Exploring and analyzing the exchange of derivatives - Free Essay Example

Sample details Pages: 10 Words: 3044 Downloads: 9 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? Derivative is a financial asset which derives its value from specified underlying asset. A derivative does not have any physical existence but emerges out of a contract between two parties. It does not have any value of its own but its value, in turn, depends on the value of other physical assets which are called underlying asset. Don’t waste time! Our writers will create an original "Exploring and analyzing the exchange of derivatives" essay for you Create order These underlying assets may be shares, debentures, tangible commodities, currencies, or short term or long term financial securities. Securities Contracts (regulation) Act, 1956 defines a derivative as a security derived from a debt instrument, share loan and contract which derive their value from price or index of prices of underlying securities. The value of derivative may depend upon any of these underlying assets. The parties to the contract of derivatives are the parties other than the issuer or dealer in underlying asset. Some of the basic features of derivatives are: As the derivatives are not the physical assets, the transactions in the derivative are settled by the offsetting/squaring transaction in the same derivative. The differences in the value of the derivative is cash settled There is no limit on number of units transacted in the derivative market because there is no physical asset to be transacted. The derivative markets are usually the screen based computerized exchanges as against the trading markets for physical asset. Derivatives are only secondary market securities and cannot help in raising funds to a firm. In fact derivatives arise only when the shares and debentures are already issued by the companies. The derivative market is quite liquid and transactions can be effected easily. The derivatives provide a hedging of price risk of financial transactions over a certain period. It is a contract to be settled in future, by cash payment of difference in price. A derivative price must be distinguished from the underlying assets though the value of derivative and the underlying assets are related Types of Derivatives Commodity Derivatives and Financial derivatives: Derivatives contracts may be entered into for different type of commodities such as sugar, jute, pepper, jiggery, castor seeds etc. on the other hand the derivatives in currencies, gilt edged securities, shares, share indices etc are known as Financial derivatives. These are transacted all over the world. In India Stock Index futures, Stock Index Option, Stock Options, and Stock futures can be traded at BSE and NSE. Basic Derivative and Complex Derivative: The basic derivative are derivatives on underlying assets. Futures and options are two basic derivatives. However there are certain other derivatives such as swaps which may be classified as complex derivatives. Participants in Derivative Market In the derivative market, different types of parties participate. The derivatives are the hedging instrument participants with the objective also trade in the derivatives. Various participants may be classified into: Hedgers: derivatives have come upto the needs of the hedgers. Derivatives help both the parties to hedge. In case of commodity future contract farmers want to lock in the price for their produce and the merchants want to lock in the price they want to pay for the produce. Futures contract enable both the parties to hedge. Hedgers can use option contract also. Option protect the hedgers against the price movements while still allowing them to benefit from favourable price movements. So the hedgers have risk exposure which they offset by a derivative. Hedgers seek to protect themselves against price changes in an asset in which they have an interest. Speculators: Speculators are participants who are ready to take a risk for some return. They take position in the market either by betting that price will go up or by betting that the prices will go down. A participant will can speculate in futures or options. Speculators potential gain or loss is very large in case of futures, however loss may be limited and gain will be unlimited in case of options. Speculators are major player in derivative market. Arbitrageurs: Arbitrageurs are another group of participant in the derivative market. The arbitrage refers to locking in to risk less profit by simultaneously entering into two transactions in two different markets. The profit opportunities appear because of differences in price of the same asset in different markets. Types of Financial derivatives Forwards: Transaction agreements in assets can be broadly classified as Steady or Ready delivery contracts: where the asset is to be physically delivered immediately or within few days and payment is made in cash Future Delivery Contract: where the physical delivery of the asset is slated for the future date and the payment to be made as agreed. The futures delivery can be further classified as: Non transferable future delivery contract, where the contract must be performed by the parties as per the terms and condition mentioned. Transferable future delivery contract, when the parties to the contract can transfer the rights and obligation under the contract to the third party. The first one is known as forward contract and the second one is known as future contract. A Forward contract is agreement between two parties to buy or sell an asset at a future date at an agreed price today. Futures: A future is a contract to buy or sell the stated quantity of a commodity or a financial claim at a specified price at a future specified date. The parties to the future have to buy or sell the asset regardless of what happens to its value during the intervening period or what shall be the price on the date for which the contract is finalized. The futures are transferrable future delivery contract. Both the parties to the future have the right to transfer the contract by entering into an offsetting futures contract. It is not transferred until the settlement date then they have obligation to fulfill the terms and condition of the contract. Futures are traded on the exchanges and the terms of the futures contract are standardized by the exchange with reference to quantity, date, unit of price quotation, minimum change in price etc. futures can be of commodities such as agricultural products, oil gas, gold, silver etc. Or of financial claims such as shares, debentures, treasury bonds, share index, foreign exchange etc. Option: these are contracts which provide the holder the right to sell or buy a specified quantity of an underlying asset at a fixed price on or before the expiration of the option date. Options provide a right and not the obligation to buy or sell. The holder of the option can exercise the option at his discretion or may allow the option to lapse. As the option provide the right to buy or sell, these are the two types of option: The Call Option: A call option provides to the holder a right to buy a specified assets at a specified price on or before a specified date. The Put Option: A put option provides to the holder a right to sell specified assets at specified price on or before a specified date Swap: A swap is a contract in which two parties agree to exchange their respective cash flows. These are private arrangements between the parties to exchange cash flows accordingly to some pre arranged terms. The parties to the swap contract are known as counter parties. In swap one party agrees to exchange his set of pre-determined cash flows with the pre-determined cash flows of the other party. The swaps are of two types: Currency Swaps: A currency swap is transaction between two parties in which one promises to make a series of payment to other party at a specific date in exchange for a payment from the other party in different currencies. So in swaps the cash flows of different currencies are swapped Interest Rate Swap: these are the agreement between two parties in which each party makes a series of interest payment to the other party at pre-determined dates. At least one the interest rate is variable, i.e. floating rate in the sense that at which the interest payments will be made at the later date is known. The most common interest rate swap is known as Plain Vanilla swap in which one rate is fixed and other rate is floating History of Derivatives The history of derivatives is quite colorful and surprisingly a lot longer than most people think. Forward delivery contracts, stating what is to be delivered for a fixed price at a specified place on a specified date, existed in ancient Greece and Rome. Roman emperors entered forward contracts to provide the masses with their supply of Egyptian grain. These contracts were also undertaken between farmers and merchants to eliminate risk arising out of uncertain future prices of grains. Thus, forward contracts have existed for centuries for hedging price risk. The first organized commodity exchange came into existence in the early 1700s in Japan. The first formal commodities exchange, the Chicago Board of Trade (CBOT), was formed in 1848 in the US to deal with the problem of credit risk and to provide centralized location to negotiate forward contracts. From forward trading in commodities emerged the commodity futures. The first type of futures contract was called to arrive at. Trading in futures began on the CBOT in the 1860s. In 1865, CBOT listed the first exchange traded derivatives contract, known as the futures contracts. Futures trading grew out of the need for hedging the price risk involved in many commercial operations. The Chicago Mercantile Exchange (CME), a spin-off of CBOT, was formed in 1919, though it did exist before in 1874 under the names of Chicago Produce Exchange (CPE) and Chicago Egg and Butter Board (CEBB). The first financial futures to emerge were the currency in 1972 in the US. The first foreign currency futures were traded on May 16, 1972, on International Monetary Market (IMM), a division of CME. The currency futures traded on the IMM are the British Pound, the Canadian Dollar, the Japanese Yen, the Swiss Franc, the German Mark, the Australian Dollar, and the Euro dollar. Currency futures were followed soon by interest rate futures. Interest rate futures contracts were traded for the first time on the CBOT on October 20, 1975. Stock index futures and options emerged in 1982. The first stock index futures contracts were traded on Kansas City Board of Trade on February 24, 1982. T he first of the several networks, which offered a trading link between two exchanges, was formed between the Singapore International Monetary Exchange (SIMEX) and the CME on September 7, 1984. Options are as old as futures. Their history also dates back to ancient Greece and Rome. Options are very popular with speculators in the tulip craze of seventeenth century Holland. Tulips, the brightly coloured flowers, were a symbol of affluence; owing to a high demand, tulip bulb prices shot up. Dutch growers and dealers traded in tulip bulb options. There was so much speculation that people even mortgaged their homes and businesses. These speculators were wiped out when the tulip craze collapsed in 1637 as there was no mechanism to guarantee the performance of the option terms. The first call and put options were invented by an American financier, Russell Sage, in 1872. These options were traded over the counter. Agricultural commodities options were traded in the nineteenth century in England and the US. Options on shares were available in the US on the over the counter (OTC) market only until 1973 without much knowledge of valuation. A group of firms known as Put and Call brokers and Dealers Association was set up in early 1900s to provide a mechanism for bringing buyers and sellers together. On April 26, 1973, the Chicago Board options Exchange (CBOE) was set up at CBOT for the purpose of trading stock options. It was in 1973 again that black, Merton, and Scholes invented the famous Black-Scholes Option Formula. This model helped in assessing the fair price of an option which led to an increased interest in trading of options. With the options markets becoming increasingly popular, the American Stock Exchange (AMEX) and the Philadelphia Stock Exchange (PHLX) began trading in options in 1975. The market for futures and options grew at a rapid pace in the eighties and nineties. The collapse of the Bretton Woods regime of fixed parties and the introduction of floating rates for currencies in the international financial markets paved the way for development of a number of financial derivatives which served as effective risk management tools to cope with market uncertainties. The CBOT and the CME are two largest financial exchanges in the world on which futures contracts are traded. The CBOT now offers 48 futures and option contracts (with the annual volume at more than 211 million in 2001).The CBOE is the largest exchange for trading stock options. The CBOE trades options on the SP 100 and the SP 500 stock indices. The Philadelphia Stock Exchange is the premier exchange for trading foreign options. The most traded stock indices include SP 500, the Dow Jones Industrial Average, the Nasdaq 100, and the Nikkei 225. The US indices and the Nikkei 225 trade almost round the clock. The N225 is also traded on the Chicago Mercantile Exchange. Derivatives in India (Now) At present Derivatives Trading has been permitted by the SEBI on the derivative segment of the BSE and the FO segment of the NSE. The nature of derivative contracts permitted are: Index Futures contracts introduced in June 2000 Index Option introduced in June 2001 Stock Option introduced in July 2001 Currency Futures and options introduced in 2008 Interest rate futures introduced in August 2009 The minimum contract size for a derivative contract is Rs 2 Lakh. Besides the minimum contract size, there is a stipulation for lot size of a derivative contract. The lot size refers to number of securities underlying in one contract. The lot size of the underlying individual security should be in multiples of 100 and fractions. Commodity Exchanges In India there are 25 recognized future exchanges, of which there are three national level multi commodity exchanges. After a gap of almost three decades, Government of India has allowed forward transactions in commodities through Online Commodity Exchanges, a modification of traditional business known as Adhat and Vayda Vyapar to facilitate better risk coverage and delivery of commodities. The three exchanges are: National Commodity Derivatives Exchange Limited (NCDEX) Multi Commodity Exchange of India Limited (MCX) National Multi-Commodity Exchange of India Limited (NMCEIL) All the exchanges have been set up under overall control of Forward Market Commission (FMC) of Government of India. National Commodity Derivatives Exchange Limited (NCDEX) National Commodity Derivatives Exchange Limited (NCDEX) located in Mumbai is a public limited company incorporated on April 23, 2003 under the Companies Act, 1956 and had commenced its operations on December 15, 2003.This is the only commodity exchange in the country promoted by national level institutions. It is promoted by ICICI Bank Limited, Life Insurance Corporation of India (LIC), National Bank for Agriculture and Rural Development (NABARD) and National Stock Exchange of India Limited (NSE). It is a professionally managed online multi commodity exchange. NCDEX is regulated by Forward Market Commission and is subjected to various laws of the land like the Companies Act, Stamp Act, Contracts Act, Forward Commission (Regulation) Act and various other legislations. Multi Commodity Exchange of India Limited (MCX) Headquartered in Mumbai Multi Commodity Exchange of India Limited (MCX), is an independent and de-mutulised exchange with a permanent recognition from Government of India. Key shareholders of MCX are Financial Technologies (India) Ltd., State Bank of India, Union Bank of India, Corporation Bank, Bank of India and Canara Bank. MCX facilitates online trading, clearing and settlement operations for commodity futures markets across the country. MCX started offering trade in November 2003 and has built strategic alliances with Bombay Bullion Association, Bombay Metal Exchange, and Solvent Extractors. Association of India, Pulses Importers Association and Shetkari Sanghatana. National Multi-Commodity Exchange of India Limited (NMCEIL) National Multi Commodity Exchange of India Limited (NMCEIL) is the first demutualized, Electronic Multi-Commodity Exchange in India. On 25th July, 2001, it was granted approval by the Government to organise trading in the edible oil complex. It has operationalized from November 26, 2002. Central Warehousing Corporation Ltd., Gujarat State Agricultural Marketing Board and Neptune Overseas Limited are supporting it. It got its recognition in October 2002 Research Methodology Correlation Analysis Correlation analysis is a statistical technique used to measure the magnitude of linear relationship between two variables. Correlation analysis cannot be used in isolation to describe the relationship between variables. It can be used along with regression to determine the relationship between two variables. Thus it can be used as the basis for further analysis. There are two prominent correlation coefficients i.e. Pearson Product Correlation Coefficient and Spearmans Rank Correlation Coefficient. But in this report we have used the Pearsons method to compute the correlation. Pearson Product Correlation Coefficient It measures the strength of the linear relationship between two variables. This is also known as simple correlation coefficient and is denoted by r. The r value ranges from -1 to +1. If the r value is -1 than it indicates that there is the perfect negative relationship between the two variables. If the value is +1 than it indicates the perfect positive relationship between the two variables. If the value is 0 it indicates that there is no relationship between the two variables. It can be calculated as follows https://mathbits.com/mathbits/tisection/statistics2/IntroS7.gif Where r = correlation coefficient for the variables X and Y Regression Analysis Regression analysis is another statistical tool for measuring the association the between the two variables. It is the technique used to predict the nature and closeness of relationship between two or more variables. This method is different from correlation analysis. It helps to evaluate the causal effect of one of the dependent variable based on the information about one or more independent variables. Regression analysis that involves two variables is termed bi-variate linear regression analysis. Regression analysis that involves more than two variables is termed as multiple regression analysis. The bi-variate linear regression involves analyzing the straight line relationship between the two continuous variables. The bi-variate linear regression can be expressed as: Y=  Ãƒâ€šÃ‚ ¡ + ÃÆ'Ã… ½Ãƒâ€šÃ‚ ²x Y represents the dependent variable X represents the independent variable  Ãƒâ€šÃ‚ ¡ and ÃÆ'Ã… ½Ãƒâ€šÃ‚ ² are the two constants which are known as regression coefficients ÃÆ'Ã… ½Ãƒâ€šÃ‚ ² is the slope coefficient i.e. ÃÆ'Ã… ½Ãƒâ€šÃ‚ ² is the change in the value of Y with the corresponding change in 1 unit of X.

The Growing Issue With Childhood Obesity - 1237 Words

The Growing Issue With Childhood Obesity Carmen Solivan- Amengual American Public University The Growing Issue With Childhood Obesity Although childhood obesity is a serious issue, there has been a great decrease over the past decade, thanks to research on childhood obesity and programs that help decrease the number of children and adolescents who are overweight. Childhood obesity can have long term and lasting effects on the overall well-being of a child, including cardiovascular disease, high risk for development of diabetes, and other health issues for children and adolescents. Over the years, there have been several research done on childhood obesity and because of the research, several programs have been developed, so that childhood†¦show more content†¦The consensus on how to improve childhood obesity, is to increase the time spent daily on physical activity and to improve healthy and nutritional eating habits in children and adolescents. One research that focuses on reducing the number of children who are obese, is called The Childhood Research Demonstration Project (CORD). CORD’s main goal, on how to prevent childhood obesity, is to find out if interventions between the pediatric health care and the community, can reduce obesity in children and adolescents. CORD’s ultimate goal is to find out if children and adolescents can loss weight by increasing their physical activity and by eating fruits and vegetables, and drinking healthier beverages. Programs Already Available to help Prevent Childhood Obesity There are several programs available to help prevent childhood obesity. Programs like Fit Kids, Just for Kids, and Action for Healthy Kids are good programs that focus on helping children and adolescents stay healthy and increase their physical activity in school and childcare settings. Fit Kids is an afterschool program that promote healthy and active lifestyles, among children and adolescents, through youth fitness groups and with nutrition advice. According to fitkids.org, â€Å"By offering increased opportunities for physical activity among children, we hope to inspire an early love of sports and fitness that will serve as the foundation for a healthy

How Can Men and Woman Communicate More Effectively Through Technology Free Essays

How can men and women communicate more effectively through technology? * Women are more expressive when they type or text, on the other hand men aren’t as expressive . EX: women may use more punctuation or emoticons * Men should try to be expressive so that it doesn’t like they don’t care or to let the woman know they are listening and caring about what they have to say * Or, women should try to tone it down a bit with the seriousness of everything when everything doesn’t have to be so critical or over exciting for no reason * When communicating through texts or email, since women tend to be more expressive they tend to max out the the160 character message limit (news wise) * Men would probably listen more if they didn’t have to read such lengthy texts. Women should probably try to fit what they have to say in few words that still get their point across. We will write a custom essay sample on How Can Men and Woman Communicate More Effectively Through Technology or any similar topic only for you Order Now * The best ways of communication would obviously be face to face but next to that, technology like chat rooms and instant messaging and social networking sites make it easier for opposite sex to talk to each other. (eCommunications) * Takes away the stress and pressure of talking in person. If these are the ways men and woman communicate, they need to make sure that they think about the misinterpretations that could happen. To avoid the misinterpretation, men and woman should both understand that technology isn’t a real serious way of communicating just in case the whole misinterpretation gets in the middle of things and starts drama. * Sources: * â€Å"When Texting, Eligible Women Express Themselves Better.   Newswise: News for Journalists, Press Release Distribution for Public Relations. Indiana University. Web. 10 Nov. 2011. lt;http://www. newswise. com/articles/when-texting-eligible-women-express-themselves-bettergt;. * â€Å"Best Ways to Communicate Through Technolog y. †Ã‚  ECommunications. ECommunications. Web. 10 Nov. 2011. lt;http://efunsoft. com/best-ways-to-communicate-through-technology. htmgt;. How to cite How Can Men and Woman Communicate More Effectively Through Technology, Papers

Street Pizza Essay Example

Street Pizza Paper While driving to his office in Cabanas-e-Insist, Phase 6, Tanager Hussy was thinking about the good old days when he started 14th Street with his two best friends Invigilated and Maximum. Despite the amazing response that they initially got, the ship now seems to be quite in a bit of a lurch. Started by three best friends, 14th Street was supposed to be the next big thing. Being the pioneers of the 20 pizza they intended to knockout the pizza giants like Pizza Hut and Dominos and they were successful initially. But then woo of the partners, Navigated and Maximum jumped ship and went to Dublin to look after their other business and became the sleeping partners at 14th Street. Tanager now looks after all the operations alone and he is smart enough to know that things are not going as smoothly as he would like them to be. He is unable to control his costs and therefore he is forced to sell his pizza at a higher price than his other counterparts but he does not have much choice. Knee deep in payable he is unable to come up with a solution as to how to reduce his cost or justify the high price. We will write a custom essay sample on Street Pizza specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Street Pizza specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Street Pizza specifically for you FOR ONLY $16.38 $13.9/page Hire Writer He expanded his business to there major areas of Karachi thinking that that will help him in increasing his revenues but even that didnt work out as well as he expected due to growing number of pizza joints that offer similar product as 14th Street such as California, Broadway, and New York Pizza. The competition is really tough and the switching cost for the consumer is practically zero. So why should they buy, high priced, 14th street Pizza when they can easily go for a cheaper and similar brand? Adamant to not compromise on the quality of Pizza, Tanager is now looking for options that he can choose from to get back on firm grounds. He has assigned this task to his 6, highly qualified and motivated employees to come up with solutions to help this sinking ship get out of the thunderstorm and back on calm seas. They will be presenting their recommendations today and he is quite hopeful that their recommendations will be worth his time. Background Evolving from a traditional family recipe, 14th Street Pizza Co. Has come a long way. It was launched in Karachi, on 14th February 201 1 by three friends Tanager Hussy, Invigilated, and Maximum as partners sharing 40%, 30%, and 30% respectively. Two years before launching 14th Street Pizza, the friends had bought a franchise Of subway located at Shabby commercial DAD Karachi. The franchise is still up and running and has earned the reputation of the best franchise of subway all over Pakistan. 14th street pizza was the first brand in Pakistan to introduce 20 inch thick pizza, which was enough to serve maximum 8 people. They were also the Satirists joint to introduce customization of each slice of pizza. Before the launch of 14th Street Pizza, for 20 years, people only had few other options such as Pizza Hut and Dominos. People loved 14th Street Pizza and they got amazing response, more than they could handle. Initially 14th Street only got delivered in DAD and Clifton but after the amazing reviews and positive response they started their delivery operations in major areas of Karachi. Recently they have also started franchising. It was very hard to keep up with the thriving demand soon after its launch. Thats when the real test began, but they faced the challenge with gusto and were soon back on the table with a better team and a bigger kitchen. Today, more than three years later, 14th Street Pizza still tanks tall. The pioneers of the 20-inch pizza in Pakistan, 14th Street Pizza Co. Has grown from being a corner pizza delivery place in Karachi to one of the most recognized pizza delivery places, operating branches at 5 prime locations of Karachi: Cabanas-e-Shabby, Cabanas-e-Insist, KID, SMS, North Amazonian. 14th Street Pizza also operates in the Blue Area Of Islamabad and also recently launched in Manual. The first thing you notice about their pizza is the size. But thats just not it. Their motto is to use crust to give you fuller taste and an unforgettable flavor. Their aim is to use premium laity ingredients to give you a pizza that not only looks and tastes great but is also up to the highest standards of freshness and quality. They believe in providing their customers with an exceptional customer service and believe that their customers are their driving force and would like to make sure that they are 100% satisfied with their products. A passion for pizza and an unending devotion to keep delivering the biggest, yummiest pizza in town, fuelled by the love, encouragement and feedback of their fans, gives 14th Street Pizza co. He power to expand beyond belief. Pakistani Pizza Market Pakistani food industry has witnessed an exceptional growth over the years. Food industry in Pakistan shares 17% of the total GAP. A major chunk of this growth is coming from the local pizza market which includes big multinational names such as Pizza Hut, Dominos, and Broadway, as well as local pizza brands such as 14th street pizza, California pizza, Pizza next, Pizza point etc. Trends in the Industry The pizza trend has entered into mainstream. It all started when Pizza Hut introduced its business in Pakistan in 1993. Pizza hut is considered as the pioneer in the pizza market and has remained a dominant player since. To penetrate into the market further they have tailored their menu to local taste by introducing flavors such as chicken tike, shakable etc. After Pizza Hut, Dominos Pizza and Papa Johns entered the pizza business and things psychoanalytically. Five to eight years later if we talk about the growth of pizza business in Pakistan there were only two established names in the business that were both multinational chains, Pizza Hut and Dominos. However, the market developed significantly in the last few years and to cater to the appetite of pizza lovers many new local players have launched their operations. Market statistics According to a recent statistics fast food industry is the second largest in Pakistan, with approximately 16. 9 million consumers. The consumption level of food mainly depends upon the number of consumers and their income level. Pakistanis total population is growing with a yearly population growth rate of 1. 67%. Out of the total population of Pakistan 37% are the urban and 63% rural with different income classes. Exhibit Shows the size of different classes In the urban population. About 17 million people are in the upper or upper middle class who can actually afford fast food. The average person spends 47. 7 percent Of his or her household budget on food consumed at home. Only less than 2% of Pakistanis total population spends on fast foods regularly. Current Market Situation We have recently seen the success ventures of food portals like EAT EYE and FOOD PANDA. The food portals have made the life of consumers very easy by providing them with both the discounts as well as quick delivery. Pizza companies got a huge benefit through this as consumers get more attracted towards their product. Country like Pakistan is still following the incept of cooking the food at home, if we observe countries like US and KICK their fast food market is far bigger than us because of the fact that their busy households now prefer to eat outside rather than cooking food at home. Slowly and gradually Pakistanis urban population is also adopting the same trend and this is the reason why these fast food chains earn massive profits with an even higher future revenue forecasts. STOW Analysis Strengths Weaknesses The high quality of the ingredients that are used in making 14th street pizza. Pioneers of the 20 Pizza category in Pakistan and have managed to build a potable brand name. High focus on customer service and on time delivery of Pizza. Highly customized slices to cater to the different tastes of the consumers. They dont have any service restaurants like Pizza Hut, Dominos and California Pizza. Lack of awareness about 14th street as it is still not a very known brand in some parts of Karachi. Opportunities The reads Opening kiosks in shopping malls and food courts. Open up service restaurants to attract consumers who want to dine out. Add more variety to their menu such as pasta and lasagna. Continuous innovation in tastes and sizes to keep the customers interested y offering them something new. Introduce customer loyalty program for brand loyal 14th Street lovers. An increase in the trend of online ordering because of food portals like Food Panda and Tattoo. Poor economic conditions forcing people to dine out less. Increased prices Of ingredients, which subset intently increases the cost Of product thus reducing the profit margins. Low switching cost for consumers between brands. Availability of Cheaper substitutes. Rise in number of competitors offering the same product. Competitors Analysis Competition for pizza takes into account direct competitors as well as indirect motorists (substitute products like burger, steaks,pastas etc. ). Pizza market has developed considerably in a last few years and several local and international players have come into play. 4th street pizza in the first few years of its business has received a great deal of fame and earned a name for itself mainly due to the ingenuity and uniqueness of their content. Let purely deals in home delivery and takeaway. Amongst local competitors its is the brand with highest market share but overall it ranks number 3 with 10% market share According to the CEO of 14th street pizza The daily intentions, the engaging interactions and t he high stakes giveaways are all proofs of the ways in which we seek to delight our customers and ensure that we stay the top of the mind brand when one thinks of ordering pizza. Pizza Hut Pizza hut first started its operations in 1958 and entered Pakistan in 1993. They are the pioneers of pizza in Pakistani market and are also the biggest player when it comes to dine in because of its delighting pizza and spacious restaurants with good ambiance and comfortable atmosphere. Being a pioneer it has got the largest share in market but its sales are plummeting cause of the prevailing trend of large pizzas. Their social media presence, stands at around 900,000 followers as compared to 14th Street Pizza reaching a million fans on their Faceable page in the same month. Since its inception Pizza hut is known to be the market leader even today it holds 35% of the total pizza market followed by another international brand, Dominos which stands at number 2 with 20% market share. Broadway Pizza It started its operations initially in Lahore after getting a positive response from there it recently launched in Karachi. With amazing sidelines, stirring labors and huge size Broadway is getting popular among scratchiest and the market share of Broadway pizza has reached 9% a little lower than that of 14th Street Pizza. It has got an active website and worth using Faceable page. It also offers the most lavish toppings. There is fierce competition been Broadway and Pizza Point, which also has a 9% of the total market share. The New York Pizza The New York Pizza is popular for its large thin crust foldable pizzas. They offer delicious toppings and sauces besides delivering Gingko pizza. New York is widespread and much known with much lower market share than Aziza hut and slightly lower than 14th street pizza. It has around 22,000 Faceable fans with 5% market share. California Pizza To know if California pizza is a good option one needs to go its main location that is next to Dominos in Abdullah. This outlet is always flooded withheld. It offers as big as 20 pizza and has good service restaurants besides having feasible rates. California pizzas user-friendly website and promotional activities on Faceable page with 1 90,462 likes helps surge its sales. In Exhibit ahoy can see the comparative prices of a standard large pizza of the competing brands. Comparison Between Competitors We took a sample size of 67th of which 29 were students, 30 jobholders, and 3 businessmen. After analyzing the results of our research, we found out that despite being a high priced product most of the respondents believe the price of 14th street pizza to be justified. We conclude that there are several reasons for this perception such as the quality, size, and taste of 14th street pizza. As an individual brand people have the following perception about dustsheet: 54% of the respondents think that the price of 1 4th street pizza is good, that is justified. % of the respondents think that the Quality of 14th street is excellent and 42% think it is good, which makes the majority of the respondent. 45% of the respondents think that the taste of 14th street is excellent and 37% think that it is good, which is again the majority of the respondents. 52% of the respondents think that their service is good, while 27% think that this it is excellent. We compared 14th street with the following pizza joints: Pizza Hut Dominos Broadway New York We compared these on the following attributes: Quality Price Taste Service Size And came to the following conclusion: QUALITY If we compare the result of 14th street with the rest of the Pizza joint we can clearly see that it surpasses all other brands in terms of quality according to the respondents. With Pizza Hut being the second best choice. PRICE At this the results were pretty much the same for all other brands but respondents believe that 14th street pizza is slightly high priced as compared to other brands as 31 % of the respondents ranked it at 4 and 22% of the respondents ranked it at 5 (5 being the highest). TASTE 14th Street got the highest ranking in terms of taste as 45% of the exponents ranked it 5 and 30% ranked the taste of 14th street at 4. While Dominos, California Pizza, New York Pizza, and Broadway Pizza got the highest ranking around 3, which signifies average taste. SERVICE 43% of the respondents ranked 14th street 4 for service and 30% ranked it 5 (5 being the highest). Again we can see that that Dominos, California, New York and Broadway got the highest ranking around 3, which signifies average service in comparison to 14th Street. SIZE From the result it is clear that when it comes to size, the first name that comes to people mind is 14th street. Although Broadway, New York and California pizza Offer the same product but 14th street got the highest ranking in comparison to all. Whats Wrong With 14th Street? 14th street pizzas biggest problem is their higher pricing compare to their competitors, and reason is not that it is a premium brand, but its because their food costs and their expenses are so high that they have to reflect some it in their prices. In Exhibit ewe kept their most selling product, which is Full 20 inch pizza as a benchmark, to estimate the rough impact of their costs on the prices. Currently the price of 20 full pizza is RSI. 899. By seeing Exhibit 3 one can infer that providing best quality of ingredients is the prime focus of 14th Street Pizza. Mozzarella cheese, which is the most expensive ingredient of all, gets 24% of the price. Mozzarella cheese is imported from France of the brand Aerial; it is one of the top used mozzarella brands all over the World. Even the chicken topping used in their Pizza is supplied by the top chicken quality providers KNs. The management of 14th Street is not at all in the favor of reducing the quality of the Ingredients they use in order to cut down their overall costs. Losing their current customer base as a result of using lower quality ingredients is something that they cannot afford. A brief detail of the rest of the monthly expenses can be seen in Exhibit 4. Number of Employees 14th street pizza currently has around 400 riders, 250 kitchen and commissary labors, and 30 professional employees. 5. Million rupees in monthly payroll is still a very high expense for a small local brand like 14th Street. Marketing Expenditure They are also keen on advertising their brand and products through appropriate channels they could use to reach to their target market, usually hey are spending on streamers, billboards, and most of all social media where their actual target market is present. Utilities Their utiliti es are supposed to be higher because big machineries like Pizza ovens and room size chillers, those all are running on electricity. Payable The other pressing problem for the management is their increasing payable. They owe their food suppliers around 25 million rupees and rest to equipment and oven providers. These payable also reflect on their pricing strategy. Outsourcers In order to make up for the lost revenues, 14th Street also started to outsource their marketing and IT services to other business. This might seem like a good move but can have long term implications. Recommendations In light of all the above-mentioned problems of 14th Street Pizza, the team of six came up with the following recommendations: 14th street needs to stop providing their services to other businesses as outsourcers. This will not only help them focus more on their own operations but it will also allow the top management to right size their business and only keep the employees who add value to the companys operations. This action will subsequently lead to a significant decrease in their monthly salaries, which is a massive burden on a company as small as 14th street. The management should clearly write down the objectives that they want to achieve through their pricing strategies. Since they are already selling their product at a loss, bringing down their prices is not an option that they can avail. The next best thing that they can do is to position their product as a premium Pizza brand. They can achieve this through proper communication and marketing strategies. According to Exhibit 2, the prices of the competitors such as New York and Broadway Pizza re exactly the same bringing the price any higher than this might result in loss of existing customer base since the cost of switching for a consumer is practically zero. Focus on market penetration so as to increase the entry barriers of new entrants. Make the most of the food delivery portals such as Food Panda and Tattoo to attract more and more customers towards their brand by offering different deals. Increase communication and communicate to the consumers why they should go for 14th street instead of Broadway, New York or California Pizza. Low-end Pizza joints such as Pizza Hut, Pizza Point, Pizza Max, etc. Are a serious threat. They are not only lower end but they also cater to a large population that cannot afford expensive pizza brands.

Kapital essays

Kapital essays When one gets down to the roots of capitalism you find that it is a form of government that allows the rich to get richer, the poor, poorer and the middle class to stay the same. Karl Marx wrote a book, Kapital about the what capitalism does to the people in a society, how it takes the humainty out of being and replaces it with x. Not only does it do that but it creates a chain of commodities, fetishisis, and alienation within a society. Commodities are at the top of this chain. A commodity is anything that is produced for exchange. They have two parts to them, the use of the commodity and its value. With women, and men the use of the human body is humanity, doing whatever it is that pleases you, whether it be riding your bike, reading, dancing, whatever, it comes down to your humanity. Their humanity is turned into a value when women have to sell their use to obtain different forms of commodities, to then exchange those commodities for more commodities. In capitalism women are defined by their bodies, and judged by what their bodies can do, and look like. Women have to sell their humanity because in capitalism thats the only thing people have to sell. In capitalism it doesnt matter who or what you are, as long as youre producing something that will make money. Women sell their humanity in different ways, there seems to be a same scale in place with womens jobs, modeling (which is at the far right), stripping (somewhere in between), and prostitution (which is at the far left). Most wouldnt connect these three with having any basic ground (maybe stripping The outcome that that has is profound. Not only does it effect women, and girls, it effects boys and men. Their images of women become so distorted that ...

Toltec Weapons, Armor, and Warfare

Toltec Weapons, Armor, and Warfare From their mighty city of Tollan (Tula), the Toltec civilization dominated Central Mexico from the fall of Teotihuacn to the rise of the Aztec Empire (approximately 900-1150 A.D.). The Toltecs were a warrior culture and fought frequent battles of conquest and subjugation against their neighbors. They warred in order to take victims for sacrifice, expand their empire and spread the cult of Quetzalcoatl, the greatest of their gods. Toltec Arms and Armor Although the site has been heavily looted over the centuries, there are enough surviving statues, friezes and stelae at Tula to indicate what sort of weapons and armor the Toltecs favored. Toltec warriors would wear decorative chest plates and elaborate feather headdresses into battle. They wrapped one arm from the shoulder down in padding and favored small shields which could be quickly used in close combat. A beautiful armored tunic made of seashells was found in an offering in the Burned Palace at Tula: this armor may have been used by a high-ranking soldier or king in battle. For ranged combat, they had long darts which could be launched with lethal force and accuracy by their atlatls, or javelin throwers. For close combat, they had swords, maces, knives and a special curved club-like weapon inlaid with blades which could be used to batter or slash. Warrior Cults For the Toltecs, wars and conquest were closely linked to their religion. The large and formidable army was likely composed of religious warrior orders, including but not limited to coyote and jaguar warriors. A small statue of a Tlaloc-warrior was unearthed at Ballcourt One, indicating the presence of a Tlaloc warrior cult at Tula, much like the one that was present at Teotihuacn, the predecessor of the Toltec culture. The columns on top of Pyramid B are four-sided: on them they show gods including Tezcatlipoca and Quetzalcoatl in full battle gear, providing further evidence for the presence of warrior-cults at Tula. The Toltecs aggressively spread the worship of Quetzalcoatl and military conquest was one way to do so. The Toltecs and Human Sacrifice There is ample evidence at Tula and in the historical record that the Toltecs were avid practitioners of human sacrifice. The most obvious indication of human sacrifice is the presence of a tzompantli, or skull rack. Archaeologists have unearthed no fewer than seven Chac Mool statues at Tula (some of which are complete and some of which are only pieces). Chac Mool statues depict a reclining man, belly-up, holding a recipient or bowl on his abdomen. The recipients were used for offerings, including human sacrifices. In ancient legends still told to this day by locals, Ce Atl Quetzalcoatl, the god-king who founded the city, had a dispute with the followers of Tezcatlipoca, mostly about how much human sacrifice was needed to appease the gods: the followers of Tezcatlipoca (who favored more sacrifices) won the conflict and were able to drive Ce Atl Quetzalcoatl out. Military Iconography at Tula It seems that nearly all of the surviving art at the ruined city of Tula has a military or warlike theme to it. The most iconic pieces at Tula are by far the four Atalantes or mighty statues which grace the top of Pyramid B. These statues, which tower over visitors at 17 ft. (4.6 m) high, are of warriors armed and dressed for battle. They bear typical armor, headdresses, and weapons including the curved, bladed club and dart launcher. Nearby, four pillars depict gods and high-ranking soldiers in battle dress. Reliefs carved into benches show processions of chieftains in battle gear. A six-foot stela of a governor dressed as a priest of Tlaloc bears a curved mace and dart launcher. Conquest and Subject States Although historical data is scarce, it is likely that the Toltecs of Tula conquered several nearby states and held them as vassals, demanding tribute such as food, goods, weapons and even soldiers. Historians are divided concerning the scope of the Toltec Empire. There is some evidence that it may have reached as far as the Gulf Coast, but there is no conclusive proof that it extended more than a hundred kilometers in any direction from Tula. The post-Maya city of Chichen Itza shows clear architectural and thematic influence from Tula, but historians generally agree that this influence came from trade or Tula nobles in exile, not from military conquest. Conclusions The Toltecs were mighty warriors who must have been greatly feared and respected in central Mesoamerica during their heyday from about 900-1150 A.D. They used advanced weapons and armor for the time, and were organized into fervent warrior clans serving different ruthless gods. Sources Charles River Editors. The History and Culture of the Toltec. Lexington: Charles River Editors, 2014.Cobean, Robert H., Elizabeth Jimà ©nez Garcà ­a and Alba Guadalupe Mastache. Tula. Mexico: Fondo de Cultura Economica, 2012.Coe, Michael D and Rex Koontz. 6th Edition. New York: Thames and Hudson, 2008.Davies, Nigel. The Toltecs: Until the Fall of Tula. Norman: the University of Oklahoma Press, 1987.Gamboa Cabezas, Luis Manuel. El Palacio Quemado, Tula: Seis Decadas de Investigaciones. Arqueologia Mexicana XV-85 (May-June 2007). 43-47Hassig, Ross. War and Society in Ancient Mesoamerica. University of California Press, 1992.Jimenez Garcia, Esperanza Elizabeth. Iconografà ­a guerrera en la escultura de Tula, Hidalgo. Arqueologia Mexicana XIV-84 (March-April 2007). 54-59.

THE FINANCIAL RATIO ANALYSIS ASSIGNMENT Essay Example | Topics and Well Written Essays - 1000 words

THE FINANCIAL RATIO ANALYSIS ASSIGNMENT - Essay Example The values projected by current ratio of Wiman company postulate that it is able to meet its financial obligations. However, its ability is limited to some percentage; for instance in the year 2012, it was only able to meet 8% of its total debts and obligations The analysis reveals that the company is making loses apart from the year 2011. This could be as a result of more money paid out as dividend and recurrent expenditure. Decisively, the company is not generating sufficient income. Between the financial year 2010 and 2013, the fixed asset turnover ratio has been constantly improving a clear indication that the company is using its internal resources effectively. However, a slight decrease has been recorded in the year 2013. In year 2011, the company paid only 15% of its total income as dividend. However, the percentage has been steadily increasing with up to 131% in the year 2013. While a higher percentage of dividend may look good, it is unsustainable and that is why market prospects my get scared form investing in the