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Smartest Business Moves In History.....


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[quote name='krish' timestamp='1368957094' post='1303771726']
[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]
[/quote] :3D_Smiles:

diru gadi paisala valla frds ki ichi reliance shares konu ani seppadu annamata.....

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Posted

[quote name='krish' timestamp='1368955632' post='1303771723']
[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 damn 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]
[/quote]


idhi google chesthey yekkada dorakatledu.... fake anukunta

Posted

[quote name='Scrooge' timestamp='1368987144' post='1303772709']
:3D_Smiles:

diru gadi paisala valla frds ki ichi reliance shares konu ani seppadu annamata.....
[/quote]

yeah it was a master stroke which served two ways...1) reliance ni assam cheddam anukunna vallani control chesadu 2) same batch ki punch ichhi profit kottadu...

Posted

[quote name='Jambal_haat' timestamp='1368987349' post='1303772720']


idhi google chesthey yekkada dorakatledu.... fake anukunta
[/quote]

adi check cheyyaledu mama....quora lo vunte vestunna ivanni...inspiriring strategies....even if its fake good to know business strategies kara......:)

Posted

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

[color=#333333]Herbert Dow founded Dow Chemical in Midland, Michigan when he invented a way to produce bromine cheaply. He sold the chemical for industrial purposes all over the US for 36 cents per pound at the turn of the 20th Century. He couldn't go overseas, however, because the international market was controlled by a giant German chemical cartel that sold it at a fixed price of 49 cents per pound. It was understood that the Germans would stay out of the US market so long as Dow and the other American suppliers stayed within its borders.[/color]

[color=#333333]Eventually Dow's business was in trouble and he had to expand. He took his bromine to England and easily beat the cartel's fixed price of 49 cents per pound. Things were okay for a while until a German visitor came to Michigan and threatened Dow that he had to cease and desist. Dow didn't like being told what to do and told the cartel to get lost.[/color]

[color=#333333]Shortly thereafter German bromine started appearing for sale in the US for 15 cents per pound, way below Dow's price. The cartel flooded the US market, offering the chemical way below their own costs, intending to drive Dow out of business. But Dow outsmarted them. He stopped selling in the US market entirely and instead arranged for someone to secretly start buying up all the German bromine he could get his hands on. Dow repackaged it as his own product, shipped it to Europe, and made it widely available (even in Germany) at 27 cents per pound. The Germans were wondering 1) why wasn't Dow out of business and 2) why was there suddenly such demand for bromine in the US??[/color]

[color=#333333]The cartel lowered its price to 12 cents and then 10 cents. Dow just kept buying more and more, gaining huge market share in Europe. Finally the Germans caught on and had to lower their prices at home. Dow had broken the German chemical monopoly and expanded his business greatly. And customers got a wider range of places to buy bromine at lower prices.[/color]

[color=#333333]Dow went on to do the same trick to the German dye and magnesium monopolies. This is now the textbook way to deal with predatory price cutting.[/color]

[url="http://www.mackinac.org/article.aspx?ID=31"]Herbert Dow, the Monopoly Breaker[/url]

Posted

[quote name='krish' timestamp='1369001367' post='1303773081']
[size=5][color=#FF0000]Story 5: [/color][/size]

[color=#333333]Herbert Dow founded Dow Chemical in Midland, Michigan when he invented a way to produce bromine cheaply. He sold the chemical for industrial purposes all over the US for 36 cents per pound at the turn of the 20th Century. He couldn't go overseas, however, because the international market was controlled by a giant German chemical cartel that sold it at a fixed price of 49 cents per pound. It was understood that the Germans would stay out of the US market so long as Dow and the other American suppliers stayed within its borders.[/color]

[color=#333333]Eventually Dow's business was in trouble and he had to expand. He took his bromine to England and easily beat the cartel's fixed price of 49 cents per pound. Things were okay for a while until a German visitor came to Michigan and threatened Dow that he had to cease and desist. Dow didn't like being told what to do and told the cartel to get lost.[/color]

[color=#333333]Shortly thereafter German bromine started appearing for sale in the US for 15 cents per pound, way below Dow's price. The cartel flooded the US market, offering the chemical way below their own costs, intending to drive Dow out of business. But Dow outsmarted them. He stopped selling in the US market entirely and instead arranged for someone to secretly start buying up all the German bromine he could get his hands on. Dow repackaged it as his own product, shipped it to Europe, and made it widely available (even in Germany) at 27 cents per pound. The Germans were wondering 1) why wasn't Dow out of business and 2) why was there suddenly such demand for bromine in the US??[/color]

[color=#333333]The cartel lowered its price to 12 cents and then 10 cents. Dow just kept buying more and more, gaining huge market share in Europe. Finally the Germans caught on and had to lower their prices at home. Dow had broken the German chemical monopoly and expanded his business greatly. And customers got a wider range of places to buy bromine at lower prices.[/color]

[color=#333333]Dow went on to do the same trick to the German dye and magnesium monopolies. This is now the textbook way to deal with predatory price cutting.[/color]

[url="http://www.mackinac.org/article.aspx?ID=31"]Herbert Dow, the Monopoly Breaker[/url]
[/quote]haha soooofer

Posted

sooper bayya., GP, Inka vunte veyi., :)

[quote name='krish' timestamp='1369001367' post='1303773081']
[size=5][color=#FF0000]Story 5: [/color][/size]

[color=#333333]Herbert Dow founded Dow Chemical in Midland, Michigan when he invented a way to produce bromine cheaply. He sold the chemical for industrial purposes all over the US for 36 cents per pound at the turn of the 20th Century. He couldn't go overseas, however, because the international market was controlled by a giant German chemical cartel that sold it at a fixed price of 49 cents per pound. It was understood that the Germans would stay out of the US market so long as Dow and the other American suppliers stayed within its borders.[/color]

[color=#333333]Eventually Dow's business was in trouble and he had to expand. He took his bromine to England and easily beat the cartel's fixed price of 49 cents per pound. Things were okay for a while until a German visitor came to Michigan and threatened Dow that he had to cease and desist. Dow didn't like being told what to do and told the cartel to get lost.[/color]

[color=#333333]Shortly thereafter German bromine started appearing for sale in the US for 15 cents per pound, way below Dow's price. The cartel flooded the US market, offering the chemical way below their own costs, intending to drive Dow out of business. But Dow outsmarted them. He stopped selling in the US market entirely and instead arranged for someone to secretly start buying up all the German bromine he could get his hands on. Dow repackaged it as his own product, shipped it to Europe, and made it widely available (even in Germany) at 27 cents per pound. The Germans were wondering 1) why wasn't Dow out of business and 2) why was there suddenly such demand for bromine in the US??[/color]

[color=#333333]The cartel lowered its price to 12 cents and then 10 cents. Dow just kept buying more and more, gaining huge market share in Europe. Finally the Germans caught on and had to lower their prices at home. Dow had broken the German chemical monopoly and expanded his business greatly. And customers got a wider range of places to buy bromine at lower prices.[/color]

[color=#333333]Dow went on to do the same trick to the German dye and magnesium monopolies. This is now the textbook way to deal with predatory price cutting.[/color]

[url="http://www.mackinac.org/article.aspx?ID=31"]Herbert Dow, the Monopoly Breaker[/url]
[/quote]

Posted

[color=#ff0000][size=5]Story 6:[/size][/color]

[color=#333333]Early in the 1950s, officials in the treasury of the Arabian kingdom of Yemen noticed something funny happening to their country’s currency. The main unit of money, a solid silver coin called the Rial, was disappearing from circulation. They traced the disappearing coins south to the trading port of Aden, then a British colony and military bastion commanding the entrance to the Red Sea and southern approaches to the Suez Canal. Inquiries found that an Indian clerk named Dhirubhai Ambani, then barely into his twenties, had an open order out in the marketplace of Aden for as many Rials as were available. Ambani had noted that the value of the Rial’s silver content was higher than its exchange value against the British pound and other foreign currencies. So he began buying Rials, melting them down, and selling the silver ingots to bullion dealers in London. ‘The margins were small, but it was money for jam,’ Dhirubhai later reminisced "After three months it was stopped, but I made a few lakhs [a few hundred thousands] of rupees. I don’t believe in not taking opportunities.[/color][color=#333333]”[/color]

Posted

[size=5][color=#FF0000]Story 7:[/color][/size]

[color=#333333]During later half of the 19th century Western Union had absolute (almost) monopoly in the Telegraph business in much of the United States. In order to maintain status quo, they generally bought any competitor who threatened their monopoly in the business.[/color]
[indent]Western Union bought out smaller companies rapidly, and by 1860 its lines reached from the [url="http://en.wikipedia.org/wiki/East_Coast_of_the_United_States"]East Coast[/url] to the [url="http://en.wikipedia.org/wiki/Mississippi_River"]Mississippi River[/url], and from the [url="http://en.wikipedia.org/wiki/Great_Lakes"]Great Lakes[/url] to the [url="http://en.wikipedia.org/wiki/Ohio_River"]Ohio River[/url]. In 1861 it opened the [url="http://en.wikipedia.org/wiki/First_transcontinental_telegraph"]first transcontinental telegraph[/url]. ...[/indent][indent]The company enjoyed phenomenal growth during the next few years. Its capitalization rose from $385,700 in 1858 to $41 million in 1876.[/indent]
[color=#333333]American robber baron Jay Gould will play them at their own game and boy the way he will do it![/color]

[color=#333333]In 1878, Jay Gould started a telegraph company that was in direct competition to Western Union's telegraph business. Since Western Union wanted to enjoy the monopoly they simply bought this company and paid a hefty sum of money to Jay Gould for it.[/color]

[color=#333333]Jay Gould would lay low for a while but before late he was at it again. Just a couple of months after his company was acquired by Western Union, Jay Gould opened another company to compete with Western Union. Western Union again did the same, they bought him off.[/color]

[color=#333333]The pattern will repeat itself again. Jay Gould opened 3rd company to compete against Western Union, Western Union was about to buy him off but this time before they could do that, our man Jay Gould staged a successful take-over of the Western Union. In the end, by 1881 Jay Gould took complete control of the firm.[/color]

[color=#333333]How was this a shrewd move, you ask?[/color]

[color=#333333]As Robert Greene of "48 Laws of Power" puts it, [/color]
[indent]He had established a pattern that had tricked the company’s directors into thinking his goal was to be bought out at a handsome rate. Once they paid him off, they relaxed and failed to notice that he was actually playing for higher stakes. The pattern is powerful in that it deceives the other person into expecting the opposite of what you are really doing.[/indent]

Posted

[quote name='krish' timestamp='1369014999' post='1303773404']
[size=5][color=#FF0000]Story 7:[/color][/size]

[color=#333333]During later half of the 19th century Western Union had absolute (almost) monopoly in the Telegraph business in much of the United States. In order to maintain status quo, they generally bought any competitor who threatened their monopoly in the business.[/color]
[indent=1]Western Union bought out smaller companies rapidly, and by 1860 its lines reached from the [url="http://en.wikipedia.org/wiki/East_Coast_of_the_United_States"]East Coast[/url] to the [url="http://en.wikipedia.org/wiki/Mississippi_River"]Mississippi River[/url], and from the [url="http://en.wikipedia.org/wiki/Great_Lakes"]Great Lakes[/url] to the [url="http://en.wikipedia.org/wiki/Ohio_River"]Ohio River[/url]. In 1861 it opened the [url="http://en.wikipedia.org/wiki/First_transcontinental_telegraph"]first transcontinental telegraph[/url]. ...[/indent]
[indent=1]The company enjoyed phenomenal growth during the next few years. Its capitalization rose from $385,700 in 1858 to $41 million in 1876.[/indent]
[color=#333333]American robber baron Jay Gould will play them at their own game and boy the way he will do it![/color]

[color=#333333]In 1878, Jay Gould started a telegraph company that was in direct competition to Western Union's telegraph business. Since Western Union wanted to enjoy the monopoly they simply bought this company and paid a hefty sum of money to Jay Gould for it.[/color]

[color=#333333]Jay Gould would lay low for a while but before late he was at it again. Just a couple of months after his company was acquired by Western Union, Jay Gould opened another company to compete with Western Union. Western Union again did the same, they bought him off.[/color]

[color=#333333]The pattern will repeat itself again. Jay Gould opened 3rd company to compete against Western Union, Western Union was about to buy him off but this time before they could do that, our man Jay Gould staged a successful take-over of the Western Union. In the end, by 1881 Jay Gould took complete control of the firm.[/color]

[color=#333333]How was this a shrewd move, you ask?[/color]

[color=#333333]As Robert Greene of "48 Laws of Power" puts it, [/color]
[indent=1][b]He had established a pattern that had tricked the company’s directors into thinking his goal was to be bought out at a handsome rate. Once they paid him off, they relaxed and failed to notice that he was actually playing for higher stakes. The pattern is powerful in that it[/b] [b]deceives the other person into expecting the opposite of what you are really doing.[/b][/indent]
[/quote]

ante enti baa???

Posted

[img]http://www.desigifs.com/sites/default/files/2013/anasuya3%281%29.gif?1367790500[/img]

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