Why are Kickbacks a Bad Thing? In essence, a kickback is a bribe. It's a way of paying money to get somebody to keep doing business with you. From a basic standpoint, you shouldn't have to do that. If you have the best product, you shouldn't have to pay people to buy it. So, that's a problem with kickbacks, Around that same idea, kickbacks are not o...

What are the Contemporary Management Theories? Contemporary or Modern Management Theories are theories proposed that expand outside of the early classical, administrative, human relations, and behavioral theories.  Who Proposed the First Modern Management Theories?  The concept of modern management theory began with the work of Peter Drucker. He pro...

What is the Power School of Strategy?  This school, as the name implies, focuses on the effect or power and politics on strategy. That is, the school interprets how power and politics are used to negotiate strategies in pursuit of specific interests - a process of influence.  Because individuals work in groups at varying levels of the organization, ...

What is an Asset Acquisition Strategy? An asset acquisition strategy seeks to achieve growth or expansion through the purchase of other companies or their assets. This is an inorganic growth strategy.  Related Topics Organizational Strategies Growth-Based (Expansion) Strategies Inorganic Growth Organic Growth Diversification Concentration Integratio...

What is a Banker's Blanket Bond? Banker's blanket bond (BBB) refers to a fidelity bond bought from an insurance broker which safeguards a bank from losses from a wide range of criminal acts executed by employees. Certain states request the condition of a blanket bond coverage before a bank can operate. Back to:BANKING, LENDING, & CREDIT INDUSTRY...

What are the types of Consumer Decisions? Consumer decisions can be categorized into three primary types:  Routinized Response - This is the kind of decision where you don't really have to think much about it.  Limited Problem Solving - This type of purchase decision involves a little more thinking or a little more consideration.  Extensive Problem ...

What is an Associate In Commercial Underwriting? The Associate in Commercial Underwriting refers to a professional designation that the Insurance Institute of America awards to individuals that successfully complete four national exams. Two of the four exams are designated for the AU program, while the other two are for Chartered Property Casualty U...

What is a Variance Analysis? Variance analysis is used in budgeting and management accounting. It is a study of the variation (difference) between an actual (forecasted) action and a planned action. Variance analysis carries out a quantitative investigation to find out the difference between the actual cost and the standard cost of production. This ...

How Does Culture Affect Marketing?  There a numerous culture-related factors that can affect a business and its marketing strategy. Some of the major factors include: Language - This is particularly impactful on promotion (advertising and labeling) and sales. Language affects how people communicate (deliver and interpret messages).  Individual Value...

What is Exclusive Distribution?  Exclusive distribution  is a level of product availability that limits the choice of outlets that customers can use to find our product or buy our product.  One of the reasons we do this is to preserve our product or brand image. So this has a trade-off built in. First, it requires consumers to make an effort to buy ...