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

Literature Review – Credit Derivatives

Review of Literature on Credit Derivatives Giesecke, K. (2009) says that a credit derivative is a financial instrument whose cash flows are linked to the financial losses due to default in a pool of reference credit securities such as loans, mortgages, bonds issued by corporations or governments, or even other credit derivatives. Credit derivatives facilitate the trading of credit risk, and therefore the allocation of risk among market participants. They resemble bilateral insurance contracts, with one party buying protection against default losses, and the other party selling that protection. He discusses the mechanics of standard contracts, describes their applications, and highlights the mathematical challenges associated with their analysis. Dufey & Rehm(2000) say that credit derivatives are contracts between two financial market participants.The essence of this contract is to transfer credit risk from one party to another.Like all financial innovation, a credit derivative is a new financial product which is developed Continue reading

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Managing Ethics in Business Organizations

Earlier, it’s believed that ethics is a prerogative of individuals, but now this perception has immensely changed. Many companies use management techniques to encourage ethical behavior at an organizational level. Business ethics (also corporate ethics) is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business  environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations.  Business ethics can be thought of as written and unwritten codes of principles and values that govern decisions and actions within a company. In the business world, the organization’s culture sets  standards  for determining the difference between good and bad decision-making and behavior. In the most basic terms, a definition for business ethics boils down to knowing the difference between right and wrong and choosing to do what is right. The phrase Continue reading

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The Components of an Advertisement

We can factor an advertisement into seven important components; 1. The Headline The Headline is the most read part of an advertisement. So advertisers try to tell maximum part of the product story through the headline. A headline will introduce the product or makes the promise statement or puts a question. It basically tries to attract the attention of the readers and create curiosity so the audience or reader sees further. The major types of headlines are: Direct promise of benefit News about the product Curiosity or provocative, and Command headlines Direct headlines make a direct promise about how the product will benefit the readers. Readers are often interested in what is new in the product so the words ‘new’, ‘improved’, etc. are often used in headlines. Such headlines provide some new ‘information’ and are called news headline. Sometimes the promise or benefit is not offered in the headline. Instead Continue reading

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SWOT Analysis of Ford Motor Company

About Ford Motor Company Ford Motor Company is USA based market leader in automotive industry with its operations in more than 6 continents, and they operate near 70 plants worldwide, with about 159,000 employees worldwide it has been leading the automotive industry in USA, and Europe. With their successful mergers with Volvo, Aston Martin and Jaguar they have been able to perform well in UK as well, their vision names one plan one goal shows their global thinking with the integration on suppliers, distributors and global works force they plan to become a true worldwide market leader in consumer vehicles. Their strategy of becoming on stop shop for all vehicle related things that’s include purchasing, financing and maintaining shows their progressive thinking. After their success in USA and Europe market, they plan to conquer Asia Pacific and Middle East which is also an emerging market. SWOT Analysis of Ford Motor Continue reading

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Overcoming Challenges to Effective Organizational Performance

The main obstacles to effective organizational performance is already covered in this blog and the ways to overcome them are discussed below. 1. Employees Training and Development The hope is that employees who receive training in line with their individual or organizational goals will become more efficient in what they do. Organizations should look at the positive effects of training on employee performance, and consider employee development as a targeted investment into making the front line worker stronger. More importantly, development plans that include “train-the-trainer” (training that trains employees to become trainers of a skill) can provide exponential benefits to the organization. This training can be anything from how employees can do their own jobs better to these employees being groomed to replace their supervisor. In addition, employees who are invested as a trainer might be further inclined to stay with the organization, and possibly reduce employee turnover. 2. Motivation Continue reading

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International Compensation Management

Designing and developing a better compensation package for HR professionals for the international assignments requires knowledge of taxation, employment laws, and foreign currency fluctuation by the HR professionals. Moreover, the socio-economic conditions of the country have to be taken into consideration while developing a compensation package. It is easy to develop the compensation package for the parent country national but difficult to manage the host and third country nationals. When a firm develops international compensation policies, it tries to fulfills some broad objectives: The compensation policy should be in line with the structure, business needs and overall strategy of the organization. The policy should aim at attracting and retaining the best talent. It should enhance employee satisfaction. It should be clear in terms of understanding of the employees and also convenient to administer. The employee also has a number of objectives that he wishes to achieve from the compensation policy Continue reading

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