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

Integration of Blockchain and Enterprise Resource Planning Systems

Blockchain Technology As a way to increase data security for transaction, a new system that allows these transactions to occur automatically more securely and without an intermediary has been conceived. Blockchain or (Distributed Ledger Technology) was developed in the aftermath of the 2008 recession to deliver transparency, security, and efficiency in managing transactions between multiple parties. This concept is now being implemented or considered in many business models worldwide. What really is Blockchain? In its simplest form, Blockchain can be described as a private, secure network that uses cryptography to keep exchanges secure, provides a decentralized database, or digital ledger, of transactions that everyone on the network can see. This network is essentially a chain of computers that must all approve an exchange before it can be verified and recorded. Following figure illustrates the Basic Blockchain Process. One of the benefits of this system is that once a record is Continue reading

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Some Inhibiting Factors that Affect the Derivative Instruments

Though derivatives are very useful for managing various risks, there are certain inhibiting factors which stand in their way. They are as follows: (i.) Misconception of Derivatives: There is a wrong feeling that derivatives would bring in financial collapse. There is an enormous negative publicity in the wake of a few incidents of financial misadventure. For instance, Barings had its entire net worth wiped out as a result of its trading and options writing on the Nikkie index futures. There are some other similar incidents like this. To quote a few: Procter and Gamble, Indah Kiat, Showa Shell etc. However it must be understood that derivatives are not the root cause for all these troubles. Derivatives themselves cannot cause such mishaps. But, the improper handling of these instruments is the main cause for this and one can not simply blame derivatives for all these mishappenings. (ii.) Leveraging: One the important Continue reading

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Capital Gearing and It’s Significance

Definition of Capital Gearing The most important factor which must be taken into account by the promoters while drafting the financial plan of a company is capital gearing. Gearing means the ration of different types of securities to total capitalization. The term, when applied to the capital of a company, means the ratio of equity share capital to the total capital and is known as capital gear ratio or capital gearing. J. Batty defines the term ‘capital gearing’ as  “The relation of ordinary shares (equity shares) to preference share capital and loan capital is described as the capital gearing.” Thus the term capital gearing is used to indicate the relative proportion of fixed cost bearing securities such as preference shares and debentures to the ordinary share capital in the capital structure. Interest of equity share holders is represented by the amount of share capital plus retained earnings and undistributed profits. Continue reading

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Translation Exposure in Terms of Foreign Exchange Risk

Consolidation of financial statements, which involve foreign currency denominated assets and liabilities automatically, gives rise to translation exposure, sometimes termed as accounting exposure. Consolidation of foreign subsidiaries account into group financial statements denominated in home currency requires the application of a rate or rates of exchange to foreign subsidiaries accounts, in order that they may be translated into the parent currency. Both balance sheets and income statements must be consolidated and they both give rise to translation exposure. Translating foreign currency profit and loss accounts at either the average exchange rate during the accounting year or at the exchange rate at the end of the accounting year (both methods are currently permissible as per British accounting procedures) will mean that expected consolidated profit will vary as the average or that the expected closing rate changes. So the whole amount of profit earned in the foreign currency is exposed to translation Continue reading

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Reasoning in Artificial Intelligence

The reasoning is deemed as the key logical element that provides the ability for human interaction in a given social environment. The key aspect associated with reasoning is the fact that the perception of a given individual is based on the reasons derived from the facts that relative to the environment as interpreted by the individual involved. This makes it clear that in a computational environment involving electronic devices or machines, the ability of the machine to deliver a given reason depends on the extent to which the social environment is quantified as logical conclusions with the help of a reason or combination of reasons. The major aspect associated with reasoning is that in the case of human reasoning the reasoning is accompanied by introspection which allows the individual to interpret the reason through self-observation and reporting of consciousness. This naturally provides the ability to develop resilience to exceptional situations Continue reading

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Definition of Globalization – Stages of Globalization

A very commonly used term, globalization can mean different things to different people. At a broad level, globalization refers to the growing economic interdependence among countries, reflected in the increasing cross border flow of goods, services, capital and technical know how. At the level of a specific company, globalization  refers to the degree to which competitive position is determined by the ability to leverage physical and intangible resources and market opportunities across countries. “Globalization refers to the multiplicity of linkages and interconnections between the states and societies that make up the present world system. It describes the process by which events, decisions, and activities in one part of the world come to have significant consequences for individuals and communities in quite distant parts of the globe. Globalization has two distinct phenomena: scope (or stretching) and intensity (or deepening). On the one hand, it defines a set of processes which embrace Continue reading

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