Case Study on Entrepreneurship: Larry Page

Business Analysis

The Boundaryless Career: Modern Contemperory Perspective on Career

Human Resource Management

Concepts of Throughput Accounting and Theory of Constraints

Financial Management

Gantt Charts – Tool for Project Planning and Scheduling

Project Management

Kaizen – Understanding the Japanese Business Philosophy of Continuous Improvement

Operations Management

Conditions for Sustainable Competitive Advantage

Competitive advantage occurs when a firm is using a strategy that is currently not being currently implemented by any of its present and potential competitors. Sustainable competitive advantage continues to exist after the efforts by competitors to copy that advantage continues to exist after the efforts by competitors to copy that competitive advantage have ceased. That means, the inability of competitors to copy the strategy makes for a sustainable competitive advantage. Achieving sustainable competitive advantage is critical for companies since it is the only way to be successful in business. With a sustainable competitive advantage, businesses may expect higher employee retention, higher product margins, more sales and a stronger focus on the company as compared to their competitors. It is difficult to sustain a significant competitive advantage over a time without periodically revisiting the firm’s identity and purpose. For instance, reducing costs is not a true strategy because it simply provides Continue reading

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Interest Rate Parity (IRP) Theory of Exchange Rate

When Purchasing Power Parity (PPP) Theory applies to product markets,  Interest Rate Parity (IRP) condition applies to financial markets.  Interest Rate Parity (IRP) theory postulates that the forward rate differential in the exchange rate of two currencies would equal the interest rate differential between the two countries. Thus it holds that the forward premium or discount for one currency relative to another should be equal to the ratio of nominal interest rate on securities of equal risk (and duration) denominated in two currencies. For example, where the interest rate in India and US are respectively 10% and 6% and the dollar-rupees spot exchange rate is Rs.42.50/US $. The 90 day forward exchange rate would be calculated as per IRP as follows: = 42.50   (1+0.10/4)/(1+0.06/4) = Rs.42.9250 And hence, the forward rate differential [forward premium (p)] will be; (42.9250 — 42.50)/42.50 = 1% And the interest rate differential will be; Continue reading

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Individual Privacy – A Right Masked as Luxury

Personal privacy is a concept not foreign to most, if not all individuals. Whether it is to keep certain details about themselves private or to stray away from the societal obligations tied to themselves, individuals tend to isolate themselves to prevent things close to them from becoming public. Though in the last twenty years, information technology has essentially erased the barrier dividing what personal and private information should be. Large tech companies have imposed a risk on individuals’ privacy with the way personal information is handled and distributed within those companies. Companies such as Google and Facebook constantly track an individual’s behaviours online and use their data in immoral ways that most individuals are not aware of. Google is notorious for this, and even explicitly states in their terms of service that their “…automated systems analyze your content (including emails) to provide you personally relevant product features, such as customized Continue reading

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Advertising – Definition, Objectives and Importance

Definition and Meaning of Advertising The word advertising originates from a Latin word advertise, which means to turn to. The dictionary meaning of the term is “to give public notice or to announce publicly”. Advertising may be defined as the process of buying sponsor-identified media space or time in order to promote a product or an idea. The American Marketing Association, has defined advertising as “any form of non-personal presentation or promotion of ideas, goods or services, by an identified sponsor.” What Advertisement Is? Advertisement is the process of mass communicating of information intended to persuade buyers to by products with a view to maximizing a company’s profits. The elements of advertising are: It is a mass communication reaching a large group of consumers. It makes mass production possible. It is non-personal communication, for it is not delivered by an actual person, nor is it addressed to a specific person. It Continue reading

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Global Market Entry and Exit Strategies

Each company has a specific strategy may be selected to suit a company’s needs. Many companies use a combination of global and national strategies. Some firms use a global strategy elsewhere some countries and some products are more receptive to global strategies than others. Global strategies are directed at those national product markets that are large and have low barriers to foreign products and companies. They are also likely to compromise the center of world demand, particularly in the newer, more technologically intensive product. Companies adapting global strategies are not likely to target seriously countries with high barriers and small national product markets. However given the long term trend in declining trade barriers coupled with the economic growth, more companies will adopt global strategies. Global Market Entry Strategies Strategy is planning through companies achieve their goals and move forward. A company makes a decision to enter an international market, this Continue reading

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Global Financial Markets

The financial markets of the world consist of sources of finance, and  uses for finance, in a number of different countries. Each of these is a capital  market on its own. On the other hand, national capital markets are partially  linked and partially segmented. National capital markets are of very different  stages of development and size and depth, they have very different prices and  availability of capital. Hence, the international financier has great opportunities  for arbitrage — finding the cheapest source of funds, and the highest return,  without adding to risk. It is because markets are imperfectly linked, the means  and channels by which foreigners enter domestic capital markets and domestic  sources or users of funds go abroad, are the essence of this aspect of  international financial management. The other aspect is the fact that domestic claims and liabilities are  denominated in national currencies. These must be exchanged for another Continue reading

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