A short description of what makes google keep going?

Google was founded on 4th September 1998 by Lary Page and Sergey Brin. Since its inception, Google has consistently worked for providing information to people worldwide. To enhance its user experience it uses innovation as its major tool. Since 2003, every year it added at least two major developments in its products and services which helped to increase its market share as well as its profitability.

                                                                          Google Inc. has a sound business strategy supported by successful implementation and execution. 95% of its revenues come from advertisement. Google gives its users the best service luring them to use it more and more and then target them with relevant advertisements. At first, they attained expertise in their core area that is “providing information” worldwide that helped it to gain world recognition at a fast rate. People from all over the world started using it and then it used its popularity and wide user base to market its other products and services like Gmail, Youtube, Nexus Smartphones, etc. Some of the areas where Google has done good job are following:

a) User/Audience/ Customer: From identifying needs of users or customer to providing services to them, Google has done his best. It knew that people needed information and that too at a fast rate. To deliver faster search results it has used most efficient technology and techniques like PigeonRank and PageRank. Its search suggestions are useful. Its spellcheck feature allows users to search even those things on the web about which the user has just heard of. All these things help in gaining and retaining users.

                            As on 25/3/2014, there were 187 Million monthly unique visitors to Google sites which show how popular it has become among people.

b) Reach and Market Share:  Google has worldwide audience reach. Every person uses it in some form, be it Google Search Engine, Gmail, Google+, Chrome, etc. Almost 12 billion search results were executed by Google in February 2014.

After seeing growth in smartphone users, it launched Android operating system for cell phones in May 2010 which it upgrades every year. As of now its share in the search market is 71.35%.  All these facts and figure suggests that Google has successfully implemented its market strategy that resulted in increased reach and market share and has also enabled it to fairly penetrate those markets which were new to it.

c) Products and Services: This is the area where google has outperformed almost every entity and has set a high benchmark which Google itself keeps on increasing. Be it Google Chrome, Gmail, Android or Nexus phones, Google keeps on delivering an improved version of its product and services.

                                       Its spending on R&D for the years 2011, 12,13 and 14 were 5.165, 6.793, 7.724 and 8 billion USD respectively. Introducing Android which is a Linux-based operating system for cell phones was an innovative idea welcomed all over the world and now every 7 out of 10 smartphones are based on Android.  Google Street view, introduced on 25th May 2007 is another innovative feature of Google Maps which provides panoramic views of various streets and places. This feature has enhanced user experience a lot. Google has now started offering apps for business different needs of various companies. By launching such products it is trying to enter a new market which is currently dominated by Microsoft. Google is ready to provide those services which are currently being provided by products like Office 365. Google’s aggressions can be determined by the fact that it is offering its apps and software for free to even those willing customers whose product and service contract with their current service provider’s due to expire only after 18 months. Hence, we can say that Google has also worked well in product and service innovation and its strategy regarding them, to some extent, is flawless.

d) Human Resource and Corporate Culture: This is also an area where Google has distinguished itself from other entities. The management team of Google consists of Executive Officers, Senior Leadership and Board of Directors. The success of any entity depends on its employees. Employee benefits, satisfaction and appraisal help in gaining maximum output from employees. Therefore, Google has adopted a corporate culture where its junior employees are free to ask questions and give suggestions to any member of management team. Google has consistently topped in various surveys conducted by world known media groups under the category of 'Best Company To Work For'. Google values ability over experience. So there are chances that a person who has less experience but more skills and ability than others can join and even be promoted. It boosts younger employees to give their best. Office interiors of every Google office have a different theme. Google has also carefully worked on the socio-cultural aspect for gaining employee’s loyalty. For example, at one of its office in India, its logo reads “GoogleBharat” which means Google India. By doing so it gives its Indian employees a separate identity and coveys the message that Google respect their values.

                              The corporate environment at the top level is also very sound. This is evident from the fact that most of the top management members are with Google for more than ten years and half of the members are with it since its initial stage. This is remarkably a positive sign for an MNC which is sixteen years old.

Considering all the above-mentioned factors, we can say that the Google Inc. has a sound business strategy which values its users & customers, focuses on their needs and increases its market share and profitability, while focusing on product and services and improving employee satisfaction.

However, Google faces tough competition. If we talk about Google’s core area that is providing information, its competitors are Yahoo and MSN.

If we consider its Operating System (OS) industry its major competitor is Microsoft which provides the Windows-based operating system for smartphones. Microsoft has also a large customer base due to which there are always great chances of it becoming a favorite platform for providing advertisement services to many companies. This can severely affect Google financial health which is mainly dependent on revenues from advertisement. Microsoft is also a mature entity in OS industry.

              The industry in which Google operates is fast growing and changing rapidly. Google should adopt futuristic approach so that it can anticipate changes of industry and adapt to those changes.

Economy of Trallution

Before you start scratching your head to wonder what Trallution means I would like to make it clear that I have termed combination of Traffic-Pollution as Trallution. Hit the Delhi-Gurgaon Express Way between 8am to 11am and 6pm to 9pm and your patience will be tested like anything. Sometimes it takes 2 hours during wee hours to travel from Dhaula Kuan to Sohna Road says Rajesh, a driver operating under Uber. Inaugurated in 2008, the Delhi Gurgaon expressway costed around 10 billion to the tax payers and within 7 years after its inauguration it has started costing more in terms of money, time and health. It sees traffic of 10 lakhs vehicles per day and set to get more every year. It means more traffic, more congestion, more jams, more time & money wastage. Of all the most critical concern is pollution which has made our Supreme Court act as an savior. Note, I said 'act'. 
You all must be thinking why I am writing all this on EcoSamyak. Well, it has got lot to do with economy. I'll explain it in latter part of this article.
So where were we? Aah..... the court. By court I mean not only Supreme Court but other courts and all governing bodies which have authority of passing order.

Where was the court when the Expressway was being made without taking future into consideration? Should not a study was required before survey and land acquisition to evaluate the traffic in upcoming years? And if any survey was done I would like to meet that gentleman who conducted? Or couldn’t have Supreme Court taken suo moto action and direct all highway projects to be made only after rationally evaluating amount of traffic expected to come in future? We must accept that our policies lag and we take decisions in panic. Decisions made in panic are often the decisions made without carefully thinking. Take for example the Supreme Court's decision to ban sale of diesel vehicles with engine capacity of above 2000cc. If reducing pollution was the goal then why not to ban old diesel vehicles that emits more poisonous gas than new ones. There are many small things which we don’t even think could increase road jams and accidents but they actually do. For example, in India the prime location for any establishment is just beside the highway which promotes more entry and exit points on highways leading to thousands of accidents while crossing roads. Entry and exit points slow down ongoing traffic on both adjoining roads which increases relatively during peak hours.

Now let me explain how economy is involved in all this pollution and traffic mess. After, the courts order to ban sale of diesel vehicles above 2000CC in Delhi, many car brands got affected. If we go by percentage, most affected are the luxury car makers like Mercedes, BMW, Audi, etc. These brands mainly operate in large metro cities. After ban, they experienced significant decline in their sale as they saw, Delhi, their major chunk of sale being taken away. Other brands like Mahindra and Tata has decided to downsize the engine capacity of their respective SUVs like Scorpio and Safari Storme. This was all about the major players, now come to the smaller ones.

Piyush Rai, a diesel Indigo owner of Lucknow was disappointed after Ola denied registering his vehicle under it. Such is the fear of Supreme Court’s Delhi verdict that Ola has decided to operate only petrol and CNG vehicles in Lucknow. I don’t know if the same is with other tier-2 cities. This means that not only the diesel vehicle owners of Delhi NCR but of other cities are also affected. Many MNC employees working in Delhi NCR went through serious hardship due to ban. Thousands of productive working hours were lost due to this hardship which in turn, although for a short time, affected the economy of service sector (which is largest contributor to GDP of India). I am not saying that eco-friendly initiatives should not be implemented. But alternatives should also be provided. The court should have directed Delhi Metro Rail Corporation to stretch their operating time and to provide metro feeder buses at every thirty minutes during night. If such was the directives of court many people would have appreciated the ban. Now let’s come to another reality. Although people may have experienced serious hardship due to ban, the truth is pollution is becoming a very serious issue. Carbon monoxide is an odorless toxic gas. People don’t even realize as they inhale it while stuck in traffic jam. So what other options do we have? Obviously, to have an eco friendly alternatives for urban commutation. Lithium, an electric cab operator of Bangalore has good advantage to harness such opportunity.  Mahindra, which produces electric car e2o is also seeing it as an opportunity to increase the sale of its eco friendly car. Tesla Motors launched Model 3 in April in India and got 180000 pre-orders. At higher end we have Model 3. At lower end we have Mahindra e2o which slowly and steadily gaining recognition amongst buyers. So needless to say that electric cars have good future in Indian market. If we really want to address pollution and traffic, we should also focus on public transport. Delhi Transport Corporation, which is running low on its fleet(4705 to be precise) struggles to cope with around forty five lakhs commuters daily and particularly during odd even nightmare it becomes worse. So it is needless to say that the deficit in quantity should be compensated by adding electric busses. And who will be benefitted most in terms of economy if Delhi Govt. decides to do so? Well, anyone from Tata to Volvo.

At last I would say that time has come that we should take effective steps to cure problem of Trallution taking future into consideration and keeping in mind that it won’t hurt common people much. 

Brands as Collaterals

Mr. Vijay Mallya got away with Rs. 9000 crores he owes to 3.5% tax payers of the total Indian population. He has become so important that news agencies gave hundreds of hours on debating whom to blame which helped advertisers more than lenders. He has become a case study among private bankers and nightmare for many current and ex-bankers of PSU banks. Even our PM, Mr. Modi, had to mention him indirectly in his address to NRIs in Brussels. Banks, RBI, ED, CBI and our proactive news channels are behaving as if they will hunt down Mr. Mallya like Mossad hunted Munich attackers. Economists, industry experts, socialist think tanks, etc. are deducing on news channels the signs and reasons of this LoanGate and lenders are finding themselves floundering in dozens of cases in Debt Recovery Tribunal(DRT) and courts. Had there been so much of pondering before gifting loans to Mr. Mallya, he wouldn't have been awarded by Diageo Plc. with $75 million to step down as Chairman of United Spirits Limited, although Bengaluru DRT stopped Deagio from doing that.Well, I have no interest in lecturing on what went wrong with Kingfisher Airlines(KFA) or whom to blame for this disaster. Rather there is something more important that has come out of this incidence which relates to the initial stage of loan disbursement.
Suppose you want a loan of above Rs. One Crore for a Small and Medium Enterprise (SME). It is very likely that you'll have to hypothecate your machinery that will be purchased with the loan amount and give a personal guarantee. Bank will also demand charge over all current assets and a third party guarantee. But KFA was very lucky indeed. Banks gave the loan to loss making KFA on brands as collateral whose promoter had no past experience in aviation industry. Remember, these fictitious assets (Brands) was not made over years of doing business and gaining trust and loyalty from customers, as has happened in the case of Patanjali, rather spending hefty amounts on advertisement and promotion. Even Nokia, with enormous brand value and twenty years presence in mobile phone market, got swept away by Samsung due to lack of demanding product portfolio and future ready strategy. So the question arises as to whether bankers took cognizance of this brand value and KFA's future? One has to think about the viability of a business before giving hundreds of crores.
Moreover, a brand is something which is nothing in itself. Brand value and loan repayment capacity of a company is directly proportional to the market presence and profitability.  The point is if the company incurs losses in eight consecutive quarters without capturing significant market share then it goes without saying that its paying capacity and brand value are bound to deteriorate over the period of time. In a case of non repayment of loans, collaterals are considered to be recovery instruments. Whereas in the case of KFA, the value of collaterals (Brands) was bound to yield nothing in case severe financial crisis resulting in the grounding of aircraft.
The worst strategical mistake done by KFA was to buy Deccan Airlines. Have you ever heard of a loss making company acquiring another loss making a company in the aviation industry? The losses of KFA and Deccan for FY 2005-06 were Rs. 239.59 crores and Rs.340.55 crores respectively.This was against the rule of this sector with cut-throat competition and high operating cost. A news report by The Times of India says that every hoax call costs an airline Rs.2 crores. That article is enough to make you understand how much important is time and efficient operation in the aviation sector.
Profit and loss are part of every industry. Every bank has Non Performing Assets (NPAs). NPAs and losses are unavoidable. Banks can't stop the business of their clients from becoming unprofitable. What they can do is to take adequate measures to secure their loans. Banks should understand that what is available now as a security may not be available later. The way of doing business has changed rapidly during past one decade and banks specially PSUs should change their policies as well. PSU banks need to be more proactive. If they keep on doing such  drastic mistakes and getting involved in suits and litigation they will loose focus on their core areas and somebody else, e.g. digital wallet companies like Paytm, will eat their share of business.

BUDGET PREDICTION: 2016-17

·        Looking at the Govt.’s keenness on implementation of Swach Bharat Abhiyan at every corner of India we can expect the SBC to increase from 0.5 % to 1%.

·        Excise on tobacco, liquor, SUVs and imported luxury items will be increased but Service tax rates are likely to remain same.

·        There may be slight increase in the Tax Exemption Limit from Rs. 2.5 lakhs to Rs. 2.75/3.00 lakhs.

·        To promote first time entrepreneurs, particularly startups, Govt. may insert additional deductions u/s 80 for such individuals/entities apart from the tax soaps announced earlier.

·        To promote Make in India initiative Govt. will also give tax soaps and rebates on Indian made goods.

·        After burning their fingers due to El Nino and farmer’s agitation during summer of 2015 Govt. is most likely to introduce loan waiver and relaxation schemes for farmers and increase its allocation for drought relief fund.

·        Govt. may also introduce some schemes to link Startup India and Make in India initiative for the ultimate benefit of Agriculture and Rural Development.

·        Apart of above it may also be expected that excise on agricultural equipment and tools will be decreased and rebate on seeds and urea will be increased.

·        With UP Assembly Elections in mind the Govt. is most likely to bring some good news for sugarcane farmers.

·        To promote clean energy Govt. is expected to give tax soaps for manufacturing of solar cells and equipments.

·        Loans for horticulture and animal husbandry will be provided at cheap rates.

·        More funds will be awarded for inland waterways port.

·        Announcement of some new Agriculture Universities and Research Institutes is also expected.

·        There may be announcement of projects like GIFT city.

·        Considering the immediate requirement of banks to comply with Basel lll norms it is also expected that Govt. will announce some steps to help banks raise their capital.