Kaivalyam

Corporate Social Responsibility (CSR) -- it is the hottest topic out there. Should we trust that companies live up their values or there are any underlying motives? But, let's first start by exploring the definition of Corporate Social Responsibility (CSR). It is defined as the commitment of business to contribute to sustainable economic development, working with employees, their families, the local community and society at large to improve their quality of life ( World Business Council on Sustainable Development, 2000 ). So, CSR is based on the belief that companies make positive contributions to society. Some examples of CSR activities that organizations participate to be socially responsible are as follows: Philanthropic CSR- Companies donate to the needy via charities. Their donations include clean water programs, helping those affected by natural disaster etc. Environmental CSR- It is very important to limit pollution. Companies participate in CSR by lim...

Economies of scale and economies of scope are two different ideas both of which help the company to cut costs of production. Economies of scale focuses on costs that can be saved when there is an increased level of production of one good while economies of scope emphases on total average cost benefits when there is a production of variety of goods. Economies of Scale Costs can be saved because they are spread over large number of goods. Variable costs or the costs per unit. For example, to produce tap water, water companies should build huge network of pipes that stretch across wide areas. The costs associated are very high. However, since that will be shared by all the households in that area, the average costs come down. A large business will have more cost savings with higher production levels. Economies of Scope Economies of scope concept is utilized by a company when uses its current resources to diversify into related markets. For example, a farmer may se...

Unique Selling Proposition (USP) is defined as t he factor or consideration presented by a seller as the reason that one product or service is different from and better than that of the competition. The crucial factor to effective selling is USP.USP is framed using the 4P’s (Price, Product. Place & Promotions) also known as marketing mix. A strong USP helps a company to stand out from its competitors. Customers can have a variety of options and it will be difficult for companies as well as customers if they don’t know what separates product/service from another. Therefore, companies develop USP in order to create differentiation and be remembered in a packed marketplace. Companies use different approaches like brand image or understanding the targeted segment group buying motivations etc. Forming a USP is not easy and requires lot of creativity and understanding the market. It is also important to defend and preserve USP as competitors will do what they can to neutralize i...

“Traditional SWOT analysis” … SWOT analysis is a powerful tool that is used by companies to build business strategies. It stands for Strengths, Weaknesses, Opportunities and Threats. SWOT analysis is usually done in an organized way using a 2*2 grid like pattern. By observing where they are, companies can develop strategies that help them to stand out from the rest. Strengths Strengths are positive attributes of a company. These are internal factors and can be controlled. The following questions help to identify strengths: What do you do better than others? What do customers/competitors see in you as your strengths? What physical assets or human capital do you see as strengths? What is the advantage that you have that competitors don’t? etc Weaknesses Weaknesses are negative attributes and can weaken strengths of the company. These are internal factors and can be modified for betterment. The following questions help to identify weakness: What issues c...