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

Mass Customization – Dynamic Stability Product/Process Matrix

Mass Customization Concept “It is the customer who determines what a business is” – Drucker, 1954 The concept of mass customization was coined by Stan Davis in 1987, in his book “Future Perfect”. In this book, he emphasizes that in traditional industrial production there is on the one hand mass production, using economies of scale to produce goods at low costs, but with nearly no variety or on the other hand individual production with a high degree of variety but in small volumes with high costs. Joseph Pine, an IBM-executive turned consultant and author who is the father of the mass customization concept, in his 1993 book “Mass Customization — A New Frontier in Business Competition”, outlines more about Mass Customization. “developing, producing, marketing and delivering affordable goods, and services with enough variety and customization that nearly everyone finds exactly what they want.” –  Joseph Pine, 1993 “Mass customization is a system Continue reading

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Foreign Direct Investment (FDI) in Indian Retail

Introduction to Foreign Direct Investment (FDI) in Indian Retail The recent clamor about opening up the retail sector to Foreign Direct Investment (FDI) becomes a very sensitive issue, the most important factor against FDI driven “modern retailing” is that it is labour displacing to the extent that it can only expand by destroying the traditional retail sector. This is because the primary task of government in India is still to provide livelihoods and not create so called efficiencies of scale by creating redundancies. As per present regulations, no FDI is permitted in retail trade in India. Allowing 49% or 26% FDI (which have been the proposed figures till date) will have immediate and direct consequences. Entry of foreign players now will most definitely disrupt the current balance of the economy; will render millions of small retailers jobless by closing the small slit of opportunity available to them. Retailing is not Continue reading

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Case Study: McDonald’s Business Strategies in India

McDonald’s The modest beginnings of McDonald’s at Illinois in USA, turned out to be among the main brand names in the international scene.  It has been synonymous to what is widely-accepted the fast-food concept. The company operates over thirty one thousand stores all over the world to date. It was one of the first to perfect the concept of fast service in the food industry in its early days of operations in 1955. Given that the products of the company are mainly western in character; its operations have also expanded to the Asian region. The first Indian McDonald’s outlet opened in Mumbai in 1996.  In the rest of the globe, it operates thousands of store franchises that functions autonomously. McDonald’s in India Around the world, McDonald’s traditionally operates with local partners or local management. In India too, McDonald’s purchases from local suppliers. McDonald’s constructs its restaurants using local architects, contractors, Continue reading

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Competitive Intelligence (CI) – Definition, Need and Benefits

The growing competition in the business industry has made it necessary for any company to stay in competition or have a competitive advantage over its competitors, adequate and relevant information about the competitors need to be received or known at the right time in other to make a good strategic business decision. Competitive intelligence is defined as a systematic process that transforms random bits and pieces of data into strategic knowledge. This information comprises about competitors, customers, technological, environmental, product and market in. other to make a good strategic decision. Competitive intelligence is described as those activities a company undertake in determining and understanding its industry as well as identifying and understanding the competitors, also determine and understand their weaknesses and strength and anticipate their next move(s). This definition of competitive intelligence tends to identify/determine, understand and anticipate industry and competitors. Furthermore competitive intelligence is a process of monitoring the Continue reading

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Hedging with Derivatives – Futures Hedging, Forwards Hedging, and Swap Hedging

Futures Hedging A futures contract compels the buyer to purchase a particular quantity of assets within a certain period of time. The price of the purchase is agreed in the contract at the time of entering this contract. The asset that is to be purchased is referred to as the underlying asset and the time when this asset is purchased or sold is known as the expiry date or maturity date. While the major difference between a futures contract from an options contract is the obligation to purchase an asset, forward contracts also oblige the buyer to purchase the underlying asset. However, in contrast to forward contracts, futures contracts are drawn according to standardized forms and are more liquid since they are traded on secondary markets. Futures contracts provide more liquidity in comparison with forward contracts. A party that enters a futures agreement to purchase security may sell this right Continue reading

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Objectives of Financial Management

Financial management is concerned with procurement and use of funds.   Its main aim is to use business funds in such a way that the firm’s value / earnings are maximized.   Financial management provides a frame work for selecting a proper course of action and deciding a viable commercial strategy.   The main objective of a business is to maximize the owner’s economic welfare.   This objective can be achieved by; Profit Maximization, and Wealth Maximization. 1. Profit  Maximization Profit earning is the main aim of every economic activity.   A business being an economic institution must earn profit to cover its costs and provide funds for growth.   No business can survive without earning profit.   Profit is a measure of efficiency of a business enterprise.   Profits also serve as a protection against risks which cannot be ensured.   The accumulated profits enable a business to face Continue reading

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