Study And Comparison Of Islamic Bank Performance Finance Essay - Free Essay Example

Sample details Pages: 18 Words: 5323 Downloads: 4 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? Islamic banking in Pakistan started around not more than three decades ago with an program to eliminate interest from specialized institutions and commercial banks in 1977-78, but serious efforts have been made only recently when in January 2000, State Bank of Pakistan constituted a Commission for Transformation of Financial System (CTFS) to introduce Shariah compliant modes of financing, and, on 15 September 2003, when the State Bank of Pakistan (SBP)established the Islamic Banking Department. As a result of these serious efforts, Islamic banking is now playing an important role in financing and contributing to different economic and social sectors in the country in compliance with the principles of Islamic Shariah. Islamic banks in Pakistan currently amount to only six in number and majority of these Islamic banks started their operations only recently except Meezan Bank Limited, which has been in operation for around a decade now. Don’t waste time! Our writers will create an original "Study And Comparison Of Islamic Bank Performance Finance Essay" essay for you Create order On the contrary, conventional commercial banks in Pakistan are comparatively very large in both, size and number, and majority of them have been operating for decades. Currently, Conventional Commercial Banks in Pakistan heavily outperform the Islamic banks in terms of market share and profitability figures, but analyzing figures of growth rates in factors such as market share, asset base and profits, Islamic banks have been following steep graphs lately. The paper that follows is an attempt to analyze various measures and figures showing that Islamic banks have great potential and a promising future in the countrys bank industry. The paper also throws light on the measurement technique, ROE (return on equity) and the economic concept of the market for lemons (George Akerlof), which tend to undermine the performance of Islamic Banks in the industry. Many studies can be found on the performance of Islamic and commercial banks taken apart, but no substantial research on compar ative analysis of both can be detected in the literature on banking as such. Economic development and financial sector development are linked and inter related with one another. Efficient financial sector and functioning plays an important role in the stage of growth of the economy as well as in containing and improving the living standard of its population. Banking system in an economy operates just like blood circulatory system in a body. Just as an efficient blood circulation system ensures healthy body, an equitable banking system ensures economic efficiency and corporate strength. Pakistan has quite a sound and well established banking industry consisting of both Islamic and commercial banks. Commercial Banking dates to almost as far back in time as the country itself. Islamic banking, on the contrary, is only a recent phenomenon. Moreover, commercial banks greatly outnumber Islamic banks. This is why both extensive and intensive studies have been enormously carried out on c ommercial banks while Islamic banking lags far behind that level of research literature. The focus of this paper, therefore, is going to be primarily more on Islamic Banking and its performance. Rising competition, liberalization, consolidation across banks, globalization, and continuous innovation to establish Islamic financial services have resulted in detailed studies and critical evaluation of financial performance of Islamic banks in recent years. Performance evaluation of banks is not only important for depositors and investors but also for bank managers and regulatory bodies. Depositors and investors make decisions of whether to invest or withdraw in a bank based on their interpretation of the banks performance measures. This is even more so in case of Islamic banks where depositors are not entitled to fixed returns and have unguaranteed nominal values of their deposits. Similarly, managers are keen to judge outcomes of management decisions and need to evaluate performance of their loan service or deposit service to improve their finance system. In competitive financial markets performance, hence, holds utmost importance for both the bank and the customers. Aim:- The paper aims to see through the performance of Islamic banking in comparison to conventional banking in the country. Financial ratios have been used to measure and compare Islamic bank and conventional banks performances in the profitability, liquidity, risk solvency, and efficiency. T-test and F-test are used to determine the significance of the results. For in depth research, Meezan Bank has been initially studied for the overall representation of Islamic Banks against commercial banks. Data and Financial statements of Meezan Bank, over the years are easily available. Scope of the paper:- The paper studies 5 big ones out of the total of 35 commercial banks in Pakistan, which, on the whole, is quite enough to provide substantial room to generalize results. On the Islamic side , there are six full-fledged Islamic banks in the Industry; five are private banks and one is a foreign bank. Amongst them, Meezan Bank Limited (MBL) is the only old, somewhat big and experienced domestic and private Islamic bank in Pakistan operating last for more than six years. Almost all of rest of the Islamic banks in the country started their operations only recently except Albaraka Islamic Bank (AIB) which is a foreign bank operating in the country as branches of AlBaraka Islamic Bank Bahrain since 1991 (Source: AIB). Being a foreign bank, we did not select AIB as Islamic bank for our study because the study is aimed at comparing performance of conventional banks against Islamic banks in Pakistans banking Industry. Also, AIB has been overlooked because it is very small in size. We had an open and wide range of conventional banks to from a group for the paper but data availability, time limitations, and other reasons restricted us to the selection of only 5 conventional banks to compare financial performance with Islamic bank (MBL). RESEARCH METHODOLOGY The paper mainly uses secondary method of research to go about proving its point. Research can be broken down into following steps. Finance courses: Finance Concepts learnt in finance courses taken here in university, form the basis of how I have initially approached the topic. Banks Financial Statements: To further analyze and explain the stance taken in the topic, the basic method of research is to gather data and trends shown by the banking industry by studying and cross comparing Annual Financial Statements of various commercial and Islamic banks. In this process, financial statements of Big 5 commercial Banks i.e., MCB Bank Limited  (owned by  Mian Mohammad Mansha), National Bank of Pakistan, Habib Bank Limited and United Bank Limited have been analyzed and their trends of growth rates over the years have been scrutinized. For Islamic banking side, Meezan Bank, the larges t and the oldest of all, has been mainly targeted for financial statement analysis, along with other Islamic banks like Emirates Global Islamic Bank Limited and BankIslami Pakistan Limited. Financial statements can easily be found on the internet or any of the banks branches. Internet: To find data in compiled and shaped out form, internet is a very handy tool. Browsing data on the internet forms an integral part of the research process. Publications: Performance of Islamic Banking and Conventional Banking in Pakistan: A Comparative Study By Muhammad Shehzad Moin, University of Skà ¶vde, is the main reference paper for my report. Other related reference papers from libraries and book shops havel also been searched, studied and properly cited. Finance Experts interviews: Further, gathering direct views and opinions by interviewing professors and practitioners in the finance field is another method that has been employed for the report. Dr. Mohammad Basharullah, visiting Faculty, Suleman Dawood School of Business, Lahore University of Management (LUMS) and Mr. Aneel Iqbal, ACCA, CA, CFA, CMA (silver medalist) were interviewed to enlighten the paper with their thoughts on the comparison between performance of Islamic and commercial banks. State Banks Papers: Also, State Bank of Pakistans publications on Islamic banks performance have been studied and compared against those on commercial banks performance. https://www.sbp.org.pk/departments/Publications.htm is the link to the page that features all publications on Islamic Banks performance on the State Banks Official Website. The main paper studied in regard for our purpose is Pakistans Islamic Banking Sector Review that is available on the above mentioned link. Furthermore, relevant publications have been selected and read from this list of publications on the web link https://www.sbp.org.pk/publications/index2.asp. Learning concepts: For the purpose of the paper, the concepts of profitability ratios Reurn on Equity (ROE), Return on assets (ROA), Profit to Expenses Ratio (PER), and liquidity ratios Loan to deposit ratio (LDR), Cash Portfolio Investment to Deposit Ratio (CPIDR) have been thoroughly gripped. RISK AND SOLVENCY RATIOS and EFFICIENCY RATIOS have been covered to derive empirical results. Furthermore, the market for lemons (George Akerlof) will be deeply scrutinized. Different books and papers on these concepts have been studied to build hold on these concepts. These concepts have then been applied and studied in relevance to the case of Islamic banks performance. The paper explains how these factors tend to undermine the performance of Islamic banks. Introduction to Islamic banking.. Islamic Banks aim to provide banking services that are in accordance with Islamic Principles and Shariah within the complete Islamic financial system, which in turn aims to bring the most benefit to society in terms of equity and prosperity, rather than focusing solely on creating maximum returns on capital (Zaheer and Hassan, 2001: 158). Islamic banking has been defined as banking in consonance with the ethos and value system of Islam and governed, in addition to the conventional good governance and risk management rules, by the principles laid down by Islamic Shariah. Interest free banking is a narrow concept denoting a number of banking instruments or operations, which avoid interest. Islamic banking, the more general term is expected not only to avoid interestbased transactions, prohibited in the Islamic Shariah, but also to avoid unethical practices and participate actively in achieving the goals and objectives of an Islamic Economy (Source: SBP). Islamic banking is t he system of banking consistent with principles of Islamic law (Shariah) and guided by Islamic economics. Islamic economics is referred to that body of knowledge which helps realize human well-being through an allocation and distribution of scarce resources that is in conformity with Islamic teachings without unduly curbing individual freedom or creating continued macroeconomic and ecological imbalances (Chapra 1996). A key element of Islamic economics is distribution of equitable rewards to the different factors of production. Islamic economic system seeks system of Redistributive justice where concentration of wealth in a few hands is countered and flow of money into the economy is fluent. Islamic banking is, therefore, seen as a lynchpin to achieving the economic and social goals of the Islamic economic system. (Source: Bank Alfalah). Islamic banks aim to achieve the socio-economic goals of the Islamic religion which are reaching full-employment, a high rate of economic gro wth, equitable distribution of wealth and income, socioeconomic justice, smooth mobilization of investments and savings while ensuring a fair return for all parties and finally emphasize the stability of money value (Hassan and Mervyn, 2007 Chapra, 1995). For both, commercial and Islamic banks, the basic concepts and objectives hold common. All they differ in is the methodology employed to go about fulfilling those objectives. To be very simple, conventional banking aims to meet these objectives through use of interest- based contracts (Riba) while Islamic banking achieves the same through trade-based contracts. The former is strictly forbidden under the very fundamentals of Islam. But Allah has permitted trading, and prohibited Riba Quran Islamic Banking was actually demanded to implement the divine instructions on all transactions specifically those involving exchange of Money for Money. But, here it is noteworthy to mention that it will be a total injustice to bind Is lamic Banking to the eradication of RIBA only. Riba is one of the most undesirable elements in an economic transaction. Qimar (speculation) and Gharar (risk or uncertainty) are the others. While removal of these objectionable aspects is one of the very critical aims of Islamic banking, it is by no means its ultimate objective. And that which you give in gift (loan) (to others), in order that it may increase (your wealth by expecting to get a better one in return) from other peoples property, has no increase with Allà ¢h; but that which you give in Zakà ¢t (sadaqa charity etc.) seeking Allà ¢hs Countenance, then those, they shall have manifold increase. Sura Ar-Rum (30:39). That they took riba (usury), though they were forbidden and that they devoured menssubstance wrongfully We have prepared for those among men who reject faith agrievous punishment. Sura An-Nisa (4:161). In Muslim societies, limited banking activity can be traced goes back to the time of the Holy Prophet Muhammad (SAW). Just like all other Islamic teachings, the origin of Islamic finance dates back to the era of The Holy Prophet Muhammad (SAW). The Quran and the example of the Holy Prophet Muhammad (SAW) provide the model and feature the foundation of Islamic fundamentals to over one billion Muslims round the globe. The Holy Prophet (SAW) happened to be a business man serving as a trader for Hazrat Khadija (May Allah Almighty be pleased with Her). The Prophetic example was the very archetype of fair-trade. Ensuring transparency in transactions, refraining from usury, and honesty entitled him the title of Al- Amin (The trustworthy) in pre-Islamic Arabia. At that time people deposited money with the Prophet Muhammad (SAW). For a long time, some circles argued that Islam prohibits excessive interest only or the interest on consumptive loan. Such lame arguing fails to give due understanding to versus 278 279 of Surah Albaqra (quoted below); O ye who believe! Be afraid of Allah and give up what remains (due to you) from Riba (usury) (from now onwards) if you are (really) believers. (2:278). And if you do not do it, take notice of war from Allah and His messenger! But if you repent, you shall have your capital sums. (2:279). All this does not mean that Islam prohibits any gain on principal sums. In Islam, Profit is the standard incentive reward of capital. When capital employed in Halal business yields profit, that profit has rightful and just claim of the owner of the capital over it. As a corollary, the risk of loss also lies exclusively with the owner of the capital and no other factor of production is should be liable to incur it. Another important element of Islamic Principles is that reward or profit can only be claimed in the instance where effort has been expended or risk of loss has been assumed. Profit is therefore received by the provider/owner of the capital and remuneration by labor/manager of the capital. An Investor in a n Islamic bank can therefore make earnings on his or her deposit through either return on his capital when that capital is employed in a business venture or sharing of profit when his capital is part of capital that is employed in a partnership Halal Business or through rental earnings on an asset that has been partially financed by his capital. Difference between conventional and Islamic banking ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦.. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦ . Islamic Banking in Pakistan As early as in 1948, the Quaid e Azam, Muhammad Ali Jinnah, emphasized the virtues of Islamic system of finance and in his address at the inauguration of the State Bank of Pakistan (SBP), said: I shall watch with keenness the work of your Organization in evolving banking practices compatible with Islamic ideas of social and economic life. We must work our destiny in our own way and present to the world an economic system based on true Islamic concept of equality of manhood and social justice. Banks in Pakistan share their 95 percent of the financial sector , therefore good health of bank, development of Pakistan and economic growth directly related with one another. Pakistani banking system, which is composed of 50 to 53 banks. 4 specialized banks 6 Islamic banks 6 micro finance banks 7 Developmental financial institutions 30 commercial banks The banking sector in Pakistan is composed of owned and government banks which are 9 in number, private b anks are 22, privatized banks are 4, foreign banks are 5, development institutions are 7, non member banks are 4 and 2 are the SME banks which are small and medium enterprises. Of all the total system assets, four largest commercial banks make up 44.2 percent, while eight second tier banks account for a further 35 percent indicating moderate concentration Banks of Pakistan have been all the time involved in fulfilling and catering the needs of government organizations, subsidizing the fiscal deficit, engaging in trade financing, and serving large corporations. SME enterprises, housing sector and agriculture sector which are involved in improving growth and employment in Pakistan were deprived of lending. Moreover, financial system in Pakistan was also affected and under the influence of politics. There was utmost political intervention in lending decisions and in the appointment of managers. Over the last 15 years, the privatization of public sector banks , the entrance of pri vate banks and the tightening of prudential regulations have changed the Pakistani banking system. Currently, private sector is controlling nearly 80 percent of the system assets, as opposed to the early 1990s when it (share) was only 10% however government at that time were controlling 90% of the system assets. Moreover, total financial assets have reached 175$ billion which constitute 110% of GDP. The banking system shares 40% of total stock market capitalization and amounts to 95% of the total assets of financial institutions. Deposit base has reached to $60 billion and advancing to $47 billion. However growing financial intermediation has played an important role towards banks aggregate profitability to take to $1.8 billion. Of the entire total paid up capital of all the financial institutions regulated by the state bank of Pakistan, currently foreign stake comes to 47% of it. Islamic banking which was started in 1977-78 in Pakistan, which introduce new laws, included in t he removal and elimination of interest from the operation of specialized institution and commercial banks. There were some amendments were made in the financial system as well as in the corporate sector to allow the issuance of new interest- free instrument of corporate financingnamed, PTC Participation Term certificate. Just at the same time, Ordinance was introduced to permit the establishment of mudarba companies and flotation of Mudarba certificates, with the aim of rising risk based capital. On july 1st, 1948 the pak rupee were made interest free from all the commercial banks. In January 2000. In the state bank of Pakistan, a commission for transforming financial system (CTFS) was constituted to introduce Shariah compliant modes of financing. CTFS was held responsible primarily for creating legal infrastructure conducive for working of Islamic financial system, introducing a good education and training programs for their clients and bankers, and to create awareness for the g eneral public for the Islamic financial system and also to teach them how to deal with major products of banks and financial institutions both for assets and liabilities side. In September 2001, Government of Pakistan decided to make jumped to an idea of interest free economy in a gradual and phased manner without causing any disruptions. It was also the part of the decision that state bank will be considering for establishing subsidiaries by the commercial banks for the aim of carrying out shariah compliant transaction. Specifying branhes by the commercial banks exclusively dealing in Islamic products and, creating new full fleged commercial banks to carry out utterly banking business based on proposed Islamic financial products. On 15th of September 2003, the state bank of Pakistan SBP introduce the Islamic banking department with the vision of to promote and regulate Islamic banking industry in line with best international practices ensuring shariah compliances and transpar ency and with the aim of making Islamic banking the first preference for the 15 providers and users of financial services. In January 2002, Meezan bank Limited was granted first ISLAMIC BANKING LICENSE by the State bank of Pakistan. Their major task is to promote and develop the shariah compliant Islamic banking as a compatible banking system in the country. That organization is composed of three division: policy division, business support division and shariah compliance division. A shariah borad consists of experts to guide the Islamic banking industry is also in place at SBP. Prudential regulation, risk management , corporate governance and accounting shariah standards etc.. are the major areas SBP is working on to regulate and supervise the Islamic banking sector. Presently, Islamic banking sector is working under the existing laws. Currently there are six full-fleged Islamic banks operationg in Pakistan. These banks with their year of incorporation are: Bankislami P akistan limited (2003) Albaraka Islamic bank Pakistan (1991) Dubai Islamic bank Pakistan limited(2005) Meezan bank limited (2002- restricted as Islamic bank) Emirates global Islamic bank limited (2007) Dawood Islamic bank limited (2007) Among the banks listed above. ALBARAKA Islamic bank is the only foreign bank working in Pakistan, while meezan bank has the honor of being the first domestic commercial bank offered full fleged Islamic banking license by SBP in januray 2002. However in the overall banking system the market share of Islamic banking assets rise up to 4.3% as of December 31, 2007 compared with 3.0% in preceding year. Islamic banking deposits, financing and investment stood at 4.1%, 4.3% and 2.6% respectively as compared to 2.7%. 2.88% and 0.94% a year earlier. Year on year (yoy) growth for total assets, deposits and financing and investment was 75%, 78%, 91% respectively. Branch network during the same period reached 289 from 150 branches, showing 9 3% increase in year 2007.its expected that by the end of this financial year the share of assets of Islamic banking to overall industry widd cross 5.0%. we can say that Islamic banking industry is growing with good signs of financial inculsion. Meezan bank is leading all the Islamic banks while among the IBDS of conventional banks, bank alfalah is on the top. GROWTH OF ISLAMIC BAKNING ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦ÃƒÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦. RATIOS ANALYSIS The study is intended to be a comparative financial performance of Islamic banking in comparison with conservative banking in Pakistan. Basically the comparison is between the Meezan bank limited (Islamic bank), with the recital of five conventional banks.In todays world where there is a great spirited financial market, one can justly understand the banks performance in any regard by the analysis of the inter banks comparison. Therefore in this study the balance sheets and income statements for two set of banks have been considered and the data is collected and compiled from it. Inter-bank analysis is one of the best types to be used while doing a study on banks. There have been many ways and methods by different financial theorists to measure the banks performances more accurately. However the ratios have proven to show more precise results and they are therefore more vastly and commonly used for the analysis. For instance, many of the bank regulatorss (Sabbi 1996), (Spindler -1991) have been using different ratios. For this study, in order to analyze how the Islamic banks perform in accordance with the other set of five conventional banks, the ratios method is to be used. For a detailed study, 12 financial performance ratios have been considered. For convenience these ratios have been divided into their main categories as follows: MAKE A TABLE 1) Profitability ratios 2) Liquidity ratios 3) Risk and solvency ratios 4) Efficiency ratios. There are five conventional banks to be compared with one Islamic bank so for that reason first ratio of each conventional bank is calculated, and after that the ratios of all the banks are averaged. And in end they are compared with the ratio of the Islamic bank in each individual year. PROFITIBILTY RATIOS: The ratios which are meant to give the most accurate results about the performance of a bank are the performance ratios. Usually if they are high in accordance with the previous ratios, the previous year, the banks in competition and the industry, they reflect betterment in performance of the bank in the related period. More often the profit is the difference of the revenues and expenses and this is the most crucial aspect for any firm to analyze. These ratios help in calculating the profits while keeping in mind the entire cost including income taxes, shareholders equity, and other expenses. To study the comparison of two banks, in the profitability ratio, following criteria is used: Return on assets (ROA), Return on equity (ROE) and profit expense ratio (PER). Return on assets (ROA): Return on assets indicates the profitability on the assets of the firm after all expenses and taxes (van Horne 2005).it is all about how well can banks convert all of its assets into a handsome amount of earnings. It is a common measure of managerial performance (Ross, Westerfield, Jaffe 2005).Higher ratio generally shows the better performance and how good the firm has made use of its assets however the lower ratio indicates the poor performance and the low rate of converting the assets into earnings. There are ways of increasing the rate on assets by either increasing the turnover rate or the margin but the few limitations makes it a bit troublesome. One is the tradeoff between the margin and the turn over and the second reason is the great competition. It is however calculated as: ROA = net profit after tax / total assets Year 2003 2004 2005 2006 2007 2008 2009 Mean S.D Islamic Bank 1.93% 1.14% 1.37% 1.30% 1.43% 1.49% 1.50% 1.49% 0.00296 Conventional Bank 2.18% 1.35% 1.59% 1.47% 1.38% 1.6% 1.58% 1.59% 0.0034 ROA decreased to 1.14%, from 1.93%, and to 2.18% from 1.35% during 2003-2004 for Islamic and conservative banks, respectively. Decline in ROA in 2003-04, conservative banks recovered it in 2004-2005.But the recovery was temporary. Since 2005, conventional banks ROA have constantly decreased. ROA of Islamic bank has been fluctuating as it increased in 2004-05, from 1.14% to 1.37%, but decreased to 1.30% in 2006 and in 2007, it was 1.43% with 0.13% increase. Lately, in 2008 and 2009, trends have remained rather constant. ROA on an average of conventional banks is 1.59% that is higher than average of Islamic banks ROA i.e. 1.49%. 2008 Islamic and conventional banks financial results revealed whether R OA of conservative banks will keep on declining and whether ROA will increase or decrease of Islamic banks. Nevertheless, Pakistans banking sector is growing but by looking at the 4years trend of ROA both kind of banking has been facing the problem with profitability. Return on equity (ROE): This ratio shows the prosperity to shareholders after all the taxes and expenses of the firm. Moreover ROE is net earnings per dollar equity capital (Samad and Hassan 2000). It basically signifies the managerial efficiency. Higher return on assets and debt can be the reasons for the higher rate of return on equity. ROE is always increased by the financial leverage and it is where it differentiates ROE with ROA.Studies have shown that high growth companies have higher ROE. It is thus calculated as: ROE = net profit after tax / shareholders equity TABLE ROE 2003-2009 Year 2003 2004 2005 2006 2007 2008 2009 Mean SD Islamic Bank 12.23% 10.69% 13.87% 12.69% 16.88% 16.95% 16.05 14.19% 0.02317 Conventional Bank 29.83% 21.04% 23.60% 19.95% 19.38 % 19.0% 18.35 21.64% 0.04217 The study of ROE of conservative and Islamic banks gives some important points to consider. In 2003-2007 The ROE of conservative banks is higher than that of the Islamic banks. In 2003, difference was large that decreased during 2004-2007. The difference is 17.6% in 2003, this in 2007 has been plummeted to 2.5%. This huge decrease in two ROEs is mostly due to Islamic banks overall trend that is increasing ROE and decrease in conventional banks ROE. This all has given us an important insight. Islamic banks ROE followed conventional banks in terms of decrease and increase during 2003-07. Where as in the years when there is increase in the ROE of the banks, the increase in the ROE of Islamic ban ks is more than that of the conventional bank (Islamic banks have 30% increase as compared to conventional banks 12% increase in 2003-05), and Islamic banks decrease in ROE has been less than decrease in ROE of conventional banks (Islamic bank has decrease of 8.5% as compared to conventional banks 15% decrease in 2005-06). Islamic banks ROE in 2003 was 12.23% and it increased to 16.05% in 2009. On the other hand, ROE of conventional banks was 29.83% in 2003, decreasing to18.35% in 2009. Financial statements analysis of Islamic banks have shown that overall profits are increased more than Islamic banks equity base that resulted in ROE to increase over time. On the other hand, the group of 5 conventional banks, their equity base increased but their profits base decreased which was the main reason for overall decrease in ROE from 2003-09. Profit to Expense Ratio: This ratio shows the degree to which the firm is efficient in the operating activities. A higher PER means bank is cost efficient and is making higher profits (Samad and Hassan 2000).it is calculated as: PER = profit before tax/ operating expense Year 2003 2004 2005 2006 2007 2008 2009 Mean SD Islamic Bank 0.94% 0.57% 0.88% 0.76% 0.72% 0.76% 0.72% 0.76% 0.155306 Conventional Bank 1.91% 1.30% 1.48% 1.20% 0.82 % 0.81% 0.74% 1.18 % 0.39873 PER is showing that conservative banks are more profitable than Islamic banks in terms of expenses in 2003-09. The study indicates that conservative banks have been generating higher profits consistently for every rupee of expense spent during 2003-09 but with a decreasing trend as compare to Islamic banks. There was decrease in 2003-04 but conventional banks PER increased in 2005, but after that it has been decreasing without any rise. Conventional banks had PER of 1.91 in 2003 but it decreased by 65% and came down to 0.74 in 2009.Conventional banks this decrease is much more deep than of Islamic banks that happened during the same period. In 2007 Islamic bank PER decreased to 0.72 from 0.94 in 2 003 which makes it 20% decrease. Further financial statements of the 5 conventional banks were analyzed which included the study that revealed the fact that conventional banks have increased expenses during 2005-09, However, for few other banks there was not such increase in the profit and even for some it decreased, which resulted in the decrease of PER for conventional banks. LIQUIDITY RATIOS: The liquidity ratio shows the firms capacity to convene persistent financial responsibility and obligation. Liquidity is important for the firm to avoid defaulting on its financial obligations and, thus, to avoid experiencing financial distress (Ross, Westerfield, Jeff 2005).It greatly helps the firm to judge its short term obligations, measures its ability in terms of collecting the receivables and also the ways to maintain the cash. Lower liquidity ratio means that the firm has a great capacity to recover its short term obligations and that it has a good range of margin with respect to the safety of the firm. Banks can get into the liquidity problem especially when withdrawal exceeds new deposit significantly over a short period of time (Samad and Hassan 2000).liquidity has certain measures. Following are they: Loan to Deposit Ratio (LDR), Cash and Portfolio Investment to Deposit Ratio (CPID), and Loan to Asset Ratio (LAR). Loan to Deposit Ratio (LDR): This ratio being the most important clarifies the overall liquidity condition of the firm. In Islamic banking system the word loan is used differently and in other set of banks with different meaning. They are considered finances for the Islamic banks and the conventional banks use it as advances. The reason for this is the disallowing of using the loans by Islamic system that is (riba).they are also strict in following the Islamic principles. The only way left is however to endow with finances by diverse Islamic financial products. Excessive liquidity, potentially lower profits and the less risk involved are well considered when the LDR is low as compared to other banks that has a higher LDR. So the higher LDR indicates a negative picture of the firm, to have more risk as a result of which the bank may have to sell out few or many loans at a great loss. This ratio is calculated as: LDR = loan / deposits Year 2003 2004 2005 2006 2007 2008 2009 Mean S.D Islamic Bank 95.36% 89.61% 86.7% 78.47% 63.35% 62.24% 55.16% 75.80% 0.12413 Conventional Bank 73.85% 76.66% 69.9% 76.44% 70.89% 65.23% 64.25% 71.03% 0.03103 High loan to deposit ratio for Islamic bank compared with conventional banks during 2003-2006 indicates that Islamic bank has been comparatively less liquid. However, in 2007, Islamic bank LDR (63.35%) decreased below conventional banks (70.89%) turning Islamic bank into comparatively better liquidity position. LDR of Islamic bank decreased from 95.36% in 2003 to 63.35% in 2007. This overall declining trend in LDR of Islamic bank indicates the tendency of comparatively more increase in deposits than loans (financings) and further emphasizes improved liquidity position of Islamic bank. Compared with Islamic bank, LDR of conventional banks has been reasonably lower and floating between approximately 70% and 77%. Conventional bank LDR was 73.85% in 2003 which decreased to 70.89% in 2007. Although Mean LDR of Islamic bank 82.70% is higher than Mean LDR of conventional banks 73.55% but statistically there is no difference between the two means at 5% level of significance.

In ken keseay’s one flew over the cuckoo’s nest a...

In ken keseay’s one flew over the cuckoo’s nest a psychiatric ward becomes a metaphor for the oppressive nature of society In ken keseays one flew over the cuckoos nest a psychiatric ward becomes a metaphor for the oppressive nature of society. This symbolic novel relays the story of an inmate standing up against the powerful forces that operate a mental institute. This novel represents more than man vs the institutions. The novel compels us to think about just how thin the line is that separates insanity from sanity and treatment from control. One flew Over thee cuckoos nest represents a heroic struggle of personality against an institution of mindless conformity. Change becomes relevant in each character in the ward†¦show more content†¦They swallow their tranquillisers, agree to any guilt-mongering diagnosis or humiliating treatment the authorities say is for their good. They take part in democratic therapy sessions that adrupt end if anyone tries to change anything, and know that the ultimate sanction is lobotomy The characters themselves can be viewed as a metaphor of society as well MM for example represents the rebellious faction of society that was so loudly expressing itself during the 60s and 70s, he like the hippies challenge authority and brings about change by inciting others to rebel as well. Bromden sees modern society as a mechanical oppressive force and he views the hospital as the repair shop for people who dont fit into their roles as cogs in the michine. His way of interpreting the world emphasizes the oppressive social pressure to conform. Those who dont conform to the rules and conventions are considered defective products of theschools, churches and neighbourhoods those who dont conform are labelled mentall ill and sent for treatment Kesey demonstrates the change in chief bromden when the character awakes and watches the dog outside the window. Thi shows that chief bromden is now more aware of the outside world. He can conceive of exsistance outside of the institution, as he could not before. MM is the primary cause of this change. When things arent going well for the chief he sees for surrounding him.. he is sure

Made Up Fairy Tale Essay Example For Students

Made Up Fairy Tale Essay ARGH! Im going to get you, you little brat! screamed Taylor, a 14 year old native of Calgary, Alberta. Taylor whizzed around the corner to beat up her little brother Jay. Ha! I got you Boomer! exclaimed Taylor. Im gonna tell mom and your gonna be in trouble ! he he. replied Jay. As soon as Jay made that remark Taylor let him free. Jay knew that saying that hell tell on her would convince her to let him go anytime, so he ran around her and pulled her long auburn hair. Taylors soft green eyes all of a sudden turned hard, dry, furious green as she grabbed him by the collar of his shirt and threw him out in the stormy cold air outside and locked the door. Let me in, Im not a dog! yelled Jay. Oh yes you are. replied Taylor, and she grabbed a book and spoke gibberish to the ceiling. All of a sudden Jay started feeling funny in his tubby stomach. When Taylor was done gibber jabbering, she opened the door and said, Come here boy. When Jay saw her, it looked like she had grown about three feet because all he could see was her knees. He walked in and sat down, looked at the black screen and saw a reflection of a beautiful golden retriever. You got a new dog Taylor!? asked Jay. You werent mad at me, Taylor. You just threw me outside because you didnt want me to see the new dog yet! exclaimed Jay. That is what you think said Taylor. Jay stared at her in confusion while Taylor got a mirror. She showed him what he was. He was a dog. He screamed, but actually he barked while running in circles chasing his tale without even knowing it. Taylor hooked up his leash on his collar and called the Humane Society. They were there in less than ten minutes to pick up Jay. TThey picked him up but he noticed this wasnt an ordinary dog catcher. This dog catcher was his mom. She picked him up and threw him in a cage, and they drove for hours until they finally stopped at a laboratory. She put him in a small cage with 5 other dogs. One dog started talking to him and said, Jay? Is that you, Jay? Jay said yes. Im Juan, your best friend, he said. Juan told Jay that Taylor wasnt his real sister but that she was a remake of the Wicked Witch of the West of the movie Wizard of Oz. So Jay and Juan broke out of the cage and started home. While walking they ran into a man with three legs, two tongues, and a really big nose. The man gave them a biscuit for each of them and told them his name was Rufus. Rufus said he met them because he used to be a dog and now a human. Rufus said hed trade positions with them, but that they would have one major side effect. That side effect would have Jays body with Jays head, but it also would have Juans head. So w ith the potion Rufus had, they traded spots. Rufus was now a dog and the boys were a freak. Juan and Jay took a bus to Calgary. When they got there, the city had totally changed. Instead of it being really cold, it was like Arizona. Calgary was now a desert of destruction. Every person was a dog or a cat, but about a mile away they saw a Castle, and so they knew They hopped on a goat, and they were on their way. Jay and Juan were at the open gate and went in. They saw Queen Taylor West and ran up to her, grabbed her spell book, and spoke. They were back to normal. Jay and Juan cornered Taylor and spoke in the terms that were in the spell book, and Taylor turned into a gummy worm. Jay picked it up and said. This is for you, sis, and he ate her. At that same moment everything went back to normal, and he had his real parents that he had never met before because they were dogs also. They all lived happily ever after in their home. Bibliography:

Policy Setting in Job Training Programs

Introduction Employment and Job training program is a valuable tool for ensuring organizations, and even nations at large, gain in terms of increased workers’ productivity. From the dimension of the workers, employment and the on-job training programs are beneficial in the sense that, they result to investment in workers’ abilities and careers, often improving them in the course of execution of such programs. For fresh graduates, employment and job training programs provide them with an amicable opportunity to both learn and work.Advertising We will write a custom critical writing sample on Policy Setting in Job Training Programs specifically for you for only $16.05 $11/page Learn More For the purposes of realization of these benefits, it is critical that organizations, in both public and private sectors, develop effective policies that guide proper and smooth running of employment and job training programs. The question is, thus, how shoul d it be done? Assuming the position of an external policy analyst, the paper seeks to answer this interrogative. Akin to development of employment and on job training programs policies, within organizations, is the need to distinguish between two technical terms learning and training. Friedlander and Robbins argue, â€Å"Training’ suggests putting stuff into people, when in essence we should be developing people from the inside out, so they achieve their own individual potential – what they love and enjoy, what they are most capable of, and strong at doing, rather than what we try to make them be† (923). Based on this argument, it is perhaps plausible to argue also that training is the province of organization’s concerns while learning is the concern of people working for the organization on an individual basis. This infers that learning is chiefly an outcome of training, which can be achieved or fail to be achieved, depending on the trainee’s leve ls of interest and intellectual abilities. Consequently, the paper proposes that employment and job training policies need to be formulated and implemented, in such a way that, such peculiar differences, amongst the target persons, are well addressed in the attempt to achieve enormous success of employment and job training programs. While formulating employment and job training policies, it is critical that substantive flexibility is provided. The paper argues that flexibility in policies development and enactment is relevant in the sense of making sure that mechanisms of incorporating dynamic changes, in terms of technological innovation in the programs, are provided. This implies that, problems should be redefined whenever an attempt is made to derive a new approach in deploying job training programs, in seeking to improve the productivity of the organizational workforce. However, any employment and job training program policy needs to be structured such that, it always defines th e problem at hand, considers philosophical and cultural perspectives of the organization (guiding principles, values, ethos, and visions among others), and people (their abilities and financial limitations).Advertising Looking for critical writing on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Moreover, it should define legal contexts (in terms of discrimination, safety and health); methods of career development, recruitment, succession and selection; financial planning; and social responsibility perspectives (diversity, environment, ethics, sustainability and social corporate responsibility among others). Training program timing, scale and geographical factors, methods of measuring and evaluating policy achievements, and system tools, among others also need factoring in the policy formulation, implementation and evaluation phases. With this in mind, this paper focuses on policy development in the area of employment a nd job training programs. The paper begins by considering problem definition, followed by policy goal setting, then policy tools, and finally, consideration of probability of the proposed policy ability to get into an agenda. Problem definition Upon passing of the 1961 area redevelopment act in the U.S., policymakers embanked on reshaping and also endeavoring to upgrade skills coupled with employment prospects of people who garnered low income via employment and job training programs that were highly publicized. Many of these programs kicked off their concerns, by availing vocational training opportunities to people, who were displaced and dislocated before shifting in covering people who lived in poverty. Many of the persons, regarded as weak in the vocational training programs, were largely economically disadvantaged in the sense that, they had a long history that was ideally poor. As Friedlander and Robbins note, â€Å"during the 1960s the menu of services provided to economical ly disadvantaged people expanded, but since that time their variety and content have not changed very much† (927). However, the goals and orientations of employment and job training programs in the U.S. policies can be argued as having shifted incredibly. For example, within the last four decades, training programs policymakers have indeed changed their emphasis with regard to low costs as opposed to services that are high cost in nature with regard to the extent in which they serve the interests of the unemployed people who often are economically disadvantaged. Much change has also been realized, in the context of such programs capacity, to serve youths in comparison to adults, particularly dropouts of high schools. The main problem is that such programs fail to produce substantive earning and or employment gains among the youths. This problem is widely supported by the results of non-experimental evaluations coupled with alternative social experiment program models with the exception of findings of Job Corps program. Friedlander and Robbins reckon, â€Å"Some evaluations, including one experimental evaluation, report that Job Corp programs services modestly increase participants’ employment rates and earnings† (933).Advertising We will write a custom critical writing sample on Policy Setting in Job Training Programs specifically for you for only $16.05 $11/page Learn More The services provided by Job Corps are, however, expensive but comprehensive in nature. The ability of the Job Corps’ employment training program to produce positive results is indeed, however, impacted by the fact that cost benefits analysis show that earnings increase derived from Job Corps training fails to justify the costs incurred in conducting the trainings. Ideally then on margin, chances are that the society may be better off in case the employment training resources could have been channeled to adults other than youths. Stat istically, expenditures on employment training program in the U.S. amount to 0.1 to 0.2 of the GDP depending on the nature of the program being implemented (Heckman, LaLonde, and Smith 43). Almost all other OECD member countries spend much more than the U.S. on employment training program as a share of their GDP (Heckman, LaLonde, and Smith 47). By considering the magnitude of poverty in comparison to wages inequalities among economically disadvantaged people- who are often targeted by employment and job training programs, it becomes challenging and often sheds light on why training program produces little impact on wages structure and or output. Employment and training programs, with regard to the policies establishing them, they ought not to affect the well-being of participants, on average. Apparently, based on evaluations, existing programs fails to integrate participants in the realm of the economic mainstream. Indeed even though job training programs may be primarily argued as effective in conducting training, from the workers dimension depending on the differences existing between various people especially their learning abilities, they may fail to ensure that workers indeed learn as intended. Consequently, amid making people disadvantaged economically less poor, the programs may fail to reduce poverty levels substantially, yet this aim is their noble role. Surprisingly enough, majorities of the programs are executed under lower costs per participant, than the annual cost of normal schooling. Heckman, LaLonde, and Smith exemplify this point by asserting, â€Å"In 1997, programs operated under the Job Training Partnership Act (JTPA) spent on average about $3,000 per participant† (82). Arguably then, anticipating employment and training program to hike productivity output per participant to a sufficient level so that yearly earning escalate, by for instances thousands of dollars, infers that social investments need to have internal return rates tha t are extraordinary. In the modern-day, technologies deployed in organizations incredibly change virtually almost overnight. It is thus almost impossible to anticipate that, skills transferred to the population, through formal schooling, would do much such dynamic. Evidently, a mechanism of ensuring that workers remain updated with the emerging innovative technologies and methods of production, especially the ones that reduce production costs, is indispensable.Advertising Looking for critical writing on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Essentially, such knowledge is more likely to be transferred to people through employment and training programs that to date forms a concern of every organization that seeks to remain competitive. Reforms of employment and training policies are thus not an option, but a must for embracement by organizations. This aspect is perhaps largely significant by considering that, the question of effectiveness of employment and training program are likely to attract large public interest, especially by noting that, creativity and innovation are the key drivers of modern economies. Arguably, continuous training is the core of workers productivity output improvement. One of the most plausible ways of ensuring that employees continuously learn is the deployment of vocational training in every sector of production-something many nations have ardently embraced. However, change of policies governing vocational training is essential to make the current vocational training program more effective. To resolve the problem of failure, of employment and training programs to produce substantive earning and or employment gains among the youths, calls for change of the vocational training programs from being voluntary to mandatory. However, these trainings consume money and hence, the government essentially needs to either fund them on differed payment mode or treat then as part of essential services it provides to the citizens free of charge. Where charging is necessary, then, temporary assistance to needy families needs being considered. Policy goal setting The goal of developing vocational training policy by declaring that, it is mandatory for every student to attend mandatory vocational education and training program, in the due course of his or her education, is pegged on the idea of improving chances of students being considered for jobs upon clearing their formal education. Students, who have attended technical and vocational training programs, have experience on their line of s pecialization and hence are better placed to handle responsibilities delegated to them with minimal on the job training. Additionally, the goal of making such a policy is based on the belief that by placing students on mandatory vocational training program, they would get a lid of stereotyping associated with their careers. This has the consequences of making them develop impression that is realistic in relation to their careers of choice. Moreover, students would get acquaintance with their specialties’ â€Å"culture of industry and commerce, to develop the students understanding of the role and functions of different employees within an organization and to provide the discipline of employment† (Conger 30). Making technical and vocational training mandatory is necessary, especially by considering that, experience has shown that technical and vocational training institutions have an immense opportunity of having their students placed, as compared to other students who do not attend such programs. In this essence, the goal of making technical and vocational training mandatory is to ensure that students become demand-driven, dynamic, competitive, at both national and international levels, and quality conscious. Ensuring that students develop abilities to respond to work environmental dynamics would apparently mitigate the challenges previously encountered in training programs over the first two decades of the last four decades in which upon conducting on the job training, minimal results were obtained in terms of increased workers productivity outputs in comparison to the costs incurred during the training forums. Even though setting the goals of making technical and vocational training mandatory may sound as having the capacity of providing students with mechanisms of being recruited for jobs quick enough upon completion of the formal studies, several nations experience a number of drawback towards institutionalization of technical and vocational training programs. For instance, in India, technical and vocational training has been widely acclaimed as having the ability to improve the output of new job entrants. However, technical and the vocational training program policies have experienced immense challenges, because in India, there exists low priorities amongst the citizens for vocational training, insufficient industries for linkages, inadequate trainers and teachers, and non-existence of vertical mobility. Moreover, India boasts inflexible curriculum, non-agreement of various agencies, and absence of overall social appreciation of the roles of vocational education, among others. Application of the policy declaring that technical education and vocational training are mandatory needs also to embrace certain aspects in its formulation if at all the goals of vocational education and training are to be meet precisely. These aspects include; expansion and upgrading of vocational training and education, expansion and upgrading of technical and higher education, promotion of research in institutions of education and also redesigning patterns of education at school levels to ensure that skills development is facilitated. Government being the primary organ charged with ensuring the successful implementation of policies applicable at national fronts, on its part needs to ensure that vocational training and education program polices are fully implemented by declaring its roles precisely. Within the broader goals of making technical and vocational training mandatory, a government needs to strengthen, reinforce, and reform vocational training and education. It also needs to enact extra policies that ensure the capacity of technical and vocational training is expanded, by incorporation of the private sector coupled with promotion of academia and industry interaction, in the endeavor to ensure that, the gaps that may exist between skilled labor demand and supply is magnificently narrowed. Policy tools Policy tools are essentially engineered to serve as a variety of various evaluation approaches often applicable in the broadest probable application. The main objective of putting in place tools for policy evaluations is to derive the fundamental foundation of basing possible reforms on the proposed policy. In education policies formulation and implementation, there exist several reasons as to why policy tools need being set in place. One of the reasons is â€Å"to assess the nature and magnitude of the opportunities and constraints that face the systems that provide education and training† (Fetterman 18). Secondly, policy tools enable both private sector and the government to establish priorities in the allocation of resources for implementation of resource-constrained policies that are of national interest. This reason is enormously crucial while determining the capacity of likelihood of success of a policy seeking to make technical and vocational training mandatory and part of educati onal curriculum in the U.S. This move is particularly significant, since as argued before, for success of such a policy there needs to be heavy channeling of resources to according temporary assistance to needy families. Upon identification of the constraints, mechanisms of dealing with the constraints are enacted, and hence providing the basis for weighing possible options. Tools and instruments essential for implementation of the policy, stated herein as, â€Å"every person shall undergo mandatory technical vocational and training program as part of her or his qualification requirement†, must have cost elements ingrained in them. This means that justification of costs for running such a policy in relation to the anticipated economic gain is relevant. Therefore, in this context, policy tools are indeed not only mechanism of reflecting outcomes of a given policy, but also a way of providing informed guidance in an attempt of categorization of a policy as relevance or irreleva nt both in public and private domains. Bearing in mind the cumbersome process of making policies in the U.S., providing the platforms of classification of the policy this way, may provide a more competitive edge for resulting in the consideration of the proposed policy in the agenda. Apparently, if the policy is not included in the agenda, it cannot proceed to the next phases before it is approved. In attempting to push for the implementation of the policy, desirability and affordability are somewhat critical elements for consideration. The argument for desirability is that, technical and vocational training follows systematic procedures, just like any other form of education, and thus it could have myriads of benefits and desirable effects. Reforms in polices are intended to ensure improvement of outcomes from the contexts of quality and quantity of outcomes. Data providing evidence of investments, in technical and vocational training capacity to result in enhanced economic growth and increment, in employment rates could, in this end, support the desirability of making technical and vocational training mandatory. However, as previously argued, this endeavor would call for substantive government funding. Ideally then, pegged on the need to contemplate on the aspects of opportunity cost incurred if the policy is negated from inclusion in the agenda often would provide a coercive force to the policymakers who are mindful to the welfare of the society especially while choosing between beneficial and most beneficial policies for inclusion in the agenda. On the other hand, consideration of costs as a critical tool for ensuring successful implementation calls for taking into account valid dimensions of costs attributed to making technical and vocational training mandatory. These costs are either direct costs, for example, payments of salaries of technical and vocational trainers and teachers, and the costs of financing temporary assistance to needy families’ kitty or indirect costs. Indirect costs would entail aspects, such as costs for failing to provide financial incentives to needy families and or reduction in total payments payable at technical and vocational training institutions, as reflected in the in economic indicators, such as levels of unemployment and living standards of people. More importantly, analysis of costs needs to go beyond financial costs and involve political and social capital, among others. Consideration of costs as a tool for promoting the relevance of the policy, arguably entails putting policies makers in conditions of substantive evaluations and considerations of various possible policies for inclusion in the agenda which if not addressed would translate into increased indirect cost in future. This means then that the policy tool relies heavily on information availability and persuasions. Assessment of likelihood of incorporation of the policy in the agenda Getting an issue into a plan is one of the essentia l steps in policy development to address certain perceived social problems. This implies that unless an issue appears on an agenda, addressing it in a policy becomes a nightmare (Birkland 59). In fact, a lot of research has been done, by scholars, to determine the processes of getting issues into an agenda, coupled with issues that make an agenda and when such issues deserve to form part of an agenda. Despite the fact that numerous conditions that impair people’s abilities to contextualize issues relating to justice and fairness exist, evidently, not every condition is a problem requiring government interventions through policies. Unemployment is indeed a social challenge not only in the U.S. but also across the globe. Particularly, during recession, organizations prefer retaining workers who are highly productive to have high levels of output, while ensuring that cost of production is maintained as low as possible. With the conceptualization of this economic argument, and wi th justification of the fact that unemployment constitutes a social problem and that vocational training and education may increase chances of job selection coupled with hiking economic growth, getting the policy into an agenda is widely possible. However, challenges may be encountered, especially considering the cumbersomeness of policymaking process of the U.S. This aspect is perhaps significant by considering that, in some situation, some issues are considered as issues, while others are treated as non-issues, and hence hardly make it to the agenda list. Some issues are more likely to get into the agenda than others are. Among the reasons, why some issues do not make it to the agenda level includes problem definition, crowding an issue with other issues; the problem may be an illegitimate concern of the state, non-decision making and issues irrelevancy. The seriousness of issues is expressed in their definition. Poorly defined problems would consequently end up neglected in the a gendas. However, even though the problem may have been defied properly, its concerns may be irreverent to the state. However, it is anticipated that in the attempt to make vocational education and training mandatory in the U.S., the link between it and increased productivity indeed would make the policy being considered as an issue. Perhaps, by considering the concept of non-decision-making issues raised by a Bachrach and Baratz, it is apparent why some issues end up as being agendas while others do not. As Bachrach and Baratz reckon, â€Å"non-decision making in a power context is based on the presumption that political consensus is commonly shaped by status quo defenders, exercising their power resources and operated to prevent challenges to their values and interests† (901). A social condition, which attracts keen interests from the wider society, constitute a social problem, which needs solution often arrived at, after the issue of concern is incorporated in a public agen da. However, some issues that attract immense public interest are non-issues, perhaps because the concerned population may lack the ability to site solution as they may lack the power to do so (Birkland 87). Even if solutions are available, they may largely violate the interests and the status quo of those influential figures that would set the mechanisms of enabling the incorporation of the issue into an agenda. This implies that, though a social condition may be an agenda issue, the larger population may be forced to embrace it as part of their lives since they are incapacitated to push for likely solutions to it. A fear is also expressed that, the concerns of vocational training and fostering placement of fresh graduates may be treated as non-issues, and thus produce an impediment for the policy being incorporated in the agenda. Several reasons would account for this fear. In the debate of whether it is relevant making vocational education and training mandatory or not, it is ant icipated it would derive many disagreements among policymakers especially considering the hefty costs that go into it in terms of provision of temporary assistance to the needy families to meet its costs, and this scenario breeds fear. However, taking a condition entailing â€Å"actual disagreements in preferences among two or more groups† (Bachrach and Baratz 904) as comprising an issue is confusing. The question is, even if disagreements exist, do they attract the attention of the wider society. If so, does the wider society have the power to solicit suggested solution? In addition, if so, is the power limited to the extent that it does not violate the status quo of those in power? Any precondition for compliance with the two queries may make an issue end up being a non-issue and in the context of making vocational training and education mandatory, hinder it from getting into the agenda. Conclusion In the paper, it has been argued that employment and job training programs a re a valuable tool for ensuring organizations and even nations at large gain in terms of increased workers’ productivity. Research proves that employment and job-training program raises the probabilities of job recruitments among people. Investment in technical and vocational training is arguably one of the ways of enhancing employment and job training programs in the U.S. From this assertion; the paper proposes that in the U.S., a policy that makes technical and vocational training mandatory needs to be enacted. However, the success, of putting such a policy into an agenda, is challenging, considering the cumbersomeness of the policymaking process in the U.S. Hence, substantive tools need to be put in place, for ensuring that the proposed policy gets into an agenda. Apart from clear and concise problem definition in a manner that it amounts to a social problem and hence worth public attention, consideration of elements such as cost and benefit of making technical and vocatio nal training mandatory may indeed play a crucial role in facilitating articulation of the policy into the agenda. For these reasons, the paper has paid incredible attention in problem definition, goal setting, and the examination of policy tools by assuming the position of an external policy analyst. Works Cited Bachrach, Peter, and Morton Baratz. â€Å"Power And Its Two Faces Revisited: Reply To Geoffrey Debman.† American Political Science Review 69.3 (1975): 892-904. Print. Birkland, Thomas. After Disaster: Agenda Setting, Public Policy, And Focusing Events. Washington, DC: Georgetown University Press, 2008. Print. Conger, Stuart. Policies Guidelines for Educational and Vocational Training. Paris: UNESCO, 2006. Print. Fetterman, Martins. Foundations of Empowerment Evaluation. Thousand Oaks: Sage Publications, 2000. Print. Friedlander, Douglas, and Paul Robbins. Evaluating Program Evaluations: New Evidence on Commonly Used Non-Experimental Methods. American Economic Review 8 5.4 (1995): 923–937. Print. Heckman, Johnston, Duncan Lalonde, and James Smith. The Economics and Econometrics of Active Labor Market. Amsterdam: North Holland, 1999. Print. This critical writing on Policy Setting in Job Training Programs was written and submitted by user Nathalie Hawkins to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Research Essay Example

Research Essay Example Research Essay Research Essay We want to thank Symbiosis Institute of Management Studies for giving us permission to commence this research in the first instance, to do the accessory research work and to use institute library. Furthermore, we thank our respondents who contributed their valuable information without which this research would never have been successful. We are deeply indebted to our teacher and mentor Proof. Ash Engender without whose help, stimulating suggestions and encouragement, we would never have been able to complete our research and the writing of this paper. Lastly, we would like to give our special thanks to our friends and supporters whose patient co-operation enabled us to complete this work. Sir. NO. Chapter Page no. Introduction 7 2. Review of literature 8 3. Methodology 9 4. Results and Analysis 10-18 5. Summary 19-20 6. Conclusions 21 7. Bibliography 8. Appendix 23-26 LIST OF TABLES Particular Page No. Table 1: Demographic profile of the respondents Table 2: Indicators for identification of a pirated product Table 3: Frequency of purchasing pirated products Table 4: Durability of pirated products Table 5: Criterion rating for purchasing pirated products Table 6: Mode of purchasing pirated products Tablet: Category of pirated products purchased Table 8: Comparison of pirated products with authentic products in terms of durability 9. Table 9: Impact of advancement of technology on the demand for pirated products 10. Table 10: Criterion ratings for not purchasing pirated products 11. Table 1 1: Impact of age on the buying behavior for pirated products 12. Table 12: Implications of using pirated products on the respective industry 13. Table 13: Identification of risks for unfair or deceptive acts in its product lines Table 14: Role of compliance function in identifying and mitigating overall compliance risks of the products in case of pirated products 15. Table 1 5: Need for a mechanism setup to help detect potentially unfair or deceptive raciest LIST OF FIGURES Sir . NO Figure Name Figure 1: Criterion for purchasing pirated products Figure 2: Category of pirated product purchased Figure 3: Criterion for not purchasing pirated products Figure 4: Impact of age on the buying behavior for pirated products ABSTRACT Non-deceptive pirated products have taken over a large share of the market and hence have become a major cause of concern in recent times. A study was conducted to find out the number of people who partake in non-deceptive piracy and the reasons behind their usage. The study was done based on data collected from 100 exponents from the city of Pun who were mostly students, working professionals and housewives aged 18 years to 50 years. The questionnaire sought their responses regarding the buying behavior of customers towards pirated products and the factors influencing buying decisions. It was found that 72 percent of the respondents and 65 percent agreed that after a certain age people prefer not to buy pirated products, specially clothes, shoes and accessories. This study benefits the manufacturers of authentic products to understand the mind-set of the consumers to decide their target market. Keywords: Non-Deceptive Pirated Products, Buying Behavior, Price Factor, Age Factor Chapter 1 Non-deceptive pirated products are reproductions of trademarked brands which are closely identical or similar to the genuine articles. This includes packaging, labeling and trademarks that facilitate the product to be passed off internationally as the original product. When customers are aware of the nature of the product and they still go and buy it, this is known as non-deceptive piracy. Non-deceptive piracy is used mainly to influence customers to buy the pirated products at a cheaper price and at a better rate than the market offers. Objectives . To find out the number of people who partake in non-deceptive piracy. 2. To find out the reasons behind the usage of non-deceptive pirated products. Limitations 1. Study limited to the city of Pun. 2. Non-disclosure of information which may mislead our statistics. Review of Literature In 2008, Seabird Raman, Seasonal Huge and Maybug Raman conducted a study on purchasing behaves of pirated products. The purpose of this study was to explore the factors influencing the Bangladesh consumers perception towards purchasing pirated products. To explore these factors, this study had conducted a survey among the Bangladesh consumers. The data analysis was conducted through exploratory factor analysis, confirmatory factor analysis and structural equation modeling to test the hypotheses. Among the four variables, individual personalities and economic conditions are the most significant followed by social influences and pricing of pirated products. The outcome of this research showed a comprehensively integrated framework for policy maker and business enterprise to understand the dynamic relationships among dimensions of social influence, pricing, economy, and personality to understand the consumers perception toward purchasing pirated products. In 2010, Cook, Yum Fun conducted a study on the Buyers perceptions of pirated products in Malaysia. The purpose of this study was to investigate the buyers attitude and behavior with respect to pirated products in Malaysia, and to present findings potentially applicable for the purpose of planning and implementing effective marketing strategies to counteract the ever growing competitive threat facing multinational entrants to the Malaysia market. Respondents were classified as heavy and light buyers of pirated products based on the criteria derived from the focus group and survey findings. Buyers who were private sector employees were ore likely to be light buyers of other pirated products. The quota control was made on the ethnic groups percentages to represent the ethnic group perception on pirated products. However, convenience sampling limited the respondents locations, education level and occupation variety. The findings identified several crucial points as inputs to original brand marketers in planning and implementing marketing strategies. Research Methodology Selection of Topic The topic selected for this study is the Comparative study of the opinions or preferences of different age groups regarding non-deceptive pirated products. The primary source of information was from current and potential applicants obtained from a structured questionnaire. Sample technique and size The respondents in respect to current and potential applicants had been picked on the basis of random convenience sampling. The sample size of this study was 100 for current and potential applicants combined. These samples were selected from the city of Pun. Pilot study To test the feasibility of the data tool collection, a pilot study was conducted on 10 respondents. A questionnaire of 10 questions was made and filled by the respondents. The response received was collected and study was done to find out the initial findings. Hypothesis Based on the result of the pilot study, the following hypothesis was formulated:- 1 . Price is the key factor which influences people to buy pirated products. 2. Age has an impact on consumers preference to buy pirated products especially clothes, shoes and accessories. Data collection Primary data Actual collection of data from applicants was done by way of a Google doc in the form of an online questionnaire that was sent to the respondents which they then filled and their responses were recorded and the data was compiled. Secondary data Secondary data was not used for interpretation of data. Analysis of Data The data collected has been presented in the form of tables and figures in Chapter 4- Results.

Get your marketing ready for 2019 with these trends

Get your marketing ready for 2019 with these trends Marketing has existed in one form or another since the dawn of capitalism itself. And it’ll exist as long as there are products and services for sale. That said, it does evolve and adapt to the world around it. Billboards and signage were followed by radio ads, which led to television spots, and finally, to the digital marketing we see today. The ad men of the 50s and 60s might not recognize the form, but the goal remains the same: right product, right person, right time. Marketing is nothing if not able to go with the flow. So what’s next for it as we enter 2019? Here are three trends to keep an eye on in the coming year. 2019 Templates to get Organized Before we dig into trends, download these 2019 tools to get organized in the new year. Youll get: Marketing Plan Outline Template (Word): Document your entire 2019 marketing plan. Marketing Strategy Template (Excel): Plan every part of your strategy. Content Marketing Strategy Template (PowerPoint): Plan  tactics  and  channels  to complement your strategy. Email Marketing Strategy Template (PowerPoint): Email is a big part of marketing in 2019; use this template to get it right. Social Media Strategy Template (PowerPoint): Start the year off right with a clear social media roadmap. Audience Persona Template (Word): Finally get all your user personas on track for the year. Marketing Budget Template (Excel):   New year, new budget! The Arrival of Voice Search Voice search is taking over in a big, big way, and there’s no reason to believe it’ll slow down anytime soon. Popular digital assistants like Siri, Cortana, and Google Assistant have fundamentally changed the way we interact with our mobile devices, to say nothing of how we search and consume information. Then, of course, we also have the prevalence of smart speaker systems like Amazon’s Echo, Google’s Home, and Apple’s Homepod. It’s no stretch to think that we may say ‘goodbye’ to manual data entry entirely in the not-too-distant future. Consider: Half of all online searches will be conducted via voice by 2020 Gartner predicts that nearly one-third of searches will be conducted without a screen  by the same year Nearly 40% of adults use voice search  at least once each day Voice shopping accounted for roughly $1.8 billion in 2017, but will reach $40+ billion by 2022 U.S. voice-enabled digital assistant users are growing by leaps and bounds, and are expected to top 39 million millennials, 17 million Gen Xers, and 10 million baby boomers  by 2019 Image Source The writing is on the wall, or more accurately, being spoken aloud: voice search is here to stay. What does that mean for you and your marketing? Plenty. Kenneth Burke, Marketing Director at Text Request, says that â€Å"Google and other search engines have already been tailoring search results to match speech, meaning conversational writing and SEO is increasingly more effective than keyword-targeted writing.† Consider your own interaction with Google or Siri for a moment. We don’t ask for information the same way we would type it, opting to say ‘Hey Siri, where’s the nearest coffee shop?’ whereas we might have typed ‘coffee shops Seattle’. That switch in tone and structure needs to be reflected in your marketing copy. It’ll need to be written conversationally so the voice-enabled assistants can read it aloud and present results the way people talk. Furthermore, Burke believes there will be â€Å"a continual focus on search intent  rather than word choice, and my bet is this will play an even more significant role in 2019.† What do people want, and how do they ask for it?

News Literacy Research Paper Example | Topics and Well Written Essays - 1500 words

News Literacy - Research Paper Example Obviously, these distinct categories all set out with a different purpose, and if one is not careful, he or she will be caught in the Net of deception and fall prey to manipulative tactics that vie to gain one’s allegiance or financial support. In order to demonstrate this modern-day dilemma, three apparent news articles will be examined to see if they pass the test as being news ? or drift into another neighborhood. The three stories ? one about an up-and-coming hypnotist weight-loss doctor, another about a new canned chicken product fighting food poisoning, and the last about a dog strangely contracting a horse disease – all have the initial presentations of legitimate news stories, but once one digs deeper and measures them with the tools of a savvy journalist, only one comes out passing for authentic news. Because news today covers such a wide range of topics, it is often easy for some articles to blur the lines as to what information neighborhood one is actually in , but fortunately, the discerning reader can always fall back on a GPS system, if you will, to find out where one really is. Let us begin with an article titled â€Å"You’re getting sleepy†¦ and thinner†¦Ã¢â‚¬  out of Toowoomba’s Style Magazine. ... After diligently trying to disarm readers from believing that she is trying to promote the hypnotist, Tony Kyprios, she spends the entire article lauding the advancement and success of the lap-band surgery procedure, while commending the innovator’s heart to help others. This presentation immediately shoots up red flags for the cautious reader, and the story content, which only divulges the positive side of the procedure, makes one even more wary of the author’s intent. The slant, or story angle, definitely pushes the reader into embracing the hypnotist as an ambitious and benevolent out-of-the-box thinker whose medical practice is worthy of the readers’ support. After all is said and done, one remains skeptical as to whether this piece was set out to merely inform the audience, as a genuine news story should. One reason is that it lacks verification, as there are no reported studies proving the procedure’s success ? only unverified percentages of supposed success rates from abroad. With regards to independence, one cannot draw any apparent ties between the magazine and the practitioner, but a skeptic may argue that Kyprios either had a friendly contact at the magazine, or gave it some incentive to publicize his efforts. In lieu of accountability, the journalist has the credentials of a credible member of the media, but because of the one-sided reporting on the hypnotist and procedure – not mentioning any drawbacks, apprehensions, or failures – the reporting has all the signs of being biased. When walking past the six different information neighborhoods, one would clearly bypass putting this story in the â€Å"news† locale, but rather the â€Å"publicity† zone, as its intent is to enhance an image, rather than to inform; its client is a personality

Civil War Battles Essay Example | Topics and Well Written Essays - 250 words

Civil War Battles - Essay Example The confederacy was forced to defend with limited resources, which was a subjected to union thrust along multiple avenues approach. The pacific Coast Theater was known to be the military operation in the United States around the Pacific Ocean. The department of the pacific, which include the states of Nevada, California, Washington, and Oregon territory, encompassed this theater. Operations directed against Confederate irregulars in California were placed in Southern California, and New Mexico territory to control the region, which had strong secessionists’ sympathies. The battles were organized in geographical presence of Mountainous terrain. This increased the chance of conflict as they offered terrain where rebels can seek sanctuary. A high production of primary commodities in various states increased national exports significantly increasing the risk of conflict and thus contributing to financing of the civil war. The time between the civil battles and the war gave room for a conflict to recur and significantly increased the opportunity cost of restarting the

Gender Role and Sexuality Essay Example for Free

Gender Role and Sexuality Essay I can fortunately and happily say that I personally have not experienced unequal treatment in regards to my chosen career, educational path or previously held jobs. What I do still see currently being stereotyped are gender roles and the way they are allowed or not allowed to sexually express themselves in the public eye. From my experience it is more acceptable for men to compose music about sex, be in main stream media selling sex, have successful careers in sex, and everyday unequal expectations in dating, sex and relationships. Men have more sexual freedom in the world today. Men are encouraged and in most cases applauded on the discussion of how many partners they have had in the past and the specifics of each experience, yet woman are still expected to hide their sex from the world in fear of ridicule and isolation. In our society today woman who are overly sexual or dress in form fitting clothes or lack thereof are automatically stereotyped as the promiscuous type. Why the double standard? I don’t agree at all with displaying private sexual acts to the general public to gain fame and wealth and in by doing such corrupting children and destroying the beauty of sex but I don’t believe that we should have to hide that women are as much sexual beings equally as men. I feel religion and culture play major roles in the history of sexual repression of woman. Even dating back to the Puritan who believed that anything resulting in pleasure was a sin, women’s freedom to express their sexuality has been suppressed in fear of domination because we are just as powerful as men. Growing up in a strict catholic home I was always taught to act like a lady in public. Exactly what was meant by that I wasn’t fully sure but I knew its underlying symbolism was repressing my sexuality. I wasn’t allowed to wear spaghetti straps, mid drift shirts, shorts above my knees, or make up till I was 18 years old. Sex was not spoken of in my household at all, and if it happened to be seen in a movie or on television I was instructed to cover my eyes because sex was forbidden. Being a sexy woman was seen as vulgar. If I had male friends I could not talk on the phone with them or play outside of school with them without a parent or chaperone. On that contrary my younger brother was encouraged to dress well, wear cologne and have many female friends. It was a symbol of popularity. In my father’s Hispanic culture the young men were pampered and treated as kings with double standards. The women were there to serve them. We are not allowed to be sexy or let alone discuss sex in anyway shape or form. As an adult now I can understand why I completely rebelled against the stereotypes created by my religion and culture. It’s not fair to make women feel less than human than men. We are sexual creatures who share the same desires and needs. I now embrace my sexuality. I’m not afraid to be who I am, and say how I feel. Being a single mother in society today puts me in another stereotype as well. Having a child out of wedlock is still looked down upon, and more so with the mother. We are labeled as â€Å"promiscuous†, â€Å"unholy†, and â€Å"irresponsible†, but to me I loved a man for 8 years and wanted to create a life with him. Unfortunately the abuse I endured was too great to allow after the child was born, so I chose to leave. On the other hand the single father is praised and labeled as â€Å"hard working†, and â€Å"honorable†. In news and media woman are portrayed as sex objects in order to entice society. It draws women in because they either want to be like them or look like them and it draws men in because they love the visual stimulation. Sexuality is used as a shock value for ratings. Are sexy woman who love their bodies and the way it makes them feel really that shocking? Instead of conditioning our young woman to hide their sexuality we should be teaching them healthy ways to explore and express their human desires of sexuality in a safe, healthy way.

Hong Kong must move with the times by making itself an efficient :: Economics

Hong Kong must move with the times by making itself an efficient platform for Mainland financial intermediation. A number of journalists with specialised interests in financial developments in Hong Kong asked for my interpretation of the "move with the times" speech delivered by the Governor of the People's Bank of China, Zhou Xiaochuan at the Annual Dinner of the Hong Kong Association of Banks on 30 September 2005. The "move with the times" comment was made by Governor Zhou in relation to maintaining the status of Hong Kong as an international financial centre. We should of course all move with the times and be alert to changes taking place around us if we do not wish to be left behind. This comment has a universal application and is particularly important when times are changing rapidly. Those with the ability to anticipate changes and prepare for them stand a much higher chance of success. Those that carry on doing the same things in the same old way will simply be left behind. This is the reality. I obviously do not wish to quote others out of context or to put words in others' mouths, just as I do not wish anybody to do the same to me. But Governor Zhou delivered an important speech on a matter of great importance to Hong Kong - so important that it merited special reference in Article 109 of the Basic Law - the maintenance of the status of Hong Kong as an international financial centre. And the HKMA does have certain indirect responsibilities for this subject, derived from the Financial Secretary's authority in the Exchange Fund Ordinance to use the Exchange Fund, with a view to maintaining Hong Kong as an international financial centre, to maintain the stability and the integrity of the monetary and financial systems of Hong Kong. So, for what it is worth, I will make an exception to my usual practice and offer my (undoubtedly subjective and possibly biased) interpretation. Since I don't speak from a position of authority, my comments will concentrate more on how times are changing and less on how we in Hong Kong should move with them. Governor Zhou made it abundantly clear that, in terms of the financial environment in which Hong Kong operates, times are changing and changing fast. He made six important points. First, the savings rate on the Mainland is high by international standards and increasing, in contrast to a zero savings rate in the United States. I take this to mean that there is an exceedingly large amount (relative to GDP) of domestic savings on the Mainland to be mobilised and channelled into

Cupcake Bouquet Marketing Plan Essay

Mission Cupcake Delight is dedicated to serve the market with its supreme and delightful varieties of cupcakes, pastries, and cakes featuring the Mindanao’s own fruit crops that will surely fit the palates and pockets of Filipinos. Vision Cupcake Delight, as a prime source of quality cupcakes in Davao City, envisions to continually serve the market with its finest products with virtuous customer service. It will strive to apply the total quality management in whole aspects of the organization in order to achieve the highest standards and expectations of the clienteles. Furthermore, Cupcake Delight will venture the desserts industry in the whole Philippines with its mission of delivering palatable and affordable products. Values Cupcake Delight is also designed to improve and enhance the values rooted from its creation. It believes that these values will be an essential part of its success. These include the areas of organization, human, society, economy, and politics. Organizational Values * Total quality management * Continuous innovation of the products * Integrity and priority of work and performance * Teamwork * Proper orientation to the customers Human Values * Safety and honesty of the workers * Freedom for initiative of employees * Development of skills of the bakers and employees * Career growth * Resourcefulness in every situation Social Values * Corporate social responsibility * Think green, do green * Respect for cultural diversity, minorities, and majorities Economic Values * Responsive to the trends in the economy * Harmony in the allocation of all forms of resources Political Values * Adherence of laws and policies * Appropriate use of freedom of expression * Advocate for peace and order Goals Cupcake Delight intends to be in the right direction and to keep on the right track. To accomplish this, it furnishes its goals for the company. * To introduce an innovation of cupcakes to the market and to advertise them effectively * To establish a connection, value, and loyalty to the customers * To promote the cupcake bouquet, Boucake, as one of the best gifts for any occasions II. TARGET MARKET The target market of Cupcake Delight feature product, Boucake, is the male. A total of 76% are willing to spend their money compared to the female with the total of 75%. There is a very little difference but it is great to target the males since they are the most appropriate customers who will spend their money to buy present for their significant others. Boucake is a supreme and delightful gift in this kind of romantic relationship. In addition, Boucake is not just limited as a gift for sweethearts but can also be a present for people celebrating special events in their lives. It is best for individuals celebrating their birthdays, commemorating their anniversaries, rejoicing their graduation, remembering special days like teacher, mother and father’s day, children’s party and among others. These occasions somewhat require gifts; the 75% female can be the customers for these. III. MARKETING NEEDS OR TRENDS The cupcake bouquet, Boucake, has a 79% demand in the market. The percentage of demand is based on the survey question whether the respondents are willing to spend their money to purchase the product. Out the 200 respondents, 158 answered yes. This demand can give anticipation that the product will be likely accepted by the market when introduced. A 79% is a good figure to start presenting a product that is something new to the market. Almost three fourths are willing to buy though roughly 47.5% have already seen a product in resemblance to the Boucake. Cupcakes are no longer different and new in the eyes and tastes of the customers but Boucake which is innovated from this common product has still a demand in the market. It can be furtherly explained because 81% is fond of eating sweets. Therefore, when Boucake is strategically introduced and advertised, the 79% market demand can equal the 81% of people who like sweets. Cupcake Stores are growing in the Davao Region. Recently, the Jonathan’s Cupcakery which has a shop at Arellano Street had its branch in the SM Lanang Premier where more people can notice its cupcakes. Sweet Aroma Bakeshoppe is also keep on expanding its branches at cities outside Davao. A group of students also entered the cupcake business just this year. It is evident that there is a trend in cupcake business. The challenge is how to make the product attractive and unique from others. These cupcake stores offer varieties of flavors and customization of designs. However, Boucake differentiates from these because of its feature and physique. This keeps up the Boucake with the current trend in the market. In addition, Boucake is not just for satisfying hunger but can also be a present for loved ones especially during special occasions. 93.5% stated that Boucake is a good gift for those special events. IV. SWOT ANALYSIS WEAKNESSES * new to the market, thus risky * no loyal customers yet * expensive compared to just buying a single cupcake * several competitors * short shelf life WEAKNESSES * new to the market, thus risky * no loyal customers yet * expensive compared to just buying a single cupcake * several competitors * short shelf life STRENGTHS * product’s newness and uniqueness * originality * best for gift-giving * suited alternative for flower bouquets * attractive and satisfying * large target market (teenagers, young adults, more in a romantic relationship at a very young age) * high-technology advertisements STRENGTHS * product’s newness and uniqueness * originality * best for gift-giving * suited alternative for flower bouquets * attractive and satisfying * large target market (teenagers, young adults, more in a romantic relationship at a very young age) * high-technology advertisements OPPORTUNITIES * expansion of branch and of products * more innovative products * partnership with related or substitute products OPPORTUNITIES * expansion of branch and of products * more innovative products * partnership with related or substitute products THREATS * famous or branded competitors might copy or imitate the product * failure or loss * overestimation of market demand THREATS * famous or branded competitors might copy or imitate the product * failure or loss * overestimation of market demand V. COMPETITION COMPETITIVE PROFILE MATRIX DIRECT COMPETITORS A. JONATHAN’S CUPCAKERY Product Jonathan’s Cupcakery offers different flavors of cupcakes from vanilla, chocolate, carrot, tiramisu, coffee, mocha, coconut mango, gingerose to pistachio. It also has various macarons, chip cookies, and curried chocolate and toasted coconut ice cream Place Jonathan’s Cupcakery has a shop located at Arellano Street. Customers can dine in to eat its cupcakes and other pastries. It also has a branch in the SM Lanang Premier where more people will be able to see its products. Promotion Jonathan’s Cupcakery promotes its product through Facebook page, uploading its menu, current and new products. It also joined in Davao Gourment Collective where it can expose its products to other class of market. It also offers customized cupcakes during Mother’s Day, Valentines, and other special occasions. Price The price of its cupcakes is quite expensive because of the special ingredients it incorporates to make the cupcakes more varied and special. Strengths It has a branch inside a mall; thus attracting more customers. It offers many variants of cupcakes which are not that known to the market making them interesting. Customization of its products is also being offered. Weaknesses It has strong competitors which are more famous and well known than them. Some of its products’ design is plain. B. SWEET AROMA BAKESHOPPE Product Sweet Aroma Bakeshoppe offers cupcakes with very cute and attractive designs and cakes with intricate and delicious appearance. Place Sweet Aroma Bakeshoppe has a main branch at Pichon Street fronting the Grand Men Seng Hotel where customers hotel can see its products. It has branches fronting San Pedro Hospital, Gaisano Mall, Gaisano Grand Mall of Tagum, and NCCC Mall of Tagum where are outside the region of Davao. Promotion It is promoting its products through its own website and own page at Facebook reaching people through online. Price The cupcake costs at P49 is quite expensive but reasonable since its design is so pleasing to the eyes as well as to the palate of the customers. The cakes are really expensive starting at P500 which are quite small in size. It also offers 7 cupcakes for P250. Strengths It has many branches where people can conveniently purchase its products not just in Davao Region. It is starting to expand and to make a name in the cupcake industry. The products are so good both in the eyes and tongues which encourage and motivate customers for buying them. Weaknesses Products are quite expensive which hesitate the customers from buying it. It is just starting thus competitors can still be the first choice of the customers. Its branch in Gaisano Mall does not have any flyers which might give extra information to the customers especially those who are interested to buy its products for special occasions. C. ROYAL BITES Product Royal Bites is offering flavors of cupcakes with very colorful designs. It also offers butter scotch, cookies, pastries, and customized cakes. Place Royal Bites is situated in Juna Subdivision, Matina, Davao City. Promotion Royal Bites promotes its products through Facebook, pictures, and word of mouth from the owners’ friends and customers. Price The price is reasonable for it meets the quality expected by the customers. Strengths Royal Bites doesn’t limit its products to cupcakes but also offer variants of cakes and pastries. The products are also appealing. Weaknesses The business is new to the market thus not all people know or notice its products. Competition can also be a hindrance for catering more people. INDIRECT COMPETITORS A. GOLDILOCKS Product Goldilocks offers cakes and rolls for birthdays, and any celebrations and occasions with different flavors and decorations. It also has cake which the customers can decorate with their own designs and likes. Pastries and pies are also available in its stores like mamon, hopia, egg pies, tarts, and macaroons. Goldilocks also has sweets like crinkles, cookies, pastillas, candies, chocolate bouquets and lollipops, polvoron, and popcorn. It also offers sarapinoy meals, pinoydeli, side dishes, and thirst quenchers. Place Goldilocks has numerous branches – stalls and shops inside and outside the malls. Its branches are scattered all over the islands of the Philippines. People can visibly see its goods almost everywhere; thus they are more encouraged to buy it. Promotion One of the most effective ways to promote Goldilocks products is to advertise it in national television since everyone has a chance of knowing their product offers both the new and old ones. It also uses high-end endorsers like Kris Aquino, Judy Ann Santos, and Dingdong Dantes. It also promotes its products particularly cakes through its program – decorate your own cake. Goldilocks goes green. It states, â€Å"Help us save the Earth by getting and bringing the Goldilocks brown bag whenever you buy their favorite Goldilocks products.† It also has discounts. Price Based on Mark Striving, Goldilocks uses Good-Better-Best. It is an intelligent pricing tactic that every firm should consider; it’s an extension of versioning that takes advantage of customers’ psychological make-up. People who are unsure what they want will usually buy the middle, or â€Å"Better† choice out of Good-Better-Best. Go back and read that sentence again: People who are unsure what they want will usually buy the middle or â€Å"Better† choice out of Good-Better-Best. So providing a middle choice is the crux of the good, better, best tactic. It has been shown that customers avoid â€Å"Best† because they are afraid of paying too much; it also shows that they are even more afraid of â€Å"Good† (the lowest choice) because they are afraid to purchase the lowest quality, and it may make them look cheap. So, when uncertain, they buy â€Å"Better†. This means, if company currently have two versions of offering, company should seriously consider adding a third with more features at a higher price (and feature level). This action will likely sway any of customers who were stuck between buying â€Å"Good† (the lowest) and â€Å"Better† (the middle), to choose â€Å"Better†. Companies will also likely sell some â€Å"Best† and at much higher profit than your other offerings. Overall, simply adding a â€Å"Better† option puts more profit dollars in pocket. Strengths Goldilocks has already established its name in the Philippines. It will be one in the options in every Filipinos when choosing cakes and pastries. It is well known and famous. The quality of its products especially the cakes is one of its edges. It has already been in the food industry for a long time; therefore it has the proper know-how and strategies to pursue whenever it can encounter problems and competitions. Weaknesses Health conscious individuals are quite a trend in the food industry. More people are watching their diet and how much calories and sugar they are in taking. Goldilocks uses sugar as its prime ingredient which might lead these individuals to avoid its products. Competition is always in the market. B. MERCO Product Merco offers various kinds and flavors pastries and cakes. It also has coolers like halo-halo and shakes. It also patronizes home-cooked Pinoy dishes and short-orders such as French fries and sandwiches. Place Merco already had 35 branches in Davao Region which are mostly take-out counters and a few are for dining particularly in Quirino branch. Its branches located almost everywhere make its products more visible and available to the market. Promotion Merco promotes its products through social media particularly through Facebook and its own company website. It also advertises through large tarpaulins stating their new offers, promotions, and activities. Word of mouth from the customers also promotes Merco products. Price The prices of Merco’s products are affordable to the market. It has a notion of pangmasa. A whole cake is priced at a minimum of P200, cake rolls at P150, coolers at P40, and the Pinoy meals at P50. Strengths Merco already established well its name in the market especially in Davao Region. It has been reputable because of its credibility in serving quality cakes for more than 60 years that are affordable and reasonable. Its branches are located strategically where the public can see its products. Weaknesses Since Merco is in the business for more than 60 years, customers has a thinking that it is already old and want to try new and fresh branded products. It is not appealing to the higher class because it is pangmasa; and it does not have systematic promotions of serving upper class. Most of its branches are take-out counters so some customers are hesitant to buy its products and will instead go to other bakeshops where they can have stay while eating. Merco is not also expanding its product line outside Davao. C. RED RIBBON Product Cakes, rolls, pastries, and meals are the products of Red Ribbon. Cakes and rolls are of different flavor and variants but mostly of chocolate. Pastries consist of different flavors of mamon, different slices of marble cake, varried numbers of polvoron, empanada, and pastillas de leche. Red Ribbon also serves spaghetti, carbonara, and palabok good for parties. Place Red Ribbon has different branches here in Davao, all inside the malls of Abreeza, Victoria Plaza, Gaisano, SM, and NCCC. It has stalls and stores all over the Philippines. People can recognize its products because it is placed in public places. Promotion Red Ribbon advertises its products in the television where everyone can know and interest its products. It has a promotional activity but 9 butter mamon, get 1 free. This kind of promo is also available in ensaymada, yummy cheese roll, marble slices, and other mamon variants. It also offers customization of cakes. Price The price of Red Ribbon is usually expensive and caters upper class market. Strengths Red Ribbon is easy to locate for its many branches. It is very convenient for the customers because they can locate it anywhere. It also offers not only cakes and pastries but also meals such as pasta, spaghetti, and other rice meals. It lets customers customize their choice of cake. Weaknesses Red Ribbon doesn’t have much promotional activities and offers few flavors of cakes. It is likely limited to chocolate cakes. It has rice meals which are good but quite expensive. D. FUDGE FACTORY Product It offers cupcakes, brownies, chocolate bars, and pies. The box, the factory called it the Medley of Fun has 24 different kinds of brownies from dark to white chocolate, plain to frost topping with an assortment of nuts, liqueur, and even durian (what Davao city is known, for). Other than the brownies, it has an assortment of pastries like cheese sticks, trifle, cookies and biscotti. Place Fudge Factory is located at 2nd floor, Abreeza Mall, Davao. Promotion Fudge Factory has online pages in Facebook. It can promote products to large population of people through online. More people are hook in Facebook; thus more people will be able to know its products. There are also bloggers who promote their products as they posted positive comments about Fudge Factory. Furthermore, people can connect with its website for promotions. Price The price of Fudge Factory is affordable and reasonable. Strengths It has 24 varieties of brownies where the customers can have wide range of choices. Its location can cater different types of market or customers which can be its target marjet or potential customers. Products are good for any occasions and best for gift giving. Weaknesses Health conscious people will not likely patronize its products because they contain fat, calories, and sugar. Fudge factory also focuses on pastry sweets which make the customers thirsty and doesn’t offer any drinks. E. MARGIE’S BAKESHOP Product Margie’s Bakeshop offers cakes, pastries, cupcakes and full meals such as steaks and other Filipino dishes. It also offers sweets such as meringues and chocolate truffles. It offers desserts too like dulce de leche and a lot more. Its products are really top quality. Its food is great and it matches their pricing too. But all in all, customers can’t really judge them at price alone because its food is really good and very good to look at. It passed the two requirements of good food: looks good and tastes good. Place Margie’s Bakeshop has lots of branches all over Davao City at Ecoland, Matina, Fairlanes, Torres, Abreeza Mall of Davao, and at Buhangin. The branches are convenient and visible to the customers. Promotion It has online advertising through Facebook. There was a time Margie’s offered a buy 1 take 1 cake promotion. Price Prices are somewhat in the upper class range. Products prices are expensive. Their most affordable cake goes for P320 and it is only good for 2 persons. There are other cakes which cost for P320 – P700 and only good for 2 persons. Their chocolate truffles cost at P13 each. But of course, with price comes the quality of their product. It is really expensive there but it is worth every centavo customers pay for. Strengths Margie’s Bakeshop has different branches in Davao City making more customers able to see its products. The pastries and cakes are really quality products. Weaknesses Its pricing is expensive; thus there are limited customers who will be able to spend their money to buy its products. The promotional activities are not that evident. I. SERVICES AND BENEFITS HEALTH BENEFITS The fruits made of simple sugars like fructose and sucrose that when eaten replenish energy and revitalize the body instantly. It is rich in dietary fiber, which helps to protect the colon mucous membrane by decreasing exposure time and as well as binding to cancer-causing chemicals in the colon. It is a source of antioxidant vitamin-C. It helps the body develop resistance against infectious agents and scavenge harmful free radicals. It contains high levels of essential amino acid, tryptophan which in the body metabolizes into serotonin and melatonin in which theyraises serotonin levels that creates an over-all sense of well-being and aids in depression. Durian provides â€Å"more concentrated healthful energy in food form than any other product the world affords. Its high concentration of raw oleic fats (and vitamin E), sulphur compounds, and soft proteins. It increases energy, endurance, mental clarity, and cellular health, good for muscle building and organ function. It has anti-aging benefits including enhancing the appearance of your skin. Jackfruit is a good source of antioxidant vitamin-C, provides about 13.7 mg or 23% of RDA. It is a good source of potassium, magnesium, manganese, and iron. Potassium is an important component of cell and body fluids that helps controlling heart rate and blood pressure. It contains minerals like manganese which is needed in the body to build bone and connective tissues; Iron prevents anemia while manganese as well as magnesium are essential for bone health; Magnesium is important in the absorption of calcium and work with calcium to help the bones remain strong and prevent bone related disorders. B-Vitamins like riboflavin, vitamin B6, folic acid and niacin; these are essential to maintain good skin and nervous system. Jackfruit lowers blood pressure levels. Jackfruit is a rich source of potassium for the body as it helps keep the body fluids and electrolyte balance in body cells and helps in regulating blood pressure reducing the risk of heart attacks and strokes. It strengthens immune system. Jackfruit is a very good source of vitamin C, a powerful antioxidant that can help prevent colds and infections. Also help in the proper functioning of the immune system by supporting the functions of the white blood cells. It ensures better gastrointestinal health. The high fiber present in the fruit prevents constipation and helps in smooth and regular bowel movements. The fiber also offers protection to the mucous membrane of the colon by driving away the carcinogenic chemicals from the colon. Mangosteen is unique for its appearance and flavor. It is very low in calories (63 calories per 100 g) and contains no saturated fats or cholesterol. It is rich in dietary fiber (100 g provides about 13% of RDA), which can be very important for individuals who are concerned about putting on excess body weight. Mangosteen is good in vitamin C. Vitamin-C is a powerful water soluble anti-oxidant that helps the body develops resistance against flu-like infectious agents. It helps to combat pain (anti-inflammatory property which may decrease inflammation, pain and joint damage linked with arthritis, or pain caused by sports workout and minor injuries) It maintains intestinal health – relieve diarrhea, constipation, stimulate normal bowel health. Mangosteen may decrease blood sugar in Type II diabetes by making insulin more effective, decrease free radical damage and inflammatory build up – help to maintain the blood vessel health, cholesterol level, protect heart muscle, low er high blood pressure. II. MARKETING MIX Product Cupcake Delight’s feature product is Boucake. Boucake is derived from the combination of bouquet and cake. It is in a form of a bouquet but instead of flowers, it uses cupcakes with different fillings. It has different designs that look like a real flower. This cupcake bouquet is not just unique in its form and design, but also in its fillings. It patronizes Davao’s best fruits fillings such as Durian, Mangosteen, and Jackfruit. Boucake offers two types; one which has 6 cupcakes per bouquet and the other has 12 cupcakes. Both could be personalized in terms of designs as for customer’s request. Boucake is best for gift giving celebrations. It is great alternative for flower bouquet which males can present to their significant other during weeksaries, monthsaries, and anniversaries. It can be a gift during Mother’s and Teacher’s Day. Place Cupcake Delight will be situated in a pastry and cake shop inside a mall. Base on the survey, market would want to purchase it in the mall about 50.5% of them and in the pastry and cake shop about 44% of them. Mall is considered since there is less hassle. The physical place is already there unlike finding or renting a lot then build a store or shop. It is more costly. The rental fee in the mall is also settled and fixed. Mall, as a place Boucake, is also advantageous since there are people constantly visiting there. There will be more potential customers and target market can surely be achieved. Cupcake Delight can put on their minds the physical image of the shop or through the permanent placement in the mall. Promotion Boucake will be promoted through online like Facebook, Twitter, and of course Instagram where the netizens can really see the actual image of the Boucake. Flyers must also be distributed to the customers so that they can have contact information and promotions of Boucake and other Cupcake Delight products. Decorations can be based on customer’s wants and on occasions. Discounts on bundled orders will also be used to create loyalty to the customers. Price Boucake with 6 pieces will be priced at P350 while with the 12 pieces will priced at P650. 63.5% and 71% respectively wanted it to be priced at that range. Pricing is cost based. Cupcake Delight pricing strategy will be based on the totality of all the expenses we had in making our product. We considered how we can put a price on our product in a way that we can cover all the expenses in our operation plus our profit. We come up to a price of Php 350.00 for our cupcake bouquet. With this price, 75% will be going to our expenses and the remaining 25% will serve as our income per bouquet.