Case Study on Entrepreneurship: Larry Page

Business Analysis

The Boundaryless Career: Modern Contemperory Perspective on Career

Human Resource Management

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

The Capital Account component in Balance of Payments (BoP)

Capital account records public and private investment, and lending activities. It is the net change in foreign ownership of domestic assets. If foreign ownership of domestic assets has increased more quickly than domestic ownership of foreign assets in a given year, then the domestic country has a capital account surplus. On the other hand, if domestic ownership of foreign assets has increased more quickly than foreign ownership of domestic assets in a given year, then the domestic country has a capital account deficit. It is known as “financial account”. IMF manual lists out a large number of items under the capital account. But India, and many other countries, has merged the accounting classification to fit into its own institutional structure and analytical needs. Until the end of the 1980s, key sectors listed out under the capital account were: (i) private capital, (ii) banking capital, and (iii) official capital. Private capital Continue reading

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Evaluate a Businesses Overall Financial Performance Using Profitability Ratios

An accounting ratio is made by dividing one account’s transactions into another. The aim is to achieve a comparison that is easy as well as beneficial to clarify. Evaluate ratios for one Industry enterprise over several years. A graph of the ratio may allow a long-term trend. The same ratio is from many firms of similar size in the same industry. These ratios are used to assess performance and, with other data, forecast prospect profitability. Along with that is the future viability in addition to the soundness, which will repay loans as well as credit, additionally pay the interest along with dividends. Since profits are divided amongst shares, the profit per share indicates a possible dividend. While profitability ratios “evaluate a business’ overall financial performance through appraising its capability to produce revenues in surplus of service costs as well as other expenses. There are at least four profitability ratios, which Continue reading

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Evaluating a Company’s Capital Structure using Ratios

A business organization may be financially sound today but it may loose strength tomorrow because of losses. Therefore it is necessary to maintain a judicious balance between the owned capital and borrowed capital. The following ratios have been calculated to analyze the capital structure of a company. 1. Capital Gearing Ratio Capital Gearing Ratio of an organization measures the relationship between equity share capital to preference capital and loan capital. ‘Capital gearing’ refers to the ratio between the variable cost bearing capital and fixed cost bearing capital of the organization and helps to frame the capital structure of the organization. Capital gearing may be of three types: High Gearing Capital, which indicates the excess of interest bearing long-term finance over the equity funds; Low Gearing Capital, which indicates the excess of equity funds over the interest bearing long-term finance; and Evenly Geared, which indicates the equality between the interest bearing Continue reading

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SWOT analysis of Universal Banking in India

The solution of Universal Banking was having many factors to deal with which further categorized under Strengths, Weaknesses, Opportunities and Threats (SWOT); Strengths: Economies Of Scale: The main advantage of Universal Banking is that it results in greater economic efficiency in the form of lower cost, higher output and better products. Various Reserve Banks Committees and reports in favor of Universal Banking, is that it enables banks to exploit economies of scale and scope. It means a bank can reduce average costs and thereby improve spreads if it expands its scale of operations and diversifying activities. Profitable Diversions: By diversifying the activities, the bank can use its existing expertise in one type of financial service in providing other types. So, it entails less cost in performing all the functions by one entity instead of separate bodies. Resource Utilization: A bank possesses the information on the risk characteristics of the clients, Continue reading

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Setting a Reasonable Profit Target in Business

A business firm has various objectives to achieve. The survival of a firm depends on the profit it can make. So, whatever the goal of the firm may be, it has to be a profitable firm. The other goals of a business firm can be sales revenue  maximization,  maximization  of firm’s growth,  maximization  of managers’ utility function, long-run survival, market share or entry-prevention. In technical  sense    maximization  of profit, as a business objective, may not sound practical , but profit has to be there in the objective function of the firms for its survival. The firms may differ on the level of profit and the extent to which it is to be achieved by various firms. Some firms set standard profit as their objective, while some of them may set target profit and some reasonable profit as their objective to be achieved. A reasonable profit, as a business objective, Continue reading

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Human Resources as a Strategic Partner in an Organization

The general scenario in most companies is as follows. HR management teams have  well-developed visions of their departments, their roles and responsibilities. But, the  senior management is generally skeptical of HR’s role in the firm’s success. They  generally consider HR to just be another necessary appendage but not something that  can contribute to the success of the company. Even if the senior management does  believe that human capital is their most prized possession and asset, they cannot  understand how the HR team can make this belief come alive. There is one reason for all of this. Human capital is an intangible asset and HR’s  influence on firm performance is difficult to measure. The standard elements of a firm’s  resource architecture that are measured include total compensation, employee turnover,  cost per hire, percentage of employees that undergo performance appraisals and  percentage employee satisfaction. The question to be asked is: Are these Continue reading

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