February 2017 - Business management

Business management information

Saturday, 11 February 2017

Challenges of multinational firm|Challenges faced by multinational firm

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Challenges of multinational firm|Challenges faced by multinational firm

Challenges of a multinational firm

A multinational firm operates in diverse environments, the finance manager of the firm encounters a large number of challenges. They include
·       Complex taxation systems : multinational firms, operating in different economic system with their subsidiaries, have to face multiple tax system. The diversity of taxation affects the profitability of the multinational firm and it because a tedious job for the finance manager to perform decision making tasks in such complex situations.
·       Diverse financing mediums: A multinational firm has various sources of financing. However, some of them, coming from the economy in which the firm is new, may generate market-prone risks. This can be due to some specific risks pertaining to the economies that cause the decline in the profitability of the firm.
multinational firm

·       Political risk : multinational firms, while investing in a country, are prone to the political risks in that country. A major political risk faced by them is expropriation on confiscation of private property. It is, therefore, necessary for the firms to carefully analyse the investment ratings of the countries before they invest.

·       Risk of foreign exchange : multinational firms may also faces challenges due to its diverse physical environment . this hampers standardization of products, procedures and management style of a multi national firm. The weather and the landscape of the locations mayalso affect the performances of the individuals of the firm.

Friday, 10 February 2017

What are the problem faced in international marketing?

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What are the problem faced in international marketing?

Problems in international marketing

International marketing and domestic marketing look very different from each other. The basic principles of both are same. International maketing differs from domestic marketing only in the environment in which carried out. International marketing faces more problems and difficulties than domestic marketing. Some of the problems faced by international marketing are the following

·       The distinct legal and political system of countries is one of the problems for international marketing . the legal system in term civil laws, common laws and religious laws.
·       The cross-cultural environment of countries is another problem for international marketing. However, domestic marketing also faces such problems.
·       Financial system can differ from country to country
·       Currency units also vary from country to country. This poses problems in exchange rates.
·       Language can also create problems for the marketer. Same words or terms may have different languages. The language problem is a major issue in india.
·       Market infrastructure of countries can differ from each other. The advertisement mediums used in one country may not be available in another country.
·       Import restrictions imposed by countries on international marketing are another problem.
·       The cost of transportation can be very high in carrying out international business transactions because of large distances between countries.

What is international marketing | concept of international marketing

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What is international marketing | concept of international marketing

International marketing

International business also contains an indispensable concept known as international marketing. The term international marketing should not be confused with international business. At its simplest level, international marketing involves the firm making one or more marketing mix decision across national boundaries. At its most complex level, it involves the firm establishing manufacturing facilities overseas and coordinating marketing strategies across the globe. Different definitions of international marketing are given as follows:
international marketing

The most relevant factors for a firm that is marketing abroad are the following

Social factors :

·       Culture of the country
·       Language of the country
·       Environment and climate of the country
·       Marketing infrastructure
·       Financial system

Economic factors

·       Currency restrictions of the country
·       Government policy
·       Taxation
·       Internal demand management policies


·       Opposing organization in the importing country
·       Opposing organization in competing countries
·       Opposing organization in own country


·       Costs of planning and controlling the movement of goods
·       Transportation required


·       Political and commercial risks

·       Risks from enemies, thieves and piracy

Business model Definition | Business model Example

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Business model Definition | Business model Example

Business model

 A broad term that explains the position of a business organization in the value chain, the choice of customer, products and the cost of conducting business.

Business model

Business models

1.     Business-to-business
2.    Business-to-consumer
3.    Consumer-to-consumer

Business to business model

This model needs two or more business organization that do business with each other. It entails commercial activity among companies, through the internet as a medium. At present there are many types of e-business. The B2B e-business is of the following types:
·       Supplier oriented : in this type of B2B e-business, a supplier establish an electronic market where a number of customers or buyers transact with suppliers. Generally, it is done by a supplier who has monopoly over the products that he supplies.
·       Buyer oriented : In this type of B2B electronic commerce, big business organization with a high volume purchase capacity create an e-business marketplace for purchases and gain by establishing a website of their own.
·       Intermediary oriented : In this type of B2B e-business, a third party establish the e-business marketplace and attracts both buyers and sellers to interact with each other.

Business to consumer model

This model clearly concentrates on individual buyer and is thus known as the business to consumer model. This model enables consumers to browse, select and merchandise online from wider variety of sellers and at better prices.The B2C  business interaction is most appropriate for the following types of transaction
·       Easily transformable goods, that is, products that are easily transformable into digital format, such as videos, software packages, music, books, etc
·       Highly-rated branded items or items with return security.
·       Items sold in packets that are not possible to open in physical stores.

Consumer to consumer model

In a consumer to consumer model, consumers sell directly to other consumers via online classified advertisements and auctions or by selling personal services or expertise online. The C2C model involves the popular peer-to-peer software,that facilities the exchange of data directly between individuals over the internet.

Tuesday, 7 February 2017

what is E-commerce mechanism?

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what is E-commerce mechanism?

E-commerce mechanism

Internet is the best way of communication between two parties. Online business is growing speedily through a variety of software that help consumers buy and sell. In the field of online businesses, two popular methods are the following
·       Shopping cart software
·       Online e-telephony

E-commerce mechanism

Shopping cart software is a means of online presentation of goods for sale. shopping cart software provides an idea of the goods, online payment facility, joint selection of goods in form of a list, etc. By selecting items, shopping cart software allows shopping online effectively. There are many features provided by this software. They include the following

·       Credit card adequacy
·       Simple navigation system for consumers
·       Consumer account ability
·       Order management ability
·       Web based administration ability
·       Flexible shipping and tax options
·       Built-in site optimization tools
·       Inventory management ability

One of the finest ways to communication regarding business is online telephony. It is the technology which is used to convert voice singnals into data packets which are transported to a data networks running an internet protocol .it is the technology that allows the consumer to call by phone on same line which they are using for internet connection. It helps in saving the cost making calls on basic telephoneline for business communication. This online communication technology is commonly known as voice over internet protocol.

what are application of e-commerce

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what are application of e-commerce

Application of E-commerce

1.    Searching capability : The consumer should be able to search products of interest and switch directly to the interested product over the internet.
2.    Downloading products : Consumers should able to download products and other supporting information and make their purchase decision.
3.    Online support : Staff should focus on customer services issued online.
4.    FAQ based on products : Once customers buys the products, they expect their problems to sort out directly without having to pick up the telephone.
5.    Message board to support customers : A message board provides customers access to information at all the time in a day. New customers can get benefited from the Questions and solution provided by a message board.
6.    Product newsletter : Customers can stay up-to –date with product information. Users can easily subscribe to mailing lists for product information.

Consumer Access device in E-commerce

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Consumer Access device in E-commerce

Consumer access Devices

E-commerce is conducted via the internet through a personal computer, connected via a moderm, broadband connection or similar equipment. Even as it is the most important device for tha vast majority of transactions, internet access and E-commerce is available through a variety of devices aprt from the personal computer.
Marketing and operations mangers need to understand the importantance of supporting the right kinds of access and device , as many application and websites are more suitable to be used via other devices. The website model has been adapted to include digital television, mobile telephone with WAP (wireless Access Protocal) and 3G, palmtop computers with cellular modems or Bluetooth
Each of these devices has particular strengths and weakness. The following are some important factors that need to be taken into account.
·       Protability
·       Interactivity
·       Screen size and resolution
·       Keyboard size and function
·       Availability of a mouse or other pointing device
·       Internal storage
·       Processing power and speed
·       Operating system compatibility
·       Access speed
·       Coverage –geographical, and within buildings, vehicles and other structures
·       Battery life
·       Security

what are convergence technologies ?

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what are convergence technologies ?


The merging  of two different technologies so they can work together.

Categories of convergence

1.    Network convergence : convergence is fundamentally changing data networks as we know them today. Data networks are moving from the traditional data packet store-and-forward mechanism to a real –time communication infrastructure. Due to this change there is an ever rising need for higher bandwith, class and quality of service, and policy management.
2.    Application convergence : Application have converged based on standards and they can now interoperate across different vendor system. From a high-end videoconferencing system we can talk to a low-end desktop system using the same similar-application standard.
3.    Payload convergence : This is the aspect of converged networking in which varied types of data is carried in the same communication format. However, payload convergence allows networks to handle data packets according to the service requirement.
4.    Protocal convergence : This is the movement away from multiple protocols to a single protocol networks. While legacy networks can handle many protocols and single kind of data, the new converged netwoks are designed in such a way that they can handle a single protocol but are able to service multiple types of data (such as voice, video and interactive communication).
5.    Physical convergence : If the equipment over which the payloads/packets travel is the same regardless of the service requirements, itamounts to physical convergence. For example, an edge network can be used for both multimedia and web traffic even though multimedia traffic has higher bandwidth reuriements than web traffic
6.    Device convergence : Different networking paradiagrams can be supported on a single system using a network device architecture that support various different networking. For instance, router can support wirless as well as wired networks.
7.    Application convergence : This represents applications that appear the same every time but are capable of performing different function based on the content for instance, web browser one can browser the net and with sutible plug-ins one can play multimedia content such as audio, video, animation etc within the same screen
Technology convergence : This signifies support for different types of networks by using common networking technologies. For example, ATM networks are capable and can be used to provide both WAN and LAN dervices

Sunday, 5 February 2017

What is functions of e-business?

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What is functions of e-business?

Functions of E- Business

E-business application enable various business functions and transactions to be conducted electronically. Some of the functions are discussed as follows :
E-Advertising  advertising of information is currently the largest commercial activity on the web. For example :
·       A company’s website contains its profile and all the information on its products and services.
·       It displays banners that can be clicked.
·       E-business portals like www.yahoo.com, are used for advertising.
·       Newsgroup also provide publicity.

E-Catalogues : Web pages that the information on provide products or services that a company offers are available on an e-catalogue provides information on
·       Packaging
·       Product attributes and characteristics
·       Availability
·       Payment modes
·       Cost,etc

E-Publishing : This sector was among the first to spend on this noval technology, especially on the internet. E-publishing has led to several successful e-commerce endeavours, such as an independent publication through the internet and electronic news papers.
 Online publications offer services, such as:
·       Online reading/browsing
·       Online search
·       Customized information services
E-Banking : This facility offers remote banking electronically. Electronic banking is also referred to as online banking , cyber banking , home banking or virtual banking. It enables web users to make online purchase and pay for same, using an online –banking facility. It is cost effective , simple and available round the clock. The customers have access to several services, such as:
·       Bill payment
·       Electronic cheque writing
·       Record keeping
·       Tracking of bank account, credit cards

what is history of internet in short- Net history

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what is history of internet in short- Net history

History of internet

1969          :  The US Department of Defense started the first network                        among major research centres in the U.S.
1971          :  Major connections or nodes were established. E-mail was                      introduced.
1973          :  Defense Department started developing various forms of file                  transfer.
1984          :  Domain names services (DNS) was introduced.
1986          :  The US National services foundation created internet-based                  telephone lines.
1987          :  The no of hosts (computers on the internet ) reached 10,000.
1988          :  The no of hosts on the internet crossed over 60,000.
1989          :  over 100,000 hosts on the internet were registered.

History of internet

History of internet

1991          :  The World Wide Web (WWW) was created by CERN in                       switerzerland. (Conseil European pour la Recherche                              nuclearire)
1995          :  There were a total of 6.6 million hosts or computers on the                    internet.
July 1997   :  1.3 million domain names users on the WWW.

2003          :802.2 million users and 233 hosts.

What is e-business? E-Business application

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What is e-business? E-Business application


 E-business deals with buying and selling of information, products and services through the computer network. E-business is also defined as a business activity which uses an electronic medium. It also refers to the buying or selling of goods and services without visiting a store. E-business involves activities , such as delivery of information, product, services and payment through the electronic medium. In addition, e-business refers to paperers business activites, such as supply chain management, enterprise resource planning, customer relationship management, and knowledge management.

Origin of e-business

In the 1960s, businesses that enagaged in the large volumes of transactions had begun exchanging transaction information on punched cards or magnetic tapes. Data communications technology eventually allowed trading partners to transfer data over telephone lines, instead of shipping punched cards or magnetic tapes to each other in advance.
Although these information transfer agreements between trading partners increased efficiency and reduced errors, it was still not an ideal solution. Only large trading partner could afford to participate in the benefits of these paper-free exchanges, becauses the translation programs that one trading partner established, generally would not work for other trading partners.
During the 1970s , the introduction of electronic data interchanges(EDI) between banks over a secured private network changed the financial market. In 1973, the ANSI committee developed a uniform EDI standard. This committee and its subcommittees included experts from the information technology background from over 800 organizations. During  the late 1970s and early 1980s,  became widespread widespread within companies in the form of electronic messaging technologies, i.e.,EDI and e-mail  

Advantages of e-business

1.    All-time processing : Customers can use the marketplace at all times with the use of e-business services.
2.    Better services: Customers are fully satisfied and receive better service.
3.    Removing mediator : Customers can directly contact the suppliers and remove all mediators.
4.    Data on consumer performance: Using the e-business services, one can understand consumer behavior, for example, websites, products, schemes and modes of payment which are preferred by the customer.
5.    Time saving : Customers can save time because they can purchase anything through the merchant websites.
6.    Improved customer services : These days, consumers want better services. Therefore, e-business services offer a means of communication between the consumer and the company. The consumer can even make online complaints to a company.
7.    Origin of new business opportunity : The biggest network between consumers and the companies can lead to the origin of new business opportunities, like infinite possibilities for business to develop and increase their consumer base.
8.    Enhanced speed and accurancy of a product : The usage of e- business services reduces human errors and other problem like duplication of proceedings, This perfection in speed and accuracy, plus easy access to documents and information affect the increase in production.
9.    Product Cost saving : Despite the fact that you can reduce the cost of  a product by the use of online services, it also reduces the errors and the cost of sending the information to partners.

Other advantages

·       It reduces the cost of the product.
·       It reduces paper work as the entire work is done electronically.
·       The product is directly supplied to the customer because all orders and enquiries are processed online. This eliminates the need for wholesellers and retailers and brings down the cost
·       Improved customer relationship is achieved by fast dissipation of information.
·       online minimizes the time taken from order to delivery.
·       Provides better, faster and effective linkage with clients.
·       Enhances the orangnization ‘s product and also does a market analysis,as the organization gets feedback from the customer.
·       E-business helps people work together.
·       E-business is a 24 x 7 operation and has a global reach.

Disadvantages of e-business

1.    Lack of customer awareness : Mostly people have no knowledge about electronic communication like the internet, computers, etc. Therefore, they are not able to transact electronically.
2.    Not for small businesses : Small businessmen do not want to take any extra burden because they have no knowledge of e-business functions.
3.    Does not support all type of businesses : Some type of businesses  are not fit for e-business services.
4.    Legal formalities : If you want to use online services in your business, you have to complete certain legal formalites like authorization and authentication

Other disadvantages :

·       High risk for internet startup organization
is not free
·       Security problems
·       Customer relation problems
·       Data integrity problems
·       Cutomer satisfaction problems