Case Study: Cisco “Self-Defending Network” Ad Campaign

Besides being one of the NASDAQ’s fastest-growing stocks during the late 1990s, Cisco was also the world’s leading producer of switches and routers that directed traffic across the Internet. In 1998 Cisco released advertising that encouraged Internet usage, which in turn increased the demand for Cisco’s hardware. Two years later Cisco’s ad agency, Hill, Holliday, Connors, Cosmopulos, Inc., introduced a $43.8 million campaign with the tagline ‘‘Empowering the Internet generation.’’ The campaign’s television spots, including one titled ‘‘Factory,’’ featured Cisco’s hardware increasing businesses internet usage, which indirectly boosted the businesses profits. After the technology sector plummeted in late 2000, Cisco did not release a campaign for almost three years. In June 2002 Cisco awarded its advertising account to DarkGrey, the technology unit of Grey Global Group. For its first few months doing business with Cisco, DarkGrey developed a campaign with the tagline ‘‘Advancing the human network.’’ None of the DarkGrey Continue reading

Divisional Performance Measurement

Performance measurement is the performance-based management process which is flowing from the organizational mission and the strategic planning process. Divisional performance measurement includes the objective and subjective assessments of the performance sub-units of an organization such as divisions or departments. Divisional performance measurement are effective in ensure that a strategy of organisation is successfully implemented by monitor a divisions effectiveness in satisfying its own predetermined goals or stakeholder desires. Divisional performance measures may be based on non-financial as well as on financial information. Divisional Performance Measurement – Financial Measures 1. The Return on Investment (ROI) Nowadays, most of companies concentrate on the return on investment (ROI) of a division that is profit as a percentage in direct relation to investment of division which instead of focusing on the size of a division’s profits. ROI addressed divisional profit as a percentage of the assets employed in the division. Assets employed can Continue reading

Rights, Duties and Disqualifications of Directors of a Company

Section 2(13) defines a Director as, “any person occupying the position of director by whatever name called”. Thus, a person will be deemed to be a director if he performs the functions of a director, though he may be named differently. A director is that   person who has full control over the direct management and conduct of the company. The directors of a company are collectively referred as the “Board of Directors”, or “Board”. Only individuals can be directors. No body corporate, association or a firm can be appointed director of a company. Rights of Directors i) Right to Participate in the Affairs of the Company: A director, validly appointed, has a right to attend the meetings and participate in the affairs of the company regarding direction, supervision and control, etc. ii) Right to have Remuneration: Every director has a right to remuneration fixed either under any contract or Continue reading

Build Own Operate Transfer (BOOT) Model

Build Own Operate Transfer (BOOT)  funding model   of project financing involves a single organization, or consortium (BOOT provider) who designs, builds, funds, owns and operates the project for a defined period of time and then transfers this projects ownership across to a agreed party. BOOT projects are a way for governments to bundle together the design and construction, finance, operations and maintenance and potentially marketing and customer interface aspects of a project and let these as a package to a single private sector service provider. The asset is transferred back to the government after the concession period at little or no cost. The Components of Build Own Operate Transfer (BOOT) Model: Build: The concession grants the promoter the right to design, construct, and finance the project. A construction contract will be required between the promoter and a contractor. The contract is often among the most difficult to negotiate in Continue reading

Consensus and Its Significance in Business

What is Consensus? The concept of consensus has become quite familiar and desirable means of informal business communication not only in the political fields but also in the commercial spheres as well. It is a common agreement of opinion on a given problem among the majority of people in a group or community. The board meeting of commercial organizations takes certain decisions through consensus. Sometimes, merely a copy of resolution is circulated among the members of a particular group to get their approval. When the decisions are taken unanimously, the unity of the group is recognized. It projects a good image of the business house and the status of the organization is raised. It also suggests high morale of the management to the employees, customers, shareholders, and other people. Consensus does not mean that there exist no opposite views among the members of the group. Of course, perfect unanimity should Continue reading

National Securities Clearing Corporation Ltd. (NSCCL)

National Securities Clearing Corporation Ltd. (NSCCL) is a wholly owned subsidiary of NSE and was incorporated in August 1995. It was the first clearing corporation to be established in the country and also the first clearing corporation in the country to introduce settlement guarantee. It was set up with the following objectives: to bring and sustain confidence in clearing and settlement of securities; to promote and maintain, short and consistent settlement cycles; to provide counter-party risk guarantee, and to operate a tight risk containment system. Clearing and Settlement by  National Securities Clearing Corporation Ltd. (NSCCL)   National Securities Clearing Corporation Ltd. carries out the clearing and settlement of the trades executed in the equities and derivatives segments of the NSE, It operates a well-defined settlement cycle and there are no deviations or deferments from this cycle. It aggregates trades over a trading period, nets the positions to determine the liabilities Continue reading