What is a Newly Industrialized Country (NIC)? The term newly industrialized country (NIC) refers to a subcategory of countries that are still developing but show greater economic growth compared to other developing countries. The NIC countries are continuously evolving and growing through industrialization and urbanization. Brief History and Background of NICs The NIC concept became…
What is Authorized Stock? Authorized stock or authorized shares refer to the maximum number of shares a corporation is legally permitted to issue according to its corporate bylaws. The product of the number of authorized shares and the face value per share is referred to as the authorized share capital. Authorized shares are different from…
What is the Australian Securities Exchange (ASX)? The Australian Securities Exchange (ASX) is one of the world’s leading financial market exchanges based in Sydney, Australia. As a fully functioning securities exchange, the ASX provides a number of services, such as listings, trading, clearing, settlements, technical and information services, and post-trade services. The Australian Securities Exchange…
What is Outsourcing? Outsourcing is a strategic decision by a company to reduce costs and increase efficiency by hiring another individual or company to perform tasks, provide services, or handle operations that were previously done by employees within the company. In other words, outsourcing is the practice of getting certain job functions done outside a…
What is a Staggered Board of Directors? A staggered board of directors, also known as a classified board, refers to a board that consists of different classes of directors. In a staggered board of directors, only one class is open to elections each term. It is different from a normal board of directors, where all…
What is Buy and Build? The buy and build strategy is when a company expands its operations by acquiring a platform company with developed expertise that it can then build out. When a business requires growth and expansion, there are several possibilities to consider. The company can develop its internal capabilities that will drive the…
What is Scalability? Scalability can fall into both financial and business strategy contexts. In both cases, it stands for the ability of an entity to withstand pressure as a result of growth, without being hindered by its resources or structure. Scalability continues to gain popularity, especially following the advancements in technology that ease communication to…
What is Product Diversification? Product diversification is a strategy employed by a company to increase profitability and achieve higher sales volume from new products. Diversification can occur at the business level or at the corporate level. Business-level product diversification – Expanding into a new segment of an industry that the company is already operating in….
What is Succession Planning? Succession planning refers to the process in which employees are recruited and developed with the aim of filling a key role within an organization. It increases the availability of experienced and competent employees who are prepared to replace old leaders as they leave, retire, or die. The preparation for the employee…
What is Shareholder Value? Shareholder value is the financial worth owners of a business receive for owning shares in the company. An increase in shareholder value is created when a company earns a return on invested capital (ROIC) that is greater than its weighted average cost of capital (WACC). Put more simply, value is created…
