Role of Leaders in Shaping Organizational Culture

Management Principles

Organizational Culture – Development and Importance

Management Principles

Five Important Organizational Cultural Models

Management Principles

The Customer Satisfaction Model – Based on American Customer Satisfaction Index (ACSI)

Marketing Management

Rumours in Business Organizations

Business Communication

There’s No Such Thing as a Free Lunch – Discussion

Economists make a statement that there is nothing like free lunch and this is a fact. It should be known that this is a popular adage that has been used to communicate economic aspects for a long period of time. In this case, economists are just saying that it is literally impossible for an individual to get something for free without giving out anything. This means that you can not expect to get something for nothing. There has been an argument that this phrase is the core of economics which is undisputable. The whole issue of free lunch can be evaluated and looked at from different perspectives depending on the prevailing situation. For instance, we can look at this aspect from an opportunity cost point of view whereby an individual will be expected to trade off one thing for the other. This means that a decision has to be made as Continue reading

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Income and Substitution Effect Explained

Based on the law of demand, a change in price can be described in terms of income and substitution effect. The diagram presented below will be used to explain these effects. The two items that will be analyzed are commodity Y and X. According to the law of demand, a drop in the price of commodity Y will lead to an increase in quantity demand. The increase will cause the budget line to pivot from BC1 to BC2. Also, the indifference curve will shift from I1 to I2. This represents a movement to a higher indifference curve. The equilibrium position is the point of tangency between the budget line and the indifference curve. When the price of commodity Y falls, a consumer will be indifferent between consumption at point A and B because they lie on the same indifference curve. However, at point B, the consumer shall not have exploited Continue reading

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Legal Nature of Trademarks as a Form of Property

There are some laws governing trademarks which give it legal nature. A trademark is treated as an intellectual property. In fact, the law in the USA and other nations including Australia recognizes trademark as a form of property that ought to be guarded. The rights of ownership of the property can be established through registration of the symbol or mark in the patent office or through actual use in the market place. However, most jurisdictions do not recognize the legal ownership of a trademark if the ownership arises through use in the market rather than registration. In the event of infringement of rights associated with the same, the case will be treated on the basis of ‘first one to file.’ The process of registering a trade mark is similar to the process of property registration. This further reveals its legal and property nature. In the first place, the owner is supposed Continue reading

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Market Myopia – Meaning, Examples, and Avoidance 

The competitive market is an unstable and ever-evolving medium. Products change, companies rise and fall, and new trends and demands fluctuate from one point to another. In this environment, a business cannot allow itself to remain static unless it wants to be swept away by its competitors. Large companies have, arguably, an easier time facing the winds of business fortune. The big players tend to have resources, brand names, and teams of analysts and planners to prevent and predict every possible fluctuation of the market. Yet many large and successful companies have fallen victim to a trap known as market myopia. What Is Market Myopia? The concept of Market Myopia was first introduced in 1960 by Theodore C. Levitt, a professor of marketing at Harvard Business School. In his article, “Marketing Myopia,” published by Harvard Business Review, he described the mechanism of this faulty approach to marketing. Marketing Myopia is Continue reading

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Growth and Success of an Enterprise – Factors and Stages

There exists several factors which contribute to the growth and success of an enterprise and among the leading factors is the age of the firm. To explain why smaller and younger firms are likely to grow faster than old and large enterprises is explained in economics by the use of the concavity of the production function. Where at the start, the small capital invested has the capability of multiplying exponentially but as time moves on and new investments are injected in to the investment, the marginal rate of productivity of the invested capital declines and that explains the reason why young firms grow faster than old and already established enterprises. Although many experts indicate that as the firm ages the likelihood of it learning form its mistakes and thus succeeding are high, the multiplier effect of large business is low and this is a major contributor to the success of an Continue reading

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Digital Transformation – Definition, Types, Challenges, and Examples

Business performance improvement is a core goal of organizations. They develop core capabilities that drive a sustained transformation to achieve the set strategic objectives. Further, high-performance firms adopt policies for change management and adaptation to remain competitive in an unpredictable business environment. One capability that impact organizational performance is information technology (IT). Significant competitive gains are linked to superior IT resources that support digital business. Strategic integration of IT into organizational processes is seen as a way to promote greater digitization and transform a firm. IT-driven transformation encompasses the competitive capabilities drawn from information technology. The transformational potential of IT is seen in business processes, relations, consumer experience, clients, and disruption. Thus, a fundamental characteristic of digital transformation is the ability to change traditional models or confer new capabilities. The technologies should alter firm operations, support expansion to different markets or customers, and yield competitive gains. Conceptually, digital transformation encompasses Continue reading

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