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

Scientific Method in Business Research

The scientific method is a systematic method of investigation, evaluation, experimentation, interpretation and theorizing. It is characterized by critical discrimination generally and system, and empirical verification. Generally speaking, the scientific method is characterized by a systematic study, based on theory and facts, universality or generality, objectivity of observation, predictability of results, and verifiability of the phenomenon. It consists of a number of formalities and procedures, which are time consuming. Time management is the basic requirement for the success of managerial decisions. Many management problems require timely solutions and decisions. In such situations, the management may not have adequate time at its disposal to make use of scientific studies before arriving at decisions. Laboratory experiments occupy a prominent place in the scientific method, which may not be useful in many situations of managerial decision-making. Physical science phenomena may be subjected to laboratory tests and physical control. Most of the managerial policies Continue reading

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Modes of Transportation in Logistics

Transportation infrastructure in logistics consists of the rights-of-ways, vehicles, and carrier organizations that offer transportation services on a for-hire or internal basis. The nature of the infrastructure also determines a variety of legal and economic characteristics for each mode or multi-modal system. A mode identifies the basic transportation method or form. Rail Network Since olden times, railroads have handled the largest number of ton-miles. As a result of the early establishment of a comprehensive rail network connecting almost all the cities and towns, railways dominated the intercity freight tonnage till World War II and in some cases of Europe, Asia and Africa they even connected the countries. This early superiority enabled railways to transport large shipments very economically. The capability to efficiently transport large tonnage over long distances is the main reason railroads continue to handle significant intercity tonnage and revenue. Railroad operations incur high fixed costs because of expensive Continue reading

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Nicosia Model of Consumer Behavior

Nicosia Model of Consumer Behavior  was developed in 1966, by Professor Francesco M. Nicosia, an expert in consumer motivation and behavior.  This model focuses on the relationship between the firm and its potential consumers.  The model suggests that messages from the firm (advertisements) first influences the predisposition of the consumer towards the product or service.   Based on the situation, the consumer will have a certain attitude towards the product.     This may result in a search for the product or an evaluation of the product attributes by the consumer.   If the above step satisfies the consumer, it may result in a positive response, with a decision to buy the product otherwise the reverse may occur.  Looking to the model we will find that the firm and the consumer are connected with each other, the firm tries to influence the consumer and the consumer is influencing the firm Continue reading

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About Sarbanes-Oxley Act of 2002

Public Company Accounting Reform and Investor Protection Act of 2002 commonly known as Sarbanes-Oxley Act or SOX Act was enacted by US Congress to handle concerned issues surrounding business management and financial reporting as a way to restore and maintain investor confidence in the US capital market grappling with corporate scandals and accounting irregularities. With the integrity of the market further compromised by the failures of Enron’s bankruptcy and WorldCom, the act considered as the most significant corporate regulatory reform since the Securities and Exchange Act of 1934, sought to curb the ongoing-spectacular corporate failures and scandals occurring in North America. The WorldCom’s failure was the last straw, prompting the speed passage of most drastic legislation to affect the accounting profession since 1933. The major purpose of this act is to provide reliable and accurate information to the investors. The formation of this act had to undergo a detailed process Continue reading

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Initial Public Offering (IPO)

A good capital market is an essential prerequisite for the industrial and commercial development of a country. Capital market is a central coordinating and directing mechanism for free and balanced flow of financial resources into the economic  system operating in a country. It helps the companies who require capital to expand, modernize or diversify their business. To get the capital that is required by the company it usually goes for the issue of shares and the process of issuing of shares is done in the primary market. The primary market in the simplest terms can be defined as a market where the securities are sold in order to raise the funds or the capital required by the company. It is a market for new issues i.e. a market for fresh capital. It provides the channel for sale of new securities. The securities can be in many forms such as equity Continue reading

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Crisis in Organizations: Stages and Types

Companies face problems all the time, and solve them one way or another. Sometimes one of these problems is difficult-at least at the time it occurs-and it becomes public interest with the help of the press. This problem is then known as a Crisis, where the company is faced with legal, political, financial and governmental impact on its business. The most serious property of crises is the element of surprise. The worst part in their handling is being unprepared. Crisis can come from nowhere at any time; natural disasters, human error, and industrial accidents can all cause crisis. Sometimes the cause of a crisis is management itself; managers may insist that they face no crisis, and they fall into the brink of lying and rejection of its existence. Then, when the time of the deadline comes their answer to why the job is not finished will be: “We faced trouble Continue reading

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