Category Archives: Business Strategy

Reliance Industries (RIL) – Letter to Shareholders – FY2019

A robust foundation for the golden decade

Dear Fellow Shareowners,

It gives me great pleasure to share with you the exceptional performance of our Company in FY 2018-19. Our revenue and profit numbers have touched new heights, strengthening our position as India’s largest private sector company by market capitalization and profitability.

We now rank in the top 100 profitable companies in the Fortune Global 500 list of ‘World’s Largest Corporations’. We delivered a solid performance in our hydrocarbons businesses despite the volatile oil price environment and incremental capacities in some of our product categories.

Consumer businesses witnessed phenomenal growth in terms of revenues and profitability, with Reliance Retail and Jio now collectively contributing nearly 25% of consolidated segment EBITDA.

Global economic growth remained healthy at 3.6% in CY 2018, as against 3.8% in CY 2017, impacted by weaker performance in the European Union and China. Economic activity was driven by a boost in spending due to tax cuts by the US. Global trade growth was robust in the first half of 2018, but tapered later in the year with trade tensions and higher energy prices.

The Indian economy continued to witness an increase in investments, with Gross Fixed Capital Formation growth at a six-year high of 10%. Healthy industrial activity continued and service indicators sustained positive trends. Service exports growth is at a seven-year high of almost 17%. The Indian economy remains the fastest growing major economy in the world. Continue reading

Jamie Dimon on JPMorgan’s Big Data Strategy

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Large banks like JPMorgan have always had big data, but in a letter to shareholders released Wednesday, JPMorgan CEO Jamie Dimon likened the difference between yesterday’s and today’s big data to the difference between a rotary phone and a cellphone.

“To best utilize our data assets and spur innovation, we have built our own extraordinary in-house big data capabilities – we think as good as any in Silicon Valley – populated with more than 200 analysts and data scientists, which we call Intelligent Solutions,” Dimon wrote.

Dimon outlined at least five ways the firm has incorporated big data into improving business processes. In the corporate and investment bank, big data is being deployed to improve operational efficiency by analyzing errors. In custody for example, the firm uses big data to identify and find the root cause of breaks in processes or variances in the net asset values of funds. The result has reduced the operational burden and improved client service, Dimon wrote. Continue reading

Political Lobbying in the United States

As is often the case with any form of government, there are only so many resources to go around, especially in a country as large and diverse as the United States of America. Naturally, in a country where the government determines where and how its resources are divided amongst the many causes and interests of its people, there are various special interest groups and corporations that try to influence the government in its decision-making. This process is known as lobbying, and for better or worse, it plays a major role in American politics.

Controversial in nature, lobbying is typically carried out by well-connected advocates, lawyers, or ex-government officials, who are paid to use their influence with politicians and other public officials to sway political favor one way or another. The connections these lobbyists have with said bureaucrats is often of a very personal nature, and in some cases these relationships span the course of several years or decades, if not their entire life. Continue reading

Evolving Role of Social Media In Business

In business, advertising is often critical to success and companies will go great lengths to promote their product(s) or service(s). These days, no matter where consumers are, advertisements are everywhere. From billboards to buses and even their own phones, consumers are constantly barraged by advertisements, whether they like it or not. With the dawn of social media in an age of information, companies have found ways to incorporate themselves into consumers’ very lives, with their incessant need to promote as strong as ever. Continue reading

Creating Partnerships for Business Growth

When crafting a business partnership, it’s important to take a number of things into consideration, especially if a partnership is expected to stand the test of time. Business partnerships are established for many reasons, but of course when going into business with someone, it’s important to trust them. Trust can be a hard thing to develop, but a partnership isn’t much of a partnership without a degree of trust.

When forming a partnership, both parties should spell out exactly what their expectations are and what they’re contributing, and more importantly get all of that in writing on a legally binding partnership agreement. This way if either party steps out of line, they can hold each other accountable. Continue reading