What is a Special Purpose Acquisition Company (SPAC)? A special purpose acquisition company (SPAC) is a corporation formed for the sole purpose of raising investment capital through an initial public offering (IPO). Such a business structure allows investors to contribute money towards a fund, which is then used to acquire one or more unspecified businesses…
What is Forward Integration? Forward integration is a form of vertical integration in which a company moves further in the direction of controlling the distribution of its products or services. Essentially, a company undertakes forward integration by acquiring or merging with business entities that were its customers, while still maintaining control over its initial business….
What is the 30-60-90 Day Plan? The 30-60-90 day plan lays out the actions that an individual intends to take during their first three months on the job. Setting clear objectives and a vision for their skills in each phase of the plan, they make their transition to the new role smooth and easy. Putting…
What Does Cornering the Market Mean? Cornering the market is obtaining and holding/owning enough stocks, assets, or commodities to effectively control the market price of said items. It involves acquiring the biggest market share without becoming a monopoly. How It Works There are a number of ways to attempt market cornering. The most straightforward approach…
What is Product Differentiation? Product differentiation is the introduction of unique, distinctive characteristics or features to a product to ensure a USP (unique selling proposition) of the product. The differentiation enables a company to achieve a competitive advantage over other companies offering similar product substitutes. It is an essential marketing process that is of vital…
What is Empire Building? In general, empire building is the process that an individual or entity undertakes to broaden the scope of its influence and power. In the business world, empire building entails the comprehensive steps and actions that either an individual or company takes to expand their power and reach. It is done primarily…
What is Objectives and Key Results (OKR)? In today’s rapidly changing business environment, it is important for companies to have an effective approach in place to ensure their success. Objectives and Key Results (OKR) is one such approach that has gained acceptance in recent years due to its ability to drive managerial focus on achieving…
What is Novation? Novation refers to the process of substituting the original contract with a replacement contract, where the original party agrees to forgo any rights afforded to them by the original contract. In most novation agreements, the parties agree to extinguish the original contract and replace it with an entirely new contract. One of…
What is Numeraire? Numeraire is an economic term that refers to a unit of exchange that people adopt as a benchmark when comparing similar instruments or goods. The term “numeraire” is a French word that translates to “face value” or “money.” A numeraire is applied to a single instrument or product, which is then used…
