty marketing costs associated with it.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span><o:p></o:p></p>Zia Ahmedhttp://www.blogger.com/profile/15251232944846705347noreply@blogger.com0tag:blogger.com,1999:blog-176427221984871817.post-46634778396425138492021-09-30T06:55:00.003-07:002021-09-30T06:55:27.534-07:00What is Mudarbah Finance <p> </p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b style="mso-bidi-font-weight: normal;"><i><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Mudarabah</span></i></b><b style="mso-bidi-font-weight: normal;"><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"> Financing in Islam<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><i><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Mudarabah</span></i></b><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">: <i>mudarabah </i>or partnership in the profits of capital and
labour, is a partnership in which one party is entitled to profit on account of
its capital while the other party is entitled to profit on account of its
labour. This is considered to be the purest form of Islamic financing, because
profits are shared in pre-agreed proportions and losses are shared in
proportion to the investment made by each investor. On loss, there is unanimity
among Muslim jurists on the principle that a party who has no capital invested
does not have to share the loss. <span style="mso-spacerun: yes;"> </span><i>Mudarabah
</i>is an important variant of <i>Shirkah </i>(partnership), in which a
financier as an investor (<i>rabbulmal</i>) or a group of investors provides
capital to an agent or manager (<i>mudarib</i>), who undertakes to do business
with the capital provided and the profit is shared according to the pre-agreed
proportions. The term “<i>Mudarabah</i>” is interchangeably used with <i>Qirad </i>and
<i>Muqaradah</i>.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><br /></span></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEio312TstfYgUyxstNl-VJP_oFil2aHqcCbfMjuMyCQ4tUp_lybTxZgAIrgR1iASqf2NTDhFK2BWwm0xvmhryW5739C_zFjzghyE-sqegD_z8fvJCOMPl7SZwuyWR6eKBsqrUeFcwqJgqE/s1080/Mudarbah.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1080" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEio312TstfYgUyxstNl-VJP_oFil2aHqcCbfMjuMyCQ4tUp_lybTxZgAIrgR1iASqf2NTDhFK2BWwm0xvmhryW5739C_zFjzghyE-sqegD_z8fvJCOMPl7SZwuyWR6eKBsqrUeFcwqJgqE/w400-h400/Mudarbah.png" width="400" /></a></div><br /><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Rules relating to <i>Mudarabah </i>Capital<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">The <i>rabbulmal </i>(the capital-provider or financier) is
responsible for providing the capital for the business enterprise and should
hand over the capital to the <i>mudarib</i> before the <i>mudarib </i>starts
the business. The <i>mudarib </i>may also employ his capital with the
permission of the original capital provider. All losses must be borne by the
capital-provider, in other words the financier.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><br /></span></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="333" src="https://www.youtube.com/embed/qCi-QKvgV3s" width="581" youtube-src-id="qCi-QKvgV3s"></iframe></div><br /><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Rules regarding to Profit and Loss<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Profit from the business under <i>mudarabah </i>is to be shared in
an agreed ratio. In <i>Mudarabah, </i>the payment of profit to the
capital-provider/financier cannot be in the form of a fixed amount or any
percentage of the capital employed. The risk for the investor is that any loss
is always exclusively borne by him. The risk for the <i>mudarib</i> is the loss
suffered by way of expended time and effort, for which the <i>mudarib </i>does not
get any remuneration on account of the loss in the business venture. Any ambiguity
or lack of clarity regarding capital or ratio of profit makes the <i>mudarabah</i>
contract invalid. The <i>rabbulmal </i>(the capital-provider) can contribute
his/her labour subject to the permission of the <i>mudarib</i>.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Both the parties of a <i>mudarabah </i>are at liberty to agree on
the proportion or ratio of profit-sharing between them with mutual consent.
They can agree on equal sharing or allocate different proportions. However, a
lump sum amount or profit/return on investment for any of the parties cannot be
agreed upon. The profit earned is to be divided in the strict proportion agreed
at the time of the contract. If loss occurs in some transactions and profit is
realised in some others, the profit can be used to offset the loss in the first
instance, then the balance, if any, can be distributed between the parties
according to the agreed ratio.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">The parties in <i>mudarabah </i>can agree with mutual consent that
in the event the profit is over a particular ceiling, then one of the parties
would take the additional profit. However, if the profit is below, or equal to,
the stipulated ceiling, then the distribution will be according to the agreed
ratio. The profits realised from the <i>mudarabah</i> business cannot be
finally distributed until all the expenses have been paid, in accordance with
custom and the original agreement.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><br /></span></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="326" src="https://www.youtube.com/embed/aUxwczqugLs" width="490" youtube-src-id="aUxwczqugLs"></iframe></div><br /><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Use of <i>Mudarabah </i>by Islamic Banks<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><i><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Mudarabah </span></i><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">is a viable basis for Islamic banking whereby an Islamic bank
plays the role of a financial intermediary. The arrangement can be made
adopting a two-tier mudarabah agreement. The first tier of the <i>mudarabah </i>agreement
is between the bank and the depositors, who agree to put their money in the
bank’s investment account and to share the profit with it. In this case, the
depositors are the capital providers (<i>rabbulmal</i>) and the bank functions
as a manager of the funds. The second tier of the <i>mudarabah </i>agreement is
between the bank and the entrepreneur, who seeks financing from the bank; they
agree that the profits accruing from the business will be shared between them
and the bank in an agreed proportion, but any loss will be borne by the
financier only (the bank). In this instance; the bank functions as the provider
of the capital and financier while the entrepreneur works as a manager. In cases
where there is more than one financier of the same project (one project jointly
financed by several banks), profits are to be shared in a mutually agreed
proportion previously determined, but any loss is to be shared in the
proportion in which the different financiers have invested the capital.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><i><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Mudarabah </span></i><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">is the basis of Islamic banking in the sense that funds are
mobilised by banking and non-banking financial institutions mainly under this
arrangement. Islamic banks, other financial institutions, a mutual fund or a
company can also mobilize funds for investment by issuing negotiable <i>Mudarabah
</i>Certificates, representing ownership in the funds collected and providing for
the profit earned from the investment of those funds to be distributed on <i>mudarabah
</i>principles. The investment can be related to the financing of specific
projects for a fixed duration. As defined by the Islamic Fiqh Academy of the
OIC, <i>Mudarabah </i>Certificates are investment instruments, which mobilise
the <i>mudarabah </i>capital by floating certificates as evidence of capital
ownership, on the basis of shares of equal value, registered in the name of
their owners, as joint owners of shares in the venture capital or whatever shape
it may take, in proportion to the each one’s share therein. If the funds so
mobilised are also invested on the basis of <i>mudarabah</i>, it will be arrangement
of a two-tier <i>mudarabah </i>and the investors would get a variable return or
bear loss according to the result of the economic activity conducted by the
institution.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">If any individual or institution serving as <i>mudarib </i>is
doing business on the basis of trade and <i>ijarah-</i>(leasing)-based modes,
the investors / financiers receive a fixed or quasi-fixed return to be
distributed on <i>mudarabah </i>principles. A <i>Mudarabah </i>Sukuk (bond) can
also be issued on the <i>mudarabah </i>principle. On the assets side, <i>mudarabah
</i>is best suited for project-and trade-financing. Islamic banks can undertake
project financing through a <i>mudarabah </i>singly or through syndication with
other banks. It can be used for financing import trade on a single transaction
or a consignment basis in the case of a firm order and a letter of credit without
margin, where the whole investment has to be made by the bank. Its use is also
possible for running businesses and for the purpose of securitisation. In a
twotier <i>mudarabah </i>arrangement, the bank acts as a <i>mudarib </i>(agent
of manager) for the savers / investors and as financier for the entrepreneurs.
If the bank employs the client’s deposits without committing any of its own, it
acts as <i>mudarib </i>for the client until the conclusion of the business
transaction for which the funds were invested. The bank receives an agreed
share of the profit for services rendered. Banks provide funds on the basis of <i>mudarabah
</i>usually for single transactions or for fixed durations. Similarly, <i>mudarabah
</i>can be for the whole business of a company or for any specific project
whose expenses and revenues can be segregated from the main business. The
accounts of <i>mudarabah </i>projects are periodically audited in order to
determine the distributable profit, which is arrived at after taking into
account all expenses. The liability of the Islamic bank under <i>mudarabah </i>is
limited to the amount of capital provided by the bank and the creditors of a <i>mudarabah
</i>have no recourse to other assets of the bank.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">In cross-border financings, exchange risk, political risk and the
stability of the country concerned have to be taken into consideration before
signing a financing contract on the basis of <i>mudaraba</i>h. The bank may
also closely monitor the performance of the <i>mudarib </i>during
implementation of the project in order to ensure that there are no completion
delays, cost overrun, material pilferage, etc. If the financing contract permits,
the bank may appoint its representative to the Boards of the financed institution.<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Calibri",sans-serif; font-size: 10.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><o:p> </o:p></span></p>Zia Ahmedhttp://www.blogger.com/profile/15251232944846705347noreply@blogger.com0tag:blogger.com,1999:blog-176427221984871817.post-13530465682546583402021-09-30T04:18:00.005-07:002021-09-30T04:18:24.775-07:00What is Musharkah Finance<p> </p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="color: blue; font-family: "Verdana",sans-serif; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;">The
Main Features Of </span></i></b><b style="mso-bidi-font-weight: normal;"><i><span style="color: blue; font-family: "Verdana",sans-serif; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial-ItalicMT;">Musharakah</span></i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="color: blue; font-family: "Verdana",sans-serif; font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Arial;"><o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">Musharakah </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">is a term
used by contemporary Muslim jurists for both broad and limited connotations. It
is a term frequently referred to in the context of Islamic modes of financing,
but is a little more limited than the term </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">shirkah, </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">which is
more commonly used in Islamic jurisprudence. In traditional books, joint
businesses have been discussed mainly under the heading of </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">shirkah,
</span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">which is regarded as a set of broad principles that can accommodate many
forms of joint business. Contemporary Muslim jurists use the term </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">musharakah
</span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">in a limited sense to mean a contractual partnership in which all
partners provide funds or capital, through not necessarily equally. They have
the right to work for the joint venture, conduct it jointly and agree to share
the profit on a pre-determined ratio and to bear the loss, if any, to the
extent of the investment of each partner. In a specific sense, it is an amalgam
of </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">musharakah </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">and </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">Mudarabah, </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">where a </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">mudarib
</span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">(the entrepreneur partaking in a </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">mudarabah</span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">), as well
as the financier partner, also invests in the capital. This arrangement is also
permissible, according to Muslim jurists. Another form of </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">musharakah</span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">, developed
more recently, is</span></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;"><br /></span></i></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><i></i></p><div class="separator" style="clear: both; text-align: center;"><i><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgHhCLbrmUlkKNUjmdpjuKEQT7ghXn5ldLvovAx9cWlKFD-GLphFuHs4LeKw1unrUE5byruXkvsif4OcOxcjU_WdWPDceokSjKBImwWIYtYpDCOzTDEHknOcypK4dbpldqpDC5j201rzxA/s1080/Musharkah+Finance.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1080" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgHhCLbrmUlkKNUjmdpjuKEQT7ghXn5ldLvovAx9cWlKFD-GLphFuHs4LeKw1unrUE5byruXkvsif4OcOxcjU_WdWPDceokSjKBImwWIYtYpDCOzTDEHknOcypK4dbpldqpDC5j201rzxA/w400-h400/Musharkah+Finance.png" width="400" /></a></i></div><i><br /><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;"><br /></span></i><p></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;"><br /></span></i></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;"></span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">'Diminishing Musharakah</span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">'.
According to this concept, a financier and his client participate either in the
joint ownership of a property, or piece of equipment, or in a joint commercial
enterprise. The share of the financier is further divided into a number of
units and it is understood that the client will purchase the units of the share
of the financier, one by one, periodically, until all the units of the
financier have been purchased by the client so as to make the client the sole
owner of the property or the commercial enterprise. </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">'Diminishing
Musharakah</span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">' will be discussed more fully in a separate lesson.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><i><span style="color: blue; font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">Musharakah<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">Musharakah </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">is a
relationship that is established between parties by a mutual contract, so all
the necessary ingredients of a valid contract must be present here also. It is
the modern term for </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">Shirkah Al Amwal </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">structured
on the basis of “</span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">inan</span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">”. In addition, there are
number of conditions that are special to the contract of </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">musharakah</span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">. </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">Musharakah
</span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">is not a binding contract and any partner may unilaterally terminate it
unless provided otherwise in the contract.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">The key features of </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">musharakah
</span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">may be summed up as below:<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">(a) All the partners provide capital<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">(b) Profit sharing may be based on capital
contribution, or negotiable, or depending on the work performed by a partner<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">(c) Loss will be shared only according to capital
contribution<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">(d) Management by all the partners is not a
requirement<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">(e) </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">Musharakah </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">is not a
binding contract<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;"><br /></span></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="322" src="https://www.youtube.com/embed/KBt8oOt9Xlk" width="443" youtube-src-id="KBt8oOt9Xlk"></iframe></div><br /><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="color: blue; font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial; mso-bidi-font-style: italic;">Musharakah </span></b><b><span style="color: blue; font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">Agreements
by Islamic banks<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">An Islamic bank can finance industry, trade, real
estate, contracting and almost all legal enterprises through partnership. </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">Musharakah
</span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">is arranged on the basis of a written agreement between the bank and the
client for a specific transaction, consignment, or project or for a fixed
period of time that can be renewed. They can also enter into </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">musharakah
</span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">with interest-based banks to carry out operations acceptable in the </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">Shari´ah,
</span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">provided it is ensured that the rules and principles of the </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">Shari´ah
</span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">are observed during the operation of the partnership. A partnership
business or its assets can also be securitised, giving </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">Musharakah
</span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">Certificates or </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">Sukuk </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">(bonds) to the investors.
Clients desiring to raise funds for investment in a large project can use </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">musharakah
</span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">and offer to sell </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">Musharakah </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">Certificates
in the market. The </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">Musharakah </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">Certificate</span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;"> </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">represents
the direct pro-rata ownership of the holder in the assets of the project. If</span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;"> </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">all the
assets of the project are in liquid form, the certificate will represent a
certain</span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;"> </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">proportion of money at face value owned by the
project; in such cases the</span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;"> Musharakah </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">Certificates
cannot be sold in the market except at their face value, as</span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;"> </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">an increase
would fall under the prohibition of </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">riba </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">under the </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">Shari’ah</span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">. However</span><span style="font-family: "Verdana",sans-serif;">, </span><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">after</span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;"> </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">the project
is started and has acquired non-liquid assets representing tangible</span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;"> </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">assets, these
certificates can be traded in the secondary market and above the par</span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;"> </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">value. It
is allowed under the </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">Shari’ah, </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">as the
subject matter of the sale is a share in</span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;"> </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">the
tangible assets and not in money alone; therefore the certificate may be taken
as</span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;"> </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">any other commodity which can be sold at a profit
or at a loss. In the case of a completed project, the business will involve a
combination of tangible assets and</span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;"> </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">non-liquid assets arising from the sale in business
transactions. In such cases, the</span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;"> </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">Muslim jurists generally find it acceptable to
trade in </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">Musharakah </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">Certificates, where</span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;"> </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">the </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">musharakah
</span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">portfolio should not comprise more than 50% in the form of nonliquid</span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;"> </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">assets.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;"><br /></span></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="300" src="https://www.youtube.com/embed/aUxwczqugLs" width="488" youtube-src-id="aUxwczqugLs"></iframe></div><br /><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">Profit projections can play an important role in
the </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">musharakah </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">operations. The client is required to provide the
bank periodically with the results of operations of the business. Disputes can
be resolved through a Review Committee comprising persons to be named in the </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">musharakah
</span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">agreement or separately with the mutual understanding of the parties. </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">Musharakah</span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">-based
applications and instruments will be discussed in detail in the Modules on
Islamic Banking Operations and Islamic Financial Markets.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: "Verdana",sans-serif;"><o:p> </o:p></span></p>Zia Ahmedhttp://www.blogger.com/profile/15251232944846705347noreply@blogger.com0tag:blogger.com,1999:blog-176427221984871817.post-58280443102154699372021-09-29T06:35:00.000-07:002021-09-29T06:35:06.416-07:00What is Diminishing Musyarakah/ Musharkah<p> </p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-family: "Calibri",sans-serif; font-size: 14.0pt; line-height: 150%;">Diminishing <i>Musyarakah/ Musharkah </i></span></b><b><i><span style="font-family: "Calibri",sans-serif; font-size: 20.0pt; line-height: 150%;"><o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">Diminishing <i>musyarakah </i>or <i>musyarakah mutanaiqisah </i>is
another form of <i>musyarakah </i>which was developed recently by the scholars.
It is a <i>musyarakah </i>in which the Islamic bank agrees to transfer
gradually to the other partner its (the Islamic bank’s) share in the <i>musyarakah,
</i>so that the Islamic bank’s share declines and the other partner’s share
increases until the latter becomes the sole proprietor of the venture.
According to this concept, a financier and his client participate either in the
joint ownership of a property or an equipment, or in a joint commercial
enterprise. The share of the financier is further divided into a number of
units and it is understood that the client will purchase the units of the share
of the financier one by one periodically, thus increasing his own share until
all the units of the financier are purchased by him so as to make him the sole
owner of the property or the commercial enterprise.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;"><br /></span></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgia7zCK7yH3CqZrOPIVUk1mdWBEIJSVnKLKorlkhawxvcZoiUqBfCdyM27BFG_EmDjxd8x46CPjHwIjzrF64PbExiKn-6Z2rdvK5Doss5MHIq0EregcRwYfmECeNBqEyc9YwHsalhFzOU/s1080/Diminishing+Musharkah.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1080" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgia7zCK7yH3CqZrOPIVUk1mdWBEIJSVnKLKorlkhawxvcZoiUqBfCdyM27BFG_EmDjxd8x46CPjHwIjzrF64PbExiKn-6Z2rdvK5Doss5MHIq0EregcRwYfmECeNBqEyc9YwHsalhFzOU/w400-h400/Diminishing+Musharkah.png" width="400" /></a></div><br /><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;"><br /></span><p></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;"><br /></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">Diminishing <i>musyarakah </i>has taken different forms in
different transactions. Some examples are given below:<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">A. It has been used mostly in house financing. The client wants to
purchase a house for which he does not have adequate funds. He approaches the
financier who agrees to participate with him in purchasing the required house.
20 per cent of the price is paid by the client and 80 per cent of the price by
the financier. Thus the financier owns 80 per cent of the house while the
client owns 20 per cent. After purchasing the property jointly, the client uses
the house for his residential requirement and pays rent to the joint owner for
using their ownership in the property.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">At the same time, the share of the financier is further divided in
eight equal units, each unit representing 10 per cent ownership of the house.
The client promises to the financier that he will purchase one unit after three
months. Accordingly, after the first term of three months, he purchases one
unit of the share of the financier by paying 1/10th of the price of the house.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;"><br /></span></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="319" src="https://www.youtube.com/embed/KBt8oOt9Xlk" width="481" youtube-src-id="KBt8oOt9Xlk"></iframe></div><br /><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">It reduces the share of the financier from 80 per cent to 70 per
cent. Hence, the rent payable to the financier is also reduced to that extent.
At the end of the second term, he purchases another unit increasing his share
in the property to 40 per cent and reducing the share of the financier to 60
per cent and consequently reducing the rent by that proportion.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">This process goes on in the same fashion until after the end of two
years, the client purchases the whole share of the financier reducing the share
of the financier to ‘zero’ and increasing his own share to 100 per cent. This
arrangement, among other forms of diminishing partnership, allows the financier
to claim rent according to his proportion of ownership in the property and at
the same time allows him periodical returns of a part of his principal through
purchases of the units of his share. B. ‘A’ wants to purchase a taxi to use it
for offering transport services to passengers and to earn income through fares
received from them, but he is short of funds. ‘B’ agrees to participate in the
purchase of the taxi. Therefore, both of them purchase a taxi jointly; 80 per
cent of the price is paid by ‘B’ and 20 per cent is paid by ‘A’. After the taxi
is purchased, it is employed to provide transport the passengers whereby the
net income of 1000 ringgit is earned on a daily basis. Since ‘B’ has 80 per
cent share in the taxi it is agreed that 80 per cent of the fare will be given
to him and the remaining 20 per cent will be retained by ‘A’ who has a 20 per
cent share in the taxi. It means that 800 ringgit is earned by ‘B’ and 200
ringgit by ‘A’ on a daily basis. At the same time the share of ‘B’ is further
divided into eight units. After three months ‘A’ purchases one unit from the
share of ‘B’. Consequently the share of ‘B’ is reduced to 70 per cent and the
share of ‘A’ is increased to 30 per cent, i.e. from that date ‘A’ will be
entitled to 300 ringgit from the daily income of the taxi and ‘B’ will earn 700
ringgit. This process will go on until after the expiry of two years, whereby
the whole taxi will be owned by ‘A’ and ‘B’ will take back his original
investment along with income distributed to him as aforesaid.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;"><br /></span></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="312" src="https://www.youtube.com/embed/aUxwczqugLs" width="482" youtube-src-id="aUxwczqugLs"></iframe></div><br /><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">Both the Buyer and the Bank will each contribute towards the
purchase of the home. For example, the Bank may contribute 90% and the Buyer
10% of the purchase price. Over a period of up to 25 years, the Buyer will make
monthly purchase installments through which the Bank will sell its share (90%)
of the home to buyer. With each payment installment, the Bank's share in the
property diminishes while the Buyer’s share correspondingly increases. While
the purchase installments are being made, the Bank will charge the Buyer rent
for the use of its share of the property, the rent being calculated according
to the respective number of shares owned.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial",sans-serif; mso-ascii-theme-font: minor-bidi; mso-bidi-theme-font: minor-bidi; mso-hansi-theme-font: minor-bidi;">Many see this as little different from a conventional mortgage,
because, under both methods, monthly payments are made which may be similar in
amount. However, unlike a conventional mortgage, where money is lent to help
with the purchase of a property, the Bank makes its profit through the
property's physical use via buyer occupation as a tenant. This is one of the
fundamentals of Islamic finance whereby you can charge for the use of something
physical, like a property, but you cannot charge for the use of money, because
this is interest. The relationship between buyer and the Bank is also quite
different.<o:p></o:p></span></p>Zia Ahmedhttp://www.blogger.com/profile/15251232944846705347noreply@blogger.com0tag:blogger.com,1999:blog-176427221984871817.post-71319299748188331402021-09-13T06:26:00.005-07:002021-09-13T06:26:55.270-07:00E-commerce Sales Strategy <p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgFSIyP9BBFLYNpK0u8nqD3HbBUiw-4J1CKs4uynfkIezMCZTO19jYBCHeZx0RBslnKJZ0RNhp7aZiBvNGelENm2uW5606zzKTdOUUkrSl3GOqJnf-Uo79v1fdhDbe0m6RgZXhcoxlSZWg/s1500/Sales+Strategy.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="500" data-original-width="1500" height="134" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgFSIyP9BBFLYNpK0u8nqD3HbBUiw-4J1CKs4uynfkIezMCZTO19jYBCHeZx0RBslnKJZ0RNhp7aZiBvNGelENm2uW5606zzKTdOUUkrSl3GOqJnf-Uo79v1fdhDbe0m6RgZXhcoxlSZWg/w400-h134/Sales+Strategy.png" width="400" /></a></div><br /><p></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><o:p> </o:p></span></p>
<h2 style="margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; mso-list: none; text-indent: 0in;"><a name="_Toc3660355"><span style="font-family: "Calibri",sans-serif; font-style: normal; line-height: 115%; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 14.0pt; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Sales Strategy</span></a><span style="font-family: "Calibri",sans-serif; font-style: normal; line-height: 115%; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 14.0pt; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></h2>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">1.
Micro-Target an Online Audience</span></b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">. E-commerce is basically about establishing a “territory”: defining
and designing a site to reach an audience with a common interest or
characteristic. Whatever your product or service, define your company’s niche
markets that you can penetrate online with specialized offerings.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">2.
Personalize. </span></b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Site
visitors are demanding one-of-a-kind experiences that cater to their needs and
interests. Technology is available, even to smaller players, to capture individual
shoppers’ interests and preferences and generate a product selection and
shopping experience led by individualized promotions tailored to them.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">3. Create
Content to Build Stickiness. </span></b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Winning e-commerce deploys crowd-sourced content to make a site “sticky”
for potential buyers. Amazon attracted millions of consumers by encouraging
them to share their opinions of items like books and CDs. What is your strategy
to help potential customers for your products or services find you via Google?
Use keywords and meta tags to raise your ranking in search results.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="color: black; font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">4.
Tailor the Browsing Experience to Target Segments. </span></b><span style="color: black; font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Brand-appropriate site design and
well-structured navigation remain key ingredients for attracting an audience
and getting them to come back. Provide an enticing browsing experience across
online platforms. If you want to sell backpacks to college students, for
example, use vibrant colors with a flashy design to evoke a sense of youth and
adventure.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="color: black; font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">5.
Integrate Across Channels. </span></b><span style="color: black; font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Create
multi-channel offerings, enabling your consumers to experience your brand
consistently, whatever their shopping method of choice. But be sure that
products you are selling via different channels are sufficiently differentiated
to account for price differences.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="color: black; font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">6.
Invest in Mobile. </span></b><span style="color: black; font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Mobile
commerce is growing at a rate of over 130 percent annually. If you lack a
robust mobile commerce platform, you will see a dramatic drop off in revenue
over the next several years. To stay competitive, you need to offer
mobile-accessible services such as delivery status, real-time notifications,
click-to-call, maps, and product information.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="color: black; font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">7.
Tap into Logistics. </span></b><span style="color: black; font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">To
accommodate growth, you may need to tap the capabilities of third party
logistics providers (3PLs) to manage a high volume of complex orders. Reverse
logistics, the ability to handle returns and exchanges quickly and
economically, is becoming a key differentiator. Same-day delivery and
innovative fulfillment networks can be competitive advantages.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="color: black; font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><br /></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="322" src="https://www.youtube.com/embed/Sw7eLO1Etj8" width="463" youtube-src-id="Sw7eLO1Etj8"></iframe></div><br /><span style="color: black; font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="color: black; font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">8.
Consider Subscription Commerce. </span></b><span style="color: black; font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Subscription commerce takes several forms. In the
replenishment model, a commodity item is sent to the customer every month. The
discovery model is more promising. It offers a subscription to a curated
experience that delivers new, hard-to-find, or customized items periodically to
the customer’s doorstep.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="color: black; font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">9.
Bypass the Middlemen. </span></b><span style="color: black; font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">The
Internet is enabling small companies to reach lots of consumers quickly.
Manufacturers, including </span><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">factories
in China<span style="color: black;">, are increasingly willing to work with small
brands. They have discovered that small brands are more likely to introduce new
products to market because they are less constrained by shelf space limitations
and complex supply chains.<o:p></o:p></span></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="color: black; font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">10.
Offer a Seamless Experience Across Channels. </span></b><span style="color: black; font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Your sales will grow if you ensure that product
availability, promotional strategies, and brand experience are consistent
across all channels -- whether online, in-store, or on a mobile device.
Implement cloud-based supply chain technology to gain visibility into your
performance across all channels.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="color: black; font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">11.
Curate a Proprietary Selection. </span></b><span style="color: black; font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Proprietary selection is a strategy that focuses on
“curating” a narrow and deep assortment of products in a particular segment.
These sites make merchandise feel exclusive due to the depth and originality of
the assortment, the difficulty in finding the products elsewhere, and the power
of customer communities.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="color: black; font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">12.
Sell Internet-Only Merchandise. </span></b><span style="color: black; font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">This is a strategy that builds an exclusive brand –
with ecommerce as the core distribution channel. By offering goods that are not
available elsewhere and selling them directly to the consumer online, you
maintain much greater control over your margins.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="color: black; font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><br /></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="320" src="https://www.youtube.com/embed/rmafqlrOyLM" width="481" youtube-src-id="rmafqlrOyLM"></iframe></div><br /><span style="color: black; font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt;"><b><span style="color: black; font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">3 Ecommerce Strategies to Increase
Online Sales & Repeat Business<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">1.
Excellent Customer Service<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Providing
your customers with service that goes above and beyond is essential—you must
exceed the expectations of your visitors. When Zappos first launched, it was a
brand unfamiliar to the average consumer. After driving visitors to their site
through traditional marketing efforts, they went out of their way to show the
visitor just how dedicated they were to ensuring incredible customer service,
using text in bold letters that prominently represented their policies. As
shown above, Zappos highlights their major selling points—fast and free
shipping, and how easy it is to return a product for free if the customer isn’t
100% satisfied with their purchase. Zappos proved that with superb customer
service, a company could be successful, and this core value that they were built
on is still what they stand behind today. When it comes to trusting a business
online, returning to that site, and even recommending that site to peers,
studies have shown that customer service is the first and foremost factor.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">2. An
Easy-To-Use & Clean Website <o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">I mention
this time and time again when talking about website design because it’s not
something that should be taken lightly—your website must be responsive. A
responsive design ensures that your site renders appropriately on all devices
and platforms. Without this type of design, you’re likely to experience a high
bounce rate due to poor usability when customers access your site from their
mobile devices. Whether it’s excessive zooming in or zooming out, button sizes
that aren’t appropriate for the screen, or other rendering issues, this can be
detrimental to the user experience. In order to be strategic when reaching your
customers, it’s critical that your site be optimized for whatever device they
may be using.<b><o:p></o:p></b></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">3.
Understand Your Customers & Market to Them Accordingly<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Knowing who
your customers are and following up with them appropriately is important. Most
companies don’t truly know their customers, and fail to track which are
frequent purchasers and which are one-time buyers, along with other insights
related to purchase behavior. Existing customers shouldn’t all be marketed to
in the exact same way. Marketing tactics should be used that reflect individual
purchasing patterns based on historical onsite behaviors. If you have loyal
customers that make purchases more regularly than the average customer does,
serve them with special promotions or exclusive offers. Going out of your way
to show that you value your customers is crucial. Take the time to understand
who is purchasing and what segment they fall into. Perhaps one customer is
ideal for a certain product line based on past behavior, or maybe they purchase
the same product time and time again—whatever the behavior, implement follow-up
marketing tactics that reflect this understanding. Your existing customers are
the lowest cost-per-acquisition (CPA) for new sales. You spend money driving
new leads to your site, so when you acquire a customer, you want to retain
them. Marketing tactics should reflect your understanding of particular
segments within your audience and convey how much you value them as customers.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">A Strategic
Approach to Improving Ecommerce Business<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">For any
brand within the ecommerce sector, generating online sales and maintaining a
loyal customer base can be difficult. Without the support of strong customer
service, diligent marketing tactics that are tailored to individuals, and a
user-friendly website design, accomplishing business goals is near impossible.
Keeping your customers and their needs as the primary focus of all<o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>Zia Ahmedhttp://www.blogger.com/profile/15251232944846705347noreply@blogger.com10tag:blogger.com,1999:blog-176427221984871817.post-72603114457014280542021-09-09T07:43:00.004-07:002021-09-09T07:43:38.798-07:00Customer Service and Communication is Key to Success of Online Business<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjR8bUOGWkrGh4hboMdMn0NyBuLDy6_ekPE9N92B8umWRCLSQ-fssmGgkLXznJNEb61dENGuoIUEk1ETOSUkAtNz6vhCe_AQf2iupPAODwOzDXyyNQHNghFxldVM68GLufOAcg_94e8mQ8/s940/Communication+.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="788" data-original-width="940" height="335" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjR8bUOGWkrGh4hboMdMn0NyBuLDy6_ekPE9N92B8umWRCLSQ-fssmGgkLXznJNEb61dENGuoIUEk1ETOSUkAtNz6vhCe_AQf2iupPAODwOzDXyyNQHNghFxldVM68GLufOAcg_94e8mQ8/w400-h335/Communication+.png" width="400" /></a></div><br /><p></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">5 Ways to
Take Charge of Your Ecommerce Customer Service<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Providing
exceptional customer service is an essential part of every ecommerce business.<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Let’s
answer the call!<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">The
Importance of Multi-Channel Customer Service<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">It’s
important to understand that providing an exceptional service experience in a
timely, professional manner is critical to the success of your business long
term. Multi-channel customer service is a strategic way to manage all customer
related questions about your business. You can take advantage of email, social
media, phones and many other platforms to do this.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">By taking
advantage of different tools, you can make sure that you’re able to cover all
of your bases through multi-channel customer service.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">In this
post we’ll go over a few different channels interact with your customers. Not
all are necessary when just starting out as a small ecommerce store, but it’s
important to know which ones are available should you look to expand your
support channels with your business. <o:p></o:p></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><br /></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="324" src="https://www.youtube.com/embed/rmafqlrOyLM" width="481" youtube-src-id="rmafqlrOyLM"></iframe></div><br /><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Here’s what
we’ll take a look at today:</span><span style="mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"> </span><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><o:p></o:p></span></p>
<p class="MsoListParagraphCxSpFirst" style="line-height: normal; margin-bottom: 6.0pt; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-autospace: none; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-style: italic; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span dir="LTR"></span><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Email<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: 6.0pt; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-autospace: none; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-style: italic; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span dir="LTR"></span><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Social Media<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: 6.0pt; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-autospace: none; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-style: italic; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span dir="LTR"></span><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Live Chat<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: 6.0pt; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-autospace: none; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-style: italic; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span dir="LTR"></span><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Helpdesk<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpLast" style="line-height: normal; margin-bottom: 6.0pt; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-autospace: none; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-style: italic; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span dir="LTR"></span><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Phone Support<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Our main
goal with using these different channels is to be able to deliver to our
customers in hopes that they’ll return as a repeat buyer, or share their
experiences with friends, family and social networks.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">What is a
WOW Experience?<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">1. Use
E-Mail Support as a Simple Form of Contact<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Providing
an email contact for your customers is the easiest way to get started. Often if
you’re dealing with a few requests per day, it can be tough to work with
threaded conversations, and you may forget to respond to a customer’s question.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><br /></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghq1ZBcQYZr4DhJHf1m1Kwcz2AxW-2kQT8yuCrnrjLDkMHB_gCFubyz4nobkuTTk_P595CrNa4KIleREwNv-gwo-6ATYgG1ODrOIsp0g-xzbnznSgNQpCpcdDONUp4ua9fWFp1PJDWstI/s940/Social+Media+1.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="788" data-original-width="940" height="335" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghq1ZBcQYZr4DhJHf1m1Kwcz2AxW-2kQT8yuCrnrjLDkMHB_gCFubyz4nobkuTTk_P595CrNa4KIleREwNv-gwo-6ATYgG1ODrOIsp0g-xzbnznSgNQpCpcdDONUp4ua9fWFp1PJDWstI/w400-h335/Social+Media+1.png" width="400" /></a></div><br /><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Delivering
a WOW experience via email: </span></b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">make it easy for your customers to contact you by adding a contact page
to your store. Be sure to have a separate email account for support related
requests.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">2.
Communicate with Customers on Social Media<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">It offers a
form of interaction with customers who are either asking about your product or
business.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Of all of
the different forms of social media, one of the most effective forms of
providing social media support is through Twitter.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Delivering
a WOW experience on Twitter: </span></b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">be as active and responsive as you can across all of your social media
accounts. Make an effort to answer any questions in under an hour.</span><span style="mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"> </span><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">3.
Instantly Communicate with Customers Using Live Chat Services<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Adding live
chat functionality to your ecommerce store is a great way to let your customers
get in touch with your team. If you can, always have someone available to
answer any immediate questions by being online during regular office hours.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Delivering
a WOW experience on live chat: </span></b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">try and find a service that lets you be mobile and still answer live
questions. If that’s not an option, get started with a live chat platform that
doubles as a contact form on your storefront so no requests are missed.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">4. Use a
Helpdesk Center as a Community FAQ<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Having an
online helpdesk where your customers can go to see commonly asked questions can
be extremely helpful to you as a ecommerce store owner. Not only will it answer
the customers question(s) quickly, but it will also help to mitigate support
debt.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Delivering
a WOW experience with a Helpdesk: </span></b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">build up an online portal that acts as a forum, contact area, and
frequently asked questions page to help mitigate support debt.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">5. Take
Customer Calls with Inbound Phone Support There are a lot of great advantages
to offering quality, personal phone support:<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">It’s a
great way to learn: </span></b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Especially
early on in a new business, there’s no better way to understand your customers
than by talking to them directly. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Faster
service: </span></b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Few things resolve
an issue or get a question answered faster than a phone call. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Easier to
build rapport: </span></b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Talking
directly with a person allows you to build a rapport and then turn a potential
lead into a life-long customer.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Builds
trust for high-priced items: </span></b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Selling $4,000 diamond-studded fingernail clippers? You’d better have a
phone number! The more expensive the items, the more likely your customers will
want to talk to you before pulling the trigger. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Delivering
a WOW experience over the phone: </span></b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">set designated office hours that customers can reach you for a phone
call. If you can, try finding a service provider that acts as a call forwarding
and voicemail provider as well.</span><span style="mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"> </span><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><o:p> </o:p></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"></span></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgXFhekt-cOom4A8mbfz96lGwdAB5OLz5q207FI7cQgZJx5XqMNc2XzLJd7jbXxqGK1C7KnYCYb64qdBWcvpXE5_PlAtOfw3GkWMLs5c1yOBsg_cKaw7JrBMl8gp4Tbrjt1sowBJA5HBaY/s940/wow+experience.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="788" data-original-width="940" height="335" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgXFhekt-cOom4A8mbfz96lGwdAB5OLz5q207FI7cQgZJx5XqMNc2XzLJd7jbXxqGK1C7KnYCYb64qdBWcvpXE5_PlAtOfw3GkWMLs5c1yOBsg_cKaw7JrBMl8gp4Tbrjt1sowBJA5HBaY/w400-h335/wow+experience.png" width="400" /></a></div><br /><o:p><br /></o:p><p></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Advertising and Promotion: Discuss the channels
used to reach out to customers <o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Social
Media – Building Success Story<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Initial
Promotion<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">The initial
launch is a very critical time. The opening of the website and the launch of
the services need to be done with a loud sound. With web and app based
services. There are certain tools and platform which needs to be taken into
consideration. Social Media plays a key role in performing the launch of the
services and getting in likes, hits, viewer, followers and last but not the
least THE CUSTOMERS.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><br /></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="318" src="https://www.youtube.com/embed/24fApyzf7Ww" width="454" youtube-src-id="24fApyzf7Ww"></iframe></div><br /><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">The TARGET<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">And further
20% of which are expected to be our initial clientele that will go ahead by
shopping from the website.</span><span style="mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"> </span><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">• <b><span style="mso-bidi-font-style: italic;">FB - Promotions<o:p></o:p></span></b></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">The
FaceBook (FB) promotion is an essential medium for attracting buyers as it has
a huge global presence is linked to various other mediums of marketing as well.
Creation of page and account on Instagram is an essential feature to be used.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">• <span style="mso-bidi-font-style: italic;">Key promotion strategy for FB<o:p></o:p></span></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">• <span style="mso-bidi-font-style: italic;">Facebook fan page set up and design<o:p></o:p></span></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">• <span style="mso-bidi-font-style: italic;">Targeted audience acceleration strategies<o:p></o:p></span></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">• <span style="mso-bidi-font-style: italic;">Content generation and moderation<o:p></o:p></span></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">• <span style="mso-bidi-font-style: italic;">Regular reporting on all KPIs<o:p></o:p></span></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">• <span style="mso-bidi-font-style: italic;">Facebook Advertising Management<o:p></o:p></span></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">• <span style="mso-bidi-font-style: italic;">An Initial budget for the First month is estimated to be $12,510. The
split for which is as follows:<o:p></o:p></span></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">• <b><span style="mso-bidi-font-style: italic;">Instagram<o:p></o:p></span></b></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Tailored
Instagram services<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">• <span style="mso-bidi-font-style: italic;">Create your page<o:p></o:p></span></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">• <span style="mso-bidi-font-style: italic;">Set up and/or customize<o:p></o:p></span></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">• <span style="mso-bidi-font-style: italic;">One or more post per business day with pictures provided by client<o:p></o:p></span></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">• <span style="mso-bidi-font-style: italic;">Monitor and respond to follower interaction (comments, photo/video
tags) once a day<o:p></o:p></span></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">• <span style="mso-bidi-font-style: italic;">Post 1 – 2 interactions per day<o:p></o:p></span></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">• <span style="mso-bidi-font-style: italic;">Add new followers weekly<o:p></o:p></span></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">• <span style="mso-bidi-font-style: italic;">Link Instagram account to Facebook page – Twitter only by request, or
live events.<o:p></o:p></span></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">• <b><span style="mso-bidi-font-style: italic;">Google – Promotion<o:p></o:p></span></b></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Google is
now a days being used as synonym to search, which is a key factor and tool for
promotion for any business. Google Ads is an essential tool for marketing not
only the website and mobile app, but also the products and services.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">• <b><span style="mso-bidi-font-style: italic;">Advertise on Google<o:p></o:p></span></b></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">• <span style="mso-bidi-font-style: italic;">Ads will appear alongside or above Google search results, in sections
marked "Sponsored links”<o:p></o:p></span></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">• <span style="mso-bidi-font-style: italic;">Pay only when people click on ads, and start and stop advertising
anytime<o:p></o:p></span></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">• <span style="mso-bidi-font-style: italic;">Set ads to appear to potential customers searching in a particular
city, region or country, regardless of whether they're searching on a
smartphone, tablet, or desktop computer<o:p></o:p></span></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">• <b><span style="mso-bidi-font-style: italic;">Search Engine Optimization (SEO)<o:p></o:p></span></b></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">• <span style="mso-bidi-font-style: italic;">Search engine optimization is a methodology of strategies, techniques
and tactics used to increase the amount of visitors to a website by obtaining a
high-ranking placement in the search results page of a search engine (SERP) --
including Google, Bing, Yahoo and other search engines.<o:p></o:p></span></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Searchandizing<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">• <span style="mso-bidi-font-style: italic;">The word is a combination of <b>search </b>and merch<b>andizing</b>. It
is an electronic commerce term used to describe using your own site search to
promote products when users search for certain keywords or phrases, akin to
merchandizing a retail store for up-selling, cross-selling or promoting
specific merchandise. Also called multi-faceted search. Creating the content of
the website and the application with relevant tags for the products that will
generate<o:p></o:p></span></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Importance
of SEO<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">• <span style="mso-bidi-font-style: italic;">90% online user uses search engine to find products and information.
Your website will constantly feature on page one of the search results for
terms that best describe your business Natural search receives 250% more
traffic that paid search 1</span></span><span style="font-size: 8.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">st </span><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">page of SE results
get at least 80% clicks<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Benefits of
SEO<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Get more
Customers to website, business and products Brand visibility, site popularity,
Quality sales leads, active buyers.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Importance
of The Power of Video Content<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Consider
that YouTube is the second largest search engine in the world, approximately
33% of all online activity is spent watching video content, and that 75% of
users visit a marketer's site after viewing a video. Furthermore, four out of
five internet users remember the video ads they watch online and 64% are more
likely to purchase a product from an ecommerce site after watching a related
video. Creating simple and viral video content that will lead to more hits and
creation of community.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">YouTube is
Embraced Equally by B2B and B2C Marketers<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">• <span style="mso-bidi-font-style: italic;">One of the most fascinating findings in this study is that YouTube is
used by 55% of B2B marketers, and 55% of B2C social media marketers who
participated2.<o:p></o:p></span></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Other Media<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">• <span style="mso-bidi-font-style: italic;">Besides the key media such as Facebook, Instagram, LinkedIn, Google,
several other adhoc media will be used significantly in order to promote the
website, app and products.<o:p></o:p></span></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">• <span style="mso-bidi-font-style: italic;">Twitter, Local newspapers, magazines, tele-marketing, web news portals
(Arab times, zawya, layalina), Cinescape<o:p></o:p></span></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">• <span style="mso-bidi-font-style: italic;">SEO (Search Engine Optimization) will be used in order to received
optimized results for achieving the desired sales target.<o:p></o:p></span></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-align: justify; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Other relevant apps like Kilshay, Pinterest<o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>Zia Ahmedhttp://www.blogger.com/profile/15251232944846705347noreply@blogger.com0tag:blogger.com,1999:blog-176427221984871817.post-13334126634823869572021-08-26T07:45:00.003-07:002021-08-26T07:45:56.453-07:00What is Startup Branding<p> </p><p class="MsoNormal" style="margin-bottom: 6.0pt;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><o:p> </o:p></span></p>
<h1><a name="_Toc3660354">Marketing Strategy</a><i style="mso-bidi-font-style: normal;"><o:p></o:p></i></h1>
<p class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><o:p> </o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Startup Branding Is Key to Success<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">For
startups to grow with time and dominate respective markets, they will need to
focus more on branding and marketing than investing in advertising. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">“Brand is
what people say about you behind your back,” “Startups should have a well-run
website and a blog that not just talks about its success but also about its
failures”.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><o:p><br /></o:p></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><o:p></o:p></span></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjrFnb2CsgANG5xsYb4OIwdDHv4OSLIxaqsc1F25ReT2npr0zkcnnBVWjJNzgmaVSSIn2bojsU3BqQKHVUgvGbXzALPdirWBlm5VkXxKuW3r_IKehZiHeOwmh03Jsqs4yXdV7wUOeos53s/s1080/Buggy+Idea.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1080" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjrFnb2CsgANG5xsYb4OIwdDHv4OSLIxaqsc1F25ReT2npr0zkcnnBVWjJNzgmaVSSIn2bojsU3BqQKHVUgvGbXzALPdirWBlm5VkXxKuW3r_IKehZiHeOwmh03Jsqs4yXdV7wUOeos53s/w400-h400/Buggy+Idea.png" width="400" /></a></div><br /> <p></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><o:p><br /></o:p></span></p>
<p align="center" class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-align: center; text-autospace: none;"><b><span style="font-size: 14.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">“Those setting up startups should not sit and wait
for a big idea. It is best to take a small buggy idea and create better
versions of it,”<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Branding is
a common misunderstood aspect of running a business.<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Most
entrepreneurs believe that branding is simply creating a logo, or their
company’s name. It’s true that your logo is a major part of your brand, but
branding goes much deeper. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Your Brand
Is Also Your Company’s Reputation and Tells Your Company’s Story. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">That’s why
startup branding is key to any company’s success.<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpFirst" style="line-height: normal; margin-bottom: 6.0pt; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-autospace: none; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-style: italic; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span dir="LTR"></span><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Brands boost
referrals<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: 6.0pt; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-autospace: none; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-style: italic; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span dir="LTR"></span><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Branding reinforces
marketing<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpLast" style="line-height: normal; margin-bottom: 6.0pt; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-autospace: none; text-indent: -.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-style: italic; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span dir="LTR"></span><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Brands stick around<o:p></o:p></span></p><p class="MsoListParagraphCxSpLast" style="line-height: normal; margin-bottom: 6.0pt; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-autospace: none; text-indent: -.25in;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><br /></span></p><p class="MsoListParagraphCxSpLast" style="line-height: normal; margin-bottom: 6.0pt; mso-add-space: auto; mso-layout-grid-align: none; mso-list: l0 level1 lfo1; text-autospace: none; text-indent: -.25in;"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi0w9_0gkIbcpx4am4o2X9bryW9zzPSfCp2NPaHhCtNAfUKhJoANkQH7Q99E2VdHmtUFRM3r79984rgI17tL7ykxAt11TG_mGn2g5YWy-eMYcTdGGlrWt2UxbRY-NU4QKP8c91JDYNlaA0/s1080/Branding+.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1080" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi0w9_0gkIbcpx4am4o2X9bryW9zzPSfCp2NPaHhCtNAfUKhJoANkQH7Q99E2VdHmtUFRM3r79984rgI17tL7ykxAt11TG_mGn2g5YWy-eMYcTdGGlrWt2UxbRY-NU4QKP8c91JDYNlaA0/w400-h400/Branding+.png" width="400" /></a></div><br /><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Keys to
Successful Branding<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Branding is
a way to distinguish your product or service from the rest of market and create
a perceived value in the mind of potential customers. However, branding is also
important for small businesses that want to stand out in the market, and the
keys to successful branding include knowing your target customers and making
all your decisions with a focus on what's important to them.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Define Your
Customers<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Study Your
Customers<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Be
Consistent with Your Brand Position<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Create the
Elements of Your Brand<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Create a
brand personality -- traits you want your business known for -- and, if you
have an established business, a brand story that shows how your business'
history adds value and credibility to the brand. Also, create the physical
elements that make up the brand, including your logo, business tagline, colors,
fonts, imagery and other physical elements used in marketing and presenting
your brand. These physical brand associations should reflect your brand promise
and all your brand traits, and also support your brand position.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Market Your
Brand<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Key Reasons
Why Branding is Important<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">You know
that branding is the key to any company, whether they sell coffee or industrial
parts or clothing. But convincing your organization or clients that branding is
necessary for all components of their business to succeed can be a bit more
difficult than deciding exactly what colors best represent their brand mission.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><br /></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="335" src="https://www.youtube.com/embed/KVBg3g1PQYA" width="517" youtube-src-id="KVBg3g1PQYA"></iframe></div><br /><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Branding
provides a competitive advantage<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Brands
provide a stable asset</span></b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Brands
provide economic value<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Brands set
expectations<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">At the
heart of branding is the promise that is made by the organization to the
audience. The brand promise tells the audiences who you are, what you believe
in, and what unique value you provide. The ability to fulfill your promises at
every stage of the relationship is the defining factor for most organizations
success or failure. When promises are broken the reputation of the organization
is called into question, and the brand suffers. When brand promises are kept,
audiences respond with loyalty and affection.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Create the
right tagline. <o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">What is the
emotional reaction you want your audience to have when engaging the brand and
what do you want them to remember?<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Stand out
from the crowd. </span></b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">T<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Think about
who your audience is.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Develop
your company culture. <o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">And then do
all your hiring and you’re on boarding with this culture in mind.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Be patient
with your brand</span></b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Take on
every new outreach initiative with care.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Be
consistent. </span></b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Think of your
outreach as being interconnected, like a body.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Get help. </span></b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Branding isn’t easy.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Put people
first. </span></b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">The brand is more
than the company.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;"><o:p> </o:p></span></b></p><div class="separator" style="clear: both; text-align: center;"><b><iframe allowfullscreen="" class="BLOG_video_class" height="295" src="https://www.youtube.com/embed/24fApyzf7Ww" width="470" youtube-src-id="24fApyzf7Ww"></iframe></b></div><b><br /></b><p></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Premium
Pricing Strategy<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Pricing is
a major element of marketing any product, and it is vitally important to set
the right price. A price that is too high or too low for the target market can
seriously affect sales. Premium pricing can use for several purposes. A premium
pricing strategy involves setting the price of a product higher than similar
products. This strategy is sometimes also called skim pricing because it is an
attempt to “skim the cream” off the top of the market. It is used to maximize
profit in areas where customers are happy to pay more, where there are no
substitutes for the product, where there are barriers to entering the market or
when the seller cannot save on costs by producing at a high volume</span><span style="font-family: "Times New Roman",serif; font-size: 12.0pt; mso-bidi-font-style: italic;">.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Premium pricing
can also be used to improve brand identity in a particular market. This is
called price-quality signaling, because the high price signals to consumers
that the product is high in quality. Competition<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Brand
awareness<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Some brands
can continue to charge a premium price because their entire brand image is
based around premium. Unique products usually have the best chance of
commanding premium prices.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">The first
step is to understand that in the so-called luxury market, there are three
possible strategies, which I named in my book as luxury, fashion and premium.
The difference between these three strategies is huge. It does not change much
in the eyes of most basic consumers, at least in the short-term. But when one
has to manage a brand, the difference is pivotal. In fact, if you decide to
implement a fashion or a premium strategy, the classical marketing styles works
pretty well. But if you decide to implement a luxury strategy, you need to
reconsider all the aspects of your marketing management.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">The luxury
strategy aims at creating the highest brand value and pricing power by
leveraging all intangible elements of singularity- i.e. time, heritage, country
of origin, craftsmanship, manmade, small series, prestigious clients, etc. The
premium strategy can be summarized as “pay more, get more.” Here the goal is to
prove -through comparisons and benchmarking- that this is the best value within
its category. Quality/price ratio is the motto. This strategy is, by essence,
comparative.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Here are
six factors that will influence your ability to establish and maintain premium
price position and reap the rewards:<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Become a
Premium Provider. Identify the features that would be considered high-end on
the value scale, and then highlight those crucial elements in your marketing.
Resist the urge to offer a basic service level or baseline product. Stick with
the premium level of service if you plan to maintain your premium pricing
strategy.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Define Your
Value. Help your customers understand why your prices are higher. If you know
how competitors are undercutting your prices, and you feel the competitors'
lower cost equates to poorer quality or service, explain this difference. In
other words, don't hide your price; instead, explain your value to the
customer, and be prepared to demonstrate the ROI associated with your service
or product.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Go the
Extra Mile. You'd be surprised how many business owners declare they offer
superior service simply because their people are friendly. Successful companies
have more than friendly employees.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Don't
Sacrifice Price, Even When Times are Tough. Just explain why your product or
service is worth the investment, but be a little flexible for long-time
customers.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Don't Play
the Lowest Price Game. Weaker competitors are quick to cut prices to earn business.
Don't play their game.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-size: 12.0pt; mso-bidi-font-family: Calibri; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin;">Project
Financial Stability. A colleague told me about his expensive dilemma. He needed
to replace his entire home air conditioning system. He asked two local
companies for estimates.<o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>Zia Ahmedhttp://www.blogger.com/profile/15251232944846705347noreply@blogger.com0tag:blogger.com,1999:blog-176427221984871817.post-92091547206558308632021-07-30T07:16:00.000-07:002021-07-30T07:16:01.149-07:00Rescue of Rich <p> </p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><b><span style="font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">When Government Pay for Rich, Poor get Poorer
- This is called capitalism<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">U.S. poverty totals hit a 50-year high<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">The government’s efforts to save the banks is
basically paying poor people's money ( stealing and extorting) and giving it to
rich to enjoy life. The whole exercise of QE1 and QE2 are just efforts in
saving the funding lobbies and their interest so that they can get funding for
next elections. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">All these easing has made life more difficult
for the poor. It has made basic staple food affordability not only in poor
countries but also in USA. More than 15% are poor who can have healthcare,
housing and education. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Soaring Poverty Casts Spotlight on 'Lost
Decade'<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Reporting from Washington—<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">In a grim portrait of a nation in economic
turmoil, the government reported that the number of people living in poverty
last year surged to 46.2 million — the most in at least half a century — as 1
million more Americans went without health insurance and household incomes fell
sharply.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><o:p><br /></o:p></span></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><o:p></o:p></span></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjsyYLvZEIFty6ixEtJ2zki2EdoFx0Sm2fd2t-_n8OXNowe8S6hare5mTLYBkTSEqP1I6KpXqoDeH5dQ7bIAgJ3OClZPWPd_aTiwhE1gSMuNXTScBqsGKq6bo37yM-LcPK4kNrv_wKxDok/s1080/Zakat+.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1080" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjsyYLvZEIFty6ixEtJ2zki2EdoFx0Sm2fd2t-_n8OXNowe8S6hare5mTLYBkTSEqP1I6KpXqoDeH5dQ7bIAgJ3OClZPWPd_aTiwhE1gSMuNXTScBqsGKq6bo37yM-LcPK4kNrv_wKxDok/w400-h400/Zakat+.png" width="400" /></a></div><br /> <p></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><o:p><br /></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">The poverty rate for all Americans rose in
2010 for the third consecutive year, matching the 15.1% figure in 1993 and
pushing many younger adults to double up or return to their parents' home to
avoid joining the ranks of the poor.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Taken together, the annual income and poverty
snapshot released Tuesday by the U.S. Census Bureau underscored how the
recession is casting a long shadow well after its official end in June 2009.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">The number of poor children younger than 18
reached its highest level since 1962, said William Frey, a demographer at the
Brookings Institution.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Poverty reached a record high for Latino
children, who Frey said accounted for more than half the overall increase in
poor children last year.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Blacks had the highest child poverty rate at
39%, up more than 3 percentage points from last year.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Overall, poverty was generally higher than the
national rate in states with high unemployment and in the South. Mississippi
had the highest poverty rate last year, at 22.7%, and New Hampshire had the
lowest, 6.6%.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Overall, the number of 25- to 34-year-old men
and women who were living with their parents last spring totaled 5.9 million —
a 25.5% increase since the recession began in 2007.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">The census report, coming shortly after
President Obama unveiled a proposed $447-billion package of tax cuts and
spending to revive job growth and the recovery, was seen as intensifying the
debate over the government's role in helping the poor and unemployed at a time
of budget deficits and painful cutbacks in public services.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><o:p> </o:p></span></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"></span></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjhSIHdYCFK-418evdvGXDVGmHtWUi7bS-wHsBv39DkAzPsQj4Xqs6e9a5Q1wx2I11P-Gr2A0rp41Qq8Gt3KT-3JIH4g85-AiC_uOZaKjuMQbaVGM9X9hyphenhyphenhEnqKzDo1_LfpJeZ9dF1DjBk/s1080/Hunger+and+Poverty.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1080" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjhSIHdYCFK-418evdvGXDVGmHtWUi7bS-wHsBv39DkAzPsQj4Xqs6e9a5Q1wx2I11P-Gr2A0rp41Qq8Gt3KT-3JIH4g85-AiC_uOZaKjuMQbaVGM9X9hyphenhyphenhEnqKzDo1_LfpJeZ9dF1DjBk/w400-h400/Hunger+and+Poverty.png" width="400" /></a></div><br /><o:p><br /></o:p><p></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><o:p><br /></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">JP Morgan Chief Says Bank Rules 'Anti-US'<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">America Should Pull Out of Basel - Because
they are Anti American<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">America is Out of Kyoto - Because they are
Anti America<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">America is Out of ICC - It is illegitimate<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">What suits to America is Americanism - What
suits to World and Principle of Justice is Anti America - This is what exactly
Americanism<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><b><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">EU-US Economies - Will Another Lehman-Style
Crisis Be Prevented? - CNBC<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">No it is not possible. The crisis cannot be
prevented. When we look at present situation not much has been changed and the
causes of the previous collapse are still existent in the market.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">•<span style="mso-tab-count: 1;"> </span>Too
Big to Fail -- The companies which were affected and needs rescue have become
bigger, the systematic risk of collapse of the system has not removed or
reduced, over the years it has increased.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">•<span style="mso-tab-count: 1;"> </span>Off
Balance Sheet Transaction - Derivatives and swaps are there and nobody really
knows how much each of them owe. How much risk or swaps or derivatives they
have played. Derivatives are still off balance sheet and not governed by the
Financial Authorities.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">•<span style="mso-tab-count: 1;"> </span>Toxic
assets are still there on the balance sheet sitting and looking pretty beautiful.
No one knows how much toxic each of them has and what is its worth.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">•<span style="mso-tab-count: 1;"> </span>Credit
Rating Agencies are same, methods are same and methodology is the same. They
are still beyond control and again started playing the dirty game.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">•<span style="mso-tab-count: 1;"> </span>Auditors
are same - they have not changed their behavior and practices. They are not
controlled and supervised.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">•<span style="mso-tab-count: 1;"> </span>Housing
is going down, mortgage is under water and bond for them are in market. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><b><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Corona Relief -The Governing Council decided
the following:<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">(1) To launch a new temporary asset purchase
programme of private and public sector securities to counter the serious risks
to the monetary policy transmission mechanism and the outlook for the euro area
posed by the outbreak and escalating diffusion of the coronavirus, COVID-19.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">This new Pandemic Emergency Purchase Programme
(PEPP) will have an overall envelope of €750 billion. Purchases will be
conducted until the end of 2020 and will include all the asset categories
eligible under the existing asset purchase programme (APP).<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">A waiver of the eligibility requirements for
securities issued by the Greek government will be granted for purchases under
PEPP.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">The Governing Council will terminate net asset
purchases under PEPP once it judges that the coronavirus Covid-19 crisis phase
is over, but in any case not before the end of the year.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">The Governing Council of the ECB is committed
to playing its role in supporting all citizens of the euro area through this
extremely challenging time. To that end, the ECB will ensure that all sectors
of the economy can benefit from supportive financing conditions that enable
them to absorb this shock. This applies equally to families, firms, banks and
governments.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><o:p> </o:p></span></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="371" src="https://www.youtube.com/embed/MF7wVQBbR-o" width="519" youtube-src-id="MF7wVQBbR-o"></iframe></div><br /><p></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><b><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">As central banks implement coronavirus rescue
plans, has moral hazard been forgotten?<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">One of the most important challenges facing a
central bank (CB) when it must act as a lender-of-last-resort to stabilize a
financial crisis is to avoid fostering moral hazard. This trap occurs when
market participants perceive little-to-no consequences for potentially
excessive risk taking, as they come to believe that they will be protected
should things go awry. Quick and decisive action by major CBs has stabilized
international financial markets during the pandemic downturn, setting the stage
for a broad economic recovery. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">But coming on the heels of large-scale CB
accommodation during the 2008-2009 Global Financial Crisis (GFC), officials
have reinforced the market’s belief that CBs will time and time again take
policy measures to protect financial markets from widespread losses. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Having learned from the positive impacts of
their actions during the GFC, major central banks quickly jumped into action to
stabilize the situation when international financial markets plunged in March
as the COVID-19 pandemic struck. The US Federal Reserve (Fed) implemented huge
securities purchase programs, some without limits, going beyond US treasuries
and agencies to buy corporate bonds including those below investment grades
(which CBs traditionally do not touch). <o:p></o:p></span></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><br /></span></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="336" src="https://www.youtube.com/embed/HF3EK2NlJI0" width="527" youtube-src-id="HF3EK2NlJI0"></iframe></div><br /><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">The Fed also offered credit facilities to many
market players, including money market funds and corporations. Importantly, in
response to the US dollar funding crisis among non-US banks, the Fed arranged
currency swap lines with several major central banks and US Treasury repurchase
agreement lines with many other monetary authorities. As a result, the Fed
balance sheet quickly increased from $4.2 trillion in February to a peak of
$7.2 trillion in mid-June.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Similarly, the European Central Bank (ECB)
launched a €750 billion Pandemic Emergency Purchase Program, later increasing
it by another €600 billion. Under these programs, the ECB can purchase
government and corporate bonds in member countries, without previous
constraints on how much it can acquire in each member country. Consequently,
the ECB balance sheet has increased from €4.7 trillion in mid-April to €5.6
trillion in June. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Timely central bank actions have helped
international equity markets recover most of the 30 to 40 percent losses
suffered in February and March. Portfolio capital flows have more than reversed
their earlier net outflows from risk assets. Borrowers including those below
investment grades have been able to issue significant volumes of bonds. For
example, global corporations have issued more than $6.4 trillion of bonds—on
course to reach a record high this year. Emerging market sovereigns have also
issued $123.5 billion of hard currency bonds in the first half of the year.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">But the swift recovery of financial markets
seems to be at odds with the underlying economic reality—where unemployment
remains widespread and bankruptcies remain quite elevated. Moreover, financial
market buoyancy is persisting even as the Fed balance sheet has shrunk from
$7.2 trillion to $6.9 trillion in late July; and the ECB balance sheet has also
declined modestly in recent weeks—reflecting investors’ reduced reliance on CB
support. This is a clear indication of moral hazard at work. Markets no longer
need central banks to add liquidity to do well; all they require is just the
conviction that CBs are there ready to provide support when needed. While
providing breathing room in the short term, this expectation of CBs coming to
the rescue will likely lead to continued risk taking by the market, which could
threaten future financial bubbles and stability risks.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><br /></span></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="334" src="https://www.youtube.com/embed/-368mTEM3Ao" width="402" youtube-src-id="-368mTEM3Ao"></iframe></div><br /><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Another manifestation of moral hazard is the
fact that plentiful CB liquidity and low interest rates continue to sustain
most companies, including unproductive ones. The number of zombie
companies—those generating insufficient profits to pay interests on their debt—
has noticeably risen as a share of the corporate universe. According to
Deutsche Bank Securities, zombies currently make up 20 percent of US companies,
having doubled since 2013. The share of zombies in Europe is likely similar
given that in 2016, a BIS study estimated the zombie share at 12 percent for
fourteen advanced economies under study (mostly in Europe). The United States
and Europe could be falling into the same trap Japan did three decades ago,
when the country kept zombie companies alive with easy financing conditions so
that their share reached almost 35 percent in the mid-1990s, ushering in
decades of slow growth.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-outline-level: 1; vertical-align: baseline;"><b><span style="color: #3f3f40; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-font-kerning: 18.0pt;">Federal
Reserve's $3 trillion virus rescue inflates market bubbles<o:p></o:p></span></b></p>
<p class="paragraph-paragraph-2bgue" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; vertical-align: baseline;"><span style="color: #313132; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">The
Federal Reserve’s $3 trillion bid to stave off an economic crisis in the wake
of the coronavirus outbreak is fuelling excesses across U.S. capital markets.<o:p></o:p></span></p>
<p class="paragraph-paragraph-2bgue" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; vertical-align: baseline;"><span style="color: #313132; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">The
U.S. central bank has pledged unlimited financial asset purchases to sustain
market liquidity, increasing its balance sheet from $4.2 trillion in February
to $7 trillion today.<o:p></o:p></span></p>
<p class="paragraph-paragraph-2bgue" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; vertical-align: baseline;"><span style="color: #313132; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">While
the vast majority of these purchases have been limited to U.S. Treasuries and
mortgage-backed securities, the Fed’s pledge to bolster the corporate bond
market has been enough to spur a frenzy among investors for bonds and stocks.<o:p></o:p></span></p><p class="paragraph-paragraph-2bgue" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; vertical-align: baseline;"><span style="color: #313132; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><br /></span></p><p class="paragraph-paragraph-2bgue" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; vertical-align: baseline;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="330" src="https://www.youtube.com/embed/l3DTOV-Pn4A" width="475" youtube-src-id="l3DTOV-Pn4A"></iframe></div><br /><span style="color: #313132; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><br /></span><p></p>Zia Ahmedhttp://www.blogger.com/profile/15251232944846705347noreply@blogger.com0tag:blogger.com,1999:blog-176427221984871817.post-27467468269457930472021-07-30T07:04:00.002-07:002021-07-30T07:04:24.995-07:00Global Poverty and Increasing Wealth of Rich<p> </p><p class="MsoNormal"><b><span style="font-size: 12.0pt; line-height: 107%;">Richest
1% now owns half the world’s wealth<o:p></o:p></span></b></p>
<p class="MsoNormal">The wealthiest 1 percent of the world’s population now owns
more than half of the world’s wealth, according to a new report.<o:p></o:p></p>
<p class="MsoNormal">The total wealth in the world grew by 6 percent over the
past 12 months to $280 trillion, marking the fastest wealth creation since
2012, according to the Credit Suisse report. More than half of the $16.7
trillion in new wealth was in the U.S., which grew $8.5 trillion richer.<o:p></o:p></p>
<p class="MsoNormal">But that wealth around the world is increasingly concentrated
among those at the top. <o:p></o:p></p>
<p class="MsoNormal"><b><span style="font-size: 12.0pt; line-height: 107%;">Are 26
billionaires worth more than half the planet? The debate, explained.<o:p></o:p></span></b></p>
<p class="MsoNormal">Here’s a wild statistic: The 26 richest people on earth in
2018 had the same net worth as the poorest half of the world’s population, some
3.8 billion people.<o:p></o:p></p><p class="MsoNormal"><br /></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgomUDCIkRzusVTvJMNuBolPDE6dYHTVxUhO5ExRyjBbeh3y46Q1Fk-Co8YNdMvw2DoqqIs0fI-yv6Wth8nC96M38Hv6NU6NoOLx9ntx5B-K3_lsKdqIpiEWjjWASpoONyVBTPaKjeCjUQ/s1080/Zakat+.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1080" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgomUDCIkRzusVTvJMNuBolPDE6dYHTVxUhO5ExRyjBbeh3y46Q1Fk-Co8YNdMvw2DoqqIs0fI-yv6Wth8nC96M38Hv6NU6NoOLx9ntx5B-K3_lsKdqIpiEWjjWASpoONyVBTPaKjeCjUQ/w400-h400/Zakat+.png" width="400" /></a></div><br /><p class="MsoNormal"><br /></p>
<p class="MsoNormal"><b><span style="font-size: 12.0pt; line-height: 107%;">World's
Richest 1 Percent Own Twice as Much as Bottom 90 Percent<o:p></o:p></span></b></p>
<p class="MsoNormal">The more than twenty-one hundred billionaires globally own
more of the world's wealth than the 4.6 billion people at the bottom of the
global wealth pyramid, a report from Oxfam International finds.<o:p></o:p></p>
<p class="MsoNormal">According to the report, Time to Care: Unpaid and Underpaid
Care Work and the Global Inequality Crisis (64 pages, PDF), the number of
billionaires globally has doubled over the last decade, while the richest 1
percent have accumulated twice as much wealth as 90 percent of the global
population, some 6.9 billion people. And global wealth inequality is worsening,
in part because billionaire portfolios have enjoyed an average annual return of
7.4 percent over the last ten years — helped by low taxes and a 31 percent
increase in dividends to shareholders — even as the average wage in G7
countries rose only 3 percent. Evidence of "a flawed and sexist economic
system" is everywhere, the report's authors write. <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">The world’s 2,153 billionaires have more wealth than the 4.6
billion people who make up 60 percent of the planet’s population, reveals a new
report from Oxfam today ahead of the World Economic Forum (WEF) in Davos,
Switzerland.<o:p></o:p></p>
<p class="MsoNormal">Global inequality is shockingly entrenched and vast and the
number of billionaires has doubled in the last decade. Oxfam India CEO Amitabh
Behar, who is in Davos to represent the Oxfam confederation this year said:
“The gap between rich and poor can't be resolved without deliberate
inequality-busting policies, and too few governments are committed to these.”<o:p></o:p></p>
<p class="MsoNormal">“Our broken economies are lining the pockets of billionaires
and big business at the expense of ordinary men and women. No wonder people are
starting to question whether billionaires should even exist,” Behar said.<o:p></o:p></p><p class="MsoNormal"><br /></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="339" src="https://www.youtube.com/embed/HF3EK2NlJI0" width="483" youtube-src-id="HF3EK2NlJI0"></iframe></div><br /><p class="MsoNormal"><br /></p><p class="MsoNormal"><br /></p>
<p class="MsoNormal">Fight inequality, beat poverty<o:p></o:p></p>
<p class="MsoNormal">Eight men own the same wealth as the 3.6 billion people who
make up the poorest half of humanity, according to a new report published by
Oxfam today to mark the annual meeting of political and business leaders in
Davos.<o:p></o:p></p>
<p class="MsoNormal">Oxfam’s report, ‘An economy for the 99 percent’, shows that
the gap between rich and poor is far greater than had been feared. It details
how big business and the super-rich are fuelling the inequality crisis by
dodging taxes, driving down wages and using their power to influence politics.
It calls for a fundamental change in the way we manage our economies so that
they work for all people, and not just a fortunate few. <o:p></o:p></p>
<p class="MsoNormal">New and better data on the distribution of global wealth –
particularly in India and China – indicates that the poorest half of the world
has less wealth than had been previously thought.<span style="mso-spacerun: yes;"> </span>Had this new data been available last year,
it would have shown that nine billionaires owned the same wealth as the poorest
half of the planet, and not 62, as Oxfam calculated at the time<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><b><span style="font-size: 12.0pt; line-height: 107%;">25
richest Americans paid little to nothing in federal income taxes: Report<o:p></o:p></span></b></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">The 25 richest Americans, including Jeff Bezos, Michael
Bloomberg and Elon Musk, paid relatively little — and sometimes nothing — in
federal income taxes between 2014 and 2018, according to an analysis from the
news organization ProPublica that was based on a trove of Internal Revenue
Service tax data.<o:p></o:p></p>
<p class="MsoNormal">The analysis showed that the nation’s richest executives
paid just a fraction of their wealth in taxes — $13.6 billion in federal income
taxes during a time period when their collective net worth increased by $401
billion, according to a tabulation by Forbes.<o:p></o:p></p>
<p class="MsoNormal">The documents reveal the stark inequity in the American tax
system, as plutocrats like Mr. Bezos, Mr. Bloomberg, Warren Buffett, Mr. Musk
and George Soros were able to benefit from a complex web of loopholes in the
tax code and the fact that the United States puts its emphasis on taxing labor
income versus wealth. <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p><p class="MsoNormal"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="401" src="https://www.youtube.com/embed/MF7wVQBbR-o" width="482" youtube-src-id="MF7wVQBbR-o"></iframe></div><br /><o:p><br /></o:p><p></p><p class="MsoNormal"><o:p><br /></o:p></p>
<p class="MsoNormal"><b><span style="font-size: 12.0pt; line-height: 107%;">Top US
Companies Pay No Income Tax<o:p></o:p></span></b></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">At least 55 of the largest corporations in America paid no
federal corporate income taxes in their most recent fiscal year despite
enjoying substantial pretax profits in the United States. This continues a
decades-long trend of corporate tax avoidance by the biggest U.S. corporations,
and it appears to be the product of long-standing tax breaks preserved or
expanded by the 2017 Tax Cuts and Jobs Act (TCJA) as well as the CARES Act tax
breaks enacted in the spring of 2020.<o:p></o:p></p>
<p class="MsoNormal">The tax-avoiding companies represent various industries and
collectively enjoyed almost $40.5 billion in U.S. pretax income in 2020,
according to their annual financial reports. The statutory federal tax rate for
corporate profits is 21 percent. The 55 corporations would have paid a collective
total of $8.5 billion for the year had they paid that rate on their 2020
income. Instead, they received $3.5 billion in tax rebates.<o:p></o:p></p>
<p class="MsoNormal">Their total corporate tax breaks for 2020, including $8.5
billion in tax avoidance and $3.5 billion in rebates, comes to $12 billion.<o:p></o:p></p>
<p class="MsoNormal">This report is based on ITEP’s analysis of annual financial
reports filed by the nation’s largest publicly traded U.S.-based corporations
in their most recent fiscal year. All data presented here come directly from
the income tax notes of these reports. Some companies with unusual fiscal years
have not yet filed such reports. Some publicly traded corporations paid nothing
on profits in their most recent fiscal year but are not included in this report
because they are not part of the S&P 500 or Fortune 500.<o:p></o:p></p>
<p class="MsoNormal">No-Tax Corporations Continue a Decades-Long Trend<o:p></o:p></p>
<p class="MsoNormal">For decades, the biggest and most profitable U.S.
corporations have found ways to shelter their profits from federal income
taxation. ITEP reports have documented such tax avoidance since the early years
of the Reagan administration’s misguided tax-cutting experiment. A widely cited
ITEP analysis of an eight-year period (2008 through 2015) confirmed that
federal tax avoidance remained rampant before the TCJA.<o:p></o:p></p>
<p class="MsoNormal">Now, with most corporations reporting their third year of
results under the new corporate tax laws pushed through by President Donald
Trump in 2017, it is crystal clear that the TCJA failed to address loopholes
that enable tax dodging—and may have made it worse.<o:p></o:p></p>
<p class="MsoNormal">The companies avoiding income taxes in 2020 represent very
different sectors of the U.S. economy:<o:p></o:p></p>
<p class="MsoNormal">Food conglomerate Archer Daniels Midland enjoyed $438
million of U.S. pretax income last year and received a federal tax rebate of
$164 million.<o:p></o:p></p>
<p class="MsoNormal">The delivery giant FedEx zeroed out its federal income tax
on $1.2 billion of U.S. pretax income in 2020 and received a rebate of $230
million.<o:p></o:p></p>
<p class="MsoNormal">The shoe manufacturer Nike didn’t pay a dime of federal
income tax on almost $2.9 billion of U.S. pretax income last year, instead
enjoying a $109 million tax rebate.<o:p></o:p></p>
<p class="MsoNormal">The cable TV provider DISH Network paid no federal income
taxes on $2.5 billion of U.S. income in 2020.<o:p></o:p></p>
<p class="MsoNormal">The software company Salesforce avoided all federal income
taxes on $2.6 billion of U.S. income.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">The U.S. income, current federal income tax and effective
tax rates in 2020 for all 55 of the zero-tax companies are shown in the
following table.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Analysts determined that the 55 companies, all part of the
S&P 500 or Fortune 500, would have paid a combined total of $8.5 billion
last year if they had paid at a 21% rate (the statutory federal corporate tax
rate) on their profits.<o:p></o:p></p>
<p class="MsoNormal">Not only did they avoid paying any taxes on their profits,
but these companies also received $3.5 billion in tax rebates, according to
ITEP, a left-leaning, non-profit research group that analyzed each firm’s
annual financial reports. <o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>Zia Ahmedhttp://www.blogger.com/profile/15251232944846705347noreply@blogger.com0tag:blogger.com,1999:blog-176427221984871817.post-81021197440058572812021-07-29T09:35:00.003-07:002021-08-04T03:34:34.700-07:00Who Crash Landed Indian Aviation<p> </p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEixoEWhJyeeMbohtSdvvld2W_YeXyaQsTPo9BAR__4vprYQaPsYIjMJCDNNjxMYvSNTFysReiVzLq5spqCmL8jjYpRXN5xbsKtudT_AK-PmGeGJY-xW_Un902k8nceyW-7FINHorQ_SwLs/s1280/Indian+aviation+.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="720" data-original-width="1280" height="225" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEixoEWhJyeeMbohtSdvvld2W_YeXyaQsTPo9BAR__4vprYQaPsYIjMJCDNNjxMYvSNTFysReiVzLq5spqCmL8jjYpRXN5xbsKtudT_AK-PmGeGJY-xW_Un902k8nceyW-7FINHorQ_SwLs/w400-h225/Indian+aviation+.png" width="400" /></a></div><br /><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><br /></span><p></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><br /></span></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">The Crash of Indian Aviation Sector<o:p></o:p></span></p>
<p class="MsoListParagraph" style="line-height: 150%; margin-bottom: 6pt; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";"> </span></span></span><!--[endif]--><span dir="LTR"></span><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">East West Airline <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">First Private Sector Airline <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Who Killed Takeeuddin Abdul Waheed – The owner of East West
Airline – Is this case of Corporate Rivalry. <o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 6pt; vertical-align: baseline;"><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">Wahid was the managing director of East-West
Airlines, the first private scheduled airline to begin service after liberalization.
Wahid hailed from Edava near Varkala in Thiruvananthapuram district. He was
killed in Mumbai when he was about to go home after a day at work.<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 6pt; vertical-align: baseline;"><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">East-West Airlines, which commenced services
in 1992, shut down in 1996 after his murder.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p> </o:p></span></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;"></span></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgATivF-8WBSJLFe3YVa5Qt6UP1uYS6Gq9i9EigcLdoR1ZknkiujNyOcqCsYOX8ZRBfoscgm2jfjKRtrFPj4YdICe-vKgRtDm-bPfz1M0KHU7YQEnn4LwTNvrnOW_rL56aAXael9D9Wf_8/s1280/indiaandchina_1_original.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="720" data-original-width="1280" height="225" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgATivF-8WBSJLFe3YVa5Qt6UP1uYS6Gq9i9EigcLdoR1ZknkiujNyOcqCsYOX8ZRBfoscgm2jfjKRtrFPj4YdICe-vKgRtDm-bPfz1M0KHU7YQEnn4LwTNvrnOW_rL56aAXael9D9Wf_8/w400-h225/indiaandchina_1_original.png" width="400" /></a></div><br /><o:p><br /></o:p><p></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p><br /></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><b><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Air Deccan<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p> </o:p></span></p>
<p class="ssrcss-1q0x1qg-paragraph" style="background: white; line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt; vertical-align: baseline;"><b><span face=""Calibri Light",sans-serif" style="border: 1pt none windowtext; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-border-alt: none windowtext 0in; mso-hansi-theme-font: major-latin; padding: 0in;">In the summer of 2005, retired army officer-turned-businessman GR
Gopinath announced that he would enable Indians to fly at one rupee or less
than a cent.</span></b><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p></o:p></span></p>
<p class="ssrcss-1q0x1qg-paragraph" style="background: white; line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt; vertical-align: baseline;"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">It was an incredulous sales pitch from the founder of the
country's first budget airline.<o:p></o:p></span></p>
<p class="ssrcss-1q0x1qg-paragraph" style="background: white; line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt; vertical-align: baseline;"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Air Deccan, his then two-year-old no-frills airline modelled on
European budget carriers like EasyJet and Ryanair, had already made flying
affordable to millions of Indians. Capt Gopinath's tickets cost half of what
competitors charged.<o:p></o:p></span></p>
<p class="ssrcss-1q0x1qg-paragraph" style="background: white; line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt; vertical-align: baseline;"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Now his airline introduced "dynamic pricing" where a
small number of "early bird" customers could travel at a rupee.
Latecomers would pay a higher ticket price, which would still be substantially
lower than competitors. Not surprisingly, booking counters were overrun with
customers, many of them first-time fliers. Critics howled such pricing methods
would wreck the industry.<o:p></o:p></span></p>
<p class="ssrcss-1q0x1qg-paragraph" style="background: white; line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt; vertical-align: baseline;"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">"The one-rupee ticket fired the imagination of the people and
quickly became a buzzword," wrote Capt Gopinath in his memoir. He believed
his airline had not "only broken the price barrier, but India's caste and
class barrier to flying"<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p> </o:p></span></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="333" src="https://www.youtube.com/embed/X-u9f_iz17I" width="401" youtube-src-id="X-u9f_iz17I"></iframe></div><br /><p></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><b><span face=""Calibri Light",sans-serif" style="background: white; font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">Jet and sahara <o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><span face=""Calibri Light",sans-serif" style="background: white; font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">In the dynamic world of Indian aviation, failure of the $500-million
plan to merge Jet Airways with Air Sahara has introduced a series of new twists
and turns. </span><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;"><br style="mso-special-character: line-break;" />
<!--[if !supportLineBreakNewLine]--><br style="mso-special-character: line-break;" />
<!--[endif]--><o:p></o:p></span></p>
<h1 style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt; vertical-align: baseline;"><span color="windowtext" style="font-size: 12pt; line-height: 150%; mso-bidi-font-family: "Calibri Light"; mso-bidi-theme-font: major-latin;">Explained: The rise and fall of private airlines<o:p></o:p></span></h1>
<h2 style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt; vertical-align: baseline;"><span face=""Calibri Light",sans-serif" style="font-size: 12pt; font-weight: normal; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">The suspension of operations at Jet Airways — at one time
India’s largest private airline — <span style="mso-spacerun: yes;"> </span>follows the troubles at Kingfisher, Air
Deccan, and Sahara. A short history of hope and distress in a highly
competitive market over the last 30 years.<o:p></o:p></span></h2>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt; vertical-align: baseline;"><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">Policy
changes came in the 1990s — and liberalization and economic reforms gave the
private aviation industry new wings of hope.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt; vertical-align: baseline;"><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt; vertical-align: baseline;"><b><span face=""Calibri Light",sans-serif" style="border: 1pt none windowtext; font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-border-alt: none windowtext 0in; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin; padding: 0in;">The beginnings</span></b><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt; vertical-align: baseline;"><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">Founder
promoter Naresh Goyal’s Jet Airways was one of the first private airlines in
newly liberalised India. In 1993<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt; vertical-align: baseline;"><b><span face=""Calibri Light",sans-serif" style="border: 1pt none windowtext; font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-border-alt: none windowtext 0in; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin; padding: 0in;">Start-stop-start</span></b><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt; vertical-align: baseline;"><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">Besides
repealing The Air Corporation Act, the government announced an Open Skies
policy in 1992, liberalising rules and regulations to open up the commercial
aviation market. This led to the birth, over the next decade or so, of private
sector players including ModiLuft, Damania Airways, Air Sahara, and East-West
Airlines. Most of these new players, however, folded up soon or were merged —
Jet Airways in contrast, stood out as an efficient private sector operator,
gaining market share with each passing year.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><span face=""Calibri Light",sans-serif" style="border: 1pt none windowtext; font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-border-alt: none windowtext 0in; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin; padding: 0in;"> East-West</span><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt; vertical-align: baseline;"><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">ModiLuft and
East-West ceased operations in 1996. Air Sahara, which started operations in
1993 as Sahara Airlines, was acquired by Jet in 2007 — a business move that
many analysts argue marked the beginning of the company’s troubles.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt; vertical-align: baseline;"><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">ModiLuft,
which had an excellent record for three years until it shut down in 1996, was
later acquired by </span><a href="https://indianexpress.com/article/who-is/who-is-ajay-singh-spicejet-ndtv-prannoy-roy-4855493/"><span color="windowtext" face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">Ajay
Singh</span></a><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">,
who launched it as SpiceJet in 2005 along with NRI businessman Bhulo Kansagra.
As SpiceJet faced difficulties, Kansagra sold his stake to US distress investor
Wilbur Ross in 2008, who sold it to Sun Group’s Kalanithi Maran a couple of
years later. The airline was teetering on the verge of closure when it was
again acquired by Ajay Singh in 2015, who turned it profitable.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt; vertical-align: baseline;"><b><span face=""Calibri Light",sans-serif" style="border: 1pt none windowtext; font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-border-alt: none windowtext 0in; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin; padding: 0in;">Boom and bust</span></b><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt; vertical-align: baseline;"><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">The real
expansion of the private airlines, and the number of domestic flyers in India,
started in the 2000s. In 2003, Captain G R Gopinath started the country’s first
low-cost carrier Air Deccan, which was followed by the launch of SpiceJet,
IndiGo and GoAir. All these carriers followed the model of no-frills, cheaper
tickets, and higher passenger load factors.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><span face=""Calibri Light",sans-serif" style="border: 1pt none windowtext; font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-border-alt: none windowtext 0in; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin; padding: 0in;"> Damania airlines</span><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt; vertical-align: baseline;"><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">The LCC
(low-cost carrier) model revolutionized the Indian aviation sector, pushing the
country’s annual passenger growth rate to double digits. Alongside the LCCs,
Kingfisher Airlines started operations in 2005, pitching itself in the middle
of a no-frills and a full-service carrier. These new airlines posed a
formidable challenge to Jet Airways, which had so far operated largely in a
duopoly with state-owned carriers Air India and Indian Airlines (which were
merged in 2011).<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt; vertical-align: baseline;"><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;"><br /></span></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt; vertical-align: baseline;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="337" src="https://www.youtube.com/embed/YPiH5Ty-Xts" width="405" youtube-src-id="YPiH5Ty-Xts"></iframe></div><br /><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt; vertical-align: baseline;"><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">But the
situation changed soon.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt; vertical-align: baseline;"><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">Air Deccan
faced extreme financial difficulties and was bought by Kingfisher in 2007.
However, Kingfisher itself went belly-up in 2012, while SpiceJet faced
intermittent headwinds. Jet, which had a 44% share of the domestic passenger
market in 2003-04, steadily lost ground — in February this year, the deeply
troubled airline had only 10% of the domestic market share, fourth behind
IndiGo (43.4%), SpiceJet (13.7%) and Air India (domestic, 12.8%), according to
government data. In all these years, IndiGo stood out as the only carrier that
improved its market share and financial performance.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt; vertical-align: baseline;"><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin;">In December
2004, the government announced a major policy change, allowing Indian scheduled
carriers with a minimum five years’ continuous operations and a minimum of 20
aircraft (the so called 5/20 rule) to fly international routes. Jet was the key
beneficiary of this policy change. In 2016, the government scrapped the 5/20
rule and replaced it with 0/20, enabling SpiceJet, IndiGo and GoAir to launch
international flights in the following years.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><b><span face=""Calibri Light",sans-serif" style="border: 1pt none windowtext; font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-border-alt: none windowtext 0in; mso-fareast-font-family: "Times New Roman"; mso-hansi-theme-font: major-latin; padding: 0in;">TATA GROUP</span></b><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p></o:p></span></p>
<p style="background: white; line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt; vertical-align: baseline;"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">challenges
The Tata Group faced in getting approvals to start their own airline company in
the 1990s. The regulatory struggle which began during the regime of Prime
Minister PV Narasimha Rao continued during the regime of Prime Minister HD Deve
Gowda. Innumerable bureaucratic hurdles continued to surface one after the
other. In the light of the current scenario of India's civil aviation industry
- where Jet Airways has closed its operations, Air India is up for sale, and
legal agencies are exploring the inconsistencies that caused the downfall of
India's state carrier, this story becomes even more interesting and topical. It
tells us how India as a nation would have benefited if the governments of those
decades had prioritized citizen well-being over political expedience in their
decision making.<o:p></o:p></span></p>
<p style="background: white; line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt; vertical-align: baseline;"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">When Prime
Minister Deve Gowda attended the World Economic Forum at Davos with Finance
Minister P. Chidambaram in 1996-97, among other questions, they were asked
about the ‘stop-go-stop’ status of the Tata-Singapore Airlines (SIA) venture.
Their answer was that it was ‘being considered’. It would have been a
diplomatic faux-pas to say anything else at a venue that was meant to project
India as an attractive destination for foreign investments. <o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 6pt; vertical-align: baseline;"><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p> </o:p></span></p>
<p style="background: white; line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt; vertical-align: baseline;"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">In the Union
Cabinet Meeting held in April 1997, Finance Minister P. Chidambaram, Industry
Minister Murasoli Maran and Foreign Minister Inder Kumar Gujral endorsed the
clearance of the Tata-SIA proposal. However, Civil Aviation Minister Ibrahim
had supposedly brought with him papers from four unions belonging to Indian
Airlines, which threatened to go on strike if the Tata Airlines proposal was
accepted. He contended that workers’ interests must be protected. The Prime
Minister conceded to this concern and laid the proposal to rest.<o:p></o:p></span></p>
<p style="background: white; line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt; vertical-align: baseline;"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Later that
month, a formal rejection letter was sent to the Tata Group citing
inconsistencies in the proposal with the civil aviation policy. <o:p></o:p></span></p>
<p style="background: white; line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt; vertical-align: baseline;"><b><span face=""Calibri Light",sans-serif" style="font-size: 14pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">There were strong mutterings in the media that the aviation
minister had altered the aviation policy at Naresh Goyal’s behest to upset
Tatas’ aviation dreams. M.K. Kaw, civil aviation secretary under Minister
Ibrahim, acknowledged this in his autobiography (An Outsider Everywhere),<o:p></o:p></span></b></p>
<p align="center" class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 6pt; text-align: center; vertical-align: baseline;"><i><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">‘The minister did not clear the file, despite several attempts on
my part. The history of civil aviation in this country would have taken a
different trajectory if Tata-SIA had been allowed to float an airline.’ <o:p></o:p></span></i></p>
<h3 style="background: white; line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt; vertical-align: baseline;"><span color="windowtext" style="mso-bidi-font-family: "Calibri Light"; mso-bidi-theme-font: major-latin;">A bumpy ride<o:p></o:p></span></h3>
<p style="background: white; line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt; vertical-align: baseline;"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">In 1990s, Air
India’s market share steadily declined, and losses mounted. Between 1995 and
1997, it reported consolidated losses of ₹671 crores. When the Atal Bihari
Vajpayee-led Government came to power in 1998, it initiated a major
disinvestment programme under Minister Arun Shourie. In 2001, a decision on
divesting 40% stake in Air India was taken. Given its long and rich experience,
the Tata Group was specifically encouraged to participate in the process. The
national carrier was an attractive investment proposition because of its
lucrative slots at key Indian and international airports, flying rights to
global destinations, its fleet size and market share. Tatas were interested in
exploring the opportunity and collaborated with SIA to study the feasibility.
Its findings revealed that robust middle level managers at Air India would be
an asset in turning around the enterprise. SIA and Tata Sons offered to take
20% stake each in Air India. <o:p></o:p></span></p>
<p style="background: white; line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt; vertical-align: baseline;"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">When their
joint proposal emerged as sole bidders, it was almost a done deal. Yet, once
again, there was an uproar. Virulent attacks by rival airline lobbyists and
opposition from labour unions marred the atmosphere. Discomforted by these
developments, Singapore Airlines withdrew its participation. It offered to
assist the Tatas as technical advisors without any equity stake. That too cut
no ice with decision makers. Tatas entry into the airline sector was
successfully stonewalled one more time. [i]<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 6pt; vertical-align: baseline;"><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p> </o:p></span></p>
<p style="background: white; line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt; vertical-align: baseline;"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><span style="mso-spacerun: yes;"> </span>I am therefore taking the decision to withdraw
our application.’ A decade later, in 2010, while addressing the Tenth
Foundation Day of Uttarakhand at Dehradun, he shared a conversation he had with
a fellow industrialist during the days when Tatas had applied for the airline.
‘You are stupid people. The Minister was asking for ₹15-crore. Why didn’t you
pay the money?’ the industrialist chided Mr Tata.<o:p></o:p></span></p>
<p align="center" class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 6pt; text-align: center; vertical-align: baseline;"><i><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">‘I did not want to go to bed knowing well that I set up an airline
by paying ₹15-crore as a bribe,’ was Mr Tata’s reply.<o:p></o:p></span></i></p>
<p style="background: white; line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt; vertical-align: baseline;"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">He regretted
that despite being a pioneer in Indian aviation, Tata Group faced enormous
problems in gaining approvals for a domestic airline. ‘We approached three
Prime Ministers. But an individual thwarted our efforts to form the airlines,’
he admitted in public. He did not name the individual, though the grapevine
pointed the needle to Jet Chairman Goyal. On another occasion he confessed, ‘It
is not that we were thwarted that bothers me, but that vested interests
combined to deny the country the benefit of a world-class competitive
airline.’ <o:p></o:p></span></p>
<h3 style="background: white; line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt; vertical-align: baseline;"><span color="windowtext" style="mso-bidi-font-family: "Calibri Light"; mso-bidi-theme-font: major-latin;">A new Sunrise<o:p></o:p></span></h3>
<p style="background: white; line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt; vertical-align: baseline;"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">As for Air
India, it had succeeded in accumulating losses of ₹50,000 crores and a debt of
₹55,000 crores by March 2018, a disdainful drain on the honest taxpayers’ money
that could have been invested in vital social sector schemes. Besides the huge
debt, some of the key problems plaguing the airline included routing and
network issues, lack of decisive leadership, managerial complications, and
internal incompatibility between the merged airlines. In his autobiographical
account, M.K. Kaw regretted that the history of civil aviation in India had
been a story of shameless exploitation and ruthless corruption. He called it ‘a
fascinating saga of benami ownership of airlines, demands for bribes,
destruction of rival airlines one-by-one, unwarranted purchase of aircraft,
mismanagement of bureaucrats and politicians, free jaunts on inaugural flights,
subsidized travel for many categories of travelers, VVIP flights, Haj flights
and so on.’<o:p></o:p></span></p>
<p style="background: white; line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt; vertical-align: baseline;"><b><span face=""Calibri Light",sans-serif" style="font-size: 14pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">By early 2019, Jet Airways faced operational closure; many
observers calling it Karma coming a full circle. India’s characteristic
Maharaja was on sale, yet no one wanted to acquire the once iconic brand that
symbolized world-class air travel. Interestingly, Vistara was the only
commercially successful full-service airline operating in India’s civil
aviation space… <o:p></o:p></span></b></p>
<p style="background: white; line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt; vertical-align: baseline;"><span face=""Calibri Light",sans-serif" style="mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;">Notes:<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><span face=""Calibri Light",sans-serif" style="font-size: 12pt; line-height: 150%; mso-ascii-theme-font: major-latin; mso-bidi-theme-font: major-latin; mso-hansi-theme-font: major-latin;"><o:p> </o:p></span></p>Zia Ahmedhttp://www.blogger.com/profile/15251232944846705347noreply@blogger.com0tag:blogger.com,1999:blog-176427221984871817.post-58398914098691482272021-07-29T06:30:00.003-07:002021-08-05T04:06:21.749-07:00Role of E&Y in Scams and Fraud<p> </p><h1 style="background: white; line-height: 150%; margin-bottom: 6pt;"><span face=""Arial",sans-serif" style="color: #0a0a0a; font-size: 12pt; line-height: 150%;">EY accused of actively concealing NMC Health audit fraud from
investors<o:p></o:p></span></h1><div><span face=""Arial",sans-serif" style="color: #0a0a0a; font-size: 12pt; line-height: 150%;"><br /></span></div><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhICHelR4OOENNavGhBWym2-l1C0v3zDHmnTg8L2TJaSQ7o01HAVD6n10eTc3S8HwfVs64z1aj03FXsGf_aEQfFnYyXt-uDNsF6_HEyPdatcdaAnoK3gunfhILBUWgH1gOe7-3IHkGz4Gs/s1280/E+and+Y.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="720" data-original-width="1280" height="225" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhICHelR4OOENNavGhBWym2-l1C0v3zDHmnTg8L2TJaSQ7o01HAVD6n10eTc3S8HwfVs64z1aj03FXsGf_aEQfFnYyXt-uDNsF6_HEyPdatcdaAnoK3gunfhILBUWgH1gOe7-3IHkGz4Gs/w400-h225/E+and+Y.png" width="400" /></a></div><br /><span face=""Arial",sans-serif" style="color: #0a0a0a; font-size: 12pt; line-height: 150%;"><br /></span></div>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><span style="font-size: 12pt; line-height: 150%;"><o:p> </o:p></span></p>
<p class="MsoListParagraph" style="line-height: 150%; margin-bottom: 6pt; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";"> </span></span></span><!--[endif]--><span dir="LTR"></span><span style="font-size: 12pt; line-height: 150%;">EY Hidden and
Manipulated account of NMC up to 6 billion USD.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><span style="font-size: 12pt; line-height: 150%;">This is not first time EY is accused
of Manipulation and scam. In 2020, itself it is 3<sup>rd</sup> case, where EY
been accused of corruption. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><span style="font-size: 12pt; line-height: 150%;">NMC Health, the former FTSE 100
healthcare group, collapsed this year after discovering that more than $4bn was
apparently hidden from its balance sheet in a large-scale fraud that spanned
operations from Abu Dhabi to London. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><span style="font-size: 12pt; line-height: 150%;">EY has overseen NMC’s accounts since
the healthcare company floated in London in 2012. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><span style="font-size: 12pt; line-height: 150%;">The quality of the firm’s audits has
already been questioned due to the fact that NMC’s board included former EY
partners.<o:p></o:p></span></p>
<p class="MsoListParagraph" style="line-height: 150%; margin-bottom: 6pt; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";"> </span></span></span><!--[endif]--><span dir="LTR"></span><span style="font-size: 12pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Two Scandals Wirecard AG and Luckin
Coffee, auditor is common EY. Where EY failed to fulfil its responsibilities.<o:p></o:p></span></p>
<p style="background: white; line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt;"><span face=""Calibri",sans-serif" style="color: #333333; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">These two companies have one other thing in common
beyond their recent involvement in high profile accounting scandals – it turns
out that both companies’ auditor was Ernst & Young, as was the case with
several other companies involved in recent scandals. <o:p></o:p></span></p><p style="background: white; line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt;"><span face=""Calibri",sans-serif" style="color: #333333; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><br /></span></p><p style="background: white; line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt;"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiSIEkykzqyYsL0gF2yRmrMV_9xlxelzUMH_REW_55CURNh90Ad6mh4OdtzdZ1_AJJN_bg9od01H2OeGL3e8GoXTQVIMgQL_P5Ex_zJId-hw7hyphenhyphenUF6wNl0zAp4wiM4lUVmQDv3CtwPKhYs/s1600/Plantation+Scams.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="900" data-original-width="1600" height="225" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiSIEkykzqyYsL0gF2yRmrMV_9xlxelzUMH_REW_55CURNh90Ad6mh4OdtzdZ1_AJJN_bg9od01H2OeGL3e8GoXTQVIMgQL_P5Ex_zJId-hw7hyphenhyphenUF6wNl0zAp4wiM4lUVmQDv3CtwPKhYs/w400-h225/Plantation+Scams.png" width="400" /></a></div><br /><span face=""Calibri",sans-serif" style="color: #333333; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><br /></span><p></p>
<p style="background: white; line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt;"><span face=""Calibri",sans-serif" style="color: #333333; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">As discussed in an October 17, 2020 <em><span face=""Calibri",sans-serif" style="mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Wall Street
Journal</span></em> article entitled “String of Companies That Imploded
Have Something in Common: Ernst & Young Audited Them” (</span><span face=""Calibri",sans-serif" style="mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">here<span style="color: #333333;">), a number of EY audit clients have faced financial
issues in recent months, raising questions whether there is something about
EY’s audit approach that contributed to the problems or allowed the problems to
happen.<o:p></o:p></span></span></p>
<p style="background: white; line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt;"><span face=""Calibri",sans-serif" style="color: #333333; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"> The 1.9 billion euros ($2.1 billion) missing
from Wirecard’s balance sheet brought the chief executive officer’s arrest, the
German payments firm’s insolvency filing and a lot of finger-pointing.<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 6pt; mso-margin-top-alt: auto;"><span style="color: #212529; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";">Financial data is manipulated to
show nonexistent earnings. Common ways to cook the books include delaying
expenses, accelerating revenues, off-balance sheet items, and nonrecurring
expenses. <o:p></o:p></span></p>
<p class="MsoListParagraph" style="line-height: 150%; margin-bottom: 6pt; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -0.25in;"><!--[if !supportLists]--><span style="font-family: Symbol; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7pt "Times New Roman";"> </span></span></span><!--[endif]--><span dir="LTR"></span><span style="font-size: 12pt; line-height: 150%;">EY – and Lehman
Collapse<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><span style="font-size: 12pt; line-height: 150%;">One of the largest investment
companies in the world suddenly vanished, filing bankruptcy that impacted our
world today. Lehman Brothers were at the top of the charts; or at least that is
what was portrayed in the media. The white collar crime that lost hundreds of
billions of dollars has been inexistent, but still an unforgettable tragedy
that effected the lives of so many. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><span style="font-size: 12pt; line-height: 150%;">The questions that must be resolved
are what factors led to the Lehman Brothers’ financial crisis? What was Ernst
& Young’s involvement and how did they cease to hide the facts behind
Lehman Brothers’ downfall?<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><span style="font-size: 12pt; line-height: 150%;">Lehman Brothers were one of the five
largest U.S. investment companies, however on September 15, 2008, the company
filed for bankruptcy. <o:p></o:p></span></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><span style="font-size: 12pt; line-height: 150%;"><br /></span></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="403" src="https://www.youtube.com/embed/ECJNifGFjTE" width="486" youtube-src-id="ECJNifGFjTE"></iframe></div><br /><span style="font-size: 12pt; line-height: 150%;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><span style="font-size: 12pt; line-height: 150%;">The unpredictable collapse occurred
because of several cover-ups and false information that was presented by Lehman
Brothers along with the participation of one of the top accounting firms, Ernst
& Young. With the assistance of the accounting firm, Lehman Brothers were
able to cover up any issues that had been occurring for at least a few years. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><span style="font-size: 12pt; line-height: 150%;">These aspects all concluded with the
involvement of Ernst and Young, by allowing the executives to manipulate these
reports and not doing anything to stop it. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><span style="font-size: 12pt; line-height: 150%;">Ernst and Young obviously did not
show any type of seniority over the Lehman Brothers by signing off and not
auditing millions of fraud reports. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><span style="font-size: 12pt; line-height: 150%;">The firm knowingly approved the
removal of billions of dollars in debt within Lehman’s quarterly reports (Freifeld,
2015). By affiliating with this scandal, Ernst & Young found themselves in
a “massive accounting fraud”, leaving them with several white collar cases
throughout the past seven years. <o:p></o:p></span></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><span style="font-size: 12pt; line-height: 150%;"><br /></span></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2kAdMyPcbF7owahnTqq9E_hr-AklpWJtZPBQDdHC2c5599Pg4SjozpKia0j1M0EW9PBuPlC-sIFik0ATnQ3gcPpTkxTId-V7K5hMwXrmb_jVMOkfm4XOMgJAFTtXFehjJBuYNOtFRn5g/s2048/Investment+Scam+.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="2048" data-original-width="2048" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg2kAdMyPcbF7owahnTqq9E_hr-AklpWJtZPBQDdHC2c5599Pg4SjozpKia0j1M0EW9PBuPlC-sIFik0ATnQ3gcPpTkxTId-V7K5hMwXrmb_jVMOkfm4XOMgJAFTtXFehjJBuYNOtFRn5g/w400-h400/Investment+Scam+.png" width="400" /></a></div><br /><span style="font-size: 12pt; line-height: 150%;"><br /></span><p></p>
<p class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 6pt; mso-outline-level: 3;"><b><span style="color: #1d2833; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";">The Enron scandal of 2001</span></b><span style="color: #1d2833; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";"> <o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 6pt;"><span style="color: #212529; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";">When
people mention an accounting scandal, often the Enron scandal and bankruptcy of
2001 come to mind. It was one of the most highly publicized scandals in
accounting history. The big players in the scandal were CEO Jeff Skilling and
CEO Ken Lay. The duo decided to keep big debts off the balance sheet. As the
stock prices soared, suspicions increased. Ultimately, internal whistleblower
Sherron Watkins caught the culprits. Employees lost their jobs, many investors
and employees lost their retirement accounts, and shareholders lost $74
billion. Arthur Andersen was found guilty of manipulating Enron's accounts.
Skilling got 24 years in jail, and Lay died before serving any prison
time. <o:p></o:p></span></p><p class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 6pt;"><span style="color: #212529; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";"><br /></span></p><p class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 6pt;"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjMdmWyjchKE-p5-wKy5brRp86KkAXiDfJyP_AvPe6QXpKi5ph5bRCvdl5z-2Po_dpuz8fmISIbR-jhsTcq8emLGkErZ7G29uCnckWQo8h9S1pGyHj0syF95ODyianAk84O5DBuIo08f0M/s1080/Hunger+and+Poverty.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1080" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjMdmWyjchKE-p5-wKy5brRp86KkAXiDfJyP_AvPe6QXpKi5ph5bRCvdl5z-2Po_dpuz8fmISIbR-jhsTcq8emLGkErZ7G29uCnckWQo8h9S1pGyHj0syF95ODyianAk84O5DBuIo08f0M/w400-h400/Hunger+and+Poverty.png" width="400" /></a></div><br /><span style="color: #212529; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";"><br /></span><p></p>
<p class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 6pt; mso-outline-level: 3;"><b><span style="color: #1d2833; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";">The WorldCom scandal of 2002</span></b><span style="color: #1d2833; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";"> <o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 6pt;"><span style="color: #212529; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";">Just
one year after Enron made headlines, people found out about the WorldCom Scandal
of 2002. Telecommunications company WorldCom is now known as MCI, Inc. CEO at
that time, Bernie Ebbers, inflated revenues with false accounting entries and
under-reported line costs. The company's internal auditing department uncovered
a significant $3.8 billion in fraud. Assets were inflated by up to $11 billion,
leading to 30,000 lost jobs. And investors lost about $180 billion. The CFO was
fired, and the controller resigned. Ebbers got 25 years in prison based on
charges of fraud, filing false documents, and conspiracy. Weeks after these
renowned and costly scandals, the United States Congress passed the
Sarbanes-Oxley Act, the most detailed set of business regulations since the
1930s. <o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 6pt; mso-outline-level: 3;"><b><span style="color: #1d2833; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";">The Bernie Madoff scandal of
2008</span></b><span style="color: #1d2833; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";"> <o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 6pt;"><span style="color: #212529; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";">The
Bernie Madoff scandal was another famous accounting scandal in 2008. This
highly publicized scandal focused on the Wall Street investment firm founded by
Madoff, Bernard L. Madoff Investment Securities LLC. Investors were duped out
of $64.8 billion in the most massive Ponzi scheme in history. The top players
in this scandal were Madoff, his accountant David Friehling, and
Frank DiPascalli. The company paid returns to investors out of their own
money or money from other investors rather than from profits. Ironically, Madoff
was caught when he told his sons about his scam, and they reported him to the
SEC. Madoff was arrested the next day and faced 150 years in jail with $170
billion restitution. Friehling and DiPascalli also got jail
time. Many recall 2008 marked the U.S. financial collapse, making this a
notable year in accounting history. <o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 6pt; mso-outline-level: 3;"><b><span style="color: #1d2833; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";">The Olympus scandal of 2011</span></b><span style="color: #1d2833; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";"> <o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 6pt;"><span style="color: #212529; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";">The </span><u><span style="color: blue; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";">Olympus
scandal of 2011</span></u><span style="color: #212529; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";"> was one of the biggest
accounting scandals of the decade. The length of the fraud is what astounded
everyone about this well-known international camera corporation. Michael
Woodford, the company British chief executive, blew the whistle on inexplicable
fees paid during acquisitions. The fraud totaled $1.7 billion. It was
discovered the previous corporate management had buried losses since the 1990s.
Acquisitions were used to cover up losses on poor investments, and the
corporation had been deferring losses for over two decades. Former chairman
Tsuyoshi Kikukawa, and two other executives received suspended prison sentences
and one of the company advisers went to jail for four years. <o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: 150%; margin-bottom: 6pt;"><span style="color: #212529; font-size: 12pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";">For
decades, it was challenging to bring accounting scandals to light. In 1939,
Kenneth McNeal wrote, “Trust in Accounting,” which evidences the poor
accounting procedures of those times. In the 1960s and 1970s, various scandals
arose but attracted little attention. By the new millennium, fraudsters became
overconfident, got caught, and faced severe penalties. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6pt;"><span style="font-size: 12pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><o:p> </o:p></span></p>Zia Ahmedhttp://www.blogger.com/profile/15251232944846705347noreply@blogger.com6tag:blogger.com,1999:blog-176427221984871817.post-17421701792483585912021-05-18T07:19:00.000-07:002021-05-18T07:19:04.581-07:00Comparison Islamic Accounting and Conventional Accounting <p> </p><p class="Default" style="margin-bottom: 6.0pt; text-align: justify;"><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="color: red; font-family: "Calibri",sans-serif; font-size: 14.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 11.0pt; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Differences between Islamic accounting and Conventional
Accounting </span></i></b><span style="color: red; font-family: "Calibri",sans-serif; font-size: 14.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 11.0pt; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Arial Unicode MS"; mso-hansi-theme-font: minor-latin;"><o:p></o:p></span></p>
<p class="Default" style="margin-bottom: 6.0pt; text-align: justify;"><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Arial Unicode MS"; mso-hansi-theme-font: minor-latin;">To professional accountants and
those who have received a conventional accounting education and who have been
brought-up<span style="mso-spacerun: yes;"> </span>on the idea of accounting as
an ‘objective’, technical and value-free discipline, the idea of attaching a
religious adjective to accounting may seem to be embarrassing and<span style="mso-spacerun: yes;"> </span>unprofessional. <o:p></o:p></span></p><p class="Default" style="margin-bottom: 6.0pt; text-align: justify;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="377" src="https://www.youtube.com/embed/OnmPp2NPUxk" width="453" youtube-src-id="OnmPp2NPUxk"></iframe></div><br /><span style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Arial Unicode MS"; mso-hansi-theme-font: minor-latin;"><br /></span><p></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; text-align: justify;"><span lang="EN-GB" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Arial Unicode MS"; mso-hansi-theme-font: minor-latin;">On the other hand, the development
of Islamic banking and finance now embraced even by ardent capitalist
institutions such as Citibank, HSBC and ANZ banks may interest accountants and
other job seekers to the possibility of new opportunities in this new
discipline.<span style="mso-spacerun: yes;"> </span>Perhaps, the Enron affair
has rekindled an interest in having a more honest profession who truly care
about the public interest in addition to their pockets. Whatever the interest
or curiosity, we hope readers will find this chapter (and hopefully the entire
book) interesting, informative, and profitable and yes we hope it may even lead
to a bit of soul searching.<o:p></o:p></span></p><p class="MsoNormal" style="margin-bottom: 6.0pt; text-align: justify;"><span lang="EN-GB" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Arial Unicode MS"; mso-hansi-theme-font: minor-latin;"><br /></span></p><p class="MsoNormal" style="margin-bottom: 6.0pt; text-align: justify;"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhPx0L1PVqMg5eSIBFSWcReEev21QH-DKPdFRy2E3LANOCTfM4MjLm0H2Y7C5_LXL4uAwhMRavoxThqm3m6da8gb-nhAFvmAYZQFXBOn1uxPK5fcPPXBHJp79DoFwQlFmehF41BZWd2VUM/s1080/3.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1080" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhPx0L1PVqMg5eSIBFSWcReEev21QH-DKPdFRy2E3LANOCTfM4MjLm0H2Y7C5_LXL4uAwhMRavoxThqm3m6da8gb-nhAFvmAYZQFXBOn1uxPK5fcPPXBHJp79DoFwQlFmehF41BZWd2VUM/w400-h400/3.png" width="400" /></a></div><br /><span lang="EN-GB" style="font-family: "Calibri",sans-serif; font-size: 11.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Arial Unicode MS"; mso-hansi-theme-font: minor-latin;"><br /></span><p></p>
<p class="MsoNormal" style="margin-left: .5in; mso-list: l0 level1 lfo2; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-GB" style="color: #4f81bd; font-family: Symbol; font-size: 14.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 12.0pt; mso-fareast-font-family: Symbol; mso-themecolor: accent1;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span lang="EN-GB" style="color: #4f81bd; font-family: "Calibri",sans-serif; font-size: 14.0pt; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 12.0pt; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Arial Unicode MS"; mso-hansi-theme-font: minor-latin; mso-themecolor: accent1;">Meaning of Islamic Accounting<o:p></o:p></span></i></b></p>
<p class="BodyText" style="line-height: normal; margin-bottom: 6.0pt;"><span lang="EN-GB" style="font-family: "Calibri",sans-serif; layout-grid-mode: both; mso-ansi-language: EN-GB; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 11.0pt; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Arial Unicode MS"; mso-hansi-theme-font: minor-latin;">Islamic accounting can be defined as the “accounting
process” which provides appropriate information (not necessarily limited to
financial data) to stakeholders of an entity which will enable them to ensure
that the entity is continuously operating within the bounds of the Islamic
Shari’a and delivering on its socioeconomic objectives. Islamic accounting is
also a tool, which enables Muslims to evaluate their own accountabilities to
God (in respect of inter-human/environmental transactions). <o:p></o:p></span></p><p class="BodyText" style="line-height: normal; margin-bottom: 6.0pt;"><span lang="EN-GB" style="font-family: "Calibri",sans-serif; layout-grid-mode: both; mso-ansi-language: EN-GB; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 11.0pt; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Arial Unicode MS"; mso-hansi-theme-font: minor-latin;"><br /></span></p><p class="BodyText" style="line-height: normal; margin-bottom: 6.0pt;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="353" src="https://www.youtube.com/embed/YrVvtYgg4pI" width="425" youtube-src-id="YrVvtYgg4pI"></iframe></div><br /><span lang="EN-GB" style="font-family: "Calibri",sans-serif; layout-grid-mode: both; mso-ansi-language: EN-GB; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 11.0pt; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Arial Unicode MS"; mso-hansi-theme-font: minor-latin;"><br /></span><p></p>
<p class="BodyText" style="line-height: normal; margin-bottom: 6.0pt;"><span lang="EN-GB" style="font-family: "Calibri",sans-serif; layout-grid-mode: both; mso-ansi-language: EN-GB; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 11.0pt; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Arial Unicode MS"; mso-hansi-theme-font: minor-latin;">The above diagram illustrates the purpose of
Islamic accounting. Muslims believe in the hereafter. All business activities
should be in line with the shari’a or Islamic law, including business. In life,
people transact through institutions such as business. These activities are
classified, recorded and summarized using a philosophic filter (shari’a and
Islamic accounting standards) to produce accounting statements, which people
act on. If the information produced is useful and appropriate to make economic
or social decisions through a moral framework, then the users will act in ways
to correct their ‘sins’ and increase good behaviour leading to God’s pleasure
in the hereafter. If the accounting information system misinforms or does not
provide appropriate information, the business might be undertaking sinful
activities, the responsibility for which will be borne by the investor as he is
a participant. This may lead him to Hell. <o:p></o:p></span></p>
<p class="BodyText" style="line-height: normal; margin-bottom: 6.0pt;"><span lang="EN-GB" style="font-family: "Calibri",sans-serif; layout-grid-mode: both; mso-ansi-language: EN-GB; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 11.0pt; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Arial Unicode MS"; mso-hansi-theme-font: minor-latin;">The meaning of Islamic accounting would be clearer
if we compare this with the definition of “conventional” accounting.<span style="mso-spacerun: yes;"> </span>(Conventional) accounting as we know is
defined to be the identification, recording, classification, interpreting and
communication economic events to permit users to make informed decisions (AAA,
1966). From this, it can be seen that both Islamic and conventional accounting is
in the business of providing information. The differences lie in the following:<o:p></o:p></span></p>
<p class="BodyText" style="line-height: normal; margin-bottom: 6.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l1 level1 lfo1; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-GB" style="font-family: Wingdings; layout-grid-mode: both; mso-ansi-language: EN-GB; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-GB" style="font-family: "Calibri",sans-serif; layout-grid-mode: both; mso-ansi-language: EN-GB; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 11.0pt; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Arial Unicode MS"; mso-hansi-theme-font: minor-latin;">The objectives of providing the
information <o:p></o:p></span></p>
<p align="left" class="BodyText" style="line-height: normal; margin-bottom: 6.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l1 level1 lfo1; tab-stops: list .5in; text-align: left; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-GB" style="font-family: Wingdings; layout-grid-mode: both; mso-ansi-language: EN-GB; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-GB" style="font-family: "Calibri",sans-serif; layout-grid-mode: both; mso-ansi-language: EN-GB; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 11.0pt; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Arial Unicode MS"; mso-hansi-theme-font: minor-latin;">What type of<span style="mso-spacerun: yes;"> </span>information is
identified,<span style="mso-spacerun: yes;"> </span>and how is it<span style="mso-spacerun: yes;"> </span><span style="mso-spacerun: yes;"> </span>measured
and valued, recorded and communicated, and<o:p></o:p></span></p>
<p class="BodyText" style="line-height: normal; margin-bottom: 6.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l1 level1 lfo1; tab-stops: list .5in; text-indent: -.25in;"><!--[if !supportLists]--><span lang="EN-GB" style="font-family: Wingdings; layout-grid-mode: both; mso-ansi-language: EN-GB; mso-bidi-font-family: Wingdings; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Wingdings;"><span style="mso-list: Ignore;">Ø<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span dir="LTR"></span><span lang="EN-GB" style="font-family: "Calibri",sans-serif; layout-grid-mode: both; mso-ansi-language: EN-GB; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 11.0pt; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Arial Unicode MS"; mso-hansi-theme-font: minor-latin;">To whom is it communicated (the
users)<o:p></o:p></span></p>
<p class="BodyText" style="line-height: normal; margin-bottom: 6.0pt;"><span lang="EN-GB" style="font-family: "Calibri",sans-serif; layout-grid-mode: both; mso-ansi-language: EN-GB; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 11.0pt; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Arial Unicode MS"; mso-hansi-theme-font: minor-latin;">Conventional accounting aims to permit informed
decisions by users, whose ultimate purpose is to efficiently allocate scarce
resources available to their most efficient (and profitable) uses by providing
information efficiency in the market (FASB, 1978). Apparently this is achieved
by the user making the appropriate, buy, sell or hold decisions on their
investments. Islamic Accounting, on the other hand, hopes to enable users to
ensure that Islamic organisations (whether business, government or NFP) abide
by the principles of the Shari’a or Islamic Law in its dealings and enables the
assessment of whether the objectives of the organisation are being met. At the
very basic level, it can be said that Islamic organisations (whether business or
otherwise) differ from their conventional counterparts by having to adhere to
certain Shari’a principles and rules and also try to achieve certain
socio-economic objectives encouraged by Islam.<o:p></o:p></span></p>
<p class="BodyText" style="line-height: normal; margin-bottom: 6.0pt;"><span lang="EN-GB" style="font-family: "Calibri",sans-serif; layout-grid-mode: both; mso-ansi-language: EN-GB; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 11.0pt; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Arial Unicode MS"; mso-hansi-theme-font: minor-latin;">Following from the above, the type of information
which Islamic accounting identifies and measures is different. Conventional
accounting concentrates on identifying economic events and transactions, while
Islamic accounting must identify socio-economic and religious events and
transactions. Older accountants may still remember when they<span style="mso-spacerun: yes;"> </span>first learnt accounting. They had to prepare
final accounts (i.e. balance sheet and profit and loss account). However,
Americanization of the curriculum has popularised the term financial statements.
Hence, the concentration of accounting has moved from stewardship based
manorial accounts to accounting for money (accentuated by the monetary
measurement concept). <o:p></o:p></span></p><p class="BodyText" style="line-height: normal; margin-bottom: 6.0pt;"><span lang="EN-GB" style="font-family: "Calibri",sans-serif; layout-grid-mode: both; mso-ansi-language: EN-GB; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 11.0pt; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Arial Unicode MS"; mso-hansi-theme-font: minor-latin;"><br /></span></p><p class="BodyText" style="line-height: normal; margin-bottom: 6.0pt;"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgdYuvd_q3Kuz3AqMEGbPrSFd-DNrWVYXjtru7OpEjendWwwihyphenhyphenA1IIZIHbr5YvvCVOGxJUU4t9B4BgoJKDUiFcTBchV-7ERgD3EVywPERxhuaSpq9vTfrHAYZytpuqmFp7B54uocLdCQo/s1154/finAdvisory.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1154" data-original-width="1154" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgdYuvd_q3Kuz3AqMEGbPrSFd-DNrWVYXjtru7OpEjendWwwihyphenhyphenA1IIZIHbr5YvvCVOGxJUU4t9B4BgoJKDUiFcTBchV-7ERgD3EVywPERxhuaSpq9vTfrHAYZytpuqmFp7B54uocLdCQo/w400-h400/finAdvisory.jpg" width="400" /></a></div><br /><span lang="EN-GB" style="font-family: "Calibri",sans-serif; layout-grid-mode: both; mso-ansi-language: EN-GB; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 11.0pt; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Arial Unicode MS"; mso-hansi-theme-font: minor-latin;"><br /></span><p></p>
<p class="BodyText" style="line-height: normal; margin-bottom: 6.0pt;"><span lang="EN-GB" style="font-family: "Calibri",sans-serif; layout-grid-mode: both; mso-ansi-language: EN-GB; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 11.0pt; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Arial Unicode MS"; mso-hansi-theme-font: minor-latin;">This is not to say that Islamic accounting is not
concerned with money (especially when accounting for businesses). On the
contrary due to prohibition of interest-based income or expense, profit
determination is more important in Islamic accounting than conventional
accounting. However, Islamic accounting must be holistic in its reporting.
Hence, both financial and non-financial measures regarding the economic,
social, environmental and religious events and transactions are measured and
reported.<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></p>
<p class="BodyText" style="line-height: normal; margin-bottom: 6.0pt;"><span lang="EN-GB" style="font-family: "Calibri",sans-serif; layout-grid-mode: both; mso-ansi-language: EN-GB; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 11.0pt; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Arial Unicode MS"; mso-hansi-theme-font: minor-latin;">Conventional accounting mainly uses historic cost
(or lower) to measure and values assets and liabilities (although the new IFRS
seeks to introduce fair value measurements). The profession is well aware of
the limitations of the stable unit of measure assumption of the monetary unit
and to its credit has tried in the past in its inflation accounting
initiatives. However, despite recommendation from its own research efforts
(True blood committee?), the idea of using current values was given up due to
its complexity and presumed lack of verifiability. From an Islamic point of
view, at least for the purpose of computation of Zakat, current valuation is
obligatory (see for example, Clarke et al, 1996) prompting calls for a current
value Balance Sheet (Baydoun and Willet, 2000).<o:p></o:p></span></p>
<p class="BodyText" style="line-height: normal; margin-bottom: 6.0pt;"><span lang="EN-GB" style="font-family: "Calibri",sans-serif; layout-grid-mode: both; mso-ansi-language: EN-GB; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 11.0pt; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Arial Unicode MS"; mso-hansi-theme-font: minor-latin;">A further difference is, Islamic accounting may
require a different statement altogether to deemphasize the focus on profits by
the income statement provided by conventional accounting. Baydoun and Willlet
(2000) have suggested a Value Added Statement to replace the Income Statement
in Islamic Corporate Reports. They argue that this shows and encourages a
cooperative environment in business as opposed to a destructive competitive
environment.<o:p></o:p></span></p>
<p class="BodyText" style="line-height: normal; margin-bottom: 6.0pt;"><span lang="EN-GB" style="font-family: "Calibri",sans-serif; layout-grid-mode: both; mso-ansi-language: EN-GB; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 11.0pt; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Arial Unicode MS"; mso-hansi-theme-font: minor-latin;">The third category of differences is in the users
of the information. Although the profession has recognised various stakeholders
as users of accounting information (see for example, the Corporate Report,
1975), the users which it focuses on are shareholders and creditors (i.e.
Financiers – those who provide the funds). This is obvious from the fact the
FASB’s SFAC 1 dismisses a whole range of stakeholders by the term “and others”.
From recent developments in finance and financial markets, accounting seems to
be serving an elite group of financiers – market players and banks and other
financial institutions. It has been accused of helping a group of rich people
get richer (Gray et al., 1996)- a grave charge since the profession always
justifies its monopoly on audit services by virtue of<span style="mso-spacerun: yes;"> </span>the public interest.<o:p></o:p></span></p><p class="BodyText" style="line-height: normal; margin-bottom: 6.0pt;"><span lang="EN-GB" style="font-family: "Calibri",sans-serif; layout-grid-mode: both; mso-ansi-language: EN-GB; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 11.0pt; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Arial Unicode MS"; mso-hansi-theme-font: minor-latin;"><br /></span></p><p class="BodyText" style="line-height: normal; margin-bottom: 6.0pt;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="367" src="https://www.youtube.com/embed/-IXZrp6HDTY" width="442" youtube-src-id="-IXZrp6HDTY"></iframe></div><br /><span lang="EN-GB" style="font-family: "Calibri",sans-serif; layout-grid-mode: both; mso-ansi-language: EN-GB; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 11.0pt; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Arial Unicode MS"; mso-hansi-theme-font: minor-latin;"><br /></span><p></p><p class="BodyText" style="line-height: normal; margin-bottom: 6.0pt;"><span lang="EN-GB" style="font-family: "Calibri",sans-serif; layout-grid-mode: both; mso-ansi-language: EN-GB; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 11.0pt; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Arial Unicode MS"; mso-hansi-theme-font: minor-latin;"><br /></span></p>
<p class="BodyText" style="line-height: normal; margin-bottom: 6.0pt;"><span lang="EN-GB" style="font-family: "Calibri",sans-serif; layout-grid-mode: both; mso-ansi-language: EN-GB; mso-ascii-theme-font: minor-latin; mso-bidi-font-size: 11.0pt; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Arial Unicode MS"; mso-hansi-theme-font: minor-latin;">Islamic accounting serves the whole gamut of
stakeholders. Society as a whole can make corporations accountable for their
actions and ensure they comply with Shari’a principles and do not harm others
while making money ethically and achieve an equitable allocation and
distribution of wealth among members of society especially the stakeholders of
the concerned corporation.<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-GB"><o:p> </o:p></span></p>Zia Ahmedhttp://www.blogger.com/profile/15251232944846705347noreply@blogger.com2tag:blogger.com,1999:blog-176427221984871817.post-19634690133878529992021-04-14T07:07:00.001-07:002021-04-14T07:07:29.743-07:00Diminishing Musharkah <p> </p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Diminishing <i>Musyarakah<o:p></o:p></i></span></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Diminishing <i>musyarakah </i>or <i>musyarakah mutanaiqisah </i>is
another form of <i>musyarakah </i>which was developed recently by the scholars.
It is a <i>musyarakah </i>in which the Islamic bank agrees to transfer
gradually to the other partner its (the Islamic bank’s) share in the <i>musyarakah,
</i>so that the Islamic bank’s share declines and the other partner’s share
increases until the latter becomes the sole proprietor of the venture.
According to this concept, a financier and his client participate either in the
joint ownership of a property or an equipment, or in a joint commercial
enterprise. The share of the financier is further divided into a number of
units and it is understood that the client will purchase the units of the share
of the financier one by one periodically, thus increasing his own share until
all the units of the financier are purchased by him so as to make him the sole
owner of the property or the commercial enterprise.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Diminishing <i>musyarakah </i>has taken different forms in
different transactions. Some examples are given below:<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">A. It has been used mostly in house financing. The client wants to
purchase a house for which he does not have adequate funds. He approaches the
financier who agrees to participate with him in purchasing the required house.
20 per cent of the price is paid by the client and 80 per cent of the price by
the financier. Thus the financier owns 80 per cent of the house while the
client owns 20 per cent. After purchasing the property jointly, the client uses
the house for his residential requirement and pays rent to the joint owner for
using their ownership in the property.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjcUdwN-3sk9WncAMnSrOM0cNlt-SKRktxqAQAXV7bXnVsWmrNDyaE8UNd7u2bFDC_Bj-PliIrs8cByox0VumHU8UgYWwsbRJ7ydPbhKKguiOnhgHdFT76sJFfVewYAa5MBnq8aCFFzVCE/s1080/Curiocity+and+Creativty.jpeg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1080" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjcUdwN-3sk9WncAMnSrOM0cNlt-SKRktxqAQAXV7bXnVsWmrNDyaE8UNd7u2bFDC_Bj-PliIrs8cByox0VumHU8UgYWwsbRJ7ydPbhKKguiOnhgHdFT76sJFfVewYAa5MBnq8aCFFzVCE/w400-h400/Curiocity+and+Creativty.jpeg" width="400" /></a></div><br /><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">At the same time, the share of the financier is further divided in
eight equal units, each unit representing 10 per cent ownership of the house.
The client promises to the financier that he will purchase one unit after three
months. Accordingly, after the first term of three months, he purchases one
unit of the share of the financier by paying 1/10th of the price of the house.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">It reduces the share of the financier from 80 per cent to 70 per
cent. Hence, the rent payable to the financier is also reduced to that extent.
At the end of the second term, he purchases another unit increasing his share
in the property to 40 per cent and reducing the share of the financier to 60
per cent and consequently reducing the rent by that proportion.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><br /></span></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="266" src="https://www.youtube.com/embed/rmafqlrOyLM" width="320" youtube-src-id="rmafqlrOyLM"></iframe></div><br /><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">This process goes on in the same fashion until after the end of
two years, the client purchases the whole share of the financier reducing the
share of the financier to ‘zero’ and increasing his own share to 100 per cent.
This arrangement, among other forms of diminishing partnership, allows the
financier to claim rent according to his proportion of ownership in the
property and at the same time allows him periodical returns of a part of his
principal through purchases of the units of his share. B. ‘A’ wants to purchase
a taxi to use it for offering transport services to passengers and to earn
income through fares received from them, but he is short of funds. ‘B’ agrees
to participate in the purchase of the taxi. Therefore, both of them purchase a
taxi jointly; 80 per cent of the price is paid by ‘B’ and 20 per cent is paid
by ‘A’. After the taxi is purchased, it is employed to provide transport the
passengers whereby the net income of 1000 ringgit is earned on a daily basis.
Since ‘B’ has 80 per cent share in the taxi it is agreed that 80 per cent of
the fare will be given to him and the remaining 20 per cent will be retained by
‘A’ who has a 20 per cent share in the taxi. It means that 800 ringgit is
earned by ‘B’ and 200 ringgit by ‘A’ on a daily basis. At the same time the
share of ‘B’ is further divided into eight units. After three months ‘A’
purchases one unit from the share of ‘B’. Consequently the share of ‘B’ is
reduced to 70 per cent and the share of ‘A’ is increased to 30 per cent, i.e.
from that date ‘A’ will be entitled to 300 ringgit from the daily income of the
taxi and ‘B’ will earn 700 ringgit. This process will go on until after the
expiry of two years, whereby the whole taxi will be owned by ‘A’ and ‘B’ will
take back his original investment along with income distributed to him as
aforesaid.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="266" src="https://www.youtube.com/embed/YrVvtYgg4pI" width="320" youtube-src-id="YrVvtYgg4pI"></iframe></div><br /><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Both the Buyer and the Bank will each contribute towards the
purchase of the home. For example, the Bank may contribute 90% and the Buyer
10% of the purchase price. Over a period of up to 25 years, the Buyer will make
monthly purchase installments through which the Bank will sell its share (90%)
of the home to buyer. With each payment installment, the Bank's share in the
property diminishes while the Buyer’s share correspondingly increases. While
the purchase installments are being made, the Bank will charge the Buyer rent
for the use of its share of the property, the rent being calculated according
to the respective number of shares owned.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="266" src="https://www.youtube.com/embed/OnmPp2NPUxk" width="320" youtube-src-id="OnmPp2NPUxk"></iframe></div><br /><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Many see this as little different from a conventional mortgage,
because, under both methods, monthly payments are made which may be similar in
amount. However, unlike a conventional mortgage, where money is lent to help
with the purchase of a property, the Bank makes its profit through the
property's physical use via buyer occupation as a tenant. This is one of the
fundamentals of Islamic finance whereby you can charge for the use of something
physical, like a property, but you cannot charge for the use of money, because
this is interest. The relationship between buyer and the Bank is also quite
different.<o:p></o:p></span></p>Zia Ahmedhttp://www.blogger.com/profile/15251232944846705347noreply@blogger.com0tag:blogger.com,1999:blog-176427221984871817.post-50813699425347035922021-03-31T06:57:00.001-07:002021-03-31T06:57:45.211-07:00Islamic Finance - Introduction to Istisna Contract<p> <b><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">Istisn’a</span></i></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">Istisna´a, </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">is a special kind of sale contract where a sale is
transacted before the goods come into existence. It is a contract culminating
in a sale at an agreed price, paid in advance, whereby the buyer places an
order for the manufacture, assembly or construction, items to be delivered at a
future date. The object of an </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">Istisna´a </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">contract
should not be an identified asset which is already in existence and immediately
available. The items must be specified to the extent of removing any ignorance,
doubt or lack of knowledge of their kind, type, quality and quantity. In </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">istisn’a
</span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">transactions the buyer cannot before taking possession (actual or
constructive) of the goods, sell or transfer ownership of the goods to any
other person or party. </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">Istisna´a </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">is invalid
for natural things or products that are not manufactured, such as animals,
corn, fruits, etc<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">It
is not necessary that the seller should be the manufacturer of the goods. The
seller may enter into a contract with a third party to manufacture the goods
specified in the </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">Istisna´a </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">contract.
On this basis, banks may undertake financing based on </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">Istisna´a</span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;"> by getting
the subject of </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">istisna´a </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">manufactured
through another such contract. Thus, Islamic banks can serve both as
manufacturers and purchasers (see section on </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">parallel istisna’a</span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">). </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">Istisna´a
</span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">can be used to provide the facility for financing the manufacture of
goods or the construction of houses, plants, projects, bridges, roads, and
highways, etc. The </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">istisna´a </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">contract
can also be drawn-up for real estate developments on designated land owned
either by the purchaser or the contractor, or on land in which either of them
owns the usufruct. It involves the construction of specified buildings that
will be built and sold according to specifications and, in this case, the
contract of </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">istisna´a</span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;"> does not specify a particular, identified place. <o:p></o:p></span></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;"><br /></span></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="266" src="https://www.youtube.com/embed/YrVvtYgg4pI" width="320" youtube-src-id="YrVvtYgg4pI"></iframe></div><br /><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;"><br /></span><p></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;"><br /></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">Where
</span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">Istisna´a </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">is used in manufacturing, the manufacturer will
arrange the procurement of the materials for both manufacture and labour. If
the materials for manufacture are supplied by the buyer and the manufacturer is
required only to provide the labour and expertise, then it will be considered
as a contract of </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">ujrah </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">(the financial charge, such as
the agreed wage /remuneration, for using services and not of </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">istisna´a
</span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">where the material required also has to be provided by the
manufacturer).<span style="mso-spacerun: yes;"> </span>It is not always
necessary in </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">istisna´a </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">for the
full price to be paid in advance (unlike in </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">salam, </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">where spot
payment of the price is necessary). The price may be paid in instalments within
a fixed time period. Against the general rule applicable for </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">salam</span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">, the
contemporary Islamic scholars have legalised instalment payments in </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">istisna’a</span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;"> based on </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">istihsan
</span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">(juristic "preference” over strict analogy.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">The
buyer in </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">istisna´a </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">is not regarded as the owner of the materials in
the possession of the manufacturer for the purpose of producing the object of </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">istisna’a
</span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">contract, unless the manufacturer has previously guaranteed that such
materials will only be utilised to fulfil the contract with the buyer. This
form of guarantee will only be enforced in the event that the manufacturer has
requested the buyer to pay part of the price in advance for acquiring some of
the materials needed.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">Potential of <i>Istisna´a<o:p></o:p></i></span></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">Islamic
banks can use </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">istisna</span></i><b><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">´</span></i></b><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">a </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">for manufacturing
high technology goods such as aircrafts, ships, buildings, dams, high ways,
etc. It can also be used for housing, export financing and meeting working
capital requirements in industries where sale orders are received in advance.
The potential areas for the application of </span><i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial-ItalicMT;">istisna’a </span></i><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">are
indicated below:<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;"><br /></span></p><p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="266" src="https://www.youtube.com/embed/OnmPp2NPUxk" width="320" youtube-src-id="OnmPp2NPUxk"></iframe></div><br /><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: SymbolMT;">•
</span><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">To
finance the construction of buildings, factories, hospitals, schools and
universities.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: SymbolMT;">•
</span><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">Housing
finance schemes<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: SymbolMT;">•
</span><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">To
finance high technology industries such as the aircraft, locomotive and shipbuilding
industries, and the various types of machines produced in big factories or
workshops.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: SymbolMT;">•
</span><span style="font-family: "Verdana",sans-serif; mso-bidi-font-family: Arial;">To
finance various industries where their productions can be monitored by
measurement and specifications, such as in the food processing industry.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-bottom: 6.0pt;"><span style="font-family: "Verdana",sans-serif;"><o:p> </o:p></span></p>Zia Ahmedhttp://www.blogger.com/profile/15251232944846705347noreply@blogger.com1tag:blogger.com,1999:blog-176427221984871817.post-15204687760976883882021-03-22T10:21:00.000-07:002021-03-22T10:21:16.354-07:00Islamic Leasing Finance Structure - Ijara<p> Ijara Financing</p><p></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; tab-stops: 2.55in; text-autospace: none;"><b><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;">Ijarah Financing<span style="mso-tab-count: 1;"> </span><o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><i><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;">Ijarah </span></i><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;">has huge potential as a financing mode for Islamic
banks. It can be used for meeting the needs of retail, corporate and the public
sectors and can also play a crucial role in promoting Islamic finance industry.
Leasing is an attractive mode of investment for Islamic banks for the following
reasons:<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;">a) Assets acquired under these contracts are
usually of high quality, marketable, maintain their market value well above
book value, are movable and are easily disposable for cash in case of default.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;">b) Because of the good quality of the asset, the
bank, as lessor, does not have to depend so much on the creditworthiness of the
lessee, since it always has the recourse of selling the asset in case of
default.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;">c) It is possible for the banks to get variable and
floating return on long term investments. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><i><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;">Ijarah </span></i><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;">can be used directly for plants a machinery, autos,
housing and consumer durables and indirectly for <i>sukuk </i>issues by the
corporate and the government sectors. It can be used to develop different
contracts and <i>sukuk </i>that may suit different purposes of issuers and the <i>sukuk
</i>holders. Public and private sector corporations can use the securitisation
on the basis of <i>ijarah </i>as alternative tool to interest based borrowing
provided they have durable and useable assets. Ijarah is conducive to the
formation of fixed assets and medium and long-term investments in an economy. <i>Ijarah
Sukuk </i>will be discussed in detail in the Module on Treasury and Capital
Market Operations dealing with Islamic Financial Markets.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;"><br /></span></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="266" src="https://www.youtube.com/embed/OnmPp2NPUxk" width="320" youtube-src-id="OnmPp2NPUxk"></iframe></div><br /><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;">Leasing and investment<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;">As an asset-based lending is a permitted form of
debt-financing in Islam, <i>ijarah </i>provides an alternative to
interest-based investment in assets for the Islamic banks.<i> </i>The goods in
which the investment is to be made are not purchased by the actual<i> </i>user,
but by the bank or a finance company, and are made available to the<i> </i>contracting
partner for commercial use subject to payment of a lease rental which is<i> </i>the
investment return. This form of financing offers Islamic banks various
benefits,<i> </i>such as:<i><o:p></o:p></i></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: SymbolMT;">• </span><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;">Secured investment, thus reducing credit risks.
Because of the good quality of the asset, the bank does not have to depend so
much on the creditworthiness of the lessee client, since it always has the
recourse of selling the asset in case of default.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: SymbolMT;">• </span><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;">Assets acquired are usually of high quality,
marketable, maintain their market value well above the book value, are moveable
and are easily disposable for cash in case of default.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;"><br /></span></p><p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="266" src="https://www.youtube.com/embed/YrVvtYgg4pI" width="320" youtube-src-id="YrVvtYgg4pI"></iframe></div><br /><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: SymbolMT;">• </span><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;">Although it is a longer-term financing instrument,
a leasing contract can be reviewed periodically. The financing party thus not
tied down to a fixed return that may not be in its investment goals. The rent
can be tied to any type of index agreed to.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: SymbolMT;">• </span><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;">Clear basis of calculation returns over the term of
the lease period<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: SymbolMT;">• </span><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;">Scope for new investments<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: SymbolMT;">• </span><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;">Tax benefits for both parties<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;">Islamic banks are able to offer leasing
certificates to their depositor clients as specific investment certificates as
a form of declining equity. Lease payments include two elements: capital
repayments and profit. If both of these are refunded to the certificate holder,
net of bank costs, the depositor client recoups part of the capital (the
client’s deposit) as the lease gets closer to the end of its term. But it is
possible to design certificates which pay the holder dividends only; so that
the bank can reinvest the incoming capital repayments in other lease contracts.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: "Arial Narrow",sans-serif;"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><i><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;">Ijarah Muntahia-bi-tamleek </span></i></b><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;">(<b><i>Ijarah
wal Iqtina</i></b>) <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><i><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;">Ijarah Munahia-bi-tamleek (Ijarah-wa-iktana) </span></i><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;">is
variation of the leasing method and similar to <i>ijarah </i>except that,
included in the contract, is a promise from the lessee to buy the leased asset
at a pre-agreed price; rentals paid during the lease term constitute part of
the purchase price and the final sale being for a token sum. <i>Ijarah</i>
shares many common features with lease financing and operating lease /
hirepurchase arrangements. It involves a lessor (usually a financial
institution) purchasing an asset and renting it to a lessee for a specific time
period at an agreed rental and at the end of the lease period transferring the
ownership of the asset to the lessee.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;">Islamic banks are using <i>Ijarah
Muntahia-bi-tamleek </i>as an alternative to a hire purchase and finance lease.
It is an arrangement in which leasing is the real and the major contract that
is subject to all rules of an ordinary operating <i>ijarah </i>contract where
the standard <i>Shari´ah </i>principles of lease, its terms and essential
prerequisites of the contract have to be observed. The transfer of the asset
ownership to the lessee at the end of the lease term is kept separate. It does
not comprise two contracts in one bargain; rather, the real bargain is only one
whereby the lessor leases the asset and fixes the rentals in such a way that
during the lease period the repayment of the cost of the asset and the rental
for leasing the asset are received.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;">Both parties agree on this nature of the
transaction; and the other part of the deal is only a unilateral promise not
binding on the promissee and as such it is not a transaction until actually
entered into by the parties. Further, this arrangement is fair and based on
justice for both the parties in that the lessee, who has paid the cost along
with the rentals, is able to get ownership title of the asset at the end of the
lease period, while the lessor recovers cost of the leased asset and also the
profit in the form of rentals. However, the lessee is under an obligation to
buy the asset at the end of the lease term.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;">As owner of the asset, the bank should take out <i>takaful
</i>cover to insure the leased assets. Islamic banks normally include the <i>takaful
</i>expenses in acquisition cost of the asset for determining the rental. <i>Shari´ah
</i>scholars allow this on the ground that rentals in leases are subject to
mutual consent of the two parties and if the lessee agrees to the amount of
rental, the contract would be acceptable from a <i>Shari´ah</i> perspective. As
regards the insurable interest, it rightly belongs to the bank as lessor.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;">However, the AAOIFI recommends that in case the
transfer of ownership becomes impossible without any cause attributable to the
lessee (the client), the lessee must be protected from the loss by the lessor
paying to the lessee (client) the difference between the rent received as per
the lease agreement and the market rentals of such assets.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;">If the asset is destroyed, and there is proof for
lack of observance of the conditions of the <i>takaful </i>policy that bars the
bank as lessor from recovery of an insurance claim from the <i>takaful </i>company,
the lessee client is held liable. In the absence of any fault or negligence on
the part of the lessee client, the bank bears all responsibility for damage to
or loss of the leased asset. If the claim paid by the <i>takaful </i>company is
less than the loss incurred by Islamic bank, the uncovered loss cannot be
charged to the lessee and the bank would bear the loss.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;">In this way, Islamic banks and financial
institution have tried to transform the conventional lease structure to make it
<i>Shari´ah </i>compliant. The arrangement, broadly speaking, comprises two
contracts entered into at different times: One contract is an ordinary lease
contract, where the <i>Shari´ah </i>principles of defining the asset to be
leased, its terms and essential prerequisites of contracts are observed. The
lessee pays, in addition to the rental, a sum which goes towards buying the
leased property.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: 150%; margin-top: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="font-family: "Arial Narrow",sans-serif; mso-bidi-font-family: Arial;">The other subsequent contract is a contract for
gift or sale of the leased asset at the end of the lease period and is
independent of the earlier lease contract. Although the rentals to be stipulated
in the lease agreements have to be clearly known and fixed, but the actual and
net rental income of the banks might not be fixed and predetermined. The <i>Shari´ah
</i>principle is that risk cannot be separated from ownership; hence, as the
leased asset remains in bank’s ownership, the bank must remain liable for the
asset. Furthermore, the lease and sale transactions are contracts of two
different nature; they must be kept separate and independent of each other to
avoid the prohibition of two inter-dependent / conditional contracts that also
has the connotation of a sale and buy back arrangement. If the above two
aspects are taken care of, the Islamic banks can adopt any procedure for
leasing the assets, mitigating the risks and transferring ownership to the lessee
through any of the approved methods.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family: "Arial Narrow",sans-serif;"><o:p> </o:p></span></p><br /><p></p>Zia Ahmedhttp://www.blogger.com/profile/15251232944846705347noreply@blogger.com0tag:blogger.com,1999:blog-176427221984871817.post-68382977240212962772021-03-10T05:13:00.003-08:002021-03-10T05:13:49.742-08:00Jobs and Employment in United Kingdom London<p> <span style="background-color: #f9f9f9; color: #030303; font-family: Roboto, Arial, sans-serif; font-size: 14px; white-space: pre-wrap;">Immigration and Employment Opportunity in United Kingdom, London</span></p><span class="style-scope yt-formatted-string" dir="auto" style="background: rgb(249, 249, 249); border: 0px; color: #030303; font-family: Roboto, Arial, sans-serif; font-size: 14px; margin: 0px; padding: 0px; white-space: pre-wrap;">
United Kingdom is going through multiple challenges simultaneously. This is happening almost after a century. Last time UK faced challenges of similar magnitude was in First World War. Now UK is at the cross road of history.
Two major incidence has happened simultaneously which has change UK completely.
1. Brexit
2. Covid-19
UK a developed economy and world’s second biggest market is facing challenges from all sides. The Brexit and covide-19 has impacted it.
1. More than 1.4 million people left UK in last one year, most of them permanently.
2. 700,000 people left London.
UK has another problem, and that is ageing. UK needs new age Value drivers for economy who will keep UK growing and helping the ageing population.</span><div><span class="style-scope yt-formatted-string" dir="auto" style="background: rgb(249, 249, 249); border: 0px; color: #030303; font-family: Roboto, Arial, sans-serif; font-size: 14px; margin: 0px; padding: 0px; white-space: pre-wrap;"><br /></span></div><div><span class="style-scope yt-formatted-string" dir="auto" style="background: rgb(249, 249, 249); border: 0px; color: #030303; font-family: Roboto, Arial, sans-serif; font-size: 14px; margin: 0px; padding: 0px; white-space: pre-wrap;"><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="266" src="https://www.youtube.com/embed/FlnU_9QBCzU" width="320" youtube-src-id="FlnU_9QBCzU"></iframe></div><br />
The Knowledge driven economy is facing Threat and Challenge not seen in last 100 Years.
This has created huge scarcity of right skilled Human Resources.
1. Less than 1% in agriculture
2. 16% manufacturing
3. 70% in services
Financial Sector, Tourism, Research and Information Technology
UK suffers worst annual economic slump since the Great Frost of 1709, a 9.9% decline
There is need of new age value drivers for the economy, with Europe borders closed and new immigrations rules implemented this is right time to enter UK
How to enter
1. Best Opportunity is Higher Education with scholarships, specially in Pure Sciences and Information Technology will be best sectors.
2. Healthcare, wellness, home care
3. Skilled worker’s IT
4. Agriculture Labor
5. Hospitality and Retail
6. Financial Sector
There will be huge gap for rightly skilled people in UK
Get ready to move to the UK
</span><a class="yt-simple-endpoint style-scope yt-formatted-string" dir="auto" href="https://www.youtube.com/hashtag/unitedkingdom" spellcheck="false" style="background-color: #f9f9f9; cursor: pointer; display: var(--yt-endpoint-display, inline-block); font-family: Roboto, Arial, sans-serif; font-size: 14px; text-decoration: var(--yt-endpoint-text-regular-decoration, none); white-space: pre-wrap;">#UnitedKingdom</a><span class="style-scope yt-formatted-string" dir="auto" style="background: rgb(249, 249, 249); border: 0px; color: #030303; font-family: Roboto, Arial, sans-serif; font-size: 14px; margin: 0px; padding: 0px; white-space: pre-wrap;"></span><span class="style-scope yt-formatted-string" dir="auto" style="background: rgb(249, 249, 249); border: 0px; color: #030303; font-family: Roboto, Arial, sans-serif; font-size: 14px; margin: 0px; padding: 0px; white-space: pre-wrap;"> </span><a class="yt-simple-endpoint style-scope yt-formatted-string" dir="auto" href="https://www.youtube.com/hashtag/london" spellcheck="false" style="background-color: #f9f9f9; cursor: pointer; display: var(--yt-endpoint-display, inline-block); font-family: Roboto, Arial, sans-serif; font-size: 14px; text-decoration: var(--yt-endpoint-text-regular-decoration, none); white-space: pre-wrap;">#London</a><span class="style-scope yt-formatted-string" dir="auto" style="background: rgb(249, 249, 249); border: 0px; color: #030303; font-family: Roboto, Arial, sans-serif; font-size: 14px; margin: 0px; padding: 0px; white-space: pre-wrap;"></span><span class="style-scope yt-formatted-string" dir="auto" style="background: rgb(249, 249, 249); border: 0px; color: #030303; font-family: Roboto, Arial, sans-serif; font-size: 14px; margin: 0px; padding: 0px; white-space: pre-wrap;"> </span><a class="yt-simple-endpoint style-scope yt-formatted-string" dir="auto" href="https://www.youtube.com/hashtag/employment" spellcheck="false" style="background-color: #f9f9f9; cursor: pointer; display: var(--yt-endpoint-display, inline-block); font-family: Roboto, Arial, sans-serif; font-size: 14px; text-decoration: var(--yt-endpoint-text-regular-decoration, none); white-space: pre-wrap;">#Employment</a><span class="style-scope yt-formatted-string" dir="auto" style="background: rgb(249, 249, 249); border: 0px; color: #030303; font-family: Roboto, Arial, sans-serif; font-size: 14px; margin: 0px; padding: 0px; white-space: pre-wrap;"></span><span class="style-scope yt-formatted-string" dir="auto" style="background: rgb(249, 249, 249); border: 0px; color: #030303; font-family: Roboto, Arial, sans-serif; font-size: 14px; margin: 0px; padding: 0px; white-space: pre-wrap;"> </span><a class="yt-simple-endpoint style-scope yt-formatted-string" dir="auto" href="https://www.youtube.com/hashtag/jobs" spellcheck="false" style="background-color: #f9f9f9; cursor: pointer; display: var(--yt-endpoint-display, inline-block); font-family: Roboto, Arial, sans-serif; font-size: 14px; text-decoration: var(--yt-endpoint-text-regular-decoration, none); white-space: pre-wrap;">#Jobs</a><span class="style-scope yt-formatted-string" dir="auto" style="background: rgb(249, 249, 249); border: 0px; color: #030303; font-family: Roboto, Arial, sans-serif; font-size: 14px; margin: 0px; padding: 0px; white-space: pre-wrap;"></span><span class="style-scope yt-formatted-string" dir="auto" style="background: rgb(249, 249, 249); border: 0px; color: #030303; font-family: Roboto, Arial, sans-serif; font-size: 14px; margin: 0px; padding: 0px; white-space: pre-wrap;"> </span><a class="yt-simple-endpoint style-scope yt-formatted-string" dir="auto" href="https://www.youtube.com/hashtag/covid" spellcheck="false" style="background-color: #f9f9f9; cursor: pointer; display: var(--yt-endpoint-display, inline-block); font-family: Roboto, Arial, sans-serif; font-size: 14px; text-decoration: var(--yt-endpoint-text-regular-decoration, none); white-space: pre-wrap;">#Covid</a><span class="style-scope yt-formatted-string" dir="auto" style="background: rgb(249, 249, 249); border: 0px; color: #030303; font-family: Roboto, Arial, sans-serif; font-size: 14px; margin: 0px; padding: 0px; white-space: pre-wrap;"></span><span class="style-scope yt-formatted-string" dir="auto" style="background: rgb(249, 249, 249); border: 0px; color: #030303; font-family: Roboto, Arial, sans-serif; font-size: 14px; margin: 0px; padding: 0px; white-space: pre-wrap;"> </span><a class="yt-simple-endpoint style-scope yt-formatted-string" dir="auto" href="https://www.youtube.com/hashtag/brexit" spellcheck="false" style="background-color: #f9f9f9; cursor: pointer; display: var(--yt-endpoint-display, inline-block); font-family: Roboto, Arial, sans-serif; font-size: 14px; text-decoration: var(--yt-endpoint-text-regular-decoration, none); white-space: pre-wrap;">#Brexit</a></div>Zia Ahmedhttp://www.blogger.com/profile/15251232944846705347noreply@blogger.com0tag:blogger.com,1999:blog-176427221984871817.post-39172957408611577532021-03-10T03:54:00.000-08:002021-03-10T03:54:17.101-08:00Islamic Finance Different Methods<p> </p><p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><i style="mso-bidi-font-style: normal;"><span style="color: blue; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Mode
of Financing by Islamic Banks<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">The selection of mode in Islamic financing depends upon the
nature, purpose and size of the transactions involved, essentially these are:<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">a) Selling on profit: This mode implies the purchase of goods by
banks and their sale to clients at appropriate mark-up in price on deferred
payment basis, without levy of mark-up on mark-up; it encompasses the purchase
of a property by banks from their clients with a buy-back agreement.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">b) Shared-risk financing and sharing of profit and loss: This mode
implies the sharing profit and the risk of loss among the investors, i.e. the
bank on the one hand and the client on the other hand.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">c) Renting of assets (leasing)<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">d) Benevolent Loans<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">The modes which are closest to the spirit of Islamic finance are <i>Musharakah
</i>(shared risk partnership or joint venture) with <i>Mudarabah </i>(profit-and-loss-sharing,
also a form of partnership). However, some practical difficulties which had
sometimes hindered their application and adoption led <i>Shari’ah </i>scholars
to allow the use of other modes such as <i>ijarah </i>(leasing), and <i>murabaha
</i>(cost plus mark-up). These latter modes are comparatively easy to
understand and apply, however the mark-up in <i>murabaha </i>and lease rental
in <i>ijara </i>suffer from having a resemblance to some of the conventional
banking interest-bearing products. <i>Shari’ah </i>advisors have expressed a
desire to encourage the use of products based on the concepts of <i>musharakah </i>and
<i>mudarabah </i>as early as possible.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Debt Type Instruments include:<o:p></o:p></span></b></p>
<p class="StyleHeading2VerdanaBlackLinespacing15lines" style="margin-bottom: 6.0pt; mso-list: l0 level1 lfo1;"><!--[if !supportLists]--><span style="color: blue; font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span dir="LTR"></span><b style="mso-bidi-font-weight: normal;"><i><span style="color: blue; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Murabaha
</span></i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="color: blue; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">(cost-plus profit mark-up)<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">In its simplest form, <i>murabaha</i>, is a trading mode and
refers to a purchase and resale transaction involving an asset whereby the cost
of the purchase and profit margin (mark-up) on the resale is known and the
mark-up agreed by the parties involved. Another general and regular kind of
sale is <i>musawamah</i>, in which the price of goods to be traded is
negotiated between seller and buyer. <i>Musawamah </i>is usually used where the
seller is not in a position to ascertain precisely the costs of commodities offered
for sale or does not want to disclose the cost price; all other conditions
relevant to <i>murabaha </i>are valid for <i>musawamah </i>as well.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Under <i>murabaha</i>, the Islamic bank purchases, in its own
name, goods from a third party (the supplier/seller) that are required by their
clients, and then re-sells the goods to their clients, on spot or deferred
payment, with an pre-determined mark-up.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">The difference between the bank’s purchase cost and its sale price
forms the profit available to the Islamic bank on this transaction. The
ownership of the goods being sold to a client at a mark-up price on deferred
payment terms remains with the bank.<o:p></o:p></span></p>
<p class="StyleHeading2VerdanaBlackLinespacing15lines" style="margin-bottom: 6.0pt; mso-list: l0 level1 lfo1;"><!--[if !supportLists]--><span style="color: blue; font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span dir="LTR"></span><b style="mso-bidi-font-weight: normal;"><i><span style="color: blue; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Salam
</span></i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="color: blue; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">(advance payment for goods)<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><i><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Salam </span></i><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">is a trading mode allows a buyer to make payment in
advance for goods to be delivered on a specified future date at an agreed
price. <i>Salam </i>is also defined as a forward purchase of specified goods
for assets or a full forward payment (i.e. a forward contract). In normal
circumstances, a sale cannot be affected unless the goods / assets are in existence
at the time of the bargain. However, this type of sale is an exception,
provided the goods / assets are defined and the date of delivery is fixed. The
objects of the sale must be tangible goods/ assets that can be defined as to
quantity, quality and workmanship<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b style="mso-bidi-font-weight: normal;"><i><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><o:p> </o:p></span></i></b></p>
<p class="StyleHeading2VerdanaBlackLinespacing15lines" style="margin-bottom: 6.0pt; mso-list: l0 level1 lfo1;"><!--[if !supportLists]--><span style="color: blue; font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span dir="LTR"></span><b style="mso-bidi-font-weight: normal;"><i><span style="color: blue; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Istisna’a
</span></i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="color: blue; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">(contract to manufacture)<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><i><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Istisna’a </span></i><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">is a trading mode where specific goods or an asset is
made against a purchase order for delivery at a specified future date. An order
to manufacture goods or assets requires various expenses including expenditures
on raw materials, utilities, labour, and direct and indirect over-heads; these
types of expenses may not be suited to <i>murabaha </i>financing which is
primarily focused on the trade in commodities.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">As a mode of finance, Islamic banks frequently use <i>istisna'a </i>to
finance construction projects that may also involve the manufacturing of
industrial equipment and various capital goods. Under this mode, the client
will request and the bank will agree to construct and to sell the project to be
constructed at the bank’s selling price (cost plus profit margin) on deferred
payment terms and thereafter the bank will request another party (a contractor)
to construct the project and the bank will purchase the project to be
constructed at the bank’s purchase price (cost price/facility amount).<o:p></o:p></span></p>
<p class="StyleHeading2VerdanaBlackLinespacing15lines" style="margin-bottom: 6.0pt; mso-list: l0 level1 lfo1;"><!--[if !supportLists]--><span lang="FR" style="color: blue; font-family: "Courier New"; mso-ansi-language: FR; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font: 7.0pt "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span lang="FR" style="color: blue; font-family: "Calibri",sans-serif; mso-ansi-language: FR; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Tawarruq
(Reverse Murabaha)<span style="mso-spacerun: yes;"> </span>Bai Al Ajel<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><i><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Tawarruq </span></i><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">as an Islamic banking product is a recent
introduction. It may be considered as a reverse form of commodity <i>murabahah</i>.
<i>Tawarruq </i>is a debt instrument that many <i>Shari’ah </i>scholars have
approved allowing Islamic banks another way financing individuals and
businesses in need of cash or liquidity without contravening the rules of the <i>Shari’ah</i>.
Under a <i>tawarruq </i>contract, Islamic banks sell any saleable goods or
assets a client on deferred payment at cost plus profit, and the customer then
sells the goods or the asset on a spot basis to a third party for cash.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">There is a view that <i>tawarruq </i>is prohibited because the
structuring resembles <i>bai` `inah, </i>a mode used in Malaysia, whereby an
Islamic bank and a client (in need of<i> </i>cash) enter into a transaction
between themselves involving a buy-back<i> </i>arrangement. It involves the
bank buying goods or an asset from a client for<i> </i>immediate cash and then
selling it back immediately same client for a higher amount<i> </i>on deferred
payment.<i><o:p></o:p></i></span></p>
<p class="StyleHeading2VerdanaBlackLinespacing15lines" style="margin-bottom: 6.0pt; mso-list: l0 level1 lfo1;"><!--[if !supportLists]--><span style="color: blue; font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span dir="LTR"></span><b style="mso-bidi-font-weight: normal;"><i><span style="color: blue; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Qard
Hasan </span></i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="color: blue; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">(Benevolent Loan)<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><i><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Qard Hasan </span></i><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">is a non-interest bearing loan or benevolent loan that
may not collateralised. It refers to a loan given by a person (the lender) to
another (the borrower) without any expectation of any return for the use of the
funds. The borrower is obliged to only repay the original amount to the lender
within the agreed stipulated period of time. The borrower can pay more than the
amount borrowed so long as it is not required by the contract. <i>Qard Hasan </i>is
granted on compassionate grounds free of interest and/or service charge. It is
repayable as and when the borrower is able to repay. Under this mode of
financing many Islamic banks are providing <i>Qard Hasan </i>to clients who are
in need, for example for education and medical treatment. Other Islamic banks
give interest-free loans only to the holders of investment accounts with them;
some extend <i>Qard Hasan </i>to all the bank’s clients; some banks restrict
the loans other economically weaker sections of society; and some provide
interest-free loans to small producers, farmers and entrepreneurs who are
unable to obtain finance from other sources. <i>Qard Hasan </i>is also in
Islamic microfinance.<o:p></o:p></span></p><p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><br /></span></p><p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhEVUFJb3VYSu8rhds6YUIEaXUPzFigOWGRLYTBhES5BRMQExLQcxulGVXzTsL-JOFutSQyYtW6i34CEdEHWRpHHDGS0uuDd647GkAk-9i8j8BAJLxCbO1KE5xQwiBu8qaYvJgxNBEJ1-I/s1600/Money+Scam.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="900" data-original-width="1600" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhEVUFJb3VYSu8rhds6YUIEaXUPzFigOWGRLYTBhES5BRMQExLQcxulGVXzTsL-JOFutSQyYtW6i34CEdEHWRpHHDGS0uuDd647GkAk-9i8j8BAJLxCbO1KE5xQwiBu8qaYvJgxNBEJ1-I/s320/Money+Scam.png" width="320" /></a></div><br /><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><br /></span><p></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><i style="mso-bidi-font-style: normal;"><span style="color: maroon; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Quasi
- Debt Type Instruments include:<o:p></o:p></span></i></b></p>
<p class="StyleHeading2VerdanaBlackLinespacing15lines" style="margin-bottom: 6.0pt; mso-list: l0 level1 lfo1;"><!--[if !supportLists]--><span style="color: blue; font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span dir="LTR"></span><b style="mso-bidi-font-weight: normal;"><i><span style="color: blue; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Ijarah
</span></i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="color: blue; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">(leasing)<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><i><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Ijarah </span></i><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">is one of the simplest asset-based financial
instruments. Under Islam, leasing began as a trading activity and then much
later became a mode of finance. As a mode of finance, under an <i>ijarah </i>contract,
the Islamic bank purchases an asset or equipment at the request of a client and
leases / rents it to the client a price that includes a fair return for the
bank. The lease contract specifies the leasing period, the amount and timing of
lease payments and the responsibilities of both parties during the life of the
lease. Lease can be simple rental or more elaborate contractual arrangements
committing the parties to future action. The bank can, by agreement with the
client, re-negotiate the quantum of the lease payment at agreed intervals.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">The risk in <i>Ijarah </i>principally revolves around the fact
that the Islamic bank is the owner of the asset / equipment being financed.
This ownership is helpful from the point of view that there is comfort for the
bank who may rely more on the high quality of an asset than the credit risk of
the client, which allows a client of relatively weak credit rating to obtain
Ijarah financing.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Under the standard <i>ijarah </i>contract, the client does not
normally have the option to purchase the leased asset in instalments but may
purchase the asset at the end of the lease period. Subject to fulfillment of
certain condition, this object may be achieved by means similar to a hire
purchase agreement, known as an <i>ijara wa</i> <i>iqtina </i>(equivalent to a
leasing and instalment loan), whereby each lease rental payment includes a
portion of the agreed asset price and can be made for a term covering the
asset's expected life. The optional purchase price declines over the period of
the lease agreement, but as the client is not obliged to purchase, the<o:p></o:p></span></p><p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiYB00ozbO6zuPTa2G49-ml2SGpxm6Ce8UXpTBmJKmMVJfXXmiDtRhdViqkWyiVIFKyTvfesnVVFH5VSan3SokqHAnVY8Jl8OTzEg6qLJ437SSLHXJu8wj6RDwBYWj5cpsfvrf5cgUQuP8/s1080/Crypto+-+1.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1080" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiYB00ozbO6zuPTa2G49-ml2SGpxm6Ce8UXpTBmJKmMVJfXXmiDtRhdViqkWyiVIFKyTvfesnVVFH5VSan3SokqHAnVY8Jl8OTzEg6qLJ437SSLHXJu8wj6RDwBYWj5cpsfvrf5cgUQuP8/s320/Crypto+-+1.png" /></a></div><br /><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><br /></span><p></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b><i style="mso-bidi-font-style: normal;"><span style="color: maroon; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Profit-And-Loss-Sharing
Instruments include:<o:p></o:p></span></i></b></p>
<p class="StyleHeading2VerdanaBlackLinespacing15lines" style="margin-bottom: 6.0pt; mso-list: l0 level1 lfo1;"><!--[if !supportLists]--><span style="color: blue; font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span dir="LTR"></span><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="color: blue; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Musharakah | Diminishing Mushrakah (partnership or joint venture)<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><i><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Musharakah </span></i><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">implies an arrangement of business or its financing
based on the concept of profit-and-loss sharing in which all parties contribute
capital or labour skills or a combination of all three in a venture. The profit
of the venture can be shared in any agreed proportion but any loss is shared in
strict proportion to the capital contributed by each party. As a participatory
mode with profit-and-loss sharing <i>musharakah </i>is considered to be the
most desired mode of Islamic financing.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">It a form on equity participation and also widely regarded as the
purest form of an Islamic financial contract, conforming to the underlying
partnership principles of sharing in, and benefiting from, risk. All key <i>Shari’ah
</i>essentials are promoted in a <i>musharakah </i>contract, such as<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">(a) Absence of profit<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">(b) Sharing in the risk<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">(c) Sharing in the profit-and-loss (profits can be divided up in
any agreed ratio, while losses must be shared in strict proportion the
investment)<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">(d) Direct link between capital investment and underlying
asset-backed transactions<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">As a form of financing, an Islamic bank enters into a partnership
with a client in which both invest in the equity capital required to finance a
transaction or project, perhaps even participate in the management ; both share
in the profits according to a pre-determined basis or in losses according to
their investment. As such, <i>musharakah </i>is an equity participation
arrangement which works like a partnership, normally for a limited duration. It
can be conveniently adopted by Islamic banks for single transactions. <i>Musharakah
</i>may also be adopted to finance new projects, or to provide additional
funding for existing ones.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="color: blue; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">A variant of the <span style="mso-bidi-font-style: italic;">musharakah
</span>is <span style="mso-bidi-font-style: italic;">Diminishing Musharakah </span>(DM).</span></i></b><b style="mso-bidi-font-weight: normal;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"> <o:p></o:p></span></b></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b style="mso-bidi-font-weight: normal;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">The
DM arrangements, as in the case of</span></b><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"> <i>musharakah</i>, allow equity participation and
sharing of profits on a pro-rata basis, but also provide a method through which
the bank keeps on reducing its equity in an asset against periodical payments,
ultimately transferring ownership of the asset to the client. Over and above
the payment against the bank’s share in the equity held by the bank, the client
also makes rental payments based on the level of equity held by the bank, with
each payment, the bank’s equity reduces followed by a reduction in the rental
calculated on the reducing equity. Thus, by the capital repayments the client
purchases the bank’s equity, progressively increasing the client’s equity and
reducing (diminishing) the bank’s equity until the bank has no equity and thus
ceases to be a partner and the client has acquired complete ownership.
Likewise, the rental payments to the bank reduce with the bank’s diminishing
equity in the asset until no further rental payment has to be made. The real
estate, housing and construction sectors increasingly use DM<i>.</i><o:p></o:p></span></p>
<i><span style="font-family: "Calibri",sans-serif; font-size: 12.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;"><div><i><span style="font-family: "Calibri",sans-serif; font-size: 12.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;"><br /></span></i></div><div><i><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="266" src="https://www.youtube.com/embed/-IXZrp6HDTY" width="320" youtube-src-id="-IXZrp6HDTY"></iframe></div><br /><span style="font-family: "Calibri",sans-serif; font-size: 12.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;"><br /></span></i></div><div><i><span style="font-family: "Calibri",sans-serif; font-size: 12.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;"><br /></span></i></div><div><i><span style="font-family: "Calibri",sans-serif; font-size: 12.0pt; mso-ansi-language: EN-US; mso-ascii-theme-font: minor-latin; mso-bidi-language: AR-SA; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-fareast-language: EN-US; mso-hansi-theme-font: minor-latin;"><br /></span></i></div><br clear="all" style="page-break-before: always;" />
</span></i>
<p class="StyleHeading2VerdanaBlackLinespacing15lines" style="margin-bottom: 6.0pt; mso-list: l0 level1 lfo1;"><!--[if !supportLists]--><span style="color: blue; font-family: "Courier New"; mso-fareast-font-family: "Courier New";"><span style="mso-list: Ignore;">o<span style="font: 7.0pt "Times New Roman";"> </span></span></span><!--[endif]--><span dir="LTR"></span><b style="mso-bidi-font-weight: normal;"><span style="color: blue; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-font-style: italic; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Mudarabah </span></b><b style="mso-bidi-font-weight: normal;"><span style="color: blue; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">(profit-and-loss
sharing partnership) <o:p></o:p></span></b></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><i><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Mudarabah</span></i><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">, also a participatory mode and a form of investment
partnership, ranks alongside <i>musharakah </i>as one of Islamic finance’s
preferred financing modes, <i>musharakah </i>being the most desired form of
financing. <i>Mudarabah </i>also embodies the spirit of profit-and-loss sharing
partnerships and the encouragement of trade, as well as an active management of
capital linked to assets<i>. </i>Unlike <i>musharakah</i>, in <i>mudarabah </i>one
party provides the capital while another other party, as the managing partner,
provides the labour and skills to manage the venture. Profits are shared
between the parties according to a pre-agreed ratio; however losses are borne
by the capital provider only.<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">As a financing mode adopted by Islamic banks, it is a contract in
which all the capital is provided by the Islamic bank and the business, or a
project, is undertaken by the client. The profit is shared in pre-agreed
ratios, and loss, if any, is borne by the bank only, except in the case of
misconduct, negligence, or violation of the conditions agreed with the bank.
While many banks are providing <i>mudarabah </i>financing for various business
activities, they may also make <i>mudarabah </i>investments in the small
budding entrepreneurs in the form of venture capital finance transactions.<o:p></o:p></span></p><p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><br /></span></p><p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="266" src="https://www.youtube.com/embed/OnmPp2NPUxk" width="320" youtube-src-id="OnmPp2NPUxk"></iframe></div><br /><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><br /></span><p></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="color: maroon; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Hybrid or Combination Modes<o:p></o:p></span></i></b></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Frequently there are projects which call for the use of a variety
of, or a combination of, modes within an Islamic financing transaction. In such
a situation, the prudent Islamic banker basically describes the transaction and
breaks the transaction into its constituent parts, using some modes as building
blocks where it appears to be most appropriate, but they must all be
independent of one another. Islamic banks may use these modes with accessory
contracts, such as:<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">• <i>Jua′alah (</i>Wages, pay, stipend, or reward in exchange for
a service provided by the bank)<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">• <i>Wakalah </i>(Whereby the bank acts on behalf of a client for
a fee)<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">• <i>Amanah </i>(Trust)<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">• <i>Hawalah </i>(Assignment of debts)<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">• <i>Kafalah </i>(Whereby the bank acts as guarantor)<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt; mso-layout-grid-align: none; text-autospace: none;"><span style="color: black; font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Combinations modes are allowed by <i>Shari’ah </i>scholars based
on the general principle of necessity provided they “make something forbidden
as permissible or something permissible as forbidden”. Some scholars have
raised objections to certain types of modes being combined as in such cases all
rights and obligations will be seen as inseparable and dependent on each other.
“What is at dispute is not the validity of combination contracts in principle.
The concern is with the nature and form of such combinations” (A Guide to
Islamic Finance, by Munawar Iqbal, 2007).<o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom: 6.0pt;"><span style="font-family: "Calibri",sans-serif; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><o:p> </o:p></span></p>Zia Ahmedhttp://www.blogger.com/profile/15251232944846705347noreply@blogger.com0tag:blogger.com,1999:blog-176427221984871817.post-82786649006476917392021-03-10T03:28:00.002-08:002021-03-10T03:28:58.801-08:00WhatsApp Is Finally Inviting Businesses Onto Its Massive Network This Year<div dir="ltr" style="text-align: left;" trbidi="on">
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WhatsApp co-founder <a href="http://www.forbes.com/profile/jan-koum/" style="border: 0px; box-sizing: border-box; font-family: inherit; font-style: inherit; font-variant: inherit; line-height: inherit; margin: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" target="_self">Jan Koum</a> just dropped several pieces of big news about his messaging giant today during a rare appearance at the DLD conference in Munich, Germany.</div>
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Here’s the roundup of news, and you can skip to No. 3 for the meaty stuff:</div>
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1) WhatsApp is just days away from reaching 1 billion active users: it’s currently got 990 million, Koum said today. He was hoping for 10 million more before his appearance but you can’t have everything. The company has previously said it was growing by about 1 million users a day.</div><div style="-webkit-margin-after: 0px; -webkit-margin-before: 0px; -webkit-padding-start: 0px; border: 0px; box-sizing: border-box; font-family: Georgia, "Times New Roman", Times, serif; line-height: 1.4em; margin-block: 0px; margin-bottom: 1em; margin-top: 1em; padding-inline-start: 0px; padding: 0px; text-align: justify; vertical-align: baseline;"><br /></div><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="266" src="https://www.youtube.com/embed/OnmPp2NPUxk" width="320" youtube-src-id="OnmPp2NPUxk"></iframe></div><br /><div style="-webkit-margin-after: 0px; -webkit-margin-before: 0px; -webkit-padding-start: 0px; border: 0px; box-sizing: border-box; font-family: Georgia, "Times New Roman", Times, serif; line-height: 1.4em; margin-block: 0px; margin-bottom: 1em; margin-top: 1em; padding-inline-start: 0px; padding: 0px; text-align: justify; vertical-align: baseline;"><br /></div>
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2) WhatsApp is going totally free, dropping the 99 cent subscription that it applied to certain users after a year of free use. Note that WhatsApp never made much money from this; only around $20 million in 2013 revenue to help cover costs. Up until 2014, when <span article-quote-card="" class="quotecard ng-isolate-scope" data-exchange="NASDAQ" data-link="/companies/facebook" data-name="Facebook" data-naturalid="fred/company/15317" data-quotes-closing="98.37" data-quotes-now="94.99" data-ticker="FB" data-type="organization" style="border: 0px; box-sizing: border-box; font-family: inherit; font-style: inherit; font-variant: inherit; line-height: inherit; margin: 0px; padding: 0px; vertical-align: baseline;">Facebook <span class="card-preview ng-scope" ng-if="ticker" ng-mouseleave="hideQuotecard()" ng-mouseover="showQuotecard()" style="border: 0px; box-sizing: border-box; display: inline-block; font-family: inherit; font-style: inherit; font-variant: inherit; line-height: 1.4em; margin: 0px; padding: 0px; position: relative; vertical-align: baseline;">FB -3.56%</span></span> bought WhatsApp in a landmark $19 billion deal (<i style="border: 0px; box-sizing: border-box; font-family: inherit; font-variant: inherit; line-height: inherit; margin: 0px; padding: 0px; vertical-align: baseline;">950 times</i> its 2013 revenue), WhatsApp was only charging the fee in a handful of countries like the United States and United Kingdom, where most people had credit cards and were more likely to pay for things on their mobile phones. Elsewhere like the Netherlands, WhatsApp dropped the fee because while half the country used the app, mobile payments were still uncommon. Now that WhatsApp has all costs covered and then some thanks to Facebook’s tutelage, it can afford to drop the subscription.</div>
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3) Since its acquisition by Facebook, WhatsApp has batted away questions about justifying its $19 billion price tag by making more money, saying it needed to focus on growing its user base. During deal talks, Zuckerberg had told WhatsApp’s founders that he’d give them the freedom to focus on growth alone for the first couple of years under Facebook. But that was two years ago, and now that it’s about to hit 1 billion users (equal to one-seventh of the world’s population) WhatsApp is finally going to start inviting businesses onto the network and will probably trial new ways of charging them.</div>
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Businesses have been flooding WhatsApp with emailed enquiries over how they could access the network for some time but the company has ignored all of them, according to a person close to the firm.</div>
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Many businesses have also tried setting up shop on WhatsApp in a more basic form. It’s common in Hong Kong, for instance, to book a table at a restaurant by simply texting it on WhatsApp. You can text the BBC on WhatsApp if you have a news tip. You can WhatsApp diamond experts at one forward-thinking diamond seller in London if you’re in the market for an engagement ring.</div>
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Yet none of these interactions are any different from how regular people communicate on WhatsApp, and businesses want more: analytics, infrastructure for sending messages to large numbers of customers at once, automated messages or “bots” which are fast becoming a tool for businesses on other messaging apps like Facebook Messenger, Kik, Telegram and in particular WeChat.</div>
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WeChat is the standard bearer for bringing businesses into the world of messaging. It started inviting businesses onto its network in 2013 with official accounts, and over the years has expanded the kinds of features that those businesses can use to reach out to users, including payments, advertising and automated bots for responding to questions.</div>
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Today, WeChat (or more precisely its Chinese-focused product Weixin) has more than 10 million of these official accounts, including McDonalds, Asian healthcare store Watson’s, media organisations and even the Chinese Communist Party. Around 80% of WeChat’s more-than 600 million users are now estimated to follow at least one official account.</div>
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WeChat’s broad engagement with businesses goes well beyond anything that other big messaging apps in the West have managed to achieve.</div>
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Facebook first announced it would invite businesses onto Messenger with in March 2015, with retailers Everlane and Zulily its first beta users, and since then it’s also partnered with Uber to let Messenger users track and hail a ride from the Messaging app. But Facebook’s masses of users have yet to embrace businesses through Messenger, and it’s unclear when and how much Facebook will be able to make money from giving businesses deeper access to the platform.</div>
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Earlier this month TechCrunch reported that Facebook was also releasing a toolkit that would allow developers to build bots on Messenger. Bots are the simpler cousin of apps, and right now they’re blowing up on chat services like Kik (where companies like Skullcandy and Burger King can hold automated chats with its teen user base) and on app stores as standalone digital-assistant apps like Luka and Magic.</div>
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In sum, WhatsApp has several examples it can look to for how to set up its first integrations with businesses: the features WeChat gives corporate customers for its official accounts, Facebook Messenger’s SDK and Kik’s more simple chat bots used by around 70 brands as a marketing tool.</div>
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Given its founders’ hatred of advertising, WhatsApp will probably steer clear of the marketing-focused features that Kik initially introduced, and even the broad breadth of bot and advertising features that WeChat offers, and limit its early corporate user to simple, focused services. It’ll probably do this by opening its API to a select few customers and at some point down the line, charge them for access.</div>
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How much it charges, and how many customers it gets, will help determine how much money it can make from the whole venture.</div>
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Anonymousnoreply@blogger.com0tag:blogger.com,1999:blog-176427221984871817.post-77987496886866631282020-05-14T01:05:00.002-07:002021-04-14T07:35:40.621-07:00Economic Cost of Hate<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Economic
Cost of Hate <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">India has
seen gradual increase of hate against its Muslim Minority. This gradual
increase of last 6 years has suddenly spiked in last 8 months, which is noticed
by global human rights groups and Governments.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">The
countries and international organizations has started discussions and so are
governments. This discussion has now coming to the point it will start damaging
India’s Economy and will have serious implications. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">US
Congress has already issued statement and so is USCIRF and Congress Members,
and Bernie Sanders has raised serious questions on India’s handling of Racism,
Hate and Violence against its minorities.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><br /></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><br /></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">UK
Parliament has already discussed the matter.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">EU
Parliament will take up the issue once opened. It has 3 resolutions on the
matter. <span style="mso-spacerun: yes;"> </span><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">OIC – Organization
of Islamic Cooperation is world’s second biggest group of countries has already
issued statements and requested government of India, to protect the life and
properties of Muslims.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">GCC – Gulf
Cooperative Council is world’s smallest but richest group with substantial
exposure and relations with India and with very good say across the worlds, is
started serious talking about Islamophobia and Hate in India. This will have
serious economic impact.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">US, Europe
and UK, number of Muslim countries has echoed their concern for the Hate Crime
and Islamophobia in India.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><o:p> </o:p></span></p>
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEglbK-hIim9lr1geSt9XfMFZTDHnk8ftbzKkuzti_QN9ywL3gx8TVL3pIIfixAKM8PKQRZDMXPsYxoGYW7LiMjd7y7g1UspDgWNQsqGRghyb7p3UMYwtvRcTFWonvV4IWqTspcLN8ZBys4/" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1080" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEglbK-hIim9lr1geSt9XfMFZTDHnk8ftbzKkuzti_QN9ywL3gx8TVL3pIIfixAKM8PKQRZDMXPsYxoGYW7LiMjd7y7g1UspDgWNQsqGRghyb7p3UMYwtvRcTFWonvV4IWqTspcLN8ZBys4/s320/Partnership.jpeg" /></a></div><p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><br /></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Notably
among them are Turkey, Iran, Malaysia, Indonesia has come out with their
statements. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">The real
question is How is the cost or economic impact of all this hate mongering.<o:p></o:p></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><br /></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"></p><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="410" src="https://www.youtube.com/embed/dLD_afo5JIM" width="493" youtube-src-id="dLD_afo5JIM"></iframe></div><br /><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><br /></span><p></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">I will
start with GCC.<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpFirst" style="line-height: normal; margin-bottom: 6pt; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">1.<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">GCC hosts 9 million Indian – This
number can vary between 9 million and 12 million depending upon how you view or
calculate.<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: 6pt; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">2.<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">The total of 79 billion USD, 55
Billion comes from GCC countries or 70%, more importantly India is single
largest recipient of foreign remittances.<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: 6pt; mso-add-space: auto;"><span style="background: white; color: #333333; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Among countries, the top remittance
recipients were India with $79 billion, followed by China ($67 billion), Mexico
($36 billion), the Philippines ($34 billion), and Egypt ($29 billion). World
Bank<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: 6pt; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">3.<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">More than 80% Indian working in GCC
are low wage earners or labor which are easy to replace. <o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: 6pt; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">4.<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">India’s Export – Fresh Vegetables and
Meat <o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: 6pt; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">5.<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">GCC is single biggest market for Fresh
Vegetables, and Fruits, Agriculture Products.<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: 6pt; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">6.<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">GCC is single biggest market for Fresh
Meat Exports – Caracas – Goat and Sheep<o:p></o:p></span></p>
<p class="MsoListParagraphCxSpMiddle" style="line-height: normal; margin-bottom: 6pt; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">7.<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">GCC is single biggest market for Beef
Exports. <o:p></o:p></span></p>
<p class="MsoListParagraphCxSpLast" style="line-height: normal; margin-bottom: 6pt; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -0.25in;"><!--[if !supportLists]--><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><span style="mso-list: Ignore;">8.<span style="font: 7pt "Times New Roman";">
</span></span></span><!--[endif]--><span dir="LTR"></span><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">GCC is single biggest trading partner
for Agro Commodities.<o:p></o:p></span></p>
<p style="margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt;"><span face=""Calibri",sans-serif" style="font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">GCC
countries account for 15 percent of India’s total import and 12 percent of the
country’s total export basket in value terms. <o:p></o:p></span></p>
<p style="margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt;"><span face=""Calibri",sans-serif" style="font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">Among
the GCC countries, UAE accounted for the major chunk of India’s exports and
imports with $30.08 billion and $29.77 billion respectively in FY19. <o:p></o:p></span></p>
<p style="margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt;"><span face=""Calibri",sans-serif" style="font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;"><o:p> </o:p></span></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhgLhumBetEcWiahxoJRVaE2HP45LQTW5YPbC-cVjxongaf6GCsyUJsyP4q9qCbkk-Tr4TaBHo3FW76B73P3O9fJ6mOX8KEm4XIQnu_DuBk5ISltf2Qhbm9wA6YkzeXKKo0EiBUPQb9DAI/" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1080" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhgLhumBetEcWiahxoJRVaE2HP45LQTW5YPbC-cVjxongaf6GCsyUJsyP4q9qCbkk-Tr4TaBHo3FW76B73P3O9fJ6mOX8KEm4XIQnu_DuBk5ISltf2Qhbm9wA6YkzeXKKo0EiBUPQb9DAI/s320/remittance.jpeg" /></a></div><p></p>
<p style="margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt;"><span face=""Calibri",sans-serif" style="font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">This
is despite a negative growth in both imports and exports of gems and jewelry, a
major item in the product basket between India and UAE. <span style="mso-spacerun: yes;"> </span>India’s imports of gems and jewelry from UAE
have seen a </span><span face="Calibri, sans-serif" style="font-size: 11pt;">decline
of 13 percent, while its exports of these products to UAE have fallen by 3
percent in FY19 over the previous fiscal.</span></p>
<p style="margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt;"><span face=""Calibri",sans-serif" style="font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">UAE
accounts for 9 percent of India’s total export basket and 5.80 percent of
India’s import basket by value. <o:p></o:p></span></p>
<p style="margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt;"><i><span face=""Calibri",sans-serif" style="color: #c45911; font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin; mso-themecolor: accent2; mso-themeshade: 191;">UAE is the major
destination for India’s jewelry exports, accounting for about 80 percent of
India’s exports. <o:p></o:p></span></i></p><p style="margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt;"><i><span face=""Calibri",sans-serif" style="color: #c45911; font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin; mso-themecolor: accent2; mso-themeshade: 191;"><br /></span></i></p><p style="margin-bottom: 6.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; margin: 0in 0in 6pt;"><i></i></p><div class="separator" style="clear: both; text-align: center;"><i><iframe allowfullscreen="" class="BLOG_video_class" height="417" src="https://www.youtube.com/embed/CDRvTZGWmj8" width="502" youtube-src-id="CDRvTZGWmj8"></iframe></i></div><i><br /><span face=""Calibri",sans-serif" style="color: #c45911; font-size: 11pt; mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin; mso-themecolor: accent2; mso-themeshade: 191;"><br /></span></i><p></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt; mso-outline-level: 4;"><b><span style="color: black; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1;">Energy,
Expatriates and Economy<o:p></o:p></span></b></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><span style="color: black; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1;">Indian
National<u> </u>make up the Gulf states’ largest expatriate community, with an
estimated 9.6 million Indian nationals living and working in the region;
especially in Saudi Arabia (2.8 million) and the UAE (2.6 million. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><span style="color: black; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1;">The GCC is
India’s largest regional-bloc trading partner, which accounted for $104 billion
of trade in 2017–18, nearly a 7 per cent increase from $97 billion the previous
year. This is higher than both India–ASEAN trade ($81 billion) and
India–EU trade ($102 billion) in 2017-18. Two of India’s top five trading
partners, the UAE and Saudi Arabia, are from the Gulf. The GCC also provided
over $55 billion in foreign-exchange remittances from Indian expatriates in
2017, accounting for over 70 per cent of India’s total. <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><span style="color: black; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1;">The total
bilateral trade between the GCC and India was estimated at US$121.34 billion
($203 billion) in 2018-19. The UAE is estimated to be India’s third-largest
partner with trade in 2018-19 estimated at nearly US$60 billion ($100 billion),
while Saudi Arabia is India’s fourth-largest trading partner, with trade in
2018-19 estimated at over US$34billion ($57 billion).<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><span style="color: black; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1;">They aim to
increase bilateral trade by 60 per cent over the next five years and have set a
target of $75 billion for UAE investments into India’s infrastructure
development, spanning ports, airports, highways and construction, as well as
petrochemical projects.<o:p></o:p></span></p>
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEinpHGBlDmTiy6DYKsbbejBzZ-pP9OrZ-wQqj0yffkk0zpHGQpxNjA87YlfBDJ2xVWuHjalc-WYHHLF4qBQpNVz-VZlxynVCy522odHHrpyTCVLrWqLTZwkpx64FHZM-G_oeI1g48Glo1M/" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1080" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEinpHGBlDmTiy6DYKsbbejBzZ-pP9OrZ-wQqj0yffkk0zpHGQpxNjA87YlfBDJ2xVWuHjalc-WYHHLF4qBQpNVz-VZlxynVCy522odHHrpyTCVLrWqLTZwkpx64FHZM-G_oeI1g48Glo1M/s320/Bilateral+trade.jpeg" /></a></div><p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><br /></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><strong><span face=""Calibri",sans-serif" style="mso-ascii-theme-font: minor-latin; mso-bidi-theme-font: minor-latin; mso-hansi-theme-font: minor-latin;">India </span></strong><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">expected
to attract large-scale investment from the GCC to India, following the recent
announcement of the development of a $44 billion oil refinery to be built by
Abu Dhabi National Oil Company (ADNOC), Saudi Aramco and Indian counterparts.<br />
The announcement comes a few months after Emirates Group announced a $4.23
billion (INR300 billion) aircraft maintenance, repair and overhaul (MRO)
project in Andhra Pradesh in February this year.<br />
</span><i><span style="color: black; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1;">Aramco
is also in talks with Reliance Industries Limited to purchase a 20 per
cent stake in its oil to chemical business, which is estimated at US$75 billion
($125.5 billion). </span></i><span style="color: black; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman"; mso-themecolor: text1;"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt; text-align: justify;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";"><br /></span></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt; text-align: justify;"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgw2aPTmpgul-rwkfWsk4vpue8gLI9GkhHdfzfwF8X_1ahmqaRkmNTVo-KIBHv84u5QrbnuELLqRyINMc2mPCCvqNyFaNkxA4lfzptZn5zJBz7ZJrWUrYztuEBr0EHB-AKN80QXQ_mavWE/" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1080" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgw2aPTmpgul-rwkfWsk4vpue8gLI9GkhHdfzfwF8X_1ahmqaRkmNTVo-KIBHv84u5QrbnuELLqRyINMc2mPCCvqNyFaNkxA4lfzptZn5zJBz7ZJrWUrYztuEBr0EHB-AKN80QXQ_mavWE/s320/FDI.jpeg" /></a></div><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";"><br /></span><p></p><p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt; text-align: justify;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";">The GCC has also invested in
developing India’s energy infrastructure. In 2019, the Saudi Ambassador to
India stated that Riyadh wished to invest US$100 billion ($166 billion) in
India <o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt; text-align: justify;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Foreign
Direct Investment (FDI) in India increased to $61.96 billion in 2017-18,
according to Indian Government’s Department of Industrial Policy and Promotion
(DIPP). Total FDI reached $ 61.96 billion in the last four years, it said.</span><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><b><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";">India: An investment gateway </span></b><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";">Yusuffali predicts that an investment to the
tune of $150 billion will flow into retail, aviation, tourism and manufacturing
sectors from Gulf countries.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";">This will have a mutual benefit for both the
countries as India faces 30 per cent wastage in the Indian farm sector due to
bottlenecks in storage, packaging and transportation, and investment by Saudi
Arabia would benefit both the countries.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></p>
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgfJH0RmdvqhWEXuG7atHOCRHV4yKcg6dtulTv4yvxGbVI5AIEjyPTAlLZ90iAerLJgmS78Phme1TLm0LUK73ZtNNrZGYEPCkqnLYh0keBdLuUuDotoV8HVUYP_9zu0uqQTX9_qaXFBy2U/" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1080" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgfJH0RmdvqhWEXuG7atHOCRHV4yKcg6dtulTv4yvxGbVI5AIEjyPTAlLZ90iAerLJgmS78Phme1TLm0LUK73ZtNNrZGYEPCkqnLYh0keBdLuUuDotoV8HVUYP_9zu0uqQTX9_qaXFBy2U/s320/Job+Losses.jpeg" /></a></div><p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><br /></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";">Why GCC Matters<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";">And with an average GDP per capita of US $ 61,559
in terms of purchasing parity, most GCC nation rank in worlds top ten richest
countries.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";"><o:p> </o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 6pt;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";">Indonesia and Malaysia account for 85%
of the world's palm oil output while India is the biggest buyer of edible oil. <o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 6pt;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";">Indonesian crude palm oil has sold at
a premium to Malaysian oil since India this month placed curbs on imports of
refined palm oil. <br />
The trade ministers of India and Indonesia, which want to more than double
their bilateral trade to $50 billion by 2025, met in Davos on Thursday and
agreed to fast-forward trade between them, one of the informed sources <br />
An Indian government document, reviewed by Reuters, said that Indonesia had
"informally agreed" to double the annual quota for Indian bovine meat
exports to 200,000 tonnes. <br />
Indian-Indonesian trade was worth $21.2 billion in the 2019.<o:p></o:p></span></p>
<p class="MsoNormal" style="background: white; line-height: normal; margin-bottom: 6pt;"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-fareast-font-family: "Times New Roman";">Indonesia imported 94,500 tonnes of
Indian buffalo meat worth $323 million in the 2018/19 fiscal year. It is the
third biggest buyer of Indian buffalo meat after Vietnam and Malaysia. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">India’s Tourism Sector</span></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">The Foreign Tourist Arrivals in India is small compared to global
standards. The lack of enough and quality infrastructure is one reason, the
culture and social environment is second factor.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">The arrivals are divided as Foreign and NRI, we will discuss only
Foreign Arrivals.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">The single largest arrival is Bangladesh Nationals. Then come US
and Europe. The Bangladesh alone constitute more than 20% of total arrivals,
USA and Europe together constitute another 25%.<span style="mso-spacerun: yes;">
</span>The remaining 55% is scattered over countries. North Africa, GCC and
Malaysia together is above 10%. Other Muslim Countries has another 3% arrivals
in India.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Tourism is one of very important employment sector for India. The
present environment of hate will directly affect sentiments of Tourist and their
arrivals. Not only the Muslims but all arrivals will be affected. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">We see more than 50% reduction in Tourist arrivals from Muslim
World to India. The NRI arrival will also be heavily affected because of Job
loss. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">The arrivals from USA and Europe will be affected by 15%, as
sentiments go negative. This will affect India’s direct foreign currency income
and employment.<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><br /></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><o:p> </o:p></span></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiRwekwFx0VczgqnDVaFdUszNTqjWxHvMMrnj41NoIJ-5zb72BFAEDMewcg1Qj4ZBsEoi_VUpCumaYBQ8A35tjaoaBWNoO9webA9CP1Sp5z_5oC-BLAtN9zY01NucUG42wnhVzmo5LFbcw/" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1080" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiRwekwFx0VczgqnDVaFdUszNTqjWxHvMMrnj41NoIJ-5zb72BFAEDMewcg1Qj4ZBsEoi_VUpCumaYBQ8A35tjaoaBWNoO9webA9CP1Sp5z_5oC-BLAtN9zY01NucUG42wnhVzmo5LFbcw/s320/financial+loss.jpeg" /></a></div><p></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Services Sector – India’s services sector is more dependent on USA
and Europe. IT, ITES are mostly catered to developed world. In last few years,
there is substantial growth and Opportunities are generated from GCC. This
growth is steady and remain double the average growth of India’s services
sector exports. This nascent sector will face challenge to survive in GCC,
North Africa and Malaysia, Indonesia.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">The Effect of Hate on FDI and PPP and other projects<o:p></o:p></span></p>
<p class="MsoNormal" style="line-height: normal; margin-bottom: 6pt;"><span style="background: white;">As Result of Increase of Hate in India, India will see
substantial losses in terms of financial loss. Remittance will be down by 30%
or 17 Billion Dollar, direct commercial loss or loss of business will be 55
billion and overall Indian economy will be take hit of 1.5 percent.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">The sentiment in GCC particularly and worldwide in general will be
negatively impacted. The investors look for safety of their amount and social
conditioning. Peace is most important to drive growth anywhere in the world.
Without peace and harmony, it is impossible to find growth and development.
Hate will not only drag down the growth of particular community but it will
have drag down effect on everyone. These negative sentiments will persist for
the long time. GCC human rights activist and global Human Rights activist
particularly in EU and USA will have substantial impact on FDI in India.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Data Source -<span style="mso-spacerun: yes;"> </span><o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">India Tourism Statistics 2019 Ministry of Tourism Government of
India<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Annual Report 2018 -2019 Department of Commerce Government of
India <o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">GCC Stat <o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">World Bank Remittances Report<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">IMF Economic Review <o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;">Venture Art Economic Projections<o:p></o:p></span></p>
<p class="MsoNormal"><span style="mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin;"><o:p> </o:p></span></p><br />Zia Ahmedhttp://www.blogger.com/profile/15251232944846705347noreply@blogger.com6tag:blogger.com,1999:blog-176427221984871817.post-79485453768683703832019-10-01T03:02:00.001-07:002021-03-10T03:24:19.084-08:00How incubators are disrupting the Indian agri-tech startup landscape.Technology has changed the way that businesses behave today. The Indian economy is home to over 56,000 startups with about 450 plus in the agri-tech space alone. There are government regulations and incentives to help these startups grow and sustain, but the dynamics are skewed towards the incubators and accelerators who drive exponential growth.<br />
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The agri-tech segment is growing at a phenomenal rate of 25% year-on-year. The fund inflow has been over $250 million in 2019 alone. The future is bright, and experts view the agri-tech innovation industry as the primary driver of agricultural economics by 2020. The multi-billion sector has a massive scope to change the face of the Indian economy. Incubators are not only funding, but also mentoring, and guiding the very fragmented businesses leading towards a cohesive structure.<br />
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The agriculture industry is fragmented and unorganized in India. There is a need to harness the potential that the sector offers to harness the growth and make it sustainable. The need for technological innovation to find solutions to everyday problems is the need of the hour. Frugal innovations in the agri-sector will help the economy grow in the long run.<br />
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The pressure points plaguing the agriculture industry is the dearth of market linkages, services, and networks that can be tapped as a cohesive whole. The experience of incubators have helped agri-tech startups to channel funds, groom entrepreneurs, provide on-ground pilot testing facility, and maximize business opportunities. The boot camp activities of the incubators facilitate the back-links to market, help in driving networks to reduce wastage, create sustainable logistics systems to promote marketing initiatives, and help agri-tech startups scale up.<br />
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<a href="http://www.ventureart.biz/"><img border="0" data-original-height="657" data-original-width="1109" height="236" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiPqDFiGGZ-swSdL_OJlbgSp1W8lUip_Vpeoz_ofC-pFznpUldxIUPJjgQFl3mqg2xyZpuOMqK2NDLc1PzPce9RnHosU4IYswgSlR8VRvgGbPLRtgD1jdk-XpeufqhfDn7LOq_Ke8Wdm__r/s400/agri-tech.jpg" width="400" /></a></div>
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The formal incubator-accelerator organizations have disrupted the Indian agricultural startup scenario over the past a few years. Incubators seed the potentially disruptive ideas of the agri-preneur intending to create a viable business model. The startups gain co-working space, structured funding, mentor-ship in the technology and financial domains as well as in-depth knowledge of the industry itself. Incubators also help to mitigate the challenges and risks in the delicate scale-up process.<br />
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Incubation is the bedrock of innovative disruption. The idea is to foster growth and ultimately commercialization of the innovation. The incubators have stepped into the gap between a good idea to a viable business. They provide necessary infrastructure, feedback, and correction advice to firm up the innovation. The hand-holding process includes mentor-ship, identification, and firming up of collaborations for the agri-preneur. Intellectual resources and advice can make or break the pattern of growth and scalability.<br />
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The role of incubators is crucial in the wider business ecosystem in India. They are integral to the shaping up process of the Indian startup network. The role of the incubator is well beyond the corporate startup office. They add value to the entire business-scape of the start-up community. The exponential growth of India as a start-up hub has opened up the potential of incubators to nurture creativity and disrupt the way traditional business works. The mentoring of the start-up will help agri-ventures transform and catapult itself to the next level.<br />
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Agri-tech startups have a vast scope to enhance livelihood opportunities in rural India. Intervention in sustainable agricultural processes, livestock management, skill development, market linkages, effective network of logistics infrastructure, sustainable pricing conventions, and robust market linkages will contribute tremendously to rural economic development and food security goals in the country. Incubators are set to disrupt the Indian startup landscape in a big way.<br />
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<b><i>Disclaimer: Following article source is <a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/how-incubators-are-disrupting-the-indian-agri-tech-startup-landscape/articleshow/71389099.cms">ET</a></i></b><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="266" src="https://www.youtube.com/embed/OnmPp2NPUxk" width="320" youtube-src-id="OnmPp2NPUxk"></iframe></div><br />Unknownnoreply@blogger.com10tag:blogger.com,1999:blog-176427221984871817.post-2473385051015516702016-10-04T03:19:00.001-07:002021-03-10T03:27:35.437-08:00Is there really a way of failure-proofing something as a startup?<b>Corporates today are not worried about what the other corporates are doing. They are instead worried about what startups are building in garages and hence, after trying to do everything to keep up with their pace, are now funding them.</b><br />
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In the highly interactive session, Stressed on what startups should focus on and where they are going wrong.<br />
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<b><span style="font-size: large;">Customer co-creation</span></b><br />
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“Instead of focusing solely on the product, startups should think about doing other fundamental things right from the idea stage. This can be summarised in six points, namely co-creation, pricing relevance, ease of use, market acceptance, identifying customer needs, and tech-friendliness.”<br />
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Startups know what they are building and desperately want to sell it but what they need to know before anything else is why they made it. Believing in why you did what you did is pivotal.<br />
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Products have rationales and customers have emotions; tap that! If you think rationally in business, you will have a hundred people doing the same thing, but if you capitalise on emotion, you will be different.<br />
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If you are building a startup, there are certain questions which you need to ask yourself. They include:<br /><br />
<b>*</b> What need are you addressing?<br />
<b>*</b> Are you satisfying a REAL need?<br />
<b>*</b> Is your product impacting the lives of your customers?<br />
<b>*</b> What is your competition doing?<br /><br /><br /><br />
<b><span style="font-size: large;">Investor Co-creation</span></b><br />
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Most startups toil for years together, build a product, and then begin hunting for investors. This is a flawed method.<br />
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“You know how important an investor is to your startup. So, why wait for him? Involve investors from the idea stage so they know what you are doing from the start. People like to do business with who they are familiar with. Also, interacting with investors from the start gives you a lot of additional insight on what’s happening in the ecosystem and lets you understand what exactly they are looking for.<br />
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<b>Traction: </b>This is not about how much you have made but how much you are likely to make.<br />
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<b>Mentor creation:</b> People who can bridge the gap between customers and investors with their experience.<br />
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Their own passion is important, but obsession is not. Understand, if it has to be a commercial enterprise, it has to solve the problem of customers.<br />
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But what after a successful launch and a few great years of operations? How does a startup continually do well?<br />
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It’s not about getting it right at once. As long as people keep evolving, you cannot stop working. Every day is a new day.<br />
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While we are all aiming at achieving success and avoiding failure, They are both results that are not under our control. However, what we can control is our actions, and the more the precision with which we carry them out, the further we go in avoiding failure.<br /><br /><b><i>Disclaimer: - Following article come from <a href="https://yourstory.com/2016/10/techsparks-sameer-desai-brand-launch-centre/">YourStory</a></i></b><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="266" src="https://www.youtube.com/embed/OnmPp2NPUxk" width="320" youtube-src-id="OnmPp2NPUxk"></iframe></div><br />Anonymousnoreply@blogger.com42tag:blogger.com,1999:blog-176427221984871817.post-11617194862240074042016-09-25T12:18:00.005-07:002021-03-10T03:41:23.677-08:00Startups, guide your way to cloud.<div dir="ltr" style="text-align: left;" trbidi="on">
<b>Isn’t this such an exciting time, when so much is happening in the startup arena? Technology-based startups bet on their ideas and work towards giving life to their dreams over a period. Ideas which are given shape via technology and placed on the tarmac as a pilot roll-out are tested for their relevance and acceptance from the consumers and businesses. This is where the idea of a public cloud comes across as a boon for tech startups that are either testing the waters with their beta products or productionising their solutions. A public cloud offers unprecedented compute and is the perfect platform for startups to take off. It is just not about compute boxes but capitalising on unique offerings that matter the most to them from a solution standpoint.</b><br />
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At the time when these pilots are rolled out (with ‘beta’ or ‘trial run’ tags), there is no sense of scale or directional indicators on compute capacity. Some may invest in market studies leading up to forming an opinion on the way forward, but at best they are ballpark and based on one’s awareness of the domain. Often, the question is about the pilot creation, where the pilot travels a certain distance, but is now being challenged for it longevity while the business leaps to garner bigger deals. This is the time and phase where startups go back to the drawing board, to assess how they can stand up to the upside they are witnessing on their businesses.<br />
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Getting access to public cloud is comparable to getting access to a theme park with unlimited rides. But it all depends on how they are utilised and perceptions are formed on the basis of ones’ tryst with specific rides. Startups look for quick ways to deploy and get their solutions/services up and running. This article presents some of the field learnings from a technology standpoint in the form of recommended practices startups should keep in mind when they begin their journey in the cloud.<br />
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<h4>
<span style="font-family: "georgia" , "times new roman" , serif;"><b>* Adapt a universal component design</b></span><span style="font-weight: normal;">This is one area architects and designers need to think through. A typical approach taken by a startup is not get tied to a specific platform. Depending on factors indicated under #4 (‘Cloud credit management and cost optimisation’) below, you tend to move your workloads from one cloud platform to another. Migrations or move-overs are not easy and come with certain costs (time and effort). At times, having used native services on specific cloud platforms might make the movement harder. If you have taken a stance not to use platform native capabilities, it might work in your favour during migrations, but at the cost of not capitalising on the power of cloud beyond pure boxes (hosting workloads in VMs).</span></h4>
This is where the need to make your workloads universal comes in handy. What does ‘universal’ mean in this context? It is about realising the core capability (main business function) by way of using certain peripheral native services (storage, integration, and data services) to complement the core functionality. When you take this approach, the core remains independent of a cloud platform and it can only be called complete by leveraging peripheral services. So when you move from one cloud platform to another, you take the core, which is at the heart of your solution, and wire it up with required peripheral (managed) services. This is true heterogeneity in the context of public cloud. In hindsight, it is also important to establish basic know-how of at least two cloud platforms to realise this model.<br />
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<h4>
<b>* <span style="font-family: "georgia" , "times new roman" , serif;">Time to market — building vs buying (adopt managed services)</span></b><b><br /></b></h4>
At times, it is fashionable to say that we have built it all in-house instead of using any readily available solutions. While it is important to demonstrate technical prowess leading to intellectual property creation, you have to balance it to address ‘time to market’ (TTM). TTM is very important for tech startups in view of competition and this is where ‘Managed Services’ or ‘PaaS’ comes in handy. Why waste time when someone has already done it the hard way? You are better off using it and moving on with stuff which is far more important to your business than going the route of reinventing the wheel.<br />
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Don’t get bogged down and stay on the trail of demonstrating technical prowess, but demonstrate agility by using proven frameworks and softwares that are out there. PaaS offering lays out services which can be readily consumed. Hence, if you are grappling with multiple ideas, you are better off realising them sooner in your efforts to test the waters.<br />
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<h4>
<b>* <span style="font-family: "georgia" , "times new roman" , serif;">DevOps</span></b></h4>
This is the most talked about but less adopted stream in the startup world. A sense of urgency is at the centre of any startup and an essential ingredient for them to compete. Down the line, you may realise the aspect of disciplined approach to execution, and the lack of it in your effort to release something quickly. As your business grows, you will realise that TTM is increasing and you lack agility in the process followed. This is where the need for DevOps is felt and an essential ingredient in the overall SDLC. The sooner startups bring in this culture, the better would be their road ahead when it comes to scaling their systems and being responsive to business demands.<br />
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<h4>
<b>* <span style="font-family: "georgia" , "times new roman" , serif;">Cloud credit management and cost optimisation</span></b></h4>
Major public cloud vendors provide usage credits to help startups jumpstart. It may last for a while, and is considered a major cost saver in the startup world. However, one should be mindful of the fact that these credits have an expiry and at some point, they must shift this cost into their routine burn rate. One crucial recommendation for startups here is to leverage these credits and invest in experimentation. You have to invest time to explore ways and means to scale, secure, grow, and instil value into your overall offerings.<br />
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In addition, the experimentation should also lead you into discovering the most cost-effective way to run your solution. This is critical to address the reality when credits run out and you have to pay from your pocket, because you are assured that you have the most economical solution in place.<br />
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<h4>
<b>* Minimise tech breakdowns</b></h4>
Cloud provides more than one solution to a problem. Hence choose the one that justifies the cost as well as meets your performance requirement. Be it B2B or B2C, your differentiator may eventually be ‘availability’ and ‘responsiveness’. Hence it is important to build your system considering they would fail. Transient failures are evident and ensure you know the failover or recovery path in times of crisis. Your systems should carry the tag of ‘fail safe’, since factors like ‘availability’ and ‘responsiveness’ have a direct impact on the perception your users will have of your product and the reputation.<br />
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Cloud is evolving and so should startups. Cloud platform vendors are offering innovative solutions and a great amount of effort is going into democratising the software for application developers. Startups face a plethora of challenges and have to ensure the boat sails with certain stability. Based on my observation of the field, startups need to give thought to the above described areas. It is always desirable to do it right the first time, though learning from failures gives great insights on the way to success.<br />
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<b><i>Disclaimer: - Following article come from <a href="https://yourstory.com/2016/09/startups-guide-cloud/">YOURSTORY</a></i></b></div><div class="separator" style="clear: both; text-align: center;"><br /></div><br /><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="266" src="https://www.youtube.com/embed/UNcwMw9iEt8" width="320" youtube-src-id="UNcwMw9iEt8"></iframe></div><br />
Anonymousnoreply@blogger.com5tag:blogger.com,1999:blog-176427221984871817.post-8630727596337340552016-09-19T00:43:00.004-07:002021-03-10T05:28:44.787-08:00How Entrepreneurs Made A Comeback After Business Failure.<i><b><span face="Trebuchet MS, sans-serif">Sydney entrepreneur Laura Moore came back from disaster to launch a successful health coaching business</span>.</b></i><span style="font-family: Times, Times New Roman, serif;"><br />Running a small business can be one of the biggest, and most rewarding, challenges you can take on.</span><br />
<span style="font-family: Times, Times New Roman, serif;"><br /></span>
<span style="font-family: Times, Times New Roman, serif;">Imagine then, pouring your heart, time and life savings into developing, launching and growing your business, only to watch it either come close to failure, or worse, go under.</span><div><span style="font-family: Times, Times New Roman, serif;"><br /></span></div><div><div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen="" class="BLOG_video_class" height="266" src="https://www.youtube.com/embed/FlnU_9QBCzU" width="320" youtube-src-id="FlnU_9QBCzU"></iframe></div><br /><span style="font-family: Times, Times New Roman, serif;"><br /></span>
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<span style="font-family: Times, Times New Roman, serif;">"I put on weight, was experiencing extreme fatigue, constant bloating and poor digestion, brain fog and erratic moods, which was seriously affecting my performance both personally and professionally," she said.</span><br />
<span style="font-family: Times, Times New Roman, serif;"><br /></span>
<span style="font-family: Times, Times New Roman, serif;">"To the world, it was business as usual, but behind closed doors I was battling with trying to exit the franchise, constantly worrying about my team and clients and how I could ensure they were impacted as minimally as possible, and struggling daily with my health. I now realise there was still a big part of me that felt like a failure."</span><br />
<span style="font-family: Times, Times New Roman, serif;"><br />Moore said she now uses what she learned during that dark time to help others through her new performance and health coaching business, Uppy.</span><br />
<span style="font-family: Times, Times New Roman, serif;"><br /></span>
<span style="font-family: Times, Times New Roman, serif;">"I learned how to manage and overcome the thoughts and behaviours that had led me to that point in the first place -- perfectionism, unrelenting standards, self-sabotage, fear of failure, fear of not being good enough, procrastination, over-working," she said.</span><br />
<span style="font-family: Times, Times New Roman, serif;"><br /></span>
<span style="font-family: Times, Times New Roman, serif;">"I've always wanted to run my own business and this setback wasn't enough to kill that dream.</span><br />
<span style="font-family: Times, Times New Roman, serif;"><br /></span>
<span style="font-family: Times, Times New Roman, serif;">"The fire was kind of a blessing because it allowed me to get amazing insight very early on into my business career, so I now know the key areas I need to improve on (or delegate!) in order to make my new and future businesses run efficiently and successfully, and in a way that serves me personally too.</span><br />
<span style="font-family: Times, Times New Roman, serif;"><br /></span>
<span style="font-family: Times, Times New Roman, serif;"><span style="background-color: white;"></span></span><br />
<span style="font-family: Times, Times New Roman, serif;">"I'm sick of seeing people struggle because they've been misinformed or they don't know there's another way, so I created Uppy as I believe everyone has a right to the knowledge and support that can help them live more."<br /></span><br />
<b><span face="Trebuchet MS, sans-serif"><i>Even experienced entrepreneurs can face failure. Entrepreneur Pawl Cubbin had to completely re-think his marketing plan when his Canberra nightclub started to flounder<br /></i></span></b><br />
<span style="font-family: Times, Times New Roman, serif;">Pawl Cubbin, serial entrepreneur and founder of advertising agency ZOO Group, also faced the burn of a failing business 12 years ago when the shine wore off his Canberra nightclub Academy 11 months after opening.</span><br />
<span style="font-family: Times, Times New Roman, serif;"><br /></span>
<span style="font-family: Times, Times New Roman, serif;">"It was a massive endeavour to get it going: Canberra's not a big place and we opened this nightclub in an underground cinema," he told HuffPost Australia.</span><br />
<span style="font-family: Times, Times New Roman, serif;"><br /></span>
<span style="font-family: Times, Times New Roman, serif;">"It had heaps of atmosphere and the novelty value was big, so it went well for the best part of 12 months -- everybody came and it was a big deal. We killed it.</span><br />
<span style="font-family: Times, Times New Roman, serif;"><br /></span>
<span style="font-family: Times, Times New Roman, serif;"></span><br />
<span style="font-family: Times, Times New Roman, serif;">"But after 12 months the novelty wore off; everybody had been multiple times and even though it was unique in Canberra, it was reduced to a certain demographic and that wasn't enough to sustain it."<br /></span><br />
<span style="font-family: Times, Times New Roman, serif;">Cubbin said the business floundered for three months before he could come up with a plan to save it.</span><br />
<span style="font-family: Times, Times New Roman, serif;"><br /></span>
<span style="font-family: Times, Times New Roman, serif;">"It was an expensive project ... we'd invested too much to close it," he said.</span><br />
<span style="font-family: Times, Times New Roman, serif;"><br /></span>
<span style="font-family: Times, Times New Roman, serif;">"It did too well too initially for us to close it. You've got to identify what you're doing wrong -- you've got to take some blame.</span><br />
<span style="font-family: Times, Times New Roman, serif;"><br /></span>
<span style="font-family: Times, Times New Roman, serif;"></span><br />
<span style="font-family: Times, Times New Roman, serif;">"One of the guys I worked with said 'I think this is the demographic we want, let's put that out there and promote that' and we did. And it was the right thing at the right time, so we were lucky."<br /><br /><b><i>Disclaimer: - Following article come from <a href="http://www.huffingtonpost.com.au/2016/09/18/how-these-entrepreneurs-made-a-comeback-after-business-failure/?utm_hp_ref=au-homepage">THP</a></i></b></span></div>Anonymousnoreply@blogger.com3