Why Profits Of Product Industry Are So High Finance Essay - Free Essay Example

Sample details Pages: 13 Words: 3919 Downloads: 8 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? As technology has advanced, retailers were able to improve their profit margins despite the prevailing competitive environment. They are well aware of their customers buying patterns and behavior. They know how to satisfy the needs and wants of their customers while saving a sufficient amount of profit margin for themselves. Don’t waste time! Our writers will create an original "Why Profits Of Product Industry Are So High Finance Essay" essay for you Create order The reason why product based industry is so very well able to understand the psyche of their customers and use it as their own advantage is the availability of sufficient tools and theories to understand the market mechanism and its related variables in detail. They are able to devise business strategies in accordance to their goals and objectives, and implement them effectively. If we glance at the service industry in the very same fashion, it is clearly visible that they are not as comfortable with their customers as product based industry. Though they are available with tools and theories to understand their market as well but it certainly is not in as much detail as product based industries. 1.1 Pricing for Banks Pricing is one of the chief variables of strategic marketing and it has the most significant and direct impact on the sales revenue of any organization, and even then there are a very few conceptual researches making precise suggestions about setting prices. According to a research, pricing of services has been even given lesser attention than product pricing. But since service is becoming gradually more important part of the economy, the need to be aware of more about the pricing of services has developed; banking being the most important. There are two pricing challenges unique to service pricing that services are intangible and irreplaceable. (Rob Docters, 2004). Finch identifies some other including inseparability of production and consumption, heterogeneity and perishability. (J.Howard Finch, 1998) Banking being more complex than other services makes it more interesting and to an extent more troublesome as well. Pricing banking services is an art in itself. Iuliana Cetine ( 2010), in her research says that for a bank the price is one of the fundamentals of the marketing mix. The prices ought to be in conformity with the other Ps (product, placement, promotion) and they have to not be taken as a merely financial problem, where they are calculated by adding a margin of profit to the estimated costs; pricing is much more to it. Depositing and lending are two core operations for a bank, pricing these deposits and loans can significantly affect the overall performance of banks; but a research shows that banking executives are not very much able to handle pricing so well. Talking about lending in particular, banks usually are not able to convert their goals and objectives into an effective pricing strategy. Many banks still rely on ancient ways of pricing and handling loans. They have acquired technology for risk-management purposes but acquiring technology for pricing is something banks still have not yet paid attention towards. (Iuliana Cetine, 2010) Frank Rohde, who is a chief marketing officer at Nomis Solutions, claims in one of his interviews to FST that pricing process of retail banks is fundamentally broken. He talks about the US banks and banks all over the world, mentioning about how banks price, he says that pricing executives come up with pricing strategy without any knowledge about the volume and profitability; profitability teams further come up with different sets of rates with a pure subjective judgment about the pricing behavior of the consumers and market fundamentals. They lack of information and proper analysis as they lack tools essential for these purposes, they are not able to set appropriate targets. Even if they do, they are unable to understand the reasons of deviations from the set targets and how exactly can they correct their policies. Pricing technology is necessary to understand the pricing mechanism properly. Pricing instead of taking as a side operation should built as a core competency by the ban ks. It directly influences the targets and revenues of the banks. Mr. Rohde further claims that the basic root of the credit crisis is that banks have not been able to translate their knowledge of market demand and profitability into a practical pricing strategy. (Rohde, 2008) 1.2 Pricing theories with respect to granting Loans As mentioned earlier, depositing and lending are two core areas of banking. This research will primarily focus on the lending part of the banking operations. It will take into account all the pricing strategies banks have been using in the past and the strategies that are still in practices with regard to the pricing of loans. It will identify the areas which are crucial for devising effective pricing strategies and the areas where these strategies lack. It will further identify aspects in which these strategies have affected and still affecting banks till present day. Banks may include retail banks, commercial banks, investment banks, community banks and much more. This study will be focusing more towards the working of retail banks. Retail banks work with consumers and small business enterprises. Investment banks being vast subject in its own will be completely excluded from this research. There a number of theories devised for pricing of banking products and specifically f or granting loans as well. Nora Mihail in her research identifies cost plus profit, taking the cream, price depending on competition, price depending on value and price to penetrate as basic theories for banking products including lending. (Iuliana Cetine, 2010) These terms are self explanatory; Cost plus profit calculates all the relevant costs and further adds a margin of profit to it, taking the cream is for high quality newly introduced products to take the cream demand, price depending on the competition takes the competitors prices as a base criteria, price on the market checks for the already settled prices at the market, price depending on value is based on the value of the service perceived by the customers whereas price to penetrate is charging a low price in the start to gain a substantial share in the beginning. (Iuliana Cetine, 2010) Traditionally flat-rate pricing has been in practice by most of the banks. In flat-rate pricing strategy all customers obtain the loan at the same pre-decided rate set by the bank. As the article published by Bench Mark Consulting International says that flat rate is used by the banks which lack technology to design a sophisticated policy and therefore use a flat rate to to keep it simple (King, 2007). The problem with flat rate loan is that high credit quality borrowers can get loans at cheaper prices because of the regular use of risk- based pricing methods (mentioned in detail later) whereas lower credit quality loans find this rate cheaper and this leads to a very risky equilibrium which prove to be futile for the bank. There is a clear line between the banks who use a thoroughly planned systematic approach to loan pricing and those who just go by the market. Thomas A. Hannagan in his study points out certain questionable practices of the banks. The first one he pointed out is the omission to add any costs related to the risk of the loan leading bad credits to obtain loan at a cheaper amounts. Another practi ce he questioned is baseless assumptions about the costs bank incur to originate and maintain existing borrowers and the third one is when lenders estimate a very large earning from a credit than it actually is. (Hannagan, 2004) Theorists often talk about risk-based pricing when it comes to pricing bank loans. Risk based pricing, in simple terms, is charging higher to the risky entities and lesser to the lower risk entities. It keeps in line, the loan price with the anticipated loan risk. As mentioned by KANSAS on its official website that this method allows the lender to obtain a level of return that is in accordance with the taken risk and it follows the principle of financial theory of risk and return. (KANSAS, 2010). Managers of known banks claim that, despite tough economic conditions, they are able to increase volume by following the risk based pricing. They instead of avoiding risk are opting for a suitable combination of risk and return; this can help them grow. Risk Base d Loan pricing can help in better risk management but there are certain drawbacks or in better words, limitations of risk based pricing. As Robert Phillips says that undoubtedly charging higher for higher is a sensible as well as profitable idea but this obviously is not final in pricing complexity. Risk-based pricing does not take a number of factors into account, one of which is the price sensitivity of customers into consideration. (Phillips, 2005) Bankers usually like this design in which lenders have better understanding of the available pricing options and the respective price is reached quickly. Lender can know in advance about the fee that will be charged to them and they can further look at the benefits of growth in total relationship with the bank. Hannangan says that can also use this loan pricing system to cross sell other fee based services of the bank. This gives rise to Relationship Based Pricing. (Hannagan, 2004) With the passage of time different non-banking f inancial institutions entered the place which was once the territory of banks. Banks faced a tough competition but did not lag behind. A basic rule of marketing any product or service is a differentiating factor. Relationship with the customer was a factor that banks could use as their differentiating factor to compete. Banks generally are likely to have long relationships and associations with their customers. This can build a loyalty factor among customers as well. Relationship pricing strategy takes the relationship with the customer as the basis to set a price. It usually takes into consideration, customers loyalty time, the total amount of business he provides, the frequency and type of transactions he does etc. (Relationship Pricing, 2010) A research on relationship banking supports this type of pricing by adding that the progress of bank-firm relationship can lead to benefits for the lender as well as borrower in terms of cost reduction or increased revenues and reduced ra tes. (Fredriksson, 2007) This kind of pricing takes into account all the services that a particular customer is availing. As mentioned by Thomas Hannagan, this pricing system can let lender receive benefits from the indirect ways such as deposit accounts. He states an example in which a borrower negotiated for a low-rate loan by guarantying to maintain a certain level of deposits in the bank which can help bank improve its return ratios. (Hannagan, 2004) Both the parties can negotiate for mutual benefit. SAP, a German software corporation providing software to support businesses globally, elaborates in its industry briefing about the pricing of banks. According to SAP banks have prospects to perk up their profitability by optimizing their price structure. (SAP, 2009) Bank instead of working on the price they need to sell at should focus on the price customers are willing to buy at. Simple pricing models only take monetary aspect of the transactions into account but advance models take all non price factors to give a true picture of rates and volume. Price optimization can help banks to come up with rates according to their growth strategy. If a bank plans to increase its profits without affecting volume, price optimization model comes up with a rate that bank needs to offer a particular chunk of customers and achieve its goal. Similarly if a bank intends to augment its volume with significant profits, the model calculates a price consumer intends to spend for a product in any area of business; it also shows how the pricing is balanced among loan products to maintain the overall strategy intended by the bank. (SAP, 2009) Pricing optimization allows executives to pull pricing as a core strategic driver of performance. Pricing should not be taken as a secondary function. Pricing should be treated as a core proficiency, it can be used a tool which can quickly and significantly influence the required results of the fiscal year. (Rohde, 2008) Banks can further use what-if analysis to alter the recommended strategy according to what is more feasible and comfortable to the suggested targets. Banks and other non-bank financial service providers who were relying merely on risk assessments have started employing value based approaches to pricing credit. The competitive environment in which banks are working in, value based pricing can help banks to continue with profitable growth. (David Vidal, 2009) A paper identifies certain structural guidelines to implement value based pricing; the steps researcher mentioned are identifying the factors that influence customers willingness to pay, define pricing segments along the structure identified, quantify ability to profitability change your pricing by measuring price elasticities and implementing the selected value based pricing approach using price optimization models. (David Vidal, 2009) Customer Loyalty is something that is extremely important for all the banks; it can be considered as one of the most valuable assets of a bank. Taking into account the aggressive environment, retaining customers is becoming increasingly difficult. Girish P B in his article says that retaining and increasing good business with a current profitable customer is more cost effective than targeting a new customer. Selection of a good pricing strategy can help banks retain profitable customers. (Girish, 2010) Moreover as mentioned earlier as well, pricing strategy has a direct influence on revenues and banking targets of a bank. A suitable pricing strategy can help bank increase its revenues, achieve targets, improve business ratios, increase business effectiveness, amplify its volume, improve on profitability, enlarge its customer base, and plenty of other factors important for a business. All these variables, their influencing variables and their relationship will be comprehended further in this study. INDUSTRY BACKGROUND Banking industry is the backbone of any economy. It is considered fundamental to economic growth. Banking industry alone can affect the entire economy, if banking industry of an economy is not working well; it will directly impact the working of the whole economy and vice versa. Banks in simple terms are described as financial institutions which accept deposits and issue loans. Banks extend loans to corporations and individuals to invest, handle savings and handle transactions. Though banking industry has evolved over time in economic, financial and technological aspects, the loan component of the banking has not advanced as much as the other services provided by banks. Banks have been able to handle their loans very well. Banks which extended credit have encountered loan defaults while other banks did not extend sufficient credit to perform well. Some banking executives and theorists claim the pricing component of the loans to lack. Banks cannot effectively price their loans ; some do not take all the pricing components into account while others which do, are unable to comprehend their behavior. Product based industries are available with sufficient pricing strategies to cater their needs. They are able to implement their strategic goals and objectives and excel in every dimension; as they can effectively translate their business strategies into pricing tactics. Banking professionals also have pricing theories for their assistance which have improved with the passage of time but despite focused considerations banks have not been able to perform up to the mark. This clearly indicates that either the pricing strategies bankers are available with are not enough or they lack in some key areas which still need to be addressed in order to completely understand the key influencing variables. Research Aim The aim of this research is to comprehend the pricing strategies and key influencing variables in pricing of loans, so that the banks are in a position to develop better performing and effective pricing strategies that alignment with their strategic business plans. Research Questions: Research question 1: In what aspects can pricing strategy be important for the banks with respect to granting loans? Research question 2: What factors are taken into account by Banks while devising their pricing strategy? Hypothesis Poor loan pricing strategy is the key factor due to which banks are unable to achieve their strategic business objectives Existing pricing theories cannot help banking loans to perform up to the mark Objectives Comprehend the strategies that banks use for pricing their loans Indentify and elaborate on the aspects that can be influenced by pricing strategies banks adopt for pricing their loans Identification of the most suitable loan pricing strategy and suggestion for further improvement in the weaker areas of existing loan pricing models and theories. METHODOLOGY Business researches, depending on the nature of a research, can usually be classified into three basic categories which are exploratory, descriptive and causal research. Exploratory research is carried out in the beginning stages of decision making when the decision circumstances are vague and management is very unsure about the nature of the problem. Descriptive research is carried out when the management knows about the problem but not completely aware of the entire situation. (Zikmund, 2001) This type of research answers who, what, where and how questions. Causal study is carried out when the problem is very clear, specific and sharply defined. The cause and effect relationship among the variables is identified. (Zikmund, 2001) This study will fall under the causal category of research. The problem of the study is clearly defined and the hypothesis are stated which would be defended further in the research. The problem area is the loan pricing and its causal relationships wit h other variables will be identified to further identify and discuss the areas where current loan pricing strategies lack. It may have a little tinge of descriptive category as well when the pricing strategies that banks have used in the past or are still using will be identified and elaborated upon. This research will primarily be based upon secondary data sources. Different studies of different authors from different corners of the globe will be thoroughly studied and scrutinized in order to get hold of the subject and get a complete understanding of the subject matter. All the direct, indirect, moderating and intervening variables will be identified, a theoretical framework will be designed identifying the relationship among the variables and their significance; they will be studied in detail to reach justifiable conclusions. Dependent variable is the variable of primary interest to the researcher. The researcher analyses the dependent variable to get his answers. Here in this study it may be the volume of the loan, the profitability or the effectiveness of the strategy (this will be dealt further in detail). The independent variable is the one which influences the dependent variable. In this case it may be the interest rates, economic repercussions, loyal relationship etc. A moderating variable has a strong effect on the relationship of direct and indirect variable. The intervening variable is a surface in time when indirect variable starts influencing and the time when its influence is felt. All the relevant literature, studies, theories will be examined. The empirical evidences and regressions run in other applicable studies will also be taken into account to deduce the relationship among variables. The objectives of the research will be kept in mind while examining other studies in order to stay focused. Hermeneutical text analysis will be used in the study to analyze and discuss the strategies used by banks for pricing their loans. Hermeneutic s is a research technique which is followed by an interpretive pattern on text scrutiny. Hermeneutics is widely used in social sciences including researches in economics and business. Hermeneutics is a method of research which allows the researcher to interpret the texts in its background and draw a meaning accordingly. In order to understand something properly, one needs to take it in context and one need to have knowledge about it, and hermeneutics allows the researcher to combine both of these necessary elements to gain complete understanding of the relevant text. Thus hermeneutics makes use of the blend of information and contexts to generate fresh facts and gain additional understanding in research (Cole Avison, 2007); as in order to draw legitimate and justifiable conclusions, it very important to know about the social, political, economic and historical aspects of an event. Hermeneutics comprises of five concepts: the hermeneutic cycle, the hermeneutic horizon, fusion of horizons, rejection of author-intentionality and critique (Mir Prasad, 2002) A research on hermeneutics says that Hermeneutics means the theory of interpretation, i.e. the theory of achieving an understanding of texts, utterances, and so on (it does not mean a certain twentieth-century philosophical movement) (Forster, 2007) Hermeneutics is the research method in the field of text analysis which offers the researcher to interpret texts in their context and therefore derive meaning. As knowledge about something needs both information and context, hermeneutics enable to combine both to gain understanding. In social sciences the historical, political, economic and social backgrounds of phenomena have to be analyzed carefully to draw correct and legitimate conclusions (Mir Prasad, 2002). The major philosophy and concept of hermeneutics is its cycle. The cycle states that the part can only be understood from the whole and the whole can only be understood from the parts. (Mir Prasad, 2002) This means that in order to get the complete understanding of the parts, one need to know about the context and the whole scenario and in order to understand the whole scenario, one need to have a complete understanding of the parts. The social and cultural aspects are also taken into consideration. Not only the research subject is what the analysis will be based on but a separate analysis of the context is also required. While studying loan pricing, not only the directly related variables are taken into account, the environment in which those variables work has also to be taken into account to get an enhanced understanding of the working of actual variables. Timescale The way this research will be carried out is suitably planned; expected time for each part of the study is also determined. Things will take place exactly according to the pre-determined plans as this will help us give appropriate time to each section and as well as finish the study on time. In order to work in a systematic manner, keeping the time constraint in mind, the analysis part of the report is divided into four sub-parts, relevant data collection, analysis of the data collected, further analysis and final deductions. As this study is based on secondary data, analysis and data collection are the cornerstones of this study. Therefore, these stages will be carried out with utmost care. Following table shows how the time divided among different stages of the research: Sr.no. Task No of Weeks 1 Literature review 5 2 Analysis Relevant Data Collection 4 3 Analysis of Data Collected 4 4 Further Analysis and Data Collection 5 5 Analysis Final Deduction 3 6 Final Report write up 4 7 Final Presentation write up 1 8 Presentation Preparation 1 Though the planned will be followed strictly, still a room for delays is kept in mind. Some tasks (most likely analysis and literature review) may require extra time depending on the situation. If such things happen which is not very likely, we can use the room kept for delays or we can reduce time from other stages if they can be completely early without any compromise with the quality of work. Resources This study is not very costly to conduct, since it is relying on secondary sources for data. No primary activities will be carried out at any business locations. Access to Business and Marketing Journals is the major resource needed for this research. Access to quality data is major requirement and something that will significantly influence the quality of this research work. Moreover a computer with an online access to articles is all what is needed.

Media Portrayal Of The Media - 938 Words

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Both forms of constraint tend to create a small in number yet very powerful group of producers – this is what is described by â€Å"fascistic control.† Essentially, the marketplace becomes full of art objects that can be appreciated by all people, or objects â€Å"high in exhibition value,† that require no time-specific or exclusive knowledge to be understood and consumed. As these objects are high in exhibition value, they are automatically â€Å"lacking in cult value,† because cult value implies an exclusionary and time-specific knowledge needed to appreciate the culture. Assuming that every mode of communication has its own place in the â€Å"marketplace of ideas† (an analogy to capitalism coined by David Kairys inShow MoreRelatedMedia Portrayal Of The Media Essay2318 Words   |  10 PagesThe media portrays Africa in many different lights. How the media publishes these events cause indirect consequences that affect many nations that reside in Africa . 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The War of 1812 Essay Sample free essay sample

The eighteenth and 19th century was a period of changeless war within North America. there was the Seven Years War of 1754. the American Revolution of 1775 and the War of 1812. This paper will concentrate on the War of 1812 and its impact on the North American community. The War of 1812 did non hold a individual victor or also-ran ; it was a war that was fought till it ended with a peace pact in December 1814. This war can be merely described as a war between people still loyal to the British Crown and people contending for freedom and their ain individuality. The War of 1812 has been described as a civil war that pitted members of a North American community against each other ; yet this is a false statement since the North American community was already pitted against each other. Before we can see the War of 1812 a civil war. we need to hold an apprehension of what the North American community was made up of. North America was full of people from all over Europe and people born in North America. One similarity among the North American community was that the peoples spoke the same linguistic communication and conducted themselves in a mode similar to each other. In British North America. which is present twenty-four hours Canada. there was approximately half a million people. There were about two hundred and 70 thousand people. 80 thousand people in the Maritime provincess who were pro-British and another 60 to eighty thousand people in Upper Canada who were fundamentally Americans by birth or descent. and that did non include the native peoples. The population of America was someplace about seven and a half million people. [ 1 ] The Americans had freed themselves from British ties by winning the American Revolution. therefore doing them their ain American community. Even though the Americans were their ain state. Britain still controlled the seas and made Torahs non leting the Americans to merchandise with France or any state Britain was at war with. In British North America the community was made up of a mixture of nationalities. such as Gallic and British stalwarts. Even in Canada. the state was divided. Upper Canada was chiefly English s peech production people and Lower Canada was chiefly Gallic talking people. There besides was a native community that was divided and fought for both sides during the War of 1812. These three different communities of people had been contending against each other since the beginning of colonisation of North America. It began with the British. Gallic and Natives fight for control of the land and during 1812 it had moved to the British and Canadians contending against the Americans. For the War of 1812 to be considered a civil war it would hold to follow this definition of a civil war. â€Å"a war between opposing groups of citizens of the same state. † [ 2 ] By this definition the War of 1812 does non suit into the class of a civil war since there were two different states. the Britain and its settlement of British North America against the Americans. The North American community was non united under one flag. With the North American community. they were already pitted against each other following the Seven Years War of 1754 and so once more following t he American Revolution of 1775. The Revolution was the American settlements push to go their ain state and have no more ties to Britain. They were successful in winning this war that would subsequently do the British stalwart migrate to British North America. These immigrants were from all categories and helped beef up the population of British North America. Following the American Revolution. the â€Å"British Empire and the American Republic remained uneasy neighbours in North America. † [ 3 ] This war had a major impact on Canadians and Americans. â€Å"the War of 1812 changed the lives of many Canadians and Americans. † [ 4 ] It was during this war that helped hammer both states into two separate single states and develop a better sense of patriotism. It brought the people of British North America near together since both the Gallic and English colonists were able to get the better of and support their land against a common enemy. The battlers of the War of 1812 had different ground for come ining the war. The Americans had grudges with Britain. and the Canadian’s were â€Å"fighting for their homes† [ 5 ] since the Americans were seeking to occupy British North America to throw out all of the British influence over North America. The British were in the war because of the demand to protect its settlement of British North America. The war aims for the War of 1812 seemed to be the appropriation of Canada from its British ties. which the Americans â€Å"expected to be a pushover. † [ 6 ] Britain was unable to set a hundred per centum attempt into the War of 1812 since they were contending in the Napoleonic wars. Britain was merely able to direct some military personnels and portion of its naval forces. Britain’s war purpose was the protection of its settlement. The War of 1812 was fought in British North American. on American dirt and the Atlantic Ocean. On June 18th. 1812 [ 7 ] war w as declared between America and Britain. The Americans declared war on British for three primary grounds. The first ground was the impressment of American crewmans while on the Atlantic Ocean. Second was the misdemeanor of American impersonal rights that meant cutting off trade with anyone. The 3rd ground was the refusal of the Britain to revoke the Order of the Council of 1807. which barred Americans from all impersonal trade with France and its Alliess. It was an violative war for the Americans as they were contending to acquire rid of the British influences in North America. therefore doing it a defensive war for the British and the Canadians. The Americans thought that â€Å"so many Upper Canadians had immigrated from the United States† [ 8 ] that it would be easy to take control over since the people would side with the Americans because of their nationality. An issue with the War of 1812 was that it is was over shadowed by the Napoleonic War. if Britain was able to direct more soldiers and concentrate more on this war. it may of changed the result. The first conflict of the war took topographic point around present twenty-four hours Windsor. Ontario. It was fought from â€Å"July 5th to 8th. This brush was a unquestionably little matter. but it was the fir st military battle on land†¦Ã¢â‚¬  [ 9 ] The British did the bulk of the combat in Canada. but the Canadians both English and French were still able to pull national pride from get the better ofing the Americans. The War 1812 had major conflicts at New Orleans. the invasion of York in British North America and in Washington. With every action there was an equal reaction in the War of 1812. The Americans raid on York in 1813 was a cardinal conflict of the war. It was here where the Americans were seeking to take the provincial capital. The British were unable to keep York and as they were withdrawing they tried to destruct anything of value to the Americans. When the Americans were unable to occupy Canada the British and Canadians gained motive from get the better ofing this ground forces. The British would force back and assail the Americans on their ain land. There was a foray on Washington during 1814. The British were successful in occupying Washington and they â€Å"burned several public edifices including the President’s place. † [ 10 ] This war was fought to a draw. since both sides were unable to get the better of their oppositions. The pact that ended the War of 1812 was the Treaty of Ghent signed on December 24. 1814. The peace dialogues were long and to a great extent influenced by the licking of Napoleon in Europe. Both the United States and Britain â€Å"wanted non merely the war to stop. but to do a peace that would last† [ 11 ] which cause the dialogues to go even longer. A job with this peace pact was that it did non settle much. It made each state return what they had conquered and controlled during the war. and some boundaries were to be redressed by commissioners. It did non nevertheless cover the issues that caused the Americans to declare war such as impressment. impersonal rights. The Americans viewed this pact as a â€Å"damned bad treaty† [ 12 ] since the Americans did non acquire what they wanted. This pact provided â€Å"cessation of belligerencies. return of captives and recommencement of the position quo. † [ 13 ] This pact did non alter much within the North American community except that it ended the belligerencies between the British and Americans. The Ame ricans neer once more tested to take over Canada. Every war has its victors and also-rans. except the War of 1812 since it did non bring forth a clear victor or also-ran. Arguments can be made for each state to be considered the victors. The strongest instance comes from the Canadians. The Canadians needed to win this war to maintain their individuality and to stay a portion of the British Empire. The Canadians were able to support Canada and maintain their British connexions. This lead to the laying of â€Å"the foundations for its hereafter independency and nationhood. † [ 14 ] The British may besides hold been the victor of the war since their war purposes was to continue its settlement of Canada. The Treaty of Ghent did non do the British alteration the ways in which they controlled the sea. But this war was besides an embarrassment for the British Empire since they were unable to get the better of such a little and immature state. If it was non for the Napoleonic Wars. Britain may hold been able to provide more war attempt to North America and at that place may hold been a clear victor. The United States made the strongest instance for being the also-rans of the War of 1812 since the United States declared war on Britain for ground such as the impressment of American crewmans. the misdemeanor of American impersonal rights and the refusal of the Britain to revoke the Order of the Council of 1807. Since America declared war to â€Å"win grant on these issues. it seems undeniable that the war represented a failure†¦Ã¢â‚¬  [ 15 ] along with their failed invasion of Canada. Though this war was comparatively little compared to American Revolution and Napoleonic War. it still had a major impact on the United States. Canada and Britain. It created different relationships between these states. It helped forged national individuality for both the United States and Canada. It can non be considered a civil war merely because the North America community was non united and they did non fight for a one individual cause. The Americans fought for their demands and desire to f ree North America of British connexions. while the Canadians and British fought for defence of their settlement and national individuality. Bibliography Borneman. Walter R. 1812: The War That Forged A Nation. New York: Harper Perennial. 2005. Print. Conrad. Margaret and Alvin Finkel. History of the Canadian Peoples. Volume I: Beginnings to 1867. Fifth Edition. Toronto: Pearson Longman. 2009. Print. Flavell. Julie. and Stephen Conway. Britain and America Go to War: The Impact of War and Warfare in Anglo-America. 1754-1815. Gainesville: University of Florida. 2004. Print. Hickey. Donald R. Don’t Give Up the Ship! : Myths of the War of 1812. Urbana: University of Illinois. 2006. Print. Jacobs. James R. . Major. and Glenn Tucker. The War of 1812: A Compact History. New York: Hawthorn. 1969. Print. Turner. Wesley B. The War of 1812: The War That Both Sides Won. Toronto: Dundurn. 2000. Print. Taylor. Alan. The Civil War of 1812: American Citizens. British Subjects. Irish Rebels. A ; Indian Allies. New York: Vintage. 2011. Print. â€Å"Civil War† Merriam-Webster. com Merriam-Webster. 2011. Monday. 5 October 2012. [ 1 ] Wesley B. Turner. The War of 1812: The War That Both Sides Won. ( Toronto: Dundurn. 2000 ) pg 16-17 [ 2 ] â€Å"Civil War† Merriam-Webster. com. Merriam-Webster. 2011. Monday. 5 October 2012. [ 3 ] Alan Taylor. The Civil War of 1812: American Citizens. British Subjects. Irish Rebels. A ; Indian Allies. ( New York: Vintage. 2011 ) pg. 9 [ 4 ] Wesley B. Turner. The War of 1812: The War That Both Sides Won. pg. 14 [ 5 ] pg 229 Britain and america travel to war [ 6 ] Major James R. Jacobs. and Glenn Tucker. The War of 1812: A Compact History ( New York: Hawthorn. 1969 ) pg. 14 [ 7 ] Major James R. Jacobs. and Glenn Tucker. The War of 1812: A Compact History pg. 13 [ 8 ] Margaret Conrad and Alvin Finkel. History of the Canadian Peoples. Volume I: Beginnings to 1867. Fifth Edition. ( Toronto: Pearson Longman. 2009 ) pg. 194 [ 9 ] Donald R. Hickey. Don’t Give Up the Ship! : Myths of the War of 1812. pg 53 [ 10 ] Wesley B. Turner. The War of 1812: The War That Both Sides Won. pg. 109 [ 11 ] Wesley B. Turner. The War of 1812: The War That Both Sides Won. pg. 116 [ 12 ] DonaldR. Hickey. Don’t Give Up the Ship! : Myths of the War of 1812. ( Urbana: University of Illinois. 2006 ) pg. 305 [ 13 ] Major James R. Jacobs. and Glenn Tucker. The War of 1812: A Compact History pg. 191 [ 14 ] Donald R. Hickey. Don’t Give Up the Ship! : Myths of the War of 1812. pg 302 [ 15 ] Donald R. Hickey. Don’t Give Up the Ship! : Myths of th e War of 1812. pg. 302

Risk Management for Frauds - Misappropriation- myassignmenthelp

Question: Discuss about theRisk Management for Frauds, Misappropriation and More. Answer: Risk is inevitable and speculative in every business be it large business or small and most of the times risk implies huge loss for the business organization. Risk in business can occur from various reasons such as increase in competition, financial loss and more (Bottanl, Monica Vignal, 2009). Therefore, to overcome the risk in business, organizations incorporate different strategies of risk management. However, it should be noted for preventing loss, risk management plays a major role and thus it helps to promote stability with the business organization. Furthermore, in order to control internal risk, the risk management controls it by protecting the business organization against huge market, legal issues and operational risks (.Brustbauer, 2016). Risk management also protects its targeted customers from various losses such as frauds, misappropriation and more. The major role of the risk management is to provide financial securities to the firm, so that it can inspire and encourag e stakeholders to invest in the respective firm. One of the most important risk management tools that are used by majority of business enterprises to avoid risk is the Enterprise Risk Management (ERM) (Clark Tunaru, 2015). This tool helps to analyse the type risk occurred in the firm, and accordingly provides effective measure to reduce it. For instance, in case of managing employees and to avoid risk related to staff turnover, the risk management team needs to identify and understand various organizational laws such as employment laws, labour union contracts and more. Furthermore, the risk management team should also focus on the organizations policies and practices of hiring employees and should create a safe work culture for the employees. Furthermore, while assessing any kind of risk, the risk management should anticipate and asses every situation and accordingly should anticipate the results of the actions taken to overcome the loss. To prevent loss in the company, risk manage ment should tend to identify the types of risk and then transferring different types of risk in to various insurance forms. Prior to this, there are three major qualities of a good risk management program that includes the risk management program should not be relied upon on one single person. Secondly, with the support of the senior level authorities in the work place will help to reduce the amount of risk and can improve for success. Thirdly, the program of risk management works smoothly when all the goals and the results are shared with the internal and external stakeholders (Higgins, 2006). As more business are increases in the present days, risk has also increased, therefore business organization should comply the laws and policies in order to reduce the risk to certain amount. In order to reduce risk to a certain level, many organizations have implemented the principle of as far as reasonably practicable. It implies that business organization should imply health and safety nature in the work environment while conducting any kind of business (Hopkin, 2017). Furthermore, the term as far as reasonably practicable also implies that organization should analyse all the possible circumstances so that employees within the organization should be free of risk. It also determines the amount of resources, be it financial or any other resources that are required to manage the risk effectively. In broader terms, organization and firms adopt this strategy so that the risk can be balanced in terms of time, resources and cost (Khakzad, Khakzad Khan, 2014). By using the strategy of as far as reasonably practicable, organization sets major goals so that it could prevent risk, and if risk occurs, the organization can gain back its resources. For instance, in case of JP Morga n huge loss, the company managed its risk effectively by implicating the respective strategy. However, it should be noted that the concept of loss prevention adopted by business organizations to prevent any kind of monetary loss in the business environment (Larson, Mather Dell, 2007). It is a set of practices that has been implies to restore profit within the organization, as this can reduce loss. In any business loss occurs from many reasons such as it can occur from human actions that include fraud, theft, vandalism and more. Therefore, with the help of loss prevention, firm tries to avoid such loss. Though loss prevention is mainly adopted by the retail industries, but in the present day with the increase of risk, loss prevention is adopted by other industries also. In order to prevent loss, industries and firms relies on four major implications that include organization need to be focussed to prevent the loss, as it is every employees responsibilities to prevent loss within the organization. Secondly, to reduce shrink, the management need to be consistent, that means policies and guidelines should be followed thoroughly to prevent loss. Organization needs to be visible to generate better outcomes, thus it can conduct audits twice a year to analyse the resources of the company. And the last aspect is to be proactive rather than active to prevent risk such as creating a trustworthy work environment will help to minimise loss in the firm. However, there are certain limitations while adopting loss prevention method as sometimes loss can also occur from employees such as refund fraud. Therefore, training manuals provided by the organization to train employees to be aware of risk (Loosemore et al., 2006) In the present day with the increase in number of business organizations, there is an increase in risk, therefore in order to prevent risk, organizations and firms have incorporated the Enterprise Risk Management approach. According to the Enterprise Risk Management, it helps in analysing the risk that causes firms failing to meet their goals and objectives. As per the Enterprise Risk Management and Statement on Management Accounting there are various risk management tools that are used by firms to mitigate risk (Makin and Winder, 2008). One of the most common tools used by organization to minimise risk is the brain storming tool. With the help of brainstorming techniques, objectives and goals of the organizations are stated clearly among the employees, and accordingly with employees creativity they generate different types of risk that can be faced by the particular organization. This tool is best appropriate when the approach towards the risk is unstructured and the management enco urages group members to generate the possible risk (McNeil Frey Embrechts, 2015).. Many small and start up organization follows the brain storming techniques as it helps to minimise risk in small organizations. Furthermore, it should be noted that facilitating a brain storming session requires a proper leadership skills who can guide the other participants and the most important thing participants need to understand the major aspect of the brainstorming tool that fits in Enterprise risk management approach (Pollino, Thomas Hart, 2012). The brainstorming tool sheds light on major aspects such as how risk and the objectives of the organization are interlinked with each other and to what extent this could have an impact on the business. As various cross-functional employees participate in the brain storming session sharing their experiences and perspectives, therefore this can prove to be a successful tool in identifying the risk and accordingly minimising it. For instance, organizat ion with the help of brain storming session analysed human risk such as succession planning (if the team leader departs the company) and accordingly tries to reduce it by motivating the leader with rewards and incentives (Reason, 2016). Prior to this, there are certain limitations while applying the brainstorming tool such as, participants should have clear assurance that the ideas provided by them should not humiliate other team members in the group. Another limitation is that sometimes group members are not willing to express their ideas, as they think that their ideas will be judged as inarticulate that will have no meanings or values. This can negatively affect the risk identification process. However, if all these things are taken care of, brain storming tool can give fruitful result in reducing organizations risk (Sadgrove, 2016). The concept of Total Risk Management had been introduced by Haimes and according to him it is the systematic tool that analyses the risk assessment and accordingly manage it. The total risk management concept of Haimes identified four main sources of failure within the business organization. The four main sources are hardware failure, software failure, organizational failure and the human failure (Haimes, 2009). In case of Globoforce Organization, the organization has analysed the risk with the help of four sources of failure. However the four sources of failure are interlinked with each other and are internally comprehensive. In case of hardware and software failure, these are the most devastating failure in the organization. Failure in the case of technology can result in loss of resources as well as time (Slovic, 2016). In case of Globoforce organization, by implicating the hardware and the software failure, the organization has analysed the various risk related to technologies th at can have a negative impact on the overall business. With the help of these sources of failure, the organization analysed the risk scenario and implemented ideas to reduce it. The four sources of failure of Haimes identified all the internal sources of failure were risks are more likely to occur. I t should also be noted that software risk mainly defined as severity of unpleasant effects of software that lowers the performance. With the increase in software complexity, the need to manage the risk also increases. Therefore, with the implication of this failure type, the organization reduces their technical risk. As per their procedures and guidelines, after analyzing certain risk, employees are being trained to increase their knowledge and skills in order to deal with the software failure risk. However, it should also be noted organizational failure and the human failure are connected to each other. Prior to this, as organizational and human failures are the most common type of fai lures that takes place within the organization, and by implicating such failures, Globoforce tends to examine the sources of risk and accordingly prevented it. Organizational failures result in loss of valuable resources, management problems that lead to poor decision making process and more (Viner, 2015). On the other hand, human failure results to fraud and theft by the employees such as stealing of important resources of the organization. As both are interlinked, therefore by implicating these sources of failure, Globoforce has analysed that their employees were stealing valuable resources from the company and that has lead to huge loss of the company. Accordingly, the organization tried to prevent the risk by providing proper training to the employees regarding the policies and procedures, so that they can be aware of the internal loss. It should be noted that by implicating the sources of failures, business organizations can prevent and minimise their risk. References Bottanl, Monica Vignal (2009), Safety Management Systems: Performance differences between adopters and non adopters, Safety Science 47, pp155-162. Brustbauer, J. (2016). Enterprise risk management in SMEs: Towards a structural model.International Small Business Journal,34(1), 70-85. Clark, E., Tunaru, R. (2015). Emerging markets: Investing with political risk. Haimes Y. (2009) p3 to p5 Introduction to the Chapter on the Art and Science of Systems and Risk Analysis Higgins D. (2006), Risk Management in Projects, 2nd Edition, Taylor and Francis, Chapter 1 Risk and uncertainity in projects Chapter 2 Risk and opportunity identification. Hopkin, P. (2017).Fundamentals of risk management: understanding, evaluating and implementing effective risk management. Kogan Page Publishers. Khakzad, N., Khakzad, S., Khan, F. (2014). Probabilistic risk assessment of major accidents: application to offshore blowouts in the Gulf of Mexico.Natural hazards,74(3), 1759-1771. Larson T., Mather E, Dell G (2007), TO Influence Corporate OHS Performance through the financial market, Internaltional Journal of Risk Assessment Vol 7, No. 2 pp263-271 Loosemore M., Rafery J., Reily C.M Higgins D. (2006), Risk Management in Projects, 2nd Edition, Taylor and Francis, Chapter 6 Developing and Implementing a successive risk and opportunity system. Makin A. And Winder C. (2008). A new conceptual framework to improve the application of occupation healthy and safety management systems, SECTION 4 OHSMS Requirements p6 to p12 and Appendix A, Section A4 OHSMS Requirements p 14 to 24. McNeil, A. J., Frey, R., Embrechts, P. (2015).Quantitative risk management: Concepts, techniques and tools. Princeton university press. Pollino, C. A., Thomas, C. R., Hart, B. T. (2012). Introduction to models and risk assessment.Human and Ecological Risk Assessment: An International Journal,18(1), 13-15. Reason, J. (2016).Managing the risks of organizational accidents. Routledge. Sadgrove, K. (2016).The complete guide to business risk management. Routledge. Slovic, P. (2016).The perception of risk. Routledge. Viner D. (2015), Occupational Risk Control, Grower Publishing, Chapter 1 The Hierarchy and Origins of the Management of Risk Chapter 11 The Management of Risk Strategy and Tactics.