ISBN 9780333934616,Global Business Management

Global Business Management





Macmillan India Limited

Publication Year 2011

ISBN 9780333934616

ISBN-10 033393461X


Number of Pages 452 Pages
Language (English)


Business is going global. Global business is an activity that crosses national borders. There is no dearth of definitions and descriptions of global business. Before we have a working definition of 'global business', we need to relook into the term 'business' itself . Business is a transaction; to be exact, it is an exchange transaction undertaken between buyers and sellers of goods and services or between the management and the union across the table on matters like wage negotiations, or between Industry and Government on matters of economic policy reforms. All such transactions involve considerable transaction costs. Both parties involved in the process of exchange (business) transaction want to minimize their costs and maximize their returns. This is the essence of business games they play, of the business strategy they plan, and of the business tactics they employ. Another view is that business is a transformation; it is an activity of transforming a set of inputs like men, materials, machines, etc., into a flow of output of goods and services, with the aim of maximizing the net value added (i.e. profit and some other kind of payoff like sales, quality, etc.). This process also involves an element of costs, especially transformation costs. All business organizations design their business structure and. System towards minimizing such transformation costs and maximizing thereby the relative payoff . At this stage, three observation-based propositions are in order. (a) Business, whether we view it as 'transaction' or 'transformation' is essentially an economic process. (b) Business firms are also essentially economic units engaged in economic activities of production and exchange, sale or purchase. (c) Business decision-making is also truly economic in nature because it involves an act of choice from among a set of alternative courses of action related to marketing, finance, personnel, technology, etc.