Economics is about making efficient use of scare resources. The study of economics includes three important concepts: scarcity, choice, and opportunity cost. The main economic problem of the individual, business units and society is that there is scarcity of resources because of which decisions related to allocation need to be made. Economics: Basics Allocation of […]
Uncategorized
Transportation in Supply Chain: Concepts & Theories
Transportation refers to the movement of product from one location to another. Products manufactured by companies are rarely produced and consumed in the same location. Hence transportation plays an important factor. Key Learnings: Align transportation strategy with competitive strategy Consider both in-house and outsourced transportation Use technology to improve transportation performance Design flexibility into transportation […]
The Bullwhip Effect: Meaning and Example
The bullwhip effect is a concept of inventory fluctuations or inefficient asset allocation as a result of demand changes as you move further up the supply chain. As such, upstream manufacturers often experience a decrease in forecast accuracy as the buffer increases between the customer and the manufacturer. Benefits of minimizing the bullwhip effect Every […]
Managerial Economics: Theories & Concepts
Managerial Economics (or Business Economics) involves the application of economic theory and decision science tools to solve managerial decision problems, and to examine how an organization can achieve its aims or objectives most efficiently. Managerial Economics is about applying economic theory and the tools of decision making to examine how a firm can efficiently achieve […]
Barbie Marketing Case Study: Key Campaign Secrets Decoded
Barbie 1 movie achieved remarkable success at the box office, surpassing initial predictions and breaking records for the year for its global earnings. The Barbie 1 movie launch had significant successes but also had potential shortcomings and challenges. Successes of the Campaign The success of the film’s marketing campaign can be attributed to a combination […]
Inventory Management: Methods, Techniques, Theories
Learn about key strategies and best practices for effective inventory management to optimize stock levels, reduce costs, and improve business efficiency. In this article, we will understand the purpose of inventory, characterize the inventory policies in EOQ model, discuss other issues in inventory management, and discuss supply chain strategies in practice. Inventory Management: Basics What […]
Management Practices at McDonald’s: Case study
McDonald is a very well-known brand and is considered as the master of fast-food service. One of the main reasons for the success of McDonald’s is its careful design of the fast-service system. You can expect the same quality of product and service (for most of its products) at all McDonald’s locations across the world […]
Airbnb: Case Study
Strategies adopted by Airbnb to succeed such as use of technology to become big (without investing in real estate), competing with 5-star hotels. INTRODUCTION What is Airbnb? Airbnb operates an online marketplace and hospitality service for people who wish to lease or rent their property for short-term lodging. People use the platform to list holiday […]
Dunning’s Eclectic Paradigm (OLI Framework) Explained
The electric paradigm (OLI) remains the most dominant theory to explain the activities of Multinational Enterprises (MNEs). Developed by Dunning, the OLI model explains that the choice of market selection depends on three economic advantages known as ownership, location and internalization advantages. Eclectic Paradigm (OLI) The eclectic paradigm or the OLI framework (OLI stands for […]
Stakeholder Theory Explained
The stakeholder theory, put forward by Edward Freeman, links to corporate social responsibility but the main difference is that it starts from the world’s perspective rather than starting from a business perspective. It takes into account benefits of stakeholders as well as economical responsibility of the business towards its shareholders. Stakeholder Theory A primary goal […]
International Trade: Concepts & Theories
International (Global) Trade concepts and theories. Understand free trade, protectionism, role of bodies like WTO in promoting free trade, regional economic integration and trade agreements. Understand the various theories of trade that explain why countries trade, understand the factors affecting countries’ trade patterns, and understand how global efficiency is increased through free trade. International Trade […]
Toilet paper shortage: Lessons in supply chain
Toilet paper shortage was a strange side-effect of the Covid19 pandemic. As lockdown was enforced in the US, people resorted to panic buying of toilet paper rolls resulting in several shortage on toilet rolls in leading retail stores. Here are lessons in supply chain learnt from the shortage. The Product – Toilet Paper While people […]
Logistics Management: Core concepts
Logistics management, a component of supply chain management, is the process of efficiently transporting goods from the starting point to the destination. It involves steps such as acquisition, storage and transportation of inventory. Here we will try to understand the Logistic concept, identify main activities and elements within logistics, recognise various modes of transport in […]