Definition: Offshoring is the process of relocating the business operations unit (production or services) to a different country (usually in developing nations) where cheap labour or resources are available. Here the company do not seek global retailing; instead, it looks forward to minimizing the cost of manufacturing and other supporting services. Setting up this new … [Read more...] about Offshoring
Business Management
Intrapreneurship
Definition: An intrapreneurship is a phenomenon of empowering the employees within the organization, by valuing their ideas and converting them into a profit-making model for the business. The organization would bear the associated risk and loss if the intrapreneur's project failed. It is the combination of employee responsibilities with his/her entrepreneurship skills that … [Read more...] about Intrapreneurship
Strategy Vs Tactics
Even the top-performing managers consider the terms strategy and tactics as synonyms. Although both are far different from each other. A strategy is a corporate plan developed to competently achieve the company's vision in the long run, by overcoming various business obstacles. Whereas, tactics are the ways adopted to deal with certain situations which arise during the … [Read more...] about Strategy Vs Tactics
Inventory Management Techniques
Definition: Inventory management techniques can be seen as a useful tool in the hands of the management. It ensures the availability of the right type of stock, at the right time, at the right place and in the desired quantity. It also enables the managers to match the inventory shown in the books of accounts with that available. Example: A garment manufacturing industry … [Read more...] about Inventory Management Techniques
Inventory Management
Definition: Inventory management is an approach for keeping track of the flow of inventory. It starts right from the procurement of goods and its warehousing and continues to the outflow of the raw material or stock to reach the manufacturing units or to the market, respectively. The process can be carried out manually or by using an automated system. When the goods arrive … [Read more...] about Inventory Management
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
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
Max Weber Bureaucracy Theory
Definition: The bureaucratic management theory, introduced by Max Weber stated that to manage an organization efficiently, it is essential to have a clear line of authority along with proper rules, procedures and regulations for controlling each business operation. Bureaucracy refers to the possessing of control over a group of people or activities through knowledge, power or … [Read more...] about Max Weber Bureaucracy Theory
Scientific Management
Definition: Scientific management concept was developed by F.W. Taylor who implemented the scientific techniques such as observation, logic, analysis and combination to study the working conditions and management at the floor level in the factories and production units. The concept of scientific management was given to improve the productivity, efficiency and effectiveness … [Read more...] about Scientific Management