Strains and Challenges Faced by Indian Banking Sector

Liberalization process has increasingly exposed Indian Industry to international competition and banking being a service industry is also not an exception. Banking Sector in India too faces same strains and challenges at local, national and international level. Indian Banks, functionally diverse and geographically widespread, have played a crucial role in the socio-economic progress of the country after independence. However, the growth led to strains in the operational efficiency of banks and the accumulation of non-performing assets (NPA’s) in their loan portfolios. Banks face increasing pressure to stand out from the crowd. On the Internet, this means offering your target customers an increasingly broader range of services than your competitors and that too in unique way. All this has resulted in a challenge to managers of banks to develop the right mix of acquired and internally grown IT applications which suits customer’s expectations. Banking sector reforms and liberalization process raised many Continue reading

Competitive Advantages of International Business

Competition has always been central to the agenda of firms. It has become one of the enduring themes of our times and the rising intensity of competition has continued until this day thereby spreading to more and more countries. As a result of globalization, most industries with the topics of international business and competitive advantage have received much attention from business executives, public policy makers and scholars in recent years. This; in conjunction with the rise of global competitors has helped to explain why a country’s competitive advantage can be determined by the strength of its business firms. This has resulted in numerous rankings, where industries and firms are compared on a global scale to see which are the most competitive. Most firms prefer to compete in the business environment so that it will help determine the competitive advantage of the country in which they operate. A firm’s ability to Continue reading

Foreign Capital

Foreign capital or investment has become significant part of sources of funding for various projects in every country. This source of funding has received the attention of both the government as well as the corporate sector that there has been increasing reliance on this source for planning and execution of projects by the government as well as the corporate sector. Foreign capital can come into a country in different forms. Let us first understand these forms of foreign capital before discussing the need for foreign capital. Forms of Foreign Capital Direct Entrepreneurial Investment: In this form of foreign capital, the foreign investors can start a company abroad mainly for the purpose of establishing its branches and subsidiaries in other countries. For instance an American business group may invest in a new project in India directly and start its own affiliate or branch or even a subsidiary. Sometimes, the investors abroad Continue reading

Computer Based Information Systems (CBIS) – Meaning and Types

Information needs for business managers tend to be similar for most businesses when one considers the same level of management. There are usually three levels of managers whose information needs are slightly different from each other. These include operational managers, middle managers, and executive or senior managers. Computer based information systems provide the information needed by the aforementioned categories of managers, which assists them in their work. The following are the information needs of the three categories of managers. Operational managers usually benefit from such systems by getting all the information related to the short-term or daily operations of the organization. For instance, the computer based information systems provides such managers with information related to attendance of employees, shifts of employees, and so forth. Such information helps operational managers make structured business decisions. On the other hand, middle management benefits from a computer based information systems by getting managerial or Continue reading

Evolution of Management Information System

There have been a lot of changes in the way in which information processing has come up. This change in information processing system can be seen from the point of view of the enabling technologies as well as the increasing demands of the information processing capabilities of organizations. In the past, small organizations were owned and operated by one man. The owner was both president and chief-executive who single handedly undertook all the functions required to operate the organization, including accounting, inventory control, public relations, research and so on. The owner personally gathered information necessary to carry out various functions, either using it as it was gathered or storing the information in his memory for later retrieval. Once a decision is made, the owner undertook the necessary action himself. For a small organization, the owner-oriented information system was often very efficient. For the owner himself, a highly integrated information system Continue reading

Strategies Adopted in Proxy Battles

To win over proxy wars (in the case of takeover bids), where the corporate board or equity holders meetings are exposed to proxy wars, the directors have to adopt strategies based on the steps given below: Collection of material information Construction of proxy fight team Mass contact with shareholders Board of Directors of a company while facing a takeover bid have to work hard to defeat such a bid. Therefore they should collect all possible information about the affairs of their own company, competitors, the takeover — bidder and the opponents. Particularly the management of a company with small holdings on their board face stiff problem. In that case the only remedy is to allow board members to increase shareholdings. To face the opponents, the board must use all the material information available for their defense. The proxy fight team includes experts and persons of experience to help the management Continue reading