Cash and Accrual Basis of Accounting

Cash basis of Accounting In cash basis of accounting the prevailing concept is that transactions will be entertained on the actual receipt or payment of cash. More broadly income will not be booked until it is actually received in the form of cash and expenditures...

Revenue Recognition

When does revenue should be recognized in the books of accounts? The answer to this question is covered in IAS 18 Revenue Recognition under the generally accepted accounting principles (GAAP). It elaborates the precise conditions under which incomes can be recognized...

Strategic Gap Analysis

Strategic gap refers to the situation where actual performance levels are significantly different than the desired performance levels. The analysis of such situation for the gray areas to be recognized and to suggest what needs to be done to achieve the desired...

RBV – Resource Based View

Companies endeavor to achieve competitive advantage. One of the techniques to achieve competitive advantage is through Resource Based View of the firm. RBV enables a company to identify the strategic resources or competencies and to determine their potential towards...

What is Cost Accounting

Cost accounting is a subject dealing with the appraisal of overall costs in producing and selling the goods or rendering services by an organization. Normally it is based on standard practices and is used by the managers as a system of assessing what expenses and how...

Wal-Mart (WMT) Mission Statement

The Mission Statement and Purpose of Wal-Mart (WMT) Wal-Mart’s advertised mission statement and its advertising slogan are the same: "We save people money so they can live better." In addition to this mission statement, the company looks to its...

Strategic Fit

Firms operate in an environment where external opportunities always prevail as a striking option and considerably be lucrative for firms to adopt such strategies coping with the requirements to reap the fruits from the prospects around. Moreover, each company has its...

Porter Supply Chain Model

Firms create value trough series of activities. These activities are described as a value chain which includes specific activities for adding value to the products and services the firms’ offer. Michael Porter presents a value chain framework as a model that assists...

GE / Mckinsey Matrix

Business portfolio management is a promising field of strategic management in view of the today’s competitive environment. Due to the risks associated with a single business because of today’s uncertain economic gestures in the global world the firms prefer to...

Strategic Position and Action Evaluation (SPACE) Matrix

Strategic Position and Action Evaluation (SPACE) Matrix has been materialized as a dominant instrument in formulating alternative strategies. Like Grand Strategy Matrix this matrix is also based on four important elements called four quadrants of SPACE Matrix. First...