The Value Chain: Definition, Model, Analysis, and Example What are the characteristics of value chain? 1. The value chain is a concept developed by Michael Porter that can be used to understand the process by which businesses create value for their customers. 2. The value chain is a tool for analyzing how businesses create value, … Read more
The term “purchase order lead time” refers to the amount of time that passes between the moment a buyer submits a purchase order to a seller and the moment the seller ships the requested goods or services. In a supply chain, lead time can have a major impact on a company’s ability to meet customer … Read more
. There are different types of organizational charts and each has a different meaning and purpose. What is type of organization? Type of organization refers to the classification of a company according to its ownership structure. There are four main types of organizations: sole proprietorships, partnerships, corporations, and limited liability companies (LLCs). Each type of … Read more
In a bilateral monopoly, there is only one firm on each side of the market. This can happen in a number of ways. For example, there may be only one firm producing a good, and only one firm buying that good. Alternatively, there may be only one firm selling a good in a particular geographic … Read more
The term “material weakness” refers to a deficiency in internal controls over financial reporting that could result in a material misstatement of the company’s financial statements. A material weakness is considered to be a significant deficiency or a combination of significant deficiencies that results in more than a remote likelihood that a material misstatement of … Read more
A management audit is an evaluation of an organization’s management system. It is a systematic process that assesses how well an organization’s management system meets its stated objectives. The management audit process typically includes interviews, surveys, and document review. What is the objective of management audit? The objective of a management audit is to assess … Read more
Internalization is the process by which a firm assimilates and incorporates knowledge from outside sources into its own organizational knowledge base. The concept of internalization has been used in a variety of contexts, including the fields of economics, organization theory, and strategic management. In general, internalization occurs when a firm acquires or generates new knowledge … Read more
Agency theory is a way of thinking about relationships between people where one person is the agent, or representative, of another. This can happen in business, politics, or other areas where one person has power to act on behalf of another. Agency theory can help explain why people do things that may not be in … Read more
Chipotle and Old Navy: How to Explain Spinouts What is corporate action and its types? A corporate action is an event initiated by a public company that affects the securities issued by the company. Corporate actions are typically announced to shareholders in advance, and may require shareholders to take some action, such as voting or … Read more
In microeconomics, an intermediate good or semi-finished good is a good used as an input into the production of another good. A firm may use intermediate goods either in the production of a final good or in the production of another intermediate good. In macroeconomics, an intermediate good is a good that is used in … Read more
