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Marketing Strategy Report for NEXT PLC

Marketing Strategy Report for NEXT PLC 1. Introduction In the following report the marketing strategies of Next PLC, a British based clothing and home products retailer will be researched and analysed before recommendations for possible improvements are provided. This report will analyse the company marketing strategy by assessing the marketing mix or the “4 Ps” of product, price, place, and promotion as well as the environment in which the company operates. Once this is completed, an analysis of the strengths […]

Are the Seven P’s Really Mutually Dependent

Are The Seven P’s Really Mutually Dependent? The marketing mix is a very simple concept, widely accepted as being of high utility in the management of the marketing function. Critically discuss the interrelationships between the seven P s of the services marketing mix. Are the seven P s really mutually dependent as some observers would maintain, or can each of the P s be managed independently of the others- Use relevant examples to illustrate your points of views where necessary. […]

To what Extent are the Stock Markets Overvalued?

Introduction Stock markets are considered to be among the most preferred investment platforms by investors, as they generate a high return on investment (Fong, 2014). There are many underlying reasons for this high return, one of which may be the valuation of the financial commodities traded in the stock market (Chang, 2005). Some financial analysts believe that the stock markets are extremely overvalued (Phoenix, 2014), while there are others who consider them as being slightly overvalued (Rosenberg, 2010). Another school […]

Implications in Supermarkets Example for Free

Introduction In hypercompetitive industries (D’Aveni 2010) such as characterised by the present UK supermarket retail sector where competitive rules are changing fast with disruptive business models from new entrants like Aldi and Lidl (Savage 2014) continuing to pressure the market share of hitherto brand leaders like Tesco and Asda; brand differentiation can be an effective tool to counter the effects of resulting downward pressure on prices and profits (Kumar 2006; Matzler et al 2009). Understanding the expectations of the customer […]

Application of Salam

Application of Bai’ Salam In Bai’ Salam is a type of product that the bank or financial institution will give the liquidated cash or capital in advance to the needy to produce their commodities and later the commodities will be deliver to them. While in Bai’ Salam itself it can be divided into three difference type of contracts. They are parallel Salam, Hybrid Salam and also Salam financing working capital. Firstly, the parallel Salam is a common salam that use […]

Today’s Financial Environment

INTRODUCTION Today’s financial environment is highly risk prone. The volatility of economic variables such as interest rates, exchange rates, commodity prices etc has increased because of the increased internationalization of businesses. In order to have a stable business a firm must identify and manage its risk carefully. Risk is defined as the doubtfulness of returns. Any firm faces two types of risks. Business risk Financial risk A business risk includes the risk of competition, risk of a new technology hampering […]

To what Extent does Financial Engineering have an Important Role

As we are in modern world today, everything around us has been changing continuously. The world that we see today is different from the world in 40 years ago. Technologies are one example, which has been improving dramatically. Letter had been a popular way to communicate and then land line telephone came to help communication more easily and the following is mobile phones, which have more and more convenient until today. The most important technologies are computer and internet. These […]

The Risk of Hedging in the Banking World

Hedging is a risk management tool to offsetting the risk inherent of price in any cash market position by taking an equal but opposite position in the futures market. Hedging activities protect futures contract holder from fluctuations in the underlying asset’s price. Investors are benefit if the price of underlying asset moves in the same direction as what investors’ expected (“Hedge Fund”, 2009). Short hedge is a short selling by borrowing underlying asset such as commodity, security or financial instruments […]

The Inverted Yield Curve and Stock Performance

The choice of stocks to invest in during a period of recession has gained importance once again since the global meltdown in 2008. Ideally individuals and fund managers should be able to predict a forthcoming recession and there should be some method of identifying stocks that do better in such periods. In USA, inverted yield curves have been used to predict downturns and some studies have shown that returns from large capitalization stocks are significantly higher than small stocks, during […]

Risk Premiums and Efficient Market Hypothesis

1. Introduction An attempt to elaborate the relationship between the bad model problem and the Efficient Market Hypothesis or the Equity Risk Premium needs to necessarily commence with a short overview of the hypothesis. The Efficient Market Hypothesis, (EMH) was first developed by Eugene Fama of the University of Chicago, in the 1960s, to explain the behaviour of prices in equity markets. It has now been generalised to determine price behaviour patterns in other asset markets and has become one […]

Function of Financial Institution

Financial institution is an institution that provides financial services for its clients or members. Probably the most important financial service provided by financial institutions is acting as financial intermediaries. Most financial institutions are highly regulated by government. Function of financial institution Financial institutions provide service as intermediaries of the capital and debt markets. They are responsible for transferring funds from investors to companies in need of those funds. Financial institutions facilitate the flow of money though the economy. To do […]

Financial Market Securities

Financial Terms: Definition & Role in Finance Primary Market: Primary market is the new issue market of securities. This market brings together the “sources and use” or “supply and demand” for new capital funds. The main source of fund for the primary market is the savings of individuals and businesses. In a highly developed capital market, the largest portion of the individuals saving reaches the new issue market indirectly through financial intermediaries (Bhalla, 2005). Role of primary market: In the […]

Examining Exchange Traded Funds

CHAPTER I INTRODUCTION In the past few decades many performance evaluation studies indicated that actively managed mutual funds, which seek to obtain excess returns than the market by actively forecasting returns on individual stocks, do not actually obtain statistically significant excess returns (Jensen, 1968; Grinblatt and Titman, 1989; Elton et al., 1993; Malkiel, 1995; Gruber, 1996; Carhart, 1997; Edelen, 1999). This was consistent with the ‘Efficient Market Hypothesis’ which suggests that due to the availability of all kinds of information, […]

The Features of Technical Analysis

Explain the key features of technical analysis, including the strategies and techniques used in technical analysis. Discuss the features of fundamental analysis, critically evaluate fundamental analysis versus technical analysis. Introduction The following paper will critically evaluate the differences between technical and fundamental analysis. Even though both technical and fundamental analyses are tools used to make investment decisions there is sharp differences in the two approaches. Technical analysis is in sharp contrast to efficient market hypothesis (EMH), which contends that past […]

Economists Asset Market

Literature Review There have been different views between Economists and financial market participants upon the valuation of an asset. Economists believe that the price of an asset should reflect the fundamental value given the assumption of rational behavior and of rational expectations. On the other hand, financial market participants believe that the fundamental value is part of the asset price. Thus, Markets participate will interpret a positive price volatility as the herd behavior. However in the past they were unable […]

Effect of Overconfidence that Happens Within the Market

Odean (1998) theoretically investigated the effects of overconfidence in different market structures which differ in information distribution and in price determination. He presented overconfidence effects on different market measures such as trading volume, market depth, volatility, expected utility and market efficiency taking overconfidence of different traders: price takers in the market where information is broadly disseminated, strategic-trading insiders in markets with concentrated information and market-makers. Odean assumed that investors were rational in all respects except valuing the information. They overestimate […]

Derivative Market and the Meaning of Derivative Market

Mehraj Mattoo (1997), Structured Derivatives: New Tools for Investment Management A Handbook of Structuring, Pricing & Investor Applications (Financial Times) The Derivatives Market is meant as the market where exchange of derivatives takes place. Derivatives are one type of securities whose price is derived from the underlying assets. And value of these derivatives is determined by the fluctuations in the underlying assets. These underlying assets are most commonly stocks, bonds, currencies, interest rates, commodities and market indices. As Derivatives are […]

Consumer Awareness in Stock Markets

INTRODUCTION Stock trading has evolved tremendously. Since the very first Initial Public Offering (IPO) in the 13th century, owning shares of a company has been a very attractive incentive. Most of the recent advancements with the trading have been due to the Internet. The Internet has allowed online trading. In contrast to the past where only those who could afford the expensive stock brokers, anyone who wishes to be active in the stock market can now do so at a […]

Market Efficiency Hypothesis Example for Free

The notion of efficient market can be traced back to Bachelier(1900) in his dissertation. According to his research, the expected return for each investor can be seen as an independent event, and the samples are close to normal distribution. That means, therefore, the expected return for the security is zero and the stock prices are unpredictable. As he stated, “past, present and even discounted future events are reflected in market price, but often show no apparent relation to price changes” […]

Capital Markets Example for Free

Introduction This paper will examine the capital markets which a source of channel between suppliers and users of capital to gain greater profits. Main purpose of capital markets is to create an environment where the buying and selling of various instruments like equity and debt take place. It’s an avenue where savings and investment facilities provide capital from retail and institutional investors and its users of these capital markets are different businesses, government and individuals. Capital markets are vital to […]

Market Stock and Bond Analysis Example for Free

Capital Market is the market that facilitate buying and selling of securities such as stocks / shares and bonds or debentures. It is a place where business enterprises and governments raise their long term funds. The two major functions of capital market are liquidity and pricing securities. Capital Market consists of EQUITY MARKETS or STOCK MARKET, which provide financing through the issuance of shares, and enable the subsequent trading thereof and DEBT MARKETS or BOND MARKET, which provide financing through […]

Derivatives Mishaps Example for Free

Metallgesellschaft Corporation is one of the subsidiaries of Metallgesellschaft A.G. , a German Conglomerate which largely owned by institutional investors and banks such as Deutsche Bank AG, the Dresdner Bank AG, Daimler-Benz, Allianz and the Kuwait Investment Authority. In 1993, Metallgesellschaft Refining and Marketing known as MGRM which is one of the Metallgesellschaft’s trading subsidiary, had decided to establish a huge amount of derivatives positions which consists of futures and swaps to perform hedging on its price exposure and MGRM […]

An Analysis of the Arbitrage Pricing Theory

The Arbitrage Pricing Theory (APT) was developed primarily by Ross (1976a, 1976b). Indeed, it is a one-period model in which every investor believes that the stochastic properties of returns of capital assets are consistent with a factor structure. The basis of arbitrage pricing theory is the idea that the price of a security is driven by a number of factors. These can be divided into two groups: macro factors, and company specific factors. The name of the theory comes from […]

Analysing the Various Financial Risks to Companies

Derivatives It is a kind of financial Security whose price is derived from or dependent upon one or more underlying assets.A The derivative itself is simply a contract between two or more parties. ItsA value is determinedA by variationsA in the underlying asset.A Some common underlying assets includeA stocks, bonds,A commodities,A currencies and interest rates. Derivatives are mostly characterized by high leverage.A Forward contracts, Future contracts, swaps and optionsA are the most common types of derivatives. Derivatives are generally used as a mechanism to hedgeA risk, but can also be used […]

Ford’s Value Enhancement Plan

Ford’s Value Enhancement Plan aims to align the interests of various shareholders by offering them different options – the choice of $20 in cash, additional new common shares or a combination of cash and new share. Based on the following analysis, Ford should go ahead with Value Enhancement Plan. Characteristic of VEP The Value Enhancement Plan has the feature of stock split and share repurchase. Exchanging existing shares for new shares on a one-for-one basis, shareholders are also offered the […]

A Critical Analysis of the Merits of the Capital Asset Pricing Model

Critically analyse the relative merits of capital asset pricing model (CAPM) and empirical approaches to asset pricing such as Fama and French model. People always search for new tools or better techniques that allow a job to be completed faster and better. It applies to every field including the finance field. Capital Asset Pricing Model (CAPM) is used to calculate the cost of capital and measure portfolio performance since 1970s. In 1990s, Fama and French show the CAPM is wrong […]

The Resource Based View in Strategic Resources

Resource-based view (RBV) is a tool to determine strategic resources and how it affects the performance of the firm based solely on reviewing its internal environment while the external environment remains fixed. Firm’s using RBV competes in terms of their resources and capabilities. The aim of this paper is to study the factors that influence firm’s performance. The RBV emphasizes on the firm’s resources as the essential elements of competitive advantage and performance. It assumes two assumptions in examining sources […]

Types of Information and Main Purposes of an Organisation

Report on Types of information and main purposes of an organization. Acknowledgwment My grateful thanks go to my subject teacher Ismat Jahan, Teacher Of Business Communication at BAC. A big contribution and hard worked from you during the twelve week is very great indeed. All projects and assingments during the program would be nothing without the enthusiasm and imagination from you. Besides, this internship program makes me realized the value of working together as a team and as a […]

Understanding the Definition of Strategy Formulation

Strategic formulation is the process of determining appropriate courses of action for achieving organisational objectives and thereby accomplishing organisational purpose. In a business context, it means what are the products and services the organisation will deliver, what type of market they will entry, which capabilities are required, how will they allocate the resources, and what the returns organisational seeks? Strategic formulation is very important as it is the crucial part in the strategic management. A good and effective strategy is […]

The Fundamentals of Marketing

FUNDAMENTALS OF MARKETING TABLE OF CONTENTS: 1. Roles of marketing 1 2. Importance of marketing 1 3. Shortcoming of product oriented business 2 4. Internal factors that affect marketing decision 2 5. External micro environment factor 3 6. External macro environment factor 3 1a. Roles of marketing department in 2 degrees. Marketing department plays an important role in an association. Whether organization is big or small marketing department always plays equal role in all aspects. Here are certain roles played […]

Microeconomics Essays