Options to Raise Capital for Startup Business

Why Capital is Required to Entrepreneurs? Business are primarily done for the sake to earn profit and secondly to satisfy the demand other customer, both the objective are reciprocal of each other because of the business does not fulfill the demands of the customer then it could never be able to earn profits and if it could be able to fulfill the demands of the customers then sometime positively the entrepreneur has to raise the capital in the business to med the market ends by fulfilling the demands and supplied of the market to balance the business activities but it is more difficult for the entrepreneur to raise capital at the eleventh hour, therefore, he has to evaluate the business position in all the respect and as well as the market conditions. At Increasing the Volume of Sale and Production:  When the sales and the production demands rise from the Continue reading

Analysis of Resource Based View of Strategy

The relationship between firm’s resources and performance are always the crucial area of interest in strategic management. Resource based view (RBV) highlights the internal environment of the firm in crafting strategy to accomplish a sustainable competitive advantage in it.  Resource in RBV can be defined in an extremely broad way. Concepts like dynamic capabilities, entrepreneurship and management are usually regarded as strategic resources. Similarly, RBV also has been defined as stocks of available factors that are owned and controlled by the firm, these factors can be classified into physical, reputational, organizational, financial, human intellectual and technological, which are transformed into final products or services efficiently and effectively. Resource Based View can be treat as the ‘best’ strategy route in the development of a firm strategy, because RBV analyze and explain resources of the firms to grasp how organizations accomplish sustainable competitive advantage. In addition, Resource Based View centralize on the Continue reading

Structural Design of Multinational Enterprises(MNEs)

Organizational structure gives the framework or lines of communication, authority, responsibility and accountability. Organizational structure specifies the firm’s reporting relationships, procedures, controls and authority and decision processes. It is a critical component of effective strategy implementation process. Organizational structure provides for specialization and interfaces among specializations for collaborative synergism and competitive dynamism. For Multinational Enterprises(MNEs) deciding the organization structure is very important because it cannot be the same for all units and at the same time cannot be just one design for all. Whatever the design, it must be organic enough to adapt to situations. The structure must have stability to facilitate day to day activities to go on consistently and flexibility to facilitate taking advantage of opportunities that environment throws up. While it is becoming true that form must follow function, there are some traditional/ classical organizational structures that are followed; besides new structures are experimented with.  Multinational Enterprises(MNEs) Continue reading

Human Resource Management (HRM) Best Practices

In recent years business environment  has become highly competitive. It has forced the manager to develop different strategies to cope with competitiveness. These strategies help organizations to survive in competitive environment. One area that has been important as a means of providing a competitive advantage is the management of the Human Resource function. Over the past decade there has been a dramatic shift in the field of Human Resource Management, with great emphasis being applied to the human resource management function and its significant contribution to organisational performance. However in order to influence organisational performance it is required that there are certain ‘practices’ of human resource management that must be abided by in order for improved performance to be achieved. Unfortunately there has been no authoritative definition of best practice that has been agreed by academics or practitioners. This leads to a lack of conceptual clarity of the HRM best Continue reading

Capital Account Convertibility and India

According to the Tarapore Committee provided a succinct and subtle definition: Capital Account Convertibility refers to the freedom to convert local financial assets into foreign financial assets and vice versa at market determined rates of exchange. It is associated with changes of ownership in foreign/domestic financial assets and liabilities and embodies the creation and liquidation of claims on, or by, the rest of the world. IMF’s Role in Capital Account Convertibility Convertibility is an IMF clause that all the member countries must adhere to in order to work towards the common goals of the organization. However CONVERTIBILITY per se can be looked into from various perspectives and incorporated accordingly by the member nations. An economy can choose to be (a) partially convertible on CURRENT ACCOUNT (b) partially convertible on CAPITAL ACCOUNT (c) fully convertible on current account and (d) fully convertible on capital account. It is important to state here Continue reading

Understanding the Financial Swaps Market

Exchange rate instability and the collapse of the Bretton Woods System and particularly the control over the movement of the capital internationally, paved the way for the origin of the financial swaps market. To day swaps are at the center of the global financial revolution. The growth is such that sometimes it looks like unbelievable but it is true. Though its growth will continue or not is doubtful. Already the shaking has started. In the “plain vanilla” dollar sector, the profits for brokers and market makers, after costs and allocation of risk capital, are measured in fewer than five basis points. This is before the regulators catch up and force disclosure and capital haircuts. At these spreads, the more highly paid must move on to currency swaps, tax-driven deals, tailored structures and schlock swaps. The fact which is certain is that, although the excitement may diminish, swaps will stay. Already, Continue reading