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

Know Your Customer (KYC) Guidelines in Banking

Know Your Customer (KYC) It is important, in these days of drugs smuggling, terrorism, financial fraud, money laundering and arms dealing that banks know whom their customers are. Banks must be comfortable with the bona fides and the integrity of their customers. The need increases as external people like general selling agents introduce a number of customers. Apart from this, in order to develop a long- term relationship, it is an imperative that the banker knows as much as possible about his customer. What does KYC mean? It means that a banker should know his customers. He should know about their business and as far as possible the nature of their earnings and their moral standing. This is why it is recommended that persons known to the bank recommend prospective customers. Even though the introducers cannot be sued or otherwise held responsible, the introducers have a moral responsibility. A banker Continue reading

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L’Oreal SWOT Analysis

Prior to the establishment facial cosmetics, L’Oreal can be identified as a hair-colour formula which has been introduced by a French chemist known as Eugene Schueller in 1907. It was then known as”Aureole”. Schueller formulated and manufactured his own products which were sold to Parisian hairdressers. It was only in 1909 that Schueller registered his company as “Societe Francaise de Teintures Inoffensive pour Cheveus”, the future L’Oreal. Scheuller began exporting his products, which was then limited to hair-coloring products. There were 3 chemists employed in 1920. In 1950, the research teams increased to 100 and reached 1,000 by 1984. Today, research teams are numbered to 2,000 and are still expected to increase in the near future. Through agents and consignments, Scheuller further distributed his products in the United States of America, South America, Russia and the Far East. The L’Oreal Group is present worldwide through its subsidiaries and agents. L’Oreal Continue reading

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An Overview of Indian Commodity Exchanges

A commodities exchange is an exchange where various commodities and derivatives products are traded. Most commodity markets across the world trade in agricultural products and other raw materials (like wheat, barley, sugar, maize, cotton, cocoa, coffee, milk products, pork bellies, oil, metals, etc.) and contracts based on them. These contracts can include spots, forwards, futures and options on futures. Other sophisticated products may include interest rates, environmental instruments, swaps, or ocean freight contracts. Commodity exchanges are institutions which provide a platform for trading in ‘commodity futures’ just as how stock markets provide space for trading in equities and their derivatives. They thus play a critical role in robust price discovery where several buyers and sellers interact and determine the most efficient price for the product. In India there are 21 regional exchanges and three national level multi-commodity exchanges. After a gap of almost three decades, Government of India has allowed Continue reading

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Collective Bargaining – Definition, Features and Process

Collective bargaining involves discussions and negotiations between two groups as to the terms and conditions of employment. It is called ‘collective’ because both the employer and the employee act as a group rather than as individuals. It is known as ‘bargaining’ because the method of reaching an agreement involves proposals and counter proposals, offers and counter offers and other negotiations. Thus collective bargaining: is a collective process in which representatives of both the management and employees participate. is a continuous process which aims at establishing stable relationships between the parties involved. not only involves the bargaining agreement, but also involves the implementation of such an agreement. attempts in achieving discipline in the industry is a flexible approach, as the parties involved have to adopt a flexible attitude towards negotiations. The main characteristics of collective bargaining are: Collective Process: The representatives of both the management and the employees participate in it. Continue reading

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Universal Banking – Concept, Meaning, Advantages and Limitations

Universal Banking includes not only services related to savings and loans but also investments. However in practice the term ‘universal banks’ refers to those banks that offer a wide range of financial services, beyond commercial banking and investment banking, insurance etc. Universal banking is a combination of commercial banking, investment banking and various other activities including insurance. According to Cheang (2004), the universal bank can be defined as “the banking system in which the bank offer the whole variety of financial products and services.” He also states that it combines both investment banking and commercial banking, for example, lending and taking a deposit, selling insurance, issuing underwriting, investing and trading in securities. To me therefore, the universal bank refers to the banking system which operates completely financial services like a supermarket. It is a multipurpose and multi-functional financial supermarket providing both ‘Banking and Financial Services’ through a single window. As Continue reading

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Batch Production – Meaning and It’s Key Characteristics

Batch production is one of manufacturing methods where limited quantity of each type of product is authorized for manufacture at a time. It is characterized by the manufacture of a limited number of products produced at periodic intervals and stocked in warehouses as finished goods awaiting sales. Typical examples of such batch production are process industries such as pharmaceuticals, paints, chemicals, medium and heavy engineering industry engaged in the manufacture of electric motors, switch gear, heave motor vehicles, internal combustion engines; manufacturer of readymade garments etc. Characteristics of Batch Production Short Runs: Short production runs and frequent changes of setup also characterize batch production. The equipment and the assembly setup is used for a limited number of parts or assemblies and is then changes to make a different product. The production is generally made to stock. In project production, each project has a definite beginning and a definite end. Skilled Continue reading

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