Participative Management – Workers Participation in Management

Human Resource Management

Case Study on Entrepreneurship: Larry Page

Business Analysis

The Boundaryless Career: Modern Contemperory Perspective on Career

Human Resource Management

How to Meet Costa Rica’s 2026 VASP Requirements Without Expanding Headcount

General Business Articles

Concepts of Throughput Accounting and Theory of Constraints

Financial Management

Mergers and Acquisitions – Synergies through Consolidation

Synergy implies a situation where the combined firm is more valuable than the sum of the individual combining firms. It is defined as ‘two plus two equal to five’ (2+2>4) phenomenon. Synergy refers to benefits other than those related to economies of scale. Operating economies are one form of synergy benefits. But apart from operating economies, synergy may also arise from enhanced managerial capabilities, creativity, innovativeness, R&D and market coverage capacity due to the complementarily of resources and skills and a widened horizon of opportunities. An under valued firm will be a target for acquisition by other firms. However, the fundamental motive for the acquiring firm to takeover a target firm may be the desire to increase the wealth of the shareholders of the acquiring firm.  This is possible only if the value of the new firm is expected to be more than the sum of individual value of the Continue reading

Abey Francis

Euro Notes and Euro Commercial Paper

Euro Notes Euro Notes are like promissory notes issued by companies for obtaining short term  funds. They emerged in early 1980s with growing securitization in the international financial  market. They are denominated in any currency other than the currency of the country where  they are issued. They represent low cost funding route. Documentation facilities are the  minimum. They can be easily tailored to suit the requirements of different kinds of  borrowers. Investors too prefer them in view of short maturity. When the issuer plans to issue Euro notes, it hires the services of facility agents or the  lead arranger. On the advice of the lead arranger, it issues the notes, gets them underwritten  and sells them through the placement agents. After the selling period is over the underwriter  buys the unsold issues. The Euro notes carry three main cost components: Underwriting fee; One time  management fee for structuring, pricing and Continue reading

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Is Management is an Art or a Science?

Is management characterized as an art, as a science or both? In order to investigate the nature of Management, it would be useful firstly to define it. According to Drucker “Management is about human beings. Its task is to make people capable of joint performance, to make their strengths effective and their weaknesses irrelevant. This is what organization is all about, and this is the reason why management is the critical, determining factor”. Nowadays, practically everyone works for a managed institution, large or not, business or not. Our living actually depends on management. The ability we have to contribute to society, depends firstly on the way, the institute we work for, is managed and furthermore on our own abilities, devotion and effort. For years now, there has been a great debate on whether management can be characterized as a science or as an art. Management as an Art Art is Continue reading

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Monopolistic Competition

In the real world, market is neither perfectly competitive nor a monopoly. The great  majority of imperfectly competitive producers in the real world produce goods, which are  neither completely different nor completely same. They produce goods, which are  analogous to those produced by their rivals. This means that the goods produced in the  market are close substitutes. It follows that such producers must be concerned about the  way in which the action of these rivals affects their own profits. This kind of market is known  as ‘Monopolistic Competition’ or group equilibrium. Here there is competition, which is  keen, though not perfect, between firms manufacturing very similar products. According to Chamberlin,  “Monopolistic competition is a challenge to the traditional viewpoint of economics that competition and monopoly are alternatives…By contrast it is held that most economic situations are composites of both competition and monopoly.” Monopolistic Competition is that market category in which Continue reading

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Marketing Strategy: Definition and Process

Marketing strategy consists of the analysis, strategy development, and implementation activities in: “Developing a vision about the market(s) of interest to the organization, selecting market target strategies, setting objectives, and developing, implementing, and managing the marketing program positioning strategies designed to meet the value requirements of the customers in each market target”. Strategic marketing is a market-driven process of strategy development, taking into account a constantly changing business environment and the need to deliver superior customer value. The focus of strategic marketing is on organizational performance rather than a primary concern about increasing sales. Marketing strategy seeks to deliver superior customer value by combining the customer-influencing strategies of the business into a coordinated set of market-driven actions. Strategic marketing links the organization with the environment and views marketing as a responsibility of the entire business rather than a specialized function. Because of marketing’s boundary orientation between the organization and its Continue reading

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Weighted Average Cost of Capital (WACC)

A firm uses various sources of finance to finance its projects. Each source of finance will be having a specific cost. So in order to determine the overall cost of capital of the firm, the weighted average cost of individual sources of finance should be determined with the weights being the proportion of each type of capital used. The Weighted Average Cost of Capital (WACC) is defined as the weighted average of the cost of various sources of finance, weights being the book value or market values of each source of finance. If ko represents the weighted average cost of capital or overall cost of capital then,  ko     = wdkd + wpkp + wtkt +   weke + wrkr where, ko   = weighted average cost of capital kd   = cost of debt kp   = cost of preferred stock kt     = cost of term Continue reading

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