Amazon Swot Analysis

The company’s positioning and business model * Amazon is the first mover of virtual retail supercenter selling products which started off from selling only books online and also offer the lowest possible prices to its customers. * Thus, Amazon is likely to be seen as a ‘broad differentiator’ who is in the middle of differentiate and cost leaders approaches. * However, it can be seen as more leaning to differentiators as most of its past and current strategies are focusing more on innovation of services to its customers.For example, Amazon Fresh for grocery, 1-Click Checkout system, cloud computing and storage etc. * Amazon apply the second approach for market segmentation; it recognize the different customer groups and offers as various products as possible to the customers to attracts more sales and gain more market shares. Successful strategies * First mover of IT retailer shop, popular feature on website such as product reviews, rating * 1-Click system, Mix pur chase, The Amazon Associate program * Growing to sell music CDs, then electronics products and so on. Avoid distribution and stocking cost strategy: Free shipping deal/promotion, cooperate with B&M companies so buyers can pick up product at B&M stores. * Online services for small to medium business, sell its SOA software services * Zshops for used products, and Amazon Web Service These strategies allowed Amazon to obtain its competitive advantage over its rivals, as it’s a unique and utilize the existing distribution channel and IT services advantages Failure strategies Online auction; lost to eBay and the market trend ( fixed-price market booming) * Unbox, Search engine market (track its customer across WWW) * Amazon Prime and Kindle book reader; lost to Google free online data storage and iPad These failure strategies result in declining in stock prices and investing funds, which can be huge in some of the project ie. Kindle, It can be seen as inefficient move which can be avoid if Amazon had done more planning and market research beforehand.Recommendations * Amazon should focus more on cost controlling strategy because the persistent issue for Amazon is high value chain cost, such as IT infrastructure cost, innovation investing, and operating cost. * Amazon can also put more effort on proper market research or planning strategy for shareholder interests, as the CEO seem to be having fun to innovate new services and learning from the market responses, either good or bad, he seem to be okay with both as a learning experience.

Inflation

There are various ways for the employees to voice out their dissatisfaction_ One of the ways is by using picketing. Under section 40 of Industrial Relation Act allow workers to attend at or near their workplace when they have a trade dispute. The purpose of picketing are communicate issues to the public and members the employers. Picketing also held at lunch time, and before or after working hours. Picketing is enforceable by law as long as it must not intimidate anyone. Must not obstruct the entrance or exit the organization. 3. Summarization National Union of Bank employees (NUMB) held another picket on the issue for discriminating its Muslim employees and also In support with the 27 employees that have been sacked by the bank. The picket was held at Clan Tuna Appear. The Muslim employees had been discriminated by disallowed them from performing their prayers in the office by the management. They had been sacked because they did not agree to transferred to other branches. They had been discussed with the upper management but no action taken by the authorities to settle the Issues.They will intone to fight for the workers until Hong Leone Bank reinstate the sacked 27 employees. The Mole when contacted with Shirring Oarsman officer of Hong Leone Bank stated that the fact of disallowed Muslim employees was untrue statement. They are not allowed because sugar Is located In a secured area as they were not the staff of the branches and they just only the NUMB members. No one is allowed to entered into a secured area as it has been a standard security policy of any financial institution.She also stated that its staff had been allowed to perform their prayers thou any prejudice. 33 Mall Issues The Issues arises Is discriminates Its Muslim employees by disallowed them to perform their prayers at Sugar. As the officer offing Leone state that the Muslim employees is not the staff of Hong Leone Bank. Many negotiations had been taken by the employees but all the negotiati ons is not success because there Is no action taken by them. The Muslim officials In the Human Resource Ministry,the Government and the authorities failed to protect Islam and Muslim employees.Besides that, 27 employees in the Hong Leone Bank were sacked because they did to agree to be transferred to other branches. 3. 4 Background Issue Among 300 of NUMB members held a picket at Clan Tuna Appear regarding to the Issues of discriminating Muslim employees by disallowed them to perform their Solar at Sugar and over 27 employees were sacked. This is because Sugar is located at the secured area. It is a security standard policy no one can entered into that area except for the staff of Hong Leone Bank. The officer of Hong Leone Bank state that they are not the Hong Leone Bank but they are NUMB members.Abdul Jamie as Vice President f Numb members reiterated the statement that Numb members are also the Hong Leone Employees. During the time of 2 December until 18 December they are still und er Hong Leone employment. NUMB General Secretary enforce Balance Ministry to take legal action for these discrimination. Hong Leone Bank cannot said that NUMB members is not Hong Lemon's employees. Besides that, over 27 employees were 1 OFF discussions were held but none of the ministry take action over these issues. Tan stated that the transfer is necessary to increase the effectiveness and efficiency ofHong Leone Bank. 3. 5 Analysis Many of the Numb members held a pickets to ensure that their dissatisfaction can being heard by the public. Among the issues arises is the discrimination towards Muslim employees. Muslim employees had been disallowed to perform their prayer at the Sugar. Department of Labor will remind the employers the right of Muslim employees. Besides that over 27 employees were sacked. Their termination is not valid without a valid reasons as they disagree to transfer to other branches and then they were sacked.For the dismissal of the contract the employers should at least give notice of termination. Under section 12 of Employment Act 1955 state that, Either party to a contract of service may at any time give to the other party notice of his intention to terminate such contract of service. In the Industrial Relation Act section 20 provides machinery for an employers to dismissed its employees. The employees can make claims if they believe their termination is without a valid reasons.If the Court agree that their termination is without a valid reasons under section 14 of the Employment act 1955,then the Court will reinstated their termination. 3. 6 Recommendation The company may used Conciliation to solve their problems. By using third party as a conciliator. Conciliator is one of the officer of Department of Industrial Relation. The conciliator will meet the both parties whether separately or Jointly. The conciliator will briefing the problems and help the parties to achieves mutual agreement. This way can be used if the negotiations is not useful.The conciliator will give the recommendations and advice. 3. Conclusion Discrimination on the Muslim employees should be stopped by the government. Under article 11 of the Federal Constitution state that every person have the right to practice their own religion and to propagate it. The employer has no right to obstruct Muslim employees to perform their prayers. Regarding the issues of termination without valid reason is void. As it contravene with the Employment Act. The employer must give a notice of a services before dismiss their employees. If the issues can be settled it would create harmonious work environment. Inflation The cost of inflation depends on two cases; perfectly anticipated inflation and unanticipated inflation. Anticipated inflation is defined when individuals are able to make accurate predictions of inflation, they can take steps to protect themselves from its effects. Also, trade unions might use their bargaining power to negotiate for increases in money wages to protect the real wages of union members. Households may want to switch savings into accounts offering a higher rate of interest or into other financial assets where capital gains might exceed price inflation.Businesses can adjust their prices and lenders can adjust interest rates. However, businesses may also seek to hedge against future price movements by transacting in â€Å"forward markets†. For example, many airlines such as Bahamas-Air may buy their fuel months in advance as a protection or ‘hedge' against fluctuations in world oil prices. In Contrast, When inflation is unanticipated, individuals do not reali ze that they should protect their real purchasing power against a rising price level until the price level has already risen and their real purchasing power has already fallen.In this instance, there will be gainers and losers, in terms of purchasing power, from the inflation. In general, unanticipated inflation causes a misallocation of resources. Firms, unions, banks, will push prices and wages up. Those who can do it best will cause a misallocation of resources. For example suppose workers at manufacturing companies in the Bahamas wage increases, and public employees don't. Then, resources (labor) will be reallocated due to the relative market power of the different workers.But more importantly, lenders such as Banks will lose with respect to borrowers, giving individuals an incentive to borrow. For instance, when Bahamian people take out mortgages in order to buy houses at fixed interest rates, they end up aying back less in real terms than they had contracted for, wealth is the n redistributed from banks and other financial institutions to homeowners with mortgages. In relative terms, borrowing becomes cheaper than paying in cash.Another example would be if individuals who retire on pensions that are fixed in nominal amount will find the values of those pensions in terms of the goods they buy eroded as years pass, in this case the redistribution is from pensioners to the owners of insurance companies and other financial institutions that have contracted to pay them fixed dollar amounts. Alternatively, individuals have the incentive to spend now before the price level rises further.This however, will push prices up even faster, and may cause the inflation rate to accelerate and if uncertainty continue to increase, consumers and investors become less certain about the future, as prices rise in an unanticipated fashion. They may change their pattern of spending, and be less willing to undertake projects that take a long time to payoff. The Costs of Hyperinfla tion. Hyperinflation is define when the prices of most goods and services skyrocket, usually more than 50% a month. It usually starts when a country's Federal government begins printing money to pay for fiscal spending.As the money supply increases, prices creep up as in regular inflation. However, instead of tightening the money supply to lower inflation, the government keeps printing more money to pay for spending. Once consumers realize what is happening, they expect intlation. T causes them to buy more now to avoid paying a higher price later. This boosts demand, causing inflation to spiral out of control. The only winners in hyperinflation are those who borrowed before the hyperinflation. Fortunately, the Bahamas have ever experienced hyperinflation but other countries such as Germany and Zimbabwe has.But if the Bahamas was to experience hyperinflation like Germany, the consumers can expect 1 . Inflation Expectations and Wage Demands: Price increases lead to higher wage demands as people try to maintain their real living standards. This process is known as a Wage-price spiral'. 2. Arbitrary Re-Distributions of Income: Inflation tends to hurt people in Jobs with poor bargaining positions in the labour market – for example people in low paid Jobs with little or no trade union protection may see the real value of their pay fall.Inflation can also favour borrowers at the expense of savers as inflation erodes the real value of existing debts. 3. Business Planning and Investment: Inflation can disrupt business planning. Budgeting becomes difficult because of the uncertainty created by rising inflation of both prices and costs – and this may reduce planned investment spending. 4. Competitiveness and Unemployment: Inflation is a possible cause of higher unemployment in the medium term if one country experiences a much higher rate of inflation than another, leading to a loss of international competitiveness and a subsequent worsening of their trade p erformance.

Difference between peer reviewed journal article and a research report Essay

Difference between peer reviewed journal article and a research report of an organization - Essay Example However, the academic standards of a peer-reviewed journal are higher and more sophisticated than those of other organizations. â€Å"Generally journals of this nature do not have illustrations and use black print on white paper† (Hensley, 2012) whereas organizational research reports employ the use of other colors also. Writing of peer-reviewed journal articles is more meaningful, self-explanatory, brief, clearer, and free of phrases and idioms whereas organizational reports are less particular about these things. Overall, journal article writing is more formal than other research reports. There are a number of reasons for these differences of standards. Firstly, the viewership of a journal article is much wider and larger than that of a research report of an organization, which imparts the need for writing to be precise and clear. Secondly, the definite layout makes it convenient for peer-reviewers to evaluate a journal article by passing it through the official editorial process (usa-document.com, n.d.), while peer-reviewing may not be required for ordinary research reports of other

Discuss the impact of global warming, and the possibility of stronger Essay

Discuss the impact of global warming, and the possibility of stronger and more frequent storms on the emergency management field - Essay Example Climate change is a very different matter. The greenhouse effect is a natural atmospheric process caused by the presence of certain gases in the atmospheric process caused by the presence of certain gases in the atmosphere that prevent the infrared radiation emitted from escaping from the earth's surface to space. As a result, the temperature of the atmosphere increases, until a new equilibrium between in going solar radiation and out going infrared radiation is reached. The process is analogous to the way in which a greenhouse increases the temperature inside. The gases that absorb out going infrared radiation are called green house gases (GHG's). Some GHG's are that exists naturally: carbon dioxide (Co2) and small quantities of Methane (CH4). Thus the greenhouse effect has always been with us. In its absence, the earth's mean temperature would be 30C lower than it is, which would mean the end of life on the planet, an ice covered places. The progressive gradual rise of the earth's average surface temperature, thought to be caused in part by increased concentrations of GHG's in the atmosphere, is called global warming, which is commonly described as climate change, although global warming is only one of the changes that affect the global climate. Our main concern is that since the industrial revolution there has been a considerable increase in emissions of GHG's resulting in considerable increase in their concentrations in earth's atmosphere. The natural balance of the greenhouse effect is currently lost. One to this serious nature of climate change a widely recognized organization IPCC was setup in 1988. The scientific evidence that human activities are changing the climate of our planet has been studied by a working group of the intergovernmental panel on climate change, or IPCC, an international scientific body intended to provide policymakers with an authoritative view of climate change and its causes and affect. The IPCC includes three working groups: (i) Working group 1 (WG1) assesses the scientific aspects of the climate system and climate change (ii) working group 2 (WG2) assesses the vulnerability of Socio-economic and natural system of climate changes and options for adopting it; (iii) working groups 3 (WG3) assess es the options for limiting GHG emissions and otherwise mitigating climate change. Every few years, each working group publishes an assessment reports. The fourth of these reports (called AR4) was published this year. Working group 1 has already its part of AR4 (IPCC, 2007 a). Some of their findings are: Global atmospheric concentrations of carbon dioxide, methane and nitrous oxide have increased markedly as a result of human activities since 1750 and non for exceed pre-industrial value. The global increases in carbon dioxide concentration are primarily to fossil fuel use and land-use change, while those of Methane and Nitrous oxide are primarily due to agriculture. (ii) Warming of climate system is unequivocal, as is no evident from observations of increases in global average air and ocean temperatures, widespread melting of snow and ice and rising global mean sea level. (iii) At continental, regional and

Scientific Management Essay Example | Topics and Well Written Essays - 2000 words

Scientific Management - Essay Example When scientific management was still relevant, employees were offered the fiscal rewards only. This is because workers valued economic rewards during that time. However, most organizations increase their productivity by controlling all factors in the work places as well as maintaining the social health and development of the workers in today’s organizations (Lunenburg & Ornstein 2008, p. 5).Furthermore, this management approach is not applicable today because its principles are authoritarian. This is because they assumed that only managers were accountable for decision-making because organizations did not trust the employees’ competence in decision-making in the past. According to Taylor, the increase in the organizations’ productivity relied on the divisions between the workers and experts or managers. Additionally, he also believed that managers should always direct the workers. This method negatively influences the workers’ motivation and satisfaction i n the work places. The modern organizations increase their productivity by involving all the organization’s participants including the employees in the decision making process. This motivates the workers because it makes them feel worthy in the organization. Additionally, it makes them feel respected by the organizations. Such respected workers usually work to their highest potential because they become loyal to the organization. Moreover, the piece rate payment systems used in the scientific management is not effective today because organizations center.... This motivates the workers because it makes them feel worthy in the organization. Additionally, it makes them feel respected by the organizations. Such respected workers usually work to their highest potential because they become loyal to the organization. Moreover, the piece rate payment systems used in the scientific management is not effective today because organizations center on superiority rather than capacity to increase the customers’ satisfaction and the organizations’ competency. The piece rate payment makes it hard for organizations to cheer workers to focus on quality. This is because workers believed that focusing on the quality of work would make them get low rewards because it was time wasting. This is because they valued quantity and not quality (Sandra 2000, p. 3). Additionally, scientific management is not effective today because many organizations can easily access technology and information. The current market is very competitive, making it difficult to apply the scientific management principles. The modern organizations process very high inputs and employees are very connected with organizations. However, employees often worked in isolation with the business in the scientific management system. Workers do not currently depend on the managers for information because all the necessary facts are obtainable on the Internet. This enables businesses to operate on an international scale. This is because businesses can deliver goods to consumers within a short time unlike before. Additionally, manufacturing processes are advanced technologically. This makes it easier and faster for corporations to react to factors that may influence performance. Managers are acknowledging that they can

Operating System Simulator Essay Example | Topics and Well Written Essays - 1500 words

Operating System Simulator - Essay Example It also supports JRE version 1.2. Java as language offers various capabilities including running the application as a Java applet or as a java application. Therefore, this CPU process-scheduling simulator can be run either as a Java applet or as a Java application. This CPU process scheduling algorithm can be used to perform several experiments on different process scheduling algorithms. Tables of data, graphs, and Gantt charts in form of log files in HTML can be produced by the simulator at the end of each experimental run. One experiment can be carried out involving several processes, for instance, the experiment can be based on eight different CPU processes. The tabular data obtained for different CPU process scheduling algorithms can then be analyzed and important conclusions drawn. Graph or Gantt chart data obtained can also be analyzed. Comparison between the various CPU scheduling algorithms can be drawn and explained based on the analysis of such data and the conclusions arri ved at. The statistic to be evaluated and analyzed from the experimental runs includes data on processes throughput, CPU burst times, I/O Burst times, Waiting times, Turn Around time, and the ratio of CPU Burst Times to Time to Ready plus CPU Burst time. As noted earlier, this CPU process-scheduling simulator supports various CPU scheduling algorithms such as First Come, First Served (FCFS), Shortest Job First (SJF), and the Round Robin algorithm (RR). This simulator manual report will aim at reporting on experiments carried on two CPU process scheduling algorithms; the First Come, First Served (FCFS) algorithm, and the Shortest Job First (SJF) CPU scheduling algorithm. The experiment will be carried out on eight processes for both the algorithms and the characteristics of bot the algorithms evaluated based on those processes. Graphs, Gantt charts, and table data for both the CPU scheduling algorithms will be drawn, analyzed, and evaluated. The evaluation and analysis to be carried out is aimed at illustrating the differences between the two CPU process-scheduling algorithms based on the data obtained. Normally, it is expected that, for the Shortest Job First SJF also referred to as the shortest remaining CPU burst time first, the process with the shortest CPU burst time is the one that is executed first. For the First Come, First Served CPU scheduling algorithm, the first job to arrive in the ready queue is the one that is executed first, and it must be executed to completion before any other process takes up the CPU. However, there are scenarios such when there is an I/O request, a process being executed in the First Come, First Served algorithm is returned to the waiting time and a new process in the queue is executed before the other process continues executing. This is known as context switching and they are normally two. In the Shortest Job First CPU scheduling algorithm, there are scenarios where more than one process with the shortest CPU burst time; m ore than one process have the same CPU burst time exist in the ready queue. In such cases, these processes are evaluated depending on the time each job or process arrived in the ready queue, this implies some sort of First Come, First Served CPU scheduling algorithm is implemented, and the job that arrived in the re

Reading response Essay Example | Topics and Well Written Essays - 500 words - 26

Reading response - Essay Example The meaning, that is used by Shames regarding the American culture, is that having more is and has been an essential idea of the country. From my reading of â€Å"The More Factor†, Shame has the opinion that it is already part of the culture of Americans to desire for more, however, I should say that most people desire for more in their lives and not only Americans. This is true because even me I desired and still desire for more in my life. Most of all, I felt greatly surprised by what Shames described as like Americans have lost focus in what is very important as he says â€Å"Americans have been somewhat backward in adopting values, hopes, ambitions that have to do with things other than moreâ€Å". It surprised me because all, what Americans have done, is to find ways to grow and expand. Shames puts it out clearly that lost focus because they became selfish and greedy since they only bothered to help themselves and not others. In any event in 1800,s the speculators built towns and would pay individuals to move into their town and provide for them a home to live in. The fact of the matter was to build the railroad for a real town to develop. I feel that the idea of "more" is not such a terrible thing. I mean it is useful for individuals to need to have a better life and succeed, to goals and aspirations. However, it is my opinion that everything ought to have a limit, or in any event, we ought to know when to stop and enjoy life. I believe that everybody needs to live a life that is full of commodities. I do so as well. I need to go to visit new places around the globe, have things I didnt have and provided my family a home, as well as a better life. Shames’s idea of the concept of more reminds me of my childhood friend. We used to share a lot, do almost all things together; however, the guy did not accept defeat. He was ever competing and always liked to be in the front line in everything. I used to pity him because no

Case assignment Essay Example | Topics and Well Written Essays - 1250 words

Case assignment - Essay Example Such developments portray the liberal nature of the society since the laws permit the populace to take care of their lives and make important decisions that concern their lives. Such include abortions and suicide. However, the situation is likely to change thereby presenting a conflict in the management of the health facilities in the state. Apparently, the Roman Catholic has inherited the health care system in the country with the promise of revamping the operation of the health facilities with an increased cash flow in the state. The health care system under the management of the Roman Catholic will curtail the liberal nature of the facilities as the Catholic safeguards the value of human life. Such a conflict is likely to heighten owing to the fact that Washington is one of the secular states in the country. Imposing religious heath care system is therefore likely to conflict with the wishes of millions of citizens who will not enjoy some of the liberties that the previous health care system offered. The introduction of the new health care system promises an improved quality of the health care services that the facilities will offer owing to increased financial capital that the Roman Catholic will provide the system. The health care sector is one of the most expensive systems in any country owing to the high cost of the health equipment. Additionally, clients often demand guaranteed quality of medical services a feature that increases the need to purchase high quality and efficient equipment. Such requirements increase the cost of managing and maintaining high quality health care services in the society. Under the new health care management system, the health care practitioners will have to appreciate high ethical standards by adopting the doctrines of the Catholic Church under the stewardship of a council of bishops who will oversee the

Conflict between Israelis & Palestinians Research Paper

Conflict between Israelis & Palestinians - Research Paper Example Religion itself, of course need not be blamed as it is an impulse of nature that derives from â€Å"man’s religious constitution† (James, xi). While religion is a complex reality, it is commonly identified with man’s â€Å"feeling of the infinite† (43). As such, it is an ennobling capacity or trait of humankind. Still, religion or religious experience admits varieties, such as to divide individuals and societies. In human history, religion has proven to be both a boon and a bane to humanity. Consider the religious persecutions, oppressions, and wars in history. And along this trend of thought, this paper takes the position that while religion itself is good, distortion of the religious impulse by way of bias and extremism can become destructive. In this situation, religion serves to become the root cause of conflict, such as in the case of the estranged Jewish Israelis and Muslim Palestinians living in what is known as the Holy Land. Seed of religious conf lict Not generally known is the fact that Muslims and Jews had a failed relationship even during the lifetime of the founder of Islam, the Prophet Muhammad. The situation was rather unfortunate, because in the beginning, the learned rabbis of the Jewish tribes of Yatrib, a settlement in the Middle East, admired Muhammad. They saw in him the awaited prophet who would come from the Arabs with whom they the Jews would destroy the idolaters of the region (Pickthall xiv). In fact, they even came to Mecca to vow allegiance to the prophet and invite him to their city. And owing to the hate and plot of assassination, Muhammad himself sought refuge among Jews in Yatrib. This event was later known as Hijrah or the Flight from Mecca, marking the beginning of the Muslim era (xv). But during the eventuality of a blood feud between Meccans and Muhammad and a temporary defeat of Muslim forces, the Jews reneged on their friendship with Muhammad and joined the hostile Meccans. To aggravate the situa tion, the Jews of Yatrib also declared that the religion of the pagan Arabs was superior to Al-Islam (xx). Then in a rather unforeseen reversal of fortune in the seventh year of Hijrah, the Prophet led a victorious campaign against Kheybar, the hornets nest of the idolatrous Arabs and stronghold of Jewish tribes in North Africa. The Prophet and his army overcame his persecutors, and by the ninth year of the Hijrah, all Arab tribes from all part of Arabia swore allegiance to Muhammad making him the emperor of Arabia. And for their infidelity, the Prophet expelled the Jews from Arabia (xxvi). The seed of a prolonged Jewish and Muslim hostility was sown. Spread of Islam Muhammad spread his faith in only One God all over Arabia, later in other continents by means of preaching and war. His words were made into a new Bible called the Koran, and today the Koranic religious law is followed by about 1.4 billion people scattered all over Asia, Africa, Europe and the Americas. Earlier on, Muha mmad’s faith was a religion of peace, but it spread rapidly as a warlike faith offering unbelievers three choices: to fight it out, to accept the new religion, or keep their old religion but pay tribute to the conquering Muslims or followers of the Prophet Muhammad (Boak et al., 168) Given the quick brains of Arabs, Muslims absorbed the Greek learning of the Eastern Roman Empire, and contributed Arabic advancement especially in the fields of chemistry, medicine and

Macroeconomics. Monetary policy Essay Example | Topics and Well Written Essays - 1500 words

Macroeconomics. Monetary policy - Essay Example In this formulation u* is the unique unemployment rate where inflation is stable. This Phillips curve has the property that inflation rises (the price level accelerates) when u is below u*: since actual inflation exceeds expected inflation, with adaptive expectations, inflation expectations rise over time and are factored into wage and price setting. In contrast, when unemployment exceeds the natural rate, actual inflation falls short of expected inflation, so inflation declines over time as expectations adjust downward toward reality. With chronic high unemployment, deflation is inevitable (Yellen and Akerlof 2005, p.2). According to Yellen and Akerlof, stabilization policy can significantly reduce average levels of unemployment by providing stimulus to demand in circumstances where unemployment is high but underutilisation of labour and capital does little to lower inflation. A monetary policy that vigorously fights high unemployment should, however, also be complemented by a policy that equally vigorously fights inflation when it rises above a modest target level. In their survey, Yellen and Akerlof conclude that there is a solid case for stabilization policy and that there are especially strong reasons for central banks to accord it priority in the current era of low inflation. With a nonlinear short-run Phillips curve, stabilization policy reduces average levels of joblessness and raises average output by a nontrivial amount. A nonlinear relationship between unemployment and social welfare may reflect the increasing incidence of long-duration unemployment spells as aggregate unemployment rises, the diminishing benefits associated with additional job creation as unemployment falls (2004, p.31). On Charles Bean's discussion of stabilization policy, Stanley Fischer comments the following on Bean's analysis the implications of the nonlinearity of the Phillips curve: a one percentage point reduction in an already low unemployment rate will push up inflation more than a one percentage point increase in a higher unemployment rate will reduce inflation. How should this affect policy Fischer cites that Bean's analysis shows that in the presence of a nonlinear tradeoff, the authorities should aim for a higher unemployment rate than the natural rate, because a positive shock that reduces unemployment will have a larger effect on inflation than a negative shock of the same size. Yellen and Akerlof go on that a Phillips curve that is not always accelerationist provides a further, important reason for central banks to pursue stabilization as an objective. The traditional accelerationist Phillips curve captures the following truth on inflation: when product and labour markets are tight, as typically occurs when unemployment is low, prices and wages both tend to increase. This

Assessment for Learning Essay Example for Free

Assessment for Learning Essay The results of the personal survey of assessment literacy showed that general considerations scored 87/90, prior to test design scored 53/55, writing the test scored 28/30, during test administration scored 15/15, and after testing reflected 25/25. Our school is a small private school with small classroom sizes. As a result, most of our students receive specialized one on one attention and strong supervision for their academic success. Teachers believe every student can and will succeed. It is not an option to do otherwise. â€Å"Teachers must believe that all students can achieve a certain level of academic success, must bring all of their students to believe this of themselves, must accommodate the fact that students learn at different rates by making use of differentiated instruction, and must guide all students toward the attainment of standards† (Stiggins, 2005, pg. 326). How we test students need to take into consideration the impact of the learner (Stiggins, 2008). Stiggins (2008) informed teachers to utilize assessments for students by looking at the classroom level of use, the program level of use, and the institutional accountability and policy level of use. Looking at the school survey of assessment literacy will take into account these three types of assessment uses and their importance in generating an accountability system for our school to develop a system that fosters learning for all students. My greatest area of strength in regard to assessment literacy can be found in during test administration (15/15) and after testing (25/25). These were perfect scores and illustrated that student’s needs were met when considering the testing environment as conducive to maximize student performance and monitoring the students as they take ASSESSMENT FOR LEARNING 3 the test. Directions are always clear and questions are rarely asked. Tests are accurately scored because they are reviewed twice. Assessment data is gathered for what questions students answered incorrectly and notes are made for improvement of material taught the following year. It is reviewed again after the results of the test are completed to ensure mastery before moving on to the next chapter. The main goal is always on student achievement and mastery of the material. The data adjusts instruction to improve student performance. Any students who do poorly are given the opportunity to retest for 92% of the grade for improvement and mastery. Parents are notified of any student receiving below an 86%. This is our school policy. Retests are given within a week of the original test. Tests are graded the same day and given back the next day. This enables students to observe what they got wrong and assess ways to improve for the retest or master the material. Assessments are not always tests. Projects, reports, computer uses, etc. are vital ways to assess student learning through a plethora of ways. Gardner (1999) believed that students learn through spatial, linguistic, naturalist, interpersonal, intrapersonal, bodily kinesthetic, logical/mathematical, musical, and existential. Educators should recognize that diversity needs an on-going presence, availability, and active participation in the classroom teaching process (Spasovski, 2010). â€Å"If society wants all students to meet standards, then all students must believe they can meet those standards; they all must be confident enough to be willing to take the risk of trying† (Stiggins, 2008, p. 8). My greatest limitation in regard to assessment literacy is working with colleagues to design common assessments. Since we are a small private school, teachers are left ASSESSMENT FOR LEARNING 4 with the task of compiling their own assessments. Our principal will supply the assessments created by the publisher in book form or cd rom or teachers can compile their own. None of us work with colleagues to create assessments. We have team meetings that cross teach certain areas that are being studied to enhance learning across disciplines of teaching. However, assessments are each teacher’s responsibility. The Stanford test scores analyze our teaching productivity. Data is analyzed for the incorrect answer. The results address the weakest area of student learning. Teachers are to find solutions to fix them through data and research of proven strategies that work within successful classrooms. According to Creighton (2001), collecting data without purpose is meaningless. Data driven decision making and instructional leadership support one another. By analyzing the data that exist in our schools, student achievement and quality in teaching and learning can improve to assist students to become avid learners. Part 2: Analyzing the Survey Results The survey results of the criteria for the school survey of assessment literacy scored 84/90. Assessment, curriculum, and instruction are balanced in our school. Assessments are aligned to benchmarks, standards, and scaffolding of material over time to foster students’ learning. To promote student achievement, assessments are varied and reliable. Communication is accomplished with parents about performance through emails, assessments sent home requiring signatures, progress reports, report cards, and Stanford test scores. Since our students score in the 79-99% ranking of Stanford test scores as a class average, teachers seek solutions through data to ASSESSMENT FOR LEARNING 5 improve class average test scores. If any student did poorly, teachers seek ways that will improve student learning. Principals and teachers can learn to maneuver through the statistical data to help create goals and strategies for change and improvement (Creighton, 2001). The school’s greatest area of strength in regard to assessment literacy was that data-based decisions about student mastery of standards are made collaboratively by administrators and teachers. By looking at our strengths, opportunities, weaknesses, and threats, teachers can gain insightful information into how they may best serve their diverse students’ needs and administrators can find solutions to helping these students achieve an optimal learning experience at school. This creates an opportunity for teachers and administrators to work together to improve student achievement. By understanding our diverse students’ needs, teachers and administrators can see the big picture and find viable solutions to problems that arise at their school. This year we have added a resource room to help struggling students with special needs get help from an ESE teacher. Curriculums are modified to accommodate student’s needs based on any language or learning barriers. The dominant culture of the nation-state should incorporate aspects of their experiences, cultures, and languages, which will enrich the mainstream culture as well as help marginalized groups to experience civic equality and recognition (Gutmann, 2004). Teachers have professional development sessions and team meetings to assess proven methodologies and research to help students learn. â€Å"When teachers support students by treating them with respect and caring about their futures, and encourage students by helping them to succeed, students are more likely ASSESSMENT FOR LEARNING 6 to respect and get along with one another; when taught how to be more tolerant of others, students exhibit greater tolerance† (Gollnick Chinn, 2006). Our school climate is multicultural and is reflected in every aspect of the education at our school. This is imperative if we want our students to compete in a global economy and to ensure learning and equity for all students. The school’s greatest limitation in regard to assessment literacy is that not all teachers recognize students’ emotional connection to assessment and its results. Also, the formative assessments are not used regularly to tell members precisely where to focus their improvement efforts and how to do it in a timely manner. My students complain that some teachers take a month to grade papers. Parents complain to me that other teachers do not understand their child’s special needs. For instance, I have a student with dysgraphia, dyslexia, and ADHD. For spelling tests, I have found it beneficial to call him up after tests and have him spell the word to me verbally that he got wrong in writing and he often gets it correct. He has transformed from a failing student to an â€Å"A† student. I grade his paper immediately after he turns it in and I ask him to spell the words he got wrong to me verbally. When students are failing, teachers need to find viable solutions to increase student learning. No single assessment is capable of answering all these questions to aid a student’s learning capabilities. A productive, multi-level assessment system is needed to ensure accuracy of all instructional decisions (Stiggins, 2008). Relying heavily on Stanford test scores impedes a student’s emotional connection to assessment and its results. Instead a wide arrangement of student work should become part of a portfolio to determine the overall ASSESSMENT FOR LEARNING 7 success rate of a student. â€Å"If all students are to succeed, they must have continuous access to credible evidence of their own academic success at mastering prescribed achievement standards† (Stiggins, 2008, p. 8). Data shows teachers areas that need improvement in teaching, student’s weaknesses, and how to do better next time. This will enable students to build self-efficacy when teachers help students to see what success looks like through assessment analysis to improve test taking the next time (Stiggins, 2008). This is the reason our school offers a retest at 92% of the grade. This is what Stiggins refers to as replacing the intimidation of accountability as the primary motivator through tests with the promise of academic success for all learners. This type of assessment promotes hope for all students to become successful. We are reminded by Tashik (2010), that an effective performance assessment system requires the complete interplay of several components: 1. Teaching and learning must remain the constant focus of the school. 2. Teams of teachers collaborate on all aspects of instruction and assessment. 3. Staff, department, and grade meetings are regular features of the school week. 4. Scheduling includes blocks of time for teachers to mentor and supervise student progress on the performance assessment tasks. 5. Continual development of new courses and units of study to better engage students in their learning and meet their academic needs. When these key components are intertwined, effective assessments can benefit our students through diversity and it can take the shape of molding into our students’ needs. When we look at the classroom level of use, the program level of use, and the ASSESSMENT FOR LEARNING 8 institutional accountability and policy level of use, assessments can work together to scaffold student learning for optimal success. In a perfect assessment system, the foundation would comprise of an array of assessments that enable students to learn more through scaffolding and take ownership of his or her learning success (Stiggins, 2004). ASSESSMENT FOR LEARNING 9 References Creighton, T. (2001). Data analysis and the principalship. Principal Leadership, 1(9), 52. Gardner, H. (1999). Intelligence reframed: Multiple intelligences for the 21st century. New York: Basic Books. Gollnick, D. and Chinn, P. (2006) Multicultural education in a pluralistic society. New Jersey: Pearson Education. Gutmann, A. (2004). Unity and diversity in democratic multicultural education: Creative and destructive tensions. In J. A. Banks (Ed. ), Diversity and citizenship education: Global perspectives (pp. 77-96). San Francisco: Jossey-Bass. Spasovski, Ognen. (2010). Principles of the inclusive education and the role of teachers and in-school professional staff. The Journal of Special Education and Rehabilitation,111(1-2), 67-86. Tashik, P. (2010). Changing the national conversation on assessment. Phi Delta Kappan, 91(6), 55-59. Stiggins, R. (2004). Classroom assessment for student learning: Doing it right – Using it well. Portland, OR: Assessment Training Institute. Stiggins, R. (2005, Dec. ). From formative assessment to assessment FOR learning: A path to success in standards-based school. Phi Delta Kappan, 87(4), 324-328. Stiggins, R. (2008). Assessment manifesto: A call for the development of balanced assessment systems. Portland, OR: ETS Training Institute.

Strategic approach to entering a new international market

Strategic approach to entering a new international market It is an international marketing planning assignment where I am supposed to launch a product in the foreign market and I have selected UK as my market and Dabur Real juice is my product which I will be introducing in UK. INTERNATIONAL MARKETING PLANNING According to the American Marketing Association (AMA) international marketing is the multinational process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives THE ANALYSIS: Dabur is the fourth Fast Moving Consumer Goods company in India. Dabur was established in 1884. This Company is giving an excellent performance since 125 years. Dabur has more than 300 products.( www.dabur.com) but the main product of this company is Dabur- Ayurvedic health care products, Vatika-premium hair care, Hajmola-tastey digestives, Real fruit juices and beverages, Fam-fairness bleaches skin care products. It has expended their products in various countries that includes Middle East, North West Africa, EU and the US with its brands Dabur Vatika. had a turnover of approximately US$ 750 Million Market Capitalisation of over US$ 3.5 Billion with brands like Dabur Amla, Dabur Chyawanparas, Vatika, Hajmola and . The company has kept an eye on new generations of consumers with arrange of products that cater to a modern life style while managing no to alienate earlier generation of loyal costumers the companies growth rate rose from 10% to 40%. The expected growth rate for two years was to fold. Dabur foods a subsidiary of Dabur India is expecting to grow at 25%. Its brands of juices namely and active together make it a market leader in fruit juice category. (The Economic Times, www. Dabur.com) According to the above data the market of fruit juice and juice drinks in UK is still has vast market after recession , the sales of fruit juice was 1189 m litres in 2005 but after gradually declining, sales was 1159 m litres in 2009, which is also a good quantity. There is a good chance for Dabur real juice for success in this market. The fruit juice and juice drink market is valued at Pound 3.1 billion in 2009 and while both volumes and value have grown in recent years. (oxygen .mintel.com) Britain now consumes 2.2 billion litres of juice drinks a year around 36 litres for every man, woman and child.(news.bbc.co.uk). This figure shows the future growth of product one it make the goodwill after establishment. UK food market is one of the highly regulated food markets in the world and it is hard for any company to launch a new food product in the UK market. On top of that the existing intense competition by leading corporations selling juice products such as Pepsi Co and Coca Cola made it hard for other brands to enter into UK juice-consumer market. Tropicana is the no.1juice in UK. Tropicana makes the juices and smoothies from the highest quality of fruit, expertly blended. It contain 100% juice no added water.(www.pepsico.co.uk) On the other hand, it represents a unique opportunity for a multinational company to enter such market with a differentiated product attracting a specific customer-base which is spread all over United Kingdom. Dabur, the multi-national company, based in India is one of the oldest Fast Moving Consumer Good company selling range of products to its customers since 1885. It operates in 8 countries worldwide including United Kingdom but selling only limited number of products outside India. Due to its multinational nature and have number of years experience in international trading, it puts the company in the unique place to launch its juice products in the United Kingdom. There are many competitors in the market for new products which has mentioned in above data, in which PepsiCo, princes, Del monte has strong hold over the market.The organisation already sells some of its health products in Britain so already possess UK consumer experience. The UK juice market is competitive in its nature with leading brands established such as Tropicana and Copella. But there is a huge market potential to attract those customers who have some kind of connection with Indian sub-continent and are loyal to the products originated from that continent. TARGET MARKET The target market of my product would be south of London because the majority of Indian people are living there and they already know about the brand, there is a possibility to sale product among the Indian origin people, afterward we will launch the product in all over London. The number of residents in UK according to office of national statistics exceeds 3 million which are spread all over the country hence making an ideal position for a leading company like Dabur to launch its juice brand . According to Dabur.com, It has been the preferred choice of consumers when it comes to packaged fruit juices, which is what makes Indias No. 1 Fruit juice brand. It further clarifies the status of that, has been awarded Indias Most Trusted Brand status for four years in a row. This reflects the unique quality of this juice product which after number of years of hard work has not only get to the top place in the massive retail market of India but also retained the top position for four years. To expand internationally, British market offers best opportunity for this Indian brand targeting initially those customers who has some kind of connection with Indian sub-continent. Its unique entry point into the UK market typically based on the Core quality aspects of the ranges of the juices under brand available together with its augmented services such as the theme of Indian-culture with the core product. UK juice market currently worth at $6602.5 million which includes a 10.9% increase in 2009 according to the datamonitor report on UK juice industry profile. With that it is set to increase by 53% to the total value of $10,118.5 million by year 2014 since 2009.(www.lowpriceshopper.co.uk) The leading competitors include Pepsi INC., Del Monte Foods Company and GSK but do not include any of the Asian brands. UK market represents the 26.2% of EU juice market value (www.fdf.org.uk) hence representing an ideal place for Dabur to launch its juice products in this new market and to have access to EU market. Although the existing competitors face intense competition among selling juices but such rivalry tend to reduce due to the international comparisons and differential market shares in other markets. The juice market typically consists of the following juice types: 100% fruit juice from concentrate 100% fruit juice not from concentrate Nectar 30%-99% juice Fruit drink Vegetable juice The best selling type from the above is the 100% fruit juice not from concentrate. Dabur focuses on producing 100% juice not from concentrate and its juice ranges up to 12 covering almost all types of fruits. There is no single competitor in UK who is covering that many types of 100% juice not from concentrate thus making it ideal for this global FMCG to enter and survive the intense UK juice market and establish its juice brand . Its suitability for growth opportunity depends on the penetration of the brand into the market where there is a high concentration of residents of Indian-subcontinent. Its unique selling point is the existing quality which is on top of range of already established juice brands in UK market plus the comprehensive range of juices and the fact that it has been originated in India from a company which is in existence for more than 125 years. UK market is also considered an ideal market for Dabur due to high disposable incomes, and high health consciousness of UK residents couple with the desire of convenience of having quality products at the doorstep. The brand initially fits the criteria of becoming a successful juice brand in UK market but on top of that it ca n also launch similar juice products such as smoothies to compete with other major competitors such as Innocent. High product awareness means that Dabur can emphasize on the core qualities of its juices which circle around the healthy lifestyles. The biggest obstacle of a foreign market is the language barrier which can end up in high promotional cost. But Dabur already promotes its products in English in India and have large number of employees who are already skilled in English language. Thus entering the UK market will not going to increase its product-development or employee-training cost in anyway. There is also high rates of tourism every year which currently takes place in both countries thus there is already a huge sense of collaboration and exchange of cultural values in place. A big Asian community in UK means that Dabur only need to use different pricing strategies for products rather than starting from the scratch point of heavy promotion of its juices. (Economicstimes. indiatimes.com,www.dabur.com) MODE OF ENTRY BY DABUR REAL JUICE Export (Direct or Indirect) Joint Venture Direct Development Figure: International Market Entry Options Looking at the options above, company on the first instance can use the option of exporting its juice products because of low risk it carries but it will prove unsustainable for the company due to its traditional selling techniques which do not include exporting the products or having a joint venture. Company can make best use of Direct Development option by using its current product and customer base at a little extra cost. It gives company the maximum benefits of ultimate control but comes with the maximum cost without sharing it with any partners. This strategy fits best with Dabur international expansion motives which come with long term commitment in the international market. Direct Development also gives Dabur full control of marketing mix. There are number of marketing options available for Dabur to expand its product base in UK to include its popular brand and it does have number of options. Looking at generic strategies it can enter the UK market through Niche plays by having its brand on display in small corner and town shops present in multi-cultural areas of England such as London, Birmingham and Manchester. Due to the limited number of products offered by Dabur at this stage, it suggests that it has high excess capacity available by looking at the range of products it offers in Indian market. On top of that, the work it has done before on the development of brand in UK, it can be proved very successful for the launch of brand. This international expansion also suggests a good strategy to spread the corporate risk. Assignment 2. You are planning to enter this market as a market challenger. Examine your strategic attack options. To challenge existing competitors, further market analysis is being carried out as given below with discussion on strategic attack options: MARKET SEGMENTATION: First steps towards developing a strategic attach option on the competitors is the market segmentation. As a result of market segmentation company will be in a clear position on how to enter the market and reach the customers. Market Segmentation is the process of identifying different group of users within the market. (Croft, 1994). Dabur will need to use following product distribution networks to reach wider customer audience which is also covered by the competitors thus creating a challenging environment for them. WHOLESALERS: When the market for juice are distributed in UK then these one that is wholesalers falls under a category which deals the juice directly or indirectly with customers. DISTRIBUTERS: They are specialized in the task and well known about the local preferences so its easy to get localized feedback, and they again major consumer of juice. AGENTS: Agent has the all information about the local contractors, distributors and retailers etc. So they can enhance the dealing among the retailers. Agents will help to increase the network. RETAILERS: Retailer is the ultimate person who is directly dealing with customers or direct sales the product, he directly interact the buyers and delivered the information to customer about product due to which buyer buy the product there are a lot of dabur retailers are available in London which are already selling different product of Dabur. TARGETING Targeting is the second stage of the Segmentation Targeting and Positioning (STP) process. After the market has been separated into its segments, the marketer will select a segment or series of segments and target it/them. The task of marketing manager is to plan and execute programs that will assure an elite competitive advantage for any organization. According to Czinkota and Ronkainen (1990), this task has two integral part. They are (1) the determining of of specific target markets and (2) marketing management that consists of certain marketing mix elements. Option 1 THINK GLOBAL ACT LOCAL To target its customer base, company initially needs to take into account the habits of its potential customers such as there cultural and attitude needs and which types of products such customers values. Dabur will have competitive advantage here against any other international FMCG who wish to target similar customer base as it is already aware of the cultural needs of the target customer base. However it needs to act very sensitively to attract and retain customers of Indian origin due to intense rivalry and availability of alternative products. Such customer base can be act as a source of promotion within UK market and outside UK market due to large movement of people globally which is turning world in a single market. Option 2 Decentralisation Theodore Levitt has already commented on international movement in 1983 which was published in Harvard Business Review, Ancient differences in national tastes or modes of doing business disappear, the commodity of preferences leads inescapably to the standardisation of products, manufacturing, and the institutions of trade and commercesuccess in world competition turns on efficiencies of production, distribution, marketing and management. To integrate above, company need to ensure some de-centralisation within its organisation. Although it does have its subsidiaries in 7 other countries including UK, but specifically for the launch of product in UK decentralisation of marketing strategy from its Indian based business will be proved very beneficial. The decentralisation of marketing strategy will bring the benefits to Dabur UK such as addressing local needs more effectively but there will be issues in overall brand protection and strategic continuity of the overall business. Option 3 Using web Looking at high internet access, Dabur should also use the web as the major marketing strategy to attract the customer to its product but it will need to ensure that it tries to use same strategic principles in marketing its Product in UK as it does in India to keep the similarities in communication channels. Communication strategy forms the part of promotional aspects of the Dabur Company which alongside other Ps of the market strategy are discussed in the implementation section of this report in further detail. Assessing the options: How the product differs from others? The Dabur Real juice would be different from other juice products of UK. It contain more nutrient and Ayurvedic substances which will make this product differ from others, ayurvedic substances will give much more energy as compared to others. it will target the customers age group between 10 to 35 but its also attract the customers above 35 due to its nutrition and more energetic factors. To further develop strategic attach options, marketing mix analysis is carried out. The marketing mix is the term which is use to explain the compounding maneuver used by businessman for accomplishment of goal through its products and services. Usually its work on particular target group. It refers all 4 Ps which are few of the vital factors which implies the implementation of the product. Product Price Promotion Place Product : We are going to launch fruit juice it comes in different flavour. fruit juice is the core product. The company will launch its 14 variants in two divisions the first division will include the launch of seven variants and critically analysing the success. The company will launch its next seven variants after a period of 6 months. the juice will appeal to the people of all age group as health is no consider as wealth and juice is capable of nourishing people health of different age group. juice contains some added fleavors which will attract the age group of six to ten. Every product has a life cycle. Which start from Introduction than Growth afterward Maturity than after Declining and ultimately withdrawal last time of product. With the help of this product we can forecast the life of our product Real fruit juice. PRODUCT LIFE CYCLE Price : fruit juice is the natural flavoured juice which consists of various nutrients and vitamins. Based on the investment and quality, we fix a good price for selling. The company has launch its products by CREAMING price technique. Price will also help to show the brand and quality which attract the customers. We are using the direct development of the product strategy to launch this product, so we need to recover the cost of production and also good profit margin. Profit is directly related to price of product in any organization. Price is important as it generates revenue. juice price margin will be excellent due to its brand name. Sometimes customer make general perception that low price means low quality. So we cant ignore the customers like or dislike. Customer think negative about the very low price. They think that is inferior good and in case of too high price customer think product is very expensive. Until and unless company calculate the exact cost of goods and services, then c ompany afford more loss on more sale. Place : Initially we target the Indian dominated place in UK. UK is the highly multi cultural country, where we can find the people from every part of the world. Inside the UK London is the highly multi cultural location, south and west London would be most preferable place for launching the product fruit juice. Apart from London, we will also provide the easy accessibility of fruit juice in Birmingham, Manchester etc. We will try to cover all those places where the transport is very economic. Product would be available in many physical stores as well as on virtual stores over the internet. Promotion : Promotion of any product is a vital process of an organization. We should be very careful about the promotion of fruit juice. Now a days we are living in the modern era, it is easy to provide the information about our product inside and outside of the door. Promotion has 4 vital elements: advertising, personal selling, public relation and sales promotion. Advertising is a channel of communication which influences the listeners, viewers and readers directly or indirectly. With the help of advertisement we will make our product fruit juice among the customers. At this time we advertise fruit juice in various ways through television, radios, electronics, print media, banners and template also. We will distribute the free samples among the people. At the time of launching product in the market, we ned to spend a certain amount of money on advertisement. we can show the quality of product through advertising in electronic as well as print media. News papers and magazines contain the advertisement for a long period. It is one of the effective modes of promotion of goods. Free sample distribution and cash discount enhance the awareness of product in the market with the help of this process people will know about the taste and quality of a product, if they like product, they will start buying regularly. Cash discount always attracts the consu mers attention to buy product. We will also promote our fruit juice by good public relation. Daubur already have good image in the eye of Indian customers, so we will try to maintain this brand level in UK. We will also use the technique of individual sale to promote our fruit juice. Middleman in Distribution: We may reach out consumers either directly that is without help of distribution channel, or may be by using more than two distribution channel. Manufacturer to customer: with the help of direct marketing we can sell juice to buyers by personal selling, direct mail, telephone selling and internet etc. To distribute our fruit Juice we make available our product in to the multiplex, malls and give franchise and open new shop in local market. We will deal with agent, wholesaler and retailer to easy accessibility of our fruit juice to customers. Effective channel of distribution boost the sales of product. Critical Reflection Dabur juice is all set to launch itself in highly competitive juice market and ready to compete with well establish firms of juice market that include Pepsi co, Tesco, Tropicana.with Tropicana sharing the largest market share , Dabur juice can face some tough challenges. As discussed earlier the company using the creaming price technique it could go against the success of the juice in UK as some well established juice companies are charging much more nominal price and offering the similar quality. The company is the new entrant in UK juice market and Direct Development can go against the company which has just now moved their step forward by launching itself in UK market. Direct Development has advantage of getting maximum profits but on the other hand there are certain disadvantages as it is too costly for investment and it bears a lot of risk with it. The company will take much time for recovering its cost as the amount for investment is very high.The company will have to invest a huge amount in promotional activities as it has been mention earlier that in order to promote the juice the company will adopt a policy of distribution of free samples among the prospective consumers that could increase the cost and effect the profit of the company in long run. With the presence of well establish firms there is a perfect competition amongst the rivals, which could effect the success of the business in longer period of a time. Lack of Monopoly Market and presence of perfect competation the company will have to develop some unique strategy to tackle the problem of fierce rivalry in juice market. Although the company Dabur already launched in UK, the product of dabur that is juice is first amongst its categories it is a general perception of people that hesitate on shifting to a new product and juice been a new product could face this kind of difficulties. The company has a strategy of targeting the people of Indian origin it may happen that people of Indian origin may be use to local products so the company is in a great risk of failure in UK market. The company has adopted a direct development technique which involves a huge investment that includes setting ups the industries marketing which include a huge cost and in turn increases the profit earning capacity but at the same time the company has to go through high risk of not recovering it costs due to large investment and using direct development technique. BIBLOGRAPHY The Economics Times, 5 Dec, 2010, http://economictimes.indiatimes.com/news/news-by-industry/cons-products/fmcg/Dabur-rebrands-Real-juice-eyes-Rs-700-cr-from-food-div/articleshow/7046665.cms The complete directory of BBC, http://www.bbc.co.uk/a-z/ Food and Drink Federation, first half 2010 updated, access from, http://www.fdf.org.uk/publicgeneral/Food_and_drink_exports_firsthalf_2010.pdf Low price shopper, access from, http://www.lowpriceshopper.co.uk/vitamins_nutritionalsupplements/products__keyworduk+juice.html Times of India, access from, http://timesofindia.indiatimes.com/search.cms Mintel, http://academic.mintel.com/sinatra/oxygen_academic/my_reports/display/id=479966anchor=atom/displaytables/id=479966#section_554384 The Economic Times, 5 Dec, 2010, http://economictimes.indiatimes.com/articleshow/7046665.cms?prtpage=1 http://www.pepsico.co.uk/brands/tropicana Diet Blog, http://www.diet-blog.com/07/the_10_top_selling_brands_in_the_uk.php IBIS World, http://www.ibisworld.co.uk/industry/default.aspx?indid=495 Oxygen.mintel.com, http://oxygen.mintel.com/sinatra/oxygen/display/id=467867/display/id=479966 Oxygen.mintel.com, http://oxygen.mintel.com/sinatra/oxygen/display/id=467867/display/id=479966/display/id=227778 Adcock, D et al (2001), Marketing Principles Practices, 4th edition, Harlow, Pearson Education Limited, p. 120. Czinkota and Ronkainen, International Marketing 5th ed, (the Dryden Press, 1990) pp 17-19 Burca, Fletcher and Brown, International Marketing: An SME Perspective, (Prentice Hall, 2004) pp 476-78 www.Dabur.com Figures has been taken from Data monitor www.marketingteacher.com Doole I and Lowe R, (2001), International Marketing Stretegy, London, Thomson Learning. Gilligan, C and Wilson, M.S. (2003), Strategic Marketing Planning, Oxford, Butterworth-Heinemann. McDonald M, (2003), Marketing Plans how to prepare them, how to use them, Oxford, Butterworth-Heinemann. Croft, Market Segmentation, 2nd ed, Thomas learning 1994,pg 22-33 Wright, Business to Business Marketing, 1st edition, Prentice Hall 2003,pg 10-22 Kotler Keller, Marketing Management, 13th ed, Prentice Hall 2009, pg 696 Hollensen 2007 Global Marketing 4th ed, pg 481 Keegan, J. W. and Mark C. G, (2003), Global Marketing, New Jersey, Pearson Education Inc. Kotlar, P.C. et al, (2001), Principles of Marketing, 3rd edition, Harlow, Pearson Education Limited, p. 76. Kotler P. C, (2003), Marketing Management, New Jersey, Pearson Education. McDonald M, (2003), Marketing Plans how to prepare them, how to use them, Oxford, Butterworth-Heinemann. Micklethwait, J and Wooldridge, A (2000), Future Perfect: The Challenge and Hidden Promise of Globalisation, New York, Crown Business, p.131. www.siakhenn.trepod.com/capita.html

Financial Performance Of Selected Commercial Banks In Uganda Finance Essay

Financial Performance Of Selected Commercial Banks In Uganda Finance Essay Persistent poor financial performance in commercial banks in Uganda yet stakeholders continuously alleged that corporate governance of these banks was doubtful, provoked the writing of this paper. Disclosure and trust, which constitute the integral parts of corporate governance, provide pressure for improved financial performance (Mark2000). This paper aims at establishing the relationship between the core principles of corporate governance and financial performance in commercial banks of Uganda. Findings indicate that Corporate Governance predicts 34.5 % of the variance in the general financial performance of Commercial banks in Uganda. However the significant contributors to financial performance include openness and reliability. Openness and Reliability are measures of trust. On the other hand credit risk as a measure of disclosure has a negative relationship with financial performance. It is obvious that trust has a significant impact on financial performance; given that transpar ency and disclosure boosts the trustworthiness of commercial banks. Banks both local and international should enforce full disclosure practices and transparency practices thereby enhancing trust in order to survive in the competitive financial landscape. Introduction The International financial landscape is changing rapidly; economies and financial systems are undergoing traumatic years. Globalization and technology have continuing speed, financial arenas are becoming more open, new products and services are being invented and marketed and regulators everywhere are scrambling to assess the changes and master the turbulence. An international wave of mergers and acquisitions has swept the banking industry as boundaries between financial sectors and products have blurred dramatically. In this brave new world, one fact remains unchanged. The need for countries to have sound resilient banking systems and strong banks with good Corporate Governance then will use competition to strengthen and upgrade their institutions that will survive in an increasingly open environment (Kaheeru, 2001). According to James Wolfensohn former World Bank Group President, Corporate governance is about promoting corporate fairness, transparency and accountability (Financial Times, 1999). Governance is a requisite for survival and a gauge of how predictable the system for doing business in any country is. In developing countries, the importance of governance is to strengthen the foundation of society and chip into the global economy. International standards and guidelines on corporate governance have been established by many multilateral organizations including the OECD and the Basle Committee in the effort to ensure improved legal; institutional and regulatory framework for enhancing corporate governance in institutions such as banks and financial markets (Kibirango, 2002). Specifically, the World Bank has proposed guidelines for good corporate governance in the financial sector, because of the critical role of the sector as the main vehicle for robust economic growth and effective transmission of monetary policy In Uganda, the factors responsible for poor corporate performance especially in banks emanate from lack of transparency, accountability and poor ethical conduct (Kibirango, 1999). Commercial banks failures have been linked to self-inflicted causes resulting from bank owners; ICB(International Credit Bank), GBL(Greenland Bank), and Coop Bank were afflicted with the one-man management syndrome of corporate governance exemplified by Thomas Kato (ICB), Sulaiman Kiggundu (GBL) and USAID (Co-op Bank). There was no separation between senior management and the board of directors in ICB or GBL and that management took little account of depositors interests. The board of ICB consisted of 4 members of the Kato family including a six -year- old child GBL had two boards of directors but neither had a say in the running of the bank for instance ICBs audit report cited connected or insider lending to a tune of UShs. 4 billion In the case of GBL the July 1998 Bank of Uganda (BOU) Audit Report stated that as per30th June 1998, Insider lending stood at Ushs.22, 722 million representing 47 percent of customer deposits and accounting for 5 5 percent of the total loan portfolio yet the maximum amount the bank could lend according to FIS 1993 was Ushs.975 million only. The report also cited that in most cases credit was extended on sole instructions of then Managing Director without any or minimal documentation (BOU, 1999). At the time of removing the Managing director in December 1998, the bank was more illiquid than what the financial statements were showing. Greenland Bank had tried to cover up the shortfall through kiting cheques between them selves and Uganda Commercial Bank and this involved instruments worth about Ushs. 4 billion. At the time of handing over, Kigundu admitted having made huge investments (UShs. 37bn off-Balance Sheet) mostly in related companies without disclosing these in books of the bank. In addition, he had secretly solicited for substantial deposits UShs. 20 billion which were kept off the financial Statements of the bank (BOU, 19, 1999). The B.O.U. closure of the above mentioned banks was intended to awaken the owners, directors and managers of the other commercial banks to institute sound corporate governance principles and foster better financial performance. It is worth highlighting that, insufficient financial disclosure evidenced by high level of off-balance sheet items, lack of transparency resulting from gross mismanagement and dubious accounting actions as observed in cases of ICB, GBL (Yunusu, 2001) and TransAfrica Bank Ltd (B.O.U., 2002) are detrimental to interests of banks stakeholders especially the depositors. The banks capital, asset and earnings values are affected and as a result the financial performance is questionable. This may be due to poor corporate governance. Amazingly, even after the intervention by Bank of Uganda through the closure of at least three commercial Banks in 1999, a number of Commercial Banks in Uganda have continued to register poor financial Performance, for instance, National Bank of Commerce in 2001/2002 reported a loss of 729,000,000/= and the banks liabilities swelled to 5bn/= in year 2002 from Ug. Shs 2.3bn in 2001.Citibanks profits fell from Ug. Shs. 4.1bn. in year 2001 to 2.3bn/= in year 2002 (Aggrey, 2003), Similarly, the Balance sheet position of Stanbic Bank (U) ltd. for year 2001 declined by 14.24 per cent compared with a growth of 19.19 per cent in 2000. Loans and advances, which comprised 32.95 percent of total assets declined by 24.42 percent, and the efficiency ratio deteriorated from 31.65 percent to 35.07 percent (Stanbic Bank Uganda, 2001). The overall aim of this paper is to investigate the link between, financial performance and the Core pillars of corporate governance; transparency, disclosure and trust in commercial banks in Uganda, within International and local Commercial Banks with headquarters in Kampala District, Stanbic Bank, Cairo Bank, Orient Bank and CERUDE Bank were the key focus in this paper. In order to achieve this aim bank annual reports formed a major source of financial data used to gauge financial performance. Financial performance was measured using CAEL Model which was later correlated with corporate governance variable. An Overview of the Key Variables To understand corporate governance and financial performance variables in relation to commercial banks, the major corporate governance pillars i.e. financial transparency, disclosure and trust are dissected. Financial performance especially relating to commercial banks is also reviewed based on the performance dimensions comprising capital adequacy, asset quality, earnings and liquidity. The significance of stakeholders in commercial banks is also highlighted. These are compressed in a conceptual framework Revenue Authority and Bank of Uganda, the expectation of government is that, information from these enterprises should not be biased and misleading. Management has to take into account the stakeholders expectations when they set a strategic direction but this can only be attained through sound corporate governance. Corporate Governance Corporate governance is about building credibility, ensuring transparency and accountability as well as maintaining an effective channel of information disclosure that would foster good corporate performance. It is also about how to build trust and sustain confidence among the various interest groups that make up an organisation. Indeed the outcome of a survey by Mckinsey in collaboration with the World Bank in June 2000 attested to the strong link between corporate governance and stakeholder confidence(Mark, 2000). Given that a study has already been carried out on the extent to which board composition affects team processes (orientation communication feedbacks, coordination, leadership and monitoring), board effectiveness and performance of the selected financial institutions in Uganda (Rosette, 2002), the researcher picked three basic tenets of Corporate Governance; Transparency, Disclosure and Trust in relation to commercial bank financial performance in Uganda, these tenets fall under the accounting field. The constructs/tenets are reviewed in the following sections. Transparency Transparency is integral to corporate governance, higher transparency reduces the information asymmetry between a and bondholders), mitigating the agency problem in corporate governance (Sandeep et al, firms management and financial stakeholders (equity2002). In Uganda lack of transparency is attributed to the closures of commercial banks (Yunusu, 2001). Bank Transparency The concept of Bank transparency is broad in scope it refers to the quality and quantity of public information on a banks risk profile and to the timing of its disclosure, including the banks past and current decisions and actions as well as its plans for the future. The transparency of the banking sector as a whole also includes public information on bank regulations and on safety net operations of the central bank (Enoch et al, 1997 and Rosengren, 1998). Weak transparency makes banks asset risks opaque. Stock market participants including professional analysists such as Moodys encounter difficulties in measuring banks credit worthiness and risk exposures (Poon, Firth, and Fung, 1999, Morgan 1999, and Jordan, Peek, Rosengren, (2000)). Ball (2001) argues that timely incorporation of economic losses in the published financial statements (that is, conservatism) increases the effectiveness of corporate governance, compensation systems, and debt agreements in motivating and monitoring managers. For instance, improved governance can manifest in a reduction of the private benefits that managers can extract from the company or in a reduction of the legal and auditing costs that shareholders must bear to prevent managerial opportunism Governance research in accounting exploits the role of accounting information as a source of credible information variables that support the existence of enforceable contracts, such as compensation contracts with payoffs to managers contingent on realized measures of performance, the monitoring of managers by boards of directors and outside investors and regulators, and the exercise of investor rights granted by existing securities laws. There are a number of issues to consider in this regard. First, the existence of a strong financial accounting regime is likely a precondition for the existence of a vibrant stock market and in its absence the notions of equity-based pay and diffuse ownership of firms become moot (Ball (2001) and Black (2000)) Institutional Variables Used to Measure Corporate transparency comprises. Financial accounting disclosures of major stakeholders, Timeliness of disclosures, Information dissemination and completeness of information. Robert Abbie (2001) concur with BPS especially on institutional transparency, they outline the transparency dimensions as; Completeness of financial information, Release of information, Timeliness, and Means of dissemination. Disclosure Given the recent corporate scandals (US Based; Enron, WorldComà ¢Ã¢â€š ¬Ã‚ ¦ (Heidi and Marleen (2003) and Uganda Based; Greenland Bank Ltd, ICB(Japheth (2001)) restoring public trust is at the top of the agenda of todays business leaders. Greater information provision (disclosure) on the companys capital and control structures can be an important means to achieve this goal. High quality and relevant information is crucial for exercise of governance powers. Full Disclosure seeks to avoid financial statements fraud(Beasley, 1996; Beasley et al, 2000). Prior studies have concentrated on disclosure of items such as management earnings forecasts (Johnson et al, 2001; Lev and Penman1990) or interim earnings (Leftwich and Zimmerman 1981), or have examined a very general disclosure index of financial and/or non financial items (Chow and Wong Borren, 1987). The CIFAR Index (i.e. a disclosure index created by the Center for Intentional Financial Analysis and Research (CIFAR) rates annual reports on the inclusion or omission of about 90 (rather traditional and mandatory financial) items from the following categories; general information, income statements, balance sheet, funds flow statement, accounting standards, stock data and special items (Laporta et al, 1998). Dangers of Voluntary Disclosure The most common arguments against voluntary disclosure from a managerial perspective are fear of giving away sensitive information to competitors and procurement of extra costs for collecting and disclosing the information (Eccles and Mavrinac (1995), Healy and Palepu (1993), Reich and Cylinder (1997).However, it is worth noting that as competition continues to bite, the basket of secret information tends to reduce. Financial Disclosure Financial disclosure, which is a key component of the newly proposed Basel Capital Accord, is reviewed in the following paragraphs. In April 2003, the Basel Committee on Banking Supervision (BCBS, 2003a), headquartered at the Bank for International Settlements in Switzerland, released the new Basel Capital Accord, which replaced the1988 Capital Accord with an attempt to set regulatory capital requirements that are comparable across countries. The purpose of pillar three is to complement the other pillars by presenting an enhanced set of public disclosure requirements focusing on capital adequacy. This pillar is examined in more detail than the first 2 pillars given that disclosure represents one of the key variables in the scope of this study. Details of Pillar Three Pillar Three addresses the issue of improving market discipline through effective public disclosure. Specifically, it presents a set of disclosure requirements that should improve market participants ability to assess banks capital structures, exposures, management processes, and, hence, their overall capital adequacy. The proposed disclosure requirements consist of qualitative and quantitative information in three general areas: corporate structure, capital structure and adequacy, and management. Corporate structure refers to how a banking group is organized; for example, what is the top corporate entity of the group and how are its subsidiaries consolidated for accounting and regulatory purposes. Capital structure corresponds to how much capital is held and in what forms, such as common stock. The disclosure requirements for capital adequacy focus on a summary discussion of the banks approach to assessing its current and future capital adequacy. The Concept of Trust Trust means many things. Everyone knows intuitively what it is to trust; yet articulating a precise definition is not a simple matter (Wayne Megan 2002). Trust is difficult to define because it is so complex, in fact, Hosmer (1995) has observed. There appears to be widespread agreement on the importance of trust in human conduct, but unfortunately there also appears to be an equally widespread lack of agreement on a suitable definition of the construct. Trust is a multifaceted construct, which may have different bases and phases depending on the context; it is also a dynamic construct that can change over the course of a relationship (Wayne and Megan, 2002). Facets of trust There are at least five facets of trust that can be gleaned from the literature on trust (Hoy Tschannen-Moran, 1998; Tschannen-Moran Hoy 2001). Benevolence, reliability competence, honesty and openness are all elements of trust (Wayne Megan 2002). Benevolence perhaps the most common facet of trust is a sense of benevolence confidence that ones well being or something one cares about will be protected and not harmed by the trusted party (Baier, 1986; Butter Cantecell, 1984; Cummings Bramily, 1996; Deutch, 1958 Frost, Stimpson Maughan, 1978; Ganbetta, 1988; Hosner, 1995; Hoy Kupersmith 1985; Mishra 1996). Reliability at its most basic level trust has to do with predictability that is, consistency of behaviour and knowing what to expect from others (Butter Cantrell, 1984; Hosmer1995). In and of itself, however, predictability is insufficient for trust. We can expect a person to be invariably late, consistently malicious, inauthentic, or dishonest when our well-being is diminished or damaged in a predictable way, expectations may be met, but the sense in which we trust the other person or group is weak. Competence: Good intentions are not always enough when a person is dependent on another but some level of skill is involved in fulfilling an expectation an individual who means well may nonetheless not be trusted (Baier 1986; Butter Cantrell, 1984; Mishra, 1996). Competence is the ability to perform as expected and according to standards appropriate to task at hand, many organisational tasks rely on competence. Honesty: Honesty is the persons character, integrity and authenticity Rotte r (1967) defined trust as the expectancy that the word, promise, verbal or written statement of another individual or group can be relied upon. Statements are truthful when they confirm to what really happened from that perspective and when commitments made about future actions are kept. A correspondence between a persons statements and deeds demonstrates integrity. Openness: Openness is the extent to which relevant information is shared; it is process by which individuals make themselves vulnerable to others. The information shared may be strictly about organisational matters or it may be personal information, but it is a giving of oneself (Butter Cantrell, 1984, Mishra, 1996) such openness signals reciprocal trust a confidence that neither the information nor the individual will be exploited and recipients can feel the same confidence in return. Individuals who are unwilling to extend trust through openness end up isolated (Kramer, Brewer Hanna, 1996). In Uganda, as in many oth er countries, there is a rooted distrust in most of the public sector Shleifer, and Vishny, (1993) this may also be the case for the private sector in which the commercial banks fall. Macro-Economic Variable Macro-economic variables through factors such as inflation and changes in interest rates may either enhance or distress commercial banks financial performance. Cordella levy Yeyati (1998a) point out that if the shocks of the economy are wide and banks cannot control their asset portfolio risks, then full transparency of banks risk positions may destabilize the banking system. A countrys macro economic environment may also affect transparency levels therefore it becomes difficult to relate to financial performance of commercial Banks. Consider Uganda where the economy is shaped by a number of straining factors like unemployment, 38% of entire population under the poverty line. Such factors have a serious impact on the behaviour of potential account holders or even those who operate accounts. This means that even if there is proper transparency, full disclosure and trust in the banking industry, the above challenges may negatively affect financial performance in Uganda. In this paper, these together with other social, political and technological factors are assumed invariable. Relationship of Transparency, Disclosure, Trust and Financial Performance Transparency, disclosure and trust, which constitute the integral part of corporate governance, can provide pressure for improved financial performance. Financial performance, present and prospective is a benchmark for investment. The Mckinsey Quarterly surveys suggest that institutional investors will pay as much as 28% more for the shares of well governed companies in emerging markets (Mark, 2000). According to the corporate governance survey 2002, carried out by the Kuala Lumpur stock exchange and accounting firm Price Water House Coopers (PWC), the majority of investors in Malaysia are prepared to pay 20% premium for companies with superior corporate governance practices. Financial Performance and financial institutions Financial soundness is a situation where depositors funds are safe in a stable banking system. The financial soundness of a financial institution may be strong or unsatisfactory varying from one bank to another (BOU, 2002). External factors such as deregulation; lack of information among bank customers; homogeneity of the bank business, connections among banks do cause bank failure. Some useful measures of financial performance which is the alternative term as financial soundness are coined into what is referred to as CAMEL. The acronym CAMEL refers to the five components of a banks condition that are assessed: Capital adequacy, Asset quality, Management, Earnings, and Liquidity. A sixth component, a banks Sensitivity to market risk, was added in 1997; hence the acronym was changed to CAMELS. (Note that the bulk of the academic literature is based on pre -1997 data and is thus based on CAMEL ratings.) Ratings are assigned for each component in addition to the overall rating of a bank s financial condition (Jose, 1999). The ratings are assigned on a scale from 1 to 5. Capital Adequacy: This ultimately determines how well financial institutions can cope with shocks to their balance sheets. The bank monitors the adequacy of its capital using ratios established by The Bank for International Settlements. Capital adequacy in commercial banks is measured in relation to the relative risk weights assigned to the different category of assets held both on and off the balance sheet items (Bank of Uganda, 2002). Asset Quality: The solvency of financial institutions typically is at risk when their assets become impaired, so it is important to monitor indicators of the quality of their assets in terms of overexposure to specific risks trends in non- performing loans, and the health and profitability of bank borrowers especially the corporate sector. Credit risk is inherent in lending, which is the major banking business. It arises when a borrower defaults on the loan repayment agreement. A financial institution whose borrowers default on their repayments may face cash flow problems, which eventually affect its liquidity position. Ultimately, this negatively impacts on the profitability and capital through extra specific provisions for bad debts (Bank of Uganda, 2002). Earnings: The continued viability of a bank depends on its ability to earn an adequate return on its assets and capital. Good earnings performance enables a bank to fund its expansion, remain competitive in the market and replenish and /or increase its capital(Bank of Uganda, 2002). A number of authors have agued that, banks that must survive need: Higher Return on Assets (ROA)., better return on net worth/Equity (ROE), sound capital base i.e. the Capital Adequacy Ratio (CAR), adoption of corporate governance ensuring transparency to stakeholders that is equity holders, regulators and the public. Liquidity: Initially solvent financial institutions may be driven toward closure by poor manage ment of short-term liquidity. Indicators should cover funding sources and capture large maturity mismatches. An unmatched position potentially enhances profitability but also increases the risk of losses (The Ugandan Banker, June 2001). The M represents Management, given that this paper is hinged on financial performance, the management component in not considered in the measure. Generally, literature on corporate governance comprises attributes such as financial transparency, disclosure and trust among others and it is revealed that financial transparency and disclosure enhance trust between the stakeholders and organisations like commercial banks. Capital Adequacy, Earnings and Liquidity are the key dimensions of measuring financial performance in Commercial Banks. In summary, this literature forms an underpinning for the establishment of the association between corporate governance and financial performance. Methodology This study was conducted as a cross sectional and correlational investigation. Given that the key focus was to investigate the relationship between Corporate governance and financial performance. The managers of commercial banks in Uganda may be ensuing the arguments of Eccles Mavrinac (1995), Healy Palepu (1995), and Reich Cylinder (1997) whose studies make a note that voluntary disclosure of information for instance on Total capital bases Tier 1 2 capital, and preference shares may directly give away sensitive information to competitors and the disclosure process itself may lead to extra bank operating costs. Analysis Level of Trust in Commercial Banks On average the Commercial banks are not open to their clients on matters concerning the banks the majority indicated that manages do not tell them what is really going on in the bank; over 62 % were not sure and affirmed this statement. The lack of openness in these commercial banks may raise distrust as noted by Beatty Cantrell (1984), and Mishra (1996) who note that openness signals reciprocal trust a confidence that neither the information nor the individual will be exploited and recipients can feel the same confidence. Many authors conclude that reliability implies a sense of confidence. From URA, it was shown that the commercial banks are open to URA officials about what is going on in the bank (62.5%), it was also found out indicated that the commercial banks are competent in doing their work. The majority of URA officials also indicated that commercial banks are honest to URA and it is also indicated that commercial banks are reliable to URA , Overall analysis from the findings institutes a piece of evidence that URA trusts commercial banks activities. Level of Financial Performance in Commercial Banks As noted earlier, financial performance was considered the dependent variable in this paper, before correlating it with governance variables its magnitude within the commercial banks was ascertained. Secondary data especially from respective commercial banks annual-reports (from 2000 to 2003) were used to extract the summary of the banks financial performance Based on Capital Adequacy, Asset Quality, Earnings and Liquidity as recommended by BOU for measuring Financial Performance (BOU 2002). Capital adequacy, which is measured by CK/RWAs ratio(Core Capital / Risk Weighted Assets), in most banks was above the central banks, required level of 12%. Asset Quality, which was measured by NPA/ Total advances and Specific Provisions, also indicated that most banks were above the FIS (1993) requirement of 25%. Earnings, which are measured by ROE and ROA ratios, indicated that some banks earnings performance was below zero for instance Bank R. Some other banks indicated a steady movement upwards especially on their ROA Ratios. Liquidity which is measured by Liquidity Assets/Total Deposits and Total Advances/Total Deposits ratios, indicated that in the overall commercial banks were highly liquid over the trend 2000 to 2003,for instance for bank Z the Liquidity Assets/Total Deposits ratios were 119%, 140%, 112 % and 129% respectively, this implied a weakness in the financial performance of commercial banks. Relationship between Corporate Governance and Financial Performance in Commercial Banks. It was disclosed that all the dimensions of financial transparency, Disclosure and trust had positive relationships with most of the financial performance dimensions in commercial banks in Uganda. For instance capital adequacy, earnings, assets quality highly showed positive correlations with openness competence honestly and kindness. This is also in agreement with the McKinsey quarterly Survey Mark (2000) and the Corporate Governance Survey (2000) by the Kuala Lumpar Stock Exchange and accounting firm PWC that noted that there is a link between corporate governance and financial Performance due to the investors willingness to inject more funds in a wellgoverned firm. The extent to which corporate governance influences Financial Performance Regression analysis was used to find the influence of the independent variable Corporate Governance (financial transparency, disclosure and trust) on the dependent variables financial performance (capital adequacy, asset quality, earnings and li quidity). An analysis of Variance was produced reflecting the variables corporate Governance and financial performance. Results indicated that Corporate Governance (Transparency, Trust and Disclosure) predicts 34.5 % of the variance in the general financial performance of Commercial banks in Uganda. The significant contributors to financial performance were openness and reliability. Openness and Reliability all these are measures of trust. On the other hand, credit risk as a measure of disclosure had negative relationship with financial performance, this is in harmony with extant finance literature which highlights that, it is probable that when risky lending increases the payback declines. This in turn negatively affects commercial banks earnings. Conclusion and Recommendations Disclosure whose strongest dimension was ascertained as Credit Risk in this paper is in agreement with the New Basel Capital Accord (2003) and Lopez (2001). On the side of Trust; reliability, openness and honesty came out to be the strongest dimensions to gauge trust in commercial Banks this is in conformity with the study undertaken by Butter Cantrell (1984); and Wayne Megan (2002).Whereas completeness came out as the significant dimension when measuring financial transparency. Recommendations based on the above finds include: Given that the corporate governance can influence over 34% of the financial performance of banks, commercial banks need to adopt and strengthen the corporate governance principles especially on dimensions of timeliness in delivering the financial reports to Bank of Uganda and presenting the details of Loan Advances This means that issues regarding transparency where timeliness and completeness fall should not be underestimated by such banks. After the Commer cial Banks have established mechanisms to enforce proper governance practices such as financial disclosure and transparency. They will automatically build a bond of trust with their numerous stakeholders including customers, society, and government among others. Some of these stakeholders especially customers will in turn invest their funds in these banks. For instance, they buy shares when the respective commercial bank is listed both on the local capital market like Uganda Stock Exchange (USE) or on international Capital Markets like The New York Stock Exchange (NYSE) or any other capital market. Commercial Banks operating in Uganda, like any form of business organisation, in todays dynamic financial landscape should focus on proper Governance Practices and Principles not only to boost and enhance their financial performances but as path to gaining a better publ