Matrix Organizational Structure – Definition, Types, Advantages, and Disadvantages

Organizational structure refers to a way in which an organization or a company arranges its employees and duties. It establishes hierarchy and line of authority. An organization should adopt a structure that is in agreement with its objectives and goals. Matrix organizational structure employs a multi-dimensional approach. It combines one or two of the other organizational structures. For example, it may combine bureaucratic organizational structure with functional organizational structure. This creates a dual reporting system in which people work together as a team while retaining a recognizable reporting system. Matrix structure creates teams of workers in an organization based on both the product and department or function. This enables the organization to maximize on the strengths of each employee while making up for their weaknesses. The teams work independently towards achieving a common goal. If a company produces two products for example, the practice is to departmentalize the production process of Continue reading

Publicity – Meaning, Areas and Vehicles

Public relations are often confused with publicity, which in simple terms mean making things public or bringing things to the public notice. Many tools including word of mouth to the mass media to advertising to the Internet are used for publicizing information. However, publicity is only one part of public relations. Many marketing experts put public relations under publicity. Thus, publicity is an important part of public relation. Many tools are used for publicizing information and facts. The major and most effective ones are the mass media. Publicity coverage could be in the form of news stories, news analyses, interviews, features, articles, and editorials in printed media and in news bulletins, interviews, discussions or special programmes on radio and television. Another form of publicity is the paid variety. This basically involves advertising for which the organization has to pay to the media for the amount of space and time. Yet Continue reading

Case Study: MNC Fast Food Chains Go ”Local”

After almost a decade in India, transnational fast food retail chains like KFC, McDonald’s, Domino’s, Pizza Hut and others are re-learning marketing lessons and segmenting their product portfolio to capture Indian consumers across diverse income levels and lifestyles. The strategy is an attempt by top food retailers to tone up profit margins with a multi-layered product portfolio that addresses the aspirational need of consumers willing to splurge while meeting the basic requirement at the bottom end. Retailers have intensified the localization of products to cater to the Indian demand of ‘your kind of place but our kind of food’ and wooing consumers to shift from the unorganized to organized outlets. Globally too, profit worries have led to food retailers moving away from a pure volume-focused strategy. “We have learnt that while Indian consumers like our ambience, the food has to meet their local tastes. A consumer in an urban setting Continue reading

Demutualization of Bombay Stock Exchange (BSE)

The change in the name of Asia’s oldest stock exchange, from the Stock Exchange, Mumbai to the Bombay Stock Exchange Ltd., (BSE Ltd.) is of more than cosmetic significance. Along with the change in name comes a new perspective, one brought about by a comprehensive change in its ownership and management. Until now, the BSE like most other exchanges in India was owned and managed by brokers, who also had the sole right to trade in the exchanges. Conflicts of interest were bound to arise in such situations. Until the advent of the National Stock Exchange in 1994, the BSE was India’s pre-eminent exchange, accounting for an overwhelmingly large proportion of the share market transactions of the country. Companies wherever located were advised to seek a listing of their shares on the BSE so that they could have access to its large reservoir of capital and investor base. Legally speaking, Continue reading

DuPont Analysis – Return on Equity (ROE) Analysis

Financial statement analysis is employed for a variety of reasons. Outside investors are seeking information as to the long run viability of a business and its prospects for providing an adequate return in consideration of the risks being taken. Creditors desire to know whether a potential borrower or customer can service loans being made. Internal analysts and management utilize financial statement analysis as a means to monitor the outcome of  policy decisions, predict future performance targets, develop investment strategies, and assess capital needs. As the role of the credit manager is  expanded cross-functionally, he or she may be required to answer the call to conduct financial statement analysis under any of these circumstances. The DuPont analysis is a useful tool in providing both an overview and a focus for such analysis. History of  DuPont Analysis The DuPont model of financial analysis was made by F. Donaldson Brown, an electrical engineer Continue reading

Recent Trends in Indian Banking Sector

Today, we are having a fairly well developed banking system with different classes of banks — public sector banks, foreign banks, private sector banks — both old and new generation, regional rural banks and co-operative banks with the Reserve Bank of India as the fountain Head of the system. In the banking field, there has been an unprecedented growth and diversification of banking industry has been so stupendous that it has no parallel in the annals of banking anywhere in the world. During the last 41 years since 1969, tremendous changes have taken place in the banking industry. The banks have shed their traditional functions and have been innovating, improving and coming out with new types of the services to cater to the emerging needs of their customers. Massive branch expansion in the rural and underdeveloped areas, mobilisation of savings and diversification of credit facilities to the either to neglected Continue reading