Money and power are inseparable
With the 2016 US Presidential elections just around the corner, the business community expects a myriad of changes that will come with these elections, just like it has been with the other elections. Politicians are likely to take advantage of any form of financial crises during their campaigns, and this normally has a great impact on businesses. Here are 4 ways the 2016 US presidential election can affect businesses.
- The elections will affect the stock market. Political maneuvering normally has a significant impact on the stock market. Although it is generally accepted that stock levels are not the best indicators of the prospects of a candidate or a party, it is very clear that some stocks are affected by politics. According to the Wall Street Journal, the current market anxiety could affect the 2016 Presidential Election in various ways.
To begin with, these elections are good for some stocks and bad for others. Immediately after the year of the election, stocks are at the weakest point. Performance increase in the third year and it is at its best in the fourth year, then the cycle begins again. All these changes affect businesses in one way or the other.
- Income taxes may increase. With the increase in income and capital gains tax already in effect, you can expect that the 2016 US presidential elections will increase taxes, mush to the disadvantage of businesses and the general economy. Increase in taxes is a contractionary fiscal policy, which shrinks the economy. Businesses cannot thrive in this environment.
- Inflation will rise. Predicting inflation always is a tricky business but judging from the past electioneering periods, inflation is expected to rise during and shortly after the 2016 US presidential elections. Treasury Inflation-Protected Securities (TIPS) can be used to protect investment portfolios against the effects of inflation. This are fixed income securities that are tied to the CPI (Consumer Price Index). However, TIPS are sensitive to interest changes, meaning that they may not be effective in the short run. Generally, an increase in inflation may not be bad to businesses in the short run, as long as the inflation rate is maintained at a mild level.
- Effect of the elections on investments. Whoever wins the elections, investments will be affected either positively or negatively. That is why, according to an article on a recent Wall Street journal, the investment portfolio of the presidential-candidate Ron Paul is not weighed in the traditional stock and bonds but on alternative investments. Investors must appreciate the fact that sometimes, political ideologies have a great impact on investment performance. Obviously, when investment performance is high, you expect businesses to be doing well.
In summary, as everyone awaits the 58th quadrennial U.S. presidential election scheduled for Tuesday, November 8, 2016, it is important for businesses to be proactive with their finances. Political uncertainty makes it difficult to predict which businesses will thrive and which ones will collapse, but either way, it is very dangerous to put the fate of financial futures of businesses in the hands of politicians. Click here to return to Stonewall News.
What is Alphabet
Google is a search engine that we all use and is estimated to value more than half trillion dollars. Google indexes billions of website pages all over the world. It owns YouTube, and Android let alone other several companies. It has given birth to a holding company called Alphabet inc. A company that will own all other companies that are tied to Google, including Google itself.
Alphabet’s portfolio will grow through technology industries, life science, research and investment capital industries. Alphabet Inc. will have subsidiaries facilities like Google X, which is dedicated to developing technology industry to the next level. Its project are mainly dubbed as ‘moonshot’. Talk to things like contact lenses that measure glucose level and tears, self-driving car, google glass and adorable prototype territory and many more.
Calico is another subsidiary company that invests in science and technology.Fiber will is also part of Alphabet Inc. collection of companies. It focuses on giving a different kind of internet and TV. With Fiber connection and network, HD comes to its Glory. Although this network is available in major cities, we expect Alphabet to take it to the place of everybody convenience. Nest and Google venture are other that will be part of all these collection. Android, YouTube will, however, remain part of Google.
Who Will Run Alphabet?
Google Co-founder Larry Page will serve as a CEO of Alphabet Inc, while Sergey Brin will serve as president. Sundar Pichai will now be Google CEO. But why the change? Page wrote in one of the Blog ” ….We believe this (change) allows us more management scale as we run things independently,(Things) that aren’t related. …. It’s all about business prospering through strong leaders(hip) and independence”.
According to Page posts, Alphabet Will be reporting Google earnings separately from other companies. Eventually, Alphabet will replace Google in all trading markets like Nasdaq Stock Exchange, and all Google shares will convert to Alphabet shares.
So this is a kind of reorganization model that they are using to improve the transparency of what ever they are doing hence allowing greater control of unrelated companies. For example, By separating Google X from Google internet operations, Google can show investors that it remains profitable, even if Google X fails to give reasonable returns.
Why The name ‘Alphabet’?
In one of his posts, Page says ” We like the name… because it means a collection of letters that represents language” Language is ” one of Humanity’s most important innovations, and is the core of how we index google search!”. It’s all about making Google a cleaner and more accountable company.
This is how we can summarize the whole restructuring process- One company as the owner, the other as a subsidiary. Then reverse switch step. I.e., Dummy subsidiary of Alphabet created, then Google merges with the subsidiary converting all Google stocks to Alphabet’s.
So Alphabet will include: – a small company called Google handling the company’s core businesses like search, ads, app, Maps, YouTube, and Android. -Other companies like Calico, Nest, Google X, Google venture and capital.
For any business to grow, it requires strategy and a clear vision
The vision of the business it what compels it to thrive despite the environmental challenges. Growing a small business into a franchise business is a matter of determination and hard work. Small-scale entrepreneurs are faced with some risks and myriad of challenges that can turn the business if not solved earlier. Starting small is a difficult and daunting task to most entrepreneurs. However, the following are 5 tips for growing a small business into a big business and are there to help entrepreneurs to move from small scale to large scale merchandise.
- Have vision As earlier stated, vision is the driving force for every kind of business. The vision is therefore what keeps the business on track on the right path. Vision involves the set targets of the business, the objectives and the goals. It is therefore what the business aims to achieve either in the short run or the long run. With a clearly stated and well-defined vision, the business can pursue its goals with the motive of achieving them.
- Keep focus Focus is what helps small businesses grow. Having a well laid down strategies for the business is what keeps the business in focus. Small business should, therefore, focus on one thing at a time because, the capacity of the business do not allow a lot of diversification due to the small capital. Also, keeping focus is not allowing the external factors to dictate the business. The external factors come to distract the operations of the business.
- Delegate Delegation is the cornerstone for success in small scale businesses. It allows other people with different skills and expertise have input into the business. As part of the small-scale business, different talents combined will result in greater performance, and the small scale business is likely to grow at a faster rate. Therefore, delegation allows the business to tap into the potentials of others with different expertise and skills.
- Take Calculated Risks Many small-scale businesses start off with great expectations. With the same expectations for success and growth, a business should be able to identify the risks and ways of overcoming them for the business to survive. For small scale businesses to rise to the large-scale share, the business should invest in strategic planning for it to counter the negatives that may serve to bring the business down. That is, the business ought to take calculated risks, and this will enhance its performance.
- Think Big For a small scale business to grow into a large scale business, it should have a great vision of what it wants to achieve. Bigger visions or goals will enable the business to grow to its targets. Therefore, a small scale business should accommodate big targets and goals. Thinking big is also a strategy and not a goal by itself. In connection to this, small businesses with bigger targets and goals have got the internal drive to success since they do not become contented with their current status. Therefore, small-scale business success comes from big targets and goals.
Donald Trump For President? What Happens to The Trump Organization?
The Republican front runner Donald Trump has sure made headlines with his bid for the Presidency come 2016. Though he comes out as somewhat of a larger-than-life bravado as he has been described by many, no one can surely discredit his ambitions for the Oval Office. But how will that impact his organization? He has already lost a few contracts, but up to this point they have been easily shrugged off. Will those same companies that cancelled their business dealings with The Trump Organization end ruing their decision if he claims the White House?
Despite all the odds that he faces, he seems to be the front runner candidate for the Republican slot. No opponent in the Republican side can manage to beat Trump as it seems so far. He is clearly ahead of his candidates and he has proved his prowess in the few debates that have been held including the most recent one where he thrashed his opponents. No one can dispel the fact that he may have safely secured the Republican ticket, but as far as the Presidency is concerned, Trump still has far to go to make it to the White House.
All these ambitions for The Presidency notwithstanding, all of Trump’s utterances are sure to affect his business organization. His empire is really big and no one can argue with that. A few of his clients are bound to walk away because of what he has been saying over this campaign period. His campaign is sure bound to affect The Trump Organization, but it stands to be seen whether this will be a boon for the organization or a set-back.
Trump, really needs to reevaluate his strategy, as the Iowa caucuses are a few months away and these really determine a lot in the race. But all in all, Trump is a very strong candidate that can’t just be shrugged off. His
success story as well as his views really matter a lot and these are the key to his success as far as the Primaries are concerned. Anyway we have to wait to see how this plays out; meanwhile all we can wish Mr. Trump is the best in his quest for the White House and remind him that he really needs to make sure that he gets votes from all the Americans.
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