What is Paralysis by Analysis? Paralysis by Analysis is a phrase describing a situation where no decision is or can be made due to devoting disproportionate effort to the analysis phase of a decision. Managers then become unable to create value and manage.  Typical reasons for this situation to occur include: Complexity of the decision Excessive or ...

What is a Profit-Oriented Pricing Strategy?  A profit-oriented pricing strategy means that we're going to set our product price based on a particular profit goal. That could be a target return - meaning we want to make a certain percentage on each unit that we sell or it could be that we want to maximize profit.  As you probably know raising price w...

What Affects Supply? Supply is made up of what producers bring into the market for consumers to purchase. As such, numerous factor can affect the supply or amount of production.  The factors of production known to shift the supply curve include: Production costs Natural conditions for production Technology Taxes and Regulations Related Topics Budget...

What is   Force Field Analysis? Force Field Analysis, created by Kurt Lewin, states that any issue is held in balance by the interaction of two opposing sets of forces.  Driving forces - Those seeking to promote change Restraining forces - Those attempting to maintain the status quo. Lewin viewed organizations as systems in which the present situati...

What is the FiMO RcCOIL Model?  Organizational Growth Effectiveness = Current Performance x Future Potential Performance Current performance includes results in the fields of Finance, Marketing and Operations, known also as the acronym FiMO. Future potential performance include results in (RECoIL): Resources: Availability of financial resources and ...

What is Servant Leadership? Servant leadership focuses on the role of the leaders as serving the needs of others through employee development and goal attainment. To summarize, the leader puts the needs and wants of the subordinates first by helping them to develop professionally. This effort may come at the expense of the servant leaders own wellbe...

What is a Subordinated Debt? A subordinated debt or subordinated loan is a loan or security which is prioritized lower than other loans or securities on the occasions of bankruptcy or liquidation. That means, if the borrower defaults or is insolvent, the subordinated debt holders will be paid after senior debt holders are repaid fully. This is also ...

What is Survivorship Bias? Survivorship bias is a type of selection and cognitive bias that occurs when survival is used as a metric for making vital decisions. That is, it is an error that occurs when people or things that survived certain processes and stages are given attention and those that did not are ignored. Survivorship bias can lead to wro...

What are Cognitive  Biases? The bias means that the brain is filtering the excess information since it is not able to process all the stimuli reaching it.  Cognitive Biases Affect Decisions and Conclusions There are three ways of making decisions and drawing conclusions: Doing so with total certainty when one has all the relevant information. Doing ...

What is a Principal-Protected Note? A principal-protected note (PPN) is a type of security where the bondholder is guaranteed to receive the amount of capital originally invested at the minimum if the security is held to maturity. The performance of the underlying assets in a PPN does not deter the payment of the principal amount. Principal protecte...