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

Porter’s Five Forces Analysis of McDonalds

McDonald’s is an American fast food restaurant chain with its global headquarters in Oak Brook, Illinois. It has over 36,000 restaurants found in 120 countries all over the world, serving 68 million customers each day. It was founded as a barbeque restaurant in 1940 by Richard and Maurice McDonald. In the year 1955, a businessman Ray Kroc joined the company as a franchise agent and bought the company from the McDonald brothers. McDonald’s Corporation, incorporated in the year 1964, operates and franchises McDonald’s restaurants.  A McDonalds restaurant is operated by a franchisee, an affiliate, or the McDonalds corporation itself. McDonalds primary products include burgers, french-fries, soft drinks, milkshakes, wrap and desserts. The company has also introduced different menus like salads, fish, smoothies and fruits in response to changing customer tastes in order to lock-in customers. McDonald’s is operating under a new organizational structure starting from July 2015, categorized into four Continue reading

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3 Common Types of Organizational Structure

Organizational structure is the internal, formal framework of a business that shows the way in which management is linked together and how the authority is transmitted.  It is basically a framework used to describe the hierarchy in an organisation. Every business needs to have their own organizational structure as it helps in identifying the job at each level of an individual followed by its functions and it also assists in obtaining their own goals for development. There is a need for every type of organisation to have their own structure specially when it comes to large enterprises as it becomes difficult activities of the various departments and functions. A business will opt for an organisation structure which is best suited to them and the way they would like to be working, and the chart they create will reflect this. A flat organisation is one that has eliminated most or all Continue reading

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What is Management Control?

Management control is the process of evaluating, monitoring and controlling the various sub-units of the organization so that there is effective and efficient allocation and utilization of resources in achieving the predetermine goals. Thus, the focus of management control is on the managers of organizational sub-units and hence its focus is on line managers responsible for the performance of their departments. In 1916, Henri Fayol formulated one of the first definitions of control as it pertains to management: “Control consists of verifying whether everything occurs in conformity with the  plan  adopted, the instructions issued, and principles established. It[‘s] object [is] to point out weaknesses and errors in order to rectify [them] and prevent recurrence. “ Control can also be defined as “that function of the system that adjusts operations as needed to achieve the plan, or to maintain variations from system objectives within allowable limits. “ Management control therefore, is Continue reading

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Concept of Material Handling – Definition and Functions

Material Handling involves the movement of material, manually or mechanically in batches or one item at a time within the plant. The movement may be horizontal, vertical or combination of horizontal or vertical. Material Handling is the movement, storage, control and protection of materials, goods and products throughout the process of manufacturing, distribution, consumption and disposal. The focus is on the methods, mechanical equipment, systems and related controls used to achieve these functions. Briefly, Material Handling is the moving of materials from the raw stage through production to ultimate Customer with the least expenditure of time and effort so as to produce maximum Productive Efficiency at the lowest Material Handling cost. Material Handling is concerned with motion, time, quantity and space. Material Handling Institute describes this as follows: Material Handling is MOTION. Parts, material and finished products must be moved from store to location. Material Handling is concerned with moving Continue reading

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Definition of Forfaiting

Forfaiting is a specialized form of trade finance that allows the exporter to offer  extended credit to the importer. Under forfaiting  , the importer gives the  exporter a bundle of bills of exchange or promissory notes covering the principal  amount as well as the interest. Each tranche of the notes fall due at different points of  time in the future, e.g. every six months, extending up to several years. The notes are  backed by an aval or guarantee provided by a reputed bank in the importer’s country.  The exporter can then discount these notes without recourse with banks who  specialize in the forfaiting business to generate an immediate cash flow. This means  that if either the importer or the guaranteeing bank fails to pay when notes fall due,  the forfaiter cannot ask the exporter for reimbursement. The credit risk is assumed  entirely by the forfaiter. The forfaiter in turn, may Continue reading

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Cost Accounting Information System

Cost Accounting Information System (CAIS) is an accounting information system which determines the costs of products manufactured or services provided and record these costs in the accounting records. It is the key to management’s assessment of the company’s efforts to achieve profit. Since it is so important, the CAIS must be carefully designed and properly maintained. Functions of Cost Accounting Information System (CAIS) Generally the purposes or functions of cost accounting information system fall into four categories. These include providing information for: External financial statements, Planning and controlling activities or processes, Short term strategic decisions and Long term strategic decisions. These four functions relate to different audiences, emphasize different types of information, require different reporting intervals and involve different types of decisions. Cost Accounting Information System (CAIS) Technology Input: The input devices commonly associated with CAIS include: standard personal computers or workstations running applications; scanning devices for standardized data entry; Continue reading

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