...principle of regular investments. It is like your recurring deposit where you put in a small amount every month. It allows you to invest in a MF by making smaller periodic investments (monthly or quarterly) in place of a heavy one-time investment i.e. SIP allows you to pay 10 periodic investments of Rs 500 each in place of a one-time investment of Rs 5,000 in an MF. Thus, you can invest in an MF without altering your other financial liabilities. It is imperative to understand the concept of rupee cost averaging and the power of compounding to better appreciate the working of SIPs. What is Systematic Investment Plan or SIP? SIP works on the principle of regular investments. It is like your recurring deposit where you put in a small amount every month. It allows you to invest in a MF by making smaller periodic investments (monthly or quarterly) in place of a heavy one-time investment i.e. SIP allows you to pay 10 periodic investments of Rs 500 each in place of a one-time investment of Rs 5,000 in an MF. Thus, you can invest in an MF without altering your other financial liabilities. It is imperative to understand the concept of rupee cost averaging and the power of compounding to better appreciate the working of SIPs. SIP has brought mutual funds within the reach of an average person as it enables even those with tight budgets to invest Rs 500 or Rs 1,000 on a regular basis in place of making a heavy, one-time investment. While making small investments through SIP may not...
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...QUESTION: Using relevant examples drawn from Zambia, discuss the relevance of demography in investment planning both domestically and internationally. The world we live in today has become a business oriented with people investing almost any given sector that is open for investment. However, every of these investors don’t just enter into a sector without planning because all the investing that they carry out is a rational decision, with an aim of reaping serious profits, as argued by Von Neumann, and Morgenstern (1944), who argue that People rationally choose between alternatives, they act rationally while making their investment decisions (Von Neumann, and Morgenstern, 1944). Profit maximization in any investment is highly dependent on the market structure, especially on the consumers and to a greater extent the labor force, which in this case are the people. As stated above, all investors plan their investments as they seek to maximize profits, this planning is in the business sector referred to as investment planning, which by definition according to the Economy Watch, (2015) is focus on identifying effective investment strategies according to an investor’s risk appetite and financial goals. Through investment planning, one can identify the most appropriate portfolio mix. (Economy Watch, 2015) As Investors plan, they plan for a lot of issues that will affect their investments such as labour, education levels and other factors related to the people. These factors are what...
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...------------------------------------------------- MAF707 Portfolio investments and Financial Planning ------------------------------------------------- Group Assignment Group 77: Weizhe Shi_900443906 Ran Li_210037023 Yichao FU_900387184 Contents Question 1 3 Analysis of securities and the market index 3 Summary 3 Question 2 7 Question 3 8 Question 4. 9 Standard Consumption of CAPM 9 Expectation errors relied on ex-post data 12 Reference List 14 Question 1 Analysis of securities and the market index Summary Firstly we calculated the monthly return of each securities which depend on the data of adjust close price every month. The formula is the latter month’s adjust close price minus the previous monthly adjust close price then divide the latter month’s adjust close price. On the basis of the results, we moved forward the steps that calculate the mean, median, skewnes, kurtosis, variance and correlation coefficients. Those data have been calculated and presented in excels. Definition and Formula 1. Mean The mean value is the average value of monthly return from Jun 2003 to Dec 2010. The formula is: μ=i=1NXiN where N is the number of the month we count of the return and Xi is the total value of the monthly return. 2. Median The median is the value of the middle item of a set of items that has been sorted into ascending or descending order. In an odd-numbered sample...
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...TAX AND INVESTMENT PLANNING WITH ROYALTY TRUSTS This article starts off by describing what a royalty trust is, how it works, and why corporations use them. It then goes on to talk about the flow through of a trust royalty, the taxes associated with them, and depletion. Finally, it gives insight as to what account to place a royalty trust in based on financial goals. Royalty Trusts & Corporations Royalty trusts are legal entities established to produce income from natural resources. While they do contain some of the same characteristics of equities, they are neither a stock nor debt. It distributes all of its cashflow to its unit holders, reduces risk, and hedges against inflation. Also, the variables used in predicting future returns are more easily obtained through government reports. Next, Corporations have the potential to raise more capital when compared to conventional financing. In the tax laws, when there is a transfer of royalties to a shareholder, the corporation is not required to get back their cost of drilling and can avoid further tax restrictions. Tax liabilities Determining a trust royalty grantor is based on how it is acquired. Once the grantor is established, they must report certain items outlined in the tax laws based what percentage they hold. Also, the grantor is applicable to tax credits designed to promote investment into certain natural resources. As the natural resource available depletes, the basis of the asset is reduced...
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...Management Planning Planning is a management function necessary for the success of any organization. Organizational planning has to include internal and external environments, evaluation of the marketplace, identifying, and analyzing factors that influence planning. Fannie Mae is an organization with a competitive edge in the housing marketplace. Fannie Mae accomplished this through effective planning. Overview of Fannie Mae Fannie Mae is a government-sponsored enterprise (GSE) chartered by Congress with a mission to provide liquidity, stability, and affordability to the UNITED STATES housing and mortgage markets. Fannie Mae operates in the UNITED STATES secondary mortgage market. Rather than making home loans directly to consumers, Fannie Mae work with mortgage bankers, brokers and other primary mortgage market partners to help ensure they have funds to lend to home buyers at affordable rates. Fannie Mae fund mortgage investments primarily by issuing debt securities in the domestic and international capital markets. Fannie Mae has three lines of business-Single-Family, Housing and Community Development and Capital Markets-that provides services and products to lenders and a broad range of housing partners. Together, these business contribute to the company’s chartered mission to increase the amount of funds available to make homeownership and rental housing more available and affordable (Fannie Mae, 2010). Management Planning Function The planning function of...
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...William J Rothwell, Putting Success into your succession planning May, 2002. This article identifies the factors and strategies that can assist an established or growing organization meet its continua yearn for skilled people at all levels of an organizational functions through succession planning. Succession planning is simply a process by which the management identifies the potential successors of different functions in the company, thereby creating different initiatives in ensuring the development of identified successors. Succession is all about a smooth continuation and success of the organization and it depends on the competency of the people. The article did hit some very strong points in identifying some good practices in succession planning and management, they are; Clarifying the purpose and desired result of the effort, determine what performance is required, measure the performance, determine what performance is needed in the future, assess the potential, establish a means to narrow the gap, follow up, document competence, create and sustain rewards for developing people, evaluate results and lead from the front. One of the important factors discussed in the article and I agree with is time, an organization has to realize that it is a long term investment, an investment the company needs to devote time and effort to building. The step outlined in the article which describes the best practices of succession is quite easy to implement and actualize, it’s all...
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...EXPORT STRATEGY ASSESSING A PRODUCT'S EXPORT POTENTIAL There are several ways to gauge the overseas market potential of products and services. (For ease of reading, products are mentioned more than services in this guide, but much of the discussion applies to both.) One of the most important ways is to assess the product's success in domestic markets. If a company succeeds at selling in a domestic market, there is a good chance that it will also be successful in markets abroad, wherever similar needs and conditions exist. In markets that differ significantly from the domestic market, some products may have limited potential. Those differences may be climate and environmental factors, social and cultural factors, local availability of raw materials or product alternatives, lower wage costs, lower purchasing power, the availability of foreign exchange (hard currencies like the dollar, the British pound, and the Japanese yen), government import controls, and many other factors. If a product is successful in a domestic market, one strategy for export success may be a careful analysis of why it sells here, followed by a selection of similar markets abroad. In this way, little or no product modification is required. If a product is not new or unique, low-cost market research may already be available to help assess its overseas market potential. In addition, international trade statistics (available in many local libraries) can give a preliminary indication of overseas markets for a...
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...1. Strategy and Planning: their product, their business strategy, their planning process, their competitive advantage, do they fit together? Zara is a Spanish clothing and accessories retailer. Zara belongs to Inditex’s apparel retailer; the fashion group simultaneously owns brands, such as Massimo Dutti, Pull&Bear, Stradivarious, Bershka and Uterque, which operated 507 stores in many countries in 2001. Product Zara stores have men's clothing and women's clothing, as well as children's clothing (Zara Kids). Designers of the brand work on two basic collections each year that are phased in through the fall/winter and spring/summer seasons. Zara offers fashionable clothes at very competitive prices and reasonable quality. Customers choose products of Zara because they pay less for good, stylish products with good quality. Business strategy As I understood, managers of the company focus on cost leadership strategy. Zara is a vertically integrated retailer and controls most of the steps on the supply-chain, designing, manufacturing, and distributing its products. It has succeeded on account of minimizing its variable and fixed costs, its ability to capture the latest catwalk trends and quick reaction to changes in market demand. According to the case Zara made investment in manufacturing logistics and IT, including a just-in-time (JIT) system. Every two weeks Zara provides its stores with new products. The company follows zero advertising strategy. Mostly Zara invests...
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...Assignment 1 – Set Communications & Marketing Objectives for an Idea/Product/Service – 10% Assessment This is a grouped assignment linked to the learning outcomes and objectives of Unit 1. Students must review Chapters 4 & 5 prior to completing this assignment. Assignment 1 involves applying the DAGMAR strategic planning process to set two types of IMC objectives: 1. Marketing Objectives (Chapter 4 –Objective Setting p.110) 2. Communication Objectives (Chapter 4 – Communications Objectives p.114) Following DAGMAR – your objectives must include the following four (4) strategic planning principles: 1. A well-defined target audience; 2. Concrete and measurable tasks; 3. Benchmarks and a degree of change being sought; 4. A specified time period. Completion Instructions First you will select: (1) a product/service and (2) a key target audience that you get to know intimately. Second you will choose one (1) of the following managerial options for setting IMC objectives: 1. Category Need 2. Brand Awareness 3. Brand Attitude 4. Brand Purchase Intention Third, once you have selected your idea/product or service, your audience and your managerial option, you will proceed to plan a strategic framework of your marketing and communications objectives using the principles of DAGMAR. These objectives will guide the promotional program development and provide a benchmark against which performance for your product/service/idea can...
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...CHAPTER 13 AGGREGATE PLANNING The planning Process [pic] Aggregate Planning • Combines appropriate resources into general terms • Part of a larger production planning system • Disaggregation breaks the plan down into greater detail • Disaggregation results in a master production schedule Aggregate planning Strategies 1. Use inventories to absorb changes in demand 2. Accommodate changes by varying workforce size 3. Use part-timers, overtime, or idle time to absorb changes 4. Use subcontractors and maintain a stable workforce 5. Change prices or other factors to influence demand Capacity Options • Changing inventory levels o Increase inventory in low demand periods to meet high demand in the future o Increases costs associated with storage, insurance, handling, obsolescence, and capital investment 15% to 40% o Shortages can mean lost sales due to long lead times and poor customer service • Varying workforce size by hiring or layoffs o Match production rate to demand o Training and separation costs for hiring and laying off workers o New workers may have lower productivity o Laying off workers may lower morale and productivity • Varying production rate through overtime or idle time o Allows constant workforce o May be difficult to meet large increases in demand o Overtime can be costly and may drive down productivity o Absorbing idle time may be difficult ...
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...Budgeting and Variance Analysis TJ Wicker TJ Wicker Kaplan University Chapter 8 Question 8.1 Why are planning and budgeting so important to an organization’s success? Planning and budgeting both play a critical role in the finance functions of all healthcare service organizations. In fact, on could argue (and usually win the argument) the planning and budgeting are the most importnat of all finance related tasks. Planning encompasses the overall process of preparing for the future. Because of tis’ importance to organizational success, most health services managers, especially at large organizations, spend a great deal of time on a=activities related to planning. Budgeting is an offshoot of the planning process. A set of budgets is the basic managerial accounting tool used to tie together planning and control functions. In general, organizational plans focus on the long-term big picture, and through the control mechanism, ensuring that current performance is consistent with organizational plans and goals. Question 8.2 Briefly describe the planning process. Be sure to include summaries of the strategic, operating and financial plans. 1. Goal setting: Plans are the means to achieve certain ends or objectives. Therefore, establishment of organizational or overall objectives is the first step in planning. Setting objectives is the most crucial part of planning. The organizational objectives should be set in key areas of operations. The objectives must be clear, specific...
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...requirement of management” is a key factor that makes Distributed Data Processing (DDP) possible. The information requirements of management require centralized organization and access of most company resources. Companies prefer to spend less but get more power and performance for their investment. Management requires newer application with short response times while increasing overall productivity. (Business Data Communications, Sixth Edition, 2009, p. 58). The corporation will have to decide whether they require a LAN, Local Area Network, if the corporation only needs their network to share resources within a building, (Local Area Network Technologies, 2012). The corporation may want to use MAN, Metropolitan Area Network, if they have multiple building that need to share a network. An example would be a college campus. (Metropolitan Area Network, 2012). The information requirement of management leads us to the three points of the initial roll out phase and network security. The points of initial roll out are plan, analyze, and implementation. (eWeek, 2004). The first point of initial roll out is plan. The planning process is a very critical part of the roll out process. During the planning point, this is where the developers have to take in consideration the growth and acceleration of the computer industry and how this growth effects the computing and information service needs for large corporations. The corporate computing world demands environments that “ uses client/server...
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...Management Planning Paper Samuel K. Mims MGT 330 Roxanne Bates July 26th, 2011 Management planning is the most important function of management because it is the foundation for the organization. The planning function of management is the management function of systematically making decisions about the goals and activities than an individual, a group, a work unit, or the overall organization will pursue. Planning is specifying the goals to be achieved and deciding in advance the appropriate actions needed to achieve those goals. Planning activities for the company include analyzing current situations, anticipating the future, determining objectives, deciding in what types of activities the company will engage, choosing corporate and business strategies and determining the resources needed to achieve the organization’s goals (Bateman & Snell, 2008). When it comes to a huge corporation such as Boeing, the planning function becomes even more important because there are so many different divisions within the corporation that must be accounted for. In Boeing’s case, they are a multinational corporation that provides their services all throughout the world so they have to plan on a worldwide scale which is a much more difficult task than planning as a domestic company. Boeing’s planning functions are well thought out and executed to the fullest of their ability as they are very focused on their stakeholders needs, motivating their workforce, enabling teams, requiring alignment...
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...FORECASTING The essence of port traffic forecasting is to find out: (a) What kinds and tonnages of commodities will move through the port? (b) How will these commodities be packaged and carried as maritime cargo? (c) What ship types, tonnages and frequency of calls will this result in? Traffic forecasting requires a combination of commercial and economic knowledge and the mathematical techniques are of minor importance and can often be omitted entirely. Far more important is the need to bear constantly in mind the very high degree of uncertainty in any forecast, and to take steps to minimize the risk which this causes. Any forecast of future trade will be uncertain, and ports are particularly vulnerable in view of their long planning time-scale and limited ability to influence demand. All forecasts should be linked with the overall national development plans. Furthermore, maritime trade is going through a period of rapid change which critically affects the volumes and types of traffic likely to use any port. Errors in forecasting can be serious, and the consequences of overestimating and underestimating are not equal. To over-build may add only a few dollars, at most, per ton to freight costs, but to under build may cause congestion leading to additional costs of $100 per ton. Even when all precautions have been taken to reach realistic and well-reasoned forecasts, the remaining uncertainty usually produces a wide variation of possible levels of traffic when projected...
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...Business Planning I. Introduction A business plan is a formal document indicating a set of company goals, the plan for achieving those set goals and a description why the management believe that those goals are attainable and etc. Its primary value is to evaluate the viability of the potential projects and to analyze the business prospects. It may also contain background information about the company such as mission, vision and how suitable and feasible the project is, to the company. Business plans may also target changes in perception and branding by the customer, client, taxpayer, or larger community. A business plan will be useful to a company in many ways. Firstly it will clearly identify and focus the company objectives using suitable information and analysis. Also it can be used as a selling tool when dealing with lenders, investors and banks. A business plan is also a road map that provides directions so a business can plan its future and helps it avoid bumps in the road. The time you spend making your business plan thorough and accurate, and keeping it up-to-date, is an investment that pays big dividends in the long term. Business planning is very significant because it is the first step toward success in your business venture. From obtaining funding to hiring employees to planning for expansion, a business plan can be your guide to keeping your business on track. Your business plan can keep you focused on your goals and keep you moving forward. ...
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