What is Sensitivity Analysis? Sensitivity analysis, also referred to as simulation analysis, is a technique employed in financial modeling to determine how different values of a set of independent variables can influence a particular dependent variable under certain specific conditions and assumptions. It is used to ascertain how the overall uncerta...

What is the Systems Approach to Management? The Systems Approach to management theory, commonly viewed as the foundation of organizational development, views the organization as an open system made up of interrelated and inter-dependent parts that interact as sub-systems. Thus the organization comprises a unified singular system made up of these sub...

What is a Chief Investment Officer? A chief investment officer refers to a high-level executive who is charged with the responsibility of managing a company's investment portfolios. The CIO major investment roles are to develop and oversee investment plans (both short-term and long-term). They also allocate assets, make investment recommendations, a...

What is the American Accounting Association? The American Accounting Association refers to an organization that gives support to worldwide excellence in accounting research, education, and practice. In the United States, AAA is the primary professional association for accounting academics. The organization was formed in 1916, originally known as the...

What is a Buyout? A buyout, synonymous to acquisition, refers to acquiring a controlling interest in an organization. This usually occurs when the firm decides to go private. When the companys management buys a stake, it is called a management buyout. In case, the company uses large amounts of debt for funding its buyout, it is referred to as a leve...

What is a Disintermediation Strategy? In simple words, disintermediation means removal of the intermediaries or middlemen from a supply chain (sales) or transaction (finance). These intermediaries include brokers, agents, wholesaler, distributor, banks and other finance houses.  Disintermediation in Distribution Channels  In a disintermediated syste...

What is Perceived Value? Perceived value refers to the perspective or opinion of a customer towards a product or service which is often influenced by how the goods and services met the needs and expectations of the customer.  Where Does Customer Perceived Value Come From?  Driven out of a customers perception of a product. The quality and desirabili...

What is Management Strategy? Strategic management is the process employed by a company (through its managers) to achieve its identified goals and objectives.  More specifically, strategic management simply refers to the regulation, planning, monitoring and controlling of an organizations resources to achieve its goals.  A company's managers are char...

What is Placement in the Marketing Mix? Where and through what methods are the products or service sold? The various aspects of product placement include: Location Distribution Channels Directness of Channel Number of Channel Members Criteria for Channel Members Number of Channels per Market Locations Local, National, International, Internet-based, ...

What are the Types of Business Strategy?  There are generally 3 (sometimes broken into 4) Types of Business Strategies: Organizational (Corporate) Strategy Business (Competitive) Strategy Functional Strategy Operating Strategy What is a Corporate Strategy? A corporate-level strategy, often referred to an an organizational-level strategy, focuses on ...