...and Rajiv Lal, the Stanley Roth Sr. Professor of Retailing at Harvard Business School, was published in the Havard Business Review of April 2012 on the pages 104-111 and deals with the issues of expanding abroad for international grocery retailers and the resulting problems they have to face. In the beginning of their article they state that economical recession in the U.S. And Europe lead easily to focussing on feasible emerging markets in the developing world The opinion that globalisation is not a receipt for growth and emerging sales rates. Corstjens and Lal put the focus on grocery retailers and got the result that within a few exceptions the retailers have not gained any growth by expanding abroad. They stress that the lack of a close connection to the retail market abroad and the dominating local players made it difficult for emerging grocery retailers to find a place in the market. Some retailers found new strategies in order to emerge domestically as well. They express many reasons for expanding which varies, but Cortjens and Lal point out that the main goal is growth. By stating that many companies are lead by opportunistic decision making, which threatens the long-run strategies. As an example, the expansion of Wal-Mart in the UK in 1999 is given. As a reason of failure abroad the authors state out the possibility of different consumer tastes in the host countries especially in food products. In contrast to this, it is mentioned that worldwide suppliers made...
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...and analysts are integrating environmental, social and governance (ESG) analysis into their fair value calculations. The members of the ESG Integration Working Group are: Neil Brown Alliance Trust Investments - Working Group Chair Bruce Kahn Deutsche Bank Climate Change Advisors Andre Bertolotti Quotient Investors Masahiro Kato Mitsubishi UFJ Trust and Banking Corporation – observer Paul Bugala Calvert Investments Tony Campos FTSE Group Erica Lasdon Calvert Investments Cécile Churet RobecoSAM Barb MacDonald British Columbia Investment Management Corporation Leanne Clements London Pension Funds Authority Mary Jane McQuillen ClearBridge Investments Jennifer Coulson British Columbia Investment Management Corporation Christie Stephenson NEI Investments Lisa Domagala Solaris Investment Management Ralf Frank DVFA (Society of Investment Professionals in Germany) Dr. Hendrik Garz Sustainalytics (previously employed by West LB) Bryan Thomson British Columbia Investment Management Corporation Mike Tyrrell SRI-Connect Stéphane Voisin Cheuvreux Niamh Whooley Société Générale Robert Hauser Zürcher Kantonalbank (ZKB) Between March and May 2012 the ESG Integration Working Group interviewed 17 brokers, research providers and investment managers to draw out best practice examples of integrated equity analysis. These case studies form the basis of this review (see Appendix 1 for a list of those interviewed and the research reviewed)...
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...TECHNOLOGY INFRASTRUCTURE INVESTMENT Presented by: Kemeasoudei Fanama (u0856287) WHAT IS INFORMATION TECHNOLOGY? Information technology is defined as the study, design, development, implementation, support or management of computer- based information systems, particularly software applications and computer hardware. IT deals with the use of electronic computers and computer software to convert, store, transmit, process, protect and securely retrieve information. APPROACHES TO INFORMATION TECHNOLOGY INFRASTRUCTURE INVESTMENT 1. Fundamental Approach: The basic tenets of the fundamental approach, which is perhaps most commonly advocated by investment professionals, are as follows: There is an intrinsic value of a security and this depends upon underlying economic (fundamental) factors. The intrinsic value can be established by a penetrating analysis of the fundamental factors relating to the company, industry, and economy. At any given point of time, there are some securities for which the prevailing market price would differ from the intrinsic value. Sooner or later, of course, the market price would fall in line with the intrinsic value. Superior returns can be earned by buying under-valued securities (securities whose intrinsic value exceeds the market price) and selling over-valued securities (securities whose intrinsic value is less than the market price). APPROACHES TO INFORMATION TECHNOLOGY INFRASTRUCTURE INVESTMENT (continued) 2. Psychological...
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...and analysts are integrating environmental, social and governance (ESG) analysis into their fair value calculations. The members of the ESG Integration Working Group are: Neil Brown Alliance Trust Investments - Working Group Chair Bruce Kahn Deutsche Bank Climate Change Advisors Andre Bertolotti Quotient Investors Masahiro Kato Mitsubishi UFJ Trust and Banking Corporation – observer Paul Bugala Calvert Investments Tony Campos FTSE Group Erica Lasdon Calvert Investments Cécile Churet RobecoSAM Barb MacDonald British Columbia Investment Management Corporation Leanne Clements London Pension Funds Authority Mary Jane McQuillen ClearBridge Investments Jennifer Coulson British Columbia Investment Management Corporation Christie Stephenson NEI Investments Lisa Domagala Solaris Investment Management Ralf Frank DVFA (Society of Investment Professionals in Germany) Dr. Hendrik Garz Sustainalytics (previously employed by West LB) Bryan Thomson British Columbia Investment Management Corporation Mike Tyrrell SRI-Connect Stéphane Voisin Cheuvreux Niamh Whooley Société Générale Robert Hauser Zürcher Kantonalbank (ZKB) Between March and May 2012 the ESG Integration Working Group interviewed 17 brokers, research providers and investment managers to draw out best practice examples of integrated equity analysis. These case studies form the basis of this review (see Appendix 1 for a list of those interviewed and the research reviewed)...
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...Introduction 1.1 Topic Chosen The chosen topic for my Research and Analysis Project would be “The business and financial performance of an organisation over a three years period”. The project would be carried out by analysing the business and financial performance as well as business performance of the Singapore Airlines which is the national airline of Singapore and comparing with its competitor Qantas. It will also include the impact of other major internal and external events on the company’s performance. 1.2 Reason for choosing the topic and the organisation Before choosing the topic for my Research and Analysis Project, I went through all the titles provided by Oxford Brookes University to make sure that the topic chosen would be not only feasible but also within my ability to find the information for the report. In my opinion, analysing the business and financial performance of the organisation would be the most important thing that should be understood by the modern day accounting profession. By choosing this topic, not only applying my knowledge but also it is much more related to what I have been studying so far. Studying Financial Reporting paper (F7) and Business Analysis paper (P3) support and provide basic knowledge in analysing the chosen organisation and undertaking my research project. The reason for choosing the airline industry is due to the fact that it plays significant role in our life. Without these industries, it may take quite long...
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...Financing and investment are two major decision areas in a firm. In the financing decision the manager is concerned with determining the best financing mix or capital structure for his firm. Capital structure could have two effects. First, firms of the same risk class could possibly have higher cost of capital with higher leverage. Second, capital structure may affect the valuation of the firm, with more leveraged firms, being riskier, being valued lower than less leveraged firms. If we consider that the manager of a firm has the shareholders' wealth maximisation as his objective, then capital structure is an important decision, for it could lead to an optimal financing mix which maximises the market price per share of the firm. Capital structure has been a major issue in financial economics ever since Modigliani and Miller (henceforth referred to as MM) showed in 1958 that given frictionless markets, homogeneous expectations, etc., the capital structure decision of the firm is irrelevant. This conclusion depends entirely on the assumptions made. By relaxing the assumptions and analysing their effects, theory seeks to determine whether an optimal capital structure exists or not, and if so what could possibly be its determinants. If capital structure is not irrelevant, then there is also another thing to consider: the interaction between financing and investment. But in order to try to distinguish the effects of various determinants on capital structure, it is assumed in this...
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...Bank overdraft Borrowings from a bank on a current account which are payable on demand Breakeven point The point at which the total sales of a business equal total costs -i.e. the business is making neither a profit nor a loss Budget A detailed plan of income and expenses expected over a certain period of time Business plan A detailed description of a new or existing business, including the company’s strategy, aims and objectives, marketing & financial plan Business objective A stated goal or target of a business (note: a business can have more than one objective!) Cash flow The movements of cash into (“inflows”) and out of (“outflows”) a business Cash flow forecast A projection, usually by week or month, of the likely cash inflows and outflows in a business Contribution The difference between total sales and total variable costs Contribution per unit A key number for breakeven analysis: the difference between selling price per unit and variable cost per unit. Costs Amounts incurred by a business as a result of its trading operations Demand The amount of a product or service that customers are willing and able to pay at a given time Demographic Defining a market in terms of social-economic factors such as segmentation age, income, class etc Elasticity of demand The responsiveness of demand to a change in price or incomes Electronic market A market in which buyers and sellers are brought together using digital means of communication (e.g....
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...measured by analysing various factors which could be qualitative and quantitative in nature. This means that defining success encompasses a broad spectrum. For instance, success can be measured by analysing the performance of the business, taking into consideration the expectations of stakeholders with an interest in the business venture, the nature of the expectations and the actual outcomes achieved relative to the expectations of the business venture. Analysing the performance of a venture can be measured for example by looking at the net profit of the business or its revenue and various profitability ratios of the venture. In addition, establishing relationships with others and achieving personal satisfaction are also important factors to consider when measuring the performance of the business. It has been indicated by Charles (2011) that the success of a new venture does indeed include meeting the expectations of interested parties. It has also been found by Charles (2011) that successful ventures are dependent on other factors such as the knowledge and skills of the entrepreneur. This knowledge can come from first-hand experience in a specific industry or research conducted in a specific area. It is also important to find the proper niche in the market, to be financially secure and to employ the right people. According to Wickham (2004) the aforementioned factors are important as the venture must be able to spot a well-defined and sustainable opportunity in the market. Furthermore...
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...discussed for a long time. Some argue in favor of the view that central banks should burst bubbles. But, in their view, monetary policy should respond to asset bubbles in a cautious and moderate manner in order to avoid economic distortions. Some others argue against the role of central bank in bursting bubbles. They say bubbles generally arise out of some combination of irrational exuberance, jumps forward in technology and financial deregulation, for which the connection between monetary conditions and the rise of bubbles is tenuous. However, the central bank is at the centre point in this debate. The recent crash in the stock market in Bangladesh is also associated with some policies of the central bank. The aim of this article is to analyse the following two aspects: (i) whether the monetary policy response was appropriate to the rise and the recent collapse of the bubble, and (ii) whether the behaviour of financial institutions was optimal to the policy response. Commercial banks have been involved heavily in the stock market business in the last few years. Allowing merchant banking has exaggerated the situation. They became the key player in the stock market. Undoubtedly, any policies to control banks' exposure to the stock market could have significant impact on the capital market. Monetary easing during last two or more years (money supply was more than 22 percent during the period) could have helped stock market remain buoyant during these days. Perhaps, Bangladesh...
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...Analysing the growth of the Bovespa index from 2004 onwards. Vincent van Werd - 319088 The Brazilian stock market has been growing steadily since 2004, as will later been shown in detail with illustrations. Which factors impeded growth before that period and which ones facilitated the growth as from 2004? Was the development of Bovespa due to regulatory changes or were other factors involved? Economic factors To determine the role of corporate law in the development of the stock market, I would like to take some other factors into account first. Perhaps we will find that the importance of other factors was much bigger than that of the corporate law. First of all let us illustrate the development of the stock market. In the graph below, the growth of the Bovespa index is being shown. This graph clearly shows the growth of the Bovespa index. Especially between the year 2003 and the first months of 2008 there has been a rapid growth. After a steep downward movement as of May 2008, the index quickly recovered back to the previous high level by January 2010. In the most recent years, the index has been more stable. Now that we have seen which growth exactly we are analysing, to continue I would like to illustrate some core economic figures, starting with the inflation rate. Brazil has a history with periods of hyperinflation, causing new currencies to be introduced every once in a while, only to get even higher inflation again. During the introduction of the Plano Real...
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...prone to intervene in the market and therefore prefer to use fiscal policy whilst monetarists believe adjustments in money supply is more appropriate in stabilising the market ,therefore preferring monetary policy. In this essay I will discuss the views of Keynesians and monetarists regarding the effectiveness of monetary and fiscal policies in controlling aggregate demand through the IS-LM framework. I will first provide a brief description of the curves explaining their formation and what they represent and then I will go on to examine monetary and fiscal policy within the IS-LM framework. Finally, I will examine the views of monetarist and Keynesians regarding the effectiveness of both policies in raising the level of national l income and also consider the extreme cases. IS-LM framework The IS-LM model was initially developed by John Hicks in 1937 but was made popular in 1949 by Hansen in order ‘to provide a framework for analyzing the factors determining the level of aggregate demand’. The IS-LM model is a short run model of the determination of output. It shows the unique combination of income and interest rates that lead to an equilibrium in both the goods and money market at the same time (Begg, 2008). The IS-LM model is presented on the diagram below. The IS (Investment and saving) curve represents all equilibriums for which total spending (consumption and investment) equals total output. It reflects equilibrium in the goods market and operates on the assumption...
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...social media has increased from 6% in 2007 to 20% in 2011. The registered users will almost reach 2 billion people by 2014. These figures show relentless growth and usage of social media. Already 91% of the B2B companies are active on Facebook, 53% on Twitter and 47% on LinkedIn. These statistics reveal that social media has conquered B2B network and has entered in that chain as means of effective communication and presentation. B2B companies deal with people and not robots. So the influence of emotions before purchasing a product is applicable to them also as they are not immune to these influences. Hence, the first impression and the presentation affect them too. Social networks also affect them as they spend 99% time in surveying and analysing the product. Only 1% time is spent in buying the product. Hence, the social media content has a great influence and controlling power with respect to the choices of the B2B companies and their buyers. Also, 39% of the B2B clients use...
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...as a structured, fluent and coherent piece of work. Assessment criteria are reported in the Appendix. Instructions • The word processed report should be 1000 words in length (excluding calculations), plus or minus 10 per cent. Assignments outside this length will be penalized 10 per cent for every further 10 per cent deviation in length. • All calculations should be shown in an appendix. All assignments will be checked electronically for plagiarism and collusion. MCC plc MCC plc is a carpet retailer that operates a network of stores throughout the UK and aims to be the largest and most profitable carpet retailer in the UK. The market for floor coverings has not been very buoyant in recent years and for MCC’s year ended 30 April 2008 there was no growth in the market at all. Given the general state of the market and the ambition of the business, MCC has committed itself to increasing sales...
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...construction industry. To some extent this follows from the character of the industry as an agglomeration of service organisations, not without structural relationship to one another, but serving a clientele from which individuals seek service very infrequently." (Jepson & Nicholson, 1972: p.1) Although times have and are changing the above statement despite being written over twenty five years ago is still to some extent very true. The subject of this assignment is a construction firm that has recently designed and implemented a marketing management strategy. The objective of this assignment is fourfold, firstly the company’s approach to marketing management will be documented this will then be related to marketing management theory Then by analysing data collected through research the effectiveness of the strategy will be discussed. Finally using marketing management theory as a foundation recommendations will be made to identify where the initial strategy could be improved in order to promote future business development and success, in line with the strategic mission of the company. The organisation in question has strong foundations, since it’s incorporation in the mid fifties turnover has grown in line with inflation. In 1984 the Company was purchased by the son of the original managing director, he took up the role of new managing director. By the beginning of the 1990’s it became apparent that the company had reached a stage where it was no longer a small "hands-on" enterprise...
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... delivered. Corporate payout policy is also one of the most polarising topics in finance. Theorists such as DeAngelo and DeAngelo (2006a, 2006b, 2008), and Fama and French advance a theory on the financial life-‐cycle of the firm determining dividend policy. Other academics are less sanguine about how dividends affect the value of a firm's shares, Miller and Modigliani (1961) (hereafter MM) express in their dividend-‐irrelevance theory that in a frictionless market, the value of a firm is unaffected by the distribution of dividends and is determined solely by...
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