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CHAPTER 1: INTRODUCTION
1.1.
Overview
Poverty in Pakistan has almost always been a major macroeconomic issue and it has
attracted many scholars for their researches. In the recent years, there is a substantial body of
relationship between financial development and poverty reduction is established. And the
literature found is quite conclusive for poverty reduction in improving the banking sector. Some
former studies have given a certain threshold to this argument of economic development, while
others have studied the dynamics of poverty reduction. To study the banking sector development
for poverty reduction, a huge amount of data is used like cross-section data analysis (Yu
Ho&Odhiambo, 2011, p.103).
According to Uddin et al., 2013, p.406), the influence of improvement in finance sector
has ambiguous and uncertain results on poverty reduction in developing countries (Pradhan,
2010, p.114). While comparing poverty reduction with growth model, poverty reduction has
more leverage and significance in economic growth. The standpoint that economic progress can
lead to poverty reduction is not necessary. It implies that the economic growth result in
improving poor lives quality, but it does not.
1.2.
Problem Statement
Although there have been an extensive researches, studies and models that discussed the
impact of banking sector development on poverty reduction, but the results were not certain.
However, the topic needs modifications. The banking sector has been playing a vital role in
encouraging the economic growth which in turn leads to poverty reduction in Pakistan. Poverty
1.3.
of financial sector development. As financial sector development is an effective tool for economy
growth of a country. Many studies have provided that a well-functioning financial system that
allocates resources mobilizes savings and calculates risk management is a contribution to
economic progression. In addition to economic growth, the financial services are more in
demand for the financial advancement.
relationship between economic growth and banking sector development. On the contrary, it is not
argued to that the financial development would have an impact on poverty reduction
(Inoune&Hamori, 2010, p.1).
Poverty reduction, on the contrary, has been the subject of many researchers area of
study. In Pakistan it has been a foremost and a major issue, as Pakistan is also included in the list
third world countries. It has been a serious problem as it affects the global economy as well.
Government of Pakistan has taken some robust initiatives to struggle with poverty and the
officials are concerned about the poverty reduction in Pakistan (Shafiq et al., 2012, p.366). Some
researchers have studied the impact of financial development on poverty reduction by applying
1.4.
research, along with problem statement and significance. This chapter provides general
understanding of the subject, what the research was projected at, what evaluates the need of
research on the issue and how the research can be used as a source in future, etc.
Chapter 2 is a comprehensive review of the former literature and recent research on the
topic. The basic themes, models, theories and issues are discussed here coupled with essential
research findings to shed light on what is already known about the issue and what are the
portions to take up future research and investigation. This chapter also includes the conceptual
framework for the study which strongly emphasizes its base whereas the hypothesis has also
been created supported by literature review.
Chapter 3 is a research methodology i.e. research philosophy, research design, approach,
sampling techniques, type of investigation, data collection and analysis technique, etc. This
chapter moreover comprises the limitations, hypothesis and variables in the study. The chapter
broadens the generalizability of the study by offering a brief review of the research procedure
and by recognizing the limitations.
2.1.
Introduction
The relationship of Banking sector development and poverty reduction in Pakistan has an
extensive and inconclusive empirical and theoretical literature (Uddin et al., 2013, p.305).
Ahamada and Coulibaly (2011) instigated as how financial development is beneficial for
economic growth volatility. The impact of increasing the rate of volatility in emerging economies
is reducing the rate of poverty. Although the augment in economies increases the demand of
financial services but influences the financial growth. Furthermore, a recipient account might
make them reasonable for bank loan and hence it expands the credit market size (Sami, 2013,
p.503). Financial sector is an essential growth aspect and it plays role in the form of fast payment
services, improved remittance services and many other branches in several fields like business
that dwindle transaction cost and goods between household, hence it can help to promote
economic growth (Khan et al., 2011, p.60).
2.2.
Economic Growth
The increase of per capita gross domestic product (GDP) or other measurements of
aggregate income is referred as economic growth. To evaluate economic growth, the rate of
change in real GDP is calculated. Economic growth is only considered to be the production of
goods and services. Economic growth is both; positive and negative. Negative economic growth
is when the economy is shrinking. It is the economic recession or depression (Lewis, 2013, p.23).
Domestic resources are considered to be the significant component for economic growth
and reduce poverty. There are no second thoughts on the role that financial development and
2.3.
Financial Development
Financial sector development established because of an important mechanism as that is
beneficial for economic growth. The financial development has a crucial part to play with in
alleviation of poverty for developing countries like Pakistan (Ellahi, 2011). Financial
development is associated with the financial instability where poor are not benefitted from the
2.4.
skin spreads while pressurizing profits. Alongside healthy transactions and increased non-
Poverty Reduction
Poverty is referred as the capacity to buy the product or services depending on
consumption and income on assets or material possessions. In 1990s poverty reduction and the
poorest have been the purpose of attraction at international summit according to Canadian
International Development Agency (CIDA). Reduction of poverty can be determined in order to
provide credit to businesses of financial intermediaries by creating more jobs through industry
growth (Imran & Khalil, 2012, p.568).
Pakistan has been a developing economy considering the poverty trends based on crosssectional datasets. Poverty dynamics can be classified as chronic poverty and transitory
(Arif&Farooq, 2011, p.1). According to Shafiq et al. (2012), Poverty has been the biggest of
issues in Pakistan. His study is about the relation between poverty alleviation and economic
growth where the time period of 1978 to 2010 was analyzed. His research suggested that there is
a negative impact on poverty but it contributes to poverty reduction in a long-run. There is a
close relationship between finance and growth and that nexus is contributing as an emerging
body that analyses the effects of financial development on both; poverty conditions and income
distribution. A few researches have explored the association between financial growth embedded
in poverty ratio using cross country data and private credit exist for more than 70 developing
countries. The findings resulted in negative association with the poverty ratio after optimizing
the income, inflation rate and the income share of top 10% (Inoue &Hamori, 2010, p.2).
2.6.
between financial development and poverty with the help of government intervention.
2.7.
Research Hypothesis
H2: There is long term equilibrium between banking sector development and poverty
reduction in Pakistan.
3.1.
collection and (2) Secondary Data Collection. The primary data collection method is referred as
the collection of first-hand information which has not been collected before by any researcher or
publications. Some important tools for primary data collection are (a) Interviews, (b) Surveys, (c)
Focus group and (d) Observations. On the other hand, secondary data collection refers to that
information which has already been researched and is known as second hand information. Some
techniques of collecting secondary data collection are through research publications, research
papers, companys annual reports, economic survey reports and newsletters (Galvao et.al, 2013,
p. 307).
The current research has adapted secondary data collection method because of the nature
of the study being conducted. The data will be collected from World Bank and economic survey
website of Pakistan. The basic advantage of secondary data is that it allows the researcher in
collecting meaningful information which can be large thus providing authentic and reliable data
for carrying out the analysis.
3.2.
Sampling Technique
Time series is defined as an arrangement of data points, particularly involving successive
measurement developed through different time intervals. The time series analysis includes
different methods and processes for the purpose of examining time series data to get meaningful
statistical data and other attributes of the data. Moreover, time series forecasting is the utilization
3.3.
Sample Size
The sample collected was from World Bank and Economic survey of Pakistan. Data was
3.4.
Statistical Technique
In a situation where the research variable in long term relation of interest are assumed
stationary, the usual practice is to de-trend the series and then to de-trend the series to a specific
model as autoregressive distributed lag (ARDL) or stationary distributed lag. The regressors may
incorporate lagged values pertaining to dependent variable and lagged and current values of
more than two explanatory variables. The ARDL model enables the researcher in measure the
effect due to the change in policy variable (Ritchie, 2013, p. 36).
3.5.
Research Model
The research model is based on Autoregressive Distributed Lag (ARDL) or Stationary
i 1
i 1
i 1
i 1
Where,
c1 ,c 2
= constant
1 , 2
1, 2
= coefficient on the lagged level of the dependent and independent variable
i
= coefficient on the lagged dependent variable
i
=coefficient on the lagged independent variable
u1 ,u 2
= error term
P = signifies the maximum lag length
4.1. Overview
Chapter four of this study comprises of analysis and findings from secondary data
collected. The data is collected from World Bank and economic survey website of Pakistan. The
researcher has utilized meaningful information for the purpose of research. The study aimed to
understand and evaluate the impact of banking sector development on poverty reduction.
t-Statistic
Prob.*
-0.534955
-3.737853
-2.991878
-2.635542
0.8675
t-Statistic
PAK_PER(-1)
C
-0.038304 0.071603
20.97676 27.01839
-0.534955 0.5980
0.776388 0.4458
R-squared
Adjusted R-squared
S.E. of regression
Sum squared resid
Log likelihood
F-statistic
Prob(F-statistic)
0.012841
-0.032030
17.44119
6692.294
-101.6224
0.286177
0.598047
Null Hypothesis:
Prob.
6.649167
17.16841
8.635202
8.733373
8.661247
2.515456
Ho: = 0
(I.e. the needs to be different to make it stationary)
Alternative Hypothesis:
H1: < 0
(I.e. the data is stationary and does not need to be differenced)
From the results of E-views regression analysis, it can be observed that null is coefficient
on PAK_PER (-1) is negative or approximately zero, which mean that there is a unit root.
Alternative hypothesis is less than zero, which means no unit root.
t-Statistic
Prob.*
-6.399386
-3.752946
-2.998064
-2.638752
0.0000
t-Statistic
Prob.
-1.362859 0.212967
9.694089 3.862668
R-squared
Adjusted R-squared
S.E. of regression
Sum squared resid
Log likelihood
F-statistic
Prob(F-statistic)
0.661029
0.644887
16.79238
5921.667
-96.47070
40.95214
0.000002
Null Hypothesis:
-6.399386 0.0000
2.509687 0.0203
-0.743043
28.17923
8.562669
8.661408
8.587502
1.909316
Ho: = 0
(I.e. the needs to be different to make it stationary)
Alternative Hypothesis:
H1: < 0
(I.e. the data is stationary and does not need to be differenced)
Hypothesis is tested using the results obtained from E-views regression analysis; it can be
observed that null is coefficient should be zero, which means that there is a unit root. Alternative
hypothesis is less than zero, which means no unit root.
4.5. Interpretation 2
From the above table obtained from E-views, represent the results obtained from
augmented Dickey-Fuller Statistics. To test the hypothesis, level of significance = 0.05 is
considered. Results from Augmented Dickey Fuller Statistics are -6.3993, which is lower than
critical value -2.9980, at 5% level of significance. Therefore, we cannot accept the presence of
unit root, confirmed by approximate p-value for z (t) = 0.000. To reject the null at 10 %,
PAK_BANK
PAK_PER(-1)
0.584032
(0.19862)
[ 2.94041]
0.012276
(0.02320)
[ 0.52924]
PAK_PER(-2)
0.370196
(0.20690)
[ 1.78922]
-0.009493
(0.02416)
[-0.39286]
PAK_BANK(-1)
5.036928
(1.83511)
[ 2.74475]
1.038300
(0.21431)
[ 4.84494]
PAK_BANK(-2)
-2.983277
(1.74801)
[-1.70667]
-0.512719
(0.20413)
[-2.51167]
-24.10537
(37.3688)
[-0.64507]
10.74400
(4.36397)
[ 2.46198]
R-squared
Adj. R-squared
Sum sq. resids
S.E. equation
F-statistic
Log likelihood
Akaike AIC
Schwarz SC
Mean dependent
S.D. dependent
0.924959
0.908283
4172.620
15.22538
55.46732
-92.44485
8.473465
8.720311
383.9813
50.27408
0.607259
0.519983
56.90537
1.778035
6.957925
-43.05338
4.178555
4.425402
25.01565
2.566327
448.8003
-135.4968
12.65190
13.14559
Considering the fact that longer lags were utilized in Dickey-Fuller regression, likelihood
of vector auto regression having longer lags is higher. The results obtained from auto regression
estimates, describes that the coefficients on st1 and f pt1 in both equations are statistically
significant at the 10% level and that the fit for the fp t equation is much better than the fit for the
st equation. Output obtained from E-views for auto regression estimates also mentions the
coefficient standard errors and t-statistics, summary also displays R-squared measures for each
equation (which are valid because each equation estimates are obtained from least square).
1. Introduction(300 words)
1.1 Scope of Report
1.2 Overview of Tesco Plc in UK
The company selected for this task is Tesco is the largest food retailers in the world with revenue
in excess of 54 billion in 2009 and employing over 470,000 people. They operate
approximately 4,331 stores in 14 countries around the world. The company operates primarily in
the USA, Europe and Asia and their Head Office is based in Hertfordshire, UK.
The strategies that have been adopted by the company involve introducing the Club Cards and
applying customer centric approach for the purpose of attracting and retaining the customers.
2. Task A(1000)
2.1 Market Environment Analysis:
2.1.1 Micro Environment (Porters)
An analysis of the structure of the industry should be undertaken in order to find effective
sources of competitive advantage (Porter, 1985) i.e. Tesco is include threat of substitute products
and services, threat of entry of new competitors, intensity of competitive rivalry, bargaining
power of buyers, bargaining power of suppliers.
2.1.2 Macro Environment: (Pestle)
The macro environment for Tesco can be analyzed with the help of certain adequate tools such as
PESTLE analysis and Porters five forces .The PESTEL framework below analyses the dynamic and
unpredictable environment in which Tesco operates by identifying the forces that have the most impact on
Tescos performance:
4. Task C(700)
Task 1
1.1 Company Overview
The company selected for this assignment is Microsoft that is an American
multinational that is engaged in developing, licensing and supporting a range
of software products and services. The Company also designs and sells
hardware, and delivers online advertising to the customers.
The marketing issue that the company faced was with the launch of its
product cellphone lamia windows phone or LumiaAnroid phone Both the
products were two different models and were aimed to target two different
Legal: The companies operating in the technology sector along with Microsoft had to face legal
issues at a time from the government or the competitors depending upon the situation.
.Environmental: Nowadays, the focus of all the companies operating in any industry is on the
environment.
1.3.2 Porters Five Forces
Buyers:Microsoft has had deals with almost every major PC company (buyers
in this instance) to include a copy of the latest Windows version as part of
the cost of a pre-built PC
Suppliers:Microsoft by outside suppliers are available from a large number of
firms.
SWOT Analysis
Strength:
1. Brand loyalty
2. Brand reputation
3. Easy to use software
4. Strong distribution channels
5. Robust financial performance
6. Acquisition of Skype
Weakness:
1. Poor acquisitions and investments
Opportunity:
1. Cloud based services
2. Mobile advertising
3. Mobile device industry
4. Growth through acquisitions
Threat:
1.Intense competition in software products
2.Changing consumer needs and habits
3.Open source projects
4.Potential lawsuits
1.3.4 McKinsey 7s
o Strategy: The main strategy adopted by the company is regarding product innovation
o Structure: The Company follows a flatter structure
o System: There are very well defined systems of the company
Task 2
SMART Objectives
Cash Flows
This will be developed according to the strategies adopted and their budget
Chapter 1: Introduction
1.1 Introduction
The first chapter of the research facilitates researchers by providing fundamental details
regarding the present study. The chapter introduces the topic and issues on which the study is
based. For this reason, this chapter is symbolized as an introductory chapter which delineate the
To study the perspective of parents about the English Language skills development of
child
2.
To evaluate the perception of communities about the English Language skill development
of child
3.
To study the perceptions of parents and communities about the importance of the English
language culture for the primary and middle schools of Faisalabad, Pakistan
2.
3.How the nexus of parents and communities can improve the English language culture of the
primary and middle schools of Faisalabad specifically in D Ground, Motorway City, Millat town
and Nishatabad?
Chapter 1: Introduction: The first chapter of the research constitutes of the line of
action adopted by the researcher in order to accomplish the particular study. This includes the
research objectivesociety as a whole. Therefore, this research will contribute a substantial
amount of value within the field of academics within the vicinity of Faisalabad.
Chapter 2: Literature Review: The second chapter integrates the analysis, assessments
and the inspections of the work carried forward by the prior researchers in the specific field.
Chapter 3: Methodology: The third chapter of the research signifies the procedures and
process employed by the researcher which enables the researcher to satisfy the predefined goals
and objectives.
Chapter 4: Data Analysis: The chapter of data analysis entails the procedures adopted
by the researcher to analyze the gathered data. This chapter enables the researcher to compute
results acquired through the collected data.
includes the overall findings of the research. However, this chapter also includes the
recommendations proposed by the researcher in according to the findings accumulated through
data analysis.
1.10 Chapter Summary
The analysis of the entire chapter reveals that this study aspires to articulate upon the impacts of
the perceptions of the parents and the society regarding the adoption of English language within
primary and middle schools of Faisalabad. Furthermore, this chapter highlights the step by step
approach the employed by the researcher in order to accomplish this study. In addition to this, the
chapter also includes research objectives and questions which enables the researcher to develop
an organized study. However, the outline of the entire dissertation is also portrayed in this
chapter which highlights the line of action utilized by the researcher for the successful
completion of the study. In addition to this, the chapter also includes the background of the study
which enables the researcher to provide brief theoretical foundations regarding the chosen topic.
According to the research outline mentioned above, literature review chapter will be added after
2.
3.
4.
Ethical Considerations
Ethical considerations refer to the essential part of the study. It is mandatory for the researchers
to consider all the ethical concerns while accomplishing the research. There are three types of
Chapter 1: Introduction
What are the different methods through which British Red Cross Company can
implement its effective policies?
The objectives of the study are designed by the researcher for answering the research
questions. They emphasise on how the aims of the research are to be accomplished. Objectives
must be highly feasible and focused and appropriately address the overall outcomes of the
project (Creswell, 2013). Following are the objectives of this researcher study:
To determine the efficiency of the British Red Cross business management policies.
2.1. Introduction
Business Policy characterises the degree or extent to which employees within
anorganisation can take decisions (Daft, 2015). It allows the lower management level to manage
the issues and problems without counselling top management level for making decisions each
time. Business procedures andpolicies are the rules created by a company to supervise its
activities (Daft, 2009).Head & Alford (2013) describes the boundaries of decision making, which
must be followed. Likewise, business policy manages the attainment of organisational resources,
which are essential for achieving organisational objectives. Business policies are the exploration
of the top management level responsibilities, the substantial issues influencing success and
achievement of the organisation and the decisions that may influence the organisation in longterm (Daft, 2015).
Regardless of the sector anorganisation operates in, i.e. public or private
sector,management of business policy is crucial and turning out to be the most significant factor
(Hitt et.al, 2012). An investigation led by The Economist's Intelligence Unit regarding 211 public
sector as well as private sectorcompanies found that 89 %of the government participants and 81
% of the private participants have experienced a negative effect due to the absence of effective
management of business policy (Hitt et.al, 2012).
philanthropy projects and donations, if they are to achieve the unique sense of individualism
(Snell et.al, 2015). The British Red Cross uses a combined method of funding that is desirable by
majority of the philanthropy projects. As indicated by the higher management levelmember of
the British Red Cross, they are satisfied with the charitable amount that they are able to generate
as revenue; however,the higher management level member additionally expressed that it entails
having a decent contract for a few elements of its work (Snell et.al,2015).
3.7. Sampling
Sampling is the method, which involves the selection of elements from an ordered
sampling frame. There are two types of sampling methods probability and non-probability used
for research purposes. For this study, the researcher selected non-probability sampling technique,
which is further classified into availability or convenience sampling. The reason behind choosing
convenience sampling is that it allows the researcher to save cost and time for conducting the
process while provides a facilitative choice in selecting relevant participants for the study. The
target population for the study consists of the management and the employees working within the
British Red Cross.
4.1. Overview
Chapter four of this study comprises of analysis and findings from questionnaire survey
as well as interviews. The researcher analysed surveys by conducting regression analysis to test
the research hypothesis and the interview responses were analysed using thematic analysis. The
study aimed to understand and evaluate the effective business management policies on the
performance of the British Red Cross.
For the question Management is concerned about the needs of employees in order to
increase retention, 11.43 percent of employee strongly disagreed to the statement, 40 percent of
employees disagreed, 15.71 percent of employees replied neutral, 20 percent of employees
agreed, and the remaining 12.86 percent respondents strongly agreed. Hence, majority of
employees believe that their managers are concerned about their employees and develop various
strategies to retain them.
For the question Has there been an excessive turnover of the supervisory personnel,
7.14 percent of employee strongly disagree, 27.14 percent disagreed to the statement, 25.71
percent of employee replied neutral, 25.71 percent of employees agreed, and the remaining 14.29
percent respondents strongly agreed.
Table 4: Frequency Responses for Question 4
For the question The job descriptions of the employees are clearly established and
communicated to the employees, 5.71 percent of employees strongly disagreed to the statement,
28.57 percent of employees disagreed, 27.14 percent of employees replied neutral, 24.29 percent
of employees agreed, and the remaining 14.29 percent respondents strongly agreed.Hence,
majority of employees believe that in British Red Cross the employees have well-defined job
descriptions that are clearly communicated.
Regarding the question Does it appear that management, accounting, and information
technology personnel are sufficiently competent to perform their assigned responsibilities, 2.8
percent of employees strongly disagreed to the statement, 40 percent of employees disagreed,
21.43 percent of employees replied neutral, 25.71 percent of employees agreed, and the
remaining 10 percent respondents strongly agreed.Hence, majority of employees believe thatin
British Red Cross the employees in the management, accounting, and information technology
departments are well qualified and highly competent and help in achieving better performance.
For the question Does the organisation link training and development with the business
strategy of the company, 7.14 percent of employees strongly disagreed to the statement, 17.14
percent of employees disagreed, 21.43 percent of employees replied neutral, 40 percent of
employees agreed, and the remaining 14.29 percent respondents strongly agreed.Hence, majority
of employees believe that the British Red Cross has incorporated training and development of
employees as part of their organisational strategy in order to ensure operational efficiency.
Table 10: Frequency Responses for Question 10
For the question HRM policies are developed in line with the business management
policies are developed, 11.4 percent of employees strongly disagreed to the statement, 11.4
percent of employees disagreed, 18.57 percent of employees replied neutral, 41.53 percent of
employees agreed, and the remaining 17.54 percent respondents strongly agreed.Hence, majority
of employees believe that the British Red Cross human resource policies are in synergy with
business strategies of the company.
For the question Participation, compensation, incentives, training and development are
kept in consideration while developing the business management policy, 11.4 percent of
employees strongly disagreed to the statement, 20 percent of employees disagreed, 10 percent of
employees replied neutral, 47.14 percent of employees agreed, and the remaining 11.43 percent
respondents strongly agreed.
4.1.2. Regression Analysis
For testing the hypothesis of the study, the researcher applied regression analysis using
SPSS software. The aim was to understand the impact of business policies on performance of
British Red Cross. The regression analysis was used based on the following equation of linear
regression:
y = a + bx
The above table explains that relationship between training & development and employee
empowerment strategies. Since the p value is 0.000, which is greater than 0.05 (p>0.05), it can be
concluded that the relationship between training & development and employee empowerment
strategies is highly significant. Thus, the regression equation is:
y = a + bx
Therefore,
Employee Performance = 0.254+ 0.681 (x)
4.2.2. Effective Business Management Policies & British Red Cross Performance
Researchers explain that effective business management policies are directly related to
the work abilities and productivity of the employees. In the case of British Red Cross, one of the
participants responded that effectiveness of business management policies are based on the
employees training, which should be dependent on the current need of employees. These
activities must be interlinked with the job of the employee and organisations expectations and
goals. Another participant responded that HRM policies are also an important aspect in the
motivation of employees, which impacts the performance. Therefore, HRM policies should be
designed with active participation and contribution of the employees. British Red Cross is more
interested in achieving their expectations instead of analysing the employees need.
British Red Cross needs to train the employee as per their skills and area of knowledge so
that different needs of employees are met. Conventional modes of training are only related to the
imposition of a single package of activities over all the employees of an organisation.
5.1. Conclusion
The main focus of the research is to analyse and evaluate the impact of effective business
management policies on the performance of the British Red Cross. According to Chenhall et.al
(2012), effective business policies act as boundary between the relationships of managerial layer
with lower level employees. It is regarded as the pre-determined guideline that aims on
successfully achieving the business aims and objectives. It has been researched that effective
business policies have become an integral part for many organisations including British Red
Cross. Organisation are findings new ways to design, develop and implement effective business
policies for the purpose of integrating effective integration between various departments of the
company such as human resources, finance and operations. As per the survey conducted with the
employees of British Red Cross, it can be concluded that the company has introduced new
employment empowerment strategies, whichnot only aims on increasing employee satisfaction
but also improves employee retention. However, it was also reported that the management of
British Red Cross has introduced effective policies but its implementation has not been effective.
Majority of the employees are of the opinion that the management does not care about their
needs and development. As per the interview findings and survey analysis, it can be concluded
that majority of the employees are in the favour of having internal audit surveys in each
departments for the purpose of ensuring proper compliance and quality. According to Bryson
(2011), organisations that are more prone towards compliance framework are more likely to
minimise and reduce all types of systematic risks; thus, having an opportunity to perform better
in different situations.
5.2. Recommendations
Employee Training and Development: One of the most important recommendations for
the company is to develop effective training and development sessions for its employees.
British Red Cross should design training sessions that would not only ensure quality
work performance but would also motivate the employees to develop new skills and
techniques. According to Bryson (2011), in todays modern and competitive market,
employees are not only looking for high paid salary but are also aiming to improve their
skills through effective training and development opportunities.
HRM Policies: Human resource management is one of the most vital departments of the
organisation. Due to this reason, HRM needs to be managed through an effective manner
in order to ensure high organisational growth. British Red Cross Company should design
effective HRM policies that would not only benefit the organisation but also the current
employees including new recruits. An effective HRM policy does not only motivate
employees but also helps in retaining them.
The future research should be covering the different business policies except for training,
development, HRM and Standardisation. Some new factors that have a direct impact on
business policies should be analysed on an in-depth level.
The current research has focused on a charity organisation to conduct the research. Future
researches can analyse the same point of view by focusing on different profit-based
companies that aims on generating higherrevenue for the company and shareholders. By
analysing the different nature of the firms, future researches can fill the gap that has been
left unaddressed in the current research or the elements that were beyond the scope of this
research.
study of Lloyds Bank
Introduction
In past few years internet banking has gained a wider level of acceptance as compared to
other forms of banking (George, & Kumar, 2014, p. 75). In United Kingdom all the banks are
now offering its customer internet banking facility in order to provide them convenience through
online banking with the aim of achieving high level of customer satisfaction and loyalty.
Ramboca and Arjoon, (2012) conducted a study in which they founded that emergence of
To investigate the concept and significance of internet banking and its role in satisfying
customers and improving loyalty.
Research Questions
The research questions that will be addressed in this study are:
What is the impact of internet banking on the level of customer satisfaction of Lloyds
Bank UK?
What role has internet banking played in increasing customer loyalty and satisfaction
among the customer of Lloyds Bank?
What are the strategies that can be induced in in internet banking for improving customer
loyalty and satisfaction?
Methodology
For this study the researcher will utilize quantitative research methodology. It is a
systematic empirical investigation method, which is conducted through the utilization statistical
or computational techniques. Quantitative research aims to develop and employ various theories,
and mathematical models along with hypothesis pertaining to phenomena (Creswell, 2013, p.
125). The purpose of this deductive study is to create an enhanced understanding of the impact of
internet banking on customer loyalty and satisfaction. The researcher will conduct an online
Teacher asked:
1) Check spelling errors
2) What is the time scale for doing survey?
3) How to contact the customers of different banks
4) How the survey questionnaire design?
5) Submit Literature Review and Survey Questionaire by beginning of
December
_How to measure customer satisfaction? (research the general theory, coule be in
different industry than banking industry)
_How to measure customer loyalty? (research the general theory, coule be in
different industry than banking industry)
Then evaluate the empirical research applying to banking industry (put in
Literature review)
1. Contextual Background
Technological evolution has significantly affected the banking sectors across the globe.
Increasing competition in the banking sector has forced the banks to look for new markets to
enter, which is why financial institutions are increasingly offering e-banking (electronic banking)
products and services (Al-Smadi, 2012, p.294). In the banking sector, development of
Information Technology has resulted in more flexible payment options and more accessible and
3. Research Questions
What are the enablers and inhibitors of consumer acceptance towards e-banking
technology?
How do consumers perceived usefulness, ease of use and security and privacy affect
their use of e-banking technology?
4. Methodology
This study will take the form of an explanatory, deductive and quantitative research based
on the post-positivist paradigm. Primary data for this study will be collected through online
surveys, using close-ended questionnaires as the research instrument. Sample size will be n=200
consumers of various banks in the UK, selected through non-probability sampling method and
purposive sampling technique. Sample will include consumers of UK banks who are over 18
years of age, are residents of the UK and have access to a computer and Internet. Data will be
analysed using SPSS (Statistical Package for Social Scientists).
5. Theoretical Model
Question 1:
The importance of higher education is very high for any student. The reason is that higher
education not only provides an opportunity to the student in getting knowledge but also to be in a
position to acquire valuable learning. In this way, the student is then able to progress in their
respective field of education and achieve success once their professional career starts. The
enrolment in higher education has witnessed a strong growth, for instance in Asia, over the last
20 years period (UNESCO, 2014). Though, the fundamental question in this regard is whether
Question 2:
This particular question requires an analysis by the student regarding his decision related
to acquiring a 4 years-bachelorette degree. This analysis is crucial for all those studentswho need
to consider whether or not they must go for bachelorette degree. It will also help in determining
the opportunity cost for the student in this regard.In the first case, it is necessary to assess the
Mean Earnings by Highest Degree Earned. The table in this regard is mentioned below:
Years
2005
It can be seen from this table that the mean earnings has gone through several variations
over the five years period, from 2005 to 2009.On the other hand, it is important to determine
theAverage Out-of-Pocket Net Price of Attendance associated with the total cost of bachelorette
degree. The table is mentioned below in this regard:
Years
Net Price of Attendance ($)
2001
8,852
2002
8,852
2003
6,500
2004
6,500
2005
6,500
Source: United States Census Bureau(2015)
After the illustration of these tables, it is now important to determine the average
financial rate of return associated a 4-year bachelorette degree. First of all the return values for
both Mean Earnings and Net Price of Attendance over the five years period, from 2005 to 2009,
is calculated below:
Year
2005
2006
2007
2008
2009
Mean Earnings
Net Price of
Return
Attendance
67,980
8,852
13.02%
69,818
8,852
12.68%
70,898
6,500
9.17%
72,868
6,500
8.92%
69,479
6,500
10.48%
Source: United States Census Bureau(2015)
Therefore, the average financial rate of returns associated with a 4 year bachelorette
degree is mentioned with the help of a table below:
Question 3:
The table below presents the average cost of obtaining a 4-year bachelorette degree:
Years
Bachelors Degree
1999-2002
8,852
2003-2006
6,500
2007-2010
8.061
Total
7,804
Source: United States Census Bureau(2015)
The average cost of 4-years bachelorette degree since last 11 years has been $7,804.
Moreover, the net-present value of the four-year bachelorette degree is calculated in the
following table. In order to simplify the calculation, the four year period on which the net present
value is calculated is 2005-2009.
Values
Cash
2005
67,980
2006
69,818
2007
48,256
2008
72,868
2009
69,479
=67,980/1.05^1
=69,818/1.05^2
=48,256/1.05^
=72,868/1.05^
=69,4/1.05^
64743
63327
3
61244
4
59949
5
54439
Rates
Discoun
ted Cash
Flows
(DCF)
Question 4:
The concept of Giffen goods is very important from the economics point of view. Giffen
good is considered as a product whose higher price actually causes its demand increase. This is a
very unusual concept in the field of economics. Alfred Marshall attributed the name Giffen good
after Scottish economist Sir Robert Giffenduring the development of the Principles of
Potato and Steak Consumption: Normally, people would consume 2 steaks of price 20
dollar and 20 potatoes of price 10 dollars in their budget. However, if the price of potato
increases by 1 dollar each, the consumer would still purchase 2 steaks but could reduce
the potato consumption by 10 units. However, reduction in potato consumption may
cause insufficient food for the consumer. Hence, the consumer may choose to decrease
the purchase ofsteaks by 1 unit and increase the purchase of potatoes to 20units once
again.Now if the prices of potato are increase up to 1.5 dollar, the consumer will further
reduce the consumption of steak to zero and consume more units of the potato. Hence,
potato is a great example of Giffen good. This example can be illustrated with the
following graph.
a negative income elasticity of demand.It can be said that the concept of Law of Demand will
not be invalidated with the help of income and substitution effects because the basic principle
Question 5:
The risk return trade-off is known as a trade-off in which the investor experiences
between risk and return during their investment decisions. The high amount of risk has strong
association with greater probability level of higher return and lower risk has a strong association
with a greater probability level of smaller return. This whole concept can be best explained with
the help of a scenario when an investor is experiencing a risk return trade off while considering
the decision to invest. Under such a scenario, if the investor is going to deposit all money in a
saving bank account, he is going to earn a very low amount of return, i.e. interest rate being paid
by the bank, but his entire money will be under high insurance protection. On the other hand, if
the investor is going to make an investment in equities, then the risk of losing a big portion of
this capital will be there, but there will also be an opportunity of receiving a much higher return
in comparison with saving the deposit in a bank (Joe, 2014). The concept of risk return trade-off
can be explained with the help of a following diagram as well:
Three reasons because of which risk is important in understanding the consumer and
producer decision making are:
i.
In the first case, the identification of the risks associated with consumer decision making
will help to eliminate any kind of issue or threats that might hinder the consumer
purchase decision.
ii.
In the second case, when the producer will conduct the risk identification assessment, it
will help them to manufacture their products accordingly.
iii.
In the third case, the organisation will be able to manage their tasks in accordance with
the overall criteria of the risk defined. Whether it will be a project management risk,
financial risk or organisational risks, the organisation is going to be in a good position to
manage them in the best possible way (Ready Ratios, 2014).
The concept of Risk Premium is even very important for the organisations to understand.
It is also known as market risk premium, which is basically referred as a variance between the
two concepts known as predictable return on a market portfolio and risk-free rate. Market
Premium provides an opportunity to the investor in assessing the investments, which are given a
lot of value. The formula, which is utilised in calculating the Market Risk Premium, is:
This is the reason why it is necessary for the investors to have a strong understanding of
the concepts of Market Risk Premium. When the demand and supply are in equilibrium, there is
no need at all in paying the premium. Though, if the demand is going to increase, the supply can
also meet the demand and price of the asset. The difference in the price that occurs is then
referred as Market Risk Premium (Ready Ratios, 2014).
1.1 Introduction
The tourism industry in outgrown extensively serving many small and sub industries
including hotels, logistics, travelling and therefore create many new business opportunities.
According to Zhong et.al (2011, p. 48), the growth rate of tourism in China has increased after
significant reforms were introduced by the government. After the emergence of rich middle class
incomes and less restrictions on movement by the Government of China, the travel and tourism
industry has witnessed an unprecedented period of growth. Moreover, China is one those
countries that has a large outbound and inbound tourist market. According to Salazar (2015, p.
835), China is regarded as the third most visited region of the world. The total number of foreign
tourists that came to China in 2010 was around 56 million. This resulted in the foreign exchange
income to rise to $45.9 billion which was also regarded as the fourth largest foreign exchange
income to a specific country. On the other hand, the total number of local tourist were found out
to be 1.6 billion and resulted in a total income of $7.8 billion.
As per the survey conducted by WTO (World Trade Organization), by 2020, China would
become the largest tourist destination in the world. With regards to net outbound travel spending,
the country is assumed to be fastest growing economy of the world and has been able to maintain
the second position in world ranking. It has also been researched that the growing economy of
China has resulted in the increase in overall business travel. With regard to China, the total
percentage of sales based on business travel is more (38%) as compared to UK (28%) and US
(21%). Moreover, as per the report of World Travel and Tourism council (2013), the tourism
revenue of China in 2009 was $185 billion (Lijuan, 2013, p.16).
To understand how Chinese culture and history is impacting the tourism in China.
To analyse the role played by the government and locals in promotion of cultural tourism
and the overall tourism industry
Tourism is one of the most important aspects that influence the economy both directly
and indirectly in most countries. Travel and tourism has become a strategic industry in Chinas
development towards the socialist market economy. China is still penetrating new and better
channels through which the tourism industry can strive in local and international markets
successfully (Tourism Market in China, 2014, p. 5). China is facing the new opportunities and
challenges for the growth in the tourism market as compared to the opportunities and challenges
they faced decades before.
China is one of those regions of the world, which is rich in culture and historical heritage.
People around the world take interest in the historical places, like the Forbidden City, Mount Tai
and The great Wall, to visit. The locals are interested in cultural and historical heritage of the
China as well. This rising attention in Chinas cultural diversity is encouraging an emergent
fragment of tourism industry (Walle, 2011, p. 59).
Increase in demand of Chinese vehicles and earnings of Chinese locals raise opportunities
for rich logistics and transportation sector in the hotel industry as an advantage for hotel
chains.
Local tourism in China follows many new trends including adventure tourism that
provide opportunities to those living far away from urban region. adventure venues I
China are usually located in the suburbs or rural areas and the tourism, therefore provides
many small businesses and professions like travel guides, accommodation in form of
small motels and hotel, lodging services to the tourists. The average percentage of profits
in budget hotels in China is around 30% to 40% today.
Recreational resorts generally associated with the activities like scuba diving, growing in
southern China in terms of popularity. Hainans five-star hotels, Chinas equivalent to
Hawaii, provide mostly to rich tourists of China.
Technology has opened doors for many online businesses as it promotes online booking
and travel plan for new destinations to be explored. Moreover, technology has also
improved many areas of tourism like construction, interior of the restaurants and hotels,
interaction and modes of interaction with the user and safety & security for the tourist.
All these areas open opportunities for the locals to invest in the tourism sector.
By the above discussion, it is revealed by the study that the rising opportunities for locals
in the tourism market in China. As the development in tourism and hospitality industry is
progressing, the opportunities lies within multiple sectors and new sectors emerge for the
Positive contributions to community development can improvise approval from guest and
other individuals who are worried regarding local community welfare.
CHAPTER 3: METHODOLOGY
3.1 Introduction
This chapter presents methodological considerations of this study. The chapter begins
with philosophical assumptions undertaken in this study followed by research approach and
research strategy employed. This is followed by inclusion and exclusion criteria used to gather
literature from various electronic databases. This chapter then continues to explain data analysis
technique and sampling for secondary data collection. Finally, the chapter presents ethical
considerations adopted by the researcher of this study and the chapter ends with discussion of
reliability and validity of this study.
Databases
Keywords
EBSCO
Culture of China
ScienceDirect
History of China
Emerald
ProQuest
Research articles published from year 2000 to current year 2015 are included and studies
published prior to 2000 were rejected
Studies focusing on impact of history and culture of china on tourism industry of china in
the perspective of benefits to the locals are included in the study
Studies that are available free of cost are included in this review
After applying these criteria the researcher was able to filter down huge search results
into viable number of studies while ensuring specificity and sensitivity in the results and findings
of this review.
innovation and design. Product design has been ignored as a key component of
marketing strategies, but it has now become a critical success factor for many firms
who stand out from others, even in times of crisis, owing to their distinction in
design and differentiation in marketing, firms like Apple for instance. Design is the
form characteristics of a product that provides any kind of benefit to its users.
(Bloch, 2011, p. 378). Organizations now respond to these changing trends by
1.2
Problem Statement
The object of this study is to understand the evolution of design in the Toyota
Corolla with respect to the changing needs of its market. For this purpose, the
investigation seeks to highlight what changes in design and innovation are made
over the time, how these changes were received by the customers, and how it
enabled the product to compete with its competitors.
To assess the value and benefits derived by the customers from Toyota
Corolla
Corolla (2015-16) addresses the various needs of the consumers and provides new
design solutions, innovation and efficiency. Apart from the mainstream features like
LED lights, power mirrors, automatic transmission, 6-way adjustable seat, the new
Corolla provides full multimedia and audio compatibility through CD, USB,
Bluetooth, wireless, and other technologies, audio, Bluetooth, and hands free
controls on steering, 12V power outlet, cup holders, back camera, climate control
features, centre console for storage, rear spoiler, remote keyless entry, integrated
camera, button start, ECO drive mode, advanced safety controls, and a host of
other features (Toyota Corolla, 2015). The product presents a unique and elegant
design with plenty of stylistic features and internal controls, coupled with advanced
technology, easy accessibility and navigation. The new 11 th generation Corolla
particularly targets Millennials and middle-aged groups of people with a seamless
2.2
Customer Perception
The success of Corolla can be attributed to Toyotas approach of customer-
oriented thinking about its products. A successful family car must satisfy the
customers in comfort, feel, and performance, as expressed by one of the chief
engineers involved in the development of Corolla (Be Forward, 2015). The Kaizen
philosophy of continuous improvement informs the design and innovation at Toyota,
which helps them stay current and conscious of the prevailing trends, expectations,
and demands of consumers.
Moreover, consumers top-rated the brand in its fuel economy, perceived
quality, and value in comparison to brands like Ford, Tesla, Mercedes, Sabaru,
Honda, and others (Yahoo Autos, 2014). The report expressed that consumers are
driven by perception, which is influenced by marketing, experience, media, and
word of mouth. Around 70% of consumers rate design and style as the decisive
2.3
with attractive prices compared with the competitors, which maximizes the value
for the customer and puts the brand in a preferred zone.
With competency in quality and reliability, Corolla has been able to attract
higher perceived value which provides the firm leverage on prices against the rivals
because its consumers value it more than others. When Toyota and General Motors
produced an identical car in a venture, the one with the Corolla nameplate sold for
$1000 higher than the one with GM nameplate because of the higher perceived
value of Toyota. Many customers even claimed superior quality in Corolla even
though it was identical with GM (Keegan and Bhargava, 2011, p. 174).
While Toyota has other luxury brands that focus on quality in exchange of
premium prices, such as Lexus, Corolla enjoys a unique position with its excellent
mix of reliability, design and innovation, and features with a comparatively lower
price with respect to both competitors and its other premium brands. Once again,
perceived value and quality of the company puts Corolla in a favourable position
(Hill and Jones, 2011, p. 88). It perfectly addresses the consumer needs for a
comfortable, reliable, technologically advanced, safe, and fuel efficient family car in
an affordable and reasonable price. The prominent benefits which the evolution of
Corolla now offers to the customers includes latest car technologies, especially, the
transition in design from simpler to stylistic shape and form The new 2016 Corolla
presents a compact, elegant, and aerodynamic design, which is at once stylish and
simple. With a well-designed curved architecture the exterior of the car projects an
outlook of a luxury sedan, which is totally complimented by its stylish and spacious
interior with a great deal of flexibility. The car retains its aerodynamic style and
smooth lines of the exterior with a fluid and simple dashboard, which is crafted to
host cutting-edge technology, including, among other features, the GPS, wireless
connectivity, multimedia and applications interface, music and call functions. This
exterior also improves efficiency and performance in terms of fuel consumption and
mileage. The design also incorporates 8 airbags to improve and ensure safety.
Toyota is also engaged in reducing its carbon footprint and utilizing the recycled
material in its production. These innovative features of the design improved the
environmental efficiency of Corolla.
3.2
needs of different customers, models like sports, Eco plus, base and premium LE. It
also comes with certain internal customization features. Its internal space allows
many adjustments to make room for more cargo and to accommodate more people.
The rear seats of 2016 Corolla can be completely folded down to make room for a
lifestyle. Likewise, theres a storage compartment for the front seats, which can be
adjusted in 4-6 different ways. The automated climate control system maintains the
internal environment and variable transmission aids the driver in stop and go traffic.
The design of the car enables a good degree of adjustments and flexibility.
The shape of its interior also reflects a pleasant view, with efficient ergonomics and
design optimization facilitating accessibility and navigation of controls. Features like
music and multimedia integration through USB, CD, FM, and Bluetooth are useful
features which are required by many customers. Moreover, access to maps and
3.3
Evolution of Design
The transformation in Corollas design reflects the changing consumer
perception of style, which is moulded by social and cultural trends and a gradual
need for transformation. Observing the local companies and culture, Toyota
engaged in a number of innovations in its design, body style, and integrated
technologically advanced systems and features in its cars to make its products
contemporary or, better, future (always staying ahead of the times). Such an
approach was an apt identification and fulfilment of a consumer need (Toyota Blog,
2013). This evolutionary trend continued to respond to the market trends and
consumer needs to for Corolla to stay ahead of its rivals.
the Corolla is strongly associated with reliability, quality, and perceived value. The
case of Corolla and GM illustrated that earlier and it is also supported by consumer
choice survey, and other studies (Keegan and Bhargava, 2011, p. 174; Hill and
Jones, 2011, p. 88; Brindusescu, 2014). Corolla is distinguished for its design and
4.2
years and stands in strong rivalry with its competitors, including even some
premium luxury brands with its exotic outlook. In comparison with Mazda3 GS
sedan, Corolla provides greater interior space and is more fuel efficient. Moreover,
the Mazda does not offer the automatic climate control and the automatic
transmission control (CVTi-S technology) (McAleer, 2013). The comparative models
of Ford, Chevrolet, and Honda provide marginally greater horsepower, but it does
not make a practical difference in terms of performance. Furthermore, among these
rivals, CVT is only built-in in the Corolla, which provides better efficiency and driving
control (Ford Fleet, 2015). With respect to price, the comparison between Corolla
and Honda Civic shows that the former is over a $1000 cheaper. The Corolla is more
spacious, comfortable, and provides value for money while the Honda is a little
smoother in drive and less noisy (The Car Connection, 2015). Compared to Hyundai
Elantra, the new Corolla is quieter, spacious, and fuel efficient while the Elantra may
be more exotic and stylish (Halvorson, 2015). Hence, consumers get the value for
4.3
Competitive Advantage
The key advantages the Corolla brand has secured for Toyota over its rivals is
the strong brand appeal and perception in terms of quality and affordability. It has
led to an increase in the perceived value of the brand and has created a positive
image of the brand as well as the company. This impact is deep because the Corolla
is probably the most popular and one of the best selling cars of any automotive
companies in its own category. Hence, the Corolla represents Toyota as such and
adds to the overall value of the company. Corolla represents a striking evolution of
innovation and design, which are the key forces that have kept Toyota ahead of its
competition and appealing to diverse global markets. The new Corolla has likewise
maintained the companys reputation for design and innovation, quality and value.
With the use of recyclable material and efficient design and processes, the new
Corolla is able to live up to the expectations without compromising on quality and
prices. Hence, Toyota has acquired and huge customer base with this strategy and
has earned customer loyalty by understanding and meeting their requirements.
Toyota now enjoys market leadership in many regions and has a sustainable brand
name (Nkomo, 2012). The brand value and success of the Corolla has in turn
increased the perceived value of other brands of Toyota as well.