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

Development Banking in India

The foreign rulers in India did not take much interest in the industrial development of the country. They were interested to take raw materials to England and bring back finished goods to India. The government did not show any interest for securing up institutions needed for industrial financing. The recommendation for setting up industrial financing institutions was made in 1931 by Central Banking Enquiry Committee but no concrete steps were taken. In 1949, Reserve Bank had undertaken a detailed study to find out the need for specialized institutions. It was in 1948 that the first development bank i.e. Industrial Finance Corporation of India (IFCI) was established. IFCI was assigned the role of a gap-filler which implied that it was not expected to compete with the existing channels of industrial finance. It was expected to provide medium and long-term credit to industrial concerns only when they could not raise sufficient finances Continue reading

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Selection Criteria for International Assignments

Making an effective selection decision for an overseas assignment can prove to be a major problem. Typically, this decision is based on international selection criteria, which are factors used to choose international managers. These selections are influenced by the  Multinational Corporations experience and often are culturally based. Sometimes as many as a dozen criteria are used, although most  Multinational Corporations give serious consideration to only five or six. 1. Adaptability to Cultural Change Overseas managers must be able to adapt to change. They also need a degree of cultural toughness. Research shows that many managers are exhilarated at the beginning of their overseas assignment. After a few months, however, a form of culture shock creeps in, and they begin to encounter frustration and feel confused in their new environment. One analysis noted that many of the most effective international managers suffer this cultural shock. Organizations examine a number of characteristics Continue reading

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Blue Ocean Strategy: Discovering the Untapped Market

Blue ocean strategy makes companies to come out of ocean of bloody competition by creating market space which is uncontested and that makes the completion irrelevant. Since, dividing up existing demand and benchmarking the competitors, Blue Ocean strategy is regarding grow demand and break away from the competition. The business universe can be thought as a composition of two kinds of oceans the first is the red ocean and second one is the blue ocean. Red ocean includes all the industries which exist today and it is about the known market space. But on the other side Blue Ocean can be considered as industries which are not in existing today and it is called unknown market space. The industries boundaries are defined and well accepted in the red oceans. In the red oceans the rules of competitive games are well defined. The companies try to take away the greater share Continue reading

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Quality Control (QC) – Meaning, Definition, and Benefits

What is Quality? Quality has become one of the most important factors of consumers decision in selecting a product among competing products (services). This phenomenon is wide spread regardless of the fact whether the consumer is an individual organisation, retail store, or a military defense programme. The quality of products / services can be evaluated in several ways. It is important to identify different dimensions of quality Garrin (1987) discusses eight components or dimensions of quality as follows. Performance (Will the product do intended job?) Reliability (How often does the product fail?) Durability (How long does the product last?) Serviceability (How easy is it to repair the products?) Aesthetics (How the product looks like?) Features (What does the product do?) Perceived Quality (What is the reputation of the company?) Conformance to standards (Is the product made exactly as the design indented?) Meaning of Quality Control Quality control is defined as Continue reading

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Working of International Monetary Fund (IMF)

Recommended Reading: International Monetary Fund (IMF) 1. Financial Resources: IMF’s resources mainly come from two sources Quotas and Loans. The capital of the Fund includes quotas of member countries, amount received from the sale of gold, General Arrangements to Borrow (GAB), New Arrangements to Borrow (NAB) and loans from members nations. Quotas and Loans and their Fixation: The Fund has General Account based on quotas allocated to its members. When a country joins the Fund, it is assigned a Quota that governs the size of its subscription, its voting power, and its drawing rights. The country will be assigned with an initial quota in the same range as the quotas of existing members that are broadly comparable in the economic size and characteristics.  At the time of the formation of the IMF, each member is required to pay its subscription in full or on joining the Fund — of which Continue reading

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Mitigating Risks and Increasing Resilience Through Capacity Utilization Analysis

In today’s global economy, operating at maximum efficiency is key to maintaining a competitive edge. Being cognizant of the tools available to aid in this endeavor is crucial. One such tool is capacity utilization, a metric that helps businesses determine the degree to which they are exploiting their potential output capabilities. Keep reading to explore this concept further and better understand its role in mitigating risks and improving resilience. Capacity Utilization Analysis Capacity utilization analysis is a powerful tool in the arsenal of a business leader. It presents a way of assessing how effectively an organization is using its existing resources to achieve maximum output. Underutilization can lead to wasted resources, while over-capacity operations can result in ballooning costs. Capacity utilization is calculated by dividing the actual output by the potential output and multiplying by 100, giving you a percentage. High capacity utilization indicates efficiency and profitability, whereas low utilization Continue reading

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