One of the major myth, regarding the non-profit organisation, which most of the people believe as true is that it does not make the profit from business activity. However, in reality, the non-profit organisation too makes the profit from various activities just like a for-profit organisation does, but only the way of handling profit is different in the two organisations. The basic aspect, which bifurcates business organisation is the purpose of their operation, i.e. not all organisations work … [Read more...]

Marketing of products and services involves different strategies due to the dissimilarities in their characteristics. While in product marketing, the aim is to fulfil the needs and wants of the target population.  As against, in service marketing, the firm seeks to create a good relationship with the customer, to win their trust. The two most important activities undertaken by the business is production or procurement of products and its distribution to the end user. The procurement of raw … [Read more...]

Wholesaler is a trader, who buys goods in bulk quantities and sell it in smaller ones. On the other hand, distributors are the reseller of products, which cover a specific area or market. To make goods available to the final consumer, a manufacturer or producer should choose the best channel for distribution, as he cannot sell the goods directly to consumers. In this way, the supply chain of a company has a great role to play because it highly influences its marketing and promotional … [Read more...]

After business planning is performed and the organisation structure is determined, the next step in the process of management is staffing. While planning decides what is to be done, organising determines, how is to be done, staffing decides who is going to do it. Many often misconstrue staffing for recruiting, but they are different, as in staffing refers to putting right people at jobs, recruiting means seeking possible candidates and encouraging them to apply for the vacant position. To … [Read more...]

The term HRM expands to Human Resource Management; it implies the implementation of management principles for managing the workforce of an organisation. It is concerned with the process of hiring, developing and retaining the manpower, with a view to making them more efficient. When conventional HRM is compared and contrasted with the strategic HRM or SHRM, it becomes easier to understand. SHRM is the process of aligning the business strategy with the company's human resource practices, so as … [Read more...]

One of the objectives of the management is to establish a sound organisational structure and to do this, effective authority and responsibility relationship should be created, i.e. Who is accountable to whom? Who are superior and subordinate? Who can give orders? Whenever authority is used, responsibility ensues. Authority is the legal right to give the command, order or instruction and compel the subordinates to do a certain act. On the other hand, Responsibility is the outcome of authority. … [Read more...]

In the business glossary, you might have encountered the terms marketing concept and selling concept end number of times. The marketing concept concentrates on the buyer's needs and then the means are identified to meet out those needs. Therefore, the customer is regarded as the king of the market.  On the other hand, selling concept stresses on the needs of the seller and so, it is the seller who rules the market. These two are the most misconstrued however there exists a fine line of … [Read more...]

While making a choice between business types, most business owners get confused between LLC or Inc. The former combines two forms of business, i.e. partnership and corporation. On the other hand, the latter means Incorporated, i.e. which represents the form of corporation, such as S corp or C corp. The basic question that arises before the entrepreneurs when starting a new business venture is, which business type to choose? The business structure is not just a status, rather all the legal … [Read more...]

Coordination refers to the organisation of all the activities in an orderly manner, to achieve unanimity of individual efforts in the pursuit of group goals. On the flip side, cooperation is a discretionary action of individuals to work together or help one another, for a mutual benefit. It is a joint effort of the members working in the organization for accomplishing a defined target. The 3C's vital for teamwork are coordination, cooperation and collaboration. It is quite common to … [Read more...]

The difference between mediation and arbitration lies in the nature of the judgement taken by the experts. While the decision taken by the arbitrator is binding on the parties, the mediator does not make the judgement but helps the parties in arriving at an agreement. The occurrence of the dispute is very common in every field not only in business, especially when the issue is related to an opinion, unanimous agreement of the parties is rare. There are various alternatives of dispute … [Read more...]