Miscommunications in the Workplace Essay

Recently we have had two of our retailers contact us with problems regarding shipments they have received or have failed to receive. I know this is not the first time this has happened but I would like to minimize the possibilities of it happening again. It seems the root of our problem is miscommunication in the workplace. As a shipping manager that has seen this kind of issue before in past work experiences and I believe I know what we can do to solve our breakdown in communication between the various departments, retailers, and co-workers. As CFO I know you will see this proposal can benefit the company both financially and operationally. First, I propose that the company implement a required form of communication. I believe hand written notes are a thing of the past and that we should upgrade our communication requirements to electronic mail. If we had an e-mail only policy we could have record of all communication on file without the risk of losing a post-it note. E-mail also includes the option of a read receipt, which allows the user to know when the receiver has opened and read the message or if they have not seen the message yet and another form of  communication, such as a phone call, might be required to meet a deadline. The policy might also include that all e-mails must receive a reply no matter how simple the message. I can head a short meeting at the end of the day to cover the implementation of this plan. The idea here is to eliminate hand written notes as well as informal communication such as instant messengers and social network communications. We will need to upgrade a few of the employee’s company cell phones and instruct them on how to use e-mail on these devices. Even though e-mails are good for keeping a history of communications, public relations expert Lisa Elias states, â€Å"When delivering delicate information, pick up the phone. A gentle tone of voice can soften bad news or express warmth and caring, whereas an email or text can easily be misconstrued,† (Kouremetis 2013). Although e-mail can help eliminate the outside forms of communication, another possible resolution would be to implement task management software into the office. This alone may solve the issue. There are many different task management programs available but one that has caught my eye is AtTask, which is used by corporations such as HBO, Samsung, and Adobe. AtTask will allow us to run a free trial of the software prior to purchasing and claims the product will allow us to see what is going on with our projects, if we are on time, and when it will be done (â€Å"Services†, 2012). You will even have access to the task manager to see what is going on in our shipping bay. AtTask even has an integrated communications technology that allows for instant messaging between co-workers and a notes system for the client list. That way, if one person speaks with a client of ours and they request a change to their order he can enter the message in the client’s message folder and we can all receive the notification straight to our smart phones and computers. Even though, task management software will ultimately benefit company wide communication, another area that lacks focus is education on the subject matter of the workplace. A few of these men have worked here for over ten years and they know every part number by memory, but communication technology is outgrowing these few at a rapid pace. On the other end of the  spectrum, these younger men have keen senses of current technological advancements, but they could use some more time in learning the step-by-step processes we face on a daily basis. I propose that we run a workshop meeting once every two weeks for a total of eight weeks to teach the young ones about the process of shipping from us, the supplier, to the consumer/retailer. This workshop could possibly be run during hours if the time comes available, but will most likely need to take place on Saturday from 12:00 p.m. until 2:00 p.m. The instructors will be chosen from 3 of our most experienced workers who will earn overtime from these extra hours. A separate workshop on communication technology for the employees that have been here should happen once a week for an hour, probably on Wednesday evenings after work. The employees will be eligible for overtime with this extra hour on the job. I believe that being educated on the subject matter of the workplace is vital to our success. In addition to knowledge of the workplace being significant, another part of the communication process that has lacked in certain areas is feedback. Feedback is one of the four major communication functions (Belch 2012). It is the key to knowing your communication was successful. We need to emphasize in the training process that it is okay to ask questions. I have seen it happen before where someone is afraid to ask a question for fear of disapproval only to have to go back re-work what has been done. Asking the right questions can help us to do it right the first time (D.I.R.T.Fi.T.). I feel the previously mentioned workshops would be a great time to re-emphasize the importance of asking questions. Also, as mentioned in the first proposal, all e-mails must receive a reply or they will be followed up with a phone call. We must remember that sometimes in order to receive feedback it must be asked for. After explaining a work order or process it is vital to ask, â€Å"Do you understand?† or â€Å"Do you have any questions for me?† Another way of obtaining feedback would be through face-to-face technology. With our smartphones and office computers we can send a more personal message with FTF video conferencing. Google Hangouts are part of the Google suite of applications that support multi-party video chat as well as other Google applications including Sketch-UP, Docs, Spreadsheets, Presentations, and screen sharing and these types of technologies are being recommended as  teaching formats to doctors and professors around the globe (Roseth, 2013). In conclusion, I do believe there is work to be done in regards to the communication process in the workplace. I have proposed four strategies to minimize the possibility of future communication breakdowns. Please do not hesitate to contact me with any questions you may have. You may decide to choose one or to integrate all four, the choice is yours, but I do ask that you please take your time in considering the possibilities and I do trust you will choose what is best for the company. References Belch, G. E., & Belch, M. A. (2012). Advertising and Promotion: An Integrated Marketing Communications Perspective, 9th Edition. New York, NY: McGraw-Hill/Irwin. Kouremetis, D. (2013). Choosing Communication Methods Wisely for Your Small Business. Forbes. Retrieved from http://www.forbes.com/sites/denakouremetis/2013/01/28/choosing-communication-methods-wisely-for-your-small-business/ Roseth, C. (2013). Blending Synchronous Face-to-face and Computer-Supported Cooperative Learning in a Hybrid Doctoral Seminar. Techtrends: Linking Research & Practice To Improve Learning, 57(3), 54-59. â€Å"Services†. (2012). AtTask software services retrieved from http://www.attask.com/services

What Shirk Means in Islam Essays

What Shirk Means in Islam Essays What Shirk Means in Islam Paper What Shirk Means in Islam Paper Tawheed in Islam is very important as it means that believing in one lord and no one else. It is attributing oneness to Allah and describing him as being one and unique as he has no partner in his essence and attributes. However if one doesnt believe in this then he is going against Tawheed and will be classed as not a true Muslim. Believing that Allah is one with no partner or associate in his lordship is known as Tawheed ruboobiyyah. If any disagrees with this statement then they are going against Allahs word which are written in the Quran as he states Say he is Allah, the One and only. This verse clearly shows that Allah is one as he has written it him in the Quran for Muslims, no one should join partners with him nor should they believe in anyone besides him, this is known as shirk. Shirk in linguistic meaning is associating partnership, sharing with someone or associating something with someone however in Islam it refers to associating partners with Allah. There are two type of shirk which are: Shirk Akbar Major Shirk Shirk Asgar Minor Shirk Major shirk in Islam means when an individual ascribe partners with Allah such as saying that he has a son or a family. This can be with his Lordship, divinity or his names and attribute. Allah has told the Muslims in the Quran that he does not forgive anyone who ascribes partners with him in any way, as he states Verily! Allah forgives not setting up partners with Him, but He forgives whom He wills sins other than that, and whoever sets up partners with Allah in worship, he has indeed invented a tremendous sin. (2:48). Shirk is classed as worst sin in Islam. Shirk can be also loving someone as they should be loving Allah, and fearing as they should be fearing Allah, or relying upon him, calling upon him, dreading him, hoping in him and having awe of him, trusting in him, or obeying him in disobedience to Allah, or following him in what displeases Allah etc. This type of shirk may sometimes believe that someone else apart from Allah created this universe, maybe gives life and death or having a belief that someone else should be worshipped besides Allah. Whoever believes that then his final abode will be in hellfire as it is stated clearly in the Quran by Allahs words, Verily, whosoever sets up partners with Allah, then Allah has forbidden Paradise to him, and the Fire will be his abode. (5: 72). Even the Prophet of Allah mentioned in a Hadith that Shirk is never forgiven as he says The greatest sins are polytheism etc (Muslim). The second type of Shirk in Islam is the minor shirk which is everything that will lead an individual to major shirk such as adorning something or believing in fortune telling. Minor shirk has been described by Prophet Muhammad as Shirk in the Muslim nation is more inconspicuous than the creeping of the black ant on a black rock in the pitch darkness of the night. This saying of Prophet explains to the Muslims in a metaphorical way that minor shirk is what will lead the Muslims to major shirk unknowingly. Prophet also said that he feared minor shirk more then any sin as it was the cause of everything. Whoever swears to someone else other then Allah also commits the act of shirk and Kufr (disbelief). Minor shirk can also take the form of actions such as believing in fortune telling and wearing amulets. We as Muslims know this because Prophet said whoever goes towards fortune-teller and believes in his story, his prays will not be accepted for forty days. Tawheed is very important in Islam because it is the pillar which Islam is built upon, as it is the first thing invited to and preached to for thirteen years. say, none has the right to be worshipped when an individual believes in Tawheed they have to believe in the three aspects of tawheed which are Ruboobiyah- in his lordship, Uloohiyyah- in his worship and finally Asma was sifaat believing in his Names and Attributes. Tawheed is a condition for an action to be accepted, because for a deed to be accepted it requires two conditions. Which is the intention which is purely for Allah and in accordance with the shareeah of Prophet Muhammad. The three categories of Tawheed in Islam that are very important to abide by which are Tawheed Ruboobeeyah which means maintaining the oneness of Lordship that is, affirming that Allah is one, without partners in his power, as Allah states in the Quran And no calamity strikes except by Allahs permission. This means that without Allahs permission no one can do anything. Second one is Tawheed al-Asmaa was-Sifaat which means maintaining the unity of Allahs Names and Attributes that is, affirming that they are incomparable and unique as Allah says in the Quran for Muslims that There is nothing like him. This means that Allahs attributes are different to his mankind. And lastly its Tawheed Uloohiyyah which is affirming that Allah is alone in his right to be worshipped, as it says in the Quran I did not create the jinn and mankind except for my worship. Surah Ikhlas is a one of the important chapter from the holy Quran as it declares the oneness of Allah and absolute nature of divine essences. This concept is presented in the first verse it says He is Allah, the One and Only moreover the second verse that Allah is Eternal, i.e., He is beyond the bounds of time and space which is Allah, the Eternal, Absolute The third verse describes that Allah does not give birth or was given birth to as it says He begetteth not nor is He begotten and the last verse declares that Allah is beyond comparison which is And there is none like unto Him. Surah Ikhlas directly supports the first declaration shahadah of Islam: There is no god but Allah. In this context, Islam is based on belief in one God which is monotheism. There are many Muslims that still depend on pious people that they believe have similar qualities to God. They put their whole trust in them and act upon what they tell them to do rather then following the Quran and the Sunnah of Prophet Muhammad. They might start to wear amulets as they might believe that these things will protect them from harm and guide them the right path. However all this is wrong as we know that from the words of the Prophet, as he says wearing amulets is an act of Shirk (polytheism). Other Muslims put the Prophet on a higher level than Allah and see him as their God rather than Allah; they give excessive praise to the Prophet. Shirk is the major sin in Islam because it involves associating others along with Allah in worship, his lordship or in his attributes. Being thankful to other than Allah for all the good which he has given us, or to say that He has an equal or one who is similar to him, shirk can also involve rejecting the Messengers of Allah since the Messengers of Allah call against shirk and whoever associates partners with Allah will never enter paradise as Allah says in the Quran Indeed they do blaspheme those who say that Allah is Jesus, the son of Mary, but Jesus said O children of Israel! Worship Allah, my Lord and your Lord. Whoever joins other gods with Allah, Allah will forbid him heaven and the fire will be his abode. (5:72) There are many dangers of Shirk such as it wipes away an individuals good deeds, Muslims know this because it says in the Quran But if they were to join others with Allah in worship, all that they used to do would be of no benefit to them. (6:88) It also leads to eternal punishment in the hellfire and takes a person out of the fold of Islam as it says Whoever joins other gods with Allah, Allah will forbid him heaven and the fire will be his abode. When someone commits Shirk they are going against the belief in Tawheed which is the foundation of ones faith. Islam has 7 articles of faith among others the most important one is believe in Allah as the only one God. The principle of oneness in Allah was planted since Adam and Eve continued to Nuh, Abraham and up to the final Prophet Muhammad.

Lockheed U-2 Spy Plane

Lockheed U-2 Spy Plane In the years immediately after World War II the US military relied on a variety of converted bombers and similar aircraft to collect strategic reconnaissance. With the rise of the Cold War, it was recognized that these aircraft were extremely vulnerable to Soviet air defense assets and as a result would be of limited use in determining Warsaw Pact intentions. As a result, it was determined that an aircraft capable of flying at 70,000 feet was needed as existing Soviet fighters and surface-to-air missiles were incapable to reaching that altitude. Proceeding under the codename Aquatone, the US Air Force issued contracts to Bell Aircraft, Fairchild, and Martin Aircraft to design a new reconnaissance aircraft capable of meeting their requirements. Learning of this, Lockheed turned to star engineer Clarence Kelly Johnson and asked his team to create a design of their own. Working in their own unit, known as the Skunk Works, Johnsons team produced a design known as the CL-282. This essentially married the fuselage of an earlier design, the F-104 Starfighter, with a large set of sailplane-like wings. Presenting the CL-282 to the USAF, Johnsons design was rejected. Despite this initial failure, the design soon received a reprieve from President Dwight D. Eisenhowers Technological Capabilities Panel. Overseen by James Killian of the Massachusetts Institute of Technology and including Edwin Land from Polaroid, this committee was tasked with exploring new intelligence weapons to protect the US from attack. While they initially concluded that satellites were the ideal approach for gathering intelligence, the necessary technology was still several years away. As a result, they decided that new spy plane was needed for the near future. Enlisting the aid of Robert Amory from the Central Intelligence Agency, they visited Lockheed to discuss the design of such an aircraft. Upon meeting with Johnson they were told that such design already existed and had been rejected by the USAF. Shown the CL-282, the group was impressed and recommended to CIA head Allen Dulles that the agency should fund the aircraft. After consulting with Eisenhower, the project moved forward and Lockheed was issued a $22.5 million contract for the aircraft. Design of the U-2 As the project moved forward, the design was re-designated U-2 with the U standing for the deliberately vague utility. Powered by the Pratt Whitney J57 turbojet engine, the U-2 was designed to achieve high altitude flight with a long range. As a result, the airframe was created to be extremely light. This, along with its glider-like characteristics, makes the U-2 a difficult aircraft to fly and one with a high stall speed relative to its maximum speed. Due these issues, the U-2 is difficult to land and requires chase car with another U-2 pilot to help talk the aircraft down. In effort to save weight, Johnson originally designed the U-2 to take off from a dolly and land on a skid. This approach was later dropped in favor of landing gear in a bicycle configuration with wheels located behind the cockpit and engine. To maintain balance during takeoff, auxiliary wheels known as pogos are installed under each wing. These drop away as the aircraft leaves the runway. Due to the U-2s operational altitude, pilots wear the equivalent of a spacesuit to maintain proper oxygen and pressure levels. Early U-2s carried a variety of sensors in the nose as well as cameras in a bay aft of the cockpit. U-2: Operation History The U-2 first flew on August 1, 1955 with Lockheed test pilot Tony LeVier at the controls. Testing continued and by spring 1956 the aircraft was ready for service. Reserving authorization for overflights of the Soviet Union, Eisenhower worked to reach an agreement with Nikita Khrushchev regarding aerial inspections. When this failed, he authorized the first U-2 missions that summer. Largely flying from Adana Air Base (renamed Incirlik AB on 28 February 1958) in Turkey, U-2s flown by CIA pilots entered Soviet airspace and collected invaluable intelligence. Though Soviet radar was able to track the overflights, neither their interceptors nor missiles could reach the U-2 at 70,000 ft. The success of the U-2 led the CIA and US military to press the White House for additional missions. Though Khrushchev protested the flights, he was unable to prove that the aircraft were American. Proceeding in complete secrecy, flights continued from Incirlik and forward bases in Pakistan for the next four years. On May 1, 1960, the U-2 was thrust into the public spotlight when one flown by Francis Gary Powers was shot down over Sverdlovsk by a surface-to-air missile. Captured, Powers became the center of the resulting U-2 Incident which embarrassed Eisenhower and effectively ended a summit meeting in Paris. The incident led to an acceleration of spy satellite technology. Remaining a key strategic asset, U-2 overflights of Cuba in 1962 provided the photographic evidence that precipitated the Cuban Missile Crisis. During the crisis, a U-2 flown by Major Rudolf Anderson, Jr. was shot down by Cuban air defenses. As surface-to-air missile technology improved, efforts were made to improve the aircraft and reduce its radar cross-section. This proved unsuccessful and work began on a new aircraft for conducting overflights of the Soviet Union. In the early 1960s, engineers also worked to develop aircraft carrier-capable variants (U-2G) to extend its range and flexibility. During the Vietnam War, U-2s were used for high-altitude reconnaissance missions over North Vietnam and flew from bases in South Vietnam and Thailand. In 1967, the aircraft was dramatically improved with the introduction of the U-2R. Approximately 40% larger than the original, the U-2R featured underwing pods and an improved range. This was joined in 1981 by a tactical reconnaissance version designated TR-1A. The introduction of this model re-started production of the aircraft to meet the USAFs needs. In the early 1990s, the U-2R fleet was upgraded to the U-2S standard which included improved engines. The U-2 has also seen service in a non-military role with NASA as the ER-2 research aircraft. Despite its advanced age, the U-2 remains in service due to its ability to perform direct flights to reconnaissance targets on short notice. Though there were efforts to retire the aircraft in 2006, it avoided this fate due to the lack of an aircraft with similar capabilities. In 2009, the USAF announced that it intended to retain the U-2 through 2014 while working to develop the unmanned RQ-4 Global Hawk as a replacement. Lockheed U-2S General Specifications Length:  63 ft.Wingspan:  103 ft.Height:  16 ft.Wing Area:  1,000 sq. ft.Empty Weight:  14,300 lbs.Loaded Weight:  40,000 lbs.Crew:  1 Lockheed U-2S Performance Specifications Power Plant:  1 Ãâ€" General Electric F118-101 turbofanRange:  6,405 milesMax Speed:  500 mphCeiling:  70,000 ft. Selected Sources FAS: U-2The CIA the U-2 Program: 1954-1974

Three Level Architecture Essay Example | Topics and Well Written Essays - 2750 words

Three Level Architecture - Essay Example In this section I will present some of major objectives of the three levels of the database architecture. The DBA is able to transform the structure of database, for example without altering the software program for example external schema. Every user is able to access the data as of his/her necessities. Users are sovereign of the storage issues similar to indexing limitations etc of the database. The conceptual architecture of the database has no influence because of the transform of the physical storage systems.The External LevelThe external level is one near to users. That is the one associate with the mode in which the data is observed through particular users. At the external level the DBMS outlines every user by means of a shared or particular view or representation of the data. There are numerous views of the information and data at this phase, as well as every view is an illustration of fraction of the whole database. A view permits a client access to their part of the databa se, as well as shields the remaining database from them. Every external view is described through means of an external representation, that composed of fundamentally of descriptions of all of variety of kinds of outer record discovered that external view. In external level, the diverse views can have diverse illustrations of the similar data. For instance one user can view date in the structure as day, month, year as another may analysis as year, month, day.The external level or view of DBMS is basically associated.

Definition of The Bermuda Triangle Essay Example | Topics and Well Written Essays - 1000 words

Definition of The Bermuda Triangle - Essay Example What actually makes this specific region of the Atlantic Ocean primarily fascinating and the reason why this region has amassed such immense worldwide attention over time is based on the fact that word of mouth has played a significant role in this issue which is discussed in this essay. People have rushed to associate supernatural explanations with the Bermuda Triangle due to which this region gained a mysterious aura in a short span of time. Along with contemplating the mystery of the Bermuda Triangle historically, some majorly important characteristics related to it are also discussed and explained in the essay. Beginning with the important accidents that occurred in the Bermuda Triangle due to which it attracted massive attention, the disappearance of an entire troop of bombers and planes without leaving behind a single trace are worth mentioning. Unexplained disasters led people to believe in the myths that there ought to be something deadly, monstrous, and heinous in the ocean due to which people, planes, and ships disappear to never get recovered. After the big incident of plane crashes in the Bermuda Triangle, the gateway to disasters opened up and myriad other disappearances began to be reported due to which this specific area became a highly talked about, riveting, and enthralling topic around the globe and research began on a large scale with no concrete facts revealed and ambiguity, confusion, and mystery ensued. Over time, headlights continued cropping up about more flights and ships along with hundreds of innocent people vanished in the deep waters and no explanation was ever presented publicly other than the dark doubtful statements which led people to speculate that there had to be some supernatural phenomenon in action in that specific area of the Atlantic Ocean, never once stopping to consider the probable role played by natural calamities or human errors. One stark similarity among all the casualties which played a major role in spreading bla ck doubts among the public was that the ships, planes, and aircraft which vanished in the ocean never showed up after some months as wreckage. Now wreckage forms important indicators of where actually the accident took place in case of sea crashes and as for the reported cases of aircraft, if they ever actually did happen, never any oil slicks were found in the ocean by the trackers which put a blind end to the search for authentic facts. It is not like the reasons for all the disasters which occurred in the Bermuda Triangle in the past were left uncovered, rather natural calamities and technical errors accounted for some accidents but, a large proportion of people still remained intent on relying on the supernatural explanations. UFOs and natural reasons form the widely speculated reasons for the disappearances occurring in the Bermuda Triangle of the Atlantic Ocean since the beginning. UFOs are unexplained anomalies which many people have claimed to witness though there is no conc rete fact which can be associated with it.

Professional Responisbility Ethics Research Paper

Professional Responisbility Ethics - Research Paper Example And the Attorney, after reading the draft prepared by the Legal Assistant, decides whether the firm would handle the case, and then the attorney decides the settlement range, strategies, and ultimately finalizes the settlement. The information regarding case strategies are conveyed to the client by the Legal assistant. In addition, the legal assistant interviews witnesses, and negotiate settlement number with the insurance company. According to Canon 3 EC 3-2 of the ABA Model Code of Professional Responsibility, the sensitive variations in the considerations that bear on legal determinations often make it difficult even for a lawyer to exercise appropriate professional judgment, and it is therefore essential that the personal nature of the relationship of client and lawyer be preserved. As a result, the American Bar points out that a competent professional judgment requires trained familiarity with law and legal processes, and an analytical approach to legal problems. Admittedly, Att orney can claim that the Legal Assistant was a law student and had considerable amount of experience in handling such cases. However, the American Bar Association reminds that a non-lawyer, despite some experience, is not governed by the same rules in matters of integrity or legal competence as an attorney is. That means, despite the great degree of skills and experience of the Legal Assistant, the legal assistant cannot be entrusted such tasks which are to be done by the Attorney. However, there are disputes regarding as to what constitutes the practice of law. It is, in fact, difficult to explain in concrete terms what constitutes legal practice. However, the mere fact is that people go to a lawyer when they are in need of a professional legal judgment (EC 3-5). If this is the case, it becomes evident that Attorney has blatantly violated the ethical codes as Attorney does not directly interact with the clients. The initial interview is solely handled by Legal Assistant without any supervision of Attorney. Thereafter, it is the Legal Assistant who makes a draft of the complaint for the Attorney to read. Purely based on this report, Attorney decides if she would take up the case. That means, the clients are denied their right to listen to the legal opinion of a lawyer regarding the matter. It is pointed out in EC 3-4 that lay people who seek legal services are not in a position to judge if they will receive proper professional attention. Also, legal matters are very serious matters that involve confidences, reputation, property, freedom, or even life of the client. So, when a person approaches Attorney with such serious legal matters which are highly confidential and demanding, it is highly improper to permit a non-lawyer to handle the issue even without supervision. In addition is the fact that such non-lawyer assistants, despite experience and skills, are not subjected to the regulations of the legal profession. Admittedly, EC 3-6 provides an even clearer vi ew of the situation. According to the guideline, if a lawyer wants to delegate a task to a clerk, secretary, or any other lay person, the lawyer must ensure direct relationship with his client. Now, going back to the case study, it becomes evident that Attorney does not keep any relationship with his clients at all. The attorney does not allow direct interaction or consultation, and lets the Legal Assistant conduct the initial intervie

Growth of Venture Capital in India

Growth of Venture Capital in India VENTURE CAPITAL:- Venture capital (also known as VC or Venture) is a type of private equity capital typically provided for early-stage, high-potential, growth companies in the interest of generating a return through an eventual realization event such as an IPO or trade sale of the company. Venture capital investments are generally made as cash in exchange for shares in the invested company. It is typical for venture capital investors to identify and back companies in high technology industries such as biotechnology and ICT (information and communication technology). Venture capital firms typically comprise small teams with technology backgrounds scientists, researchers or those with business training or deep industry experience. VCs also take a role in managing entrepreneurial companies at an early stage, thus adding skills as well as capital . Inherent in realizing abnormally high rates of returns is the risk of losing all of ones investment in a given startup company. As a consequence, most venture capital investments are done in a pool format where several investors combine their investments into one large fund that invests in many different startup companies. By investing in the pool format the investors are spreading out their risk to many different investments versus taking the chance of putting all of their monies in one start up firm. A venture capitalist (also known as a VC) is a person or investment firm that makes venture investments, and these venture capitalists are expected to bring managerial and technical expertise as well as capital to their investments. A venture capital fund refers to a pooled investment vehicle (often an LP or LLC) that primarily invests the financial capital of third-party investors in enterprises that are too risky for the standard capital markets or bank loans. Venture capital is also associated with job creation, the knowledge economy and used as a proxy measure of innovation within an economic sector or geography. Venture capital is most attractive for new companies with limited operating history that are too small to raise capital in the public markets and have not reached the point where they are able to secure a bank loan or complete a debt offering. In exchange for the high risk that venture capitalists assume by investing in smaller and less mature companies, venture capitalists usually get significant control over company decisions, in addition to a significant portion of the companys ownership (and consequently value). STRUCTURE OF VENTURE CAPITAL FIRMS:- Venture capital firms are typically structured as partnerships, the general partners of which serve as the managers of the firm and will serve as investment advisors to the venture capital funds raised. This constituency comprises both high net worth individuals and institutions with large amounts of available capital, such as state and private pension funds, university financial endowments, foundations, insurance companies, and pooled investment vehicles, called fund of funds or mutual funds. TYPES OF VENTURE CAPITAL FIRMS:- Depending on business type, the venture capital firm approach differ. When approaching a VC firm, consider their portfolio: Business Cycle: Do they invest in budding or established businesses? Industry: What is their industry focus? Investment: Is their typical investment sufficient for your needs? Location: Are they regional, national or international? Return: What is their expected return on investment? Involvement: What is their involvement level? Targeting specific types of firms will yield the best results when seeking VC financing. The National Venture Capital Association segments dozens of VC firms into ways that might assist you in your search. Many VC firms have diverse portfolios with a range of clients. If this is the case, finding gaps in their portfolio is one strategy that might succeed. ROLES WITHIN VENTURE CAPITAL FIRMS:- Although the titles are not entirely uniform from firm to firm, other positions at venture capital firms include: Venture partners Venture partners are expected to source potential investment opportunities and typically are compensated only for those deals with which they are involved. Entrepreneur-in-residence (EIR) EIRs are experts in a particular domain and perform due diligence on potential deals. EIRs are engaged by venture capital firms temporarily (six to 18 months) and are expected to develop and pitch startup ideas to their host firm. Principal This is a mid-level investment professional position, and often considered a partner-track position. Principals will have been promoted from a senior associate position or who have commensurate experience in another field such as investment banking or management consulting. Associate This is typically the most junior apprentice position within a venture capital firm. After a few successful years, an associate may move up to the senior associate position and potentially principal and beyond. Associates will often have worked for 1-2 years in another field such as investment banking or management consulting. ORIGINS OF MODERN PRIVATE EQUITY:- Before World War II, venture capital investments (originally known as development capital) were primarily the domain of wealthy individuals and families. Today true private equity investments began to emerge marked by the founding of the first two venture capital firms in 1946: American Research and Development Corporation. (ARDC) and J.H. Whitney Company. ARDC was founded by Georges Doriot, the father of venture capitalism to encourage private sector investments in businesses run by soldiers who were returning from World War II. ARDCs significance was primarily that it was the first institutional private equity investment firm that raised capital from sources other than wealthy families although it had several notable investment successes as well. ARDC is credited with the first major venture capital success story when its 1957 investment of $70,000 in Digital Equipment Corporation (DEC) would be valued at over $355 million after the companys initial public offering in 1968. Venture capital firms suffered a temporary downturn in 1974, when the stock market crashed and investors were naturally wary of this new kind of investment fund. THE VENTURE CAPITAL FUNDS IN INDIA:- The concept and origin of Venture Capital, trace its growth, and highlight the venture capital regulations. It has briefly explained about the Chandra Sekhar Committee recommendations, various types of Venture Capital Funds and the venture capital process in India. A simple case on first Venture Capital Fund in India, Technology Development Information Company Of India Ltd., has also developed with concluding remarks. Introduction:- The venture capital investment helps for the growth of innovative entrepreneurships in India. Venture capital has developed as a result of the need to provide non-conventional, risky finance to new ventures based on innovative entrepreneurship. Venture capital is an investment in the form of equity, quasi-equity and sometimes debt straight or conditional, made in new or untried concepts, promoted by a technically or professionally qualified entrepreneur. Venture capital means risk capital. It refers to capital investment, both equity and debt, which carries substantial risk and uncertainties. The risk envisaged may be very high may be so high as to result in total loss or very less so as to result in high gains. THE CONCEPT OF VENTURE CAPITAL :- Venture capital means many things to many people. It is in fact nearly impossible to come across one single definition of the concept. Venture capital is defined as providing seed, start-up and first stage financing and also funding the expansion of companies that have already demonstrated their business potential but do not yet have access to the public securities market or to credit oriented institutional funding sources. The European Venture Capital Association describes it as risk finance for entrepreneurial growth oriented companies. It is investment for the medium or long term return seeking to maximize medium or long term for both parties. It is a partnership with the entrepreneur in which the investor can add value to the company because of his knowledge, experience and contact base. THE ORIGIN OF VENTURE CAPITAL :- In the 1920s 1930s, the wealthy families of and individuals investors provided the start up money for companies that would later become famous. Eastern Airlines and Xerox are the more famous ventures financed. Among the early VC funds set up, was the one by the Rockfeller Family, which started a special fund called VENROCK in 1950, to finance new technology companies. General Doriot, a professor at Harvard Business School, in 1946 set up the American Research and Development Corporation (ARD), the first firm, as opposed to a private individuals, at MIT to finance the commercial promotion of advanced technology, developed in the US Universities. ARDs approach was a classic VC in the sense that it used only equity, invested for long term, and was prepared to live with losers. ARDs investment in Digital Equipment Corporation , 1957 was a watershed in the history of VC financing. While in its early years venture capital may have been associated with high technology, over the years the concept has undergone a change and it implies pooled investment in unlisted companies. MAIN ALTERNATIVES TO VENTURE CAPITAL:- Because of the strict requirements venture capitalists have for potential investments, many entrepreneurs seek initial funding from angel investors, who may be more willing to invest in highly speculative opportunities, or may have a prior relationship with the entrepreneur. Furthermore, many venture capital firms will only seriously evaluate an investment in a start-up otherwise unknown to them if the company can prove at least some of its claims about the technology and/or market potential for its product or services. To achieve this, or even just to avoid the dilutive effects of receiving funding before such claims are proven, many start-ups seek to self-finance until they reach a point where they can credibly approach outside capital providers such as venture capitalists or angel investors. This practice is called bootstrapping. In industries where assets can be securitized effectively because they reliably generate future revenue streams or have a good potential for resale in case of foreclosure, businesses may more cheaply be able to raise debt to finance their growth. Good examples would include asset-intensive extractive industries such as mining, or manufacturing industries. Offshore funding is provided via specialist venture capital trusts which seek to utilise securitization in structuring hybrid multi market transactions via an SPV (special purpose vehicle): a corporate entity that is designed solely for the purpose of the financing. In addition to traditional venture capital and angel networks, groups have emerged which allow groups of small investors or entrepreneurs themselves to compete in a privatized business plan competition where the group itself serves as the investor through a democratic process. Venture capital (VC) arms of companies such as Intel, Cisco, Reliance ADAG, Google and Yahoo are increasing their investments in early stage technology and consumer service start-ups in India. Early Days In the absence of an organised Venture Capital industry until almost 1995, individual investors and development financial institutions played the role of venture capitalists in India. Entrepreneurs have largely depended upon private placements, public offerings and lending by the financial institutions. In 1973, a committee on Development of Small and Medium Enterprises highlighted the need to foster venture capital as a source of funding new entrepreneurs and technology. Thereafter some public sector funds were set up but the activity of venture capital did not gather momentum as the thrust was on high-technology projects funded on a purely financial rather than a holistic basis. REGULATORY GUIDELINES FRAMEWORK:- Later, a study was undertaken by the World Bank, to examine the possibility of developing Venture Capital in the private sector, based on which the Government of India took a policy initiative and announced guidelines for Venture Capital Funds (VCFs) in India in 1988. However, these guidelines restricted setting up of VCFs by the banks or the financial institutions only. Thereafter, the Government of India issued guidelines in September 1995, for overseas investment in Venture Capital in India. For tax-exemption purposes, guidelines were also issued by the Central Board of Direct Taxes (CBDT) and the investments and flow of foreign currency into and out of India have been governed by the Reserve Bank of Indias (RBI) requirements. Further, as a part of its mandate to regulate and to develop the Indian capital markets, the Securities and Exchange Board of India (SEBI) framed the SEBI (Venture Capital Funds) Regulations, 1996. These guidelines were further amended in April 2000 with the objective of fuelling the growth of Venture Capital activities in India. OBJECTIVES AND VISION FOR VENTURE CAPITAL IN INDIA:- Venture capitalists finance innovation and ideas which have potential for high growth but with inherent uncertainties. This makes it a high-risk, high return investment. Apart from finance, venture capitalists provide networking, management and marketing support as well. In the broadest sense, therefore, venture capital connotes financial as well as human capital. In the global venture capital industry, investors and investee firms work together closely in an enabling environment that allows entrepreneurs to focus on value creating ideas and allows venture capitalists to drive the industry through ownership of the levers of control, in return for the provision of capital, skills, information and complementary resources. This very blend of risk financing and hand holding of entrepreneurs by venture capitalists creates an environment particularly suitable for knowledge and technology based enterprises. Scientific, technology and knowledge based ideas properly supported by venture capital can be propelled into a powerful engine of economic growth and wealth creation in a sustainable manner. In various developed and developing economies venture capital has played a significant developmental role. India has the second largest English speaking scientific and technical manpower in the world. The Indian software sector crossed the Rs 100 billion mark turnover during 1998. The sector grew 58% on a year to year basis and exports accounted for Rs 65.3 billion while the domestic market accounted for Rs 35.1 billion. Exports grew by 67% in rupee terms and 55% in US dollar terms. The strength of software professionals grew by 14% in 1997 and has crossed 1,60,000. The global software sector is expected to grow at 12% to 15% per annum for the next 5 to 7 years. Recently, there has also been greater visibility of Indian companies in the US. Given such vast potential not only in IT and software but also in the field of service industries, biotechnology, telecommunications, media and entertainment, medical and health services and other technology based manufacturing and product development, venture capital industry can play a catalytic role to put India on the world map as a success story. WHERE ARE VCS INVESTING IN INDIA? IT and IT-enabled services Software Products (Mainly Enterprise-focused) Wireless/Telecom/Semiconductor Banking PSU Disinvestments Media/Entertainment Bio Technology/Bio Informatics Pharmaceuticals Electronic Manufacturing Retail ISSUES AND CHALLENGES:- Indian Venture Capital yet to be established as a sustainable asset class among institutional investors. Moreover a limited amount of true risk-capital impacts entrepreneurial activity. Exit challenges exist mainly due to shallow capital markets and dull MA environment for small companies. Most importantly, India is yet to create a brand-name for IP-led companies, like Israel has successfully done. THE GROWTH OF VENTURE CAPITAL: A CROSS-CULTURAL COMPARISON The venture capital (VC) industry plays an important role in nurturing entrepreneurship and innovation, and its role varies from country to country. The six countries whose VC industries are analyzed here are the United States and Canada, whose VC industries are mature; Sweden and Denmark, which have established small but successful VC industries; and Israel and Turkey, whose experiences demonstrate the state of the young VC industry in transition economies. The analysis is based on the four main determinants of the VC industry: sources of financing, institutional infrastructure, exit mechanisms, and entrepreneurship and innovation generators. In addition, the special role of VC financing in the biomaterials industry is explained. Understanding the factors that contribute to the emergence of a successful venture capital industry is important for academics, VC associations, policy-making institutions, government agencies, and investors themselves. VENTURE CAPITAL IN INDIA:- In India, the Venture Capital plays a vital role in the development and growth of innovative entrepreneurships. Venture Capital activity in the past was possibly done by the developmental financial institutions like IDBI, ICICI and State Financial Corporations. These institutions promoted entities in the private sector with debt as an instrument of funding. For a long time, funds raised from public were used as a source of Venture Capital. This source however depended a lot on the market vagaries. And with the minimum paid up capital requirements being raised for listing at the stock exchanges, it became difficult for smaller firms with viable projects to raise funds from public. In India, the need for Venture Capital was recognised in the 7th five year plan and long term fiscal policy of GOI. In 1973 a committee on Development of small and medium enterprises highlighted the need to faster VC as a source of funding new entrepreneurs and technology. VC financing really started in India in 1988 with the formation of Technology Development and Information Company of India Ltd. (TDICI) promoted by ICICI and UTI. The first private VC fund was sponsored by Credit Capital Finance Corporation (CFC) and promoted by Bank of India, Asian Development Bank and the Commonwealth Development Corporation viz. Credit Capital Venture Fund. At the same time Gujarat Venture Finance Ltd. and APIDC Venture Capital Ltd. were started by state level financial institutions. VENTURE CAPITAL INVESTMENTS IN INDIA:- The venture capital investment in India till the year 2001 was continuously increased and thereby drastically reduced. It is estimated that there was a tremendous growth by almost 327 percent in 1998-99, 132 percent in 1999-00, and 40 percent in 2000-01 thereafter venture capital investors slow down their investment. Surprisingly, there was a negative growth of 4 percent in 2001-02 it was continued and a 54 percent drastic reduction was recorded in the year 2002-2003. TYPES OF VENTURE CAPITAL FUNDS:- Generally, there are three types of organised or institutional venture capital funds: venture capital funds set up by angel investors, that is, high net worth individual investors; venture capital subsidiaries of corporations and private venture capital firms/ funds. Venture capital subsidiaries are established by major corporations, commercial bank holding companies and other financial institutions. Venture funds in India can be classified on the basis of the type of promoters. VCFs promoted by the Central govt. controlled development financial institutions such as TDICI, by ICICI, Risk capital and Technology Finance Corporation Limited (RCTFC) by the Industrial Finance Corporation of India (IFCI) and Risk Capital Fund by IDBI. VCFs promoted by the state government-controlled development finance institutions such as Andhra Pradesh Venture Capital Limited (APVCL) by Andhra Pradesh State Finance Corporation (APSFC) and Gujarat Venture Finance Company Limited (GVCFL) by Gujarat Industrial Investment Corporation (GIIC). VCFs promoted by Public Sector banks such as Canfina by Canara Bank and SBI-Cap by State Bank of India. VCFs promoted by the foreign banks or private sector companies and financial institutions such as Indus Venture Fund, Credit Capital Venture Fund and Grindlays India Development Fund. VENTURE CAPITAL FUNDING:- Venture capitalists are typically very selective in deciding what to invest in; as a rule of thumb, a fund may invest in one in four hundred opportunities presented to it. Funds are most interested in ventures with exceptionally high growth potential, as only such opportunities are likely capable of providing the financial returns and successful exit event within the required timeframe (typically 3-7 years) that venture capitalists expect. Venture capitalists also are expected to nurture the companies in which they invest, in order to increase the likelihood of reaching an IPO stage when valuations are favorable. Venture capitalists typically assist at four stages in the companys development: Idea generation; Start-up; Ramp up; and Exit There are typically six stages of financing offered in Venture Capital, that correspond to these stages of a companys development. Seed Money: Low level financing needed to prove a new idea (Often provided by angel investors) Start-up: Early stage firms that need funding for expenses associated with marketing and product development First-Round: Early sales and manufacturing funds Second-Round: Working capital for early stage companies that are selling product, but not yet turning a profit Third-Round: Also called Mezzanine financing, this is expansion money for a newly profitable company Fourth-Round: Also called bridge financing, 4th round is intended to finance the going public process WHAT DO VCS LOOK FOR? Venture capitalists are higher risk investors and, in accepting these risks, they desire a higher return on their investment. The venture capitalist manages the risk/reward ratio by only investing in businesses which fit their investment criteria and after having completed extensive due diligence. Venture capitalists have differing operating approaches. These differences may relate to location of the business, the size of the investment, the stage of the company, industry specialization, structure of the investment and involvement of the venture capitalists in the companies activities. The entrepreneur should not be discouraged if one venture capitalist does not wish to proceed with an investment in the company. The rejection may not be a reflection of the quality of the business, but rather a matter of the business not fitting with the venture capitalists particular investment criteria. Often entrepreneurs may want to ask the venture capitalist for other firms that might be interested in the investment opportunity. VENTURE CAPITAL IS NOT SUITABLE FOR ALL BUSINESSES, AS A VENTURE CAPITALIST TYPICALLY SEEKS : Superior Businesses:- Venture capitalists look for companies with superior products or services targeted at large, fast growing or untapped markets with a defensible strategic position such as intellectual property or patents. Quality and Depth of Management:- Venture capitalists must be confident that the firm has the quality and depth in the management team to achieve its aspirations. Venture capitalists seldom seek managerial control, rather they want to add value to the investment where they have particular skills including fund raising, mergers and acquisitions, international marketing, product development, and networks. Appropriate Investment Structure:- As well as the requirement of being an attractive business opportunity, the venture capitalist will also seek to structure a deal to produce the anticipated financial returns to investors. This includes making an investment at a reasonable price per share (valuation). Exit Opportunity:- Lastly, venture capitalists look for the clear exit opportunity for their investment such as public listing or a third party acquisition of the investee company. Once a short list of appropriate venture capitalists has been selected, the entrepreneur can proceed to identify which investors match their funding requirements. At this point, the entrepreneur should contact the venture capital firm and identify an investment manager as an initial contact point. The venture capital firm will ask prospective investee companies for information concerning the product or service, the market analysis, how the company operates, the investment required and how it is to be used, financial projections, and importantly questions about the management team. In reality, all of the above questions should be answered in the Business Plan. Assuming the venture capitalist expresses interest in the investment opportunity, a good business plan is a pre-requisite. METHODS OF VENTURE FINANCING:- Venture capital is typically available in three forms in India, they are: Equity : All VCFs in India provide equity but generally their contribution does not exceed 49 percent of the total equity capital. Thus, the effective control and majority ownership of the firm remains with the entrepreneur. They buy shares of an enterprise with an intention to ultimately sell them off to make capital gains. Conditional Loan: It is repayable in the form of a royalty after the venture is able to generate sales. No interest is paid on such loans. In India, VCFs charge royalty ranging between 2 to 15 percent; actual rate depends on other factors of the venture such as gestation period, cost-flow patterns, riskiness and other factors of the enterprise. Income Note : It is a hybrid security which combines the features of both conventional loan and conditional loan. The entrepreneur has to pay both interest and royalty on sales, but at substantially low rates. Other Financing Methods: A few venture capitalists, particularly in the private sector, have started introducing innovative financial securities like participating debentures, introduced by TCFC is an example. VENTURE CAPITALISTS INVESTING IN INDIA:- For a very long time, Silicon Valley venture capitalists only invested locally. However, throughout the years, they expanded their investments worldwide. Most recently, Matrix Partners, a leading American venture capitalist firm, had announced a $150 million India fund, where they will provide internet, mobile, media, entertainment, leisure, and travel services to customers in Mumbai. Sequoia Capital, a Silicon Valley-based VC firm, wanted to take advantage of investing in start-up companies and had acquired West bridge Capital, an Indian firm, for $350 million. It is no wonder that venture capitalist investments in India have risen dramatically within the past few years. From 2005 to 2007, VC investments in India grew from $320 million to about $777 million, respectively. Some important Venture Capital Funds in India:- APIDC Venture Capital Limited , 1102, Babukhan Estate, Hyderabad 500 001 Canbank Venture Capital Fund Limited, IInd Floor, Kareem Towers, Bangalore Gujarat Venture Capital Fund 1997, Ashram Road, Ahmedabad 380 009 Industrial Venture Capital Limited, Thyagaraya Road, Chennai 600 017 Auto Ancillary Fund Opp. Signals Enclave, New Delhi 110 010 Gujarat Venture Capital Fund 1995 Ashram Road Ahmedabad 380 009 Karnataka Information Technology Venture Capital Fund Cunningham Rd Bangalore India Auto Ancillary Fund Nariman Point, Mumbai 400 021 Information Technology Fund, Nariman Point, Mumbai 400 021 Tamilnadu Infotech Fund Nariman Point, Mumbai 400 021 Orissa Venture Capital Fund Nariman Point Mumbai 400 021 Uttar Pradesh Venture Capital Fund Nariman Point, Mumbai 400 021 SICOM Venture Capital Fund Nariman Point Mumbai 400 021 Punjab Infotech Venture Fund 18 Himalaya Marg, Chandigarh 160 017 National venture fund for software and information technology industry Nariman. DHFL VENTURE CAPITAL INDIA PVT LTD:- DHFL Venture Capital India Pvt. Ltd. (DVCI) provides advisory, managerial and consultancy services to Venture Capital Funds, Venture Capital Managements and Venture Capital Undertakings, related to Indian Real Estate. DVCI is promoted by Dewan Housing Finance Corporation Limited (DHFL), Indias premier second largest housing finance company in the private sector. The Company is presently providing investment management services to DHFL Venture Capital Fund. DHFL Venture Capital Fund was launched in Feb 2006, one of the first private equity Real estate funds in India. The fund is registered with Securities and Exchange Board of India. CANBANK:- Canaan Partners (Canaan) is a global venture capital firm focusing on investments in early stage companies in the technology and healthcare sectors. The firms technology group focuses on digital media, communications, enterprise software, semiconductors, and cleantech. The healthcare group focuses on biopharmaceuticals, devices, and diagnostics. Founded in 1987, the firm has offices in Menlo Park, California; Westport, Connecticut; Gurgaon, India; and Herzliya, Israel. Since inception, Canaan has raised eight funds to date and as of 2009 manages $3 billion in capital. Canbank Venture Capital Fund Ltd (CVCFL) is a wholly owned Subsidiary of Canara Bank. Canbank Venture Capital Fund is Indias First and Only Public Sector Bank sponsored Venture Capital Fund, set up in 1989. The Fund is registered with SEBI. Four Venture Capital Funds with an aggregate corpus of around INR 1200 Million launched till date. The portfolio investments are spread across diverse industrial segments. A Case on Technology Development Information Company Of India Ltd. TDICI was incorporated in January 1988 with the support of the ICICI and the UTI. The countrys first venture fund managed by the TDICI called VECAUS ( Venture Capital Units Scheme) was started with an initial corpus of Rs.20 crore and was completely committed to 37 small and medium enterprises. The first project of the TDICI was loan and equity to a computer software company called Kale Consultants. Present Status: At present the TDICI is administering two UTI -mobilised funds under VECAUS-I and II, totaling Rs.120 crore. the Rs.20 crore invested under the first fund, VECAUS-I, has already yielded returns totaling Rs. 16 crore to its investors. Some of the projects financed by the TDICI are discussed below. MASTEK , a Mumbai based software firm, in which the TDICI invested Rs.42 lakh in equity in 1989, went public just three ye