Definition: Tax Planning can be understood as the activity undertaken by the assessee to reduce the tax liability by making optimum use of all permissible allowances, deductions, concessions, exemptions, rebates, exclusions and so forth, available under the statute. Put simply, it is an arrangement of an assessee's business or financial dealings, in such a way that complete … [Read more...] about Tax Planning
Enterprise Resource Planning (ERP)
Definition: Enterprise Resource Planning, or otherwise known as ERP is an integrated software application, which firms use to manage and control their internal and external resources comprising financial resources, material, assets and human resources. Put simply, ERP system unites various functions of management into a rationally integrated system to streamline processes … [Read more...] about Enterprise Resource Planning (ERP)
Credit Rating
Definition: Credit Rating can be defined as the assessment of the ability of the borrower, to discharge their financial obligations. It is an approximation of the creditworthiness of an individual, entity or commercial instrument, considering various factors, representing the capability and willingness, to pay financial commitments in time. Credit rating is instrument … [Read more...] about Credit Rating
Strategic Intent
Definition: Strategic Intent can be understood as the philosophical base of the 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 organization desires to … [Read more...] about Strategic Intent
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 … [Read more...] about Performance Management
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 the customers that … [Read more...] about Six Sigma
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 differentiation. Value chain … [Read more...] about Value Chain Analysis
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 of standard established previously. Gap Analysis is … [Read more...] about Gap Analysis
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, … [Read more...] about Ansoff Matrix
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 total variable cost assigned to one … [Read more...] about Marginal Costing