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

Organizational Culture – Development and Importance

Management Principles

Deficit Financing – Meaning, Purposes and Limitations

Deficit financing is understood in different ways in different countries. It is understood as the excess of current expenditure over current revenue which is financed either through public borrowing or the creation of new money by the government. So the deficit budget is also called deficit financing in USA. But in India deficit financing is understood in a different way from deficit budget. While the former refers to a situation where the current expenditure exceeds current revenue of the government, the latter is taken to mean the excess of aggregate expenditure (both on current and capital accounts) over aggregate revenue. The former is called deficit budgeting and the latter deficit financing in India. Deficit financing  in Indian context refers to the meeting of budgetary deficit through the creation of new money adding to the existing money supply in the economy.  Deficit financing includes any or all of the following in Continue reading

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Government Policy Instruments for Managing Foreign Direct Investment (FDI)

By their choice of policies, home countries can both encourage and restrict FDI by local firms. We look at policies designed to encourage outward FDI first. These include foreign risk insurance, tax incentives, and political pressure. Then we will look at policies designed to restrict outward FDI. Home Country Policies to Encourage Outward FDI Many investor nations now have government backed insurance programs to cover major types of foreign investment risks. The types of risks insurable through these programs include risks of expropriation (nationalization), war losses and the inability to transfer profit back home. Such programs are particularly useful in encouraging firms to undertake investments in politically unstable countries. Home Country Policies to Restrict Outward FDI Virtually all investor countries, including the US, have tried to exercise some control over outward FDI from time to time. One common policy has been to limit capital outflows out of certain concern for Continue reading

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Boston Consulting Group(BCG) Growth-Share Matrix

The BCG matrix (aka B-Box, B.C.G. analysis, BCG-matrix, Boston Box, Boston Matrix, Boston Consulting Group analysis, portfolio diagram) is a chart that had been created by Bruce Henderson for the Boston Consulting Group in 1970 to help corporations with analyzing their business units or product lines. This helps the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis. Analysis of market performance by firms using its principles has called its usefulness into question, and it has been removed from some major marketing textbooks. Boston Consulting Group (BCG) Matrix is a four celled matrix (a 2 * 2 matrix). It is the most renowned corporate portfolio analysis tool. It provides a graphic representation for an organization to examine different businesses in it’s portfolio on the basis of their related market share and industry growth rates. It is a two dimensional Continue reading

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Growth Strategies Followed by MNC’s

Growth is a way of life. Almost all organizations plan to expand.  This strategy is followed when an organization aims at higher growth by broadening its one or more of its business in terms of their respective customer groups, customers functions, and alternative technologies singly or jointly — in order to improve its overall performance. There are four types of expansion (Growth) strategies Expansion through concentration Expansion through integration Expansion through diversification Expansion through cooperation 1. Expansion through concentration It involves converging resources in one or more of firms businesses in terms of their respective customer needs, customer functions, or alternative technologies either singly or jointly, in such a manner that it results in expansions. A firm that is familiar with an industry would naturally like to invest more in known business rather than unknown business. Concentration can be done through Market Penetration: It involves selling more products to the Continue reading

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Business Level or Generic or Competitive Strategies

Business level strategies are popularly known as generic or competitive strategies. Business level strategies are intended to create differences between the firm’s position relative to those of its rivals. To position itself, the firm must decide whether it intends to perform activities differently or to perform different activities as compared to its rivals. Michael Porter classified these strategies into overall cost leadership, differentiation and focus. The first two strategies are broader in concept as their competitive scope is wide enough whereas the third strategy i.e the focus strategy has a narrower competitive scope. The experience curve: Cost has been correlated with the accumulated experience by the experience curve.  The underlying principle behind the experience curve is that as total quantity of production of a standardized item is increased, its unit manufacturing cost decreases in   a systematic manner. The concept of the experience curve was presented by BCG in 1966 Continue reading

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Developing a Global Management Cadre

Global management of business is increasingly important to almost all business firms today as they extent their business operations globally. As the international business of a firm increases, the firms must be managed globally. This confronts managers with many new challenges, including coordinating production, sales, and financial operations on a worldwide basis. As a result, companies today have pressing international HR needs with respect to selecting, training, paying and repatriating global employees. Inter-country differences affect a company’s HR management processes. Cultural factors suggest differences in values, attitudes, and therefore behaviors and reactions of people from country to country also change. Differences in economic and labor cost among countries are also important and will help to determine whether human resources emphasis should be on efficiency, commitment, or some other factors. Industrial relations between the worker, the union, and the employer influence the nature of a company’s specific HR policies from country Continue reading

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