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

Rumours in Business Organizations

Business Communication

Operating Lease – Definition and How It Differs From a Finance Lease

The International Accounting Standards Committee defines an Operating Lease as “any lease other than a finance lease”. An Operating Lease has the following characteristics: The lease term is significantly less than the economic life of the equipment. The lessee enjoys the right to terminate the lease at short notice without any significant penalty. The lessor usually provides the operating know-how, suppliers, the related services and undertakes the responsibility of insuring and maintaining the equipment in which case an operating lease is called a ‘wet lease’. An operating lease where the lessee bears the costs of insuring and maintaining the leased equipment is called a ‘dry lease’. From the features of an operating lease, it is evident that this form of a lease does not shift the equipment-related business and technological risks from the lessor to the lessee. The lessor structuring an operating lease transaction has to depend upon multiple leases Continue reading

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Case Study of Nike: The Cost of a Failed ERP Implementation

Nike, was founded in the year 1957 by Knight and the company since the very beginning manufacturing higher quality sports shoes for several sports inclusive of athletics, football, volleyball etc. Additionally, the company also has been involved in manufacturing equipment’s for fitness and related sports apparels such as caps. The organization since its development has always been involved in making higher commitments to innovative products. In the fiscal year of 2012, 24.1 billion dollars was generated by Nike with an increase by 16 percent since the last year. The organization further made announcements of increasing this total revenue generated in the 2015 fiscal year to reach 30 billion. More than 50000 employees across the globe are employed by Nike and there are several contracts wherein the company employs more than 80000 individuals. The mission statement of Nike is to develop inspiration and to consistently innovate for each sports person across Continue reading

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Principles of Learning in Training

Since training is a form of education some of the principles that emerge from learning theory can be logically applied to training. Learning is the human process by which skills, knowledge, habits and attitudes are acquired and utilized in such a way that behavior is modified. The principles of learning in training provide additional insight into what makes people learn most effectively. The principles have been discovered, tested, and used in practical situations. The following Principles of learning should be satisfied by a good training program: Practice – Employees learn more fast when theory and practice go hand in hand. Employees under training should be given an opportunity to participate in actual work performance. Active Process – The individual learn better when more of his senses are utilized in the efforts and he become more involved in the process of learning. Guidance – Learning is more efficient if it is Continue reading

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Provision for Depreciation

Depreciation is the cost allocated as expense which has the effects of reducing the value of a fixed asset during the period it is used by a business. It is a non-cash expense and need to be charged to the Profit & Loss account yearly which lowers the company’s profit which increasing free cash flow. Fixed assets are long life. They are bought to assist in the operation of business but not with the main purpose of resale. They are in fact revenue-generating assets as they help to gain profit depending on their useful lives. Depreciable items include machinery, vehicles, buildings and fixtures.  There are reasons why assets may depreciate: Obsolescence: Assets are replaced because new and more efficient technology has been developed. Depletion or Exhaustion: The values of assets such as mines, quarries and oil wells diminish due to the extraction of raw materials from them. Passage of Time: Continue reading

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Profit Maximization Under Price Discrimination

The aim of the discriminating monopolist is to maximize profits.   We can thus derive the condition of profit maximization under price-discrimination by extending the normal theory of the firm to a case where there are two or more markets instead of just one market.   We can build up the theory of profit maximization on the basis of certain assumptions : There are two markets A and B. The aim of the monopolist is to maximize profits. He enjoys monopoly position in both the markets. The elasticity of demand for the product in the two markets is different (This is perhaps the most essential condition for price discrimination to be profitable).   Price discrimination, according to Stonier and Hague “will be profitable only if elasticity of demand in one market is different from elasticity of demand in the other.   In general, it will pay a monopolist to discriminate Continue reading

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Attributes of Ideal Currency and a Sound Currency System

Attributes of the Ideal Currency: If the ideal currency existed in today‘s world, it would possess three attributes: Fixed value. The value of the currency would be fixed in relationship to other major currencies so that trades and investors could be relatively certain of the foreign exchange value of each currency in the present and into the near future. Convertibility. Complete freedom of monetary flows would be allowed, so that traders and investors could willingly and easily move funds from one country and currency to another in response to perceived economic opportunities or risks. Independent monetary policy. Domestic monetary and interest rate policies would be set by each individual country so as to pursue desired national economic policies, especially as they might relate to limiting inflation, combating recessions, and fostering prosperity and full employment. Unfortunately, these three attributes usually cannot be achieved at the same time. For example, countries whose Continue reading

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