Definition: Differentiation strategy, as the name suggests, is the strategy that aims to distinguish a product or service, from other similar products, offered by the competitors in the market. It entails development of a product or service, that is unique for the customers, in terms of product design, features, brand image, quality, or customer service. Differentiation … [Read more...] about Differentiation Strategy
Environmental Analysis
Definition: Environmental Analysis is described as the process which examines all the components, internal or external, that has an influence on the performance of the organization. The internal components indicate the strengths and weakness of the business entity whereas the external components represent the opportunities and threats outside the organization. To perform … [Read more...] about Environmental Analysis
Product Line
Definition: Product Line can be understood as an array of related products, under a specific brand, offered by a particular company to its customers. For instance: Amul offers a series of closely related products such as milk, butter, ghee, dahi, yoghurt, ice cream, srikhand, Gulab jamun, flavoured milk, chocolate, etc. There are many companies which are engaged in multiple … [Read more...] about Product Line
Cost Reduction
Definition: Cost Reduction can be understood as the perennial decrease in the unit cost of goods produced and services provided by the company, without compromising with its quality and suitability for the use intended, with the help of new and improved methods. In finer terms, cost reduction is a systematic and corrective technique used by most of the firms to cut the … [Read more...] about Cost Reduction
Working Capital
Definition: Working capital can be understood as the capital needed by the firm to finance current assets. It represents the funds available to the enterprise to finance regular operations, i.e. day to day business activities, effectively. It is helpful in gauging the operating liquidity of the company, i.e. how efficiently the company is able to cover the short-term debt with … [Read more...] about Working Capital
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 … [Read more...] about Corporate Failure
Money Market
Definition: Money Market can be understood as the market for short term funds, wherein lending and borrowing of funds varies from overnight to a year. It is an important part of the financial system that helps in fulfilling the short term and very short term requirements of the companies, banks, financial institution, government agencies and so forth. Salient Features of Money … [Read more...] about Money Market
Venture Capital
Definition: Venture Capital can be defined as the financing for startup companies and small enterprises, that involves a considerable amount of risk but are supposed to have long-term growth potential, i.e. the project can earn a high rate of return. A budding company, which is not yet ready to raise funds from the financial market through public offering may seek venture … [Read more...] about Venture Capital
Bonds
Definition: Bonds can be defined as the negotiable instrument, issued in relation to borrowing arrangement, that indicates indebtedness. It is an unsecured debt instrument, in which the bond investor extends credit to the issuer, which in turn commits to repay the loan amount on the specified maturity date, along with interest throughout the life of the bond. The issuer can be … [Read more...] about Bonds
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 premium … [Read more...] about Capital Market