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

Definition of Portfolio Management

Portfolio Management Definition It is a process of encompassing many activities of investment in assets and securities. The portfolio management includes the planning, supervision, timing, rationalism and conservatism in the selection of securities to meet investor’s objectives. It is the process of selecting a list of securities that will provide the investor with a maximum yield constant with the risk he wishes to assume. The portfolio management is growing rapidly serving broad array of investors — both individual and institutional — with investment portfolio ranging in asset size from few thousands to crores of rupees. Despite growing importance, the subject of portfolio and investment management is new in the country and is largely misunderstood. In most cases, portfolio management has been practiced as a investment management counseling in which the investor has been advised to seek assets that would grow in value and / or provide income. Portfolio management is Continue reading

Abey Francis

The macroeconomic environment in marketing

An analysis of many companies’ financial results will often indicate that business people attribute their current financial success or failure to the state of the economy. For example, in 2002 the house builder Taylor Woodrow reported increased profits, which it attributed to a buoyant housing market, based on a high level of consumer confidence within the economy. Ten years earlier, a weak economy and falling house prices had led to big losses for many house builders, and some went out of business. Economic growth and the distribution of income Few business people can afford to ignore the state of the economy, because it affects the willingness and ability of customers to buy their products. Marketers therefore keep their eyes on numerous aggregate indicators of the economy, such as Gross Domestic Product (GDP), inflation rates, and savings ratios. However, while aggregate changes in spending power may indicate a likely increase for Continue reading

Abey Francis

Innovation-Triggered Change in Organizations

In the modern world of business, innovation has become the fulcrum point of the business enterprises which not only guides the diverse processes used by them but also the manner in which they manufacture the products or the services offered by them to the customers. Furthermore, within the spectrum of the business world, it is observed that the amount of competition which the diverse organizations had to face has increased in an exponential manner keeping in pace with the emergence as well as the mushroom of the various new enterprises. This trend observed with the business world has made it imperative for the organizations to not only take the help of different kinds of innovations but also integration these innovations within the framework of their organization so as to make the most of the business opportunities presented by these innovations. It is precisely here that the construct of leaders gains Continue reading

Abey Francis

Managing Political Risk in International Business

Political environment could involve a risk to businesses, domestic and foreign. Such risk is called political risk. Political risk is that perception by the businesses that their interests will get deteriorated when certain political upheaval happens. Political risk can occur in both democracies as well as in the totalitarian set ups as well. Political Risks are of different types. There are micro and macro political risks. Micro political risk is the one that affects a particular firm or class of firms. Usually firms owned by one class of businessmen, say, the foreigners from certain country, a particular business family or region/state. Micro political risk risk can be hedged. Macro political risk affects all. There is no sparing of any business, any nationality, any trade or industry. Formulating and Implementing Strategies to deal with Political Risk The following course of action, suggested by John D Daniels and Lee H Radebaugh will Continue reading

Abey Francis

Strategy Evaluation allows an Organization to take a Proactive Stance towards Shaping its own Future

In this modern era of 21st Century, it is really hard to imagine any result-orientated or business-orientated organizations to remain in static-quo. Usually those organizations are easily prompted to influences or changes from external environment elements. Based on PESTEL analysis, those external environment elements shall include political environment; economical environment; social environment; technological environment; environmental environment & legal environment. However, the impacts of each environment elements differ from time to time and in order to ensure the sustainability of an organization, it is important for an organization to constantly review their objectives and goals from time to time. Organization constitutes of a group of structured and organized people and with a specific purpose or goal to achieve in mind for the entity. Due to that, strategy plays a very important part in determine the success or failure of an organization. Carl Von Clausewitz once said, “Tactic is the art of Continue reading

Abey Francis

Clubbing of Income Under Income Tax

An assessee may reduce his tax liability by transferring his assets in favor of a person who is related to him. As per [Sec 60] to [Sec 64], income belonging to some other person will be taxed in the hands of the assessee in certain situation for the purpose of avoiding tax evasion. This is called   clubbing of income. Transfer of income without the transfer of assets: Income arising to nay person by virtue of any transfer of any income, without transferring the assets is deemed to be the income of the transferor and is taxable in his hands. The transfer may be revocable or not. There is no exception to this rule. Revocable transfer of assets: Any income arising to any person from an asset as a result of revocable transfer of asset shall be deemed to be the income of transferor. As per [Sec62] the income revocable Continue reading

Abey Francis