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

Non Performing Assets (NPA)

What is Non Performing Asset (NPA)? For a bank, an Non Performing Asset (NPA) or bad debt is usually a loan that is not producing income. Earlier it was largely applicable to businesses. But things have changed with banks widely extending consumer loans (home, car, personal and education, among others) and strict asset classification norms. If a borrower misses paying his equated monthly installment (EMI) for 90 days, the loan is considered bad, or an NPA. High NPAs are a sign of bad financial health. This has wide-ranging ramifications for a bank, especially in the stock market and money market. So, as soon as a debt goes bad, the banks want it either made better or taken out of their books. The Genesis (origin) of an NPA There are many reasons as to why a loan goes bad. For a business, it could be because it fails to take off. Continue reading

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Case Study of Kishore Biyani: India’s Retail King

Kishore Biyani’s saga starts with his family business in textiles, which he joined after graduating in commerce. In 1987, Biyani launched the first branded ready-made trousers brand known as Pantaloon through his company Pantaloon Fashions. The trousers were marketed through the Pantaloon Shoppe stores. By the time Pantaloon Fashions went public in 1992, it had 60 exclusive shops. Later, he started manufacturing garments under two more brands-John Miller and Bare. Despite pod products and competitive pricing, the business seemed unviable due to high distribution costs and margins. Therefore, in August 1997, Biyani decided to open his own store at Kolkata to market these brands. He was expecting to do business of around Rs 70 million in the first year, but beating all expectations, the store did a business of Rs 100 million. This experience was an eye-opener for Biyani, who came to know that Indian market is ‘under-retailed’. The year Continue reading

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Price to Cash Flow Ratio

Instead of Price Earning (P/E) Ratio many investment analysts prefer to look at price cash flow ratio. A Price to Cash Flow Ratio is measured as the company’s current stock price divided by its current annual cash flow per share. Price/Cash Flow Ratio = Price Per Share / (Cash Flow / Shares Outstanding) There are varieties of definitions of cash flow. In this context, the most famous measure is simply calculated as net income plus depreciation. Cash flow is usually reported in firm’s financial statement and labeled as cash flow from operations. The difference between cash and earnings is often confusing largely because the way standard accounting practice defines net income. Essentially net income is measured as incomes minus expenses. Obviously this is logical. However not all are actual cash expenses. The most important exception is depreciation. When a firm acquires a long-lived asset such as new factor facility, standard Continue reading

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Determinants of Job Stress

One major source of job stress is the job itself. The way the job is designed, the amount of time pressure an individual faces and the amount of expectations others have of a person at work can all lead to job stress. Interpersonal relationships are a second source of job stress. How much contact an individual has with coworkers and managers, how much time he or she deals with clients or consumers, and how pleasant those interactions are all influences of how much stress an individual experiences at work. Third source is problems in personal lives, which can spill over into the work environment, adding further tension to an already stressful work situation. Determinants of Job Stress Job Characteristics A major source of job stress is a person’s role in the organization. A role is simply the set of expectations that other people in the organization have for an individual, Continue reading

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Determinants of Job Satisfaction

Job satisfaction is a psychological aspect. It is an expression of feeling about the job. Job satisfaction is an attitude. It is a permanent impression formed about the job. Employees interact with people and other resources while working with the job. In the process, they experience positive or negative feelings about the job context and content. The concept of job satisfaction has gained importance ever since the human relations approach has become popular. Most Important Determinants of Job Satisfaction Job satisfaction is intangible and it is multi-variable. A number of factors influence job satisfaction of employees. They can be classified into two categories. They are organizational and personal variables. They are discussed below: Organizational Determinants: Employees spend most of the time in organizations. Therefore, a number of organizational factors determine job satisfaction of the employees. Organizations can increase job satisfaction by organizing and managing the organizational factors. Let us learn Continue reading

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Conventional/Traditional Approaches to Strategic Management

In any business venture, strategy is a vital factor for the efficient functioning, growth, development, continuity and success of a firm. It aims to achieve a set goal and embarks a direction for the future. Organizations require collaboration, cautious planning and the mindful implementation of planning. To maximize the effectiveness of strategies and to ensure the smooth functioning and success of the business, they have to be managed skillfully. So what is strategy? What role does strategic management play in this global economic world? The word “strategy” has been implicitly used in various ways even if it has been conventionally defined in only one. It is widely accepted that there is no single or universal definition of strategy, however the various descriptions of strategy allows people to maneuver and manipulate through this difficult pitch. Mintzberg(1994) defines strategy in 5 different ways. Plan – A consciously intended course of action to Continue reading

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