Netw360 Lab Week 2

Week 2 Lab Report 1. Read through the lab instructions before executing the lab steps and creating the reports. 2. Follow all procedures in the lab instructions for the items you will need to include in your report. 3. After executing all steps contained in the lab instructions, submit a one Word document for each project containing your report to the Dropbox. Create your reports using the template starting on page 2 and submit it to the Week 2 Dropbox by the due date. Have fun while learning! Thanks Your NameJeret BurnettNETW360, Professor’s Name Mario  Kosseifi Current Date July 15, 2012 Lab #2 Part 1, Antennas Lab Report Case Project 3-1 Antenna Type Using the internet and other resources, research the different types of antennas that are included under the three main categories: omni-directional, semi-directional, and highly-directional. Draw or print an example of each type and summarize when it is used, what is its maximum transmission distance, and it’s advanta ges and disadvantages. Omni-Directional [pic] When it is used?This antenna can be used for indoor and outdoor access points. It is an excellent solution for RV parks, Marinas, Resort Wi-Fi, and other general outdoor area where other wireless access is needed but unable to be achieved by the small antennas on a router. What is its maximum transmission distance? The range of this antenna is 3000 feet. However, a longer rage is possible with additional antennas on the receiving end. Advantages and disadvantages? The main advantage to this antenna is that you can receive wireless signal in areas that were not available before.Everyone has heard of internet â€Å"Cafes†, but with this antenna you could make an internet â€Å"Cafe† literally in the middle of a campground. The disadvantage is that trees, building and hills can reduce the signal and in somecases can completely stop the signal from getting through. Also, to get this antenna high enough to cover some areas the l ength of the coax cable will reduce the signal; thus making the antenna less effective. Semi-Directional [pic] When it is used? Semi-directional antennas are ideally suited for short and medium range bridging.If you want to connect two office buildings that are across the street from one another and need to share a network connection semi-directional would be a good choice. Or if you have a long narrow room where you need coverage throughout the whole room you can mount the antenna on an end wall. This is because the side-to side signal will not travel as far but the forward signal will travel quite far. What is its maximum transmission distance? Semi-directional range can vary greatly but is commonly used in situations that call for a range of a few hundred feet to two miles.Advantages and disadvantages? The main advantage of a semi-directional antenna is that in some cases a semi-directional antenna can provide such a long range coverage that they eliminate the need for multiple a ccess points. The main disadvantage is that if you need coverage over a large open area, such as a cubical office where the entire floor is open, a semi-directional antenna would not be the best choice because not every computer will receive coverage. Highly-Directional [pic] When it is used?It’s main usage is for point-to-point communication links where wired or other directional wireless coverage is not possible. What is its maximum transmission distance? Highly-directional antennas can operate at a range of up to 35 miles. Advantages and disadvantages? The main advantage is if you need to transmit wireless signal over a very long range without the signal going all over. Such as a person that is quite wealthy, they may have their own private island and want internet connectivity, but does not want to go with satellite internet and wired connectivity is out of the question.Another advantage is that if you are located in a building where wireless signal is very hard to get, a highly-directional signal may be the answer because since it is so focused in such a small narrow margin it may be able to basically blast through the wall. The main disadvantage is that the dish antenna is subject to damage from weather, especially if not mounted correctly. Highly directional antennas, for the most part, require a clear line-of-sight between ends. Your NameJeret Burnett NETW360, Professor’s Name Mario  Kosseifi Current Date July 15, 2012 Lab #2 Part 2, RF Behavior Lab ReportDetermining the behavior of an RF signal can be an aid when troubleshooting a WLAN that does not function properly. In this project you will use several online calculators to computer the RF behavior. 4. 30dBm 7. 8. 4 11. -81. 538 19. -5. 474469367710745 |Name |Power Output | |Cell Phone |. 6 W | |Cordless phone |10 mW | |Garage Door Opener |100 W |

Environmental Impact of Aviation Essay

Today, the world is bothered by the environmental issues reverberating in different parts of the world. Part of this environmental issue is focused on global warming. As part of the whole world’s response on the important concern, laws and policies have been drafted. Some of the known environmental policies are Clean Air Act and the Kyoto Protocol. Meanwhile, the Kyoto Protocol is an agreement between different nations, mainly industrialized, adopted on December 1997 in Kyoto, Japan (United Nations Framework Convention on Climate Change, 2008). The central function of the protocol is to set a target on the greenhouse gas emission for member countries (United Nations Framework Convention on Climate Change, 2008). This is to further reduce the impending consequences of the greenhouse effect. Since the report of international scientist that climate change is worsening, all sector of the society and all nations have been invited to participate in activities primarily to help cut gas emissions. Each government of member nations also implemented programs in order to reduce the gas emission that is aggravating the global environment situation. For the past years, the reality of the phenomenon has been severally debated, even among politicians. Eventually, environment was considered as priority in the policy making. Additionally, the international concern on global warming has reached every sector, big or small, in the society. Among the business sectors, rules and regulations have also been adopted internationally in order that a standard of environmentally hazardous substances be eliminated or minimized. An example could be the non use of lead. In Europe, the Restriction on Hazardous Substances was adopted and imposed upon all its suppliers worldwide (ROHS, 2008). According to the guidelines, minimum amount of the hazardous substances should be maintained. Hence, quality of the product depends on the substances comprising the product. The environmental issue, however, is not only limited to gas emissions and global warming. Instead it covers all kinds of pollution. In the field of aviation, policies and guidelines on environmental compliance also apply. Aviation plays a vital role in transportation. It is the easiest, fastest, and more convenient means in transporting people and goods from one border to another or from nation to nation. Being an essential factor in the growth of economy, it also has an essential contribution to global warming and other environmental problems. Remarkably, the aviation contributes to various environmental problems. One of the major problems faced by aviation industry is the noise pollution being suffered by the residence nearby airports (Kutz, 2008). At present, the aviation is one among the growing business opportunities. Since new and more improved planes have been introduced, the air traffic also increases. As such, there is also intensification of the environmental concerns. The second environmental problem affecting the industry is the climate change. Climate change is the foremost environmental phenomenon that is bothering the international community. In addition, it is believed to be the cause of the drastic change in weather and the emergence of illnesses. The third major problem being caused by aviation is the poor air quality (Kutz, 2008). All these environmental concerns are mandated by laws to be addressed by the aviation industry. In the field of aviation, BAA is widely known for being the world’s leading airport company (House of Commons, et. al. , 2004). At present, it is operating eight airports namely; Heathrow, Gatwick, Stansted, Glasgow, Edinburgh, Aberdeen, Southampton, and Naples (BAA, 2008). At present, its success still continues to shine and more developments are being planned in the future. In a report propounded by the BAA for year 2005-2006, the company laid down in details the achievements and plans of each airport. Aside from that, it also presented its financial statement to show the financial operation of the company. At a glance, the company has indeed a successful and is in a stable financial status. The over-all operation and employee handling are excellent. According to Mick Temple, Divisional Director, the company recognizes the existence of the environmental issues (Temple). But, the report of BAA did not actually addressed all issue about environment related to airline or airport. In addition, the BAA presented its report in a categorical yet orderly manner. After presenting the achievements, developments, and plans of each airport, the BAA also discussed issues faced by the company. It has specified corporate responsibilities. In scrutinizing the report, the BAA did not actually address all environmental problems. As stated earlier, aviation industry is challenged by problems on poor air quality, noise pollution, and climate change. In the report of the BAA, the report laid down the corporate responsibilities of the company but in a summarized and general form. Although it has addressed all the problems cited, it did not actually specified its future plan, present programs, current status and its over-all stand on the impending environmental problems. In addressing the environmental problem on air quality, the report stated its concern on the problem that is affecting both local and national (Temple). Notably, airports around emits nitrogen dioxide and other fine particles that have negative effect on heath and environment (BAA, 2008). In addition, it has stressed on government’s declaration of Heathrow’s compliance to EU Air Quality Standard (Temple). Contributing to poor air quality, however, are M4 and M25 traffic (BAA, 2008). Likewise, the report merely added measures it can implement in order to comply with the standard. These measures include â€Å"investing in public transport, promoting alternative fuels for airport- based vehicles, and using charges to penalise aircraft with poorer emissions standards† (Temple, p. 35). However, no other reports were propounded to show that these measures have been adopted. Furthermore, the company merely reiterates its desire to review its emission while extending help to other companies with regard to the problem. As to noise pollution, the aviation is considered as one among the major contributor due to noise caused by take offs and landings? taxiing, and engine tests (BAA, 2008). With regard to BAA’s stand on noise pollution, the company has laid down its strategies in minimizing the noise. In addition, it stated its desire to work with local government, airlines, and air traffic controllers to jointly implement these strategies. First strategy is the encouragement on the use of quieter new aircraft and engine by the manufacturers (Temple). The second strategy is giving reward to those airlines using a quieter aircrafts. The fourth strategy is the improvement of compliance with quieter operating practices (Temple). The last strategy is concerned with updates of information by keeping the noise-sufferers informed better (Temple). Today, the company is doing its part in addressing the complaints of those affected by the noise of airports. Furthermore, on the most relevant environmental issue on climate change, the company proudly stressed its target of 15% reduction on its carbon dioxide emission by 2010, which is even higher than the standard (Temple). The company’s strategy is focused on energy efficiency and renewable energy (Temple). Moreover, it has also implied its adherence to Emission trading which allows business incapable of achieving the target to buy permits from those industries that are capable but only within an overall cap (Temple). At present, the company is lobbying for the recognition of the emission trading to be an acceptable mechanism in greenhouse gas emission. In addition, in its desire to reduce the impact of climate change, the company is committed in investing into new energy efficient technology, sourcing out more renewable energy, reducing emissions of vehicles in the airport, among others (BAA, 2008). Based on the above mentioned, the report of BAA may be said to have mentioned the major environmental problems faced by airlines and airports. However, it was not able to state its impact on environment. It did not also laid down the programs it has adopted to address the issue. But nevertheless, it has recognized its role in the environment. By looking into the context of the report, is can be said that the company has been unfairly assessed. It is unfair on the reason that the report presented more on the developments, future plans, and achievements of the company but did not directly addressed on the corporate responsibilities. It is true that corporate responsibility have been included in the middle part, but there is no clear stand of the company. The report stressed on the company’s plan to expand, increase passengers, intensify investment but there are no more details as to the company’s action on environmental issues. Significantly, it did not state any of its achievements in helping in the abatement of the environmental problems. It merely presented it strategies but no update has been included as to the implementation and status of the company. Interestingly, the report of the Managing Directors of each airport has concentrated on the importance of shareholders. Hence, the report was concentrated on the good sides about the company. Airports and airlines are considered as one among the places vulnerable of being attacked by terrorist groups. Notably, in 2007, Glasgow Airport has been attacked by terrorists (BAA, 2008). On that very threatening day, the company has been given an idea on the loopholes on the airport’s security. It is also of no doubt that millions of passengers and employees come in and out of the airport. In line with this, the treat of terrorism has made passenger paranoid about safety. Hence, it is but necessary that safety should be the paramount concern of the company. In response to the attack in July, 2007, the company declared its dedication in making its passengers secure. As part of its response, the company has closely worked with the Department for Transport (DfT) for guidance on its security measures (Temple). Moreover, in concurrence with the government’s standard, the company has conducted a full range review of its security systems (Temple). In order to show its sincerity in making its airports secured and safe, the company has started using technological innovations such as hold-baggage screening, new security screening and x-ray screening (Temple). In line with the company’s purpose of ensuring safety and health of its passengers and employees, policies and programs have been adopted. Additionally, according to the report, the company’s stance on security is that it is considering it as a crucial issue. Aside from its possible effect on the company’s reputation, it also recognizes its effect on passengers’ experiences. As such, the company works closely with the government agencies, armed forces, and police force in order to upgrade its security system and match with that of government security (Temple). Furthermore, it has committed itself to comply with regulations concerning safety. In accordance with this, the Health, Safety, Security and Environment (HSSE) Executive Committee have been founded with the primary goal of determining and addressing these issues affecting the company (Temple). With the growing environmental concern, some say that aviation industry is not a sustainable business. However, BAA has proven this statement wrong. In order that environmental issue be addressed and at the same time maintain or increase the profitability of the company, the company may enhance its training on environmental awareness to its employees and passengers. In addition, carbon dioxide emission can be reduced through the use of biodeisel and other alternative energy. Moreover, through reducing its flight, the company could decrease its environmental impact but can increase profit because all flights would be certainly be filled. Another measure could be on the retail sector. Since the airports are open for stores, environmental measures should also be imposed upon them. Some of the policy that can be adopted is the ban on non-recyclable things. Through this measure, all waste coming from stores would be put to recycling areas. Finally, the company could enhance its pro- environment policies despite cost on its part. This way, the cost would be repaid by the loyalty and continued patronage of the passengers. References BAA. (2008). Corporate Responsibility. Retrieved October 31, 2008, from http://www. baa. com/portal/site/default/menuitem. a875fc32913746f398a5e186c02865a0/. House of Commons, Great Britain Parliament – Environment, Food and Rural Affairs Committee. (2004). International Challenge of Climate. London: The Stationery Office. Kutz, M. (2008). Environmentally Conscious Transportation. London: John Wiley and Sons. ROHS. (2008). Restriction on the Use of hazardous Substances (ROHS). Retrieved October 31, 2008, from http://www. rohs. gov. uk/. Temple, M. (2008). BAA Annual Report 2005/06. Corporate Responsibility. Retrieved October 31, 2008, from http://www. baa. com/assets//B2CPortal/Static%20Files/BAA_Annualreport_05-06. pdf. United Nations Framework Convention on Climate Change. (2008). Kyoto Protocol. Retrieved October 31, 2008, from http://unfccc. int/kyoto_protocol/items/2830. php.

Sources of Software Assignment Example | Topics and Well Written Essays - 250 words

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EXPLAIN WHAT ADRIENNE RICH MEANS BY A POLITICS OF LOCATION IN STORY Essay

EXPLAIN WHAT ADRIENNE RICH MEANS BY A POLITICS OF LOCATION IN STORY NOTES TOWARD A POLITICS OF LOCATION EXPLAIN IF AGREE OR DISAGREE - Essay Example She describes that the form of her body (white and female) has helped to shape how she interacted with the world while growing up, and how the world interacted with her as a white female person. She goes on to say that while she can be identified as certain things by looking at the form of her body, it does not define who she has become as a person. Rich describes the politics of Marxism and Leftist feminism as being cut off from the reality of actual women moving through the world. Because feminism at this point in time had become without identity (â€Å"faceless, raceless, classless†) she feels that the theories that feminism was based upon could no longer be used to justify feminism. Once again, she thinks, the small minority are defining the majority without really understanding the people they are defining. I think she means this to be a parallel to white patriarchal culture, except that now it was white feminism limiting the understanding of women. By using her own body as a base for location, and turning away from the politics that formed feminist thinking up to 1985, Rich gives me the feeling that she would approve of feminism in 2009. Today we try to accept each individual as he or she happens to be and ignore a lot of stereotyping. We are not perfect, and still have not found a complete answer to the question â€Å"Who is we?† but we are still

Intergrating Case Management Essay Example | Topics and Well Written Essays - 250 words

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Research Operations Report Essay Example | Topics and Well Written Essays - 2500 words

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The Carbonated Soft Drink Industry Essay Example for Free

The Carbonated Soft Drink Industry Essay The first drinkable â€Å"man-made† carbonated water was created by â€Å"British chemist, Dr. Joseph Priestley, in 1767. † â€Å"German-Swiss jeweler, Jacob Schweppe, was the first large-scale commercial producer of carbonated waters, and is often referred to as the father of the soft drink industry. The first known US manufacturer of soda water, as it was then known, was Yale University chemist Benjamin Silliman in 1807, though Joseph Hawkins of Baltimore secured the first US patent for the equipment to produce the drink two years later. † Pharmacies nationwide around the 1820s provided the beverage as â€Å"a remedy for the various ailments, especially digestive. †1 As sugar and flavorings were added customers increasingly consumed them for refreshments, although they were still being sold for their therapeutic value. In the late 1800s, several brands emerged that are still popular to this day. â€Å"Pharmacists experimenting at local soda fountains invented Hires Root Beer in Philadelphia in 1876, Dr. Pepper in Waco, Texas, in 1885, Coca-Cola in Atlanta, Georgia, in 1886, and Pepsi-Cola in New Bern, North Carolina, in 1893, among others. † Analysis of the Soft Drink Industry. â€Å"The carbonated soft drinks market includes standard and diet colas, fruit-flavored carbonates, mixers, energy drinks, and other carbonated soft drinks. † The global carbonated soft drinks â€Å"market grew by 0. 4% and generated total revenues of $146. 4 billion in 2006. Market consumption volumes increased with compound annual growth of 1. 3% to reach a total of 155. 4 billion liters in 2006. The performance of the market is forecast to accelerate slightly, with an anticipated compound annual growth of 0. 7% for the five-year period 2006-2011 expected to drive the market to a value of $151. 4 billion by the end of 2011. †4 â€Å"The global carbonated soft drinks market was close to stagnation during the 2002-2006 period, as poor revenue performance in lucrative but mature markets, such as the US and Japan, were only partially outweighed by dynamic growth in markets such as China. Similar behavior is expected going forward to 2011. †4 Of all the various carbonated drinks offered in the market today, â€Å"the standard cola segment was the largest in 2006, with total sales of 67. 6 billion liters, equivalent to 43. 5% of the market’s overall volume. The fruit flavored carbonates segment contributed to a further 34 billion liters in 2006, equating to 21.9% of the market’s aggregate volume. Brazil Canada, Mexico and the US form the most lucrative market for carbonated soft drinks, generating 58. 5% of the global revenues; Europe accounts for 31% of the global market value. †4 â€Å"Players in this market may opt for an integrated business, in which they sell ready-to-consume drinks to retailers, or they may adopt a business model in which they sell raw materials, syrups, to a network of bottling companies, which may be independent or owned to some extent by the players. †4 A Five-Forces Analysis of the Soft Drinks Industry Revenues are extremely concentrated in this industry. The main players in this industry are the Coca-Cola Co. , PepsiCo Inc. and Cadbury-Schweppes. â€Å"The Coca-Cola Company is the global market leader, with sales equating 47. 1% of the market volume. PepsiCo. Inc. is a significant competitor, with a 22% market share by volume [and Cadbury-Schweppes accounts for 8. 8% of the total market share by volume. ]†4 There is a tough competition between the existing companies in the industry and a moderate degree of rivalry. The inputs for the soft drink industry are primarily sugar and packaging. These can be purchased from many sources on the open market. Aspartame, an important ingredient, â€Å"[is] available from only one or two viable companies upstream. † However, there are substitutes, like saccharine, available in case the price for aspartame goes high. In case sugar becomes too expensive, the firms could easily switch to corn syrup, as they did in the early 1980s. Hence, supplier power is moderate. For more than a decade the soft drink industry has sold their products to their consumers through five principal channels: supermarkets/hypermarkets, mass merchandiser, fountain, vending machines and convenient stores/gas stations. Supermarkets/Hypermarkets are principal customers for the soft drink industry. They do not have much bargaining power due to their tremendous degree of fragmentation. Their only power is control over shelf space that can be allocated to the various products; this power does give them some control over profitability. However, consumers expect to pay less through this channel, as a result of which prices are usually lower, resulting in a somewhat lower profitability. National mass merchandising chains such as Wal Mart have a higher bargaining power. Due to their scale and the magnitude of their contracts they can negotiate more effectively. As a result of which they are not very profitable for the players of the soft drink industry. The least profitable channel for soft drinks is fountain sales. Profitability at these locations are so abysmal that they are considered to be â€Å"paid sampling† by the soft drinks industry. However, these channels are considered to be important as an avenue to build brand recognition and loyalty. â€Å"While fast food chains make 75% gross margin on fountain drinks, the soft drink industry only makes 5% margin. † Vending machines are considered to be the most profitable channel for the soft drink industry. There are no buyers to bargain with at these locations, players of the soft drink industry directly sell their products to consumers through machines owned by bottlers. Prices at vending machines are usually high. The final channel to consider is convenience stores/gas stations. The players of the soft drink industry directly negotiate with the owners of these channels. Profitability for players is relatively high and the â€Å"retailers at these channels vary proportionately. Consumers are likely to be strongly influenced by brand, and this weakens buyer power: retailers need to stock brands popular with consumers, even if these are more expensive. †6 The only buyers with dominant power are fast food outlets. Despite this, they only account for about 20% of the total soft drink sales. Overall, the buyer power is moderate. Through the early 1960s, soft drinks were synonymous with â€Å"colas† in the mind of consumers. Over time, however, other beverages, from bottled water to teas, have become more popular. There are also other substitutes for soft drinks, like alcoholic beverages, fruit juices, energy drinks, vitamin waters and coffee. Leading players like Coca-Cola and PepsiCo have responded by expanding their product offerings through alliances (e. g. Coca-Cola and Nestea), acquisitions (e. g. Coca-Cola and Minute Maid), and internal product innovation (e. g. PepsiCo created Orange Slice), thus capturing the value of increasingly popular substitutes internally. Despite all this, â€Å"in several countries consumer health concerns over the high-sugar content of many soft drinks is causing a decline in sale. † In order to tackle this problem, â€Å"leading manufacturers are developing their product ranges accordingly. † For example, Coca-Cola responded by introducing Coke Zero, which is â€Å"sugar-free. † The demand for the product has grown steadily since it was introduced in 2005. Overall, the threat from substitutes is moderate. It is possible for a new player to enter the soft drink industry as â€Å"an entirely new start-up, or as an existing company diversifying into carbonated soft drinks manufacturing. However, the new player would have to overcome the tremendous marketing muscle and market presence†4 of leading players like Coca-Cola, PepsiCo and few others who have established brand names that are as much as a century old. These players have maintained strong relationships with their retail channels and would be able to defend their positions effectively through discounting or other tactics. Overall, there is a weak likelihood of new entrants. The Coca-Cola Company There are few companies, if any, across the world with more recognizable brand names than Coca Cola. The name in itself is likely worth far more than the total assets held by Coca Cola, Inc. Coca-Cola Company is involved in marketing, manufacturing, and distributing nonalcoholic beverages as well as their syrups and concentrates across the world. They offer a vast array of bottled and canned beverages. The company is mainly involved in carbonated beverages, known as soda as well as a myriad of other names, but also produces noncarbonated beverages such as juice, energy drinks, ready-to-drink coffee and tea, water, and flavored water. Completed beverage products are sold mainly to distributors, while their concentrates and syrups may be sold to bottling and canning operations, and fountain wholesalers and retailers as well as distributors. Coca-Cola Company, which is headquartered in Atlanta, GA, was founded in 1886. They have 90,500 employees world-wide. Coca-Cola’s Business Strategies Ever since its advent, Coca-Cola’s strategies have been winning ones. The history of Coca-Cola reveals how national markets in soft-drink brands developed. â€Å"Asa Candler, [founder of Coca-Cola,] underestimated the importance of the bottling side of the business and in 1899 sold the national rights to bottle Coke for a fairly small sum to Benjamin F. Thomas and Joseph B. Whitehead, who then started a national network of bottlers, creating the basic franchising format by which the industry is still run. †3 One of the main reasons Coca-Cola licensed bottlers to mix the product, package, and distribute it within a specific territory, was to limit the cost of transportation. Today, this model of selling syrups to bottlers who then mix the product, package, and distribute it, is widely used by almost every soft drink industry in the world. In the long run, this complete alignment of Coca Cola and its bottlers has proved to be a winning strategy. Coca-Cola is a brand name that’s known widely throughout the globe. The company has a competitive advantage based on differentiation over other soft drink industries. They are able to set prices at the industry average and gain market share since their customers are willing to choose their products over their competitors. Coca-Cola has been successful at retaining their differentiation position by satisfying their customers’ needs, although this resulted in some higher costs in some of their value chain activities. For example, when Coca-Cola realized that their customers were looking for drinks other than just â€Å"cola† they responded by expanding their product offerings by introducing several different types of carbonated drinks, fruit juices, energy drinks and bottled water, tea and coffee. Some of these were organically started while others were started via acquisitions and alliances. Today, Coca-Cola sells more than 400 brands in 200 countries. The strategy has greatly improved Coke’s competitive position. The other factors that help them retain their differentiation position are: their premium brand image, their products are considered to be of high quality and they are easily accessible. In the 1980s and early 1990s, then CEO Roberto Goizueta built an international expansion strategy around the central brand—Coca-Cola. Today the company is well positioned in key emerging markets such as China, Brazil, Russia, Turkey and Argentina. In 2007, these emerging markets recorded strong double digit growth in volumes. It looks like Coca-Cola will continue to benefit from the underlying growth in the consumption of soft drinks in these markets. Coca-Cola’s strategies have definitely helped them achieve their goals in being the leading beverage company in the world. They were ranked number 1 in the â€Å"Ranking for the Food Beverage Industry categories of Best EthicalQuote Progress and Best Reported Performance in Geneva-based Covalence’s Ethical Ranking 2007. † They also ranked number one in sparkling beverages, juices and juice drinks, and ready-to-drink coffees and teas. Coca-Colas strategies, besides helping them achieve the number 1 rank in the beverage industry has also helped them achieve their financial goals, despite cut-throat rivalry with other beverage companies, as we can see from the table below. Their most competitive competitor is Pepsico, Inc. Pepsico, Inc. ’s beverage division is involved in more or less the same activities as Coca-Cola Company—manufacturing, marketing, and selling beverage concentrates, syrups, and finished products including carbonated beverages, energy drinks, water, and juices. The major difference between Coca-Cola and Pepsico is that Pepsico also has a huge snack division. Despite Pepsi’s strong portfolio, Business-Week and Interbrand, a bran ding consultancy, recognizes Coca-Cola as the leading brands in their top 100 global brands ranking in 2006. They valued Coca-Cola at $67,000 which was well ahead of Pepsi which has a ranking of 22 having a brand value of $12,690 million. Coca-Cola’s strategies have helped the company hold the title as the leading beverage company in the world and also maintain a very strong financial portfolio. According to the 2007 annual report for Coca-Cola, obtained from their website, the company’s earnings per share growth for the year alone was 19%. Other impressive growth rates include their net operating income and revenue growth of 20% and 15%. Source: www. coca-cola. com From the above table we can see that Coca-Cola’s revenues, net income and assets have grown over the years. Their profit margin for 2007 however is lower than that of 2006. A profit margin of 20. 7% means that, Coca-Cola has a net income of $0. 207 for each dollar of sales. This also means that Coca-Cola has increased its net income in 2007 by diminishing profit margins. Although the difference in profit margins for 2006 and 2007 may appear to be small, it affects the company’s financial portfolio significantly. So, why is the leading company in the beverage industry, despite having a stellar performance facing a decrease in their profit margin? To help us answer this we will look closely at the company’s various resources and capabilities with the help of a SWOT Analysis. SWOT Analysis Although Coca-Cola’s â€Å"strong band value facilitates customer recall and allows Coca-Cola to penetrate markets, the company is threatened by intense competition which could have an adverse impact on the company’s market share. †8 SWOT analysis is a strategic planning tool that helps in evaluating the Strengths, Weaknesses, Opportunities and Threats of a company. The SWOT analysis deals with the firm’s internal characteristics: strengths and weaknesses, and the opportunities and threats presented by the external environment. StrengthsWeaknesses Leading brand in the beverage industry Increase in revenueNegative performance in North America Decline in profit margin OpportunitiesThreats Room to grow Aging of baby boomersFierce competition Slow growth of carbonated beverages Strengths. Leading brand in the beverage industry Coca-cola is the world’s leading brand in the beverage industry. There are not many products that have a recognizable brand name as Coca-Cola. â€Å"The company has a leading brand value and a strong brand portfolio. †8 They have been recognized as the leading industry by many national magazines and have been honored with awards in different categories. â€Å"Furthermore, Coca-Cola owns a large portfolio of product brand. The company owns four of the top five soft drink brands in the world: Coca-Cola, Diet Coke, Sprite and Fanta. †8 Coca-Cola’s brand name is their key differentiator from that of the company’s competitors; this has helped the company beat their competitors in the market place. Their strong brand image has helped them introduce new products in the market like, Vanilla Coke, Cherry Coke, etc. The company has also been able to â€Å"make large investments in brand promotions. The company’s strong brand value facilitates customer recall and allows Coca-Cola to penetrate new markets and consolidate existing ones. † 8 Increase in revenue In 2007, Coca-Cola recorded total revenues of $28. 86 billion, an increase of 20% from 2006. Three segments (Latin America, Eurasia and Bottling Investments) of the company experienced double digit growths in their revenues from 2006. Both Latin American and Eurasia grew by 24% each during fiscal 2007, over 2006. During the same period, revenues for bottling investments grew by 53%. Together, the three segments of Latin America, Eurasia and bottling investments, accounted for more than 35% of the total revenues during fiscal 2007. â€Å"Revenues growth in [these three sections] contributed to top-line growth for Coca-Cola during 2007. † 8 Weaknesses Negative performance in North America While Coca-Cola had robust revenue growth in some of their business sections they had a negative 1% unit case volume growth in one of their business section—North America. The performance overall in this section was not as expected, they had a 1% increase in their operating income and a moderate 11% increase in their revenues. North America is one of Coca-Cola’s core markets generating 25% of total revenues during fiscal 2007. Hence, â€Å"a strong performance in North America is important for the company. † 8 This slow and negative performance in North America can â€Å"impact the company’s future growth prospects and prevent Coca-Cola from recording a more robust top-line growth. † 8 Decline in profit margin Despite having an overall increase in revenue of 20% for fiscal 2007, from 2006, Coca-Cola’s profit margin for the period was 20. 7%, a decrease of 3. 4% from 2006. We can tell from this that looking at the earnings of a company often doesnt tell the entire story. Increased earnings are good, but an increase does not necessarily mean that the profit margin of a company is improving. We can see in this case, that Coca-Cola had a lower profit margin from 2006 despite having higher revenues and income for 2007. This only means that Coca-Cola had costs that have increased at a greater rate than their sales; thus leading to a lower profit margin. This is an indication that costs need to be under better control. Opportunities Room to grow According to Muhtar Kent, President and Chief Operating Officer of the Coca-Cola Company, â€Å"Consumer spending for nonalcoholic ready-to-drink beverages is growing at 6-plus percent per year—the highest among consumer packaged goods. †7 Coca-Cola’s international market is thriving, led by double digit growth in developed markets like Brazil, Russia, India and China. Latin America was the second most profitable operating group for Coca-Cola in 2007. The company is looking forward â€Å"to the Beijing 2008 Olympic Games; [they] are strategically investing in [their] infrastructure and route to market to connect [their] brands with consumers in the Pacific operating group. [The company’s] balanced portfolio, geographic diversity and changing global demographics position [them] well to continue growing [their] business. †7 Aging of baby boomers The aging of the baby boomers, which includes US citizens born between 1946 and 1964, began crossing the 60-years mark in 2007. â€Å"Most of the 78. 2 million strong baby boomer generations will turn 60 in the next two decades. †9 This is likely to increase the sales of â€Å"health-related goods and services on a US-wide basis. †7 This generation of baby boomers will provide Coca-Cola the opportunity to market its Minute Maid rage of fruit juices and juice drinks, particularly those rich in vitamins.

Segmentation Targeting and Positioning of Vodafone

Segmentation Targeting and Positioning of Vodafone Vodafone is one of the biggest names in wireless technology, and is continuing to grow a solid, loyal customer base because the company offers excellent product along with excellent customer service. Vodafone has a an interesting history, back to 1984, when it was still a subsidiary of the well-known Racal Electronics Plc. In September 1991, the Vodafone Group Plc decided to separate itself from Racal Electronics Plc, they later merged with another company, the Air Touch Communications Inc, in July 2000. In 2001, this wireless company first introduced instant messaging on their networks, to provide for a faster way to communicate among their users. The company also launched the first ever 3G service in Europe with their innovative mobile connect GPRS/3G data card in 2004. In February 2007, the company had another major milestone when it partnered with Yahoo and Microsoft in order to launch instant messaging services that can easily be accessed using either a personal computer or a mobile phone. This is one of the milestones that made it into the wireless giant it is today. The company continues to offer a variety of services, including data, messaging, voice and broadband. Its continuous advancement in the data services, they offer by developing its 3G networks and the capabilities of various handsets. Its a mobile service thats easy to use, with low-cost telephone line and even DSL broadband connection.It also provides you monthly billing cycle,pre-paid agreement or even a contract.And is known for its best customer services. BACKGROUND:-(INTERNATIONAL EXPANSION STRATEGIES). Vodafone Group Plc is the worlds leading International mobile telecommunications Group, with a major presence in Europe, the Middle East, Africa, Asia Pacific and the United States through the Companys subsidiary undertakings, joint ventures, associated undertakings and investments. The basic concept of this case is to look at Vodafones future expansion, growth and global strategies within the concept of internationalization and competitive advantage issues.The reason to launch Vodafone in Mexican market is to gain profitibility,gaining high revenues by doing better business in more areas or internationally.Because if Vodafone will not be launched in Mexico some other mobile company will do the same.Being one of the worlds largest company its easy for Vodafone to enter the Mexican market and capture it. PESTEL ANALYSIS:- It is the technique of environmental scanning of any industry on the basis of factors like political, economic, social, technological, legal and environmental. PESTLE analysis uses a framework of external factors for macro-environmental scanning of the industry to help in taking advantage of opportunities and making contingency plans for threats. SEGMENTATION, TARGETING AND POSITIONING:- It together comprise a three stage process; Segmentstion (identifying meaningfully different groups of customers) Targating (selecting which segment to serve) Positioning (implementing chosen image and appeal to chosen segment) it furthur includes product,price,distribution and promotion. SEGMENTATION:- Segmentation is the process of splitting (segmenting) the entire market into smaller groups. Demographics is the most common variable of market segmentation that includes age, gender, income, geographic, psychograhpic and behavioural.For launching a Vodafone in Mexican market, the product is for both the genders ,of evry area with variaing ages and incomes. Markets are made up of many distinct groups of people who have common characteristics as consumers. Some of those groups may not be immediately obvious. All of them command tremendous buying power. But they direct it to products and services that address them as a highly individual subdivision or segment of the market. Define those market segments right and you may even end up dominating the market. Because the more you know about a market segment: The better you can provide a product or service that attracts it. The better you can create marketing materials that appeal to it. The more cost-effectively you can direct them at the markets that respond the best. The easier it is to position your company and product and build brand loyalty. Its hard to successfully address a large, vague, undifferentiated market. Its easy to address a tightly focused, highly individualized group of people with clearly defined preferences and needs. Market segmentation isolates those groups, and makes them accessible. It helps your organization understand them and reach them and profit too. TARGETING:- In this step one or more segment is targeted.Generally depend on several factors. How well are existing segments served by other manufacturers? How large is the segment, and how can we expect it to grow? Do we have strengths as a company that will help us appeal particularly to one group of consumers? It will be more difficult to appeal to a segment that is already well served than to one whose needs are not currently being served well.Mexican market is already being served well but Vodafone being a giant can capture the market by providing equally better or more advanced services. POSITIONING:- Positioning basically involves implementing the targeting. Product (premium,basic) Price (premium,low price,value) Distribution (intensive,selective,exclusive) Promotion (prestige,fun,powerful) Being operationally excellent firm,by maintaing exceptional efficiency,the firm providing reliable service to the customer at a significantly lower cost. Vodafone can capture the market.Its customer intimate firm which excel in serving the specific needs of the individual customer quiet well. Technologically it is prodviding the most advanced products currently available. COMPETATOR ANALYSIS AND MARKET ENTRY STRATEGY:- Its a critical part of firms activities.Competitor analysis has several important roles in strategic planning; It helps management to understand their competitive advantages/disadvantages relative to competitors. It generate understanding of competitors past, present andfuture strategies. It gives an informed basis to develop strategies to achieve competitive advantage in the future. Also help forecast the returns that are made from future investments i.e how will competitors respond to a new product or pricing strategy? Entering a new market is always a challange.The size of the country, number of opportunities and geographical size matters precisely.Solid market entry strategy needs proper market research to know existing opportunities, understand the competitive landscape and to know about potential clients.A market entry strategy has to be developed that fits companies objectives, timelines and budget. A successful Market Entry Strategy includes, assessing the feasibility of the product in market, what are the industry trends, what potential competitors are doing and what pains clients are facing that can address. If the market research reveals a robust opportunity, then it is time to develop your market entry strategy with a trusted partner that can not only write the strategy, but also help you implement it, in market.

Internet Privacy :: essays research papers

Internet Privacy: Is the Internet as safe as everyone says? As every generation comes they bring with them a new invention from cars to television to the telephone the basic existence of man, in my eyes, is to advance both technologically, thus making life better for us all and also scientifically. Man wants to know all we want to be able to answer all the questions out there as every day goes by we get closer and closer to answering some of our questions. Everyday new cures for diseases are found and also new diseases are discovered, new discoveries are made in various fields, at the same time however new problems are arising. Man in every era has depended on some form of tool to help him to his tasks whatever they may be, a tool to make things easier. This tool is technology; technology does not have to be the modern thoughts of computers. Technology is "the science of technical processes in a wide, though related field of knowledge." That is the definition given by The New Lexicon Webster's Dictionary of the English Language. So technology can be anything as long as it helps us advance. It can be anything like a plough to help a farmer, a television to help the media and the telephone to help us communicate. The latest technology of the 20th Century is the Internet and it has placed a great mark on our society. It is the new "place to be" where business can advance, people can interact worldwide at the click of a mouse and this has revolutionarily changed the world. In the world of the Internet there are millions of members worldwide and that means it is a very profitable arena. In an area where there is money there are criminals and that is where the modern criminals of the world are behind computer screens. They may be credible individuals in society and they could also be credible corporations and organizations that are finding a quick way to make money and by doing this they are breaking ethical rules of society (even though it is hard to determine the ethics of the internet) and one of these crimes is the violation of the privacy of others. I have logged on to the internet and have felt safe, like anyone should that logs on to the net, that I am the only one viewing my mail or cruising the net, I feel like I am the only one that knows where I have been and that no one is tracking me.

The Tunnel Essay -- Personal Narrative Writing

The Tunnel My unforgettable senior football season was coming to a close. The whole team knew that this was the last game of football we would ever play together. After this game, it would never be the same. I had been waiting my whole life to experience what I was about to face in the next few hours. To me, and to the rest of my hometown, high school football isn’t just a game; it is a lifelong passion. I grew up watching my role models play the same game I was about to play where the football-frenzied town of Mahnomen won four state championships in a row. Since the seventh grade, my team was expected to make it to the state play-offs our senior year, and now we were playing for the state tittle. We didn’t have anybody extremely fast, strong, or even smart on our team. In fact, no senior would go on to participate in college football. We were just a few guys that would never give up no matter what the circumstances. Those guys were my team, like I was the one leading them all into a battle field, even though that was the feeling of half the other guys. My team had been nicknamed â€Å"The Cardiac Kids† because of our ability to pull out a victory by one point, which we had done in six games that season. Critics thought a team that could only squeak out so many victories by one point was bound to lose their composure in the play-offs. Throughout the season we had worked towards becoming the team we now were. We were proud of how far we had gotten. The only thing left to do was to play our hardest and to see how well we matched up against the best team in the state. All of this led up to the moment of the State Championship Game. From the locker room, we walked into the dark tunnel leading to the nervous light of The M... ...at is he didn’t like how he wrote about things he didn’t know about, when he could have been writing about important things that were happening to him because he did know about them. This makes me see the importance of my paper better. I also changed some things around in the paper. As you can imagine, when Dr. Morgan criticized writing about â€Å"The Big Game† I was like, â€Å"Oh Crap, now I have to write it all over again.† As you can see, I decided to stay with my original idea, but just focus on it at a different point. Instead of telling what happened, I focus more on why it affected me. Like when I wrote, †Because of what I learned that moment, I will be able to see when teamwork is needed and how to pursue it. You might not think that this is such an important quality, but this connects with me every day of my life.† I think this helps fit the assignment better.

Crumbling Dreams in Arthur Millers Death of a Salesman :: Death Salesman essays

Crumbling Dreams in Arthur Miller's Death of a Salesman Arthur Miller's Death of a Salesman is a play best summed up in its title, it is just that, the death of a salesman. This death is not necessarily the physical end to a human life, but the crumbling end to the dreams of Willie Loman, the play's main character. The three main parts to Willie's world are his job, his family, and his image as seen by the rest of the world. Although these parts are interwoven and interrelated, they are best divided and given separate analysis. The first part of Willie's world is his job. Willie is a salesman for a large company in New York. Willie's self-image and much of his self-worth are based in his job. In his own mind he is still as he used to be, well known and well respected among the clientele in the New England area. Things have changed though and the people Willie once knew in the business are no longer there and he no longer has the connections he once had. His inability to cope with and adapt to this changing business has caused, among other things, a loss in pay. Willie has lost his competitive edge, and with it his feeling of self worth and identity. The second part of Willie's world is his family, more specifically his son, Biff. Biff is the firstborn and favorite son of Willie. Willie has high expectations of, and transfers his dreams, as so many fathers do, onto Biff. Biff can not live up to the expectations of his father and has dreams of his own which cause Willie to see him as a loafer, a shiftless bum with no desire to succeed. Although Willie's dreams are not realized in Biff, his son's respect is still important. This respect is lost when Biff catches his father in an affair with a young lady. Even though this is not talked about (Biff never told anyone, not even his mother) it still creates tension and causes Biff to lose the respect he once held for Willie. Willie's main philosophy in life is "Be liked and you will never want" and this is the cause of the problems in the third part of Willie's life, his image. Image is everything to Willie. In his past he was a well liked, well known, respected man who turned his image into his success, but his image has changed.

Langston Hughes’ “Mother To Son” Essay

An Explication of Langston Hughes’ â€Å"Mother to Son† Langston Hughes once stated in his own words that his whole purpose for writing was, â€Å"to explain and illuminate the Negro condition in America.† In the poem â€Å"Mother to Son†, he denotes his belief on racism in America. In â€Å"Mother to Son†, a mother is giving advice to her son about life from her perspective and experiences. She wants her son to keep striving on what he believes and to have a more prosperous life than what she had. Langston Hughes was born in Joplin, Missouri in 1902. He lived with his grandmother for most of her life but often stayed with his mother in Cleveland, Ohio. He grew up in poverty and was exposed to racism in his youth. However, he believed that things would change and his culture must press on. By 1929, he was a well know poet during the Harlem Renaissance, the growth of African-American art and literature in Harlem, New York. He promoted the African-American culture and supported the Civil Rights Movement. Hughes used poetry to express himself and has written over sixty poems. One of them being â€Å"Mother to Son†, which expresses how the blacks must stand tall and believe in a better future. Starting with the title, â€Å"Mother to Son†, allows the reader to trust that the poem is going to be about a mother and a son. Just by reading the title, the reader may wonder what type of poem this is going to be. It shows a sense of leadership because a son sees his mother as an authoritative figure, someone who he can trust, someone who he has a bond with. Mothers are usually a figure who nurtures and molds their children into the right path. This gives the reader a hint that the poem is a poem were, the mother, in some way or another is molding or guiding the son into the right path. In the very first line, â€Å"Well, son, I’ll tell you:† gives the reader a good idea in which direction the poem is taking. At this point, the reader can trust that the mother is going to give some kind of advice as mothers frequently do. As the reader moves on to the second line, â€Å"Life for me ain’t been no crystal stair,† Langston creates imagery for the reader by using a crystal stair as a metaphor to symbolize the mother’s life in contrast to the crystal stair. Crystal has connotations of beauty and visual smoothness.  It is also a valuable piece of stone that only the wealthy could purchase in high volume such as that of a crystal stair. The crystal stair is very important to the body of the poem. Without this metaphor, the poem probably would not have the same effect on how the reader interprets it. Moving on to the third sentence, â€Å"Its had tacks in it, and splinters, and boards torn up, and places with no carpet on the floor-Bare.† The tacks and splinters could represent pain or scars left from the mother’s past. The boards that were torn up could represent imperfection; a struggle or permanent loses and voids in her life. â€Å"No carpet on the floor-Bare† could mean that the mother has nothing left to show for her life. Her life as a youth could have been stripped from her through slavery. So she wants her son to make something of himself despite the criticism and racism he is challenged with. The poem doesn’t state specifically to the reader where the setting takes place but there are two hints Hughes gives that leads the reader into the assumption that the South is a primary focus. First, the poem was written in 1922, which was a time of the Harlem Renaissance. Second, the mother is speaking the words of the poem in a Negro dialect, which forces the reader to assume she’s black. With these two facts, the reader can reasonably come to the conclusion that the mother has probably dealt with the racism and prejudges from the white culture. The 1920’s were a time of struggle for many blacks and Negro rights since slavery was abolished in 1865 by the 13th Amendment. By reading the history of the poet, Langston Hughes, the reader has a general idea that his own mother could have been a slave or had grown up during the time that slavery was being abolished and the 13th, 14th, and 15th Amendments came into effect. This was also during a time when Congress had passed several laws to protect Negroes’ civil rights. In contrast, many whites disregarded the newly won rights of Negroes. (World Book Encyclopedia. Civil Rights. Field Enterprises Educational Corporation. Chicago. 1977. P.468) Like many other Lyrics, â€Å"Mother to Son†, is expressing the thoughts and feelings of a single speaker and is written in first person point of view. In the very first line, â€Å"Well, son, I’ll tell you†, Hughes demonstrates to the reader that this is going to be a first person point of view. Readers can see that the  mother is the central character in this poem because the reader is focused on her next word as she describes her view of life. The mother speaks her thoughts and feelings for the entirety of the poem but the boy doesn’t speak at all. This is called a dramatic monologue. Langston’s attitude toward life in â€Å"Mother to Son† is slightly unpleasant but solemn and trustworthy. The reader gains a sense of sympathy for the mother as she tells her son about her misfortunes from the past. In â€Å"Mother to Son†, a mother is urging her son to keep striving with assurance to have a more prosperous life than she had. Langston Hughes was born in Joplin, Missouri in 1902. He was a well-known poet during the Harlem Renaissance. He believed strongly in his culture and he had faith that things would change for the better. The title itself gives the reader a sense of insight on what the poem is going to be about as it clearly uses â€Å"Mother†, an authoritative figure in which a son would trust and look up to for guidance. On the other hand, a mother’s own instinct is to her child into the right path. Langston clearly demonstrates this in this piece of poetry. Langston also uses imagery for the reader by using the crystal stair as a metaphor. The setting is not specifically stated but Langston has granted a couple of clues for which the reader can rely. The date the poem was written and the word choices he uses lets the reader know that the setting is probably in the South. Langston’s background gives the reader the idea that he may have reflected on his mother’s past and the events that follows slavery abolishment in 1865 when he began writing, â€Å"Mother to Son.† This poem was written as a Lyric. Like many other lyrics, it was written in first person point of view and the poet used a dramatic monologue when the mother speaks of her thoughts and feelings, whereas, the boy doesn’t speak at all. Although, Langston shows a slightly unpleasant attitude in his tone, he is solemn and trustworthy. The reader gains a sense of sympathy for the character of the mother

Performance Review Paper

BOTOX UK LTD PERFORMANCE REVIEW FORM Date of Review †¦17th April 2013†¦Ã¢â‚¬ ¦.. Period Covered †¦Ã¢â‚¬ ¦Oct 2012 – March 2013†¦Ã¢â‚¬ ¦ Name of Manager †¦Tessa Thomas†¦ Name of employee †¦Angela Marraner†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Job Role of Employee †¦Ã¢â‚¬ ¦Senior Customer Sales Advisor†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Please complete and return to your line manager at least 7 days before your review date 1. How do you feel you have performed over the last six months in your role? I feel that my performance is not up to my usual standards, as I have not met my monthly sales targets for the last six months.I feel that my work ethic still feels consistent and I have still been exceeding my customer service targets. I think the lack of sales is due to higher admin work due to the influx of new starters not confident with the processes. 2. What do you feel has gone well over the last six months? I am an excellent team player and have enjoyed the new responsibility of assisting the new starters. This has helped me increase product knowledge and learn how to train.Alongside that my customer service scores are still exceeding and I have successfully maintained excellent after call work where possible. 3. What do you feel has not gone so well? Unfortunately although I have a new found responsibility to assist the new starters, my sales targets over the last six months have not met my usual standard. I have a lot of adhoc work from the new starters and there for this is affecting my sales targets. 4. Please review targets below and explain reasons for any targets not achieved. Months |Oct |Nov |Dec |Jan |Feb |March | |Actual |? 4,000 |? 5,000 |? 7,,850 |? 3,000 |? 4,000 |? 4,000 | |Achieved |? 2,000 |? 2,500 |? 3,500 |? 1,500 |? 2,000 |? 2,000 | Customer Service Months |Oct |Nov |Dec |Jan |Feb |March | |Set Target |85% |80% |80% |85% |85% |85% | |Actual |90% |89% |89% |90% |96% |95% | 5. Please highlight any training or development that would benefit you in your role or personal development. †¢ Delegate out new starters work evenly to senior customer advisors Mentoring to supervisor role/Team Leader role. 6. What is your goal for the next year? My aspiration for the next 12 months is to complete my NVQ to become a team leader within the department. |Objective |How it will be measured |Timescale/ Review date | |Met/ Exceed sales targets |Achieved sales targets will be measured |Monitored and reviewed monthly. Overall | | |against sales targets set by floor manager. |review 6 months time. |To work towards a Team Leader position by |By keeping a log of any extra responsibility |6 months to a year | |taking on more responsibility and training. |and training undertaken and reviewing what I | | | |learnt and how I will use this going forward. | | |To hit over 90% on customer service scores |Achieved scores will be mea sured against |Monitored and reviewed monthly. Overall | | |company customer service targets. review in 6 months. | 7. Is there anything other than what we have discussed already that you would like to raise? I would like to find out if I can get support to complete my nvq to better myself at work. 7. Outline agreed actions to overcome any shortfall against targets including such factors as training and development needs, equipment needs or medical support – – – 8 Indicate whether a performance related bonus should be made at current rates. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Signed: Line Manager †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Date †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Performance Review Paper BOTOX UK LTD PERFORMANCE REVIEW FORM Date of Review †¦17th April 2013†¦Ã¢â‚¬ ¦.. Period Covered †¦Ã¢â‚¬ ¦Oct 2012 – March 2013†¦Ã¢â‚¬ ¦ Name of Manager †¦Tessa Thomas†¦ Name of employee †¦Angela Marraner†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Job Role of Employee †¦Ã¢â‚¬ ¦Senior Customer Sales Advisor†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Please complete and return to your line manager at least 7 days before your review date 1. How do you feel you have performed over the last six months in your role? I feel that my performance is not up to my usual standards, as I have not met my monthly sales targets for the last six months.I feel that my work ethic still feels consistent and I have still been exceeding my customer service targets. I think the lack of sales is due to higher admin work due to the influx of new starters not confident with the processes. 2. What do you feel has gone well over the last six months? I am an excellent team player and have enjoyed the new responsibility of assisting the new starters. This has helped me increase product knowledge and learn how to train.Alongside that my customer service scores are still exceeding and I have successfully maintained excellent after call work where possible. 3. What do you feel has not gone so well? Unfortunately although I have a new found responsibility to assist the new starters, my sales targets over the last six months have not met my usual standard. I have a lot of adhoc work from the new starters and there for this is affecting my sales targets. 4. Please review targets below and explain reasons for any targets not achieved. Months |Oct |Nov |Dec |Jan |Feb |March | |Actual |? 4,000 |? 5,000 |? 7,,850 |? 3,000 |? 4,000 |? 4,000 | |Achieved |? 2,000 |? 2,500 |? 3,500 |? 1,500 |? 2,000 |? 2,000 | Customer Service Months |Oct |Nov |Dec |Jan |Feb |March | |Set Target |85% |80% |80% |85% |85% |85% | |Actual |90% |89% |89% |90% |96% |95% | 5. Please highlight any training or development that would benefit you in your role or personal development. †¢ Delegate out new starters work evenly to senior customer advisors Mentoring to supervisor role/Team Leader role. 6. What is your goal for the next year? My aspiration for the next 12 months is to complete my NVQ to become a team leader within the department. |Objective |How it will be measured |Timescale/ Review date | |Met/ Exceed sales targets |Achieved sales targets will be measured |Monitored and reviewed monthly. Overall | | |against sales targets set by floor manager. |review 6 months time. |To work towards a Team Leader position by |By keeping a log of any extra responsibility |6 months to a year | |taking on more responsibility and training. |and training undertaken and reviewing what I | | | |learnt and how I will use this going forward. | | |To hit over 90% on customer service scores |Achieved scores will be mea sured against |Monitored and reviewed monthly. Overall | | |company customer service targets. review in 6 months. | 7. Is there anything other than what we have discussed already that you would like to raise? I would like to find out if I can get support to complete my nvq to better myself at work. 7. Outline agreed actions to overcome any shortfall against targets including such factors as training and development needs, equipment needs or medical support – – – 8 Indicate whether a performance related bonus should be made at current rates. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Signed: Line Manager †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Date †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..

Portfolio Management

A PROJECT REPORT ON PORTFOLIO MANAGEMENT AT SHAREKHAN LTD HYDERABAD A PROJECT REPORT SUBMITTED TO [pic] OSMANIA UNIVERSITY HYDERABAD IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE IN MASTER OF BUSINESS ADMINISTRATION SUBMITTED BY SAFIA MOHAMMADI 1238-11-672-015 VILLA MARIE PG COLLEGE FOR WOMEN SOMAJIGUDA- 82 2011-2013 By DEPARTMENT OF BUSINESS ADMINISTRTIONVILLA MARIE POST GRADUATE COLLEGE, SOMAJIGUDA (Affiliated to Osmania University) 2011-2013 DECLARATION I SAFIA MOHAMMADI student of Master of Business Administration, VILLA MARIE PG COLLEGE FOR WOMEN, hereby declare that the project report entitled â€Å"PORTFOLIO MANAGEMENT† has been carried out at â€Å"SHAREKHAN LTD† and submitted in partial fulfillment for the â€Å"Master’s Degree in Business Administration† in the result of my own work and is original. I have not submitted this project to any other university or college for the award of any other degree or Diploma.SAFIA MOH AMMADI ACKNOWLEDGEMENT A project is never the  work of an individual. It is  moreover a combination of ideas, suggestions, review, contribution and work involving many folks. It cannot be completed without guidelines. I wish to express my gratitude to all those who have made significant contribution to the development and presentation of this project. I express my sense of profound gratitude to the Management of â€Å"SHAREKHAN LTD†, Hyderabad for giving me this opportunity to conduct a study on Portfolio Management in their esteemed organization.My sincere thanks to Mr. DEEPAK, Manager and Ms. SWATHI BASA, Assistant Manager for permitting me to pursue this project and for providing their valuable time, suggestions and support for completing my project work successfully. Their patience and invaluable guidance have proved to be very precious without which this project would not be completed. Acknowledgements are also due to all the other staff members and executives in Sha rekhan Ltd. , for providing information at various points of the project, especially the discussions on the market.I am thankful to our Principal and also I would also like to thank my project guide and all the faculty members of the college for guiding me throughout the process. I also wish to extend my sincere acknowledgement to my parents for their moral and financial support. Lastly, I am indebted to the friends and will-wishers who have extended their support to me during the project. Place: Hyderabad SAFIA MOHAMMADI INDEX | | | |LIST OF CONTENTS |PAGE NO. | | | |CHAPTER-1 | | | | | |INTRODUCTION | | | | | |NEED AND IMPORTANCE OF THE STUDY | | | | | |OBJECTIVE OF THE STUDY | | | | |SCOPE OF THE STUDY | | | | | |DATA COLLECTION METHODS | | | | | |LIMITATIONS OF THE STUDY | | | | | |CHAPTER-2 | | |REVIEW OF LITERATURE | | | | | |CHAPTER-3 | | |COMPANY PROFILE | | | | | |CHAPTER-4 | | |DATA ANALYSIS AND INTERPRETATION | | | | | |CHAPTER-5 | | |CONCLUSION AND SUGGES TIONS | | | | | |QUESTIONNAIRE | | | | | |BIBLIOGRAPHY | | CHAPTER-1 INTRODUCTION PORTFOLIO MANAGEMENT: A portfolio is a collection of assets. The assets may be physical or financial like Shares, Bonds, Debentures, Preference Shares, etc. The individual investor or a fund manager would not like to put all his money in the shares of one company that would amount to great risk.He would therefore, follow the age old maxim that one should not put all the eggs into one basket. By doing so, he can achieve objective to maximize portfolio return and at the same time minimizing the portfolio risk by diversification. Investment may be defined as an activity that commits funds in any financial form in the present with an expectation of receiving additional return in the future. The expectations bring with it a probability that the quantum of return may vary from a minimum to a maximum. This possibility of variation in the actual return is known as investment risk. Thus every investment invo lves a return and risk. Investment is an activity that is undertaken by those who have savings.Savings can be defined as the excess of income over expenditure. An investor earns/expects to earn additional monetary value from the mode of investment that could be in the form of financial assets. The three important characteristics of any financial asset are: †¢ Return-the potential return possible from an asset. †¢ Risk-the variability in returns of the asset form the chances of its value going down/up. †¢ Liquidity-the ease with which an asset can be converted into cash. Investors tend to look at these three characteristics while deciding on their individual preference pattern of investments. Each financial asset will have a certain level of each of these characteristics.An investor invests his funds in portfolio expecting to get a good return consistent with the risk that he has to beat. Portfolio management comprises all the processes involved in the creation & maint enance of an investment portfolio. It deals specifically with Security Analysis, Portfolio Analysis, Selection and Revision & Evaluation. Portfolio Management is a complex process, which tries to make investment activity more rewarding & less risky. ? Portfolio management is the management of various financial assets which comprise the portfolio. ? Portfolio management is a decision – support system that is designed with a view to meet the multi-faced needs of investors.According to Securities and Exchange Board of India Portfolio is defined as: â€Å"portfolio means the total holdings of securities belonging to any person†. ? PORTFOLIO MANAGER means any person who pursuant to a contract or arrangement with a client, advises or directs or undertakes on behalf of the client (whether as a discretionary portfolio manager or otherwise) the management or administration of a portfolio of securities or the funds of the client. ? DISCRETIONARY PORTFOLIO MANAGER means a portfol io manager who exercises or may, under a contract relating to portfolio management exercises any degree of discretion as to the investments or management of the portfolio of securities or the funds of the client. Investment avenuesThere are a large number of investment avenues for savers in India. Some of them are marketable and liquid, while others are non-marketable. Some of them are highly risky while some others are almost risk less. Investment avenues can be broadly categorized under the following head. 1. Corporate securities 2. Equity shares. 3. Preference shares. 4. Debentures/Bonds. 5. Derivatives. 6. Others. Joint stock companies in the private sector issue corporate securities. These include equity shares, preference shares, and debentures. Equity shares have variable dividend and hence belong to the high risk-high return category; preference shares and debentures have fixed returns with lower risk.The classification of corporate securities that can be chosen as investmen t avenues can be depicted as shown below: DESIGN OF STUDY NEED AND IMPORTANCE OF THE STUDY †¢ Portfolio management presents the  best investment plan  to the individuals as per their income, budget, age and ability to undertake risks. †¢ Portfolio management  minimizes the risks  involved in investing and also increases the chance of making profits. †¢ Portfolio managers understand the client’s financial needs and suggest the best and unique investment policy for them with minimum risks involved. †¢ It enables the portfolio managers to  provide customized investment solutions  to clients as per their needs and requirements. It also focuses on important aspects like Stability of Income, Capital Growth, Liquidity, Safety, Tax Incentives, etc. †¢ Main goals of Portfolio Management are To Maximize the value of the portfolio, To Seek balance  in the portfolio and To Keep portfolio projects strategically  aligned OBJECTIVES OF THE STUDY: â⠂¬ ¢ To provide the material frame work of Portfolio Management †¢ To understand how to analyze securities †¢ To know how portfolio management is done. †¢ To study the investment pattern and its related risks & returns. †¢ To help the investors to choose wisely between alternative investment. †¢ To understand, analyze and select the best portfolio. To strike balance between costs of funds, risks and returns. †¢ To find out optimal portfolio, which gives optimal return at a minimize risk to the investor. †¢ To see whether the portfolio risk is less than individual risk on whose basis the portfolios are constituted SCOPE OF THE STUDY: †¢ This study covers the Markowitz model. The study covers the calculation of correlations between the different securities in order to find out at what percentage funds should be invested among the companies in the portfolio. Also the study includes the calculation of individual Standard Deviation of securities an d ends at the calculation of weights of individual securities involved in the portfolio.These percentages help in allocating the funds available for investment based on risky portfolios. METHODOLOGY: Sources of Data Collection The Methodology employed in this study data include both the primary and secondary collection methods. Primary collection methods: This method includes the data collected from the personal discussion with the authorized clerks and members of the exchange. Secondary data collection: It includes the following: †¢ Companies Annual Reports †¢ Information From Internet †¢ Publication †¢ Information provided by Stock Exchanges. Period of Study For different companies, financial data has been collected from the year 2007- 2012 Selection of CompaniesCompanies selected for analysis are:- o Wipro o Indian Tobacco Corporation o Dr. Reddy Laboratories o ACC o Bharat Heavy Electricals LIMITATIONS OF THE STUDY: †¢ This study has been conducted purel y to understand portfolio management for investor and is done for requirement of Certificate of MBA. †¢ For study purpose 5 companies have been taken for calculations. †¢ Study is limited to period from 2007-2012. †¢ There was a constraint with regard to time allocated for the research study, period of one and half month. †¢ Study is limited to only first 3 steps of phrases of portfolio management. †¢ Detailed study of the topic was not possible due to limited size of project. The availability of information in the form of annual reports and price fluctuations of the companies was a big constraint to the study. CHAPTER-2 REVIEW OF LITERATURE INTRODUCTION TO PORTFOLIO MANAGEMENT The term Portfolio refers to any collection of financial assets such as stocks, bonds, and cash. Portfolios may be held by individual investors and/or managed by financial professionals, hedge funds, banks and other financial institutions. It is a generally accepted principle that a p ortfolio is designed according to the investor’s risk tolerance, time frame and investment objectives. Portfolio management is all about strengths, weaknesses, opportunities and threats in the choice of debt vs. equity, domestic vs. nternational, growth vs. safety, and many other tradeoffs encountered in the attempt to maximize return at a given appetite for risk. The art and science of making decisions about investment mix and policy, matching investments to objectives, asset allocation for individuals and institutions, and balancing risk against performance is known as Portfolio Management. ? PORTFOLIO MANAGER means any person who pursuant to a contract or arrangement with a client, advises or directs or undertakes on behalf of the client (whether as a discretionary portfolio manager or otherwise) the management or administration of a portfolio of securities or the funds of the client. DISCRETIONARY PORTFOLIO MANAGER means a portfolio manager who exercises or may, under a c ontract relating to portfolio management exercises any degree of discretion as to the investments or management of the portfolio of securities or the funds of the client. FUNCTIONS OF PORTFOLIO MANAGEMENT: ? To frame the investment strategy and select an investment mix to achieve the desired investment objectives ? To provide a balanced portfolio which not only can hedge against the inflation but can also optimize returns with the associated degree of risk ? To make timely buying and selling of securities ? To maximize the after-tax return by investing in various tax saving investment instruments.STRUCTURE / PROCESS OF TYPICAL PORTFOLIO MANAGEMENT In the small firm, the portfolio manager performs the job of security analyst. In the case of medium and large sized organizations, job function of portfolio manager and security analyst are separate. CHARACTERISTICS OF PORTFOLIO MANAGEMENT: Individuals will benefit immensely by taking portfolio management services for the following reason s: ? Whatever may be the status of the capital market, over the long period capital markets have given an excellent return when compared to other forms of investment. The return from bank deposits, units, etc. , is much less than from the stock market. ? The Indian Stock Markets are very complicated.Though there are thousands of companies that are listed only a few hundred which have the necessary liquidity. Even among these, only some have the growth prospects which are conducive for investment. It is impossible for any individual wishing to invest and sit down and analyse all these intricacies of the market unless he does nothing else. ? Even if an investor is able to understand the intricacies of the market and separate chaff from the grain the trading practices in India are so complicated that it is really a difficult task for an investor to trade in all the major exchanges of India, look after his deliveries and payments. TYPES OF PORTFOLIO MANAGEMENT: Discretionary Portfolio M anagement Service(DPMS):In this type of service, the client parts with his money in favour of the manager, who in return, handles all the paper work, makes all the decisions and gives a good return on the investment and charges fee. In the Discretionary Portfolio Management Service, to maximize the yield, almost all portfolio managers park the funds in the money market securities such as overnight market, 18 days treasury bills and 90 days commercial bills. Normally, the return of such investment varies from 14 to 18 percent, depending on the call money rates prevailing at the time of investment. 2. Non-Discretionary Portfolio Management Service(NDPMS): The manager functions as a counselor, but the investor is free to accept or reject the manager‘s advice; the paper work is also undertaken by manager for a service charge.The manager concentrates on stock market instruments with a portfolio tailor-made to the risk taking ability of the investor. Risk of Portfolio Management The re was a time when portfolio management was an exotic term. The scenario has changed drastically. It is now a familiar term and is widely practiced in India. The theories and concepts relating to portfolio management now find their way to the front pages financial newspapers and the cover pages of investments journals in India. Capital markets have become active. The Indian stock markets are steadily moving towards efficiency, with rapid computerization, increasing higher market transparency, better infrastructure, better customer service etc.The markets are mutual funds have been set up the country since1987. With this development investment in securities has gained considered momentum. Professional portfolio management backed by competent research began to be practiced by mutual funds, investment consultant and big brokers. The Securities Exchange Board of India (SEBI), The Stock Market Regulatory body in India is supervising the whole process. IMPORTANCE OF PORTFOLIO MANAGEMENT: ? Emergence of institutional investing on behalf of individuals. A number of financial institutions, mutual funds and other agencies are undertaking the task of investing money of small investors, on their behalf. Growth in the number and size of investible funds – a large part of household savings is being directed towards financial assets. ? Increased market volatility – risk and return parameters of financial assets are continuously changing because of frequent changes in government‘s industrial and fiscal policies, economic uncertainty and instability. ? Greater use of computers for processing mass of data. ? Professionalization of the field and increasing use of analytical methods (e. g. quantitative techniques) in the investment decision – making ? Larger direct and indirect costs of errors or shortfalls in meeting portfolio objectives – increased competition and greater scrutiny by investors.STEPS IN PORTFOLIO MANAGEMENT: ? Specification and qualification of investor objectives, constraints, and preferences in the form of an investment policy statement. ? Determination and qualification of capital market expectations for the economy, market sectors, industries and individual securities. ? Allocation of assets and determination of appropriate portfolio strategies for each asset class and selection of individual securities. ? Performance measurement and evaluation to ensure attainment of investor objectives. ? Monitoring portfolio factors and responding to changes in investor objectives, constrains and / or capital market expectations. Rebalancing the portfolio when necessary by repeating the asset allocation, portfolio strategy and security selection. CRITERIA FOR PORTFOLIO DECISIONS: †¢ In portfolio management emphasis is put on identifying the collective importance of all investor’s holdings. The emphasis shifts from individual assets selection to a more balanced emphasis on diversification and risk-return interrelationships of individual assets within the portfolio. Individual securities are important only to the extent they affect the aggregate portfolio. In short, all decisions should focus on the impact which the decision will have on the aggregate portfolio of all the assets held. †¢ Portfolio strategy should be molded to the unique needs and characteristics of the portfolio‘s owner. Diversification across securities will reduce a portfolio‘s risk. If the risk and return are lower than the desired level, leverages (borrowing) can be used to achieve the desired level. †¢ Larger portfolio returns come only with larger portfolio risk. The most important decision to make is the amount of risk which is acceptable. †¢ The risk associated with a security type depends on when the investment will be liquidated. Risk is reduced by selecting securities with a payoff close to when the portfolio is to be liquidated. QUALITIES OF PORTFOLIO MANAGER: 1. SOUND GENERAL K NOWLEDGE: Portfolio management is an exciting and challenging job. He has to work in an extremely uncertain and confliction environment.In the stock market every new piece of information affects the value of the securities of different industries in a different way. He must be able to judge and predict the effects of the information he gets. He must have sharp memory, alertness, fast intuition and self-confidence to arrive at quick decisions. 2. ANALYTICAL ABILITY: He must have his own theory to arrive at the intrinsic value of the security. An analysis of the security‘s values, company, etc. is s continuous job of the portfolio manager. A good analyst makes a good financial consultant. The analyst can know the strengths, weaknesses, opportunities of the economy, industry and the company. 3. MARKETING SKILLS: He must be good salesman. He has to convince the clients about the particular security.He has to compete with the stock brokers in the stock market. In this context, the marketing skills help him a lot. 4. EXPERIENCE: In the cyclical behavior of the stock market history is often repeated, therefore the experience of the different phases helps to make rational decisions. The experience of the different types of securities, clients, market trends, etc. , makes a perfect professional manager. PORTFOLIO BUILDING: Portfolio decisions for an individual investor are influenced by a wide variety of factors. Individuals differ greatly in their circumstances and therefore, a financial programme well suited to one individual may be inappropriate for another.Ideally, an individual‘s portfolio should be tailor-made to fit one‘s individual needs. Investor‘s Characteristics: An analysis of an individual‘s investment situation requires a study of personal characteristics such as age, health conditions, personal habits, family responsibilities, business or professional situation, and tax status, all of which affect the investor‘s willin gness to assume risk. Stage in the Life Cycle: One of the most important factors affecting the individual‘s investment objective is his stage in the life cycle. A young person may put greater emphasis on growth and lesser emphasis on liquidity. He can afford to wait for realization of capital gains as his time horizon is large. Family responsibilities:The investor‘s marital status and his responsibilities towards other members of the family can have a large impact on his investment needs and goals. Investor‘s experience: The success of portfolio depends upon the investor‘s knowledge and experience in financial matters. If an investor has an aptitude for financial affairs, he may wish to be more aggressive in his investments. Attitude towards Risk: A person‘s psychological make-up and financial position dictate his ability to assume the risk. Different kinds of securities have different kinds of risks. The higher the risk, the greater the opportunity for higher gain or loss. Liquidity Needs: Liquidity needs vary considerably among individual investors.Investors with regular income from other sources may not worry much about instantaneous liquidity, but individuals who depend heavily upon investment for meeting their general or specific needs, must plan portfolio to match their liquidity needs. Liquidity can be obtained in two ways: 1. by allocating an appropriate percentage of the portfolio to bank deposits, and 2. by requiring that bonds and equities purchased be highly marketable. Tax considerations: Since different individuals, depending upon their incomes, are subjected to different marginal rates of taxes, tax considerations become most important factor in individual‘s portfolio strategy. There are differing tax treatments for investment in various kinds of assets. Time Horizon:In investment planning, time horizon become an important consideration. It is highly variable from individual to individual. Individuals in their young age have long time horizon for planning, they can smooth out and absorb the ups and downs of risky combination. Individuals who are old have smaller time horizon, they generally tend to avoid volatile portfolios. Individual‘s Financial Objectives: In the initial stages, the primary objective of an individual could be to accumulate wealth via regular monthly savings and have an investment programme to achieve long term capital gains. Safety of Principal: The protection of the rupee value of the investment is of prime importance to most investors.The original investment can be recovered only if the security can be readily sold in the market without much loss of value. Assurance of Income: `Different investors have different current income needs. If an individual is dependent of its investment income for current consumption then income received now in the form of dividend and interest payments become primary objective. Investment Risk: All investment decisions revolve arou nd the trade-off between risk and return. All rational investors want a substantial return from their investment. An ability to understand, measure and properly manage investment risk is fundamental to any intelligent investor or a speculator.Frequently, the risk associated with security investment is ignored and only the rewards are emphasized. An investor who does not fully appreciate the risks in security investments will find it difficult to obtain continuing positive results. RISK AND EXPECTED RETURN: There is a positive relationship between the amount of risk and the amount of expected return i. e. , the greater the risk, the larger the expected return and larger the chances of substantial loss. One of the most difficult problems for an investor is to estimate the highest level of risk he is able to assume. [pic] TYPES OF RISKS:- Risk consists of two components. They are 1. Systematic Risk 2. Un-systematic Risk 1. Systematic Risk:Systematic risk is caused by factors external t o the particular company and uncontrollable by the company. The systematic risk affects the market as a whole. Factors affect the systematic risk are ? economic conditions ? political conditions ? sociological changes The systematic risk is unavoidable. Systematic risk is further sub-divided into three types. They are a) Market Risk b) Interest Rate Risk c) Purchasing Power Risk a) Market Risk: One would notice that when the stock market surges up, most stocks post higher price. On the other hand, when the market falls sharply, most common stocks will drop. It is not uncommon to find stock prices falling from time to time while a company‘s earnings are rising and vice-versa.The price of stock may fluctuate widely within a short time even though earnings remain unchanged or relatively stable b) Interest Rate Risk: Interest rate risk is the risk of loss of principal brought about the changes in the interest rate paid on new securities currently being issued. c) Purchasing Power Risk: The typical investor seeks an investment which will give him current income and / or capital appreciation in addition to his original investment. 2. Un-systematic Risk: Un-systematic risk is unique and peculiar to a firm or an industry. The nature and mode of raising finance and paying back the loans, involve the risk element. Financial leverage of the companies that is debt-equity portion of the companies differs from each other.All these factors Factors affect the un-systematic risk and contribute a portion in the total variability of the return. ? Managerial inefficiently ? Technological change in the production process ? Availability of raw materials ? Changes in the consumer preference ? Labour problems The nature and magnitude of the above mentioned factors differ from industry to industry and company to company. They have to be analyzed separately for each industry and firm. Un-systematic risk can be broadly classified into: a) Business Risk b) Financial Risk a. Busines s Risk: Business risk is that portion of the unsystematic risk caused by the operating environment of the business.Business risk arises from the inability of a firm to maintain its competitive edge and growth or stability of the earnings. The volatibility in stock prices due to factors intrinsic to the company itself is known as Business risk. Business risk is concerned with the difference between revenue and earnings before interest and tax. Business risk can be divided into. i) Internal Business Risk Internal business risk is associated with the operational efficiency of the firm. The operational efficiency differs from company to company. The efficiency of operation is reflected on the company‘s achievement of its pre-set goals and the fulfillment of the promises to its investors. ii)External Business RiskExternal business risk is the result of operating conditions imposed on the firm by circumstances beyond its control. The external environments in which it operates exert some pressure on the firm. The external factors are social and regulatory factors, monetary and fiscal policies of the government, business cycle and the general economic environment within which a firm or an industry operates. b. Financial Risk: It refers to the variability of the income to the equity capital due to the debt capital. Financial risk in a company is associated with the capital structure of the company. Capital structure of the company consists of equity funds and borrowed funds. PORTFOLIO ANALYSIS:Various groups of securities when held together behave in a different manner and give interest payments and dividends also, which are different to the analysis of individual securities. A combination of securities held together will give a beneficial result if they are grouped in a manner to secure higher return after taking into consideration the risk element. SELECTION OF PROTFOLIO: The selection of portfolio depends on the various objectives of the investor. The selectio n of portfolio under different objectives are dealt subsequently. Objectives and asset mix: if the main objective is getting adequate amount of current income, sixty per cent of the investment is made on debts and 40 per cent on equities. The proportions of investments on debt and equity differ according to the individual’s preferences.Growth of income and asset mix: Here the investor requires a certain percentage of growth in the income received from his investment. The debt portion of the portfolio may consist of 60 to 100 percent equities and 0 to 40 percent debt instrument. The debt portion of the portfolio may consist of concession regarding tax exemption. Appreciation of principal amount is given third priority. For example computer software, hardware and non-conventional energy producing company shares provides good possibility of growth in dividend. Capital appreciation and asset mix: Capital appreciation means that the valu of the original investment increases over t he years.Investment in real estates like land and house may provide a faster rate of capital appreciation but they lack liquidity. In the capital market, the values of the shares are much higher than their original issue prices. Safety of principal and asset mix: Usually, the risk averse investors are very particular about the stability of principal. According to the life cycle theory, people in the third stage of life also give more importance to the safety of the principal. All the investors have this objective in their mind. No one like to lose his money invested in different assets. Risk and return analysis: The traditional approach to portfolio building has some basic assumptions. First, the individual prefers larger to smaller returns from securities.To achieve this goal, the investor has to take more risk. The ability to achieve higher returns is dependent upon his ability to judge risk and his ability to take specific risks. Diversification: Once the asset mix is determined and the risk and return are analyzed, the final step is the diversification of portfolio. Financial risk can be minimized by commitments to top-quality bonds, but these securities offer poor resistance to inflation. Stocks provide better inflation protection than bonds but are more vulnerable to financial risks. PORTFOLIO CONSTRUCTION: Portfolio is a combination of securities such as stocks, bonds and money market instruments.The process of blending together the broad asset so as to obtain optimum return with minimum risk is called portfolio construction. Diversification of investments helps to spread risk over many assets. A diversification of securities gives the assurance of obtaining the anticipated return on the portfolio. APPROACHES IN PORTFOLIO CONSTRUCTION: There are two approaches in construction of the portfolio of securities. They are ? Traditional approach ? Modern approach TRADITIONAL APPROACH: Traditional approach was based on the fact that risk could be measured on ea ch individual security through the process of finding out the standard deviation and that security should be chosen where the deviation was the lowest.Traditional approach believes that the market is inefficient and the fundamental analyst can take advantage of the situation. Traditional approach is a comprehensive financial plan for the individual. It takes into account the individual needs such as housing, life insurance and pension plans. Traditional approach basically deals with two major decisions. They are a) Determining the objectives of the portfolio b) Selection of securities to be included in the portfolio MODERN APPROACH: Modern approach theory was brought out by Markowitz and Sharpe. It is the combination of securities to get the most efficient portfolio. Combination of securities can be made in many ways. Markowitz developed the theory of diversification through scientific reasoning and method.Modern portfolio theory believes in the maximization of return through a comb ination of securities. The modern approach discusses the relationship between different securities and then draws inter-relationships of risks between them. Markowitz gives more attention to the process of selecting the portfolio. It does not deal with the individual needs. In the modern approach, the final step is asset allocation process that is to choose the portfolio that meets he requirement of the investor. The risk taker i. e. who are willing to accept a higher probability of risk for getting the expected return would choose high risk portfolio. Investor with lower tolerance for risk would choose low level risk portfolio.The risk neutral investor would choose the medium level risk portfolio. MARKOWITZ MODEL: Harry Markowitz opened new vistas to modern portfolio selection by publishing an article in the journal of Finance in March 1952. His publication indicated the importance of correlation among the different stocks reruns in the construction of a stock portfolio. Most peopl e agree that holding two stocks is less risky than holding one stock. For example, holding stocks from textile, banking, and electronic companies is better than investing all the money on the textile company’s stock. But building up the optimal portfolio is very difficult. Markowitz provides an answer to it with the help of risk and return relationship.Markowitz model is a theoretical framework for analysis of risk and return and their relationships. He used statistical analysis for the measurement of risk and mathematical programming for selection of assets in a portfolio in an efficient manner. Markowitz approach determines for the investor the efficient set of portfolio through three important variables i. e. ? Return ? Standard deviation ? Co-efficient of correlation Markowitz model is also called as an â€Å"Full Covariance Modelâ€Å". Through this model the investor can find out the efficient set of portfolio by finding out the tradeoff between risk and return, betwe en the limits of zero and infinity.According to this theory, the effects of one security purchase over the effects of the other security purchase are taken into consideration and then the results are evaluated. Most people agree that holding two stocks is less risky than holding one stock. For example, holding stocks from textile, banking and electronic companies is better than investing all the money on the textile company‘s stock. Markowitz had given up the single stock portfolio and introduced diversification. The single stock portfolio would be preferable if the investor is perfectly certain that his expectation of highest return would turn out to be real. In the world of uncertainty, most of the risk adverse investors would like to join Markowitz rather than keeping a single stock, because diversification reduces the risk. ASSUMPTIONS: All investors would like to earn the maximum rate of return that they can achieve from their investments. ? All investors have the same ex pected single period investment horizon. ? All investors before making any investments have a common goal. This is the avoidance of risk because Investors are risk-averse. ? Investors base their investment decisions on the expected return and standard deviation of returns from a possible investment. ? Perfect markets are assumed (e. g. no taxes and no transaction costs). ? The investor assumes that greater or larger the return that he achieves on his investments, the higher the risk factor surrounds him. On the contrary when risks are low the return can also be expected to be low. The investor can reduce his risk if he adds investments to his portfolio. ? An investor should be able to get higher return for each level of risk â€Å"by determining the efficient set of securitiesâ€Å". ? An individual seller or buyer cannot affect the price of a stock. This assumption is the basic assumption of the perfectly competitive market. ? Investors make their decisions only on the basis of t he expected returns, standard deviation and covariance’s of all pairs of securities. ? Investors are assumed to have homogenous expectations during the decision-making period. ? The investor can lend or borrow any amount of funds at the riskless rate of interest.The riskless rate of interest is the rate of interest offered for the treasury bills or Government securities. ? Investors are risk-averse, so when given a choice between two otherwise identical portfolios, they will choose the one with the lower standard deviation. ? Individual assets are infinitely divisible, meaning that an investor can buy a fraction of a share if he or she so desires. ? There is a risk free rate at which an investor may either lend (i. e. invest) money or borrow money and There is no transaction cost i. e. no cost involved in buying and selling of stocks. ? There is no personal income tax. Hence, the investor is indifferent to the form of return either capital gain or dividend.The Effect Of Combi ning Two Securities: It is believed that holding two securities is less risky than by having only one investment in a person‘s portfolio. When two stocks are taken on a portfolio and if they have negative correlation then risk can be completely reduced because the gain on one can offset the loss on the other. This can be shown with the help of following example: Inter-Active Risk Through Covariance: Covariance of the securities will help in finding out the inter-active risk. When the covariance will be positive then the rates of return of securities move together either upwards or downwards. Alternatively it can also be said that the inter-active risk is positive.Secondly, covariance will be zero on two investments if the rates of return are independent. Holding two securities may reduce the portfolio risk too. The portfolio risk can be calculated with the help of the following formula: CAPITAL ASSET PRICING MODEL (CAPM): Markowitz, William Sharpe, John Lintner and Jan Mossin provided the basic structure for the Capital Asset Pricing Model. It is a model of linear general equilibrium return. In the CAPM theory, the required rate return of an asset is having a linear relationship with asset‘s beta value i. e. undiversifiable or systematic risk (i. e. market related risk) because non market risk can be eliminated by diversification and systematic risk measured by beta.Therefore, the relationship between an assets return and its systematic risk can be expressed by the CAPM, which is also called the Security Market Line. Lending and borrowing:- Here, it is assumed that the investor could borrow or lend any amount of money at riskless rate of interest. When this opportunity is given to the investors, they can mix risk free assets with the risky assets in a portfolio to obtain a desired rate of risk-return combination. Rp =Portfolio return Xf =The proportion of funds invested in risk free assets 1- Xf = The proportion of funds invested in risky assets Rf =Risk free rate of return Rm =Return on risky assets The expected return on the combination of risky and risk free combination is Rp= Rf Xf+ Rm(1- Xf)Formula can be used to calculate the expected returns for different situations, like mixing riskless assets with risky assets, investing only in the risky asset and mixing the borrowing with risky assets. THE CONCEPT: According to CAPM, all investors hold only the market portfolio and risk less securities. The market portfolio is a portfolio comprised of all stocks in the market. Each asset is held in proportion to its market value to the total value of all risky assets. For example, if Reliance Industry share represents 15% of all risky assets, then the market portfolio of the individual investor contains 15% of Satyam Industry shares. At this stage, the investor has the ability to borrow or lend any amount of money at the risk less rate of interest. Eg. assume that borrowing and lending rate to be 12. 5% and the return from the risk y assets to be 20%. There is a tradeoff between the expected return and risk. If an investor invests in risk free assets and risky assets, his risk may be less than what he invests in the risky asset alone. But if he borrows to invest in risky assets, his risk would increase more than he invests his own money in the risky assets. When he borrows to invest, we call it financial leverage. If he invests 50% in risk free assets and 50% in risky assets, his expected return of the portfolio would be Rp= Rf Xf+ Rm(1- Xf) = (12. 5 x 0. 5) + 20 (1-0. 5) = 6. 25 + 10 = 16. 5% if there is a zero investment in risk free asset and 100% in risky asset, the return is Rp= Rf Xf+ Rm(1- Xf) = 0 + 20% i. e. 20% if -0. 5 in risk free asset and 1. 5 in risky asset, the return is Rp= Rf Xf+ Rm(1- Xf) = (12. 5 x -0. 5) + 20 (1. 5) = -6. 25+ 30 = 23. 75% EVALUATION OF PORTFOLIO: Portfolio manager evaluates his portfolio performance and identifies the sources of strengths and weakness. The evaluation of the portfolio provides a feedback about the performance to evolve better management strategy. Even though evaluation of portfolio performance is considered to be the last stage of investment process, it is a continuous process.There are number of situations in which an evaluation becomes necessary and important. i. Self-Valuation: An individual may want to evaluate how well he has done. This is a part of the process of refining his skills and improving his performance over a period of time. ii. Evaluation of Managers: A mutual fund or similar organization might want to evaluate its managers. A mutual fund may have several managers each running a separate fund or sub-fund. It is often necessary to compare the performance of these managers. iii. Evaluation of Mutual Funds: An investor may want to evaluate the various mutual funds operating in the country to decide which, if any, of these should be chosen for investment.A similar need arises in the case of individuals or organizations who engage external agencies for portfolio advisory services. iv. Evaluation of Groups: Academics or researchers may want to evaluate the performance of a whole group of investors and compare it with another group of investors who use different techniques or who have different skills or access to different information. NEED FOR EVALUATION OF PORTFOLIO: ? We can try to evaluate every transaction. Whenever a security is brought or sold, we can attempt to assess whether the decision was correct and profitable. ? We can try to evaluate the performance of a specific security in the portfolio to determine whether it has been worthwhile to include it in our portfolio. We can try to evaluate the performance of portfolio as a whole during the period without examining the performance of individual securities within the portfolio. Portfolio management has emerged as a separate academic discipline in India. Portfolio theory that deals with the rational investment decision-making process has now be come an integral part of financial literature. Investing in securities such as shares, debentures & bonds is profitable well as exciting. It is indeed rewarding but involves a great deal of risk & need artistic skill. Investing in financial securities is now considered to be one of the most risky avenues of investment. It is rare to find investors investing their entire savings in a single security. Instead, they tend to invest in a group of securities.Such group of securities is called as PORTFOLIO. Creation of portfolio helps to reduce risk without sacrificing returns. Portfolio management deals with the analysis of individual securities as well as with the theory & practice of optimally combining securities into portfolios. The modern theory is of the view that by diversification, risk can be reduced. The investor can make diversification either by having a large number of shares of companies in different regions, in different industries or those producing different types of prod uct lines. Modern theory believes in the perspective of combinations of securities under constraints of risk and return.PORTFOLIO REVISION: The portfolio which is once selected has to be continuously reviewed over a period of time and then revised depending on the objectives of the investor. The care taken in construction of portfolio should be extended to the review and revision of the portfolio. Fluctuations that occur in the equity prices cause substantial gain or loss to the investors. The investor should have competence and skill in the revision of the portfolio. The portfolio management process needs frequent changes in the composition of stocks and bonds. In securities, the type of securities to be held should be revised according to the portfolio policy.An investor purchases stock according to his objectives and return risk framework. The prices of stock that he purchases fluctuate, each stock having its own cycle of fluctuations. These price fluctuations may be related to e conomic activity in a country or due to other changed circumstances in the market. If an investor is able to forecast these changes by developing a framework for the future through careful analysis of the behavior and movement of stock prices is in a position to make higher profit than if he was to simply buy securities and hold them through the process of diversification. Mechanical methods are adopted to earn better profit through proper timing.The investor uses formula plans to help him in making decisions for the future by exploiting the fluctuations in prices. PASSIVE MANAGEMENT: Passive management is a process of holding a well diversified portfolio for a long term with the buy and hold approach. Passive management refers to the investor’s attempt to construct a portfolio that resembles the overall market returns. The simplest form of passive management is holding the index fund that is designed to replicate a good and well defined index of the common stock such as BSE- sensex or NSE-Nifty. ACTIVE MANAGEMENT: Active management is holding securities based on gthe forecast about the future.The portfolio managers who pursue active strategy with respect to market components are called ‘market timers’. The portfolio managers vary their cash position or beta of the equity portion of the portfolio based on the market forecast. The managers may indulge in ‘ group rotation’s. here, the group rotation means changing the investment in different industries’ stocks depending on the assessed expectations regarding their future performance. FORMULA PLANS: The formula plans provide the basic rules and regulations for the purchase and sale of securities. The amount to be spent on the different types of securities is fixed. The amount may be fixed either in constant or variable ratio. This depends on the investor‘s attitude towards risk and return.The commonly used formula plans are i. Average Rupee Plan ii. Constant Rupee Plan iii. Constant Ratio Plan iv. Variable Ratio Plan ADVANTAGES: ? Basic rules and regulations for the purchase and sale of securities are provided. ? The rules and regulations are rigid and help to overcome human emotion. ? The investor can earn higher profits by adopting the plans. ? A course of action is formulated according to the investor‘s objectives. ? It controls the buying and selling of securities by the investor. ? It is useful for taking decisions on the timing of investments. DISADVANTAGES: ? The formula plan does not help the selection of the security.The selection of the security has to be done either on the basis of the fundamental or technical analysis. ? It is strict and not flexible with the inherent problem of adjustment. ? The formula plans should be applied for long periods, otherwise the transaction cost may be high. ? Even if the investor adopts the formula plan, he needs forecasting. Market forecasting helps him to identify the best stocks. CHAPTER-3 COMP ANY PROFILE SHAREKHAN LTD Sharekhan Ltd. is one of the leading retail stock broking house of SSKI Group which is running successfully since 1922 in the country. It is the retail broking arm of the Mumbai-based SSKI Group, which has over eight decades of experience in the stock broking business.Sharekhan offers its customers a wide range of equity related services including trade execution on BSE, NSE, Derivatives, depository services, online trading, investment advice etc. The firm’s online trading and investment site – www. sharekhan. com- was launched on Feb 8, 2000. The site gives access to superior content and transaction facility to retail customers across the country. Known for its jargon-free, investor friendly language and high quality research, the site has a registered base of over one lakh customers. The content-rich and research oriented portal has stood out among its contemporaries because of its steadfast dedication to offering customers best-of-breed tec hnology and superior market information.The objective has been to let customers make informed decisions and to simplify the process of investing in stocks. On April 17, 2002 Sharekhan launched Speed Trade, a net-based executable application that emulates the broker terminals along with host of other information relevant to the Day Traders. This was for the first time that a net-based trading station of this caliber was offered to the traders. In the last six months Speed Trade has become a de facto standard for the Day Trading community over the net. Sharekhan’s ground network includes over 640 centers in 280 cities in India which provide a host of trading related services. Sharekhan has always believed in investing in technology to build its business.The company has used some of the best-known names in the IT industry, like Sun  Microsystems,  Oracle,  Microsoft,  Cambridge  Technologies,  Nex genix, Vignette, Verisign Financial Technologies India Ltd, Spider Sof tware Pvt Ltd. To build its trading engine and content. The Morakhiya family holds a majority stake in the company. HSBC, Intel &  Carlyle are the other investors. With a legacy of more than 80 years in the stock markets, the SSKI groupventured  into  institutional  broking  and  corporate  finance  18  years  ago. Presently  SSKI  is  one  of  the  leading  players  in  institutional  broking  andcorporate finance activities. SSKI holds a sizeable portion of the market in each of these segments.SSKI’s institutional broking arm accountsfo7%of  the  market  for  Foreign  Institutional  portfolio  investment  and  5%  of  allDomestic  Institutional  portfolio  investment  in  the  country. It  has  60institutional  clients  spread  over  India,  Far  East,  UK  and  US. ForeignInstitutional Investors generate about 65% of the organization’s revenue, with a daily turnover of over US$ 2 million. The Corporate Finance section has a listof very prestigious clients and has many ‘firsts’ to its credit, in terms of the size of deal, sector tapped etc. The group has placed over US$ 1 billion in private equity deals. PROFILE OF THE COMPANY: Name of the company : Sharekhan ltd.Year of Establishment : 1925 Headquarter : ShareKhan SSKI A-206 Phoenix House Phoenix Mills Compound Lower Parel, Mumbai – Maharashtra, INDIA- 400013 Nature of Business : Service Provider Services : Depository Services, Online Services and Technical Research. Number of Employees : Over 3500 Website : www. sharekhan. com Slogan : Your guide to the financial jungle Vision To be the best  retail brokering Brand in the retail business of stock market. MissionTo educate and empower the individual investor to make better investmentdecisions through quality advice and  superior service Sharekhan is infact: †¢ Among the top 3 branded retail service providers †¢ No . 1 player in online business †¢ Largest network of branded broking outlets in the country serving more than7, 00,000 clients Sharekhan's management team is one of the strongest in the sector and has positioned Sharekhan to take advantage of the growing consumer demand for financial services products in India through investments in research, pan-Indian branch network and an outstanding technology platform. Further, Sharekhan's lineage and relationship with SSKI Group provide it a unique position to understand and leverage the growth of the financial services sector.SSKI Corporate Finance Private Limited (SSKI) is a leading India-based investment bank with strong research-driven focus. Their team members are widely respected for their commitment to transactions and their specialized knowledge in their areas of strength ITA CORE SERVICES ARE: ? Equities, and Derivatives trading on the National Stock Exchange of India Ltd. (NSE), and Bombay Stock Exchange Ltd. (BSE), ? Commodities trading on National Commodity and Derivatives Exchange India(NCDEX) and Multi Commodity Exchange of India Ltd. (MCX), ? Depository services, ? Online trading services, ? IPO Services, ? Dial-n-Trade ? Portfolio management services, Fundamental and Technical Research services, ? In addition to this they also provide advisory services and  distributions for  mutual funds. ? Sharekhan ValueLine (a monthly publication with  reviews of recommendations,stocks to watch out for etc. ) ? Daily research reports and market review (High Noon &  Eagle Eye) ? Pre-market Report ? Daily trading calls based on Technical Analysis ? Cool trading products (Daring Derivatives and Market Strategy) REASONS TO CHOOSE SHAREKHAN: ? Experience : SSKI has more than eight decades of trust and credibility in the Indian Stock Market. In the Asia Money Broker’s Poll held recently, SSKI won the ‘India’s Best broking house for 2004’ award.Ever since it launched Sharekhan as its re tail broking division in February in 2000, it has been providing institutional-level research and broking services to individual investors. ? Technology: With their Online Trading account one can buy and sell shares in an instant from any PC with an internet connection. Customers get access to the powerful online trading tools that will help them to take complete control over their investments in shares. ? Accessibility: Sharekhan provides Advice, Education, Tools and Education services for investors. These services are accessible through many centers across the country (over 650 locations in 150 cities), over the internet (through the website www. sharekhan. ltd) as well as over the voice tool. ? Knowledge:In a business where the right information at the right time can translate into direct profits investors get access to a wide range of information on the content rich portal www. sharekhan. com. Investors will also get a useful set of knowledge-based tools that will empower them t o take informed decisions ? Convenience: One can call Sharekhan’s Dial-N-Trade number to get investment advice and execute his/her transactions. They have a dedicated call-center to provide this service via a Toll Free Number 1800 22-7500 & 39707500 from anywhere in India. ? Customer Service: Its customer service team assist their customer for any help that they need relating to transactions, billing, demat and other queries.Their customer service can be contacted via a toll-free number, email or live chat on www. sharekhan. com. ? Investment Advice: Sharekhan has dedicated research teams of more than 30 people for fundamental and technical research. Their analysts constantly track the pulse of the market and provide timelyinvestment advice to customer in the form of daily research emails, online chat, printed reports etc. SHAREKHAN LIMITED’S MANAGEMENT TEAM †¢ Dinesh  Murikya   :   Owner  of  the  company †¢   Tarun  Shah   :   CEO  ofà ‚  the  company †¢ Shankar  Vailaya   :   Director  (Operations) †¢   Jaideep  Arora :   Director  (Products  &  Technology) †¢ Pathik  Gandotra :   Head  of  Research Rishi  Kohli   :   Vice  President  of  Equity  Derivatives †¢ Nikhil  Vora :   Vice  President  of  Research BENEFITS †¢ Free Depository A/c †¢ Instant Cash Transfer †¢ Multiple Bank Option. †¢ Secure Order by Voice Tool Dial-n-Trade. †¢ Automated Portfolio to keep track of the value of your actual purchases. †¢ 24*7 Voice Tool access to your trading account. †¢ Personalized Price and Account Alerts delivered instantly to your mobile phone †¢ Live chat facility with Relationship manager on Yahoo Messenger. †¢ Special Personal inbox for order and trade confirmations. †¢ On-line customer service via web chat. †¢ Enjoy automated Portfolio. Buy or sell even single share. †¢ Anytime orderin g. Sharekhan provides 4 in 1 account: *Demat a/c *Bank a/c: for fund transfer *Dial and Trade: for query relating trading *Trading a/c: for cash calculation DEMAT ACCOUNT: Sharekhan  is  a  depository  participant. This  means  that  we  can  keep  the  shares  in dematerialized form  in  Sharekhan. But  for  this  one  has  to  the  demat  account  in Sharekhan. Dematerialization is the process by which a client can get physical certificates converted into electronic balances maintained in his account with the DP. In Sharekhan, under demat account there are two types of terminals Classic and Trade Tiger. ACCOUNT OPENING:Opening a DP account with Sharekhan-One can open a Depository Participant (DP) account, either through a Sharekhan branch or through a Sharekhan Franchisee center. There is no fee for opening DP accounts with Sharekhan. However a nominal deposit (refundable) is charged towards services which will be adjusted against all future billings. All investors have to submit their proof of identity and proof of address along with the  prescribed account opening form. CLASSICAL ACCOUNT: This is a user friendly product which allow the client to trade through website www. sharekhan. com and is suitable for all the retial investors who is risk averse and hence prefers to invest in stocks or who does not trade too frequently Features Online trading account for investing in equity and derivatives via www. sharekhan. com †¢ Live Terminal and Single terminal for NSE Cash, NSE F&O & BSE. †¢ Integration of On-line trading, Saving Bank and Demat Account. †¢ Instant cash transfer facility against purchase & sale of shares. †¢ Competitive transaction charges. †¢ Instant order and trade confirmation by E-mail. †¢ Streaming Quotes (Cash & Derivatives). †¢ Personalized market watch. †¢ Single screen interface for Cash and derivatives and more. †¢ Provision to enter price trigge r and view the same online in market watch. SPEEDTRADE SPEEDTRADE is an internet-based software application that enables you to buy and sell inan instant.