History of Exchange Rate System

The world exchange rate systems of the world have it own history shows that the world community has in fact change from the fixed exchange rates system to floating exchange rate system. There are different combinations of fixed exchange rate systems as well as floating exchange rates exist currently, the created for exchange rate regulating together with specific some economical instruments also. Commodity money is a system that the most early existing in this world. This system happened when the development of production as well as a number of labor divisions. When appeared coins having an intrinsic value but not linked with commodity, until the 17th century there was no other monetary system exist. The value of the coin usually associated and combined with the gold in the coin with its content. The content of gold that in the coin can be found their exchange rate between different currencies and Continue reading

Commercial Paper – Definition, Features and Advantages

What is a Commercial Paper? A commercial paper is an unsecured promissory note issued with a fixed maturity by a company approved by RBI, negotiable by endorsement and delivery, issued in bearer form and issued at such discount on the face value as may be determent by the issuing company. Features of Commercial Paper Commercial paper is a short-term money market instrument comprising usince promissory note with a fixed maturity. It is a certificate evidencing an unsecured corporate debt of short term maturity. Commercial paper is issued at a discount to face value basis but it can be issued in interest bearing form. The issuer promises to pay the buyer some fixed amount on some future period but pledge no assets, only his liquidity and established earning power, to guarantee that promise. Commercial paper can be issued directly by a company to investors or through banks/merchant banks. Advantages of Commercial Continue reading

Case Study of FedEx: A Powerful Partnership of Strategy and Corporate Communication

FedEx, an international company that provides shipping by air and ground and a range of logistics and trade consulting services, must provide speed and dependability globally not only for its core businesses with customers but also in its communications with constituencies about key business objectives. Employees at FedEx work in 200 countries 7 days a week, 24 hours a day. The corporate communication function must operate in as broad a landscape with speed, high impact, and precision. Given the company’s core businesses, communication challenges can arise in many quarters–in anything from crisis management, such as managing communications in the aftermath of a plane crash or computer outage, to e-commerce initiatives, to the rapid implementation of a new business model. According to corporate vice president Bill Margaritis, the corporate communication function needs to add significant value to the business and must be fully aligned with those making high-impact strategic  decisions  for Continue reading

Economics of the Foreign Exchange Market

In a floating exchange rate regime the price of the dollar, like any other market-determined price, depends on the relevant forces of supply and demand. But what are the relevant forces of supply and demand in the foreign exchange market? To try to answer this question, let us consider, for illustration, the factors that determine the relationship between the Australian dollar and the Japanese yen. The Japanese require dollars to pay for their imports of goods and services from Australia and to fund any investment they may wish to undertake in this country. Assume that they obtain these dollars on the foreign exchange market by supplying (selling) yen in return. So the Japanese demand for dollars (mirrored by the supply of yen) is determined by the exports to Japan and our capital inflow from that country. On the other side of the market, the Australian demand for yen is determined Continue reading

Jay Galbraith’s Star Model of Organizational Design

Organizational design is not simply about structure and the resulting organizational chart.  It is about the relationships between people, work, formal structures and informal practices and behaviors. It is about the way in which an organization structures and coordinates its people and process so it can benefit from its unique capabilities over the long-term.  It  determines who makes decisions and how those decisions will be made. It changes the role of the leaders as they become less decision makers and more decision shapers. Through organizational design, leaders become the shapers of the organization’s decision-making process. Organizational design and the resulting capabilities are the last sustainable sources of  competitive advantage. Star Model  of Organizational Design  is a well-known  model that has been used for decades to identify the key elements of an organization and focus  on the issue of strategy and strategy implementation. Developed by Jay Galbraith, an American consultant and Continue reading

What is Retail Advertising?

The manufacturer has little concern where its product is purchased. The goal of the retail advertiser differs from that of national advertiser. The retailer advertises to encourage patronage by consumers and build store loyalty among them. The retailer is not particularly concerned with any specific brand. In case the retailer shows some concern (the retailer wants to clear stocks of a particular brand), then the message in effect is “buy brand ‘B’ at our store.” General approach in retail advertising is “buy at our store.” The sale of any specific brand is not the concern of retailer unlike the national advertiser. The retailer must compete in one of the most competitive arenas of business and move large volumes of products. Besides, the retail advertising must convey the image of the type of store to particularly attract certain types of consumers. To achieve these objectives, retailers often communicate price information, service Continue reading