Same as vertical integration achieved through the merger, takeover and amalgamation process.

Strategy relating to vertical integration. To achieve control of the total chain of supply-production-marketing to minimize risk, attain viable size and fight competition.

Acquisition by company of one of its suppliers (backward vertical integration) or of one of its customers (forward vertical integration). The three major aims are: 1) minimizing risks of outsourcing or disposal, 2) balancing capacities, 3) creating synergy and economies of scale.

Present day format of balance sheet, where net assets and capital employed are shown beneath each other (in either order), and not side by side. The same form for presentation of P & L or income and expenditure statement.

The combination of businesses engaged in performing successive functions in the manufacture of goods by making products which form the raw material to the next stage of production. Also called vertical integration. Thus, a steel plant owns iron ore mines and may have an engineering equipment or steel furniture plant. Vertical integration reduces risks and costs of out sourcing. It aims at abridging outside dependence from the raw material to the finished product.

A particular form or variation of something. A thematic summary of an idea or event as perceived by the author.

In exactly the same words. A replica or a prototype of an original.

A group of specialists from different divisions of a company under the aegis of a team manager who discuss among themselves about the evolvement of a new product for a specialized market. A team entrusted with formulation and start up of a project.

Investment finance, generally in the form of share capital supplied by venture capital fund companies to innovative and high risk projects which are expected to yield high returns. The promoters’ such capital mandated for financial institutions’ participation in the funding of the venture.

A risky enterprise; especially a business venture where there is a chance of gaining profit as will as the danger of suffering loss. Any defined business activity involving investment and expected returns.

To air one’s feelings. The process acts as a ‘vent’ or outlet for relieving pressures and suppressed grievances among groups in the organization.

Supplier of materials, products or services, and capable of playing an important role in cost reduction and value improvement vendor selection and vendor quality provides a safe, sustained and economical supply line.

The buying party in a sale especially in a property deal.

A quantity having both magnitude and direction is called a vector quantity. Examples are force or velocity as distinct from mass or speed which are ‘scalar’ quantities having only magnitude and no direction.

A subjective grouping of inventory items into vital, essential and desirable divisions. The classification is based on technology and experience of procurement difficulty of such critical items a shortage of which can foul and interrupt valuable production lines.

Method of arranging stock items into vital, essential and desirable groups on the basis of their criticality. The idea is to focus management attention and inventory policy on the criterion of essentiality and not on value or consumption as such.

A retail shop that stores a wide variety of household and personal items most of which are relatively inexpensive and in common use.

Method of lessening a large variety of items having close characteristics to fewer ones by the process of standardization and grouping.

The analysis of variances arising in a standard costing system. It is the analysis of those elements which are responsible for differences between pre-determined standards and actual results. This analysis is carried out to get rid of inefficiencies.

A method whereby the actions planned by an organization are quantified in budgets, standard costs, standard selling price and standard profit margins and differences between these and actual results are compared and analyzed for correction and improvement.