Case Study on Entrepreneurship: Larry Page

Business Analysis

The Boundaryless Career: Modern Contemperory Perspective on Career

Human Resource Management

Concepts of Throughput Accounting and Theory of Constraints

Financial Management

Gantt Charts – Tool for Project Planning and Scheduling

Project Management

Kaizen – Understanding the Japanese Business Philosophy of Continuous Improvement

Operations Management

Logistics Information System

Meaning and Definition of Logistics Information System In logistics management, the main task is to control the supply of products to the final consumer. The business unit acts at the source while the consumer acts as the destination of the products. Supply chain management (logistics management) helps keep in track all activities that occur to the products from time of dispatch to time of consumption. The number of times that the products change hands is also accounted for in the logistics management and plays a very vital role in the whole process. Logistics information system is an important information system in a firm, it will affect company’s logistics decision making. It provide reliable and safe delivery and reducing transporting cost. Logistics information system is nothing but a part of Management Information System to manage, control and measure the logistical activities. These activities occur within the organization or as well as overall Continue reading

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Economic Exposure of Foreign Exchange Risk

Economic exposure is concerned with the present value of future operating cash flows to be generated by a company’s activities and how this present value, expressed in parent currency, changes following the foreign exchange rate movements. The concept of economic exposure of foreign exchange risk is most frequently applied to a company’s expected operating cash flows from foreign operations, but it can equally well be applied to a firm’s home territory operations and the extent to which the present value of those operations alters resultant upon changed exchange rates. For the purpose of convenience, the exposition that follows is based on a firm’s foreign operations. Some experts classify transaction exposure as a subset of economic exposure. They take this view arguing that the present value of an uncovered foreign currency denominated receivable or payable will vary as exchange rates vary. Whilst we accept the logic of this view, in this Continue reading

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Features of Option Contract

Some important features of Options Contract are: 1. Highly flexible: On one hand, option contract are highly standardized and so they can be traded only in organized exchanges. Such option instruments cannot be made flexible according to the requirements of the writer as well as the user. On the other hand, there are also privately arranged options which can be traded ‘over the counter’. These instruments can be made according to the requirements of the writer and user. Thus, it combines the features of ‘futures’ as well as ‘forward’ contracts. 2. Down Payment: The option holder must pay a certain amount called ‘premium’ for holding the right of exercising the option. This is considered to be the consideration for the contract. If the option holder does not exercise his option, he has to forego this premium. Otherwise, this premium will be deducted from the total payoff in calculating the net Continue reading

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Management of Foreign Exchange Risks

What gives rise to foreign exchange transactions? Basically, there are four important factors which give rise to foreign exchange deals or transactions: (a) trade (exports/imports); (b) transfer (remittances); (c) investment (say, FCNR transactions); and (d) speculation. If one were to ask what is the proportion of speculation to the first three in the global foreign exchange market, one would be shocked to know that speculation accounts for nearly 96 per cent of the foreign exchange turnover of about US$ 700 billion per day in the international foreign exchange market. As we are aware, banks have established huge dealing rooms, and foreign exchange dealers are consistently buying and selling foreign currencies to make profits for their own institutions. Although speculation or pure dealing, as opposed to a merchant transaction, is anathema to banking, it is not “uncontrolled” speculation, as most senior managements of banks have imposed stringent controls to contain exposures Continue reading

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Henri Fayol – Father of Modern Management Theory

Henri Fayol was a French industrialist and manager, working in the mine industry and looking for applicable solution to business management. He went to school in Lyon (the second largest city of France) and enrolled at the engineering school of Saint-Etienne (Ecole Nationale des Mines). He received an education as a mine engineer and graduated in 1860 from this school at the age of 19. He was first employed as an engineer at Boigues, Rambourg and Co. In 1874, this company became Commentry-Fourchambault SA or Comambault). It is important to notice he spend all his professional life in the same company experiencing its expansion and knowing well its structure and production methods. Fayol was first remarked as an engineer when he wrote a paper proposing a solution to fire hazard, fire fitting and spontaneous combustion in mine, destructing men and installations. In 1866, he was appointed director of a single Continue reading

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Competitive Differentiation Strategy – Meaning, Areas, Factors and Drivers

An organization that adopts a differentiation strategy seeks to distinguish itself from competitors through the quality of its products or services. Organizations that successfully implement a differentiation strategy are able to charge more than competitors because customers are willing to pay more to obtain the extra value they perceive. For example in case of Rolex they pursue a differentiation strategy, Rolex watches are handmade precious metals like gold or platinum and stainless steel and are subject to strenuous tests of quality and reliability. The firm’s reputation enables it to charge thousands of dollars for its watches. Firms use differentiation strategy to achieve a competitive advantage by providing unique products and these products attributes high quality and innovations. Differentiation is not just limited to the product but it also covers the delivery system and many other factors. Firms provide additional services to its customers with these differentiation characteristics which brings more Continue reading

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