Book value of an asset denotes its accounting value, which is nothing but the historical cost less accumulated depreciation/amortization. Market value of an asset represents the actual market price of the asset, that is traded in the market place. It can also be understood as the actual worth of the firm relating to other firms in the marketplace. Book Value, as the name signifies, is the value of the commercial instrument or asset, as entered in the financial books of the firm. On the other … [Read more...]

Simply put, management can be understood as the skill of getting the work done from others. It is not exactly same as administration, which alludes to a process of effectively administering the entire organization. The most important point that differs management from the administration is that the former is concerned with directing or guiding the operations of the organization, whereas the latter stresses on laying down the policies and establishing the objectives of the … [Read more...]

Promotion is defined as the range of activities that communicate the benefits of the product to the potential buyers, so as to attract and instigate them to buy it. It includes activities like direct marketing, sales promotion, personal selling, advertising and public relation. All of these are considered as a sales push strategy. Personal Selling is described as a promotional tool whereby a sales representative, presents the product before the potential customers and informs them about its … [Read more...]

Supply Chain refers to the integration of all activities involved in the process of sourcing, procurement, conversion and logistics. On the other hand, value chain implies the series of business operations in which utility is added to the goods and services offered by the firm so as to enhance customer value. Supply Chain is the interconnection of all the functions that starts from the manufacturing of raw material into the finished product and ends when the product reaches the final … [Read more...]

Marketing mix implies combinations of various elements that help the company in attracting customers, to buy the products offered by the company. It includes product, price, place, and promotion. Promotion is a marketing mechanism, that involves informing the customers about the product offered by the company, and includes advertising, public relation, personal selling, direct marketing, etc. Most of the people are having the opinion that promotion and advertising are one, and the same thing … [Read more...]

Manufacturing and Production, are the two terms related to conversion of raw materials into finished products. But, Have you ever wondered, what makes them different. Manufacturing is the process of transforming raw materials into ready goods, with the help of machinery. On the other hand, production alludes to the processes or methods, that converts inputs like raw material or semi finished goods, to make finished product or services, which may or may not use machinery. Manufacturing is a … [Read more...]

No country in this world is self-sufficient, and it has to take help of the financial organizations and other nations to get financial assistance especially who are on the way to development. To know about the creditworthiness of a country's economy, its debt and deficit are considered. Debt is the loan taken by the government of any country, whereas Deficit is the excess of government expenditure over government revenue. Here, debt refers to the government debt, or national debt and deficit … [Read more...]

Every organization works for reaping more and more profit; this can be done by only two ways, i.e. getting more and more customers and eliminating unnecessary expenses, wastes and losses. In this context, lean management and six sigma are two approaches used by the firms, in general. The Lean management aimed at reducing process waste and increasing the worth of firm's product or service to the customer. Conversely, six sigma is a quality measurement, that seeks near perfection in products or … [Read more...]

In a business environment, firms use various techniques, to survive, compete and grow in the long run. These techniques can be called as tactics and strategy. Tactics are the actions, projects or events, to reach a particular point or the desired end, whereas the Strategy is defined as a game plan, which can help the organization to achieve its mission and objectives. These terms are used very often, when we talk about competition among firms at the market. While tactics refers to the moves … [Read more...]

Every business organization is a part of the business environment, within which it operates. No entity can function in isolation because there are many factors that closely or distantly surrounds the business, which is known as a business environment. It is broadly classified into two categories, i.e. microenvironment, and macro environment. The former affects the working of a particular business only, to which they relate to, while the latter affects the functioning of all the business … [Read more...]