Financial Policy Definition

Amartuul Turbat Professor Fillenwarth Financial Policy 11 March 2011 The Definitions Question 1-2; (1-1. a. b. ) Proprietorship: is the entity owned by an individual who is only founder and manager of the company. Even though it does not pay tax for located states, proprietorship’s profits or loses reports on its owners’ annual tax reports. Despite the fact that proprietorship is easy to form and has seldom government regulations, its term of operation is directly depending on its founder life time (Ehrhardt and Brigham 5). In addition on proprietorship, a partnership is more flexible type which is a business relationship between several individuals who are similar desires to obtain the profits from the partnership’s operation. Typically, partnership classified general and limited based on its contract regulation. Despite the fact that in general partnership-general members responsible to pay company’s loss by their own assets, in limited partnership members-limited members can lose the amount of money which they invested in the partnership. Furthermore, likewise limited members responsible for limited part of the partnership, they have limited right to participate or control the company’s management. Even though at least one person should be a general member of the partnership, all members can be partner whose potential losses are limited by their amount of investment. This type of company is called Limited Liability Company (Ehrhardt and Brigham 6). Finally, company organized as a corporation when business enlarged and it is difficult to manage it by structure of partnership or proprietorship. Corporation works under the located state law and operates independently from managers. Due to this separation, corporation has â€Å"unlimited life of existence, easy transferability of ownership interest, and limited liability losses† (Ehrhardt and Brigham 24). Question 1-1 (C) Stock holder Wealth Maximization: is the main goal of the corporation since it is the best way of successful operation in long-term business. Derivatives: is the special type of securities because its value and right are depending on prices of another assets or operation. D; E) – Corporations can sell its stock in the private markets or the public markets. Unlike the private market in which trade is made in between two sides, in the public market, numerous people participate in the trades. In order to be an owner of the corporations, investors can buy the company’s stock from the â€Å"primary markets† in which companies sell their IPO (Initial Public offering) or from the â€Å" secondary market† in which IPO owners sell their stocks for other investors. Also, there are some other financial markets exist such as money markets and capital markets. Main difference between those two markets is â€Å"liquidation† of the securities (Ehrhardt and Brigham 23). For example, in spite the fact that short-term highly liquid debts trade in the money market and long-term stocks and debt maturing trade in the capital markets. (F) Investment Bank: is a financial institution which encourages the company to create stocks into the markets, and it is the assistant of the companies when they merging with each other (Ehrhardt and Brigham 23). Financial Service Corporations: are the organizations which involved with money management such as banks, credit card companies, and insurance companies (Ehrhardt and Brigham 24). Financial Intermediaries: are the unions which involved finding the surplus money from one side and then allocating it to deficit sides (Ehrhardt and Brigham 30). (G) Mutual Funds: are the organizations that collect money from numerous investors and then put it to buy financial instruments such as stocks, bonds, short and long-term money instruments. Money Market Fund: is the one type of mutual fund which invests in securities with short-term, low risk, and more safety conditions (Ehrhardt and Brigham 29). (H) Physical Location exchanges: is a physical financial market in which brokers and dealer participate in trade of stock, bonds, notes and mortgages. Computer/ Telephone Network: Invertors can participate in trades by computer/ telephone network without requiring members to be in the same building. (I) Open Outcry Auction: is a trading process of selling and buying stocks by offering bids and then sell it higher prices. In other words it is the mechanism of the trades. Dealer markets: is different from the auction since in which brokers acting a main role of the trading process, and they ask and quote the prices in order to match the seller or buyer with their prices (Ehrhardt and Brigham 30). Electronic communication network: is the automatic system which helps for members to match their bid to another buyer or seller. It provides people in any every counties opportunity to participate in trading by using internet (Ehrhardt and Brigham 30). J) Production opportunities: is the possibility to convert a capital into profits. Because production opportunities affect the returned earnings of the investment, financiers consider it when they determining the cost of money (Ehrhardt and Brigham 21). Time references for consumption: is the tendency of the use of money in present and future. In spite the fact that in China people tend to save their money for future, Mongolian people prefer to use their money p resents (Ehrhardt and Brigham 20). (K) Foreign trade deficit: is the one of the economic condition which affects the cost of money. For example, if American foreign trade getting slows, its reserve of the money become decreasing, so it can be influence cost of the investment. It means American buy more than they sell (Ehrhardt and Brigham 19). Question 1-3 Intrinsic value is the true value of the organizations which based on real position of market share, company’s assets, and perception of the future. This value can be same as market value if factors are same in the estimation process. On the other hand, intrinsic value may be different from market value depending on information used in evaluation. For example, if management hides negative information, market value might be higher than intrinsic values (Ehrhardt and Brigham 9). Question 1-4 Edmund Enterprises recently made a large investment to upgrade its technology. Even though this investment cannot improve the income in short-term, it can reduce the production cost. Therefore, in short-term investment cost will increase in the â€Å"Income Statement† because of the new investment; as a result profits will decrease and company’s earnings per share will decrease. However, in the financial markets, this news affects positively on stock’s market price. Also, this investment can raise the company’s intrinsic value since it can reduce the production costs (Ehrhardt and Brigham 30). Question 1-5 Capital can be transferred by the direct and indirect ways. In direct ways only two sides participate. Savers can make investment direct into business, and business sells their securities to savers without other parties. On the other hand, investment bank or financial intermediaries can participate effectively in transfers of capital. For example, person who has surplus money invest in business by using investment bank or financial intermediaries, and companies can get investment by collaborating with those third parties (Ehrhardt and Brigham 14). Question 1-6 Financial intermediaries such as commercial banks, financial service companies play a crucial role of the economic system. Banks allocate efficiently financial fund, and they offer financial services that can make easy to obtaining information for both savers and borrowers (Levine 690). Question 1-7 An initial public offering (IPO) is a  primary market transaction. Typically, the company sells the IPO to other  institutional investors, so the general public has no access to the IPO initially. After certain institutions get the stocks, they may sell them into the secondary market where all investors can buy them (Ehrhardt and Brigham 28). Question 1-8 Stock market is a securities market where bond, stock and other securities trading in guided by the professional stockbrokers. On the other hand, in dealer markets, transactions makes based on person who acting as dealers for his own accounts rather than brokers acting as dealer for his buying and selling processes (Buiter). Question 1-9 Two leading stock markets are â€Å"New York Stock Exchange† (NYSE) and â€Å"Nasdaq Stock Exchange† (NASDAQ). NYSE is considered largest stock market in the world and companies’ market capitalization which are listed at NYSE are US$13. 39 trillion in end of 2010. Also, NASDAQ is the largest electronic screen trading in the United States, and second largest stock market by market capitalization of listed companies (Buiter para. ). Works Cited Brigham, Eugene F. , and Michael C. Ehrhardt. Financial Management Theory and Practice. Mason, Ohio: South-Western Cengage Learning, 2010. Print. Buiter, Willem H. â€Å"Time Preference and International Lending and Borrowing in an Overlapping-Generations Model. †Ã‚  The Journal of Political Economy  89. 4 (1989): 769+. Google Scholars. Web. 2 Mar. 2011. Levine, Ross. â€Å"Financial Development and Economic Growth. †Ã‚  Journal of Economic Literature(1999): 688-729. Web. 02 Mar. 2011.

Comparison of Reliance Mutual Fund with Others

A PROJECT REPORT ON â€Å"COMPARISON OF RELIANCE MUTUAL FUND WITH OTHERS† UNDERTAKEN AT INDIA INFOLINE LTD. BARDOLI [pic] SUBMITTED BY: DIMPLE M. SHARMA (10BBA52) GUIDED BY: Mr. NAVIN H. SAPARIYA BBA PROGRAMME (Year 2012-13) [pic] VIDYABHARTI TRUST COLLEGE OF BBA & BCA, UMRAKH I DIMPLE SHARMA from Vidyabharti Trust College of BBA & BCA, Umrakh hereby declare that the project report work entitled â€Å"Comparison of Reliance Mutual Fund With Others† submitted by Ms. DIMPLE M. SHARMA Id no. 0BBA52 during December 2012 to February 2013 has been undertaken as a part of 6th Semester of BBA syllabus of Veer Narmad South Gujarat University, Surat. I declare that this report has not been submitted to any other university or institute for any other purposes. DIMPLE M. SHARMA (10BBA52) This Project work is written in accordance with the Bachelor of Business Administration course prescribed by Veer Narmad South Gujarat University for two month project work.I am greatly thankful to India Infoline Ltd. , Bardoli for giving me an opportunity to work on this project at their company. I wish to express my sincere thanks to Mr. Viral Chauhan, I/c Principal of BBA College who gave me the chance to do this project report under India Infoline Ltd. , Bardoli. I wish to express my deep sense gratitude to my guide Mr. Navin H. Sapariya; whose constant help and support at all stages of this project has enable me to complete it. I am thankful to my company guide Mr.Parag Khatri, for providing his valuable suggestion and guidance which has given final touch to the report and also for sharing his rich experience for the contents of this report without whom this project would not have been completed successfully. Last but not least, I am also grateful to my parents, colleagues whose continuous support has always boosted my moral towards working on this report. DIMPLE M. SHARMA (10BBA52)As a partial fulfillment of BBA Programmed all students are required to undergo training for 2 months with respected to this I have prepared a project report on Comparison of Reliance Mutual Fund with Others. The project is based under the assumption that, As Mutual Fund being a new investment avenue in the market people likes to get some information about Reliance Mutual Fund. I want to measure the performance of Reliance Mutual Fund Schemes compared to others. In the duration of 8 weeks, I studied various Mutual Fund Schemes of Reliance & Open – Ended Fund like Equity Fund.In order to compare the schemes of Reliance Mutual Fund & Others, I collected weekly net asset values of Reliance Mutual Fund Schemes & Open – Ended Fund Schemes for the period of 2007 to 2012. I compare schemes by calculating risk & return thereby to measure the performance of different schemes of Reliance Mutual Fund & Open – Ended Fund in equity schemes. In the Equity Fund Schemes, the years from 2009, 2010 & 2012 Reliance Mutual Fund is well performing among others. |Ch. No. |Topic | |Page No. |1. |Introduction | | | | |About Company Profile | | | | |About Topic | | | | |About Reliance Mutual Fund | | | |2. Research Methodology | | | |3. |Data Analysis and Interpretation | | | |4. |Findings | | | |5. |Conclusions | | | |6. |Recommendations | | | |7. References | | | | |Bibliography | | | CHAPTER: – 1 [pic]Introduction [pic] COMPANY PROFILE INTRODUCTION OF INDIA INFO LINE PVT. LTD. |VISION OF THE COMPANY | |â€Å"Vision is to be the most respected company in the financial services space. | | | | | | | | | |INTRODUCTION | |5 paisa is the trade name of the India Infoline Securities private limited, a wholly owned subsidiary of India Infoline ltd. paisa | |holds membership of both the leading stock exchange of India viz. the Bombay stock exchange (BSE) and National Stock Exchange and is | |also a Depository Participant with NSDL and CDSL. It has tied up with the leading banks for funds transfer facilities Viz. City Bank, | |Centurion Ba nk, ICICI Bank and UTI bank the group has a membership of a Multi Commodities Exchange (MCX), National Commodities and | |Derivative Exchange of India (NCDEX) and the Dubai Gold and Commodities Exchange (DGCX). |India Infoline Ltd was founded in 1995 by a group of professionals with impeccable educational qualification and professional | |credentials. India Infoline is listed on BSE and NSE with a market capitalization of over $ 150 million. | |The India Infoline group, comprising the holding company, the India Infoline Ltd. And its wholly owned subsidiaries offers the entire | |gamut of investment products ranging from Equities and Insurance ,Fixed deposits ,GOI bonds , Loan products and other small saving | |instruments. It also owns and operates web sites, www. indiainfoline. om and www. 5paisa. com. | | | |India Infoline is a forerunner in the field of equity research. India Infoline’s research is acknowledged by none other than Forbes as | |â€Å"The best of the webâ₠¬  and â€Å"a must read for investor in Asia†. India Infoline’s research is available not just over the internet but | |also on international wire services like Bloomberg (code: ILL), Thomson first call and internet securities where it is amongst the most| |read Indian brokers. The India Infoline group has a significance presence across the country with over 500 branches in over 300 cities | |across India.All these offices are networked and connected with the corporate office in Mumbai. The group has invested significantly | |in technology and research, the result of which are there for everyone to see. The 5 paisa trading interface is one of the most | |advanced platforms available to retail investor in India. The group has membership on BSE and NSE for equities trading. It has a SEBI | |license for Portfolio Management under which, various schemes are offered, which have been continentally beating the benchmark indices | |since inception. | |THE INDIA INFOLINE LTD. |India Infoline Ltd, being a listed entity, is regulated by SEBI (Securities and Exchange Board of India). It undertakes equities | |research which is acknowledged by none other than Forbes as Best of the web must read for investors in Asia'. Its various | |subsidiaries are in different lines of business and hence are governed by different regulators. The subsidiaries of India Infoline Ltd | |are: | |India Infoline Securities Private Ltd. |India Infoline Securities Pvt. Ltd. is a 100% subsidiary of India Infoline Ltd, which is engaged in the businesses of Equities broking | |and Portfolio Management Services. It holds memberships of both the leading stock exchanges of India viz. the Stock Exchange, Mumbai | |(BSE) and the National Stock Exchange (NSE). It offers broking services in the Cash and Derivatives segments of the NSE as well as the | |Cash segment of the BSE. | |India Infoline Commodities Private Ltd. | |India Infoline Commodities Pvt.Ltd is a 100% subsidiary of India Inf oline Ltd, which is engaged in the business of commodities | |broking. Our experience in securities broking empowered us with the requisite skills and technologies to allow us offer commodities | |broking as a contra- | |Cyclical alternative to equities broking. We enjoy memberships with the MCX and NCDEX, two leading Indian commodities exchanges, and | |recently acquired membership of DGCX. We have a multi-channel delivery model, making it among the select few to online as well as | |offline trading facilities. |India Infoline Distribution Co. Ltd. | |India Infoline. com Distribution Co Ltd is a 100% subsidiary of India Infoline Ltd. and is engaged in the business of distribution of | |Mutual Funds, IPO’s, Fixed Deposits and other small savings products. It is one of the largest ‘vendor-independent' distribution houses| |and has a wide pan-India footprint of over 232 branches coupled with a huge number of ‘feet-on-street', which helps source and service | |custom ers across the length and breadth of India.Its unique value proposition of free doorstep expert advice coupled with free pick-up| |and delivery of cheques has been met with an enthusiastic response from customers and fund houses alike. Our business has expanded to | |include the online distribution of mutual funds, wherein users can view and compare different product offerings and download | |application forms which they can later submit to the product provider. | | | | | | |India Infoline Insurance Services Ltd. | |India Infoline Insurance Services Ltd is also a 100% subsidiary of India Infoline Ltd and is a registered Corporate Agent with the | |Insurance Regulatory and Development Authority (IRDA). It is the largest Corporate Agent for ICICI Prudential Life Insurance Co Ltd, | which is India's largest private Life Insurance Company. | |India Infoline Investment Services Ltd. | |India Infoline Investment Service Ltd is also a 100% subsidiary of India Infoline Ltd. It has an NBF C license from the Reserve Bank of | |India (RBI) and offers margin-funding facility to the broking customers. | |India Infoline Insurance Broker Ltd. | |India Infoline Insurance Brokers Ltd. is a 100% subsidiary of India Infoline Ltd and is a newly formed subsidiary which will carry out | |the business of Insurance broking. We have applied to IRDA for the insurance broking license and the clearance for the same is awaited. | | | | | | | | | | | | | | | | |OPERATIONS | |This is where the 5paisa subsidiary of the India Infoline group, comes in. They operate their functions through their domain knowledge | |and database on in depth research of complex paradigms of commodity kinetics, offers their customers a unique insight into behavioral | |patterns of these markets. Their customers are ideally positioned to make informed investment decisions with a high probability of | |success | |India Infoline commodities private ltd. offers the investors the opportunity to participate in this market by facilitating trading in | |commodities futures.They are the members of Multi commodity Exchange of India (MCX) and National Commodity Exchange of India | |(NCDEX). Their main function is to provide the investor with the complete range of commodities for trading, in both the morning as well | |as evening sessions. | |Trading can be online, over the phone or at their branches. Highly qualified, well trained relationship managers are available at their| |investor points across the country, to help the investor make the best of commodities trading! | |Besides all the above functions, they also leverage their skills in research, investments in cutting edge technology and understanding | |of investor’s requirements to ensure that their needs are taken care of.Thus, they perform the function of adding value to the | |investor’s money. | | | | | | | HISTORY & MILESTONES |Year | | |2011 |Launched IIFL Mutual Fund. | |2010 |Received in-principle approval fo r membership of the Singapore Stock Exchange | | |Received membership of the Colombo Stock Exchange. | | | |2009 |Acquired registration for Housing Finance | | |SEBI in-principle approval for Mutual Fund | | |Obtained Venture Capital license | | | | |2008 |Launched IIFL Wealth | | |Transitioned to insurance broking model | |2007 |Commenced institutional equities business under IIFL | |Formed Singapore subsidiary, IIFL (Asia) Pte Ltd | | | | |2006 |Acquired membership of DGCX | | |Commenced the lending business | | | | |2005 |Maiden IPO and listed on NSE, BSE | | | | |2004 |Acquired commodities broking license | | |Launched Portfolio Management Service | | | | |2003 |Launched proprietary trading platform Trader Terminal for retail customers | | | | |2000 |Launched online trading through www. 5paisa. com Started distribution of life insurance and mutual fund | | | | |1999 |Launched www. indiainfoline. om | | | | |1997 |Launched research products of leading Indian compani es, key sectors and the economy Client included | | |leading FIIs, banks and companies. | | | | |1995 |Commenced operations as an Equity Research firm | | | | PRODUCT & SERVICES Equities our core offering, gives us a leading market share in both retail and institutional segments.Over a million retail customers rely on our research, as do leading FIIs and MFs that invest billions. IIFL has rapidly emerged as one of the premier institutional equities houses in India with a team of over 25 research analysts, a full-fledged sales and trading team coupled with an experienced investment banking team. Private Wealth Management services cater to over 2500 families who have trusted us with close to Rs 25,000 crores ($ 5bn) of assets for advice. Investment Banking services are for corporates looking to raise capital. Our forte is Equity Capital Markets, where we have executed several marquee transactions. |IIFL’s investment banking division was launched in 2006.The business leverage s upon its strength of research and placement | |capabilities of the institutional and retail sales teams. Our experienced investment banking team possesses the skill-set to | |manage all kinds of investment banking transactions. Our close interaction with investors as well as corporates helps us | |understand and offer tailor-made solutions to fulfill requirements. | | | |IIFL Mutual Fund made an impressive beginning in FY12, with lowest charge Nifty ETF. Other products include Fixed Maturity | |Plans. | | | | | | | | | | | | | | Credit & Finance focuses on secured mortgages and consumer loans. Our high quality loan book of over Rs. 6,200 crores ($ 1. 2bn) is backed by strong capital adequacy of approximately 20%. IIFL offers a wide array of secured loan products. Currently, secured loans (mortgage loans, margin funding, loans against shares) comprise 94% of the loan book. The Company has discontinued its unsecured products. It has robust credit processes and collections mec hanism resulting in overall NPAs of less than 1%.The Company has deployed proprietary loan-processing software to enable stringent credit checks while ensuring fast application processing. Recently the company has also launched Loans against Gold. Life Insurance, Pension and other Financial Products, on open architecture complete our product suite to help customers build a balanced portfolio. IIFL entered the insurance distribution business in 2000 as ICICI Prudential Life Insurance Co. Ltd’s corporate agent. Later, it became an Insurance broker in October 2008 in line with its strategy to have an ‘open architecture’ model. The Company now distributes products of major insurance companies through its subsidiary India Infoline Insurance Brokers Ltd.Customers can choose from a wide bouquet of products from several insurance companies including Max New York Life Insurance, MetLife, Reliance Life Insurance, Bajaj Allianz Life, Birla Sunlife, Life Insurance Corporatio n, Kotak Life Insurance and others. |Commodities | |IIFL offers commodities trading to its customers vide its membership of the MCX and the NCDEX. Our domain knowledge and data | |based on in depth research of complex paradigms of commodity kinetics, offers our customers a unique insight into behavioral | |patterns of these markets. Our customers are ideally positioned to make informed investment decisions with a high probability of| |success. | IIFL (India Info Line Ltd) – Corporate Structure [pic] [pic] ABOUT THE TOPIC COMPARISON OF RELIANCE MUTUAL FUND WITH OTHERS† What are Mutual Funds? |A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus | |collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned | |through these investments and the capital appreciation realized are shared by its unit holders in proportion to the number of | |uni ts owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest | |in a diversified, professionally managed basket of securities at a relatively low cost.The flow chart below describes broadly | |the working of a mutual fund: | |[pic] | | Mutual Fund Operation Flow Chart | | | | | | | | | | | |ORGANIZATION OF A MUTUAL FUND | |There are many entities involved and the diagram below illustrates the organizational set up of a mutual fund: | | [pic] | | Organization of a Mutual Fund | | | |ADVANTAGES OF MUTUAL FUNDS | |The advantages of investing in a Mutual Fund are: | |Professional Management | |Diversification | |Convenient Administration | |ReturnPotential | |Low Costs | |Liquidity | |Transparency | |Flexibility | |Choice of schemes | |Tax benefits | |Well regulated | | | | | | | | | |TYPES OF MUTUAL FUND SCHEMES | |Wide varieties of Mutual Fund Schemes exist to cater to the needs such as financial position, r isk tolerance and return | |expectations etc. The table below gives an overview into the existing types of schemes in the Industry. | | | TYPES OF MUTUAL FUND SCHEMES BY STRUCTURE †¢ Open – Ended Schemes †¢ Close – Ended Schemes †¢ Interval Schemes BY INVESTMENT OBJECTIVE †¢ Growth Schemes †¢ Income Schemes †¢ Balanced Schemes †¢ Money Market Schemes OTHER SCHEMES †¢ Tax Saving Schemes †¢ Special Schemes – Index Schemes – Sector Specific Schemes | | | | | | | | | | | | | |FREQUENTLY USED TERMS | |   | |Net Asset Value (NAV) | | | |Net Asset Value is the market value of the assets of the scheme minus its liabilities. The per unit NAV is the net asset value of | |the scheme divided by the number of units outstanding on the Valuation Date. |   | |Sale Price | | | |Is the price you pay when you invest in a scheme? Also called Offer Price. It may include a sales load. | |   | |Repurchase Price | | | |Is the price at which units under open-ended schemes are repurchased by the Mutual Fund? Such prices are NAV related. |   | |Redemption Price | | | |Is the price at which close-ended schemes redeem their units on maturity. Such prices are NAV related. | |   | |Sales Load | | | |Is a charge collected by a scheme when it sells the units?Also called, ‘Front-end’ load. Schemes that do not charge a load are | |called ‘No Load’ schemes. | |   | | | | | High Risk, High Return Many investors purchase a particular stock with the intention of making a big profit over a short period of time. However, this action is not investing, but a pure gambling. The reason for this is that you are never guaranteed that you will get the high returns you hope for over such a short period of time.There may be times in which stocks have put a record on short-term growth, but these occurrences are very rare. On average stocks have returned from 10% to 12%. However, thi s doesn't mean that all stocks return at these rates. The stock market is characterized by the trade-off between risk and return. The higher the risk the investor is willing and able to take, the higher the potential rewards from the investment. Therefore, if a particular investment offers you high returns, it is an indication that it will come with a high risk burden. As part of the selection process, you should determine the risk level of the stock as well as your risk tolerance. If you are looking for high returns you should be able to meet high potential losses as well.Many investors prefer young technology-oriented companies over blue chip companies, because the first provide higher returns than the latter. However, the latter provides its shareholders with regular dividends to compensate for the modest growth. So, the next time you are offered a stock that is expected to triple in value over a short time period, think carefully whether to invest in it, because the chances of i t failing to reach this level of return is extremely high. Risk : Return (finance) the financial term for profit or loss derived from an investment. Return is the benefit distributed to the owner. A person making an investment expects to get some return from the investment in the future. But as the future is uncertain, so is the future expected return.It is the uncertainty associated with the returns from an investment that introduces risk in to an investment. Standard Deviation: For the more technically-minded, Standard Deviation is â€Å"the basic statistical measure of the dispersion of a population of data observations around a mean†. In trading language it’s an indication of price fluctuation; it measures how far the closing price is from the average closing price over a set period. The greater the difference between the closing prices and the average price, the higher the standard deviation will be. The closer the closing prices are to the average price, the lowe r the standard deviation . he relative rate at which the price of security moves up and down. Risk is found by calculating the annualized standard deviation or daily changes in the price. Risk = standard deviation of closing price [for n periods] / average closing price [for n periods] [pic] The variance and standard deviation measure the extent of variability of possible returns from the expected return. Several other measures such as a range, semi-variance and mean absolute deviation have been used to indicate measure risk but standard deviation has been the most popularly accepted measure. The standard deviation or variance however provides a measurement of total risk associated with security.Total risk comprises of two components namely systematic risk and unsystematic risk. Variance: The variance of a random variable is a measure of its statistical dispersion, indicating how far from the expected value the variance is the average of squared deviation about the arithmetic mean f or a set of numbers It describes how far values lie from the mean. In particular, the variance is one of the moments of a distribution. [pic] Risk and Beta: As far as an investor is concerned, the systematic risk is no very important as it can be reduced or eliminated through diversification. It is an irrelevant risk. The risk that is relevant in decision making is the systematic risk because it is undiversifiable.Hence the investor seeks to measure the systematic risk of security. Systematic risk is the variability in security returns caused by changes in the economy or the market. All securities are affected by such changes to some extent, but some securities exhibit greater variability in response to market changes. Such securities are said to have higher systematic risk. A higher variability would indicate higher systematic risk and vice versa. The systematic risk of security is measured by a statistical measure called â€Å"Beta† the input data required for the calculati on for beta are the historical data of returns of the individual security as well as the returns of a representative stock market index.For the calculation of beta, the return of individual security is taken as dependent variable, and the return of the market index is taken as the independent variable. Beta is a score that measures a market stock’ volatility or risk against the rest of the market. It is calculating using regression analysis. â€Å"The Beta of an asset, ? , is a measure of the variability of that asset relative to the variability of the market as a whole . Beta is an index of the systematic risk of an asset†. Risk also implies return. Stocks with a high beta should have a higher return than the market. If you are accepting more risk you should accept more reward as beta measures the Risk of a securities return relative to the market the larger the beta, the security is more risky. A beta of 1. indicates a security of average risk a stock with beta great er than 1. 0 has above average risk. Its returns would be more risky than the market returns. A stock with less than 1. 0 would have below average risk. A security can have betas that are positive, negative or zero. It is a historical measure of systematic risk of systematic risk. In using this beta for investment decision making, the investor is assuming that the relationship between the security variability and market variability will continue to remain the same in future also. Investor can find the best use of beta ratio in short term decision making, where price volatility is important. Beta shows sensitivity of Stock market with that of index. If positive than moves with market. And if beta is negative it has inverse relationship. † Correlation: The correlation is one of the most useful statistics. A correlation is single number that describes degree of relationship between two variables. Correlation is a statistical technique that can show weather that how strongly pairs of variables are related. For example height and weight are related taller people tend to be heavier than shorter people. The relationship isn’t perfect. People of the same height vary in weight and you can think of two people. You know where the shorter one is heavier than the other taller one.Correlation can tell you just how much of the variation in people’s weight is elated to their heights. Compute the correlation value, the formula for correlation are: [pic] Covariance: Intuitively, covariance is the measure of how much two variables vary together. That is to say, the covariance becomes more positive for each pair of values which differ from their mean in the same direction, and becomes more negative with each pair of values which differ from their mean in opposite directions. In this way, the more often they differ in the same direction, the more positive the covariance, and the more often they differ in opposite directions, the more negative the covariance.The covariance between two real-valued random variables X and Y, with expected values E(X) = ? and E(Y) = ? is defined as: [pic] [pic] About Reliance Mutual Fund Reliance Mutual Fund (RMF) has been established as a trust under the Indian Trusts Act, 1882 with Reliance Capital Limited (RCL), as the Settler/Sponsor and Reliance Capital Trustee Co. Limited (RCTCL), as the Trustee. RMF has been registered with the Securities & Exchange Board of India (SEBI) vide registration number MF/022/95/1 dated June 30, 1995. The name of Reliance Capital Mutual Fund was changed to Reliance Mutual Fund effective 11th March 2004 vide SEBI's letter no. IMD/PSP/4958/2004 date 11th March 2004.Reliance Mutual Fund was formed to launch various schemes under which units are issued to the Public with a view to contribute to the capital market and to provide investors the opportunities to make investments in diversified securities. The main objectives of the Reliance Mutual Fund are: †¢ To carry on the act ivity of a Mutual Fund as may be permitted at law and formulate and devise various collective Schemes of savings and investments for people in India and abroad and also ensure liquidity of investments for the Unit holders; †¢ To deploy Funds thus raised so as to help the Unit holders earn reasonable returns on their savings and †¢ To take such steps as may be necessary from time to time to realise the effects without any limitation.Our Schemes Equity The aim of growth funds is to provide capital appreciation over the medium to long- term. Such schemes normally invest a major part of their corpus in equities. Such funds have comparatively high risks. These schemes provide different options to the investors like dividend option, capital appreciation, etc. and the investors may choose an option depending on their preferences. The investors must indicate the option in the application form. The mutual funds also allow the investors to change the options at a later date. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time. Diversified Large Cap |Diversified Theme Based | |Diversified Multi Cap |Sector | |Diversified Mid Cap & Small Cap |Tax Saver | |Index |Arbitrage | |Banking |Balanced | DebtThe aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures, Government securities and money market instruments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. However, opportunities of capital appreciation are also limited in such funds. The NAVs of such funds are affected because of change in interest rates in the country. If the interest rates fall, NAVs of such funds are likely to increase in the short run and vice versa. However, long term investors may not bother about these fluctuations. Ultra Short Term |Money Market Funds (Liquid Funds) | |Short Term Funds |Long Term Funds | |Monthly Income Plans | | Gold Gold is seen as a symbol of security and a sign of prosperity. Indian consumers consider gold jewellery as an investment and are well aware of gold’s benefits as a store of value. Gold is also recognized as a form of money in India, a tradable liquid asset. It is one of the foundation assets for Indian households and a means to accumulate wealth from a long term perspective. Gold investment has been in the culture of Indian tradition and has been on rise amongst the modern investors as well due to the financial uncertainty and inflationary pressures. Gold Exchange Traded Fund |Gold Savings Fund | [pic]Chapter – 2 research methodology RESEARCH METHODOLOGY Problem Statement: â€Å"Comparison of Reliance Mutual Fund with others. † Scope of Study: The scope of the project is mainly concentrated on the different categories of the mutual funds such as equity schemes, debt fun ds, balanced funds and equity linked savings schemes etc. Research Objectives: Primary Objective: †¢ To know the best scheme of Mutual Fund by different parameters. Secondary Objectives: †¢ Understanding the attitude & behavior of the distributors towards Reliance Mutual Fund (RMF). Understanding the competition for the schemes provided by different Mutual Funds Company. †¢ Finding out ways & means to improve on the services by RMF. †¢ To evaluate investment performance of selected mutual funds in terms of risk and return. †¢ Also to analyze the performance of mutual fund schemes on the basis of various parameters. Importance of The Study: This study provides the good comparison to Reliance Mutual Fund for improving in their services and takes a sound decision regarding it. Reference Period: Reference period is 1st January 2007 to 30th December 2012. Research Design: I have selected Descriptive Research Design. Data Collection: Collect data with the help of distributor (INDIA INFOLINE) and Internet.Sample Size 5 schemes of Reliance Mutual Fund & 5 schemes of Open – Ended Funds. Plan for Data Analysis: By stepwise like: †¢ Checking †¢ Editing †¢ Tabulating through Table, Charts & Graphs. LIMITATION OF STUDY: †¢ Data is collected from secondary sources which may not be as reliable as primary data so sometimes it may be lead wrong prediction about future. †¢ Data giving a prediction of market condition but other factors also affect to it so perfect suggestion may not be predicted. DIRECTION FOR FURTHER RESEARCH: The study is held for direct Company and research department head. [pic]Chapter: – 3 Data Analysis & Interpretations DATA INTERPRETATIONThe study is based on the weekly scheme returns of Mutual Fund as well as the weekly return of NIFTY INDEX. The series of scheme returns computed from weekly scheme prices of the nifty index for the period of 5 years from 1st Jan 2007 to 31st Dec 2012 and tak e top 5 Open – Ended Schemes to measure risk and return. Risk is measured by standard deviation, beta, etc. Performance of Reliance Banking Fund & Other: [pic] |Funds Name | Beta |Standard Deviation |Correlation |Covariance |Return | |ICICI Prudential Discovery Fund- |1. 03% |4. 7% |0. 86 |0. 0018 |110. 8% | |Growth | | | | | | |UTI Pharma & Health Care Fund- |0. 78% |4. 7% |0. 65 |0. 0014 |98. 41% | |Growth | | | | | | |TATA Balanced Fund- Growth |0. 77% |3. 9% |0. 93 |0. 0014 |82. 92% | |ICICI Prudential Discovery |1. 03% |4. 7% |0. 86 |0. 0018 |110. 8% | |Fund- Growth | | | | | | |UTI Pharma & Health Care Fund- |0. 78% |4. 7% |0. 65 |0. 0014 |98. 41% | |Growth | | | | | | |TATA Balanced Fund- Growth |0. 77% |3. 9% |0. 93 |0. 0014 |82. 92% | |ICICI Prudential Discovery Fund- |1. 03% |4. 7% |0. 86 |0. 0018 |110. 8% | |Growth | | | | | | |UTI Pharma & Health Care Fund- |0. 78% |4. 7% |0. 65 |0. 0014 |98. 41% | |Growth | | | | | | |TATA Balanced Fund- Growth |0. 77% |3. 9% |0. 93 |0. 0014 |82. 92% | |ICICI Prudential Discovery Fund-|1. 03% |4. 7% |0. 6 |0. 0018 |110. 78% | |Growth | | | | | | |UTI Pharma & Health Care Fund- |0. 78% |4. 7% |0. 65 |0. 0014 |98. 41% | |Growth | | | | | | |TATA Balanced Fund- Growth |0. 77% |3. 9% |0. 93 |0. 0014 |82. 2% | |ICICI Prudential Discovery Fund-|1. 03% |4. 7% |0. 86 |0. 0018 |110. 78% | |Growth | | | | | | |UTI Pharma & Health Care Fund- |0. 78% |4. 7% |0. 65 |0. 0014 |98. 41% | |Growth | | | | | | |TATA Balanced Fund- Growth |0. 7% | |ICICI Prudential Discovery Fund- Growth |1. 03% | |Reliance Banking Fund- Growth |0. 98% | |Reliance Diversified Power Sector Fund- Growth |0. 90% | |Reliance Equity Opportunities Fund- Growth |0. 86% | |UTI Pharma & Health Care Fund- Growth |0. 78% | Standard Deviation: Here, are the top 5 schemes that has moderate & low deviation which is somewhat good. Funds Name |Standard Deviation | |Reliance MIP (Monthly Income Plan) Fund- Growth |3. 10% | |Reliance Pharma Fund- Growth |3. 30 % | |Reliance Equity Opportunities Fund- Growth |3. 50% | |SBI Magnum Balanced Fund- Growth |3. 80% | |TATA Balanced Fund- Growth |3. 90% | Correlation:Here, are the top 5 schemes whose Correlation is High & Highly Moderate. |Funds Name |Correlation | |SBI Magnum Balanced Fund- Growth |0. 95 | |TATA Balanced Fund- Growth |0. 93 | |Reliance Equity Opportunities Fund- Growth |0. 92 | |Reliance Diversified Power Sector Fund- Growth |0. 91 | |ICICI Prudential Discovery Fund- Growth |0. 6 | Covariance: Here, are top 5 schemes who has moderate to low variation compared to others. |Funds Name |Covariance | |Reliance MIP (Monthly Income Plan) Fund- Growth |0. 0004 | |Reliance Pharma Fund- Growth |0. 0008 | |Reliance Equity Opportunities Fund- Growth |0. 0011 | |ICICI Prudential FMCG Fund- Growth |0. 012 | |SBI Magnum Balanced Fund- Growth |0. 0013 | [pic] Chapter: – 5 Conclusions Conclusion Every investor wants to maximize his returns at the lowest possible risk or he tries to minim ize his risk keeping his returns equivalent, both gives him higher profits. In evaluating mutual funds, investors usually consider only the past returns generated by the fund without considering the risk associated with it. From the project, I conclude that, After analysis of all the schemes of reliance mutual fund & open – ended funds, there are 5 schemes that as high risk involved but there is also high return accumulated with it. These schemes are Reliance Banking Fund,Reliance Diversified Power Sector Fund, Reliance Equity Opportunities Fund, ICICI Prudential Discovery Fund & UTI Pharma & Health Care Fund. Theory says that risk and return go hand in hand. And we can see that in these 5 schemes. Considering all the factors, the best scheme is Reliance Pharma Fund & Reliance MIP (Monthly Income Plan) Fund compare to all other schemes. [pic] CHAPTER – Recommendation †¢ After analyze the Risk and Return of all the schemes of Reliance Mutual Fund & Open – En ded Funds, I recommend that the Reliance Pharma Fund & Reliance MIP (Monthly Income Plan) Fund for the low risk takers and Reliance Banking Fund & ICICI Prudential Discovery Fund for the high risk takers.These schemes gives the highest return but there is also high risk compare to other schemes included in Reliance Mutual Fund & Open – Ended Funds. Those people invest in this schemes who believes that â€Å"High Risk, High Gain†. †¢ I also recommend that the SBI Magnum Balanced Fund and TATA Balanced Fund schemes are providing less return & having high risk so; there is highest risk to invest in these two schemes. [pic] Chapter: – 7 Bibliography ? www. mutualfundsindia. com/rankfund. rpt. asp ? http://www. personalfn. com/tools-and-resources/mutual-funds/nav-history. aspx ? http://www. indiainfoline. com/Aboutus/ ? http://www. reliancemutual. com/NAV/NAVDownload. aspx [pic] ———————– DECLARATION ACKNOWL EDGEMENT EXECUTIVE SUMMARY TABLE OF CONTENTS

Childhood Obesity Research Paper Example | Topics and Well Written Essays - 250 words

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Were the 1920s a period of cultural as well as political conservatism Essay

Were the 1920s a period of cultural as well as political conservatism - Essay Example The US enjoyed much prosperity after World War I and throughout the 1920s until the great depression of 1929. The decade was full of optimism and was termed the ‘roaring twenties’. The decade was marked by conservatism on both the political and cultural level; however it can be shown that there was liberal ideology that also played a part in this historical era. After the war there was a rising intolerance to difference, waspification was at the forefront of a lot of ideology culturally and politically, restrictive immigration laws and prohibition all marked the era. The decade was seen as a decade of serious cultural conflict.On the 18th August 1920 Tennessee became the last state that was required to ratify the Nineteenth Amendment thus giving women the right to vote. A new woman was born and it became more acceptable socially for women to smoke and drink openly in public. It was fashionable for women to cut their hair short, wear makeup which had always been deemed to mean a woman was loose and take risks. These women were known as flappers and jazz was the music that they danced to, a sound that the older generation considered to be wild. In the May edition of the Atlantic Monthly it was written "Flappers trot like foxes, limp like lame ducks, one-step like cripples, and all to the barbaric yawp of strange instruments which transform the whole scene into a moving-picture of a fancy ball in bedlam." 1 The war had generated a generation of men and women who broke free from social norms 1 Baughman, Judith S., ed. American Decades: 1920-1929. New York: Manly, Inc., 1996. and values finding it difficult to return to structured conservative life. 'They found themselves expected to settle down into the humdrum routine of American life as if nothing had happened, to accept the moral dicta of elders who seemed to them still to be living in a Pollyanna land of rosy ideals which the war had killed for them. They couldn't do it, and they very disrespectfully said so.'2 The liberation of the flappers was a stark contrast to the conservative cultural nature of the times. Conservatism was at the forefront of the Klu Klux Klan (KKK), an extreme right movement that encouraged racial discrimination and continues to do so to this day. The KKK originated in the late 1800s and rose again to acute heights in the 1920s. After WWI the economy was booming and the Great Migration of Southern blacks and whites began. The KKK grew rapidly in reaction to the immigrants and migrants. It was enhanced through the labor tensions occurring as men returning from the war were attempting not only to new social norms but reentering the workforce. The KKK a white supremacy organization reacted aggressively and advocated racism, anti-communism- anti-Catholicism, nativism and ant-Semitism. Lynching' and violent attacks on houses of those they opposed was at a height including intimidation through ceremonial cross burning. The KKK used its far right ideology in a tradition of lawlessness. 2 Allen, Frederick Lewis. Only Yesterday: An Informal History of the Nineteen-Twenties. New York: Harper & Brothers Publishers, 1931. The KKK peaked during the 1920s with approximately 4 - 5 million men who believed in this extreme conservative ideology. 3 William J Simmons founded the second KKK in 1915 and under his leadership Klansmen became accuser, judge and jury, tarring and feathering Negroes and white men and women if they were any less conservative than their ideals. Jewish shop keepers were tortured being accused of international financial conspiracies and Catholics were accused of conspiring against the US with their Roman Catholic beliefs.4 The KKK took waspification to the extreme. The organization dwindled with the arrival of the Great depression in 1929 as members stopped paying their dues in a time of financial insecurity

Time for an Organizational Change Assignment Example | Topics and Well Written Essays - 500 words

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Scientific Misconduct Essay Example | Topics and Well Written Essays - 500 words

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Women in the Workplace Essay Example | Topics and Well Written Essays - 250 words

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What best explains people's willingness to work hard Essay

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Corporate Social Responsibility Movement Essay Example | Topics and Well Written Essays - 2000 words

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The U.S. Policy toward Native Americans in the 19th Century Article

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Frankenstein V Bladerunner Essay Example for Free

Frankenstein V Bladerunner Essay In what ways does a comparative study accentuate the distinctive contexts of Frankenstein and Blade Runner? The comparative study of texts, allows audiences to investigate the changing nature and interpretation of issues relating to humanity as they are interpreted in different contexts. Context allows audiences to relate to and understand the thoughts, decisions and actions of individuals within a text. Context provides the opportunity to develop and shape a new genre or interpret an existing genre in a new way. The comparative study of context allows for audiences to compare the changing values of societies over time. Literary techniques such as allusions, imagery and dialogue is used to shape context and can be used by composers to entertain, inform or persuade an audience or highlight and provide insight into interesting or noteworthy points. Mary Shelley’s Frankenstein (1831) and Ridley Scott’s Blade Runner (Directors Cut-1992) individually utilise literary techniques to establish the context of their text within its time. The comparative study of these two texts highlights how texts are inevitably a product of their time however both texts present issues that explore the intricacies and complexities of all human experience. Shelley and Scott utilise distinctive contexts to explore the nature of humanity and ultimately question what makes us human. Frankenstein and Blade Runner exist to highlight how context affects the perceptions of the audience in regards to how a text is received over time thus highlighting how a comparative study of texts can accentuate distinctive contexts. The comparative study of texts depends on the context used to establish a relationship with the audience. Mary Shelley’s fiction novel Frankenstein (1831) is a hybrid product of 18th century Gothic-Romanticism. The text reflects recent challenges to the social order as a result of the English industrial revolution and the French revolution during the second half of the 18th century which highlighted the empowerment of the working class. Frankenstein is a work of epistolary prose fiction that is explored through multiple narrators such as the ‘monster’, Victor Frankenstein and Robert Walton. Frankenstein exists as a didactic tale that explores the morality of trying to subvert god thus providing a lesson in patriarchal hubris highlighting the arrogance of scientific discovery without any consideration of the moral or ethical implications. Frankenstein consequently explores the nature of obsession in undermining parental and moral responsibility and evoking fear in the creation-fear of the world, fear of man. Subsequently the leading antagonist of Blade Runner, Roy Batty, further elucidates the arrogance of obsession as he explains his plight, stating, ‘Quite an experience to live in fear, isnt it? Thats what it is to be a slave†. Batty provides insight into the failure of creators to understand the emotional development of the creation which leads to its isolation and fear, causing the ensuing destruction of the ‘natural order’. Frankenstein utilises the characterisation of Victor, ‘I have described myself as always having been imbued with a fervent longing to penetrate the secrets of nature’ to explore the obsession for knowledge that formed part of Shelley’s context. The text therefore reflects the influences of recent scientific development such as Galvanism and evolutionary thought. The comparative study of contrasting textual forms allows context to influence different interpretations of a text. Ridley Scott’s speculative science fiction film Blade Runner (1992) employs extensive mis-en-scene to subvert the audience’s sense of setting and history-a suspension of belief- enabling contextually dependant perceptions of the film. The films’ setting reflects its context as it echoes the concept of imperfect vision that conceptualises the short-sightedness inherent in the pursuit of perfection. The film juxtaposes the seemingly inherent ethical pretexts of discovery with the scientific community that seeks to create a perfect race, thus Blade Runner’s scientific context becomes reminiscent of fascist Nazi Aryan ideology, IVF programs and the Human Genome project. Conversely Frankenstein utilises its sublime Swiss setting to increase the plausibility of the themes which allow them to resonate with audiences as they relate to the texts context. Contrasting textual form is used to highlight how the context of each text enables their concurrent themes to resonate and remain relevant to 21st century audiences. Distinctive contexts are accentuated through similar theme content. Frankenstein and Blade Runner similarly indicate that efforts to ‘defy’ the natural order are responsible for the enduring sense of misery and alienation that sustains the overall melancholic tone of both texts. Animal Imagery is used extensively within Blade Runner to reveal the primal nature of raw, native emotion of the ‘replicants’, a reflection of parental neglect which renders them incapable of understanding their emotions. Similarly Frankenstein juxtaposes the idyllic nature of childhood with the abandonment of parental responsibility to highlight the confusion behind the monsters ‘ugly’ exterior, therefore provide insight into creations’ place as the ultimate innocent of both texts. Frankenstein and Blade Runner establish the creations’ as the victims of both physical and emotional negligence who ultimately confront their creator to correct the flaw which isolates them from the world. Frankenstein and Blade Runner similarly utilise content to highlight the creations as the source of destruction to reveal the true nature of monstrosity, the senseless creators. The pursuit of knowledge at the expense of a moral framework is identified as the creators’ ultimate fatal flaw. As the creations of both texts reflect upon and highlight their unnatural qualities, they reveal how their creators can no longer attain the sublime. Victor highlights his exile from the sublime as he recounts how his actions and subsequent inaction ‘deprives the soul both of hope and fear’ contributing to his demise. Frankenstein and Blade Runner similarly evoke a development of critical literacy and knowledge of genre at a macro level that enables distinctive contexts to gain prominence and influence the understanding or interpretation of their respective genres as a whole. The contextualisation of Frankenstein and Blade Runner is used to provide insight into the reception of texts as it challenges the contemporary values of the audience. Frankenstein draws parallels with Greek mythology as it establishes Victor as a modern Prometheus while also addressing elements of Jewish mysticism as the ‘monster’ exhibits qualities similar to the golem of Prague. The text is also reminiscent of Godwin and Wollstonecraft, however, is inherently less optimistic about society’s realistically attainable level of perfection, both physically and economically. In stark contrast, Blade Runner addresses perfection as achievable in a commercial sense ‘commerce is our goal here at Tyrell’ however as Deckard states ‘nobody is perfect’ he highlights the shortcomings of forgoing the moral obligations inherent in the pursuit of commerce which ultimately enable an evaluation of humanities moral boundaries. Blade Runner pays homage to the representation (particularly through film and television) of the 1950’s detective film-noir to reveal a rendition of post-modern expressionism. The reflection of commerce as a postmodern cultural imperative establishes the relationship between socio-economic status and pastiche consumption. Consequently, humanity is ‘created’ and traded with this ‘transformation of everything into commodity’ (Byers, 1990) becoming a reflection of the context of Blade Runner following the collapse of the Soviet Union and the economic strength of the United States during the films production. In essence the distinctive context of Frankenstein and Blade Runner reflects the interpretation and perception of the genre, textual form and content over time. The comparative study of these distinctive contrasting contexts allows audiences to reflect on the enduring power of parental and moral responsibility, deliberate action or inaction and the features that define humanity. The key reflections in which the audience understands how they are positioned by composers as a result of their context is especially important in allowing moral assessments throughout the text. Frankenstein and Blade Runner are two texts who successfully explore the nature in which humans interpret their humanity as a response to a contextualised stimulus. Blade Runner ultimately reveals the establishment of emotional understanding as a definitive characteristic of being human, while incidentally Frankenstein explores the features of humanities collective consciousness which enable an individual to belong through emotional dependence. The comparative study of Frankenstein and Blade Runner allows audiences gain a further understanding into the way contexts are accentuated through assessments of conceptualised fiction which explore the themes and issues which forms the unique identity of humanity.

Customer Service Plan Essay Example for Free

Customer Service Plan Essay Customer service and commitment to our customers has been the driving force behind our brand. Widget strive to get it right first time, everytime.Incases where things don’t come out right we believe our professional workers will strive to correct the problem and our customers have the right to know what level of service they can expect from us all the time even in these times when we fall short of the very high standards we have set ourselves. Through our Vision and mission statement we make a commitment to our customers both internal and external. Mission Statement Passionate about exceeding the delivery of our customers’ service expectations by providing the very best in professional, value engineered widgets through our ever growing nationwide team of professional, caring staff. Vision Statement To be Australia’s number one national provider of quality widgets by empowering our staff to deliver our customers with the very best in quality, value and service. Our Product standards Our product is manufactured in strict accordance with the Australian quality standards and also taking into account the use of which our customers will subject our product. Our internal policies and quality standards support the high quality standards set in our vision and mission statement.Our product specifications are clearly presented in all our packaging materials and tested during the production process to ensure all tolerance limits are adhered to. Our main product is 12 mm black hole plugs which are made of plastic to cover ,conseal and decorate 12 mm diameter holes in cabinets,furniture,window frames,vinyl fences and elsewhere.Fits any 12mm diameter holes. These hole cover widgets practically work anywhere indoors and out .These are made from our factory with high –impact injection molded  plastic. These can come from different sizes as requested by our customers. All our products have a small tolelance limit of +1% or -1%. Specifications. Our product range will have the following features. Color:it will come in the range of black ,white or grey Fits hole size :12mm or as requested by customer Diameter:12 mm Length: 6mm Top diameter:15 mm Material:Polypropylene. Tolelance limit:plus or minus 1% Widgets outlines its description of its product in the policy and communicated to the customer to allow the customer to make any queries or complaints incase the product received its off specification. Pricing Widget ensures that its products are properly priced so that customers are able to afford the goods as well as profitability is maintained to allow the company invest in the quality and standards initiatives of the products. Widgets pricing is well thought as we do in other sectors of the business like marketing and branding, the price the customer sees on display is the price customers pay. There are no hidden costs. Our standard product 12 mm fits hole size will cost 12AUD /dozen and customers are requested to enquire from the customer service team for prices of any changes requested to the standard product. Delivery of goods Widgets aim to deliver all orders made either online or face to face within three days of the order being made.We aim to have a delivery process which ensures a reliable, secure and efficient service. If delays occur during deliveries and extra time may be required, customers will be contacted urgently to alert them of the next delivery times or else they can call our Despatch department directly on 1300 880 370. One day prior to your delivery we will SMS all of the important delivery information about your order to your mobile. If all the information is correct you will only need to text back OK. If there are any details that are not correct or you wish to change your delivery date please ring us on 1300 880 370. In order to offer our customers a better delivery service these terms and conditions replace any delivery and pickup conditions stated on your order form. TERMS CONDITIONS: 1. It is important that someone is at the receaving end to receive delivery of your purchase on the designated day. No specific time of delivery can be provided. A four hour time frame will be advised but cannot be guaranteed. 2. A minimum delivery fee of $75 (outside the Metropolitan area) is payable separately to the Carrier in cash or bank cheque. Delivery is free inside the Metropolitan area 3. Cash or bank cheque must be used to pay any balance of monies owing at time of delivery. Personal/Company cheques will NOT be accepted. For your convenience we can accept credit cards in store 48 hours prior to delivery, surcharges may apply. 4. Once arrangement for a delivery day is confirmed, there will be a minimum re-delivery charge of $75 if no person is at the delivery address on the day of delivery or the delivery is cancelled by the customer on day of delivery. 5. When receiving goods, please inspect thoroughly before signing Received in good order as any claims for scratches, marks, dents or other damages will not be accepted once signed. 6. Failure to collect or take delivery of the goods beyond 21 days from the date of contact by our despatch department will result in the sales order being cancelled and all monies paid will be forfeited. 7. All original packing wrapping will be left at the premises (delivery address). CUSTOMER PICK UPS Customer collection of goods purchased from Widgets stores can also be  collected by the customer in any of our distribution centres.. The customer must contact the Delivery department prior to pick up on 1300 880 370 to make an appointment. Same day pickup is not available. Pickup times at Distribution Centers Customers: Monday to Thursday 10:00am 12:30pm 1:30pm 3:00pm Carriers: Friday ONLY Other Policies and Procedures Customer needs Widget believes that it is important that customers needs are regularly reviewd to ensure that its products are inline with the changing times. Therefore time and again Widget carries out research to identify these needs and implement changes identified. Widget uses the RATER model to identify its customers needs since customers when assessing what they want will consider the reliability, assurance, tangibles, empathy and responsiveness as they are being assisted. Using the RATER guide Widget will use the following techniques to gather customer needs Informal face to face discussions for its key customers Telephone interviews Email surveys Suggestion boxes Internet surveys. All information gathered for customers is protected by the Privacy act 1988 including how the information is collected,used and disclosed,its accuracy and how securely it is kept and general rights to access that information. Widget has a dedicated Customer service research officer who is responsible for ensuring that all customer data collected is securely kept and used for  its intended purpose only. Complaints and feedback If you have a complaint or if there is anything we can help you with, please let us know.Widget values feedback and appreciate the opportunity to follow up. Widget deals with all people from diversi background and does not discriminate anyone on the basis of age ,race,disability or sex. Our policy take into account the Age discrimination act 2004,Australian Human Rights Commission Act 1986,Disability Discrimination ACT 1992,Racial discrimination Act 1975 and Sex Discrimination Act 1984. There are a number of ways you can contact us to lodge your complain and includes our Email at Widget123.gmail.com or phone at 08100300 or mail at Widget Australia,3/77 Manning street ,Bentley ,6102. Or you can also connect with us via Twitter or facebook Complain resolution process and timeframes Once we receive your complaints, we may ask you to provide supporting or documentation to aid us in investigations. This may include proof of identity, statutory declaration, receipts and so on. We aim to resolve complaints within 5 working days, however please note that some complaints may take longer to investigate especially matters to do with international orders. Managing records and data. Widgets collects alot of data of customers including physical addresses, names,date of birth and many more information. The Customer service research officer is responsible for keeping the data securely and is sorted by our secure information technology section. The Privacy Act 1988(the Act)  governs the obligations and responsibilities of companies in relation to the management of official records. Under this Act, each company has an obligation to maintain official records in its custody in good order and condition. This obligation applies not only to the capture, storage, maintenance and disposal of physical records, but also to records in electronic format. Widget policy is governed by this act and all measures necessary are taken to ensure that compliance is maintained.

Strategic Management; shaping the long-run performance of the business

Strategic Management; shaping the long-run performance of the business Introduction Strategic management Strategic management can be described as set of executive action and conclusions that helps in shaping the long-run performance of the business. It is inclusive of environmental scanning, both internal and external environment, and strategy formulation, implementation of strategies, assessment and control processes. Henceforth, strategic management highlights on the evaluation and monitoring of the external threats and prospects in the background of organizations inner potencies and weaknesses (Karami, 2007). 1. Strategic Corporate Development History Honda Company Honda, being the largest producer in automobile industry, was founded in the year 1948 by Soicharo Honda as a motorbike company but it remained self-determining since then. The company identifies that engines are their core competency and built their organization around its core competency (Frank, 2003). Now, Honda is involved in the production of light trucks, motorcycle, automobiles, lawn movers, generators and personal watercraft; these all are built keeping in mind the core competency to produce the high quality goods and services. In contrast to other companies like Toyota or General Motors, Honda has not adopted any strategic alliances and is not involved in any merger process, it is moving ahead independently. It also provides customer-in- house financing schemes (Nelson, 1998). Their present field informs that Honda covers more than 400 associates and auxiliaries that generate their universal network leaded by Takeo Fukui as chief executive and noticeably traced a total of US$94.24 billion proceeds in 2007 whilst making use of 16000 populous and even more. With apparitions of worth formation, globalization, and pledge for the outlook, they put forward an extensive diverse range of products arraying from minute general-purpose engines and scooters to forte sports automobiles. Today, their dependability in providing goods of uppermost superiority that engenders new standards and sane price constructs them dazzling in terms of universal customer contentment. Even the reasonable price and high quality seems to be the two characteristics that also hand round as their gung ho periphery. Honda has taken the steps towards the long term strategic approaches, producing the very first hybrid electric cars and is ready to continue with the leading of automobile industry. The company is also set to research for the hydrogen powered cars. Traditionally, Honda aims to expand the facilities devoid of building of any excess capacity. Any requirement for the additional capacity in Honda, calls for the building of a new plant. Nonetheless, company is ahead for bringing innovative products then its competitors and aligns new factories ahead of the schedule time. Evolution of Strategic Management in Honda Initially it was believed that strategies in organization cannot be implemented successfully if the company expands itself, environment modifies considerably and if there is any increase in the layers of managers. Four phases were formed: Phase 1 it consists of the planning on basic financial matter and is aimed to meet better control on the operation process by meeting the requirement of the budget. Phase 2 in this planning is based on the forecasting and seeks to meet effective growth by predicting the future circumstances. Phase 3 it focuses on the strategic planning or the planning based on the external operations. It aims to meet more responsiveness in the market and entails all the competitive advantage by thinking strategically. Phase 4 this phase deals with the strategic management and aims to build core competencies in the organization and planning for the successful future by managing the resources. Phase 4 is suggested to bring the evolution of strategic management in the Honda including the implementation of the strategies, evaluation and control whilst focusing on the principles of Phase 3. Concepts of strategic management The concepts of strategic management are in relation to the corporate sector and its each part is concerned with the goals and objectives of the business (Hitt, 2009). The concepts of strategic management are even distinguished into various segments: Objectives of a Business Plan of Attaining Business Goals Evaluating the entire Process Objectives of a Business It is indispensable for each manager to be acquainted with in advance the situation which it wants to lead in the future within a given time period. Devising specific goals or objectives is central for the progress of every organization. Several factors are to be considered before devising the goals, these includes client base of the company, supervision of the available resources, creation of the company and so on. Business Plans After the formulation of goals, the management or the administrator is prepared to make a plan to accomplish the goals which are being formulated. This plan of action is known to be as business strategy (Aaeker, 2001). The main objective of this plan is to utilize the resources judiciously to offer maximum advantage for the functioning of the business. Evaluating the business Process After the framing of the definite business strategy or plans and its application in the association, the evaluation and assessment of the process is required. This is necessary so to know the specific changes that are needed to alter in the procedures or operations that are being applied by the business plans (Combs, 2000). If the changes are not taking place appropriately or are not satisfactory, then the modifications can be done in accordance with the present situation. Imperative Aspects Related to Strategic Management Concepts Many of the attributes are there that have given importance as they are central to the concepts of strategic management. In actual, no businesses procedures cannot be similar and minute differences are there that distinguishes the business processes. Thus, objectives and goals are different for every organization. Although, the strategies or plans formulated for the long-term and short term purpose is different and have to be put into practice individually. This is the reason why every goal and objective of the business is different. Identification of the opportunities and risks is another important element that is needed to be considered for the study of strategic management concepts. If every business identifies the external opportunities correctly, then they have great chances to go ahead in the market. The owner or the entrepreneur of the organization should be responsive to the potencies and flaws of the association and of the personal skills of employees that are working in the ir organization. The better use of the external opportunities or sudden changes in the industry or market proves to be the major source for the identification of strategic management concepts. Strategies adopted by Honda Deliberate strategies It involves the corporative decision making process and only few people have clear cut individual responsibilities. Emergent strategies This entails the development of innovative technologies for the efficient utilization of the fuel and available resources. Also, Honda has developed new models so as to meet the demands of customers which keep on changing basically in design, environmental responsibility and fuel efficiency. Formulation of better strategies for the operation process like Kaizen, JIT etc. and creation of new and innovative markets assumes greater possibilities of higher risk. HONDA: Reconciling Dichotomies Right-first-time Principle Operation management is purposely a change procedure. It includes a sequence of alteration activities and tasks for changing inputs into outputs that are ready to be sold in the market. The right-the-first principle suggests that any result of the process should be error free so as the further processes which are based on the predecessor tasks are not burdened with errors and there need not to be made any corrections to it or waiting for the reworks that can cause the delay of production works as well as increase the operational costs and the opportunity costs of sales that are earned from the customers which are not willing to wait an switch to other brands. Thus the aim centers on the operational efficiency which can be entailed by not wasting time and the resources, thereby increasing productivity. It also permit the organization to control the inventory accurately thus saving on costs and money. If this principle is performed at repetitive speed in all the tasks, then the final outcome so achieved will be error free. According to this strategy, focus is on the process related capabilities. Build-in quality The strategy of build in quality focuses on the effectiveness and efficiency of the recital result of associate alteration actions and tasks. The actions of efficiency are customer-defined standard of performance. This can be achieved by the break down of the total standards of performance This is achieved by breaking down the aggregate standards of performance measures as expected (if not demanded) by customers to more granular metrics in each sub activity/task so that value-adding can be realized at every step of the way to give a bigger accrued value by the time the operations process reaches its end. This not only saves costs, but may exceed (not merely meet) the customers expectations. In this sense, build-in quality emphasizes more on product-related capabilities that are ultimately measured by the customers. 2. Current Strategic Situation Strategic management has now developed as a primary value that assists Honda in operating successfully in such a dynamic and complex environment. It is required that the organization be less beaurocrative and have to be flexible so as to stand in the complex environment. Honda is required to develop strategic flexibility which means the capability to shift from one strategy to another. Strategic flexibility stresses on a long term commitment for developing and nurturing of the available resources. It even demands that the organization has to become a culture organization which is skilled at engendering, taking and transferring of acquaintance as well as it needs to demand the alterations of the actions to outline new technology and knowledge. Employees of the organization are required to take part in the process of strategic management, assists the managers in scanning of the environment or they can even suggest the ideas for changing or altering the strategies so that organization should be able to take advantage of the external potencies. Strategic management in actual deals with the future aspects of the organization and is inclusive of three main factors: : Unusual strategic decisions these do not any models to follow. Consequential strategic decisions these have committed themselves to sizeable resources and stipulate a great amount of assurance. Directive strategic decisions- these set standards for dwindling the verdicts and future proceedings in the intact strategic process. The more typical approaches for the decision making process are planning, adaptive and entrepreneurial. However, planning mode is said to be the more rational approach and thus helps in better decision making process. Eight steps are proposed by Honda to be followed in the decision making process while keeping in mind the environment: 1. Evaluation of present performance outcomes 2. Estimation of the Corporate Governance 3. Inspection of the peripheral environment 4. Examination of strategic factors 5. Generating, examining and choosing the best substitute strategy 6. Execution of the selected strategies 7. Finally, the assessment of the applicated strategies Environmental scanning and analysis of Honda Company Environmental scanning demands the observing, evaluating, and broadcasting of the information that is being collated by the external and internal environment of Honda so as to keep customers within the organization. It can be termed as a tool that corporation utilizes for ensuring long-term health (Ahmed, 2008). Environmental scanning by Honda requires the identification of environmental variables that can manipulate the future decisions of the organization. These forces are inclusive of political, economic, social and technological factors. Scanning of social environment requires evaluation various possible strategic factors. The social factors are numerous when Honda came to realize that every country has its own set of unique societal features which seems to be different from the respective country. Honda categorized the overall social environment into four different sectors and focuses on the scanning of each sector in significance to corporate sector. Scanning of the task environment Hondas scanning of the task environment involves all the relevant factors. This kind of analysis is presented in the form of individual repots that are being written by various people of the organization. All the reports are then summarized and is submitted to the upper level of hierarchy i.e., top managers for the effective decision making process. If there is any report regarding the development of a new product, then the top management will send memos to all the people of the organization so that they can look for and can report to the management in respective product areas. Porters 5 Forces analysis of Honda Threats of New Entrants In the 1970s and the 1980s the threats of new entrants in major western economies was fairly low, with established automotive industries. The Big Three namely: Ford, GM and Chrysler, in the economy of North America were thought to be safe. But this contemplation was proved wrong with the establishment of the first ever plant of the Honda Motor Co. in Ohio. The market share of the North American companies began to undermine with the emergence of those foreign competitors possessing better operational management skills, capital and the required technologies (Porter, 1980). This was proved true to the rest of the world with the risky stepping of Honda in the European and British markets. Power of Suppliers The supply business of the automobile industry holds many firms and is quite fragmented all-throughout numerous regions of whole of the world. In order to purchase a majority of their products, ample of the suppliers rely solely on a single or two automobile manufacturers. Just in the off chance if the automobile companies came up to a decision of switching the supplier, it could prove to be extremely devastating to the business of the previous supplier (Porter, 1987). As a result of which, no wonders, that the suppliers cleave to very petite supremacy because the manufactures tend to order in volume and hence are enormously inclined to the requirements and the demands of the automakers Power of Buyers Went unchallenged, historically, the bargaining powers of the automobile manufacturers. Ample of the customers initiated looking forth to other alternatives with that of better and stylish designs, better fuel efficiency and better of technology because the national automobile manufacturers could no longer woo them and hence they became disenchanted. The foreign competitors endowed the displeased customers with the above mentioned attributes (Porter, 1985). On the very other hand, although being very sensitive towards price, the customers, individually, do not possess much of the supremacy of buying, the sole reason being that they never buy cars in big bulky volumes. Availability of Substitutes Other means of transportation need to be considered as substitutes or alternatives, besides the posing threat of someone purchasing a different automobile. The likelihood of the masses choosing the bus, airplane or the train as the mode of reaching to their destinations also needs to be looked at. People are more prone to looking forward to alternative modes of transportation if in case the cost of operating a vehicle is at a gigantic hike. The decision of buying a vehicle of the consumer is highly affected by the prices of the fuels. Though trucks and sport utility vehicle have a tendency of guzzling more gas as and when compared to those light-weight trucks and sedans, they are the ones that provide with a privileged profitable margin. Money, time, personal convenience and preference as well in the industry of auto travel are the things that should be considered when it comes to determining the availability of alternative automobiles or substitutes. The trend that penetrates in the present era is towards more environmentally friendly, fuel efficient and safe cars. The cars with these attributes should be feasible to the pockets of the globally increasing middle-classes. Competitive Rivalry Because of the high cost of competition prevailing in the automobile industry, the industries which are highly competitive generally gross petite returns. Auto industry is regarded as an oligopoly an industry which assists in nullifying the effects of the competition based on price. The automakers comprehend that competition based on price does not necessarily lead to an increase in the marketplaces size. Historically, though the automakers have tried hard to avert such competition but recently the competition has rather been more intensified. In order to fend off their foreign competitors, the automakers established more traditionally like the American, British and the European are progressively acquiring or merging more with their foreign counterparts from Korea (Daewoo and GM) and Japan (Renault and Nissan). Nevertheless, the automakers that are still emerging are also undertaking the opposite tasks such as India (Jaguar and Land Rover from Ford acquired by the Tata Enterprises) and China (Volvo from Ford and Geely). When there is a constant change in market, the strategies to be formed should be flexible enough to meet the changes effectively. With the use of IT, the key element is the planning process. 3. Strategic Direction For The Future In accordance of Japanese culture, the leadership style used by the Honda Company is effectual particularly for the achievement of the greater levels of employees satisfaction and his commitment, delegation and motivation so as they can contribute to the process of decision making and bring in new ideas. Chief recommendation to Honda is that they can apply American style of leadership process so that they can enhance the encouragement of collative decision making process. The leaders of Honda are required to be effectual in their respective fields. The harmony among the groups is being identified as one of the main requirement of the organization. All the employees of Honda are bonded with human relations so that they can be familiar with the lifestyles of their subordinates and have proper understanding of their acts, thereby giving lead to the formation of leadership techniques. Honda has all the important or vital tools for recognizing the situation or problem areas in the workpla ce. Being the largest producer or manufacturer of motorbikes and cars, Honda has maintained their high quality products in context to the beliefs set by Soichiro Honda. The beliefs of Honda revolve around four basic provisions which are: (1) Great amount of potential for the organization and for its suppliers, (2) The transmitting of resources that is required for the completion of the processes. (3) Commitment for the support of group effort and teamwork, (4) Unstoppable attention is being featured in Honda. All the processes and strategies of Honda show the performances of the employees and business in relation to the strategies for advertising and marketing. Honda, is different from all the other automobile companies as it has set its own beliefs and values which directs the organization to act at all levels in the company. With this, the accomplishment of objectives is achievable and thus creating brand name. Recommendations The better way to provide cost effectiveness is to put the available resources in such a manner that they are judiciously used while fulfilling the requirements of the job at the same time. Event he rising amounts of capital adds to the problems of the company. With the increase in prices, the company is required to go with the gush. Therefore, the chain of demand and supply is affecting to the intact organization. As long as Honda sticks on the accessible resources, the chances of steadiness of finance are sure. In relation to the human personnel needs, Honda is required to work with multi-talented personnel who are capable of performing tasks of all the types in different situations and have abilities to grab the external opportunities. The potencies of growth and development are affluent. Besides, the cost of unlock communication, collaboration and optimistic attitude is replicated. Thus, Honda should encourage the cost management or its administration in the organization. Also, t he sharing of resources including raw materials and semi finished goods can cause the reduction in cost which is no less than to the merged cost. Even the commitment of Honda to the teamwork and cooperation has enabled the company to find wider prospects that can lead the company to prolific economics undertaking and attainment of human ideas. Even the strong communication and networking with the suppliers can lead to the continual growth of the branches and dealers. The plans for expansion by Honda tend to be engulfed with risks and uncertainties but are one of the prominent strategies (Cokins, 2009). All these are considered most favorable because of the economies of scale, scope and cost efficiencies but the greater threat is posed by the investment part. With the development of subsidiaries, joint plants and regional offices, the paths for grants for exports and licensing have opened up. The unchangeable consideration to the plans of the company is still effective in many ways. If we look at the environmental friendliness aspect of Honda, then the company has worked hard for enhancing the environment and contributes a lot to the safety purpose of its products. This opens up the paths for the brand recognition and loyalty. Even, Honda is constantly keep on doing the research and development work and checks out the emerging trends that can bring in the innovation in the company. Also, the future planning is done in advance for setting up of the plants and regarding products. Besides this the company is able to address the problems regarding the satisfaction of the customers and environment. The advantages for preserving the international viewpoint generate wider scope for the activities like sales and operational, it even provides brand name, awareness and ability to complete globally. But the main problems that can be affective are the stiff competition, unstable economy, diverse locations and functions. But if the company focuses on the appropriate functioning of the functions of administrators, on the strategies and dedication of the company for supplying products of high quality that too on the reasonable price with 100 percent guarantee of customer satisfaction, then it is likely to be successful in the future. Focusing on the reduction in cost, it need not seems to be the problem for the Honda. As it is analytical in their vital viewpoint, Honda has all the compulsory resources or means to produce high quality products yet cost proficient and effectual. Even in some of the cases cost diminution is severely put into practice when there are financial and economic difficulties, changing trends and production behavior. In building and maintaining the relationship with suppliers, Honda and its organization without difficulty can pass on to the existing culture of supply chain management that is being utilized by their Company all the way through the long years of procedures. To retain good relationship with the suppliers, acquisition and integration are tends to be the most potential methods. With the increase in knowledge of the conditions of subordinates and peers can bring into the potency for the Honda. Training and maintenance is termed to be the main elements for the organization. Quality improvement is the basic element for Honda (Bauer, 2006). In totality, Honda not only produces quality products but also renders the safe, affordable and environment sensitive products. Improvement can be seen as the research based activities of Honda. The research and innovation tasks are needed not to be carried in all the subsidiary offices. Hondas strategy for intensifying the RD efforts does not indicates that it will going to personalize the models in every country but it can be viewed as a strategy that centers on the maximization of the resources. The improvement in technology is however linked to the environment friendly aspect of the brand (Miller, 2001). Innovations are also implemented in the research, distribution and manufacturing mobile. The enhanced integration of local associates into international spectrum will hasten up the improvement of technology. A global strategy to be implemented so as to create the value added parts and components as well as create brand loyalty to the consumers. Besides, safety is termed to be the essential ingredient in Safety for Everyone scheme. Conclusion: Thus, strategic management is the demeanor of summarizing, implementing and assessing decision making process that enables Honda to accomplish its long term goals and objectives (Saloner, 2001). It is a procedure that specifies the vision, mission, objectives or goals, development of plans and policies in relevance to projects and programs, which are specifically designed to accomplish these objectives and then apportioning the resources to put into practice the policies and programs. To evaluate the overall performance of the Honda Company, a balanced scorecard can be used. Strategic management in Honda is set at the managerial level which is under the setting of goals and over the tactics. It generally provides direction to the Honda and suggests it the ways that it should lead for the growth purpose. It even assists the Honda in examining and evaluating the opportunities and threats posed by the external environment in context with the internal strengths and weakness of the organization. In the end, recommendations are given so that Honda can lead to a better outlook in terms of efficiency, resources, planning, operations etc.