Friday, November 29, 2019

An Explanation Of The Swot Analysis Tourism Essay Example

An Explanation Of The Swot Analysis Tourism Essay Under these conditions a important function in fixing and implementing the advanced undertaking is the development of marketing scheme of the endeavor to analyse the invention sphere by the method of SWOT-analysis that takes into history all the constituents and altering internal and external environment. Analysis of the invention domain of the endeavor carried out in order to: Designation of its possible strength ( S ) ; To place its possible failings ( W ) ; We will write a custom essay sample on An Explanation Of The Swot Analysis Tourism specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on An Explanation Of The Swot Analysis Tourism specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on An Explanation Of The Swot Analysis Tourism specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Establish chances ( O ) provided the company its external environment ; Identifying menaces ( T ) for the endeavor on the portion of the external state of affairs. The really thought of the SWOT-analysis is non merely the list of strengths and failings of the endeavor potency and to set up a nexus between them, but besides in understanding the possible state of affairss in the readying and execution of advanced undertakings for managerial decision-making to develop a selling scheme. Matrix of the SWOT-analysis is based on two vectors: the province of the environment ( horizontal axis ) and the province of the internal environment ( perpendicular axis ) , chances and menaces from the province of the environment, the strength and failing of the edifice. At the intersection of 22 have four Fieldss ( square ) . Table 1. The internal environment of the company Strength ( S ) External environment of the company Opportunities ( O ) Menaces ( T ) 1 the field of SO 2 the ST field Rated capacity Failings ( W ) 4 the field of WO 3 the field WT Field of ( SO ) are fixed by the strengths of those concerns which Provide his usage of this chance. 2 ) Field ( ST ) are fixed by those failings in edifice concerns that do non give opportunity to utilize the chance. 3 ) Field ( WT ) ( the ability of the menace ) is the worst province for concern. 4 ) Field ( WO ) ( failing if possible ) is necessary to find the feasibleness of chances for capacity development scheme of the endeavor. See the mechanism of the diagnostic analysis of the advanced environment on the method of SWOT-analysis for the design and execution of advanced undertaking  « Amusement Park » . SWOT-Analysis Table compiled by writer Table 2 SWOT-analysis of the advanced environment  «Amusement Park » the basic parametric quantities for the diagnosing, they are united on the footing of submitted concern program and analysis of cardinal countries of rating of investing attraction in footings of its development. Table 2. Basic parametric quantities for diagnostic analysis. Second An attractive location of the endeavor ; The possibility of making the stuff base and substructure of the endeavor ; Stability of dealingss with investors ; Experience the leader in the field of diversion ; The inclusion of an advanced undertaking in a strategic plan of urban development. Tungsten Danger of an uncomplete accounting of hazards in the readying of the undertaking ; No experience of possible staff in the amusement rides ; Danger of misdemeanor of proficient criterions during the munition works and operation of the installation ; No public act for the right to the land ownership. Oxygen Recognition of Estonia in the Baltic part ; Favorable climatic conditions ; No concurrent in this type of market ; The usage of events for 4 seasons ; The usage of the agreements for the advertisement company. Thymine Competition from other companies resort parts ; Ill developed construction of the part ; No analysis of inauspicious natural factors ; High barriers to entry in the touristry industry. 3. Analysis Fieldss 3.1. Analyze the 1 field ( SO ) Fix the strengths of the invention undertaking, which provided him represented installations. An advanced undertaking is portion of the socio-economic development plan in the metropolis of Aegvidu. Execution of the undertaking provides a strategic model for the formation of the unity of the tourer industry. In societal footings, it addresses issues of unemployment in the metropolis, doing a important part to make fulling the local budget. Contentss of the chief cultural sites of the undertaking are aimed at advancing a healthy life style, this contributes to the organic combination of an attractive natural landscape with new architecture and the system of care. The undertaking creates existent conditions of local authorities development in the part. In this respect, an advanced undertaking receives the full support of the local authorization becomes of import political significance in the public head non merely the occupants of Estonia and the Baltic States. The execution of an advanced undertaking in the country of precedence development, based on the proviso of certain benefits for investors in revenue enhancement creates good conditions for the profitableness of the undertaking throughout the period. In general, this index with a little one-year lessening suggests the stable operation of the endeavor. Scope of services provided under an advanced undertaking as a whole is new to the local touristry market. It can be divided into those services that are included in the ticket: the swimming pool, H2O slides and other H2O athleticss attractive forces mini menagerie, exhibitions of animate beings and workss, and to boot provides for a fee Jacuzzi, sweat room, showers, supplying parking infinites for vehicles for sale assorted keepsakes, etc. Given the newness of services and their attraction in footings of environmental pureness acceptable conditional belongingss, planned selling activities can supply a stable fiscal status of the endeavor. 3.2. Analyze the 2nd field ST Fix those failings of possible concerns that do non give a opportunity to utilize the chance. The petroleum certain facets of internal invention environment in the readying and execution of advanced undertaking threatens to cut down the effectivity of public presentation indexs. First of wholly, it concerns the pricing of services for the undertaking. When the alleged targeting of services to consumers from the close abroad. The 2nd job, which should pay serious attending it s accounting capacity indexs of accomplished demand for tourer services in the part, with increasing possible and systemic capacity of a lessening in comprehensiveness. By cut downing the specific fiscal and economic indexs this can significantly impact the formation of tourer flows and to obtain the possible net income from an advanced undertaking. No less serious job that affects the efficiency and profitableness of the advanced undertaking is the rate-limiting function of natural factors. Seasonal nature of work is basically reflected in the monetary value system. Pronounced seasonal nature of work significantly reduces the public presentation of the possible market size and natural volume of existent downloads. 3.3 Analyze the 3rd field of the WT Record the most important jobs which may impact the feasibleness of an advanced undertaking. The chief job in an advanced undertaking are inauspicious natural factors which are non taken into history when developing a concern program. Travel company is located in a zone prone to natural facts and carry on geological research in the location of it there is non water-repellent dirts, which involves the accretion of groundwater in the cavity. Furthermore, it is an endeavor is located in the flood plain of the river, exposed to debris and ramp flows. When ciphering the costs of the same company for the continuance of the undertaking, the costs associated with the behavior of serious munition works on the development shower lights-outs to extinguish natural catastrophes are non planned. A 2nd every bit serious job is that the computation of tourer flows in the invention undertaking, the accent is on tourists populating in the constitution of a tourer composite of Aegvidu. Contractual footings on which will organize a uninterrupted burden of the endeavor, suggest a joint involvement in advanced concerns and spouses, watering place and hotel composites. In this instance, a big per centum of recreational services will be provided to consumers in neighbouring states. In the selling scheme of the company wholly considered that the system of tourer and diversion composites, which target bing concerns supplying a scope of services for consumers, is similar to those for H2O Parkss and can significantly impact the formation of its tourer flows enterprise as a whole. The 3rd status, which is non taken into history when preparing and implementing the advanced undertaking is the competition from companies that are focused on supplying similar services to the mark section of the local market. The state already have similar undertakings but individually supplying the same scope of services, but modernized in the visible radiation of experience. Such a state of affairs may significantly impact the translational capacity and the existent burden of the composite, which significantly can impact the feasibleness of an advanced undertaking. 3.4. Analyze the field of WO Determine the utility of chances to happen a scheme for capacity development of advanced endeavors. An earlier analysis of the market and the market state of affairs shows the followers: Analyzed touristry market is characterized by comparatively high capacity. In the market there are a big figure of topics, offering tourer and recreational services, which can move as a base for client H2O Parkss, supplying diversion athleticss diversion leisure. On the other manus the cost of amusement, as an extra service, takes a value resort, merely 30 % when averaged in a foreign market 70 % . This creates requirements for the creative activity of new types of services water-entertainment. To guarantee the proper operation and proviso of a broad scope of competitory services should be multi-level cleavage of the market that focuses non merely on tourist s tourer composite of the state, every bit good as local occupants. Drumhead by SWOT tabular array In general, it should be noted that the advanced undertaking involves the orientation of future developments, so confidently predict the result of their execution is debatable and merely possible taking into history all factors, emerging under the influence of internal and external conditions, state of affairss and standards for the development concerns. To guarantee a focussed direction of advanced undertakings for endeavor development is really of import to right cipher the debut of external costs, which tend to hold a important impact on the rating of profitableness and efficiency of the invention undertaking. Calculation of its efficiency lies in the quantification of the ensuing fiscal public presentation by comparing the gross with the costs related to the design and execution of fiscal theoretical accounts anticipated events, performance-based hard currency flows of the undertaking. Calculation of the efficiency of the undertaking should be undertaken with respect to its execution based on the effects of rising prices and the hazards associated with possible decrease in present value derived from future income. Effective mechanism for bettering the efficiency realized in pattern invention undertaking is its multi-stage public scrutiny of the upper degrees of authorities to ordinary citizens. This applies chiefly for assorted sociological monitoring, pointing occupants to the purposes and aims of the undertaking is implemented, its societal significance for the metropolis, unit of ammunition tabular arraies, forming the public response to account for and determine public sentiment. The precedence activities for the topics of entrepreneurial activity were identified undertakings bing non less than: †¢ 50 thousand EUR in conserving the natural heritage of historical, street cleansing and waste intervention. †¢ 700 thousand EUR hotels and other topographic points for short-run adjustment, the activities of healthful and resort organisations, waste intervention, building, and urban route conveyance, Cargo handling and storage, the operation of conveyance substructure ; †¢ 1,5 million EUR the production of electric power workss of other types of energy distribution, aggregation, purification and distribution of H2O. Ongoing undertakings in this act non merely as a resource for development of the district, but besides a alone tool for pull offing invention on the footing of reciprocally interconnected and collaborative activities of its topics. Furthermore, the rule of joint activities of local authorities, concern and community Acts of the Apostless as a cardinal rule of direction patterns, forming invention activities in a certain country. General decisions on the subject. Number of strengths of the undertaking exceeds the figure of weak, besides has the advantage of chances over menaces, so you can pull a general decision about the chances of the undertaking. The undertaking s strengths and market chances are associated chiefly with the vision of the undertakings and market preparedness to follow the bill of exchange. Future scheme for advancing the undertaking involves carry oning a wide advertisement run. This sector of the market develops in a uninterrupted addition in the figure of objects suburban existent estate and high competition between them, but chiefly for the consumer is critical location and the comfort degree proposals. Execution of this undertaking is designed to run into the market demands for quality and accessible countryside diversion. The visual aspect of the object of such a degree and graduated table will put new quality criterions for the development of the industry and the whole of Europe, which will convey the market town remainder on the quality of the proposals of the taking European markets Sweden and Finland. Execution of this undertaking will show a qualitative addition in consumer demand and the ability of market participants to run into their suited. Development of recreational resources within the state will function as a redistribution of tourers from abroad to domestic proposals, which indicates a high fight of this section of the economic system. The undertaking is economically sound and executable, provided stable support. Prerequisites for the execution at this clip are on the market as the handiness of equal edifice engineerings and substructure in the part. A requirement for the decision of this undertaking to the market besides has, harmonizing to a survey. Attracting a spouse that can supply stable support for the undertaking, will in due clip to establish this undertaking.

Monday, November 25, 2019

What academic research tell us about service Essay Example

What academic research tell us about service Essay Example What academic research tell us about service Essay What academic research tell us about service Essay IT not only lowers the cost of service, it creates avenues o enhance revenue through service. Gone are the days of standardization, mass production, and mass marketing. Academic research has revealed that the service sector is now dominant in every developed economy. The goods sector is shrinking as a proportion of the overall economy; and as goods increasingly become commodities, service is becoming the key differentiator even in the goods sector. Thus, to compete effectively, all companies must become service companies. For over a century, technological development has driven an economic shift from a focus on goods to a focus on service. The rise of service in the economy has been reflected by an explosion of academic research on service. This research has tended to emphasize different themes over time (see Table 1 for a summary). In the sass the emphasis was on the differences between goods and services, recognizing that services had characteristics that made for new aspects to consider. Research then the sass resulted in service research of a different flavor?emphasizing service quality measurement, customer satisfaction measurement, and complaint management systems. This evolved in the sass into models for making service financially accountable. At the same time, the advances in IT in the sass resulted in academic research paying increased attention to direct contact with individual customers, storing and analyzing individual customer data, and then using that information to serve individual customers better. Since 2000, academic research has moved to using customer relationships as a foundation for a new approach to strategy, based on customer equity (the discounted cash flows expected from the current and future customer base). This requires managing the customer lifetime values of individual customers, a topic that has received considerable research attention in cent years. The explosion of service research has been facilitated by the introduction of several influential academic centers for service research. Notable centers currently include the Center for Excellence in Service at the University of Maryland, the Center for Services Leadership at Arizona State University (see the article by Bitter and Brown in this section), the Service Research Center at the University of Carlsbad (Sweden), the Masochist Academic Center for Research in Services (Netherlands), and the Center for Relationship Marketing and Service Management at the Swedish School of Economics (Finland). The progress of the service research field has been accelerated by international con- preferences?most notably the annual AMA Frontiers in Service Conference (which this year features speakers from 29 different countries) and the biennial Quality in Service (QUIZ) conference. The most prominent academic Journal in the service research field is the Journal of Service Research. More than many academic fields in business, service research is often influential in leading business thought and changing business practice. The breakthroughs in service research have typically resulted from considering the advances in technology, ND carefully studying their implications. Technological development has created many new services?especially information services?and has also made it possible to make physical goods more service intensive. Aside from individual products, technology has also made it much easier to track customer relationships over time, and to therefore link goods and services to serve the customer effectively over an extended period of time. With these trends, service research clearly implies that every business must become a service business, or it will fail to be competitive against competition that does. Successful businesses like MM, GE, and Struck all embrace The economic shift toward service has been ongoing as new products and technologies become available and others become cheaper to produce and transport. However, the information revolution has provided a particularly strong force. IT has advanced service, as previous technological contributions have aided mass production. Assembly line mass production lowered the cost of producing goods. IT likewise decreases the cost of providing and improving service. Thus, we witness the rise of mass service, driven by improved coordination and a greater availability of information. Whereas mass production focused on the product, the new philosophy is customer-centric. Since interacting with customers is now less expensive, it is easier to tailor communications to provide distinct information and service to distinct customers. Using IT, businesses have expensive to satisfy an existing customer than to invest improved communications both internally and with in advertising to attract new customers. Therefore, the customers. Different departments within the same road to profitability is to work hard to keep current accompany can easily share information electronically, tamers. Employee policies have an important impact on Susann businesses and customers can now contact each other via email. Firms now have the ability to collect tome satisfaction [70]. Businesses need to give the corona analyze information on customers entire purr- erect incentives to their service personnel to place emphasis on long-term profitability as well as immediacies and contact histories. Ate sales. By designing compensation schemes decreased the cost of culls sass Service is different from goods that reward employees atomization, marketing to Measuring customer service and service quality SASS not only for immediate smaller segments has become Complaint management sales, but also for service economically feasible. As Making service improvements financially accountable SASS laity, companies can technology continues to Direct marketing and CRM improve customer staircases the cost of consummating customer lifetime value and customer equity sass Profitable long-term relationships with customers faction and long-term atomization, the logical end is Basing corporate strategy on service profitability. One-to-one marketing, with Customer delight has businesses targeting each succubus suggested as an tome separately and providing individually customized Table 1 . Academic research in alternative focus to smartening. Over time, firms can build relationships service over time. Emmer satisfaction. Switch customers by inferring their needs and providing tome delight, a more extreme form of satisfaction, service to meet those needs. Information also gives the consumer power. Rust table 1 (7/06)level of surprise, and may not be possible Con- requires some summer can receive information about a broader range in contexts where there is little room for the customers of businesses, as well as perform their own searches to expectations to be exceeded [72]. Even when customer find the product that best suits their needs. Cones- delight is possible, however, it may not always be innocently, businesses are faced with greater competition sequential for future patronage, if customers suspect the and greater need to differentiate. Firms must provide level of service will not be duplicated in the future. The best value for better- informed consumers or fail to When feasible, however, the strategy of customer delight can lead to exceptional results. Attract them. Wrought improved service a more attractive strategy for success in the marketplace. SERVING THE CUSTOMER As technology has given consumers access to more information and choices, service has become increasingly important. Customer satisfaction is paramount, because customer perception is reality when it comes to buying decisions. In this viewpoint there is no such thing as actual quality except as perceived by the customer, and thus serving the customer better depends upon understandi ng how to increase quality perceptions and customer satisfaction. Expectations play a significant role in customer satisfaction. Customer behavior is affected by satisfaction relative to expectations [71 , 114]. Research indicates that when a customer perceives service quality to be below the desired level, increasing customer satisfaction Wrought improved service has a large positive effect on DESIGNING AND IMPROVING SERVICE The delivery of service is fundamentally different from the concept and design of the service. Delivery is an aspect of implementation, not of design. The service product is planning your work, while service delivery is working your plan. Whereas engineering focuses primarily on the product, service concerns itself primarily with delivery, largely because of the inherent variability of service delivery. Because product development deals only with the quality of the product, firms must measure and manage service livery to ensure the quality of the entire experience. To measure service, metrics on customer perceptions, attitudes, and behavior are essential. Businesses should understand what customers do and why they do it. Customer behavior may simply be observed, such as 51 when a customer repurchases the product or files a research had found that companies attempting to complaint, but customer perceptions and attitudes are achieve a dual emphasis of cost reduction and revenue enhancement simultaneously did not perform as well not as readily revealed. For a complete understanding of customers, firms as companies that focused solely n a revenue emphasis combine computer databases of customer behave- sis strategy, Metal [56] reached the conclusion that a ROR with survey data of customer perceptions and ATT- dual emphasis can be profitable in the long-run for the à ©tudes. Achieved it. However, but are still useful for a number of purposes. For exam- attempting to achieve such a dual emphasis usually plea, they have been useful in studying the profit-Max- doesnt work. Mining balance between customer acquisition and customer rotten- THEN NOW Zion efforts [82]. Although such Standardization Customization findings have significant manager- Transactions Relationships al implications, they do not Focus on goods Focus on service Revenue expansion through service explain the motivation behind Cost reduction through manufacturing efficiency Marketing to individual customers customer behavior. The complex- Mass marketing Improved ability to communicate, store, and momentary use of databases and sure- Limited ability to communicate, process information eves is necessary to get a complete store, and process information understanding. Table 2. Moving to a The manufacturing mind-set is also problematic in service paradigm. Pricing perishable services. It is useful to separate burglarproofing THE MANUFACTURING chase from consumption [96]. For example, rather MIND-SET Rust table 2 (7/06) To succeed in todays marketplace, firms must ban- than selling travel or event tickets at a single price, firms don the manufacturing mind-set and attach highest can take advantage of buyers uncertainty about the priority to customers rather than products. The man- future by offering different advance and spot prices. Factoring mind-set leads businesses toward standard- Advance sales can often more than offset a lower price action. Goods are easier to produce in higher quality and give firms the ability to price discriminate. IT has facilitated the automation and mechanized quantity when production is standardized. Thus, manufacturing is built around assembly lines and Zion of service. Traditional e-commerce focused on mass productio n, and success is defined as producing reducing service costs and increasing efficiency by take same good at a lower cost. As manufacturing Effie- inning advantage of the opportunities to automate service science nears its maximum, there is little room for offered by the Internet. However, this approach suffers businesses to differentiate themselves, making it dif- some of the same pitfalls as the manufacturing mindful to profit or find niches in the market. In contrast, set. Selling commodities online at low prices results in better service demands customization, rather than low profit margins due to competition because there is standardization. Each customer should be treated little room for differentiation from competitors. Expectations by many, this e-comply line. Customers varying needs and desires are not mercer strategy has largely failed (recall such losing all satisfied by precisely the same service product or efforts as pets. Com). Instead, a paradigm of e-service is becoming prevalent. Companies such as Dell and service delivery. Productivity and satisfaction are not always mute- Amazon that have succeeded in e- commerce have done ally compatible goals, especially in service firms [5]. O because they have taken advantage of IT to increase Businesses must often choose between the two, at least revenue through improved service rather than simply in terms of primary emphasis. Academic research to reduce costs. Clearly suggests that more attention must be focused on revenue expansion through service, rather than Just on USING SERVICE TO MAKE MONEY productivity and cost reduction. Cutting costs may Service was once thou ght of as an add-on to physical improve short-run profitability at the expense of service goods, an extra that could be used to enhance the and long-run profitability. For example, downsizing value of the product. Today, most of the economy may reduce costs but have a detrimental effect on cuss- consists of services, rather than physical goods. To a tome service, as remaining employees are spread too large extent, physical goods are now seen as part of the thin. Thus, while costs may be reduced, decreased cuss- overall service. Table 2 shows some of the elements of tome distraction may impose long-run losses in cuss- the paradigm shift from transactional to relationship tome loyalty and future patronage. Whereas previous marketing. The emphasis is now on the value off 52 continuing customer relationship, rather than the value of any individual sale. The inherently high variability in service presents an opportunity even in the goods sector. Although the goods themselves are increasingly commoditized, service levels can vary greatly. Instead of struggling to achieve profit through cost savings in the production process, goods companies can use service to set themselves apart from competition hat is virtually indistinguishable from a manufacturing standpoint. IT decreases the cost of service. This naturally presents an opportunity to profit from cost savings, but it also offers the chance to expand revenues by providing better service to customers at the individual level. Although service improvements bear short-run costs, they allow firms to attract and retain customers and build long-term relationships. Customer loyalty lit- completed because a dissatisfied customer represents a potential loss of future business. Firms can also use IT to identify valuable but potentially threatened customer TRANSFORMING COMPANIES The service revolution is changing the way companies do business. As physical goods increasingly become commodities, goods companies find it increasingly difficult to stay profitable. Service allows companies to escape the commodity trap by providing a means for businesses to differentiate themselves from the competition. Instead of relying on profits from individual transactions, service allows companies to build relationships with customers, using these relationships to enhance long-term revenue. Stead of relying on profits from individual transactions, service allows companies to lid relationships with customers, using these relationships to enhance long-term revenue. Mutely leads to a lifetime of sales from which a company can profit. Service also opens the door to improvements in customer satisfaction. Companies should focus on meeting the varied needs and expectations of individual customers, keeping in mind the caveat that some customers may not be profi table to serve. Higher levels of customer satisfaction can be achieved with customization, increasing customer lifetime value through greater willingness to pay, frequency of purchase, and probability of repurchase. Customer equity, the discounted future cash flow that will be obtained from the firms customers [89], is a very good proxy for the total market capitalization of the firm. Viewing the health of the business in terms of customer equity makes it possible for the firms strategic decisions to have greater financial accountability [88]. Research has taught us that companies should care more about their lifetime relationship with customers rather than standalone transactions. Thus, companies are concerned not only with the loss of a single transaction with a given customer, but with the loss of al potential future transactions with that customer. Service improvements can be justified by increased customer equity, driven by an increased ability to attract and retain customers. Companies have a compelling reason to fix problems even after a transaction has been To survive and thrive, every business must become a service business. Research shows the focus on goods, tangible resources, and transactions has been replaced by an emphasis on service, intangible resources, and relationships [108]. In this new dominant logic, service, not goods, has become the fundamental economic exchange. Consequently, focus has also shifted from the reducer to the consumer, who is now endowed with more power than ever before. Despite the need, it can be difficult to convert locked into the manufacturing mind-set, still focusing on cost reduction through efficiency improvement rather than revenue expansion through improved service and customer relationships. However, businesses embracing the service revolution are finding success and profitability where others are failing. Companies that fail to invest in service run the risk of falling prey to competition. THE FUTURE OF SERVICE Computing and IT provide a particularly strong support for a shift toward service by applying information and tools to facilitate communication and build customer relationships [90]. As the capacity to gather and process information grows, companies can use their new knowledge to offer customized service. 3 Thus, with more information available to improve service, information-driven service becomes necessary for customer satisfaction and profitability. Many businesses have focused on cost reductions made possible by technology, but concentrating only on cost savings is an outmoded vestige of the production mind-set, from which companies must escape to succeed. Academic research indicates that tunnel vision n productivity and efficiency can drive unintended servic e quality erosion, which may hurt revenues and profits despite cost savings. Instead, companies should utilize IT to expand revenues through better service as well as to cut costs via automation. Real-time communication with customers is becoming easier and more affordable. Companies can quickly identify customers desires, guide them to products that meet their needs, and provide the necessary level of service. Additionally, firms can promptly detect and fix customer problems, again increasing customer satisfaction and building long-term relationships. Companies are learning from relationships with their customers. Using computer databases in conjunction with information collected through surveys, businesses can better understand customer attitudes, perceptions, and behavior. Armed with this new knowledge, businesses can design and improve service to ensure long-term profitability. Finally, service gives firms a new tool for financial accountability. Customer equity is a measure of future return on investment for service improvements or any other business improvement. In addition, customer equity enables companies to compare prospective returns on investment from competing service strategies. A complete bibliography of the literature used in the course of preparing the articles for this special section on services science is available on page 33. Roland T. Rust ([emailprotected] Mud. Du) holds the David Bruce Smith Chair in Marketing and is executive director of the Center for Excellence in Service and Chair of the Department of Marketing, at the University of Maryland, College Park, MD. Carol MIM ([emailprotected] Mud. Du) is a doctoral student at Robert H. Smith School of Business, University of Maryland, College Park, MD.

Thursday, November 21, 2019

Organization Growth Strategies Assignment Example | Topics and Well Written Essays - 2500 words

Organization Growth Strategies - Assignment Example In 1805, Henri-Louis Pernod founded the Maison Pernod Fils company in the town of Pontarlier, near France's border with Switzerland. This company produced an absinthe-based beverage, which was very popular during its time. However, in 1915, absinthe was banned. A few years after that, Pernod merged with two other companies to form Les 'tablissements Pernod (The Pernod Establishments) which manufactured liquors that used anis as a base. In 1938, the company launched the brand Pernod 45; in 1951, it started selling its first pastis, Pastis 51. In the very first year of its production, Pastis 51 sold almost two million bottles to caf's. On the other hand, in 1932, Paul Ricard produced the first pastis, named after him, in 1932 in a place near Marseilles. Soon, Ricard's company rose to take its place beside Pernod as one of the leaders in the French spirits industry. After four decades of intense competition, Pernod and Ricard decided to come together. Between 1971 and 1974, the management of the two companies had prepared meticulously for the merger. Pernod Ricard was born in 1975, with a consolidated turnover of 2.5 billion francs. Pernod-Ricard today is the world's second biggest company in the wine and spirits sector. It has occupied key positions in every continent. It is the number one wine and spirits company in Europe and in the Asia Pacific, and number two in the Americas. The group has fifteen key brands of international renown: >Ricard >Ballantine's >Chivas Regal >Malibu >Stolichnaya >Havana Club >Beefeater >Kahlua >Jameson >The Glenlivet >Martell >Mumm >Perrier-Jouet >Jacob's Creek >Montana These premium brands play a central role in Pernod Ricard's development, but "the Group's success over the years owes as much to the talents of its employees, to its core values and to a decentralized structure unique to Pernod Ricard", according to the company's website. The map below shows the reach Pernod Ricard had in 2006. Source: History of Pernod Ricard, www.pernod-ricard.com At present, Pernod Ricard employs 19,000 people in more than 70 countries all over the world. Pernod Ricard has 113 production plants distributed worldwide. The journey from 1975 to 2009 From the very beginning, Pernod Ricard's main aim was internationalization of its products. For achieving this, Pernod Ricard followed a clearly chalked-out, almost aggressive policy of acquisitions right from 1975 itself. The first acquisition made by Pernod Ricard was that of the Scottish Campbell Distilleries, which made Scotch whiskies, in 1975-76. Next, in 1976, Pernod Ricard purchased Cusenier (Argentina), which made liquors from extracts of grains, fruits, and other parts of plants. In 1979, Pernod Ricard made its first step outside France, in an effort to maintain its sales growth. In 1980, while Austin Nichols, the England-based maker of bourbons, was acquired, Pernod Ricard launched a massive marketing campaign amounting to nearly $50 million in England, Spain and Germany. The campaign included gimmicks like giving away products at discos. The same year, Pernod

Wednesday, November 20, 2019

Discrimination across Europe then compare with Britain (Inequalities Essay

Discrimination across Europe then compare with Britain (Inequalities in Health and social life) - Essay Example We will also be taking into consideration the work of Madeleine Leininger, who has long recognized the importance of understanding both cultural differences and similarities when caring for an intercultural community, and will be considering whether her theory can be applied within other sectors of the European Community. As the European Union has grown, so has its need for effective governance and accountability as government bodies and organizations seek to implement Europe's social and political charter. The question of accountability through networking has been criticized by some academics. In this paper we will be considering the critical analyse of Yannis Papadopoulos concerning governance and accountability through networking, taking into account its weaknesses and strengths, and what needs to be put into effect to ensure a European Union that is efficient and fair to all its citizens. Social justice for the people of Europe should be the objective of social polices; therefore 'respect and the promotion of fundamental rights should be both the starting point and the ambition of such policies'. (Brussels, 2005). Beginning its first anti-discrimination bills in 1957 with the Treaty of Rome, which provided men and women with the principle of equal The Racial Equality Directive and the Employment Framework Directive (2000) were formed to give all citizens of the EU a general minimum level of legal protection against discrimination. These directives, adding to the numerous laws that have been put into place during the past thirty years, were established to prevent people from being discriminated against on the grounds of ethnic origin, race, religion, age or sex. Initially formed to protect people within the workplace, the changing face of Europe has meant placing social and health rights at the top of Europe's agenda during recent years, as the Union faces the challenge of an emergent, cosmopolitan community. From starting as an economic agreement between two countries, the European Union has now grown into a 25 Member State, with the acceptance of Bulgaria and Romania on the 1st January 2007, and it seems likely that it will continue to grow. Its Member States still enjoy the mutual benefits of the economic agreement that formed the Union in the first place, but as Europe's boarders have widened so has its identity, bringing into being a multinational society that has needed, and still needs, to create new laws to protect its members from social injustice. The Eurobarometer - Injustice Within Modern Europe: Growth means change; it means accepting that things are no longer going to be the same; it means welcoming new methods, new world views and new

Monday, November 18, 2019

Not Your Dream Team Assignment Example | Topics and Well Written Essays - 750 words

Not Your Dream Team - Assignment Example The first stage is formation where the team members will come together with the aim of fulfilling a goal. The second is the storming stage where each member is struggling for his or her ideas to be heard and therefore marked by chaos and conflicts. The third stage is the norming stage where now the members come to know each other and start accepting each other’s ideas. The next is the performing stage where the group now focuses on achieving the goal and hence no conflict at this stage. Finally, having achieved its purpose, the group adjourns. 2. Mallory joined Think Link as assistant marketing manager for new products; two software programs were being designed to help high school students learn algebra and geometry. Murray’s manager is Lin Chen (marketing manager). Other members on the cross-functional development team with her are Todd Schlotsky (senior programmer); Sean Traynor (vice-president for marketing); Joyce Rothman (a former high school teacher who co-founded Think Link; she works only part-time in the company); and Harlow Gray (educational consultant). In this paragraph, the bases of power are mentioned and this will determine the decisions made in the organization. Sean for example is the Vice president and he has therefore the most authority in the company based on the positional power he is holding. The decisions Sean will make will therefore not be contested or argued with as a result of his prestigious position in the organization. Sean holds legitimate power due to his position as the vice-president, Lin and Todd and Mallory hold expert power as a result of their knowledge in their different fields. Mallory, Joyce and Harlow also hold referent power due to their ability to be consulted by others in different places. Sean also holds coercive power which is portrayed later when he fires Lin. The above team also hold reward power which they use to give bonus on software. 3. After her first week on the job, Mallory was considering qu itting. â€Å"These people are so opinionated and competitive,† she complained. Sean, Joyce and Harlow, in Mallory’s opinion, don’t listen to anyone’s ideas at team meetings; they only talk about their concerns. â€Å"Sean thinks his rank entitles him to make all the decisions in the team. Joyce thinks her opinions should carry more weight because she was instrumental in creating the company. And Harlow views everyone as less knowledgeable than he is and discounts their information as â€Å"out-of-date†, because he consults with the â€Å"outside† – other software firms and school districts. Lin, who is supposed to have the leadership role in this team, is passive and quiet. While he sends out agendas, and organizes meetings, people ignore him at the meeting; when he is speaking, people interrupt him or talk over him. He appears to avoid all the conflict and lack of progress by rushing off to another meeting. The team didn’t a ccomplish any agenda items at the first meeting I was at.† When a group is forming, it undergoes several stages and the hardest and most challenging one is the storming stage where every member wants his or her opinion to be taken into consideration. This is exactly the stage this group is in where the members are not willing to listen to each other’

Saturday, November 16, 2019

Evaluation of Individual Stock and Sector Level

Evaluation of Individual Stock and Sector Level Is there any method of asset allocation within a stock portfolio that can repeatedly and over time outperform a passive index (buy and hold strategy)? The objective of this study is to compare strategies that have been used over the last decades by academics and professionals alike, and to expand on that study to create a real-time portfolio at the end of year t, to observe the portfolios behaviour during the next year (t + 1). This portfolio, unlike those created in previous studies, is not limited to the study of individual stocks, but instead gives importance to sector allocation. In addition, this study also focuses on implementing a long-short strategy in those assets: with the same overall exposure to the market, will a long-short strategy that depends on financial metrics exhibit a better risk-adjusted return than a 100% long strategy? In other words, are financial metrics capable of not only detecting undervalued stocks, but also of detecting those overpriced? Sector allocation is an especially important factor, with previous studies failing to consider sector allocations before moving to find the best classified assets within each sector; rather, they have jumped directly to stock selection. One of the most common strategies for stock picking in the asset management industry today relies on initially choosing sectors that, from a macro perspective, are expected to outperform the market. From this stance, analysts proceed to evaluate specific stocks to choose potential winners. Despite this being the industry standard, only a scarce number of studies exist that use common ratios between sectors to analyse and devise allocation strategies that are first sector-based and then based on individual stock. The objective of this project, therefore, is to focus on a set of financial metrics, both at individual stock level and at sector level, to examine if there is a positive relationship between these ratios and alpha creation. In order to achieve this, a portfolio will be constructed and rebalanced yearly, according to previous end-of-year data. Several traditionally-appraised financial measures, such as P/E ratio, free cash flow to enterprise value ratio and book-to-market value ratio will be employed, as will certain profitability ratios that include data from the income statement, such as gross profit, operating profit and EBITDA. The reasoning behind using measures higher up within the income statement is due to solely to accounting choices in comparison to net income these are less affected by an individual companys accounting process. In fact, revenue and other described measures of profit, are more consistent year to year than net income. Subsequently, this provides the rationa le that these measures are better able to predict future cash flows and, consequently, next years performance. Forward-looking measures such as analysts consensus recommendations and forward EPS will also be utilised and tested. Departing from the hypothesis that these individuals conduct an exhaustive analysis of the financial data at year end t to predict the performance during year t+1, the accuracy of the forecasts will be tested against those same financial measures and valuation metrics existing at year end t. Data will be extracted from a set of databases comprised of Compustat, CRSP and I/B/E/S. Fundamental data will be extracted from end-of-fiscal-year filing, to allow a time lag for the data release of a quarter period (3 months), before a portfolio is rebalanced. Hence, with a fiscal year ending in December of year t, a lag in the release of data will always exist and portfolios will be rebalanced at the end of the first quarter of year t+1. Monthly returns for every stock will be compounded throughout that year over 12 months. Each years universe of stocks will then be ranked by the different valuation metrics to construct a portfolio at year end t in order to assess the portfolios performance during t + 1. Three different sets of portfolios will be constructed for each financial metric each year and, within each set, two strategies will be implemented. For a stocks-only portfolio, only those stocks ranking in the upper quintile (top 20%) will be used each year. For the sector-only portfolio, a market capitalisation average of each sector will be calculated, and the portfolio will be formed by the top 20% sectors ranked in any given year. For the sector and stocks portfolio, an implementation of both criteria will be evaluated. That being said, the portfolio is formed from the top quintile stocks within the top quintile sectors each year. As a whole, this assumes a long strategy, buying in on those stocks on a value-weighted basis each year to constitute a portfolio. In the long-short strategy, the bottom quintile of each respective category will be shorted, and the proceeds used to buy an extra 30% of the top quintile of stocks. Using a long-short strategy will help the researcher examine the feasibility of using these ratios in recognising overvalued stocks as well as undervalued companies, and use this information to construct a more profitable portfolio. A 130/30 long short strategy is used, where a 150/50 long short strategy or other proportions could have also been tested. However, the 130/30 strategy is chosen following the creation and later popularisation of 130/30 mutual funds and investment vehicles. This choice stems from an initial study suggesting that 130/30 was the optimal proportion of long-short positions in a portfolio, even though no empirical data has been found that a 130/30 strategy later maximises alpha. Despite this, given its popularisation and position as an industry standard, our analysis proceeds with this strategy. Ultimately, performance attribution and portfolio statistics will be calculated, such as average return, total payoff, standard deviation, Sharpe ratio and alpha according to the Fama French 3 factor model, correcting for small minus big and high minus low book market value (Fama and French, 1992). This will help in our analysis of the results, to provide a clear and concise indication of which ratios perform best under each strategy and under each level (sector and stock). Literature Review Re-emphasising the importance of sector level asset allocation strategies, particularly at a time in the financial industry when performance attribution analysis stresses return on the relative weighting of sectors in portfolios, it is surprising that existing studies underscore the importance of certain ratios or fundamental data for stocks while lacking the ability to employ a method to identify undervalued sectors. Previous studies from Shiller and Bunn (2014) construct a 140-year regression series based on the relationship between the earnings of different sectors and their yields, creating a CAPE (Cyclically Adjusted Price Earnings) index that identifies sectors with upside potential. Their research indicates that market sectors show price mismatches that can be exploited. According to them, the CAPE index is capable of outperforming the market by an average of 4%. Therefore, the objective of this project is to expand on their results by examining a number of other ratios and fi nancial fundamentals, particularly those related to profitability measures, and to investigate whether these, both at individual and sector level, are capable of forming a portfolio that outperforms the broader index and a buy and hold investment strategy. Gray and Vogel (2012) try to depict not only the ratio that is able to predict higher performing stocks, but also those in the lower ranges; this implies being able to detect not only what are known in the financial investment world as value stocks, but also overvalued growth stocks. According to their research, some measures are more efficient than others in providing insight into which stocks are overpriced. Gray and Vogel (2012) therefore conclude that EBITDA/EV and GP/EV are the metrics that are best able to identify the overvalued stocks. The results in this dissertation agree that the GP/EV ratio is useful to identify overvalued stocks and is hence a good metric to build long/short strategies, but the results also consider free cash flow/EV as a favourite on a risk-adjusted basis for implementing a long-short strategy at stock level. The results of the following study show that stocks exhibiting a low FCF/EV experience low returns, demonstrating an ability to identify overvalue d stocks. Such a contradiction might be explained by the difference in the universe of stocks used or, more specifically, by the use of lag for data release, which corrects the assumption that results are available to the public at the end of fiscal year t. This lag is introduced by Hughen and Strauss (2015) in their comparable study of profitability ratios in portfolio allocation. The analysis in this project goes beyond what the Gray and Vogel (2012) study implies and develops a portfolio strategy to buy stocks that exhibit higher ratios, but also a complementing 130/30 strategy, which short sells stocks exhibiting poor ratios, and proportionally buys in excess those that exhibit a healthy ratio. As Miller (2001) shows in his work, overvaluation of stocks is far more common and of greater absolute value than undervaluation. This supports a rationale for this work. However, care should be taken when dealing with long-short strategies. As suggested by Michaud (1993), costs stemming from short sales in a portfolio could prove quite significant. However, Jacobs and Levy (1995) argue that these costs are not much higher than a long-only portfolio, and are well under those charged by active management. Professionals and practitioners alike have historically depended on several fundamental and financial measures to assist them in the portfolio selection process. Perhaps the most famous is the price-to-earnings ratio (P/E) along with the ratio between earnings before interest, taxes, depreciation, and amortization (EBITDA) and total enterprise value. Fama and French (1992) argue that book to market ratio perhaps most accurately explains the cross section return of stock, which they later include in their three-factor model. In our approach, we include these traditional metrics, while also relying on profitability measures, such as gross profit/EV, introduced by Novy-Marx (2010), and operating profit divided by market value, as presented in Fama and Frenchs (2015) 5-factor model. Ball et al. (2015) proves that the suggestions shown in Novy-Marxs (2010) paper, in which he proposes the existence of a very strong cross relation between gross profit and future returns, regardless of the financial leverage or structure of the firm, are true by constructing portfolios based on highly profitable firms as represented by gross profit/enterprise value. Novy-Marx (2010) concluded that because gross profit is the measure of profit less affected by accounting choices in the income statement, it results in a clear and normalised comparison between different companies. However, Ball et al. (2015) argue that gross profit is not significantly superior to net income (earnings) when analysing an extended time period. After analysing other measures of financial data, they conclude that operating profit, as a percentage of market value, does offer a significantly higher alpha. Therefore, this project continues with the aforementioned financial metrics, and focuses on sector and stock selection to create an annually-rebalanced real-time portfolio. Hughen and Strauss (2015) attempt to use different financial measures to construct portfolios at sector, stock and combined stock and sector levels. The following study complements and verifies the conclusions of Hughen and Strauss (2015) regarding the superior indicators of profitability measures versus traditional measures of valuation such as P/E and book to market in all three levels, and extends their research by looking at forward looking measures and a value weighted approach to the sector allocation, rather than the equal weight approach used in their research. The limitations of assuming sectors to be equally weighted across the portfolio, and not a function of the market value of the components of those sectors, contradict the notion of constructing a value-weighted portfolio. Their construction of portfolios at stock level is value-weighted, whilst at sector levels they equally weight each sector within their top quintile. This is a counterintuitive approach and this paper tackles that limitation by weighting the sectors accordingly respective to their components market capitalization, making periodical rebalances within the year unnecessary and increasing operational efficiencies in a real-life practical situation. It should be mentioned that the universe of stocks used in this study pertains to the SP500, which by definition is a market-weighted index. The project finds some discrepancies with respect to Hughen and Strauss paper, in particular surrounding the performance of the free cash flow ratio. A possible explanation for this is that this study states free cash flow as a percentage of total enterprise value, whilst Hughen and Strauss (2015) compute it as a percentage of market value. The approach taken within the subsequent study results in a much higher risk-adjusted return for the ratio, as measured by the Sharpe ratio, both for long strategies and to identify overvalued stocks. In their research of different financial ratios, Loughran and Wellman (2011) found that EBITDA over enterprise value offers superior performance to a predefined buy and hold benchmark. Their analysis, which comprehends data starting from 1963 to 2009, holds that EBITDA/EV possess a very significant regressive coefficient with future performance. Gray and Vogel (2012) confirm this hypothesis, analysing a time period of 30 years starting in 1980, in their research of different financial metrics. This paper confirms that, at a stocks-only level, EBITDA along with gross profit, both measured as a percentage of enterprise value, offer the highest risk-adjusted returns. For the analysis at both sector and stock level, EBITDA fails to show the same accuracy as the stock-only analysis. Therefore, the following study builds on the findings of previous studies by providing a more thorough examination at sector level. Gray and Vogel (2012) extended their research further by considering periods of economic crisis, in order to identify which financial ratio is most appropriate during high volatility economic downturns. However, they were unable to conclude which ratio is able to identify winners or losers during periods of financial distress, because none behaves in the same systematic manner during selected periods of extreme economic contraction. In their study of different economic coefficients and measures, Welch and Goyal (2007) conclude that the relationship between sector level performance and macroeconomic industrial data is unstable and at most, follows a random relationship. With that in mind, the focus of this paper is instead on building sector data as a market weighted average of the individual microeconomic company ratios and forecasts. Each individual constituent fundamental metric at year end will be used to position the allocation of each asset for the next year based on a ranked system. This construes that this analysis will be based on each stocks financial information at year end t to later construct sector level ratios and metrics, and is not based on macroeconomic or sector level data that, according to Welch and Goyal (2007), do not provide any significant cross-relation with future performance. Theory Development Although the focus of previous literature is in the attribution of portfolio performance to the different ratios and metrics used, the objective of this paper is to examine whether these same metrics, mainly traditional measures, forward looking estimates and profitability ratios, are able to exploit sector and stock level mispricing and generate real-time winner portfolios. Given the availability of forward estimates in the I/B/E/S database, a period from 1990 to 2016 will be examined in this paper. The choice of time period is not a random one; rather, to have consistency in data across the analysis and throughout all the variables used, this period is chosen from the start. To see the limitations of an extended data period, Gray and Vogels (2012) work show an exemplary illustration of such restrictions. They use a period of 30 years, starting in 1980, evaluating which financial metric can predict future performance. They complement their analysis on fundamental metrics by looking at analysts estimates and consensus forecasts, succeeding to recognise the lack of certain information in the beginning years of their timeframe, therefore failing to Nos interesa saber, al igual que el trabajo de Graham y Dodd (1934), cà ³mo el uso de normalizacià ³n de los diferentes ratios y fundamentos es capaz de cambiar nuestros resultados. Segà ºn sus estudios, la normalizacià ³n o media sobre cierto tiempo de estas mà ©tricas financieras, es capaz de mejorar la prediccià ³n de los resultados comparado con una estimacià ³n anual. Segà ºn su anà ¡lisis, la normalizacià ³n deberà ­a ser entre 7 y 10 aà ±os. Anderson y Brooks (2006) recientemente confirmaron esto, llevando a cabo un estudio de la mà ©trica P/E, la cual tambià ©n utilizamos en nuestro anà ¡lisis, pero a la inversa (Earnings/ Market Value). Segà ºn su estudio, basado sobre el mercado en U.K., usando el promedio de este ratio de 8 aà ±os en lugar de usar las mà ©tricas del aà ±o anterior, resulta en un crecimiento de las ganancias de un 6%, ya que es capaz de filtrar el ruido de earnings. Siguiendo estos anà ¡lisis, nuestro estudio abarcarà ¡ tambià ©n ratio s normalizados durante una serie de aà ±os, concentrà ¡ndonos en el universo de acciones del SP500, para confirmar que esta hipà ³tesis es apta en nuestro anà ¡lisis. Sin embargo, Data V.I Evaluation Metrics This paper will focus on three different categories of data inputs. There is an abundant choice of methods and variables in the accounting and financial research world, there is a large set of variables and measures to assess a firms valuation. In order to establish the model, an initial differentiation between these variables should be made. Traditional Metrics To start with, we look at the long standing traditional metrics that long have been appraised by the professionals in the financial industry. This involves the inverse of the P/E ratio, given as Earnings over Market Value of the firm, Book to Market value and Free Cash Flow to Enterprise Value. These ratios, introduced decades back in the origins of value investing by Graham and Dodd (1934), show mixed results according to existing literature. Including this long favourite measures in this research will prove useful when comparing to the other measures. Earnings/Market Value Earnings will be computed following Fama and Frenchs (2001) approach: Earnings = Earnings Before Extraordinary Items Preferred Dividends + Income Statement Deferred Taxes Book value/Market Value Book Value will again be calculated as Fama and French (2001) propose. Following on its definition, Book Value = Stockholders Equity Preferred Stock Free Cash Flow/Enterprise Value Analogous to Novy-Marxs (2010) work, we compute free cash flow as FCF = Net Income + Depreciation Amortisation Working Capital Change Capital Expenditures Enterprise Value will also need to be calculated. Following Loughran and Wellman (2011), we compute it as EV = Market Value + Short-term Debt + Long-term Debt + Preferred Stock Value Cash and Short-term Investments The enterprise value variable will be used again in multiple valuation measures. Profitability Metrics Profitability measures as reported in the income statement will also be used as valuation methods. The focus will be Gross Profit, EBITDA and Operating Profit. EBITDA and Gross Profit will be computed as a percentage of Total Enterprise value, as suggested by the work of Gray and Vogel (2012), whilst Operating Profit will be looked at as a percentage of Market Value. From here on, well expand on this and compute an average of this three profitability measures, in order to analyse if a composite metric is able to detect the cross relation between fundamentals and future returns. The reasoning behind using an average of these three different measures stems from the work of Hughen and Strauss (2015), as they find that the composite measure are less sensitive to changes in the firms structure across different sectors and within sectors, as well as providing more information than just a single variable. This implies that the average measure is less affected by differences in financial leverage across sectors, which results in a more standardised comparison between firms in different sectors. Gross Profit/Enterprise Value Once again following Novy-Marx (2010), we compute every years gross profit as Gross Profit = Revenue Cost of Goods Sold Operating Profit/Market Value Operating Profit, as define in the income statement will be used for this metric. EBITDA/Enterprise Value EBITDA, defined as Earnings Before Interest, Tax and Depreciation Amortisation is calculated by the simple sum of operating and non-operating income; EBITDA = Operating Income before Depreciation + Non-Operating Income Profitability Average Equally weighted average of the three profitability ratios. The reason for selecting profitability measures higher up the income statement, and not focusing solely on the inverse P/E ratio, Earnings/MV or expectations of forward earnings, is because the higher up the income statement we go, the more consistent data proves to be year on year: that is, figures are more normalized and suffer fewer variations, which could explain why they result in being better predictive models, filtering out excessive noise. According to Dichev et al. (2013), profitability metrics are more persistent than earnings and forecast future performance more accurately than net income. Earnings data is affected by accounting choices, whereas gross profit and operating income suffer fewer distortions from this. Forward Estimates Analysing a set of fundamental past data wont be the only proxy used to rebalance our portfolio: analysts stock recommendations will also be evaluated. Two different sets of forward data will be used. In the first place, an average of the consensus forecast of next fiscal years EPS divided by the current market value of each firm will be used. This forecast will be an average of the estimates of each analyst throughout the fourth quarter of year t for year t+1. The consensus mean recommendations from analysts from the fourth quarter of the year t for year t+1 will also be employed. These recommendations are a ranking from 1 to 5, with 1 signalling a strong buy and 5 a strong sell. This is the mean of the different analysts recommendation existing at that time for each individual stock. V.II Data Criteria and Universe To ensure a minimum amount of liquidity in our analysis, we pick the historical constituents of the SP500 Index as our universe of stocks. This results in our analysis not being driven by the performance of smaller capitalisation firms, for which data might not be readily available. As our analysis involves implementing a long/short strategy, the ability to do so with large capitalisation stocks in practice results much easier. Therefore, every year, the appropriate constituents in our portfolio are updated, reflecting the changes in the overall index. This implies that our universe of stocks closely replicate the SP 500 Index on a yearly basis. The constituents as of 1990 will first be extracted, and updated every year thereafter. The analysis is then limited to those companies with a positive market capitalization as of December of year t, as well as to those companies with at least 2 years of data, in order to perform all the analysis in a consistent universe of stocks. In order to conduct the analysis across sectors in a more uniform manner, certain companies were removed from the universe of stocks. This includes REITs, utility and financial firms, as denominated by CRSP. From this, a benchmark is constructed with our new universe of stocks; that is, all those fulfilling the above criteria. This benchmark is a value weighted portfolio of all the stocks for a given year, rebalanced yearly at the end of each previous year (December 31st). Therefore, being a market value weighted portfolio comprising most SP500 stocks, it should closely resemble the SP500 Index. Comparing the quarterly performance of both our benchmark and the index for the period to analyse between 1990 and 2015, and running a corresponding regression, it is found that they correlate with a coefficient of 99.17%. As seen by this observation, our universe of stocks bears similarities with the index, although the payoff at the end of the period differs. The benchmark provides a payoff of $11.13 for a $1 investment (or a 1113%) at the start of the period, in 1990. The SP500 index returns a payoff of $8.86 (886%) at the end of the period. This figures assume complete reinvestment of capital and a compounded growth rate. V.V Model We represent year t+1 to be the year for which the portfolios performance will be monitored, and year t to be the year in which the fundamental data which will estimate performance will be extracted. As most US companies have a fiscal year corresponding to the calendar year, our model will retrieve end of year fundamental data for these companies, corresponding to December year t, allow for a data release lag, and compute the portfolio. The lag in data release is introduced as companies dont disclose their annual financial statements until the quarter after their fiscal year end. This usually happens within two months, as observed from historical data. Taking this factor into account, the model will allow for a lag of one quarter, therefore allowing for information to be readily available to the public at each point in time. Denoting t.(x) as the xth quarter of year t, and t+1.(x) as the xth quarter of year t+1, the above implies extracting fundamental data as of t.(4), allowing for a lag in data release during t+1.(1) in order to construct the portfolio at t+1.(2). The performance will then be measured during one year from then. This model so far deals only with the companies which disclose their end of year information by the end of the calendar year, so a provision must be made for the proportionally low, but still significant, number of companies whose annual results are released at a different date. Hughen and Strauss (2015) tackled this issue by rebalancing quarterly their portfolio, but they recognized the limitations of using quarterly results rather than normalizing their ratios and profitability measures by using annual ones. Gray and Vogels (2012) work consists of an annually rebalanced portfolio as of June 30 every year. Their approach is to use, for firms with fiscal year ending within the last quarter of the previous year, or the first quarter of the year, those fundamentals. For companies with fiscal years ending after March 30, previous years fundamentals will be used. This implies that, no matter when the end of fiscal year is, the latest annual filling will always be employed to construct th eir portfolio, even when this filling is from the second quarter of the previous year. In the following model, the approach will be somewhat different, Therefore, first, a differentiation between the two strategies implemented should be made. Value weighted These buy-and-hold portfolios are attractive not only because they minimize trading costs, but because they are simple to implement from an operational perspective. Mention sector allocation using SICS merge Compustat and CRSP databases. Delisting returns. References Ball, R., Gerakos, J., Linnainmaa, J. and Nikolaev, V. (2015). Deflating profitability. Journal of Financial Economics, 117(2), pp.225-248. Bunn, O. and Shiller, R. (2014). Changing times, changing values. 1st ed. Cambridge, Mass. Dichev, I., Graham, J., Harvey, C. and Rajgopal, S. (n.d.). Earnings Quality: Evidence from the Field. SSRN Electronic Journal. Fama, E. and French, K. (1992). The Cross-Section of Expected Stock Returns. The Journal of Finance, 47(2), p.427. Fama, E. and French, K. (2006). Disappearing dividends: changing firm characteristics or lower propensity to pay?. 1st ed. Fama, E. and French, K. (2015). A five-factor asset pricing model. Journal of Financial Economics, 116(1), pp.1-22. Gray, W. and Vogel, J. (2012). Analyzing Valuation Measures: A Performance Horse-Race Over the Past 40 Years. SSRN Electronic Journal. Hughen, J. and Strauss, J. (2015). Portfolio Allocations Using Fundamental Ratios: Are Profitability Measures Effective in Selecting Firms and Sectors?. SSRN Electronic Journal. Jacobs, B. and Levy, K. (1993). Long/Short Equity Investing. The Journal of Portfolio Management, 20(1), pp.52-63. Loughran, T. and Wellman, J. (2011). New Evidence on the Relation between the Enterprise Multiple and Average Stock Returns. Journal of Financial and Quantitative Analysis, 46(06), pp.1629-1650. Michaud, R. (1993). Are Long-Short Equity Strategies Superior?. Financial Analysts Journal, 49(6), pp.44-49. Miller, E. (2001). Why the Low Returns to Beta and Other Forms of Risk. The Journal of Portfolio Management, 27(2), pp.40-55. Novy-Marx, R. (2010). The other side of value. 1st ed. Cambridge, MA: National Bureau of Economic Research. Welch, I. and Goyal, A. (2007). A Comprehensive Look at The Empirical Performance of Equity Premium Prediction. Review of Financial Studies, 21(4), pp.1455-1508.

Wednesday, November 13, 2019

U.S. Monetary Policy and What the Federal Reserve :: essays research papers

U.S. Monetary Policy and What the Federal Reserve does. According to the Congressional Budget Office monetary policy is, â€Å"The strategy of influencing movements of the money supply and interest rates to affect output and inflation. An "easy" monetary policy suggests faster growth of the money supply and initially lower short-term interest rates in an attempt to increase aggregate demand, but it may lead to a higher rate of inflation. A "tight" monetary policy suggests slower growth of the money supply and higher interest rates in the near term in an attempt to reduce inflationary pressure by lowering aggregate demand.† In the United States it is the Federal Reserve System that is responsible for defining and implementing these policies. In the United States the Federal Reserve is made up of a Board of Governors, which consists of seven members, all of whom are appointed by the president and confirmed by the Senate. Of these seven, the president appoints one to be chairman of the Board of Governors. The curre nt chairman of the United States Federal Reserve is Alan Greenspan. With the appointment of Alan Greenspan to chairman, monetary policy in the United States changed from a monetarism view, an approach based on a constant growth in the money supply, to a mixed policy. With a mixed policy, inflation is monitored and controled via the iterest rate that banks charge, along with an understanding of unemployment and business cycles. Only a few days ago chairman Greenspan adressed congress and stated that the â€Å"central bank would keep raising interest rates and gave little hint of when it might stop.† This increase of the interest rate would tend to slow inflation as well as possably decrease labor costs and increase productivity. The Federal reserve â€Å"views labor costs as the most important source of inflation, both because labor costs amount to more than two-thirds of total costs and because they can feed a self-perpetuating spiral of higher prices and higher wage demands.† So wat is the reason for the chairman of the Board of Governors to address congress? If the public is informed of the Federal reserves stance and commitment to lower or keep inflation in check we should see lower wages and in turn lower prices.

Monday, November 11, 2019

The Depth In Agnes Martin

Simple, subdued, serene – will be the adventurous description of the various insights on the totality of what Agnes Martin shared with the world of art.   Simple, subdued, serene – will also be the summarized description of what Agnes Martin’s many critics say of her work.   And, simple, subdued, serene – will be the captive element of what the reviews said of the Agnes Martin documentary â€Å"With My Back to the World†.Treading from abstract expressionism to minimalism, all of Agnes Martin’s life, works and story – as captured in â€Å"With My Back to the World; and, as per the perspective of its director, Mary Lance; and, as per all the insights, critiques, reviews and commentaries – are but a symphony of illustrations and expressions as to how the delightful artist treated, educated and revealed to the world the mystique of life.Unanimously acknowledging the preferred solitude and reclusion of the great artist, they rec ognized Agnes Martin to have nevertheless proven the presence of soulfulness and intensity in her chosen art form, despite of living in silence.The interesting fact though is that in the profundity of her silence vis-à  -vis the silence of her profundity, Agnes Martin allowed Mary Lance to interview her and shoot the documentary film while Agnes Martin is working and right there in her New Mexico studio.Together with the documentary â€Å"With My Back to the World†; together with all her works; together with the designation of ARTnews Magazine in 2002 as one of the world’s top ten livings artists – the lines and hues of Agnes Martin therefore became the canopy from where we view the spirit of Taosim that inspired her as she reveal her creativity and philosophy.AGNES MARTIN – HER LIFE TO THE BEHOLDER:Born on March 22, 1912 in Makin, Saskatchewan, Canada – Agnes Martin nevertheless grew up in Vancouver, British Columbia.   They were four siblings in the family, but her father died when she was only 2 years old.   From thenon, Agnes’ mother steadfastly stood by her resolve to raise her brood by her self.   Such aura of strength and independence etched in the mind of the growing Agnes.In 1931 she moved to the United States and attended The Western Washington College of Education in Bellingham; the Teachers College of the Columbia University in New York and the University of New Mexico in Albuquerque.   She has earned her Bachelors degree in 1942 and her Masters Degree in 1952.   She acquired her American citizenship in 1950.She was an art teacher in University of New Mexico and other public schools in Washington and Delaware from 1947 to 1948 and in Eastern Oregon College in 1952 to 1953.   With the paintings Agnes Martin accumulated, Betty Parsons Gallery offered to handle her work if she moves to New York City.It was in 1958 that Agnes Martin was given her first solo exhibition in the said gallery.   It wa s a period when abstract expressionism is at its height as an art form and likewise the seeming dawn of minimalism is soon going to be witnessed.In the Coenties Slip in Lower Manhattan where she lived, Agnes Martin huddled with artists like Ellsworth Kelly, Robert Indiana, Jasper Johns, Robert Rauschenberg, Jack Youngerman.Agnes Martin, took a break from painting from 1967 to 1974 as she ventured into filmmaking.   It was in 1976 that she produced the film â€Å"Gabriel†.  Ã‚   The subject of the film is a boy who incessantly went to explore the world in his own quiet ways.Thereafter she resumed her painting wherein her exhibitions were held various museums in the succeeding years, like – in the Institute of Contemporary Art, Philadelphia, Pennsylvania; Pace Gallery, New York; Stedelijk Museum, Amsterdam;Whitney Museum of American Art, New York; the Harwood Museum of Art at the University of New Mexico.   There are also other international art galleries that have invited and showcased the works of Agnes Martin.Agnes Martin was inducted in 1989 as a member of the American Academy and Institute of Arts and Letters in New York.   She received the Gold Lion Award at the Venice Biennale in 1997 for her lifetime achievement and contribution in contemporary art.   The National Endowment for Arts granted in 1998 to Agnes Martin the National Medal of Arts.In 1997, the highlight of her achievement was the establishment of the Agnes Martin Gallery in New Mexico, where her work is showcased.   Otherwise, Sotheby and other auction houses do trade in great value the works of this great, enigmatic artist.AGNES MARTIN – HER WORKS TO THE CONNOISSEUR:Among buyers, users, collectors, critiques – all connoisseurs discern and judge in a balanced mix of subjectivity, relativity, objectivity and economics.   Value for value there is thin line in visual arts that does not only rest on what is seen – there must be something â€Å"beyon d†.The utter simplicity and directness of the creation of Agnes Martin, within the perfection of horizontal and vertical lines in her grids and as per the hues she applied with her own brand of discernment, have all been acknowledged as very expressive and moving.â€Å"The Taos artist’s grids, some of them traced in lines of graphite, so faint they seem to be emerging from or disappearing into a mist†¦..Martin’s†¦.[is] an art of invisibility.   It’s tempting to ready a ‘beyond’ into them†¦Ã¢â‚¬ ¦Ã¢â‚¬  (Lee, 1998)You therefore view the work with great challenge and enthusiasm.   You have to really get close to the painting.   You dissect every pattern and color.   You try to find the hints and clues.   You feel mystified.   You search for the meaning.It is because Agnes Martin invites a â€Å"relationship† with the viewer of her art.   She wants a direct and distinctive communication between her art and he r viewer.   Then, you will see the beauty, the finesse, the simplicity of just the perfect, varied lines.   â€Å"†¦.what they give back in their simplicity and richness, is indescribably moving.†Ã‚   (Lee, 1998)Agnes Martin’s painting convinces that there is a palpable person and a palpable thought that is put into the work.   Subtly, there are little and misty wobbles and breaks in the hues and lines – they tease and try to see if you are paying attention to details.The purpose of imperfection is to achieve perfection.   It challenges perception of what is between and/or the difference between real and ideal.Indeed her works produced in a span of 60 odd years is visionary and timeless.   Despite the temperament of her artistic times that traversed between minimalism to abstract expressionism, Agnes Martin humbly demurs from being classified as a spearhead, neither the bridge between the two art forms.The transition in the art form of Agnes Marti n is akin to her transition in learning and knowing and realizing everything about her and her surroundings and the society she lived with.Even in the eventual solitude she chose, Agnes Martin is still conscious of what being in a community of man is all about.   Her earlier ventures were in still life and portrait painting.   Therefore, she went along the tide of the prevailing abstract expressionism in the 1940’s to the early 1950’s.

Friday, November 8, 2019

Globing Warming essays

Globing Warming essays Global Warming: Societys Warning I feel strongly that global warming is affecting my community because its effects reach across every town in every country across the entire planet. Global warming is sometimes referred to as the greenhouse effect. The greenhouse effect is the absorption of energy radiated from the Earth's surface by carbon dioxide and other gases in the atmosphere, causing the atmosphere to become warmer. The greenhouse effect is what is causing the temperature on the Earth to rise, and creating many problems that will begin to occur in the coming decades. For the last 10,000 years, the Earth's climate has been extraordinarily beneficial to mankind. "Humans have prospered tremendously well under a benign atmosphere," (Bates 28). Today, however, major changes are taking place. People are conducting an inadvertent global experiment by changing the face of the entire planet. We are destroying the ozone layer, which allows life to exist on the Earth's surface. All of these activities are unfavorably al tering the composition of the biosphere and the Earth's heat balance. If we do not slow down our use of fossil fuels and stop destroying, the forests, the world could become hotter than it has been in the past million years. Average global temperatures have risen 1 degree Fahrenheit over the last century. If carbon dioxide and other greenhouse gases continue to spill into the atmosphere, global temperatures could rise five to 10 degrees by the middle of the next century. The warning will be the greatest at the higher latitudes of the Northern Hemisphere, with the largest temperature rises occurring in winter. Most areas will experience summertime highs well above 100 degrees Fahrenheit. New temperature records will be set each year. As a possible prelude to global warming, the decade of the 1980's has had the six hottest years of the century (Erandson 18-22). Atmospheric disturbances brought o...

Wednesday, November 6, 2019

Therefore and Therefor

Therefore and Therefor Therefore and Therefor Therefore and Therefor By Maeve Maddox After reading the sobeit/so be it article, Shirley in Berkeley has this to say: Sobeit sounds like legal-speak to me.   Working as a temp for a lawyer, I asked about their dropping the e from therefore and was told that it was legal usage: therefor meant for that, and with an e on the end, meant hence. therefor: adv. for that [thing]; for that, for it Ex. I will give you my pocket knife if you will give me your watch therefor. therefore: adv.consequently, hence Ex. I think, therefore I am. I was afraid; therefore I ran. Sure enough, lawyers have more use for the form therefor than the rest of us. respondent will not know how to defend against petitioners case because it does not know how petitioner is calculating the charges, and the justifications therefor. BOND ORDINANCE PROVIDING FOR THE RECONSTRUCTION OF WATER STREET AND APPROPRIATING $170,000 THEREFOR As a noun therefore can mean a conclusion or inference: Let him first answer our Therefores, and wee will quickly answer his Wherefores. (example in OED) There is also a therefore symbol: In a mathematical proof, the therefore sign . . . is a symbol that is sometimes placed before a logical consequence, such as the conclusion of a syllogism. The symbol consists of three dots placed in an upright triangle. In reading, it is pronounced Therefore, †¦. It is Unicode character U+2234 and on some systems may be entered using ALT-8756 (the decimal version of 2234). While it is not generally used in formal writing, it is often used in mathematics and shorthand. Wikipedia Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Vocabulary category, check our popular posts, or choose a related post below:70 "Home" Idioms and ExpressionsPeace of Mind and A Piece of One's MindCaptain vs. Master

Monday, November 4, 2019

Present Status and Future Development of Marketing at Nike Assignment

Present Status and Future Development of Marketing at Nike - Assignment Example Additionally, Nike’s marketing strategy has continued to evolve through diversification. For example, when Nike’s sales started to stagnate in 1988, it realized that solely focusing marketing efforts on specific market segments â€Å"could only grow sales and profits so far† (Hill & Jones, 2009). As a result, Nike diversified market development into other areas such as aerobics, golf, and basketball and implemented the 4Ps marketing mix; namely product, price, place, and promotion (Pride & Ferrell, 2008). Furthermore, Nike’s marketing strategy also involved entering new markets by purchasing established footwear companies such as Converse and Cole Haan (Hill & Jones, 2009, p.200). In addition to diversifying, Nike’s marketing strategy has been dramatically redefined in the 21st century as a result of the interrelationship between globalization and the e-commerce business model (Pride & Ferrell, 2008). The incoming of the second media age and multiple digital platforms have created new societal trends and business opportunities through the multimedia business model, which has challenged pre-existing methods of information dissemination. On one side of the spectrum, this has led to increasing commercialization of the customer, which is further reflected by changing consumer habits and multi-chain retail strategy (Vollmer & Precourt, 2008). On the other side of the spectrum, the digital era has redefined how the people interact with each other, thereby marking a shift in societal relationships and trends, which in turn informs cultural norms and enables innovation in building consumer/business relationships. Appurtenant to the digital revolution has been the radicalization of communication modes, with the inception of chat rooms, email, instant messaging and blogs.  

Saturday, November 2, 2019

Explain Einsteins theory of relativity and its impact upon science and Essay

Explain Einsteins theory of relativity and its impact upon science and society - Essay Example He treated matter and energy as exchangeable, not distinct. In doing so, he laid the basis for controlling the release of energy from the atom. Thus, Einstein was one of the fathers of the nuclear age (Kevles, 1989). Setting out from the discoveries of the new quantum mechanics, he showed that light travels through space in a quantum form (as bundles of energy). This was clearly in contradiction to the previously accepted theory of light as a wave. In effect, Einstein revived the old corpuscular theory of light, but in an entirely different way. Here light was shown as a new kind of particle with duel nature, simultaneously displaying the properties of a particle and a wave. This startling theory made possible the retention of all the great discoveries of 19th century optics, including spectroscopes, as well as Maxwell’s equation. Einstein’s discovery of the law of equivalence of mass and energy is expressed in his famous equation E = mc2, which expresses the colossal energies locked up in the atom. This is the source of all the concentrated energy in the universe. The symbol ‘e’ represents energy (in ergs), ‘m’ stands for mass (in grams) and ‘c’ is the speed of light (in centimeters per second). The actual value of c2 is 900 billion billion. That is to say, the conversion of one gram of energy locked up in matter will produce a staggering 900 billion billion ergs. Einstein predicted that the mass of a moving object would increase at very high speeds. The discoveries of quantum mechanics demonstrated the correctness of the special theory of relativity, not only qualitatively, but quantitatively. The predictions of special relativity have been shown to correspond to the observed facts. Scientists discovered by experiment that gamma-rays could produce atomic particles, transforming the energy of light into matter. They also found that the minimum energy required to create a particle depended on its