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

Market Value Added (MVA)

Economic Value Added (EVA)  is aimed to be a measure of the wealth of shareholders. According to this theory, earning a return greater than the cost of capital increase value of company while earning less than the cost of capital decreases the value. For listed companies, Stewart defined another measure that assesses if the company has created shareholder value or not. If the total market value of a company is more than the amount of capital invested in it, the company has managed to create shareholder value. However, if market value is less than capital invested, the company has destroyed shareholder value. The difference between the company’s market value and book value is called Market Valued Added or MVA. From an investor’s point of view,  Market Value Added (MVA)  is the best final measure of a Company’s performance. Stewart states that MVA is a cumulative measure of corporate performance and Continue reading

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Introduction to Export Finance

Credit and finance is the life and blood of any business whether domestic or international. It is more important in the case of export transactions due to the prevalence of novel non-price competitive techniques encountered by exporters in various nations to enlarge their share of world markets. The selling techniques are no longer confined to mere quality; price or delivery schedules of the products but are extended to payment terms offered by exporters. Liberal payment terms usually score over the competitors not only of capital equipment but also of consumer goods. The payment terms however depend upon the availability of finance to exporters in relation to its quantum, cost and the period at pre-shipment and post-shipment stage. Production and manufacturing for substantial supplies for exports take time, in case finance is not available to exporter for production. They will not be in a position to book large export order if Continue reading

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Economic Value Added (EVA) and Shareholders Value Maximization

Almost in all books on financial management, the very first chapter introduces the fact that the goal of financial decisions is to maximize shareholder’s value. But why only shareholder’s value and what about others stakeholders like employees, customers, creditors? If one focuses on the shareholder value creation other stakeholder’s interests will automatically become the sub-goals and achieving these sub goals becomes crucial to the achievement of the overall goal i.e. shareholder value maximization. For example, the firm’s profit depends a lot on how the employees perform and to motivate them the firm needs to satisfy their needs and constantly upgrade their knowledge and skills by proper training. Similarly the firm would be required to pay its creditors on time so that they keep providing them credit whenever needed in the future and the credit availability does not hamper the operations of the firm. So a firm’s goal to maximize wealth Continue reading

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Balance Sheet – Explanation, Components and Analysis

Balance sheet is one of the most significant financial statements.   It indicates the financial condition or the state of affairs of a business at a particular moment of time.   More specifically, balance sheet contains information about resources and obligations of a business entity and about its owners’ interests in the business at a particular point of time. Thus, the balance sheet of a firm prepared on 31st December 2011 reveals the firm’s financial position on this specific date. In accounting’s terminology, balance sheet communicates information about assets, liabilities and owner’s equity for a business firm as on a specific date.   It provides a snapshot of the financial position of the firm at the close of the firm’s accounting period. Assets — Assets, representing economic resources, are the valuable possessions owned by the firm.   These possessions should be capable of being measured in monetary terms.   Assets Continue reading

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Effects of Self Reference Criterion in International Marketing

If you take a look around yourself you will find how many goods and services are solely produced in your own country around you? Your clothes might be produced in India, your cell phone from China, your computer in Taiwan; your Coffee might be from Latin America. Whatever we talk about music, clothes, movies or our soft drinks for everything there are good chances that most of these products are produced in somewhere else in the globe. This is the global market place where good price and quality is welcomed by consumers irrespective of the region of its origination. In this scenario the need is to adopt the marketing practices that are effective beyond the borders so the importance of international marketing cannot be denied. International marketing is not an easy task. The international marketer has to face many obstacles in the way to achieve his goals. One of the Continue reading

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Case Study on Business Ethics: Satyam Scam – Corporate Accounting Fraud

The Satyam scandal was a corporate fraud that primarily affected an Indian-based computer service company known as Satyam as well as other partnering companies. The scandal started in 1999 and erupted in 2009 after Merrill Lynch exposed Satyam’s illegal financial practices. Ramalinga Raju, the company’s chairman, corroborated the allegations by revealing that he had been manipulating financial accounts for many years. The scandal shocked the whole world because Satyam was renowned for its exceptional corporate governance. Moreover, the ethics of conducting business, as well as those of the accounting profession, were challenged. For instance, the reputation of PricewaterhouseCoopers was tarnished as it was Satyam’s official accounting firm. The firm was fined highly by the US Securities and Exchange Commission for engaging in unethical accounting practices, violating the code of conduct, and disregarding the auditing standards. The magnitude of the fraud contributed to its comparison to the Enron scandal. Both scandals Continue reading

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