Tag: Purpose

  • Services Provided by the Internet (ISP): How to be Know

    Services Provided by the Internet (ISP): How to be Know

    An Internet Service Provider (ISP) is a company or organization that provides users with access to the Internet. ISPs offer various types of internet connections, such as broadband, DSL, cable, or fiber-optic. Allowing individuals and businesses to connect to the internet and access online services.

    Understanding the Services Provided by the Internet (ISP)

    ISP services typically include internet connectivity, email accounts, web hosting, and sometimes additional features like virtual private networks (VPNs) or cloud storage. ISPs play a crucial role in enabling users to navigate the vast online world and communicate with others across the globe.

    Understanding the Services Provided by the Internet (ISP) Image
    Photo by Brett Sayles

    Meaning of ISP

    An Internet Service Provider (ISP) is a company or organization that provides Internet access to individuals and businesses. ISPs serve as the bridge between users and the vast network of interconnected devices and services that make up the Internet.

    ISPs offer various types of internet connections, such as broadband, DSL, cable, satellite, or fiber-optic, to cater to different needs and geographic locations. They typically charge a fee for their services, either on a monthly subscription basis or a pay-as-you-go model.

    In addition to providing internet connectivity, ISPs often offer additional services like email hosting, web hosting, virtual private networks (VPNs), and other value-added features to enhance the internet experience for their customers.

    Users rely on ISPs to establish a reliable and secure connection to access websites, send and receive emails, stream media, participate in online gaming, and perform various online activities. ISPs are an essential component of the Internet ecosystem. Facilitating global communication and enabling access to a wealth of information and services.

    Definition of ISP

    An Internet Service Provider (ISP) is a company or organization that provides individuals and businesses with access to the Internet. ISPs essentially act as intermediaries that enable users to connect to the global network of computers and access various online services and resources.

    They offer different types of internet connections, such as broadband, DSL, cable, or fiber-optic. Each with its speed and availability depending on the geographical location. ISPs also often offer additional services like email accounts, web hosting, and virtual private networks (VPNs) to enhance the internet experience for their customers. Overall, ISPs play a vital role in connecting users to the digital world and enabling online communication, information sharing, and entertainment.

    5 services provided by the internet

    The Internet provides a wide range of services to users. Here are five common services provided by the Internet:

    1. Communication: The Internet enables various forms of communication, such as email, instant messaging, video conferencing, and social media platforms. These services allow individuals and businesses to connect and interact with others across the globe in real-time.
    2. Information Access: The internet serves as a vast source of information, providing access to websites, online databases, libraries, and search engines. Users can find information on a wide range of topics, including news, research, educational resources, and entertainment.
    3. E-commerce: The internet has transformed the way we shop and conduct business. E-commerce platforms allow users to purchase products and services online, from clothing and electronics to travel bookings and digital downloads. Online payment systems facilitate secure transactions, making them convenient for businesses and consumers alike.
    4. Entertainment: The Internet offers various forms of entertainment, including streaming services for movies, TV shows, and music. Users can also access online gaming platforms, virtual reality experiences, and multimedia content like podcasts and videos. Social media platforms provide a space for users to share and discover content, connect with others, and participate in online communities.
    5. Cloud Computing: Cloud computing services provide storage, computing power, and software applications over the internet. Users can store and access their data remotely, collaborate on documents in real-time, and utilize software and services without the need for extensive local hardware or infrastructure.

    These are just a few examples of the many services provided by the Internet. The internet’s versatility and accessibility have revolutionized the way we communicate, access information, conduct business, and entertain ourselves.

    Purpose of Internet Service Providers (ISPs)

    The primary purpose of Internet Service Providers (ISPs) is to provide individuals and businesses with access to the Internet. ISPs serve as the bridge between users and the vast network of computers and servers that make up the Internet. By offering various types of Internet connections, such as broadband, DSL, cable, or fiber-optic. ISPs enable users to connect to the Internet and access online services, websites, and resources.

    ISPs not only provide internet connectivity but also offer additional services. Such as email accounts, web hosting, and virtual private networks (VPNs). These services enhance the internet experience by allowing users to send and receive emails, host websites, and establish. Secure connections to protect their online activities.

    The purpose of ISPs is to enable individuals and businesses to navigate the digital world. Communicate with others across the globe, access information, and utilize online services efficiently. They play a crucial role in connecting users to the Internet and facilitating their online interactions and experiences.

    Who are Tier 1 Internet Service Providers?

    Tier 1 Internet Service Providers (ISPs) are the highest level of ISPs in the Internet ecosystem. They have vast, global networks and infrastructure that allow them to connect directly to the Internet backbone. Which consists of high-capacity fiber-optic cables and routing equipment.

    Unlike lower-tier ISPs, Tier 1 ISPs do not need to pay for Internet transit services or rely on other ISPs to transmit data across the Internet. They have extensive peering arrangements with other Tier 1 ISPs. Which means they exchange traffic directly with one another without monetary compensation.

    This direct peering allows Tier 1 ISPs to provide faster and more efficient Internet connections for their customers. It reduces the number of network hops data has to take, resulting in lower latency and improved performance.

    Examples of Tier 1 ISPs include AT&T, Verizon, Level 3 Communications, GTT Communications, and NTT Communications. Their expansive networks span multiple continents and play a critical role in maintaining the global Internet infrastructure. Tier 1 ISPs are responsible for maintaining high-speed and reliable Internet connectivity worldwide. Ensuring that users can access websites, services, and content seamlessly across the globe.

    Example of an Internet Service Provider

    One example of an Internet Service Provider (ISP) is Comcast Xfinity. Comcast Xfinity is a leading ISP in the United States, providing millions of customers with high-speed internet access. They offer a variety of internet plans, including fiber-optic, cable, and broadband connections, to cater to different user needs. In addition to internet connectivity, Comcast Xfinity also offers services like email accounts. Wi-Fi hotspots, and optional add-ons such as TV and home phone services. With its reliable network infrastructure and extensive coverage, Comcast Xfinity ensures a seamless online experience for its customers.

    ISP is the same as a WiFi provider

    An internet service provider (ISP) is not the same as a WiFi provider. Although there can be overlap in their services.

    An ISP refers to a company or organization that provides users with access to the internet. ISPs offer various types of internet connections, such as broadband, DSL, cable, or fiber-optic. Allowing individuals and businesses to connect to the internet and access online services.

    On the other hand, a WiFi provider typically refers to a company or service that offers wireless internet connectivity within a specific location or area. WiFi providers set up WiFi networks and facilities that allow users to connect their devices. Such as smartphones, tablets, or laptops, to the internet wirelessly.

    While ISPs often offer WiFi connectivity as part of their services. WiFi providers focus specifically on wireless internet access within a limited range of premises. Such as homes, offices, cafes, or public spaces. WiFi providers may partner with ISPs to provide internet connectivity through their wireless networks.

    ISPs provide internet connectivity through various types of connections. While WiFi providers focus on delivering wireless internet access within specific locations.

    Pros and Cons of Internet Service Provider (ISP)

    Here are explain pros and cons of ISP;

    Pros of Internet Service Providers (ISPs):

    1. Internet Connectivity: ISPs provide individuals and businesses with reliable and high-speed internet connections, allowing them to access online services, websites, and resources.
    2. Email Accounts: ISPs often offer email accounts as part of their services. Enabling users to send and receive emails and communicate electronically.
    3. Web Hosting: Many ISPs provide web hosting services, allowing individuals and businesses to create and host their websites.
    4. Additional Services: ISPs may offer additional features like virtual private networks (VPNs), cloud storage, and security software to enhance the internet experience and protect users’ online activities.
    5. Technical Support: ISPs typically provide technical support to their customers, assisting them with any internet-related issues or concerns they may encounter.
    6. Choice of Connection Types: ISPs offer various types of internet connections, including broadband, DSL, cable, or fiber-optic, allowing users to choose the connection that best suits their needs and location.

    Cons of Internet Service Providers (ISPs):

    1. Service Outages: ISPs may experience occasional service outages or disruptions, which can temporarily interrupt internet connectivity and access.
    2. Data Caps and Bandwidth Limitations: Some ISPs impose data caps or bandwidth limitations. Which can restrict the amount of data users can consume within a specific timeframe.
    3. Speed Variations: Internet speeds may vary depending on the type of connection and the geographical location, with some areas having limited access to high-speed internet.
    4. Dependence on Infrastructure: ISPs rely on physical infrastructure, such as cables and network equipment. Which can be susceptible to damage, natural disasters, or technical issues, leading to potential service disruptions.
    5. Privacy Concerns: Users’ online activities and personal information may be subject to monitoring or data collection by ISPs, raising privacy concerns.
    6. Limited Competition: In some areas, there may be limited competition among ISPs, resulting in fewer choices for consumers and potentially higher prices.

    Despite these potential drawbacks, ISPs play a crucial role in connecting users to the Internet and enabling online communication, information access, and digital experiences.

    Bottom line

    An Internet Service Provider (ISP) is a company or organization that provides users with access to the Internet. They offer different types of connections like broadband, DSL, cable, or fiber-optic to connect individuals and businesses to the Internet. ISPs also provide additional services like email accounts, web hosting, and virtual private networks (VPNs) to enhance the internet experience. Tier 1 ISPs are the highest level of ISPs with global networks and direct connections to the Internet backbone. An example of an ISP is Comcast Xfinity. ISPs are not the same as WiFi providers, although there can be overlap in their services.

  • How to Valuable the concept of operation management

    How to Valuable the concept of operation management

    It’s here to understand the concept of operation management. It is involved with managing inputs thru transformation tactics to supply outputs eg: people, materials, and technology. Operations management worries about managing the sources that without delay produce the organization’s carrier or product. It is an essential phase of any organization. Operation management concept is very necessary for commercial enterprise operations because it varieties the coronary heart of the agency using controlling the machine of operation. Also, it offers the design, operation, and enhancement of structures that create and supply a firm’s principal merchandise and services.

    It’s Here are the articles to explain, the Definition, Importance, Objectives, Principles, and Concept of operation management!

    Operation Management is very important for managing large firms and running them successfully. Operation management is mainly related to the production of goods and services in an organization. The main purpose of operations management is to run business operations successfully, smoothly, and effectively by using the minimum resources and meeting customer expectations. Thus we can say that operations management is the process of converting minimum input like raw materials, and labor to produce maximum output like products, goods, and services. Operations Management is a very crucial factor to increase a company’s profit. Operations management is not only responsible for producing goods but also takes control of the distribution of services. Operation management is just not related to organizations it can see in our daily activities of life also.

    Definition of operation management

    According to Collins English Dictionary (1986), an operation define as “a process, method or series of acts, especially of practical nature”.

    According to Galloway (1993) “operations management is concerned primarily with manufacturing or the change of state of physical goods”.

    However, Galloway (1993) argues that “operations management is all about effective and efficient management of any operation irrespective of whether a physical good is involved or not”.

    According to Kumar & Suresh (2009)

    “Operation is that part of an organization, which is concerned with the transformation of a range of inputs into the required output (services) having the requisite quality level. Management is the process, which combines and transforms various resources used in the operations subsystem of the organization into value-added services in a controlled manner as per the policies of the organization. The set of interrelated management activities, which are involved in manufacturing certain products, is called production management. If the same concept is extended to services management, then the corresponding set of management activities is called operations management”.

    In modern days, the concept of operations management sees in a completely different way. It seems as a set of activities that carefully plan, organize, lead, and control the organization’s operation. This shows the importance of operations management, the effective handling of the operations can prove very effective and profitable on the other hand failing to handle it properly could spell disaster for the company.

    Significance and Importance of operations management:

    The common belief amongst the people was to believe that operations management was important only in the manufacturing industry. The belief stood supported by the fact that the manufacturing industry had to take care of more number of processes and operations starting from obtaining the raw materials till the goods are sold and also in many cases after sales assistance was also considered hence creating the belief that the concept of operation management is important to the manufacturing industry.

    In the case of the service industry, they have various amounts of processes involved starting from understanding the customer needs to getting feedback on the service hence at some point the service industry tells the manufacturing industry what they want and hence manages operations within the service industry is as important as managing the operations within the manufacturing industry. Whenever a company is offering a product or a service then that company has to make sure that the customers’ needs and demands are met at all times. This is a very important process and hence the marketing team plays a vital role in understanding what customers want and how to fulfill it.

    The marketing team collects details from the customers and uses them as input for the design of products and services. So any operations management involves similar management tasks irrespective of what industry or business one operates. It involves Planning, Staffing, Controlling, Directing, Motivating, and Organising. Irrespective of business, operations management ranges across the organization as part of strategic and tactical operations.

    To understand the importance of operations management IKEA takes as an example.

    IKEA is a Swedish company that sells ready-to-assemble furniture, appliances, and home accessories. With a net income of 3.202 Euros in the year 2012, IKEA is one of the biggest businesses in the world. IKEA gets the products and furniture designed in Sweden however the manufacturing exists mostly in developing countries to keep the costs down. IKEA has suppliers from almost 50 countries. The biggest of the entire supplier for IKEA in China.

    The case of IKEA is perfect to explain why the concept of operation management is important to all types of business, at the production or manufacturing section the company aims to reduce wastages, increase productivity, and time and resources management to make sure that the production cost is low and at the stores, the company aims to make sure that the warehouse is utilized properly, customers have explained the details and finally, the product is delivered without issues so that the shifting cost is low. Also, the stores have to take care of marketing and sales which involves their process. So this indicates that there will always be a set of operations irrespective of what field a business is in and at the end of the day successful businesses are those which manage their operations effectively and efficiently.

    Purposes and Objectives of Operations Management:

    Operations management has two primary objectives that need to achieve in many ways. It can say that both these objectives interrelate. The objectives are customer service and resource utilization. Customer service is the main objective of any company because at the end of the day irrespective of all the concept, strategy, marketing, and operation management. If the customer is not happy with the product or the service then the purpose of the entire enterprise falls.

    So the operations management makes sure that all the customers’ needs and demands are met and to do that the company also has to make sure that it makes use of the resources effectively. If the resources do not use carefully then there are chances that the production cost increasing. Hence the overall profit margin will reduce and the enterprise objective has failed. So both objectives must meet in a complementary way so that the company benefits from them.

    The objectives of IKEA are to make sure that the quality manages at all times and yet make sure that the operations exist effectively to save resources so that the company can benefit from it.

    All operations managers manage processes:

    The business dictionary defines a process as a “Sequence of interdependent and linked procedures which, at every stage consume one or more resources to convert inputs into outputs”.

    According to Kumar & Suresh (2009)

    “Strategic planning is the process of thinking through the current mission of the organization and the current environmental conditions facing it, then setting forth a guide for tomorrow’s decisions and results. Strategic planning is built on fundamental concepts: that current decision is based on future conditions and results”.

    So from this, one can understand that the strategic decision of the company is all consider. As the process and strategic decisions are all made by the managers. It can say that all operations managers manage processes.

    Principles of Operations Management:

    The ten principles of managing by the process are:

    Designate a process champion:

    The manager is the best person because he has knowledge about all the processes and will be capable of handling those processes effectively.

    Know the process:

    Not just the manager but every employee within the operations must know the details regarding the processes.

    Understand the linkages:

    Every process will interconnect and hence it is important to understand the linkages between the processes.

    Work on the trade-offs:

    If the process is standing created from a cross-functional background it is useful to discuss functional versus process trade-offs. This will allow you to make clearer decisions about what is the best balance.

    Teach others about the process:

    Teach others who may need to supply inputs or receive outputs about the process. Moving to management by the business process is a learning opportunity for your organization. Process owners and teams should expect to have responsibility for spreading their learning. Some organizations would see this as part of the general communications process. Which facilitates understanding and allows issues to raise and answer from any part of the organization.

    Train within the process:

    Cross-functional customer-facing processes require new roles, tasks, skills, and expertise, often organized around teams. There are several things to consider. Training and development of new skills for individuals and of the team will bring with it a change in the culture of your organization.

    Measure the process:

    Measure for control, improvement, and benchmarking, using a range of financial and non-financial measures. Measurement is important for managing the interfaces between sub-processes and also between processes at the same level.

    Manage careers:

    Careers need management in the new process-oriented, possibly flatter organization. Align expectations and aspirations with a different kind of progression emphasizing cross-skill training and the importance of gaining wider business experience both within the process and in other processes.

    Build specialist expertise:

    In the context of the new organization, take account of any weakening in this role where the traditional functions in the organization make weaker. The process teams will probably need a mix of specialist skills as well as more general skills.

    Improve the process:

    This must be done continuously. The world will not stand still; nor should any members of the team.

    The operations manager can make use of the value chain analysis to analyze the process that goes on within the company. It can say that all the operations that exist within the value chain can consider processes. The value chain is one of the most important tools to understand how all the processes are related to each other and how variations in any process will lead to a change in the overall profit margin.

    In the value chain, we can see that there are primary activities, support activities and supply chain management, and firm infrastructure. Within each of these activities lie the very essential processes. These processes manage by people and the efficiency of these processes decides the overall outcome. So all the processes are standing taken care of by the operations managers. Hence it is evident that all operations managers manage processes.

    All operations managers have a similar set of responsibilities:

    Operations managers perform operations and look after the processes based on the input from the overall objectives and strategic vision of the organization. No process or operation will be done without having complete knowledge regarding its importance of it. There are two sets of responsibilities that every operation manager must look into.

    First, the operations manager has to make sure that the processes and the operations that. He is taking care of performing to commendable levels. Secondly, at the end of these processes and activities, it should create a path for the following processes and activities. If any one of the two fails to be performed. Then it can say that the operations manager has not fulfilled his responsibility and that could be fatal.

    Every operations manager needs to make hundreds of decisions every minute. Hence they would devise a general rule to follow in the changing circumstances. These would further lead to the development of the operations strategy. Which would fall in line and derive the basics from the overall strategy of the organization.

    Other things

    Every operations manager will have the same set of beliefs at the end of the day. The concept of operation management, all draws inputs from the corporate strategy to perform their activities and processes. To decide how every process and activity needs to perform, planning should make as to how the resources distribute and manage. By doing so the process because easier and any chances of errors are nullified. If it considers that the operation manager at IKEA suddenly quits the job. In such a scenario a new person who comes to take up that role does not have to decide how the processes handle and manage.

    The manager can simply look into the aims and strategic objectives of the company and how the processes have developed. Their strategy is from them and based on that. They can pick it up from where the other manager had left it. This indicates that not just the inter-processes are similar every process can follow a similar guideline. Which is easy to establish because of the common usage by all the processes.

    Conclusion:

    The belief that the people had was that strategic planning by the top management was the only important role, and the role of the operations managers was neglected. As the business environment became more and more challenging, companies started to understand the importance of operations managers. Operations managers play a vital role in managing different processes, taking the challenges, making decisions, and guiding the other process to perform similarly.

    An operation manager needs to take decisions at a fast rate and hence devise a strategy. As how these decisions take help the performance of the operations managers and in turn. It helps the processes to decide at a faster rate and that would lead to efficiency of process and efficiency in the management of the resources. Resource management is always an important criterion and in many cases, the efficiency at which the resources manage will lead to the success of the company. All these activities are very important irrespective of what business one operates or within what industry that business operates. The operation management concept is an important aspect of successful business and will continue to be so in the future as well.

    Reference;

    Retrieved from: https://www.ukessays.com/essays/business/importance-of-operations-management.php?vref=1
    Image Source from Photo by Annie Spratt on Unsplash

    How to Valuable the concept of operation management Image
    How to Valuable the concept of operation management?
  • ERP Enterprise Resource Planning System Example PPT

    ERP Enterprise Resource Planning System Example PPT

    ERP Enterprise Resource Planning System Decision with their PPT and Implementation Example; Over the years commercial enterprise packages have evolved from Management Information Systems without a choice assist to Corporate Information Systems; which give some choice assist to Enterprise Resource Planning. ERP stands for “Enterprise Resource Planning” and refers to a kind of software program or machine utilized by a business to plan; and manage each day’s sports which include supply chain, manufacturing, offerings, financials, and different procedures. Enterprise Resource Planning software program may use to automate and simplify individual activities throughout a commercial enterprise or agency; which include accounting and procurement, undertaking management, customer courting management, hazard control, compliance, and supply chain operations.

    Here is the article to explain, Definition, ERP Enterprise Resource Planning System Implementation Example PPT!

    Individual ERP packages can provide software as a provider (SaaS); even as a whole suite of ERP packages forms an ERP system that may use to effectively communicate; and convey together commercial enterprise techniques to enable drift of records among the programs; usually thru common databases either on-site/on-premise or within the cloud. ERPs join every component of a corporation. An ERP software program system allows for better performance and challenge management that facilitates plan, finances, expect, and appropriately record on an organization’s economic fitness and methods.

    Introduction to ERP Enterprise Resource Planning;

    In any enterprise, one of the demands managers face is to be value-effective. In addition to that, they additionally confront challenges together with analyzing expenses; and also earnings on a product or purchaser foundation, being flexible to stand ever-altering business requirements; and informing of control selection-making strategies and modifications in ways of doing commercial enterprise. However, some of the challenges protecting managers returned include the issue in achieving accurate information; loss of programs that mimic present business practices, and awful interfaces. When some challengers are preserving a supervisor again, this is in which Enterprise Resource Planning (ERP) comes into play.

    Enterprise Resource Planning is a software program answer that tackles the needs of an employer; contemplating the method view to satisfy a company’s desires whilst incorporating all the capabilities of an organization. Its purpose is to make clean the facts flow between all business capabilities inside the limitations of the company; and, manage the employer’s connections with its outside stakeholders. In a nutshell, the Enterprise Resource Planning software attempts to integrate all of the special departments; and, functions of an organization right into a single pc gadget to serve the various desires of those departments.

    The venture handy, of enforcing one software application that appears after the desires of the Finance Department collectively with the needs of the Human Resource Department and the Warehouse, seems not possible. These specific departments normally have an individual software program program that optimizes the way each department works. However, if installed correctly this included approach can be very fee-effective for an organization. With an included answer, exceptional departments can easily share facts and speak with one another.

    ERP System Implementation with Cost and Time;

    Implementing ERP System; Producing Enterprise Resource Planning (ERP) software is complex and also has many significant implications for staff work practice. Implementing the software is a difficult task too and one that “in-house” IT specialists cannot handle. Hence to implement ERP software, organizations hire third-party consulting companies or an ERP vendor.

    This is the most cost-effective way. The time taken to implement an ERP system depends on the size of the business, the number of departments involved; the degree of customization involved, the magnitude of the change, and the cooperation of customers to the project. The following cost and time ERP implementation below are;

    Cost Implementation:

    Even though the price of prewritten software is cheap compared with in-house development; the total cost of implementation could be three to five times the purchase price of the software. The implementation costs would increase as the degree of customization increases. After training the selected employees, strategies such as bonus programs, company perks, salary increases, continual training and education, and appeals to company loyalty work to retain them. Other intangible strategies such as flexible work hours, telecommuting options; and opportunities to work with leading-edge technologies are also being used.

    Time Implementation:

    ERP systems come in a modular fashion and do not have to implement entirely at once. ERP packages are very general and need to configure to a specific type of business; and, may follow a phase-in approach with one module implemented at a time. Some of the most commonly installed modules are sales and distribution (SD), materials management (MM), production and planning (PP), and finance and controlling (FI) modules.

    The length of implementation affects by the number of modules being implemented, the scope of the implementation; Also, the extent of customization, and the number of interfaces with other applications. The more the number of units, the longer the implementation time. Further, as the scope of implementation grows from a single business unit to multiple units spread out globally, the duration of implementation increases.

    Benefits or Advantages or Pros of ERP System;

    The following Benefits, Advantages, Pros of the ERP Enterprise Resource Planning System below are;

    • With Enterprise Resource Planning (ERP) software program, accurate forecasting may finish. When accurate forecasting stock levels save at maximum efficiency, this lets in for the employer to be worthwhile.
    • Integration of the numerous departments ensures communication, productiveness, and efficiency.
    • Adopting ERP software eradicates the trouble of coordinating modifications among many systems.
    • ERP software program gives a pinnacle-down view of an enterprise; so data is available to make decisions at any time, anywhere.
    • Integrating the company’s activities by processing a huge majority of an organization’s transactions and coping with the information desires of corporations.
    • Facilitation of intra-employer verbal exchange and collaboration.
    • ERP does the integrating job, permitting the enterprise to spend less time figuring out what’s going on and more time for improving.
    • Options exist to buy the handiest of the modules wished currently and collect any extra modules wished within the destiny. ERP’s use a corporation-wide database that permits get right of entry to to the facts in real-time.
    • Both small and huge corporations can advantage each technically and strategically from investments incorporation structures as they enable organizational standardization, remove data asymmetries, and offer online and actual-time facts.

    Drawbacks or Disadvantages or Cons of ERP System;

    The following Drawbacks, Disadvantages, Cons of the ERP Enterprise Resource Planning System underneath are;

    • Adopting ERP structures may be pricey.
    • The lack of boundaries created with the aid of ERP software programs in an organization can purpose troubles of who takes the blame, strains of duty, and employee morale.
    • ERP’s can hurt the paintings practices and way of life of an enterprise.
    • It takes a median of eight months after the brand new machine set up to see any benefits.
    • Lack of function-feature in shape among the company’s needs and the programs to had.
    • They want for a ready consulting group of workers to significantly personalize the ERP to increase the popularity of a brand new gadget.
    • There is a need for sizable technical help earlier than its actual use.

    ERP Enterprise Resource Planning System for Various Business Size;

    ERP implementation is vital for all organizations, regardless of their size. You can also get industry- and agency-specific functionality to satisfy particular business needs. Regardless of your enterprise zone and size, you’ll need to plot your ERP implementation assignment carefully, following first-rate practices.

    ERP for Small Business;

    ERP software programs for small businesses can help enterprise proprietors; flow past the antique faculty spreadsheets and archaic fashion of retaining their books of accounts updated. This automatic gadget will assist them in successfully manipulating each aspect in their growing business enterprise – from income and patron relationships to financials and operations.

    Mid-Market ERP;

    Midsize companies purpose at speedy boom and extended marketplace sustenance. ERP systems these days, that goal at supporting midsize corporations grow at an increasing tempo; include capabilities that cater to all the crucial commercial enterprise processes – financials, HR, deliver chain control, and greater. Midsize ERP tools help growing groups scale and compete without the complexity and value.

    Enterprise ERP;

    Large companies with global or subsidiary operations want a sturdy, market-leading ERP gadget with embedded AI; device gaining knowledge of, and analytics – and shrewd automation to convert techniques. ERP systems can deploy on-premise, in the cloud, or a hybrid situation depending on enterprise necessities. These organizations can integrate their existing software technologies with the ERP systems to get the favored output.

    Functions, Purpose of ERP Enterprise Resource Planning Systems;

    ERP systems software-driven business management system which integrates all facets of the business, including manufacturing, planning, sales and distribution, financials, and human resources. It is a system that integrates all information that runs through an organization and can categorize as a large information system. Also, It can customize to cater to the needs of an organization. During the 1990s ERP systems became the de-facto standard for the replacement of legacy systems in large and particularly multinational companies.

    ERP systems become more widely implemented, software applications developed to help business managers implement ERP in diverse business activities such as project planning and management, subcontracting, material tracking, service, finance, and human resources.

    More understand;

    However, enterprise systems expanded to include “back office” functions (such as operations, logistics, finance, and human resources) and “non-transaction-based systems” or “front-office” functions (such as sales, marketing, and customer service), as integral components of ERP systems. This expansion result from the emergence of Supply Chain Optimization (SCO), or Supply Chain Management (SCM) and CRM strategies and systems, as illustrated.

    “While the names and numbers of modules in an ERP system provided by various software vendors may differ, a typical system integrates all these functions by allowing its modules to share and transfer information freely and centralizing all information in a single database accessible by all modules”.

    Due to the importance of these systems in terms of added functionality over legacy systems and potential integration benefits, a large number of organizations are adopting these systems to manage their operations. Also, They adopt these systems due to various technical or business reasons. Technical reasons include Y2K issues (myth), replacing legacy systems that did not work, etc. Organizations that have successfully implemented ERP systems view them as one of the most important innovations that have led to the realization of substantial tangible and intangible improvements in a variety of areas.

    Reasons for ERP system;

    Five other reasons for acquiring an ERP system are:

    • 1) to integrate financial information,
    • 2) to integrate customer order information,
    • 3) to standardize and speed up manufacturing processes,
    • 4) to reduce inventory level, and
    • 5) to standardize Human Resource information.

    According to Kremzar and Wallace, operating the business in a rapidly changing; and highly competitive environment is the primary purpose of implementing an ERP system. Various studies have been done focusing on the adoption and implementation of software applications.

    However, the enterprise-wide implications, high resource commitment, high potential business benefits, and risks associated with ERP systems make; their implementation a much more complex exercise in innovation and change management than any other software package. Radding argued that when an organization puts millions of dollars into a core business application; and reengineers its business processes around it, the system is destined to become much more than an application.

    ERP Enterprise Resource Planning System Implementation Example PPT Image
    ERP Enterprise Resource Planning System Implementation Example PPT!

  • Inventory Management: Meaning, Objectives, Benefits, Scope

    Inventory Management: Meaning, Objectives, Benefits, Scope

    Inventory management, in straightforward terms, is the way toward following the supply of different items. This may incorporate completed items made by your organization or even the crude material; which might be needed for the creation of completed products. Inventory management is an incredibly basic capacity for the smooth satisfaction of orders got by the organization. In this post, we will comprehend the objectives of inventory management from top to bottom.

    Here is the article explain Inventory Management: Meaning, Definition, Motive, Purpose, Objectives, Importance, Benefits, Limitations, and Scope.

    Inventory is perhaps the most significant part of any plan of action. A nearby tab on the development of inventory can represent the deciding moment of your business; and, that is the reason business visionaries consistently underline powerful inventory management. While a couple of entrepreneurs do comprehend the importance and essentialness of the following inventory routinely; some neglect to understand its importance in making their business fall through the concealed breaks.

    Meaning and Definition of Inventory Management:

    Inventory management is a cycle of following the items. This incorporates all the inventory management until it arrived at the last buyer; it incorporates completed items fabricated by the organization and the crude material which might be needed for the creation of completed merchandise. At the point when we come to discuss the Importance of Inventory Management in the present situation; it to a great extent applies to fabricate, discount, and retail firms.

    It is very vital to comprehend the essentials of inventory control and management to fulfill the requirements and needs of the intended interest group. They additionally cause the firm to sort out the item execution and plan out the following creation cycle appropriately. Additionally, it likewise encourages resolving the issues, for example, over-loading, understocking of the merchandise and cheats, and other such errors.

    Motive or Purpose or Objectives of Inventory Management:

    The following are a portion of the significant objectives of inventory management.

    Smooth satisfaction of orders:

    This is quite possibly the main objectives of inventory management. A circumstance where you have a request for your completed items close by however you can’t satisfy the request because of the lack of inventory isn’t ideal. It does not simply put the satisfaction of the request in danger yet it addition hurts the standing of your organization because of deferral in submitted satisfaction timetables. To ensure such a circumstance doesn’t happen, inventory should be appropriately kept up consistently, and an inventory management framework helps in doing likewise.

    Allow us to comprehend this better with the assistance of a model. Assume you are a book distributor. You have a request in the hand of providing 100 books to a retailer in the city. At the point when the salesman takes the request from the retailer, he doesn’t think about the inventory accessible. He simply takes the request and passes it to the stockroom for satisfaction. At the distribution center, you understand that there are just 50 titles accessible against a request for 100.

    This will affect no this single request yet additionally your future business relationship with that retailer. Such issues can be settled by utilizing an inventory management framework where there are numerous clients with various jobs appointed to every one of them-chipping away at a similar framework.

    Reduce misfortunes because of burglary, wastage, and so forth:

    This is another significant goal of inventory management. In many associations, the measure of inventory that is being overseen is tremendous right from secured crude material to the completed products. All this inventory requires to be overseen extra cautiously so that there is an insignificant misfortune because of robbery, wastage, and so on

    On the off chance that the inventory isn’t dealt with appropriately, occurrences of robbery and other undesired occasions won’t go to anybody’s notification. Allow us to take a model. You maintain an eCommerce business of selling portable adornments having an inventory of 1000+ one kind SKU’s. Additionally, at some random point, as expected, there are many items dispatched from your distribution center to the clients using the messenger.

    Simultaneously, numerous bundles are returning to your distribution center as returns, undelivered shipments; and, so on There must be an appropriate inventory management framework following every one of them. In its nonappearance, regardless of whether any distribution center staff part doesn’t check an internal passage in the framework for a shipment got back from the client and simply takes it; it very well might be a misfortune to the organization because of burglary.

    Know when to scale or psychologist the creation of merchandise:

    On the off chance that you are a maker of items; you would be now realizing that there times when you simply need to scale the creation to satisfy the market need and diminish the creation particularly when the pinnacle season closes. Inventory management can help you know precisely when to scale up or down your creation as you get an exact image of the number of items that are right now lying in your inventory anytime. To represent this better, let us think about a model. You have a private venture fabricating umbrellas.

    You can’t simply continue creating umbrellas going all out the entire year since the interest for umbrellas is just during specific months of the year. Having an inventory global positioning framework set up reveals to you precisely the number of made umbrellas are accessible with you anytime on an ongoing premise. This encourages you to settle on a decision on scaling up the creation or psychologist it towards the finish of the period.

    Keep interested in inventory at least potential levels:

    Organizations, particularly private ventures need satisfactory turning out capital for their everyday working. No business can stand to continue delivering products without having purchasers for them and keep the stirring capital tied up in the stocks. Inventory management encourages you to address this problem area and keep your interest in inventory at the least conceivable level.

    For this, you can utilize inventory management programming to follow the inventory levels at some random point as expected. You can choose and save an edge for each item, similar to say ten units. At the point when the inventory check falls underneath this amount; really at that time do you take up the creation movement for that item? This causes you to keep your interests in inventory at least potential levels without harming your top line.

    Clear off the sluggish merchandise:

    Much of the time, not all the merchandise delivered by you would be taking off the rack. There would be much merchandise that is sluggish on the lookout; however, you as of now have heaps of these in your inventory. Any sort of business can’t simply keep their working capital obstructed in such kind of merchandise. Tidying up such sluggish products is another target of inventory management. Allow us to consider that you are a maker of pieces of clothing. You got a fabricated around 100 distinct styles like a piece of your mid-year assortment.

    As the season closes, you understand that around 10 of these styles have neglected to get a reaction on the lookout and are not moving off the racks. Since you would prefer not to keep your interest in these things; you accept a call to write down the costs by half to sell them on a benefit no misfortune premise. Taking a particularly educated choice is conceivable just when you have an appropriate inventory management framework set up which dissects deals examples and discloses to you which are your sluggish products.

    Analyze item deals designs:

    This can be one of the auxiliary objectives of inventory management. Dissecting item deal designs is significant with the goal that you can make future deals presumptions; and, see which are the quick and the sluggish merchandise.

    Inventory management encourages you all together in this since you precisely know the progression of items all through your distribution center. You can even fare information according to your necessities for any given time span. Truth be told, most present-day inventory management as of now has the usefulness of breaking down item Deadealsigns. You should simply just choose the item class or individual items alongside the time span and create reports at a tick on the catch.

    Importance and Benefits of Inventory Management:

    The importance of inventory management can’t be focused on enough particularly for eCommerce and online retail marks. Exact inventory following permits brands to satisfy orders conveniently and precisely. Inventory management in organizations should develop as the organization grows. With an essential arrangement set up that improves the way toward regulating and overseeing inventory, including constant information of inventory conditions and levels; organizations can accomplish inventory management benefits that include:

    Exact Order Fulfillment:

    With a successful inventory management framework, you can without much of a stretch track the stock in the stockroom. Say farewell to overloading, loading out of date things, understocking, and begin zeroing in on causing your image to get one of the central members in the market space. Build up a powerful arrangement with the assistance of productive bookkeeping programming and dodge erroneously took care of requests, exceptional yield volumes, and a deficiency of client base.

    Better Inventory Planning and Ordering:

    Finding some kind of harmony between the interest and supply is amazingly critical for organizations, in this manner, inventory management gives help in better arranging and requesting stock things. Envision having a tremendous interest in a specific item yet not having enough material to supply the equivalent. Sounds like your most noticeably terrible bad dream, isn’t that so? Itemized inventory management mitigates these issues, permitting stockroom administrators to invigorate inventory just when required. It’s both space and financially savvy.

    Expanded Customer Satisfaction:

    Since a methodical and powerful inventory global positioning framework will give you a thorough perspective on your stock close by; it yields expanded consumer loyalty. In the retail area, clients disdain late conveyances or “unavailable” warnings and ultimately stay away for the indefinite future to the site to satisfy their shopping needs. In any case, great inventory management prompts orders to be satisfied all the more rapidly and dispatched out to clients quicker. The improved cycles can help eCommerce and online retail marks fabricate a solid collection with purchasers – and keep them returning for additional.

    Coordinated Warehouse:

    A decent inventory management methodology prompts a coordinated satisfaction community. A coordinated distribution center outcomes in the more effectively present and future satisfaction plans. This likewise incorporates cost-reserve funds and improved item satisfaction for organizations using the stockroom for overseeing inventory.

    Limit the Blockage of Financial Resources:

    The importance of inventory control is to limit the blockage of monetary assets. It diminishes the pointless tying up of capital in abundance inventories and improves the liquidity position of the firm. With a legitimate inventory following module, entrepreneurs can settle on snappy choices about the stock lying in the stockroom all the more shrewdly.

    Limitations or Scope of Inventory Management:

    The following limitations or scope of Inventory management below are;

    • Oversee Inventory: Inventory management assists with dealing with the supply of the organization; it gives appropriate subtleties of the items what sort of crude material; what are the sizes we require, and so on to the buying division.
    • Less Storage: When the inventory management gives appropriate data to management; they purchase as per them which encourages the organization to store fewer items.
    • Improve Productivity: Inventory management assists with improving the efficiency of the machines and labor. Workers know about stocks and the amount need to create.
    • Increment Profits: Inventory management assists with improving the benefits of the organization; it assists with giving appropriate data about stocks; which saves the superfluous costs on stocks.
    Inventory Management Meaning Definition Motive Purpose Objectives Importance Benefits Limitations Scope Image
    Inventory Management: Meaning, Definition, Motive, Purpose, Objectives, Importance, Benefits, Limitations, and Scope; Image from Pixabay.
  • Purpose and Limitations of Stock Market Index

    Purpose and Limitations of Stock Market Index

    What does the Stock Market Index mean? Stock Index futures offer the investor a medium for expressing an opinion on the general course of the market. The general movement of the stock market is usually measured by averages or indices consisting of groups of securities that are supposed to represent the entire stock market or its particular segments. Thus, Security Market Indices or Security Market Indicators provide a summary measure of the behavior of security prices and the stock market. So, what is the topic we are going to discuss: Purpose and Limitations of Stock Market Index!

    Explained Stock Market Index Concept with their Purpose and Limitations!

    The principal stock market indices used in India are the Bombay Stock Exchange Sensitive Index (BSE Sensex) and the S&P CNX Nifty known as the NSE Nifty (National Stock Exchange Fifty). In addition, these contracts can be used by portfolio managers in a variety of ways to alter the risk-return distribution of their stock portfolios. For instance, much of a sudden upward surge in the market could be missed by the institutional investor due to the time it takes to get money into the stock market.

    Stock Index Futures:

    By purchasing stock- index contracts, the institutional investors can enter the market immediately and then gradually unwind the long futures position as they are able to get more funds invested the stock. Conversely, after a run-up in the value of the stock portfolio (assuming it is well diversified and correlates well with one of the major indexes) a portfolio manager might desire to lock in the profits much after being required to report this quarterly return on the portfolio.

    By selling an appropriate number of stock index futures contracts, the institutional investors could offset any losses on the stock portfolio with corresponding gains on future position. As a speculation tool, stock index futures represent an inexpensive and highly liquid short-run alternative to speculating on the stock market.

    Instead of purchasing the stock that makes up an index or proxy portfolio, a bullish (bearish) speculation can take a long (short) position in an index futures contract, then purchase treasury securities to satisfy the major requirements. A long or short speculative futures position is referred to as a purely speculative position or a naked (outright) position.

    The Purpose of an Index in the Stock Market:

    The security market indices are indicators of different things and are useful for different purposes.

    The following are the important uses of a stock market index:

    • Security market indices are the basic tools to help and analyze the movements of prices of various stocks listed on stock exchanges and are useful indicators of a country’s economic health.
    • Indices can be calculated industry-wise to know their tread pattern and also for comparative purposes across the industries and with the market indices.
    • The growth in the secondary market can be measured through the movement of indices.
    • The stock market index can be used to compare a given share price behavior with past movements.
    • Generally, stock market indices are designed to serve as indicators of broad movements in the securities market and as sensitive barometers of the changes in trading patterns in the stock market.
    • The investors can make their investment decisions accordingly by estimating the realized rate of return on the stock market index between two dates.
    • Funds can be allocated more rationally between stocks with knowledge of the relationship of prices of individual stocks with the movements in the market.
    • The return on the stock market index, which is known as the market return, is helpful in evaluating the portfolio risk-return analysis. According to modern portfolio theory’s capital asset pricing model, the return on a stock depends on whether the stock’s price follows prices in the market as a whole; the more closely the stock follows the market, the greater will be its expected return.

    Purpose and Limitations of Stock Market Index
    Purpose and Limitations of Stock Market Index, Image credit from #Pixabay.

    Limitations of Stock Market Index (Indices):

    Though stock market indices are the basic tools to help and analyze the movements of the price of the stock markets and are a useful indicator of a country’s economic health, they have their own limitations also.

    The following points deal with those limitations:

    • Whenever a company issues rights in the form of convertible debentures (to be converted at a later stage) or other instruments (warrants) entitling the holder to acquire one equity share of the company at a specified price at a notified future date, the equity capital increases only on conversion of debentures or the exercise of warrants/Secured Premium Notes (SPNs), option for equity shares but the market adjusts the ex-rights price of the share immediately (on the day the share starts trading ex-rights) on the basis of the anticipated increase in equity capital and likely reduced earnings per share, etc.
    • Hence, some modification is needed to adjust the equity capital suitably in advance. But the exact procedure by which this can be done is very difficult to state since the internal market mechanism which adjusts the ex-rights share price is almost impossible to know precisely.
    • Again, this is a common limitation of all the indices and so far, the increased equity capital is considered only after the debentures are converted into shares and are acquired for warrants/SPNs and the new shares are listed for trading on the stock exchange.
    • The coverage (in terms of number of scrips, number of stock exchanges used and the respective weights assigned) is different for all the indices and hence, each index may give only a partial picture of the movement of prices or the state of the market presented may be misleading.
    • The financial institutions sometimes convert the loans extended by them to companies into equity shares at a specified date. This causes sudden and significant changes in the market capitalization and hence the weights assigned to those scrips change violently.
    • The various stock market indicators around the world have been in use for many years and it has satisfied the needs of millions of investors and stockbrokers. But the stock markets, by their very nature, are very dynamic and hence, the indices should be revised or adjusted periodically to reflect the changed conditions so that they continue to be relevant.
    • Whenever prices of scripts listed on more than one stock exchange are used, most liquid prices (on anyone stock exchange) should be used (rather than the present practice of using the arithmetic average of prices on all the exchanges, as the same script may not enjoy the identical degree of liquidity on all exchanges).

    The limitations indicated may not be eliminated totally, but appropriate adjustments are certainly called for. The classification of industries into various groups for calculation of various industry indices is presently rather vague and presents problems in the case of diversified companies. Also learned, What does Welfare Economics mean? Measuring and Value decisions!

    This should be made uniform or the classification should be made in such a way that it reflects the major operations carried on by each company. Overall, one can say that the various stock market indicators devised have more or less served their purpose, despite their limitations but these can be made more effective and dynamic by introducing appropriate modifications 0£ the existing ones to serve the investing public better.

  • What do you think of Monopoly? Understand the Monopoly on the Characteristics, Purpose, and Strength.

    What is a Monopoly? The word Monopoly is made of two words; MONO + POLY. Here “Mono” means one and “Poly” implies the seller, thereby the literal meaning of the word Monopoly is one seller or one producer. Thus, pure monopoly refers to that form of market organization wherein there is a single firm (or producer) producing a commodity for which there are no good or close substitutes. The monopolist is not bothered by the reaction of rival firms since it has no rival. So the demand curve faced by the monopoly firm is the same as the industry demand curve. So, what is the topic of the question we are going to discuss; What do you think of Monopoly? Understand the Monopoly on the Characteristics, Purpose, and Strength. Read in Hindi.

    Here are explained about Monopoly: Understand the Monopoly on the Characteristics, Purpose, and Strength.

    The market, form of monopoly is the opposite extreme from that perfect competition. It exists whenever an industry is in the hands of the single producer. In the case of perfect competition, there are so many individual producers that no one of them has any power over the market and an; one firm can increase or diminish its production without affecting the market price. A monopoly, on the other hand, has the power to influence the market price. By reducing its output, it can force the price up, and by increasing its output it can force the price down.

    According to Watson, “A monopolist is the only producer of a product that has no close substitutes.” Changes in prices and outputs of other goods sold in the economy must leave the monopolist unaffected. Conversely, changes in the monopolist’s price and output must leave the other producers of the economy unaffected.

    In the words of Salvatore, “Monopoly is the form of market organization in which there is a single firm selling a commodity for which there are no close substitutes.” The cross elasticity of demand with every other product is very low. This means that no other firms produce a similar product. Thus, the monopoly firm is itself an industry and the monopolist faces the industry demand curve. The demand curve for his product is, therefore, relatively stable and slopes downward to the right, given the tastes and incomes of his customers.

    The Characteristics of Monopoly:

    We may state the features or characteristics of monopoly as:

    One Seller and a Large Number of Buyers:

    The monopolist’s firm is the only firm; it is an industry. But the number of buyers is assumed to be large.

    The difficulty of Entry of New Firms and Industry:

    Firms – There are either natural or artificial restrictions on the entry of firms into the industry, even when the firm is making abnormal profits. Industry – Under monopoly, there is only one firm which constitutes the industry. Difference between firm and industry comes to an end. Since in monopoly there is a single firm producing the commodity, hence the difference between firm and industry vanishes automatically.

    Barriers to the Entry:

    The entry into the industry is completely barred or made impossible. If new firms are admitted into the industry, monopoly itself breaks down. This ban on entry may be legal, natural or institutional but it must essentially be there.

    Price Maker:

    Under monopoly, the monopolist has full control over the supply of the commodity. But due to a large number of buyers, the demand of any one buyer constitutes an infinitely small part of the total demand. Therefore, buyers have to pay the price fixed by the monopolist.

    Price-Discrimination is Possible:

    Under the conditions of monopoly, price-discrimination is possible. It implies that a monopolist can sell its product at different prices to different customers.

    In short, monopoly depends basically on two factors:

    • Absences of close substitutes, and.
    • Restriction on the competition.
    No Close Substitutes:

    For the monopoly to exist single producer is the necessary condition but not a sufficient one. It is also essential that there should be no close substitute of the commodity in the market. This second condition would be even more difficult to fulfill than the first since there are few things for which there is no substitute. For instance, Usha is produced by a single firm alone but there are close substitutes of Usha fans that are available in the market in the form of Railfans, Khaitan Ashoka, Crompton, etc. Hence, though the firm producing Usha fans is single yet it cannot be termed a monopoly firm.

    It is, therefore, essential for a monopoly to exist that there should be no close substitutes available in the market. This condition can be stated in other words as that the cross elasticity of demand for the output of the firm with respect to the price of every firm’s product is zero. There shall not be any close substitutes for the product sold by the monopolist. The cross elasticity of demand between the product of the monopolist and others must be negligible or zero.

    Positive And Negative Purpose Of Monopoly:

    Currently, in many countries around the world, the monopoly in the business still has debatement and it is applied in some fields. Therefore, there will be two exclusive aspects: positive and negative when applied in the business methods of a certain field. The main points lead to monopoly are Government concessions resources for a certain firm, the ownership of inventions, patents and intellectual property, ownership is a great resource.

    Positive Purpose:

    As a result, we can analyze the positive outlook base on Viet Nam Oil And Gas Group (Petrovietnam) – one of the most popular corporations in Viet Nam since 1985 till now. Petrovietnam has supposed as a powerful economic group in Vietnam, known in the region and the world. In this situation, the profits that Petrovietnam earns to provide funds that can be invested in equipment and development.

    Whereas perfect competition must be accepted with a normal return on invested capital, the monopolist has more funds to undertake the development further. Importantly, the ability to achieve a monopoly position or to maintain it and step ahead of potential competitors, Petrovietnam has to do innovation in products, techniques and cost savings. They also may not need to spend more money on advertising, marketing, promotions, etc.

    Negative Purpose:

    Due to maximize revenue, the monopolist would produce goods which marginal sales equal marginal revenue instead of producing output level which prices higher than marginal cost as in the market (supply equals demand). Besides, different from perfect competition which price depends on the quantity of producing of a firm. Price of Petrovietnam would increase while decreasing the quantity of produce. For this reason, profit margins will be higher than selling price.

    Besides, producing more oil products will make the enterprise gets more revenue and it also will be the higher selling price. Accordingly, sometimes Petrovietnam suddenly increases the price higher while the international market price was decreasing and the market did not change. Thus, people have to buy oil and gas at an expensive price because oil and gas are important in life. Although people complained, Petrovietnam still keeps the price high.

    In this case, we can see easily that they misused the power of monopolist sometimes. In short, the monopolist will produce lower and price of selling goods is higher than the competitive market. In addition, society has to bear loss by increased output minus the marginal total cost to produce the output which should be produced more. It is the toll by the monopolist. In addition, lack of incentive to innovate also impact the demand and supply.

    Measuring Monopoly Power (Strength):

    Different measures that have been suggested are as follows:

    By Concentration Ratio:

    Concentration ratio refers to the fraction of total market sales controlled by the largest group of sellers. The inclusion of the market shares of several firms in the concentration ratio rests upon the possibility that large firms will adopt a common price- output policy which may not be very different from the one they would adopt if they were under unified management. But here the difficulty arises that they may not do so. Therefore, a high concentration ratio may be necessary for the exercise of monopoly power but it is not sufficient.

    In an industry, usually there exist some smaller firms and some larger firms in the sense that smaller firms have relatively smaller shares in total industry sales (or profits or assets), and the larger firms have relatively larger shares. That is, sales (or profits or assets) may be more concentrated in a few firms of the industry, or such concentration may be less. Now, the size of the largest firms’ share in total industry sales, etc. is known as the concentration ratio.

    For example, if we consider sales as the criterion, then the n largest firms’ share in total industry sales is called an n-firm concentration ratio which is denoted by CRn. Usually, the four-firm and eight-firm concentration ratios denoted by CR4 and CR8, are used as a measure of monopoly power.

    The concentration ratio may act as a measure of monopoly power because, in a competi­tive industry, sales are more evenly distributed among firms—concentration of sales is more or less absent. On the other hand, in a monopolistic industry, sales tend to concentrate in a few large firms—in the limiting case, sales are concentrated in only one firm when we have the case of a pure monopoly.

    By Profit-Rate:

    J.S. Bain used profit-rate as a measure of monopoly power. By high profits, economists mean returns sufficiently in excess of all opportunity costs which potential new entrants desire for entering the industry. The size of super-normal profits which a firm is able to earn is an indication of its monopoly power. In perfect competition, a firm earns only normal profits. In a monopoly, new entrants will not normally compete away monopoly profits.

    But there will be some level of profits at which new firms will find it worth taking the risk of trying to break the monopoly. The stronger the monopolist’s position, the greater the profits he will be able to earn without attracting new rivals. In short, it is said that neither concentration ratio nor profit-rate is ideal measures of the degree of monopoly power, both are of some value nor both are widely used.

    By Lerner’s:

    It is the oldest measure and is based on the difference between the price charged by the monopolist and his marginal cost. Bober gives the formula 1/E. Thus, the degree of monopoly power varies inversely with the elasticity of demand for the commodity.

    However, the more commonly used formula is:

    Degree of monopoly power = (P-MC) / P

    Where P is the price charged by the monopolist and MC his marginal cost.

    In perfect competition,

    P = MC and the formula (P-MC)/P gives zero answers indicating no monopoly power. If the monopolized product is a free good, MC = 0 and the formula registers unity. The index of monopoly power thus varies from zero to unity. Since monopolized goods are seldom free, monopoly power is seldom as high as unity.

    This method is not free from defects as:

    • Firstly it does not measure non-price competition. Secondly, monopoly power is shown itself not only in high price but also in output restriction. The output may be restricted by under-utilization of capacity already in existence or by restricting new entry.
    • Lerner’s method throws no light on these aspects of monopoly power.
  • Meaning, Definition, and Importance of Career Development PDF

    Meaning, Definition, and Importance of Career Development PDF

    Importance of Career Development PDF with its Meaning, and Definition; The process of organizational career development is important for both employees and employers. There may many unexpected and unwanted changes, as well as results that can change the whole scenario. The concept of career development is a matter of growing concern for organizations; as, it corresponds to the needs of a business with the career goals of the employees. Preparing a career development plan can help employees make their jobs more efficient. In addition, these plans can be beneficial for employees; who want to move forward in a company or look for other jobs in the future. Do you study to learn: If Yes? Then read the lot. Let’s Study Meaning, Definition, and the Importance of Career Development PDF. This Also, read in the Hindi language: करियर विकास का अर्थ, परिभाषा, और महत्व।

    The concept of career development Discussing the topic – Meaning, Definition, Benefits, Importance, and Stages of Career Development PDF.

    Today, challenging organizations have developed new concerns regarding the development of their employee’s careers. He emphasized “Career” with consistent induction, training, and development with an accumulation of valuable experiences and qualifications in the labor market.

  • What is the Purpose and Importance of Recruitment?

    What is the Purpose and Importance of Recruitment?

    Importance of Recruitment; Recruitment means to estimate the available vacancies and to make suitable arrangements for their selection and appointment. The Concept of the study Explains – the Purpose and Importance of Recruitment: Need, Purpose, Importance, and Strategy. Recruitment is understanding as to the process of searching for and obtaining applicants for the jobs, from among whom the right people can select. Also learn, What is the Purpose and Importance of Recruitment?

    Understanding and Learn, What is the Purpose and Importance of Recruitment? with Need!

    Importance of a strong recruitment process: Successful recruitment is a direct reflection of the legitimacy and professionalism of your business. Employing the right people for your business is the most important part of your organization. It is necessary to have a good recruitment process to attract the right kind of staff for the needs of your business. Your recruitment process must be cost-effective as well as time-consuming. Recruitment and training can be expensive and time-consuming, so when you are recruiting, make sure that you are making the right choice.

    A good recruitment process can reduce the time involved in searching, interviewing, recruiting, and training. It can streamline these procedures and make your search more efficient for viable candidates. Also, Creating a positive image for your customers, peers, and competitors is very important. New employees must list the skills needed to fulfill their duties. To get better and successful results in your recruitment process, promote specific criteria relevant to the job.

    Always evaluate the skill of your candidate for the position of recruitment for knowledge, skill, and ability “KSA”, this is a great assessment tool for recruiting the right candidate for your business. There is no guarantee that your selection will be correct, but you can reduce your risks and maximize your ability to rent the right candidate. If you have a successful recruitment process then you can find a good, qualified, reliable staff for your company. Be sure to follow an organized recruitment path and you will find candidates who prove to be a great asset to your business.

    Need for Recruitment:

    Every Company in the world knows the importance of the recruitment step in increasing. Also, The performance of the company and increasing the productivity of the products. In this part of the project we will mention some important point about the importance of the recruitment step in any organization:

    • It helps the organization by finding the need for requirements by job analysis activities and personnel planning.
    • To collect many job candidates with less cost.
    • It helps to organize applications by dividing them by underqualified or overqualified, to increase the possibility of increasing and choosing the successful person to the right place.
    • Employing new and better-qualified staff often the only effective long-term strategy for improving operational performance.
    • Also, the Capabilities and commitment of employees ensure an organization’s success.
    • Raise organizational and individual value in the short term and long term.

    Purpose of Recruitment:

    • Determine current and future needs: To determine the present and future needs of the organization, with the combination of their plan and job analysis activities. Also, This is one of the most important objectives of recruitment.
    • Increase in the job pool: To increase the pool of job candidates at the minimum post cost.
    • Assistance in increasing success rate: To help increase the success rate of the selection process by reducing the visible number of under-qualified or exaggerated job applicants.
    • Help reduce the probability: To help reduce the likelihood of job applicants, once recruited and selected, only after a short period they can cure the organization.
    • Meet the organization’s social and legal obligation: it should fulfill the organization’s social and legal liability towards the combination of its employees
    • Start identifying job applicants: Identifying job applicants and preparing for potential job applicants will be suitable candidates.
    • Increase effectiveness: To increase organizational and personal effectiveness in the short-term and long-term.
    • Evaluate effectiveness: To evaluate the effectiveness of various recruitment techniques, all types of jobs are the source for the applicants. Also, This is the ultimate purpose of recruitment.

    The Purpose and Importance of Recruitment:

    Following a few points is explaining:

    • Determine the present and future requirements of the organization in conjunction with its personnel planning and job analysis activities.
    • Also, Increase the pool of job candidates at minimum cost.
    • Help increase the success rate of the selection process by reducing the number of visibly underqualified or overqualified job applicants.
    • Help reduce the probability that job applicants, once recruited and selected, will leave the organization only after a short period.
    • Meet the organization’s legal and social obligations regarding the composition of its workforce.
    • Begin identifying and preparing potential job applicants who will be appropriate candidates.
    • Also, Increase organizational and individual effectiveness in the short term and long term.
    • Evaluate the effectiveness of various recruiting techniques and sources for all types of job applicants.

    What is the purpose of the Recruitment Strategy?

    What is the issue of any strategy? A strategy defines big and important questions. Who, what, when, and why Who is doing when? And why are they doing this? Your recruitment strategy is hoped that the skilled use of company resources will be prepared to give your business the best talent to get a job. Also, Your strategy can generate productive benefits in your market!

    So, what’s the purpose? A recruitment strategy creates activation and clarity of purpose in the process of attracting and selecting talent for your business and aligns business goals with talent acquisition goals. Also, An employee strategy starts with understanding and understanding the value of your company to best understand and understand the behavior of those employees that you want to attract.

    A recruitment strategy clarifies the purpose or vision of the company for the future. A well-executed recruitment strategy will align employees with specific behaviors that are encouraged in the company.

    More to know…!

    A different purpose of deciding a recruitment strategy is how talent will be identified and business will be attracted, how the employer brand will be marketed for talent, and ultimately how it will be evaluated for employment for candidates. Attracting talent depends on your recruitment brand. How will you present your company and its brand authentically and describe it? Where do you propagate your company? Also, This is where good job descriptions, scorecards, job postings, recruitment techniques, and recruitment partners come into play.

    Today, no one can be the best in their entire strategy. Evaluating talent is also a big part of your recruitment strategy. Do you want your manager to talk with recruitment about how they get into the business and sell more about why your company is great? Or will you define the questions and role of your managers because you make the recruitment team? Always define team roles in evaluating talent. Also, Determine evaluation procedures and standards in continuous ways to attract and evaluate talent!

    What is the Purpose and Importance of Recruitment - ilearnlot
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