Stp for Megaman

s.t.p. for Megaman Segmentation Megaman uses Marco-segmentation to choose its target segment. Business organizations with the scale of sm wholly(a) to king-size are all belonged to this segment (from under 200 to above 200). In this segment the business organizations result all have a juicy usage rate on Megamans product, the product categories are discharge products and solutions. Megaman to a fault uses Micro-segmentation to well define its target segment. Some of the organizations will whole require a high spiritsing system, while some of the organizations demand various(prenominal) lighting consultation.The organizations require consultations will have a much more than closer relationship with Megaman while Megaman will gain more profits from providing an extended service. Megamans product are both foundation and facilitating goods. As a bisuness product, Megamans serve the purpose as in use and consumption. Targeting Megaman targeted the business organizations to be it s ideal customers. Since the customers are business organizations, they will share the key criteria of being price-sensitive quality-focus and also logistics efficiency.In another words, they are truly high demanding. The target customers will be optimizers, they will compare all proposals before making the decisions. The organizations demand Megamans product to be tawdry reliable low switching cost (high compatibility). Megaman is confident in grateful their customers, so they mainly focus on encounter in bracing task or for modified rebuy. Positioning Megaman positi whizd itself as being the market attraction. It continues to invent innovative products, just like Dyson.Unlike the major adversary, Philips, Megaman had taken one step further on CSR, Megamans product are all eco-friendly as Megaman emphasis a lot of its product being sustainable. Philips also provide excellent lighting solution for various organizations but Megaman had managed to do the like thing but also be ing eco-friendly at the same time. Megaman also positioned itself of being high quality. Promotion There are divergent channels for Megaman to promote its products, such as Tradeshow, Advertisement and various scattering channels.Megaman had participated in various trade shows, both in Hong Kong and overseas. As from the schooling shown in TDCs website, Megaman had participated in the HK international Lighting Fair for the hold five years. Megaman tries to attract both local and foreign customers through the tradeshow in HK. Megaman is highly involved in this tradeshow, as Fred Bass, the managing director of Neonlite ( Parent ships company of Megaman) and Megaman HKs management team attended the tradeshow for the publicity event.Megaman has not careworn much guardianship outside those standard tradeshows, same with its major competitor in HK, the Philips Lighting. It is belief that because both of them are already the market leader in HK, no more further marketing strategies needed to be apply in order to fight for market share. What Megaman should do is to train sponsoring some other tradeshow, as being a good misadventure to encounter more business partners. When Megaman first enter HKs consumer market, it utilise humor approach to promote that Megamans product can execute funny yet positive value.Megaman focus on TV commercial, it hire Daniel Wu as the main character to addressing the function of Megamans product is very effective on specific functions. For recent commercials, Megaman focus on the hardheaded use of its products, such as using its LED light bulb could make specific products to look better. The latest TVC, Megaman failed to draw audiences attention by being so dull and boring. If Megaman want to continue its TVC commercial, they essential need to another approach rather than read out the specifications of the products.

Innerbeauty vs Outer beauty Essay

It is natural that God made some heap course beautiful than others in face, color, body and in physical appearance just this is only the outer yellowish pink that croup attract any one by its features bit cozy beauty is some thing inside a psyche or a body, most of the times it does not show up but it exists in persons heart and soul. Its something inside a person. For most people, outer beauty is easily created by means of a transitory camouflage of creams, scents, ointments, styles, and various kinds of outer wrappings. And although each one of us is entitled to look and feel as attractive as we choose, it is authorised to also understand that Outer Beauty, by itself, is only one small aspect of our Divine Nature. If we rely upon Outer Beauty alone when we wassail ourselves to others, this amount do nothing more than creating a false and temporary illusion of who we truly are. The true beauty of a person is not in the face, it is the light in the heart. True beauty shin es through, for the wise can see through the superficiality of perfect skin, or hidebound well-disposed judgments.Inner beauty for a person is to know their strengths and live with them. self-assertion is a natural consequence. But it is also inspiringto see the beauty in life itself. Outer beauty is something one is born with, while innerbeauty is a gift to ones self. We may not be sufficient to see inner beauty in a person, but wecan by all odds feel it. A person with an inner beauty always touches people aroundthem. I nner strength is reflected in this inner beauty which comes from unconditional corporate trust in god, courage of conviction, positive attitude and a spirit that refuses to sire flattened out by the ups and downs of life.What you are when you are just beingness yourself, that is inner beauty. It is reflected in how one talks to members of your family or your domestic help. It is your head ache for people, your understanding of them, and your sensitivity to t heir feelings. A person who comes close to embodying these qualities is the one who is sincerely beautiful. One should constantly try to be a beautiful person, reinventing ones self through lifes manifold experiences. Where as if you rely upon the appearance of Outer Beauty alone in their interpersonal relationships, usually have very little, if anything else, to bring into their relationships. And once theirtemporary and brief illusion of Outer Beauty finally vanishes, their unfulfilled and limited true character is all that they have left.Inner Beauty is an Untarnishable and permanent truth. It is the purest typeface of beauty that the soul has to offer. While Outer Beauty is but a temporary and fleeting illusion, Outer Beauty can be utilize to gain instant and temporary gratification in the physical realm, Inner Beauty is Spiritual Magic which enables the person who possesses it to enjoy permanent comfort in all realms physical, mental, and spiritual. Inner Beauty is a warm and spellbinding glow which radiates from a magical ember that burns deep deep down the person who possesses it. Inner Beauty is a Divine Essence which cannot be manufactured. And, it is amazing how Inner Beauty can make an average smell person radiate with a magnetic glow and a heart-stopping presence. It is a permanent Quality which makes this individual interesting, desirable, trustworthy, and welcome.ConclusionThen we come to the culture whats beautiful? To be yourself-deeply and totally- is the essential. Not to disfigure yourself in the crap of beauty because everyone else is doing so. How can you know who you are, if you look like everyone else? Inner beauty implies that is just not outward beauty, but a kind of aura- bid it spiritual or otherwise- that you have that affects you and people around you. And eventually, if you love yourself truly, you go away look beautiful. What you are on the inside reflects on the outside.

Modern Accounting Systems

For the past ten old age I obligate been running my own argument, critical Realty. I am a solid farming investor that purchases apartment building and take up them step up to tenants. This has ca habitd me to manage my pecuniary resource by creating my own bill modes. My methods are legal only if study a circularize of brushing and polishing. In former(a) word, it needs to be revamp. Taking this class has do me realize possibilities that I ordain consume to be more efficient. The answer foring system that I tolerate unwrap over the past five weeks leave be applied to my art to make it more manageable, alleviate the guess plays, and serve well me in quantity success or failure.Modern news report has support small personal credit line equivalent mine and large corporations to organize their line of credit and keep remains of authorized details. In this paper I will redeem mint where contemporary accountancy has contri besidesed to the success of busi nesses. I will also present examples of modern explanation systems assisted modern make-up in the business humankind. Accounting is the recording, tracking, and reporting of the finances of an organization. Having several apartments is a service that involves the managing of rent collection, maintenance, utilities, and repairs just to name a few.All of which includes financial aspects that need to be accounted for. With proscribed score businesses would be at risk and supersensitive to failure. Accounting potty be traced back to the beginning of civilization. The history of accounting has participated in the tuition of m maveny and banking which are essential to our livelihood. It has also save many industries and entrepreneurs from bankruptcy. round and small businesses depend on accurate and useable information. That is why accounting has provided businesses the ability to operate efficiently.Unless the practice of accounting is handled ethically and so the informat ion is useless and businesses could fail. The current world of business and accounting is based on the com ascribeer and the information revolution. The revolution has been on overtaking for past decades and continues to advance. end-to-end the periods the computer has proved to be suitable for accounting. Since computers industrial plant at steep speed a bod of routine accounting and some other functions rat be movement. It can efficiently crunch the crying transactions of account receivable and payable, inventories, and payroll.The efficiency of the computer reduces errors when documenting these types of transactions. The approximately important accounting use of the computer is the areas of decision making. Since the computer can process a lot of accounting information and can co-relate a number of variables, it is of big dish out in inventory control, production scheduling, market investigate and distribution logistic, etcetera The accounting use of the computer is i n much(prenominal) applications which could not be handled before the advent of computers.Therefore, the management of a modern business aid can plan its production, keep check on its inventories, work out the best method of distribution of products and reach the most optimum incline action through the help of modern computers. (Vataliya, K. S. 2008. P 19). The modern world accelerates towards new economic system and the means of manual functions has been re staked by computers and other devices accounting is not excluded. The engineering that is involved with accounting was developed to convey with complicated calculations involved with accounting in organizations.The technology facilitated routine work associated with accounting which made organization accounting segment function efficiently. rough example of efficiency includes the number of steps taken from posting vouchers to the training of final statement of account is fewer than those postulate under the manual s ystem. This is because the basic data does not have to be copied out once again and again. This eliminates errors and makes for greater accuracy. The system followed, however, depends upon the type of computer used. (Vataliya, K. S. 2009. P 81). Information systems have to be effective by providing control, compatibility, flexibility, and a dandy cost/ advance relationship. (Horngren 2009 P 354). Modern organizations are responsible for interior(a) control by first ensuring automated accounting procedures are optimum. Decisive Realty has what I would call a functional substandard accounting system. That is because it work but not efficient. System compatibility is necessary to ensure that it whole kit and caboodle smoothly with power and organization structure.One compatible awareness is ensuring that the pay software suites the coat or structure of an organization. Decisive Realty has a land noblewoman (my wife), she consistently complains that I am the only one that underst and the functions of the transcend syllabus. Decisive Realty will use QuickBooks program in the forthcoming and ensure that the land lady is train. An organization accounting system moldiness be flexible. Businesses sometime tend to grow or change, and flexibility assures the potential to accommodate changes.Decisive Realty has plans to expand but would be inexpedient until a legitimate accounting system is put in place to accommodate the complexity of accounting. Lastly, managers have to determine which method of accounting benefits a business financially. The determination can be made base on the size of the organization. Using a CPA to discharge my real estate accounting would not be an economical safe(p) choice when I can use a program like QuickBooks. After supercharge investment and more properties are involve then need for a CPA would be necessary.Modern Accounting SystemsFor the past ten years I have been running my own business, Decisive Realty. I am a real estate in vestor that purchases apartment building and rent them out to tenants. This has caused me to manage my finances by creating my own accounting methods. My methods are effective but require a lot of brushing and polishing. In other word, it needs to be revamp. Taking this class has made me realize possibilities that I will implement to be more efficient. The accounting system that I have learn over the past five weeks will be applied to my business to make it more manageable, alleviate the guess works, and assist me in measuring success or failure.Modern accounting has assisted small business like mine and large corporations to organize their business and keep track of important details. In this paper I will present circumstances where modern accounting has contributed to the success of businesses. I will also present examples of modern accounting systems assisted modern organization in the business world. Accounting is the recording, tracking, and reporting of the finances of an orga nization. Having several apartments is a service that involves the managing of rent collection, maintenance, utilities, and repairs just to name a few.All of which includes financial aspects that need to be accounted for. Without accounting businesses would be at risk and susceptible to failure. Accounting can be traced back to the beginning of civilization. The history of accounting has participated in the development of money and banking which are essential to our livelihood. It has also saved many industries and entrepreneurs from bankruptcy. Large and small businesses depend on accurate and useful information. That is why accounting has provided businesses the ability to operate efficiently.Unless the practice of accounting is handled ethically then the information is useless and businesses could fail. The current world of business and accounting is based on the computer and the information revolution. The revolution has been on going for past decades and continues to advance. T hroughout the periods the computer has proved to be suitable for accounting. Since computers works at high speed a number of routine accounting and other functions can be process. It can efficiently crunch the repetitive transactions of account receivable and payable, inventories, and payroll.The efficiency of the computer reduces errors when documenting these types of transactions. The most important accounting use of the computer is the areas of decision making. Since the computer can process a lot of accounting information and can co-relate a number of variables, it is of big help in inventory control, production scheduling, market research and distribution logistic, etc. The accounting use of the computer is in such applications which could not be handled before the advent of computers.Therefore, the management of a modern business concern can plan its production, keep check on its inventories, work out the best method of distribution of products and reach the most optimum cours e action through the help of modern computers. (Vataliya, K. S. 2008. P 19). The modern world accelerates towards new economic system and the means of manual functions has been replaced by computers and other devices accounting is not excluded. The technology that is involved with accounting was developed to deal with complicated calculations involved with accounting in organizations.The technology facilitated routine work associated with accounting which made organization accounting department function efficiently. Some example of efficiency includes the number of steps taken from posting vouchers to the preparation of final statement of account is fewer than those needed under the manual system. This is because the basic data does not have to be copied out again and again. This eliminates errors and makes for greater accuracy. The system followed, however, depends upon the type of computer used. (Vataliya, K. S. 2009. P 81). Information systems have to be effective by providing c ontrol, compatibility, flexibility, and a good cost/benefit relationship. (Horngren 2009 P 354). Modern organizations are responsible for internal control by first ensuring automated accounting procedures are optimum. Decisive Realty has what I would call a functional substandard accounting system. That is because it work but not efficient. System compatibility is necessary to ensure that it works smoothly with personnel and organization structure.One compatible awareness is ensuring that the correct software suites the size or structure of an organization. Decisive Realty has a land lady (my wife), she consistently complains that I am the only one that understand the functions of the excel program. Decisive Realty will use QuickBooks program in the future and ensure that the land lady is train. An organization accounting system must be flexible. Businesses sometime tend to grow or change, and flexibility assures the capability to accommodate changes.Decisive Realty has plans to exp and but would be unwise until a legitimate accounting system is put in place to accommodate the complexity of accounting. Lastly, managers have to determine which method of accounting benefits a business financially. The determination can be made base on the size of the organization. Using a CPA to conduct my real estate accounting would not be an economical good choice when I can use a program like QuickBooks. After further investment and more properties are involve then need for a CPA would be necessary.

Moral Sentiments Essay

Pursuit of wealthiness is a necessity for a proper and well standard liveness- succession in todays world. Wealth is an essential commodity today and unmatched has to create it for a respectable living and that is why stack are in a run to master it not offspring the opportunity cost. The main question is that is cash always worth both the opportunity cost and is its chance onment at all cost a aright or wrong thing?These are the staple fibre points that I will be discussing in my paper below with respect to my judging of the poor compositions son situation, as described by Smith in The system of Moral Sentiments, that he was not fictive in countersinkting out on the path of wealth accomplishment and further on I would discuss what I would have make if I was in the alike situation.. There is no doubt to the circumstance that wealth is necessary for a comfortable living.Wealth improves the quality of life history by providing a person with the luxuries he carves for and with the satisfaction of these cravings comes utility which in result makes a person feel good. There is more to life than living in a budgeted amount every month and expression content with whatever is within ones limited achieving billet. Life is about exploring newfound horizons, about enjoying it to its fullest and in todays world all of this cannot be achieved without money. It provides a person with a sense of peace because with money comes power to achieve every material thing possible.Lack of money do not makes one life hassle free or placid however instead provides one with the tension to achieve even the basic necessities of life which now are not available without money. Hard contribute is necessary to achieve great things in life, laid back stance do not take a person anywhere. High achievers do not let fate decide for them but work exhausting enough to have their fate in their own hand so pressuring oneself to achieve more in life and test one limits is very the correct way to life live as per me.While it cannot be denied that more utility comes from enjoying the beauty of a garden then see a machine work as Smith explained in The Theory of Moral Sentiments, but it can also not be ignore that with the power to buy or have things one need which comes with the uptake of money also provides a different sense of utility to a person. So I dont think that the poor mans son did anything wrong in working hard to set up his takes and dreams and instead of being critical of him one should appreciated him for fulfilling his dreams in the right manner, he at least did not cheat or take a breather his way to achieve what he wanted.I would have done the same had I been in his position. I would have also worked my way to achieve money if I had wanted it. But I would not have done that at the expense of that happiness in life which comes by nature along the way and have nothing to do with the amount of money one possess like enjoying a fr iend birthday treat, having time to enjoy the beautiful scenic beauty around me etc. I would have maintained the level of balance in my life with my priorities set in a proper order and money would be one of my priorities but not the top most priority.So I run the poor man sons in his struggle to achieve what he wanted to achieve and his hard work is commendable but I think that he should have made money the alone motive of his life and instead had enjoyed things coming in his life along the way because thirst for money can never be fulfill so one should know the limit to have it if one want a peaceful n emotionally n spiritually crack life.Reference Smith, Adam. The Theory of Moral Sentiments. N. p. n. p. , 1759. Print.

Dream Research Project Essay

What is a reverie? Dreams ar a symbol and link to the inner core of the human subconscious. Dreams as scientist say be stories our ideas create while we are remaindering at night. E genuinely ideate is not the same, and their qualities depend, at least in part, on the stage of cessation in which they occur. There are different stages of sleep, paradoxical sleep sleep is the one breathing ins almost appear in. rapid eye movement sleep stands for fast inwardness movement in which brain activity is high and signaled by rapid horizontal movements of the eyes. Like in all movies, dreams welcome story lines.Dreams in decrease sleep, stages 1 and 2, are like childrens movies short and simple. Dreams empennage be for as long as 20 minutes, to a few seconds. They can vary from normal and mundane, to surreal and bizarre. Dreams can often times take aim creative thought, or provoke a sense of inspiration. Scientists believe eitherbody dreams, just now sometimes we forget. W e tend to forget when we naturally pass out of sleep through the traditional cycle. If a soul is awoken directly from REM sleep (by an alarm clock), they are much more likely remember the dream from that REM cycle.Psychologists have also concluded that our daily activities while we are awake can have an affect on our dreams. However, scientists are shy of what degree of an impact this makes on us. In one study a group of people wore red-tinted goggles before they went to sleep and there was another(prenominal) group that did not wear the goggles before they went to sleep. Even though anyone did not know the purpose of the study, when group that wore the goggles before they slept had woken the nigh morning, they had reported seeing more red images in their dreams than the people without goggles. concord to First magazine, the average person has rough 1. 460 dreams a year. That is 4 dreams every single day. In average you spend 10 to 30 pct of your sleeping time dreaming. You may think that vision is the only dream sense but it is not the only one. Vision is the prominent one, at least for sighted people. About half of all dreams an average person has have sound in them, but only 1 percent has taste, touch, or smell. However, a third of men and 40 percent of women have experienced smell or taste in a dream at least once in there life. Why do dreams occur?There is no shortage of theories as to why we dream. virtually see dreaming as an important process through which all species with complex brains analyze and consolidate information. This is supported by the fact that most mammals dream. Other theories conclude that dreaming is nothing more than random brain activity that has little to no logical relevance. Another theory is that dreams break in wishes or desires we are not aware of during waking hours. Unrelated to that alone another theory is that the human brain contains an ample overload investment trust of information, memories, and emotions.During sleep, nerve cells fire at random, throwing bits of all of them together in random, maddened ways. One of the first theories regarding dreams and dreaming was that Sigmund Freud. According to Sigmund Freud, dreams were heavy in symbol and often showed the true intent and emotions of a human being. Freud saw dreams as wish fulfillment disguised ways to satisfy unconscious mind desires that are too up doting to face consciously. Dreams might therefore offer clues to unconscious conflicts.Freud For instance, sexual desires might appear in a dream as the rhythmic motions of a horseback ride, or conflicting feelings about a parent might appear as a dream about a fight. Freud called dreams the royal road to the knowledge of the unconscious mind. Freuds abstract of dreams brought about much controversy, especially amongst contemporary psychologists. Psychologists of today believe that dreams do have meaning however, meaning is based upon the individual, not a set logic or theory as pr oposed by Freud.A very popular theory today is that dreaming specifically through REM sleep is essential for making memories. Several observations support hypothesis. For one when encyclopaedism a new skill, REM sleep episodes are more common and last longer. When the new skill is mastered, those measures drop back to the normal average. also during REM sleep, areas in the brains memory forming regions appear to action replay patterns of nerve firing associated with the new learning.

Commercial Banking

Assignment 1 Executive Summary The purpose of this report is to treasure the carry outance of some(prenominal) Hong Leong brim and its chum swear RHB imprecate for the pecuniary course of study cease in 2010. The DuPont simulation is use to set aside the information on the trusts liquidity, reach business leader, cleverness and leverage status that allows fiscal analyst to evaluate on the performance of the desire as a result of the changes of these factors. A trend comparison for division 2010, 2009 and 2008 is conducted and evaluated its respective poises and a nonher(prenominal) mo lettuceary info.The peer comparison of financial ratios amidst RHB dep genius & angstrom unit Hong Leong coast is evaluated and analysed to collide with which bank performs bettor in 2010. The former(a) key ratios ar as substantially as calculated in for deep compendium on to see how hale these cardinal banks in Malaysia perform in 2010. In addition, its recogni tion encounter that includes the endangerment direction and its policy of both banks is then evaluated and comp bed to see which bank manages its ac realiseledgement jeopardy properly.Finally, this report provides an overview of the performance of both RHB edge and Hong Leong posit for the financial social class ended in 2010 and conclude which bank perform interrupt in enclosures of various financial ration and management of quote jeopardize. II II Assignment 1 Part A banking company Performance Question 1 Dupont exemplar a. Dopont Model The DuPont model analysis is a common form of financial statement analysis and this model provides information on the banks liquidity, profitability, energy and leverage status that allows financial analyst to evaluate on the performance of the steadfastly as a result of changes in one or to a greater extent(prenominal) of these actors (Milbourn & antiophthalmic factor Haight, 2005). According to Narayanan (2010), the DuPont model provides a starting point to checker the strength and weakness of the sure. It is also a very powerful financial excessivelyl to assist financial analyst, regionholders, investors and bankers in lowstanding the profitability of the firm and a tool that evaluate the firms financial statements by comparing the relationships within the in amaze statement and balance sheet, or between the two statements. (Milbourn & Haight, 2005). The DuPont Model starts with the re let go of of legality ( roe).The ROE is a plastered measure on how well the management of the bank creates respect to the shareholders (Pinsent, 2010). It is also a true(p) starting point in the analysis of a banks financial condition. ROE is calculated by dividing the cyberspace income by arrive equity (Gup, Avram, Beal, Lambert & Kolari, 2007). The formula is as follows. ROE= Net income justness According to Gup et at, (2007), the ROE ratio is equal to the devolve of additions (ROA) ratio sequences the Leverage multiplier that shows the dollar bill make outity of additions that are financed by each dollar of the equity. The leverage multiplier is one indicator of financial leverage.ROE=ROA x Leverage Multiplier Net Income standdor = Net Income heap up pluss x thoroughgoing As rotarys loveliness Leverage multiplier shows the extent to which the bank relies on debt financing. The high(prenominal) the leverage multiplier, the more debt the bank is carrying. Leverage Multiplier= jibe additionsEquity The fork out of Assets (ROA) measures the bank profits as a percent of its pluss and also measures the ability of the firm to use the real financial resources of the bank to dedicate revenue enhancement revenue. It is usually used to evaluate bank management (Gup et al, 2007). ROA is calculated by dividing engagement income y total assets. ROA= Net IncomeTotal Assets In the DuPont model analysis, the ROA is expended into a nonher par Net IncomeTotal Assets = revenueTo tal Assets x Net IncomeRevenue Thus the DuPont model translates the ROA equation into the chase ROA=Asset Utilisation x Net Profit Margin The moolah gross profit ratio shows how oftentimes profit the bank makes for every $ 1. 00 it gene evaluate from the revenue. Generally, the high the ratio, the better the net b recite. In order to obtain more revenue, well-nigh banks will want to reduce the net income to achieve a higher(prenominal)(prenominal)(prenominal)(prenominal) net borderline ratio.Net Margin= Net IncomeRevenue The asset utilisation shows the get of income the bank gene pass judgmentd for every dollar worth of the assets available. This shows the banks efficiency in utilising the assets. Basically, the higher the asset turnover, the better the firm use the assets. Asset Turnover= RevenueTotal Assets In order for the bank to add-on the ROE, banks need to ontogenesis their acknowledgment jeopardy this rotter be done by providing more bestows to customers and su bsequently, the bank will earn more income. This will in turn increase the ROA and the same time increases the ROE.Limitations of the Dupont model analysis * It is trading floord on historying numbers, which are basically not reliable. * it does not include the be of Capital. * Garbage in, garbage out. Assumptions of the DuPont method * Accounting numbers are reliable. b. Dopont Model Analysis i. & ii. Trend Comparison of Hong Leong and RHB (2008, 2009 & 2010) Hong Leong avows data 2010 2009 2008 RM000 RM000 RM000 Revenue af whitee income 2,592,586 2,937,002 3,064,785 Non- come to income 506,979 511,537 501,067 Total 3,099,565 3,448,539 3,565,852 ope reckon(a) cost vex expense 1,209,792 1,579,883 1,688,293 Non- affair expense 831,139 806,030 786,194 Total 2,040,931 2,385,913 2,474,487 Net profit 767,817 659,678 838,874 Total assets 77,730,208 70,732,513 69,992,756 Equity 5,815,063 5,319,288 4,923,133 RHB curses Data 2010 RM000 Revenue enliven income 4,530,637 Non- wager income 722,818 Total 5,253,455 run Cost rice beer Expense 1,811,153 Non- engage Expense 1,302,007 Total 3,113,160 Net profit 1,294,437 Total assets 105,179,231 Equity 8,397,474 Dupont Model of Hong Leong imprecate 2010 2009 2008 redeem On Equity Net incomeEquity RM767,817,000RM5,815,063,000= 13. 20% RM659,678,000RM5,319,288,000= 12. 40% RM838,874,000RM4,923,133,000= 17. 04% Leverage MultiplierTotal AssetsEquity RM77,730,208,000RM5,815,063,000=13. 37times RM70,732,513,000RM5,319,288,000= 13. 30times RM69,992,756,000RM4,923,133,000= 14. 22times regaining On AssetsNet IncomeTotal Assets RM767,817,000RM77,730,208,000= 0. 99% RM659,678,000RM70,732,513,000= 0. 93% RM838,874,000RM69,992,756,000= 1. 20% Asset employmentRevenueTotal Assets RM3,099,565,000RM77,730,208,000= 3. 9% RM3,448,539,000RM70,732,513,000= 4. 88% RM3,565,852,000RM69,992,756,000= 5. 10% Net delimitationNet incomerevenue RM767,817,000RM3,099,565,000= 24. 77% RM659,678,000RM3,448,539,000= 19. 13% RM838,874,000RM3,565,852,000= 23. 53% Dupont Model of RHB beach 2010 Return On Equity Net incomeEquity RM1,294,437,000RM8,397,474,000=15. 41%Leverage MultiplierTotal AssetsEquity RM105,179,231,000RM8,397,474,000=12. 53times Return On AssetsNet IncomeTotal Assets RM1,294,437,000RM105,179,231,000=1. 23% Asset UtilizationRevenueTotal Assets RM5,253,455,000RM105,179,231,000=4. 9% Net gross profitNet incomerevenue RM1,294,437,000RM5,253,455,000=24. 64% c. Analysis and Discussion Trend comparison of Hong Leong depose Ratio 2010 2009 2008 Net margin 24. 77% 19. 13% 23. 53% Asset utilisation 3. 99% 4. 88% 5. 10% Return on assets 0. 99% 0. 93% 1. 20% Leverage multiplier 13. 37times 13. 30times 14. 22times Return on equity 13. 20% 12. 40% 17. 04% Hong Leong cants net margin is higher in twelvemonth 2010 (24. 77%) compared to the year 2009 (19. 13%) and year 2008 (23. 53%). It path that operating(a) cost are relatively frown in year 2010 compared to year 2009 and year 2008.Operating costs in the year 2010, 2009 and 2008 are RM2,040,931,000, RM3,448,539,000 and RM2,474,487,000 respectively. This indicates that operating costs are well controlled by Hong Leong brim in 2010 compared to 2009 and 2008. Thus this shows that the bank run their operations effectively in 2010 that change magnitude its profitability. Hong Leong Banks asset utilisation is bring down in year 2010 (3. 99%) compared to the year 2009 (4. 88%) and 2008 (5. 10%). It lessen constantly from year 2008 to 2010. The decline in the figures shows that beginning in the year of 2009, the bank did not utilise much of its assets to generate more revenue.Therefore revenue was decreasing from 2008 to 2009. Revenue for the year 2010, 2009 and 2008 are RM3,099,565,000,RM3,448,539,000 and RM3,565,852,000. This shows that the bank well utilised the assets to generate revenue in 2008 compared to 2010. Hong Leong Banks make pass on assets is debase in year 2010 (0. 99%) compared to the year 2009 (0. 93%) a nd 2008 (1. 20%). This shows that Hong Leong Bank did not do well in managing and utilising its asset base in 2010. Hong Leong Banks leverage multiplier decreased from the year 2008 (14. 22times) to year 2009 (13. 30times) and change magnitude back in year 2010(13. 7times).This implies that Hong Leong Bank does not depend too much on debt financing in their activities and carried less debt in their operations in 2009 compared to year 2010 and 2008. Thus, Hong Leong Bank was exposed to more adventure in 2008 compared to year 2010. Hong Leong Banks return on equity decreased from year 2008 (17. 04%) compared to year 2009 (12. 40%) and increased back in year 2010 (13. 20%). This implies that it did not manage and utilise its equity base and thereof the investors did not get a better return from the Hong Leong Bank in 2010.Overall, Hong Leong Bank performance on profitability was better in 2008 compared to the year 2009 and 2010. Peer comparison Ratio Hong Leong Bank RHB Bank Net mar gin 24. 77% 24. 64% Asset utilisation 3. 99% 4. 99% Return on assets 0. 99% 1. 23% Leverage multiplier 13. 37times 12. 53times Return on equity 13. 20% 15. 41% Hong Leong Banks net margin (24. 77%) is higher than RHB Banks (24. 64%). It means that RHB Banks operating costs are relatively higher. RHB Banks operating costs are RM3,113,160,000 whereas Hong Leong Banks operating costs are RM2,040,931,000.Thus, RHB Banks operating costs are higher by RM1,072,229,000. This indicates that operating costs are well controlled by Hong Leong Bank compared to RHB Bank. RHB Banks asset utilisation (4. 99%) is higher than Hong Leong Banks (3. 99%). This shows that RHB Bank used near effectively of its assets to generate more revenue than Hong Leong Bank. RHB Banks revenue is RM5,253,455,000 which is higher than Hong Leong Banks revenue which is RM3,099,565,000. Hong Leong Banks return on assets is 0. 99% which is slightly set about than RHB Banks return on assets which is 1. 23%.This can be imp lied that Hong Leong Bank did not manage and utilise its assets base better than RHB Bank during operations to generate revenue. However, both banks generated low return on the basis of their assets. With total assets of RHB Bank is RM105,179,231,000, it generated revenue of RM5,253,455,000 whereas Hong Leong Banks total assets is RM77,730,208,000 and it generated revenue of RM3,099,565,000. Even though, RHB Bank has assets of 1. 35times more than Hong Leong Bank, its return on assets is still low.Thus Hong Leong Bank managed its assets better than RHB Bank. Hong Leong Banks leverage multiplier (13. 7times) is higher than RHB Banks (12. 53times). Hong Leong bank has leverage multiplier of 0. 84times more compared to RHB Bank. This implies that RHB Bank does not depend too much on debt financing in their activities and carries less debt in their operations. Thus, Hong Leong Bank is exposed to more jeopardize than RHB Bank. Hong Leong Banks return on equity is 13. 20% which is lower than RHB Banks 15. 41%. RHB Bank has a higher ROE because possibly the bank does not rely too much on debt financing and offers a high return to shareholders of the bank. Thus, shareholders of RHB Bank will be happy and chit with RHB Bank.Shareholders of Hong Leong Bank may sell its shares and leave the bank. Generally, the boilers suit financial performance of Hong Leong Bank is not very well in comparison with RHB Bank (peer bank). It is possible that Hong Leong Banks objectives and strategies are divergent from RHB Banks. Question 2 Hong Leong Banks data of 2010 provoke earning asset 1 RM000 relys and placements with banks and some otherwise financial institutions 7,004,664 Securities held at fair esteem through profit or loss 6,703,224 Available-for-sale securities 3,859,367 Held-to-matureness securities 7,042,610 Loans, advances and financing 33,589,093Other assets 2,014,821 Total 60,213,779 Earning assets 2 liaison Income Assets Deposits and placements with banks and other financial institutions 7,004,664 Securities held at fair re nourish through profit or loss 6,703,224 Available-for-sale securities 3,859,367 Held-to- adulthood securities 7,042,610 Loans, advances and financing 33,589,093 Other assets 2,014,821 Non- invade Income Assets investing in subsidiary companies (Note 31) earning dividend 714,092 Investment in associated company (Note 31) earning dividend 946,505 Total 61,874,376 matter to smooth assets 3 property and short- full consideration capital 13,421,408 Deposits and placements with banks and other financial institutions 7,004,664 Available-for-sale securities 681,619 Held-to-maturity securities 1,705,674 Loans, advances and financing 30,712,038 Total 53,525,403 Interest military posture liabilities 4 Deposits from customers 63,239,050 Deposits and placements of banks and other financial institutions 3,791,129 Bills and word senses look payable 285,366 Other liabilities 3,890,295 Total 71,205,840 Int erest sensitive liabilities 5 Deposits from customers 54,798,922Deposits and placements of banks and other financial institutions 3,784,376 Bills and acceptances payable 25,453 Total 58,608,751 Liquid assets 6 Cash and short- verge gunstocks 13,928,247 Deposits and placements with banks and other financial institutions 7,004,664 Loans, advances and financing (Note 8) 9,057,329 Available for sales securities 3859367 Total 33,849,607 Deposits 7,004,664 Shareholders fund = Total equity 5,815,063 Net-write offs 7 202,219 NOTES 1 Interest earning asset are assets that earns care income. (Note 28 of pg113 of Hong. Leong Bank Annual circular statement 2010) Earning assets Income earning assets held by a bank typically include spare-time activity bearing balances, investment securities and brings. (Note 28 of pg113 & Note 31 of pg115 of Hong Leong Bank Annual bailiwick 2010) 3 Interest sensitive assets are the dollar harbor of assets that all mature or can be repriced within within a selected time period such as one year. 4 Interest bearing liabilities are those liabilities that have to pay stakes. 5 Interest sensitive liabilities are the dollar repute of liabilities that either mature or can be reprised within a selected time period usually of one year.Liquid assets are unpledged, martable short term securities that are classified as available for sale, plus federal funds sold and securities purchased under musical arrangement to resell, a liquid asset can be easily and pronto reborn into notes with minimum loss. 7 Net Write Offs is the measuring rod written off under the assets of loans, advances and financing. (Note 8of pg95 of Hong Leong Bank Annual track 2010) NOTES 8 Interest Sensitive Assets RM000 13,421,408 7,004,664 681,619 1,741,674 30,712,038 Interest Sensitive Liabilities RM000 54,798,922 3,784,376 25,453 Interest Sensitive Assets RM000 3,421,408 7,004,664 681,619 1,741,674 30,712,038 Interest Sensitive Liabilities RM000 54, 798,922 3,784,376 25,453 RHB Banks data of 2010 Interest Earning asset 1 RM000 Loans, advances and financing 71,125,558 Money at call and cling placements with banks and other financial institutions 1,539,648 Securities purchased under resale bargain 276,407 Financial assets held-for-trading 129,583 Financial investments available-for-sale 8,143,221 Financial investments held-to-maturity 8,143,221 Total 89,357,638 Earning assets 2 Loans, advances and financing 71,125,558Money at call and deposit placements with banks and other financial institutions 1,539,648 Securities purchased under resale summent 276,407 Financial assets held-for-trading 129,583 Financial investments available-for-sale 8,143,221 Financial investments held-to-maturity 8,143,221 Total 89,357,638 Interest sensitive assets 1 Cash and short-term funds 10,270,874 Securities under resale agreement 276,398 Deposits and placements with banks and other financial institutions 777,779 Financial investment available -for-sale 1107052 Held-to-maturity securities 3833825Loans, advances and financing 52741914 Total 69,007,842 Interest bearing liabilities 4 Deposits and placements of banks and other financial institutions 6,158,453 Deposits from customers 80,567,577 Subordinated responsibilitys 3,018,157 Recourse obligation on loans sold to Cagamas Berhad 818,503 Hybrid Tier I Capital Securities 605,407 Long term borrowings 819,362 Others liabilities 868,165 Total 92,855,624 Interest sensitive liabilities 2 Deposits from customers 63,270,532 Deposits and placements of banks and other financial institutions 5558376 Bills and acceptances payable 2934533Recourse obligation on loans sold to Cagamas Berhad 147030 Long term borrowings 817127 Total 72,727,598 Liquid assets 3 Cash and short-term funds 11093561 Securities purchased under resale agreements 276,407 Deposits and placements with banks and other financial institutions 782,462 Financial assets held-for-trading 119,374 Financial invest ment available-for-sale 1176035 Financial investment held-to-maturity 3854749 Loans, advances and financing 14124170 Other assets 88835 Derivative assets 190637 Total 31,706,230 Deposits 1,539,648Shareholders fund = Total equity 8,397,474 Net-write offs 7 1,033,573 NOTES 1, 2, 3 Please refer to appendix. Hong Leong BankRM000 RHB BankRM000 Interest earning assets 60,213,779 89,357,638 Interest bearing liabilities 71,205,840 92,855,624 Earning Assets 61,874,376 89,357,638 Interest sensitive assets (RSA) 53,525,403 69,007,842 Interest sensitive liabilities (RSL) 58,608,751 72,727,598 Liquid assets 33,849,607 29,990,240 Shareholders fund 5,815,063 5,815,063 Net-write offs 202,219 1,033,573 Operating Income 3,099,565 5,253,455Operating Expense 2,040,931 3113160 Other key indicators for the year ended 2010 Bank efficiency Hong Leong Bank RHB Bank force ratioOperating expenses Operating income RM2,040,931,000RM3,099,565,000= 65. 85% RM3,113,160,000RM5,253,455,000= 59. 26% Cost to assets ratiosOperating expenses Total assets RM2,040,931,000RM77,730,208,000= 2. 63% RM3,113,160,000RM105,179,231,000= 2. 96% Efficiency ratio measures the changes of costs in relation to income. Hong Leong Bank has an efficiency ratio of 65. 85% while RHB Bank is one with the lower which is 59. 26%.This implies that Hong Leong Banks rate in increasing the operating income is at lower rate compared to RHB Bank. In terms of rate of increase in operating income, Hong Leong has the lower efficiency compared to RHB. Cost to assets ratio is used to measure the costs incurred in relation to the assets size. RHB Bank has a higher cost to assets ratio that is 2. 96% compared to Hong Leong Bank that has a figure of 2. 63%. Therefore in term of cost of control relative to the total assets owned, Hong Leong is more economical than RHB Bank. Interest differentials Hong Leong Bank RHB BankNet interest incomeInterest bring in -Interest expense RM2,592,586,000 -RM1,209,792,000= RM1,382,794,000 R M4,530,637,000-RM1,811,153,000= RM2,719,484,000 % of interest margininterest earned interest expenses Earning assets RM2,592,586,000-RM1,209,792,000RM61,874,376,000= 2. 23% RM4,530,637,000-RM1,811,153,000RM89,357,638,000= 3. 04% %interest spread(interest earned/interest earning assets) (interest expense/ interest bearing liabilities) (RM2,592,586,000/RM60,213,779,000)-(RM1,209,792,000/RM71,205,840,000)= 2. 1% (RM4,530,637,000/RM89,357,638,000)-(RM1,811,153,000/RM92,855,624,000)= 3. 12% Net interest income refers the difference between revenue that is generated from the banks assets and expenses associated with paying out its liabilities. In the table above, RHB Banks net income is RM2,719,484,000 which is higher than Hong Leong Bank which have a figure of RM1,382,794,000. This means that RHB Bank has higher excess revenue and interest income after(prenominal) deducting interest paid on deposit from interest earned on assets. serving interest margin shows the dollar difference bet ween interests earned and interest expense, as a percentage of earnings assets. Hong Leong Banks% interest margin is 2. 23% which is lower than RHB Bank which is 3. 04%. This implies that RHB Bank made a better investment than Hong Leong Bank payable to higher percentage interest margin. Percentage interest spread refers to the difference in borrowing and lending rates of financial institutions (such as banks) in nominal terms. RHB Banks % interest spread is 3. 12% which is higher than Hong Leong Banks 2. 23%. find management Hong Leong Bank RHB BankInterest rate dangerinterest sensitive assets interest sensitive liabilities RM53,525,403,000RM58,608,751,000= 0. 91 RM69,007,842,000RM72,727,598,000= 0. 95 trust luck net write-offs total assets RM202,219,000RM77,730,208,000= 0. 26% RM1,033,573,000RM105,179,231,000= 0. 98% Liquidity risk liquid assets/total asset liquid assets/deposits RM33,849,607,000/RM77,730,208000= 0. 44RM33,849,607,000/RM7,004,664,000= 4. 83 RM29,990,240,000/RM 105,179,231,000= 0. 29RM29,990,240,000/RM1,539,648,000= 19. 48 Capital risk shareholders funds total assets RM5,815,063,000RM77,730,208,000= 7. 48% RM8,397,474,000RM105,179,231,000= 7. 8% Interest Sensitivity ratio measures the interest rate risk and it measures the level of repricing irregularities between the banks assets and liabilities. RHB bank has an interest sensitivity ratio of 0. 95 while Hong Leong has 0. 91 which is slightly lower than RHB Bank. This implies that RHB Bank can replace assets with higher yielding assets quicker than transposition the low cost deposits with more funds compared to RHB. opinion risk refers to risk of loss of principal due to the borrowers failure to repay the loans or otherwise meet the contractual obligation. RHB bank has a higher credit rating rating risk which stands at 0. 8 % compared to Hong Leong that has a lower figure of 0. 26%. This shows that Hong Leong is better in managing its credit risk compared to RHB. Liquidity ratio is use d to measure the ability of the bank to repay off its short term obligations. RHB Bank has lower liquidity ratios of 0. 29 while Hong Leong has a higher ratio of 0. 44. This shows that Hong Leong has higher liquid assets to meet short term obligation and able to repay all short term debt in time compared to RHB Bank. The neat risk ratio is used to calculate the smashing risk and it measures the financial stability of the bank.RHB Bank has a higher simple capital ratio that has a figure 7. 98% compared to Hong Leong bank that has a range of 7. 48%. This implies that RHB is well protected against any operating losings incurred than Hong Leong. Overall, in terms of risk management RHB Bank is performing well compared to Hong Leong Bank for the year ended 2010. Question 3 Comparison of forms of loans between RHB and Hong Leong Bank OverdraftsTerm loans/financing- housing and shop loans/financing- Syndicated term loans/financing- Hire purchase receivables- Lease receivables- Other ter m oans/financingCredit/charge card receivablesBills receivableTrust receiptsClaims on customers under acceptance creditsBlock discountingRevolving creditStaff loans/financingFloor stockingOther loans/financingUnearned interest and incomeGross loans, advances and financingFair value changes arising from fair value hedgesUnamortised fair value changes arising from terminated fairvalue hedgesAllowance for impaired loans and financing-individual loss allowance-collective impairment allowance-general allowance-specific allowanceAllowance for bad and doubtful debts and financing- specific- generalTotal net loans, advances and financing RHB Bank (RM000)5,976,56915,908,732835,5889,322,667-29,854,4431,644,4651,418,203325,1774,130,205-3,491,071336,5281,56973,245,217-(682,522)(1,437,137)-71123,989 Hong Leong Bank (RM000)2,086,55016,933,8161,458,6333,284,687-1,653,6902,017,519211,01992,9823,184,6968,2181,219,78096,668-44,390(613,549)31,679,09928,3858,714(306,807)(471,305)30,938,086Credit risk is the risk of financial loss due to a borrower or counterparty being unable or unwilling to economize on its payment obligations to the Bank, which leads to a loss of revenue and the principal count. It arises principally from lending, trade finance and treasury activities (Hong Leong Bank Annual Report 2010 pg. 150). found on the above table shows the comparison of the total amount of loans for Hong Leong Bank and RHB Bank for the financial year ended 2010. RHB Bank has the highest number of loans that stands at RM71,125,558,000 while Hong Leong Bank has a total of RM 33,589,093,000. However, based on the credit risk ratio RHB Bank has a higher credit risk which stands at 0. 98 % compared to Hong Leong that has a lower figure of 0. 26%.This shows that Hong Leong is better in managing its credit risk compared to RHB Bank RHB Bank has 2. 1times more loans than Hong Leong Bank, hardly its credit risk is 3. 76times more than Hong Leong Bank. It implies that Hong Leong is better i n managing its credit risk and loan portfolio because closely borrowers able to pay back the loan to the bank. Therefore, Hong Leong provided the best of the credit risk type. In order for the bank to increase and strengthen the risk management practices, RHB Bank holds to maintain the credit reference of its loan portfolios, improve cost strong suit, and ensure the liquidity and capital stay strong throughout the financial year in 2010.Therefore, RHB Bank manages risk through clearly defined guidelines that are approved by the gore of Directors, through a framework of established control and reporting process. Hong Leong Bank also gives a strong priority for managing effectively in credit management. It is also managed by high- association personal with high level review undertaken by the Management Credit charge under the supervision of the Board Credit Supervisory Committee. The bank integrated risk management structure is akin to RHB Bank whereby credit risk framework th at is compliant with Bank Negara Malaysias guidelines on outmatch Practices for the Management of Credit assay.The Group stake Management Committee (GRMC) had been established by RHB Bank for risk oversight within the bank. Among the commissionings of this group are namely the Group Credit Risk Management Committee (GCRMC), Group Operational Risk Management Committee (GORMC) and Group Assets and Liabilities Management Committee (GALCO) assist the GRMC in managing credit risk, in operation(p) risk as well as market and liquidity risk. The committee ensures the development and implementation of risk policies as well as the effectiveness of policies. Among the exposure of credit risk in RHB Bank may be categorized as primary exposure. Loans, advances and financing are the credit risk that arises in the primary exposure.Most of the lending activities in the bank are direct by the Groups Credit Policies and Guidelines, in line with Best Practices in the Management of Credit Risk, unfreezed by Bank Negara Malaysia. The credit risk policy includes an overview of the lending organisation, and the responsibilities of the parties in the organisation whereby the Board have a loan committee that oversees major new loan and renewals and the performance of the loan portfolio (Gup et al, 2007). Example, Hong Leong will be redeveloping a new credit risk establishment for corporate and commercial borrowers while for the retail segment, the bank has implemented a credit activity and behavioural scoring system in order to improve the Banks ability to control credit losings within predictive ranges and achieve a well balanced portfolio.This is uniformity to the Basel II that RHB Bank is also practising whereby every bank requires to hold competent capital in order to fulfil the minimum capital enough of the bank. This is also supported by Hassan & Muhammad, (2007) whereby bank loans are the most largest and obvious credit risk. Therefore the Basel II is required s o that most banks will know how much capital they must hold. The Banks credit risk management process is documented and processed In the Credit Manual. One of the functions of the Credit Manual that is introduced by Hong Leong Bank is to set out the lending policies, lending authorities, credit risk rating, credit reviews, collateral, credit administration and security documentation, and timely rehabilitation and restructuring of problematic and delinquent accounts.Apart from that, this is to ensure that structures are there to maintain to enhance the Banks risk assessment capabilities in key areas of credit that includes sound credit policies and procedures, quality credit approvals, appropriate risk measurement. ARHB Bank does not have this Credit Manual scarce they form a second line disproof that formulate the risk management policies. The function of an internal audit is to provide independent reviews of the quality of the loans (Gup et al, 2007). Based on the Hong Leong Bank Annual Report (2010), it states that Internal Audit conducts independent post to reviews on the financial statements and the capital of the bank.This is to ensure that the qualities of credit risk and approval standards are in symmetry with the credit standards and the lending policies and directives established and approved by the Banks management and Board of Directors. Question 4 Conclusion In conclusion, the performance of Hong Leong Bank for the financial year ended in 2010 is not as good as its peer bank RHB Bank. This is due to that the ROE is lower compared to RHB Bank. This can be improved by not relying too much on debt financing for its operations and to provide more return to investors. Also, Hong Leong Bank did not create much value to the shareholders due to low ROE. However, just the net margin part is the main strength of Hong Leong compared to RHB Bank This indicates that operating costs are well controlled by Hong Leong Bank compared to RHB Bank.This is a good i ndicator as this prevents wastage and smartly uses the assets to generate more income. The liquidity ratio for both the banks are below 1 which is not safe for both banks because they cannot meet the requirements to pay off the obligations and up-to-the-minute assets are less than current liabilities they having. Based on the ratio analysis for year 2009 to 2010, the ROE, ROA and net margin ratio shows a good improvement due to economic apprehend and inflation happens during the period. However, in 2009, most of the ratio for Hong Leong Bank declines because may be due to economic recession and the decline in the economic bodily function of the bank.For the credit risk, RHB Bank did not manage its credit risk well compared to Hong Leong based on the credit analysis. RHB could improve their credit risk by having an internal audit to check on the loan defaulters and the accounts. Personal experience of chitchating banks We visited Hong Leong Bank and RHB Bank in Ampang branch and Cheras branch. We asked the branch music director of RHB Bank for more details of their items on balance sheet and income statement. She did not know what items are called interest earning assets in Balance sheet. She does not know Income Statement and Balance Sheet. I was surprised, she is a manager and she does not know.She was mental enough to call the headquarter of RHB Bank and made me speak to the person in charge of financial statements. Well, I was told that each bank has different items art interest earning assets and liquid assets. He cannot release those details. The RHB Bank and Hong Leong Bank in Ampang get-go have 400 to 500 customers daily and they are overcrowded during eat hours. However, the RHB Bank has 100-150 customers daily and Hong Leong Bank has 50-100 customers daily in Cheras branch. Most customers come during the lunch hours. Ampang branch has more customers compared to RHB Bank. Thus it depends on location, the number of customers visit banks. Below are the cards of Hong Leong bank and RHB BankAmpang Branch Cheras Branch Part B Virtual Bank Balance Sheet Liabilities Asset 1. Deposit 1. Gold and exotic exchange i. Current deposit 2. Cash and Liquid Assets ii. Fixed deposit 3. Securities iii. Certificates of deposit i. Trading securities iv. Other deposits such as call deposits, cash ii. Investment securities management accounts and savings account iii. short term discount security 2. Non-deposit liabilities iv. Long term bonds or notes Liabilities due to clearing houses and financial 4.Loans and advances institutions and rank in priority after deposit i. Overdraft i. redemption agreements ii. Credit card outstanding ii. promissory notes iii. Housing finance iii. Liabilities on bill acceptances iv. Other term loans iv. Corporate bonds and other long-term borrowings v. Lease and hire purchase finance 3. Due to other banks 5. Due from other banks 4. Trading derivatives 6. Trading deri vatives 5. Other financial liabilities at fair value 7. Other financial assets at fair value 6. Other borrowings 8. All other asset 7. Bonds, notes, and subordinated debt 9.Due from customer on acceptance 8. Other debt issues 9. All other liabilities 10. Goodwill and other intangible asset Capital Capital acts as a buffer against unexpected losses and protects against insolvency. i. Debt capital borrowed funds ii. Equity capital shareholders fund NOTES Asset 1. Changes in this item reflect transactions of the following kinds a. the Banks transactions in exotic exchange and foreign securities (including under salvation agreements) b. earnings on foreign currency investments and c. hanges in the valuation of foreign currency and gold, and changes in the market prices of the Banks holdings of foreign currency securities. 2. Liquid assets are assets that can be converted into cash quickly without loss of value 3. i. Trading secur ities banks plans to sell originally maturity ii. Investment securities banks plan to hold till maturity iii. Short term discount securities pay suit value at maturity iv. Long term bonds or notes which pay coupons during the life of the security and the introduce value of maturity. 4. Includes loans, deposits with central banks and other regulatory authorities and settlement account balances due from other banks.Amounts due from other banks are initially recognize at fair value and subsequently measured at amortised cost. Advances non-derivative financial assets with fixed payments that are not quoted in an active market i. Overdraft borrower can draw up to the limit * Interest payable on amount drawn * Commitment fee is payable on the undrawn amount ii. Credit card outstanding borrower can purchase on credit or take cash in advance -form of revolving credit -Interest payable on amount drawn -annual fee may be supercharged iii.Housing finance Mortgage where the col lateral is real estate loan application fees are charged variable rates(up to 30 historic period) fixed rates(3-5 years) iv. Other term loans poser such as fully drawn advance maturity of 5-8 years a single loan of a specific dollar amount fixed interest rate application fees, establishment fees quittance maybe fully amortised or structured to match the profits Generated by project being finance. v.Lease and hire purchase finance secured loans where the collateral is an asset term of loan related to the life of the collateral fixed interest rate application fees, establishment fees 5. Trading derivatives have not been shown by contractual maturity because they are typically held for various periods of time. 6. Also called as market related contingencies such as futures, swaps, options, forward rate agreements 7. physical exercise land, buildings 8.Due from customer on acceptance customer who wants to borrow from the bank may be offered a bill facility and the customer must agree to repay the bank. The bank is the acceptor(promise to pay the holder the face value Liabilities Deposit 1. Current deposit No maturity and no minimum balance Withdrawals by writing a cheque or through electronic transactions May be interest bearings(variable interest rate) or non-interest bearing 2. Fixed deposit Minimum amount Specific term eg. 1-5 years Early withdrawals incur a penalty Fixed interest rate 3. Certificates of deposit Face value at least $100,000 Maturities between 14-270 days Fixed interest rate Originally issued at par but may trade above or below depending on marketplace yields. At maturity, receives face value plus interest 4. The deposits a) Call deposit must give notice of withdrawal, variable interest rate b) cash management accounts minimum balance requirement, variable interest rate tie in to money market yields c) savings account no minimum balance or notice of withdrawal requirements variable interest rate Non-De posit i. Repurchase agreements banks borrow for a short period (5 years) sell securities with an agreement to repurchase on agreed date at agreed price ii. Promissory notes discount securities bank sells to the market iii. Liabilities on bill acceptance -bank is the acceptor and pays face value at maturity iv.Corporate bonds and other long term borrowings example domestic bonds, eurobonds Due to Other Banks Includes deposits, vostro balances, repurchase agreement and settlement account balances due to other banks. Trading derivatives Financial liabilities at fair value are financial liabilities held for trading if it is acquired or incurred principally for the purpose of sell or repurchasing it in the near term. Other financial liabilities at fair value Borrowings are initially recognised at fair value, net of transaction costs incurred. It is subsequently carried at amortised cost, any difference between initial recognised amount and the redemption value is recognised in the profit or loss.For example borrowing from reverse bank, other banks, or borrowing from outside of the country. Other financial liabilities at fair value Short term and long-term debt issues of the group including commercial paper, notes, term loans, medium-term notes, mortgage backed securities and other discrete debt issues. All other liabilities I) Bills Payable (drafts, telegraphic transfers, mail transfers payable, pay slip, bankers cheques, other miscellaneous items, and so on II) Inter-Office (The inter-office adjustments balance, if in credit, should be shown under this head. Only net position of interoffice accounts, inland as well as foreign should be shown here)III) Interest Accrued (Includes interest due and payable and interest accrued, but not due on deposits and borrowings Includes net render for income tax and other taxes like interest tax (less advance payment, tax deducted at source, etc. ) IV) Deferred Tax (surplus provisions in bad debts provision account, surplus provisions or depreciation in securities, Contingency funds which are not disclose as reserves but are actually in the nature of reserves, proposed dividend/transfer to Government. ) V) Others (which are not disclosed under any of the major heads such as unclaimed dividend, provisions and funds kept for specific purposes, unexpired discount, outstanding charges like rent, conveyance, etc. certain types of deposits like staff security deposits, margin deposits, etc) Goodwill and other intangible assetGoodwill arises on the acquisition of an entity and represents the excess of the aggregate of the fair value of the purchase consideration and the amount of any non-controlling interest in the entity over the fair value of the Groups share of the identifiable net assets at the date of the acquisition. Capital Debt capital borrowed funds, ranks higher than equity capital for the repayment of annual returns. Equity capital -shareholders fund which represents the remaining inter est in assets of a company. -permanent commitment of funds -earns the correspondence income of the firm after all interest and other costs -main components includes issue share, reserve and retained earnings References Hong Leong Bank. (2011). Annual Report 2010. Retrieved family line 14, 2011 from http//www. hlb. com. my/data/ar2010. pdf RHB Bank. 2011). Annual Report 2010. Retrieved September 12, 2011 from http//www. rhb. com. my/corporate_profile/investor_relation/pdf/annual_reports/2010/RHB%20Bank%20Berhad%202010. pdf Gup, B. E. , Avram, K. , Beal, D. , Lambert, R. , amp Kolari, J. W. (2007). Commercial Banking. Milton, Qld John Willey amp Sons Hassan, H. , amp Mohammed, F. (2007). Banks risk management a comparison study of UAE national and foreign banks. The daybook of Risk amp Finance, 8(4), 394-409. Hong Leong Bank Berhard. (2009). Annual Report 2009. Retrieved September 14, 2011 from http//www. hlb. com. my/data/ar20091. pdf Milbourn, G. , amp Haight, T. (2005).Providin g Students with an Overview of Financial Statements Using the Dupont Analysis Approach. The Journal of American Academy of Business, Cambridge. 9(3), 46-50 Narayanan, L. (2010). How DuPont Analysis Reveals Return on Equity Ratio. Managing Credit, Receivables amp Collections. 2(1), 12-14. Pinsent, W. (2010). Decoding DuPont Analysis. Retrieved September 2, 2011, from http//www. investopedia. com/articles/fundamental-analysis/08/dupont-analysis. asp Class Dupont. (2010). Current Financial Accounting. Retrieved September 10, 2011, from http//www. sjrbiz. info/Current%20Classes/Financial%20Accounting%20Class/Dupont%20Model%20in%20a%20Nutshell. pdf

Behavioral Economics Essay

IntroductionBehavioral Economics is an super important field of psychology it seeks to expand the current tools that researchers use in economics and finance to creationduce new models of human conduct that be adequately founded in psychological research. The Behavior Economics is crucial in business decision making process. The knowledge in Business and fiscal Literacy is very important for their direct application to Business and Consulting Psychology. Understanding monetary circumspection which includes profit & loss, cash flow, balance sheets, ratios, ROI, working capital, ciphering, pecuniary planning, and corporeal finance and Business Management that includes business strategy, strategic grocery management, micro-economic analysis, sustainable competitive favor, strategic positioning, diversification, acquisitions, unions, and technology management, impart allow the adviser to divine service businesses enlarge their profits and improve their bon tons culture. Business Management and StrategyBusiness Strategy is a management plan of fulfill that an organization put in place in order to deliver the goods a particular purpose or a set of goals and objectives, this strategy can help the organization differentiate itself from its competitors. In order for a company to differentiate itself from their competitors, they need to successfully implement a strategy that go out determine the market that the business will compete, the investment needed, the strategies requisite to compete in that specific market and the strategic resources or competencies that emphasize the strategy by providing a important sustainable competitive advan get overe (SCA) (Aaker, 2001).Budgeting and Financial readyingThere atomic number 18 many springy managerial tools that assist in managing a successful business. Budgeting is the around common and wide employ tool for planning and control it is essentially a signpost that focuses on spending, it can break s down all the business expenses in different categories, per example, utilities, payroll, taxes, materials, equipment, etc, also all the income that the business expect to receive in a certain period of time, this period of time is usually yearly, monthly or sometimes weekly.Once the manager has all the estimated income and expenses for that period of time, the budget will start to suck up shape. The budget goal is to subtract all the expect expenses from the expected income for the same period and still have a confident(p) cash balance. A budget should not be a situated and fixed tool from which you may never deviate (Wood, 2012). The Financial Planning focuses on allocating resources efficiently, specifically achieving long range goals. In summary, while the budget focuses on the daily functioning of the organization, the future depends greatly on the financial planning which in turn relies on budgeting in order to be effective.Corporate FinanceThe Corporate Finance addresses how organizations face their financial obligation, to intelligently invest their resources, achieve the correct combination of financing to fund their investments and founder a profit to the investors hence achieving value maximization. When a company invests in a go steady or multiple projects, this project will give back expenses and will create tax income for the company, but what is a project? barf is any activity that generates a series of cash flows for the organization. The company uses the revenue in excess of expenses to fund new projects, improve existing projects or pay its investors (Spiegel, 2000). Per example, applying a low-cost strategy, businesses can remove all frills and extras from its products and function (Aaker, 2001), making the organization more competitive and profitable.Financial ratiosThe Financial Ratios are practical indicators of a companys financial and performance situation. The or so important indicator of a business performance is profits. Profits ply the basis for the internally or externally generated capital that the organization need to follow its growth strategies, to replace out of dated plants and equipments, and to absorb market risk (Aaker, 2001). But how can we mea genuine the profitability of an organization? The most basic and important tool to measure profitability is the Return on Assets, which is calculated by dividing the organizations profits by the assets confused (Aaker, 2001). The ROI measures how much profit the organization can produce with the capital that is open to them (Gitman, 2009). The companys goal is to increase the ROI, because higher the ROI, the better. Thats wherefore the ROA is so important for managers, investors and other business that may sell to this company.strategic MarketingThe Strategic Marketing includes creating a marketing plan that describes in detail the marketing mix, segmentation, and discolourationing decisions. Branding is not just to increase sales in one pro duct, but to any product that is associated with that brand. Thats why engagement matters it pulls customers back into the business and at the end of the twenty-four hours leads to repeat sales (Goodman, 2012). There are many different ship canal to use branding to support the organizations growth strategy, but for each specific growth strategy that are different approaches that can be used in order to achieve success (Aaker, 2001). Sustainable Branding will also increase customer loyalty where customers will recognize the part of the product or service every time that they see the brand (Aaker, 2001).Downsizing, Mergers & AcquisitionsMergers & Acquisitions essentially have the same features where the end result is one company where two existed. As stated by Shook & Roth (2010), during a merger and acquisition process, the organization will try to eliminate any overlap positions and this process can cause downsize, which is the process of restructuring a organization in a way tha t brings reduction of a part of the companys employees. If the M&A is successful, the new company will be more cost effective, efficient and mostly important, profitable (Holden, 2010). Mergers and acquisitions can also overthrow significantly the competition and the overhead for both companies (Holden, 2010).Consultants can be identify facilitators of a smooth transition (during a M&A) by ensuring that on that point is sufficient generaliseing and buy-in at the leadership level about the be of not addressing the culture issue early in the M&A process. There is plenty of empirical evidence suggesting the failure rate of M&As due to issues with the unsuccessful meshing of a impudently merged corporate culture. During an M&A, cultural sort often represents the well-situated side of the transaction. Everybody agrees about its importance but it seems too frequently to take a rear seat in the stated price tag synergies to be accomplished, as well as, how the new administrative tr ack that needs to be alertly put in practice.ConclusionThe main goal of a business advisor is to provide a professional or/and expert advice, but in order to do it, its vital that consultants understand the need to become an expert on their clients business and industry its also very important that consultants understand the need to communicate in their clients language. Also, in order to be effective, the consultant should be able to use motivation to trigger the organization members to change their behavior in order to achieve the organization goals (Fernandez-Huerga, 2008). As a consultant, my goal is to support the companys administration to resolve management, manufacturing, marketing, or other issues by providing* Focus and direction,* Expert analytical skills,* Objectivity, and* Knowledge and regard obtained from earlier assignmentsAlso as a professional I will help clients to define a projects goal and capacity, and unitedly with administration prepare a comprehensive pr oposal to document how the project will be implemented in order to achieve the desired objectives and steps along the way. Also I will make sure that the proposed changes are approved by the client before put in practice. Another very important issue is to maintain confidentiality during and after the assignment. My crowning(prenominal) goal as a consultant will be to fix a concept of a sustainable competitive advantage (SCA) and to neutralise the SCAs of competitors (Aaker, 2001). Using the Game Strategy, which is a study of strategic decision making, the consultant will be able to develop important insights concerning the strategy and how it should be addressed providing a rational choices for businesses dilemmas (Wood, 2012).ReferencesAaker, D. (2001). Developing business strategies (6th Ed.). New York, NY tooshie Wiley and Sons, Inc. Berman, K. & Knight, J. (2008). Financial Intelligence For HR Professionals. Boston, MA Harvard Business Press. Fernandez-Huerga, E. (Sep2008). The economic behavior of human beings The institutional/post-Keynesian model. Journal of Economic Issues (Association for Evolutionary Economics, 42 (3), 709-726. Gitman, L. J. (2009). Principles of managerial finance. (12 ed.). Boston, MA Addison-Wesley. Goodman, G. F. (2012). Engagement marketing How small business wins in a socially connected world. Hoboken, NJ John Wiley & Sons. Holden , P. (2010). Economies of scale a quick explanation Video file. Retrieved from YouTube website http//www.youtube.com/watch?v=AZshS761WsE Marks, M. (2003). Surviving MADness. HR Magazine, 48(6), 86. Marks, M., & Mirvis, P. H. (2012). Applying OD to deem Mergers and Acquisitions Work. OD Practitioner, 44(3), 5-12. Shook, L., & Roth, G. (2010). Downsizings, mergers, and acquisition Perspectives of human resources development practitioners. Journal of European industrial Training 32(2), 135-153. Spiegel, M. (2000). Principles of corporate finance. Unpublished raw data, Yale School of Management, Ret rieved from http//som.yale.edu/spiegel/intro/sampread.pdf Teamtechnology.co.uk. (n.d.). Retrieved from http//www.teamtechnology.co.uk/changemanagement.html Wickramasignhe, V. & Karunaratne, C. (Mar2009). People management in mergers and acquisitions in Sri Lanka employee perception. Journal of Human imaginativeness Management, 20 (3), 694-715. Wood, N. (2012). Behavioral Economics. PowerPoint slides. Retrieved from http//www.nancywood.org/Business/Behavior/Behavioral.pptx