Participative Management – Workers Participation in Management

Human Resource Management

Case Study on Entrepreneurship: Larry Page

Business Analysis

The Boundaryless Career: Modern Contemperory Perspective on Career

Human Resource Management

How to Meet Costa Rica’s 2026 VASP Requirements Without Expanding Headcount

General Business Articles

Concepts of Throughput Accounting and Theory of Constraints

Financial Management

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

Abey Francis

Dumping Concept in Managerial Economics

The term Dumping means selling a firms product in foreign market at a price lower than in the home market.  Dumping is a form of price discrimination. Let us elaborate ‘dumping’ by considering the following illustrations : Suppose the producer is selling in two markets; viz, the home market and the world market.   In the home market he is saddled as a monopolist but in the world market there is perfect competition.   Let us therefore analyse the price-output policy of the producer under this peculiar situation.  Since there is perfect competition in the world market, the producer has to take the price which prevails in the world market.   This is represented by the horizontal average revenue curve ARw and the marginal revenue curve coincides with the average revenue curve.   Thus ARw = MRw.   However, in the home market he is a monopolist and therefore average Continue reading

Abey Francis

What is a Bill of Exchange? Definition and Features

According to section 5 of the Negotiable Instruments Act, 1881, defines Bill Of Exchange as “A bill of exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument.” A promise or order to pay is not “conditional”, within the meaning of this section and section 4, by reason of the time for payment of the amount or any installment thereof being expressed to be on the lapse of certain period after the occurrence of a specified event which, according to the ordinary expectation of mankind, is certain to happen, although the time of its happening may be uncertain. The sum payable may be “certain”, within the meaning of this section and section and section 4, although it includes Continue reading

Abey Francis

Business Clusters

In a globalized economy, companies can access capital, goods, information and technology from all parts of the world. Thanks to faster methods of transportation and communication, physical location has become less important. Yet, there are geographic concentrations of industrial activities. For example, Silicon Valley in California is reputed for its cluster of computer hardware and software companies. Even though it is a very expensive location, many tech companies continue to perform their key value adding activities in this region. Michael Porter  uses the term “clusters” to describe geographical concentrations of interconnected companies and institutions in a particular business. Business clusters include suppliers of components, machinery, services and institutions which provide specialized infrastructure. Sophisticated, demanding customers who keep companies on their toes can also be considered a part of the cluster. So can the local government, universities, research centers and think-tanks who play a vital role in encouraging innovation and creating Continue reading

Abey Francis

Case Study on Corporate Entrepreneurship: Steve Jobs of Apple

Corporate Entrepreneurship is broadly described as the process whereby an individual or a group of individuals, in association with an existing organization, create a new organization or instigate renewal or innovation within that organization. This definition includes two aspects of CE, a new business creation within existing organizations and renewal of the current strategy of the corporation. The vital notion is that corporations must capitalize on the entrepreneurial thinking of the managers to chase future evolution under changing and uncertain environments. Overall, studies suggest that Corporate Entrepreneurship activities are composed of three areas: idea generation, selection, and implementation or retention. Autonomy is an integral and central part of CE. Under conditions of change and uncertainty, providing autonomy to enterprising managers and encouraging them to elaborate on their own experience and ideas is a more promising approach than formal strategy development that relies solely on top management. It has been argued Continue reading

Abey Francis

Commodity Derivatives

In the last 25 years, derivatives have become increasingly important in the world of trading. Futures and Options are now traded actively on many exchanges. A derivative can be defined as a financial instrument whose value depends upon (or derives from) the value of other basic underlying variables. Very often, the variables underlying derivatives are the prices of traded assets. For example, a commodity option is a derivative whose value is dependent on the price of a stock. The underlying variable can be anything. Active trading is happening in credit derivatives, electricity derivatives, weather derivatives, insurance derivatives etc. many new types of interest rate, foreign exchange and equity derivative products have been created. A commodity derivatives market (or exchange) is, in simple terms, nothing more or less than a public market place where commodities are contracted for purchase or sale at an agreed price for delivery at a specified date. Continue reading

Abey Francis