Organizational Structure: Vertical and Horizontal Dimensions
Vertical Dimension of Organizations
The vertical dimension of an organization refers to the hierarchical structure and reporting relationships within the company. Key aspects include:
- Control Unit: This refers to the reporting structure where each employee reports to a single, direct supervisor. Modern organizations typically adhere to this principle.
- Authority and Responsibility: Defines the type and extent of authority and responsibility assigned to members of the organization.
- Control Range: The
Understanding Financial Statements: Analysis and Key Reports
Financial Statement Analysis and Interpretation
1. Analysis
Analysis involves applying specific techniques based on relationships and comparisons to logically determine objectives within financial statements. These statements form the basis of the analysis.
Various relationships and comparisons are determined using basic arithmetic operations. These operations are applied to items within the financial statements, which may or may not belong to the same group of accounts or the same period. For example:
Read MoreBalanced Scorecard Examples: Airline & Jewelry Store
Balanced Scorecard of a Regional Airline
| PERSPECTIVE | OBJECTIVES | PERFORMANCE MEASURES | TARGET | INITIATIVES |
Financial | Increase Profitability Lower Costs | Plane Cost Seat Revenue | 25% per year | Standardize Planes Optimize Router |
Customer | Lower Prices On-time Flights Increase Customer Base | Number of Customers Customer Ranking | 98% Satisfaction First in Industry | Customer Loyalty Program |
Internal Processes | Improve Departure Time | On-time Departure | ≤ 25 minutes | Cycle-time Optimization Program |
Growth and Learning | Align Ground Crews | % of |
Economic Consequences of War: Trade, Debt, and Stability
Trade Imbalance and Foreign Debt in Warring Countries
The process of trade imbalance in countries at war, which leads to the problem of foreign debt, can be described as follows:
The production and consumption of large amounts of resources, ultimately destroyed at the front, lead to deficits in the trade balance. According to the rules of the gold standard, the external deficit should have been settled by transferring gold to creditors.
Restoration of the Economy: Key Factors
The most relevant factor
Read MoreCompetitive Strategies and Business Tactics
Chapter 5: Generic Competitive Strategies
Types of Generic Strategies
- Broad Low-Cost Strategy: Aiming to achieve lower overall costs than rivals by underpricing or maintaining similar prices with higher margins.
- Broad Differentiation Strategy: Offering unique product attributes that appeal to a wide range of customers.
- Focused Low-Cost Strategy: Targeting a narrow segment and offering lower prices than competitors.
- Focused Differentiation Strategy: Offering niche products tailored to specific buyer needs
Understanding Technological Incompatibility, Investments, and Standards
Understanding Key Concepts: Incompatibility, Investments, and Standards
Technological Incompatibility
Technological incompatibility is defined as the presence of features in two systems (computers, technology, etc.) that prevent them from working together properly.
Project Implementation Costs
Management of project implementation includes:
- Wages and salaries of management personnel.
- Rental and maintenance of offices, housing, and so on.
- Travel and communications.
- Payment of duties and taxes during the period