Eating out turns dearer

There is a bad news for food-lovers! If you are a restaurant freak and loves to try food in different restaurant, then it is advisable to either change this habit or increase your budget to continue this habit. Food prices are increasing day by day. Although escalating food prices can not burn your mouth, but it will certainly burn your wallet.

LPG price has risen by Rs 50 and diesel by Rs 3.78 per litre. As most of the raw materials for the restaurant industry is transported through trucks, which run on diesel and is cooked on LPG, this could have the negative effect on the hotel industry. Eating out has become an expensive affair, now. According to a news channel, within last four months, the cost of food in restaurant has already risen by 30% and is expected to rise by 15% more in the coming months.

Labour cost is also one of the reasons for the rise in cost of different cuisines presented in different restaurants. Today, everything has become expensive and so, is the cost of labour. Their charge has also increased. Now, they need higher wages for the same set of work. It is directly affecting the cost of food sector.

Cost of raw materials including cement, steel and iron for the building is turning dearer. Real estate sector is also on the boom. With the increase in cost of land, rental cost of the restaurant has also turned up.

In short, many sectors are affecting the restaurant owners. But, ultimate affect could be seen on the customers. Customers are the food lovers, who are compelled to make payment for their likes and love towards food. They have to pay more for the same old menu. After this, many states are waiting for subsidy from the Government. Many state governments like West Bengal, Kerela, Haryana and Himachal Pradesh had already announced the subsidy for this sector.

Ways to beat inflation monster

“Sakhi saiyan to khoob hi kamaat hai, mehngai dayain khaye jaat hai” (dear friend, my husband is earning a good sum of money, but this inflation is swallowing all his earnings). This line has been taken from a song of a Hindi film ‘Peepli Live’. This sounds funny, but it’s a bitter truth that everyone is facing in today’s economy. Inflation has affected every class of the society. Either rich or poor, everyone is trying to fight with the monster named “Inflation”. According to recent RBI survey, Inflation is supposed to touch 8.2% in the quarter ending in June 2011. Inflation rate could be defined as a general rise in prices measured against a standard level of purchasing power.

In today’s scenario, there are few internal strategies which every household should implement in their life. They should try to change their life-style. You can trim down your expenditure with the reduction in outing, which includes shopping, eating-out etc.. You can use the unconventional ways to enjoy! You can go to park, instead of malls; as a replacement for eating out, you can go for home-made food. Trying different recipes at home in itself is a fun. On weekends, you can request your better-half to help you in new recipes. That is also a way to romance!

Apart from these, there are certain other strategies which could be counted under the external ways to tackle this falling value of money. Reserve Bank of India has increased the interest rates to control inflation. RBI has decided to increase its repo-rate to 7.25 % and reverse repo-rate to 6.25 %. Repo rate is the rate at which RBI lends short term funds to banks. Reverse repo-rate can be defined as the rate at which RBI accepts short-term deposits from bank. The inflation has hit the personal budget badly. Cost of living has become a very expensive affair. In such scenario, one needs to manage his budget tactfully and allocate the money according to priorities.

People believe in long term fix-deposits. But in this inflation marred period, it is always suggested to break the long term FDs into short term FDs. However, it is conditioned with the time left with your FD. Relocate your fund, only if long term is left for the maturity. You can break your current FD into ultra-short term (<3 months) and short-term (<6months). But, if in case your FD is going to mature within the short span of time, it is better to stay back with your current long-term Fix Deposit. This can help you to earn more returns from your savings.

One can also beat inflation with the change in his portfolio. The investor can do search & research of market and then make changes accordingly. He can replace the companies giving less return in future with the companies giving higher returns. It is so, because the companies with the lesser return can make your portfolio weak. In most of the cases, one can find both types of companies in a portfolio; companies giving higher return/ companies running in profit and companies giving lower return/companies running in loss. With this, he might be able to earn only average return where he can also earn higher return. It is better to allocate your money in few profit-earning companies with a better future prospect.

Get done with the payment of loan! Payment of loan could also reduce the burden of inflation. Try to pay loans according to the rate of interest. Loans with higher rate of interest should be paid first. It is so, because loans with high ROI would grab a large sum of money of your monthly budget. At present, home loan has also become very costly. In case of ROI, it is very important to be very vigilant. Never pay the rate more than market rate. Old customers can also try to bargain with their respective banks. They can ask them for lower rate of interest, as they are old customers. If bank refuses to follow their request, it is always suggested to switch their banks.

As far as the fresh investment in the present situation is concerned, it is advisable to go for long-term equity investment. Gold could also be a good option. It could fetch you higher return in long period of time.

In a nutshell we can say that, Inflation is such a monster which will continue swallowing your earnings until you start using your money wisely.

Tactics to badge your company

When you start a business, you will get plenty of things to be looked upon. Like type of products and services, source of finance, working hands with working skills, location, its promotion etc. In these big decisions, one might slip to spend his time over its name and logo. It is so because most of the new businessmen do not know the importance of trademark. But, if anyone is looking to establish a new business, stop for a minute and consider some of the pioneer of business world. One might not know the owner of the company, but he will definitely recognize the logo of the company. Few best examples that can be cited under this category are McDonald’s golden arches, Nike’s swoosh and KFC. Some of the companies are also using their name as their trademark.

However, choosing a name and subsequent trademark is not as easy as it seems. It takes a mix of awareness and creativity. A trademark must have a few basic traits.

Its pronunciation: If you want to use the name as your trademark, it should be easy to pronounce and remember. Customers have very short attention and retention span. In such scenario, the trademark could act as a stimulating factor to remember and buy your product.

Informative: You should try to include information about the product or service that would be offered. This also enhances your selling capacity. KFC, Pizza Hut, Jus Booster Juice, Make My Trip.com names itself represent their respective products and services.

Use of symbols: Sometimes symbols also become important, as it is easy to remember. McDonalds which has made its presence globally could be easily recognized through its golden arches. The Nike’s checkmark is more recognizable than the company’s name.

Apart from these, it should be short, simple, and easy to spell. With the introduction of creativity, one can also make its trademark appealing.

Registration:
After designing the trademark, one should not forget to register it. The registration grants you a monopoly to use the symbol or the mark with respect to your business. If in case, the trademark is not registered than it would be subject to more in-depth scrutiny by the court of law.

Search, Research & Application:
Before deciding the trademark, one should do a wide search to ensure that the logo or name that you have selected is unique. A trademark attorney is responsible for the market research. The search could be done either through the database maintained by the government of India or via other data present in magazines, journals and on internet. As soon as the research work is done, you have to apply for the trademark registration. In this you will include your basic information along with a clear drawing of your desired logo and the list of goods or services for which the trademark will be used. The application is examined by the Registrar of Trademarks. Thereafter, the mark is kept open for the opposition through its advertisement in the trademark journal. The trademark would only be registered in case of no opposition.

Japan crisis and the world economy

Japan is facing its worst crisis since World War II. A 9.0 magnitude earthquake followed by tsunami towering more than 10 meters has rocked the world’s third largest economy. The condition worsened with the radiation leakage from crippled reactors at the Fukushima Daiichi nuclear power plant.
Japan, is one of the important pillar of the global economy, has got affected by the natural calamity and is supposed to push rest of the world back to recession. Initially economists thought that the implications would be limited. But now there assumptions are proving them wrong. Considering the role of Japan in world’s economy, this natural disaster could turn into a serious threat to the world economy as a whole.

Global energy market: The affect of Japan’s nuclear disaster on global energy market is difficult to determine. Different countries use different source of energy. It would only slowdown the construction of new nuclear plant in the coming near future.
As per the report of World Nuclear Association (updated in February 2011), 16 countries depend on nuclear power for at least a quarter of their electricity. France gets around three quarters of its power from nuclear energy, while Belgium, Bulgaria, Czech Republic, Hungary, Slovakia, South Korea, Sweden, Switzerland, Slovenia and Ukraine get one third or more. Nuclear power is a clean alternative to oil, coal and natural gas. There are also expectations for nuclear power to grow measurably in China, Russia, South Korea and other developing nations. However, Japan’s disaster would have warned other countries to take intense care while setting up any nuclear plant. It involves significant safety risk. Even before this disaster, electricity generation from nuclear plant was supposed to rise by only 10 % between 2009 and 2035 in the United States. This prediction was done by the EIA, annual energy outlook 2011. Along with it, according to IEA Electricity Information 2010, in the year 2008 40.8% of the electricity was produced through coal, 21.3 % through gas, 16.2 % through hydro. Nuclear energy contributes only 13.4 % to the electricity production. So, the affect of Japan’s nuclear disaster would be limited.
On the other hand, Japan might need to replace the energy from disrupted gas lines with energy imports. This demand can also raise the global energy prices.

Electronic industry: Natural calamity intensifying its effect by the destruction of man-made operations has devastated the north-east industrial area of the country. As a result of which automotive, petro-chemical, semi-conductor and many other factories have shut down. Cannon, Sony, Toshiba, Hitachi are not the exceptions. Apple also imports many of its parts from Japan. The country gives its significant percentage to the global electronic industry. However, this disaster has ability to change the scenario. Although China has also a large number of brands for electronic products, but most of its core components are made in Japan. According to a news-report, Honda has told US dealers that it will delay taking orders for Japanese-made cars and trucks. And, Toyota plants remain shuttered, as well. General Motors has also announced closure of its many factories because of the lack of many components from Japan.

Aviation Industry: The supply chain has also got affected by the destructing affect of this disaster on the aviation industry. The International Air Traffic Association (IATA) said that the disaster is expected to lead to a short-term sharp slow-down in air traffic in Japan. It has also warned for the hike in fuel prices, as Japan produces 3-4 % of global jet fuel supply. Some of which is also exported to Asia.

Agriculture sector: Although, agriculture does not play any important role in the country’s economy, and so is the case with the world’s economy, but this disaster has also effected its agro-sector. According to a recent analysis by Rabobank, the calamity could have a ‘dire’ effect on the food and agriculture industry. The tsunami has damaged paddies and other agriculture resources, which has turned the supply chain other-side. Fukushima nuclear plant could also have a devastating effect through its radiation problems on the agriculture. Shortages in supply-chain are likely to limit exports and cause imports to raise, states the report. The imports will increase from its trade-partners like US, Australia and China. This might also upshot the global food supply.

Foreign borrowing: In the coming months, Japan will start rebuilding its infrastructure, which will increase the demand for steel, iron, copper, cement and other construction materials. Unlike America, Japan runs its budget in deficit. And, this economic adversity might compel the country to borrow from it is own citizen. But, the requirement of money is so high, that it is very difficult to meet its need through the domestic saving market. This will compel the nation to go for foreign-borrowing. And, in such a scenario there could be a good possibility of Japan to pay higher rate of interest. As a result of which, the other indebted countries could have to raise their own rates to compete. This will increase the cost of money.

In the nutshell we can say that, the global effects of Japan’s disaster would be mixed. As indicated above this is likely to have some long term while some would have the short term effects. And, even the effects would be different on different country.