Cash Flow Ratios – Tools for Financial Analysis

In many cases, cash flow ratios signify a more accurate measurement of a stock’s value than the price to earnings ratio, P/E. Cash flow ratios examine the flow of money into a company, it can help to identify struggling companies and in turn, struggling stocks. Price to earnings is a very important ratio because when is very high or low, it usually makes a splash on the financial pages. Price to earnings ratio is valuable metric and can help a successful investor with his or her stock technical analysis, but it is only one technical analysis tool and should be considered as such. While the same can be said for each of the cash flow ratios, these give insight into the money coming in and going out of a company. A company can demonstrate earnings, but if more money is pouring out a company than pouring in, there will fiscal Continue reading

Case Study: Coffee Cafe Business in India

Starbucks started in Seattle in 1970 as a gourmet coffee retailer,  selling fresh ground coffee beans to local coffee lovers. Starbucks  CEO, Howard Schultz spotted an unfulfilled market need for cafes  serving gourmet coffee directly to consumers. This proved to be a  sound market penetration strategy and led to a large loyal  consumer base. Read:  Case Study of Starbucks: An Amazing Business Success Story Entrepreneurs in India discovered the romance of coffee at Starbucks and  a few coffee chains, such as Barista, Cafe Coffee Day, and Qwiky’s have  sprung up in metro cities. People of all age groups are extending enthusiastic  welcome to this new entrant and drinking coffee like never before. Coffee lovers have always been lyrical about the virtues of this beverage — coffee  inspires poetry and inflames prose; it is capable of firing passion, and stir  people to romance, and drown a lover in dreams. The word Continue reading

SWOT Analysis of Royal Dutch Shell Plc

Royal Dutch Shell is a global, publically traded Public Limited Company, whose main focus is on the energy and petrochemicals business. Royal Dutch/Shell officially formed in 1907, with the merger of a London based Transportation Company called Samuel Shell transport and trading company ltd., and a recently formed oil company from the Netherlands, the Royal Dutch Petroleum Company. This merger facilitated the transportation of oil throughout the world, giving Royal Dutch Shell a global presence in the then emerging market of oil. Until 2005, Royal Dutch and Shell were two entities, with a 60/40 profit sharing mix, Royal Dutch and Shell respectively. The two companies officially merged into one entity, eliminating the slash after Royal Dutch. They have a principal listing in the London Stock exchange and their official headquarters are located in The Hague in The Netherlands. Shell as it is notably abbreviated as, began with the vision of Continue reading

HRM Functions: Training and Management Development

Having selected the manager for the job, he or she must be trained. However, it is not sufficient to provide training only for the manager: the whole family must be trained. Training should include at least two phases. Pre-departure training should focus on language, history and culture for the whole family and on job-specific training for the manager. On arrival in the new country two or three weeks without too much job-related activity should be allowed for adaptation to the new culture. Transition training should continue with language and culture training as well as meetings at which the new expatriates have the chance to mix with local residents and other foreign nationals. Caring for expatriate managers does not cease at this point. The home office must remain alert to the need to provide psychological support in a variety of ways and to convince expatriates that they are not being disadvantaged Continue reading

Normal debt recovery procedure followed by banks

Normal debt recovery procedure will generally apply to the debtors who are willing to pay the dues with normal recovery process.   Based on the regulatory guidelines of procedure of tribunal on debt recovery, following procedure may be outlined for such recovery.   However the recovery agents should follow the bank-specific debt recovery procedure as advised by their principal. Below are given the main rules for making telephone calls and visit to the debtor for recovery of dues: 1)     The recovery agent has been authorized by the bank to collect the past due debt from the particular customer. 2)     The customer has been notified by the bank of the details of the recovery agent for collection of the past-due debt. 3)     Making customer calls:     This is the first step in recovery procedure and following rules should be followed generally: Calls are made Continue reading

Introduction to Management Information Systems (MIS)

A management information system (MIS) can be defined as a system that: Provides information to support managerial functions like planning, organizing, directing, controlling. Collects information in a systematic and a routine manner which is in accordance with a well defined set of rules. Includes files, hardware, software and operations research models of processing, storing, retrieving and transmitting information to the users. A management information system (MIS) is a subset of the overall internal controls of a business covering the application of people, documents, technologies, and procedures by management accountants to solving business problems such as costing a product, service or a business-wide strategy. Management information systems are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization. Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support Continue reading