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

Dematerialization and Rematerialization in Commodity Markets

The Indian commodity futures market has grown exponentially in the recent times. With the increase in trade volume at the Commodity Exchanges; the need to have a vibrant and efficient settlement system was felt. This led to the concept of dematerialization of warehouse receipts. Demat of warehouse receipt eliminates the difficulties arising out of the use of physical warehouse receipts. Dematerialization refers to the process of conversion of the physical paper (i.e. share certificates, warehouse receipts, etc.) into the electronic balances. In this process the physical paper is destroyed and electronic balance is credited in the demat account owner of the physical document. The concept of demat has been in vogue in the securities market from the year 1996 with the setting up of the first depository i.e. National Securities Depository Limited (NSDL) to remove the difficulties arising out of the use of physical (paper) certificates for settlement of trades Continue reading

Abey Francis

Computer System – Concepts and Components

The Computer System Concept A computer is more than a high-powered collection of electronic devices performing a variety of information processing chores. A computer is a system, an interrelated combination of components that performs the basic system functions of input, processing, output, storage, and control, thus providing end users with a powerful information processing tool. Understanding the computer as a computer system is vital to the effective use and management of computers. A computer is system of hardware devices organized according to the following system functions. Input. The input devices of a computer system include keyboards, touch screens, pens, electronic mice, optical scanners, and so on. Processing. The central processing unit(CPU) is the main processing component of a computer system. (In microcomputers, it is the main microprocessor.) In particular, the electronic circuits of the arithmetic-logic unit one of the CPU’s major components, perform the arithmetic and logic functions required in Continue reading

Abey Francis

Procedure for finding an optimum solution for transportation problem

The basic steps of the transportation method are: 1. To set up the transportation table. 2. Examine whether total supply equals total demand. If not, introduce a dummy row/column having all its cost elements as zero and Supply/Demand as the (+ive) difference of supply and demand. 3. To find an initial basic feasible solution. An initial BFS for a TP with m sources and n destinations must include m+n—1 basic variables. This initial solution may or may not be optimal. Thus, the initial solution in the transportation method serves the same purpose as the initial solution in the simplex method. There are a few methods to find the initial solution. The widely used methods for finding a initial solution are: North West corner rule Row minima method Column minima method Matrix minima method (Lowest cost entry method) Vogel’s approximation method (unit cost penalty method) (VAM) 4. To obtain an optimal Continue reading

Abey Francis

Purchasing Power Parity (PPP) Theory of Exchange Rate

Purchasing Power Parity Theory (PPP) holds that the exchange rate between two currencies is determined by the relative purchasing power as reflected in the price levels expressed in domestic currencies in the two countries concerned. Changes in the exchange rate are explained by relative changes in the purchasing power of the currencies caused by inflation in the respective countries. The concept of Purchasing power parity theory (PPP) is traced to David Ricardo, but the credit for stating the law in an orderly manner is given to the Swedish economist Gustav Cassel who proposed it in 1918 as a basis for resumption for normal trade relations at the end of First World War. The  Purchasing Power Parity Theory is stated in two versions : The stronger absolute version of Purchasing Power Parity, and The diluted relative version of Purchasing Power Parity. Absolute Version of Purchasing Power Parity The absolute version of Continue reading

Abey Francis

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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