Friday, October 18, 2019
Determination of Exchange Rate Coursework Example | Topics and Well Written Essays - 4000 words
Determination of Exchange Rate - Coursework Example The initial period was 1870 to 1914 where most countries adopted the gold standard where gold was used as domestic money. The above gold standard was a uniform exchange rate regime, though some countries constantly used silver while other countries gold inconvertible currencies (Ehrmann and Fratscher, 2004, p. 105). The start of the First World War interrupted this exchange rate era thereby bringing in the second phase that was 1914-1946. Under this second period, there were many changes as many countries saw great variations of currencies used among countries and the over time. Exchange controls were initiated with most countries utilizing the floating exchange rates (Escobar, 2012). It was noted that in the late 1920s, the efforts to restore the gold standards as were before the war began aborted (Deaton and Duprietz, 2011, p. 152). The exchange rate policy was dominated by the Breton Woods agreement that was signed in 1944 between 1946 and 1973. Through this pact, countries agreed to commit themselves to convertible currencies that could be converted to the current account and the fixed exchange rate (Chinn and Hiro, 2005, p. 301). The pact enhanced eschew of exchange controls and fixing the exchange rates due to the negative lessons that were experienced after the world war (Bagella, et al. 2006, p. 1152). Despite the increased application and use of the Breton Woods pact, Kenen (2000, p. 111) posits that the arrangement was strained since the 1960s and in 1973, fixation of exchange rates was officially abandoned by most countries in Europe and Japan thereby ushering in the next period of exchange rates that has been in application since 1973 to date where countries use floating exchange rates (Chinn & Hiro, 2005, p. 303). 2.2 Types of Exchange Rates 2.2.1 The Nominal Exchange Rate Regime The nominal exchange rate is the exchange rate of a given currency whose value is not averagely weighted in relation to the major currencies across the globe (Cooper, n.d. : 21). The weights of the currency are determined by the domestic country that places its currency in a given pool of global currencies that are measured by the balance of trade between these countries. The nominal effective exchange rate (NEER) is the relative value of a domestic currency as compared to major global currencies such as the U.S. Dollars, the UK Pound and the Japanese Yen among others. A high NEER implies that the domestic currency has a more value than the foreign currency while a lower NEER implies that the domestic currency has a less value as compared to the foreign currency. As noted by Eichengreen and Leblang (2003, p. 804), the nominal exchange rate refers to the exchange rate of a given currency in relation to the given foreign currency. 2.3 Real Exchange Rates Galindo (2006, p. 64) note that the real exchange rate can be distinguished from the nominal exchange rates since real exchange rates refers to the cost of foreign good relative to the cost of domestic products. It provides the required competitiveness in the market and it is necessary in explaining the behavior of trade and national income in a competitive global economy. The real exchange rate is usually volatile and it keeps varying based on various business environment factors (Ickes, 2004, p. 16). The big fluctuations in the real exchange rates could lead to improved welfare to an economy, though this is not
Thursday, October 17, 2019
Terrorist Techniques - Ideology Assignment Example | Topics and Well Written Essays - 750 words
Terrorist Techniques - Ideology - Assignment Example The new and prospective recruits will have to undergo a number of tests during the recruitment process in order to a certain their conviction to join our group. Since the recruitment process normally takes one to two weeks, we will engage ourselves in robust recruitment process before we make plans on any attack. The new recruit must be ready to conduct suicide bombings and massacres, as these are one of the ways through which we spread our ideology (Hoffman, 2006). Since our diehard members will be conducting the recruitment process, they will inform all the recruits of what lies ahead, especially using Tamil nationalism, Socialism, Separatism, Left-wing nationalism as the primary ideologies of recruitment. All the recruits must understand that we are a legitimate and genuine group out to fight for our rights and the rights of the greater Tamil people. With this in mind, the recruits will register in our offices that are distributed all over the Eastern and Northern Provinces of Sri Lanka (Gill, Sahni, & Institute for Conflict Management, 2002). We plan to spread secessionist propaganda to Europe, Canada, USA, Australia, India, and Malaysia in order to receive funding and military equipment. Presently, we have heavy military artillery that we recently acquired from our affiliates in Malaysia. In addition, we are currently actively involved in mass recruitment in the Northern and Eastern Provinces of Sri Lanka where we have absolute control (Narayan, 2010). Since we run our own media, police, judiciary, and other amenities in such areas, we have achieved significant success as far as the spread of our propaganda is concerned. Besides, we have also used fear to intimidate suspicious or stubborn recruits. Since we murder those who refuse to join our group, our recruitment department had had the busiest season. Besides, LTTE is the most deadly and most respected fighter group not only in Asia, but
Andrea and Overfield, The Human Record, Sources of Global History Vol Essay
Andrea and Overfield, The Human Record, Sources of Global History Vol. II (Cengage) hereafter AO - Essay Example In the year 1789, the assembly passed the declaration of the rights of man and the citizen. This declaration was a result of the direct consequences of what was taking place in France during this period. This declaration was important during that time since it help in annulling the right of the nobles to demand tithes, taxes and labor from peasants who were working on their family land. This was a great step in the liberation of man and the fight for human rights. This declaration was partly inspired the revolution that was taking place in America at that time (Andrea and Overfield 254). Unlike the declaration in America that â€Å"all men are equal†, the declaration made in France stated, â€Å"Men are born and remain free and equal in rights. The distinction in society may be founded only upon the general good†. This declaration left room for racial prejudice to take place. It stated that despite man being free there will always be a social difference. During this time, the blacks were mistreated for social purposes and were not fully given their rights in the society. Even though they were facing mistreatment from the general French public, the black French population had the right to resist the oppressions as this was provided by the declaration. The period of revolution and declaration of the right of man was volatile/ most of the churches were closed and priests were being hunted down. Politics at this time had taken a different twist and idea of persecution of the Catholics as well as the Protestants began. Several churches were closed, and others converted to temples for fear of persecution. The church was not safe no more. In respect to human rights and dignity, there was the abolishment of the water wheel and introduction of the guillotine. It is no coincidence that the universal declarations of the rights of humans, the European Convention for the human rights protection and the first treaty of the communities in Europe have their origins
Wednesday, October 16, 2019
Determination of Exchange Rate Coursework Example | Topics and Well Written Essays - 4000 words
Determination of Exchange Rate - Coursework Example The initial period was 1870 to 1914 where most countries adopted the gold standard where gold was used as domestic money. The above gold standard was a uniform exchange rate regime, though some countries constantly used silver while other countries gold inconvertible currencies (Ehrmann and Fratscher, 2004, p. 105). The start of the First World War interrupted this exchange rate era thereby bringing in the second phase that was 1914-1946. Under this second period, there were many changes as many countries saw great variations of currencies used among countries and the over time. Exchange controls were initiated with most countries utilizing the floating exchange rates (Escobar, 2012). It was noted that in the late 1920s, the efforts to restore the gold standards as were before the war began aborted (Deaton and Duprietz, 2011, p. 152). The exchange rate policy was dominated by the Breton Woods agreement that was signed in 1944 between 1946 and 1973. Through this pact, countries agreed to commit themselves to convertible currencies that could be converted to the current account and the fixed exchange rate (Chinn and Hiro, 2005, p. 301). The pact enhanced eschew of exchange controls and fixing the exchange rates due to the negative lessons that were experienced after the world war (Bagella, et al. 2006, p. 1152). Despite the increased application and use of the Breton Woods pact, Kenen (2000, p. 111) posits that the arrangement was strained since the 1960s and in 1973, fixation of exchange rates was officially abandoned by most countries in Europe and Japan thereby ushering in the next period of exchange rates that has been in application since 1973 to date where countries use floating exchange rates (Chinn & Hiro, 2005, p. 303). 2.2 Types of Exchange Rates 2.2.1 The Nominal Exchange Rate Regime The nominal exchange rate is the exchange rate of a given currency whose value is not averagely weighted in relation to the major currencies across the globe (Cooper, n.d. : 21). The weights of the currency are determined by the domestic country that places its currency in a given pool of global currencies that are measured by the balance of trade between these countries. The nominal effective exchange rate (NEER) is the relative value of a domestic currency as compared to major global currencies such as the U.S. Dollars, the UK Pound and the Japanese Yen among others. A high NEER implies that the domestic currency has a more value than the foreign currency while a lower NEER implies that the domestic currency has a less value as compared to the foreign currency. As noted by Eichengreen and Leblang (2003, p. 804), the nominal exchange rate refers to the exchange rate of a given currency in relation to the given foreign currency. 2.3 Real Exchange Rates Galindo (2006, p. 64) note that the real exchange rate can be distinguished from the nominal exchange rates since real exchange rates refers to the cost of foreign good relative to the cost of domestic products. It provides the required competitiveness in the market and it is necessary in explaining the behavior of trade and national income in a competitive global economy. The real exchange rate is usually volatile and it keeps varying based on various business environment factors (Ickes, 2004, p. 16). The big fluctuations in the real exchange rates could lead to improved welfare to an economy, though this is not
Tuesday, October 15, 2019
Andrea and Overfield, The Human Record, Sources of Global History Vol Essay
Andrea and Overfield, The Human Record, Sources of Global History Vol. II (Cengage) hereafter AO - Essay Example In the year 1789, the assembly passed the declaration of the rights of man and the citizen. This declaration was a result of the direct consequences of what was taking place in France during this period. This declaration was important during that time since it help in annulling the right of the nobles to demand tithes, taxes and labor from peasants who were working on their family land. This was a great step in the liberation of man and the fight for human rights. This declaration was partly inspired the revolution that was taking place in America at that time (Andrea and Overfield 254). Unlike the declaration in America that â€Å"all men are equal†, the declaration made in France stated, â€Å"Men are born and remain free and equal in rights. The distinction in society may be founded only upon the general good†. This declaration left room for racial prejudice to take place. It stated that despite man being free there will always be a social difference. During this time, the blacks were mistreated for social purposes and were not fully given their rights in the society. Even though they were facing mistreatment from the general French public, the black French population had the right to resist the oppressions as this was provided by the declaration. The period of revolution and declaration of the right of man was volatile/ most of the churches were closed and priests were being hunted down. Politics at this time had taken a different twist and idea of persecution of the Catholics as well as the Protestants began. Several churches were closed, and others converted to temples for fear of persecution. The church was not safe no more. In respect to human rights and dignity, there was the abolishment of the water wheel and introduction of the guillotine. It is no coincidence that the universal declarations of the rights of humans, the European Convention for the human rights protection and the first treaty of the communities in Europe have their origins
Sustainable energy storage and distribution Essay Example for Free
Sustainable energy storage and distribution Essay Sustainable energy storage and distribution Introduction            Sustainable energy refers to the provision of viable energy development which responds to the present energy demands without compromising the possibility of future generations to meet their energy demands (Robinson Schut, 2014). Some of the technologies which support sustainable energy comprise of the renewable sources of energy like solar energy, hydroelectricity, wind energy, geothermal energy, wave energy, tidal power, bioenergy and various technologies planned to improve the energy efficiency. In the current world, the cost of energy has decreased drastically and continues to decrease due to the continuous use of renewable energy. Most of the modern technologies utilized for sustainable energy are economically competitive (Moseley Garche, 2014). Notably, effective government policies promote the confidence of the investors in sustainable energy while expanding this market. A considerable progress has been made and continues to be pursued in the transition of energy from different fossil fuels into sustainable ecological systems up to a point where different researches support renewable energy. Solutions            As revealed by the National Renewable Energy Laboratory (NREL), hydrogen generated through electrolysis offers the solution to fluctuating renewable energy sources. The hydrogen generated through renewable electrolysis provides the promising solutions in transportation sectors and electric power (Moseley Garche, 2014). As depicted through the study by NREL, renewable electrolysis utilizes electricity generated from renewables to separate water into oxygen and hydrogen. From this process, the hydrogen produced can be used as a medium of energy storage which can store renewable energy until an engine or full cell transforms it to electricity (Robinson Schut, 2014). Additionally, this hydrogen can be combined again with CO2 to generate synthetic gas used in transportation applications and power plants. Moreover, this hydrogen can be generated within the off-peak seasons or during the periods when there is extra renewable energy. Since the h ydrogen is convertible back to electricity at times when there is insufficient renewable power, this assists in the stabilization in utility grid. The excess hydrogen may be used as fuel to run vehicles and other purposes.            Secondly, different nations have embraced various ways of storing energy for future use since the traditional way of using batteries seem to be expensive and not sustainable. Many nations are now using the current energy technology to store energy from renewable resources instead of batteries which can be used for future use. Some of these technologies include pumped hydro storage and flywheels (Moseley Garche, 2014). Flywheels are suitable for low and high power applications since they store energy in motion form through a rotating mass which demand frequent cycling.            In addition, pumped hydro storage of renewable energy is capable for storing energy in water form elevated at a high position. This is achieved through pumping water when the supply of electricity is high and utilizing gravity in the transportation of water down when there is high demand for electricity with low supply. Pumped-storage facilities are very economical because of the differentials in off-peak prices since it offers important services in ancillary grid. The projects initiated using this type of technology has offered energy storage capability and the transmission ancillary grid advantages in Europe and US. Currently, more than 40 projects in pumped-storage are operating in USA providing more than 20GW in the national grid systems (Robinson Schut, 2014). This pumped-storage hydropower provides the solutions in energy balancing, storage capacity, ancillary grid, and stability like the network frequency reserves and control. This is because the plants used in pumped storage can respond to potential changes in electrical load within a few seconds.            Another storage medium which provides the solution to alternating renewable energy sources is the use of compressed air energy storage (CAES). This is similar to the pumped hydro storage through output, storage capacity and application although it utilizes the ambient air instead of water. The use of CAES technology has gained popularity more than pumped hydro because it provides storage in large scale without any geographic restrictions. In the CAES technology, the compressed ambient air is driven into underground caverns or storage tanks. When the need for electricity arises, the air compressed and stored in tanks is expanded to drive motors which eventually generate power (Moseley Garche, 2014). The current advancement in CAES technology has improved its efficiency, the fuel used and storage methods. In addition, CAES possess many advantages compared to other different types of energy storage since the ambient air utilized is free and the technologies and material utilized are abundant and well understood.            Moreover, batteries have been used for long to store energy from many renewable sources. People using the solar energy can use the lead-acid batteries to store energy for future use. Despite the fact that some of these batteries are not durable, the use of rechargeable batteries offers the solutions for power storage in rural areas (Robinson Schut, 2014). The use of lithium-ion batteries have created a recent attention in renewable energy storage since they take longer before recharging and their weight is much less compared to the traditional lead-acid batteries.            Some of the current proposed solutions in the storage of energy include the proposed potential gravity power storage which involves the storage of energy without losses (Moseley Garche, 2014). This project has been in progress since 2013 and experts reveal that if finalized, it will respond to the current problems encountered in sustainable energy solutions. Current policies            The current renewable policies supported by the US government include the Production Tax Credit (PTC) and the Renewable Portfolio Standards (RPS). These two policies were primarily enacted by the US federal government to reduce the demand of the power from fossil fuels like petroleum and coal while decreasing the related carbon emissions. Through these policies, the American nation has reduced the carbon emissions significantly since 2007 up to date. The PTC is an incentive offered by the federal government to offer financial support in the development of renewable energy in America (Robinson Schut, 2014). The companies which produce electricity from geothermal, wind and bioenergy qualify for the federal PTC. These companies are eligible for incentive in the production of renewable energy for ten years since the beginning of their operations.            Together with the state standards in renewable resources, PTC has supported many development projects in wind power. As disclosed by the Department of Energy in USA, these development supported by PTC has resulted in many economic benefits in the production and distribution of electricity. Between 2007 and 2010, the production of wind power in America tripled with an approximate 550 manufacturing companies distributed in 44 states (Robinson Schut, 2014). Consequently, the cost of producing electricity from renewable sources like wind in US has reduced considerably over the last two years.            Moreover, different nations and states have adopted various policies supporting greater investment and other adoption in renewable technologies in renewable energies. Some of these policies include the Renewable Portfolio Standards (RPS) which needs electric utility providers to offer particular percentage. The RPS is a policy which opens the alternatives to increase the production of energy from the renewable sources like biomass, solar, geothermal and wind. In USA, according to the rules of RPS, some companies must generate certain fraction of power from renewable sources of energy which are acknowledged (Moseley Garche, 2014). When these companies produce electricity from the renewable resources, the federal government requires them to supply to other organizations at a certain fee. Despite the fact that the RPS depends majorly on the private sector to produce energy, the federal government offer some financial support in order to incr ease the private investment in renewable use of energy.            Another environmental policy which affects the changes in the storage and transmission of the production of sustainable energy is the State Environmental Policy Act (SEPA). SEPA assists environmental local agencies to identify any environmental impact that may result from the decisions made by government (Hendrickson, 2012). This act was enacted through the Washington Legislature in the year 1971. Since many projects proposed in the production, storage and storage of renewable resources by the private sector must get approval from the relevant authorizes, SEPA intervenes in the adoption of the proposed solutions in energy storage. Notably, SEPA advises the federal government on any environmental issues that may result in any proposed solutions. Moreover, SEPA also advises the local governments on the construction of different projects proposed in the states, particularly the on renewable energies.            Furthermore, the National Environmental Policy Act (NEPA) enacted in 1970 through the US environmental law offers the procedure or implementation of objectives in the federal agencies. According to the current legislations of NEPA, all the states must provide effective sustainable renewable energy storage facilities that do not affect the future generations. Various states need to regulate the production and regulation of renewable sources of energy (Sukumar, 2014). NEPA assists the private developers in individual states on the objectives formulated to engage in better production of renewable power. NEPA also provides instructions on the impact of different solutions in the production of renewable energy. Since most of the projects in renewable resources are supported by private developers, NEPA offers directions on how to go in different projects. Challenges            Some of the challenges associated with the implementation of the current and previous policies related to the production, storage and transmission of renewable energy include the poor implementation process through poor funding. Many proposals have been formulated to venture in advanced technological production and storage of renewable energy but only a few have been implemented (Hendrickson, 2012). This is because private developers in renewable energy seek funding from the government which takes a lot of time before responding. As depicted through the current report by NEMA, many private developers venturing the renewable energy technologies lack the appropriate muscle to put into practice what they have put into plan (Robinson Schut, 2014). Different nations struggle to attain sustainable energy to meet their demands. However, in these nations, the proposals by different private developers in the associated renewable energies are still pending.            Another challenge is the limited awareness and confidence in the use of renewable technologies. As divulged by NEPA, the public require more information on solar technologies. Better programs are needed to educate builders, designers and other potential users of renewable energy in the industrial, commercial and residential sectors (Hendrickson, 2012). Most consumers lack the basic information in the use of renewable energies like solar and wind. Lack of effective programs to protect the manufacturing and installation of renewable energy has hindered effective implementation of RPS. The governments need to educate their citizens on the current available renewable sources of power that they can purchase and use in their homes. In addition, the change in governments from one reign to another affects the transition in the implementation process aimed at increasing the production of renewable power. This is because, each government that comes into power they want to actualize their manifesto in order to lure support in the next elections. Since 1980, the American private sector has been formulating different approaches to solve the demand for electricity (Hendrickson, 2012). However, lack of transition in the leadership of projects in renewable resources has resulted in many pending projects which are useful in the nation. Therefore, poor transition of leadership from one government to the other has resulted in the delay of many projects which are significant in the improvement of renewable energy production and utilization. NEPA claims that the poor funding process in renewable energy projects is as a result of lack of effective transition from one government to the other.            Furthermore, political influences in many nations affect the implementation process in policies related to renewable energy. Since the policies supporting the production, distribution and utilization of renewable energy must be approved and enacted through parliamentary sittings, some political struggle in terms of personal interest affect their enactment (Sukumar, 2014). Despite the fact that some of these policies affecting renewable energy are beneficial to the entire nation, lack of significant support during the enactment process hinder the significant progress in renewable energy projects. For instance, in America, the political swings from republican government to democratic government affect the approval in projects in renewable sources of energy like nuclear. There is a big struggle in passing of policies in the current government due to political struggle.            The wide spread utilization of renewable energy in USA has also been hindered by the state and federal policies and other market imperfections which subsidize the competing sources of energy (Hendrickson, 2012). Some these policies which affect the implementation of renewable energy projects include the price controls through federal governments in the oil and gas prices. Through these subsidizes, the renewable sources are unable to compete effectively in the market and attain a competitive advantage over other sources of energy due to the cost of production and distribution required (Moseley Garche, 2014). Despite the fact some of the environmental policies support sustainable energy production, the subsidies provided by the federal governments in other sources shy off private investors in this sector. Alternative methods            Through technology, the production and storage of hydrogen has been made easy using the Nano-technology. Some fuels such as gasoline used in renewable energy production lead to carbon footprint and pollution. Experts reveal that hydrogen is a clean source of renewable power when the two problems of easy accessibility and safe storage are solved. A team of scientists in USA have invented the nano-composities from magnesium which are air stable used in the hydrogen storage. The Nano-composites particles are formed through magnesium metal and mixed with other polymers associated with Plexiglas (Moseley Garche, 2014). Notably, the Nano-composite technology form of hydrogen storage is able to absorb and release hydrogen in any conventional temperature without the metal oxidation taking place. As claimed by the DOE of America, the Nano-technology invented recently, is one of the major steps in the storage advancement of hydrogen since it is abl e to overcome the challenges in kinetic and thermodynamic (Sukumar, 2014).            Moreover, the use of technology in different renewable resources has resulted in the invention of better methods in storage and distribution of power. Some of these current technologies include the use of leviathan energy in the wind turbine production, reflective dishes in solar energy, use of cells which are spherical and the utilization of clean energy from algae.            In wind power, new technologies have been developed in the production of energy in areas with low wind and other offshore sections. Experts have developed better designs in blades, mooring systems in ocean and efficient turbines (Hendrickson, 2012). Through these technologies, cheaper wind energy has been produced in different states in America. Most of the American experts reveal that these new technologies will allow better utilization in the existing grid through driving the power grid to minimize transmission impact required to distribute wind power in different cities.            Since the struggle for power in different nations hinders the implementation of different projects in renewable energy, separation of powers would solve the procedures followed in the implementation process (Hendrickson, 2012). Most of the private invented projects in renewable energies are affected by competing political interests in power and therefore, separating the powers involved in the national renewable policies will eventually solve the implementation process.            Furthermore, in order to attract more investment and use of renewable energy, the Energy Commission in America have formulated the solar partnership in new homes which provides incentives to attract people to install solar panels in their new homes. This program encourages new house owners in America to use solar panels due to their efficiency in energy at all times. According to the energy commission in America, the solar partnership in new homes aim at installing more than 400MW of power through solar energy by the end of 2016 (Sukumar, 2014). Through this partnership, people who are building new homes are able to get solar panels at subsided prices which are affordable. Since the solar panels have been built using the current technology, their durability and ability to trap energy from the sun attract more people to buy them.            In other nations like German, the formulation of programs with market incentives like the MAP, aims to lure more people to use renewable sources of power. Through the MAP program, people building new houses are encouraged to obtain a specific share in the amount of energy they consume from renewable energy (Moseley Garche, 2014). Alternatively, those people with old buildings are been provided with financial assistance to renovate their buildings in order to use renewable energy.            Moreover, people with small homes, can apply for large and small solar panels, effective heat pumps and furnaces which are biomass-fired with feed systems which are automatic through the MAP project (Sukumar, 2014). The change in lifestyle from rental houses to personal houses which utilize the modern technologies in the production of renewable energy has also solved the fluctuating power problems in different nations. Many people now prefer to build or buy modern houses through mortgages which have effectively increased the use of renewable energy in homes.            In conclusion, in order to attain sustainable energy in the world, the governments ruling different nations need to understand their roles in supporting of projects in renewable energy. Despite the fact that different private developers have constituted various approaches in tapping and generation of energy, without the financial support required in this project the problem of electricity will continue to increase. Since different government and other non-government policies affect the production and distribution of renewable energy, all the government must evaluate the viability of the projects presented by the private developers in renewable energy. As depicted from this essay, it is evident that through government incentives in the production and purchase of better equipment, there is a recommendable increase in the use of renewable power. References Hendrickson, C. (2012). Sustainable Energy Challenges for Civil Engineering Management. Journal Of Management In Engineering, 28(1), 2-4. doi:10.1061/(ASCE)ME.1943-5479.00000 Moseley, P. T., Garche, J. (2014). Electrochemical Energy Storage for Renewable Sources and Grid Balancing. Burlington: Elsevier Science. Robinson, M., Schut, D. (2014). RAIL AS THE SUSTAINABLE BACKBONE OF THE ENERGY EFFICIENT TRANSPORT CHAIN A WORLD VIEW. OIDA International Journal Of Sustainable Development, 7(4), 19-30. Sukumar, S. (2014). LAW AS A MEDIUM OF CHANGE, TO ACHIEVE SUSTAINABLE DEVELOPMENT USE OF CLEAN ENERGY. OIDA International Journal Of Sustainable Development, 7(3), 45-54. Source document
Monday, October 14, 2019
Well known organization
Well known organization Introduction HSBC is well known Organization in banking sector. It is a largest banking and financial organization in the world. HSBC is an international company which has around 8500 offices in 86 countries and territories. It is an international bank, which is spread all over the world. It has a lot of branch in the London. HSBC has recently full grown through a further achievement. The HSBC banking group has become the biggest bank in the UK. Approximately half of all people in the UK now bank with HSBC banking group. The group has the largest branch network of any UK bank. The achievement also means that the new group has a broader range of expertise with multiple varieties under its banner. It is a more multicultural business, with stronger market attendance in areas such as mortgages, insurance, finance and investment. HSBC is using variety of advance technologies to make an international network, including a rapidly growing e-commerce capability; HSBC provides a comprehensive commercial range of financial services corporate service, personal services, private banking and other activities. They offer many other services including Braille, large print statement and sign language interpretations. HSBC working since 145 years, they are providing Internet banking, disabled customer account, mortgage, house loan etc. It is totally financial company but the company is providing insurance service as well. History of HSBC HSBC was established in 1865, as a small concept and idea; a local bank to serving local needs. It was based in Hongkong?s territory when it was born but at the current period of time HSBC welcomes customers from all over the world. It has centuries of banking experiences in china. Their experience has created its core strengths of resilience, flexibility and capability for improvement. A peek at its history explains why it believes in capital strength, strict cost control and in building long-term relationships with customers. HSBC has weathered change in all forms ? insurgency, economic crises, new technologies ? and has adapted to survive .Growth has come organically and through strategic achievement, and these purchases have brought their own strengths and cultures to the Group. The resulting corporate character of HSBC enables it to meet the challenges of the financial world of today and tomorrow .This brief history introduces the major events, decisions and personalities that h ave made HSBC what it is today. Even though it was at the centre of the sub prime hurricane, the wider group has weathered the economic crisis better than other global banks. According to Bromberg HSBC is one of world?s strongest banks by some measures. When HM treasury required all UK banks to increase their capital in October 2007, the group transferred ?750 million to London within hours, and announced that it had just lent ?4 billion to other UK banks. In March 2009, it announced that it had made US$9.3 billion of profit in 2008 and announced a ?12.5 billion (US$17.7 billion) rights issue to enable it to buy other banks that were struggling to survive. However, uncertainty over the rights issues implications for institutional investors caused volatility in the HongKong stock market on 9 march 2009 share of HSBC price fell 24.14%, with 12 million shares sold in the last few seconds of trading. SWOT Analysis Strengths HSBC, as a successful international financial company, provides advices and suggestion to other companies regarding international business. It has branches all over the world has got client from different environment and cultural but never beaten n this area.. HSBC knows how to follow structural and effective growth. It was mostly an Asian bank until it took over a UK bank in 1992 and now has become the worlds second-largest bank by profit. HSBC has different idea and concept about how to get more return from investments. HSBC provides qualitative services in an easier ways than other banking and financial sectors. If you open your account with HSBC you will receive every thing within few working days e,g; debit card and cheque book etc. HSBC is primarily listed on the London and HongKong stock exchanges, which saves the company much sorrow in to agree with new American Sarbanes-Oxley laws. To talk about current economic recession, it was at the higher position than recession while many banks and financial companies collapsed. Weaknesses While it is definitely a global company, HSBC came late to the game on deciding to perform an included marketing strategy and profit from on its international brand. Because it had set up so many different banks in different countries at different times over a hundred year period, it set them up under different names HongKong Bank of Canada, British Bank of the Middle East, HSBC Banco Roberts. Not even all of these Banks, prior to 1998, carried the HSBC logo. In 1998, they were all branded together, but the previous lack of branding and the name changes may have hurt HSBC in brand recognition. Customers may have thought that HSBC was taking over their local bank and not realized that HSBC had already been serving them for decades. In any case, the re-branding was an overdue move that should have occurred before 1998. The main weaknesses i found by research in this case study that its bad debts is increasing every year, which can be loophole for its better progress and success. As is frequently the case, proof profits can only last so long. Opportunities Other banks are running frightened of this region. However, HSBC has run its regional business locally and been rewarded for its attempt with abundant awards and tribute for the Middle East market. HSBC is a reliable name there, and the company has engaged advantage of Iraqs new democracy by creating an attendance in the country. HSBC is the biggest international bank in the Middle East. In totalling to the growing Chinese middle class, Brazilians and Indians are opening to appear as growing consumers, and therefore growing consumer spenders. Some denizens of these countries previously did not even own a bank account, but companies like HSBC are prepared to move in and take advantage of the growing middle class in these areas. In places like Argentina and Turkey, HSBC experienced pre-tax profits of 50% last year. This is where it is growing the most. By investing in these countries, HSBC can counterbalance problems it may have as spending in the US and UK declines. Threats As interest rates grow and the housing explosion ends, Americans are fore cast to rely less on consumer credit and more on their saving expertise to get by. The plunge in American spending will be bad for the global economy as a whole, and HSBC will positively be pretentious. In 2005, HSBC pre-tax profits rose 5% to $10.64bn (?6bn) for the first six months of the year, largely on grow in consumer finance for growing consumer spending. At that moment they increase the interest rates that are why company faces lot of problem. Last year, British employees held a strike involving 1,500 workers at HSBC branches in London. At its annual meeting, striking workers stand outside, handing out bags of nuts and saying that they are paid ?Peanuts? while HSBC experiences record profits. Strikes such as this, above all in union-conscious Europe, are bad for image reasons and HSBC needs to take action to ensure that its workers are happy just as its customers are. With a trillion dollars in managed assets, taking over HSBC is a crackers dream. HSBC has to remain on the front lines of safety and look after its customers, at the same time supportive them that online banking is safe. In August 2006, HSBC was accused, although it?s claimed airtight security; of having left its online customers open to a safety anomaly for two years without fixing. Researchers at Cambridge University claimed that any HSBC account could be broken into within nine attempts. Last year, HSBC Company?s Chief Executive Officer published our HSBC Company got thousand of email viruses. At that moment HSBC Company spent lot of money to stop these from causing systemized damage. As most banking is done on computers, even one virus could cripple HSBC. PESTEL Analysis Political HSBC is operating across different geopolitical landscape. It has its presence on every continent of the world with countries having varying political ideology. Economical Recently, HSBC had survived without any government aid, -the worst financial crisis since the great depression in 1929. Social HSBC operates in a highly diversified cultural environment due to its global banking presence. It highlights in its advertisement about the ?THE USE OF LOCAL KNOWLEDGE? and ?THE WORLDS LOCAL BANK? as a way to connect to all its Target Market. Technological HSBC had intensified its campaign to encourage its customers to use the online banking facilities. It has also made its branches have cash counting and pay bills kiosk or machines which greatly improve its operational efficiency. Environmental As a major global bank, HSBC is also at the epicentre of the carbon footprint reduction commitment because of it global and large scale operation. Legal The move by G8 spearheaded by the UK and United States Government to put a limit on the Banker?s bonus will cause significant negative effects on its ability to attract and retain highly skilled and talented workforce especially on its investment banking group. Marketing strategy of HSBC Brand: Make HSBC and its hexagon symbol one of the worlds leading brands for customer experience and corporate social responsibility. Personal Financial Services: Drive growth in key markets and through appropriate channels to make HSBC the strongest global player in personal financial services. Consumer Finance: Expand to arrive of this business to existing customers through a wider product range and to get into new markets. Commercial Banking: Make the most of HSBC international customer base through effective relationship management and improved product offerings in all the Groups markets. Corporate, Investment Banking and Markets: To hasten to progress or incidence of growth by enhancing capital markets and advisory capabilities straight focused on client service in defined sectors where HSBC has critical relevance and strength. Private Banking: Serve the Groups highest value personal clients around the world. People: Attract, develop and motivate HSBC people, rewarding success and rejecting poorness. TSR: fulfil HSBC TSR target by achieving strong aggressive performances in earnings per share growth and efficiency. HSBC target at anyhow they want to increase our per share growth. Conclusion: HSBC has 140 years experience of china. It has 8500 offices in 86 Countries and Territories. HSBC, as a major bank, provides a wide range of services to support new businesses from initial idea to running the business. When it was born it has a small idea to serving local needs. Nowadays it welcome to all over the world customers. It has been using a huge technology to connect international market. It has a good strategy to make sufficient money. It provides the faster services than other financial organizations. HSBC know how to succeed in MA organic and effective growth. It is definitely global company; it has a so many competitors. In my view HSBC?s market segmentation and market penetration is good part of the organization. I recommended HSBC what they are doing; keep continuing but customers needs and desires are dynamic. HSBC has to try to fulfil the customer?s needs. BARCLAYS, NATEWEST, HALIFAX are main competitor of HSBC. They are also serving the same kind of service and using same kind of marketing strategies. If HSBC does not attention about these competitors it should bear huge loss in future. HSBC has won the customers faith so I recommended keeping it up. Watch the global market competitors and try to provider better service than other organization. References: P. Kotler, marketing management Analysis, planning, implementation and control, 7th edn, prentice-hall, Englewood cliffs, NJ, 1991, p.129.s F.A. Russ and C.A Kirkpatrick, marketing, Little, Brown C., Boston, MA 1982, p.24. C.R Darwin, on the origin of the species, 1859. M.E porter, Competitive strategy, free press, New York 1980. http://www.hsbc.co.uk F. Buttle, Relationship Marketing: Theory and practice, Paul Chapman, London 1996, p.13. http://www.wikipedia.history.//hsbc.co.uk.
Subscribe to:
Posts (Atom)