WEDNESDAY, MAY 13, 2009

IMF and its objectives, functions and membership

What is IMF ?
IMF is UNO recognized international monetary fund or reserve which helps its
members. It established in 1946 after bretton wood meeting. It has 185
members across the all nations but soviet Russia and its member are not linked
with IMF.
All work is done by its board of directors which is made by board of governors.
Every countrys finance minister is as the governor from his respective country.
There are two type directors in board of directors of IMF. One is quota and
other is non quota. USA, UK, Germany and India are quota country and one
member is taken in board of directors and other from non quota countries. Total
no. of directors are 20.

Objective and functions of IMF
1. Provide loan to the members for removing unfavorable balance of payment.
2. Determine the value of currency of member countries.
3. Determine the economic policies main contents of members countries.
4. To make plan for increasing per capita income of member countries.
5. To collect money from member countries in the form of fun or reserves.
6. Latest objective in IMF is that it will support 3 trillion dollars under his budget for decreasing the pressure of 2000 recession.

Eligibility for membership in IMF

Any country can become the member of IMF but for getting eligibility the
following procedure is adopted by IMF.

First of all membership is accepted by board of directors after accepting
membership , board of directors send this proposal to board of governors with
supported all documents and subscription and quota amount as per the terms of
membership .



World bank or IBRD
World Bank is international financial institution for reconstruction and
development of member countries. So, its other name is international bank of
reconstruction and development (IBRD). This bank is established in 1944
after bretton woods meeting of 20 major countries. This bank provides long
term loan to its members and all work is done by executive directors which is
nominated by shareholders of member countries and board of governors.

Bank has own 20 billion dollar paid up capital. Bank provides loan but before
providing loan it sees the project and after accepting project, the loan is given
under strict terms and conditions of World Bank. In which includes the interest
on loan, commission and administration charges.


WTO and its functions and policies
Full form of WTO is world trade organisation . It is an international
organisation which established after conversion of GATT in 1995 . In 1944 ,
when bretton woods conference was completed . In that meeting leaders of
developed countries wanted to make international trade organisation but they
accepted only GATT's policies in 1948 . AfterUruguay discussion , all GATT
members included in WTO . Main objective of making WTO is to reduce
restrictions in international trade with more globalisation and liberalisation
policy.

Functions and policies of WTO
1. Reduction of the rate of Tariffs :
Tariffs means tax on imported goods . For developing international trade , it is
compulsory to all member countries to reduce 24 % to 30 % tariffs with in 6 to
10 years .
2. Reduction the subsidy to domestic trade
For more smooth competition , WTO has made rule to reduce the amount of
subsidy or other assistance which is given by govt. to their domestic industry .
3. TRIPS
Trips means trade and intellectual property rights . WTO has made some rules
for prohibiting piracy in intellectual property rights . All countries will have to
accept these trips .
4. Other GATT rules
Some of GATT rules will still apply
Social Responsibility of Business and Points in Favour and
Against of it
>> NOVEMBER 4, 2009
7 16 Share38

Meaning of Social Responsibility of Business


Social responsibility is the duty of businessman to help the society to solve its major problems .
Every enterprise is fully connected with society . He takes many things from society in the form of
raw material ,
work from employees and also pollute environment of society. After this , many social problems rise
due to pollution . So businessman's prime duty is to support in the form of plantation near the area
of factory providing free health facilities to employees and also donate some part of profit for welfare
of poor community to uplift them . These days trends shows that almost all companies are taken
steps for becoming responsible toward society .
Arguments in favour of social responsibility :-


1. To increase reputation of society :-


Businessman sells the goods to the customers and customers are the social person .If businessman
is responsible towards society , then he can increase his reputation in society . This is the one of
most important argument that after providing good quality of goods at lower price and providing
other free facilities to customers , business can grow his business.


2. Business legal obligations :-


Some law are made in India to reduce population . So businessman must follow these rules and
regulations and after this he can save from government penalties . According to this argument
businessman should come forward for doing social work. After this he can respect the law .


3. More Public expectation from business :-


In the modern time it may be argued that businessman should fulfil the expectation of public .
Businessman gets raw material from very low cost and after producing he sells at very high cost . So
it is the duty of businessman to share his some profit in the form of donation.


4. Business has useful resource


Many wise person from society gives argument that business has skill , experience and money
resources and innovation mind . If these resources are used to solve social problem , then society
can rich with in some year .


5. Better Environment from business


If a business gives good working condition to employee then it will provide better environment for
business . How will it possible.


Good facility in factory and provide high wages to labourer

will reduce the absenteeism

will reduce labourer turnover

will reduce labourer crime.


Argument against Social responsibility


1. Cost of social work


Business has already limited resource. So , if it is used in social work then business activity may slow
and business's expenses will increase and it will affected business inversely.


2. Businessman is not expert in social work :-


Businessman is not expert in social work . Because he has not done MSW . Master of social work is
higher qualification for doing social work and fulfilling social responsibility as social and moral agent .
So , without perfect knowledge , business should not do any social activity but concentrate only on
his business .


3. Social responsibility is not legal responsibility :-


Some businessman argue that social responsibility is not legal responsibility , no one pressure on
business man to give donation under any law .


4. International competition


One of important argument is given by Indian businessman that they have to face international
competition . After adopting some social responsibility , it will increase the prices of
their product and after competition our business will fail and foreign companies will win in
competition.


5. Ignore Business Aim :-


It is the duty of Govt. to do that social activities and if a businessman ignore his business aim and
start social activities , then after ignoring business aim businessman can succeed in business.


Conclusion


In very brief , we can give the conclusion of this debate that business should concentrate on
business activities but also do social activities which promote the business. He can give small
amount of donation and provide good services to employee and society .
business environment, mba first semster, society



New in Asian Development Bank
Asian development bank is established in 1966 under the direction of united nation economic
commission for Asia and for east . Its main objective is to help Asian countries . It provides loans to
Asian countries . From time to time , it also provides technical help to Asian countries . It also
establishes his good links with UNO , IMF and world bank for promoting developing activities in Asian
and east countries .

Membership


All members of UNECFAE are also members of ADB . At 2007 it has 67 members .


Capital of ADB


1. total capital is 7965.1 million dollars and its one half is paid up and other one half is called up
capital

2. It can also collect more capital by issuing new shares in world share market .


Organisation of Bank


1. Board of governers

2. Board of directors - total 10 directors board

3. president - elected for 5 years out of board of directors .


New Updates


In 1990 , Loan for protecting plants and forest is given by this bank




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What is ISO ? Explain its Standards ISO 9000 and ISO 14000 .
Discuss Its Objectives , working and Versions
>> NOVEMBER 28, 2009
1 10 Share37

The following contents are covered under Business Environment of MBA First semester


Meaning of ISO

ISO means international standard organisation . In business environment , ISO word is so famous
and International organisation provides standards to those business oraganisations who fulfill its
conditions . It has
authority to issue certificate of quality management and quality environment . There are large
numbers of business organisation who satisfy the conditions . They have ISO certificate .

ISO's official site is at the url http://www.iso.org/iso/home.htm


ISO (International Organization for Standardization) is the world's largest developer and publisher
of International Standards. This organisation has made by participation of all countries
.Its central secretariat is in Geneva , Switzerland .It is NGO which helps to promote business by
providing them solution of quality problems .

Meaning of ISO 9000

This is the latest version of International organisation for standardisation which gives to those
organisation who satisfy the following condition

1. It fulfills the quality requirements of customers .
2. It fulfills regulatory requirements .
3. Customers satisfaction
4. Continual improvement in quality management .
5. Records should show how and where raw materials and products were processed, to allow products
and problems to be traced to the source.
6. You need to test and document whether the product meets design requirements, regulatory
requirements and user needs.

Meaning of ISO 14000

ISO 14000 is standard certificate which gives to those business organisation who fulfill the conditions
relating to quality environment . Quality environments means all measure to protect the
environment from pollution .

Conditions

1. Company has minimized harmful effect on environment by proper control on waste and pollution.
2. Achieve improvement in its environment performance by planting the trees and other projects .
3. ISO 9000 and ISO 14000 are given after taking test of products who apply for same and ISO takes
also some fees for issuing the certificate . There is no guarantee , any quality of end products but
almost all ISO products are high quality .
4. The certificate will be for three years and after this product will again review for giving certificate .

Objectives of ISO 9000 and ISO 14000

1. To Increase the goodwill of company

Main objective of getting these standards is to increase the goodwill of company. Customer can
compare the quality of two companies , one is with ISO standard and other is without ISO standard .
Goodwill may be in form of increase in sale or more promotion of product of company.

2. Control on Quality

After getting ISO standards , company has to control on quality and it is the objective of ISO
standards . ISO standard 9000 controls product's quality and ISO 14000 controls environment
quality .

3. Revolution

After coming , ISO 9000 and ISO , 14000 companies have started to label the product by eco
labeling . Moreover awarness has come in the minds of company after ist ISO standard in 1987.

Working of ISO

ISO 9000 is more powerful tool to get confidence in market . Company can invite customers to
check the quality before purchasing the products. It will only possible after implement ISO 9000
standards . Every product's package is with ISO 9000 and customer can understand its value .

Version

1. ISO 9001 : 1987
2. ISO 9002 : 1987
3. ISO 9003: 1987
4. ISO 9000: 1987 , 1994 , 2000
5. ISO 9000 : 2008
6. ISO 9001 : 2008
ISO 14000 version

1. ISO 14000 family version
2. ISO 14001 : 2004 EMS
3. ISO 14020 ,14021 , 14022 , 14023 , 14024 , 14025
business environment, ISO, mba first semester




at 2:28 AM
Labels: business environment, ISO, mba first semester
2 comments:
Bana, December 1, 2010 1:10 AM
Hi

I like this post:

You create good material for community.

Please keep posting.

Let me introduce other material that may be good for net community.

Source: ISO 9001 2008 standard

Best rgs
Peter
Anonymous, May 21, 2011 5:04 AM
very informative material
Post a Comm
Definition of Development Bank



A development bank is a financial institution which provides loan and other financial assistance to
businessmen for development of enterprise .


Features of Development Bank


1. Providing loan for development of business of enterprise .
2. Loan is given on project basis not on the basis of security .
3. It provides loan at cheap rate of interest .
Functions of Development Bank

1. Providing loan at cheap rate

Development bank takes interest at very low rate and from time to time , they issue new scheme of
loan in which rate of interest is very low .

2. Provide advice and guidance

Development bank provides advice to the businessman about which project is best . It is also
function of development bank is to guide to businessman about how to use the loan .

3. Providing facility of refinancing of Commercial banks

Large numbers of commercial bank gets the refinance facility from development bank. Refinance
means getting the finance for further distribution of loan to customer .

4. Providing underwriting services

These days development bank are also providing the facility of underwriting in which development
bank promises to sell all the shares of company . For these services development bank gets some
commission from companies .

Lending procedure of
Development bank

Step one

Checking the project

Customer wants to get the loan , he will apply for same . He will attach his project with his
application after this development bank will check the project . It will see the following points .

What amount of capital is investing by businessman .
Size of infrastructure .
What is the major transport facility for distribution of products .
Availability of raw material
After checking the above points development banks decides to give loan or not .

Step Second

Other Govt. formalities

Development bank also checks whether the customers has fulfilled all the formalities of govt. or not .
Whether he obtained license or not .

Step Third

Acceptance of loan :

If project is good and customers fulfills all the conditions of govt. , then development bank will
accept the project and issues the loan to customers bank account .

Step Fourth

Follow Up

After giving loan , development bank guides customers , how to use loan effective way for
achievement in project under follow up step .
business environment, debt, development bank, loan, mba + bank




at 12:50 AM
Labels: business environment, debt, development bank, loan, mba + bank
0 comments:
Post a Comment
FEMA 2000
>> NOVEMBER 23, 2009
8 22 Share79


Definition of FEMA 2000


FEMA 2000 means Foreign exchange management Act 2000. Foreign exchange management act
2000 is very helpful law for development of foreign exchange market in India. It was passed in 1999
and came into effect from June 1, 2000 to entire country. After this foreign exchange regulation act (
FERA ) 1973 was closed . FEMA was most suitable for India corporate sector instead of FERA
because almost all strict regulations of FERA were removed in FEMA .


Objectives of FEMA


1. Main objective of apply FEMA is to reduce the restriction on foreign exchange . Now , any offense
in foreign exchange will be civil offense not criminal offense .

2. This law's main objective is to increase the flow of foreign exchange in India. Now , under this law
, you can bring foreign currency in India without any legal barrier .


Provision /Rules / Regulation of FEMA


1. Provision regarding dealing in foreign exchange :-


According to section 3 of FEMA 2000 ," only authorized person under the govt. terms can deal in
foreign exchange in India . "


2. Provision regarding holding of foreign exchange :-


According to section 4 of FEMA 2000, " All persons which are provided authority only can hold or
purchase foreign exchange in India or outside India."


3.Provision regarding current account transactions :-


According to section 5 of FEMA 2000 ," There is no restriction regarding sale or deal foreign
exchange , if it is a current account transaction ."


The following transaction are deemed current account transactions under FEMA :-


a) Expenses in connection with foreign travel , education and medical care of parents , spouse and
children ( Any body now can send the foreign currency in India for above expenses under current
account )

b) Payment due as interest on loan

c) Payment due under short term loan for business .


4. Provision regarding capital account transactions :-


Under section six ," RBI will fix the limit of foreign exchange transactions relating to capital account
after discussion with Indian govt. "


RBI can restrict following :-


a) transfer of foreign security by Indian resident .

b) transfer of foreign security by Indian resident which is now outside India .

c) transfer of immovable property .


5. Provision regarding export of goods and services :-


According to section 7 of FEMA 2000 , " It is the duty of exporter to declare the true and correct
detail of goods which , he have to sell the market outside India and must send complete report to
RBI .


RBI can make particular requirement for any exporter .



RBI can also make rules and regulations for realization of amount earned from foreign country.


6. Provision regarding authorised persons :-


RBI can authorize any body who can deal in money exchange or off shore transaction and foreign
exchange .


He has to follow the rules and guidelines of RBI .
RBI can revoke the authorisation granted to any person at any time in public interest .
If authorized person will be done contravention the rules of RBI , he will be liable to pay up to Rs.
10000 penalty and Rs. 2000 for every day during which such contravention continue .

7. Provision regarding contravention and penalties :-

Section 13 to 15

If any body or person contravenes the rules and regulation of FEMA 2000 or RBI direction , he will be
liable to a penalty three times of sum involved in contravention .

If contravention will continue , then he will pay upto Rs. 5000 per day during the time of
contravention .

8. Provision regarding adjucation and appeal :-

According to section 18, " Central govt. can appoint adjudicating authority who can give the
punishment of civil imprisonment of maximum six months if case is less than one crore . If
demanded value is more than one crore then punishment of imprisonment may be of three years .
the person can appeal to special director against the decisions of adjudicating officer . He can also
appeal in appellate tribunal and also in high court with the sixty days of communication of order .
fema 2000, india, legal policy


Main Provisions of Competition Act 2002
>> NOVEMBER 17, 2009
3 18 Share75

In 1969 Govt. has passed an act and it had given the name monopoly and restrictive trade practices
(MRTP). It became popular with the name of MRTP 1969. This act has many provisions to control
the
monopoly and to promote the competition. It has defined RTP and also explained the powers of
MRTP commission. But its scope was very narrow and Govt. of India has made new act called
competition act 2002. On the place of MRTP ACT 1969 after this MRTP act 1969 was fully repealed.


Explanation of Competition Act 2002


Competition Act 2002 states that Indian traders must not do any activity for promoting monopoly. If
they will do any activity in the form of production, distribution, price fixation for increasing monopoly
and this will be against this act and will be void. This act is very helpful for increasing good
competition in Indian economy.

Under this act following are restricted practice and these practices are stopped by this act.

1. Price fixing:-

If two or more supplier fixes the same price for supply the goods then it will be restricted practice.

2. Bid ragging:-

If two or more supplier exchange sensitive information of bid, then it will also be restricted practice
and against competition.

3. Re-sale price fixation:-

If a producer sells the goods to the distributors on the condition that he will not sell any other price
which is not fixed by producer.

4. Exclusive dealing:-

This is also restricted practice. If a distributor purchases the goods on the condition that supplier will
not supply the goods any other distributor.

Above all activities promote monopoly so under competition act these are void and action of
competition commission will not entertain by civil court.

Establishment of Competition Commission Under this law

Govt. of India appoints the chairman and other member of competition commission. Competition act
2002 gives the rules and regulation regarding establishment and functions of this commission.

Qualification of chairperson of Competition commission:-

He or she should be Judge of high court + 15 years or more experience in the field of international
trade , commerce , economics , law , finance , business and industry .

Function of Competition commission:-

1. To stop activity and practice which are promoting monopoly.
2. To promote the competition.
3. To protect the interest of consumers.

Conclusion:-

India is doing all work for safeguarding the interest of consumer and this law is one of the important
pillar in this way.
business environment, competition act 2002, legal policy, mba first semster, mrtp 1969





at 11:07 PM
TUESDAY, MAY 5, 2009
The Consumer Protection Act 1986 and its main provisions and
features
Govt of India has made consumer protection act in
1986. The main aim is to protect consumers from
immoral practice of business organizations. We see in
general when a company or business concern becomes
monopolize in market , then that company starts to get
benefits of his monopoly powers by illegal ways. This
law is very helpful to secure consumers and customers
from such cheating and market frauds.

Main features of Consumer protect Act 1986

Under this act, consumers have right to get information
of quality, quantity and price of products.
Under this act, consumer has power to sue in district forum and report or complaint against the
cheating of businessmen to the authorities and get remedies for this.
This act also awakes consumers regarding their rights and powers. In other words, it helps to
educate consumers about his rights.
After spending one decade this act becomes more strict for all cheaters who commit cheating with
consumers.

Main authorities
under Consumer
protect act 1986

District forum

This forum has power to solve
the problems of consumers up
to Rs. 500000 at district level.
State govt. has power to make
suitable numbers of district
forum for protecting the rights
of consumers.
This forum can be made by district judge and other experienced persons in the field of law and
commerce.

State commission

Consumer can also appeal to state commission against the decisions of district forum. State
commission has power to solve the problems of consumers from Rs. 500000 to Rs. 2000000. This
commission can be made by state high court judges and 2 experts in the field of commerce and
laws.


National Commission


National commission has power to solve all consumers disputes and problems more than 2000000
Rs. The chairperson of this commission will be the retired Supreme Court judges and other 4 experts
in the field of commerce and laws and industry. Out of four, it is necessary to include one lady
member in the four expert team.


Tags: Business , UGC NET Commerce

Role of SEBI in Indian Capital Market
>> MAY 25, 2010


SEBI is regulator to control Indian capital market. Since its establishment in 1992, it is doing hard
work for protecting the interests of Indian investors. SEBI gets education from past cheating with
naive investors of India. Now, SEBI is more strict with those who commit frauds in capital market.
The role of security exchange board of India (SEBI) in regulating Indian capital market is very
important because government of India can only open or take decision to open new stock exchange
in India after getting advice from SEBI.

If SEBI thinks that it will be against its rules and regulations, SEBI can ban on any stock exchange to
trade in shares and stocks.

Now, we explain role of SEBI in regulating Indian Capital Market more deeply with following points:

1. Power to make rules for controlling stock exchange :

SEBI has power to make new rules for controlling stock exchange in India. For example, SEBI fixed
the time of trading 9 AM and 5 PM in stock market.

2. To provide license to dealers and brokers :

SEBI has power to provide license to dealers and brokers of capital market. If SEBI sees that any
financial product is of capital nature, then SEBI can also control to that product and its dealers. One
of main example is ULIPs case. SEBI said, " It is just like mutual fundsand all banks and financial
and insurance companies who want to issue it, must take permission from SEBI."

3. To Stop fraud in Capital Market :

SEBI has many powers for stopping fraud in capital market.


It can ban on the trading of those brokers who are involved in fraudulent and unfair trade practices
relating to stock market.

It can impose the penalties on capital market intermediaries if they involve in insider trading.

4. To Control the Merge, Acquisition and Takeover the companies :

Many big companies in India want to create monopoly in capital market. So, these companies buy all
other companies or deal of merging. SEBI sees whether this merge or acquisition is for development
of business or to harm capital market.

5. To audit the performance of stock market :

SEBI uses his powers to audit the performance of different Indian stock exchange for bringing
transparency in the working of stock exchanges.

6. To make new rules on carry - forward transactions :


Share trading transactions carry forward can not exceed 25% of broker's total transactions.

90 day limit for carry forward.


7. To create relationship with ICAI :

ICAI is the authority for making new auditors of companies. SEBI creates good relationship with ICAI
for bringing more transparency in the auditing work of company accounts because audited financial
statements are mirror to see the real face of company and after this investors can decide to invest or
not to invest. Moreover, investors of India can easily trust on audited financial reports. After Satyam
Scam, SEBI is investigating with ICAI, whether CAs are doing their duty by ethical way or not.

8. Introduction of derivative contracts on Volatility Index :

For reducing the risk of investors, SEBI has now been decided to permit Stock Exchanges to
introduce derivative contracts on Volatility Index, subject to the condition that;

a. The underlying Volatility Index has a track record of at least one year.

b. The Exchange has in place the appropriate risk management framework for such derivative
contracts.

2. Before introduction of such contracts, the Stock Exchanges shall submit the following:

i. Contract specifications

ii. Position and Exercise Limits

iii. Margins

iv. The economic purpose it is intended to serve

v. Likely contribution to market development

vi. The safeguards and the risk protection mechanism adopted by the exchange to ensure market
integrity, protection of investors and smooth and orderly trading.

vii. The infrastructure of the exchange and the surveillance system to effectively monitor trading in
such contracts, and

viii. Details of settlement procedures & systems

ix. Details of back testing of the margin calculation for a period of one year considering a call and a
put option on the underlying with a delta of 0.25 & -0.25 respectively and actual value of the
underlying. Link

9. To Require report of Portfolio Management Activities :

SEBI has also power to require report of portfolio management to check the capital market
performance. Recently, SEBI sent the letter to all Registered Portfolio Managers of India for
demanding report.

10. To educate the investors :

Time to time, SEBI arranges scheduled workshops to educate the investors. On 22 may 2010 SEBI
imposed workshop. If you are investor, you can get education through SEBI leaders by getting
update information on this page.




This question for UGC NET Commerce is most important because ,
first it covers total them of business environment book at post
graduate level and second , if you search it on google , you will got
1610000 results on google . Because approximate every finance
publisher has written this concept in their site and blog and also
this matter is discuss in every net forum . So , please understand
these element clearly and I have also upload one docs presentation
of element of business environment . So , also watch and
understand it .


Main Elements or factors of Business Environment


A Micro business Environment:

This is also known as internal business environment because business has power to control them. In
this environment, factors can be divided with following way.

1st Supplier

A supplier provides raw material to business. This is also main factor of business environment
because, it affects business very closely. If supplier delay to supply raw material or stop to supply.
At this time production of business can be stopped due to not getting raw material. So, for
controlling this factor, it is the duty of businessman to make good relation with more than one
supplier so that, if one stop or delay at this time, goods can be purchased from other supplier.

2nd Customers

Customers are those people or companies which buy goods from our business. Business sells them
his finished product. But time to time tastes of customers also change. So, according to the taste of
business customers, new products must be supplied by business. That is the formula for living long
life of business.

3rd Market Intermediaries

For promoting sale, it is required to ads by different way, so market intermediaries include sales
man and middle man.
This environment is under control of business because, if business starts selling with more ads, his
selling will surely increase.

4th Competitors

Competitors of business also create internal business environment. According to competitors,
policies, business changes his policies for winning in competition.

5th Financial Intermediaries

As business grows, it needs more money for his growth; either this money can be gotten by issuing
new shares or by borrowing money from financial intermediaries. So, financial intermediaries plays a
vital role in business environment. If they provides loan at very low rate, at that time business can
get and grow fastly but, if they increase in interest rate, at that time business will not get at this rate
and its growth may decrease due to lack of fund.


Macro Business Environment or External Factors of Business
Environment:-

1. Economical Environment

Economic environment is main element of business environment. Economy is factor which affects
business with following way:-



A) Economic policies

Economic policies related to budget , industrial policy , fiscal policy , export and import policy and
business should see what changes are done in these and business has to changes their business
policies according to these changes .



B) Economic regulation

Different laws and regulations are at international level and national level . These are all called
economic regulation and business has to respect all of these while it is operating business .

2. Natural Environment

Natural environment is also external factor of business . Because , business can not fully control on
natural environment . Many points like season , raining , floods , earth quake are natural and
happens according to fluctuation in it . These are also main element of business because business
has to face all these factors . But some of loss from these factors can be transferred with effective
schemes of insurance .


3. Demo graphic Factors




Size of population and their growth rate includes in demo graphic element and factor of business
environment. Increasing trend of population will increase demand of products and support business
to produce more products. But if death rate is increasing or demo graphic factor like religion are
preventing to use the products of business. At that time business has to change their business or
make other plans according to situation.

4. Technological Environment : -

This is fully concerned with changing of technology and its effect on product . Many technical
products are fastly changed by coming new technology .At that time business also have to cover new
products according to changes in technology .

5. Political Environment

Political environment is composition of three factors which are following
a) legislature
b) executive
c) judiciary

All above factor affects business and business has to make rules and regulation according to Govt.
and political rules and regulation.

6. International Environment

International environment includes WTO, IMF, WB, SARC and G20 meetings and their rules and
regulations can effect on any type of business. Business has to exist in world market, and then it
should understand their effect and take action according to these rules and regulation.
Watch also Presentation for clear the concept :


Technological Environment
>> NOVEMBER 7, 2009
23 43 Share218

Definition of Technological Environment :-


Technological Environment means the development in the field of technology which
affectsbusiness by new inventions of productions and other improvements in techniques to perform
the business
work. "

Explanation


We see that in 21st century, technology is changing fastly. Now, all work is done online and business
shops are using machinery at high level. There are following technological environment factors which
affects business.


New inventions to produce the products.

New inventions relating to marketing like BPO for selling online in international market.

Status of Technological Environment or Technology in India :-


After Independence, India had basic problems like poverty , unemployment and development of
India . Indian Govt. has taken many following steps for technological development.


1. Establishment of technological and research institute

Indian govt. has established 500 technological institutes for providing education to Indian students.
It has also established 1080 research institutes. In these institutes major names like space research
centre, medical research centre and agricultural research centre have developed India technically.


2. Positive Technical policy

India has strong and positive technical policy for technological development. This policy opens door
to import technology from foreign countries for increasing agricultural and industrial developments.


3. High Growth Rate of Information Technology in India


In India, IT sector is developing with 35% growth rate, India is second country after China who is
using internet at large scale for e-commerce , e-education and e-accounting .


4. Incentive for promoting Technology in India


Indian Govt. has given 100% income tax exemption for expenses incurred in research of
technology in India.

State financial corporation is uplifting domestic technology by supporting finance to domestic
Industries.
business environment, mba first semester, technology




at 2:28 AM
Labels: business environment, mba first semester, technology
1 comments:
, April 18, 2010 4:30 AM
hello Mr. Vinod
Nice blog as well as nice writting. I am happy knowing the all article. I want to be follower of ur
blog. Please add me.

Thanks N Regards
Vedika
Post a Comment
Post a Comment

Working of Stock Exchanges in India
>> JUNE 7, 2009

Indian stock exchanges are working
before independence of Indian after revaluation of industry in west, English investors started to deal
in shares in Indian stock exchanges since 1875. They started to deal first in Indias economic and
business center Bombay. For this they had established Bombay stock exchange in India in 1875 with
the name of The native share and stock brokers association . There were just 318 persons who
became members of this association.

Slowly the no. of members and trading in this stock market was increasing and in 1956, BSE became
reputed market after providing powers of capital market by passing securities contract(Regulation)
act1956 and also after making of new economic policies in 1991 by Dr. Manmohan Singh( slogan of
liberalisation , privatisation and globalisation ) .

No. of stock exchanges were increases and national stock exchange was also established in Mumbai
in 1993.

From 1875 to 1995 working of stock
exchanges in India was fully dependent on paper shares, debentures and bond. It means for
completing dealing physical delivery of shares was necessary.
But from 1995, online dealing in shares, created online stock markets in India. One side, we are
seeing the developments and progress in stock exchanges in India but other side after Harshad
Mehta scam, we watched downfall in the progress of stock exchanges in India. Harshad Mehta was
a player who rendered fraud in Indian stock market by including private bank in fraud scheme. He
dealt 200 million shares of 90 companies and millions of Dollars loss was suffered by small and
middle investors when scam was publicly opened and sensex dropped 570 points.
Govt. of India had taken good action for prohibiting such scams by establishing SEBI in 1992. This
board played a great role to develop and to secure the investors of India. After this India stock
exchange again because attraction point of international investors.
SEBI made rules in which all transactions will be settled on daily basis and there will be zero level
fraud and scam in stock exchanges in India.

Now stock exchange changes fully in India. For dealing in stock exchange, any person needs Demat
account and SBI and Karvi are working as online stock exchange broker in India .


Main benefit of e-stock exchanges that now NRI can sell and purchase without physical transferring
of shares , all dealing are taken place online and sale and purchase price of shares are transferred
by cheque or by e-banking facility .


This new form of stock exchanges in India opens new business in each and every home which is
connected with Internet.


Indian stock exchange trends are showing upward sensex from last 2008 when USA market fell due
to financial crisis but India saved easily from this crisis and a very small effect was on Indian stock
market .



Know more about OTCEI
>> JUNE 9, 2009

OTCEI is famous stock exchange which is founded and incorporated in 1990 in Mumbai under Indian
company act 1956s section 25. This stock exchange is allowed to all unlisted companies (Who is not
listed in BSE or NSE) to trade in shares and it provides more facility to companies to list in OTC
exchange of India. It is also the institute which provides the sources to the valuation of securities.
This stock exchange is also active in US by online system of buying and selling of shares and other
securities. It also provides the facility to NRI to invest their money in reputed companies under IPO
system. It is affiliated stock exchange under Securities contract act 1956. Presently 115 companies
are listed under OTC


OTCEI Motto

"To assist in efficient capital formation by developing a vibrant, dynamic and self-regulated capital
market conferring benefits to the investors, issuers, capital market and the nation at large."

Why is American Depository Receipt (ADR) Needed?
>> SEPTEMBER 24, 2009


American depository receipt is very important receipt. With its help, non USA companies can
purchase and sell shares in US stock and share markets. Thus, Investors of USA can buy the shares
of foreign companies without any problem of cross border or cross currency. It is more famous with
ADRs. All payment of price for getting ADR is in US dollars. Only after this receipt foreign company
can deal in USA share market.

Now, I will give you more important information regarding this:-
ADR can be issued by US depository banks like Citibank and Bank of New York Mellon.
American depository shares are called ADS.
It is just like licence to trade in USA stock exchange and this ADR can be gotten only by three levels.
Ist level ADR is very simple. Any foreign company who has English website in which it shows his
annual financial statements and also apply general conditions of Security exchange commission of
USA. But other two level ADR is more difficult because for getting these ADRs, Foreign companies
have to fill the form 20, accept all US GAAP and also accept all related conditions of SEC.

Measurement of Risk and Returns Securities and Portfolios
>> NOVEMBER 2, 2009


Aim

Aim of this topic is to make expert the students and investors in financial analysis.

Explanation : When a person starts his own work, then either he will get profit or loss and
this is not sure and the possibility of this uncertainty is called risk. Loss is one of major risk
of business and main motive of financial analysis is to reduce risk of loss. It is also
general rule higher risk and higher return but modern concept is just opposite this , it is
lower risk and higher profit. In financial market, Company issues and also invests in shares
and company
Measurement of Risk is with the help of financial mathematics and financial risk
management. Company uses modern portfolio theory for getting maximum return on
minimum risk.

Reasons of Risk

1. Some longer-term consequences of disasters
2. such as lawsuits
3. loss of market confidence and employee morale and impairment of brand names can
take a long time to play out

For this following procedure is adopted for making good Portfolios


1. Calculation the value at Risk

Risk of investment is measured on the basis of Standard deviation . It is variation of actual
and standard performance on the investment .

Prof. Razvan Pascalau, Univ. of Alabama has made simple online value at risk calculator
which is very helpful for investors



2. Calculation of portfolio

After calculation of Risk , we can make portfolio by applying mathematical formula .

Return is the weighted average of the risk free asset, f, and the risky portfolio, p, and is
therefore linear:




Since the asset is risk free, portfolio standard deviation is simply a function of the weight of
the risky portfolio in the position. This relationship is linear





http://www.riskwhoswho.com/Resources/WilfordSykes4.pdf
http://cbdd.wsu.edu/kewlcontent/cdoutput/TR505r/page36.htm
http://www.andreassteiner.net/performanceanalysis/?Risk_Measurement
http://en.wikipedia.org/wiki/Modern_portfolio_theory
http://en.wikipedia.org/wiki/Value_at_risk

Read Also above references for more deep study of measurement of risk and return
securities and portfolios .






SEARCH


National Stock Exchange (NSE ) - Backbone of Indian Capital
market
>> JUNE 8, 2009


NSE or National stock exchange is the largest stock exchange in the city Mumbai. It is the second
stock exchange in world whose growth rate is 16.6%. It was established as company in 1993 and in
1994 it converted as stock exchange where all type of investors can deal in shares and long term
loans.

It is also reputed place for whole debt trading (WDT). Capital market of Companies listed have
reached at $ 1.46 trillion. It means if we visualize this money, it is 10s power 12 ($
1,000,000,000,000) for 1 trillion and + 0.46 trillion also included one trillion. We can visualize this
amount in following picture when a man stand in the front of this amount , he looks like a small ball
. So , NSE is backbone of Indian companies' finance and capital market .





Trading time


Trading time in NSE is started from 09:55am and closed at 03:30pm. Saturdays and Sundays are
the holiday.



Educational Services


National stock exchange (NSE) is also operating educational services . It has started Certification in
Financial Markets


Updated position


According to Business Standard 04/06/09, NSE has gotten 26% 26 foreign direct investment (FDI).
That is good sign of the reputation of NSE. Thanks INDOLINK Consulting
There are also following top five companies who gain from this capital market in 8 June 2009 .




















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Labels: capital, finance, market, NSE, visualization
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>> JUNE 5, 2009

Security exchange board established in 1992 by passing the ordinance in the parliament of India.
Indias first law relating to control over security was Control Security issue act 1947 but, it was not
fulfilling the desires of Govt . and investors.
For securing the interests of Investors, SEBI has established by Central Govt. In India, now it is vital
authority to makes all rules and regulations relating to capital market. Main aim and objectives of
SEBI is to protect the money of investors from frauds in stock markets. A new investors can easily
cheated by expert brokers, So, SEBI knows this point and it has made very strict rules for ceasing
such cheating , frauds and malpractices .

SEBI never accepts any dodgy transaction which is done by any party in stock exchanges in India.
SEBI is the board which is operated by one chairperson and other members which are appointed
from following way.
One member is selected from the officers of ministry of finance.
One member is selected from the officers of ministry of law.
One member is selected from the office of RBI.
Other two members are selected by central Govt.

Powers of SEBI
1. To make rules and regulation for controlling the stock exchanges in India.
2. To educate brokers and investors.
3. To do amendments in the rules and regulations of stock exchanges in India.
4. To encourage investors of foreign to investment in India.
5. To safeguard the interests of investors.
6. To development the stock and share market in India.
7. To stop all fraud and malpractices in stock exchanges.
8. To reduce the fluctuations in the market prices of shares.
9. To create good relationships among the large numbers of brokers, finance agents and financers.
10. To provide license to brokers for activities in stock exchanges in India.










Definition of Economic Policies

All policies which are made for development of economy and its stability are called economic policies. Last
year economic crisis and after coming its main roots, economic
policies are become most important and every country makes its after deep research and analysis.



Followings are the main economic policies:-


1. Industrial Policies :-

Industrial policies are the one of the important part of economic policies. For working of industry in
peace environment, these policies are made. These policies may be different according to the size
and location of industry.

2. Trade Policies:-

Trade policy is relating to import and export of goods. Govt. makes trade policy for protecting
domestic industry by levying of tax on import.

3. Foreign exchange policy:-

It is also the part of economic policy. For exchanging the currency and better movement of
international capital, these policies are made in international capital market.

4. Foreign investment and technology policy:-

This policy is very helpful for getting large amount in form of foreign investment and high skill in
form of technology. Govt. makes this policy more liberalized to attract foreign investors.

5. Fiscal Policy:-

Fiscal policy is very advance tool to promote economy. Govt. can reduce the rate of indirect tax for
removing recession from country under fiscal measurements .


6. Monetary policy:-

Monetary Policy is made by central bank of any country. RBI uses several tools of monetary policy
like bank rate, open market operations and direct regulations.


Critical Role of Economic Policies:-


In India, there are approximate six economic policies and policies are so important for development
of India economy. But there are also many shortcomings, we can see in these , which we can explain
following way :-


Industrial policies affect on domestic industry adversely. Govt. promotes only big
companies.


Economic policies can be criticized that these are affected from world economy which can not
be controlled by govt.


Govt. has no direct control on monetary policies due to the control of RBI. So, it is less
represented by public.




SATURDAY, MAY 16, 2009
GATT and its functions and policies
In 1944 , developed countries participated in bretton woods meeting . In this
meeting they wanted to make international trade organisation but all countries
could not agree on its terms but 1948 , they had made a general agreement for
tariffs and trade after signing GATT in 1947 by 23 countries including India.
Now no. of member countries reached up to 184 .

Objectives and functions of GATT
1. Reduce international restriction
2. Reduce tax problems

1. Development in international trade
Policies of GATT
1. Non discrimination policy
2. No quantitative restrictions
3. Opinions
Information technology
From Wikipedia, the free encyclopedia
Information Technology (IT) is the branch of engineering that deals with the use of
computers to store, retrieve and transmit information.
[1]
The acquisition, processing,
storage and dissemination of vocal, pictorial, textual and numerical information by
a microelectronics-based combination of computing andtelecommunications are its main
fields.
[2]
The term in its modern sense first appeared in a 1958 article published in
the Harvard Business Review, in which authors Leavitt and Whisler commented that "the
new technology does not yet have a single established name. We shall call it information
technology (IT)."
[3]
Some of the modern and emerging fields of Information technology are
next generation web technologies,bioinformatics, cloud computing, global information
systems, large scale knowledge bases, etc. Advancements are mainly driven in the field
of computer science.
Contents
[hide]
1 Information
2 Technology
3 Technological capacity and growth
4 See also
5 References
6 Further reading
7 External links
[edit]Information
Main article: Information
The English word was apparently derived from the Latin stem (information-) of the
nominative (informatio): this noun is in its turn derived from the verb "informare" (to inform)
in the sense of "to give form to the mind", "to discipline", "to instruct", "to teach".
[edit]Technology
Main article: Technology


Information and communication technology spending in 2005
IT is the area of managing technology and spans a wide variety of areas that
include computer software,information systems,computer hardware,programming
languages but are not limited to things such as processes, and data constructs. In short,
anything that renders data, information or perceived knowledge in any visual format
whatsoever, via any multimedia distribution mechanism, is considered part of the IT
domain. IT provides businesses with four sets of core services to help execute the
business strategy: business process automation, providing information, connecting with
customers, and productivity tools.
IT professionals perform a variety of functions that range from installing applications to
designing complexcomputer networks and information databases. A few of the duties that
IT professionals perform may include data management, networking, engineering computer
hardware, server management, database and software design, as well as management
and administration of entire systems.
In the recent past, the Accreditation Board for Engineering and Technology and
the Association for Computing Machinery have collaborated to form accreditation and
curriculum standards
[4]
for degrees in Information Technology as a distinct field of study as
compared
[5]
to Computer Science and Information Systems today. SIGITE (Special Interest
Group for IT Education)
[6]
is the ACM working group for defining these standards. The
Worldwide IT services revenue totaled $763 billion in 2009.
[7]

[edit]Technological capacity and growth
Hilbert and Lopez
[8]
identify the exponential pace of technological change (a kind
of Moore's law): machines application-specific capacity to compute information per capita
has roughly doubled every 14 months between 1986-2007; the per capita capacity of the
worlds general-purpose computers has doubled every 18 months during the same two
decades; the global telecommunication capacity per capita doubled every 34 months; the
worlds storage capacity per capita required roughly 40 months to double (every 3 years);
and per capita broadcast information has doubled roughly every 12.3 years.
[

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