Jaydip Parikh » Management

Management Story : When You are in Deep Shit

Jaydip — Thu, 28 Jan 2010 17:11:44 +0000

Hey Friends !

I hope you like my previous Management Stories which I posted earlier and I got many comments on Management Story : Always have Presence of mind ! and I am very much sure you will also love this. This is wonderful story and also keep you update what you should do when you are in deep shit ?

A little bird was flying south for the Winter. It was so cold the bird froze and fell to the ground into a large field.

While he was lying there, a cow came by and dropped some dung on him. As the frozen bird lay there in the pile of cowdung, he began to realize how warm he was.

The dung was actually thawing him out! He lay there all warm and happy, and soon began to sing for joy. A passing cat heard the bird singing and came to investigate. Following the sound, the cat discovered the bird under the pile of cow dung, and promptly dug him out and ate him.

Morals of the story:

Not everyone who shits on you is your enemy.
Not everyone who gets you out of shit is your friend.
And when you’re in deep shit, it’s best to keep your mouth shut!

Management Story : Always have Presence of mind !

Jaydip — Mon, 05 Oct 2009 03:39:59 +0000

Once, a dog lost his way deep into the jungle. He almost fainted to see a lion coming straight to him at a very near distant.

“I will be dead today” , thought he.

There were some bones lying over there. He turned his back towards lion and started pretending as if he is eating those bones. When lion was very close to him he cried out loudly “Wow, what a fun eating a lion, by chance if I can get another one, it will be a treat “.

Lion thought “What a dangerous dog!!!!! He kills lions and eats it. Let me run away from here and save my life “.

Now, there was a Monkey hiding on the tree there watching the entire show. He thought ” It’s a good chance to tell the truth to the lion. Lion will become my friend and I will not have to run saving my life from him “. He just ran away to inform the entire episode to Lion. The dog had seen him going and quickly understood the ploy. Both lion and monkey were coming back to the dog and the lion was furious.

When lion was very close to him he again cried out loudly ” It has been half an hour and yet that stupid monkey can’t fetch another lion??!!!! “.

Moral: “It is by presence of mind in untried emergencies that the native metal of man is tested.”

Once, a dog lost his way deep into the jungle. He almost fainted to see a lion coming straight to him at a very near distant.

“I will be dead today” , thought he.

There were some bones lying over there. He turned his back towards lion and started pretending as if he is eating those bones. When lion was very close to him he cried out loudly “Wow, what a fun eating a lion, by chance if I can get another one, it will be a treat “.

Lion thought “What a dangerous dog!!!! He kills lions and eats it. Let me run away from here and save my life “.

Now, there was a Monkey hiding on the tree there watching the entire show. He thought ” It’s a good chance to tell the truth to the lion. Lion will become my friend and I will not have to run saving my life from him “. He just ran away to inform the entire episode to Lion. The dog had seen him going and quickly understood the ploy. Both lion and monkey were coming back to the dog and the lion was furious.

When lion was very close to him he again cried out loudly ” It has been half an hour and yet that stupid monkey can’t fetch another lion??!!!! “.

Moral of the Story: “It is by presence of mind in untried emergencies that the native metal of man is tested.”

Management Story : Lion and Fox

Jaydip — Fri, 17 Jul 2009 18:55:58 +0000

It’s a fine sunny day in the forest and a lion is sitting outside his cave, lying lazily in the sun. Along comes a fox, out on a walk.

Fox: “Do you know the time, because my watch is broken”

Lion: “Oh, I can easily fix the watch for you”

Fox: “Hmm… But it’s a very complicated mechanism, and your big claws will only destroy it even more”
Lion: “Oh no, give it to me, and it will be fixed”

Fox: “That’s ridiculous! Any fool knows that lazy lions with great claws cannot fix complicated watches”

Lion: “Sure they do, give it to me and it will be fixed”

The lion disappears into his cave, and after a while he comes back with the watch which is running perfectly. The fox is impressed, and the lion continues to lie lazily in the sun, looking very pleased with himself. Soon a wolf comes along and stops to watch the lazy lion in the sun.

Wolf: “Can I come and watch TV tonight with you, because mine is broken”

Lion: “Oh, I can easily fix your TV for you”
Wolf: “You don’t expect me to believe such rubbish, do you? There is no way that a lazy lion with big claws can fix a complicated TV”

Lion: “No problem. Do you want to try it?”
The lion goes into his cave, and after a while comes back with a perfectly fixed TV. The wolf goes away happily and amazed.
Scene :

Inside the lion’s cave. In one corner are half a dozen small and intelligent looking rabbits who are busily doing very complicated work with very detailed instruments. In the other corner lies a huge lion looking very pleased with himself.

Moral :

IF YOU WANT TO KNOW WHY A MANAGER IS FAMOUS; LOOK AT THE WORK OF HIS SUBORDINATES.

Management Lesson
In the context of the working world :

IF YOU WANT TO KNOW WHY SOMEONE UNDESERVED IS PROMOTED; LOOK AT THE WORK OF HIS SUBORDINATES.

Management Story : Market, Asset & Bankruptcy.

Jaydip — Sat, 21 Mar 2009 10:11:12 +0000

I got a mail from one of my friend which is having great Management Story. I just want to share the same with you. Kindly have a look this story is focusing on Market, Asset & Bankruptcy.

Here we go ………….

Once there was a little island country. The land of this country was the tiny island itself. The total money in circulation was 2 dollars as there were only two pieces of 1 dollar coins circulating around.

1) There were 3 citizens living on this island country. A owned the land. B and C each owned 1 dollar.

2) B decided to purchase the land from A for 1 dollar. So, now A and C own 1 dollar each while B owned a piece of land that is worth 1 dollar.

* The net asset of the country now = 3 dollars.

3) Now C thought that since there is only one piece of land in the country, and land is non producible asset, its value must definitely go up. So, he borrowed 1 dollar from A, and together with his own 1 dollar, he bought the land from B for 2 dollars.

A has a loan to C of 1 dollar, so his net asset is 1 dollar.
B sold his land and got 2 dollars, so his net asset is 2 dollars.
C owned the piece of land worth 2 dollars but with his 1 dollar debt to A, his net residual asset is 1 dollar.
Thus, the net asset of the country = 4 dollars.

4) A saw that the land he once owned has risen in value. He regretted having sold it. Luckily, he has a 1 dollar loan to C. He then borrowed 2 dollars from B and acquired the land back from C for 3 dollars. The payment is by 2 dollars cash (which he borrowed) and cancellation of the 1 dollar loan to C.
As a result, A now owned a piece of land that is worth 3 dollars. But since he owed B 2 dollars, his net asset is 1 dollar.

B loaned 2 dollars to A. So his net asset is 2 dollars.
C now has the 2 coins. His net asset is also 2 dollars.
The net asset of the country = 5 dollars. A bubble is building up.

5) B saw that the value of land kept rising. He also wanted to own the land. So he bought the land from A for 4 dollars. The payment is by borrowing 2dollars from C, and cancellation of his 2 dollars loan to A.

As a result, A has got his debt cleared and he got the 2 coins. His net asset is 2 dollars.
B owned a piece of land that is worth 4 dollars, but since he has a debt of 2 dollars with C, his net Asset is 2 dollars.
C loaned 2 dollars to B, so his net asset is 2 dollars.
The net asset of the country = 6 dollars; even though, the country has only one piece of land and 2 Dollars in circulation.

6) Everybody has made money and everybody felt happy and prosperous.

7) One day an evil wind blew, and an evil thought came to C’s mind. ‘Hey, what if the land price stop going up, how could B repay my loan. There is only 2 dollars in circulation, and, I think after all the land that B owns is worth at most only 1 dollar, and no more.’

A also thought the same way.

9) Nobody wanted to buy land anymore.

So, in the end, A owns the 2 dollar coins, his net asset is 2 dollars.
B owed C 2 dollars and the land he owned which he thought worth 4 dollars is now 1 dollar. So his net asset is only 1 dollar.
C has a loan of 2 dollars to B. But it is a bad debt. Although his net asset is still 2 dollars, his Heart is palpitating.
The net asset of the country = 3 dollars again.

10) So, who has stolen the 3 dollars from the country ? Of course, before the bubble burst B thought his land was worth 4 dollars. Actually, right before the collapse, the net asset of the country was 6 dollars on paper. B’s net asset is still 2 dollars, his heart is palpitating.

11) B had no choice but to declare bankruptcy. C as to relinquish his 2 dollars bad debt to B, but in return he acquired the land which is worth 1 dollar now.

A owns the 2 coins, his net asset is 2 dollars.
B is bankrupt, his net asset is 0 dollar. ( he lost everything )
C got no choice but end up with a land worth only 1 dollar
The net asset of the country = 3 dollars.

End of the story; BUT ,

There is however a redistribution of wealth.
A is the winner, B is the loser, C is lucky that he is spared.
A few points worth noting -

(1) When a bubble is building up, the debt of individuals to one another in a country is also building up.
(2) This story of the island is a closed system whereby there is no other country and hence no foreign debt. The worth of the asset can only be calculated using the island’s own currency. Hence, there is no net loss.
(3) An over-damped system is assumed when the bubble burst, meaning the land’s value did not go down to below 1 dollar.
(4) When the bubble burst, the fellow with cash is the winner. The fellows having the land or extending loan to others are the losers. The asset could shrink or in worst case, they go bankrupt.
(5) If there is another citizen D either holding a dollar or another piece of land but refrains from taking part in the game, he will neither win nor lose. But he will see the value of his money or land go up and down like a see saw.
(6) When the bubble was in the growing phase, everybody made money.
(7) If you are smart and know that you are living in a growing bubble, it is worthwhile to borrow money (like A ) and take part in the game. But you must know when you should change everything back to cash.
(8) As in the case of land, the above phenomenon applies to stocks as well.
(9) The actual worth of land or stocks depend largely on psychology.

(Taken from an Article published recently)