Corporate Failure

Definition: The term corporate failure entails discontinuation of company’s operations leading to inability to reap sufficient profit or revenue to pay the business¬†expenses. It happens due to poor management, incompetence, and bad marketing strategies. In a business environment, corporate failure of firms is quite common, wherein only those firms survive, that adapt themselves according to…

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Capital Market

Definition: Capital Market, is used to mean the market for long term investments, that have explicit or implicit claims to capital. Long term investments refers to those investments whose lock-in period is greater than one year. In the capital market, both equity and debt instruments, such as equity shares, preference shares, debentures, zero-coupon bonds, secured…

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Competitive Intelligence

Definition: In business parlance, competitive intelligence can be understood as the process of identifying, gathering, evaluating and disseminating, information concerning competitor’s strengths and weaknesses, products, and customers, which a firm requires for strategic decision making. In other words, it is a legal and ethical practice that helps in improving the firm’s competitive ability and capacity.…

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Lean Management

Definition: Lean management refers to a technique developed with the aim of minimising the process waste and maximising the value of the product or service to the customer, without compromising the quality. It is coined by Toyota Production System, which is a part of lean thinking. Lean is possible through distinct techniques such as flow…

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Target Costing

Definition: Target costing can be viewed as a proactive cost management tool used to reduce the total cost of the product, over its complete lifecycle, through production, engineering, research and design. It helps the firm in managing the business in reaping profits in the extremely competitive market. Simply put, target costing is a process of…

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Organization

Definition: Organization refers to a collection of people, who are involved in pursuing defined objectives. It can be understood as a social system which comprises all formal human relationships. The organization encompasses division of work among employees and alignment of tasks towards the ultimate goal of the company. It can also be referred as the…

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Work Measurement

Definition: Work measurement can be defined as the implementation of a series of techniques which are designed to find out the work content, of a particular task or activity, by ascertaining the actual amount of time necessary for a qualified worker, to perform the task, at a predetermined performance level. The essence of work measurement…

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Vertical Integration

Definition: Vertical Integration, as the name suggests, is the combination of firms engaged in different levels of the distribution chain, in the same industry. It involves the augmentation of the firm by uniting the former and latter productive processes. In this form of merger, the company opts to engage in the businesses, which have some…

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Strike

Definition: In business terms, a strike can be understood as a curtailment of work, due to the collective refusal of workers to work, which occurs as a response to employee grievances. It involves, dropping out of work by any number of workers, employed in a particular industry, with an aim of creating pressure on the…

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Decision Tree

Definition: Decision Tree may be understood as the logical tree, is a range of conditions (premises) and actions (conclusions), which are depicted as nodes and the branches of the tree which link the premises with conclusions. It is a decision support tool, having a tree-like representation of decisions and the consequences thereof. It uses ‘AND’…

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