Goldratt’s Theory of Constraints – Constraint Management

An Israeli physicist, Eliyahu Goldratt wrote a book titled ‘The Goal’, about a factory manager’s quest to save his factory from being closed down for lack of profitability. It chronicles the process that the manager and his staff go through as they learn how to save their factory. What they learn is how to apply the principles of what Mr. Goldratt calls the “Theory of Constraints.” Theory of Constraints (TOC) is a logic-driven  approach which focuses on  system improvement. The core idea of TOC is that every organization has at least one constraint that prevents management from achieving the goal of the organization to a larger degree. A system can be defined as a collection of interrelated, interdependent components or processes that act in concert to turn inputs into defined outputs in pursuit of a particular goal. Linking systems to chains, TOC defines  weakest link as a Constraint. Constraint limits Continue reading

Interior Design Considerations in Retail Store Design

The interior design of the retail store determines the way the merchandise is  stored and offered for sale. The interior design should allow easy access to merchandise  for customer. There are several layout patterns that enhance the customer’s access  to goods. The interior also projects an image to the shopper that should be  consistent with that conveyed by the store’s promotion, price, and merchandise  and with the exterior design. The store interior must make the customer  comfortable and encourage shopping. The objective of layout management is to obtain the maximum benefits  from the space available. There are issues that retail managers should consider  when they make layout decision: 1. Value of Space The value of space, depending on the location within the store, is  expressed in sales per square foot of floor space, and sales per cubic foot of cubic  space. Sales per square foot is the typical measure for Continue reading

The Asian Development Bank (ADB)

Origin During the 1950s, it was strongly felt that there should be a bank for Asia like the World Bank to meet the development needs of this region. This view was suggested for the first time at the ministerial Conference on Asian Cooperation held at Manila in December 1963. The Conference constituted a working group of experts which submitted its report to the UN Economic commission for Asia and Far East (ECAFE) at its session held at Wellington in March 1965. It was on the basis of this report that an Agreement Establishing the Asian Development Bank was drafted and adopted at the Second Ministerial Conference on Asian Economic Cooperation at Manila in November-December 1965. By January 1966, 33 countries had signed its Charter and the Asian Development Bank was set up on December 19, 1966 with its headquarters at Manila in the Philippines. Objectives The main aim for the Continue reading

Case Study: Citibank’s Indian Business Model

Citigroup opened its first office in India in Kolkata (Calcutta) in 1902. With capital nearing US$ 1 billion it is the single largest foreign direct investor in the financial services industry in India. It has become one of India’s most diverse and recognized financial service providers operating through 40 branches of Citibank N.A. across 20 cities and through various finance companies operating directly/indirectly out of locations across the country. Citigroup India offers a complete range of corporate and investment banking services under the “Citigroup” brand name, consumer banking products and services under the “Citibank” banner and consumer finance under the “CitiFinancial” banner. Citigroup has a customer base of over 900 large corporate, over 22,000 small and medium enterprises and over 3,500,000 retail customers. The global corporate and investment banking group provides a range of financial services including treasury management, transaction services including cash management and trade services, securities custodianship, foreign Continue reading

Different Types of Swaps

In finance, a SWAP is a derivative in which two counterparties agree to exchange one stream of cash flow against another stream. These streams are called the legs of the swap. Conventionally they are the exchange of one security for another to change the maturity (bonds), quality of issues (stocks or bonds), or because investment objectives have changed. A swap is an agreement to exchange one stream of cash flows for another. Swaps are most usually used to: Switch financing in one country for financing in another To replace a floating interest rate swap with a fixed interest rate (or vice versa) In August 1981 the World Bank issued $290 million in euro-bonds and swapped the interest and principal on these bonds with IBM for Swiss francs and German marks. The rapid growth in the use of interest rate swaps, currency swaps, and swaptions (options on swaps) has been phenomenal. Continue reading

Concept of Power in Management

Power in Management Power is easy to feel but difficult to define. It is the potential ability of a person or group to influence another person or group. It is the ability to get things done the way one wants them to be done.Both formal and informal groups and individuals may have power; it does not need an official position or the backing of an institution to have power. Influence can take many forms. One person has influenced another if the second person’s opinions, behavior or perspectives have changed as a result of their interaction. Power is a factor at all levels of most organizations. It can be a factor in almost any organizational decision. Power and Authority Sometimes power and authority is used synonymously because of their objective of influencing the behavior of others. However, there is difference between the two. Power does not have any legal sanctity while Continue reading