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

Economics of the Foreign Exchange Market

In a floating exchange rate regime the price of the dollar, like any other market-determined price, depends on the relevant forces of supply and demand. But what are the relevant forces of supply and demand in the foreign exchange market? To try to answer this question, let us consider, for illustration, the factors that determine the relationship between the Australian dollar and the Japanese yen. The Japanese require dollars to pay for their imports of goods and services from Australia and to fund any investment they may wish to undertake in this country. Assume that they obtain these dollars on the foreign exchange market by supplying (selling) yen in return. So the Japanese demand for dollars (mirrored by the supply of yen) is determined by the exports to Japan and our capital inflow from that country. On the other side of the market, the Australian demand for yen is determined Continue reading

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Jay Galbraith’s Star Model of Organizational Design

Organizational design is not simply about structure and the resulting organizational chart.  It is about the relationships between people, work, formal structures and informal practices and behaviors. It is about the way in which an organization structures and coordinates its people and process so it can benefit from its unique capabilities over the long-term.  It  determines who makes decisions and how those decisions will be made. It changes the role of the leaders as they become less decision makers and more decision shapers. Through organizational design, leaders become the shapers of the organization’s decision-making process. Organizational design and the resulting capabilities are the last sustainable sources of  competitive advantage. Star Model  of Organizational Design  is a well-known  model that has been used for decades to identify the key elements of an organization and focus  on the issue of strategy and strategy implementation. Developed by Jay Galbraith, an American consultant and Continue reading

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What is Retail Advertising?

The manufacturer has little concern where its product is purchased. The goal of the retail advertiser differs from that of national advertiser. The retailer advertises to encourage patronage by consumers and build store loyalty among them. The retailer is not particularly concerned with any specific brand. In case the retailer shows some concern (the retailer wants to clear stocks of a particular brand), then the message in effect is “buy brand ‘B’ at our store.” General approach in retail advertising is “buy at our store.” The sale of any specific brand is not the concern of retailer unlike the national advertiser. The retailer must compete in one of the most competitive arenas of business and move large volumes of products. Besides, the retail advertising must convey the image of the type of store to particularly attract certain types of consumers. To achieve these objectives, retailers often communicate price information, service Continue reading

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Open Market Operations by the Central Bank

The open market operations as a method of quantitative credit control are interpreted in two ways. In a broad sense, it refers to the buying and selling of government securities as well as other eligible papers like bills and securities of private concerns by the central bank. In a narrow sense it means the buying and selling of only government securities by the central bank in the money market. The process of open market operations affects the volume of credit, the level of business activity and the internal price level. The process is explained below. Suppose in an economy there is inflationary tendency and the expansion of credit is very high and the central bank wants to control this. Then the central bank will start selling securities in the open market to both the banks as well as the private individuals. When these securities are bought, payment is made in Continue reading

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Case Study: A Critical Analysis of Restructurings by Sony Corporation

Restructuring is considered to be the corporate management term of reorganizing an organisations ownership, operations, legal and other structures within in order to make the company more profitable and more organized with its needs to be successful. There are many reasons for why restructuring includes the changes of the owner ships or the organisational structure, or a reaction towards a crisis or a change such as a change in the financial position, the company becomes bankrupt or it repositions or it bought out. Sony had restructured themselves approximately five times over nine years. They have reorganized operation systems, they have restructured management teams, and they have added structures in the purpose to make profits. Due to all their problems they faced, Sony tried to correct them by changing structures and even eliminating some to try solving the problems. Sony has restructured itself firstly by restructuring of electronics business, It has Continue reading

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Advantages and Disadvantages of Credit Cards to Students

In this modern era with the rising of e-commerce in the world, the usage of credit cards is getting popular among the world nowadays. The usage of credit cards has actually spread towards college students and has increased visibility. Meanwhile, this is the best chance for the credit card companies to put on target at college students because college students are expected to have higher earning power and this makes the credit card companies believe that as a desirable market. A credit card can be best defined as a small plastic card issued by the bank to the consumers to purchase goods and services in advance with a credit limit on the spending. With a credit card, the users are able to purchase goods without using cash. Users will have the ability to use it as online payment on the internet and use it as monthly installments for large-volume goods Continue reading

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