Business/Management and project consulting in Nepal

Today when i was returning from office, i was thinking about my career. What should i do when i go bak to nepal after compleeting my higher study? People harldly think our of their work and experience. Si i was also thinking about the management and project consulting business in nepal.
Possibility of management consultancy and project consultancy is very high now a days as far as i think. After restoration of demoracy government has plan to spent a lot of money in infrastructure development which can be one potential area of project consulting and private sector is also very motivated to invest in new sectors. Further many companies and industries are facing many business and management problem which is one potential area of management consultany.
Competition is minimum in this field if we concentrate on market however some big name such as KPMG and Price Waterhouse Coopers are present with agency. But these agencies are more concentrating in auditing not in project and management consulting. So business potential is very high and competition is relatively low.
Human resource for this business is little bit problem. But now a days many students are returning from good business schools and we can also hire some experienced person in management and project. Engineers are not a problem in Nepal but some good MBA's should be hired.
Finally i see management/project consulting business can be one potential area where we young people can enter and thrive. We can put out knowledge and effort learnt in foreign universities and companies for the development of our nation.

Management consulting in Nepal

Business success is ultimate goal of any business person and without proper management it is not possible. Management consulting is considered as one of the key factor of successful business.
Basically management consulting companies provide services to the large corporation as well as small and medium to solve their management problem thereby increasing the efficiency within the company. Many ground breaking management concepts are developed by management consulting companies and among those Boston Consulting group, GE consulting, Mckensy and lot more to name.
Nepal being a under developed country may take such advantages of consulting services of those consulting companies. Some companies had tried to enter in nepalese market. For example Delloite, KPMG etc. But those were concentrating in financial consulting not management consulting. Therefore major companies such as BCG, Mckensy, Bearing point, Accenture should try to enter in this tiny country not only to expand there market but also to strethen the development and industrialization of this country.

Business Process Optimization

Doing business is a continious process. Remain in the market, the business process of the company should be optimized. Optimization ofprocess means analyzing the existing business process and finding the deviations, problems and constraints. Then providing recommendations and finalyy implementing these recommendations in the process. In short identify the problems in existing process and removing them using various tools and techniques.
Business process optimization contains two process; transition and transformation.

Transition
When companies have problems it should identify these problems. Analyzing the existing system ,identifying the problem causing underperformance and finally providing recommendations is called transition. In another word we can call it problem identificationa and idea generation stage.
Transformation
This is working phase to implement the recommendations. In this stage plans and strategies are generated to execute those recommendation to transform from current state to improved state. Many tools, techniques and processes are applied here to get new optimized environement which is enable to operate efficiently and effectively.

portfolio diversification, simple phenomenon

Investment is an art. If one wants to grow financially s/he has to invest in such a way that his/her wealth should increase. One way to invest money in secured way is to make portfolio. This theory is based on a proverb that never put your all eggs in one basket. If you put then simply there is risk of loosing each one of them.
Portfolio, in another term is diversification is investing the money in different assest that will increase net wealth with low risk. Diversification are of many type i.e. Superfluous diversification, markowitz diversification etc.
Superfluous diversification means diversify your investment in 20-30 assests. This diversification is only for the shake of diversification. It makes the things complicated, increase the cost of portfoli management. Another diversification is markowitz diversification. This diversification suggest to invest money accrding to risk and return associated to the assests. Further there is some kind of correlation among the assests and markowitz diversification strongly suggests that this correlation should also be considers while investing your hard earned money.
One simple example

nAssume that the investor invests 50% of capital stock in stock A and 50% in B
•1. Calculate E(R)
•E(Rp) = sum of xi E(Ri)
•E(Rp) =.5(.05) + .5(.15)
•E(Rp) = .025 + .075
•E(Rp) = .10 or 10%

here if one invests money in only one assest then the risk is very high. Portfolio risk is simple weighted average value of standard deviation.

New terrorist attack in Mumbai

I was almost drunk on that day in a German city Dortmund with one of my friend here. After 21:30 we went home and turned on the TV. To my surprise Mumbai was on fire. CNN was telecasting the live news report of explosion and attack in two renowned hotel of India; Hotel Taj and Hotel Oberoy. More than 100 people were killed and more than 300 were injured. I could not stop myself changing news channel but every channel had same news. i was watching TV till 2:oo oclock and the next day each news paper, news site had only one news; Mumbai on fire, terrorist attack in Mumbai etc.
Suddenly i remembered some of my indian friends and worried about them. Thank god all them and their family are safe. But i have deep sorrow to the people and the family who are killed and injured in this hinious attack.
India a growing economy and a rising power of the world was shoked from this attack. India has accused pakistan as attacker and supporter of that attack which pakistan has already rejeted and condemned the attack. Many countries have condemned the attack but major question is to fasten the rescue operation which i saw lacking in Mumbai. Still people are trapped in two hotels and some other places. Terrorist have made some hostages and mumbai pilice and army has been trying to take the situation n control.
After 1993 mumbai attack this is the biggest one attack in Mumbai, the economic capital and film capital of India.

people pretending to forget mother tounge

Now a days people from Nepal are going abroad and therefore learning foreign languages. When i came to Germany then came to know that people are forgetting nepalese language. When speaking they use many english words which has confused me. Though i can speak very good nepalese language and english as well but when some one speaks mixing both language then i feel awakward. Thats not the major problem but the major problem is when i speak typical nepalese language then they say that its hard to understand. What a pity.
They speak nepalese language like this.
A:helo ke cha aaja ko news
B: Actually, ma city tira yeso walk ko lagi gako thiye suddenly euta sathi bhethiyo. Then hami ekchin restaulant ma baseu. nothin special yaar.
A: mero yaar, i do not know aajkal ke bhai rachha. i am not feeling good. jindagi yaar khoi ke bhanne bhanne.
B: But for me , perfect, mauj nai mauj.

what a conversation. I ave to think alot to understand the thing.
There is nothing wrong to speak any language but speak one at a time. If you are speaking nepalese language then do not mix other language as much as possible and for other language as well.

Expensive cars of the world

Bugatti the most expensive car

Porsche BMW

Development through international cooperation

After being republic, Nepal is looking forward to develop itself through international co operation and help. Having tremendous natural resources Nepal is one of the poorest nation of the world. Nepal sandwiched in between China and India could have been developed taking the advantage of higher growth and development in these big nations. But Nepal failed to do so because of many reasons. One of these is committed government.
Now Nepal has committed government headed by Maoist and all are looking forward to having developed nation.

US financial crisis

After collapse of Lehman Brothers, now another financial institution i.e. AIG is in trouble. Everyday NYSC index is going down. Big financial institutions are going down day by day. To protect the down going economy US treasury and Federal reserve have decided to inject huge amount of money in the economy. Halting short selling is another step to control the economy. What next? is the main question.
Being the largest economy, it has direct impact on other economy and it has seen overnight. Russian stock has plunged down by almost 30 percent and similar condition has seen in european and asian stock exchange.
To resolve the situation allmost all central bank have decided to inject billions of dollar in the economy. But is it only solution? Even if the answer is yes, government should take care of inflation and negative impact on economy. However major step should be taken to realise bad debts. If this action is taken public confidence will raise in the economy.

Conflict between ministers in Nepal

After two days of PM's visit to India, one minister of his cabinet has been showing the power of post and power of armed force. Recent incident in Mirchaiya shows irresponsible behavior of Maoist ministers which ultimately underpine the popularity of Maoist government.

May be the land owned by Birendra Shah was bought from the relative of former king of Nepal of this does not give any right to minister of land reform Mr. matrika Prasad Yadav loot from real owner in the name of capitalist or whatever. He has YCL, a armed force of Maoist and with this power he got power to do everything he wants? I think he has either gone mad or in the process.:)

Otherwise minister himself went to loot? Unbelieveable!!!!!!

Even home minister could not stop him doing so. Matrika threatned PM to resign from the post and party if any action taken against him. What a daring but this is called "Dussahas" in nepalese language. I think PM Prachanda should kick his ass for his such kind of irresponsible behavior.

Manners after leaving home

Being out of home is really painful. At the same time it is an opportunity to learn something new and explore the world. I am writing this blog about being abroad and leaving good manners at home.
I am now far from home and enjoying total freedom. parents have limited access with me and its totally upto me to make contact with them. But it does not mean that i should forget all the good thing and do whatever i want whatever i think. All of my thinking may not be good neither yours. Yours means somebody else.
Some of my friends are also abroad and have learnt using "F" word. Is this their tension or a nwe manner to be smart in front of others? Obviously its their tension, panic and frustration. In frustration they strat scolding others, underpining others emotion. But who is actually loosing?
Loosers are thise who slip fron their base. Base is once character, manner, knowledge. Only showing anger to other does not help you. What really help are becoming calm, patient and cooperative.
Never forget one thing you can make many friends but true friend is that who sits by your side even in your tough time.

Largetst experiment in Physics

Today CERN has experimented the largest test in Physics. In franco Swiss boarder CERN has built 27 KM long tunnel to fire the protone particals. It is expected that these proton particals will be collided each other which creats the similar situation of Big Bang explosion. It is also expected that it will give more insights to the origin of Galaxy.

Some critics said that this process will create balck holes and it will swallow the earth but this successful experiment has rubbished these kind of criticism.

My visit to Aachen and Bonn

Last thursday was very nice for me. I and one of my friend went to visit two German cities Bonn and Aachen. First of all we headed to Aachen which shares boarder with Belgium. At around 1200 hrs we were in Aachen main station. However we had no idea about the places to visit. So we asked to one person and we found him very kind and helpful. He told us about all the places of Aachen and bus route as well. So we headed for the Aachen dome which is a church and was beautiful. After visiting some other places like Rathaus and another church we wanted to go to a hill from where all Aachen city can be watched. We took a bus and went there. The scene was outstanding. We had plan to visit Bonn, former capital city of west Germany so we walked down but we saw a beautiful garden with red and white flowers. We could not stop ourself to visit that place. We spent 1 hour there and durig visit i slipped in a pond. Both of my shoes got wet and i was panic.

But we did not postponed our visit to the Bonn. We took train and came to Bonn. I had plan to visit University of Bonn and my friend was fascinated by the environment of that university. He was not ready to return on that day but we had to. We took a lot of photos there and headed to Rheine river, a main river of Europe. We walked on the bank of Rheine till evening and came back to the main train station of Bonn to return to Dortmund.

However the time was not enough to cover all the parts of Bonn city which stants for the beauty and culture of Germany.

It was a great experience in my life in Germany.

Development agenda in least developed countries

Out of 192 countries ( member of UNO) more than 50 countries are listed as least developed countries. Which means people of these countries are living with less than 1 dollar per day. Stories of other many countries are not different. It shows that majority countries are either least developed or developing countries.
Among these least developed countries "NEPAL" is one which is situated between China and India. Nepal shares boarder with India from three sides and with China from one side. So Nepal is land linked country which does not have direct access to sea. Since the membership in UNO, Nepal has been listed as least developed country. It means in last may decades Nepal could not develop itself. Why?
Answer is simple, political instability and corruption. Before 1950 Nepal was ruled by Rana regime putting the people in darkness. No education was available. After democracy in 1950 again Nepal was ruled by king without providing political freedom.
Till 2006 Nepal had countless government whose age was from 9 month to 2-3 years. So major reason of no development was political instability. During democracy Nepali Congress held power most of the time. Political leaders of this party became rich but the nation became poor and poor. Every day there was conspiracy to make and dissolve the government. Parties had no time for national development.
Another reason is wide spread corruption. It starts from the very lower level of bureaucracy to the prime minister level. If we see the top level personnel of government, their living style is far better than the people of most developed countries. This is not possible without corruption. And important thing, even judiciary is not out of this corruption network. people are becoming poor and poor and leaders are becoming rich and rich.
To develop, major investment should be made in infrastructure such as road, irrigation, power and major emphasis should be given to agricultural sector. Investment should be made in productive sector such as export and agriculture. Only then economy of Nepal can be improved. Otherwise we remain poor and gap between haves and have not become wide.

Visit Nepal

its available only in Nepal
Its the himalaya

Visiting Nepal is an experience in paradise.

Recent visit of "Prachanda" to China

Recent visit to attend Olympic game in china by PM Prachanda has aroused many questions among different parties. India who is always acted as a care taker of Nepal vowed deep concern over the visit and even Indian PM Singh told that it was a mistake.
Though it was a hard decision taken by the Nepali PM to visit China before India which was almost a tradition. But it has initiated a new age of foreign affairs of Nepal.

Current nepalese news

View current nepalese news and videos

http://www.bbc.co.uk/nepali/

http://www.mysansar.com/

http://www.nepalnews.com/archive/main.htm

Watch Mumbai meri jaan online

Go to this link

bharatmovies.com
musicn.movies.com

NEPAl

A country of peace and glory.

Interest rate swap

everybody needs money and business can not run without money. But when one company takes loan from bank then it has to pay interest eithr in fixed rate or in floating rate. If the interest rate is based on floating rate then company has risk of incresing interest rate. What is the solution? Among many , interest rate SWAP is one financial instrument which can reduce interest rate risk.

interest rate swap is recently developed financial tool in which two parties exchange their cash flow generated from interest thereby reducing interest rate risk. How it works?

There must be two parties to exchange the interest rate. One party gives interest of other party and other party does the same. Confused!!!!!!!!!!!!!

We can explain it with one example. Company A which has better credit rating so it can get loan at lower interest rate which is based on floating rate i.e. LIBOR (London Interbank offering rate) e..g at LIBOR +50bp or at fixed interest rate i.e. lets say 10%. At the same time another party B has lower credit rating and can get loan at LIBOR + 150 bp or at fixed rate of 9%.

here party A can get lower interest based on LIBOR but wants to fix its interest rate however if it takes at fixed rate it has to pay 10% and party B can get lower interest at fixed but wants floating rate. If they on their own they can not get cheaper loan and even can not reduce interest rate risk. So swap is one alternative. Among many types of interest rate swap floating to fixed rate swap is available and one bank lets say Deutsche Bank can work as intermediator to deal the swap. How it works here we can show.

Company A pays a fixed rate to the bank at 9.5% and bank pays fixed rate of 9%to company B. At the same time Company B pays a Floating rate i.e. LIBOR + 125 bp to bank and bank pays to company A LIBOR+100 bp.

Now net effect to companoes:

Company A: -9.5%+LIBOR+100bp-LIBOR + 50bp ( to own bank)= 9% fixed

here what ever happens to the floating interest rate net effect to company A will remain 9%

Company B:+9%- LIBOR+125bp-10% ( to own bank)= LIBOR + 225bp

In our previous paragraph we explained that company A wants fixed interest and it got and B wants floating rate and it also got. Now bank has also got the margin . This is a typical win win situation for all parties and interest rate risk has been also reduced.

The first interest rate swap was done between IBM and World bank in 80's and now it has become very popular financial tool.

Program portfolio management

Program portfolio Management

Perspective

Companies can not survive with only one project. Projects are cash flow generator in companies and to survive and to compete in the market more than one project should be managed parallel. We can help to manage your portfolio effectively applying our model which is proven best in communication industry.

Not all the project will add the value to the company so evaluation, prioritize and selection of profitable projects is the main objective of program and portfolio management.

1. Benefit of Program Portfolio Management

Major benefit is to synergize the operation of different projects running at the same time. Companies are running many projects at the same time and to achieve the goal of the company the portfolio should be optimized.

With the help of our project portfolio management companies can better manage their project and portfolio. Following are the major benefits:

1) Better allocation of organizational resources to all the projects

2) Link projects to strategy and ultimately to attain the vision & Mission of the company

3) Better project coordination

4) Maximize the value of portfolio

5) Benefit management for the client

6) Program governance which controls and provide a framework for the effective risk management

2.1. Program portfolio management

All the project activities will contribute to the attainment of mission and goal of the company. Ericsson follows following process for project portfolio management.

Process

1) Business Alignment and project Screening

2) Project scoring

3) Project ranking

4) portfolio simulation

5) Portfolio monitoring

6) Portfolio definition

program management addresses different aspects . These are:

1) Benefit management

Benefit management is the management of program by coordinating different projects aligned to the company’s vision and strategy. In a program many projects are interrelated. Evaluating and allocation of organizational resources efficiently increases the benefit of whole program.

Program benefits can be

a) Tangible such as increased profit, sales etc. which can be quantifiable

b) Intangible e.g. increased customer satisfaction, increased employee morale, reduced absenteeism etc.

2) Stakeholder management

A program has broader stakeholders than that of Project. So program management has to deal with different stakeholders such as Program directors, program managers, project managers, customers, program governance board, and others. Ericsson program management service can address all the expectation of the stakeholders and ultimately lead to the attainment of program and company objectives.

3) Program governance

Third aspect of the program management is program governance and it controls the activities within the program. Project governance controls the company’s investment, monitor the benefits and the result of these activities is to provide a framework for effective risk management.

3. Program Portfolio can be managed using two methods

1) Financial method

2) Non financial method

Return from each project is valuable to the company and we can analyze the financial performance of each project that you run and manage portfolio which will be the optimal. Financial criteria are key to the portfolio management. These criteria we use are:

1) Return on Investment (ROI)

2) Discounted cash flow method: Analysis of project and portfolio performance considering time value of the money.

a. Net present value (NPV)

b. Internal rate of return (IRR)

3) Cost benefit analysis: Analysis of the individual project based of cost and profit. An efficient portfolio can be formed by taking beneficial projects.

Non financial method considers almost all criteria which affect the project and influence its outcome. These methods covers the qualitative aspects of the project portfolio management. Following methods can be used for better portfolio management:

1) Checklist method

a. Check all the requirement of project and portfolio

2) Multiple weighted method

a. Assign weight for each criterion and rank them according to the weight.

4. Value add for the clients

project portfolio management helps to remove following problem in multi project environment and optimize the portfolio performance:

2) under and over utilization of capacity in projects and programs

3) Coordinate all the project to achieve the goal of the company

4) Manage the information for all project and programs

5) Prioritize the projects in portfolio which adds value for the company

6) Make synergy effect of each project to the portfolio