Concept of Investment Banking

Investment banks are essentially financial intermediaries, who primarily help businesses and governments with raising capital, corporate mergers and acquisitions, and securities trade. In USA such banks are the most important participants in the direct market by bringing financial claims for sale. They help interested parties in raising capital, whether debt or equity in the primary market to finance capital expenditure.

Once the securities are sold, investment bankers make secondary markets for the securities as brokers and dealers. In 1990, there were 2500 investment banking firms in USA doing underwriting business. About 100 firms are so large that they dominate the industry.… Read the rest

Case Study: Critical Success Factors of Dell

DELL’s direct-to-customer business model is the key to the company’s dramatic growth and success and has focused on selling directly to customers. This helps eliminate the middleman and offers customers more powerful configured systems than most competitors. The direct model enables DELL to develop a thorough understanding of customer expectations, which strengthens customer relationships and increases customer satisfaction and loyalty. One of the characteristics that distinguishes DELL from its other competitors is that DELL provides the mode to custom the computers of the customers’ choice and taste and deliver the system to the customer as it is the most crucial and critical success factor behind DELL Computers.… Read the rest

The Importance of Population Trends in Business

The population of a country and its economic growth is closely interlinked with the attainment of economic development; a country must consider its human resources both from the angle of assets and liabilities. That proper utilization of natural endowments and the level of production of national wealth depend very much on the extent and efficiency of human resources, but too much of population will again eat up all the fruits of developments.

From the point of view of economic welfare it is quite essential to study human resources in detail at the same time it should be stressed human beings are the vital instruments of production.… Read the rest

Business Environment Scanning

The Concept of the Environment

Philosophically, the environment of a corporation includes all those realities whose existence may effect the corporation directly in any perceptible way. These realities may be sorted out in the following four categories:

  1. The “Community” that is made up of all the human begins that inhabit it and all their social organizations of all kinds
  2. The “Culture” that is made up of all the constructs of the human mind that affect the behaviour of all these individuals and organizations
  3. The “Habitat” that includes all the physical features of this environment
  4. The “Product” that includes all things made and services rendered by man

Applying the prevailing culture and using and consuming natural features of the habitat and the product of past periods, the entries of the community have an existence and generate goods and services.… Read the rest

Business Environment Concept – Meaning, Definition, Features and Importance

All living creatures including human beings live within an environment. Apart from the natural environment, environment of humans include family, friends peers and neighbors. It also includes man-made structures such as buildings, furniture, roads and other physical infrastructure. The individuals do not live in a vacuum. They continuously interact with their environment to live their lives.

Just like human beings, business also does not function in an isolated vacuum. Businesses function within a whole gambit of relevant environment and have to negotiate their way through it. The extent to which the business thrives depends on the manner in which it interacts with its environment.… Read the rest

The Concept of Co-Sourcing

New methods of outsourcing are today redefining the way of working. Co-sourcing  is a situation of partial  outsourcing, in which a business function or process is performed by both internal staff and by an external party or external resources, such as consultants or outsourcing vendors, with specialized knowledge of the business function.  Compared to full outsourcing, for the traditional owner of the processes, co-sourcing has advantages of staying in control, a non-transactional partnership and the ability to grow the own knowledge level of the co-sourced process.

One such way is co-sourcing which is an investment relationship marked by shared objectives, shared risks and shared rewards between two companies, one of which is a service provider.… Read the rest