Case Study on Entrepreneurship: Larry Page

Business Analysis

The Boundaryless Career: Modern Contemperory Perspective on Career

Human Resource Management

Concepts of Throughput Accounting and Theory of Constraints

Financial Management

Kaizen – Understanding the Japanese Business Philosophy of Continuous Improvement

Operations Management

Role of Leaders in Shaping Organizational Culture

Management Principles

Dornbusch Exchange Rate Overshooting Model

The Dornbusch overshooting model, developed by Rudiger Dornbusch in 1976, is a theoretical framework used to explain the dynamics of exchange rates. It suggests that when there is a change in monetary policy or other economic factors, exchange rates overshoot their long-run capital flows before settling back to their equilibrium levels. The model helps explain the short-term volatility of exchange rates, which can have significant implications for international trade, investment, and capital flows. Assumptions of the Model: The Dornbusch overshooting model is based on several key assumptions. First, it assumes that prices and wages are sticky in the short run, meaning that they do not adjust immediately to changes in economic conditions. This is because many contracts, such as labor contracts and long-term supply contracts, are negotiated in advance and do not reflect current market conditions. As a result, changes in the money supply or other economic factors can lead Continue reading

Abey Francis

The Concept of Receivables

Accounts receivables (also properly termed as receivables) constitute a significant portion of the total currents assets of the business next after inventories. They are a direct consequences of “trade credit” which has become an essential marketing tool in modern business. When a firm sells goods for cash, payments are received immediately and, therefore, no receivables are credited. However, when a firm sells goods or services on credit, the payments are postponed to future dates and receivables are created. Usually, the credit sales are made on open account, which means that, no, formal acknowledgements of debt obligations are taken from the buyers.   The only documents evidencing the same are a purchase order, shipping invoice or even a billing statement. The policy of open account sales facilities business transactions and reduces to a great extent the paper work required in connection with credit sales. Meaning of Receivables Receivables are assets accounts Continue reading

Abey Francis

Management/Resolution of NPA’s: Legal and Regulatory Regime

A. Debt Recovery Tribunals DRTs were set up under the Recovery of Debts due to Banks and Financial Institutions Act, 1993. Under the Act, two types of Tribunals were set up i.e. Debt Recovery Tribunal (DRT) and Debt Recovery Appellate Tribunal (DRAT). The DRTs are vested with competence to entertain cases referred to them, by the banks and FIs for recovery of debts due to the same. The order passed by a DRT is appealable to the Appellate Tribunal but no appeal shall be entertained by the DRAT unless the applicant deposits 75% of the amount due from him as determined by it. However, the Affiliate Tribunal may, for reasons to be received in writing, waive or reduce the amount of such deposit. Advances of Rs. 1 million and above can be settled through DRT process. An important power conferred on the Tribunal is that of making an interim order Continue reading

Abey Francis

Formalization – Meaning, Advantages, and Disadvantages

Formalization is the process of creating structures that govern operations within an organization. In a formalized organization, work activities are often controlled by a set of accepted rules and procedures. In addition, a formalized structure has a hierarchical and clear reporting structure that runs from bottom to top. To a large extent therefore, a formalized organization is managed through several levels of supervision. The extent of formalization, however, varies from one organization to another and is mainly determined by the size of the organization. As opposed to informational organizational structures where individuals are esteemed higher than the job positions, a formal organizational structure is made up of rules that unmistakably state how work should be done at the various levels in the hierarchy. Since rules that guide the holder of a position are static, no confusion arises when the holder of the position changes. This thus implies that the transition Continue reading

Abey Francis

Optimum Level of Working Capital

A firm has to maintain an adequate level of working capital to run its operations smoothly and effectively. It should be adequate in the sense that it shall not be more than the requirements nor it shall be less than the requirements. Both the excessive as well as inadequate working capital positions are dangerous from the firm’s point view. We know that the current liabilities are met out of the current assets. So the level of current assets shall be sufficient enough to meet the current liabilities. Excessive working capital refers to the position where when the level of current assets is much higher to meet current liabilities. The excessive capital has opportunity cost for the firm, as this excessive capital remains idle in the firm, which earns no profit for the firm. If these funds shall be invested in some profitable project, it adds the profitability of the Company. Continue reading

Abey Francis

Increased Investment in Retailing

The prospects for significant modernization and development in retailing will depend on the nature of investment in this sector. The investment will be of two types-foreign and domestic. The quantum and nature of investment will depend on the factors outlined earlier namely economic development; civic situation; consumer needs; attitudes and behavior; and government policies. Although FDI is not yet permitted in retailing, a number of global retailers are testing the waters by signing technical agreements and franchises with Indian firms. Fast food chains like McDonald‘s and Pizza Hut are already operating in the metros. A Marks and Spencer store is already operational in Mumbai. Several global retailers are awaiting a change in policy. However, the development of the Indian retail sector is dependent not just on foreign investment but on Indian investment as well. Since the 1980s, industrial groups such as Reliance and Raymonds have been active in encouraging development Continue reading

Abey Francis