Definition: The Dividend Policy is a financial decision that refers to the proportion of the firm’s earnings to be paid out to the shareholders. Here, a firm decides on the portion of revenue that is to be distributed to the shareholders as dividends or to be ploughed back into the firm. The amount of earnings to be retained back within the firm depends upon the availability … [Read more...] about Dividend Policy
Corporate Restructuring
Definition: The Corporate Restructuring is the process of making changes in the composition of a firm’s one or more business portfolios in order to have a more profitable enterprise. Simply, reorganizing the structure of the organization to fetch more profits from its operations or is best suited to the present situation. The Corporate Restructuring takes place in two … [Read more...] about Corporate Restructuring
Intrapreneurship
Definition: An Intrapreneurship is the system wherein the principles of entrepreneurship are practiced within the boundaries of the firm. An intrapreneur is a person who takes on the responsibility to innovate new ideas, products and processes or any new invention within the organization. An intrapreneur is the individual who thinks out of the box and possesses the … [Read more...] about Intrapreneurship
Entrepreneurial Process
Definition: The Entrepreneur is a change agent that acts as an industrialist and undertakes the risk associated with forming the business for commercial use. An entrepreneur has an unusual foresight to identify the potential demand for the goods and services. The entrepreneurship is a continuous process that needs to be followed by an entrepreneur to plan and launch the new … [Read more...] about Entrepreneurial Process
Types of Entrepreneurs
Definition: An Entrepreneur is a person who has a role of an industrialist and forms an organization for the commercial use. He is a change agent who transforms the demand into supply by forecasting the needs of the society. Types of Entrepreneurs Innovative Entrepreneur: These are the ones who invent the new ideas, new products, new production methods or processes, … [Read more...] about Types of Entrepreneurs
Liquidation Strategy
Definition: The Liquidation Strategy is the most unpleasant strategy adopted by the organization that includes selling off its assets and the final closure or winding up of the business operations. It is the most crucial and the last resort to retrenchment since it involves serious consequences such as a sense of failure, loss of future opportunities, spoiled market image, … [Read more...] about Liquidation Strategy
Divestment Strategy
Definition: The Divestment Strategy is another form of retrenchment that includes the downsizing of the scope of the business. The firm is said to have followed the divestment strategy, when it sells or liquidates a portion of a business or one or more of its strategic business units or a major division, with the objective to revive its financial position. The divestment is … [Read more...] about Divestment Strategy
Turnaround Strategy
Definition: The Turnaround Strategy is a retrenchment strategy followed by an organization when it feels that the decision made earlier is wrong and needs to be undone before it damages the profitability of the company. Simply, turnaround strategy is backing out or retreating from the decision wrongly made earlier and transforming from a loss making company to a profit … [Read more...] about Turnaround Strategy
Expansion through Internationalization
Definition: The Expansion through Internationalization is the strategy followed by an organization when it aims to expand beyond the national market. The need for the Expansion through Internationalization arises when an organization has explored all the potential to expand domestically and look for the expansion opportunities beyond the national boundaries. But however, … [Read more...] about Expansion through Internationalization
Expansion through Cooperation
Definition: The Expansion through Cooperation is a strategy followed when an organization enters into a mutual agreement with the competitor to carry out the business operations and compete with one another at the same time, with the objective to expand the market potential. The expansion through cooperation can be done by following any of the strategies as explained … [Read more...] about Expansion through Cooperation