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 Customer Satisfaction Model – Based on American Customer Satisfaction Index (ACSI)

Marketing Management

Understanding Inflation-Linked Bonds (ILBs)

The recent Monetary Policy released by Reserve Bank of India (RBI) laid its thrust on controlling the spiraling inflation, especially the food price inflation. One of the reasons behind the Cash Reserve Ratio (CRR) hike was to “curtail the rising inflationary expectations (higher expected price trends)” In the past RBI has been concerned about the fact that a common man does not have any protection against rising prices, vis No Inflation Hedge. The common man has to rely on traditional but inefficient methods to hedge the real inflation risks, such as Gold and real assets such as commodities or real estate or even excessive stocking of goods In developed markets like US, the government has issues “Treasury Inflation Protected Securities” known as TIPS. Globally more than USD 1 trillion worth inflation linked bonds must be outstanding. Inflation-linked bonds (ILB) securities give an opportunity to market participants and investors to hedge Continue reading

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Case Study: Advertising Strategies of The Times of India

The Times of India (TOI) is one of the leading newspapers in India. It is the largest circulated English newspaper in India. It represents the growing influence of Indian middleclass and the value of English education in the country. The Chief Manager of advertising at The Times of India was evaluating effectiveness of its campaign in building The Times of India as a national brand. Most of the advertising in the past has been functional in nature. It has concentrated on promoting Times of India as a brand with functional elements like ‘largest circulated‘ English newspaper; most upmarket newspaper; the newspaper with a grip on future and other relevant functional attributes which are common for a newspaper. Recently they have shifted to emotional platform where the newspaper is being projected as something that chronicles the aspirations of Indians. It reflects struggle, turbulence, success and failure in an Indian’s life. He Continue reading

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Case Study of Dell: Simple but Effective Marketing Strategy

In 1984, with only $1,000 in startup capital, Michael Dell established Dell as the first company in its industry to sell custom-built computers directly to end users, bypassing the dominant system of using resellers to sell mass produced computers.  Since a young age Michael Dell has been intrigued and fascinated in the idea of eliminating unnecessary steps. So it was not surprising when he established a company where there marketing strategy was based on eliminating the middleman. “We sell computers directly to our consumers, deals directly with our suppliers, and communicate directly with our people, all without the unnecessary and inefficient presence of intermediaries. We call this “the direct model,” and it has taken us, to use a common phrase at Dell Computer Corporation, “direct to the top””. The direct business model eliminates retailers that add unnecessary time and cost, that could diminish Dell’s understanding of customer expectations. The direct Continue reading

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Relationship Between Marketing Research and Marketing Strategy

If the company has obtained an adequate understanding of the customer base and its own competitive position in the industry, marketing managers are able to make their own key strategic decisions and develop a  marketing strategy  designed to maximize the  revenues  and  profits  of the firm. The selected strategy may aim for any of a variety of specific objectives, including optimizing short-term unit margins, revenue growth,  market share, long-term profitability, or other goals. To achieve the desired objectives, marketers typically identify one or more target customer segments which they intend to pursue. Customer segments are often selected as targets because they score highly on two dimensions: The segment is attractive to serve because it is large, growing, makes frequent purchases, is not price sensitive (i.e. is willing to pay high prices), or other factors The company has the resources and capabilities to compete for the segment’s business, can meet their Continue reading

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Develop a Successful Industrial Promotion Program

Today’s economic conditions call for careful consideration of the  elements that are essential in developing an effective communication  program – whether it is industrial or consumer oriented. Promotional variables  must be artfully integrated if communication objectives are to be achieved most  effectively. Many of the principles that are followed in developing consumer  advertising programs are not only applicable but are necessary in developing an  effective industrial promotional program. The objective of industrial  advertising, for instance, is to communicate something about the company and its products. It should be designed, then, to enable the company and its sales people to become favorably known to current and potential customers, to convey specific and technical information regarding the characteristics of a particular product(s), to help sales people in their selling effort, to motivate distributors of industrial goods, and to reach those who either directly or indirectly influence the buying of industrial goods. An Continue reading

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External Commercial Borrowing (ECB)

External Commercial borrowing (ECB) refers to commercial loans availed by companies from non-resident lenders in the form of bank loans, buyers credit, suppliers credit, securitized instruments (e.g. floating rate notes and fixed rate bonds). A company is allowed   to raise ECB from internationally recognized source such as banks, export credit agencies, suppliers of equipment, foreign collaborators, foreign equity-holders, international capital markets etc. However, offers from unrecognized sources are not entertained. External Commercial Borrowings (ECBs) include bank loans, suppliers and buyers credits, fixed and floating rate bonds (without convertibility) and borrowings from private sector windows of multilateral Financial Institutions such as International Finance Corporation. In India, External Commercial Borrowings are being permitted by the Government for providing an additional source of funds to Indian corporate and PSUs for financing expansion of existing capacity and as well as for fresh investment, to augment the resources available domestically. ECBs can be used Continue reading

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