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

New Product Pricing Strategies

The new product may be either an entirely new one or it is one of the varieties of the existing products. If there are many substitutes for the new product in the market then competitive price will be charged. If the product is entirely new then through the process of trial and error the price will be fixed not only to cover the cost of production but also to cover the cost of promotional strategy. Two types of pricing methods are adopted in pricing of a new product. Skimming Price: In case of skimming price the producer makes an effort to fix the price in such a way to skim away the consumers’ surplus i.e. the firm learns about the maximum possible price which the consumer will be prepared to pay, rather than go without the commodity, and then quotes the price accordingly. This price may be much above the Continue reading

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Industrial Buying Process

In consumer marketing, consumers make buying decisions based on certain  mental stages such as need recognition, information search, evaluation, purchase  decision, and post-purchase  behavior. But, in industrial markets the buying  decision making process includes observable sequential stages involving many  people in the buying organisation. The understanding of these steps/phases of  buying-decision making is helpful to an industrial marketer to develop an  appropriate selling strategy. The purchasing activities of industrial buyers consist of various steps/phases in  buying decision making process. The importance of each step depends upon the  type of buying situation. The industrial marketers should understand both (step  in decision-making process and the type of buying situations) to market the product or service. In 1967, Robinson, Faris, and Wind developed a process  “buy-phases” having eight steps in buying-decision process in industrial market.  These phases or steps in industrial buying process  are elaborated as follows: 1. Recognition of Need of Industrial Continue reading

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Concept of Float in Cash Management

A cash manager, among other tasks, has to collect customers’ payments and concentrate them as well as managing the disbursements related to payments becoming due. In other words he manages the time line of short term cash flows and there under also those related to receivables. Connected with these activities there are often delays. In general a float represents a delay on the collection or on the disbursement of cash flow processes. Obviously, a cash manager’s target is to reduce delays in collections. Furthermore it is common practice that cash manager try also to maximize the float on disbursements within the credit terms agreed while exceeding these terms is, from an ethical point of view, questionable. In relation to either collections or disbursements these delays can be divided into four types or components. While a payment is made by check and sent by mail we know there is a time Continue reading

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The Purpose of Research

Research is the process of a systematic and in-depth study or search of any particular topic, subject or area of investigation, involving collection, compilation, presentation and interpretation of relevant details or data. It is a careful search or inquiry into any subject matter, which is an  endeavor  to discover to find out valuable facts which would be useful for solving problems or improving existing solutions to problems. The research that involves scientific analysis would result in the formulation of new theories, the discovery of new techniques, modification of old concepts or a knocking-off an existing theory, concept or technique. Research has proved to be a powerful tool in driving the mankind towards development. That is why, the terms Research and Development (R and D) are now used as twins as Research & Development (R&D). John W.Best observes that, “the secret of our development has been research pushing back the areas Continue reading

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Control Mechanisms for Multinational Enterprises

Controlling is tool for achieving organizational goals and activities. Control is management’s planning, implementation, evaluation, and correction of performance to ensure that the organization meets its objectives in the short, medium and long terms. In the case of Multinational Enterprises, the top management’s toughest challenge is to balance the company’s global needs with its need to adapt to country-level differences. Read:  Control in Multinational Enterprises Some of the mechanisms that Multinational Enterprises  use to help ensure that control is implemented are given below: 1. Corporate Culture Every company has certain common values that its employees share, expect fellow members to follow. Corporate culture is a form of implicit control mechanism that helps enforce the company’s explicit control mechanisms. Employees conform to company traditions of work commitment, interactions with customers and so on. These are unwritten, informal, but more effective. But MNEs have more difficulty relying on a corporate culture for Continue reading

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How to Manage Innovation?

When we think about innovation one question arises in the mind: Does the innovation come naturally? Or it may be taught. The answer is that everyone can be creative and innovative the only requirement is to encourage the innovation among people. Innovation is real work and it can & should be managed like any other corporate function but that does not mean it is the same as other business activities. Indeed, innovation is the work of knowing rather than doing. Buzz today is to encourage and manage innovation through innovation management. One strategy to build up an innovative organization is getting people to accept that the way they work just might not be the best. The most important thing is to help people broaden their perspective. Innovation is like a sky with horizons defined. These horizons can only be broaden through innovation. There is no agreed definition of Innovation Management. Continue reading

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