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

Case Study: The Enron Accounting Scandal

As 2002 began, energy trader Enron Corp. found itself at the center of one of corporate America’s biggest scandals. In less than a year, Enron had gone from being considered one of the most innovative companies of the late 20th century to being deemed a byword for corruption and mismanagement. Enron was formed in July 1985 when Texas-based Houston Natural Gas merged with InterNorth, a Nebraska-based natural gas company. In its first few years, the new company was simply a natural gas provider, but by 1989 it had begun trading natural gas commodities, and in 1994 it began trading electricity. The company introduced a number of revolutionary changes to energy trading, abetted by the changing nature of the energy markets, which were being deregulated in the 1990s and thus opening the door for new power traders and suppliers. Enron tailored electricity and natural gas contracts to reflect the cost of Continue reading

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Forms and Types of Business Entities

Business can be defined as an organization that provide goods and services to others, who want to do or need them, when people think of business careers, they have to think of job in large wealthy corporation, there are wide verity of career areas in business line. Business Entity is an organization that possesses a separate existence for tax purposes. Some types of business entities include corporations and foreign corporations, business trusts, limited liability companies, and limited partnerships The two basic types of business entities are sole proprietorship and partnerships. Sole Proprietorship Sole proprietorship type of business entity which legally has no separate existence from its owner. Limitations of liability enjoyed by a corporation and limited liability partnerships do not apply to sole proprietors. Also debts of the business are debts of the owner in the case of sole proprietorship type of business. A sole proprietorship essentially refers to a Continue reading

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Financial Problems after Mergers and Consolidation

After merger and consolidation the companies face a number of financial problems. The liquidity of the companies has to be established afresh. The merging and consolidating companies pursue their own financial policies when they are working independently. A number of adjustments are required to be made in financial planning and policies so that consolidated efforts may enable to improve short term and long term finances of the companies. Some of the financial problems of merging and consolidating companies are discussed as follow: Cash management. The Liquidity Problem is the usual problem faced by acquiring companies. Before merger and consolidation, the companies had their own method of payments, cash behavior pattern and arrangements with financial institutions. The cash pattern will have to be adjusted according to the present needs of the business. Credit policy. The credit policies of the companies are unified so that same term and conditions may be applied Continue reading

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Importance of Good Communication in Business

In the modern corporate world today, effective communication is vital in any type of businesses, because it builds a close interaction among each of the members from all the departments in an organization. It also can determine whether a business success or a business failure of the organization will be. Moreover, it does help the relationships to develop along good lines, and ensure that arguments and disagreements are kept to a minimum. For example, good communication skill is very important in partnership, so that the partners can avoid the problems of misunderstanding and petty quarrels. We can measure the importance of communication skills in business sector when we take a look at the job advertisement. Candidates with good communication skills seemed to be the single most repeated phrase in the job qualification requirement. And, the ability of good communication is also the most basic of job skills. There is almost Continue reading

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Decentralized Decision Making in Multinational Enterprises

Where does the decision making power in Multinational Enterprises (MNEs) rests? Is the decision power vested with the parent’s headquarters or with the subsidiary? Decisions made at the foreign-subsidiary level may be considered decentralized, while those made above the foreign-subsidiary level, that is the parent level, are considered centralized. The location of decision making power may vary within the same company over time as well as by product, function, and country. In addition, actual decision making is seldom as one-sided as it may appear. A manager who has decision-making authority may consult other managers before exercising that authority. Centralized decision making is a global strategy while decentralized decision making is a multi-domestic strategy. A combination of the two is called a transnational strategy. The reason for choosing one over the other is partly a function of companies’ attitudes. For example, an ethnocentric attitude would influence a company to develop competencies, Continue reading

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Capital Supply and International Financial Markets

Capital flows have  traditionally focused on the ‘demand side’ of emerging market financing by  examining current account balances, which are equal to the net external  financing needs of countries, and then seeking to identify ways in which these  financing needs could be met and on what terms. However, this approach  ignores trends in capital flows into and out of the major advanced economies,  which are the source of most cross-border capital and the main reason why  gross flows have risen so dramatically relative to net flows. These flows are  typically in a securitized form and, as such, are susceptible to trading in active  secondary markets. By one estimate, investors in the mature markets of  Europe, the United States and Japan have been accumulating securities issued  outside their own countries at the rate of about US$1 trillion a year (Smith  2000). This means that international capital flows are increasingly determined  by Continue reading

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