Tag Archives: #France

The customer king dictatorship, myth or reality in the age of globalization.

The customer king dictatorship, myth or reality in the age of globalization.

 

The customer king. Everyone knows this adage! Its fame precedes it, to the point that it is like a golden rule for any good business. This simple sentence summarizes the implication it would take to retain consumers.

If we look at it from the point of view of the user, this adage the customer king suffers from numerous shortcomings, especially when the market is dominated by a few suppliers who find themselves in a situation of virtual monopoly. Who has not found himself in an ubiquitous situation when he must try to explain his problem to a telecommunications operator, a household water supply company or any other company which employs thousands of employees and whose rules are dictated by reporting and hunting down the costs of management controllers?

Is the customer king when after having renewed several times his call to a digital switchboard which indicates to us in a synthetic voice that the waiting time is more than 10 minutes and that it is necessary to think of renewing his call , then which forces us to dial different numbers on the keypad of our phone and that after endless waiting to the sound of heady music going on in loop we arrive at the station of an operator who very often is at halfway around the world and we are at the end of 5 minutes of conversation in front of the following answer “I could not solve your problem but I am not allowed to stay longer with you online. ” That speaks for itself. To believe that for these large companies the customer is no longer the king but is a simple adjustment variable in the operating account.

On the other hand, and in spite of their gigantism it seems that the GAFA are much better organized to put the customer king at the centre of their concerns.

At the other end of the scale, the small craftsman and the small business are subject to the dictatorship of their king customers because they do not have an administrative organization which would allow them to put objectivity in their approach to the customer.

For medium-sized companies, the concept of customer king may be a dictatorship with unexpected consequences. For many years, business leaders have gotten into the habit of giving precedence to the salesperson, placing less importance on administration, management control and profitability. It would also be relevant to talk about the turnover dictatorship. The entire decision-making chain (bank, manager, shareholders) has priority on eyes on turnover and profit. Few medium-sized organizations, especially in export services, will analyse the difference between the customer king and profitable turnover.

When you deal with client risk management, when you are a credit manager, you see the abuse of the customer king system every day. Such customers have always paid their invoices more than 6 months late. However, it still pays. This client will continue to use and abuse the system the customer is king. He will not be blocked; his goods will be delivered to him. Nobody will take the time to analyse the costs generated by this type of behaviour because they are not always apparent. For example, the man time necessary to follow up on these problem customers, the consequences on the cash flow of the incessant postponements, the additional costs such as the financing of the VAT for 6 months instead of 30 days etc.

It is of course necessary to put the customer at the centre of his project but the one who is profitable and the specialist in all kinds of abuse is certainly not profitable.

The customer king’s dictatorship is similar to that of the short term. In the business world, time is of the essence. Many entrepreneurs would be amazed at how quickly a little more rigor in customer management would improve the operating account.

It is not possible to let accountants and financiers decide the fate of clients on their own. We need a real credit manager who will arbitrate between the interests of the commercial and those of the administrative.

But this credit manager must have real decision-making power so that the customer king client, which is a concept to be nurtured, does not turn into a dictatorship.

In France, the number of companies having been the subject of a bankruptcy procedure decreased

lower banruptcies rate

decrease of bankruptcies in France

In France, the number of companies having been the subject of a bankruptcy procedure decreased by 4.8% last year compared to 2018. There were 52,000 failures in 2019. These are 2,500 companies less than in 2018 who went to bankruptcy or were placed in receivership or safeguard proceedings. In the fourth quarter of 2019 alone, the decline even accelerated.  The improvement is visible in almost all trades. The number of liquidations has dropped significantly. In construction, trade, industry, business and personal services, and catering, bankruptcy is declining sharply. Road freight transport and IT and communications are sectors which experienced an increase in bankruptcy last year. One of the explanations for this good overall performance in 2019 is that household consumption held up even if it was not as dynamic as we might have expected. The domestic economic context is rather better than that of our neighbours. Job creation is still strong in 2019, which also contributed to good economic activity. Second, interest rates are still very low, which helps companies finance themselves at lower cost. After the crisis of “yellow vests”, the State was able to support companies in difficulty.  Small businesses have held up well last year if they haven’t fallen, that doesn’t mean they are doing well. Many suffer. The treasuries continue to be strained. Another fact that puts the drop in corporate bankruptcy a bit into perspective last year, many SMEs and even a few mid-size companies have experienced difficulties. Almost 350 SMEs with more than 50 employees went to bankruptcy in 2019, almost one per day. In the last three months of the year, 100 failed. The difficulties of SMEs are concentrated in the manufacturing industry. Some face forced transformation issues linked to sustainable development, in the automobile for example. As a result of the bankruptcy of SMEs, the number of jobs threatened by bankruptcy increased slightly in 2019, by 1.6%, to 175,000. How will the coming year go? Growth is expected by economists to a level comparable to that of 2019, that is to say from 1.2% to 1.3%. For 2020, there is no fear of a sharp increase in the number of bankruptcy but it seems unlikely that we will fall below the threshold of 52,000 collective proceedings. We could be around 53,000 failures for the year 2020.

 

Hedge Fund the rise of one whom nothing predestined to become the best manager of history.

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Hedge Fund the rise of one whom nothing predestined to become the best manager of history “The man who solved the riddle of the markets” Wall Street Journal’s Greg Zuckerman’s book is the book that everyone is talking about on Wall Street. He portrays the rise of one whom nothing predestined to become the best manager of history. The mathematician Jim Simons, whose fortune exceeds 23 billion dollars, is at the origin of a UFO: the Medallion fund. Since 1988, this quantitative hedge fund has recorded an average annual gain of 66.1%, reduced to 39% after deducting its commissions. Over 20 years (1985-2004), George Soros’ hedge fund (Quantum fund) had an average annual return of 20.2%. Prize of excellence Aware of its value, the Medallion Hedge Fund has taken the highest rates in the industry, 5% of assets and 44% of profits generated through its performance. Hedge Fund typically take between 1.5% and 2% of assets and 20% of profits. Given its success, this Hedge Fund no longer accepted money from investors since 1993. In 2005, it was reserved exclusively for employees of the Hedge Fund. For Simons, this fund was to remain relatively small, less than $ 10 billion, to continue to perform well. The founder is aware of the law of diminishing returns in the financial world: the more the capital is important, the more a manager is struggling to remain as efficient.

Inconceivable In an interview with “Institutional Investor” in November 2000, the founder of Renaissance said: “Today we manage $ 4 billion, perhaps $ 7 to $ 8 billion in the future. But 70 billion, never! It is inconceivable. I am 62 years old and in the next three years I would like to pass the torch. Today the Hedge Fund manages $ 110 billion, and Jim Simons retired in 2010 while remaining involved in his company, being non-executive chairman. The Medallion has been a fantastic Hedge Fund appeal and advertising product, which has launched other funds such as Renaissance equities. He managed the increase in his assets and the change in size of his fund. “Make money when I sleep” In 1978, Jim Simons left his position as professor of mathematics at Stony Brook University to found his first Limroy Hedge Fund. Like other traders of the time, he tries to anticipate the decisions of the Federal Reserve but without much success. Yet at the time, he consulted the opinion of an economist, Alan Greenspan, who would become the president of the Fed between 1986 and 2007. His poor results prompt him to seek a trading system without human interference. “I do not want to worry about markets every minute. I want models that make me earn money when I sleep. He then embarked on quantitative management in the futures markets, particularly commodities. It speculates on potatoes, oil or pig carcasses but again the yields are random. The Hedge Fund, Renaissance Technologies, which was born in 1982, decided to move up a gear and began to build systematic and rigorous quantitative management. “There are movements and configurations in the markets that are not ‘visible to the naked eye’ by traders, but Renaissance wanted to exploit these anomalies in a systematic and rigorous way,” says Greg Zuckerman. Grey matter The fund is progressively recruiting the best mathematicians, astrophysicists, linguists, artificial intelligence specialists and computer scientists. It ensures their loyalty by allowing them to invest their bonuses in the Medallion Hedge Fund, where the average investment of employees is now around $ 50 million. Those who leave the company are subject to very strict confidentiality agreements and a non-competition clause over a very long period. It is not possible that they go into another Hedge Fund to disclose the secrets of the company.

The “home culture” of Renaissance, the antithesis of that of Hedge Fund of the time, was in three words: humility, patience, work. No star manager took positions according to his “instinct”, a word banned internally. His traders had to follow the signals of mathematical models and never take personal initiative. In fact, very few Wall Street professionals have been recruited by Renaissance who prefers to hire IBM alumni. The Medallion fund also invested some of its money in about 40 Hedge Fund. It was a way to seize opportunities that he had not identified himself while benefiting from information feedback on the markets. Data gathering. To help it achieve good market forecasts, this Hedge Fund was one of the first to recognize the importance of having as much financial data as possible. He has collected very old and good course histories. Databases often contain errors that a statistics specialist was responsible for flushing out and correcting. The fund was collecting data that was not available to its competitors: one of the contributors regularly went to the New York Fed in Manhattan to manually collect prices on bonds that were not public. Anticipating the rise of “high frequency trading” (ultra-fast trading machines), the fund invests early in technology and computers at the forefront to increase the speed of its transactions and be the first to seize opportunities. The “gross” anomalies in the markets have long since disappeared and the fund must innovate to remain efficient. “The mathematics we use can be sophisticated,” he told Institutional Investors, “but we start from data analysis, we do not have preconceived notions.” “In our business, we want action, we appreciate a certain level of volatility. In 2008, the year of the financial crisis, the Medallion fund jumped by 80%.

 

General terms and conditions of sale between professionals in France mandatory information’s

General terms and conditions of sale between professionals in France mandatory information’s.

Obligation of companies

In France the basis of commercial negotiation between professionals, the General terms and conditions of sale must be communicated to buyers who request it. Which mentions should be included? How to communicate them? What sanctions in case of non-compliance with these obligations?

Between professionals (B2B), the General terms and conditions of sale must be communicated to buyers or service seekers who request it. In this case, they must respect specific rules both in terms of their drafting and their mode of communication.

This obligation to communicate the General terms and conditions of sale between does not apply if no customer requests it.

The mandatory mentions of the General terms and conditions of sale between professionals

When they are formalized, the General terms and conditions of sale between professionals must obligatorily include a number of mandatory information provided for in Article L.441-1 of the French Commercial Code. They must include:

  • Settlement terms (including terms relating to payment terms, penalties for late payment and recovery fees)
  • Any price reductions and discount conditions
  • The unit price scale.

Particular mentions

The General terms and conditions of sale may also include optional information such as the terms of termination of the contract, clauses relating to cases of force majeure (natural disaster for example), retention of title or limitation of liability of the seller.

The rules of communication of the General terms and conditions of sale between professionals

If no particular formalism is required by law, the general conditions of sale must be fixed in writing, by any means constituting a durable medium. Generally, the general conditions of sale are found on pre-contractual documents (advertising documents, etc.), contractual documents (purchase orders, contracts, etc.) and annexes (signs, posters affixed to points of sale, etc.). ).

It is possible to establish general conditions of sale differentiated according to the category of buyers of products or applicants for services. To define its categories of buyers, a distinction must be made between:

  • Wholesaler or trader (B2B) buyer
  • Supermarkets
  • Any specialized company
  • distance selling businesses.

The obligation to communicate the general conditions of sale applies only for professionals of the category concerned. The supplier can therefore write as many different terms and conditions as there are categories of buyers.

 

What sanctions in case of non-compliance with the general conditions of sale between professionals?

In the event of a breach of the drafting and communication requirements of the general conditions of sale, Article L.441-1 of the French Commercial Code provides for an administrative fine of up to:

  • € 15,000 for a natural person
  • 75 000 € for one personeiffel-tower-1156146__340

Companies start-ups in France

Companies start-ups in France

Companies start-ups in France. After weakening in July and then falling in August, start-ups rebounded in September. According to the French statistic office, their number rose by 4.2%. Over a year, they posted a jump of 16.6%. Microenterprises now account for more than 47% of all creations. Companies start-ups are on the rise in France. After a slump in the summer, largely due to the drop in the number of registrations of micro-entrepreneurs, they are indeed up again in September. According to data published by the statistic office on Tuesday, all categories combined, they rose 4.2% last month. A rebound that makes it possible for the first time to cross the threshold of 70,000 companies created in one month and close a mixed quarter with a slight increase in July and a drop in August. In detail, in September, 70,605 new companies were created. This increase is mainly due to the strong growth of micro-enterprise registrations (+ 6.8%, with 33,618 new listings) and, to a lesser extent, to the average business sector (+ 2%, with 36,987 new entities). 16% year-over-year increase Over twelve months and this time in raw data, the number of new companies has increased by 16.6%, a pace close to that recorded for several months. Here again, these creations are largely driven by micro-enterprises which, over one year, jump by 26% and now represent more than 47% of all new structures identified. At the same time, the number of new conventional sole proprietorships rose by 10.6% and that of companies by 8%. By sectors, the statistics highlights the “growth” of “support to businesses” which, with 27,900 creations over the last twelve months, shows an increase of 17.4%. However, this is not where creations of companies are the most dynamic. With an increase of 25% over twelve months, the industry is in the lead, followed by household services (up 21%) and real estate activities (+ 20%). Fragile dynamics Good health that many experts impute to the various measures voted to precisely promote the development of micro-enterprises. These measures include the doubling of turnover thresholds below which it is possible to benefit from a simplified tax and social system that is much lighter compared to the traditional system. The dynamic is however fragile. If the executive has agreed to give up the publication of the decree aimed at reducing social security exemptions for micro-entrepreneurs, it is still looking to save 600 million euros in 2022. And asked the professionals to present it economic proposals before the end of the vote on the finance bill this autumn.

Mandatory information on the invoice in France

Mandatory information on the invoice in France

Changes effective October 1, 2019 In France from 1 October 2019 two new mentions will have to appear on the invoice: • the billing address if it is different from the delivery address • the purchase order number if it has been previously issued by the buyer. The sanctions for breach of the invoicing rules are reinforced by the introduction of a fine henceforth of an administrative nature. These new provisions result from the order of 24 April 2019 recasting Title IV of Book IV of the Code of Commerce relating to transparency, restrictive practices of competition and other prohibited practices. Invoice: the mandatory information in France reminder of the mandatory information existing before 01st October 2019. The date of the invoice Date on which the invoice is issued. The invoice number Unique number for each invoice and based on a chronological and continuous sequence, without “hole”, an invoice that can not be deleted. The numbering can possibly be done in separate series (for example with a prefix per year), if the conditions of exercise justify it. Date of sale or service Date on which the delivery of goods or service is made (or completed). The identity of the seller or service provider Legal name (or name and surname for an individual entrepreneur), address of the registered office, billing address (if different), Siren number or Siret, NAF code, legal form and registered capital (for companies), RCS number and city the registration registry (for traders), number in the trade register and registration department (for craftsmen). The identity of the buyer or customer Legal name (or name for an individual), address of the customer (except opposition for an individual), billing address if different, delivery address. Purchase order number When previously established by the buyer. VAT identification number VAT identification number of the seller and the business customer (only the latter is liable for VAT). These mentions are not mandatory for invoices whose amount excluding taxes is less than or equal to 150 €. The designation and counting of products and services rendered • Nature, brand, product reference. Materials provided and labor for the services. • Specific name, quantity, unit price excluding taxes and VAT rate, discounts and other possible rebates. The catalog price Unit price excluding VAT of goods sold or hourly rate excluding VAT of the services provided. The legally applicable VAT rate Especially if different VAT rates apply, they must appear clearly by lines. Discount Rebate, rebate, discount on the date of sale or service, excluding discount transactions not included on the invoice. Total amount to be paid excluding tax (HT) and all taxes included (TTC) About the payment The date or deadline for payment, the invoice, the penalty rates in the event of non-payment on the payment date entered on the invoice and the amount of the lump sum indemnity for recovery costs in case of late payment (40 €) . Invoice: the particulars Other details must be entered on the invoice in the following special cases: • The seller or service provider is a member of a management center or an approved association Add the mention: “Member of an approved association, payment by check and credit card is accepted”. • The seller has a VAT exemption scheme Add the mention “VAT not applicable, art. 293 B of the General Tax Code “. • The subcontractor no longer declares VAT is the main company that declares it (reverse charge VAT) Mention “self-liquidation of VAT”. Indicate that this is a “tax-free amount”. • Craftsmen or micro-entrepreneurs engaged in a craft activity for which professional insurance is compulsory Mention of the insurance taken out under the activity