Global investment banks  typically have several business units, each looking after one of the functions of investment banks.  For example, Corporate Finance, concerned with advising on the finances of corporations, including mergers, acquisitions and divestitures; Research, concerned with investigating, valuing, and making recommendations to clients – both individual investors and larger entities such as  hedge funds and mutual funds regarding  shares and corporate and government  bonds; and Sales and Trading, concerned with buying and selling shares both on behalf of the bank’s clients and also for the bank itself. For Investment banks management of the bank’s own capital, or Proprietary Trading, is often one of the biggest sources of profit. For example, the banks may arbitrage stock on a large scale if they see a suitable profit opportunity or they may structure their books so that they profit from a fall in bond price or yields. In short the principal Continue reading
International Business
International Business Management deals with the maintenance and development of a multinational operation across national borders, whose manager has the knowledge and the skills to manage and handle cross-cultural processes, stakeholders and business environments in a right way.
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. In recent years some investment banking firms have diversified or merged with other financial institutions to become full service financial firms. Difference between Investment Banks and Commercial Banks Investment banks have often been thought to be as Commercial banks, and rightly so. However, both the terms have different connotations Continue reading
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. Therefore, DELL must be aware of the benefits they wish to realize, how it will be realized and ensure only investments of appropriate amounts of resources to obtain benefits. DELL relies on reputation in the US market of award-winning service and a high-quality Continue reading
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. The fruits of all economic activities are rested on the betterment of conditions of living of human being. The human resources are playing a vital role in attaining economic development of country. The economic development of country involves proper utilization of its physical resources Continue reading
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: The “Community” that is made up of all the human begins that inhabit it and all their social organizations of all kinds The “Culture” that is made up of all the constructs of the human mind that affect the behaviour of all these individuals and organizations The “Habitat” that includes all the physical features of this environment 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. Operationally, however, there are two main types of business environment: corporate environment Continue reading
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. A business, which continually remains passive to the relevant changes in the environment, is destined to gradually fade-away in oblivion. To be successful business has  not only recognize different elements of the environment but also respect, adapt to or have to manage and influence them. The Continue reading