Definition: Product Decision in marketing refers to the company’s mindful decisions, major or minor regarding their product. It ranks first among the 4P’s of Marketing- Product, Price, Place and Promotion. The organizations take these decisions to attain their objectives and become profitable in the long run. Product Decisions are vital marketing decisions to be made at … [Read more...] about Product Decision
Span of Control in Management
Definition: The span of control in management suggests estimating the optimum number of subordinates managed by a single supervisor. It is a primary factor that determines the shape of the organization. It involves all the management activities in the business than just supervision and control. The levels of management are created based on the span of control expressed by … [Read more...] about Span of Control in Management
Employee Ownership
Definition: Employee ownership is a model in which the employees owns all or maximum stake in the business. It isn't restricted to the higher level but offered to every management level. It also provides tax benefits to businesses. This model benefits both the business as well as employees. Employees shares companies profits, which boost enthusiasm. It results in increased … [Read more...] about Employee Ownership
Integrated Accounts
Definition: The integrated accounts are statements in which financial and cost accounting transactions are maintained jointly. In other words, when the cost and financial accounts are merged and recorded in the same set of books, it is referred to as Integrated Accounts. Integrated accounts accommodate complete information about both areas. The transactions are recorded … [Read more...] about Integrated Accounts
Group Decision Making
Definition: Group Decision Making is a form of participative decision making, where a group of individuals work together to solve a problem complex in nature. The group members try to discover and evaluate creative alternatives to solve a complicated problem. It is a participatory process in which the group members share their Ideas, Knowledge, Expertise and Experience. The … [Read more...] about Group Decision Making
Batch Costing
Definition: Batch costing is an extension of Job costing in which costs and profit are calculated for batches. The production in batches decreases the setting up costs. However, it increases the carrying and holding costs. The production must be carried out by calculating the Economic Batch Quantity (EBQ). Preparation of Batch cost sheet facilitates calculation of cost per … [Read more...] about Batch Costing
Rightsizing
Definition: Rightsizing is a strategic business tool that escalates the resources to reduce costs and remain competitive. It is a type of involuntary separation that filters the workforce correctly, especially at the top level. Optimization gives rise to a skilled, able and knowledgeable workforce to achieve new business goals. It reduces the operating cost and escalates the … [Read more...] about Rightsizing
Compensation Management
Definition: Compensation is the reward an employee receives in return for their valuable efforts while performing various jobs in the organization. Compensation management deals with every type of reward and its allocation in the most desirable way. These compensations are managed effectively to achieve equity, transparency and consistency across the organization. It is an … [Read more...] about Compensation Management
Direct Marketing
Definition: Direct Marketing is a personalized form of marketing that establishes direct interaction with the potential customer. Here, the marketers target the correct type of audience for promoting their products. Its goal is to get a response from the target customer. However, it does not necessarily involve physical interaction with the customer. Besides, companies may … [Read more...] about Direct Marketing
Market Segmentation
Definition: Market Segmentation implies a process of fragmenting the diversified market containing similar attributes or needs. It is the first stage of the STP decision process (Segmentation, Targeting and Positioning). It is a tool to achieve stability and fight competition in a highly competitive market in the long run. Classification of market segments depends on certain … [Read more...] about Market Segmentation