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

Key Differences Between GAAP and IFRS

The differences between International Financial Reporting Standards (IFRS) and GAAP are numerous. International Financial Reporting Standards (IFRS) are principles-based accounting Standards, Interpretations and Framework adopted by the International Accounting Standard Board (IASB). Many of the standards forming part of IFRS are known by the older name of International Accounting Standards (IAS). Generally Accepted Accounting Principles (GAAP) is a term used to refer to the standard framework of guidelines for financial accounting used in any given jurisdiction which are generally known as Accounting Standards. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions, and in the preparation of financial statement. GAAP and IFRS differ in key ways, including their fundamental premise. At the highest level, GAAP is more of a rules-based system, whereas IFRS is more principles-based. Under GAAP, voluminous guidance attempts to address nearly every conceivable accounting problem that might arise. And if that guidance Continue reading

Abey Francis

History and Background of The Unilever Company

Unilever began with British soap-maker company named Lever Brothers. Their revolutionary action in business was by introducing the Sunlight Soap in 1890s. That idea was from William Hesketh Lever, founder of Lever Brothers. This idea helped the Lever Brothers become the first company that help popularize cleanliness in Victorian England. Moreover, the product rapidly emulated globally after that it was a success in UK and made Lever Brothers obtained more business worldwide. One of the reasons of this success was the strategy from William that not only prioritize on selling the products but also focus on manufacturing them. On the other side, in 1872 Jurgens and Van den Bergh created a company that produces margarine. Since there were many competitors in the margarine industry in Dutch, in 1920s, Jurgen and Van de Berth decided to strengthen their company by joining another margarine manufacturer in Bohemia. In 1927, there were three Continue reading

Abey Francis

Methods of Raising Finance for Business

The methods of financing should be adjusted to the stage or phase of the trade cycle. The total capital shall be raised by different means, or what is sometimes called “geared”, according to the phase of the cycle. Different types of securities may be issued in certain proportions, an what ratio will each type bear to the total capital will depend upon the particular phase. For example, in the beginning of an optimistic expansion, debentures may be offered to good advantage. At a later time, when speculative enthusiasm is strong, shares will yield better returns. During depression short time borrowing can be resorted to, if the credit of the company is good. The financing plan may be adjusted to the conditions of the market an the security market by varying the proportion, rate of yield, term denominations and guaranteed rights of the securities issued. The sources of finance for an Continue reading

Abey Francis

International Fisher Effect

According to the Relative Version of  Purchasing Power Parity Theory (PPP) one of the factors leading to change in exchange rate between currencies is inflation in the respective countries. As long as the inflation rate in the two countries remains equal, the exchange rate between the currencies would not be affected. When a difference or deviation arises in the inflation levels of the two countries, the exchange rate would be adjusted to reflect the inflation rate differential between the countries. The International Fisher Effect (IFE) theory is an important concept in the fields of economics and finance that links interest rates, inflation and exchange rates. Similar to the Purchasing Power Parity (PPP) theory, IFE attributes changes in exchange rate to interest rate differentials, rather than inflation rate differentials among countries. Nominal interest rates would automatically reflect differences in inflation by a purchasing power parity or no-arbitrage system. The two theories Continue reading

Abey Francis

Survival Strategies for Businesses

Survival strategies to help businesses get through the rapid fluctuations of business cycles.  Take the following business survival strategies to insulate your business in the event of tough times. 1. Non-growth Strategies A non-growth strategy refers to that strategy where there is no growth in earnings. This does not necessarily mean no turnover. A company might pursue a non-growth strategy, if it saw its non-economic objectives as more important than its economic objectives. The primary reasons for adopting a non-growth strategy may include, Pressure from public opinion; Maintain an acceptable quality of life; Lack of enough additional staff with sufficient  expertise  and loyalty; Enable the owner-manager to retain personal control over operations; and Dis-economies  of scale of the particular production set-up. In certain cases, there could even be negative growth, by paying out dividends larger than current earnings, so that shareholders are effectively receiving a refund of their capital investment, Continue reading

Abey Francis

Harvard Framework for Human Resource Management

One of the most important tasks that involve the personnel department in an organisation is human resources management (HRM). An organisation is only likely to achieve its objectives if their employees are used effectively. At the same time, planning how best to use human resources will help an organisation to achieve its objectives and goals. Human resources management has strategic implications. It means constantly looking for better ways of using employees to benefit the organisation. Strategic human resource management (SHRM) can be defined as a way of deciding on the plans and intentions of an organisation looking at the relationship between employment and the following human resource management processes and procedures within an organisation – development, recruitment, training, benefit and employee relations plans, performance management, strategies and procedures. It’s an approach to human resource management that has the goal of using people most wisely with respect to the strategic needs Continue reading

Abey Francis