Blue ocean strategy makes companies to come out of ocean of bloody competition by creating market space which is uncontested and that makes the completion irrelevant. Since, dividing up existing demand and benchmarking the competitors, Blue Ocean strategy is regarding grow demand and break away from the competition. The business universe can be thought as a composition of two kinds of oceans the first is the red ocean and second one is the blue ocean. Red ocean includes all the industries which exist today and it is about the known market space. But on the other side Blue Ocean can be considered as industries which are not in existing today and it is called unknown market space. The industries boundaries are defined and well accepted in the red oceans. In the red oceans the rules of competitive games are well defined. The companies try to take away the greater share Continue reading
Modern Management Concepts
Fundamentals of Internal Auditing
What is Internal Auditing? Internal Auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. Internal auditing is a catalyst for improving an organization’s governance, risk management and management controls by providing insight and recommendations based on analyses and assessments of data and business processes. With commitment to integrity and accountability, internal auditing provides value to governing bodies and senior management as an objective source of independent advice. The Institute of Internal Auditors has defined internal auditing as follows: “Internal auditing is the independent appraisal activity within an organization for the review of the accounting, financial and other operation as a basis for protective and constructive service to the management. It is a type of control, Continue reading
Social and Commercial Profitability Analysis
Social or National Profitability Public projects like road, railway, bridge and other transport projects, irrigation, projects, power projects, etc for which socioeconomic considerations play a significant part, rather than mere commercial profitability. Such projects are analysis for their net socioeconomic benefits and the profitability analysis of such projects is known as social or national profitability analysis which is nothing but the socioeconomic cost benefit analysis done at the national level. Steps involved in determination of social or national profitability:- National/Social profitability analysis takes into account the real cost of direct costs and real benefit of direct benefits,. For instance, some of the inputs may be subsidized. Only the subsidized prices of input is what is relevant for assessing commercial profitability. However the national profitability analysis takes into account the real cost of inputs i.e. cost of input had they not been subsidized. Accordingly the required adjustment to direct cost of Continue reading
Three Models of Emotional Intelligence
The emotional intelligence field is a very new area of study in psychological research. The definition therefore is varied and is constantly changing. It was only in 1990 that Salovey and Mayer came up with the first published attempt in trying to define the term. They defined emotional intelligence as the ability to monitors one’s own and other feelings and emotions, to discriminate among them and to use this information to guide ones thinking and actions. Emotional intelligence to a larger extent involves “emotional empathy” which is the ability to concentrate on one’s emotions and recognize mood both of themselves and others. It further describes how well one is able to adapt to various life challenges like stress and difficult incidences. It also involves the ability balance “honest expression of emotions against courtesy, consideration and respect”. This would obviously involve possession of some level of good social and communication skills. Continue reading
The Role of Leadership in Innovation
Now more than ever, companies are putting more attention to innovation that make their products and services more competitive, thereby enable them to survive and flourish in the changeable and challenging global environment. Innovation is regarded as a key driver of competitive advantage in organizations. Innovation is defined as the first attempt to carry out a new creative idea, and translate it into practice. However, it isn’t easy; it’s a difficult and complex task. There are two primary factors influencing the success of innovation: technical resources (people, equipment, knowledge, money, etc.) and the abilities in the organisation to manage these resources to encourage innovations. Organisation is a kind of breeding ground for generating creative idea and capturing new opportunities. An innovative organisation has several key components: appropriate structure, effective team working, external focus, leadership, key individual, creative climate and etc. All the factors are absolutely essential. All innovative organisations needs Continue reading
The Role of Strategist in a Business Organization
Strategists are individuals or groups who are primarily involved in the formulation, implementation and evaluation of strategy. A strategist is like a root of an organization. In order to overcome the deadly traps in any organization a strategist must first think outside of the “box” and they must focus on both “forest and the trees.” They must need to concentrate on three aspects of human intelligence like Intellectual Intelligence (IQ), Emotional Intelligence (EQ), and Spiritual Intelligence (SQ). The mind of strategist must try to decide when to do strategy and when not to do strategy, clear target markets, competitive advantage, 80/20 focus and alignment. They need to do research, analyse the given situation with the available information’s and comes out with the best solutions. The heart of strategist must have the concepts, rules, power and politics play an important role in the development of any strategy. The end result Continue reading