Strategic Planning Process – Five Stages of Strategic Planning Process

Any company who is trying to become major power in market has to have a properly defined strategy. Strategy is the term which is used to define specific outline according to which the company is going to act in future. It gives a well designed structure that the company will follow in coming time. Strategy is decided according to changing market trends, changing customer’s needs, changing stake holder’s interests and changing actions of competitors. Company need to have proper information about the target they are going to achieve. As per the target they set a strategy. Organizations have definite values and missions. Their stakeholders have several expectations from the company and its operation. Company should regulate their proceedings under some stretch or domain. The management of the company work, regulation of its actions, deciding the proper strategy for future, and successful implementation and evaluation of all the strategy comes under Continue reading

Types of Securitization Structures

Through securitization process, debts are factored and discounted in a structured and sophisticated manner which allows for the availability of funds and the repayment of the debt obligations through the creation of an insolvency remote vehicle which is separate, distinct and independent of the Originator. Securitization structures are most appropriate for a company that seeks financing but is unable to tap funding sources for the desired tenor and funding cost because of its perceived credit risk. In general, any asset class with relatively predictable cash flows can be securitized.  The Special Purpose Vehicle (SPV)  re-designs the type of bonds to be issued depending on the deal structure. The broad types of securitization structures include: Cash vs. Synthetic Structures: Most transactions world over follow the cash structure in which the originator sells assets and receives cash instead. In a synthetic transaction, the seller keeps his title and investment on the assets Continue reading

Major Leadership Theories in Management

Leadership is an integral part of management and plays a vital role in managerial operations. Leadership provides direction, guidance, and confidence to the employees and helps in the attainment of goals in much easier way. In business and industrial organizations, managers play the role of leader and acquire leadership of subordinates, their efforts towards the achievement of organizational goals and activate the individuals of an organization to make them work. Leadership influences behavior of the individuals. It has an ability to attract others and potential to make them follow the instructions. Individuals can be induced to contribute their optimum towards the attainment of organizational goals through effective leadership. Leadership acquires dominance and the followers accept the directives and control of a leader. Leadership provides direction and vision for future to an organization. A number of theories and approaches to study leadership have been developed. There are broadly three leadership theories Continue reading

Basic Investment Objectives

Investing is a wide spread practice and many have made their fortunes in the process. The starting point in this process is to determine the characteristics of the various investments and then matching them with the individuals need and preferences. All personal investing is designed in order to achieve certain objectives. These objectives may be tangible such as buying a car, house etc. and intangible objectives such as social status, security etc. similarly; these objectives may be classified as financial or personal objectives. Financial objectives are safety, profitability, and liquidity. Personal or individual objectives may be related to personal characteristics of individuals such as family commitments, status, dependents, educational requirements, income, consumption and provision for retirement etc. The basic objectives of investment can be classified on the basis of the investors approach as follows: Short term high priority objectives: Investors have a high priority towards achieving certain objectives in a Continue reading

Performance Management – Definition, Principles, Features and Scope

Definition of  Performance Management Performance management is a way of systematically managing people for innovation, goal focus, productivity and satisfaction. It is a goal congruent win- win strategy. Its main objective is to ensure success to all managees i.e., all task teams who believe in its process, its approach and implementation with sincerity and commitment. The managees success is reflected in organizations’ bottom line in terms of achieving its planned goals.  Performance management is an endless spiral, which links several processes such as performance planning, managing performance throughout the year, taking stock of managees performance and potential. Also it includes recognizing and rewarding success at the end of the year.  Performance management links these processes in such a way that an individual managees performance is always oriented towards achieving organizational goals.  Performance management creates positive goal oriented task motivation and aims at reducing intra-organizational conflict. It is realized that organizations Continue reading

Difference Between Debentures and Bonds

DEBENTURES A debenture represents the smallest unit of public lending to a company.   Like shares, they are represented in the form of a certificate.   The common face value for a debenture in India is Rs.100, and they are always issued at par.   Unlike an ordinary shareholder, a debenture holder assumes very little risk on his investment.   Unlike the uncertain stream of dividends, which a shareholder receives, a debenture holder receives a fixed stream of interest.   Payment of such interest is a legal obligation on the part of the company.   Further, in general, a debenture is required to be secured against the assets of the company.   Thus, a debenture is also a form of a secured loan.   Secured debenture implies that should a company default in its obligations towards debenture holders in the repayment of their interest and principal, in law, the charged Continue reading