Call Option

Option Trading confers the right on the holder/buyer to buy/sell a specified asset (here foreign currency) on a specific price on or before a specific date but he has no obligation to buy/sell. Seller/Writer has an obligation to fulfill the contract if buyer/holder exercises the option. Whenever a person has an intention to buy foreign currency by paying a premium amount immediately, and settling the same on a later date, it is known as a Call option. Call option has two parties, one a buyer of a Call option and other a seller of a Call option. Example: Mr. A is interested in buying a US dollar. Spot rate is US$ 1 = 45.50. Mr. A believes that some 30 days down the line, with the budget coming up and the price of the US dollar would increase. Not wanting to take any chances, he goes to a dealer and Continue reading

Talent Management – Management of Human Talent

Definition of Talent Management Talent management is the use of an integrated set of activities to ensure that the organization attracts, retains, motivates and develops the talented people it needs now and in the future. The aim is to secure the flow of talent, bearing in mind that talent is a major corporate resource.  Talent  consists of those individuals who can make a difference to organisational performance either through their immediate contribution or, in the longer-term, by demonstrating the highest levels of potential. In a competitive marketplace, talent management is  a primary driver for organizational success. Broadly defined, talent management is the implementation of integrated strategies or systems designed to increase workplace productivity by developing improved processes for attracting, developing, retaining and utilizing people with the required skills and aptitude to meet current and future business needs.  It’s pretty clear that people are a business’s most important asset and in Continue reading

Financial Analysis with the DuPont Model

The dynamic environment of the world today suggests that one should be apt enough to apply his skills immanent to a system and also external with respect to credit management function. These functions include financial planning, plausibility of a defined business strategy or whether a particular merger or acquisition is feasible or not. This has to be done in a rapid yet meaningful way so as to be of immediate need to a particular firm or investor. There are basically four major reasons for an effective financial statement analysis. These have been mentioned as follows: It is useful for long-run business viability so as to determine whether a firm would be able to provide adequate business return when compared to the amount of risks taken. This is essential for outside investors. It is also used by creditors so as to find out whether a potential buyer has the capability to Continue reading

Definition of Portfolio Management

Portfolio Management Definition It is a process of encompassing many activities of investment in assets and securities. The portfolio management includes the planning, supervision, timing, rationalism and conservatism in the selection of securities to meet investor’s objectives. It is the process of selecting a list of securities that will provide the investor with a maximum yield constant with the risk he wishes to assume. The portfolio management is growing rapidly serving broad array of investors — both individual and institutional — with investment portfolio ranging in asset size from few thousands to crores of rupees. Despite growing importance, the subject of portfolio and investment management is new in the country and is largely misunderstood. In most cases, portfolio management has been practiced as a investment management counseling in which the investor has been advised to seek assets that would grow in value and / or provide income. Portfolio management is Continue reading

The macroeconomic environment in marketing

An analysis of many companies’ financial results will often indicate that business people attribute their current financial success or failure to the state of the economy. For example, in 2002 the house builder Taylor Woodrow reported increased profits, which it attributed to a buoyant housing market, based on a high level of consumer confidence within the economy. Ten years earlier, a weak economy and falling house prices had led to big losses for many house builders, and some went out of business. Economic growth and the distribution of income Few business people can afford to ignore the state of the economy, because it affects the willingness and ability of customers to buy their products. Marketers therefore keep their eyes on numerous aggregate indicators of the economy, such as Gross Domestic Product (GDP), inflation rates, and savings ratios. However, while aggregate changes in spending power may indicate a likely increase for Continue reading

Innovation-Triggered Change in Organizations

In the modern world of business, innovation has become the fulcrum point of the business enterprises which not only guides the diverse processes used by them but also the manner in which they manufacture the products or the services offered by them to the customers. Furthermore, within the spectrum of the business world, it is observed that the amount of competition which the diverse organizations had to face has increased in an exponential manner keeping in pace with the emergence as well as the mushroom of the various new enterprises. This trend observed with the business world has made it imperative for the organizations to not only take the help of different kinds of innovations but also integration these innovations within the framework of their organization so as to make the most of the business opportunities presented by these innovations. It is precisely here that the construct of leaders gains Continue reading