Business Tips and Marketing Advices

Posts Tagged ‘corporate mission’

Most investors realize that it’s important for a company to have a good management team. The problem is that evaluating management is difficult – so many aspects of the job are intangible. It’s clear that investors can’t always be sure of a company by only poring over financial statements. Fallouts such as Enron, Worldcom and Imclone have demonstrated the importance of emphasizing the qualitative aspects of a company. There is no magic formula for evaluating management, but there are factors to which you should pay attention. In this article we’ll discuss some of these signs.

The Job of Management
A strong management is the backbone of any successful company. This is not to say that employees are not also important, but it is management that ultimately makes the strategic decisions. You can think of management as the captain of a ship. While not physically driving the boat, he or she directs others to look after all the factors that ensure a safe trip.

Theoretically, the management of a publicly traded company is in charge of creating value for shareholders. Management is to have the business smarts to run a company in the interest of the owners. Of course, it is unrealistic to believe that management only thinks about the shareholders. Managers are people too and are, like anybody else, looking for personal gain. Problems arise when the interests of the managers are different from the interests of the shareholders. The theory behind the tendency for this to occur is called agency theory

Increased mortgage

Many people opt for a short fixed interest period at the end of a mortgage. But after this short period the interest rate sharply higher.

A mortgage

At the closing of a mortgage, the monthly costs for most people prevail. This explains the success of interest-only mortgage and investment mortgage. The mortgage is tax deductible so that during the repayment term has become less common. You can better your money in a savings account then use to redeem.

Short fixed rate period

In times of low interest rates, you can close a mortgage with a fixed interest rate period of five years at a rate below 5%. For longer periods you have a higher percentage of mortgage payments. However, in many cases safer to opt for a longer period, because interest rates in a short period can significantly increase. Most people buy a house for shelter based on the maximum they can spend. This has the disadvantage that a sharp rise in mortgage rates in the next period may not be able to bear (assuming a similar income as five years ago).

Long periods of rate fixation

Close your mortgage in a period of high interest rates, you may consider it not for such a long period of twenty years to fix. In the early eighties we had in the Netherlands with mortgage rates above 10%. Did you this time bought a house with a long fixed-interest would you have in times of low interest rates to higher interest stuck.

A good corporate mission, you must have the following characteristics:
* Must be clear and understandable to all members of the company.
* Should not be too limited to arrive at limiting the actions of members of the company, but it should not be too wide to get to cause confusion about what the company does.
* Must distinguish the company from similar ones.

To formulate the mission of a company, we can consider the following elements:
* Customers: Who are our customers?
* Products: what are our main products or services?
* Market: What is our market?
* Technology: What is our technology?
* Interest in growth: we are interested in economic goals?
* Philosophy: What are our beliefs, values or principles?
* Capacity: what is our differentiation and our competitive advantage?
* Concern for public image: Do we care about social issues, community or environmental?
* Concern for employees: we care about our workers?

Read the rest of this entry »