Smartest Business Moves In History.....

[Krish]

[size=5][color=#FF0000]Story 1:[/color][/size]

[color=#333333]In January 1914, Henry Ford announced a radical decision. He increased the worker wages from $2.34/day to $5/day and reduced the working time from 9 hours to 8 hours per day. Other businessmen derided Ford as a socialist, while common public heralded him as a hero. People even prodded him to run for a President. Even today, Ford's 5 dollar workday is widely remembered in the US.[/color]

[color=#333333]Newspapers had a field day. Ford's PR also worked the press to make this move as an egalitarian one (to make the workers rich enough to buy Ford's cars).[/color]



[b] Business move, not just an egalitarian one[/b]

[color=#333333]While this was probably the most generous pay hike in corporate history, Henry Ford was no fool. By the end of 1914, Ford's 13000 workers made 260,000 cars annually while the entire rest of the industry with 66000 workers produced only 280,000 cars. Ford's workers were [/color][b]5 times more productive[/b][color=#333333]! (Although a part of it is owed to the assembly line innovation introduced a few years before this).[/color]

[color=#333333]Within 2 years of this radical pay rise, Ford's profit jumped 200% to $60 million/year. In another 5 years, Ford was rolling out Model - T's every 24 seconds (in the initial years it took 12 hours)!! [/color][color=#333333][url="http://corporate.ford.com/news-center/press-releases-detail/677-5-dollar-a-day"]Henry Ford's $5-a-Day Revolution[/url][/color][color=#333333] and[/color][color=#333333][url="http://www.econedlink.org/lessons/index.php?lid=676&type=student"]Henry Ford and the Model T: A Case Study in Productivity (Part 2)[/url][/color]


[b] How?[/b]


[color=#333333]Until that time, factory workers were meant to be squeezed and thrown out. Labor was not seen as an asset back then. In a single move, he created a new corporate workforce and heralded the creation of the American middle class. Concepts such as 8-hour days and HR departments owe their existence partly to the ideas generated from this. [/color][list]
[*][b]Employee turnover: [/b]Until 1914 Ford hired 300 men a year for every 100 jobs. There were a massive worker turnover as the tired and bored workers kept shifting jobs. Now, Ford provided an offer that was too good for the workers. The best of the workers were both motivated to stay and work.
[*][b]Absenteeism dropped. [/b]Until then, factory workers randomly dropped out of work in the middle. They had little to lose, since they were so poorly paid. This absenteeism severely affected the assembly lines. No amount of force/threats worked. But, now they had golden handcuffs.
[*][b]Massive movement of smart labor to Detroit. [/b]Soon word got around and there was a gold rush in Detroit. Within 24 hours, 10000 men queued up outside Ford's factories. Ford could now be very picky and hire from the best who would dramatically improve efficiencies in the automobile industry.
[*][b]Skyrocketing productivity: [/b]The workers got into a rhythm as they were not shifting jobs any more and that meant they were moving up the learning curve. Ford could now introduce advanced processes without worrying too much about training expenses.
[/list]
[color=#333333]The industry was changed and a new era of workers with a low turnover appeared in US corporations. There is so much present corporations can learn (especially in countries like India, where we are still in the pre-Ford era when it comes to our manufacturing mindset).[/color]

[moviefan]

is this true ??

[k2s]

[quote name='krish' timestamp='1368828852' post='1303767612']
[color=#333333]In January 1914, Henry Ford announced a radical decision. He increased the worker wages from $2.34/day to $5/day and reduced the working time from 9 hours to 8 hours per day. Other businessmen derided Ford as a socialist, while common public heralded him as a hero. People even prodded him to run for a President. Even today, Ford's 5 dollar workday is widely remembered in the US.[/color]

[color=#333333]Newspapers had a field day. Ford's PR also worked the press to make this move as an egalitarian one (to make the workers rich enough to buy Ford's cars).[/color]



[b] Business move, not just an egalitarian one[/b]

[color=#333333]While this was probably the most generous pay hike in corporate history, Henry Ford was no fool. By the end of 1914, Ford's 13000 workers made 260,000 cars annually while the entire rest of the industry with 66000 workers produced only 280,000 cars. Ford's workers were [/color][b]5 times more productive[/b][color=#333333]! (Although a part of it is owed to the assembly line innovation introduced a few years before this).[/color]

[color=#333333]Within 2 years of this radical pay rise, Ford's profit jumped 200% to $60 million/year. In another 5 years, Ford was rolling out Model - T's every 24 seconds (in the initial years it took 12 hours)!! [/color][color=#333333][url="http://corporate.ford.com/news-center/press-releases-detail/677-5-dollar-a-day"]Henry Ford's $5-a-Day Revolution[/url][/color][color=#333333] and[/color][color=#333333][url="http://www.econedlink.org/lessons/index.php?lid=676&type=student"]Henry Ford and the Model T: A Case Study in Productivity (Part 2)[/url][/color]


[b] How?[/b]


[color=#333333]Until that time, factory workers were meant to be squeezed and thrown out. Labor was not seen as an asset back then. In a single move, he created a new corporate workforce and heralded the creation of the American middle class. Concepts such as 8-hour days and HR departments owe their existence partly to the ideas generated from this. [/color][list]
[*][b]Employee turnover: [/b]Until 1914 Ford hired 300 men a year for every 100 jobs. There were a massive worker turnover as the tired and bored workers kept shifting jobs. Now, Ford provided an offer that was too good for the workers. The best of the workers were both motivated to stay and work.
[*][b]Absenteeism dropped. [/b]Until then, factory workers randomly dropped out of work in the middle. They had little to lose, since they were so poorly paid. This absenteeism severely affected the assembly lines. No amount of force/threats worked. But, now they had golden handcuffs.
[*][b]Massive movement of smart labor to Detroit. [/b]Soon word got around and there was a gold rush in Detroit. Within 24 hours, 10000 men queued up outside Ford's factories. Ford could now be very picky and hire from the best who would dramatically improve efficiencies in the automobile industry.
[*][b]Skyrocketing productivity: [/b]The workers got into a rhythm as they were not shifting jobs any more and that meant they were moving up the learning curve. Ford could now introduce advanced processes without worrying too much about training expenses.
[/list]
[color=#333333]The industry was changed and a new era of workers with a low turnover appeared in US corporations. There is so much present corporations can learn (especially in countries like India, where we are still in the pre-Ford era when it comes to our manufacturing mindset).[/color]
[/quote]

agreed.edo movie kuda chusa... women's rights & wages increases equal with men ani...... ford lo

[Krish]

yes brother its true...

[victor_raja]

[img]http://i1354.photobucket.com/albums/q681/mutamesthri/dubai-seenu2-o1_zps6ce7754b.gif[/img]

[kakatiya]

Weekends concept also started with henry cord

[Krish]

u see everything is impossible until someone does it...

[jersey babai]

gp

[Krish]

[size=5][color=#FF0000]Story 2:[/color][/size]

[color=#333333]Dell computer used to outsource the manufacturing of their motherboards to a Taiwanese company. [/color]

[color=#333333]Then, one day that little company presented Dell with a new offer: they could start assembling whole computers for Dell. For Dell, this meant higher profitability: they'd have the same revenue, but with a lower cost base. For some reason the Taiwanese didn't seem to care as much about profitability, only cash. But that's probably because they're still a bit backwards in Asia and don't have any Harvard Business School-educated MBAs to teach them otherwise.[/color]

[color=#333333]Anyway, that arrangement worked out well. One day the company came back to Dell with a new offer: they could take over Dell's entire supply chain. For Dell, that meant even lower costs, and so even better profitability. After that arrangement was put into practice the company came back to Dell and offered to start designing computers for them. Brilliant! Dell could now focus on its core competency, [/color][i]branding[/i][color=#333333], and let the Taiwanese do all the unglamorous work of actually building the things.[/color]

[color=#333333]After that arrangement was put into practice the company took another trip to the US, but this time they didn't visit Dell. They went to Best Buy, and offered them PCs that were as good as Dell's but at a significant discount.[/color]

[color=#333333]By the way, that company's name was ASUS[/color]

[Krish]

[color=#ff0000][size=5]Story 3:[/size][/color]

[color=#ff0000][size=5][img]http://junction.instantwebworld.com/wp-content/uploads/2013/03/bmawow3-7-12.jpg[/img][/size][/color]

[color=#333333]Before 1977, the net worth of Reliance Industries was approximately INR 1 Million. By 1983, it had jumped up to more than INR 1 Billion. Today, the net worth of Reliance is about[/color][b] $90 Billion (INR 4,930 Billion)[/b][color=#333333]. Dhirubhai Ambani, the founder, was known for his brilliant management skills and his uncanny ability to tackle stock markets. This one particular strategy of his is my personal favorite: [/color]

[color=#333333]On 18th March 1982, the Bombay Stock Exchange (BSE) crashed and the stock prices of all major companies, including Reliance, [/color][b]fell by nearly 10%[/b][color=#333333]. A bear cartel (group of stock brokers) from Calcutta decided to take advantage of this opportunity, and started to short sell the shares of Reliance. [/color]

[color=#333333]Now for those who don't know, here is how the system of short selling works- You borrow 100 shares of a company (from your friend) at a price of [/color][i]x[/i][color=#333333] each, and immediately sell them for a total of [/color][i]100x. [/i][color=#333333]Subsequently, the share prices drop to, say, [/color][i]0.9x[/i][color=#333333]. Now, you buy 100 shares (with your own money) for a total of [/color][i]90x[/i][color=#333333]. You return these shares to your friend, who has to accept them even though the market price of these shares as dropped. Since you sold those shares for [/color][i]100x[/i][color=#333333], you earn[/color][i]10x [/i][color=#333333]in profit.[/color]

[color=#333333]A group of stock brokers commonly referred to as [/color][i]"The Friends of Reliance"[/i][color=#333333]started buying these short sold shares. The bear [/color][color=#333333]cartel[/color][color=#333333] was under the belief that the buyers won't have enough money to complete the transactions and would have to reach a settlement based on the [/color][b]Badla[/b][color=#333333] trading system. The bear cartel short sold [/color][b]1.1 Million [/b][color=#333333]shares in all. [/color]

[color=#333333](The [/color][i]Badla[/i][color=#333333]trading system essentially worked as follows- If you didn't have enough money to buy the shares, you asked someone else to buy them for you. When you had enough money, you paid the amount back to the guy who bought them for you, plus an interest which was decided by the [/color][b]BSE[/b][color=#333333].)[/color]

[color=#333333]So [/color][i]The Friends of Reliance [/i][color=#333333]kept on buying the short sold shares till the day of settlement (April 30, 1982), and the share price of Reliance was maintained at INR 152 per share. On the day of the settlement, the Calcutta based brokers were shocked when [/color][i]The Friends of Reliance [/i][color=#333333]declared that they indeed had enough money to buy the shares (which was given to them [/color][u]by Dhirubhai Ambani himself[/u][color=#333333]), and they demanded the shares from the bear cartel. In case of non-settlement, they demanded a penalty of INR 35 per share from the bear cartel, which was[/color][color=#333333]ridiculously high. So, the bear cartel had to buy the required shares themselves (remember, the share prices hadn't dropped) on the very day of the transaction in order to complete the transaction. Thus, they [/color][u]failed to earn a single rupee[/u][color=#333333].[/color]

[color=#333333]At the same time, due to such a huge number of shares (1.1 Million) being bought on a single day (i.e. April 30), the demand of the shares increased drastically, and the price of a single reliance share jumped from INR 152 to above [/color][b]INR 180[/b][color=#333333] [/color][i]within half an hour[/i][color=#333333]. The rest, as they say, is history.[/color]

[color=#333333]A true genius.[/color]

[Krish]

[size=5][color=#FF0000]Story 4:[/color][/size]

[color=#333333]Coca cola came to India and realised that their biggest competition is thumbs up, then owned by parle drinks. Then Coca cola offered a merger with Parle and were turned down. Knowing the scope of the competition, they bought over all the bottling plants that Parle used. Parle didn't have enough money to start their open plant. So now Parle went back to Coke for the merger. They said they weren't interested in a merger and took over thumbs up.[/color]

[JAPAN]

[TENALI_TELUGODU]

[quote name='krish' timestamp='1368828852' post='1303767612']
[size=5][color=#FF0000]Story 1:[/color][/size]

[color=#333333]In January 1914, Henry Ford announced a radical decision. He increased the worker wages from $2.34/day to $5/day and reduced the working time from 9 hours to 8 hours per day. Other businessmen derided Ford as a socialist, while common public heralded him as a hero. People even prodded him to run for a President. Even today, Ford's 5 dollar workday is widely remembered in the US.[/color]

[color=#333333]Newspapers had a field day. Ford's PR also worked the press to make this move as an egalitarian one (to make the workers rich enough to buy Ford's cars).[/color]



[b] Business move, not just an egalitarian one[/b]

[color=#333333]While this was probably the most generous pay hike in corporate history, Henry Ford was no fool. By the end of 1914, Ford's 13000 workers made 260,000 cars annually while the entire rest of the industry with 66000 workers produced only 280,000 cars. Ford's workers were [/color][b]5 times more productive[/b][color=#333333]! (Although a part of it is owed to the assembly line innovation introduced a few years before this).[/color]

[color=#333333]Within 2 years of this radical pay rise, Ford's profit jumped 200% to $60 million/year. In another 5 years, Ford was rolling out Model - T's every 24 seconds (in the initial years it took 12 hours)!! [/color][color=#333333][url="http://corporate.ford.com/news-center/press-releases-detail/677-5-dollar-a-day"]Henry Ford's $5-a-Day Revolution[/url][/color][color=#333333] and[/color][color=#333333][url="http://www.econedlink.org/lessons/index.php?lid=676&type=student"]Henry Ford and the Model T: A Case Study in Productivity (Part 2)[/url][/color]


[b] How?[/b]


[color=#333333]Until that time, factory workers were meant to be squeezed and thrown out. Labor was not seen as an asset back then. In a single move, he created a new corporate workforce and heralded the creation of the American middle class. Concepts such as 8-hour days and HR departments owe their existence partly to the ideas generated from this. [/color][list]
[*][b]Employee turnover: [/b]Until 1914 Ford hired 300 men a year for every 100 jobs. There were a massive worker turnover as the tired and bored workers kept shifting jobs. Now, Ford provided an offer that was too good for the workers. The best of the workers were both motivated to stay and work.
[*][b]Absenteeism dropped. [/b]Until then, factory workers randomly dropped out of work in the middle. They had little to lose, since they were so poorly paid. This absenteeism severely affected the assembly lines. No amount of force/threats worked. But, now they had golden handcuffs.
[*][b]Massive movement of smart labor to Detroit. [/b]Soon word got around and there was a gold rush in Detroit. Within 24 hours, 10000 men queued up outside Ford's factories. Ford could now be very picky and hire from the best who would dramatically improve efficiencies in the automobile industry.
[*][b]Skyrocketing productivity: [/b]The workers got into a rhythm as they were not shifting jobs any more and that meant they were moving up the learning curve. Ford could now introduce advanced processes without worrying too much about training expenses.
[/list]
[color=#333333]The industry was changed and a new era of workers with a low turnover appeared in US corporations. There is so much present corporations can learn (especially in countries like India, where we are still in the pre-Ford era when it comes to our manufacturing mindset).[/color]
[/quote]
Manaki salary thakkuva chesina 10000 vela mandi vuntaru line lo

[sboyr2r]

[quote name='krish' timestamp='1368957607' post='1303771735']
[size=5][color=#FF0000]Story 4:[/color][/size]

[color=#333333]Coca cola came to India and realised that their biggest competition is thumbs up, then owned by parle drinks. Then Coca cola offered a merger with Parle and were turned down. Knowing the scope of the competition, they bought over all the bottling plants that Parle used. Parle didn't have enough money to start their open plant. So now Parle went back to Coke for the merger. They said they weren't interested in a merger and took over thumbs up.[/color]
[/quote]

[jersey babai]