Business Management

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

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

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

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

Definition of Management: Management can be viewed as an effort made for accomplishing the organizational goals, objectives and vision through planning, organizing, staffing, directing and controlling all the business activities accordingly. These principles set the guidelines and standardize the management's course of action to run a business organization effectively and … [Read more...] about Henri Fayol’s 14 Principles of Management

Definition: A Ponzi scheme is a fraudulent game plan where a schemer proposes a false investment proposal to the public, promising risk-free high returns on their investment value by pretending to pool the accumulated funds in profitable business ideas. In reality, the money is not invested anywhere, whereas the schemer redistributes the collected amount by paying the … [Read more...] about Ponzi Scheme

Definition: Corporate culture is the blend of sociability and solidarity in an organization. It can be understood as the ethics, values, perception, atmosphere, practices, attitudes and beliefs shared by the employees of a company to achieve organizational goals and objectives. For Example; Let us take the instance of a world-renowned Swedish based furniture brand 'Ikea'. … [Read more...] about Corporate Culture

Definition: Seed capital is the initial fund or money which is required by a budding entrepreneur to start a new business venture. 'Seed' here refers to the business which is at the beginning stage. 'Capital' refers to the money or funds required at the very beginning of a business. A 'budding entrepreneur' is the business aspirant who looks forward to making money from his … [Read more...] about Seed Capital

Definition: A Public Limited Company (PLC) is a separate legal business entity which offers its shares to be traded on the stock exchange for the general public. According to the regulations of the corporate law, a PLC has to compulsorily present its financial stats and position publicly to maintain transparency. Example: Barclays Public Limited Company incorporated in the … [Read more...] about Public Limited Company (PLC)

Definition: Benchmarking is the process of continually improving the business or the organization by evaluating the scope for improvement, comparing the current position with that of the previous one or with the business practices of the relevant competitors, thereby establishing standards to be achieved. For Example, A food delivery service chain was facing a problem of … [Read more...] about Benchmarking