Culture of a Company
The culture of a Company starts from how its employees are committed to their company's values and ethics. For example, are the employees willing to put extra effort to fulfill their client's last-day requirements? Is the company keeping its employees happy, from even small measures like maintaining a good cafeteria? Is the company giving its employees enough holidays or after the project outdoor get-together? The most important of all is whether a company working in a specific area is keeping the employees most fit for the job. For example, whether a pharmaceutical company satisfies its scientists' interests like having a library or subscription to journals they love. Also whether there are enough cultural programs conducted in a software company, which is aligned to the culture of the company. Are there enough hackathons conducted in a software company and so on.
Employee's Morale and Credibility
Is a company having employees who are well-to-do and able. For Example. Is a company having a good proportion of its employees who are credible having educated from credible institutions like IITs in India or Ivy League, for large-cap companies? A good educational institute is enough for small-cap companies. Is the employees' morale high? This means are they confident that the organization they are working for has a good future? Are they proud to work for that organization? Is the attrition rate very low in a company? Do the employees believe they are fairly compensated? Are they willing to recommend their friends and colleagues to work in their company?
Founder's Honesty and Education Background
Does the Founder have a record of keeping his words in his business? Check what the clients of his company tell about him. Are they satisfied with his work? Is he telling the real truth about his company? It is recommended to check a founder about his educational background. It is an added advantage for his credibility. Though people do good business without great educational backgrounds from Ivy League Education Backgrounds. But do remember that it is a fashion to describe that you don't need to study in Ivy Leagues to succeed in life. But more often those who study in the Ivy League have more chances of succeeding in life than those who do not.
Company's Commitment and record in meeting its client's needs
This metric is the most important one in a business. If a Company does not meet the standards or timelines set by its clients, there is no business at all. Always check with the clients of a business or the customers and dealers of the business. Is the Company fulfilling its commitment to its business? Are the clients happy with its work? Are the customers delighted by its products? It does not matter whether it is a small company or a large corporation, we have to check only whether its customers and clients are satisfied or not. Is the Company committed with full involvement to provide the best products and services to their customers and clients?
Client Satisfaction and repeated deals they make
How do we know whether a client is satisfied with a company's services? By looking at the repeated deals they make with the company. Are its dealers and clients repeatedly doing business with the company? Are its customers repeatedly buying its products? Customer and client retention is the best metric to calculate the satisfaction of its clients.
Number of IPs produced by a company proportionate to its size
Intellectual Property is a good measure to find how innovative a company is. But most IPs are not of good quality. We have to check only the good quality IP produced by a company. How do we know that? We have to check the journals in which it is published and how many of it is used in its company. Putting the IPs to use in its own organization is a good measure of the quality of an IP. Based on whether an organization is small or big, we have to calculate the proportionate number of IPs, put to use in its own company.
Venture Capitalist's Credibility for Start-ups
The credibility of a start-up can be easily calculated by finding who is the VC, putting money in the company. Even Founders who don't have a great educational background in the Ivy Leagues can be weighed by the Venture Capitalist who is ready to put money in his Company. Founders have to give a good pitch to lure good VC firms. That itself gives them good credibility to begin with.
Company Credibility Score
By calculating all these measurements, We can find a Company Credibility Score. The Company Credibility Score should have categories like Small-Cap, Mid-Cap, and Blue Chip Companies. We have to give them scores only by comparing them with its equivalent competing companies. A small cap can not compete with a Blue Chip Company. Categorize as much as possible and give a Company Credibility Score to all stocks that trade in Stock Markets. These should be done for a fee to be paid to the Consulting Firm like McKinsey & Company and Goldman Sachs. I can write more measures and go into further details. But like all the Consulting Firms, I should also be paid. He he.
Advantage of Company Credibility Score
We can measure a company by usual metrics. But it is not enough to find whether a company will be successful or not. We need these basic measurements outlined above to find whether a company is really credible or will surely give you good returns. Also, it will be very easy for a stock buyer to choose a company by knowing only the Company Credibility score, without getting into the details. Good Companies will get enough capital from these investors and flourish, making the economy to boom further and further.
Stock Rating
There should only be 3 ratings, A, B, and C. But it should be categorized. Categorize all the Stocks available in the Stock Market to different sectors like Coal companies, Steel companies, and so on, as much as possible, including small Cap, Mid cap and Large Cap, so that everyone buys all the stocks.
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