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Retail Marketing

Retail marketing includes activities and processes of selling to ultimate consumers for their personal, family and household use. Retailers are middlemen who procure goods from the wholesalers and sell the product to the end-users or consumers. They cater to the demand of the customers by providing a variety of products of different companies in one place. They also offer 'pre' and 'after-sales services' and communicate to customers about the features of the products. Types of Retail Stores: Specialty Store: They have a narrow product line and deep assortment. Department Store: They have several product lines with each operating as a separate department managed by specialist buyers or merchandisers. Supermarket: They are a relatively large, low cost, low margin, high volume, self-service operation designed to serve total needs for food, laundry and household products. Convenience Store: They are relatively small stores located near residential areas, open for long h

Demand Forecasting

Demand forecasting is a systematic process involving anticipation of demand for the commodity or services of a company in the future under certain competitive forces and uncontrollable forces. According to Evan J Douglas . "Demand forecasting is an estimate of sales during a specified future period based on the proposed marketing plan and a set of particular uncontrollable competitive forces." Significance of Demand Forecasting: It fulfills the objective or organization and helps in the preparation of the budget. It establishes production and employment in the organization. It helps in expansion or organization and facilities managerial decision. Objectives of Demand Forecasting: Short-term Objectives: Production policy Price policy Controlling sales Arranging finance Long-term Objectives: Determination of production capacity Planning long-term activities Factors Affecting Demand Forecasting: They can be producer goods, consumer goods or services. It is dependent on informati

Strategic Management

Strategic management deals with the long-term plans and actions of an organization. These decisions arrive in the light of both internal and external factors that affect the working of an organization. The management basically evaluates the possible opportunities and strengths it possesses to achieve them. It needs to scan the external and internal environment to look out for the potential threats and devise strategies to work on its weaknesses. Basically, strategic management is a continuous process of evaluating, implementing and reevaluating the decisions of the organization in order to achieve the organizational mission. Strategic management ensures that all the departments of the organization work together in harmony with each other in order to achieve the maximum output. Components of Strategy: Strategy is a plan or blueprint that helps the organization to achieve its long-term goals and mission. These are formulated by the top management. Policies are the rules and regulations l

Corporate Social Responsibility

It is philanthropy and a set of activities that corporates exercise in order to perform their moral duties. It is a humanitarian exercise in order to perform their moral duties. It is humanitarian, community work or social work done by enterprises. It is the relationship between business and the people or societies with which they work together. It is an enduring commitment of the firm to act responsibly and fairly add to the economic development of the nation while enhancing the living standards and quality of life of their employees and their families along with the local public and society. It is a service to society. According to Keith Davis, "it is the firm's consideration of and response to, issues beyond the narrow economic, technical and legal requirements to the firm." According to Archie Carroll, "The social responsibility of the business encompasses the economic, legal, ethical and discretionary expectations that society has of organizations at the given p

Industrial Rrelations

Industrial Relations (IR) refers to all types of relationships between all the parties concerned with industry, i.e. employees, employers, trade union, management and the State Government who regulate these relations. Thus, IR is concerned with the relationship between management and workers and the role of regulatory mechanisms in resolving any industrial dispute. Parties to IR are workers, employers, unions and government. Scope of  Industrial Relations: It deals with the collective bargaining of workers. It explains the role of government, unions and management. It gives machinery for resolving industrial disputes. It helps in handling individual grievances. It provides labor legislative policies. It assists in industrial relations training. Approaches to IR: Unitary Approach: It believes in mutual cooperation, teamwork and shared goals. Workplace conflict is the result of poor management. The underlying assumption is that everyone benefits from the promotion of common interest and

Organisational Structure

The term organizational structure reveals an established pattern of relationships among the constituent parts of the organization. It prescribes the relationships among various activities and various positions in an organization. It is nothing but a chart of relationships. Organization structure refers to a system where the work is divided formally. These smaller tasks are gathered and synchronized in order to promote coordination in the organization. It refers to an outline group, individuals, operations systems and job putting efforts to attain stipulated goals. It is the arrangement of jobs that is formally defined. According to Mintzberg (1972), "organizational structure is the framework of relations on jobs, systems, operating process, people and groups making efforts to achieve the goals. Organizational structure is a set of methods dividing the tasks to determining duties and coordinates them." According to Hold and Antony (1991), "Structure is not a coordination

Corporate Restructuring

Corporate restructuring includes various forms of collaborations, such as takeovers, mergers and acquisitions, spin-offs, leveraged buyouts etc. It refers to an alteration or change in the asset mix, ownership, business mix and alliance with another company with an aim to increase shareholder's value. Thus, there is a change in the business capacity and the portfolio of the business is related in order to increase the performance of the company. Mergers and Acquisitions (M & A) are popular among all forms of corporate restructuring. Characteristics of Corporate Restructuring: There is a change in the capacity of the business. There is a change in the capital structure, there is called capital restructuring. The ownership[ of the business changes, this is known as ownership restructuring. When the company diversifies itself into a new venture or when there is divestment, outsourcing, band acquisition then it is called business restructuring. When a firm acquires it sells the ass

Industrial Buying Behaviour

Industrial buying behavior is the pattern of actions by a company involved in manufacturing, processing and other heavy industry. Many of these companies are required to make regular purchases as a means of supplying their business. Industrial buying behavior is ultimately influenced by forces within the organization as well as environmental forces. The status and operating procedures of purchasing, the degree of involvement and interaction of various group members, and their different perceptions have a significant impact on purchasing decisions. Effective and responsive industrial marketing strategy depends on the industrial marketer's knowledge of how industrial buying behavior is affected by forces within the organization. Factors affecting Industrial Buying Behaviour: Industrial buyers make buying decisions to buy goods for their organization's use to meet organization goals and objectives. They use their skills and buying methods to get the best deal from the sellers or s

Personal Selling

 Personal selling consists of individual and personal communication in contrast to mass advertising communication. According to Cundiff and Still , "Personal selling is basically a method of communication. It involves not only individual but also social behavior each of the person in face-to-face contrast salesman and prospect influence the other." It is face-to-face interaction with one or more prospective buyers for the purpose of making presentations, answering doubts and taking purchase orders. Qualities of Personal Selling: Personal selling is the most effective tool at later stages of the buying process in building up brand preference, conviction and buying decision. Personal selling or salesmanship has four main qualities: Personal Interaction: Personal selling creates an immediate and interactive episode between two or more persons. Each party can observe the other's reaction. Cultivation: Personal selling also permits all kinds of relationships to spring up, r

Theories and Approaches of Management

Scientific Management (Taylor's Theory): This theory synthesized and evaluates the workflows of an organization. It aims at enhancing labor productivity and economic efficiency. Thus, it applies science, processes and standards in management. Administrative Theory (Fayol's Theory): Henry Fayol propounded the theory and gave 14 principles for general management and administration . It is also known as administrative theory. It gives a broader concept of the process of management. Bureaucracy (Max Weber): This theory aims at providing a systematic framework of an ideal organization, which strives at achieving economic effectiveness and efficiency. It also structures a company of institutions in a hierarchical form with defined levels of management. Hawthrone Experiments: These were a series of experiments that were conducted in the 1920s. It discovered that laborers are extremely responsive to any form of additional attention given to them by their managers. This theory propo

Organisational Development

Organisational Development (OD) is the act, process or result of furthering, advancing or promoting the growth of an organization. Development is the act, mechanism, consequence or state of development, which in turn means advancing, promoting growth, developing the possibility of improving or improving something. The OD strategy to change treats the organization as a system. it is a logically linked group of elements, principles and ideals. Conversely, it is a grouping or arrangement that interacts or communicates in such a way that a whole is formed. Thus, it views the organization as a whole and forms a relationship between the internal dynamics of the organization with the environment. It deals with interpersonal communication and self-acceptance of developing new abilities and skills. According to Edgar Schein, "An organization is the planned coordination of the activities of a number of people for the achievement of some common explicit purpose or goals through the division

Operation Management

 It involves planning, organizing and directing processes in order to attain higher profitability. Operations management was previously known as production management where the entire focus was on manufacturing. However, today operations management is a multidisciplinary area that works with finance and marketing. It ensures that the labor, material and other inputs are used efficiently. It is based on various disciplines and draws principles from general management. Principles of Operations Management: Dr Richard J Schonberger has developed 16 principles of which are as follows: Visibility Management: Promoting organizational achievement and let the external market learn about productivity, improvement in competency. Fix Cause: Paying attention to the root causes which hamper and obstruct the performance and affect cost. Total Quality Control (TQC): Using only best processes, procedures, materials and other inputs. Pull System: Improving the workflow and cutting down any wastage

Pricing Decisions

Price is the only element of the marketing mix that generates revenue and it is also the most important determinant of the profitability of the business by way of sales volume. It is the competition that contributes the maximum to the importance of pricing. customers compare the prices of various products to decide a particular brand to purchase. Factors Influence Pricing: There can be two sets of factors influencing the pricing decisions of any enterprise. These factors can be economic, psychological, quantitative or qualitative in nature. The two sets of factors are Internal Factors: It is related to the firm. It includes Corporate objectives of the firm. Image sought by the firm through pricing. Price elasticity of demand of the product. Costs of manufacturing and marketing. Stage of the product in its life cycle. The intensity of competition. The characteristics of the product. The volume of production and economies of scale. External Factors: It is related to the macro-environme

Managing Technological Change

According to Everett M Rogers, "Technology is designed for instrumental action that reduces the uncertainty in the cause-effect relationships involved in achieving the desired outcome." Technology change rates are at a rapid pace. With the emergence of advanced technologies, such as machine learning, predictive analytics, artificial intelligence, big data and so on, business leaders face major obstacles in enacting such technologies. Managing technological] changes is not easy and the size of the organization increases this issue also multiplies. Innovators have to deal with a dozen concerns, from dealing with employee issues to generating actual revenue. While in each organization there will always be early adopters and laggards, trying to take everyone into consideration lead to making an overall effective strategy. Impact of Technology on Business: Technology has a wide range of possible impacts on management in the context of business which are as follows: Reduced Operati

Entrepreneurship Developement

Entrepreneurship development is the process of enhancing the knowledge and skills of entrepreneurs with the help of various classroom and training programs. The aim of entrepreneurship development (ED) is to increase the number of entrepreneurs in the country. It helps in economic development by increasing capital formation and employment. It also promotes balanced regional growth in the country. Theories of Entrepreneurship development: 1. Economic Theory: The theory defines the relationship between economic growth and entrepreneurial development. It postulates that only when there are economic incentives, the entrepreneur gets motivated to take the project. Hence, there should be favorable economic conditions. Various economic incentives take the form of concessional tax policies, industrial policies, easy access to sources of finance and raw materials, along with the availability of infrastructure access to information about technology and market conditions and technology. 2. Sociol

Management: Introduction, Elements, Characteristics and Significance

 Management is the art of managing people and resources at the organization. It gives various theories, tools and techniques to manage and increase the productivity of the organization. According to P Drucker, "Management is a multipurpose organ that manages a business and manager manages workers and work." According to Heinz Weihrich and Harold Koontz, "Management is the process of designing and maintaining an environment in which individuals working together in groups, efficiently accomplish selected aims." Thus, it is the process of efficiently achieving organizational objectives by efficiently using restricted means and resources. Elements of Management: Management aims at achieving a predefined goal, thus it focuses on effectiveness. Management deals with physical and human resources. Management is a process that is regular and continuous. The principle of management is applicable to all forms of organization, thus it is universal. Management deals with a group

Factors Affecting Foreign Exchange Rate

There are various factors that affect the demand and supply of the currencies thus affecting the exchange rate in the foreign exchange market. Few key factors are explained below: Inflation: As inflation rises, in one country (India), the domestic goods become expensive in comparison to another (USD). This leads to more imports and a fall in exports. This will reduce demand for INR and increase the supply of INR. Similarly, demand for USD will increase and its supply will decrease. The overall impact will be depreciated of Indian Rupee. Interest Rate: When the interest rate in one country (India) rises in comparison to another (USA), then all the individuals and firms will invest in the country where the interest rates are high. This will lead to the sale of USD and the purchase of INR. Thus, the demand for USD will fall and that of INR will rise. Similarly, Indians will invest in INR and not USD. Thus, the supply of INR will fall and supply for USD will increase. The net effect will

Working Capital Management

Working capital management takes the decision to invest in short-term assets. Current assets of the firm comprise cash, receivables and inventory. Working capital management decides how much money should be invested in each of these assets. This decision is crucial as it affects the liquidity and the profitability of the firm. If the company invests its entire fund in the current asset, then, it will not be able to invest in the risky and long-term assets. This will result in lesser profits but the liquidity will be high. On the other hand, if the firms do not invest in the short term, then there will be a risk of short-term insolvency, but profitability will be high. Gross working capital is known as the current assets of the firm. Net working capital is the difference between current assets and current liabilities. Approaches to Working Capital: It deals with determining what proportion of working capital should be financed by long-term sources and how many by short-term sources. Hed

Marginal Costing

The term 'marginal cost' is defined as "the amount at any given volume of output, by which aggregate costs are changed if the volume of output is increased or decreased by one unit. It is a variable cost of one unit of product or service, i.e. a cost, wh8ich would be avoided is that unit was not produced or provided". According to CIMA terminology, " Marginal costing is the ascertainment of marginal costs of the effect on profit changes in volume or type of output by differentiating between fixed costs and variable costs." It is a technique of decision making, which involves the ascertainment of total costs. classification of costs into one fixed and variable. use of such information for analysis and decision-making.. Marginal costing is mainly concerned with providing information to management to assist in decision-making and to exercise control. Marginal costing is also known as 'variable costing' or 'out of pocket costing'. Important Fact

International Business: Objectives, Advantages and Disadvanatges

International business refers to business activities or transactions carried out beyond the national borders of a country. It is a much wider term comprising of all the commercial transactions taking place between two countries. International business can occur between different nodes, which can be exporting, licensing, contract, manufacturing, foreign assembly, foreign production, joint venturing and others. For a study of international business or trade, it is necessary to understand the nature and extent of economic interdependence among countries. Countries depend on each other for a variety of economic transactions i.e. transactions is good, service and capital. Being a part of the world economy, no country live in economic isolation or afford to keep out of the global economy. Countries are highly interdependent for their economic growth. Objectives of International Business: Profit Advantage: International business could be more profitable than domestic. There is a number of ca