Phases of Project Management Life Cycle

A project is a temporary endeavor undertaken to create a unique product or service. A project is temporary in that there is a defined start (the decision to proceed) and a defined end (the achievement of the goals and objectives). Ongoing business or maintenance operations are not projects. Energy conservation projects and process improvement efforts that result in better business processes or more efficient operations can be defined as projects. Projects usually include constraints and risks regarding cost, schedule or performance outcome. Project Management is the application of a collection of tools and techniques (such as the CPM and matrix organization) to direct the use of diverse resources toward the accomplishment of a unique, complex, one-time task within time, cost and quality constraints. Each task requires a particular mix of theses tools and techniques structured to fit the task environment and life cycle (from conception to completion) of the task. Continue reading

Trade Theory of Independence, Interdependence and Dependence

Independence — Interdependence — Dependence Theory of International Trade tries to read trade patterns and policies of countries based on their degree of independence or dependence or interdependence on rest of the world. See this is a continuum: Independence — Interdependence — Dependence. The polar extremes are Independence at one pole and Dependence at the other. Independence stops trade, while dependence boosts trade. Independence: Independence is being self-reliant. Well one cannot be self-reliant. Yet one country may choose to be independent and the cost of such obstinacy is self-denial of life’s luxuries, comforts and necessities that can be afforded without difficulty. It may be a government policy to remain independent. This austerity could cost the country heavily. Hence governments plan independence sans difficulty for citizens. Few countries in the world maintain a vast reserve of essential minerals and even don’t touch own oil fields, so that in future if foreign Continue reading

Competitive Analysis of DELL using Porter’s Five Forces Model

Dell Company was founded in 1984 by Michael Dell. It is the world’s largest  direct-sale computer vendor; Dell Inc. is now also the leading seller of computer systems in the  world, capturing a global market share of more than 15 percent. Dell markets desktop personal  computers, notebook computers, network servers, workstations, handheld computers, monitors,  printers, high-end storage products, and a variety of computer peripherals and software. In this article we  will use Porter’s Five Forces to analysis Dell’s great success in the industry. Force 1: The Degree of Rivalry The PC industry consists of a number of companies; hence the threat from industry competitors  is high. Due to the product being highly standardized and shifting costs between brands is low,  there is fierce competition which leads to lower margins and profitability in the market. The PC  industry can be described as a high competitive industry. For Dell the main competitors Continue reading

Working Capital Management – Definition, Significance, Objectives, and Importance

Working Capital is the part of the firm’s capital which is required for financing short term or current assets such as stock, receivables, marketable securities and cash. Money invested in these current assets keep revolving with relative rapidity and is being constantly converted into cash. These cash flows rotate again in exchange of other such assets. Working Capital is also called as “short term capital”. “Liquid Capital”, “Circulating or revolving capital”, The Working Capital management refers to management of the working capital or to be more precise the management of current assets and current liabilities. Working capital management is a very important to ensure that the company has enough funds to carry on with its day-to-day operations  smoothly. A business should not have a very long Cash Conversion Cycle. A cash Conversion Cycle measures the time period for which a firm will be deprived of funds if it increases its Continue reading

Advergaming – New Trend in Marketing Strategy

The question of what advergaming is can be approximated in different ways. In the manner of linguistic portmanteau it is of advertising and gaming. Technically, it is the practice of using video games to advertise a product, organization or viewpoint.   As a term, it was coined by Anthony Giallourakis. Later on it was mentioned by Wired’s “Jargon Watch” column in 2001. An advergame is an online video game that has brand related images and/or themes embedded within it. As marketers have begun to catch on to the idea, websites containing advergames have been published by a diverse variety of corporations and non-profit organizations. Besides the usages of product placement within a game, a more effective and innovative way of designing a game only for the purpose of advertising a brand or a product is recently being used by advertiser in order to reach to targets on an online platform. Continue reading

Reasons for Liquidity Fluctuations in Indian Banking System

Liquidity risk is inherent in bank’s core business because banking organizations employ a significant amount of leverage in their business activities and need to meet contractual obligations in order to maintain the confidence of customers and fund providers. The first step in measuring and managing liquidity risk is the identification of the most important sources of risk. In the Indian context of banking, unexpected liquidity fluctuations are driven mainly by the following items: Behavior of non-maturity deposits: A large fraction of deposits, in an Indian bank, consists of low-cost current and savings deposits which do not have any contractual maturity. Moreover, the depositor has the option to introduce or withdraw funds at any point of time. This makes the analysis of future cash inflows and outflows quite difficult. However, it is extremely crucial because the main reason for the closure of banks has been the inability to pay depositors on Continue reading