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

Role of Strategic Management in the Survival of Organizations

Strategic management is considered to be the collection of the ongoing processes and activities that an organization uses so that to systematically coordinate and align the resources and actions with the vision, mission, and strategy all through the organization. The activities in strategic management usually transform the static plan in the system that provides strategic performance feedback in decision making and enabling the plan to grow and evolve as the requirements and several other circumstances change. Strategic management has emerged as a primary value in helping organizations to successfully operate in complex, dynamic environments. In order for organizations to be competitive in the complex, dynamic environments, the organizations are supposed to be less bureaucratic and should be more flexible. In environments that are stable, competitive strategy involves defining the competitive position and then defending it. With strategic management, it allows companies to be more flexible. Organizations are supposed to develop Continue reading

Abey Francis

Organizational set up of merchant bankers in India

In India a common organizational set up of merchant bankers to operate is in the form of divisions of Indian and Foreign banks and Financial institutions, subsidiary companies established by bankers like SBI, Canada Bank, Punjab National Bank, Bank of India, etc. some firms are also organized by financial and technical consultants and professionals. Securities and exchanges Board of India (SEBI) has divided the merchant bankers into four categories based on their capital adequacy. Each category is authorized to perform certain functions. From the point of Organizational set up India’s merchant banking organizations can be categorized into 4 group on the basis of their linkage with parent activity. They are: a) Institutional Base:- Where merchant banks function as an independent wing or as subsidiary of various Private/ Central Governments/State Governments Financial institutions. Most of the financial institutions in India are in public sector and therefore such set up plays a Continue reading

Abey Francis

Kotter’s 8-Step Change Model

Change is the word that best described of the modern societies and culture. Change occurred in almost every aspects of life. Change presses us out from our comfort zone. People changed in their life to avoid stagnation and to improve their quality of life and become a better person. This is also true in business where the rapid change in technologies, the way of doing things, advances in information technologies, internal and external pressures, e-business and globalization creates a competitive environment in most organization in order to survive and to be relevant. How business react, operate and adapt to any changes determine the survivability of the company. In organization, change is necessary but often proves to be challenging. To guide a change (managing a change process) may be the greatest test for the leader of the organization especially when there is resistance. Therefore to lead a change is essential but Continue reading

Abey Francis

Evaluation of Subsidiary Performance in Multinational Operations

A parent company may employ several criteria to evaluate the performance of its foreign subsidiaries. Sales growth, market share, stability in output, asset growth and returns on investment are some of these criteria. Out of these, Return On Investment (ROI) is the most widely-used criteria-because the interest of the parent company ultimately lies in the Return On its Investment. The ROI as calculated on the basis of reported profit repatriation may however not show the true return from the subsidiary. This is because it may be grossly-distorted, due to the following reasons. (i) The subsidiary’s profits are taxed in the host country and repatriation of profit may be subject to further tax. Therefore, the parent company tries to transfer the money from the subsidiary in various other ways such as high royalty, high interest on loan, high expert fees, etc. As a result the, profit repatriation becomes a grossly understated Continue reading

Abey Francis

Mutual Fund Ownership Documents

In terms of practice that has evolved in the mutual funds industry, mutual funds have stopped issuing certificates to investors, in their open-ended schemes. Investors instead get an account statement, which shows their holdings and the price at which they were bought. Mutual fund holdings of an investor are identified by the account number. Investors can, if they wish, consolidate their holdings in a mutual fund across various schemes and receive a consolidated account statement. The account statement is computer generated and has no signature. It is also not an instrument that can be traded or transferred. It is a very safe way of holding mutual fund units. The account statement shows the holding details, the number of units outstanding and the value of the holdings. All transactions relating to purchase of units, redemption of units, dividends, re-investment etc., are shown in the account statement. The investors’ holdings in a Continue reading

Abey Francis

SERVQUAL Model for Measuring Service Quality

Quality is the key to achieving customer satisfaction. Quality is a dynamic state associated with products, services, people and environments that meets or exceeds expectations. Quality is also rapidly embracing the nature or degree of impact an organization has of its stakeholders, environment and society. In the service industry, definitions of service quality tend to focus on meeting customers needs and requirements and how well the service delivered meets their expectations. In order to deliver and maintain service quality, an organization must first identify what it is that constitutes quality to those whom it serves. The key to ensuring good service quality is meeting or exceeding what customers expect from the service. It was clear to us that judgements of low and high quality service depend on how customers expect from the service. It was clear to us that judgments of high and low service quality depend on how customers Continue reading

Abey Francis