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

Necessity for Alignment between Corporate Strategy and HR Strategy

Current business environmental forces such as competition, innovation, globalization, technological advancement etc has created major impact on organizational behavior. These changes come in different forms. Sometimes it required to reorganize the structure of the organization and due to this organization may have to introduce new roles and new people. Sometimes it may require to change the culture of the organization. In all these situations HRM function plays a major role. Further recent development of new concepts such as knowledge workers has increased the complexity of HRM function. Nowadays HR has become strategic assets for organizations. From an IT company’s view point intellectual property that is knowledge of the software developers is crucial for their business than the physical asset of the company. This importance has heightened due to the transition of old economic conditions to knowledge based economy where it considers the intellectual property as one of key success factors Continue reading

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Structuring Phase of the Acquisition Process

Once the target firm has been identified and valued, the acquisition moves forward into the structuring phase. There are three interrelated steps in this phase. The first is the decision on how much to pay for the target firm, synergy and control built into the valuation. The second is the determination of how to pay for the deal, i.e., whether to use stock, cash or some combination of the two, and whether to borrow any of the funds needed. The final step is the choice of the accounting treatment of the deal because it can affect both taxes paid by stockholders in the target firm and how the purchase is accounted for in the acquiring firm’s income statement and balance sheets. Deciding on an Acquisition Price The  value determined in consideration of synergy and control represents a ceiling on the price that the acquirer can pay on the acquisition rather Continue reading

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Introduction to Merchant Banking

Definition of Merchant Banking The Notification of the Ministry of Finance defines merchant banker as; “Any person who is engaged in the business of issue management either by making arrangements regarding selling, buying or subscribing to securities as manager-consultant, adviser or rendering corporate advisory services in relation to such issue management” The Amendment Regulation specifies that issue management consist of prospectus and other information relating to issue, determining financial structure, tie-up of financiers and final allotment and refund of the subscriptions, underwriting and portfolio management services. In the words of Skully “A Merchant Bank could be best defined as a financial institution conducting money market activities and lending, underwriting and financial advice, and investment services whose organization is characterized by a high proportion of professional staff able to able to approach problems in an innovative manner and to make and implement decisions rapidly.” Nature of Merchant Banking Merchant banking is Continue reading

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What is Value-Based Management?

Today’s work life has become so demanding, fast paced, stressful, ambiguous and chaotic due to our lifestyle that we are forced to seek Value-based answers and ways of achieving personal stability within. We have come to realize that our inner wisdom is the only source that will sustain our adaptation and stability in the long run. More specifically, it has to do with how we define ourselves, view the world, relate to others, and make ethical/ moral decisions. Introduction of spirituality in an organization culture will help employees desire, to integrate personal life values with professional life. What is Value-Based Management? Value management is distinct from other management approaches in way that it is simultaneously includes attributes which are not normally found together. It brings together within a single management system. Alignment of business vision, goals, strategies, policies and practice has always been the key to the effectiveness and success Continue reading

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Current Cost Accounting – Definition and Criticisms

Current Cost Accounting (CCA) attempts to provide more realistic book values by valuing assets at current market buying prices. It takes into account time-value of money and inflation. It is more complex than the traditional accounting, and it has created controversy about what adjustments are appropriate. Unlike Historical Cost Accounting, there is no need for inventory cost flow assumptions such as last-in-first-out and weighted average. The business profit in CCA shows how the entity has gained in financial terms the increase in cost of its resources, which is ignored by historical cost accounting. Differentiating operating profit from holding gains and losses has claimed to enhance the usefulness of information being provided by CCA. Holding gains are different from trading income as they are due to market-wide movements which are beyond the control of the management.  Therefore,  Current Cost Accounting doesn’t rewards managers for profits from holding gains and losses which Continue reading

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3Ps of Marketing Communication

An organisations marketing communication strategy are represented by 3Ps: Push, Pull and Profile. Push strategy: This strategy promotes products to retailers or wholesalers in order to force the product line down the distribution line. Pull strategy: This strategy is the opposite to push strategy where communication reaches to consumer or end user first with an aim to attract the retailer wholesaler channel to purchase the product line. Profile Strategy: In order to satisfy an organisations promotional goals profile strategy is used. This strategy mostly aims towards satisfying stakeholder needs. 1. Push Strategy Main focus of push strategy is to use minimal or no advertising to get the product to the buyers. This strategy acquires customers by personal sale. One of the places can be trade-shows where products are shown to interested business. In trade shows distributors get to know about product line up of a company with their business expertise Continue reading

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