What is Corporate Philanthropy?

Business Ethics

Stakeholder, Dynamic Capabilities and Sustainable Development Approaches to Strategic Management

Strategic Management

Importance of Innovation Strategies in Organizations

Modern Management Concepts

Becoming a Better You: A Guide to Self-Learning While Working Full-Time

General Business Articles

Concept of National Innovation Systems

International Business

Sources of Short Term Finance

Short term finance in business usually refers to the additional money a business requires for doing its business for short terms, which is usually a maximum period of one year. These funds are usually used for day to day operations such as payment of wages, inventory ordering, advertisement expenses and so on. The major sources of short term finance are discussed below: 1. Trade Credit Trade credit is a common source of short-term finance available to all companies. It refers to the amount payable to the suppliers of raw materials, goods etc. after an agreed period, which is generally less than a year. It is customary for all business firms to allow credit facility to their customers in trade business. Continue reading

Abey Francis

Sources of Long Term Finance

Based upon the time, the financial resources may be classified into long term and short term sources of finance. Long term sources of finance are those that are needed over a longer period of time – generally over a year. A business requires funds to purchase fixed assets like  land and building, plant and  machinery, furniture etc. These assets may be regarded as the foundation of abusiness. The capital required for these assets  is called  fixed capital.  A part of the working capital is also of a permanent nature. Funds  required for this part of the working capital and for fixed capital is called long term  finance. The sources from which a finance manager can raise long-term funds are discussed Continue reading

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Abey Francis

Sources of Finance – Financing a New Business

In case of proprietorship business, the individual proprietor generally invests his own savings to start with, and may borrow money on his personal security or the security of his assets from others. Similarly, the capital of a partnership firm consists partly of funds contributed by the partners and partly of borrowed funds. But the company from of organization enables the promoters to raise necessary funds from the public who may contribute capital and become members (share holders) of the company. In course of its business, the company can raise loans directly from banks and financial institutions or by issue of securities (debentures) to the public. Besides, profits earned may also be reinvested instead of being distributed as dividend to the Continue reading

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Financial Management Decisions

Financial Management is concerned with the acquisition and utilization of capital funds in meeting the financial needs and overall objectives of a business enterprise. Thus the primary function of finance is to acquire capital funds and put them for proper utilization, with which the firm’s objectives are fulfilled. The firm should be able to procure sufficient funds on reasonable terms and conditions and should exercise proper control in applying them in order to earn a good rate of return, which in turn allows the firm to reward the sources of funds reasonably, and leaves the firm with good surplus to grow further. These activities viz. financing, investing and dividend payment are not sequential they are performed simultaneously and continuously. Financial Continue reading

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Case Study of McDonalds: Advertising and Promotion Strategies

McDonald’s is the worlds leading fast food restaurant and is globally recognized.  With over tens of thousands of stores spread across 119 countries, McDonald’s serves an astounding  50 million  customers daily. McDonald’s has been viewed as the pinnacle and one of the defining features of the American lifestyle.   Burger, fries, and a Coke were the traditional meal.   Once it spread globally, it boomed into popularity because other countries wanted to be associated with the successful image of the “American dream”. McDonald’s provides a positive and caring attitude towards the community of which it serves.  McDonalds’ vision states that “We are not a hamburger company serving people; we are a people company serving hamburgers”. With a vision so clearly Continue reading

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Abey Francis

Case Study of McDonalds: Strategy Formulation in a Declining Business

McDonald’s Corporation or rather the CEO, Mr. Greenberg realized there was a major problem arising within their corporation when their earnings declined in the late 1990s till the early 2000s. Their net income not only shrunk to 17%, but also suffered from slow sales growth below the industry average during that period of time. Although their market share was well above their competitors such as Burger King and Wendy’s nevertheless there was a slow share growth. Therefore the question of what caused the Big Mac Attack is raised. It is observed that there was a growing trend of customers moving to non hamburger meals which is being offered by indirect competitors such as KFC, Subway (dominating the market with more Continue reading

Abey Francis
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