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

Elasticity of Demand – Factors, Types and Importance

Elasticity is a term that was initially developed by known economic scholar called Alfred Marshall, and has been since used in measuring the relationship that exists between product price and its quantity demanded. It typically followed the law of demand that states that the lower the price of goods and services, the higher the quantity that will be demanded of such goods and services i.e. it primarily explains only the actual directions of changes in the demand for the commodity, but not really explaining the extent of that change. A further development on these lapses led to the concept of elasticity of demands. In practical term, elasticity means the act of responsiveness. Meanwhile, elasticity of demand has been theoretically defined as the responsiveness of the actual quantity demanded of a product to the change in its actual price. Elasticity of demand could be defined as the measure of the degree Continue reading

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Fixed Capital – Meaning, Management and Affecting Factors

Fixed capital means the portion of the capital, which is meant for meeting the permanent or long-term needs of the business. In other words fixed capital is required for the acquisition of those assets that are to be used over a long period. So,  Fixed capital  is an alternative term for  fixed assets. Fixed capital is required for acquisition of the following assets: Tangible assets such as land, buildings, plant and machinery, furniture and fittings, etc. Intangible assets such as goodwill, patents, copyrights, promotion, cost, etc. It should be noted that the fixed assets  couldn’t  be withdrawn from the business without disturbing the normal working of the undertaking. It is, therefore, necessary that sufficient funds are raised for acquisition of fixed assets. These funds are required not only while establishing a new enterprise but also for expanding, diversifying and maintaining intact the existing enterprise. Assessment of Fixed Capital Requirements The Continue reading

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Hedging with Foreign Currency Futures

Exchange rates are quite volatile and unpredictable, it is possible that anticipated profit in foreign investment may be eliminated, rather even may incur loss. Thus, in order to hedge this foreign currency risk, the traders’ often use the currency futures. For example, a long hedge (i.e., buying currency futures contracts) will protect against a rise in a foreign currency value whereas a short hedge (i.e., selling currency futures contracts) will protect against a decline in a foreign currency’s value. It is noted that corporate profits are exposed to exchange rate risk in many situation. For example, if a trader is exporting or importing any particular product from other countries then he is exposed to foreign exchange risk. Similarly, if the firm is borrowing or lending or investing for short or long period from foreign countries, in all these situations, the firm’s profit will be affected by change in foreign exchange Continue reading

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Social Entrepreneurship and Commercial Entrepreneurship: Similarities and Differences

The vocabulary of “entrepreneur” originally came from French economics, which means someone undertakes a significant project or activity. Jean Baptiste Say indicates that entrepreneurs especially be used to describing venturesome individuals who advanced economic progress using new and better ways of doing things. Joseph Schumpeter identifies entrepreneurs are change agents in the economy, who drive the process of capitalism. Both Say and Schumpeter regard entrepreneurs as someone engaged in new, profit-seeking business ventures, through which serving its responsibilities. While contemporary management and business hold a broader view of entrepreneurs. According to Drucker, entrepreneurs are those who search for change, responds to it, and exploits it as an opportunity. Howard Stevenson says entrepreneurs do not only see and pursue opportunities but also have the capability to mobilize the resources of others to achieve their entrepreneurial goals. Thus, the definition of entrepreneurs is not limited to business start-ups, and it can be Continue reading

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Case Study: The Leveraged Buyout Deal of Tata & Tetley

The case ‘The Leveraged Buyout Deal of Tata & Tetley’ provides insights into the concept of Leveraged Buyout (LBO) and its use as a financial tool in acquisitions, with specific reference to Tata Tea’s takeover of global tea major Tetley. This deal which was the biggest ever cross-border acquisition, was also the first-ever successful leveraged buyout by any Indian company. The case examines the Tata Tea-Tetley deal in detail, explaining the process and the structure of the deal. The case helps them to understand the mechanism of LBO. Through the Tata-Tetley deal the case attempts to give students an understanding of the practical application of the concept. Leveraged Buyout Deal of Tata & Tetley In the summer of 2000, the Indian corporate fraternity was witness to a path breaking achievement, never heard of or seen before in the history of corporate India. In a landmark deal, heralding a new chapter Continue reading

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Case Study of Apple: Strategic Enablers and Barriers to Innovation

Apple generates ideas, manage innovation and then effectively diffuse the innovation. They generate ideas or search for opportunities by carrying out effective research and development, Apple has an innovation factory which carries out all experiments using the talented pool of people they have. It follows competition and tries to stay one step ahead of them. Effective linkages and networking is very important as valid information can be gained from them, so relations should be maintained with suppliers, dealers and other partners. Apple believes in learning and working in teams. Apple’s innovation is driven by external uncertainty and competition. Apple is also very effective in finding new market opportunities and reorganizing areas which were inefficient. It fills the gaps existing in the markets for example the gap of a product which was needed to fill the gap between a computer and a phone, so Apple came up with Ipad. Authority is Continue reading

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