Date Tags business

The last Business Network we will consider is the network of finance houses of New York, London and Frankfurt that gained strength in the 20th century. With massive industrialization came the need for massive financing of the industry. At the same time, growing world trade needed the finance network to be global in nature. Imagine an oil trader in Singapore buying oil from a Russian producer and selling it to a buyer in China for use in Chinese automobiles. The trader has no way to ensure that the seller will deliver him exactly what he purports to offer and the buyer will pay for the oil on time - unless the modern finance house steps in with supply chain financing solutions such as a humble letter of credit. From such simple finance instruments, the modern world of commerce and industry finance has developed into complex and bespoke financial arrangements that suit the needs of investors, commerce, industry and speculators. Facilitating all these transactions, and keeping trust in the system, is a network of businesses involved in the business of finance. Without going into the history of the finance houses, such as Barings, Rothschild, JP Morgan and others, we will take the key lessons from the outstanding success of these Business Networks. Undoubtedly, the first reason for their success is the value they create for their customers, since no business can thrive for any length of time without that. This is underpinned by their ability to understand a diverse set of business circumstances that their own customers face and readily come up with flexible solutions to meet those circumstances. Ability to attract, train and retain talent is the key to understanding your customers. Patience, ability and willingness to shape legislature, ability to formulate and enforce a trust building mechanism in the network and a willingness to work through the ups and downs of the business cycles are some of the other drivers for success. A key feature enabling the success of this Business Network is an overwhelming practical nature of the participants without any dogmatic adherence to outdated ideas. To the extent this network retains its ethos of service and humility it will continue to prosper and retain its relevance in the coming era of simultaneous globalization and fragmentation.In 2012, when Facebook's IPO was being discussed in the press, a range of valuations were put forward by the experts - these ranged from about $50 billion to more than $100 billion. Most of the people in traditional businesses were stunned and asked how could a company with no products, no factories, no customers and no suppliers be valued more than companies such as Siemens, Nokia, US Steel or even a combination of these traditional, well-respected companies. The pundits declared the basis of valuation as the Network Effect and left it at that - leaving people to decipher what exactly the Network Effect is and exactly how it leads to a valuation of tens of billions of dollars. We will not justify or challenge the valuation of Facebook, mainly because we are not in the business of predicting the future. We are merely seeking to understand the present in order to move towards the future in a more confident manner; confidence, after all, is the effective basis of all action. Networks, of course, can be homogeneous networks of similar people, such as net savvy people with spare time and willingness to share their lives' details with others on Facebook (or similar social websites), or they can be heterogeneous networks of a multitude of suppliers around the world that provide a vast range of components and parts, such as those that go into manufacturing the Airbus A380. Networks can even be a combination of homogeneous entities and heterogeneous groups, or vice versa. This point should emphasize in the readers' minds that there is not one single kind of Network, and hence the characteristics of networks will vary accordingly. Getting your organisation listed in a business directory can help to boost your profile.