Organizational Health – Concept, Dimensions, and Characteristics

Management Concepts

Organizational Health Approach – Building a Strong Workplace

Modern Management Concepts

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

Theories of Capitalization

Capitalization is the total amount of a company’s long-term financing. Such financing may include retained earnings, preferred and common stock and other forms of long-term debt (bonds and debentures).  Capitalization can be distinguished from capital structure. Capital structure is a broad term and it deals with qualitative aspect of finance. While capitalization is a narrow term and it deals with the quantitative aspect. The two main theories of capitalization which are used to determine the amount of capitalization are as follows: 1. Cost Theory of Capitalization According to the cost theory of capitalization, the value of a company is arrived at by adding up the cost of fixed assets like plants, machinery patents, etc., the capital regularly required for the continuous operation of the company (working capital), the cost of establishing business and expenses of promotion. The original outlays on all these items become the basis for calculating the capitalization Continue reading

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Why Wealth Maximization is Considered to be Better Operating Goal?

The wealth maximization objective is almost universally accepted goal of a firm. According to this objective, the managers should take decisions that maximize the shareholders’ wealth. In other words, it is to make the shareholders as rich as possible. Shareholders’ wealth is maximized when a decision generates net present value. The net present value is the difference between present value of the benefits of a project and present value of its costs. A decision that has a positive net present value creates wealth for shareholders and a decision that has a negative net present value destroys wealth of shareholders. Therefore, only those projects which have positive net present value should be accepted. For example, suppose a firm invests $ 10,000 in a project that generates net cash flow $ 3,000 each year for five years. If the firm requires 10% return on its capital, the net present value of the Continue reading

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External Communication in Business

Communication with people outside the company is called “external communication”. Supervisors communicate with sources outside the organization, such as vendors and customers. External communication comprehends all information developed by the company, which is related to its activity that is released in the press, for public knowledge. Such information is crucial in order to promote the company’s image. When it comes to business communication, or for that matter, any aspect, the most important thing is the customer. We need to ensure that we deliver what the customer wants. Even when it comes to things like marketing or advertising, we need to show what the customer appreciates and likes. Different customers accept different kinds of marketing. It all depends on us to ensure that via business communication, we are able to cater to the choices of a wide range of people. If we are able to master the art of impressing many Continue reading

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Solomon Model of Comparison Process – Model of Consumer Behavior

Solomon Model of Comparison Process explains some of the issues that are addressed during each stage of the consumption process (Prepurchase issues, Purchase issues, Postpurchase Issues). The ‘exchange’, in which two or more organizations or people give and receive something of value, is an integral part of marketing. He also suggested that consumer behavior involves many different actors.   The purchaser and user of a product might not be the same person. People may also act as influences on the buying processes.   Organizations can also be involved in the buying process. Much of marketing activity, they suggest, concentrates on adapting product offerings to particular circumstances of target segment needs and wants. It is also common to stimulate an already existing want through advertising and sales promotion, rather than creating wants. The value-expressive function is employed when a consumer is basing their attitude regarding a product or service on self-concept Continue reading

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Brand Licensing

Licensing is a contractual agreement whereby a company allows another firm to use its brand name, patent, trade secret or other property for a royalty or a fee. Licensing also assists companies in entering global markets with minimal risk. Essentially, a firm is ‘renting” another brand to contribute to the brand equity of its own product. A strong brand often has associations that may be desirable in other product categories. To capitalize on this value, a firm may choose to license its name, logo or other trademark item to another company for use on their products and merchandise. Traditionally, licensing has been associated with characters such as Garfield the cat, Barney the dinosaur, and Disney’s Mickey Mouse or celebrities and designers such as Maratha Stewart, Ralph Lauren and Tommy Hilfiger. Recently more conventional brands such as Caterpillar Harley Davidson, Coca-Cola and other have licensed their brands. Licensing can be quite Continue reading

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Integrated Marketing Communications (IMC) – Definitions, Process, Importance and Barriers

Integrated Marketing Communications (IMC) is a marketing concept of the 1990’s. It will be necessary for survival in the 21st century. The advent of integration is causing marketers to take a fresh look at all the components of marketing, specifically the unique dimension that public relations bring to the marketing mix. Public relations people in turn are seizing the opportunity that integration offers them to make a difference where it counts most to their companies and clients — on the bottom line. IMC is the culmination of the shift that began in the post — World War II period, from selling what the companies make to making what the consumers want. IMC is focused on what to know about product and services, not what the marketers want to tell them in order to sell them. Integrated Marketing Communication is defined as the coordination and integration of all marketing communication tool, Continue reading

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