Your marketing sucks an Example of the Topic Business Essays by

Your marketing sucks 'Every marketing dollar you spend should bring in more than 1 dollar in return', saysStevens in his blunt-titled book, Your Marketing Sucks. The author, Mark Stevens, who is anentrepreneur and CEO of MSCO Inc., argues that most companies don't have a clue aboutgood marketing. According to Stevens, most marketing amount to 'throwing thousand-dollarbills out the window'. That if the money spent on marketing is not bringing in money, thenthe marketing sucks. When an ad agency starts bragging about Clio Awards received, Stevenswrites, fire them. They should be in the business world to create attractive ads and logos thatwill generate sale out of the marketing activity. Stevens drives out that knowing the best wayto achieve the company's overall objective, is the work of an Extreme Marketer. An ExtremeMarketer is someone who gets a return of investment from her extreme marketing activities. Need essay sample on "Your marketing sucks" topic? We will write a custom essay sample specifically for you Proceed Extreme marketing, according to Mark Stevens, is a process by which one will determinehow much will be spent on effective marketing campaign strategy and receive a positivereturn on the investment. The benefit would be-increase in income and it follows that there isbusiness growth. The business will have an increase in value which is the true measure of asuccessful business venture.. This book will teach the readers how to become an Extreme Marketer by touching onboth strategy and tactics. In a reasonable term and through examples, Stevens provides hisphilosophy on modern marketing and practical advice on how to fix the problems.. In YourMarketing Sucks, Stevens shows how to formulate an innovative and effective marketingplan and then check on the results. Spending a marketing budget should ensure that there is ameasurable return on marketing expenditure. This is an important book as a reference andguide for anyone who is interested to be a business owner whether his company is small orlarge. Business investors will know how to spend their money wisely and get a good returnon their investments. Reference List Mark Stevens (2003).Your Marketing Sucks: New York: Crown Business.

Changing the Voting Structure essays

Changing the Voting Structure essays As a minority in the United States, Black people start off from a disadvantaged position from birth. Racism, prejudice, and systematic manipulation of economic, social, and educational structures in the United States lead to securing the disadvantaged position that black people maintain. The role and impact of majority rule, single member districts, and Black representation will analyzed in its effects on Black Americans in a watered down Democracy. In contrast solutions such as interest representation, cumulative voting and super majority rules will be discussed and analyzed to interpret what impact they could have on the current system if any. Majority rule is defined as "the proposition that 51% of the people should be able to get whatever they want" (Guinier xvi). Guinier points out several problems with majority rule, which include: a disproportionate distribution of power, voter dilution, and racial polarization within the legislature. These all serve to point out the fact that majority rule is not a just form of rule. Guinier hypothesizes that in order for a rule to be fair, "it must comport with the stability, accountability, and reciprocity assumptions." In light of that, Guinier says, "A system in which a permanent and homogeneous majority consistently exercises disproportionate power is neither stable, accountable, nor reciprocal." Examples of such unjust majority rule would be how certain cities are drawn into districts in order to maximize legislative power. Guinier points out a situation that includes 1000 voters within a ten-seat jurisdiction. Within that jurisdiction the legislature passes laws by a simple m ajority of six votes. If a small minority of like-minded people spread across the 10 seats ban together, they can win a majority in the legislature without having a majority of voters in the popular vote. Is it fair that the minority can rule out the wishes of the majority through trite manipulation of a sys...

Article brief Example | Topics and Well Written Essays - 750 words

Brief - Article Example The methodology used by the study to come up with a fraud model involved three steps. The first step was to data of a public company from 1995 to 2002. A sample of 100 companies was split into fraud and non-fraud companies (McKee, 2014). The third step was to test 15 predictive variables to determine those that were good predictors of fraud status. The fraud companies were selected from SEC Enforcement Release that provided publicly reported fraud. Non-fraud companies were matched with the fraud companies in terms of three criteria including market value, positive change of 25% in net income, and standard industrial classification (McKee, 2014). The predictive variables were derived from prior research literature. Analysis of the data involved binary logistic regression using fraud status as the variable to be predicted. The variables used when analysing the 15 predictive variables include company size, auditor tenure, and McKee-Lensberg bankruptcy probability. The fraud model was tested with 91 companies which were in the original sample. The other 9 companies not included in testing did not have data for at least one of the three variables used to analyse the predictive variables (McKee, 2014). A company with fraud probability greater than 50 was regarded as a fraud company while a company with less than 50% probability of fraud was regarded as a non-fraud company. The results of the study are that the model predicted 63 of the tested companies’ fraud status correctly. This reflected 69.2% level of accuracy. The model also predicted fraud status of 28 companies incorrectly, reflecting 30.8% rate of error. This model can be compared favourably to the fraud model developed by Alden et al (2012) which showed 75% accuracy of training rates and 64% accuracy of validation. This article is important because it provides a fraud model that can be used by auditors to develop standards

High tech building design Essay Example | Topics and Well Written Essays - 2750 words

High tech building design - Essay Example This research will begin with the statement that hi-tech building design refers to architectural designs and services that involve the use of advanced technology thereby improving the functionality of the final product. In simple terms, it is a particular style of building. In industries, it involves the use of machines to attain quality products. These machines use modern technology like computers, electronics and robots to help companies achieve their goal. Hi-tech building design has risen from modern architecture, incorporating elements of the latest technology in building designs. These include; prominent show of building techniques and functional components, decent alignment and use of sophisticated materials such as metals, glass and futuristic shapes. In the past, building industry has applied technologies that made building designs complicated, these made it difficult for man to design buildings of their needs. Heat regulation systems in these houses were very poor since the ventilations provided were insufficient and could not effectively control internal temperatures. With regards to hi-tech designs, several equipments have been invented to effectively solve the problem of heat in buildings and have also helped solve issues of human thermal complaints both at homes and in offices. Thermal complaint had been declared a major drawback to economic development. People claimed that it was because of thermal problem that they did not perform well in their endeavors and this called for a pragmatic approach towards this nuisance. Fans have been installed in buildings to regulate heat in regions where there have been a lot of heat; heaters have also been installed in the buildings which experienced a lot of cold like the Polar Regions. These products of hi-tech design have rendered redundant, thermal disruptions which are now considered a thing of the past. Representation and function Architects rely entirely on this technology for production of feasible stru ctures. It is also applied in industries, transport, flight, communication and space travel. It aims at eliminating burdensome materials such as; bricks, concrete blocks used in the construction industry and introduce steel which increases the life span of the structures. Glass, which is responsible for the aesthetic aspects, is also embraced by this technology. The introduction of steel and glass was meant to enhance the function of the final product in order to catch up with the technologies of other sectors, which keep on improving each day depending on the core materials used for production in those sectors. Buildings have always lagged behind since the materials used in productions are inflexible and not easily changeable. For instance, concrete has proven to be the most suitable material used in construction, even though it withstands compression, it fears tension and must therefore be reinforced using steel. Originally, hi tech technology was termed as malicious, ill motive i ntended to dislodge employees from their duties. With time though, its good intentions have conspicuously come to light and has quickly been embraced the world over. It has played a major role in employing double the number that was initially engaged in these particular sectors of the economy. Moreover in the building industry,

CHINA'S TERMS Coursework Example | Topics and Well Written Essays - 500 words

CHINA'S TERMS - Coursework Example After the objective is brought forward, rules and regulations can be easily set up and the foreign policies can be well dealt with (Tutor2u.net, 2014).  . It is usually stated that the companies might lose the market share if it decides that to let go of a new or international market. Although, the ethical and moral beliefs state differently. It is believed in their case that it is not appropriate to work alongside collective governments. In case the company decides to leave the market due to some reasons then the rival business will take the advantage and step up to get a hold of a higher market share. Entering the market later makes it harder for the companies to gain a higher market share or at times a moderate market share. I believe that the company should not transfer their technologies and hence prefer the first option that can prove to be the best for companies. The market in China is increasing in volume and is has a growing market. The companies as a result aim at protecting and safeguarding their own sales and thus, stay put to their production methods. The transfer of technology can be both time consuming and costly. China can, however, provide the company with good business but it is also true that the companies can prefer other countries to set up their production factories at, as they are only assumed to be the customers of Chinas product

Impact of Islamic Banking on Consumer Financing Sector

Impact of Islamic Banking on Consumer Financing Sector Abstract This study finds out the realistic or any factual impact caused by the introduction of Islamic Banking on the consumer financing sector generally, while keeping its main focus explicitly on House Financing and Car Financing through banks in Pakistan. The total banks involved in consumer financing whether Islamic or Conventional where included in this research, keeping 2003 as the base year of data initiation. Since 53% of Consumer financing was being defined by House and Car financing so they were kept in focus. Independent T-Tests were run on the investments as well as the growth of both the sectors that is Islamic and Conventional banking sectors. The data was collected from the Statistical Data Ware House Department of State Bank of Pakistan. The results show that the variances in the investment sectors of both Islamic and Conventional differed from each other where H0 was rejected on the basis of value of t stats where as in the growth comparison the variances were said to be sa me at 10% significant level but the means of growth stood at 29% and 9% in cases of Islamic and Conventional banking respectively proving the positive impact of Islamic Banking on Consumer Financings bulky sector of House and Car Financing in Pakistan . In case of any incongruity to State Bank of Pakistan or the AAOFI standards, the latter shall prevail. Chapter one: Introduction The intent to write this research was to undermine the factual understanding as well as affect caused due to the introduction of Islamic Banking in Pakistan. It was acclaimed by the people related to the industry that Islamic Banking had positively affected the banking sector here and across the globe. The numbers were quoted and percentages claimed but no real research supported the declarations. So the author thought of doing a research to dwell on the issue and conduct a research with respect to Pakistan hence, configure the true standings of the conterparts known commonly as Islamic Banking and Conventional Banking. Islamic Banking though has a mere institutionalised history of 35 years across the globe but has gained tremendous recognition in this short tenure which shall be wittnessed in the literature review ahead in this paper. The evolution of Islamic Banking in Pakistan started as late as 2000 01 after the historical judgement of the Supreme Court of Pakistan in1999 against the prevailing interest based banking system. The Islamic banking emerged, though after a valiant effort which continued over two decades prior to its surfacing. Different reports, articles, awareness sessions, books and other relative material endowed to this very existence of Islamic Banks in Pakistan. Though the clouds of uncertainity have lingered on this newly instigated initiative ever since its emergence, but then again that has always remained a norm for innovative things in Pakistan. Though Islamic Banking has come a long way after its start almost a decade ago but it still has a lot to prove to its spectators with respect to shariah compliance and market effectiveness in the Pakistans lucrative but stingent souk. Consumer Financing is a sector which has its part of exuberance attached to it in the banking and financial sector. When ever the financial markets are flooded with accessive liquidity the first thing that magnetizes the banker is the consumer financing sector specially in Pakistan where the yeilds were as high as 15% on proceeds. The magnitude of House and Car finance together tend to weigh around at almost 53% of this sector so the proceedings in this neighborhood can be established by analysing these mentioned sectors. In view of the fact that the House Car financing sector provide a level playing field for the conterparts that is Islamic and Conventional players, was another reason for this assortment. In the paper further the comparative analysis is conducted as well as the background of both Islamic Banking and Finance with Consumer Financing has been discussed in comprehensive detail. Statement of the Problem Islamic Banking ever since its emergence in Pakistan has raised eyebrows of related and non related players. Is there a difference? Which banking system shall prevail? Does Islamic Banking have enough weight to outset its conterpart? Can Islamic Banking loose the tag of being a parellel banking system and become the prefered banking operation in Pakistan? The researcher answers to these questions in the light of the literature review as well as by testing the viability of Islamic Banking sector to its conterpart Conventional Banking in the asset backed sectors of House and Car finance (through banks) in Pakistan. Objective Basic purpose of this research is to determine the differential impact of Islamic Banking in contrast to Conventional Banking on House Car Financing through Banks in Pakistan. Research Model Hypotheses H0: Islamic Banking does not impact House Car Financing through Banks In Pakistan. H1: Islamic Banking directly impacts House Car Financing through Banks In Pakistan. Chapter Two: Literature Review This segment will appraise the comprehesive literature review with respect to Islamic Banking globally while Consumer Banking Sector in Pakistan. Islam as a Code of Life Islam acclaims its self to be a Deen which provides a complete code of life to its practitioners. According to its claim Islam not only helps its followers rather also those who seek for help without believing in its core essence for day to day hinderances. May it be a name for a believers child or be it the purpose of life, Islam alone tends to answer to all the versatile queries of its disciple. This is the beauty of Islam but it can only lead to enlightenment only if all the resources of Islam are kept in view or an adherent may astray from the righteous path. The main resources of Islam can be categorized as follows: Quran e Karim The Holy Book sent upon Hazarat Muhammad Ahadith e Mubarakah (Sayings of Hazarat Muhammad) Shariah (Implementation of Islam) Lives of Hazrat Muhammad and the Sahaba (Companions of Hazarat Muhammad) Hence the Deen, Islam, can be categorized into three main branches: Beliefs (Aqaaid) Reformation and Rectification (Tassawuf) Islamic Laws and Principles (Fiqha). Since my paper would be coming under the third bough of a healthy hierarchy, that is, Islamic laws and Principle Jurisprudence (Fiqh). Further elaborating this division known as Fiqh (Islamic Laws and Principles) can be further sub-divided into the following sections: Prayers (Forms of submissions to Allah Tallah, Ibadaat) Societal or Civil Laws (Maamlaat) Criminal Laws Constitutional laws Since my paper discusses the Societal or Civil laws (Maamlaat) or rather absolutely specifying it would be dealing with financial aspects of this vast sub branch of Fiqh. Coming to the financial aspects of a Muslim or even an Oriental who believes in the fairness of Islamic laws, the main concern of this individual is to abide by Islamic law and principles while earning bread and butter for himself and his family. The things permissible by Islamic Jurisprudence are referred to as Halal while the things that are prohibited in Islamic Fiqh are known as Haram. It is by obligation that a Muslim or even an Oriental who believes in Islamic laws can earn his living only through Halal ways. One way of distinguishing Halal is by identifying the prohibitions while the rest remains permissible. Prohibitions in Islam for Financial Procedures The two of the main ills identified by Islam in financial procedures are: Riba (Interest) Gharar. Riba (Interest) In perspectives of Shariah money is considered to be a assessing means for value or worth rather than an asset within itself, it necessitates that an investor should not be able to obtain income from capital (or everything that is treated as a kind of money) alone. This production of money from money (commonly known as interest) is Riba, which is prohibited in Islam. Prohibation of Interest (Riba) in Quran Following are the verses where Quran has out rightly identified interest as a prohibition. In the following verse our Creator nullifies the visual increase of wealth earned through interest. And whatever Riba you give so that it may increase in the wealth of the people it does not increase with Allah Subhanahu Tallah (30:39) At another place it has been identified that the Jews werent allowed to indulge in interest. And because of their charging Riba while they were prohibited from it (4:161) A verse which identifies the prohibition of interest and its form whether it be compounded. O those who believe do not eat up Riba doubled and redoubled (3:130) Ribas eminent prohibition can be seen in the following verse while at the same time the permissible alternative of trading has been offered. Another important factor which can be witnessed here is that giving of charity is being encouraged while interest is being regarded as a curse. Those who take Riba (usury or interest) will not stand but as stands the one whom the demon has driven craze by his touch. That is because they have said: Trading is but like Riba and Allah Subhanahu Tallah has permitted trading and prohibited Riba. So, whoever receives an advice from his lord and stops, he is allowed what has passed, and his matter is up to Allah Subhanahu Tallah . And the ones who revert back, those are the people of fire. There they remain forever. Allah Subhanahu Tallah destroys Riba and nourishes charities. And Allah Subhanahu Tallah does not like any sinful disbeliever. Surely those who believe and do good deeds, establish Salah and pay Zakah, have their reward with their lord, and there is no fear for them, nor shall they grieve. O those who believer, fear Allah and give up what still remains of Riba if you are believers. But if you do not, then listen to the declaration of war from Allah and his messenger. And if you repent, yours is your principal. Neither you wrong, nor be wronged. And if there be one in misery, then deferment till ease. And that you leave it as alms is far better for you, if you really know. And be fearful of a day when you shall be returned to Allah, then everybody shall be paid, in full, what he has earned. And they shall not be wronged. (2: verses 275-281) Identifying one of the greatest ills of Interests concentration of wealth the rich becoming wealthier and the poor becoming underprivileged, the verse tends to unfold one of the many aliments caused by going against the prohibition. So that this wealth should not become confined only to the rich amongst you.(59:7) During the tenure of 1984 to 1994, $ 719 Billion dollars were sanctioned as interest based loans while $ 749 Billion were returned during the same tenure still leaving behind a liability of $ 1258 Billion. 225 people possess 47% of the wealth of the world at the same time 1 Billion and 30 Million people earn $ 1 daily while 32% of the population of this world earns $ 4 daily. These facts show that the present financial system has the above mentioned illness known as the concentration of wealth. Prohibation of Interest (Riba) in Hadith The second source of Islam is the sayings of the Holy Prophet MuhammadSallalaho Alaihi Wassallam. Ahadith of ProphetSallalaho Alaihi Wassallam which are on the prohibition of Riba (Interest) are as follows: In the following Saying the excess on either sides is regarded as riba. Gold for gold, silver for silver, wheat for wheat, barley for barley, date for date, salt for salt, must be equal on both sides and hand to hand. Whoever pays more or demands more (on either side) indulges in Riba.1.( Sahih Muslim, Karachi, V.2, P.25) As per the following saying commercial interests existence is exhibited. Ibn Juraij says: in the pre-Islamic period, the tribe of Banu Amr bin auf used to take interest from the tribe of Banu-al-Mughira, and the Banu-al-Mughira used to pay this interest. When islam came,the later owned considerable amount of money to the former. And further on:the Banu-al-mughira used to pay interest to Banu-thaqif. All the people involved in the transaction of riba are found to be guilty and at fault as per quoted saying below. From Jabir: the Prophet,Sallalaho Alaihi Wassallam, may cursed the receiver and the payer of interest, the one who records it and the two witnesses to the transaction and said:they are all alike [in guilt] (Muslim,Kitab-al-Musaqat, Bab lani akili al-Riba wa mukilihi;also in Tirmidhi and Musnad Ahmed) The implication or the inference of sins that a person attains on indulging himself in interest based transactions is emphasized in the following quotes. FromAbdullah ibn Hanzalah:the Prophet,Sallalaho Alaihi Wassallam,said : a dirham of Riba which a man receives knowingly is worst than committing adultery thirty-six times(Mishkat al-Masabih, Kitab al-Buyu,Bab al -Riba,on the authority of Ahmed and Daraqutni) From Abu Hurayrah: the Prophet,Sallalaho Alaihi Wassallam said: Riba has seventy segments, the least serious being equivalent to a man committing adultery with his own mother.(Ibn Majah) Interest based transaction reap no profits here or hereafter. The misery that one is bound to go through after death just for indulging himself in interest based proceeds in visible in the following quote. From Abu Hurayrah: the Prophet,Sallalaho Alaihi Wassallam, said: On the night of Ascension I came upon people whose stomachs were like houses with snakes visible from the out side. I asked Gabriel who they were. He replied that they were people who had received interest ( Ibn Majah, Kitab al-Tijarat, Bab al Taghlizi fi al-Riba; also in Musnad Ahmad) Prohibation of Interest (Riba) in Bible It is not that only in Islam, interest is prohibited even in Christianity, the prohibition of interest is eminent. We have even seen above that even Jews were prohibited from interest based activity according to the Qurans verse. Following are the quotes from the Bible proving the prohibition of Riba. Thou shalt not lend upon usury to thy brother; usury of money, usury of victuals, usury of any thing that is lent upon usury. [Deuteronomy 23:19] Lord, who shall abide in thy tabernacle? Who shall dwell in thy holy hill? He that walketh uprightly, and worketh righteousness and speaketh the truth in his hearth. He that putteth not out of his money to usury, not taketh reward against the innocent.[Psalms 15:1, 2, 5] He that by usury and unjust gain increaseth his substance, he shall gather it for him that will pity the poor. [Proverbs 28:8] Then I consulted with myself, and I rebuked the noble, and rules and said unto them, ye exact usury, every one of his brother. And I set a great assembly against them.[Nehemiah 5:7] After identifying that interest has been prohibited in the past as well as in the contemporary era by the Creator of mankind as He tends to proscribe this act, it would be important to understand the types of Riba which are as follows: Riba Al Jahiliya/ Riba An Nasiyah That type of debt where specified reimbursements period and an amount in surplus of capital is fixed. (Usmani, 2002) Riba Al Fadl / Riba Al Hadees Riba Al Fadl means that the amount or goods paid back in excess other than the Qard (Loan) or which is taken in exchange of explicit homegenous products and are utilized in their hand to hand purchase and sale as explained in the Hadees. (Sahih Muslim, Karachi, V.2, P.25). (Usmani, 2002) Gharar The second of the ailments identified by the Islamic Juriprudence is known as Gharar. Gharar, is usually understood to denote ambiguity in the contractual conditions and/or the uncertainty in the survival of an essential good in an agreement and this creates concerns for Islamic scholars in the light of Islamic Jurisprudence. Shariah does include the ideology of Public benefit, denoting that, if something is tremendously in the public favor, it may be executed and so hedging or alleviation of preventable business threats, do come into this class but further elaboration is as follows by Islamic Scholars: Gharar is where the participants that is the buyer and seller, dont know what one bought and what the other sold. Professor Mustafa Al-Zarqa the researcher of Shariah has written Gharar can be defined as the sale of possible goods whose characteristics or individuality can not be established, due to the dicey character which makes this form of business related to gambling. Hadith for bidding this prototype of trading in Gharar (jeopardy) are available in books of Hadith. Some examples of Gharar transactions are (e.g. trading any fish swimming in the sea or a bird from a collection of species flying in the sky an unborn calf in cows womb, are some of the saleable goods which cannot be probed and examined as their true traits are unknown. Islamic Jurisprudence researchers have given many complete definitions of Gharar. They have also evolved with the idea of Yasir (minor risk); a financial deal with an insignificant risk is believed to be Halal (permissible) while transactions involving significant risk (Bayu-ul-Gharar) is deemed to be Haram. Gharar is one of those impediments which limit the power of decision making. An agreement that has any element of Gharar is not valid from the Islamic Jurisprudence view, irrespective of whether the parties to the agreement agree upon the agreement. The lexical meaning of Gharar is to deceive, cheat, delude, lure, entice and uncertainty. Gharar can be defined as follows: The uncertainty that is present in the basic elements of an agreement, wording, subject matter, consideration and the liabilities. Example of events which have been prohibited in Ahadith because of Gharar are: Sale of unborn Camels baby still in the mother abdomen. Sale of flowers before they appear on the plant. Sale of fish that comes in one throw of net. Sale of wool on the body of the animal. Qimar is that event in which there is a possibility of total loss to one party.Every gambling is a form of Qimar but Qimar is not limited to gambling. The Contract in which the participants, at the moment of implementing the agreement, cannot determine or rather decide as to how much it would give or receive. Causes of Gharar Though the conditions can be many but the most commonly occuring causes can be identified in (Samadani, 2007) are as follows: Uncertainity relating to the existence of thing sold Uncertainity relating to the possession of thing sold Uncertainity relating to the thing sold itself Uncertainity relating to the price Uncertainity relating to the payment of price Uncertainity relating to both thing sold as well as the price Types of Gharar Some types of Gharar are as follows: Baitan fi Bai (Twin sales) Safaqa fi Safaqa (Twin contracts) Bai urban/urboon Forward contract Superficial bull whip effect In the dark ages, many contracts were in vogue, where that condition would turn trade into treasure hunt. Like the seller would have different pieces of cloth and the buyer would cast a stone and would get the cloth where the stone would land. The Holy ProphetSallalaho Alaihi Wassallam has disallowed all such contracts. After identification of the prohibitions in the current financial system where interest and Gharar (Uncertainity) are a part and parcel of day to day proceedings. The need for a system which eliminated such illnesses was required. Another reason was that, after the jolts of 1930s and other economic crisis of 1970 and now of 2008 that followed, the financial world started talking about alternatives to the present systems of (Communism, Socailism and Capitalism). Though Capitalism is the largest spread system across the globe but by all means its jolting has been witnessed since 1839, 1930, 1970 and 2007. Is it at the verge of its end? Nobody knows but people have started looking for options. Islamic Economics Islam provides an economic system based on rules and principles defined by Islamic Jurisprudence. Human being is just a custodian of wealth and the true ownership is with Allah Tallah. Islamic Economics point of difference is that it not only deals with the materialistic needs of human being rather it also fulfills the spirtual needs at the same time. The main theory behind the Islamic economics is that money is only a means of exchange (in other words money tends to serve as an intermediary between the transaction of asset) and not a product that can be sold or discounted. Here it is noteworthy that a human being is not the true owner of wealth as it belongs Allah Tallah rather he has been given only the right to use it as the second owner, keeping in mind that he would be questioned on the day of judgement of his usfruct. Islam doesnt deny the forces of law of demand and supply but does emphasis on the consumer as well as the government to abide by the rules of Islam. Islam as a De en has the capability to accomadate all good things that life has to bring accept those which are outrightly against its divine principles. To summarise Islamic economics can be defined as the humanitarian goal of achieving the well-being of all members of the human family which cannot be attained by concentrating primlairly on the materialistic needs of comfort and creating maximisation of riches as the core intention of economics. Hence it is part and parcel to raise the spirtual content of well being of the whole society and reduce all symptons of anomie, like family disintegration, heavy interest based debt payments, conflict and tension, crime, alcholism, addiction to drugs and psychological illness, all signifying lack of internal delight and satisfaction in the life of human beings. Captialism similar to socialism, both have fallen short to show the way to their followers such an overall welfare. As a prospective measure, it is seems almost inevitable to put down the outlines of a new scheme of operations which helps maximise human well being as per the divine guidelines of Allah Tallah. As per (Khan, 1993) that since the unavailibilty of an Islamic society anywhere in the world the Islamic economics at present is scarely able to express or articulate Islamic position on economic issues as per its connotations. Islamic economics implies a serious execution of the Islamic strategy to raise the spirtual as well as the material well being of all people and to establish socio-economic justice, which is the vital objective of the Islamic message. On the spirtual side, the peace of mind that is fundamental to inner happiness cannot be attained except by increasing the nearness of the human being to his Creator, which Islam is capable of bringing about but secularism doesnot even aspire to. (Chapra, 1992). Islamic Banking Banks serve as the heart of any economy as they pump funds into the economic veins of a country. The four main functions that the bank performs are: lending and deposit business securities issuing asset management and foreign exchange trading. Trading has been given as an alternative to interest based transactions by Quran e Kareem as mentioned above. In the light of this fact the comtemporary Islamic scholars after reviewing the current financial system have comeup with different modes of financing to fulfill the much needed requirement. In the futher discussion we shall discuss those modes of financing. But first we would define Islamic banking as per the State Bank Of Pakistan. Islamic banking has the same utility as of conventional banking except that it asserts to function in agreement with the rules of Islamic Jurisprudence, called Fiqh ul Muamalat (Islamic regulations for transactions). The indispensable law of Islamic banking is the sharing of gain and loss and the prohibition of interest and Gharar. The Islamic concepts, that are mainly used in Islamic banking are profit sharing combination of isolated investor and worker (Mudharabah), safekeeping (Amanah), joint venture (Musharkah), Diminishing Musharkah, cost plus profit (Murabahah), asset finance (Ijarah), manufacturing (Istisna) and agricultural goods (Salaam). Islamic banking proposes to a structure of banking or participatory pooling actions that is dependable on Islamic Jurisprudence (Shariah) and channeled by Islamic economics. Islamic law prohibits interest the collection and payment of Usury. Islamic law also disallows trading in financial risk (since it is a form of gambling) discussed abov e as Gharar. In addition, Islamic Jurisprudence excludes participation in businesses which are deemed Haram (a going concern which deals in pork or alcohol). At the verge of 20th century, quite a few Islamic banks were crafted, to cater to this specific banking market. (Hassan, 2002) In an Islamic mortgage transaction, instead of giving debt to the buyer, money is utilized to purchase the item that is, money is a medium of exchange and not a commodity. Money cannot be rented, is a fact of Islamic Economics. The supplier acts as a direct vendor for the bank, after acquiring the goods the bank proceeds it to the customer at a gain, while allowing the buyer to payback the bank in installments (assets backed financing). However, for any delay in payment the bank cannot charge additional costs as profit or compensation. To mitigate its risk and close in on the vulnerability of the customers default, the bank keeps strict collaterals as its bail out. After the possession of goods the tangible asset is listed in the name of the buyer, by the Islamic banks. Such a bargain is known as Murabaha. Likewise Ijara wa Iqtina or Ijara bi Tamleek, which is alternative to real estate capital finance. Islamic banks handle proportionate income financings for means of transportations in a likewise manner (vending the automobile at a price, which is higher than the current value of the asset in the market, to the lessee and then holding up the title of the medium until the pre-agreed proceeds are paid up). The previous profits are taken into consideration setting up a profit and loss sharing ratio. Consequently the banks profit on the proportionate income financing is equivalent to a specific proportion of the companys revenues. As soon as the investment amount of the proportionate income financing is reimbursed, the earning-distribution arrangement is terminated. This specific exercise is entitled as Musharaka. Supplementary to this, Mudaraba is venture capital financing where a talented worksman who provides labor while funding is offered by the bank, so that one executes business on behalf of the other. Such participatory indulgence between capital and labor reflect the Islamic conceptions that the borrower should not absorb the peril/price of a collapse, since it is Allah Tallah who determines that failure or success, and intends that all those involved reap or bear it as per their obligations. Last, Islamic banking is bounded within Islamically permissible transactions, which eliminate those involving alcohol, pork, gambling, etc. Thus Islamic investing is the only acknowledgeable form of investment, and asset backed transactions are encouraged at the same time the social illnesses are not propped up. The concepts and financing modes in Islamic banking are as follows: Shariah Advisory Council/Consultant Islamic banks and banking organizations that offer Islamic banking products and services (IBPS banks) are required to establish Shariah advisory boards/ consultants to recommend them and to ensure that the procedures, activities and systems of the bank comply with Shariah doctrine. Amanah (Safekeeping) In Amanah, a bank is reckoned as a warden and custodian of endowments. Person deposits money in the bank and the bank assures to repay the whole amount of the belongings, or any portion of the remaining sum, when the depositor claims it. In this situation the Bank becomes the Amin (the Guardian) while the saver is known as Rab-ul-Maal. In Amanah the bank cannot consume this money until and unless the depositor permits its Amin. Mudarabah (Profit Loss Sharing) Mudarabah is a form or contract established between an investor and an entrepreneur, whereby the entrepreneur can finance the investments for its business proceedings. Any gains generated shall be distributed between the investor and the entrepreneur as per the consented ratio, while only the investor stands all the losses if transpired, it has to be bared in mind that the due attentiveness of the entrepreneur will be evaluated and in case of carelessness he/she would have to bear the consequences. The profit-sharing maintained until the proportionate income financing is reimbursed. The bank receives its share for the time value of its money through a set proportion in profit earned that is attached to the debtors profits. (Hassan, 2002) It is a corporation in proceeds between investment and skill, where one provides funds whereas the other supplements proficiency, expertise and administration. The latter is called as the Mudarib. Any profits accumulated are distributed amongst the participants on a pre-settled ratio, while loss is borne only by the investor. It is noteworthy that any increase in capital shall be the property of Rab-ul-Maal the capital provider according majority of jurist. For example if the sheep provided by rab-ul- maal investor and sheep gave birth to lamb, the lambs would be in the ownership of Rab-ul-Maal not the Mudarib (entrepreneur). The capital provider earns profit from the business on the basis of providing capital while the entrepreneur gets his share with respect to his efforts and endeavors. (Usmani T. M., 2004) Musharkah (Joint Venture) This conception is normally applied for business partnerships or mutual ventures. The profits made are shared on a settled ratio, while if losses are sustained they will be divided on the equity funds allocation ratio. This model is different from fixed-income endowing (i.e. proceeds of propotionate income financings). The two different types of Musharkah modes are Shirkat ul Ooqud and Shirkat ul Milk as per Islamic Jurisprudence. Further elaborating the types can be divided into specific main categories with further sub types each. In Islamic finance the things taken into consideration are Shirkat ul Ooqud (Partnership in Trade) and Shirkat ul Amaal (Partnership in Services). Shirkat ul Amwal (Partnership in trade) Shirkat Ul Amal (partnership in services) Shirkat ul Amwal (partnership in trade) is the mode of partnership where all partners invest some capital into a commercial enterprise. Shirkat Ul Ammal (partnership in services) is the form of partnership where all the partners jointly undertake to render some services for their customers and the fee charged from them is distributed among them accordingly to an agreed ratio. (Usmani T. M., 2004) Musharkah translates itself into a relationship established under a pact by the Impact of Islamic Banking on Consumer Financing Sector Impact of Islamic Banking on Consumer Financing Sector Abstract This study finds out the realistic or any factual impact caused by the introduction of Islamic Banking on the consumer financing sector generally, while keeping its main focus explicitly on House Financing and Car Financing through banks in Pakistan. The total banks involved in consumer financing whether Islamic or Conventional where included in this research, keeping 2003 as the base year of data initiation. Since 53% of Consumer financing was being defined by House and Car financing so they were kept in focus. Independent T-Tests were run on the investments as well as the growth of both the sectors that is Islamic and Conventional banking sectors. The data was collected from the Statistical Data Ware House Department of State Bank of Pakistan. The results show that the variances in the investment sectors of both Islamic and Conventional differed from each other where H0 was rejected on the basis of value of t stats where as in the growth comparison the variances were said to be sa me at 10% significant level but the means of growth stood at 29% and 9% in cases of Islamic and Conventional banking respectively proving the positive impact of Islamic Banking on Consumer Financings bulky sector of House and Car Financing in Pakistan . In case of any incongruity to State Bank of Pakistan or the AAOFI standards, the latter shall prevail. Chapter one: Introduction The intent to write this research was to undermine the factual understanding as well as affect caused due to the introduction of Islamic Banking in Pakistan. It was acclaimed by the people related to the industry that Islamic Banking had positively affected the banking sector here and across the globe. The numbers were quoted and percentages claimed but no real research supported the declarations. So the author thought of doing a research to dwell on the issue and conduct a research with respect to Pakistan hence, configure the true standings of the conterparts known commonly as Islamic Banking and Conventional Banking. Islamic Banking though has a mere institutionalised history of 35 years across the globe but has gained tremendous recognition in this short tenure which shall be wittnessed in the literature review ahead in this paper. The evolution of Islamic Banking in Pakistan started as late as 2000 01 after the historical judgement of the Supreme Court of Pakistan in1999 against the prevailing interest based banking system. The Islamic banking emerged, though after a valiant effort which continued over two decades prior to its surfacing. Different reports, articles, awareness sessions, books and other relative material endowed to this very existence of Islamic Banks in Pakistan. Though the clouds of uncertainity have lingered on this newly instigated initiative ever since its emergence, but then again that has always remained a norm for innovative things in Pakistan. Though Islamic Banking has come a long way after its start almost a decade ago but it still has a lot to prove to its spectators with respect to shariah compliance and market effectiveness in the Pakistans lucrative but stingent souk. Consumer Financing is a sector which has its part of exuberance attached to it in the banking and financial sector. When ever the financial markets are flooded with accessive liquidity the first thing that magnetizes the banker is the consumer financing sector specially in Pakistan where the yeilds were as high as 15% on proceeds. The magnitude of House and Car finance together tend to weigh around at almost 53% of this sector so the proceedings in this neighborhood can be established by analysing these mentioned sectors. In view of the fact that the House Car financing sector provide a level playing field for the conterparts that is Islamic and Conventional players, was another reason for this assortment. In the paper further the comparative analysis is conducted as well as the background of both Islamic Banking and Finance with Consumer Financing has been discussed in comprehensive detail. Statement of the Problem Islamic Banking ever since its emergence in Pakistan has raised eyebrows of related and non related players. Is there a difference? Which banking system shall prevail? Does Islamic Banking have enough weight to outset its conterpart? Can Islamic Banking loose the tag of being a parellel banking system and become the prefered banking operation in Pakistan? The researcher answers to these questions in the light of the literature review as well as by testing the viability of Islamic Banking sector to its conterpart Conventional Banking in the asset backed sectors of House and Car finance (through banks) in Pakistan. Objective Basic purpose of this research is to determine the differential impact of Islamic Banking in contrast to Conventional Banking on House Car Financing through Banks in Pakistan. Research Model Hypotheses H0: Islamic Banking does not impact House Car Financing through Banks In Pakistan. H1: Islamic Banking directly impacts House Car Financing through Banks In Pakistan. Chapter Two: Literature Review This segment will appraise the comprehesive literature review with respect to Islamic Banking globally while Consumer Banking Sector in Pakistan. Islam as a Code of Life Islam acclaims its self to be a Deen which provides a complete code of life to its practitioners. According to its claim Islam not only helps its followers rather also those who seek for help without believing in its core essence for day to day hinderances. May it be a name for a believers child or be it the purpose of life, Islam alone tends to answer to all the versatile queries of its disciple. This is the beauty of Islam but it can only lead to enlightenment only if all the resources of Islam are kept in view or an adherent may astray from the righteous path. The main resources of Islam can be categorized as follows: Quran e Karim The Holy Book sent upon Hazarat Muhammad Ahadith e Mubarakah (Sayings of Hazarat Muhammad) Shariah (Implementation of Islam) Lives of Hazrat Muhammad and the Sahaba (Companions of Hazarat Muhammad) Hence the Deen, Islam, can be categorized into three main branches: Beliefs (Aqaaid) Reformation and Rectification (Tassawuf) Islamic Laws and Principles (Fiqha). Since my paper would be coming under the third bough of a healthy hierarchy, that is, Islamic laws and Principle Jurisprudence (Fiqh). Further elaborating this division known as Fiqh (Islamic Laws and Principles) can be further sub-divided into the following sections: Prayers (Forms of submissions to Allah Tallah, Ibadaat) Societal or Civil Laws (Maamlaat) Criminal Laws Constitutional laws Since my paper discusses the Societal or Civil laws (Maamlaat) or rather absolutely specifying it would be dealing with financial aspects of this vast sub branch of Fiqh. Coming to the financial aspects of a Muslim or even an Oriental who believes in the fairness of Islamic laws, the main concern of this individual is to abide by Islamic law and principles while earning bread and butter for himself and his family. The things permissible by Islamic Jurisprudence are referred to as Halal while the things that are prohibited in Islamic Fiqh are known as Haram. It is by obligation that a Muslim or even an Oriental who believes in Islamic laws can earn his living only through Halal ways. One way of distinguishing Halal is by identifying the prohibitions while the rest remains permissible. Prohibitions in Islam for Financial Procedures The two of the main ills identified by Islam in financial procedures are: Riba (Interest) Gharar. Riba (Interest) In perspectives of Shariah money is considered to be a assessing means for value or worth rather than an asset within itself, it necessitates that an investor should not be able to obtain income from capital (or everything that is treated as a kind of money) alone. This production of money from money (commonly known as interest) is Riba, which is prohibited in Islam. Prohibation of Interest (Riba) in Quran Following are the verses where Quran has out rightly identified interest as a prohibition. In the following verse our Creator nullifies the visual increase of wealth earned through interest. And whatever Riba you give so that it may increase in the wealth of the people it does not increase with Allah Subhanahu Tallah (30:39) At another place it has been identified that the Jews werent allowed to indulge in interest. And because of their charging Riba while they were prohibited from it (4:161) A verse which identifies the prohibition of interest and its form whether it be compounded. O those who believe do not eat up Riba doubled and redoubled (3:130) Ribas eminent prohibition can be seen in the following verse while at the same time the permissible alternative of trading has been offered. Another important factor which can be witnessed here is that giving of charity is being encouraged while interest is being regarded as a curse. Those who take Riba (usury or interest) will not stand but as stands the one whom the demon has driven craze by his touch. That is because they have said: Trading is but like Riba and Allah Subhanahu Tallah has permitted trading and prohibited Riba. So, whoever receives an advice from his lord and stops, he is allowed what has passed, and his matter is up to Allah Subhanahu Tallah . And the ones who revert back, those are the people of fire. There they remain forever. Allah Subhanahu Tallah destroys Riba and nourishes charities. And Allah Subhanahu Tallah does not like any sinful disbeliever. Surely those who believe and do good deeds, establish Salah and pay Zakah, have their reward with their lord, and there is no fear for them, nor shall they grieve. O those who believer, fear Allah and give up what still remains of Riba if you are believers. But if you do not, then listen to the declaration of war from Allah and his messenger. And if you repent, yours is your principal. Neither you wrong, nor be wronged. And if there be one in misery, then deferment till ease. And that you leave it as alms is far better for you, if you really know. And be fearful of a day when you shall be returned to Allah, then everybody shall be paid, in full, what he has earned. And they shall not be wronged. (2: verses 275-281) Identifying one of the greatest ills of Interests concentration of wealth the rich becoming wealthier and the poor becoming underprivileged, the verse tends to unfold one of the many aliments caused by going against the prohibition. So that this wealth should not become confined only to the rich amongst you.(59:7) During the tenure of 1984 to 1994, $ 719 Billion dollars were sanctioned as interest based loans while $ 749 Billion were returned during the same tenure still leaving behind a liability of $ 1258 Billion. 225 people possess 47% of the wealth of the world at the same time 1 Billion and 30 Million people earn $ 1 daily while 32% of the population of this world earns $ 4 daily. These facts show that the present financial system has the above mentioned illness known as the concentration of wealth. Prohibation of Interest (Riba) in Hadith The second source of Islam is the sayings of the Holy Prophet MuhammadSallalaho Alaihi Wassallam. Ahadith of ProphetSallalaho Alaihi Wassallam which are on the prohibition of Riba (Interest) are as follows: In the following Saying the excess on either sides is regarded as riba. Gold for gold, silver for silver, wheat for wheat, barley for barley, date for date, salt for salt, must be equal on both sides and hand to hand. Whoever pays more or demands more (on either side) indulges in Riba.1.( Sahih Muslim, Karachi, V.2, P.25) As per the following saying commercial interests existence is exhibited. Ibn Juraij says: in the pre-Islamic period, the tribe of Banu Amr bin auf used to take interest from the tribe of Banu-al-Mughira, and the Banu-al-Mughira used to pay this interest. When islam came,the later owned considerable amount of money to the former. And further on:the Banu-al-mughira used to pay interest to Banu-thaqif. All the people involved in the transaction of riba are found to be guilty and at fault as per quoted saying below. From Jabir: the Prophet,Sallalaho Alaihi Wassallam, may cursed the receiver and the payer of interest, the one who records it and the two witnesses to the transaction and said:they are all alike [in guilt] (Muslim,Kitab-al-Musaqat, Bab lani akili al-Riba wa mukilihi;also in Tirmidhi and Musnad Ahmed) The implication or the inference of sins that a person attains on indulging himself in interest based transactions is emphasized in the following quotes. FromAbdullah ibn Hanzalah:the Prophet,Sallalaho Alaihi Wassallam,said : a dirham of Riba which a man receives knowingly is worst than committing adultery thirty-six times(Mishkat al-Masabih, Kitab al-Buyu,Bab al -Riba,on the authority of Ahmed and Daraqutni) From Abu Hurayrah: the Prophet,Sallalaho Alaihi Wassallam said: Riba has seventy segments, the least serious being equivalent to a man committing adultery with his own mother.(Ibn Majah) Interest based transaction reap no profits here or hereafter. The misery that one is bound to go through after death just for indulging himself in interest based proceeds in visible in the following quote. From Abu Hurayrah: the Prophet,Sallalaho Alaihi Wassallam, said: On the night of Ascension I came upon people whose stomachs were like houses with snakes visible from the out side. I asked Gabriel who they were. He replied that they were people who had received interest ( Ibn Majah, Kitab al-Tijarat, Bab al Taghlizi fi al-Riba; also in Musnad Ahmad) Prohibation of Interest (Riba) in Bible It is not that only in Islam, interest is prohibited even in Christianity, the prohibition of interest is eminent. We have even seen above that even Jews were prohibited from interest based activity according to the Qurans verse. Following are the quotes from the Bible proving the prohibition of Riba. Thou shalt not lend upon usury to thy brother; usury of money, usury of victuals, usury of any thing that is lent upon usury. [Deuteronomy 23:19] Lord, who shall abide in thy tabernacle? Who shall dwell in thy holy hill? He that walketh uprightly, and worketh righteousness and speaketh the truth in his hearth. He that putteth not out of his money to usury, not taketh reward against the innocent.[Psalms 15:1, 2, 5] He that by usury and unjust gain increaseth his substance, he shall gather it for him that will pity the poor. [Proverbs 28:8] Then I consulted with myself, and I rebuked the noble, and rules and said unto them, ye exact usury, every one of his brother. And I set a great assembly against them.[Nehemiah 5:7] After identifying that interest has been prohibited in the past as well as in the contemporary era by the Creator of mankind as He tends to proscribe this act, it would be important to understand the types of Riba which are as follows: Riba Al Jahiliya/ Riba An Nasiyah That type of debt where specified reimbursements period and an amount in surplus of capital is fixed. (Usmani, 2002) Riba Al Fadl / Riba Al Hadees Riba Al Fadl means that the amount or goods paid back in excess other than the Qard (Loan) or which is taken in exchange of explicit homegenous products and are utilized in their hand to hand purchase and sale as explained in the Hadees. (Sahih Muslim, Karachi, V.2, P.25). (Usmani, 2002) Gharar The second of the ailments identified by the Islamic Juriprudence is known as Gharar. Gharar, is usually understood to denote ambiguity in the contractual conditions and/or the uncertainty in the survival of an essential good in an agreement and this creates concerns for Islamic scholars in the light of Islamic Jurisprudence. Shariah does include the ideology of Public benefit, denoting that, if something is tremendously in the public favor, it may be executed and so hedging or alleviation of preventable business threats, do come into this class but further elaboration is as follows by Islamic Scholars: Gharar is where the participants that is the buyer and seller, dont know what one bought and what the other sold. Professor Mustafa Al-Zarqa the researcher of Shariah has written Gharar can be defined as the sale of possible goods whose characteristics or individuality can not be established, due to the dicey character which makes this form of business related to gambling. Hadith for bidding this prototype of trading in Gharar (jeopardy) are available in books of Hadith. Some examples of Gharar transactions are (e.g. trading any fish swimming in the sea or a bird from a collection of species flying in the sky an unborn calf in cows womb, are some of the saleable goods which cannot be probed and examined as their true traits are unknown. Islamic Jurisprudence researchers have given many complete definitions of Gharar. They have also evolved with the idea of Yasir (minor risk); a financial deal with an insignificant risk is believed to be Halal (permissible) while transactions involving significant risk (Bayu-ul-Gharar) is deemed to be Haram. Gharar is one of those impediments which limit the power of decision making. An agreement that has any element of Gharar is not valid from the Islamic Jurisprudence view, irrespective of whether the parties to the agreement agree upon the agreement. The lexical meaning of Gharar is to deceive, cheat, delude, lure, entice and uncertainty. Gharar can be defined as follows: The uncertainty that is present in the basic elements of an agreement, wording, subject matter, consideration and the liabilities. Example of events which have been prohibited in Ahadith because of Gharar are: Sale of unborn Camels baby still in the mother abdomen. Sale of flowers before they appear on the plant. Sale of fish that comes in one throw of net. Sale of wool on the body of the animal. Qimar is that event in which there is a possibility of total loss to one party.Every gambling is a form of Qimar but Qimar is not limited to gambling. The Contract in which the participants, at the moment of implementing the agreement, cannot determine or rather decide as to how much it would give or receive. Causes of Gharar Though the conditions can be many but the most commonly occuring causes can be identified in (Samadani, 2007) are as follows: Uncertainity relating to the existence of thing sold Uncertainity relating to the possession of thing sold Uncertainity relating to the thing sold itself Uncertainity relating to the price Uncertainity relating to the payment of price Uncertainity relating to both thing sold as well as the price Types of Gharar Some types of Gharar are as follows: Baitan fi Bai (Twin sales) Safaqa fi Safaqa (Twin contracts) Bai urban/urboon Forward contract Superficial bull whip effect In the dark ages, many contracts were in vogue, where that condition would turn trade into treasure hunt. Like the seller would have different pieces of cloth and the buyer would cast a stone and would get the cloth where the stone would land. The Holy ProphetSallalaho Alaihi Wassallam has disallowed all such contracts. After identification of the prohibitions in the current financial system where interest and Gharar (Uncertainity) are a part and parcel of day to day proceedings. The need for a system which eliminated such illnesses was required. Another reason was that, after the jolts of 1930s and other economic crisis of 1970 and now of 2008 that followed, the financial world started talking about alternatives to the present systems of (Communism, Socailism and Capitalism). Though Capitalism is the largest spread system across the globe but by all means its jolting has been witnessed since 1839, 1930, 1970 and 2007. Is it at the verge of its end? Nobody knows but people have started looking for options. Islamic Economics Islam provides an economic system based on rules and principles defined by Islamic Jurisprudence. Human being is just a custodian of wealth and the true ownership is with Allah Tallah. Islamic Economics point of difference is that it not only deals with the materialistic needs of human being rather it also fulfills the spirtual needs at the same time. The main theory behind the Islamic economics is that money is only a means of exchange (in other words money tends to serve as an intermediary between the transaction of asset) and not a product that can be sold or discounted. Here it is noteworthy that a human being is not the true owner of wealth as it belongs Allah Tallah rather he has been given only the right to use it as the second owner, keeping in mind that he would be questioned on the day of judgement of his usfruct. Islam doesnt deny the forces of law of demand and supply but does emphasis on the consumer as well as the government to abide by the rules of Islam. Islam as a De en has the capability to accomadate all good things that life has to bring accept those which are outrightly against its divine principles. To summarise Islamic economics can be defined as the humanitarian goal of achieving the well-being of all members of the human family which cannot be attained by concentrating primlairly on the materialistic needs of comfort and creating maximisation of riches as the core intention of economics. Hence it is part and parcel to raise the spirtual content of well being of the whole society and reduce all symptons of anomie, like family disintegration, heavy interest based debt payments, conflict and tension, crime, alcholism, addiction to drugs and psychological illness, all signifying lack of internal delight and satisfaction in the life of human beings. Captialism similar to socialism, both have fallen short to show the way to their followers such an overall welfare. As a prospective measure, it is seems almost inevitable to put down the outlines of a new scheme of operations which helps maximise human well being as per the divine guidelines of Allah Tallah. As per (Khan, 1993) that since the unavailibilty of an Islamic society anywhere in the world the Islamic economics at present is scarely able to express or articulate Islamic position on economic issues as per its connotations. Islamic economics implies a serious execution of the Islamic strategy to raise the spirtual as well as the material well being of all people and to establish socio-economic justice, which is the vital objective of the Islamic message. On the spirtual side, the peace of mind that is fundamental to inner happiness cannot be attained except by increasing the nearness of the human being to his Creator, which Islam is capable of bringing about but secularism doesnot even aspire to. (Chapra, 1992). Islamic Banking Banks serve as the heart of any economy as they pump funds into the economic veins of a country. The four main functions that the bank performs are: lending and deposit business securities issuing asset management and foreign exchange trading. Trading has been given as an alternative to interest based transactions by Quran e Kareem as mentioned above. In the light of this fact the comtemporary Islamic scholars after reviewing the current financial system have comeup with different modes of financing to fulfill the much needed requirement. In the futher discussion we shall discuss those modes of financing. But first we would define Islamic banking as per the State Bank Of Pakistan. Islamic banking has the same utility as of conventional banking except that it asserts to function in agreement with the rules of Islamic Jurisprudence, called Fiqh ul Muamalat (Islamic regulations for transactions). The indispensable law of Islamic banking is the sharing of gain and loss and the prohibition of interest and Gharar. The Islamic concepts, that are mainly used in Islamic banking are profit sharing combination of isolated investor and worker (Mudharabah), safekeeping (Amanah), joint venture (Musharkah), Diminishing Musharkah, cost plus profit (Murabahah), asset finance (Ijarah), manufacturing (Istisna) and agricultural goods (Salaam). Islamic banking proposes to a structure of banking or participatory pooling actions that is dependable on Islamic Jurisprudence (Shariah) and channeled by Islamic economics. Islamic law prohibits interest the collection and payment of Usury. Islamic law also disallows trading in financial risk (since it is a form of gambling) discussed abov e as Gharar. In addition, Islamic Jurisprudence excludes participation in businesses which are deemed Haram (a going concern which deals in pork or alcohol). At the verge of 20th century, quite a few Islamic banks were crafted, to cater to this specific banking market. (Hassan, 2002) In an Islamic mortgage transaction, instead of giving debt to the buyer, money is utilized to purchase the item that is, money is a medium of exchange and not a commodity. Money cannot be rented, is a fact of Islamic Economics. The supplier acts as a direct vendor for the bank, after acquiring the goods the bank proceeds it to the customer at a gain, while allowing the buyer to payback the bank in installments (assets backed financing). However, for any delay in payment the bank cannot charge additional costs as profit or compensation. To mitigate its risk and close in on the vulnerability of the customers default, the bank keeps strict collaterals as its bail out. After the possession of goods the tangible asset is listed in the name of the buyer, by the Islamic banks. Such a bargain is known as Murabaha. Likewise Ijara wa Iqtina or Ijara bi Tamleek, which is alternative to real estate capital finance. Islamic banks handle proportionate income financings for means of transportations in a likewise manner (vending the automobile at a price, which is higher than the current value of the asset in the market, to the lessee and then holding up the title of the medium until the pre-agreed proceeds are paid up). The previous profits are taken into consideration setting up a profit and loss sharing ratio. Consequently the banks profit on the proportionate income financing is equivalent to a specific proportion of the companys revenues. As soon as the investment amount of the proportionate income financing is reimbursed, the earning-distribution arrangement is terminated. This specific exercise is entitled as Musharaka. Supplementary to this, Mudaraba is venture capital financing where a talented worksman who provides labor while funding is offered by the bank, so that one executes business on behalf of the other. Such participatory indulgence between capital and labor reflect the Islamic conceptions that the borrower should not absorb the peril/price of a collapse, since it is Allah Tallah who determines that failure or success, and intends that all those involved reap or bear it as per their obligations. Last, Islamic banking is bounded within Islamically permissible transactions, which eliminate those involving alcohol, pork, gambling, etc. Thus Islamic investing is the only acknowledgeable form of investment, and asset backed transactions are encouraged at the same time the social illnesses are not propped up. The concepts and financing modes in Islamic banking are as follows: Shariah Advisory Council/Consultant Islamic banks and banking organizations that offer Islamic banking products and services (IBPS banks) are required to establish Shariah advisory boards/ consultants to recommend them and to ensure that the procedures, activities and systems of the bank comply with Shariah doctrine. Amanah (Safekeeping) In Amanah, a bank is reckoned as a warden and custodian of endowments. Person deposits money in the bank and the bank assures to repay the whole amount of the belongings, or any portion of the remaining sum, when the depositor claims it. In this situation the Bank becomes the Amin (the Guardian) while the saver is known as Rab-ul-Maal. In Amanah the bank cannot consume this money until and unless the depositor permits its Amin. Mudarabah (Profit Loss Sharing) Mudarabah is a form or contract established between an investor and an entrepreneur, whereby the entrepreneur can finance the investments for its business proceedings. Any gains generated shall be distributed between the investor and the entrepreneur as per the consented ratio, while only the investor stands all the losses if transpired, it has to be bared in mind that the due attentiveness of the entrepreneur will be evaluated and in case of carelessness he/she would have to bear the consequences. The profit-sharing maintained until the proportionate income financing is reimbursed. The bank receives its share for the time value of its money through a set proportion in profit earned that is attached to the debtors profits. (Hassan, 2002) It is a corporation in proceeds between investment and skill, where one provides funds whereas the other supplements proficiency, expertise and administration. The latter is called as the Mudarib. Any profits accumulated are distributed amongst the participants on a pre-settled ratio, while loss is borne only by the investor. It is noteworthy that any increase in capital shall be the property of Rab-ul-Maal the capital provider according majority of jurist. For example if the sheep provided by rab-ul- maal investor and sheep gave birth to lamb, the lambs would be in the ownership of Rab-ul-Maal not the Mudarib (entrepreneur). The capital provider earns profit from the business on the basis of providing capital while the entrepreneur gets his share with respect to his efforts and endeavors. (Usmani T. M., 2004) Musharkah (Joint Venture) This conception is normally applied for business partnerships or mutual ventures. The profits made are shared on a settled ratio, while if losses are sustained they will be divided on the equity funds allocation ratio. This model is different from fixed-income endowing (i.e. proceeds of propotionate income financings). The two different types of Musharkah modes are Shirkat ul Ooqud and Shirkat ul Milk as per Islamic Jurisprudence. Further elaborating the types can be divided into specific main categories with further sub types each. In Islamic finance the things taken into consideration are Shirkat ul Ooqud (Partnership in Trade) and Shirkat ul Amaal (Partnership in Services). Shirkat ul Amwal (Partnership in trade) Shirkat Ul Amal (partnership in services) Shirkat ul Amwal (partnership in trade) is the mode of partnership where all partners invest some capital into a commercial enterprise. Shirkat Ul Ammal (partnership in services) is the form of partnership where all the partners jointly undertake to render some services for their customers and the fee charged from them is distributed among them accordingly to an agreed ratio. (Usmani T. M., 2004) Musharkah translates itself into a relationship established under a pact by the

Saturday Night and Rome,the Open City :: essays research papers

Italian neo realist cinema and British social realist cinema have some similarities in some ways. First of all we may say both of them breaks through dimensions for the individuals of their culture. They try to give tensions about the war. Both gives us a perspective to look at the cinema as a natural eye. The important thing is to able to look and see as Berger’s said. (John Berger _ Ways of Seeing) So I will try to give a brief story of two films from these fields. †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Saturday night and Sunday morning †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Rome Open City The most significant film of the 1960s British new wave in cinema, Saturday Night and Sunday Morning was in many ways the most influential of the group, with its powerful anti-establishment stance, unblushing treatment of sex and working class protagonist: Arthur Seaton was something new in British cinema. While other films of the period have dated somewhat, most of Reisz’s ground-breaking film looks as fresh and powerful as ever, and it's valid to observe just how good Albert Finney was in the role of Seaton†¦ Set in the gray industrial town of Nottingham, Alan Sillitoe's novel SATURDAY NIGHT AND SUNDAY MORNING, with all of its black realism, is successfully adapted to the screen with a powerful performance by Albert Finney in his first starring role. Director Karel Reisz draws on his work in documentaries to give the film a sharp eye for the look and feel of northern England. Arthur Seaton (Albert Finney) is a young man trapped in a mindless factory job, intrinsically r ebelling, but without any focus to his anger. He spends his Saturday nights getting drunk and his Sunday mornings fishing. His affair with a married neighbor, Brenda (Rachel Roberts), seems to please him only for its risky illicitness. Their love scenes are controversial for the palpable expression of real sexual pleasure that Roberts shows in the role of an ordinary English housewife, and because of the fact that she receives, from a handsome younger man, the sexual fulfillment that her husband can not provide. Arthur's best friend Bert (Norman Rossington) shares Arthur's resentment but avoids his self destructive ways. Arthur gets into increasing trouble when he impregnates Brenda (Rachel Roberts), the neglected wife of Arthur's mild-mannered co-worker Jack (Bryan Pringle). Abortions were illegal at the time, although often hinted at in British films. In the story that follows, we see this insolent rebel bluster his way through some of the formative experiences of his young adulthood.

Hp Analysis

Contents 1. 0 Company background2 1. 1 Introduction2 2. 0 Strategy identification3 2. 1 HP Marketing mix3 2. 1. 1Product3 2. 1. 2 Place4 2. 1. 3 Price4 2. 1. 4 Promotion4 2. 2 E-Customer Relationship Management5 2. 3 Virtual Communities5 3. 0 Environmental Analysis6 4. 0 Segmentation and targeting, differentiation and positioning7 4. 1 Market segmentation7 4. 1. 1 Demographic8 4. 1. 2 Psychographic segmentation9 4. 1. 3 Geographic segmentation9 4. 1. 4 Positioning for the future9 4. 1. 5 Future differentiation9 5. Objectives and E-marketing Strategies10 5. 1 Corporate objectives10 5. 2 E-CRM recommendations11 6. 0 Implementation and Evaluation12 6. 1 Electronic Commerce Solution integrated with SMS12 6. 2 e-Recommendation via find store searching tool14 7. 0 Conclusion16 8. 0 References17 9. 0 Appendix19 Hewlett-Packard 1. 0 Company background 1. 1 Introduction Though the company is a market leader, they are still trying everything possible to keep that consistency or even to improve more so that they can beat their competitors and satisfy their customers. To achieve this, the company is applying some business concepts which we will look into in depth to see how it is benefiting from them. The business concepts are as follow, and we will discuss them sequentially; * Strategy identification (E-marketing strategies) * Environmental Analysis * Segmentation and targeting, differentiation and positioning * Objectives and E-marketing Strategies * Implementation and evaluation 2. 0 Strategy identification 2. 1 HP Marketing mix 4Ps PROMOTION PRODUCT PLACE PRICE 2. 1. 1Product According to (Jones, 2005), Hewlett Packard unlike other companies serves everyone from customers, small and mid-sized businesses, to enterprises and public sectors with an extensive portfolio of market leading solution. Through their website (www. hp. com), they provide clear facts about their products, customers can know immediately about products information and specification, not a sales persons assumptions. For more clarification, there is a customer service where they can find out more. HP is also offering customization to meet customers wants, customers are allowed to design and see the outlook of their products before they can order. The buying process is also customised for returning buyers, making repeat purchasing more easily. On the other hand, HP is providing products support to its customer. It offers services such as; * HP Support Assistant – With HP Support Assistant, it is easy for customers to keep their PC running smoothly, optimize PC performance, automate support tasks and get assistance when they need help. * HP Total care Support – through this support, HP offers videos to customers so that they can enjoy and troubleshoot the computer, imaging and printing equipment. 2. 1. 2 Place As international trading is increasing all around the world, and trade barriers have come down, that has helped HP to introduce its products to a great extent. Hewlett Packard and its customers can easily interact via a web based platform (www. hp. com) and seal their deal online. With this website, HP can provide international customers with great deal of information, and easy ways of ordering at a very little expense. On the other hand HP Company have authorized and registered agent partners, who sell HP products on its behalf to customers, particularly to small and medium business. . 1. 3 Price When comes to pricing strategy of HP products, prices are reasonable based on the quantity and quality consumers are buying. Customers can enjoy discount and allowance pricing based on what they are buying, customers who buy in bulk are offered quantity discount. Also channel members like national and sub distributors who perform further selling are handed with functional discount To take a dvantage further more on pricing, HP use segment pricing, where household and industrial customers pay different prices for the same product as their earns are different. According to Pricing strategies: Hewlett Packard (Anon, 2009), One of the options HP is giving its consumers is pay-per-use utility pricing  which charges consumers for actual usage on a monthly basis. This technology works by measuring the percentage of utilization on each Central Processing Unit. The advantage for HP customers is that they will only pay for processing they are utilizing. They also have the option to use additional processors, therefore processing is not limited. In addition, different versions of the same products priced differently with respect to the configuration of components. . 1. 4 Promotion Hewlett Packard use different methods to promote their products to users, here are as follows; * Publics relations – â€Å"The HP Media Relations department provides journalists and editors with assistance in referencing background information of the company, it is setting up interviews with HP executives or scientists, securing press materials, and checking fac ts. † (HP newsroom, 2011) * Advertising – along with mass production of its products, HP is promoting its products via internet, including a website with videos and navigation sorted by business application. Sales promotion – through HP trade-In-frequently asked questions, HP is attempting to provide added value or motivation to consumers to stimulate sales. It is doing this by providing answers to questions which are mostly asked by customers, thus putting them in a good position to gain customer loyalty and form a strong relationship with them. 2. 2 E-Customer Relationship Management â€Å"E-CRM is a strategy used by online businesses to learn more about customers’ needs and behaviours in order to build a good relationship with them†(Romano and Fjermestad, 2002). As stated by (janjicek, n. d), records from HP customer relationship model which was built on experiences attained from CRM project engagements globally shows that the customer relationship is strengthened by relationship building tactics, which are continuously measured through time. E- CRM in HP supports effective customer interaction for sales and marketing automation thus forming a strong customer relationship, which leads to acceptable customer loyalty, profitability and retention. Hp is offering the following E-CRM to its customers; customer centred services, which involve products shape and customization, and value added services, which includes online training and education. This E-CRM addresses the requirements of enhancing and changing the customer experience by providing the functionality required to effectively interact with the customer, during the Sales and Marketing process. HP effectively interacts with their customers by fulfilling the following: * Knowing their customer’s needs and pro-actively engage their customer. * Knowing their customer and also their conversations/interactions with HP. Is not only to build a better relationship with customers, but also to serve them effectively. * They use the knowledge gained during customer interaction to improve the interaction and relationship with the customer. 2. 3 Virtual Communities HP Enterprise Business Community- this community is for customers who have questions, as it provides answers or those customers seeking for advice. â€Å"Through Enterprise Business Community connection, the user can find information and connect with other users, share thoughts, exchange knowledge and have a chance to speak to the experts. (Hp. com, 2011) HP Virtual Community Interest Group– according to (HP BladeSystem, 2011) this community is focused on Virtual Connect, bringing the newest, ground-breaking blade interconnect technology on the market to customers. HP is keep in touch with its customer through this community, listening to what they have to say, a complaint or complement, then they give feedback on the Virtual Connect sol ution, and we will keep their customers updated on the latest improvements and tools. 3. 0 Environmental Analysis As the researcher stated earlier on, HP is a leading consumer technology company in the world, offering a range of technology tools, from digital cameras to PCs to handheld devices. However, it is important to see how the company is managing to keep peace with this fast developing of technology and able to beat its competitors. To analyse this, the researcher will use a SWOT analysis as a tool â€Å"to evaluate the overall company’s strengths, weaknesses, opportunities and threats. It involves monitoring the external and internal marketing environment. (Kotler and Keller, 2006) A SWOT analysis will provides an overall view of HP, and the factors can be useful in detecting the extent and type of barriers to work effectiveness that might exist there. 4. 0 Segmentation and targeting, differentiation and positioning 4. 1 Market segmentation Hp as a large firm with many customers, it is catering for them based on their demographic, behaviour, geographical, psychographic. 4. 1. 1 D emographic Some of Hp products and services are divided in such a way that they meet a certain group of customers, either based on their age, occupation, income, religion or social class. A typical example is an Hp mini notebook pc which was introduced to target education market. The personal computer is more accessible to school students, both the selling price and design wise. â€Å"HP has entered the arena with the announcement of the HP 2133 Mini-Note PC, a full-function, small-format laptop PC priced from under US$500. † (McKeegan, 2008) Hp also has divided their service branch into four main areas to better serve their customers, they include: 4. 1. 2 Psychographic segmentation Hp is catering different people of different interests and values, for example youngsters who prefer stylish design, more features on entertainment as well as businessmen who are looking for favour elegant and formal design so that they can make improvement in their official tools and applications. 4. 1. 3 Geographic segmentation Hp targets their market mostly in urban areas where people can afford to buy their products and have knowledge and skill to use them. It is especially targeting big cities with class of people who live high standards lives and are seeking for the self-esteem and self-actualization levels of needs. . 1. 4 Positioning for the future HP’s sustainability strategy has already established the company as a clear thought leader in the industry, giving them an advantage that leads to first-mover opportunities and first pick of top suppliers, employees and partners. â€Å"HP will continue making different infrastructure and distribution strategies, which will further aligns its operations with emerging best practices, giving it a competitive edge, and opening new growth horizons† (Lowitt and Grimsley, 2009). Hp has also positioned itself as an environment friendly company, which through the use of technology, â€Å"they believe there is an opportunity for IT to be a significant part of the solution in providing energy efficiency, reduction of resource conservation and substitution of high carbon by low-carbon processes. † (Accenture, 2010) 4. 1. 5 Future differentiation Hp is planning to come up with a massive Touchpad which according their European chief it will become better than Apple product, iPad. In his statement reported by Reisinger (2011) he said â€Å"In the tablet world, we are going to become better than number one. We call it number one plus† â€Å"HP indicated its intentions for the tablet market in February when they make public of their touchpad. The device runs the company's WebOS operating system and comes with a 9. 7-inch display. When it hits store shelves sometime this summer, it will include the Qualcomm Snapdragon dual-core 1. 2 GHz processor and both front- and rear-facing cameras. † (Reisinger, 2011) The device also supports a new HP Touchstone Touch-to-Share proximity-based sharing feature, which allows compatible devices to instantly exchange data, media, and information. 5. 0 Objectives and E-marketing Strategies . 1 Corporate objectives Source: (HP, 2011) 5. 2 E-CRM recommendations Hp as a click and mortar company which has position its self as the best in the industry and aiming to gain its customer’s loyalty, needs to provide the best services to continue with their good relation with its customers. One of the improvements that need to be taken into account is the find store search, Hp have many physical stores all over the world, so it will be a better idea if they can implement an e-recommendation via find store search on their website so that customer can easily find the physical store nearest to where they are. That will help the company to increase the profit as some customer do not feel comfortable with buying online, but preferring to buy from a physical store. Hp can also implement the SMS tool, which will allow customers to key in their mobile number after shopping from Hp website, and then the automation message will be sent to them as part of appreciation of shopping from Hp. This tool will help Hp to serve targeted market and boost customer loyalty. 6. 0 Implementation and Evaluation 6. 1 Electronic Commerce Solution integrated with SMS Gantt chart Proposed system A buyer ECS integrated with SMS Administration desk Message sending to buyer’s mobile Clicking appreciation message Reporting buying confirmation Process buying until it is accepted Process flow The process will start when the customer process his/her buying, through the process stage, particular at filling in details stage, the customer will have to submit his/her phone number, then follow the normal stages of online buying via Hp website. As the buying has completed and accepted, the deal will confirmed with the company Electronic Commerce Solution integrated with SMS system, which will send a report alert message to the person at the administration desk. The person at the administration desk will then click the already automated message of appreciation, and then tracked by ECS system and deliver to the targeted customer’s mobile number. Evaluation To ensure the effectiveness of this e-CRM, HP will look at the loyalty of the customer, for example, if the customers return again to buy from the company, it will convince that he/she is happy with the service and attention he/she was given last time, thus he/she is encouraged to come again. On the other hand, HP can do primary research, which will include survey and questionnaire about this project. Through those methods of data gathering, the company will able to know exactly what the customers feel about the service. 6. 2 e-Recommendation via find store searching tool Gantt chart Proposed system Customers Searching tool Locations database Search by selecting/ type in location name Checking searched information from the database Not available Found Process flow Customers who want to visit the nearest store to their locations will able to search by using their state name as a target; they will either select their state or type in the name if it is not available in the drop down menu. The searching tool will then check the stores available from the locations database, if there is no stores in that area, the customer will receive a notification, but if there are stores available, the customer will be provide with relevant information to reach that store, e. g. directions. Evaluation To consider this e-CRM as a success, HP will judge it by number of clicks done by customers, if they are more clicks being done by customers; it means that the system is considered as helpful by customers. Also they research can be carried out at HP physical stores, asking customers about how did they managed to reach the place, if most answers will emphasize that is through a store find search from the website, then the system will be considered as a success and beneficial to the company. Conclusion HP is a large company, which according to the research put its customers first in whatever they are doing. Their main success in the industry has led by good customer service and relationship. The company still have a strong desire to satisfy their customers even more, they always coming up with new ideas to match customers’ demands and needs. But on the other hand, even though the company is doing well in the market, I strongly feel that their website is not user friendly. As a customer and a researcher, I found it hard to interact with their website; it has too much link and a bit confusing. Word count: 2552 References Books 1. Dave Chaffey, Richard Mayer, Kevin Johnston, Fiona Ellis-Chadwick, 2003, Internet Marketing: Strategy, Implementation and Practice, 2nd ed. Pearson Education Limited, England, pp 7 2. Armstrong, G. and Kotler, P. , 2009. Marketing: An Introduction, 9th ed. Pearson Prentice Hall, United states of America, pp 80 3. Kotler, P. and Keller, K, L. 2006. Marketing Management, 12th ed. Pearson Prentice Hall, United States of America, pp 50 Internet Resources 1. Ken Jones, 2005, CMA helps Hewlett Packard Implement Solutions Marketing Strategy in Government, available at ;http://www. cmai. com/Newsletter/HPCaseStudy. pdf; last accessed on the 25 May 2011 2. (Anon, 2009) Pricing strategies: Hewlett Packard, available at ;http://arianagoldstein. blogspot. com/2009/04/pricing-strategies-hewlett-packard. html; last accessed on the 27 May 2011 3. Rose janjicek, n. d, CRM architecture for enterprise relationship marketing in the new millennium, available at ;http://h20338. ww2. hp. com/enterprise/downloads/CRMArchitecture_Whitepaper_HPC. pdf;last accessed on the 29 May 2011 4. Accenture, 2010, Hewlett-Packard: Sustainability as a Competitive Advantage, available at ;https://microsite. accenture. com/sustainability/Documents/HewlettPackard_Sustainability_as_a_Competitive_Advantage. pdf; last accessed on the 30 May 2011 5. Romano, N. C. , and Fjermestad, J. , â€Å"Electronic Customer Relationship Management: An Assessment of Research,† International Journal of Electronic Commerce, 6, 2 (2002),pp 61-113 6. HP BladeSystem, 2011, where the worldwide HP blade community meets, available at ;http://h18000. ww1. hp. com/products/blades/components/bladeconnect. html; last accessed on the 30 M ay 2011 7. Noel McKeegan, 2008, HP targets education market with new Mini-notebook PC, available at ;http://www. gizmag. com/hp-targets-education-market-with-new-mini-notebook-pc/9140/; last accessed on the 4 June 2011 8. Eric M. Lowitt and Jim Grimsley, 2009, Hewlett-Packard: Sustainability as a Competitive Advantage, available at ;http://www. hp. com/hpinfo/globalcitizenship/environment/commitment/accenturestudy. pdf; last accessed on the 4th June 2011 9. HP, 2011, HP Corporate Objectives and Shared Values, available at http://www8. p. com/us/en/hp-information/about-hp/corporate-objectives. html last accessed on the 4th June 2011 10. HP newsroom, 2011, Contact HP media relations, available at ;http://www. hp. com/hpinfo/newsroom/media. html; last accessed on the 11 June 2011 11. Raman, M. , 2011, International Business Times: Tablet Shootout: Apple's iPad 2 Vs HP's TouchPad, available at ;http://www. ibtimes. com/articles/118866/20110304/ipad-2-touchpad-apple-hp-xoom-motorola-ipho ne-tablets-pc-steve-jobs-samsung-galaxy-tab-rim-playbook. htm; last accessed on the 16th June 2011 Appendix Virtual communities HP on twitter – provides authorized news and any updates from HP official news. New users are allowed to sign up, while those who have accounts already they just need to sign in so that they can follow and have their say on updates and official news. Through this community, HP is able to connect and inform its customers, thus forming a good relationship. * HP on facebook – with this community, users who have facebook accounts and have liked the HP page on facebook, are able to find out what is happening around HP, view photos and learn what HP is doing to help them live green. Also users are allowed to post their feedback on HP’s profile, and HP is using them to analyse their contribution to the society and make improvements where necessary. The comparison between Apple's iPad 2 and HP's TouchPad Specifications| iPad 2| HP TouchPad| OS| iOS 4. 3| WebOS 3. 0| Network| Wi-Fi only, GSM (AT;T), CDMA (Verizon)| GSM| Screen Size| 9. 7-inch| 9. 7-inch| Resolution| 1024Ãâ€"768| 1024Ãâ€"768| Processor| Apple A5 dual core 1 GHz| Qualcomm Snapdragon dual core APQ8060 1. 2 GHz| Storage| 16GB/32GB/64GB| 16GB/32GB| RAM| N/A| 1GB| Rear Camera| 720p| None| Front Camera| VGA| 1. 3mp| Video Recording| 720p| N/A| Adobe Flash Support| No| Yes| Wi-Fi| 802. 11 a/b/g/n| 802. 11b/g/n with WPA, WPA2, WEP, 802. 1X authentication| Sensors| Light, Accelerometer, compass, gyroscope| Light, Accelerometer, compass, gyroscope| Bluetooth| 2. 1+EDR| 2. 1+EDR| TV Out| 1080p, HDMI, VGA| No| Weight| 1. 33 pounds| 1. 6 pounds| Battery| 25 watt hour| 6,300 mAh Battery| Price| Wi-FI only version starts at $499| N/A| Availability| March 11, 2011 (US), March 25 Worldwide| Summer| Source: (Raman, 2011)

Strategic and Operational Roles of Procurement within DHL

Strategic and Operational Roles of Procurement within DHL Executive Summary The aim of this paper was to analyze the strategic and operational roles of procurement at DHL. The company’s procurement function was analyzed using various procurement tools and concepts. Furthermore, secondary data was collected from a variety of sources that included the company’s website, peer reviewed journals and textbooks to complete the analysis.Advertising We will write a custom coursework sample on Strategic and Operational Roles of Procurement within DHL specifically for you for only $16.05 $11/page Learn More The results of the analysis indicate that DHL uses a centralized procurement system to reduce costs. Its subsidiaries in overseas markets also participate in the procurement process by implementing the decisions made by the headquarters. The company has also embarked on implementing supply base optimization initiatives in order to reduce operating costs. DHL’s Procurement System DHL is the largest mail and logistics company in the world. The company was founded in German where its headquarters are located. Since its inception, DHL focused on rapid expansion by joining different markets in every continent. As a result, the company currently operates in over 200 countries and employs nearly four hundred thousand employees. DHL’s vision is to â€Å"remain the postal provider for Germany and become the logistics company for the world† (DHL 2013). In order to achieve this vision, the company focuses on providing excellent services. These include â€Å"dialogue marketing, press distribution, and corporate communications solutions† (DHL 2013). Moreover, the company provides mail delivery, transport/ logistics, and supply chain management services. Organizational Structure As a multinational company, DHL relies heavily on the effectiveness of its procurement department to access all the supplies that it requires to meet the needs of its customers. Currently, the comp any is organized into four divisions that have semi-autonomous divisional headquarters (DHL 2013). However, procurement and other functions such as finance and personnel are centralized. Figure 1: DHL’s organizational structure Advertising Looking for coursework on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Procurement plays a vital role at DHL by facilitating effective and efficient sourcing of products/ services, supporting functions such as marketing and reducing operating costs. For instance, the procurement unit often assists the company’s sales team to perform activities such as reviewing response to requests for proposals (RFP) (DHL 2013). In order to leverage the capabilities of its procurement unit, the company has embarked on innovation and use of advanced technology. Furthermore, the company is collaborating with its suppliers to help them to achieve innovation, which in turn improv es efficiency in its supply chain. Business Conduct and Operational Activities DHL has strategically chosen to simplify its procurement system in order to achieve efficiency and effectiveness in its business and operational processes. The company’s procurement strategy focuses on the use of advanced information and communication technologies (ICT) and partnering with only a few certified suppliers. ICT is important to DHL’s procurement unit because it facilitates efficient flow of the information that is required to complete transactions such as placing orders. DHL’s business strategy is to streamline its operations in the markets it operates in by working with selected suppliers who are able to help it to reach customers in different geographical areas (DHL 2013). The company expects to reduce its direct and indirect costs by working with a limited number of suppliers. In particular, purchasing various supplies in large quantities from a single or a few supplie rs is likely to reduce costs through discounts (Pooler, Pooler Farney 2004, p. 47). Working with a few suppliers also helps in centralizing procurement functions (Benton 2006, p.92). DHL has centralized its procurement functions in order to avoid duplication of roles in processes such as selection of suppliers and supplier relationship management. This leads to reduction of indirect costs associated with duplicating procurement activities (Weele 2009, p. 89).  Although DHL’s global procurement decision–making processes are centralized, the company encourages the participation of its overseas subsidiaries in strategy formulation (DHL 2013). In most cases, the company’s purchase decisions are made at its headquarters. However, the subsidiaries in various regions are responsible for implementing the decisions. For instance, the company has worldwide contracts with providers of services such as printing and labeling to enable its subsidiaries to purchase their su pplies easily (DHL 2013). This strategy also reduces the costs associated with shipping materials from a centralized purchasing unit to the overseas subsidiaries (Ogden Carter 2008, pp. 5-28).Advertising We will write a custom coursework sample on Strategic and Operational Roles of Procurement within DHL specifically for you for only $16.05 $11/page Learn More Analysis of DHL’s Procurement Function The effectiveness of the procurement unit is partly determined by its position in the organizational structure (Yin Khoo 2007, pp. 7-24). The organization of the procurement unit illustrates the extent to which it is integrated into the business strategy (Yin Khoo 2007, pp. 7-24). In addition, the organization of procurement function determines its relationship with other departments, which in turn affects its effectiveness (Ashenbaum, Maltz, Barratt 2009, pp. 169-186). Figure 1 shows that DHL’s procurement function is a department under the glo bal business services unit. In this regard, the head of procurement unit has limited ability to influence procurement strategies and policies since he or she reports to the head of global business services, who in turn forwards his concerns of the CEO. Generally, DHL’s procurement function plays a facilitation role since its involvement in various business processes is moderate. In particular, the procurement team is mainly concerned with the purchase of goods and services that facilitate the operation of other departments. (DHL 2013) These include printed materials such as envelops, as well as, maintenance, repair, and operational (MRO) services (DHL 2013). The effectiveness of the facilitation model that has been adopted by DHL’s procurement unit can be evaluated based on its effect on supplier selection, supplier relationship management, and purchase decisions. An ideal â€Å"procurement organization must balance the desire to leverage purchasing power through comp lete ownership with the need to maintain the flexibility of individual business units† (Noor, Khalfan Maqsood 2013, pp. 802-826). This balance can be achieved by adopting an appropriate organizational structure that aligns procurement processes to the company’s needs (Noor, Khalfan Maqsood 2013, pp. 802-826). Moreover, procurement roles, responsibilities, and decision rights must be distributed in a manner that prevents tensions among business units (Pushmann Alt 2005, pp. 34-51). The facilitation model adopted by DHL is effective since it leads to distribution of decision rights according to what is being purchased. The limited involvement of the procurement unit enables the functional units to participate actively in the purchase of complex equipment such as aircrafts (DHL 2013). In this case, the executives in the air freight division are allowed to perform duties such as product specification and most of the sourcing activities. The rationale of this strategy is that the functional units have good knowledge of each of the complex equipment that they use (Stolle 2008, p. 67). Thus, their involvement in the purchase process helps in avoiding the mistakes that might occur due to the limited knowledge of the procurement team (Stolle 2008, p. 68).Advertising Looking for coursework on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More For products or services that are â€Å"less business specific such as repair and maintenance, the facilitation model promotes cooperation between the procurement team and the business units† (Stolle 2008, p. 69). For instance, DHL’s procurement team often provides technical assistance such as evaluation of requests for proposals, whereas the business units identify the product’s specifications. At the corporate level, DHL’s procurement team manages the entire process of purchasing standardized products and services such as office supplies. The advantage of this strategy is that it helps in reducing procurement cycle time and costs (Nicosia Moore 2006, p. 91). However, it can lead to tensions between the procurement team and other business units since the later is hardly involved in the purchase of standardized products. Centralization versus Decentralization The choice between a centralized and a decentralized procurement system is often difficult to ma ke because each system has its advantages and disadvantages (Farmer, Crocker Jessop 2008, p. 123). DHL uses a centralized procurement system where most of the purchase decisions are made at its headquarters. The subsidiaries and each division participate in the procurement process by identifying their supply chain needs and making purchase requests to the head office (DHL 2013). Moreover, they participate in product or service specification and make recommendations to the procurement team.  The centralized approach has the following advantages. Apart from reducing procurement costs, centralization facilitates control of contracting terms and practices (Farmer, Crocker Jessop 2008, p. 123). This helps in maintaining good relationships with the suppliers and sealing the loopholes that can lead to fraud. In addition, centralization leads to specialization and development of skills such as negotiation among procurement staff (Zaman 2011, p. 78). This has enabled DHL to secure the be st deals for its supplies throughout the world (DHL 2013).  Despite its benefits, the centralized system is likely to create the following problems. To begin with, it leads to delays when the company’s subsidiaries are making ad hoc purchases since requisitions have to be processed by the headquarters (Wincel 2004, p. 93). This can adversely affect operations if the goods are needed urgently. DHL has responded to this challenge by providing its subsidiaries with purchasing cards that allow them to spend a limited amount of money to make ad hoc purchases. This has enabled the company to reduce its purchasing costs by 50% and to acquire its supplies in time (DHL 2013). Nonetheless, a decentralized system would enable the company to achieve faster approval of ad hoc purchases (Cherif Maira 2011, pp. 860-877). Involvement of the Procurement Team According to Anderson and Katz (1998, pp. 1-13), the procurement team should be strategically involved in the purchase process at an early stage. Early and strategic involvement enables the procurement team to improve efficiency and reduce costs in processes such as planning and negotiation (Seshadri 2005, p. 98). Thus, DHL focuses on promoting cooperation and effective coordination of the activities of its procurement unit and other departments. This includes using advanced information technologies to share transaction information between departments (DHL 2013). In addition, the company has introduced training programs to improve its procurement team’s managerial skills. The training programs are expected to improve the procurement managers’ ability to work strategically with the functional leadership teams of the company’s suppliers. Apart from improving efficiency, early and strategic involvement creates clarity of the procurement objective that has to be achieved (Moser 2007, p. 145). Furthermore, it enables the procurement team to make accurate product or service specifications, which in turn leads to development of the best technical solutions (Sollish Semanik 2011, p. 117). However, pursuing strategic objectives in procurement is likely to eliminate the possibilities of cost reduction at DHL. Since the company works with a few certified suppliers, the difference between the prices quoted by the highest and the lowest bidders is likely to be very small (Sollish Semanik 2011, p. 119). In this case, the company will not be able to save on procurement costs. In addition, failure to achieve high savings is likely to have negative effects on the motivation of the procurement team since their effort is often measured in terms of cost performance. The procurement team will not be rewarded if they are not able to realize meaningful savings. Thus, they will have little or no incentive to participate in strategy formulation at the corporate level. Supply Base Optimization Supply base optimization refers to the process â€Å"of determining the right mix and number of supp liers to maintain† (Ogden Cater 2008, pp. 2-28). The objective of supply base optimization is to identify the ideal number of suppliers who are able to deliver the required goods in a timely and cost-effective manner (Ogden Cater 2008, pp. 2-28). DHL’s approach to supply base optimization involves switching suppliers and reducing the number of tier one suppliers (DHL 2013). In order to select the right mix of suppliers, DHL incorporates supplier development functions in its supply base optimization process. The process begins with identification of the company’s strategic supply chain needs. Once the needs are identified, the company recruits competitive suppliers and sets performance metrics to assess their achievements. The company uses a problem-solving approach to develop its suppliers. This approach involves cultivating open relationships with suppliers through feedback and sharing of information (DHL 2013). Supply base optimization initiatives can only be effective if they are supported by an appropriate supplier evaluation system (Chang, Tsai Hsu 2013, pp. 34-51). In addition, the company must be able to reward its suppliers by awarding them long-term contracts. This is likely to be a challenge to DHL since it lacks a clear guideline for rewarding its suppliers. In addition, DHL is likely to lose its competitive advantage by entering into long-term contracts with suppliers of commodities such as oil whose prices keep fluctuating (Vagstad 2000, pp. 949-963). For instance, the company might not be able to benefit from price reductions in the market after entering a contract for the supply of a particular commodity at a specific price. Recommendations DHL should consider the following recommendations to enhance the effectiveness of its procurement unit. To begin with, the procurement unit should be allowed to play a strategic role in the organization (Ukalkar 2000, p.78). The company should reorganize the procurement function by allo wing it to operate as an independent unit that reports directly to the CEO. This will improve the process of making strategic decisions by enabling the head of procurement unit to participate in strategy formulation at the corporate level.  The company should also rethink its supply base optimization objectives because reducing the number of suppliers does not necessarily lead to a reduction in costs. Specifically, the company should have an optimal number of suppliers in order to reduce costs (Weber Ellram 1993, pp. 3-14). The gist of this perspective is that the competition between suppliers will be minimal if their number is very small. Consequently, the possibility of reducing costs through low bids will be diminished. On the other hand, having a large number of suppliers will increase the cost of supplier relationship management. Apart from identifying the right number of suppliers, DHL should establish a better reward system for its procurement team. Cost performance should be used in conjunction with other metrics to evaluate the achievements of the procurement team (Benton 2006, p. 137). This will motivate them to participate in strategy formulation in order to improve the company’s efficiency.  DHL should also improve its supplier development approach by adopting advanced technologies such as e-learning. Currently, the suppliers are supported through periodic training programs and incentives to innovate. However, better performance can be achieved if advanced information technologies are used to enable supplier to access the company’s knowledge base to improve their performance (Doherty, McConnell Chadwick 2013, pp. 495-515). In addition, the company should establish a proper supplier reward system that recognizes performance and innovation. This will enable the company to benefit from its supply base optimization initiatives. Implementation Plan The company should begin its restructuring process by identifying its procurement need s and setting appropriate objectives. Once the procurement objectives are clearly specified, the company should redefine its organizational structure by establishing the procurement function as an independent unit that reports directly to the CEO. The Unit should be allowed to shape policy and to set guidelines for procurement functions such as purchasing and evaluating suppliers. Adopting advanced information technologies to support the suppliers should be considered as a strategic spend and a long-term corporate objective (Murray, Rentall Geere 2008, pp. 540-555). The company should focus on incremental improvement of its supplier development model through systematic acquisition and implementation of user-friendly information systems. The incremental approach will help in alleviating the resistance that is likely to be experienced if the improvements are implemented as a revolutionary change. Conclusion The procurement function is central to the success of DHL since it enables it to access key supplies that determine the quality of its services. However, the procurement function has not been given adequate recognition by being allowed to operate independently. The company has adopted a centralized procurement system to reduce its operating costs. Similarly, it has embarked on supply base optimization to reduce the costs associated with managing suppliers. However, these initiatives might not lead to cost reduction if they are not implemented effectively. 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