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

Liquidity – Meaning, Fundamentals, and Effects

Working capital is a term of liquidation as per the accountants. For them it is more important to ascertain if the company would be in a position to pay off its liabilities using its cash flows than to what level of current and non-current resources it holds. The disparity between current assets and current liabilities is therefore considered to be more important than the volume of the investment either in current assets or current liabilities. The success of the management of working capital ultimately depends on the optimal level of liquidity held by the organization. Higher level of liquidity has a bearing on the profitability of the firm whereas lower liquidity level can affect the operations of the firm. There are many factors that contribute to the changes in the level of liquidity but the changes in the composition of the working capital elements is probably the most significant among Continue reading

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Treasury Bills and Inflation Control

Treasury Inflation-Protected Securities (or TIPS) are the inflation-indexed bonds issued by the RBI Treasury. These securities were first issued in 1997. The principal is adjusted to the Consumer Price Index, the commonly used measure of inflation. The coupon rate  is constant, but generates a different amount of interest when multiplied by the inflation-adjusted principal, thus protecting the holder against inflation. TIPS are currently offered in 5-year, 7-year, 10-year and 20-year maturities. 30-year TIPS are no longer offered. In addition to their value for a borrower who desires protection against inflation, TIPS can also be a useful information source for policy makers: the interest-rate differential between TIPS and conventional  Treasury bonds is what borrowers are willing to give up in order to avoid inflation risk. Therefore, changes in this differential are usually taken to indicate that market expectations about inflation over the term of the bonds have changed. The interest payments Continue reading

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The Role of Government in a Market Economy

In a market economy, commerce and customers make a decision of their own decision what they will consume and manufacture, and in which conclusions on the allotment of those sources are without government interference. Hypothetically this denotes that the manufacturer is required to decide what to produce, how much to produce, what prices to set up for consumers for those productions, what to pay workers, and so on. These conclusions in a market financial system are impacted by the forces of competition, supply, and demand. This is frequently distinguished with a premeditated economy, where central government concludes what will be manufactured and in what amounts. A market economy is also compared with the mixed economy where there are market processes through the system of markets that is not completely free but under some state control that is not widespread enough to comprise a deliberate financial system. In reality, there is Continue reading

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Case Study: The Rise and Fall of Toys “R” Us

In 1948, Charles Lazarus founded Toys “R” Us as a children’s furnishing company. He used investments from savings and bank loans. In 1957, the organization founded its first formal toy shop, completely devoted to children’s toys, and became public in 1978. The firm had several conventional toy stores, shops focusing on baby commodities, over 100 children’s apparel stores, and various educational specialist stores. Nonetheless, the firm owned numerous toy shops in other international countries, led by Asian vendors. Toys “R” Us offered its items online via toysrus.com and other platforms, with online retailing performed through a partnership with Amazon. Inc. In 1982, the company expanded its product line by adding the Kids “R” Us and Babies “R” Us labels, bearing copyrights. These brands enjoyed tremendous development and became one of the most frequented sites for toys and children’s clothes. The company experienced robust achievements during its inception stages, and the Continue reading

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Business Strategy Case Study: Relaunch of Fiat 500

On 4th July 2007, Fiat Auto the Flagship division of Fabbrica Italiana Automobili Torino (FIAT) re-launched its heritage brand the Fiat 500. It was exactly 50yrs after the launch of Fiat 500 on 4th July 1957, which not only helped Fiat in post World War-II recovery but also provided mass motorization to Italians. Luca De Meo, CEO, Fiat Auto, on the re-launch occasion stated that “This is the car that gave ordinary Italians four wheels for the first time; that transformed a country and a company.” In its 18yrs of career between 1957 and 1975, 3,893,294 Fiat 500s were built & sold, which provided millions of Italians and Europeans individual mobility. Post 1970 with beginning of free trade in Europe, Fiat’s market share eroded continuously. Foreign companies such as Volkswagen, Renault, Ford, Peugeot, Honda and Toyota became prominent players in the Italian car market threatening survival of Fiat. The prime Continue reading

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SWOT Analysis of McDonald’s

McDonald’s today is one of the largest and the best known global food service retailer with more than 31,000 restaurants in 125 countries serving 49 million customers each day. McDonald’s serves more than one percent of the world’s population. McDonald’s outstanding brand recognition, experienced management, high quality food, advanced operational systems and unique global infrastructure ensure a position that enables them to capitalize on global opportunities. SWOT (Strength, Weaknesses, opportunities and threats) analysis provides a basis for crafting a strategy that capitalizes on the company’s resources, while taking advantage of the best opportunities, and defending against the threats to its well being. Strengths McDonald’s is the market leader in fast food franchise with huge customer base around the world. It has a strong global presence with its nearest domestic competitor being only half its size. Approximately 85% of McDonald’s businesses are owned by franchisee operating full time in more than Continue reading

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