Posts

Showing posts from September, 2015

Single Entry and Double Entry Accounting

-
Single entry accounting/Cash accounting. This system records only cash movement of transactions and that too up to the extent of recording one aspect of the transactions. This means that only receipt or payment of cash is recorded and no separate record is maintained (about the source of receipt and payment) as to from whom the cash was received or to whom it was paid. Double entry book keeping/Commercial accounting. Double entry or commercial accounting system records both aspects of transaction i.e. receipt or payment and source of receipt or payment. It also records credit transactions i.e. recording of Electricity Bill or accruals of Salary payment etc. This concept will be explained in detail in the next lectures but for the time being it should be noted that in cash accounting date of receipt / payment of actual cash is important while in commercial accounting the date on which the expense is caused (whether paid or not) as well as the spreading of the cost of c
Post a Comment
Read more

Types of Strategies

-
CORPORATE STRATEGY  The corporate strategy question is, How many and what kind of businesses should we be in? For example, PepsiCo doesn t just make Pepsi-Cola. Instead, PepsiCo is comprised of four main businesses: Frito-Lay North America, PepsiCo Beverages North America, PepsiCo International, and Quaker Oats North America.    PepsiCo therefore needs a  corporate-level strategy. A company s  corporate-level strategy identifies the portfolio of businesses that, in total, comprise the company and how these businesses relate to each other. * For example, with a  concentration (single business) corporate strategy, the company offers one product or product line, usually in one market. WD-40 Company (which makes a spray hardware lubricant) is one example. * A  diversification corporate strategy implies that the firm will expand by adding new product lines. PepsiCo is diversified. Over the years, PepsiCo added chips and Quaker Oats. Such  related diversification means diversify
Post a Comment
Read more

Human Resource Management Strategy and Analysis

-
Image
Strategic Planning A strategic plan is the company s plan for how it will match its internal strengths and weaknesses with external opportunities and threats in order to maintain a competitive advantage. The essence of strategic planning is to ask, "Where are we now as a business, where do we want to be, and how should we get there?"  The manager then formulates specific (human resources and other) plans to take the company from where it is now to where he or she wants it to be. When Yahoo! tries to figure out whether to sell its search business to Microsoft, it s engaged in strategic planning. A  strategy is a course of action. If Yahoo! decides it must raise money and focus more on applications like Yahoo! Finance, one strategy might be to sell Yahoo! Search. Strategic management is the process of identifying and executing the organization s strategic plan, by matching the company s capabilities with the demands of its environment. Figure below sums up the strategi
Post a Comment
Read more

Popular posts from this blog

RECORD KEEPING AND SOME BASIC CONCEPTS

-
Image
We can maintain a diary of transactions and note the daily transactions like sale, purchase etc. in it. Problems Faced in Maintaining Diary of Transactions • How will we come to know the income and expenses from various sources? • We only have a sheet / page on which daily transactions are listed. • We do not know which product is selling better and which is not. Available Alternate One can go through all the transactions at the end of the month and note different types of transactions on different pages. So that every page gives complete detail for a different type of transaction like sales of different products and expenses of different types now try to go through these transactions and separate transactions of different types.   But what if the number of transactions is large? Is it really possible to go through hundreds or thousands of transactions at the month end and analyse them to obtain required results.  Sales and purchase are not always for cash. Some ti
Read more

How Technology Affects Managerial Communication

-
Two developments in information and communication technology seem to be having the most significant impact on current managerial communication: networked computer systems and wireless capabilities. Networked Systems 1. An electronic mail system is a mail system that allows high-speed exchange of written messages through the use of computerized text-processing and communication networks. a.  Electronic mail has advantages. 1)  It is a time-saver. 2)  It leads to exchanges of information among managers who previously did not communicate. 3)  Managers tend to receive new types of information through these systems. b.  Electronic mail has a couple of disadvantages. 1)  It eliminates the nonverbal cues that serve as aids in face-to-face communication. 2)  It is easy to vent anger and frustrations over email that would never be communicated through regular written communication channels. 3)  It leads to an excess of irrelevant mail. 2.  Voice mail is the recording systems which en
Read more

BASIC CONCEPTS OF ACCOUNTING

-
Financial accounting is the maintenance of daily record of All financial transactions in such a manner that it would help in the preparation of suitable information regarding the financial affairs of a business or an individual. The need for recording financial transactions arises because the individual or business wants to know the  performance of the business and to assist the person in making decisions related to the business. Transactions In accounting or business terms, any dealing between two persons involving money or a valuable thing is called transaction .   Human beings are social animals and are bound to adopt a community living style. Living in a community, essentially means that people interact with other people and are dependent on each other to fulfill their needs. Every person cannot fulfill all his needs like food, clothing, housing etc. on his own. He, therefore, depends on other people for his needs, in return to this providing others with some of theirs. It
Read more