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

Five Important Organizational Cultural Models

Management Principles

Industrial Distribution Channel

When a company or a manufacturer produces goods or services, it has the  immediate responsibility to distribute and sell them to the industrial and  institutional customers. The industrial customers generally constitute of  wholesalers, retailers, manufacturers, educational institutions, governments,  hospitals, public utilities, and other formal organizations. There are various  intermediaries who are involved in a distribution and selling process helping the  manufacturers to make their goods reach the end users. Thus, a network or  channel that helps to flow the goods from the producer to the consumer through  a set of interdependent organizations (intermediaries) is called distribution  channel or trade channel or marketing channel. Channels are the tools used by  management to move the goods from the place of production to the place of  consumption. In the progression, the title of goods gets transferred from sellers  to buyers. Industrial distribution is unique as there are several different methods of  channeling the Continue reading

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Consumer Decision Making Process

The five stages of the consumer decision making process include; Problem recognition, information search, information evaluation, purchase decision, and evaluation after purchase. This is just a general model of the consumer decision making process and it emphasizes that the buying decision making process starts before the actual purchase and continues even after the purchase. It also encourages the marketer to focus on the complete buying process and not just on the purchase decision. 1. Problem Recognition Consumers  recognize a problem as a need or want. Of course, the most frequent problem  occurs  when consumers realize they are out of the product. For example, when the gas tank gets near empty, or you run out of lunch meat for your  sandwiches, or when your car is due for  maintenance. Problem recognition also occurs when a consumer  receives  new information about a good,  service, or business. New fashions, for example, can make Continue reading

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Demutualization of stock exchanges

Demutualization refers to the conversion of an existing non-profit organization into a profits-oriented company. In other words, an association that is mutually owned by members converts itself into an organization that is owned by shareholders. The company can take different shapes and forms, that is, it could be either a listed or unlisted company which may be closely held or publicly held. Demutualization of stock exchanges involves the segregation of members’ right into distinct segments, viz. ownership rights and trading rights. It changes the relationship between members and the stock exchange. Members while retaining their trading rights acquire ownership rights in the stock exchange, which have a market value, and they also acquire the benefits of limited liability. The shareholders in a corporatized stock exchange may be a diverse group, as members may decide to retain their shares or to sell them. Demutualization however, does not insulate them from competition. Continue reading

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Introduction to Income Tax

The word tax was derived from the Latin word ‘taxore’ meaning to estimate, appreciate or value. Tax is a price which each citizen pays to the state to cover his share of the cost of the general public services which he will consume. It indirectly provides employment opportunities. Taxes are compulsory contributions imposed by the government on its citizens to meet its general expenses incurred for the common good, without any corresponding benefit to the tax payer. In 1860, the British government firstly introduced tax in India. The present law of income tax is contained in the income tax Act,1961 as amended up to date; the income tax rules 1962 as amended up to date and finance Act passed by the parliament every year. Income Tax Act came into force with effect from 1-4-1962 and extends to the whole of India. Assessee [Sec 2(7)] Assessee means a person by whom Continue reading

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Ethics of Whistleblowing in Business

Whistleblowing refers to the act of organization members, either former or current, disclosing information on illegal and unethical practices within the organization to parties internal or external to the organization, who can take action. It is becoming increasingly common as more and more employees speak out about their ethical concerns. It cannot be denied that whistleblowing is accompanied by a range of problems, for both the whistleblower and the organization. However, it can be argued that whistleblowing is an important and valid method of endeavoring to control possible unethical behavior by organizations, as well as helping to establish a level of social responsibility. For these reasons, it is important for society to maintain a level of support and encouragement towards whistleblowers, so that their often valuable contribution towards eliminating corporate wrongdoings can continue. Employees who discover apparent wrongdoing within an organization are faced with several options, each of which comprises Continue reading

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Resource Based View (RBV) of Competitive Advantage

Jay Barney’s approach is known as resource based view of competitive advantage operates on the assumptions that firms are heterogeneous in terms of their control of important strategic resources and that resources are not perfectly mobile between firms. Firm resources are defines as strengths that firms can use to conceive of and implement their strategies. Classifications of resources are physical capital resources, human capital resources and organisational capital resources. Physical technology, plant and equipment, geographic location and access to raw materials come under physical capital resources. Human capital resources are the training, experience, judgement, intelligence, relationships and insight of the individual managers and workers of the firm. Organisational capital resources include the formal reporting structure, the informal and formal planning, coordinating and controlling systems, the informal relations among groups within a firm and other agents in the firm’s environment. Summary of resource based view is that firm can only have Continue reading

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