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

The Customer Satisfaction Model – Based on American Customer Satisfaction Index (ACSI)

Marketing Management

Risk-Return Trade off

Risk may be defined as the likelihood that the actual return from an investment will be less than the forecast return. Stated differently, it is the variability of return form an investment. Financial decisions incur different degree of risk. Your decision to invest your money in government bonds has less risk as interest rate is known and the risk of default is very less. On the other hand, you would incur more risk if you decide to invest your money in shares, as return is not certain. However, you can expect a lower return from government bond and higher from shares. Risk and expected return move in one behind another. The greater the risk, the greater the expected return. Financial decisions of a firm are guided by the risk-return trade off. These decisions are interrelated and jointly affect the market value of its shares by influencing return and risk of Continue reading

Abey Francis

Characteristics of Successful Teams

A team can be said to be a group of people working together to achieve a goal. It can also be seen “as a limited number of people who have shared objectives at work and who co-operate, on a permanent or temporary basis, to achieve those objectives in a way that allows each individual to make a distinctive contribution”. In order team to be effective, it should have certain characteristics, listed below Sponsor: In order to have effective liaison with the quality council, there should be a sponsor. Preferably the sponsor is a member of the quality council, thereby providing organizational support. Team Charter: A team charter is a document that defines the team’s mission, boundaries, the back ground of the problem, the team’s authority and duties and resources. It also identifies the members and their assign the roles-leader, recorder, timekeeper and facilitator. The sponsor and the team negotiate the Continue reading

Abey Francis

Case Study of Air-Asia : Strategic Role of Information System in Business

Air Asia is established on 12 December 2001 by Mr. Tony Fernandes, the CEO of Air Asia and expanding rapidly since that. Air Asia is the leading low fare airline in Asia and Air Asia succeed to become the award winning, ‘Asia Pacific Airlines of the year 2003’ by Centre for Air Pacific Aviation (CAPA) in 2003. Air Asia has successfully positioned itself in customers’ mind by using the “ Now Everyone Can Fly” slogan. Air Asia had flown over 55 million guests across the region and continually create more extensive route network through its associate companies. Air Asia flies over 61 domestics and international destinations with 108 routes and operates over 400 flights daily from hubs located in Malaysia, Indonesia, and Thailand with a fleet of 72 aircrafts. Air Asia’s net profit for the second quarter ending 31 December 2004 was reported RM44.4 million, a 323% increase over the Continue reading

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Differences between Activity Based Costing and Activity Based Management

Activity Based Costing (ABC) Activity Based Costing was introduced as the answer for an improved full-cost product-cost calculation as the model grew into a more full-fledged costing system for hierarchies of activities and cost objects. Activity Based Costing is a two-stage procedure where cost of resources in the first stage are allocated to activities to construct Activity Cost Pools, which in second stage are allocated to cost objects based on these objects’ use of the different activities. It is also a tool for cost and performance measurement towards activities, resources and cost objects (for example products and services). Activity Based Costing is knows as a “horizontal” or cross-functional cost view and it can provide fact-based insight into the spending and profitability of products, services and customers. There are three guidelines to support cost allocation in Activity Based Costing. The first would be ‘Direct-cost tracing to product’. Trace the cost of Continue reading

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Mass Production Systems

Mass production (also called flow production or repetitive flow production) is the production of large amounts of standardized products on production lines. It was popularized by Henry Ford in the early 20th Century, notably in his Ford Model T. Mass production is notable because it permits very high rates of production per worker and therefore provides very inexpensive products. Mass production is capital intensive, as it uses a high proportion of machinery in relation to workers. With fewer labor costs and a faster rate of production, capital is increased while expenditure is decreased. However the machinery that is needed to set up a mass production line is so expensive that there must be some assurance that the product is to be successful so the company can get a return on its investment. Machinery for mass production such as robots and machine presses have high installation costs. One of the descriptions Continue reading

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What is Financial Leverage?

The use of fixed-charges sources of funds, such as debt and preference capital along with owner’s equity in the capital structure described as financial leverage gearing or trading on equity. The use of the term trading on equity is derived from the fact that is the owner’s equity that is used to raise debt; that is, the equity that is traded upon. Financial leverage is defined as the ability of a firm to use fixed financial charges to magnify the effect of change in E.B.I.T on the firm’s earning per share. The financial leverage occurs when a firm’s Capital Structure contain obligation of fixed financial charges. For instance, interest on debentures, dividend on preference share etc., along with owner’s equity to enhance earning of equity shareholder’s. The fixed financial charges do not vary with the operating profit. They are fixed and are to be paid irrespective of level of operating Continue reading

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