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

Financial Management Decisions

Financial Management is concerned with the acquisition and utilization of capital funds in meeting the financial needs and overall objectives of a business enterprise. Thus the primary function of finance is to acquire capital funds and put them for proper utilization, with which the firm’s objectives are fulfilled. The firm should be able to procure sufficient funds on reasonable terms and conditions and should exercise proper control in applying them in order to earn a good rate of return, which in turn allows the firm to reward the sources of funds reasonably, and leaves the firm with good surplus to grow further. These activities viz. financing, investing and dividend payment are not sequential they are performed simultaneously and continuously. Financial Management Decisions –  Three Major Decisions in  Financial Management The Financial Management can be broken down in to three major decisions or functions of finance. They are: (i) the investment Continue reading

Abey Francis

Case Study: Lehman Brothers Fraud and Bankruptcy

The functioning of any company that operates on the international level and has huge incomes is always related to various risks. There is a great possibility of financial collapse and bankruptcy as the conditions of the modern market could be considered complicated. It is obvious, that the failure of a great international corporation could not but impact wide sections of the population and numerous companies whose functioning depends on its success. However, a case is more complex when there is a possibility of a fraud that might pursue various aims. Under these conditions, depositors and other actors who depend on the revenues of a company that is going to cheat or use some inappropriate strategies that could help owners of a company to obtain huge and undocumented incomes might suffer. That is why it is crucial to analyze a case of this sort to understand the main model according to Continue reading

Abey Francis

Case Study: Corporate Merger Between Volkswagen and Porsche

The German Dr. Ing. H. C. F. Porsche (Porsche) automobile manufacturer specializes in sports cars and a new line of all-terrain vehicles. In the mid-2000s, Porsche was recognized as a leading global brand for its consistent quality and cultural icon status with models including the 911, the Boxster, and the Cayenne. The company achieved strong financial performance cementing Porsche’s market dominance. Porsche’s operating profit increased from 1,204 million in 2002 to 1,832 million in 2006, representing a growth rate of 52.1%. The net profit of the company also increased to 1,368 million in 2006, an increase of 74.8% over 2005. One of the central elements of Porsche’s business model is its low manufacturing depth, which means that it does not have huge centralized production plants. Many building processes are outsourced while Porsche concentrates on its core competencies of development, engine production, quality control, and sale of vehicles. This allows Porsche Continue reading

Abey Francis

Porters Five Forces Analysis of Samsung

Samsung Electronics Co., Ltd. is a worldwide electronics company founded in 1938, with its headquarters in South Korea. Along with its subsidiaries, Samsung Electronics is responsible for the production, distribution and sale of a wide range of devices and electronic products throughout the world. The products that Samsung Electronics produces are developed both for individual consumers as well as for industries, and the company is also responsible for the development of network systems. In 2009, Samsung Electronics had been in business for 40 years, and was ranked number one in terms of sales for all global information technology (IT) companies for the first time. Currently, Samsung Electronics boasts around 30% of the global market share for smartphones, and has seen growth in other markets also. Samsung Electronics is also renowned for its innovation, receiving 30 Innovation Awards at the Consumer Electronics Show in 2012, which is considered to be the Continue reading

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Unemployment – Meaning, Causes and Effects

The economists describe unemployment as a condition of jobless within an economy. Unemployment is lack of utilization of resources and it eats up the production of the economy. It can be concluded that unemployment is inversely related to productivity of the economy. Unemployment generally defined as the number of persons (It is the percentage of labor force depends on the population of the country) who are willing to work for the current wage rates in society but not employed currently. Unemployment reduces the long run growth potential of the economy. When the situation arises where there are more other resources for the production and no man power leads to wastage of economic resources and lost output of goods and services and this has a great impact on government expenditure directly. High unemployment causes less consumption of goods and services and less tax payments results in higher government borrowing requirements. The Continue reading

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PRINCE2 Methodology in Project Management

PRINCE2 is one of the world’s most widely used project management methodology. It was originally developed for UK government IT projects, its use has been widened to large projects of all kinds, and it has been taken up internationally in more countries in both public and private sectors such as police forces, telecommunication companies, banks, as well as other large commercial organisations and also used in enterprise resource planning implementations. PRINCE2 stands for Projects in Controlled Environment and it was developed at a time when the UK government was outsourcing an increasing amount of its work, and the methodology incorporates best practice on the integration of internal teams and external agencies. PRINCE2 takes a process approach to project management, fitting each process in to a framework of essential components that need to be applied throughout the project. PRINCE2 focuses mainly on the aspects of managing projects in the life cycle Continue reading

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