Come up with topic and I will discuss it with the professor then u can Essay

Come up with topic and I will discuss it with the professor then u can start writing - Essay Example Corporate income tax depends on the net taxable income. Where taxable income surpasses $335,000, all taxable income is subject to tax at 34 percent or 35 percent. Tax rate enforced below the federal level fluctuate from 1 percent to over 16 percent. Regulated Investment Companies (RICs) are the domestic corporations which during the taxable year are listed under the Investment Companies Act of 1940, as amended as a unit investment trust or a management company or to be treated as a business development company under such Act. This paper will focus on tax treatment of regulated investment companies and the corporate income tax and how do they differ from one another. Historical Content During the past decade, the corporate income tax has been the centre of attention of much debate and criticism in the United States (U.S.). It may be due to the low level of business investment in US and it has been also condemned as a primarily illogical and unfair tax because corporations are taxed as independent entities, in spite of the tax brackets of individual shareholders. The recent tax acts have lessened the corporate tax burden by substituting the system of several asset depreciation classes with three capital recovery classes. Business structures can be written off over fifteen years, other equipment over five years and light equipment over three years (Auerbach, 451-458). The corporate tax is the 3rd major source of federal revenue after the payroll taxes and the individual income tax. Regulated Investment Companies are listed under the Investment Companies Act of 1940. RICs escape corporate taxes due to the reason that they make profit from investments through shareholders and they do not have any real operations. Thus, they pass profits to shareholders and circumvent double taxation. They meet definite standards and therefore do not have to pay federal income taxes on interest, distribution of dividends and realized capital gains. Economic Incidence of the Policy Sh areholders must be the citizens or residents of United States. The tax is imposed on the profits of the resident corporations of U.S. at graduated rates ranging from 15-35%. Corporate shareholders pay individual income tax on capital gains and on dividends from sale of their shares. The corporate tax rules which are faced by the U.S. based corporations on their profits from United States business activities, of which the foreign multinational companies are the owner, are same as that of U.S. owned companies. An increase in the corporate income tax increases the cost of capital in the corporate sectors due to the burden of tax-wedge. The return to corporate capital falls as capital flows from corporate sector to non corporate sector. For high capital intensive industries, corporate income tax increases the prices of goods and services and for low capital intensive industries, prices falls with the tax. U.S. capital bears the small incidence of the corporate income tax and labour bear s more or less 100% of the incidence of the corporate income tax. The domestic corporations who bear the economic incidence and therefore opt to be taxed as a RIC are as follows: RIC must be a corporation which should be registered under the Investment Companies Act as a unit investment trust or as a management company. It may also be a common trust. Each series fund which is ascertained by a RIC will be treated as a separate corporation and they should separately meet all the qualification

The role of the IMF in helping poor and debt-troubled countries Case Study - 5

The role of the IMF in helping poor and debt-troubled countries - Case Study Example International Monetary Fund is financial institution that amasses its funds through contributions from countries using quota systems. These resources are however, availed to developing countries to boost their economic growth, reduce poverty, reduce unemployment, and provide enabling environment for political stability. Poor and debt-troubled countries need financial support and International Monetary Fund plays instrumental role in ensuring availability of favorable exchange rates and money that is used to improve infrastructure, boost education, and run day-to-day activities of the government. Despite the help, International Monetary Fund levies high charges on countries, which borrow money thus rendering them slaves of the developed countries because they cannot pay the debts within the agreed time. Poor countries continue being poor because the International Monetary Fund regulates the policies that govern the rates and value of money ( Copelovitch, 2010). Financial assistance from IMF is advanced to countries facing financial problems for instances, balance of payment deficit, and unfavorable terms of trade. In this regard, actual and potential countries in financial difficulties are assisted. Actual borrowers are countries, which need financial support to run their routine activities and this includes states that have borrowed money at one instance. Potential borrowers are countries that are vulnerable for instance, under civil war, gained independence, and facing economic recession. Furthermore, borrowing countries have to be member states of IMF and have to abide by the rules and regulations laid down by the organization. The countries have to be aware of the penalties and processes to be followed before receiving funding. Abiding by the strategies, visions, and missions of the organization aids in reducing default rate. On the other hand, the projects and programs which the money is borrowed for must be

Impact of E-Banking in the UK

Impact of E-Banking in the UK Abstract This research paper will compare and contrast the characteristics of the traditional banking and e-banking. Additionally, research will identify the similarities and differences between the virtual and the real-world banking industry customers. Distinguish the difference between the world of e-banking and the real world in terms of customer communications. Determine which traditional customer communications can and cannot be successfully ported to the world of e-banking. Assess what new communications techniques are uniquely available in the world of e-banking. And demonstrate how the use of multimedia technologies creates effective e-banking websites. Discussion of customer communication strategies and real-world examples will be presented. Chapter 1-Introduction 1.1 Internet Banking in the United Kingdom and Europe In the United Kingdom, Internet banking services are available and provided by twelve Internet banking services providers. The Egg, for example, is an Internet banking service provider (exclude current account features) that has more than 150,000 customers visited their web site during October 1998 to July 1999. The Internet banking services providers in the U.K. have encountered an increasing demand for cross boarder payment transactions for smaller amount of cash and payment over the Internet. Many banks continue to develop and launch new banking services on the Internet in order to satisfy and meet their Internet-based customer requirements in term of time, ease of use, security and privacy in the U.K. (Birch and Young, 1997; Mathew and Dagi, 1996; Gandy and Brierley, 1997). In June 1999, the U.K. and eight other western European countries: France, Spain, Portugal, Germany, Switzerland, Holland, Luxembourg, and Scandinavia have become leading nations in providing Internet banking services in Europe. Germany also has been rated as the nation that has the highest number of Internet banking services providers in Europe (Blue Sky International Marketing, 1999). Although the UK has smaller number of Internet banking sites on the Internet than in Germany, but it has been rated as the highest quality and functionality at no additional charges to their customers in Europe. However, there are two banks in the U.K. that charge additional fees for Internet banking services, Nat west and NPBS In Scotland, the Bank of Scotland does not provide 24 hours Internet banking services via the web site. Customers can not access to Bank of Scotland web site between 1:00 a.m. and 5:00 a.m. during weekdays and between midnight and 5:00 a.m. during weekends. During the bank web site is not accessible, a daily back office operations and maintenance is performed to assure accuracy and security according to local restrictions, rules and regulations. Most of customers in the U.K. and European countries use Internet banking services to inquire about their outstanding balances in saving and checking accounts, and details about their latest or last transactions for their daily reconciliation. The frequency to access the customers account per day is quite high. Many banks, therefore, have provided many view only features for customers to inquiry and view the information on their accounts as often as they want per day. As a result, the banks have reduced both operating costs and work hours for their staffs at call centers and local branches for frequently asked (FAQ) and repetitive transactions. 1.2 E-banking security provokes fear or indifference for the British public A recent study by analyst Forrester Research has unearthed conflicting views about the safety or otherwise of online banking. The survey of 11,300 UK net users found that while many online banking consumers are complacent about security, a large minority have given up online banking as a direct result of security fears. Most UK net users are aware of security threats like phishing and keystroke logging but are unfazed by these risks and expect their banks to deal with the problem, even though these attacks are thrown against the consumers PCs rather than a banks own systems. Ideally users want banks to supply a blanket guarantee against fraud. Based on responses to its survey, Forrester concludes that an estimated 600,000 from a total of 15m subscribers have ditched online banking as a direct result of security fears. Forrester reckons that users are confused and banks need to step up their efforts to educate customers about online fraud. Measures to restrict the functionality of some accounts (for example controlling how much money can be transferred on any day), stronger internet banking authentication and improved customer profiling are also needed to defend against security threats, it advises. In addition to people who plan to drop net banking accounts as a result of security fears, another fifth of net users say that security fears will stop them ever banking online. 1.3 UK Consumers shy away from e-banking Customers still value direct contact with real people in their bank branch. A vast majority of bank customers thinks that an online banking service is not important for their relationship with a bank. According to a survey one third of customers rate e-banking as an important service, and of those only 22% actually use it. Even more unwelcome news for many banks will be the poll finding that more than 30% of customers do not even know whether their bank provides online services at all. The findings contrast starkly with the market expectations among banking executives. In an earlier Deloitte survey, financial services executives had predicted that customers would be eager to do their banking on the web. 1.3.1 Cutting costs, not customer care Julian Badcock, retail financial services analyst at Deloitte, said customers were certainly not rating the internet or interactive services as a key factor in measuring their satisfaction with their banking service provider. A responsive service and the feeling of being treated as a valued customer were much more likely to make consumers feel happy with their bank. And more than 50% think it is important to have quick and easy access to a local branch. The findings of the report make bitter reading for backers of internet banking pure plays like Virgin and Egg. Julian Badcocks conclusion: 90% of customers at present [are] showing no interest in obtaining financial services from new entrants. Established players, meanwhile, have to worry whether their huge investment in online banking is money well spent. The need for expensive customer care does not sit nicely next to the cost-driven move to online banking. 1.3.2 Educating customers Long-term hopes for cost savings will only materialize, if consumers can be persuaded to use the services. A recent survey by consulting firm Cap Gemini Ernst Young had found that currently just 4% of all bank transactions in Europe are done online, a number expected to rise to 25% by 2003. In the United States just 3% of transactions are done online, and there growth prospects are more modest, with the share of online transactions seen to reach 12% within three years. Such growth rates, however, can only happen if banks begin to educate their customers about the benefits of online banking, Deloittes analysts say. Chapter 2-Literature Review 2.1 Executive Summary How secure is online banking for the regular and not so regular internet user? The internet is becoming a more globally known form of communication around the world these days and its used largely in conjunction with personal/business tools to expand the horizons of e-commerce. As many small to large business follow the trend, looking for soaring profits, by placing their business online, they are left to find a threat in the online world in terms of security issues. This can be extensive in regards to online banks and financial institutions that provide the businesses with their transactions, along with the present threats of personal privacy and protection flaws associated with banking online. Online banking is not just about viewing accounts online, or paying bills. It has more to that, it include transferring of funds, shopping online etc. As a proven fact, felonies consisting of fraudulent behavior have attacked national Australian banks and are currently in legal dilemma over the astounding issue. Presently, uncertain of the root of the crime, banks have been forced into an unacceptable situation in regards to customers bank accounts. With alarming issues of security online, there are a few steps that can be taken in order to prevent such matters from arising or basically in order to avoid hackers into your private life. 2.2 The internet and its benefits As todays busy world is immensely changing in the depth of telecommunications whilst advancing in the technological age, we are left to find minimal time to do the basic necessities such as shopping, banking relaxing. So along came e-Shopping, and e-Banking. Online banking is for you if it will save you time and money. E-commerce plays a major role in how the internet is used in terms of a consumer business, or B2B relationship, but there just isnt enough security online. 2.3 What is online banking about? nline banking may be considered just as a system where you view your accounts and pay bills, but it is not just about that. Online banking is about shopping online, transferring funds, viewing transactions histories, servicing your accounts online and getting in contact with your bank around the clock. As shown by the statistics, lenience to banking online can be proven handy. The convenience can be dominant, since not only is travel time reduced, but ATM machines, telephone banking or banking by mail are often unnecessary. Technology continues to make online banking, easier for the average consumer. Not only regular consumers, but also many small, medium and large businesses are finding it rather efficient. Bankrate.com (28-10-2005) In the past, online banking consisted largely of banks partnering with large software companies such as Microsoft, to provide the online banking services within their personal finance software. Microsoft.com (1996) this led to the first of two approaches referred to as the client-based system, allowing customers to use the money management software and their own computers to access the bank via a modem and a phone line. The second approach is that of the newer Internet-based systems which allow customers to simply dial in using any computer and use the banks software. From a business perspective, they actually have more danger associated to their business, than a consumer may. Home PCs are, as confirmed by all IT Security vendors and specialists, the least protected albassera.com (21-06-2002). Ocp.co.uk (No Date) describes best the implications businesses could face with the threat of online security: Financial savings that online banking has to offer. Increasing supply power by reaching a more global target Attract new customers And therefore the disadvantages that may occur to a business: Level of learning for each customer may vary, or may even be too difficult to do online transactions. There a potential threat of the site being hacked Lost information or errors in banking can lead to a loss of business Not all clientele may be happy with making purchases online. Initial set-up costs and on-going cost can be rather expensive to keep the site up-to-date. Proven by the disadvantages list, there are a lot of threats placed on a business in order to consider a place in the e-market. 2.4 Internet Banking Banks are not the only commercial organizations locked in a love hate relationship with the Internet. On the one hand, cheap and ubiquitous, the Internet offers a potentially attractive way to serve customers without the heavy costs associated with the traditional bricks and mortar business model. On the other hand, the Internet is fundamentally open and insecure. It is the very antithesis of the private networks that industry and commerce have entrusted with carrying transactions and other critical information. Despite the dichotomy, the Net continues to grow ever more rapidly in importance to the commercial world. From books and airline tickets to share trading and the filing of corporation tax returns, new users for the Net are proliferating. In most cases, the incentives of Internet Banking are either the need to meet competitive challenges and customers demand or the need to cut costs. As reported by The Times of UK on Internet banking, a banking transaction action at a Bank costs around $1.07, $0.27 via an ATM and just one-cent on the Internet. The decision to use the net is rarely a technical one. Banks have opportunities in the new payments gateway in areas such as purchasing platforms, certification, trade services and trade finance, electronic bill presentment and payment, consumer Internet payments and also plethora of competition. There are five main reasons for going online. Firstly, Internet banking removes the need for physical presence in new territories a web site gives global presence without in-country set up and ongoing infrastructure costs. Secondly, success carries few penalties because growth can be accommodated centrally, without recourse to building and operating new service centres (bank branches in retail terms). Thirdly, the time to market new products and services is dramatically reduced due to the standardized technology that characterizes the Internet. Fourthly, there is the chance to preach to the converted. Marketing costs in this medium can be concentrated on creating an effective Website that attracts potential clients. Finally, the Internet fits well with the characteristics of Corporate banking where thousands of transactions which can be conducted daily and multiple updates provided, individuals can work easily from different locations and there is a growing belief that security fear s will be resolved by evolving techniques and technology. For internet banking to work effectively, it needs to address the key issue of security. In conventional banking we use written references or prior knowledge to assure ourselves that we know who are doing business with us. We use controls to ensure that non parties are not party to a confidential deal cannot see or tamper with paper based information that is stored and in transit. And we use pen on paper signatures as an irrevocable sign of our agreement. Banks have long used encryption devices to scramble inter-branch links and communications with corporate customers. More recently firewalls and password tokens have been introduced to provide access control. In addition to security, quality of services is another key area in providing successful e-banking. Any customer is only a click away from a competitor elsewhere, so it is imperative that the e-banking experience reflects an optimal encounter each and every time. As simple as this sounds, developing the network management capabilities to assess and respond to the end user experience is no trivial matter. Much of the discussion so far has focused on e-banking as provided over the Web but the Web is only a beginning. The changing shape of Internet banking in the future will be fascinating to watch. Internet banking is a robust and highly practical solution but has delivered something of a surprise too. As Internet banking becomes more common, potential customers have increasing choice. The more informed among them are shopping for service not just on the basis of obvious criteria such as interest rates and functionality, but also on the quality of the security being provided. For those banks still debating the best Internet approach, the advice is to start small but start as early as possible. The number of customers and services should be limited initially while the potential of the technology is learned and the security and services levels are assured. 2.5 Online banking security Nowadays, online banking is used primarily through the internet-based system of customer/business to bank. All online transactions should be governed by an SSL (Secure Socket Layer) encryption. Gelman (1998, pg 39) states that information sent over the internet may pass through dozens of different computer systems on the way to its destination. This basically means the information being sent is to be encoded before transmitted from the destination computer to the banks computer. Knowing that your bank account details are being passed on to many other computers in order to reach its destination, doesnt exactly make you feel safe and sound about using online banking. A customers password or pass code serves as the first level of protection and is digitally sent separately for security purposes. This is also accompanied by the issuing of a Logon ID, which is a unique membership number. Currently online businesses and financial institutions face great danger as online banking can lead to fraudulent behavior. Atansov (2001) Credit card generators are readily available to download The impact of such a fact has left many internet users wondering about the security issues in regards to their personal information, their banking details and most of all their internet surfing privacy. From a recent survey it was shown that a massive 30% of regular internet users were too nervous to use online banking. 2.6 Current online banking security issue As it may have come to recent concern, most of the banks were beaten by an unknown source luring its customers to accidentally reveal their account details. An email was sent out to customers stating that their account details needed renewing and that if they followed simple steps provided they could renew their accounts adequately. Some Net Bank customers have been deceived into providing their Net Bank client number and password as a result of a spam email which was widely circulated in UK. As none of the customers were aware that such a scam could happen, they gave their Login IDs, Passwords and account information away to very deceitful criminals. 2.7 An outcome about online banking security and its future In the analysis for online banking security, many precautions can be taken in order to prevent trouble occurring in regards to account details, personal details and security information. Customers of online banking must play their part in securing online banking by helping to safeguard information, which can be done by protecting their Logon ID and Password from misuses. These may include things like not telling other people their Login ID and/or Passwords, not using public computers to access their bank account information and being able to tell the difference of a secure and non-secure website. The future can only hold a solution for the current problem of online security, which can be solved in many different ways. Its best to avoid internet banking for the current moment and wait until there is an upgrade on its security. As many consumers are still nervous about using the internet for banking, the issue of security will be a thing of the past, just at this particular moment it shouldnt be overlooked. Chapter 3-Research Methodology 3.1 Evaluation of five E-Banking Sites in the UK There are two distinct models of E-Banking sites: Pure Cyber banks; e.g. in the UK, Cahoots, Egg, First Direct and Smile, which only have an Internet presence; Traditional banks that provide E-Banking to complement retail banking, e.g. In the UK, Barclays, Nationwide and HSBC are some of the traditional banks that have an Internet presence to complement their brick and mortar branches. Not all the banks offer the full range of services on the Internet; banks in both the aforementioned groups offer a wide range of services. These include personal banking, commercial banking for both small businesses and large corporations, loan application services. Financial services such as applying for an Individual Savings Account (ISA), opening an E-Account, applying for a mortgage, etc. 3.2 Methodology for Evaluation of E- Banking sites: I chose five E-Banking sites: Egg, First Direct, and Smile in the pure cyber bank variety, and E- banking sites of Nationwide and Barclays, which also have physical branches. Aims and objectives: To determine the ease of applying the evaluation instrument based on the e-SERVICE framework; To demonstrate that an E-Commerce environment should not only have a usable Web site in conventional HCI or Usability terms, but should provide service quality that meets or exceeds the customers expectations. 3.3 Research Method The research method involved conducting heuristic evaluations of the E-Banking sites. Heuristic evaluations involve inspecting the user interface to check its conformance against a set of heuristics or design principles (Nielsen, 1993). The heuristic evaluations involved two steps: 1. First of all I conducted usability heuristic evaluation. We applied an evaluation instrument consisting of several sub-heuristics of the usability heuristics approach. Provide an effective home page are: Ensure intuitive access and logical progression to key user tasks; Integrate clear yet usable branding; Ensure visual elements do not compromise usability; Terminology should relate to the users tasks and not marketing speak; Provide appropriate Metaphor for navigation from the home page; Simplicity or busy is either appropriate? The heuristics in Table 2 and the sub-heuristics in the usability evaluation instrument (which is available from the authors) were derived from several sources in the literature and Web sites (e.g. www.usableweb.com, Nielsens www.useit.com, IBM Web guidelines). The list of heuristics was also refined and updated during the authors experience of conducting usability evaluations of E-Commerce sites as a part of their consultancy activities. 2. Secondly I conducted heuristic evaluations of the five sites with respect to the e-CRM heuristics using the e-SERVQUAL evaluation instrument. (Based on the e-SERVQUAL framework). Table 2: Usability Heuristics Provide an effective home page Design a natural and manageable structure Provide an aesthetic minimalist Design Enable easy and intuitive navigation Ensure Consistency Support the User I considered the customer task scenarios listed in Table 3. The customer task scenarios presented here describe key situations of customers interaction with an E-Banking environment. Task scenarios are realistic, concrete and specific and help to guide the evaluator through heuristic evaluations. The evaluator (usability expert) interacts with the E- Commerce site to role-play a stereotypical customer and conducts the customer task scenario. While walking through the scenario and navigating through the site, the evaluator checks for the sites conformance against the heuristics, and makes a note of situations in the scenario where the E-Commerce environment does not adhere to the heuristics. Chapter 4- Research Findings 4.1 Internet Banking Internet, a global system of computer networks, first appeared in 1969 under the name Advanced Research Projects Agency Network in the United States (PBS Online, 2003). At present, about 13 millions serves are linked to the Internet across the globe, 99 per cent of which are located in advanced countries (CSE Online, 2003). Many banks use the Internet to offer services for both domestic and foreign consumers. At an advanced level, Internet banking is called transactional online banking, because it involves provision of facilities such as accessing accounts, funds transfer and buying financial products or services online (Karjaluoto, Mattila and Pento, 2001, p. 348). The Internet also helps banks penetrate other financial markets without requiring their physical presence in those markets. Miklaszewska (1998) identified four roles for the Internet in a modern banking industry. First, it facilitates financial transactions between banks and their consumers. Second, it gives financial institutions permanent access to financial information. Third, the Internet connects a banks head office to its branches. Finally electronic banking lets customers check their account information, pay bills, transfer funds between accounts, and perform other functions. Customers will soon have access to additional services such as online stock and bond trading (Miklasewska, 1998, p. 283). The Internet gives financial institutions various opportunities to conduct their various financial transactions. It enables banks to introduce international payments. It also helps banks cut time, money and risk. Many transactions can be done through the Internet. Availability of data through the Internet helps both banks and consumers reduce risk-taking in their financial transactions. Usually banks use Internet for publicity purposes, which include informing the public about the characteristics of financial products (e.g., commission rate, type of accounts available within the bank, interest rate on lending and borrowing, etc.). Large banks such as Citibank offer On-line LC issuance services to traders and cross-border finance facilities to foreign investors. Respondents noted that the response to those Internet services is high. Internet improves banks delivery system. But, the branch remains the main channel for delivering banking services in developing countries. Individuals still prefer face-to-face banking rather than buying financial services via the telephone or the Internet. The removal of barriers on the use of new technologies would encourage banks to invest in e-commerce and TV banking. The Internet improves two essential factors in global banking businesses: time and location (Oxford Analytical Citibank, 1999). The time needed to access bank services through the Web is extremely short. The Internet is also available everywhere in the world. As a result, Internet technology has globalised the banking industry; many banks use e-banking to expand their market share abroad. This section has shown that the Internet is a means to penetrate new markets without a physical presence in the host country. It enables banks cut their costs and to provide large packages of services in short space of time. The result is an increase in banks output levels and boost in their profit margin. 4.2 Advanced Information Technology and Banking Efficiency The Internet increases banks efficiency by helping them reduce the cost of producing and delivering financial services. The Internet alters the pricing strategy of the banking product. Banks price their products at the right level for the ‘electronic market. The price of financial services is usually lower via the Internet than in the branch (Jun and Cai, 2001); this has made the Internet an attractive banking environment for clients. As profit margin decreases, new products are delivered through new channels, retail services and securities being the main areas of change. Global banks also use the Internet to expand their activities and to earn new market share (Oxford Analytical Citibank, 1999). The Internet enhances competition in the banking sector as many non- banking institutions offer their services through Internet channels. Banks also face severe competition on the lending side from global markets. Financial service clients have access to all information about products (e.g. pricing and characteristics) through the Web. This has increased transparency and reduced the cost of financial instruments. Therefore, banks have to apply different mechanisms for pricing their products. As shown in Table 1 the number of banks branches will decrease as electronic distribution channels become more popular. Internet also enhances the delivery of large range of financial products. These improve banking efficiency by facilitating payment processing. The goal is to attain high value-added products. The Internet plays a vital role in the key challenges facing Financial Services Institutions today. It provides a tremendous opportunity for Financial Services Institutions to reduce transaction costs, exploit new markets and roll products much faster than was possible via traditional channels (Banker, 2000, p. 4. Bank managers stressed that the Internet enhances the global competitiveness of financial institutions by increasing their output levels.4 The Internet is also a means to manage business-to-business5 or business-to-customers transactions effectively. A strong Internet infrastructure is necessary to allow banks improve their electronic data interchange.6 Co-operation between telecommunication firms and financial institutions facilitate the modernization of online banking. Increased capital investments and clear rules for online banking also fosters the growth of e-business activities and enhance market transparency (interview notes, 2003). Finally, bankers surveyed in this research believe that the Internet is a means to boost the relationship between providers and users of financial services in the marketplace. The Internet allows market participants to access all the standard banking services at a low price. This motivates individuals and investors to purchase large packages of banking services via the Internet. 4.3 Problems Associated with the Advances in Information Technology The major problem facing Internet banking is the physical delivery of cash. Clients regularly receive financial information through banks Web sites. Nevertheless, it is impossible to make a physical delivery of cash through the Internet. Clients also require instant access to products prices and financial information. The very concept of the end-of-day is meaningless in the world of e-commerce, where customers may be anywhere in the world and demand consistent and instant levels of services (Banker, 2000, p. 6). Banks should promote innovation to become more competitive. The Website must also complement branch services, meaning that products offered via the Internet have to describe how they supplement or replace services available inside the branch. Advantages of e-banking: Low costs (particularly fixed costs); Cross-border expansion; High franchise value; Strength link with customers; Market share growth; Financial information potential; Simple to access. Disadvantages of e-banking New competitors; Complicate services valuation; Development costs; Low security. Source: Salomon Smith

The Character of Jurgid Rudkis in Upton Sinclairs The Jungle :: Upton Sinclair Jungle Essays

The Character of Jurgid Rudkis in The Jungle There are often many sides to a person's personality. Jurgis Rudkis of Upton Sinclair's novel, The Jungle, is no exception. Rudkis is a very determined and caring person. Conversely, he is also strickened with cupidity. He has both good and evil coexisting within him. Rudkis is a very determined and directed man. He is always eager to work. He does not let anything stop him and is "confident in his ability to get work for himself, unassisted by anyone(pg.35) ." Aware that he needed money, Rudkis does anything and everything to achieve his goals. No matter what he must endure, he always manages to keep his head high and keeps striving toward his dreams. Rudkis's determination is also displayed when he tries to make a good impression on his boss. He proves he is not lazy and "promptly reports for work in the morning(pg.46) ." Rudkis is also a caring man. His primary goal is to protect Ona, and when he reaches America, he has every confidence he can do so. He works in terrible conditions and endures many hardships merely to keep her happy. When he lost his job, he earned mony immoraly. He does not do this for himself, but for the welfare of Ona and the family. Eventhough he inevidably fails, he does everything in his power to be an ideal husband. Rudkis, like many other good-hearted people, had to circumb to the evil powers of greed. He buys an expensive house that he could not afford. He could settele for a house of lesser value that suits his needs just as well, but he doesn't. Eventhough he is somewhat conned into buying it, his greed still convinced him. Shortly after this, he is so eager to get more money, that he starts to behave immoraly. After he lost his job due to an injury, he sinks into a life of crime as a foe of society. He becomes a mugger and a grafter.

How We Listen By Aaron Copland

In his essay How We Listen, Aaron Copland classifies and divides the listening process into three parts: the sensuous place, the expressive plane, and the sheerly musical plane (1074). I believe by this mechanical separation, Copland succeeds in discussing difficult topic, so natural that most people tend to by pass it. He uses analogy and sometimes stresses on certain situation where these planes are abused or become a cause of a problem. The main purpose for Copland to separate the listening process is for the reader to learn and study how they listen. Coplands success in the clarification mainly because of two methods: (1) Categorizing the listening process in different parts and use an analogy to unite it to bring back the general idea of the listening process and (2) by answering and addressing to problems so the readers will understand and have a different view of the text. Categorizing the listening process People listen on the sensuous plane for pure entertainment. For example, turning one the radio while doing something else and absentmindedly bathes in the sound (1074). Copland continues talking about the sound stuff (1075) and how composers manipulate it differently. Good listener should realize that lovely sounding music is not necessarily great music. I believe putting the sensuous plane before the other two is a good technique, since this is the plane most people often relates to. Second plane is the expressive one. Copland now discusses the notion of meaning in music. In his view, music has a meaning but this meaning is not concrete and sometimes it cannot be expressed in words. This plane explains why we get moved or relaxed by music. It is more difficult to grasp and required more deep thought because Copland claims that meaning in music should be no more than a general concept (1076). This issue is very philosophical and one must accept the train to understand this plane. The next plane deals with the manipulation of the notes and offers a more intellectual approach in enhancing musical appreciation. The actual structure of the music as such the length of the note, pitch, harmony, and tone color are emphasized in this section of the essay. This basic study of the structure is a must to form a firm foundation in the musical piece and to understand the diagnosis of it. This technical and more scientific plane is contradictory to the philosophical sensuous plane. Therefore, it is another good technique of Copland to write one right after the other to cover the whole listening process. after expounding his theory on the way we listen, Copland uses the analogy of a theoretical play to drive the point home. This is yet another good technique used by Copland: allowing him to clearly demonstrate the interrelating of the three planes. Regarding the ideal listener, Copland says: In a sense, the ideal listener is both inside and outside the music at the same moment, judging it and enjoying it, wishing it would go one way and watching it go anotheralmost like the composer at the moment he composes it; because in order to write his music, the composer must also be inside and outside his music, carried away but it and yet coldly critical of it. (1078) It is obvious that in Coplands view the best approach consists of the balanced mixture of all three planes. Answering and addressing to problems Copland uses the three planes of the listening process to mark the division of his essay. For great clarity, the text is very clearly organized. He starts with the introduction and tackles the sensuous plane in the second paragraph. Many people may wonder what kind of a problem lies in a purely entertainment plane. He claims that the sensuous plane is abused by people who listens to music to escape reality, yet still addresses themselves as a good music lovers. Copland warns: Yes, the sound appeal of music is a potent and primitive force, but you must not allow it to usurp a disproportionate share of your interest. The sensuous plane is an important one in music, a very important one, but it does not constitute the whole story. The understanding of sensuous plane and the actualization that there are more planes in the listening process is stressed. Copland then continues with the expressive plane, objecting to the notion of simple-minded people that music should have concrete meaning. He argues that meaning cannot be explained by words and that people should simply be satisfied with a general concept: feel the music. Moving to the third plane -the sheerly musical one- Copland talks about music in terms of notes. This plane concerns musicians and audience alike. What may go wrong with the makers of music themselves According to Copland, professional musicians are sometimes too conscious of the notes: They [professional musicians] often fall into the error of becoming so engrossed with their arpeggios and staccatos that they forget the deeper aspects of the music they are performing. (1077) From this statement, I believe that theres a fear of losing the expressive plane, if this problem triggers. On the other hand, we have the general audience. Listeners often neglect them. He argues that a good listener should know the musical structure in order to enhance the enjoyment of music on this plane.

Mang Inasal Essay

I. Executive summary Mang Inasal is a locally owned fast food restaurant in the Philippines that will be soon, positioned as an international franchise through our creative approach to the company’s image and detail presentation. Mang Inasal will provide a combination of excellent food at value pricing, with fun packaging and atmosphere. Mang Inasal is the answer to an increasing demand for BBQ’ed fast food, to be consumed while having quality time with your friends or family in the shopping mall. In today’s highly competitive environment, it is becoming increasingly difficult to differentiate one fast food outlet from another due to its variety of product line and services. Dubai, a city state, is now becoming the model metropolis in the Middle East’s new economic boom. With more than a total population of 2.106 million (2013), mainly from neighboring countries (Malaysia, Indonesia, Thailand and the Philippines), Dubai’s import in meat, vegetables and so on in its sector is the strongest in the region. Our main priority is to establish one fast food restaurant in a crowded mall, preferably in one of prominent shopping malls in Dubai. Later, our effort will be a further development in our service and product line in the surrounding area. This plan is prepared to obtain a location for the initial launch of this concept. Additional financing will need to be secured for the fast food restaurant. The financing, in addition to the capital contributions from shareholders, will allow Mang Inasal to successfully open and expand. The initial capital investment will allow Mang Inasal to provide its customers with a value-driven, entertaining experience through the creativity of its founders. Mang Inasal will entice the diverse culture to bring their friends and family with our innovative environment, fresh-cut Chickens, and selection of unique signature sauces. II. Business overview A. Business profile History Mang Inasal (Ilonggo term for Mr. Barbecue), the Philippines fastest growing barbecue fast food chain; serving chicken inasal, pork barbeque and other Filipino favorites, was first established on December 12, 2003 in  Iloilo City by businessman Edgar Sia II. Apart from the usual food presentations of multinational food company copycats, Mang Inasal endeavors to adhere to elements that bear a distinctively Pinoy stamp-grilling with charcoal, rice wrapped in banana leaves, a marinade concocted out of local spices and herbs, bamboo sticks for skewers, and the ambience that encourage skinamot (Ilonggo term in eating with the hands) whenever chicken inasal is served. In the year 2014, seven marketer’s decided to franchise Mang Inasal . They decided to penetrate the new market in Dubai, with the use of their experiences in the marketing field, they will try to capture the new market of the Middle East to patronage Mang Inasal to the population of Dubai. They will try to use the cultural, economic, political, and technological environment of their market area for their advantage in order for them to achieve their objectives and goals as a marketeer, with the use of the cultural diversification of the country we marketeers will try to cater this diverse cultured by offering new product lines such as grilled lambs and chicken for Muslims and original mix recipe of Mang Inasal such as pork inasal and chicken inasal for non-Muslim customers. In using our SWOT matrix we will try to consider our strengths and opportunities in gaining new insights, marketing strategies, and programs to adapt and improve our brand equity towards our market. B. Background of the product Mang Inasal is a fast food restaurant chain; its vision is to be the first choice and leading fast food chain everywhere nationwide. Its mission is to provide great tasting products and quality services to our customers with a great pinoy ambience fast food chain nationwide. Develop, motivate and retain employees in providing benefit programs, employment security and good working environment by applying new technologies for better and easy way of serving. Do our best to provide good quality products and services to our franchisees with fairness and integrity. And provide livelihood programs to the community by treating them as our business partners. If you want a great deal to satisfy your enormous appetite, the Mang Inasal Menu is the one to choose from. With the most reasonable prices covering a variety of meals, the Mang Inasal menu will make you feel like a winner! Really, your money’s worth is guaranteed with filling and satisfying meals. Have you ever heard of unlimited items offered by restaurants? Well, the Mang Inasal Menu offers unlimited rice and that’s the best deal a Pinoy can ever want. Eating big servings of chicken and pork is gratifying with cups and cups of rice. Mang Inasal is a Filipino restaurant chain that offers delicious chicken barbecue as the main product. Its recipe is uniquely delicious with big chicken servings marinated, skewered over charcoal and served over banana leaves; it’s a real Pinoy recipe everybody loves. The Mang Inasal Menu is excellent; everything in it is 100% delicious. Mang Inasal has a variety of product line raging from BBQ’ed Chicken legs to Grilled Fish with unlimited rice, and its desserts are the Leche Flan, Toron Split served with a two scope ice cream covered in choco syrup, and the famous Halo-Halo Filipino Styled dessert, served drinks are Sago at Gulaman, Iced tea, Coca cola and hot coffee. It has been one of the most favorite eateries nationwide with over 445 branches and growing, and a staggering 10,000 employees system, it has become famous and profitable for any individual to finance as a business. During Mang Inasal ’s reign in the fast food chain it has consistently growing over the past year finishing in the top 3 in the most visited fast food chain in the Philippines and Edgar Sia aim is to be top two in the Fast food chain industries beating Chowking in it’s position. Below are some menus that Mang Inasal serves to its customers: PABORITO/FAVORITE MEALS (UnliRice) PM1 Chicken Leg w/ Rice Barbecued chicken leg and thigh with unlimited rice PM1.5 Chicken Leg (spicy) w/Rice Barbecued chicken leg and thigh with unlimited rice (in spicy flavor) PM2 Chicken Breast w/ Rice Barbecued chicken breast and wing with unlimited rice PM3 Pork Inasal w/ Rice 3 sticks skewering pork, barbecued in inasal way, unlimited rice PM4 Sizzling Fish w/ Rice Sizzled Bangus fish with unlimited rice PM5 Sizzling Pork w/ Rice Sizzled pork with unlimited rice PM6 Roasted Fish w/ Rice Roasted boneless Bangus with unlimited rice PM7 Grilled Liempo w/Rice Grilled liempo marinated with sweet and spices with unlimited rice Others Bangis Sisig Sizziling Pork Ensaladang Talong SULIT/AFFORDABLE MEALS SM1 1pc Chicken Inasal w/ Rice Chicken Inasal is a grilled chicken dish and one of the well-known Ilonggo dishes with unlimited rice SM2 2pcs Pork Inasal w/ Rice Pork Inasal is a grilled pork dish and one of the well-known Ilonggo dishes with unlimited rice MERIENDA/SNACK MEALS Pansit Bihon/Bijon Pancit Bihon or Pancit Guisado is a Filipino noodle dish and is a staple second to rice. Dinuguan at Puto Cake Pork blood stew, blood pudding stew, chocolate meat served with 3 puto cake DRINKS/Beverages Sago’t Gulaman Sago at gulaman drink is sweet, thirst-quenching and popular during the sizzling summer months. Softdrinks Mang Inasal serves some of the most popular fast food chain such as sprite, coke and royal Iced Tea Freshly brewed each day from a premium blend of tea leaves. Tea is a natural source of protective antioxidants Coffee Mang Inasal serves piping hot brewed coffee for our customers DESSERTS Halo-Halo Halo-halo is a popular Filipino dessert with mixtures of shaved ice and evaporated milk to which are added various boiled sweet beans, jelly and fruits. It is served in a tall glass or bowl. Leche Flan/Creme Caramel Crà ¨me caramel flan or caramel custard is a custard dessert with a layer of soft caramel on top, as opposed tocrà ¨me brà »là ©e, which is custard with a hard caramel top. Turon Split is a dessert made out of banana concealed in a lumpia wrapper With Mang Inasal s variety of product line and with a very high value brand name and profitable institution it can compete with other fast food chain nationwide, but can this ever growing business be used in other countries, can it’s business practices and product lines and system be brought on foreign soil not just to challenge its competitors head on but to prosper as a fast food chain and complete its vision as the leading BBQ fast food chain in the country? Below is an analysis of the environment of where Mang Inasal Branch will prosper, its analysis includes Company analysis, Competitor Analysis, Customer analysis, and Environmental analysis which includes the PEST or Political, Economic, Social or cultural and Technological analysis in which the Franchised Mang Inasal branch will launch. C. Background of the Market The destination of where Mang Inasal will prosper will be in the nation of UAE specifically in Dubai. Why Dubai? Why did choose the country Dubai instead of any other country? Because Dubai is the mecca for growth is the no.1 country in the oil business giving us an advantage in making use of its economic growth? And it stands in having the highest imports in any other UAE capitals in all of the Middle East but above all we choose Dubai for one single purpose. And that purpose is Food. People in Dubai love to eat, and as a fast food chain business that is one great news for us, but what separates us from our competitors’ is the product line that we offer because statistic shows that people in Dubai likes to eat rice since rice is the best side dish when eating meat with sauce or vegetables. The imported food of Dubai consisted mainly of fish, rice, bread, dates, yogurt, homegrown vegetables, and meat from sheep, goats, and camels. And this are most consumed food that people eat in Dubai D. Situational analysis Company Analysis Goals The goal of our company is to be the first choice and leading barbequed fast food chain of everywhere nationwide, and to provide great tasting product and quality services to our customers with the use of different kinds of products we will try to capture the large market in our new market area and cater their culture by offering new product lines that are made from lamb/sheep products. With the use of our marketing expertise we will try to analyze what is our opportunity and threats in our environment to maximize our growth in the fast food industry. Focus Our restaurant focuses on customers who loves to eat food, whose customer classes are mostly class C’s D’s and E’s since the product of Mang Inasal are affordable and cheap, and whose customers that has an active lifestyle in eating, our restaurant’s new product line are specialize in chicken, pork and possibly new product line lamb with unlimited rice to align its food chain culture towards the culture of our target market. Strengths Our strengths as a fast food chain is endorsement, large target market, market leader in barbeque fast food chain, accessibility, and strong commissary system in which case we can utilize these strengths to create new marketing strategies and programs in developing new product and services to offer in our growing and diverse market. Weaknesses Our weakness as a fast food chain is unhealthy food, Filipino culture,  brands under the Mang Inasal , commissary struggle, and lack of research for other countries since Mang Inasal is under Jollibee Corporation McDonalds can consider us as a threat in the market area and that the lack of technology can cause a delay in our R and D in improving our restaurant’s products and services. Customer Analysis Number The total population of Dubai is 2.106 million (2013) Approximately 85% of the expatriate population (and 71% of the emirate’s total population) was Asian (chiefly Indian, Pakistani, Filipino, Bangladeshi and Sri Lankan). About 3% of the total population of Dubai was categorized as â€Å"Western†. In addition, 16% of the population (or 288,000 people) lived in collective labor accommodation were not identified by ethnicity or nationality, but were thought to be primarily Asian. Approximately 85% of the expatriate population (and 71% of the emirate’s total population) was Asian (chiefly Indian, Pakistani, Filipino, Bangladeshi and Sri Lankan). About 3% of the total population of Dubai was categorized as â€Å"Western†. In addition, 16% of the population (or 288,000 people) lived in collective labor accommodation were not identified by ethnicity or nationality, but were thought to be primarily Asian. Type Our restaurant focuses on the market area of Dubai a fast growing country, whose cultural heritage of the people are both religious and hospitable people, but in Dubai as their culture diversifies and meets new culture that will conflict their own belief, our restaurant will try to manage and use this diverse culture in our favor, such as using the most delectable food of Dubai: Lamb as our new product line. Value Drivers As our value drivers we will use our variety of products and combine some of them to create new promos and products such as free upsize drinks, Pancit bihon/bijon perfect combo, Solve sarap and many more value propositioned products. Decision Process We will use our traditional advertising to let our restaurant be known to the target market, with the use of controlled advertisement of every six months  monitoring to see how customers respond to our billboard, flyers, and TV advertisement but statistic shows that Mang Inasal favorable ways of advertising are through Social media, TV, Events and Experience and Word of mouth. Next is trying to penetrate the new market through the use of discounts and promo’s due to our grand opening in the new target market for the first month, and maintain its standard customers a day and invest in improvement towards the target market. Competitor Analysis Market Position As a threat our competitors has the advantage to be the first known fast food chain in the country such as McDonalds, Burger king, Del Taco, Wendy’s, Hardee’s, KFC and Pizza hut. But what separates our restaurant towards our competitors is the unique product line that we offer, since we offer BBQ’ed and Filipino styled desserts products with the use of the most popular side dish that the food industry can offer which is Rice, we can patronage and capture the market through the use of our product line and cater new product line to adapt to the culture of Dubai. Strengths The strength of our competitor is Cost advantage, strong management, real estate, pricing power, innovative culture. Financial leverage, asset leverage, supply chain, size advantages, economies of scale, cost advantages, unique products, technology. The strength of our competitors can cause major problems in our brand recognition process of our restaurant, since some of our competitors are known brands; it can cause problems in the decision process strategy and in our brand awareness towards our competitors. Weakness The weaknesses of our competitors are Negative publicity, Unhealthy food menu, Job and high employee turnover, and Low differentiation. The weaknesses of our competitors that are mostly towards its employees can be an advantage for our restaurant, in which case we can use this to offer new jobs and programs for our workforce. Collaborators Mang Inasal is currently under Jollibee food corp. who owns 70% of Mang Inasal ’s market share but as a fast food chain Mang Inasal is now currently profitable since the owner of its large market share is the no.1 leading Fast food chain in the Philippines with over thousands of branches both nationally and internationally making it a main player in the Fast food chain industries, with its other fast food subsidiaries such as Greenwich, Red Ribbon, and other businesses. III. Target Market E. Market Segmentation Geographic Segmentation Dubai is located on the Persian Gulf, in the northeast of the United Arab Emirates. Dubai is the second largest emirate with an urban area of 3885 sq. km and the city is roughly 35 sq km. However it will expand to twice that size with the addition of the man-made islands; the Waterfront, the three Palms, the World, the Universe, Dubai land, as well as the construction in the desert. Psychographic Segmentation The UAE culture mainly revolves around the religion of Islam and traditional Arab culture. The influence of Islamic and Arab culture on its architecture, music, attire, cuisine and lifestyle are very prominent as well. Five times every day, Muslims are called to prayer from the minarets of mosques which are scattered around the country. Since 2006, the weekend has been Friday-Saturday, as a compromise between Friday’s holiness to Muslims and the Western weekend of Saturday-Sunday. Behavioral Segmentation Dubai buying behavior: Consumers in the three largest emirates tend to shop more at hypermarkets and frequent the smaller shops and convenience stores for last-minute food needs. In the more distant suburbs and the less-populated areas of the federation, smaller grocery and convenience stores play an important role in food shopping. The number of hypermarkets is increasing steadily with retail chains such as Carrefour, Spinneys and Lulu dominating the big format supermarket trade. These key retailers tend to partner with foreign companies to procure imported food products  directly, while small format grocery retailers rely on consolidated deliveries for replenishing their stock levels. The continued growth in both affluence and the expatriate population has created the need for a diverse range of food products in the UAE the food retail sector has responded by providing a range of foods and ingredients suiting the tastes of the different ethnic groups in the country. Data monitor has evaluated a number of food categories and projected growth at retail in most areas, particularly chilled foods, bakery/cereal products, savory snacks and pasta/noodles. F. Macro Environment PEST ANALYSIS Political and Legal Environment Overview of the Political System of United Arab Emirates: The United Arab Emirates is made up of seven emirates: Abu Dhabi, Dubai, Sharjah, Ajman, Umm al-Qaiwain, Ra’s al- Khaimah and Fujairah. The United Arab Emirates gained its independence from the UK on December 2, 1971. Its constitution was established on independence, and was made permanent in 1996. The form of government can be referred to as a federal presidential elective monarchy, as the president is elected from among the absolute monarchs who rule each of the seven emirates. Economic Environment The UAE, the world’s eighth largest oil producer, maintains a free-market economy with minimal restrictions on private-sector activities, international trade and capital movements. Despite the impact of the global economic downturn, the UAE’s economy has proved to be remarkably resilient. Higher oil prices, increased government spending and a noteworthy resurgence in tourism, transport and trade have contributed to the upswing in the economy. In addition, the successful restructuring of debt owed by high-profile companies, solidarity among the emirates and accommodative monetary and fiscal policies have all played a role in bringing stability to the market. The Economy of Dubai is mostly in the tourist sector and other finances of the country with over 50% of the countries finance is covered and 5% in oil 10% in real-estate, 12% in transportation and communication and 13% manufacturing. Social and Cultural Environment Dubai’s culture is rooted in Arabic and Islamic tradition Dubai is built on foundations that are rich in history and tradition. Dubai is a forward-looking society that is equally bound to its culture and heritage. Dubai has always been renowned for its tolerant outlook; Dubai has built a reputation for being open to new ideas and ways of doing things. This has enabled Dubai to become a global center for innovation, tourism and business. Sophisticated: Dubai is a city with style and charisma. Dubai has successfully fused sophistication with charm. It has redefined the meaning of luxury with its stunning hotels, award-winning restaurants and its position as an international shopping destination. Energetic: Dubai has an aura of vitality and a get-up-and-go spirit. Visitors are struck by the ingrained optimism and spirit of adventure and innovation that permeates through all layers of the community. To a holidaymaker, a business traveler or a resident, Dubai is a place where there is always something exciting to see and do. Embracing: Dubai aims to bring together the best in people Dubai’s success is based on the vision and commitment of its leadership, the generosity and aspirations of its people and the contribution of many people from different parts of the world, many of whom have chosen to make Dubai their permanent home. This creates a blend of many cultures that coexist peacefully. But in a religious country Dubai is a very conservative country having a strict dress code and with a very diverse culture in its social class. Technological Environment Dubai is today recognized as an international trading port. While rapid sophistication of the 21st century technology has changed the face of Dubai from timeless deserts to a thriving economy with strengths in trade, services, manufacturing and technology, Dubai maintains a fine balance of cultural legacy and a modern metropolis. G. SWOT Analysis Strengths Endorsements Large Target Market Market Leader in Barbeque Fast Food Chain Accessibility Strong Commissary System Weaknesses Filipino Culture Unhealthy food Brands under the Mang Inasal Commissary struggles Lack of Research for other countries Opportunities Local Culture and Tradition Cultural Diversity Philippines- Agricultural Nation New Brand Acquisition Urban Development Threats Foreign-owned and Local SME’s Global Financial Crisis Increase in Oil Prices Sanitary Issues Standards/ Health and Safety Political Instability H. SWOT Matrix Strengths 1. Endorsements 2. Large Target Market 3. Market Leader in Barbeque Fast Food Chain 4. Accessibility 5. Efficient Commissary System Weaknesses 1. Filipino Culture 2. Unhealthy food 3. Brands under the Mang Inasal 4. Commissary struggles 5. Lack of Research for other countries Opportunities 1. Local Culture and Tradition 2. Cultural Diversity 3. Brand Acquisition 4. Urban Development 5. Philippines being an Agricultural Nation SO Strategies (S3+05+03) Consider raising their own chickens (S3+S2+04) Expand network of stores to newly developed areas in the country (S3+03) Acquire business in order to penetrate new market WO Strategies (W2+03) Acquire restaurants that serve healthy food and introduce a healthy product line. (W5+02) Intensity research on other countries’ culture in order to cater effective marketing strategy towards customers culture and lifestyle Threats 1. Foreign-owned and Local SME’s 2. Global Financial Crisis 3. Sanitary Standards/ Health and Safety issues 4. Oil Prices 5. Political Instability ST Strategies (S5+T3) Continue adherence to standards and become a benchmark in the government sanitary health standards (S2+S3+T5) Strengthen advertising to reinforce market leadership amidst (S3+T2) Create more affordable meals towards the target market (S1+S3+T1) Intimidate competitors by reinforcing market dominance through the use of specialized BBQ product line WT Strategies (W5+T1) Intensify research on culture and develop marketing strategies to cater diverse market preferences (W2+T1) Can cater new product lines for a new market segment to fill in the gap between healthy foods and unhealthy foods IV. Marketing Strategies 1. Product/Service Strategy For our Product strategy we will use the most common strategy of Mang Inasal which is the Product development strategy – As seen in the analysis of Mang Inasal operations the past years, this strategy has been proven beneficial to the company. With good research and development, Mang Inasal is capable of continuing to produce products that fit well to the taste of their market. They could also continue innovating their current product line so as to continuously remain ahead of its competitors. And to compliment this strategy: Cost Leadership strategy – Best value strategy. In this strategy we can create a new product line to cater to a unique segment of their market. For example, creating a healthier product line for those who are weight and health conscious would be ideal. 2. Pricing Strategy For the pricing strategy our cost leadership would be best since our product are already affordable for the market, all we need to consider is the new product line that we have to offer towards our customers in order for us to capture new market segments and to achieve our goal in being the leading BBQ’ed specialized fast food chain in the country. And with our new product line we can assess the gap between the healthy foods and unhealthy foods, and cater the culture of non-muslim by offering non pork products such as lamb and goat. 3. Place/Location Strategy For the location strategy we will place our restaurants near hotels or inside malls but more specifically the Zamatao mall in Dubai which houses many competitors such as McDonalds, Burger king, Hardee’s, Wendy’s and so on, but these competitors are just indirect competitors since their product line differs from us, as a competitive edge, our fast food chain will be  placed in front of other fast food restaurant to intimidate our competitors and in order for us to capture our desired target market with the use of our new product lines and unique product position, since our products differ from their product line we can have the advantage of product positioning 4. Promotional Strategy In our promotional strategy we will use a controlled advertising having a 6 month monitoring towards the reaction of the customers in our advertisement to do further study in analyzing negative and positive factors in our promotional strategy and focusing on the positive reaction and lessen the negative factors of our advertisements and through the use of online and TV advertisement we can make our product known to the target market. 5. Positioning Strategy With the use of the diverse market we can cater and create new product lines to capture new segments of the market, and we should keep to our new market for now, and should avoid risk in the new market to prevent any major financial problems towards our restaurant in order for us to keep an update in our budgeting and opportunities in gaining new technology/insights in our environment to use as an advantage for our restaurants, and with the use of new insights we can raise new supply system in the new market to eliminate unnecessary cutbacks/problems in the inventory of our products and services. I. Financial Statement Requirements to become a franchisee If you are interested in becoming a franchisee of Mang Inasal, there are a few requirements you need to look into. Here are the franchise details of Mang Inasal: Franchise fee: Php 15 to 30 million Franchise fee inclusive of: use of brand, operational support, opening marketing support, and training support Product security deposit: Php 800,000.00 Franchise term: 7 years, renewable Store space requirement: 150 square meters to 200 square meters Advertising fee: 2% of gross sales Royalty: 5% of gross sales Estimated cost of renovation: Php 7 million to Php 9 million Cash Flows from Operating Activities: Operating Income (EBIT) 7,000,000 Depreciation Expense 800,000 Loss on Sale of Equipment 70,000 Gain on Sale of Land (500,000) Increase in Accounts Receivable (300,000) Decrease in Prepaid Expenses (200,000) Net Cash Flow from Operating Activities 6,870,000 Cash Flows from Investing Activities: Sale of Equipment 700,000 Sale of Land 3,000,000 Purchase of Equipment (500,000) Net Cash Flow from Investing Activities 3,200,000 Cash Flows from Financing Activities: Payment of Dividends (250,000) Payment of Bond Payable (300,000) Net Cash Flow from Financing Activities (550,000) Net Change in Cash 500,000 Beginning Cash Balance 400,000 Sending Cash Balance 10, 420,000.00 J. Balance Sheet ASSETS Current Assets: Prepaid Expense Inventories Other current assets 1,800,000 1,700,000 500,000 Total Current Assets 4,000,000 Noncurrent Assets: Property And equipment (Fixed assets) Deferred tax assets Other noncurrent assets 1,500,000 1,000,000 500,000 Total Noncurrent Assets 3,000,000 TOTAL 7,000,000 LIABILITIES AND EQUITY Current Liabilities: Accounts payable and accrued expenses Credit Card Payable Loan payable 3,000,000 2,000,000 500,000 Total Current Liabilities 5,500,000 Equity: Capital Stock Additional Paid-In Capital Retained Earnings 425,000 350,000 725,000 Total Equity TOTAL 1,500,000 7,000,000 V. Breakeven point In the Breakeven point our price per unit is Php 115 our variable cost is Php 99 and our estimated total fixed cost is Php 600,000: Price per unit – Php 115 Variable cost – Php 99 Total fixed cost – Php 600,000 600,000 à · (115 – 99) 600,000 à · (16) 37,500 units 115 x 37,500 = Php 4,312,500 The breakeven point in sales is 4,312,500 per month VI. EXIT PLAN For our exit plan strategy, we decided to sell-out the company in case of bankruptcy or other major financial problems, because sell-out is the most easy way in earning back the owner’s equity and the same time earn dividends afterwards – it clearly is in our interest to ensure our firm is a good fit for the buyer and therefore more likely to prosper. In other words we would create a win-win situation for both our company and the firms who are willing to buy the company’s asset and other subsidies.