Conversely, portfolio analysis is conducted at market level by evaluating the performance of a portfolio of stocks. Additionally, the purpose of portfolio analysis is to improve investments whereas SWOT analysis is used to enhance the performance of a business. Moreover, SWOT analysis are obtained through both quantitative and qualitative data and relies heavily on assumptions. On the other hand, portfolio analysis is strictly based on quantitative (financial and economic) data. Finally, SWOT analysis is mainly useful for generating strategic ideas for business growth and is used by most firms whereas portfolio analysis is only useful to businesses that own stock and have their own investments in other firms.
There are also others who prefer investing in distribution services. The types of business this venture capitalist invest in usually define their contribution to that business by the cycle of venture through its different stages of growth. This can be either initial financing, second stage, or leveraged level. Other venture capitalist has the preference of placing their investment during the startup level of a company where potential return on investment is probably high and so is the risk. Others prefer the second stage of a company growth for the purpose of expanding the venture or during the bridging level where they provide capital for the expansion of the business until it becomes a public company.
It should be catchy and have reasons as to why investing in such a venture would be profitable. Just like a business plan, the business case must have the purpose of the business. Since a business case is purposely addressed to an investor, it must contain the reasons as to why the investor ought to support the business. In addition, it should include the benefits and the costs incurred. A good business case should offer an alternative to the regular business.
In fact, the sole focus of this business is to improve the world condition and not to make profits, unlike other forms of business existing nowadays (Phillips, Lee, Ghobadian, O’Regan, & James, 2015). Since the kind of entrepreneurship is not focused on financial gains, the entrepreneur is not keen to make sufficient incomes through such activities as
1.1 What is Venture Capital? Venture capital is a segment of private equity industry, which focuses on early-stage, high-potential, start-up companies. The venture capital fund earns money by owning equity in the companies it invests in, which usually have a new technology or business in high technology industries, such as biotechnology and IT, however with high risk. Funds are typically established as limited partnerships, which is a contract between institutional investors who become limited partners and the fund manager. The basic intermediation structure of venture capital and private equity funds is graphically summarized in Figure 1.
The main change faced by researchers is the relatively few studies conducted on capital structure determinants in the GCC. Another is that countries in the GCC operate in a tax free environment. This eliminates the tax free advantage in determining capital structure as pointed out in the trade off theory (Hait, 2012). Apart from the tax free environment, firms operate in an environment that makes them unique from other emerging markets. For example, capital markets are less developed than other emerging markets (Bley and Chen, 2006).
Some people blamed it on the lack of independence of the boards; but it was not true on all counts, with board makeup being generally the same for both failed and successful companies (read well managed companies). While board independence is generally accepted as good practice, it is Marico which makes it effective by
I wanted to find ways that can assist argue CSI beyond the sublime PR speak; “cause related” marketing and reputation management jargon. Through some of the research that I conducted for the MC report I discovered work that sparked further interest into the area of corporate social investment and the broader corporate social responsibility. One of the readings was on the concept of Shared Value (Michael Porter and Kramer, 2011). Porter and Kramer highlight the creation of “shared value” by companies through linking their CSR and competitive advantage. The concept is premised around the belief that the competitiveness of a company and health of the communities in which it operates are mutually dependent.
The first states that small businesses are the backbone of the American economy because they strengthen communal unity and the second states they are not because they do not promote virtue or economic growth. Nevertheless, the benefits from each argument are not mutually exclusive. Aristotle would likely conclude that small businesses are an important part of the American economy – but not the backbone. When considering the golden mean, an excessive focus on small businesses leads to a lack of growth and virtue in the economy whereas disregarding small businesses altogether would mean risking weakening communal ties and how invested the American people feel in the
In India too, the private sector could play a key role in dealing with these issues through innovative models supported by an enabling regulatory framework and environment. The private sector can be expected to play an instrumental role in the achievement of these outcomes through the creation of knowledge networks, research and innovation centers, corporate-backed institutions, and support for faculty development”. Hitherto, the private sector has played an important role in the growth of the higher education sector, especially in professional disciplines such as engineering and management. High potential demand for higher education and insufficient government spend on capacity creation are expected to result in a substantial infrastructure and investment deficit. In this backdrop, the role of the private sector has assumed increased opportunity for private sector players.