Chapter Meeting 29th July 2011 Agenda 1. Background 2. Credit Risk and the Case of Washington Mutual 3. Operational Risk and the Case of Rogue Brokers in Kenya and Barings 4. Market Risk and the Case of LTCM 5. Liquidity Risk and the Case of Northern Rock 6. Q&A BACKGROUND Main Types of Financial Risk Risk Type Definition Credit Risk The potential that a bank's borrower or counterparty will fail to meet its obligations in accordance with
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Cash: The Maclins do not need any immediate cash or specific cash reserve fund. Moreover, near cash investments generate very low returns which create a shortfall in the fulfillment of their return requirement. Also, their liquidity needs are low, and a small allocation is needed to be considered for emergencies since their income will cover their annual shortfall in their living expense. Therefore, the Maclins should minimize their quantum investment in cash securities. The lowest allocations between
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Journal Article: Building Brand Webs: Customer Relationship Management Through the Tesco Clubcard Loyalty Scheme Group Topic: Customer Relations and the Food Industry In this journal article, the author, Rowley, examines the use of loyalty schemes and the role that they have in developing a customer relationship with the brand distributing, or communicating with the loyalty scheme. The role of loyalty schemes in branding is also examined alongside their effectiveness of keeping
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Assignment questions: 1. What should Justin King do with the program? In my opinion King should continue with nectar program . Nectar provides Sainsbury with valuable information about their customers that helps keep Sainsbury thriving : In other words * 2.9% raise in revenue Cost is dispersed amongst the partners * Increase in number of buyers due to a large number of partners Cons: * Costs more than 120 million pounds towards the loyalty program * Company is competing
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9-505-031 REV: DECEMBER 5, 2005 JOHN DEIGHTON Nectar: Making Loyalty Pay Persuading British households to do anything was not easy, yet, in the 18 months leading up to March 2004, Loyalty Management UK (LMUK) had induced over 54% of them to try collecting Nectar points and 40% to persist, making Nectar Britain’s largest rewards program. Each week it added 50,000 new members (whom Nectar called collectors). Rob Gierkink, CEO of LMUK, was pleased with his team’s accomplishment. In March
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the case that Nectar’s loyalty program pays out for Sainsbury's in numerous ways. Nectar helped Sainsbury's acquire customers. For instance, Nectar customers who are not Sainsbury customers may have another supermarket close to their home, such as Tesco. However, because these shoppers have a Nectar card, they are more likely to travel further for their grocery shopping in order to obtain loyalty points for their Nectar card. Additionally, Nectar allows Sainsbury to target members who are not currently
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D Disrupting Wall Street High Frequency Trading Case I, Group A6 13.10.2015 Case I: High Frequency Trading Group A6 1 1. Describe the current market structure and trends of US equities trading. The current US equity trading market structure can be evaluated from different perspectives. In light of the actual case study the focus of this brief analysis lies on the way how trades were respectively are actually pursued. Originally - until the late 1970s / early 1980s – trading
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Companies Tesco Tesco PLC is an international British general merchandise and grocery retailer and listed on London Stock Exchange as TESCO. The store was founded in 1929 and today it emerged as a world’s third largest retail store with more than 50,000 employees and 6200 stores. Tesco’s headquarter is located in Cheshunt, United Kingdom. Tesco has been functioning in 14 countries across Europe, Asia and North America. With the help of private label programme that are well established, Tesco engaged
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Financial Ratio Comparison of Tesco Plc and Sainsbury Plc Introduction Abraham Brilloff once said, “Financial statements are like a fine perfume-to be sniffed but not swallowed.” This means to make rational decisions in keeping with objectives of the firm by busing the financial statements (Helfert, 2003), it is important to critical and analytical sniff but to simply swallow the statistical information from the statements. Using what tools to get into the deep sight of financial statement and
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an analysis and comparison of Tesco Inc. and Ahold N.V, paying close attention to form an investment decision for shareholders. The ratios have been chosen to show profitability and liquidity (risk). Methods of analysis include Porter’s Five Forces analysis, trend and ratios such as ROA, Current and D/E ratios. Results of information and data analyzed show that Ahold has a higher liquidity level and a slightly better return on assets than Tesco. In addition, Tesco has a higher credit risk level
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