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

The Cost of Preference Capital

The measurement of the cost of preference capital poses some conceptual difficulty. In the case of debt, there is a binding legal obligation on the firm to pay interest, and the interest constitutes the basis to calculate the cost of debt. However, in the case of preference capital, payment of dividends is not legally binding on the firm and even if the dividends are paid, it is not a charge on earnings; rather it is a distribution or appropriation of earnings to preference shareholders. One may be, therefore, tempted to conclude that the dividends on preference capital do not constitute cost. This is not true. The cost of preference capital is a function of the dividend expected by investors. Preference capital is never issued with an intention not to pay dividends. Although it is not legally binding upon the firm to pay dividends on preference capital, yet it is generally Continue reading

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Case Study: Sony’s Business Strategy and It’s Failure

Sony is the combination of two word sonus and sonny. The both words sonus and sonny is a latin word. The literal meaning of sonus is sound and, sonic and sonny is little son. Easy to pronounce and read in any language, the name Sony, which has a lively ring to it, fits comfortably with the spirit of freedom and open-mindedness. Since, Sony is the combination of two word “sonus” and “sonny”, represents a very small group of young people who have the energy and passion towards unlimited creations and innovative ideas. Sony foundation was started in 1946 when Masaru Ibuka and Akio Morita worked together with a small team of obsessive and committed group of employees build “Tokyo Tsushin Kenkyujo” (Totsuko), or “Tokyo Telecommunications Research Institute” (billion dollar global conglomerate). In 1958 the company was formally adopted “Sony Corporation” as its corporate name. The main objective of the company Continue reading

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Meaning of Demerger

It has been defined as a split or division. As the same suggests, it denotes a situation opposite to that of merger. Demerger or spin-off, as called in US involves splitting up of conglomerate (multi-division) of company into separate companies. This occurs in cases where dissimilar business are carried on within the same company, thus becoming unwieldy and cyclical almost resulting in a loss situation. Corporate restructuring in such situation in the form of demerger becomes inevitable. Merger of SG chemical and Dyes Ltd. with Ambalal Sarabhai enterprises Ltd. (ASE) has made ASE big conglomerate which had become unwieldy and cyclic, so demerger of ASE was done. A part from core competencies being main reason for demerging companies according to their nature of business, in some cases, restructuring in the form of demerger was undertaken for splitting up the family owned large business empires into smaller companies. The historical demerger Continue reading

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Algorithmic Decision Making – Usage Algorithms in Decision Making

Algorithms play a significant role in our day-to-day lives. However, what is an “algorithm”? there is a definition of algorithm: a set of steps to accomplish a task. We live in an algorithmic culture, where algorithms are ubiquitous, pervasive and unnoticed. For example, algorithm can help people predicts the spend time from home to school, and then manage the time. And algorithms determine computer operation, stock prices, espionage tactics, social networks, even the movies you watch, it shapes human society in everywhere. The human society ran by algorithms, it helps people to make daily decision and solve problem. Algorithmic culture is a historical process that is used to organize human culture by means of computational process. The humans have more depended on computational processes to entrust cultural work – the classification, sort, order, and rank of people, places, objects and ideas in the past 30 years. It means algorithmic culture is Continue reading

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Vendor Managed Inventory (VMI)

Vendor Managed Inventory (VMI) is a supply chain practice where the inventory is monitored, planned and managed by the vendor on behalf of the consuming organization, based on the expected demand and on previously agreed minimum and maximum inventory levels. In its simplest form, Vendor Managed Inventory is the process where the vendor assumes the task of generating purchase orders to replenish a customer’s inventory. VMI is a term that is used to describe many types of supply chain initiatives. Traditionally, success in supply chain management derives from understanding and managing the trade off between inventory cost and the service level. The Vendor Managed Inventory Approach Vendor Managed Inventory reduces stock-outs and reduces inventory in the supply chain. Some features of VMI include:- Shortening of the supply chain Centralized forecasting Frequent communication of inventory, stock-outs, and planned promotions. Electronic Data Interchange (EDI) linkages facilitate this communication. No manufacturer promotions Trucks Continue reading

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Stress Management: Managing Job Stress

Job stress comes in many different forms and affects your body in various ways. Minor sources of stress may include equipment that won’t work or phones that won’t quit ringing. Major stress comes from having too much work, not having enough work, doing work that is unfulfilling, fearing a job layoff, or not getting along with your boss. Usually it is the major sources of stress that lead to burnout, causing people to become unhappy and less productive in their work. Job stress can affect your health and home life as well. Low levels of stress may not be noticeable; slightly higher levels can be positive and challenge you to act in creative and resourceful ways; and high levels can be harmful, contributing to chronic disease. The major sources of job stress fall into seven categories: Control. This factor is the most closely related to job stress. Studies show that Continue reading

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