Porter’s Five Forces Model

Definition: Porter’s five forces model, refers to a framework based on the competitive analysis, introduced by Harvard Business School Prof. Michael E. Porter. The model determines the intensity of competition in any industry is a mix of five competitive factors operating in different areas of the whole market. The framework is an outside-in strategy tool…

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Financial Market

Definition: Financial Market refers to a marketplace, where creation and trading of financial assets, such as shares, debentures, bonds, derivatives, currencies, etc. take place. It plays a crucial role in allocating limited resources, in the country’s economy. It acts as an intermediary between the savers and investors by mobilising funds between them. The financial market…

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Commercial Paper

Definition: Commercial Paper or CP is defined as a short-term, unsecured money market instrument, issued as a promissory note by big corporations having excellent credit ratings. As the instrument is not backed by collateral, only large firms with considerable financial strength are authorised to issue the instrument. Features of Commercial Paper The maturity period of…

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Total Quality Management (TQM)

Definition: Total Quality Management, abbreviated as TQM is a people-oriented management system, wherein all the members of the organisation, makes continuous efforts so as to maintain high work standards, in all the operations of the company. Its main aim is to make a continuous increase in the customer loyalty and satisfaction, at constantly lower cost.…

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Strategic Business Unit (SBU)

Definition: Strategic Business Unit (SBU) implies an independently managed division of a large company, having its own vision, mission and objectives, whose planning is done separately from other businesses of the company. The vision, mission and objectives of the division are both distinct from the parent enterprise and elemental to the long-term performance of the…

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Stress

Definition: In Human Resource Management, Stress is defined as a state of mental and emotional pressure or strain, caused by challenging or unfavourable circumstances. It is an outside force that rules an individual’s feelings and behaviour. It is a person’s response to an external factor (stimulus, known as the stressor) in the environment and the…

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Interview

Definition: Interview refers to a formal, in-depth conversation between two or more persons, wherein exchange of information takes place, with a view of checking candidate’s acceptability for the job. Objectives of Interview To evaluate applicant’s suitability. To gain additional information from the candidate. To provide general information about the company to the applicant. To create…

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Outsourcing

Definition: Outsourcing, the name itself suggest its meaning, i.e. source from outside. It refers to a practice of contracting out the non-core and sometimes core activities of the organisation to a captive unit or a third party. It is a process, in which business-houses handover their regular or peripheral work to the external organisation, who…

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Capitalism

Definition: Capitalism refers to an economic and political system, wherein the private individuals own and control the country’s factors of production (land, labour, capital) for making a profit. In finer terms, private property is the essence of a capitalist economy and profit works as a motivation here. Under this system, the government does not intervene…

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Business Environment

Definition: Business Environment means a collection of all individuals, entities and other factors, which may or may not be under the control of the organisation, but can affect its performance, profitability, growth and even survival. Every business organisation operates in a distinctive environment, as it cannot exist in isolation. Such an environment influence business and…

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