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  • When a business starts, it needs to spend a fair amount of money on market development. This includes spending on brand building and product promotion. At the early stage, since customer education is key to grow the business, this spend could be construed as an essential expenditure which pays back over time. The early marketing spend expense is often, therefore, amortized over a period of time. However, the Income Tax authority in India has now taken a view that, irrespective of the number of years put into business, price discounting is a Capital Expenditure, in the context of E-commerce businesses which have grown huge but continue to show losses due to heavy discounting. It is asking them to therefore not show this spend in the P&L and instead show as an asset to be amortized over a few years.

  • Building effective teams doesn’t stop with recruiting the right profiles. Managing the team, keeping the focus on key deliverables and direction, creating the right atmosphere- all these play a major part in building effectiveness of the team. Read this interesting article on 5 simple, but often underplayed, steps any leader must take to build a successful team.

  • Leadership means many things to many people. But the best way to assess true effectiveness, is to gauge whether the leader is respected and remembered by the team for positive impact, well after the tenure is over. Here is an article on what Jack Welch thought about Leadership qualities.

  • After over a decade of intensive competition amongst 8-11 players in each circle, India is seeing both consolidations and closures in the telecom industry. The ideal number of players was always 4, as seen internationally too. Was licensing more than that number worth it? How much investment got wasted in the process, which could otherwise have been diverted to other needy sectors, is something worth evaluating.
    Here’s the news item about the announcement.

  • One of the most respected groups in India, the Tatas, have decided to shut down their telecom operations. Amongst the earliest to start private telecom services in India, the Tata Teleservices case is a good one to study the impact of early years’ strategic direction setting on the long term performance and fate of a business.
    The decision to start landline services when landline was at the end of it’s life; the decision to opt for CDMA, which was restrictive to consumers; and the delayed entry into GSM when the market had already started maturing and large brands had already dug in. All leading to the eventual shut down even though the business was owned by one of the largest and best business houses.
    Read the news item about this announcement.

  • To be an entrepreneur one needs to have the ability to think from scratch about every aspect; no pre conditioned mindsets or hardened up styles. An open mind, willing to adjust to the needs of the business, work with teams and be willing to take one day at a time helps. Here are some more tips in this article.

  • The other side of the grass is always greener! Old saying, but so appropriate when it comes to the debate of doing a paid job versus doing your own business. Here’s an interesting article that spells out the typical misconceptions employed people have about becoming entrepreneurs.

  • Will people continue to buy vehicles or will autonomous(driverless) vehicles lead to new models of transportation where hiring cars becomes the norm? With city roads getting crowded beyond comprehension, it is clear that public transportation needs to be reinvented. If personalisation is still a need, then autonomous cabs could be a reality; the only way to reduce the number of vehicles on our roads. Uber and others have shown the convenience of ordering cabs. So we might just be ordering driverless cabs in future! Here’s an interesting article on autonomous vehicles.

  • When the definition of truth changes from the absolute truth to other interpretations, such truth is called Post Truth. Post Truth is the interpretation of truth based on emotions and opinions of individuals and groups. Post Truth has always existed, but its impact on the world is now more visible. This video by explains this concept.

  • Entrepreneurs and Business Managers often get carried away by their social media presence and lose focus on the purpose of the presence on the media. Personal comments, Political comments, Negative posts about others etc affect the brand image & customer confidence in the maturity of the management.


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