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Archive for the ‘credit cards’ Category

Take advantage of credit self-managing

23 Mar

78Let me illustrate the power of a closed paradigm. I once worked with the director of a regional telephone company to help establish a self-managed group of technicians responsible for telephone service repair in a western state. The managers who reported to the director were initially reluctant to try a self-managed group because they thought their employees were lazy and would take advantage of a selfmanaging environment. But a nine-month trial demonstrated that the self-managed team was more productive and did higher quality work than the traditional work team with a supervisor. In fact, the self-managed team completed a greater number of repair calls and had a lower rate of repeat visits. With these impressive results, I expected the organization to embrace the new method and expand its use.

I was wrong. Despite documented evidence of the self-managed team’s success, the managers clung to their old perception.Moreover, their stubbornness proved to be a powerful influence on the director, who dismantled the self-managed team. The data regarding the team’s performance were kept from the rest of the organization simply because the managers refused to update their beliefs or disturb the status quo. They still believed the employees needed supervision or they would not work. When reality contradicted their beliefs, they preferred to suppress the data rather than change their mental maps.

 
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Posted in credit, credit cards, credit score, economy, finances

 

The basic credit strucure

21 Nov

The idea in a CDO transaction is to securitize debt collateral to make it more attractive to different classes of investors. In the earlier days, CDOs purchased high yield/emerging market debt through a special purpose vehicle (SPV) and raised funds by issuing securities ranging from AAA to BB/B. The overall risk of the portfolio of various collateral is tranched from relatively safe to speculative to satisfy different degrees of risk appetite.

Beginning with the most senior class, the cash flows from the collateral are used to service the outstanding notes sequentially. Losses are allocated on the basis of reverse seniority. This basic structure is also known as a cash flow CDO because the collateral cash flows are used to sevice the outstanding securities. Every CDO has an asset side, generating its revenue, and a liability side, whose obligations need to be satisfied. The difference between them is termed the funding gap.

 
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Posted in business tips, cash reserves, credit, credit cards

 

Have confidence to develop a credit

25 Oct

If these new products do not exist, you can have the confidence to develop them.

Another way in which customer loyalty drives profitability is through the ability to increase prices to loyal customers, because, of all the possible purchasers, they are the ones best placed to understand the value of your products. Loyal customers do not typically require discounts or product add-ons to stay with you. If they are happy with the product or service they are buying and if it is competitive, they will not normally be tempted away. Clearly, this depends on variables such as the nature of the market, but there is an element of inertia in most markets.

Loyal customers can also be used to help with market testing of new products. This not only saves money in testing through other means, but it is also often much more effective.

 

The road to success: credit to buy

15 Oct

In the early 1990s, Ryder, the largest truck-leasing company in the world, suffered a steady decline in sales as competitors eroded its business. The company’s main response was to use information more effectively to benefit customers. Its approach had three elements:

To help customers buy. Ryder made it as easy as possible for customers to buy its services. For example, it produced a brochure explaining why customers should buy its damage insurance, and another offering other supplies and accessories. It also recognised that customers would want to make comparisons among competitors (they were doing this anyway), so it produced a truck comparison chart, highlighting its competitiveness and reassuring potential customers.

To help customers use the service. Ryder provided a free guide to moving, The Mover’s Advantage, in Spanish and English, to every current and potential customer. It understood why customers used its trucks and saw the advantage in helping them.

To help customers adapt their usage. As well as ensuring that each outlet displayed a strong commitment to customer service and corporate identity, Ryder offered new products and services from its outlets. This included information about the advantages of using Ryder’s towing equipment and longer-term discount rates for returning customers.

 
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