Major Differences Between Delegation and Decentralization!

1. Responsibility:

In delegation, a superior delegates or transfers some rights and duties to a subordinate but his responsibility in respect of that work does not end.

On the other hand, decentralization relieves him from responsibility and the subordinate becomes liable for that work.

2. Process:

Delegation is process while decentralization is the end result of a deliberate policy of making delegation of authority to the lowest levels in managerial hierarchy.

3. Need.

Delegation is almost essential for the management to get things done in the organisation i.e., delegating requisite authority for performance of work assigned. Decentralization may or may not be practiced as a systematic policy in the organisation.

4. Control:

In delegation the final control over the activities of organisation lies with the top executive while in decentralization the power of control is exercised by the unit head to which the authority has been delegated.

5. Authority:

Delegation represents selecting dispersal of authority whereas decentralization signifies the creation of autonomous and self-sufficient units or divisions.

6. Scope:

Delegation hardly poses any problem of co- ordination to the delegator of authority. While decentralization poses a great problem in this regard since extreme freedom of action is given to the people by creating self-sufficient or autonomous units.

7. Good Results:

Decentralization is effective only in big organisations whereas delegation is required and gives good results in all types of organisations irrespective of their size.

8. Nature:

Delegation is the result of human limitation to the span of management. Decentralization is the other hand, is the result of the big size and multi-farious functions of the enterprise.

Fundamaentals of pricing

Pricing is a very powerful weapon in marketing, but there are many different ways to use it to help achieve marketing objectives. It is important to make a distinction between pricing strategies and pricing tactics.

Pricing Strategies
These are adopted over the medium to long term to achieve marketing objectives They have a significant impact on marketing strategy.

Pricing Tactics
These are adopted in the short run to suit particular situations.

Tactics have only limited impact beyond short-term sales of the product itself.  It may also be that the pricing strategies a business can implement are constrained by the competitive position of the business. 

It is often said that there are four categories of position a business can find itself in which influence the control it has over pricing:

Price takers - A business has no option but to charge the ruling market price

Price makers - The business has a strong enough competitive position to be able to fix its own price – either higher or lower than the competition

Price leaders - Market leaders whose market share is so strong that its price changes are closely followed (and often copied) by rivals

Price followers - A business that just follows the price-changing lead of the market leader (ignoring the rest of the competition)

Difference between Accounting and Finance

Key difference: Accounting is the process of creating and managing financial statements which record the day to day transactions of the business. Finance has a broader scope and is responsible for initiating transactions to aid in cash, investment and other working capital management.

Accounting and finance are both forms of managing the money of the business, but they are used for two very different purposes. One of the ways to distinguish between the two is to realize that accounting is part of finance, and that finance has a much broader scope than accounting.

Accounting is the practice of preparing accounting records, including measuring, preparation, analyzing, and the interpretation of financial statements. These records are used to develop and provide data measuring the performance of the firm, assessing its financial position, and paying taxes. Finance, on the other hand, is the efficient and productive management of assets and liabilities based on existing information.

Finance is the study of money and capital markets which deals with many of the topics covered in macro economics. It is the management and control of assets and investments, which focuses on the decisions of individual, financial and other institutions as they choose securities for their investments portfolios. Also, managerial finance involves the actual management of the firm, as well as profiling and managing project risks.

Another way to look at it is that, accounting analyzes the past expenses and performance of the business. This information is then used by the finance department to make decisions about the future

	Accounting	Finance
Definition	Preparation of accounting records	Efficient and productive management of assets and liabilities based on existing information
Purpose	Measuring, preparation, analyzing, and interpretation of financial statements. To collect and present financial information.	Decision making regarding working capital issues such as level of inventory, cash holding, credit levels, financial strategy, managing and controlling cash flow.
Goal	To see how the company is performing, to monitor day to day accounting operations, and for taxing.	To forecast the future performance of the business.
Tools	Balance sheets, profit and loss ledgers, positional declarations, and cash flow statements.	Performance reports, ratio analysis, risk analysis, estimating break evens, returns on investment, etc.
Determination of funds	Revenue is acknowledged at the point of sale and not when it was collected. Expenses are acknowledged when they are incurred than when they are paid.	Revenues are acknowledged during the actual receipt in cash as in cash flow and the expenses are acknowledged when the actual payment is made as in cash outflow.

 

How to Brand Yourself: An Introduction

               Entrepreneurs have always been focused on building the brand names of their companies, and for good reason. How else would people know they exist, what they offer and even where they're located. Some entrepreneurs invest in expensive PR companies, hoping for publicity in mainstream news outlets. Others, such as bootstrapper entrepreneurs, use guerilla marketing tactics to generate interest with almost no budget. We're living in a world where consumers and journalists alike are looking to connect directly with entrepreneurs and hear their stories. It's not just about what your company does, but why you started it, its purpose and your vision. Social technologies, such as blogs, Facebook and Twitter, have enabled entrepreneurs to become known, connect directly with their audience and build relationships on a global scale. As an entrepreneur, you need to become the brand.
1. Become an expert on something that relates to your business.
Entrepreneurs looking to garner media attention, attract new clients and build their businesses should focus on becoming an expert in their field. For instance, Alexa von Tobel, CEO of Learnvest.com, has branded herself as a personal finance expert for young people. As a result, Fox Business, The New York Times, and other media outlets have interviewed Alexa, which provides exposure for her company. Avoid establishing an expertise that's irrelevant to your corporate mission, goals, and vision because you'll be wasting your time. If you own a record label, it's probably not wise to brand yourself as a nutrition expert.
2. Establish a website or blog under your full name.
The media and your customers both use search engines to research you, connect with you and potentially either do business with you or interview you. That's why you need to purchase your full name as a domain name (yourfullname.com). By developing either a static website or a blog under your domain name, you will own the first result for your name in Google and other search engines. This should be a separate site than your company's website. After purchasing your domain name, add your picture, a bio, your e-mail address and links to the rest of your online presence (i.e. Facebook, LinkedIn, Twitter). This way, people can get in touch with you in their medium of choice. Claim your name before someone else does.
3. Learn how to be a good source.
Find out which media sources your audience reads, listens to or watches, research the types of content they provide and locate the exact gatekeeper to pitch. You or your publicist can also e-mail journalists and editors in response to one of their articles, with a note that you are available to comment on future articles. If and when a journalist e-mails or calls you for an interview, respond with haste because they are typically on deadline for their stories. Answer their questions thoroughly, while making sure that you get your message across.
When you're interviewed by the media, you will always be able to promote your company through your byline, which will help build both yours and your company's brand. Once the interview is complete, send a follow-up e-mail asking if they have any more questions, and make sure you include your bio and your picture.
4. Generate brand awareness through networking.
You should be connecting with other entrepreneurs in your industry using social networks, such as Sprouter.com, and commenting on their blogs. Networking is one of the best ways to become known in your industry. By forming relationships with people in your audience you can grow your business and your brand long-term.
The four rules of networking that you should keep in mind are mutualism, giving, targeting and reconnecting.

• Mutualism: You have to create win-win relationships in business, making sure that you don't benefit more than the other party.
• Giving: Help someone out, before asking for anything in return. This makes people want to support you.
• Targeting: You want to be very specific with the types of people you network with, in order to save time and to attract the right people to your brand.
• Reconnecting: Never lose touch, that way networking contacts remember you when new opportunities surface.

These days, branding your company isn't enough. The world wants to hear what you have to say, If you aren't building your own brand, your company will suffer. If you want your company to succeed, become an expert in your field, claim a website under your own domain name, connect with the media, and build relationships with your audience.