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

General Business Articles

Concept of National Innovation Systems

International Business

Case Study: Henry Ford’s Contributions to Organizational Behavior and Leadership

Management Case Studies

De Bono’s Six Thinking Hats: A Creative and Critical Thinking Model

Human Resource Management

What Is a Contact Center and Its Role in the Customer Journey?

General Business Articles

Competitive Strategies for Business

Competitive strategies are concerned with how a strategic business unit achieves competitive advantage in its domain of activity meanwhile competitive advantage is about how an strategic business units (SBU) creates value for its users both greater than the costs of supplying them and superior to that of rival SBUs. An SBU can have lower costs than its competitors or it can have products or services that are so exceptionally valuable to customers that it can charge higher prices than competitors. There are two basic criteria that can help in identifying appropriate SBUs: Market-based criteria and Capabilities-based criteria. For Market-based criteria, if the parts of an organization are targeting same types of customers through the same sorts of channels and facing similar competitors, they might he regarded as the same SBU.… Read the rest

Abey Francis

Profit Maximization Objective of a Firm

In the conventional theory of the firm, the principle objective of a business firm is to maximize profit. Under the assumptions of given taste and technology, price and output of a given product under competition are determined with the sole objective of maximization of profit.

Profit maximization refers to the maximization of dollar income of the firm. Under profit maximization objective, business firms attempt to adopt those investment projects, which yields larger profits, and drop all other unprofitable activities. In maximizing profits, input-output relationship is crucial, either input is minimized to achieve a given amount of profit or the output is maximized with a given amount of input.… Read the rest

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Income Elasticity of Demand – Concept and Types

The income elasticity of demand shows the responsiveness of quantity demanded of a certain commodity to the change in income of the consumer. The income elasticity of demand is also defined as the ratio of the percentage change in the demand for a commodity to the percentage change in income. Income elasticity of demand can be expressed as follows:

Income elasticity (ey) = Percentage change in quantity demanded / Percentage change in income

For example, consumer’s income rises from $ 100 to $ 102, his demand for good X increases from 25 units per week to 30 units per week then his income elasticity of demand X is: ey = 5/25 x 100/2 = 10.… Read the rest

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What is Cost Of Money?

The cost of money refers to the price paid for using the money, whether borrowed or owned. Every sum of money used by corporations bears cost. The interest paid on debt capital and the dividends paid on ownership capital are examples of the cost of money. The supply of and demand for capital is the factor that affects the cost of money. In addition, the cost of money is affected by the following factors as below:

  1. Production Opportunities – Production opportunities refer to the profitable opportunities for investment in productive assets. Increase in production opportunities in an economy increases the cost of money.
… Read the rest
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Job Design – Meaning, Importance and Methods

It is believed that a well designed job motivates the employees for higher level of performance. Poorly designed jobs often result in boredom and employee frustration, high turnover, reduced motivation, low level of productivity and increase in operating cost. To avoid such negative consequences, the jobs have to be designed systematically and scientifically

Thus, job design is a systematic process of organizing work into the tasks required to perform a specific job. It defines the contents and the way the tasks are combined to complete a job. Job design integrates the tasks, function and relationship in order to achieve certain organizational objectives.… Read the rest

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Internal Hiring – Meaning, Methods, Advantages and Disadvantages

Internal hiring refer to recruiting employees from within the organization. In deciding requirement of employees, initial consideration should be given to a company’s current employees, which is concerned with internal hiring. They include those who are already available on the pay roll of the company. This is important source of recruitment as it provides opportunities for better development and utilization of existing human resources in the organization. 

There are two aspects of hiring under internal sources. They are as follows:

  1. Promotions – It refers to promoting or upgrading an employee who is already existed in the pay roll and contributed for organizational performance.
… Read the rest
Abey Francis
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