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

Role of Government in Economic Development

Any country’s the prosperity and obstacles of economic growth results from activities of government. That means, government plays important role in economic activities. In free market economies government plays important activities. It has to perform role to prevent market failure. As we know that market does not yield economically efficient outcome every time as the result market fails to operate. In free market economy government has designed activities to stimulate and assist private enterprise and to regulate or control business practices so that their operations are consistent with the public interest. There are various forms of government regulation especially to regulate the activities of private firms. Industrial products are subject to Operating Regulations, governing plant and pollutant emission, product packaging and labeling, worker safety and health etc. Banks and Financial Institutions are subject to  Financial Regulations, both the government as well as the control made by the Central Bank for Continue reading

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International Diversification of Investments

In recent years international business activity has been characterized by a dramatic increase in cross-border financial activity. International flows of financial securities have outstripped gains from goods and services trade and, consequently, investment opportunities were no longer constrained by domestic markets. These significant changes gave impetus to the popularity of direct or portfolio investments in foreign countries. Foreign portfolio investment (FPI) is short- or long-term investing activity in corporate stocks and bonds, mutual and hedge funds, government bonds, pension and sovereign funds, various financial derivatives, certificates of deposit, real estate investment trusts, etc. Foreign portfolio investment is relatively liquid, mostly depending on the riskiness of the market where securities and other financial assets are held in. Moreover, FPI is the best choice for investors who are not willing to manage direct ownership rights of a foreign company. The benefits of diversification are well perceived by portfolio managers, that many in Continue reading

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Factors Affecting Organizational Structure in Multinational Companies

The organization structure is an approach that helps and guides in organizing the employees of the organization into a structured and organized pattern for better coordination and communication. The structure in a multinational company defines the architecture of the business competence, functional relationship and management function. It helps in reducing confusion in the business environment and also supports in carrying out the business function smoothly and efficiently. The organization structure is affected by various internal and external factors which are also known as the organizational environment since organization works around these factors and the environment. The organizational environment consists of all those factors that influences the organizational working and thus can also influence the organizational structure since in each country and geographical areas the organizational environment would change. The external organizational environment that would influence the organizational structure is the economic, political and legal, socio-economic, technological and natural factors. All Continue reading

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Importance of Computer in the Modern Society

Computers are now a fact of life. Computers have created a very effective information system to help streamline the management of an organization. This makes it a much needed tool for every business, banking, government, entertainment, daily life, industry, education, and administration. It can be said of all large organizations, whether the department government or private, use a computer for a variety of their daily business and it is the fastest growing industries in the world today. Each organization usually has one or more large computer systems and a number of microcomputer. The system is a great computer for data processing tasks, while many small microcomputer to use as word processing. Computers have become part of our lives is essential. In general, the use of computers can be divided into several groups. It is known that the rapid growth of computer usage time. In all areas have been using computers Continue reading

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Fixed and Flexible Budget

According to the flexibility factor, budgets are classified into: Fixed Budget This is budget in which targets are rigidly fixed. Such budgets are usually prepared from one to three months in advance of the fiscal year to which they are applicable. Thus, twelve months or more may elapse before figures forecast for the budget are used to measure actual performance. Many things may happen during this intervening period and they may make the figures go widely out of line with the actual figures. Though it is true that a fixed, or static budget as it is sometimes called, can be revised whenever the necessity arises, it smacks of rigidity and artificiality so far as control over costs and expenses are concerned. Such budgets are preferred only where sales can be forecast with the greatest of accuracy which means, in turn, that the cost and expenses in relation to sales can Continue reading

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Different Types of Stock Beta

Beta coefficient is a comparative measure of how the stock performs relative to the market as a whole.  It is determined by plotting the stock’s and market’s returns at discrete intervals over a period of time and fitting (regressing) a line through the resulting data points. The slope of that line is the levered equity beta. When the slope of the line is 1.00, the returns of the stock are no more or less volatile than returns on the market. When the slope exceeds 1.00, the stock’s returns are more volatile than the market’s returns.  The beta coefficient is a key component for the  Capital Asset Pricing Model  (CAPM), which describes the relationship between risk and expected return  and  that is used in the pricing of risky securities. The important types of stock beta used in financial analysis are historical beta, adjusted beta and fundamental beta. An historical betas are Continue reading

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