Strategic Intent

Definition: Strategic Intent can be understood as the philosophical base of strategic management process. It implies the purpose, which an organization endeavor of achieving. It is a statement, that provides a perspective of the means, which will lead the organization, reach the vision in the long run. Strategic intent gives an idea of what the…

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Performance Management

Definition: Performance Management can be defined as a process which continuously identifies, measures and develops the performance of the workforce in the organization. And to do so, each individual’s performance and objectives are connected with the overall mission and goals of the enterprise. Hence, the two key elements of performance management are: Continuous process Link…

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Six Sigma

Definition: Six Sigma is defined as a management technique employed to maintain the desired quality in the organization’s processes and end products. It involves, taking planned and integrated steps, so as to enhance the quality of products and reducing cost. Six Sigma is a well-organized method of developing and providing, those products and services to…

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Value Chain Analysis

Definition: Value chain analysis is a process of dividing various activities of the business in primary and support activities and analyzing them, keeping in mind, their contribution towards value creation to the final product. And to do so, inputs consumed by the activity and outputs generated are studied, so as to decrease costs and increase…

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Gap Analysis

Definition: Gap Analysis can be understood as a strategic tool used for analyzing the gap between the target and anticipated results, by assessing the extent of the task and the ways, in which gap might be bridged. It involves making a comparison of the present performance level of the entity or business unit with that…

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Ansoff Matrix

Definition: Ansoff Matrix, or otherwise known as Product-Market Expansion Grid, is a strategic planning tool, developed by Igor Ansoff, to help firms chalk out strategy for product and market growth. It is a business analysis technique that is very useful in identifying growth opportunities. The matrix best exemplifies, various intensification alternatives before the firm, i.e.…

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Marginal Costing

Definition: Marginal Costing is a costing technique wherein the marginal cost, i.e. variable cost is charged to units of cost, while the fixed cost for the period is completely written off against the contribution. The term marginal cost implies the additional cost involved in producing an extra unit of output, which can be reckoned by…

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Business Strategy

Definition: Business strategy can be understood as the course of action or set of decisions which assist the entrepreneurs in achieving specific business objectives. It is the master plan that the management use to secure a competitive position in the market, carry on its operations, please customers and achieve the desired ends of the business.…

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Margin of Safety

Definition: Margin of Safety (MOS) is defined as the excess of actual or projected sales over break-even sales, that can be expressed in monetary terms or units, or as a percentage of total sales. The margin of Safety implies the sales point over and above the break-even point, that results in profit. Break-even point (BEP),…

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Treasury Bills

Definition: Treasury Bills, also known as T-bills are the short-term money market instrument, issued by the central bank on behalf of the government to curb temporary liquidity shortfalls. These do not yield any interest, but issued at a discount, at its redemption price, and repaid at par when it gets matured. T-bills are the key…

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