Definition: A dividend policy can be defined as the dividend distribution guidelines provided by the board of directors of a company. It sets the parameter for delivering returns to the equity shareholders, on the capital invested by them in the business. While taking such decisions, the company has to maintain a proper balance between its debt and equity … [Read more...] about Dividend Policy
Venture Capitalist Vs Angel Investor
When we think of startup funding, we encounter the two very similar but incredibly different types of lenders, i.e., venture capitalist and angel investor. The significant dissimilarity between the two is that the former is a venture capital firm which invests the money of its customers. Whereas, the latter is an individual who is financially well versed and use his/her own … [Read more...] about Venture Capitalist Vs Angel Investor
PERT Analysis
Definition: PERT or Project Evaluation and Review Technique can be understood as a tool for handling programmes and projects which involve a series of activities. It supports the analysis of these actions and their sequential arrangement, along with determining the proposed duration required for completing each of these tasks with the help of drafting a critical path, is termed … [Read more...] about PERT Analysis
Porter’s Value Chain
Definition: Porter's value chain or VCA (Value Chain Analysis) refers to the analysis and planning of a series of business activities (primary and secondary). These activities should be executed in such a manner that it adds value or utility to the customer experience from their purchase of products or services. A known American Economist, Michael Eugene Porter first stated … [Read more...] about Porter’s Value Chain
Howard Sheth Model
Definition: The Howard Sheth Model is an approach for analyzing the combined impact of the social, psychological and marketing factors on the buying behaviour or preference of the consumers and the industrial buyers into a logical order of information processing. John Howard and Jagadish Sheth introduced the Howard Sheth Model in the year 1969. The concept was published in … [Read more...] about Howard Sheth Model
Price Sensitivity
Definition: Price sensitivity refers to the degree or extent to which the consumer's buying behaviour varies with the change in the price of the product or service. In simple terms, it determines the level to which buyers or consumers are conscious about the price of a particular product or service. It is also termed as price elasticity of demand, which shows the effect of … [Read more...] about Price Sensitivity
Case Study on Corporate Social Responsibility (CSR)
Definition: Corporate social responsibility refers to a sustainable business model where the company is accountable and responsible towards the social, cultural, environmental and economic aspects of the society. The companies cannot solely function for profit generation, it also needs to contribute to society and the public. An organization operating in a country is … [Read more...] about Case Study on Corporate Social Responsibility (CSR)
McKinsey 7s Model
Definition: McKinsey 7s model can be termed as an internal assessment tool for business organizations. It determines the organizational effectiveness by examining the alignment of the seven essential elements (i.e., hard elements - systems, strategy, structure; and soft elements - share values, staff, style, skills) with the core values of the entity. Robert Waterman, … [Read more...] about McKinsey 7s Model
Pricing Methods
Definition: Pricing method can be seen as the process of ascertaining the value of a product or service at which the manufacturer is willing to sell it in the market. The cost, market competition and demand are the three significant factors which influence a product's price. Pricing of products or services is a crucial decision-making strategy of the firm. Since it has a … [Read more...] about Pricing Methods
Quality Function Deployment (QFD)
Definition: Quality function deployment is a systematic approach of specifying the customer needs and desires, rating them in terms of priority and designing the quality products and process to serve these requirements, through proper planning. QFD is a process of bridging the gap between where we stand and what we aim at, by providing target values and competitive … [Read more...] about Quality Function Deployment (QFD)