CLOSELY HELD CORPORATIONS Closely held firms are those in which a small group of shareholders control the operating and managerial policies of the firm. Over 90 percent of global businesses are closely held. These firms defer from most publicly traded firms, in which ownership is widely disbursed and the firm […]
Management
ASSEMBLY LINE METHODS An assembly line is a production arrangement of workers and equipment in which the product that is being assembled passes consecutively from operation to operation, with each station adding to the work of previous stations, until the product is completed. Assembly line methods were originally introduced to […]
WHAT FACTORS DRIVE CUSTOMERS’ PURCHASING POWER? (PART 1) Many companies make the mistake of thinking their customers make purchase decisions based on one or two purchase factors that they think are key purchase criteria, such as price or product availability. But this is rarely the case. Customers usually base their […]
KEY GUIDELINES IN SELLING A BUSINESS (PART 2) Many business owners eventually decide to sell their companies, though the reasons for such divestment vary widely from individual to individual. Some owners may simply wish to retire, while others are impatient to investigate new challenges – whether in business or some […]
KEY GUIDELINES IN SELLING A BUSINESS (PART 1) Many business owners eventually decide to sell their companies, though the reasons for such divestment vary widely from individual to individual. Some owners may simply wish to retire, while others are impatient to investigate new challenges – whether in business or some […]
FRAMEWORK FOR DETERMINING WHAT TYPE OF BUSINESS ALLIANCE IS REQUIRED The framework for determining what type of business alliance is needed is a high-level framework and can be determined by answering the five questions listed in Figure 1. Each question is reflected in a separate step in the framework, with […]
FRAMEWORK FOR DETERMINING THE NEED FOR A BUSINESS ALLIANCE Defining “Alliance” The definition of the word “alliance” varies from executive to executive, company to company, and industry to industry. Companies that have entered into alliance don’t necessarily agree on what is meant by “alliance”. The fact is that there are […]
HOW TO WORK WITH SUBCONTRACTORS Subcontracting refers to the process of entering a contractual agreement with an outside person or company to perform a certain amount of work. The outside person or company in this arrangement is known as a subcontractor, or may also be called a freelance employee, independent […]
THE CHALLENGE OF ATTAINING SUSTAINABLE GROWTH The sustainable growth rate (SGR) of a firm is the maximum rate of growth in sales that can be achieved, given the firm’s profitability, asset utilization, and desired dividend payout and debt (financial leverage) ratios. Variables typically include the net profit margin on new […]
USING ORGANIZATIONAL CHARTS TO STUDY ORGANIZATION STRUCTURE Organizational charts are detailed representations of organization structures and hierarchies. They are typically used to provide both employees and individuals outside the organization with a “snapshot” picture of its reporting relationships, divisions of work, and levels of management. Obviously, smaller firms – whether […]
