General Business Articles

Exit Strategy in a Business Plan

A business plan is a written documentation of which describes the business, the objectives of the business, its strategies, the market of which the business is in and the financial forecasts. The business plan has many functions, from securing external funding to measuring the success with the business itself. It essential when starting up a business for a business to have a realistic working business plan.

The last portion of any business plan is the exit strategy. It may seem strange to develop a strategy this soon to leave the business, but potential investors will want to know the long-term plans.… Read the rest

Abey Francis

Role of Entrepreneurship in Economic Development

The entrepreneur who is a business leader looks for ideas and puts them into effect in fostering economic growth and development. Entrepreneurship is one of the most important inputs in the economic development of a country. The entrepreneur acts as a trigger head to give spark to economic activities by his entrepreneurial decisions. He plays a pivotal role not only in the development of industrial sector of a country but also in the development of farm and service sector. The major roles played by an entrepreneur in the economic development of an economy are discussed in a systematic and orderly manner as follows.… Read the rest

Abey Francis

Literature Review – Strategic Alliances

Strategic alliances are collaborative organizational arrangements that use resources or governance structures from more than one present organization. Strategic alliances have three main characteristics,

  1. First, two or more firms partnering remain independent to the formation of the alliance.
  2. Second, alliances perform the feature of ongoing mutual interdependence, from which one party is vulnerable to the other party. Mutual interdependence between party leads to shared control and management, which contributes to the complexity of alliance management and often creates significant administrative costs.
  3. Third, because the partners of alliances remain independent, there is uncertainty as what one party expects the other party to do.
… Read the rest
Abey Francis

Management Audit – Definition, Scope, Need, Advantages and Limitations

Management audit is a method of independent and systematic evaluation of the management activities at all levels of management to ascertain the functions, efficiency and achievement of the management (i.e. policies) as compared to standards set by the company.

  • According to L. R. Howard, “Management audit is an investigation of business from the highest level downward in order to ascertain whether sound management prevails throughout, thus facilitating the most effective relationship with outside world and smooth running of internal organization.”
  • As per Taylor and Perry; “Management auditing is a method to evaluate the efficiency of management at all levels throughout the organization, or more specifically, it comprises the investigation of a business by an independent body from the highest executive level downwards, in order to ascertain whether sound management prevails through and to report as to its efficiency or otherwise with recommendations to ensure its effectiveness where such is not the case.”
… Read the rest
Abey Francis

Concept of Decisions and Decision Making Process in Crisis Management

External and Internal business environment have effects on business operations and various strategic decisions taken by organizations. If organizations are not aware about the change in business environment or if they fail to predict the change, it may create crisis for the organization. Decisions and decision-making process has important role in crisis management
approach.

According to Ducker “A decision is a judgment and choice between alternatives. It is rarely a choice between what is right or wrong, at best it is a choice between “almost right” and “probably wrong”- but more often choice between two courses of actions neither of which is probably more nearly right than the other”

Decision-making is a dynamic process, a complex search of information, alternatives and choices.… Read the rest

Abey Francis

Role of Mission Statements in Guiding Marketing Planning

It is vital that a marketing plan has a mission statement that states the purpose of the marketing plan, and explaining why a person is in a business. Both personal and business goals should be included in the mission statement. Although the mission statement is usually a short paragraph, of one to three sentences long, but it is important because it focuses a company’s attention on the company’s most important goal.

The mission statement will review company’s business goals and objectives and identify marketing strategies that will achieve them. The managers and employees who do not understand their organizations goals and objectives will face a significant challenge and have a higher likelihood will not achieve it.… Read the rest

Abey Francis