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

Country of Origin Effect in International Marketing

The Country of Origin Effect is  the influence that the manufacturer country has on the positive or negative consumer judgment. Studies have shown that when a customer becomes aware of the country of origin of a product his/her image about the product is influenced either positively or negatively according to his perceptions. Consumers tend to have a stereotype about product and countries that have been formed by experience, hearsay, myth. These stereotypes are generally broad and vague according to which they judge a specific country or a specific product to be the best: French Perfumes, Italian Leather, Chinese Silk and Japanese Technology are all examples of such stereotypes. Therefore the country, the type of product, and the image of the company all its brand play a crucial rule in deciding whether the country of origin will engender a positive or a negative reaction. Country Image: Precursors to Country of Origin Continue reading

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Case Study: Dove’s Campaign for Real Beauty

Unilevers Dove brand was launched in the market as a cleansing bar soap in 1957. The soap was based non-irritating cleaner and moisturizing component. By 1970s, Unilever had enhanced the soap into a beauty bar, which was milder and promised women of moisturized skins. The popularity of the soap at this time soared, and Unilever started expansion into the global market and by 1996, the brand was selling in over 80 countries. Between 1995 and 2001, Unilever expanded the range of products under the dove brand to include moisturizers, face creams, deodorants, shower gel, shampoos, conditioners, among other wide range of beauty and care products. The key features and attributes of the brand such as its soft colors focused on promoting it as a rejuvenating, calming and exfoliating product brand with milder effects on the skin and high performance moisturizing abilities for dry skins. As the Dove brand mainly targeted Continue reading

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Public Key Infrastructure (PKI)

What is Public Key Infrastructure (PKI)? Public key infrastructure (PKI) systems offer authentication in transactions. PKI is an information technology infrastructure that enables internet users to securely and privately exchange information through the use of a public and a private key pair that is obtained and shared through a trusted authority. The public key infrastructure provides for a digital certificate that can identify an individual or an organization and directory services that can store and, when necessary, revoke the certificates. A certificate is a digital document (i.e. a formatted file) that  binds a public key to a person, application, or service. A  trusted Certificate Authority (CA) creates the certificate and  digitally signs it using the CA’s private key. Because of its  role in creating certificates, the CA is the central component  of the PKI. Using the CA’s public key, applications verify  the issuing CA’s digital signature, and hence, the integrity Continue reading

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Equity Carve-Out (ECO)

An Equity Carve-Out (ECO) is a partial public offering of a wholly owned subsidiary. Unlike spin-offs, ECOs generate a capital infusion because the parent offers shares in the subsidiary to the public through an Initial Public Offering (IPO), although it usually retains a controlling interest in the subsidiary. Like spin-offs, ECOs have become increasingly popular in the last several years. An equity carve-out involves conversion of an existing division or unit into a wholly owned subsidiary. A part of the stake in this subsidiary is sold to outsiders. The parent company may or may not retain controlling stake in the new entity. The shares of the subsidiary are listed and traded separately on the stock exchange. Equity carve-outs result in a positive cash flow to the parent company. An equity carve-out is different from a spin-off because of the induction of outsiders as new shareholders in the firm. Secondly equity Continue reading

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Export Credit Guarantee Corporation of India (ECGC)

In order to provide export credit and insurance support to Indian exporters, the GOI set up the Export Risks Insurance Corporation (ERIC) in July, 1957. It was transformed into export credit guarantee corporation limited (ECGC) in 1964. Since 1983, it is now know as ECGC of India Ltd. ECGC is a company wholly owned by the Government of India. It functions under the administrative control of the Ministry of Commerce and is managed by a Board of Directors representing government, Banking, Insurance, Trade and Industry. The ECGC with its headquarters in Bombay and several regional offices is the only institution providing insurance cover to Indian exporters against the risk of non-realization of export payments due to occurrence of the commercial and political risks involved in exports on credit terms and by offering guarantees to commercial banks against losses that the bank may suffer in granting advances to exports, in connection Continue reading

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Liquidity Risk in Banking

Liquidity planning is an important facet of risk management framework in banks. Liquidity is the ability to efficiently accommodate deposit and other liability decreases, as well as, fund loan portfolio growth and the possible funding of off-balance sheet claims. A bank has adequate liquidity when sufficient funds can be raised, either by increasing liabilities or converting assets, promptly and at a reasonable cost. It encompass the potential sale of liquid assets and borrowings from money, capital and Forex markets. Thus, liquidity should be considered as a defense mechanism from losses on fire sale of assets. Liquidity risk in banking is the potential inability of a bank to meet its payment obligations in a timely and cost effective manner. It arises when the bank is unable to generate cash to cope with a decline in deposits/liabilities or increase in assets. The cash flows are placed in different time buckets based on Continue reading

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