Financial Projections and Market Development - Free Essay Example

Sample details Pages: 6 Words: 1681 Downloads: 7 Date added: 2017/06/26 Category Economics Essay Type Research paper Did you like this example? CHAPTER 06 6.0 FINANCIAL PROJECTIONS The chapter is outline the financial summery, forecasted financial objectives of the bank by re-launching market development market penetration activities for MB. Consolidated budget allocations for 04 different SBUs have already been discussed in Chapter 05 this chapter makes financial projections for next 03 years. 6.1 Startup Capital Forecasted startup capital of new SBU plan to be financed through bank reserves there will not be any financial cost Involvement on same. Don’t waste time! Our writers will create an original "Financial Projections and Market Development" essay for you Create order Importance of the following schedule is very less Investment on fixed asset requirements. Table No 10 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Startup Capital Software Development IT Infrastructure 250,000 Office equipment Marketing Division 150,000 New office furniture to identified branches 100,000 Working Capital Requirement to conduct the campaign 1,500,000 Total Start up Capital requirement 2,000,000 Bank Funding through reserves 2,000,000 (Source : Authorà ¢Ã¢â€š ¬Ã¢â€ž ¢s work) 6.2. The Master Budget funding issues Author has been identified 04 main SBUs in this business development proposal budget allocations were made according to the business forecast prepared till 2018 (Refer page Nos. 52 to 54 for the master budget prepared for all SBUs). There had been 18 Million Investment already made on MB Infrastructure Implementation process this master budget cost allocations will be an additional cost factor for the bank If it does not compensate In return. Further, MB is cost saving tool where bank will be benefited Indirect ways by curtailing overall cost in the bank therefore bankà ¢Ã¢â€š ¬Ã¢â€ž ¢s finance department has been agreed to reimburse LKR 10/- per mobile banking transaction subject to maximum 12 MB transaction per annum per registration. Example à ¢Ã¢â€š ¬Ã¢â‚¬Å" 2016 Expected new MB registrations= 30,000 Reimbursement Amount= (30,000*12)10/- 2016 cost savings Income= 3,600,000/- MB Income/ profits will be utilized to manage next 03 years market development activities. 6.3 Financial KPIs of NTB Being in a highly regulated Industry banks are supposed to provide Insight of all financial transactions are taking place within the bank. The objective of further making Investment on MB simply to curtail cost attribution by diverting core banking transactions to a digital platform. Author has been identified key financial Indicators to evaluate financial position. Return On Assets Assets Turn Over return on Capital employed Expense turn over ratio 6.4 Financial Statements 6.4.1 Profit Loss Account Amounts in Rs. 000 Profit Loss Account 2016 2017 2018 Notes Income from MB fees commission 4,500 12,555 13,950 Cost saving from diverting counter transactions to MB 3,600 10,044 11,160 Total Income(Subject to 7% Inflation adjustments) 8,100 22,599 25,110 1 Less (Budget allocations among SBUs) Marketing 2,450 2,621 2,804 HR 850 909 972 IT 1,150 1,230 1,316 Branches 850 909 972 (-)Total operational Expenses (Subject to 7% Inflation adjustments) 5,300 5,669 6,064 2 Profit Before Taxation 2,800 16,930 19,046 Taxation(VAT Income Tax) 1,120 6,772 7,618 Profit After Taxation 1,680 10,158 11,428 (Source : Authorà ¢Ã¢â€š ¬Ã¢â€ž ¢s work) Assumptions Income has been determined based on the following schedule (According to forecasted No. of new registrations in page No. 40 number of new MB activations in each year) Assumption made on minimum 12 transactions per annum from new MB registered customer to figure out the cost saving each MB transaction cost savings is calculated at LKR 10/-.Further, the Registration commission of LKR 150/- 10/- per transaction cost savings will remain as same for next 03 years. (Table No 11 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Annual Business Income calculation) Income 2016 2017 2018 No of new registration 30,000 90,000 100,000 30,000*150 90,000*150 100,000*150 Registration fee 4,500,000 13,500,000 15,000,000 (30,000*12)10 (90,000*12)10 (100,000*12)10 Cost saving 3,600,000 10,800,000 12,000,000 Total Income 8,100,000 24,300,000 27,000,000 Annual average Inflation rate will remain as 7% for next 03 years Inflation effect has been calculated in both Income statement the balance sheet prepared for next 03 years SBUs cost allocation wouldnt be changed for next 3 years except for the Inflation effect Bank will not go for borrowings to run this campaign Annual combined tax percentage remains as 40% for all 3 years. Notes of profit Loss Account Income has been determined based on forecasted MB activations stated in page No 40. Direct activation fee, cost savings of LKR 10/- per transaction Inflation effect on forecasted Income has been taken in to account. Master budget cost allocations have been mentioned with the Inflation effect. 6.4.2 Balance Sheet Assets Notes 2016 2017 2018 Cash cash equivalents 1,680 1,158 1,428 Other financial Assets 9,000 10,000 Total Assets 1,680 10,158 11,428 Liabilities Retained earnings 1,680 10,158 11,428 Total Liability 1,680 10,158 11,428 (Source : Authorà ¢Ã¢â€š ¬Ã¢â€ž ¢s work) 6.4.3 Cash Flow Statement Forecasted Cash Flow 2016 2017 2018 Total cash generation from MB commission 4,500,000 12,555,000 13,950,000 Total Expenditures 5,300,000 5,669,000 6,064,000 Net Cash Flow (800,000) 6,886,000 7,886,000 (Source : Authorà ¢Ã¢â€š ¬Ã¢â€ž ¢s work) Only considered Income factor for the cash flow statement is MB registration commission, therefore first year there will be a cash flow issue which needs to be financed through Internal sources(Bank reserves). However 02 year onward there is a positive outlook In term of the cash flow according to the financial Interpretations. 6.5 Breakeven Calculation (Table No 12- Breakeven Calculation) Amounts in LKR Registration fee of MB 150 Average variable cost Involvement on each registration 88 Net contribution per unit 62 Per unit Margin 41% (62/150)*100 Total Fixed cost (As per startup capital) 2,000,000 Breakeven point 32,258 (2,000,000/62) (Source : Authorà ¢Ã¢â€š ¬Ã¢â€ž ¢s work) According to the above table if a branch gets minimum 01 new MB registrations per day total No. of registration in the bank (1* 90 Branches =90) then It will take 358 days (Approx .01 year) to reach the breakeven stage. (32,258 MB new registration/180) 6.6. Financial Ratio Analysis According to the above financial projections key financial trends can be determined in the business. 02nd year onwards there is steady 14.5% growth can be expected In terms of the cash flow. After the launch of aggressive marketing campaign 2016 to 2017 (1st to 2nd year) drastic growth of 180% to be expected In term of the total revenue simultaneously the profit attribution will have significant Improvement with the sharp Increase of MB registrations Since the variable cost will not see a major change 02nd year onward sustainable growth momentum will continue both in revenue profit margins. 6.7 IMPLEMWNTATION CHANGE MANAGEMENT STRATERGY In conclusion, entire analysis of the research data it is a proven fact that the low usage of MB is due to following external internal considerations. External factors Traditional banking practices in the Industry have created some resistance on technological banking Innovations Lack of knowledge confidence over digital banking technology Customer resistance due to security concerns trustworthiness Internal Factors Less priority given by the bank to promote digital solutions especially MB Knowledge gap within the bank on MB solution Less focus poor marketing activities to develop the market The above scenarios have been critically assessed in this proposal recommendations made to Increase the usage of identified product. This proposal will further elaborate the Implementation change management process to develop the market share of NTB MB. All 90 branches will be divided into 6 zones according to the geographical location (District level) business environment. Zone 01 to 03- Colombo Branches Zone 04- Down south Branches Zone 05- Central province branches Zone 06- North East branches The zone managers, Ideally the required candidates from senior management team will be heading each zone act as the In charge of the entire business operation of their respective zones. Zonal managers will directly monitor the growth of MB usage held responsible for the business growth. The proposed market development campaign to be commenced in Jan 2016 across the bank all SBUs will make a combine effort to Increase the MB market capitalization to the expected l evel. KPIs to be prepared for all SBUs especially branch teams will be identified based on their skills to develop the business; required cross selling target should be given to every staff member irrespective of their job function within the branch. Sales Force Effectiveness Campaign on MB (SFE- MB) Standardizing the sales approach across the bank to bring the sales business promotional culture among all branches. The performance dashboard is being set up to monitor daily, weekly monthly business progress of a particular branch, the dash board has a permanent place for each every staff member to record their Individual sales contribution towards the campaign. (Table No 13 : SFE Dashboard) Staff Member No of lead generated for MB No of MB Registrations No of MB Activations Cross selling opportunities on other products (Source- Authorà ¢Ã¢â€š ¬Ã¢â€ž ¢s work) The above format will be drawn on a white board which can be daily updated in fornt of the branch manager during regular morning hurdle. Branch manager needs effectively check the progress of new registrations activations while coaching the branch staff to develop their cross selling abilities. In SFE process branch operational staff (Teller, credit officers, pawning staff) will also be participating Indirectly for the campaign which they considered as à ¢Ã¢â€š ¬Ã…“Lead Generatorsà ¢Ã¢â€š ¬Ã‚  They are suppose to collect minimum of 03 MB leads per day handover them to branch sales unit à ¢Ã¢â€š ¬Ã…“Lead convertorsà ¢Ã¢â€š ¬Ã‚  (customer relationship staff) In case if they are unable to get customerà ¢Ã¢â€š ¬Ã¢â€ž ¢s consent then there to do the registration or activation during first Interaction with the customer. Rewards points distribution among LG LC (Table No 14: Reward points structure) Lead Generation Business Conversions Total reward points Lead generator 25 Points 25 Points 50 Points Lead convertor N/A 25 Points 25 Points (1 RP= LKR 1/) (Source à ¢Ã¢â€š ¬Ã¢â‚¬Å" Authorà ¢Ã¢â€š ¬Ã¢â€ž ¢s work) Apart from the periodical marketing promotions which has been already discussed in this report standard staff rewards scheme would bring the entire team support within the branch on new business acquisitions. In order to develop the sales culture in our branch network especially among operational staff proper internal communication needs to be developed within the organization. While motivating staff through an Incentive scheme the management staff should clearly explain the long term advantage of promoting MB to the staff as well as ultimate benefits for the employees from this Initiatives. Reduce the unnecessary work load to create good work life balance Cost reductions would bring more profitability to the organization which will be beneficial on employees annual benefit review. Enhanced sales skills will crate better career progression to employees Enhanced goodwill market perception of the bank will create mutual benefits to both employees as well as the organization. (i.e. Better recognition, demand comes from competitor banks) 6.7.1 Timescale of the Implementation (Chart No 03 chart on Implementation) Business Development activities 1 2 3 4 5 6 7 8 9 10 11 12 Resource deployment to all SBUs Setting up IT technical support Educating branch sales staff about the campaign Commence Mass Media public awareness campaign Introducing SFE system the performance dash board Official launch of the SFE system MB promotional campaign Drive the campaign First half performance review Review staff customer feedback on MB Monitor review Year end financial progress review Plan ahead on 2nd phase 7.0 Referencing 8.0 Appendices

Rudeness in Art - 1251 Words

In the year 2011, Rigby High School’s Concert Band was coming to the close of another great concert. They were getting to a very dramatic part of the song Ave Maria, and during a break in the melodies, a sharp baby cry was heard throughout the auditorium, followed by a loud yell from a parent. The rest of the concert was a disaster, with conversation and talking heard in the recording. In fact, Rigby has not once gotten a clean recording without conversation and noises in the concerts. People unfortunately do not understand how to behave during concerts of any type. With some concerts and performances, it is ok to vocalize, but concert band is not one of them. To help explain this, concert band will be compared to jazz band in its†¦show more content†¦With concert band being the more serious of the two, it is generally preformed in concert halls, and other grand auditoriums. In fact, it is very rare to hear one perform anywhere else. These pristine buildings t hat are filled with powerful music are always very strict on rules. These places are civilized structures, not high school gymnasiums, and they need to be treated as such. No checking cell phones, no eating, and definitely no talking during the preformance. Jazz does not perform at these sophisticated stages and performs in common places instead. They play on street corners, basketball courts during half times, and in parks. This is not to say that jazz is unsophisticated and simple, but instead is for a different, more animated audience. The main thing to keep in mind when listening to any type of music is the etiquette required for that type of music. With concert band, listeners are expected to stay quiet and respectful until the end of a song. After the song has finished applauding is appropriate, but not too extreme. Whistling and yelling out the name of individuals is not appropriate. 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Business Development Process for Amsterdam- MyAssignmenthelp

Question: Discuss about theBusiness Development Process for Amsterdam. Answer: Introduction From assessment 4A, there is a lot that I have learnt about new product development. The new product development theory explains and discusses in details the steps that should be followed when introducing new product into the market. The theory evaluates the important issues in consumer behavior which should guide a company in developing a new product. A new product should be developed after a thorough and conclusive research that helps to identify consumer needs so that the new product can fill a gap in the market. Analysis and Comparison of my Research Findings and those of Colleagues The new product theories analysis revealed to me that there are legal systems that affect development of new products by a company. These legal systems are the laws and regulations that determine the health and safety standards especially for the food and drink industry. Before a company like Coca Cola introduces a new product into the market, the product has to be approved by the Food and drugs authority of each country in which the company plans to market and sell its products (Rafinejad, 2007). Companies` can design specific products for specific market and not sell the product in other markets. This is usually guided by consumer tastes and preferences in each specific market and therefore the company needs to market each and every product on its own. Another important thing I learnt when analyzing the first assignment is that innovation is very important in new product development. An organization must have a very unique and well planned innovation framework which will help the employees of the company to be very creative and innovative. An organization that has an innovative culture keeps on developing new products and it encourages its workers to experiment and try new methods, products, and processes. The leadership of an organization is very important in the innovation and creativity of an organization. The leadership motivates the employees to keep on trying new technologies so that the needs of the consumer can be met (Assimakopoulos, 2010). Therefore innovation results to generation of new ideas and on products and production processes that results to increased efficiency in an organization. Another thing leant in the new product development are the four factors that are key to the development of new product. The four main factors that influences new product development include product related factors, market related factors, project related factors, and firm related factors The product related factors in this case involves factors such as product quality, design, and price of the product. The quality of the product being developed has to be of optimum quality in order to attract consumers for the product. The new product design is new development of a new product since it makes the product unique and physically attractive to the consumer. The price that an organization sets for a new product is also very crucial in influencing the demand for a new product in the market since price is the major determinant of demand for Coca Cola products (Rafinejad, 2007). The market related factors are also influential in new product development. Market factors include information on consumer needs and demand, industry growth rate and level of competition in the market. Coca cola usually weighs its market factors when developing new products in order to ensure that the market conditions are favorable for new product development (Manmohan, 2010). The firm related factors that influence new product development process is the internal environment of the firm. This includes the financial capability of the firm to develop the new product, the kind of employees in the company and the infrastructure required to develop the new product. The materials and equipment required in new product development need to be available before the process of developing and introducing new product into the market begins (Srivastava, 2007). The project related factors that affect new product development include factors like the overall cost of the project development, the perio d of time it will take to launch the project and the time it will take to recoup the initial investment. The first step in the new product development process in most theories is the idea generation stage. At this stage, an organization has to recognize that a need exist among consumers and the need has to be fulfilled. An organization has to take up the chance that the chance to fulfill the need of consumers before a rival organization realizes the same need. This is very important since it makes the company the market leader in innovation and therefore giving the organization competitive advantage over rivals (Manmohan, 2010). Coca cola has had a very effective innovative framework that has helped the organization to become dominant in the carbonate soft drinks industry. The close relationship between Coca Cola and its customers has helped the 3company to identify consumer needs and to fill the gaps in the consumer needs before competitors realize the need. This explains why Coca Cola has more than 400 brands under its product portfolio (Karniel Reich, 2011). The stage-gate process of new product development is very effective process of introducing a new product into the market. I was also surprised to learn that the new product development process can be developed further by using the TRIZ method. The traditional creativity and innovation methods are constrained to brainstorming which depends o team members institution and understanding of the problem being solved (Tillman Cassone, 2012). TRIZ problem solving method does not depend on intuition but on the data available and logic and this makes problem solving faster and more effective. Another important thing that I learned from assessment A is that the TRIZ method provides repeatability, predictability, reliability and the structure of the new ideas. The combination of TRIZ and the stage-gate process helps in creating and generation of highly creative product ideas that will steer growth in the company and in the industry at large. An organization with employees who are highly motivated, trained and experienced are more likely to be more creative and develop better products than a workforce that is not motivated and lacks proper training (Noble,Griffin Durmusoglu, 2014). Companies should therefore invest heavily in people since people are the engine of innovation and growth in an organization. The new product development theories have given an insight into the processes that are undertaken to develop a new product, market it until the point of decline where the product becomes obsolete and its demand in the market deteriorates. This assignment has also helped me to understand the significance of the Fuzzy front-end step in the development of the new product ideas(Lamb, CHair McDaniel, 2012).This step takes place before the formal and well defined requirement specifications are put in place. Peter Keon model provides a five step fuzzy which begins with identification of a market opportunity, analysis of the identified market opportunity, generation of ideas and the final step in this model is the development of the ideas to come up with a real physical product that meets the expected requirement (Srivastava, 2007). The fuzzy front end is then followed by the stage of designing the product. At this stage the physical design of the project is determined and various models are compared to determine which model is best. This stage involves also the design of the non physical aspects of a commodity. I also learn that at the design phase, the pre-commercialization of the product is done on order to test the viability of the product to fulfill customer needs and to generate enough sales for the company to recover its investments. I also leant about the project implementation stage of the product development process. At this stage, the physical product is integrated with the software or any other essential component that will result to a fully functioning product that can be used by consumers (Annacchino, 2007). Conclusion The comparison of the assignment with those of other students has helped me to understand various theories that explain the new product development processes. The comparison has also helped me to understand the role that leaders in an organization together with all the other employees play in development and growth in demand of a new product in the market. This assessment has also helped me to understand the perspectives of various researchers and authors on the steps that should be taken by when developing a new product as well as challenges expected when introducing a product in the market. References Annacchino, M. A. (2007). The pursuit of new product development: The business development process. Amsterdam: Butterworth-Heinemann. Assimakopoulos, D. G. (2010). Knowledge Perspectives of New Product Development: A Comparative Approach. (Knowledge Perspectives of New Product Development.) New York, NY: Springer New York. Karniel, A., Reich, Y. (2011). Managing the dynamics of new product development processes: A new product lifecycle management paradigm. London: Springer. Lamb, C. W., Hair, J. F., McDaniel, C. D. (2012). Essentials of marketing. Mason, Ohio: South-Western Cengage Learning. Manmohan, R. (2010). Managing innovations and new product development. Place of publication not identified: Phi Learning. Noble, C., In Griffin, A., In Durmusoglu, S. (2014). Open innovation: New product development essentials from the PDMA. Rafinejad, D. (2007). Innovation, development and commercialization. Boca Raton, Fla: J. Ross. Srivastava, R. K. (2007). Product management and new product development. Schottler, J.-S. (2013). Innovation and new product development. Place of publication not identified: Grin Verlag. Tillman, F. A., Cassone, D. T. (2012). Strategic Planning and New Product Development. Paramus: Financial Times/Prentice Hall.

Prinsiple Base vs Rule Base Accounting Essay Example

Prinsiple Base vs Rule Base Accounting Paper RULE VS PRINCIPLE BASED CONVERGENCE VS ADOPTION IFRS Assignment1, Group Section 1 Characteristic Additional Comment Criteria Disadvantage Advantage †¢ Provide specific dictates for reporting financial information †¢ Unavoidable. (Accountants must follow these rules or face penalties for noncompliance. ) †¢ Effective rules-based standards require active participation of the financial reporting community to evaluate the resulting quality. Real life practice issues should be brought to the attention of the appropriate ruled based standards-setting bodies †¢ Provides basic guidelines for accountants to follow. Principles-based can be effective where precise rules and ongoing guidance have been the norm, also Financial markets need to be more sophisticated †¢ More standardized accounting statements †¢ May produce more consistent and comparable financial reports across entities †¢ Provides specific answer accounts are looking for and is reliable †¢ M ay improve the representational faithfulness of financial statements. †¢ Accountants can use their principles and judgment to come to conclusions. †¢ While accountants may not arrive at the same specific answer, they will be close enough that being in the same ballpark is acceptable. Makes it easy for accountants in different countries to review and interpret one anothers information. †¢ Lack of flexibility. †¢ According to lack of flexibility, as it focuses on â€Å"checking the boxes† more than portraying an underlying economic reality, rules-based accounting has not worked in practice. †¢ Make standards longer and more complex †¢ Too complex and technical for nonaccountants, such as investors, to understand. †¢ the quest for bright-line accounting rules has shifted the goal of professional judgment from consideration of the best accounting treatment to concern for parsing the letter of the rule. A lack of precise guidelines could create i nconsistencies in the application of standards across organizations. †¢ Difficult to compare companies because accounting statement will vary in style. †¢ A principles-based standard often becomes a rules-based standard in an effort to increase comparability and consistency. †¢ Financial statements rely on individual judgment to interpret and implement the standards. †¢ Allows too much leeway for companies †¢ Puts more responsibility on the company. †¢ Unprincipled people can exploit the system and make unethical decisions. Critic argued that principles-based standards would have no exceptions. For example; principles-based standards may require that there be no exceptions to fair value rules for financial instruments, even if used in hedging transactions; all leases over one year might be capitalized; and all stock options might be valued at market. Principle Based Rule Based †¢ Financial managers in a rules-based setting are more likely to use tr ansaction decisions, selling ‘available for sale’ securities. †¢ Financial managers in the principles-based setting more often se their impairment loss (accounting) decision to engage in earnings management compared to in the rules-based setting. â€Å"Rules-Based and Principles-Based Accounting Standards and Earnings Management Research† By Ferdy van Beest*, Radboud University Nijmegen Section 2 Convergence VS. Adoption Convergence †¢ the Accounting Standard Board of the Country applying IFRS would work together with IASB to develop high quality compatible Accounting Standards over time. Adoption †¢ Implementing IFRS in the same manner as issued by the IASB Covergence Convergence †¢ Cannot eliminate all of differences in both of accounting standards Adoption †¢ Increase cost from changing into IFRS †¢ Lack of staff to adopt into IFRS †¢ Not support special accounting problems in some area Convergence †¢ US GAAP IFRS †¢ Japan †¢ China Example Adoption †¢ European Union †¢ Australia †¢ Singapore RESOURCES ?http://www. ehow. co. uk/info_8333888_difference-principles-rulesbasedaccountingstandards. html#ixzz1PKRmdfl4 ? http://www. ehow. com/info_8370701_advantages-disadvantagesprinciplesbasedaccounting. html#ixzz1PNz3gSeA ? http://www. picpa. org/Content/40856. aspx ? http://www. ventureline. om/accounting-glossary/R/rulesbased-accounting-definition/ ?http://www. ventureline. com/accounting-glossary/p/principlesbased-accounting/ ? http://www. ehow. com/info_8529579_rulesvs-principlesbasedaccounting. html#ixzz1PO0T5xPC ? http://www. nysscpa. org/cpajournal/2004/804/essentials/p34. htm ? http://findartic les. com/p/articles/mi_m0ICC/is_3_71/ai_91967442/ ? http://basiccollegeaccounting. com/understand-the-difference-between-principle-basedversus-rule-based-accounting-standards/ ? http://www. facebook. com/l. php? u=http%3A%2F%2Fwww. ru. nl%2Fpublish%2Fpages%2F 516298%2Fnice_09114. pdf=0de7a ? http://www. harteredclub. com/difference-between-ifrs-conversion-and-ifrs-adoption/ ? http://www. transtutors. com/accounting-homework/IAS-IFRS-and-US-GAAP/benefits-ofachieving-convergence-with-ifrs. aspx ? http://blog. ifrs. com/2009/05/ifrs-convergence-or-adoption. html ? http://www. transtutors. com/accounting-homework/IAS-IFRS-and-US-GAAP/benefits-ofachieving-convergence-with-ifrs. aspx ? http://blog. ifrs. com/2009/05/ifrs-convergence-or-adoption. html Q †¢ 5302110027 †¢ 5302110134 †¢ ?.?. 5302110092 †¢ ?.?. 5402110018 †¢ ?.?. 5402110026 We will write a custom essay sample on Prinsiple Base vs Rule Base Accounting specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Prinsiple Base vs Rule Base Accounting specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Prinsiple Base vs Rule Base Accounting specifically for you FOR ONLY $16.38 $13.9/page Hire Writer