Ethical Behavior And International Business

First, we need to have a clear concept of what it is Ethics and the difference between the actions and processes of international business development that related with cultural aspects and Ethics.

Colins Dictionary defines Ethics as moral beliefs and rules about right and wrong. An ethic of a particular kind is an idea or moral belief that influences the behaviour, attitudes, and philosophy of a group of people. Webster Dictionary defines as a discipline that deals with what is good and bad and with moral duty and obligation, or as the principles of conduct governing an individual or a group. Larrouse, a French Dictionary, defines as a part of philosophy that focus on the fundamentals of moral, or as the set of moral principles that are the base of conduct of anyone.

What induce more noise in international negotiations are the cultural aspects, which are misunderstood and confused with Ethical differences.

The cultural aspects that need to be highlighted are: the protocol, the religion, the use of colours and their meaning, the corporal language, meal customs and gifts.

There is, also, another perspective about different cultures, which is from Geert Hofstede, and analyses the Cultural Dimensions. They are: Power Distance Index, Individualism, Masculinity, Uncertainty Avoidance Index and Long Term Orientation. One possible use of his method is exactly in International Businesses. The score of dozen of countries is available on his web site.

Business is Business and Ethics is Ethics. The grey area that many people try to develop, to be used as excuse to failure or to allow, or endorse, unacceptable ethical situations must not exist.

A great sentence from Peter Drucker was, when a reporter asked him what he will teach in a lecture, about Ethics. He answered that it will be the shortest one in the world, we will just say: “If you can’t look yourself in the mirror for something you’re about to do, don’t do it.”

Ethics is about moral and to not provoke damage to anyone, to the business, environment, colleague, partner, neighbor, friend, and so on.

A common idea that I read a lot, it is that bribery is expected and usual in some countries. Bribery is wrong in any place of the world. It is difficult to me, to believe that are some people, serious people, that endorse that practice and say that it is natural in some places.

To exist bribery, we need to have at least two actors, the one that “donates” and the receiver, what happened was a long and old process, where the powerful offered advantages, gifts and bribe to have their interests attended quickly, and that process in some world regions become more usual. It is easier to buy the guy than to explain what I want.

In 1999, I read on a local newspaper, or magazine, an absurd, difficult to believe, but it is real and I think that I have until today that article in some place. A diplomat from a developed country said, in an emerging country, and it is written, something like: “who has the money makes the orders”. I think that I don’t need to make more comments on how bribery was expanded in some regions.

Another point that I read, it is that each country makes or interprets their business ethical standards. I believe that it is, also, not true. Each country has a level of “corruption contamination”, that should be the reference. An observation, corruption is not only a characteristic of poor countries. We find it, also, in developed countries, and frequently.

So, Ethics is one thing, business rules and cultural aspects are another.

Cultural aspects and how to deal with their particularities, depends on the study and interest of each one that wants to develop international business, and it is needed, before making suppositions about it and delegate that responsibility to ethical differences.
To kill, to steal and to harm others aren’t a moral acceptable behavior in any place in the world. Business rules are made by the human beings and followed in a moral or immoral way, as their conscience and education says.

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Powerful Methods To Stay Successful In Business

In business, achieving success is merely half the battle won. The other half? As many veteran businessmen would agree, sustaining success – staying on top of your game and on top of THE game – is the more difficult part of owning and operating a commercial enterprise.

Case in point: flash-in-the-pan businesses are a dime a dozen these days. Overnight successes are stories that are quite commonplace. But businesses that last for years, if not decades? Alas, they’re rarities in this day and age!

The goal isn’t merely to succeed in business. The goal should be to remain successful in business.
Here are 5 powerful principles to live by if you want to achieve such a goal:

1. Believe in your business. Your business is bound to encounter many challenges and many tribulations along the way. Some of these trials would be grave enough to make you consider quitting. But should you? Remember: if you don’t believe in your business, if you don’t believe that it can succeed, then why should your prospective customers believe that your business is the right choice for them? Your faith in your business will go a long, long way in pushing it to reach its fullest potentials.

2.    Find satisfaction in what you’re doing. If you do not find contentment in what you’re doing, then it’s just a matter of time before you give up on your business. Fulfillment can be attained in so many ways. If you cannot find that sense of fulfillment from your business, it’s either because: a) you’re not looking hard enough; or b) you’re looking at the wrong place. The smallest victory can be a cause for celebration. And the tiniest of triumphs can even provide the biggest kind of satisfaction.

3.    Make your customer’s satisfaction your primary goal. Profit is good, but it shouldn’t be the driving force of your business if you want your success to last. The happiness of your customers should be your paramount concern. Remembers, happy customers are customers for life.

4.    Strive to improve your craft and your trade. Never rest on your laurels. Always try to be the best you can ever be when it comes to the things you do for a living.

5.    Have fun! They say that the best kind of moneymaking opportunity is one that you enjoy doing. If you will find such a business, then you’ve hit the jackpot. Now, no one said that this “jackpot” can’t be created. You can find enjoyment in what you’re doing. Even if the business wasn’t born from a hobby you once nurtured, you can still find ways by which you can make it very exciting and very enticing for you. Your enthusiasm for your business will eventually show in the products you will deliver.

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A Good Business Dissertation Is Written To Target A Particular Audience

Students, who wish to do business management, have to submit a business dissertation. It is a lengthy document which consists of many sections and written on specific topics which relate to various facets of business management. The subject areas can involve marketing, management, and organizational behavior, HRM, Finance, production and many more. The dissertation can address any of these subjects provided it is informative and is relevant. Depending upon the subject area chosen for the business dissertation, it should be written in a manner which is suitable to the audience it is targeted for. For example, if the dissertation topic is about technology in the production floor, it is then targeted for a dissertation committee which has technical experts as well as academics from production management back ground. Therefore the language and format of the dissertation will incorporate technical aspects and include technical data etc, than that of dissertations written for other fields as HRM or business ethics.

A business dissertation has many sections which need to be written clearly and concisely. These sections include introduction, literature review, methodology, and discussions. The formatting should adhere to the requirements set by the dissertation committee. The common type of formatting for business research is the Harvard system and there are plenty of resources on line which gives detailed guidelines on how to follow this system. Students should acquire a thorough knowledge of the formatting requirements prior to embarking on the dissertation writing process.

The first step in writing a business dissertation is to select an appropriate and novel topic. Before conducting the actual research study, the students should submit their dissertation proposal to the Dissertation Committee for approval. A proposal for the dissertation must outline the intended study and the proposed dissertation questions or hypothesis being explored. The significance of the study and the intended contribution of new knowledge should be highlighted in the research proposal rationale. Once the approval for the dissertation has been granted the students can embark on the actual dissertation project. This involves drafting the introduction chapter, the conducting of literature review and writing this chapter and then the designing and writing of the dissertation methodology. Primary research for the dissertation takes up an extensive amount of time and must adhere to proper researching techniques. This is why you need to place extra attention to developing a sound and reliable research design and methodology for your study. A business dissertation may use quantitative research, qualitative research or a mix method. Depending on this choice, the research tools as surveys, questionnaires, observations, focus groups or interviews can be utilized.

Having gathered the data, they need to be properly analyzed. Dissertation data analysis is highly technical and students must apply proper statistical analysis methods or qualitative analysis methods in to evaluating, analyzing and interpreting the data gathered. These analyzed data will then be used to write the discussion chapter. Within the discussion, one must discuss the findings of the study in relation to the dissertation objectives and questions. The discussion should also address the managerial and business implications of the findings.

As apparent, the writing of a business dissertation is not a simple task. It calls for multiple skills and talents as well as expert knowledge of the theoretical framework applicable within which the dissertation study is grounded upon. Dissertations also call for excellent formal writing skills. Students often find it hard to come by all these skills and seek writing assistance from professional dissertation services.

These firms offer students the options of getting a custom dissertation written by a professional dissertation writer that is well qualified in the field of business management. These professional writing assistance services offer ideas, guidance, examples and editing and proof reading services as well for those who wish to fine tune their writing to a high standard.

After all, a lot is riding on the quality of dissertation you will be submitting. After investing money, effort and time in to studying many years in a degree program, the dissertation is the final submission you will make in order complete the requirements. As such, it is wise for students to seek professional assistance, if you encounter problems, especially in technical areas such as methodology design, field research or in data analysis.

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Advantages Of Listening In A Business Directory

Advantages Of A Business Directory

Registering in a business directory is a very wise move to increase the prospects of any business. As the Internet has made everything very accessible, registering in an online business directory can be very beneficial to the local businesses.

Who does not want to expand one’s business in this rapidly burgeoning economy? Of course, everyone does wish the concerned businesses to prosper and soar high. To make that happen different people employ different strategies. Where some people distribute their pamphlets, cards or offer various promotional services and products, some people merely just register themselves in a good business directory.

If you are looking forward to further the prospects of your local businesses then registering yourself in a business directory is a very wise way to advertise and become known to the masses. Business directories are really beneficial in promoting local businesses of an area thereby improving the sales of their services and products. These days the facility of online business directories is also there. Thanks to the advent of Internet, that has made connecting to masses so very accessible.

An online business directory has lots to offer if you get registered with them. The major advantages of getting registered in an online business directory are:

•    It promotes the visibility of your local businesses in higher place in comparison to their competitors who are still employing the ancient methods of advertising, i.e., in the yellow pages and newspapers.
•    It strengthens your relationships with the existing buyers, customers and clients by updating valuable information regarding your company online.
•    You can acquire the customers of your competitors, as your company will be much more visible and updated attracting and promising the customers of quality services.
•    You can always remain in the sight and mind of your customers by offering only website coupons and special promotions.
•    There are no restrictions regarding the quantity of the content that you can include in the business directory.
•    You can also upload your product’s pictures, menu and service records along with your very own business URL.
•    You can add the business directory’s website address on your business cards so that customers find it very easy to access you and thus avail your services.
•    You can keep the prospective customers duly informed about tour new products, business hours, special offers and discounts.
•    A business directory also submits your company’s Internet page to the leading search engines that helps to increase your website’s quality traffic flow.
•    As increasing number of consumers are availing the facility of the Internet, it is very easy for them to spot your company and seek services.

The best part about getting registered in an online business directory is that once you have registered, you will keep progressing as your business is exposed to a large populace inland and abroad. Moreover, you do not even need to possess a personal computer to keep checking your company’s status on the online business directory, and you merely have to avail a hosting service for Internet, some technical skills or ISP to make the best possible use of this facility.

After you have registered in an online business directory, the sales quotient of your business will improve considerably and you can happily cater to the needs of your clients.

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Ways To Grow Or Expand Your Business

In these tough economic times, it is more important to look at different ways in which you can grow business wisely. This can be done in a variety of different ways. In growing your business effectively, it will be important to look at several different aspects of your existing business. Are you financially sound to take on this new project? Have you sought out the perfect location? Do you have a plan of action in place? All of these questions are integral in assuring that your business will be a success. Let’s go into a little bit more detail on the ten best ways to grow your business.

The first step is to know your market. If you are looking at growing your business and possibly adding other locations, it will be important to know who you are catering to. Make sure that the products or services that you are offering will be adequate for the needs of the consumer.

Second is to know what your financial availability is. Often, the business owner may have the right intentions, but it may not be feasible for the moment to grow or expand the current business. There is the possibility that waiting and planning will actually be in your best interests.

Third, you will need to make sure that your employee needs are covered. Can the existing staff accommodate an increase in work? Will you need to hire more staff? Have you trained the existing staff to take leadership roles if need be? These are all answers in which only you can provide.

Fourth is to know whether your location will suffice for the growth. Will you need to add a location? Would it be better to buy or lease a larger location or should you add on to the existing location?

The fifth best way to grow or expand your business is to make sure that your support staff is in place. You will need people who are organised and professional in order to build the base on which you can make your business a success.

Sixthly, you need to keep up to date with all your financial obligations and ensure that they are all being dealt with and upheld in a professional and timely manner.

The seventh item would be to look at your procedures and if need be create a new organizational structure. This can be done through joint ventures, mergers, and acquisitions which can help grow and diversify your business. Eighth

The eighth way to improve your business is to analyze all aspects of your business, products, suppliers, clients, areas, etc. Try to phase out any areas that are not making a profit and incorporate more of the successful areas into your business.

Ninth is to look at the value of your company as a whole and try to increase its market share and diversify your client base and increase in areas that have been previously unexplored.

And last but certainly not the least is your time! Do you have the time that it is going to take to make this happen? Often, during the expansion of business, the owner will find themselves devoting just as much or more time to the growth process.

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Business Loans Are Not Hard To Get

There has been a tremendous amount of talk in the media over the last few years about how small businesses cannot access business credit (loans, lines of credit, working capital advances or business credit cards).

In fact, several small business associations claim that 41 percent of small businesses cannot access business credit or business capital.

I say they are wrong. What they are actually saying is that they cannot access business credit on the terms they want or in the form they desire.

Clearly, getting a business loan in 2004 through early 2008 was a lot easier than it is now. But, what really happened was that business loan underwriting standards where drop or lessened – allowing individuals and business owners, many of who should not have gotten credit in the first place, to obtain risky loans – loans that were not repaid and could have never been repaid; very similar to what mortgage banks and mortgage brokers did with home loans.

They underwrote risky loans just to collect origination and processing fees then sold those loans off to investors (again collecting additional fees) – holding no risk in the end. What this did was put a lot of unnecessary toxic business credit in the market – loans that should not have ever been made.

Think about it this way. Let’s say that on a scale of 1 to 10 based on a loan difficulty – with 1 being the easiest option of obtaining a business loan. Prior to 2004 – business loans had a number of about 5. They were not easy to get or hard to get. Banks just followed standard loan underwriting protocols. Thus, those who should get business loans did and those who shouldn’t – didn’t. At that time, underwriting was based on costs of funds and risk of repayment.

But, when congress open the secondary market for these loans (just like they did for secondary home mortgage loans with Fannie and Freddie) – banks realized that they could quickly collect underwriting fees then pass off those loans without assuming any risk. Based on this (just like with the housing market) – they lowered their underwriting standards (why not as they had no risk – it was all up side for them). Thus, the difficulty number for business loans dropped from 5 all the way to 1 (where anyone could get a business loan regardless if they qualified or not).

Therefore, for years, business owners were able to quickly and easily get business capital if they were willing to pay the bank’s or lender’s fees.

Now that the market collapsed, the difficulty number for business loans has once again returned to its normal position of 5 – making them not easy or hard to get.

The 41 percent who claim that they cannot access business credit today are the ones who should not have gotten credit in the first place.

The bottom line is that business loans are not hard to get – they were just really easy to get a few years ago and have now resorted back to where they should be on the difficulty scale.

To obtain a business loan today – you must first understand why your business needs outside capital (it has to be for growth – anything else is wasted money) and then understand how your business, as it stands, can leverage itself to obtain those funds – there are as many ways to obtain business capital as there are request and each one is no harder than it should be.

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Advantages Of Using Promos In Your Business

Promos are considered one of the most effective and cheapest means for marketing. Corporate gifts or promos are not very expensive and can be less than a dollar as well. According to the reports of an Advertising Specialty Industry, around 56% of people keep the promos, while 58% of the people remember name of the company printed on the promos. Promos are cost-effective means of advertising brand image of your business. This article discusses about some useful tips on how you can make the most of promos for a campaign.

You should be aware of the wants and desires of your prospective clients:

Promos that you use must be market driven. It is very important customers appreciate the promos that you give out; as this will help you increase your customer base. Therefore, what you can do is, make the promotional products the way your clients expect them to be. You will have to spend time conducting research, when it comes to determining the right promos.

You must be very cautious all through the process, because business organizations have the tendency of losing their core message in their attempt to target niche audiences. Your brand identity must be clearly expressed in advertising merchandise so that people won’t have any problem getting the message you want to promote.

Remember less is more:

You should keep in mind the concept of less is more while designing promos for marketing. You should keep the text and color to the minimum to attract attention of prospective clients. Too many colors and words tend to make the promos look messy and chaotic. There is amazing elegance in simplicity and this helps you effectively project your business message to your clients. Untidy presentation shows lack of professionalism and leaves behind a negative image in minds of the clients.

Many consider bargaining or haggling a desperate act in business. It is actually a business negotiation process that a wise entrepreneur does to cut down the overall cost. Once you are aware of the basic negotiation skills, you will be able to save substantial amount of money.

Some of the commonly used promos include T-shirts, pens, gym bags, mugs, and other useful pieces of merchandise. Targeted promos for your customers generate more sales and help attract attention of clients to your site. Make sure to give out good quality freebies, as your company image will crumble down when you offer cheap promos.

Using promos for marketing is one of the most affordable means to increase your profit margins and improve your business. So, keep in mind the three useful above mentioned pointers and create a brand image of your business with promos or promotional gifts. You will be amazed to take your business products and services to an altogether new height with such promotional items.

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Benefits Of A Business Economics Major

The Business Economics major is a great complement to another major or minor in business, political science, history, accounting or marketing. Economics not only studies economics research and economics financial systems, but also social issues like poverty, pollution, inflation, unemployment, recession and economic growth.

Top market economists are analytical problem solvers who are useful in almost every major industry. They study how the optimal amount of production can be achieved to meet society’s needs. They study market forces that shape financial decision making. They look at how politics affect the commerce marketplace. They look at data to forecast, analyze trends and apply their understanding to a whole range of public issues.

To get an undergrad degree in Business Economics, students attending an accredited economics university will need to take courses like macro economics, microeconomics, financial accounting and reporting, calculus, economics statistics, econometrics, money/banking/credit, business writing, the stock market, labor economics, monetary economics, international trade theory, law and economics, industrial organization, economics and business strategy, organizational psychology, formal organizations and politics and the economy. Students should have a good understanding of math, politics and business. People often choose this major because they want a good job, they want to make a lot of money, they want to be a manager or CPA, they want to have a secure job or they want to get into a good graduate school.

The common starting salary for economists is $38,000 for a bachelor’s degree, $48,000 for a master’s and $70,000 for a PhD, according to a 2002 National Association of Business Economics survey. Those with an economics major enjoy the highest median income compared to other majors, experts say. Economics research also suggests that economics majors earn 20% more than business administration majors, 19% more than accounting majors, 18% more than marketing majors and 15% more than finance majors. When a potential employer sees this major on a resume, he or she immediately understands that you have a solid foundation of math, politics, business and economic theory. Your degree also shows that you have the capacity to process complex subjects and it highlights your problem solving skills, which is valuable in any field.

Individuals with a degree in Business Economics have been recruited by employers like the California State Controller’s Office, Cerner Healthcare Information Technology, Coca-Cola, Consolidated Graphics, Deloitte Services LP, Edward Jones, Enterprise Rent-A-Car, Ernst & Young LLP, General Mills, Inc., Insight, JPMorgan Chase & Co., Liberty Mutual Insurance Group (MA), Medix Staffing Solutions, PetSmart, Raytheon, Sherwin-Williams, Travelers Insurance and Wells Fargo Financial. The economics field is expected to grow 7% by 2016, adding another 16,000 workers. People with bachelor’s degrees can get almost any entry-level job in business. Master’s degree holders generally compete for sales and management trainee positions. Those who hold PhD degrees often go on to teach or become top market analysts in their fields.

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Business Start Up Check List

Starting your business is a busy time in any entrepreneur’s life. Vital steps could be easily unnoticed until you’re well into the process. To assist entrepreneurs in getting their businesses set up efficiently and lawfully, here is a checklist of steps that all businesses need to include.

1. Developing a business plan
A business plan will assist you to focus and organise your thoughts about what resources your new business will need, how it will sell its goods and services (and in what markets) and when you can anticipate the business to turn profitable. Numerous businesses fail since people begin them with absurd expectations and only vague thoughts about how to accomplish them. Most successful entrepreneurs are disciplined people who look carefully at strengths, weaknesses and numbers prior to devoting their time and capital to a new business.

2. Decide on a effective name
You’ll need to choose a name for the business. If you are going to operate as a sole trader, this could constitute as simple as your own name, or some variation on it. If you would like to use a corporate name, you’ll be required to ensure that the name isn’t already occupied.

3. Choose an suitable legal structure
The nature of your business and your medium-to-long-term plans for it will play a great part in the legal structure you select. If you operate in a relatively low-risk sector and plan to supply all services personally, then you may wish to set up business as a sole trader. While if you are planning to float on the stock exchange inside six months, you may wish to set up as a PLC from the beginning. The majority of businesses will come someplace in between and use a partnership or limited company structure.

4. Appoint advisors
Most businesses require some degree of external advice. For some, a basic bookkeeping service may suffice, whereas other people will require a wide range of solicitors, accountants and additional advisors. It’s worth investing some time in researching and choosing a team of advisors that you’ll be comfy working with, and who are likely to be able to meet the needs of the business both at start-up and over the longer term.

5. Obtain financing
Numerous businesses fail for lack of capital. You need to be realistic about what level of investment the business will need and have some idea as to how it will get it. Many businesses find that a working capital line of credit is extremely useful, as it is sometimes difficult to match the timing of necessary expenditure to cash flow — but bear in mind that lenders frequently require personal guarantees for new businesses, even if they are to be set up as limited companies.

6. Research applicable regulatory requirements
Know the law that applies to your industry. If you’re starting a transportation business, for example, you need a thorough understanding of the regulations that will affect the business and — crucially — how much it is going to cost to comply with them. In some areas, the regulatory regime is onerous and requires a lot of time and attention during the start-up phase (although your consolation might be that such regulation also acts as a barrier to entry that might limit your competition).

7. Find business premises
For many businesses, premises are both a major expense and a substantial part of the business’ identity (in the case, for instance, of a retail shop). You need to survey the relevant property market carefully in planning your business and prepare for the unexpected. If the ideal location is crucial to your business proposition, you may want to retain a commercial property consultant to assist you in securing the right premises.

8. Review health and safety arrangements
Virtually all businesses must comply with some degree of health and safety regulation. If you’re looking to do business in a sector where health and safety compliance plays a significant part, then you will need to learn about it in advance, and perhaps get some professional help. If your business is a labour-intensive one, then you should expect health and safety matters to be a substantial area of concern.

9. Identify suppliers
Most businesses rely heavily on their suppliers, be it in terms of quality, reliability and/or performance, as well as — perhaps most significantly — credit terms. Some suppliers will, in effect, finance a business by providing raw materials on terms that enable the business to turn them into sold finished goods before they have to pay the supplier. Others will want to be paid up front. This can depend on factors such as industry practice and the creditworthiness of the purchaser. In planning to start a business, you will need to know what to expect and if your business is going to rely on certain key suppliers you may want to enquire in advance as to how the relationship will work.

10. Recruit employees
When your business takes on an employee, even a single casual part-time worker, it is making a significant commitment. The commitment is not just to the employee, but also to various other parties, such as HM Revenue & Customs (HMRC), who have an interest in the employment relationship. Once you recruit an employee, you are obliged to comply with a wide range of employment regulations and other laws, and you must also account to HMRC for PAYE deductions. Make certain you know up front how you’re going to comply, and in particular how you’re going to carry out the mechanics of payroll, etc.

11. Acquire insurance coverage
If you have one or more employees, you must acquire employer’s liability insurance coverage. In addition, there are a range of other insurances you may need or want, depending on the nature of your business and your industry sector. A good commercial insurance broker can help you with this.

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Best Funding Options for Business Loan

Entrepreneurs today are the economy makers of tomorrow. Today start ups are not only coming up with innovative ideas but are making the lives of the society much simpler than one could have imagined. With out of the box ideas and the fact of being an entrepreneur without anyone to report to, is not only both enticing but also exciting especially once you start earning profits and make it big in business. You become rich and famous and recognized in the world where everyone is out there to make their own name. But then is being in business restricted to a privileged few? Can only people with deep pockets or people already in business through generations start up a new company or do business? Is it only restricted to people with cigars,fancy cars and huge villas? The answer is a definite no. If business would have been limited to this few money makers, then there would have been a greater disparity between rich and poor, a greater difference between countries and a definite shift of power. Instead business is never limited. It is for those people who are passionate about it. It is for those people who believe they can and they will. It is for those people who have the ability to see things differently and are willing to take the risk. It is only limited in mind but never in soul. Business loans hence find importance more than ever before because ideas are never limited to the rich.

Business loans lately have found more importance because of more people coming ahead and exploring their business acumen, bringing out ideas to help people make their lives simpler, exciting and enticing to say the least. Various financial institutions to cater to this growing demand has come up with various, customized loans to suit for specific business needs, because a business can never be limited so why should the lines be?

Banks- The oldest traditional lenders of the world. Banks are not only lending for ages but in order to cater to the demand and stiff competition in the market have come out with customized loans to fund specific needs of the businessmen at competitive rates. From varying rates if interest for varied terms of payment, banks have been in the forefront of lending business and is probably one of the first choices for people looking to fund their business. Banks lose out on lengthy and stringent process of providing funding. It is both time consuming and hectic. Sometimes collateral along with the guarantee is asked based on the type of loan you are looking for based on the size and type of business you are in.

Venture Capital- Venture capital (VC) is a type of financial capital that is provided to various start up companies that exhibit high potential and high risk. It is a very important source of funding for start ups that do not have access to capital markets. It involves high risk for the investor but then the returns have the potential of bringing in more revenues than other traditional funding. Generally investors are interested in returns of 25% and more. It also manages to fill in its coffers by owning equities in the companies it is investing in. All Venture capital is a private equity but then vice versa is not true.

Venture capital attracts funding from new companies especially those small companies that are too small to ask loans from traditional lenders or are too too small to raise a capital in the public market or provide a debt offering. Due to high risk of the business, the venture capitalists are in more control of the business that they provide funds to. They get a meaningful control in company decisions and day to day activities and also ownership. Interestingly VC account for 2% GDP in the US,contributing to new job creations.

Angel Investors- Angel Investor is an investor who is not only prosperous but also provides capital to a business start up in exchange of convertible debt or ownership. A group of influential investors organize themselves to form angel networks in order to provide consultancy to firms or pool resources to fund one. Angel investors normally pool in funds from their own pockets unlike venture capitalists who pool in money of others to manage the funds. Angel investors bear a huge risk and provides seed funding for various start ups. One of the reasons why these kind of funding are gaining popularity is because for start ups financing not being available from banks. Angel investors are an expensive source of funds and hence look for high ROI (Return On Investment).

Whether you are in business or are looking to be in, don’t fret. You have more options to choose from. Just make sure your funding is aligned to the type of business you are in and that you understand everything from initial funding to the terms and conditions.

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Different Strategic Levels In A Business Organization

A business strategy defines the direction in which a business will take in the future. The business organization tries to achieve an advantage over the competition by the configuration of its resources within a confronting setting so that the needs of the market are met and the expectations of its stockholders are fulfilled. This is the overall definition of a business strategy. This focuses a business organization on which market it should engage in and the activities that are needed to compete in that particular market for the business to grow.

In making a business strategy, the planners need to determine how the organization can outperform its competition in a particular market niche. These are the advantages of the company which it needs to utilize, in order to gain the upper hand. In this connection, the right resources that the company can utilize should be gained, in order to maintain its competitive advantage. These resources will include the skills, various company assets, relationships, facilities and technical competence. As an organization plan how to manage its resources, it should also take into consideration the environment in which it is to operate. These are the external factors which can have an effect on the ability of a business organization to compete. Furthermore, the hope and values of its stakeholders should also be taken into account on the overall business strategy.

Though there is an overall strategy which a business organization enforces, there are different levels in a business setting where particular strategies are implemented. First there is the so called corporate strategy. In this particular strategy level, the focus is on the overall purpose and coverage of the organization to meet the expectations of its stockholders. This is crucial to the company since it has a great influence on its investors and guides the strategic decision making all through the company. A corporate business strategy is posted for all to see in the mission statement of a company.

Next in importance to the corporate strategy would be the business unit strategy of a particular business organization. A business unit strategy is mainly concerned with how a business can compete in its chosen market niche. The decisions which are the focus of attention in a business unit level are about meeting the needs of its costumers, choice of products, gaining advantage on the competition and the creation and exploitation of new opportunities.

The next level of business strategy which a business organization focuses on is the operational strategy of the company. At this level, the focus is on how each segment of the business can be systematized so as to give the direction to the business unit strategy. The consideration is on processes, people, resources and other such concerns. Various business organizations have their own strategies which they see are most advantageous to the company. They each implement safeguards to guarantee that strategic goals and objectives are met and vigorously implemented and followed by each member of the team.

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Community Assumptions And Business Responsibility

Social responsibilities lay in business framework
Most people think of business simply as a way to generate money. While this may be a primary motivating factor for some, it also carries many underlain responsibilities. Business owners become part of the infrastructure of the community. They supply a service or product which fills a need of the community.

The common bond linking community and business lies in each others realization of shared assumptions. Business realizes they fill a need, desire or fixation of the community and the community realizes who their contributor is. While community can survive without business, business on the other hand cannot exist without community. No community is self sufficient and no business is customer free.

Business must develop social programs and policies that can be seen as responsive to social expectations, but not necessarily limited to socially demand. A firm having social awareness is in tune to its customer’s requirements as well as its’ viewpoint.

There are three main driving forces between business and society:

1. The idealistic outlook: primarily relates to principles and social responsibility,
2. the institutional outlook: Its’ expression of social responsiveness
3. the organizational orientation: primarily relates to policies and management of social issues.

There are four Basic Models of Business Relationships
1. Humanitarian – adhere to principles of compassion and reinvesting into the community
2. Ethical – adhere to principles of honesty and decency
3. Legal – adhere to all laws and regulations
4. Economic – adhere to making a profit.

While a certain responsibility lies in being a good corporate partner and citizen, the most fundamental business responsibility is that of economics. The primary reason for being in business is to make a profit. Business exist for generating revenue for the business and in so doing, provides revenue for its employees. All other business responsibilities are based or established upon economic assumptions which is the responsibility of the people in charge. Without this statement the prognosis of future success becomes nothing more that arguable considerations.

While plotting a course of action, businesses are expected to operate within the framework of societal law, thus carrying the burden of legal responsibility. Likewise, legal responsibility is restricted to the “letter” of the law, while the “spirit” of law is
reserved for ethical reasoning.

Next, businesses are expected to have an ethical responsibility which is defined as “any and all activities or practices which are either expected or prohibited by society members even though they are not written into law.” Ethical classifications are further separated from legal activities by use of negative definition: ethical responsibility relates to those social expectations and norms not yet codified into law. In the same line, philanthropic responsibility designates those areas of voluntary social involvement not specifically
prohibited or demanded of companies because of their economic, legal, and ethical responsibilities.

Business also carry as a philanthropic obligation to contribute to its community. This responsibility is discretionary in nature and seen as an investment in future growth. Even though this is not a requirement it is a necessary and sufficient obligation that socially expects from responsible businesses.

Theoretical Assumptions

If the economic role of the business is reduced to the narrow emphasis of profit it then could become blinded to making of contributed economics. This posturing leaves out the need for community relations.

There is another scenario to consider which is in contrast to the ordinary view, the so-called separation thesis. This is when businesses focus either on profits or social
concerns but not on both. This rises a question of debate that businesses can not only be profitable and ethical, but they should fulfill these obligations simultaneously. Can a business be profitable and disconnected from community? In today’s world, franchising brings business into a community while being completely detached from community needs.

The clear-cut separation of business from community raises the problem of coexisting within a harmonious environment. Even though a business may appear to be separated the burden of responsibilities still apply. The business provides a tax revenue as well as product, service and employment. There are interwoven responsibilities which represent the stimulus for economic considerations.

The social pressures imposed on today’s business are decreasing in importance, whereas economic and legal responsibilities are a requirement and ethical practices are vaguely expected, charitable contributions although desired, are completely voluntary.

A good business citizen, while striving to fulfill all its responsibilities, will actually apply
the necessary priorities to secure its status in the community.

Businesses have a responsibility that goes well beyond the demands of law and common morality. They set as examples of good moral judgment and community responsibility.

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