Some parents are spending more than AED60,000 (US$17,000) per year for children as young as three years old, while a year’s tuition at universities such as Cambridge and Oxford are less than AED55,000.
If young parents can work from home, then why can’t kids study from home?
Monday, June 25, 2018
Will the Markhor save PIA ?
The Markhor on the tail of PIA aircrafts is welcomed. Markhor is the national animal of Pakistan and we know it is a fighter and does not lose heart in hard times.
Inbox flooded with 'privacy policy' or GDPR emails
The General Data Protection Regulation (GDPR) is a law passed in the EU sets tougher rules about what companies can do with your data and gives individuals more control over their personal data.
Malaysia's Mahathir wins shock election victory, toppling long-ruling regime
Malaysia’s veteran ex-leader Mahathir Mohamed, 92, won a historic election victory Thursday, in a political earthquake that toppled the country’s scandal-plagued premier and ousted a regime that had ruled for over six decades.
Wednesday, June 20, 2018
Renting vs buying a one bedroom apartment in Dubai
Wondering whether to rent or buy an apartment in Dubai? We simplify the comparison and analyze the cost of renting vs buying a one bedroom apartment in Dubai. Do watch this video and subscribe the channel for more videos in future.
Tuesday, June 19, 2018
Top Company Mission Statements
A mission statement is a formal short written statement of the purpose of a company. It should guide the actions of the organization, provide a sense of direction and guide decision-making. The list presents the most inspiring mission statements of the top companies.
‘’It’s our goal to be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online.’’
Amazon started off selling books in 1995 and now prides itself on offering the ‘Earth’s biggest selection'.
‘’To be the ultimate house of luxury, defining a style and creating desire, now and forever.’’
Chanel’s objectives seek to maintain its legacy while successfully moving it to the future and continuing to be at the forefront of fashion.
‘’To be global energy company most admired for its people, partnership, diversity and high performance.’’
Chevron lists its values as integrity, ingenuity, trust, protecting people and the environment, partnership and high performance.
‘’To refresh the world in mind, body, and spirit. To inspire the moments of optimism and happiness through our brands and actions. To create value and make a difference.’’
The Coca-Cola company's values are leadership, collaboration, integrity, accountability, passion, diversity, and quality.
‘’Provide a global trading platform where practically anyone can trade practically anything.’’
On its launch, eBay had 5 key values, including the belief that people are basically good and everyone has something to contribute.
‘’Facebook’s mission is to give people the power to share and make the world more open and connected.’’
The social media giant’s values are a focus on impact, move fast, be bold and build social value.
‘’We go further to make our cars better, our employees happier and our planet a better place to be.’’
Ford goes on to say that it’s dedicated to building great products to strengthen business and benefit communities.
‘’Google’s mission is to organize the world’s information and make it universally accessible and useful.’’
Those at Google wrote a ‘10 things list’ early into the website’s life which features key values such as ‘focus on the user and all else will follow’ and ‘you can make money without doing evil'.
‘’At IKEA our vision is to create a better everyday life for the many people.’’
The Swedish furniture retailer believes the low prices they sell their extensive product range to help them achieve their vision and allows most people to afford them.’’
‘’Delight our customers, employees and shareholders by relentlessly delivering the platform and technology advancements that became essential to the way we work and live.’’
Intel provides its employees with objectives which outline what Intel should do to continue to be ‘essential’, these include ‘excel in customer orientation’ and ‘deliver unrivaled microprocessors and platforms’.
‘’Spreading the power of optimism. Life is not perfect. Life is not easy. Life is good.’’
Life is Good aims to spread optimism through its 10 ‘superpowers’: gratitude, creativity, authenticity, love, courage, compassion, humor, fun, simplicity and openness.
‘’McDonald’s brand mission is to be our customer’s favorite place and way to eat and drink.’’
McDonald’s aims to provide exceptional customer experiences by focusing on – people, products, price, and promotion.
‘’Our mission is to enable people and businesses throughout the world to realize their full potential. We consider our mission statement a commitment to our customers. We deliver on that commitment by striving to create technology that is accessible to everyone – of all ages and abilities. ‘’
Microsoft’s core values are integrity and honesty, big challenges, accountability and self-criticism.
‘’The TAGFEE code” our mission to be as Transparent, Authentic, Generous, Fun, Empathetic, and Exceptional as possible.’’
MOZ understands that they’re responsible for their own reputation, success, brand image, and contributions they make to the marketing industry, and as such apply the TAGFEE code to all areas of the business.
‘’To bring inspiration and innovation to every athlete in the world. If you have a body, you are an athlete.’’
Nike follows ’11 Maxims’ which describe and shape its culture and include: the consumer decides, evolve immediately and do the right thing.
‘’Offer the customer the best possible service, selection, quality, and value’’
Nordstrom says that in-store or online, wherever new opportunities arise, they work relentlessly to give customers the most compelling shopping experience possible.
‘’To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.’’
Starbucks has 4 key values, including ‘creating a culture of warmth and belonging, where everyone is welcome'. Other values focus on dignity and respect and challenging the status quo.
‘’Toyota will lead the way to the future of mobility, enriching lives around the world with the safest and most responsible ways of moving people.’’
Toyota uses a tree to symbolize their vision from ‘roots to fruits’, seeing that tree as a symbol of natural strength that continues to flourish and grow.
‘’To give everyone the power to create and share ideas and information instantly, without barriers.’’
VP of HR Brian Schipper says the company’s purpose is to ‘give everyone the ability to be heard, seen, and share their thoughts and experiences as they happen'.
‘’Our mission statement is simple, yet the foundation of everything we do here at Virgin Atlantic Airways… to embrace the human spirit and let it fly.’’
The airline says to make a success of their business strategy they focus on the business and leisure markets, and driving efficiency and effectiveness.
Sources:
Unum, Simple Marketing, Entrepreneur, Moz, Fortune, Hubspot.
Tuesday, February 14, 2017
VAT in the UAE - Impact on the SMEs
UAE resident alert: 5% VAT is officially coming by Jan 1, 2018, reads a headline in Khaleej Times (12 Feb 2018)
VAT is added on each layer of supply chain and is ultimately reflected in the final price. For example a 5% VAT on a good of cost AED 100 will cost the buyer AED 105, the seller will collect AED 5 and deposit with the government in their tax filings. Hence, businesses will have to become the tax collection arm for the government.
Impact of VAT on businesses
Profitability
VAT is borne by the end user, hence the gross profit of a business remains the same. The impact is shifted to the final customer of a good or service.
Prior to VAT, for example, a mobile retailer buys a mobile from the wholesaler for AED 100 and sells for AED 110, making a gross profit of 10% on the sale.
After VAT is introduced, the same mobile will cost the retailer AED 105 (input tax) and sell for AED 115.5 collecting AED 5.5 (output tax) from the end-customer. The difference between output and input tax AED 0.5 is the tax income for the government.
The above example is applicable to businesses who will register for tax filings. For unregistered companies, VAT will be paid on purchases, but no output tax will be collected, hence tax expense will become part of the cost of sales and this will affect the gross profits.
In summary, registered companies will not take a hit on their gross profits but unregistered companies will.
VAT will potentially increase the operating and admin expenses for the SMEs affecting their net profit margins. Cost of collecting taxes and compliance costs will add to the admin expenses. However, if these processes are electronic (quite possible) and training is made available, these costs can be kept on the lower side.
Pricing Strategies
A lot of the businesses who face intense competition and a 5% increase in their prices will affect the demand for their goods and services may decide to further lower the prices to remain competitive post-VAT. However, it can be argued that a VAT of as low as 5% may not have a significant impact on demand for certain consumer goods.
Liquidity
VAT will definitely affect the working capital of the SMEs. The timing difference between output and input tax will affect the liquidity of businesses. Businesses with poor credit control will be affected the most.
For businesses paying suppliers upfront and offering credit to customers should plan in advance on how to manage cash flows. On the contrary, businesses buying on credit and selling on cash basis will benefit.
ERP & Process flows
Businesses will have to bear costs in improving their financial reporting systems and hire/outsource accounting needs of the business.
Wages and Salaries
In the current economic conditions, payroll seems to be least affected as the labor supply exceeds demand for manpower.
Conclusively, VAT will create opportunities for government to switch to non-Oil sources of income. In the short run, jobs will be created in finance departments and a lot of audit and consultancy firms will start providing tax services to their existing clientele.
Information Available so far:
Rate: 5%
Implementation date: 1 Jan 2018
Minimum Turnover: AED 3.75 million per annum
Frequency of filing: Quarterly (3 months)
Registration opens: last quarter of 2017
Will tourists pay VAT: Yes
Businesses can only benefit out of VAT, by preparing towards it!
VAT is added on each layer of supply chain and is ultimately reflected in the final price. For example a 5% VAT on a good of cost AED 100 will cost the buyer AED 105, the seller will collect AED 5 and deposit with the government in their tax filings. Hence, businesses will have to become the tax collection arm for the government.
Impact of VAT on businesses
Profitability
VAT is borne by the end user, hence the gross profit of a business remains the same. The impact is shifted to the final customer of a good or service.
Prior to VAT, for example, a mobile retailer buys a mobile from the wholesaler for AED 100 and sells for AED 110, making a gross profit of 10% on the sale.
After VAT is introduced, the same mobile will cost the retailer AED 105 (input tax) and sell for AED 115.5 collecting AED 5.5 (output tax) from the end-customer. The difference between output and input tax AED 0.5 is the tax income for the government.
 |
| Source: Ministry of Finance, Government of Dubai website |
In summary, registered companies will not take a hit on their gross profits but unregistered companies will.
VAT will potentially increase the operating and admin expenses for the SMEs affecting their net profit margins. Cost of collecting taxes and compliance costs will add to the admin expenses. However, if these processes are electronic (quite possible) and training is made available, these costs can be kept on the lower side.
Pricing Strategies
A lot of the businesses who face intense competition and a 5% increase in their prices will affect the demand for their goods and services may decide to further lower the prices to remain competitive post-VAT. However, it can be argued that a VAT of as low as 5% may not have a significant impact on demand for certain consumer goods.
Liquidity
VAT will definitely affect the working capital of the SMEs. The timing difference between output and input tax will affect the liquidity of businesses. Businesses with poor credit control will be affected the most.
For businesses paying suppliers upfront and offering credit to customers should plan in advance on how to manage cash flows. On the contrary, businesses buying on credit and selling on cash basis will benefit.
ERP & Process flows
Businesses will have to bear costs in improving their financial reporting systems and hire/outsource accounting needs of the business.
Wages and Salaries
In the current economic conditions, payroll seems to be least affected as the labor supply exceeds demand for manpower.
Conclusively, VAT will create opportunities for government to switch to non-Oil sources of income. In the short run, jobs will be created in finance departments and a lot of audit and consultancy firms will start providing tax services to their existing clientele.
Information Available so far:
Rate: 5%
Implementation date: 1 Jan 2018
Minimum Turnover: AED 3.75 million per annum
Frequency of filing: Quarterly (3 months)
Registration opens: last quarter of 2017
Will tourists pay VAT: Yes
Businesses can only benefit out of VAT, by preparing towards it!
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