Family businesses in developed countries such as the U.S account for the 50% of the gross domestic product from small business to large corporations. However in the fortunes 500 companies list family businesses account for the 35% which shows that big family corporations rule the world. These family businesses are powerful and at the same time very complex that create both of them advantages and opportunities as well as challenges. The most important challenge is to effectively align the business system with the family system which it cannot come naturally. In the one hand we have the family which is driven by emotions and on the other hand the business that is driven by economics. The interaction of family cohesion and business achievement often creates outstanding business performance but at a cost. If there is lack of coordination, good things that benefit the business can damage the family and when Continue reading
General Business Articles
Scalable Reporting Definition, Benefits, and Best Practices
Often, the ever-changing dynamic world of business prompts businesses to adapt and overcome various challenges. One such emerging and indispensable tool in the modern business world is scalable reporting. In this article, we will delve deep into understanding what scalable reporting is, defining its scalability, and its benefits, and looking at some case studies. Furthermore, we will provide a discussion of the best practices for implementing scalable reporting in your business. Follow this link to get a comprehensive scalable reporting definition. Keep reading to find out more about this key business strategy tool. Understanding Scalable Reporting Scalable reporting is an emerging data analytics tool that has seen widespread acceptance in several sectors. As businesses expand, so do their data analytics requirements. Scalable reporting allows organizations to respond to such expansive data needs effectively. The mechanism behind scalable reporting involves increasing data handling capability without compromising performance. This technology ensures businesses can analyze an Continue reading
Role of Entrepreneurship in Economic Development
The entrepreneur who is a business leader looks for ideas and puts them into effect in fostering economic growth and development. Entrepreneurship is one of the most important inputs in the economic development of a country. The entrepreneur acts as a trigger head to give spark to economic activities by his entrepreneurial decisions. He plays a pivotal role not only in the development of industrial sector of a country but also in the development of farm and service sector. The major roles played by an entrepreneur in the economic development of an economy are discussed in a systematic and orderly manner as follows. Promotes Capital Formation: Entrepreneurs promote capital formation by mobilizing the idle savings of public. They employ their own as well as borrowed resources for setting up their enterprises. Such type of entrepreneurial activities leads to value addition and creation of wealth, which is very essential for the Continue reading
Enron Scandal – The Evolution of Business Ethics
Aristotle said, “The end and purpose of the polis is the good life”. Adam Smith categorized the good life in terms of material goods and intellectual and moral excellence’s of character. Smith in his The Wealth of Nations commented, “All for ourselves, and nothing for other people, seems, in every age of the world, to have been the vile maxim of the masters of mankind.” Ethical misconduct has become a key concern in business today. Ethics is the main area of corporate governance, and management must take responsibility for their actions on global community scale. Ethics in business and shareholders desires for profitability are not always put on the same pedestal, and it is the responsibility of the executive management to ensure ethics surpass profitability. The 2008 financial crisis initiated critics to inquire about the ethics of the executives who were put in charge of large financial institutions around the Continue reading
Exit Strategy in a Business Plan
A business plan is a written documentation of which describes the business, the objectives of the business, its strategies, the market of which the business is in and the financial forecasts. The business plan has many functions, from securing external funding to measuring the success with the business itself. It essential when starting up a business for a business to have a realistic working business plan. The last portion of any business plan is the exit strategy. It may seem strange to develop a strategy this soon to leave the business, but potential investors will want to know the long-term plans. The exit plans need to be clear in your own mind because they will dictate how you operate the company. For example, if it is your ultimate aim to get listed on the stock market, then you have to follow certain accounting regulations from day one. The sequence of Continue reading
Concept of Decisions and Decision Making Process in Crisis Management
External and Internal business environment have effects on business operations and various strategic decisions taken by organizations. If organizations are not aware about the change in business environment or if they fail to predict the change, it may create crisis for the organization. Decisions and decision-making process has important role in crisis management approach. According to Ducker “A decision is a judgment and choice between alternatives. It is rarely a choice between what is right or wrong, at best it is a choice between “almost right” and “probably wrong”- but more often choice between two courses of actions neither of which is probably more nearly right than the other” Decision-making is a dynamic process, a complex search of information, alternatives and choices. There are two approaches to modeling human decision-making; The Outcome Oriented Approach and the Process Oriented Approach. The Outcome Oriented Approach, based on the view that if one Continue reading