HOW PENETRATION PRICING WORKS Penetration pricing is a strategy employed by businesses introducing new goods or services into the market place. With this policy, the initial price of the good or service is set relatively low in hopes of “penetrating” into the marketplace quickly and securing significant market share. This...
REQUIREMENTS FOR SUCCESSFUL QUALITY CIRCLES A quality circle is a participatory management technique that enlists the help of employees in solving problems related to their own jobs. A quality circle is defined as “a small group of employees doing similar or related work who meet regularly to identify, analyze, and...
HOW TO DETERMINE OVERHEAD RATES Overhead expenses are those production and nonproduction costs not readily traceable to specific jobs or processes. Overhead expenses encompass three general areas: indirect materials, indirect labor, and all other miscellaneous production expenses, such as taxes, insurance, depreciation, supplies, utilities, and repairs. Therefore, overhead expense is...
KEY COMPONENTS OF A TYPICAL LICENSING AGREEMENT A licensing agreement is a legal contract between two parties, known as the licensor and the licensee. In a typical licensing agreement, the licensor grants the licensee the right to produce and sell goods, apply a brand name or trademark, or use patented...
WHEN DECIDING WHETHER OR NOT TO LICENSE A NEW PRODUCT Given the popularity of licensing, many businesses today must face the question of whether to manufacture a new product itself or license the product to another company. Major factors entering into this decision are the nature of the product and...
HOW EMPLOYEES REACT TO OVERTIME Overtime is work done beyond the regular work hours per week. Any work over forty hours per week for an hourly worker is considered overtime. Businesses with seasonal peaks, with quotas and deadlines, or with the possibility of rush orders, will at some point probably...
KEY STEPS IN ORAL PRESENTATIONS Oral Communication Oral communication describes any type of interaction that makes use of spoken words, and it is a vital, integral part of the modern business world. The ability to communicate effectively through speaking as well as in writing is highly valued, and demanded in...
ELEMENTS OF NON-VERBAL COMMUNICATION Nonverbal communication – such as facial expressions, gestures, posture, and a tone of voice – is an important component of personal business interactions. Nonverbal communication can help a business owner to get a message across or successfully interpret a message received from another person. On the...
WHAT MAKES A GOOD TEAM? Teamwork is the foundation of all successful management. Managing teams well is a major and stimulating challenge to any manager, from novice to exceptional hand. A true team is a living, constantly changing, dynamic force in which a number of people come together to work....
HOW BUSINESSES CAN BENEFIT FROM ONLINE AUCTIONS Online auctions are sales transactions involving competitive bidding that are conducted over the internet. Whether the sales take place between individuals, between consumers and merchants, or between businesses, online auctions have enjoyed a rapid increase in popularity. In fact, some business analysts claim...
