IPO & FPO – What are they ?

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We hear the terms : IPO & FPO from time to time, especially in the stock market , and when a new major company is established.

Let’s define some terms first – that would make future explaining easier for us later :

– IPO: The short term of Initial Public Offering .

– FPO: The short term of Follow-up Public Offering .

Simple, isn’t it ? Let’s explain the terms more ..

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For companies who issue IPOs & FPs ; IPOs are more profitable than FPOs. It also comes before FPOs !! Yes, IPOs come first, and then come FPOs.

Companies ( mostly bigger ones ) , plan and issue an IPO to generate money from investors, while FPO serves for adding more cash to the initial public.

IPOS are projects held by a certain company, enabling investors ( individuals & corporates ) and common people with interest in stock markets and shares , to buy a certain % of the new shares the company is sending for sale in the stock market.

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So , when an investor buys 10,000$ of shares in IPO, and the company’s capital is 1,000,000 USD, he/she is gaining 0.1% part of the company , and so on ..

Generally speaking ; profits generated ( mostly ) are higher in IPO VS FPO, and so are losses.

That is because , when investing in an IPO;  there are no information about the coming share situation, and how the share would re-act in the coming times.

While , when investing in FPO, that is a follow-up public offering, the corporate is lacking cash, but also has to publish its performance and financial numbers to the public , and analyzers can review them and decide – to the nearest possible level – how the share would act in the future times, and should an investment be done to it or not !!

Having historical information also means that share’s price won’t change much ( upper & less ) , this reduces profits more than IPOs.

FPO is risky too , since when a corporate starts an IFP, it means it needs extra cash – and that is risky in the business world.

At last, IPO & FPO have benefits and risks related to each, and you should be careful .. Have a say ? Let’s hear from you in this form.


Be Efficient OR Be Effective

Well… you get one life, and it is a precious life. So you should better spend it in the best way, to achieve the best results , shouldn’t you ?

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Social scientists , and productivity experts , often suggest that you should focus on being effective rather than being efficient !!

Efficiency is about getting more things done.
Effectiveness is about getting the right things done.

In other words .. Be productive and do right things, and no need to do all things you can do !!

How to decide if this matter is important or time-wasting thing ? We recommend using the rule named 80/20 !!

What is the 80/20 rule ?

The first scientist to discuss this principle was “Vilfredo Federico Damaso Pareto”, who had major contributions in social sciences & economics while living in Italy between 1848 – 1923. He stated this rule in 1906 , after noticing that 80% of Italy’s wealth & lands is held with 20% of the country’s population, and from there he started the thinking !!

Vilfredo Pareto 1872. Courtesy of WikiPedia Site.

Pareto started studying land and wealth distribution in other countries as well, and found the results nearly match what is in Italy. He made his thoughts after that;

Pareto’s principle states that: In any particular category – a small number of clients or factors, account for the majority of the results – 20% of the clients make 80% of the profits .

Here , “Few” tasks counts more than “quantum” tasks.

You would review problems you are facing in your life, or matters that consume your powers and times, and you will find that 80% of your time consuming matters generate only 20% of the life’s results.


Let’s discuss some examples here :

  • 80% Of car accidents are caused by                             20 % of the drivers !!
  • 80% Of Lottery buyers are                                             20 % of the society !!
  • 80% Of environment impact is caused by                  20% of the world countries
  • 80% Of the food is generated from from                    20% of the farms worldwide

& in the business environment , Pareto rule confirms that :

  • 80% Of Corporate’s profits comes from                     20% of the Corps’ clients
  • 80% Of Corporate’s profits comes from                     20% of the Corps’ products !!

So , to maximize your efficiency in business , you should focus on the vital 20% of activity. But don’t leave the other 20% , since markets change and clients grow & decline easily.

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Let’s say;

إou have 10 tasks to accomplish today ! Simple note. You can increase your efficiency by considering the 1st two tasks first, and complete them as a start, this means you finished 80% of your tasks load easily !

You can also delegate or delay performing the pending tasks, and you would feel satisfied and productive !!

This implies to the IT world and software errors. In a memo dated 2002 , Microsoft CEO then Steve Ballmar, to his employees , stated that : “Microsoft has learned that 80 percent of the errors and crashes in Windows and Office are caused by 20 percent of the entire pool of bugs detected” . And they changed many of their procedures after that !! Read the full article here

How be more efficient in – the business environment?

Here are some ideas about how to increase your efficiency by following the Pareto principle : Montavue

  • Better daily planning;

Since performing 20% of the tasks related to 80% of the results required, you would set the most prioritized tasks first, and remember that they would consume 20% of your day’s time.

But don’t neglect the other 80% of your tasks, they are required for your total performance and goals.

  • Delegate tasks

In the business world, managers can’t do all tasks themselves. Yet a lot of goals and achievements are required from them.

And in order to raise their performance , and be more efficient, manager or business head should concentrate on 20% of the goals required from him, and how to achieve them – delegating the balanced works to other staff around the head.

  • Risk assessment and management

By identifying the risks the business face; whether they are in customers management procedures, sales environment, strategies, financials or whatever category the

corporate faces, the corporate should concentrate its resources and procedures to solve 20% of the highest risks to encounter, which would result in solving 80% of the problems .

But corporates shouldn’t leave the other 80% of risks unattended or solved, since they could grow and become a serious threat later to the business itself.

  • Profit generation: By focusing sales efforts to the most profitable 20% of the clients, or to gain 20% of the market’s opportunities.


Such strategy , definitely, won’t please everyone you work with, but would generate enough profit to keep your business going , and then you can take care of the rest of the clients who deal with you, growing your profits even more !!

So start thinking of your effectiveness of doing less, yet more important and more impactful tasks, more than your efficiency doing hundreds of minor tasks, and the result is minor too !!

Have a say, write it down and we are happy to listen …

The Danger Of Perfection !!

Imagine that … You always worry that you didn’t do a good job – despite all these good words and praises you hear ??

Or that , you are afraid of admitting your mistakes – that is not you to make a mistake in first place !! Even when small mistakes happen, you feel a great regret.

Or you are from those want to align all lines they see, even if it a pedestrian line  ?

Rest in peace, many are like you, and these are the specs of : The Perfectionist.

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What is a  perfectionist?

A perfectionist is someone who wants everything to be perfect, he/ she :

  • Always waits for the right moment.
  • Never makes mistakes.
  • Always needs more time

But be careful: when you constantly worry about making mistakes, doubt creeps in your mind , and that would cause depression and anxiety !!

And you could be named easily, by your surroundings, as a slacker , or a loser, or lazy .. because results in all scenarios are same: Merely no result at all !!!

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So how to solve this matter?

Basically and in short .. You should balance between your efforts towards achieving a task, and the world around you !! You should know you can’t change the world , but you can improve the life of yourself and others around you.

Do the efforts as a perfectionist ( hard working and caring for details ) , but avoid continuous looking at the results and evaluating them !!

You just did your best, and that is it. Enjoy !!

Photo by Charles Deluvio on Unsplash

When you a perfectionist is asked: What his or her life is really like ? The response is likely to be :

  • “If I’m not the best, then I’m a failure.”
  • “I can’t ask for help, people will think I’m not good enough.”
  • “I’m exhausted but I can’t relax — I always have to stay one step ahead.”
  • “I never feel satisfied and nothing I do is enough.”
  • “If I make a mistake it proves I’m worthless.”
  • “I feel hollow, like I can never be happy.”

And to know a universal fact: There is nothing perfect in this world, nothing at all !! So relax a bit, and make a space for other matters that matters in life, like having fun, enjoying a game , play with the kids without restrictions , and others …

So how to solve this matter?

Basically , and in short, you should balance between your efforts towards achieving a task and the world around you;

You should know you can’t change the world , but you can improve the life of yourself and others around you.

It is alright to fail, failure teaches you and enriches your experience ; instead of focusing on easier subjects and tasks , to get a full score – even in your own mind only – and move away from the matters ( tasks ) that really matter !! The things which would change your and/or your surroundings lives; achieve the goals you look for in your life, things that give you satisfaction , and real self-joy.

Really, we recommend and advise you to : Make efforts as a perfectionist – always – ( hard working and caring for details ) , but avoid the inner sound that tells you to repeat things again and again, and continuously looking at the results , since you didn’t do things perfectly fine, and there is a need to change !!

Make a space, in your mind and soul, to understand that you have done your best, and things can not perfect , and won’t be in anyway ; What is done is done, and move to the coming matter / task, enjoy your life.

Have something to say ? Write a comment here .

Outsourcing – Definition & Examples

Corporate needs to manage their resources to the best possible way, to get highest benefits possible.

This means considering business costs , assets available and liabilities the corporate would occur, and manage human teams as well.

But sometimes, to have some asset ( or a resource ) managed through an outside party ( external corporate or vendor ) would become cheaper and/or more efficient from managing it directly, from inside the company.

Corporates move to outsourcing when it is operating in many markets, and to better serve a certain market would hire a specialized corporate in that market to handle certain tasks , like warehousing or Call Center or even Finance Department or so on.

Corporates, also, may consider outsourcing some of its operational tasks when they can utilize certain tasks to an outside corporate , which is more specialized in handling this tasks than the original job owner.

We will talk in examples to better understand what is meant by outsourcing !!

Consider Apple , it is a gigantic corporate specializing in developing state-of-the-art technologies in certain fields, but they don’t want to waste precious resources on manufacturing – with all the hassles of manufacturing and factories , so they “outsourced” their mobiles manufacturing to a Taiwanese company named “Hon Hai Technology Group – Foxconn ” . Apple designs the mobile in details, Foxconn builds it following Apple’s standards and quality requirements , and quantities .

Foxconn, for example, builds other products that iphones ( despite they have exclusive production lines for the leading phone ) , such as Electrical cars, Sharp monitors , and others – see their web site for more info.

So, which business tasks are most outsourced ?

Outsourcing can be done for any department or task in the corporate; some corporates outsource a certain project ( that is called project outsourcing ) – where the corporate handles certain missions to another company and wait to get the results required. That is mainly famous in Creative businesses ( media agencies, market studies companies, dispatching new furniture in a new building or so , and examples add on..

“IT Affairs OUTSOURCING” is a famous outsourcing module in the current business environment is; yes it is !!

Corporates may outsource their IT issues to a more specialized company, to manage their network , build the infra structures required, build an app for them, or manage their servers or so.. You , basically, give a more specialized corporate the headaches of managing your network and maintaining it, they serve your business and others too, and would consider the latest techniques to save their reputation and businesses too , and you will pay for what you get only – as you don’t need the IT resources and staff everyday .

“Accounting & Finance” is another sector of business which is widely outsourced in the current environment.

A corporate, big or small, can outsource the payroll works, taxes management and make the budgets . It is easier, and more controllable , procedure to outsource the accounts department.Microsoft NZ

“Manufacturing” is another famous business part to be outsourced. This is especially done in the parcels companies, to build / lease factories in far-away countries where labor costs & raw materials costs are cheaper than in the original country. Major brand names have exclusive production lines solely producing them in Vietnam, China, India , Bangladesh and others.

Reading this matter, a note from InTouch studies site indicates that “… of 348 garment importers surveyed on InTouch’s website since in 2016 -61 percent said they source garments from at least one of these countries. China is still the most popular choice for garment importers at 21 percent. But Bangladesh and India tie for second place at 14 percent, while Vietnam comes in right behind at 12 percent..”

Top 10 corporates that outsource jobs

The top 10 corporates ( with a total of 170,000 jobs in approximate – 2018 figures ) , which outsource jobs to other companies are ( based on Techsunite.org studies site ) :

  • IBM
  • EDS
  • Dell
  • Cognizant
  • Siemens AG
  • General Electric
  • Convergys
  • Accenture
  • Computer Sciences Corp
  • Intel

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The risks of outsourcing

But to tell as well, outsourcing isn’t a green field for corporates to gain profits without problems !! Outsourcing has major negative impacts on the corporate’s business , in summary they are :

–         Employees Morals are affected

–         Loss of control

–         Quality issues

–         Customer losing

–         Security fears and issues

Let’s detail these points a little bit more:

* Employees morals are affected … They will feel threatened, since their colleagues’ jobs , or theirs, would be done by an outside company , and they would be laid off !!

* Loss of Control : The company doesn’t have control over the outsourced job as if it is done indoors. There should be extensive and close guidance and control procedures on the outsourced company . This loss of control opens the gates for the coming points

* Quality Issues: This is a major issue when corporates look for cheaper labour costs and cheaper materials , from the job owner side or the outsourcing company; especially when hiring lower-educated staff , or low-quality products that would result in an un-required end product.

* Customer Losing: When there is a lack of control with the outsourced company, and quality of the staff & the end products aren’t as expected .. The end customer will not return to this company and buy its product or service again, like a customer call center speaking in an unclear accent or even language, or the IT support doesn’t understand his duties well , customers would be frustrated and go for another vendor.

* Security fears and issues; This is important when the outsourced matter has classified information and/or tasks, like a new medicine developing, or developing a demo new racing car, or a weapon or a Military device, etc…


Should corporates outsource then ?

Well, corporate have to study their options very well , and not to think of saving extra dollars here or there only – but to think of the end-result expected, the partner ( outsourcing company ) and its abilities to handle the outsourced project expected .

Corporates need to study their targeted customer and markets segments, can it approach it directly? Or should it outsource some tasks for another company ? Should it outsource certain tasks for some time till it learns the most suitable techniques , so let’s source the business for a while?

What are the control and follow up techniques and procedures that would be taken to insure the requested results are achieved, in the way originally planned for? And

Many factors are there, and corporates should think well before outsourcing any of their business modules.Microsoft NZ


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