Economic Value Added

Concept Briefing:

Economic value added or EVA is the value of an activity that is left over after subtracting from it the cost of executing that activity and the cost of having lost the opportunity of investing consumed resources in an alternative activity. In business terms, one could calculate EVA as Income from Operations minus potential income from investing the amount of capital employed including equity in sovereign debt, if sovereign debt can be considered an alternative opportunity to invest capital.

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Continue reading Comments (0) 25.06.2010. 20:37

Cause-Related Marketing

Sometime refered simply as "cause marketing", cause-related marketing or CRM may be defined as a joint activities of a for-profit business with a non-profit charity or cause, intended for mutual benefit. For the business, it is a type of marketing to promote the company's image, product or service. For the non-profit organization, it helps promote the cause and is a method to raise fund. CRM is generally considered to be different from corporate philanthropy because the corporate dollars involved in CRM are not outright donations to a non-profit organization, hence not tax-deductible.

Cause marketing can take on many forms, including:

Product, service, or transaction specific

Promotion of a common message

Product licensing, endorsements, and certifications

Local partnerships

Employee service programs

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Kaizen

Concept Briefing:

Kaizen is a Japanese word for "improvement". It is a daily activity aiming to eliminate waste. Kaizen is also a process that, when done correctly, humanizes the workplace, eliminates overly hard work (both mental and physical), and teaches people how to perform experiments using the scientific method and how to learn to spot and eliminate waste in business processes.

Kaizen must operate with three principles in place: process and results (not results-only); systemic thinking (i.e. big picture, not solely the narrow view); and non-judgmental, non-blaming (because blaming is wasteful). People at all levels of an organization participate in kaizen, from the CEO down, as well as external stakeholders when applicable. The format for kaizen can be individual, suggestion system, small group, or large group. In Toyota it is usually a local improvement within a workstation or local area and involves a small group in improving their own work environment and productivity.

Whilst Kaizen usually deliver small improvements the culture of continual small improvements and standardisation yields large results in a form of compound productivity improvement. Hence the English translation of Kaizen can be: "continuous improvement", or "continual improvement."

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