Global Business Environment

Reasons Behind the Financial Crisis of 2008

Financial crisis is a bubble created by excessive investor inclination towards a particular market. It shadows the valuations and when the bubble bursts, the investors want to exit and therefore rapidly start selling their stake.

Too much of capital led to lower interest rates and this in return forced the investors to look for creative investment platforms where the yield was high. This requirement led to an unprecedented growth in the securitization market as the inclination towards such derivative instruments was high. Investors were willing to take higher risks as compared to the returns they would receive for their investments. Greed for higher returns, excessive leverage and low volatility led to the financial crisis of 2008.… Read the rest

Abey Francis

The Effects of Financial Liberalization

Financial Liberalization refers to deregulation of domestic financial market and liberalization of the capital account that implies removing the ceiling on interest rates. When it is in a liberalized system the competition between the different lending institutions for the deposits will increase interest rates on deposits which will increase the deposits. The availability of credit will increase and this will cause an increase in investment growth.

The stages of growth increases activity in the financial markets that makes the introduction and the development of financial institutions. It is argued that financial institutions, by gathering and evaluating information from borrowers, allow the allocation of funds for investment plans to become more efficient and therefore encourage growth and investment.… Read the rest

Abey Francis

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

Abey Francis

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

Abey Francis

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

Abey Francis

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

Abey Francis
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