Research Korner: Management Samples

Portfolio Management of Standard Chartered Bank Pakistan

Portfolio management of Standard Chartered Bank (SCB) Pakistan   <li class="MsoNormal" style="line-height: 150%"> Introduction </li> The ideal research approach significant for research is by means of thorough applications of comprehensive financial analysis imposing standards and strength from within into useful research paradigm through case study assimilation as well as having factual evidence that can be directed to financial aspect of the banks as supported by reliable case studies presented through reliable journals and articles as based on the topic. The involvement of SCB Pakistan in annual report and or press releases of banking finance statements is of positive factor to value application of financial approaches found within case patterns and such financial context and principles. The research can have the analytical underpinnings for new class of active investment managers. There needs for a qualitative active management, of better financial analysis and such process to try to beat the market pointing to financial economics in delivering  investment returns, from perspective of financial economist, active portfolio management appears to be reliable consideration from active, effective management. <li class="MsoNormal" style="line-height: 150%"> Methodology </li> The need for a qualitative approach adhering to portfolio management of SCB Pakistan that investigates superior returns and risk control, this will work out through case study analysis of SCB that caters to their financial statements in recent figures and the recognizing of financial strength as the case study will analyze in terms of SCB reports relating to Pakistan and an organized discussion, analysis as well as interpretation of the research depending on data presented through SCB’s financial reports that overlook for a possible active portfolio management on desired approach. Method goal is to provide a structured approach for active investment management applied for SCB Pakistan. The process includes researching ideas as qualitative or not, forecasting exceptional returns, constructing and implementing portfolios, observing and refining their performance then, to provide better set of strategic concepts and rules of thumb which broadly guide the portfolio process. The utilizing of financial methods for SCB Pakistan as these type of methods are the most popular of the various project selection and prioritization methods with 77 percent of businesses using this method overall, and 40 percent reporting it as the dominant method they rely on. The methodology can be based on literature studies of SCB through research analysis as supported by reviewed studies of understanding the background of the bank’s financial strength and how it relates to pricing opportunities as the banks do strive to become more financial competitive centered ( 2000). The data required for case analysis have been collected SCB Pakistan’s annual reports and statements have been referred for the collection of accurate data ( 2002; 2001). <li class="MsoNormal" style="line-height: 150%"> Objectives </li> The need to plan, execute and understand the process of portfolio management of Standard Chartered Bank, the case of Pakistan  Standard Chartered Bank Pakistan will need to adopt such approach to financial planning and management which deploy an effective banking network by linking towards a better financial approach determining financial statement in its value and strength, the research will present better framework for analysis and crafting of financial patterns of Standard Chartered Bank in portfolio management into Pakistan context. The need to know and recognize the importance of portfolio management as research pertains to Standard Chartered Bank involvement in such controlling of risks as well as provide of superior returns can achieve better financial status and competence without experiencing much delinquency of its financial statements like, found in cash flows and balance sheets with Pakistan banking sectors for managing portfolio engagements linking to other Pakistan banking sectors ( 1998). The setting of portfolio standards by SCB is an important factor upon determining success towards financial strength and other matters. 4. Hypothesis H1: There is active and effective approach towards portfolio management of Standard Chartered Bank H2: There is inactive and ineffective approach towards portfolio management of Standard Chartered Bank H3: There is positive portfolio assessment method of SCB upon considering comprehensive financial information H4: There is negative portfolio assessment method of SCB upon considering comprehensive financial information <li class="MsoNormal" style="line-height: 150%"> Literature review </li> New product portfolio management is about how there investment in business’s product development resources is allowing SCB project prioritization, allocating resources across development projects. There has been several goals in portfolio management such as the maximizing the value of the portfolio, seeking the right balance of projects, ensuring that the bank’s portfolio is strategically aligned, and making sure SCB don’t have too many projects for its limited resources and lots of tools to use for measuring portfolio as some quantitative/qualitative, others graphical, strategic as such being designed to help the bank chose the right portfolio of projects. According to  and  (2006), there can be presence of “optimal portfolio management policies for an investor who must pay transaction cost equal to a fixed traction of the portfolio value each time he trades, showing that the optimal policy reduces to solving single stopping time problem as when there is risky stock, there can be system of equations whose solution determines the optimal rule and observe the general qualitative results” ().  Thus, portfolio management is fundamental to new product success but as easy as it seems not only must SCB seek to maximize the value of your portfolio, but the development projects in the portfolio must be appropriately balanced, there must be the right numbers of finances and other related aspects, portfolio management must be strategically aligned. No one portfolio model can deliver on the goals, so SCB may integrate multiple methods to select effective projects. SCB is known and trusted for having high standards of corporate responsibility as the bank is committed to building sustainable business through social inclusion, environmental protection and good governance, by combining the global capabilities with deep local knowledge, SCB develop innovative products and services to meet the diverse and ever-changing needs of individual, corporate and institutional customers in some of the world's most exciting and dynamic markets ( 2007). Financial statements is to provide information about the financial strength, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions, intended to be understandable by readers who have reasonable knowledge of business and economic activities and accounting and who are willing to study the information diligently (2008). Financial strength was used in describing certain extent to which an entity is constrained by its financial situation in pursuing its strategic goals or policies. An entity is financially strong when it is relatively unconstrained and weak when financial constraints are binding on policy choices. The financial strength of the banks is intimately linked to the successful management of the enterprise (2005).

Portfolio Management of Standard Chartered Bank Pakistan

Portfolio management of Standard Chartered Bank (SCB) Pakistan Introduction The ideal research approach significant for re...

Online Real Estate Management System

Online Real Estate Management System   The world today has truly progressed in various aspects of human life. Not only in the physical sense such as infrastructure and urbanization, but also through science. It has led our society to the many discoveries about our own way of living which, by now, we are already taking for granted. Because of the studies conducted by science, people are now able to hold large collections of information. These pieces of information can easily be accessed through technology. The internet has now provided us to do so many more things that we cannot have done before. These pieces of information are now very easily available to anyone that virtually, any person who has computer and internet access can do about anything they would wish, given the limitation of physical activity. So many new technologies are now readily available for us through various channels. Today, because of this situation, one may already grasp at the sense of information overload. It may even cause a sort of economical diminishing of marginal utility in our perceptions. We have now therefore a need to organize and reorganize these pieces of information constantly as to be able to keep track of which are valuable to us and which ones are not[1]. Information may be defined as the building blocks of any company as it holds all and any important elements of the existence of the company. A lot of sectors of our industrial world are now starting to depend on information and technology for their daily business transactions. Today, many companies, including the Real Estate sector is now able to utilize the resources the internet and information and communications technology in order to transact business actions through the internet. Innovation has led to the rise of real estate management software. As real estate may be one of the most important sector of our society, since realty is scarce and always needed. Real estate investors have now produced a better way of keeping information valuable to their business through the security and ease that the internet and personal computer can offer. This so-called software can now serve real estate managers through an information database[2] wherein it can keep track of all financial transactions made by the company, always available online. It can also provide a database system on the company’s tenants and all vendor information as well as infrastructure specifications. Payments and information dissemination including marketing can already happen online. This gives the advantage to the real estate manager as these advertisements may be available to the public through lower costs, as well as the transactions costs may be lessened. This database can easily improve the company’s ease of transactions and create a wider base of clients as the internet will be able to reach millions of potential clients. Organization will also be a key feature in this kind of system. A system such as this would truly help not only the proprietors or the real estate managers but also the entrepreneurs or the sellers and the market buyers. Every piece of information about the real estate product, be it a building, a house of a simple apartment, the database will be able to cover all of it. All of these pieces of information regarding the real estate asset will be kept online where everyone affiliated with the company, or those with permission can access them with a simple click of a button. Another positive factor about this system would take marketing and advertising to new heights. Flyers and billboards would only need to appear in website banners. These ways would ultimately cost less than the empirical advertisements. These would also attract so many more buyers since it will be able to reach virtually anyone with a computer and internet access, not only through web sites but also through company sent electronic mail also. All in all, there are many benefits to such systems. Not only does it boast of easier use and convenience but also accessibility and financial stability or gain for the company.   References Ditsa, G 2003. Information management: support systems and multimedia technology, IRM Press, USA Renttropolis 2010, Online Management System, media release, NewWard Development, LLC, USA   [1] Ditsa, G 2003. Information management: support systems and multimedia technology, IRM Press, USA [2] Renttropolis 2010, Online Management System, media release, NewWard Development, LLC, USA

Online Real Estate Management System

Online Real Estate Management System The world today has truly progressed in various aspects of human life. Not only in the physical ...

Online Real Estate Management System

Online Real Estate Management System

Online Real Estate Management System The world today has truly progressed in various aspects of human life. Not only in the physical ...

Managing Markets: Case of KFC

MANAGING MARKETS   Marketing mix modeling is a term of art for the use of statistical analysis such as multivariate regressions on sales and marketing time series data to estimate the impact of various marketing tactics on sales and then forecast the impact of various marketing tactics on sales and then forecast the impact of future sets of tactics.(1) Various companies have been using MMM or marketing mix modeling as part of their “secret formula” and most of them have been succeeding and their businesses are expanding. But one of the most notable among these companies is KFC, a leading food chain globally.  What kind of good strategies that we observe in the KFC that we don’t usually see in the other food markets?  First and foremost is, the way the marketing mix modeling is being implemented in all their branches and outlets.  Second is, the optimizing of budget by allocating spends to those activities which give the highest return on investment.  If we look closely on the first aspect, strategists have been gaining competitive advantage for KFC due to the fact that almost all corners of the world have this company which specializes in serving tasty and crunchy chicken, spaghettis and many more.  Of course, logic would tells us that if KFC is not well-received in one place, automatically its aura and salability to other places would be put into jeopardy.  But this would not be true to a company such as KFC, where the theory on how to be more competitive and uplift more its service to the people are at the forefront.  However, all these means of implementing marketing mix theory would be in vain if the strategist or marketing managers cannot and don’t know how to implement them prudently and wisely.  The time-frame and venues are of vital parts in considering the effectiveness of every business.  In the early 80’s a certain appliance  company was at the peak of its popularity and almost all people would patronize its name and bought their appliances no matter how costly they are as long as they carry with them the brands name.  Yet, and perhaps due to the marketing managers and strategists’ inability to foresee the future and the consideration of the place, the once famous company went into bankruptcy and suddenly disappeared like bubbles in the air.  Talking about venues and time-frame as great tools in safeguarding the salability and consistency of the market, KFC (most specific example is the Philippines), I should say, has been gaining advantage over the other food chain companies.  And why is this so?  Firstly, the strategists know full well that the Filipinos are grossly in love with eating fried chicken and other pastas as well.  The strategists here considered two salient points: venues and time-frame.  Venue because, Filipinos are fried-chicken loving country.  And this “addiction” cannot be separated from them.  Time frame because, eating fried chicken is something that endures for lifetime.  The second aspect hinges on these: forecast sales, simulating various scenarios, identifying the most and least efficient marketing activities, mix promotional tactics (2), have also contributed to the effectiveness of putting into practice  the theory of marketing mix.  The effectiveness of each of the marketing elements is defined in terms of its contribution to sales-volume, effectiveness, efficiency ROI (return on investment).  These insights are then utilized and acquired to adjust marketing tactics and strategies.  To optimize the marketing plan and also to visualize sales while simulating various scenarios is not just useful for reporting the established and experienced effectiveness of the activity, it also helps in visualizing the budget by identifying the most and least efficient marketing activities.  In this way, the marketing manager can reallocate this marketing budget in different proportions and see the direct impact on sales value.  At this point, the strategists or marketing managers can optimize the budget by allocating expenditure to those activities which give the highest return on investment.  In forecasting sales, the strategists employ the psychology of optimism.  Pessimistic attitude has no room in business because it does not only lowers the moral of the workforce, but it also puts the company into a false sense of security.  Being optimistic, marketing managers forecast sales so as to add more to the efficiency and contribution on sales-volume.  In identifying the least and most efficient marketing activities, the strategists can address effectively the problem.  The least efficient marketing activities can be done by checking the personnel and supervisor whether they are really doing their assigned tasks.  Secondly, by monitoring and consistently upgrading the more efficient ones, the marketing managers are doing a check and balance work which is important in raising the level of quality of the market.                The ultimate objectives of all the employed tactics and techniques in the market world revolve around the sales volume, effectiveness of the strategy , efficiency on return on investment.  And the best of these of course is, return on investment (and of course—the interest and how much you gain from your business). Footnotes: 1. Marketing mix modeling—WikiPedia                    2. Return on Investment--WikiPedia

Managing Markets: Case of KFC

MANAGING MARKETS Marketing mix modeling is a term of art for the use of statistical analysis such as multivariate regressions on s...

MANAGEMENT OF THE EXTERNAL ENVIRONMENT: An Analysis of the Implications of the External Environment on Organisations

MANAGEMENT OF THE EXTERNAL ENVIRONMENT: An Analysis of the Implications of the External Environment on Organisations TABLE OF CONTENTS   I.      Introduction.. 3 II.     Organization and its Environment.. 4 A.    Internal Environment. 4 B.    External Environment. 5 1.     Competitors. 5 2.     Economics. 7 3.     Society (Social System) 8 4.     Business Exchange. 9 5.     Political Situation. 10 III.        The Computer Industry.. 11 A.    The Case of IBM.. 11 B.    Circumstances in Microsoft. 12 IV.       Conclusion.. 13 V.    References.. 14   I.             Introduction Modern day decision-makers tend to deal with rather complicated problems that highly influence the operations of their respective organisations. This requires them to make decisions promptly and at the same time make sure that it directly deals with the issues that they are facing. They have to make sure that they make things right the first-time. One definite way of dealing with this is by consulting the general environment of the organisation. This paper intends to analyse the how the information that organisations acquire from the environment help them in keeping their operations on track. Specifically, the study will look into the use of the external environment. Close consideration will look on the situation regarding the company’s competitors, economic system, general society, business environment, and the legal situation that may or may not have an effect on their industry. Moreover, specific companies will also be taken into consideration to show how theories are implemented in real world settings. The companies that will be observed will be those involved in the IT and computer industry. The arguments and observations that will be provided in this paper are going to be based on academic and scholarly journals directly related to management and operational administration of organisations.   II.           Organization and its Environment Understanding the environment of the organisation offers the key to possibly uncovering the needed developmental changes that the organisation requires. The following discussions will provide a brief description on the internal and external environment and their importance for the modern organisation.    A.  Internal Environment The internal environment encompasses the company’s “physical and cultural aspects” that have major implications to the processes and executive development of the organisation., 2001, 801) With this in mind, the internal environment tends to tread the trails but not limited to human resource management concepts. In the study of  (2003, 491), she indicated that the internal environment is rather important in the context of strategic planning for the organisation. She noted that in using the information relating to the internal environment, allows the decision makers of the organisation to become conscious of the qualities of work on how it is structured and carried out. In this respect, the said study has manifested the very elements that make up the internal environment of the organisation. These include the skill-level of the employees as well as the tacit and explicit knowledge displayed within the organisation.  Another element included is the attributes of “the objects to which the work is performed,” as well as the implications of the relationships held within the organisation. Based on this definition, one could surmise that the general elements held in the internal environment of the organisation include the knowledge management practiced which also complements the general culture held by the personnel. In following this line of logic, this does have some significant implications on the decision making of the company.      B.  External Environment Among with the internal environment of the firm, the external environment has similarly been marked as one of the major elements that influence the firm’s operations. As seen in the article of  (2001, 38) the external environment is seen to be marred with uncertainty. This highlights the need for understanding this environment not only for the reason of having the needed data as a security blanket but to minimise the risk offered by uncertainty posed by the external environment. The following study will provide a set of observations based on existing literature relating to the external environment of the organisation.        1.    Competitors The modern setting where businesses conduct their operations tends to be marked with a level of viciousness where competing organisations tends to drive each other to the brink of leaving the market or even filing a claim of bankruptcy. As indicated in the seminal organisational theory of Porter, merely identifying the competitors of a particular company is not enough. ( 2000, 103) To a certain extent, knowing the other players in the industry is merely a part of the process. A more important factor in this endeavour is to distinguish the level of rivalry present in the marker. (p 104)   The intensity of the rivalries among the players in the industry tends to provide certain indications on the kind of organisations a particular firm is against. For instance, if an organisation finds out that the level of rivalry is considerably intense, then the firm may be battling against competitors with resource capabilities equal or greater from their own. This is especially true in instances where the number of player similarly increases.r, 2000, 104) The number of competitors tends to diminish the felt demand on the product or services offered by the organisation. However, if the firm finds out that the intensity of rivalry is rather unstable and unpredictable, then it could be an indicator of diversity in the competitors present in the industry. Specifically, difference in the strategies held by each organisation and the drive for far greater modes of differentiation tends to be present in the players in the industry. In looking at the discussions above, the importance of knowing the competitors and the level of rivalry is manifested in the market and the consequent industry of the firm. The bottom-line is that modern day competition among modern-day organisations tends to seek better value for their resources. Companies will find ways to establish strong differentiation for the main service or product that they offer along with other means of getting a fair (or otherwise) advantage over the other players in the industry.       2.    Economics The context of economics in an organisation tends to emulate the classical economic concept defined as the          production, distribution, and consumption of resourcesic, 2006, 575) There has been a considerable number studies that has indicated the effects of the changes in the economic systems in the business sector. For instance, there is the study of (2002, 953) indicates that the economic systems of certain locales tend to provide the business sector one of the most indispensable elements of trade: coordination. Specifically, this phenomenon issues the necessary requirement of coordination among the different social institutions that directly and indirectly affect the organisation. The said author also indicated that a rather stable economic system provides the business sector the protection they need from the adverse implications of a considerably variable one. (p. 580) Other studies also indicated that the economic system may inadvertently influence the internal environment of the organisation. An earlier study provided by (1994, 1) indicated that the market econmy of China has provided certain implications to the state-based companies’ human resource management Practices. Specific changes include those from the centralised planning to a more strategic one as the shift towards global trade ensues. Moreover, the reforms made in the said country have created a “dramatic growth” on the processes of the state-owned and private companies in the country. Seeing the points of these discussions, it appears that a thriving economic system provides more opportunities for businesses to flourish and eventually prosper.     3.    Society (Social System) In considering the issue of social systems, the context of culture prevails over the existing organisational studies. Specifically, the influential theory of Hofstede highlights the need to know of the culture of a particular location to create situation that will complement it with the goals of the organisation. The study of (1996, 753) indicated that the businesses in a particular country tends to manifest a high level of economic efficiency if the management processes implemented in each organisations emulate and goes together with the national culture. In looking at the discussions above, it appears that companies have another important factor to consider especially if they intend to expand their operations in an international level. To this extent, the company could opt to seek markets where they could operate effectively without incurring major changes in the core business processes or they could display flexibility and adapt their system to the culture of the market. At any rate, if improvements in the operations of the organisation are fervently sought by a particular firm, they must ensure that their principles, policies and goals complement the national culture.         4.    Business Exchange The issue of business exchange covers the financial element of the external environment. Specifically, the monetary system is taken into consideration. Some organisational studies have connected the monetary system of a particular state to have a major effect on the accumulation of capital of the organisations. To illustrate, the study of Beuving (2006, 324) indicated that the presence of opportunities in accumulating capital in the Lebanese setting has triggered an increase in the effectiveness in the second-hand car trade. In the same manner, the rather rich set of opportunities has created a business pattern unique on this market niche. Moreover, an earlier study made bon (1982, 48) noted that the issue of capital accumulation does not only affect a particular organisation. The social structure, in the same way, has also been influenced in the context of Indonesia. As the said study claimed, it has contributed greatly for the transformation of Indonesia in the later part of the 1980s and the earlier part of the 1990s. The creation of opportunities at this juncture eventually made the state dominantly capitalist in nature. Looking at the cited studies in this section, the presence of opportunities for capital accumulation allows the organisation to improve eventually. Nevertheless, this assumption also requires organisations to actually take advantage of the opportunity provided for by business exchange that complement their operations.          5.    Political Situation The political situation of an external environment tends to similarly have some implications in the business subjected to it. One such implication is highlighted in the studyeiga (2006, 1379) which stated that political instability makes it more likely for the external environment to incur a rather high rate of inflation. This means that prices of the products and services of the businesses tends to be higher than they can actually spend. Thus, this means that whenever businesses acquire the raw materials that they need, they automatically incur loss. Though they could pass this loss to the end-users of their product or service, the increased price of the major commodities that they are selling tends to diminish the demands and possibly limit the actual consumption of the public given the issue of high price as deterrence. In specific studies,l (2000, 43) noted that that the political instability in Turkey was the main factor that triggered a crisis in the business sector of the country. This also took place in the sn (2000, 93) indicating that Indonesia’s SME sector have acquired considerable damage as the volatility of the political situation in the country has emerged in the later part of 1997. Seeing the discussions above, it appears that the state have similarly been deemed as an important part of the external environment of any organization. The policies made and ratified by the government that the business sector may find either unfavourable or otherwise share this effect on specific organisations. Moreover, assuming that the policies ratified by the government are highly favourable to organisations, then the issue of stability tends to cancel it out. The changeability of the leadership or type of government tends to manifest some level of doubt on the part of the investor or owner may have doubts as to whether the operations of the business are safe in the said environment.         III.         The Computer Industry The computer industry has become one of the most flourishing industries in the world. The study has chosen this industry for the reason that the companies have the propensity to change market as they want and not to mention play at the international level. This reflects that any changes from the external environment will essentially have a effect on their operations.   A.  The Case of IBM IBM is one of the pioneers in the IT industry, particularly in terms of manufacturing hardware. In the early part of the 1990s, they have experienced considerable losses in business opportunities from their German counterparts 2006, 389) As it turned out, the German government have made attempts to create a policy that will collect information in their own markets. (p 393) IBM has not foreseen the possibility that these ratified policies have allowed German agencies to inadvertently eavesdrop on the communication lines of the company. Thus, this set of sensitive information is leaked to their competitors in the German market. As a result, significant loses has been incurred in terms of the business opportunities of the company.       B.  Circumstances in Microsoft The issue relating to Microsoft is that its operations in the United States have gone against the Anti-trust law of the country.  (2002, 65) provided a detailed discussion on the case. The said article noted that Microsoft was pursued by the American government because of their supposed monopolistic hold on the operating system industry. Specifically, the Windows operating system was held in question. The company contended that the said actions it took were a product of competition not of any other intentions held in bad faith. The problem, according too (2002, 66) is that the actions manifested by the government is slightly tantamount to harassment. It was closely held that the company was merely holding on and controlling a large market and not actually holding a monopoly over the industry. In this sense, it is seen that Microsoft has considerably been affected by the laws protecting thew land. The context on this issue is that companies tend to vie for supremacy of the market. However, with the governments seemingly proctoring the principles of fair competition and fair trade will inevitably find fault whenever a firm succeeds over its competitors. The case of Microsoft highlights the issue on how the government should draw the line on these types of situations. To a certain extent, the Microsoft case may have become a deterrent for successful companies in holding on and controlling large markets.      IV.        Conclusion In order for real development to take place, change must also ensue. The discussions above have highlighted the need of organizations to monitor changes in the external environment given that these elements provide the greatest implications. Changes in the economy, society, legal, and political environments essentially falls under the changes of the external environment. The practitioner-based research cited above has manifested the need to recognise the changes required of the external environment such that they are able to adapt flexibly and meet its demands. A perceptive limitation of this study is the use of rather large corporations like Microsoft and IBM, which indicate that they have the capability to rebound on the possible adverse implications provided by the fluctuations in the external environment. This also means that the discussions presented above may less likely to be applicable for smaller companies in the industry. At any rate, the bottom-line of the discussions above is to espouse vigilance on the part of the organisation regarding their general environment. On the whole, one must recognise that the operations of the organisation require a balance of consideration on the overall environment, both internal and external. A clear understanding of the external environment will allow the organisation to manipulate the internal environment to deal with the changes brought upon them. At this point, established theories could help but one must realise that at some point, they don’t complement the respective situations where companies find themselves. Theories only provide some sort of guidelines as opposed to offering a panacea to the issues relating to the external environment.

MANAGEMENT OF THE EXTERNAL ENVIRONMENT: An Analysis of the Implications of the External Environment on Organisations

MANAGEMENT OF THE EXTERNAL ENVIRONMENT: An Analysis of the Implications of the External Environment on Organisations TABLE...

DALTON AIRPORT – IMPROVING AIRPORT MANAGEMENT PROPOSAL

DALTON AIRPORT – IMPROVING AIRPORT MANAGEMENT PROPOSAL     Airports are example of large, dynamic and complex systems which involves the management of facilities, functions and services that are directly related to various airline and aircraft activities. Towards improving the revenue of Dalton Airport for the fiscal year 2007/08 onwards, Dalton City Council will conduct an organization-wide restructuring.   Primarily, Dalton Airport shall use the Total Airport Management System (TAMS). Total Airport Management (TAM) is defined as the operational process-control of the entirety of aircraft-related activities. As an integrated airport management system, TAMS could be a point of interaction whereby the integration of the majority of the electronic information within the airport is probable.   TAMS comprises air traffic control administration, over flight billing, real-time apron management, handling agent, airport flight information display, gate allocation, automated warehouse, security systems, metrological systems, ground services, staff information via intranet, airport landing dues information, statistical and financial report, cash invoicing and non-aero invoices, passenger check-in, facility management, point of sale and apron services management.   Apart from assuring maximum flow of information intended for operations, management, security and control, TAMS supports Dalton Airport’s goal to provide cost-effective, efficient, quality operation for passengers, employees and residents within the vicinity as well. In addition, TAMS could continuously drive elements and interdependencies among key airport functions that include operations, engineering and maintenance, planning, administration and finance, commercial and legal within comprehensive workflow models. In effect, the information on different planning intervals will act on turn-around-cycles and enhance systems-to-systems capability of Dalton Airport.   Nonetheless, the implementation of the TAMS would be too costly as it requires prior establishment of multimedia virtual affiliate or multimedia domain as a host, or a highly-advanced infrastructural facility. To cut costs, since the latter is much more expensive than the latter, Dalton City Council could settle on choosing server domains and just pay for its services until the time that Dalton Airport builds its own facility. Difficulty on simulation configuration is another possible downside wherein subsystems could be degraded depending on the extent of functions optimization with respect to TAMS implementation, and it may blur with capacity-state of present operation.   Moving to relative lowly-technical endeavors, Dalton City Council should improve the airport’s promotion and advertising.  Marketing-wise, Dalton Airport is lagging behind its key competitor. Dalton City Council and Dalton Airport will construct an actionable, full scale marketing plan that will be based on a ‘commercial airport approach’. This approach comprises commercial services, tourist services, conference services, logistics and property services and consulting services. The marketing plan will also embrace creative platforms on different promotional tactics such as advertisements, through television, radios, movies/theaters, magazines, newspapers and other printed materials and billboards. In addition, visual portals and the Internet will be also considered. Visual portals are train stations, walls on airports pathways, hotels, grocery stores, leisure parks and gym and technical utilities are online collaborations, POP displays, cyber kiosks and electronic advertisements.   Complementary services will be also made available. In the departure hall landside, gourmet shop, bars, restaurants and food court, hairdresser, thematic shops, fashion stores and news stands will be set-up and improved. On departure hall airside, the add-on facilities will be Duty-free shops, bars and restaurants, last minute duty-free shops, jewellery and money changer and on the arrival hall pharmacy, bars and restaurants, info point, hotel point, bank, florist car rental and others will be built.   However, the marketing plans are tended to be too expensive and virtually impossible to implement within a predetermined timeframe. Coordinating with different companies would pose particular legal compliances and requirements that might be difficult for the Council to provide or obtain.   To continue, Dalton City Council will have to improve the access to the airport. Since finding an alternate route would be difficult, the next best thing to do is cut the traveling time of the passengers. This can be done in two ways. First, Dalton Airport must have airbuses or cityflyers that will round within the vicinity to pick and take passengers to their city destinations. And second, the airport officials must coordinate with existing governmental and local transportation agencies. Both needed to have successful coordination, appropriate and legal.   Airport transportation actually comes in different types and Dalton Airport could explore all them as possible. Airbus and cityflyers can take passengers from airport to urban areas and vice versa. Taxis can take them anywhere to and from the airport on different routes and there are also private cars and rental cars and chauffeured vehicles. If there is, airport express or special trains that link airport with urban areas and subway in the least time possible.   The detriments of improving access to airport is central on the availability and provisions for ample parking which the airport may or may not provide at all due to time, space, financial and control constraints.     In effort to continuously support the growing awareness of the people regarding the ethical services, Dalton City Council will ensure aerodome certification in order to boost the airport’s performance. Certified Aerodome are subjected to inspection and required to operate in accordance with the Dalton Airport Operations Manual. [The manual too will be subjected to the periodic approval of the appropriate authority for sufficient changes that will come from aerodome safety inspectors.] Dalton City Council will act as overseer and monitoring body of the current condition of the airport and ensure that basic and regulated services are available to users. The things effecting certification are as follows: lighting, surfaces, signage, transition marking or lineage, zoning, wildlife, environmental, traffic and security in line with International Civil Aviation Organization (ICAO) regulations.   In lieu with this, Dalton City Council will conduct and implement different projects, plans and programs intended for the improvement of operations and services. First, there will be the airport maintenance plan. The areas of concern of this plan centers on operational surfaces, visual aids to navigation, radios, terminal building, mobile equipment and maintenance facilities, access roads and paved surfaces, signs and fencing, obstruction zoning, drainage and fire fighting equipment.   Second, Dalton Airport will be enforced to adopt a comprehensive Foreign Object Damage Control Program in order to increase the safety of airport operations and to reduce the maintenance costs by means of eliminating foreign objects hazards. This initiative will be accompanied by coordinating with units responsible for airside surface materials, airside traffic, airline, aircraft operations, climatic influences, groundside and nearby construction sites.   Third, runway condition reporting will be a priority. Reports must be based on tests conducted by the in-house mechanics and foreman in order to quantify the condition of the runway for pilots. Reports as well must be undertaken in any weather to inform flight operations of the condition of the runways and taxiways.   Fourth, the airport will conduct wildlife hazard assessment through formalized wildlife surveys including identification of hazardous wildlife species, general movements of the wildlife and attractants on and off the airfield, and recommend to resolve issues. In order for the initiative to fully commence, airport personnel will be trained.   Aside from this, Dalton City Council will, fifth, conduct an environmental impact evaluation consisting of major issues such as air and water quality, ambient noise level, ecological processes and natural environment values. To wit, airports are social stimulus for economic growth and upliftment of quality services to the public so it is a must to operate compatible with the environs.   Looking at the operational facilities, I can say that these are enough – fueling facility, storage shed, airport management and briefing centres, freight storage and flying school hangar – but, there is something missing, something that is fundamentally important, and could be a value adding endeavor and thus revenue-adding activity: an airport clinic. Airport clinics must be on the front line to combat diseases and these facilities must be prepared to treat passengers from all over the world. Though the majority of the patients would be airport employees, clinical services must be extended to baggage handlers who strain their backs, mechanics suffering from scrapes and burns, and pilots and flight attendants who picked up minor illnesses overseas.  In some instances, airports which are under renovation, expansion or construction, there would be the possibility of cuts, bruises and broken bones that requires immediate treatment.   The downside of putting up such facility would be, of course, the cost, and eventual requirement for additional staff like resident doctor, nurses, nurse aids and the same population. To reduce the cost, Dalton City Council could coordinate with a public hospital to extend facilities and services to the airport or have a separate office for an in-house physician that must be available 24/7.      In terms of organization, this paper hereby proposes that there must be “a transition from passive management to proactive management, from open-loop management to closed-loop management, from individual to systematic management and from partial management to comprehensive management”. There are specific functions that must support management and supervision such as safety policies and safety objectives, safety education and training, document management, safety information management, risk management, investigation and handling of unsafe incidents, emergency response and oversight and audit of airport safety. In lieu, there must be additional staffs to support this agendum since the ten primary employees would not be sufficient enough to handle new functions and responsibilities.   Conversely, additional staff spells additional financial burden to the management in terms of remuneration. To make matters worse, Dalton Airport would have to invest on additional training and education. But in the long run, if the companies could continuously hone and motivate their people through empowerment, the benefits would all be inward since regularizing employees mean eliminating costs of recruiting and hiring. In addition, these people were already familiar with the basics of the company and so there would be the possibility of improved collaboration among them even between old employees and them and newcomers.     In terms of the financial management, Dalton Airport’s accounting system must respond to the needs of airport owners, governments and etc., airport managers and airport users. The revenues are derived from air traffic operations, ground handling, non-aeronautical activities, back and cash management revenue, grants and subsidies. To improve the financial system, there must be categorization, for example operation and maintenance, administrative overheads and capital costs. Cost center statements and service line statements must be also available that must be aligned with ICAO’s policies.   In sum, efforts to improve airport management are central to the introduction of technical as well as mechanical functions. These are TAMS that ensures effective flow of integrated informations, complementary services, airport transportations, ethically-driven programs, additional operational facility (e.g. clinic), changed management and improved financial management.     Reading 1   “Agenda Item 3: Airport Financial Management and Airport Charges on Air Traffic” ICAO WARFM October 2005   Reading 2   “Airport Clinics: On the Front Lines” Terri Morrison and Wayne A. Canaway 11 February 2004   Reading 3   “Airport Marketing: Strategies to Cope with the New Millennium” David Jarach 2005 Ashgate Publishing, Ltd Chapters 3 and 4   Reading 4   “Bulletin 1: Best Practices-Surface Access to Airports” p. 8   Reading 5   “China’s Implementation of SMS at Airports” Working Paper – Assembly: 36th Session September 17, 2007   Reading 6   “Total Airport Management” http://www.eurocontrol.be/care-innov/public/standard_page/studies2001_dlr.html   Reading 7   “Airport Operations” www.aerohabitat.org/link/02-05-2007%20-%20Airport%20Operations%20Certification%20Guidelines.pdf   Reading 8   “Airport Transportation” http://www.12hk.com/xprt/AirportTransportation.shtml

DALTON AIRPORT – IMPROVING AIRPORT MANAGEMENT PROPOSAL

DALTON AIRPORT – IMPROVING AIRPORT MANAGEMENT PROPOSAL Airports are example of large, dynamic and complex systems which involv...

Strategies in Action “HSBC”

Strategies in Action “HSBC” Introduction Headquartered in London, HSBC is one of the largest banking and financial services organizations in the world. HSBC's international network comprises over 9,500 offices in 76 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With listings on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by nearly 200,000 shareholders in some 100 countries and territories. The shares are traded on the New York Stock Exchange in the form of American Depositary Receipts. Through an international network linked by advanced technology, including a rapidly growing e-commerce capability, HSBC provides a comprehensive range of financial services: personal financial services; commercial banking; corporate, investment banking and markets; private banking; and other activities. The HSBC Group has an international pedigree which is unique. Many of its principal companies opened for business over a century ago and they have a history which is rich in variety and achievement. The HSBC Group is named after its founding member, The Hong Kong and Shanghai Banking Corporation Limited, which was established in 1865 to finance the growing trade between China and Europe. HSBC’s Strategy for 2004 At the end of 2003, HSBC launched ‘Managing for Growth’, a strategic plan that provides HSBC with a blueprint for growth and development during the period to 2008. The strategy is evolutionary, not revolutionary. It builds on HSBC’s strengths and it addresses the areas where further improvement is considered both desirable and attainable. Management’s vision for the Group remains consistent: HSBC aims to be the world’s leading financial services company. In this context, ‘leading’ means preferred, admired and dynamic, and being recognized for giving the customer a fair deal. HSBC will strive to secure and maintain a leading position within each of its customer groups in selected markets. HSBC will concentrate on growing earnings over the long term at a rate which will place it favorably when compared with its peer group. It will also focus on investing in its delivery platforms, its technology, its people and its brand to support the future value of HSBC as reflected in its comparative stock market rating and total shareholder return (‘TSR’). HSBC remains committed to benchmarking its performance both absolutely and by comparison with a peer group. HSBC’s core values are integral to its strategy, and communicating them to customers, shareholders and employees is intrinsic to the plan. These values comprise an emphasis on long-term, ethical client relationships; high productivity through teamwork; a confident and ambitious sense of excellence; being international in outlook and character; prudence; creativity and customer-focused marketing. The plan also reaffirms HSBC’s recognition of its corporate social responsibility (‘CSR’). HSBC has always aspired to the highest standards of conduct, recognizes its wider obligations to society and believes there is a strong link between CSR, long-term success and value creation. Moreover, changing public expectations across a wide spectrum of social, ethical and environmental issues require continuing attention to this area. The strategy therefore calls for a renewed emphasis on CSR and for increased external communication of the Group’s CSR policies and performance, particularly on education and the environment, which will remain the principal beneficiaries of HSBC’s philanthropic activities. HSBC’s growth ambitions centre on its four customer groups: Personal Financial Services; Commercial Banking; Corporate, Investment Banking and Markets; and Private Banking; and specific strategies are being implemented for each of them. HSBC believes that by organizing its internal and external reporting around customer groups, it reinforces to all its employees the Group’s customer focus. Within Personal Financial Services, the increasing integration, skills sharing and transfer of technology with the consumer finance business has augmented and enhanced existing activities. In addition, the introduction of skills and practices from the world’s leading retailing businesses is shaping HSBC’s competitive positioning. Key elements in achieving HSBC’s objectives for its customer groups will be accelerating the rate of growth of revenue; developing the brand strategy further; improving productivity; and maintaining the Group’s prudent risk management and strong financial position. Developing the skills of HSBC’s staff will also be critical and it will be necessary to ensure that all employees understand how they can contribute to the successful achievement of the Group’s objectives. Employees who do make such a contribution will be rewarded accordingly. Operational management will continue to be organized geographically under four regional intermediate head offices, with business activities concentrated in locations where growth and critical mass are to be found. The plan contains eight strategic imperatives: <ul type="disc" style="margin-bottom: 0in"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Brand: make HSBC and its hexagon symbol one of the world’s leading brands for customer experience and corporate social responsibility;</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Personal Financial Services: drive growth in key markets and through appropriate channels to make HSBC the strongest global player in personal financial services;</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Consumer Finance: extend the reach of this business to existing customers through a wider product range and penetrate new markets;</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Commercial Banking: make the most of HSBC’s international customer base through effective relationship management and improved product offerings in all the Group’s markets;</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Corporate, Investment Banking and Markets: accelerate growth by enhancing capital markets and advisory capabilities focused on client service in defined sectors where HSBC has critical relevance and strength;</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Private Banking: serve the Group’s highest value personal clients around the world;</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> People: attract, develop and motivate HSBC’s people, rewarding success and rejecting mediocrity; and</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> TSR: fulfil HSBC’s TSR target by achieving strong competitive performances in earnings per share growth and efficiency.</li> </ul> The key elements of HSBC's strategy were presented to analysts and investors during our investor day on 27 November 2003 (HSBC.com). Diversity Strategy             In its successful business operation, HSBC Bank understands the local communities and spread that understanding around the world.  In doing so, they are in a unique position.  The business has been built for 166 years with local, on-the-ground, financial experts and is a part of the local culture.  This expertise and understanding is considered invaluable as a principal member of a global financial services and banking group.              What also makes HSBC soar is their employment of diverse people that make the company more adaptable to new situations.  Such diversity strategy targets not simply about gender, ethnicity, disability, religion or age but also about respecting individuals and treating everyone, customers and colleagues, with dignity.              Diversity reaches far beyond compliance with legislation and equal opportunities initiatives for HSBC.  As an international bank, HSBC value the diversity of the markets in which it operates.  HSBC’s diversity strategy is based on the premise that the most important competitive differentiators are the quality of individual service they provide to individual customers and the way they treat individual employees.              As a matter of fact, HSBC have a number of senior general managers who champion initiatives that particularly focus on such issues as disability, race, gender, and sexuality.  Their role is to help every employee to increase their understanding of the communities and customers and to ensure that understanding is shared throughout HSBC bank.  One of the ways in which they do this is by forging partnerships with organizations that promote equality of opportunity in business and in the community.              Diversity has been so important to HSBC which operates internationally and have put up offices to over 70 countries worldwide with over five thousand offices in the Americas and almost three thousand in Europe.  Fundamental Strategic Thinking             As the bank is a leveraged play on the underlying economy, two challenges came along with it.  First key challenge is to select the better performing economies and second is to attract the most valuable clients in HSBC’s chosen economies.  Additionally, HSBC aims to produce a blend of earnings from developed mature-growth economies and those developing higher-growth economies (considered on a risk-adjusted basis).              Leveraging HSBC’s internationality provides revenue generating and cost saving opportunities.  That is, leveraging through HSBC’s local presence the increasing trade and other links between developed and developing economies, transferring skills and best practice, and managing resources globally.  Fundamental Operating Strategy Ø  Customer-driven company that stay close to customers Ø  International teamwork Ø  Strong capital and financial position Ø  Conservative, sound risk management Ø  Disciplines expense control Ø  Ethical behavior, observing the letter and the spirit of rules and regulations HSBC’s Broad-brush 25-year Scenario             The key economic areas will be focused on NAFTA (North America Free Trade Agreement) which is led by the United States of America, and in China.  An astounding 50% of the increase in world demand will come from developing countries such as China, India, Mexico and Brazil.  Furthermore, major opportunities within the Diaspora of Chinese, Hispanic, Indian and many other expatriate communities.              In general areas, Long Term Capital Management (LTCM) has been affected along with Russian debt default, corporate scandals, rollercoaster equity markets, unbalanced global growth, and increasing regulation.  Positioning of HSBC Investing in countries of future consumer demand             In China alone, US$663 million is invested in 10% of Ping An Insurance and 8% of Bank of Shanghai.  In Mexico, US$2 billion is invested on acquisition of GF Bital.  In Brazil, US$815 million is invested on acquisition of Lloyds TSB assets in Brazil (2003).              In its acquisition of Data Management Platform, HSBC’s purpose is to build on an integrated application suite that can deliver an operational trading environment based on centralized data repositories in a short time frame.  Consequently, this strategy will avoid the time and resources it takes to build in-house as well as the cost of systems development and maintenance ().    HSBC’s Impact in Latin America             HSBC is about to significantly increase its presence in Latin America, with plans to buy Mexico's fifth largest bank, Grupo Financiero Bital SA, well in motion.  Bital, with 1400 branches, six million customers and 12.5 per cent of the Mexican market, will be HSBC's biggest branch network outside of Europe once the transaction is completed.             The purchase of the Bital (for US$1.14 billion) will be a massive bonus for traders as HSBC can now seamlessly facilitate trade throughout all of the Americas ().  Managing for Growth             HSBC have a strategy for growth that is delivered in many ways.  Acquisitions remain an integral part of HSBC strategy for growth. ·         Focusing on enhancing HSBC’s revenue generation culture ·         Further developing the brand ·         Managing costs strategically ·         Maintaining a prudent credit/market risk stance ·         Investing further in people Customers remain at the center of HSBC strategy having a specific strategy for each of the five worldwide customer groups.  In addition, HSBC position as the world’s local bank enables to approach each country uniquely, blending local knowledge with a worldwide operating platform.  Customer proposition will be calibrated along a spectrum with intensive relationship management at one end and monocline services at the other.  Taken as a whole, HSBC will concentrate activities on geographies where growth and critical mass are located.  HSBC Strategy is focused on Customer Groups.  Such groups comprises the Personal Financial Services (PFS) including HSBC Premier, Consumer Finance (CF), Commercial Banking (CMB) including Small and Medium-sized Enterprises (SMEs) and Middle Market Enterprises (MMEs), Corporate, Investment Banking and Markets (CIBM), and Group Private Banking (GPB). The key regional axes of management cover the United Kingdom and Eurozone, North America and NAFTA, Asia-Pacific, South America, and the Middle East.   Enhancing Products             HSBC is continuing to enhance certain products which are core to customer group offering.  Some products will be managed or coordinated globally and particularly.  Specifically, cards will be enhanced by exploiting the experience and platforms provided by Household.  Scale and international reach is considered in Cash Management along with Custody and Funds Administration, and further promoting Insurance and Asset Management including Retirement Benefits.              Such enhancements will enable the Group to ensure that HSBC have the best capabilities that will be able to offer a comprehensive service to customers, particularly where products are sold globally and use the product expertise globally.  Customer Proposition             Customer Proposition will be calibrated along a spectrum of strategic advisory relationship between Corporate, Investment Banking and Markets, and Group Private Banking.  Premier International sets an example of enhanced personalized banking.  The Monoline proposition, especially in cards, promotes efficiency.  It is also effective in both mature and emerging markets and can be run in parallel with relationship based services.              In delivering growth through enhancing revenue generation culture, it involves a lot of what HSBC have to do.  First, is strengthening the use of marketing as a key management tool of the business lines.  Then rewarding revenue performance and penalizing mediocrity.  Next is focusing investment on business and geographies with largest growth potential.  Finally, benchmark the growth targets and achievements rigorously against peer group.  Developing the Brand             The brand has been already a great success and HSBC is continuing with the next phase.  The brand is now sufficiently strong that can accommodate brand variety at customer, product and even country level as and when required by the business model.  Reputation is the key element of the brand proposition and cannot be overstated.  HSBC’s policies for corporate and social responsibility are part of the brand.  HSBC will treat employees with the same values as treating with customers.  Managing Costs Strategically             Managing costs strategically will greatly help in achieving maximum efficiency and flexibility.  Global resourcing and processing will be an essential element of the business.  Maintaining a Prudent Credit/Market Risk Stance             HSBC independent credit function has an excellent track record in a testing environment.  HSBC’s approach to credit for corporate and institutional clients will remain relatively conservative.  Credit for Small and Medium-sized Enterprises and personal customers will continue to be managed on a portfolio, risk-adjusted return basis.  Investing Further on People             The substantially increased size of the Group means that it is imperative to invest fully on people.  The management of Group talent is at the heart of the Group’s competitive advantage and needs to be strengthened.  Graduate recruitment will remain central to the growth of talented people aligned to the Group character.  The IM cadre will remain an essential element of the Group’s management and will be adapted to reflect the evolution of the Group’s businesses.  People will be more directly compensated in relation to their performance.  HSBC have to significantly strengthen the diversity of the people.  Acquisitions as Foreign Entry Strategy             Acquisitions still remain an integral part of HSBC strategy.  There is no need for a transformational acquisition but opportunities for incremental acquisitions which extend HSBC customer base or provide key product capabilities will be considered.  Such examples are The Mexican AFORE, Lloyds TSB Brazilian assets, and Bank of Bermuda (2003).  Criteria for Selecting Acquisitions             Acquisitions must fit into the overall business strategy.  They must be Earning per Share accretive in the first full year and to exceed the Group’s cost of capital within an acceptable time frame (3-4 years).  Moreover, They should bring a valuable customer base or product capability.  Human fit is essential – a similar outlook and character is a sine qua non.  They should be capable of smooth integration of IT platforms.  Finally, the existing Group should be able to add value to the acquired business (2003).  How does Corporate Social Responsibility Matters to HSBC?             As for HSBC, the term Corporate Social Responsibility (CSR) means addressing the expectations of their customers, shareholders, employees and other stakeholders in managing business responsibility and sensitively for long-term success.  The Chairman of HSBC believed that Corporate Social Responsibility is the best way of fulfilling obligations to their customers, shareholders, colleagues and the world at large.              In the social dimension, HSBC listens to their stakeholders in developing their business in ways that will continue to appeal to customers, investors, employees and other stakeholders.  In its belief that the world is a rich and diverse place, HSBC concentrates workforce on diversity strategy (as stated earlier) in anticipating and meeting their customers’ needs.              Moreover, HSBC has found that community involvement of their employees brought them many benefits.  Being recognized in the community as good corporate citizens and employers, helps HSBC attracts great people who in turn can provide great service to their customers.  Aside from that, education is also crucial to the development and prosperity of every country.  This part is very important for HSBC since it goes to more than 60 countries worldwide.  HSBC seek to build the confidence and abilities of young people (customers and employees) on whom their future business will depend by investing in education. Conclusion             Within the span of two years, from January 2003 up to November 2005, HSBC garnered almost 40 awards along with soaring rankings.  The Global Finance Magazine (2005) awarded HSBC as the Best Consumer Bank, Best Corporate/Institutional Information Security Initiatives.  This was just one of those awards won by the HSBC in its excellent performance.  Such achievements, rankings, and awards can be directly caused by HSBC’s business strategies.  With the previously-stated strategies, there has been no doubt that HSBC deserves awards and rankings in the field of business.

Strategies in Action “HSBC”

Strategies in Action “HSBC” Introduction Headquartered in London, HSBC is one of the largest banking and financial services organiza...