Financial Risk Management Essay Sample free essay sample

Abstraction Thepurposeof this survey is- To happen out whether investors receive equal information sing the hazard faced by the entity. to enable them measure a company’s public presentation non merely on return but besides on the hazard assumed in order to bring forth the returns Theaimsof this survey are- LITERATURE REVIEW Adams Wood. in his book Foreign Exchange Risk. defines fiscal hazard direction as pull offing the uncertainnesss environing possible investings. A undertaking or an investing is considered hazardous if there is uncertainness sing the realisation of expected hard currency flows. Fiscal directors and investors keep contriving new ways of raising money and avoiding hazards. Changes in involvement rates can do borrowing money really expensive and really dearly-won. Corporate fiscal directors. every bit good as investors need to do certain that possible economic fluctuations do non endanger the house or their concerns. Smart investings and funding determinations are important to a houses and an individual’s success. For smart investings to be undertaken. investors and persons should be to the full cognizant of the hazards environing their investings and possible returns that would be generated from their investings. Many companies prefer to supply minimum information to investors sing the hazard faced by their companies. They normally prefer to maintain it under screen since they know that many investors prefer taking really minimal hazards at the same clip anticipating high returns. which in most instances. is non the instance. since companies that generate more grosss are those that are willing to take high hazards. This has led to what is known as ‘Agency Problem’ . which refers to the struggle of involvement between companies and their stockholders or investors. Most companies hence leave investors to detect on their ain the hazards they face. These has affected most investors. since they put their money in companies without all the relevant information on the degree of hazards they are being exposed to. go forthing them with the premise that their investings will ever make good and that they will acquire high returns which is seldom the instance. Among the companies that filled the questionnaires. there were some companies. which provided sugar coated information ( e. g. originative accounting ) . These companies would do certain that they systematically get good returns but did non pass on to investors the degree of high hazards that they exposed their investings to. These companies withheld information. since they feared losing investors. who were the major subscribers to the capital base of the company. There should nevertheless be the realisation that. every peculiar investing has some degree of hazard inherent in it. Hazard and Return are closely correlated. Companies and persons can non avoid hazard. because by its really nature. concern and investings involve taking hazards. in order to work the available profitable chances. However. the company should non take unneeded hazards. neither should they take hazards that are out of character and which the stockholders do non anticipate. High hazardous investings normally have higher returns than low hazardous investings. In add-on. investors vary. from those who are willing to take high hazards. to those who are willing to take minimum hazards. M. Rees. in his article. ‘What type of investor are you? ’ classified investors into three classs. every bit far as hazard is concerned. They included- They are those investors who admire hazards and will set about a given investing if it promises a higher return irrespective of its hazard degree. They are those investors who do non look up to hazard and will prefer undertakings with a lower hazard degree. Before investors receive any equal information about their investings. they should be to the full cognizant of the degree of hazard they are willing to take. On the other manus. all companies have the duty to supply the relevant information that may impact the stockholders investings. Companies are required to supply prospectus to new investors. be aftering to shoot their financess in the company. A prospectus may be defined as a legal papers prepared to depict what the concern or company will make. every bit good as who the managers of the corporation and its major investors will be. An investor will be able to cognize whether the vision. mission and the ends of the company relates or reflects with his ain. Company’s Acts. Government Regulations. and capital market regulators have besides made it a demand for all listed companies to do revelations of their fiscal statements to investors and the populace. This capable companies to scrutiny from members of the populace. hence heightening transparence of company’s activities. There has besides been a greater accent in recent times. of an bureau relationship between corporations and their investors every bit good as a greater run on companies to prosecute themselves in corporate administration activities. This is expected to cut down struggle of involvement among companies and investors. Corporations should accurately show the hazard factors to investors. This would assist investors make up ones mind where to put and find the hazards they are willing to accept. It would besides assist investors make estimations of Returns on Investment ( ROI ) . Corporations and investors may utilize statistical methods to accurately step hazard. They may find the Expected Monetary Value ( EMV ) . the Standard Deviation and the coefficient of fluctuation of their investings or undertakings. The expected pecuniary value is an norm of all expected hereafter hard currency flows of any given undertaking. Standard Deviation is a step of the stringency of the chance distribution. When pull offing hazards. it is advisable for investors to unite assorted investings. in order to cut down their hazard on investings. Stockholders investings are normally capable to assorted hazards. They include political hazards. cultural hazards. exchange rate hazards. legal hazards. technological hazards. market hazards. and fiscal hazards. In my thesis. I will concentrate on involvement hazard and currency hazard. Foreign exchange hazard arises due to the demand to cover with more than one currency and consequences from possible alterations in the values of these currencies relative to each other. The exchange rate is the monetary value of one currency in footings of another currency. The foreign exchange hazard is present whenever a companies assets are denominated in the currency of its ain currency and it operates in the foreign currency. There exist three major types of exchange rate hazard. Companies are required to turn to the hazards of involvement rates and foreign exchange rate. They may use assorted methods of pull offing hazards. so that investor’s returns become safe. The schemes they employ include. The most common and operable methods that companies and investors ought to utilize to mange currency hazards and involvement rate hazard include- An option is the right to purchase ( name option ) or to sell ( set option ) the implicit in plus at a specific monetary value ( exercise monetary value ) within a specified period ( exercise period ) . Option contracts as a method of hazard direction are zero sum games. because the additions to one party is equal to the losingss of the other party. It arises when a purchaser has a right but non an duty to buy the implicit in security at a specific monetary value in future. Since he has a right but no duty. he will usually near the marketer to buy the implicit in security when conditions are favourable to him but unfavourable to the marketer. The purchaser is usually required to pay a commitment fee known as premium. It gives the marketer the right to sell his security at an in agreement monetary value ( exercise monetary value ) within a specified period. Normally. the marketer will exert the put option when conditions are favourable to him but unfavourable to the purchaser. For this ground. the marketer will be required to pay a committedness fee to the purchaser. 2. Use of barters This refers to a common understanding to interchange the duties underlying a given dealing. The major purpose of swapping is to fudge against the bing hazard by reassigning the current duty to a new duty. There are usually 2 types of barters: The purpose of this barter is to alter the duty from a state of affairs where payment is made in one signifier. to a state of affairs where payment is made in the foreign currency. For illustration. Assume that there are two companies. one is a UK company wishing to borrow Kenyan shillings. to finance an investing undertaking in Kenya. If the UK Company is non known in the Kenyan Market. it will hold to pay higher involvement rates than the Kenyan companies pay on the Kenyan money market. To set up a barter the American company will hold to place a Kenyan Company confronting similar jobs of borrowing the UK lb. The two companies will therefore arrange the undermentioned barter. Even though the usage of barters is a good hazard direction tool. there are some hazards normally associated with it. They include recognition hazard. Market hazard. Sovereign hazard and Mismatch hazard. This refers to a fiscal understanding between two parties with respect to exchange of hard currency flows related to a specific implicit in duty. The cardinal aim is to change over the loan. which is in the signifier of a fluctuating involvement rate into a loan. which is in the signifier of a fixed involvement rate. In involvement rate barter. one company may be interested in fudging against the fluctuations in involvement rates while another company may be interested in guess. 3. Matching It involves making a liability if there is an plus receivable or making an plus if there is a liability to be paid. For illustration. if the company is to have some money and its major concern is to fudge against the grasp of the local currency. so the company can borrow abroad therefore making a liability. In this instance. the decrease in the value of the sum receivable ( plus ) will be compensated by the decrease in value of the sum collectible and vice-versa. In this instance. a loss through a liability bing or created is compensated by the addition through an plus existing or created. 4. Leading and Laging This involves fixing or detaining payment or reception of money as a manner of seeking to cut down hazard. In taking. the exporter fastens the reception of the sum due if he anticipates the local currency will appreciate. On the other manus. an importer will besides fix the payment if he anticipates the local currency is traveling to deprecate. Laging leads to the hold of payment. For illustration. the exporter will detain the grosss. if he anticipates the depreciation of the local currency. while an importer will detain payment if he anticipates grasp in the local currency. 5. Money Market Hedging It refers to borrowing abroad or puting abroad. so that the cumulative sum will help in paying the sum due for an importer or the cumulative sum will help in fudging against the inauspicious motion in the exchange rate. Borrowing applies to an exporter. in the instance where the exporter can borrow abroad and put locally. He will so utilize the cumulative sum receivable to pay the sum due. In this manner. the exporter will be able to pull off the inauspicious motion in the exchange rate. 6. Future They are promises to purchase or sell something in the hereafter. at a given monetary value that is agreed upon. They are trade on organized hereafter exchanges. 7. Forward They are similar to hereafters. but they are arranged straight between a house and a bank. Firms and persons may utilize derived functions to cut down hazard. every bit good. as speculate through purchasing and merchandising of derived functions in the hope of gaining net incomes. When these guesss do non work out. losingss can be significant ; hence. investors should take great attention when covering with them. For illustration. the UK Barings. one of the world’s oldest Bankss. collapsed in 1995 due to hereafters guess by one of its bargainers. Harmonizing to John Smith. in his book ‘Summary of Risk Management Models. ’ he concludes that. there is no 1 individual method that confidently res confirm its capableness of wholly fudging hazard. It is hence upon the company and investors to take the hazard direction theoretical account that would outdo cut down their exposure to any given hazard. In decision. corporations are expected to unwrap all their activities to investors. so that investors may measure the hazards before puting. Investors should so compare the hazards and the returns. and find whether. it would be feasible to put in that peculiar undertaking. Mentions

Trains free essay sample

Click clack. Click clack. Click clack. The train bumped its way across the tracks stretching off into the horizon and out of sight across the huge open field. Far in the distance, there were the sharp, unforgiving silhouettes of the mountains, but the closer landscape was flat and smooth; it was lonely, but friendly and familiar. Every now and then, the telegraph wire running alongside the train collided with a pole before continuing its journey. Small patches of the bright blue open sky were covered by tufts of white clouds and one imposing blob of coal colored smoke. This was home. The railroad engineer pushed his sweaty cap higher up on his head as he scanned the horizon, searching for any reason to change anything. This was his life. Speed, distance, brakes, directions, stations, handling. It was all he had to know. He did not understand how anyone’s brain could be small enough to only hold that tiny bit of information. We will write a custom essay sample on Trains or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page He had perfected everything he â€Å"needed† and everything he was supposed to know long ago. Slowly, he started gathering new information. He noticed the way the clouds gathered and the cows collected under the trees when rain was coming. He saw the way the grass bent under different forces of wind and how it fluttered when the train whooshed by. He felt the shifting of the joints between the cars from the changing speed of the train and the different amounts of force it took to move the train depending on the type of cargo he was pulling. More than anything, he observed the small, almost unnoticeable weight that his weekly pay added to his pocket. Technically, it was enough. He could live off the small amount of money he had jingling softly in his pocket any time the train rolled over a badly nailed cross tie, but that was all he could do. He could only live this life, sleeping in the train, eating at the station while his cargo was unloaded and the next set of cars was att ached and have only a small amount of left over money saved in case an emergency came up, and he needed to repair some part of his train. It wasn’t what he wanted. His life was like the tracks the train was rattling down; it was straight and unchanging and appeared to be so far, far past the horizon line. That was something else he had learned. A sudden change in the straight yellow grass caught his attention and he turned his head to look out the right window. Old, rusting, black cars lay in pieces, strewn across the landscape for a mile or so, as good as he could guess. He found himself wishing that one of those cars had belonged to him, that he had once had the kind of money that everyone else in America seemed to have. The American Dream was scattered across the dead, dry landscape before him; it had been discarded before he even had a chance to grab a piece of it. He would give anything for a normal life. He imagined a pretty girl with a bright smile and rosy cheeks kissing him on the forehead before raising herself clumsily from her chair and crossing her hands beneath her belly, carefully supporting their son-to-be. Their first child, a little girl, was sitting on the floor, playing with a yarn doll he had helped her make before dinner, which was delicious. His wife was a wonderful cook. Their house was cozy and tid y, full of little objects and collections that made it feel like home, and one of those black cars was parked on the street outside. His day dream slowly faded away as the graveyard of skeleton Fords left his sight. He turned back to the front window, noted a landmark he knew and began the process of slowing the train. A station was approaching. This was his life.

Warfare in Elizabethan England essays

Warfare in Elizabethan England essays War was a common thing in Elizabethan England with a gruelling 40-Year war going on in Italy between Charles V of Spain and Francis I of France. The front line on most battlefields would consist entirely of Pike men; these were the most common of all soldiers and the most deadly. Each carried a wooden pike tipped with metal that could be as long as 5.5metres. Behind these Pike men would be the soldiers known as Arquebusiers who each carried a large 10kg handgun known as an Arquebus. These handguns were heavy and cumbersome but when used correctly could pierce armour at a range of up to120metres. Cavalry were only effective when catching fleeing or lightly armed troops but would not normally penetrate against a good front line. New artillery were introduced before 1600 in the form of a new lightweight cannon that fired iron cannonballs or packets of bullets called grapeshot. These replaced the older cannons that required several horses to move and had only a short range. With the new cannons came new strategies, and new fortresses. The fortifications became deep trenches protected by the heaped up earth on one side. New forts became smaller and not as tall, they were designed to withstand cannonballs and became basically one big gun platform. ...

Advanced and Clinical Immunology Essay Example | Topics and Well Written Essays - 1000 words

Advanced and Clinical Immunology - Essay Example Consequently, IgE immunoblotting was mainly required for determination of the foods to evade in trying to help the patient feel better ((Phipatanakul et al, 2004). 4. Th-2 like cells can be identified in the peripheral blood and lesions of atopic-dermatitis patients producing IL-4, 5, 13 and also IL-17 from Th17 cells. Explain the role(s) of these cytokines in allergy (10 Marks). Â  IL-4, 5, 13 are important for allergic responses and elimination of parasites. Th17 cells are the newest members of the Th cell family and produce the IL-17. The Th17 cells are involved in host defense with a role of protection against extracellular bacteria through activity on both the immune and non-immune cells, they have also begun to be associated with the pathophysiology development of allergic diseases such as atopic dermatitis (Cox, et al, 2008). Â  Mast cells PGDs, Basophil histamine and Eosinophil Cationic Protein (ECP) are essential constituents of allergic inflammation. Succeeding fixation of IgE to FceRI receptors on mast cells and basophil histamine is vital to the initiation and proliferation of immediate hypersensitivity reactions. Mast cells, basophils, and the eosinophils are major effector cells in the allergic inflammation (Yazdanbakhsh et al, 2002). Mast cells indirectly contribute to asthmatic reactions. Its presence causes A when the activation by multivalent Ag and the IgE, mast cells produces many inflammatory mediators, which includes histamines, eicosanoids, and proteases with PGD2 in high quantity.

Samedaymay30 Peer Response DQ1AB and DQ2 NA8 Essay

Samedaymay30 Peer Response DQ1AB and DQ2 NA8 - Essay Example It is my opinion that decentralized companies are more effective and productive. The effectiveness of a centralized company is highly dependent on the skills and capabilities of the upper management team. Companies that use a centralized system typically coordinate the efforts of the company from its corporate headquarters (Lexisnexis, 2012). Your example about Ford Company was very informative and aligned with the course discussion. I agree with you that companies that want to consolidate power at the top utilize the centralized organization structure. A few years ago I worked at a company that used a centralized structure. This organization was very effective because the CEO was a charismatic leader. A charismatic leader is a person that is able to have a profound and extraordinary effect on followers due to his personal abilities (Schermerhorn, Hunt, Osborn, 2003). This CEO had great ideas and he utilized a tremendous strategic approach. The employees did not have power or responsibilities beyond their work duties, but most the employee were happy with the firm because the workers were respected and appreciated. An example of respect in the workplace is using people’s ideas to change or improve work (Heathfield, 2012). I have never worked in a U-form organization, but based on your description of this structure I believe that U-form organizations can be very effective in the business world. Lexisnexis.com (2012). Forms of organization: centralized vs. decentralized Retrieved May 25, 2012 from

Music industry and effect of digital world

Music industry and effect of digital world The marketing department of a record label plays a large part in portraying an artists image to its fan base and the music industry. Once an artist has produced their music and is ready to be made public, it is up to the marketing department to make sure that it is made available in all media formats. This is done solely through a range of distribution and promotion campaigns. This case will look at the current situation of the music industry and analyse the effect the new technologies and the digital world are having on record labels and artists. Firstly by looking at a micro and macro environmental view point using various analysis models a better understanding can be made of the music industry in its current state. Once establishing the fundamentals areas by which record labels can advance objectives will be set and followed by promoting and distributing an up and coming artist to her target audience. This record label is called Mystical Records and currently manages one, up and coming artists called Thallie. Thallie is originally from Mauritius, however is now based in the UK and is looking for her big break. Back at home in Mauritius she has be compared with the likes of Shakira and Whitney Houston due to her singing style. Thallie is an urban artist, producing songs in a range of genres from RB to Dancehall. She has made a name for her self back in Mauritius, and now feels that is time to tackle the international markets in particular to the UK and US music markets. 2.0 Analysis The music industry will be analysed through both a macro and micro environmental aspect. The macro environment will be analysed using a PEST analysis, therefore determining all external factors of the music industry. Examining legal factors concerning illegal downloaders which are affecting record label sales, and to establish any government action taken to tackle this problem. Economic factors will be analysed in terms of income and revenue of artists and record labels. The most important element being the technological factors which are also heavily influencing social factors within the music industry, through recent developments in social and mobile networks. Secondly by looking at the micro environment using Porters (1979) five forces model a better understanding of the industries levels profitability. This model shows how customers, competitors, suppliers, distributors and dealers are all affected with the recent changes in the music industry. A major factor towards recent changes of power and relationships has been due to advances in technology over recent years. The internet has affected many industries, however with the surge in social networks and peer-to-peer (P2P) sharing systems the market share of major record labels has been hit hard. 2.1 PEST Analysis 2.1.1 Political / Legal Factors Major record labels are being turned against obtaining information on customer communications from telecom companies by European American Parliaments. This is due to the greater risk of terrorism occurring. (Appendix 2). This information could be also be used to gain access to private information by the music industry. (Appendix 2). Many cases have been held against illegal downloaders by the music industry. (Now over 150 cases in the UK, according to the British Phonographic Industry.) (Appendix 2). A large majority of illegal downloaders obtain music through peer-to-peer (P2P) sharing software; therefore by taking legal action against P2P operators, there can be a step forward in tackling a large number of illegal downloaders. (Appendix 3). Kazaa (large P2P sharing software company) paid $115 million to record labels in compensation due to a case by the Australian Federal Court. (This has been the largest case of its kind.) (Appendix 3). Similar cases have taken place under courts of law in Denmark, Netherlands, Russia, Taiwan. (Appendix 3). By signing agreements with record labels to become legal, P2P sharing software operators can escape being prosecuted. (Appendix 3). As technology evolves so does the level of crime. For example the evolution of digital radio stations (Digital Audio Broadcasters (DAB)) has lead to the evolution of DAB ripping. (Appendix 3). The likes of Apple are being restricted by having their music offerings only available on iPod players, and therefore believe by having copyright protection removed by record labels, there can be a better turnover for all parties involved. (Appendix 13). The current traditional method of record labels is that they keep the copyrights of artists recordings, which generally leads to the record label being profitable and the artists breaking even. (Appendix 7). A new possible method of keeping the music industry profitable may be by legalising file sharing and giving artists / bands control over their own music. (Therefore working with a collapsed copyright system.) (Appendix 7). 2.1.2 Economic Factors There are more methods of opportunities for artists / bands to both increase revenue and exposure, through CDs, digital downloads ringtones, concerts, TV shows, and video games. (Appendix 7). Concert ticket sales have increased immensely over recent years and have become major events in an artists / bands diary. (Appendix 7). A recent revision by the American President of the tax code has made it easier for intellectual property to be sold in the US, which therefore means that another possible method of development for the music industry can be through making artists / bands their own public company. As profits are taxed with low rates and intellectual property being fully accessible, their can be the possibility of artists / bands being invested in via the stock market. (Appendix 7). Due to the slow take up by the music industry of the digital world, there were slumps in sales by up to 7% in 2002 and 2003, by 2006 this figure had decreased to 4% and the music industry was showing signs of competing in new markets. (Appendix 17). Within a year in 2006 there has been an increase in sale of singles by 78% in the UK, therefore showing the change in trend of purchasing and obtaining music. This is due to this new digital age operating in full force. (Appendix 11). In Europe from 2005 to 2006 alone, there was an increase in single downloads of 80%, up to 111 million single tracks downloads. In the US during the same period there was an increase of 65% up to 583 million single tracks downloads. A calculation of the entire worlds single track download was made during the same time and was shown to have increased from 420 million in 2005, to 795 million in 2006 which is an 89% change. (Appendix 12). Music charts were traditionally accounted for through sales of singles and albums, now with recent changes the Top 40 charts are now calculated including downloads. (Conducted by the Entertainment Retailers Association, (ERA)) (Appendix 11). Digital music sales increased by $0.9 billion within a year from 2005, which includes both downloads to computers and mobile phones. (Calculated to be a tenth of all music sales.) (Appendix 17). Radio has been one of the most important formats by which new music is promoted, and in recent years there have been many mergers within the radio industry. With there only being a handful of companies left covering the majority of the national network, there has been a large homogenisation of the airwaves. This has meant that it is now even more difficult for artists / bands to get their music on to radio and promote the singles and albums. (Appendix 14). 2.1.3 Social Factors The increase in social networks has lead to artists having the opportunity to get the first major breaks in the industry. The popularity of social networks has lead to there being awards for the most number of friends for artists on social networks like MySpace. (Appendix 5). Fans are given the opportunity to share their interests in music, artists / bands and send/receive pictures from concerts, interviews etc. via discussion blogs and forums. These various applications are all being recognized within the music industry leading there to be a range of awards for artists. (Appendix 5). In addition to this many fans socialize on websites such as YouTube, where various video clips are shared and commented on, therefore giving many up and coming artists with small budgets an opportunity to be made aware. (Appendix 8). The innovation of music online has lead their to be sites such as Last.fm which makes it possible to connect fans through similar music tastes which aids the awareness of artists and fan groups. (Appendix 5). The rise in social networks has lead to the phenomenon of making fans into marketers indirectly. As fans communicate and get involved with their favourite artists online offerings they are said to be in the process of online word of mouth. (Appendix 7). The changes in chart rules, allow up and coming artists to make their big break, this is through including online downloads to be which is allowing fans to have more control and influence over music. (Appendix 9). As selling CDs is no longer enough to generate revenue, many other formats have been given better consideration, such as ringtones, concerts and video games. Each of these formats plays a part in influencing social groups and fans. For example ringtones can portray a persons music taste which in turn can relate to that persons social group. Concerts are a more traditional format where fans gather in a social aspect to see their favourite artists perform. (Appendix 7). The 20th Century showed a mass growth in the music industry, which linked music with intellect and in turn with social status. With classical and jazz music being linked with those who are intellectually elite, while pop and rock seemed to be linked with the general population. As the 20th Century developed, so did music in terms of their being more variations of genres. For example in the 1970s the emergence of progressive rock. (Appendix 7). Through developments across the world, in particular with technology and communications there have been changes in the style and influence of music. With musical influences coming from African, Jamaican, Latin American and Asian music through various means of media coverage all effecting social changes. Through increases in the number of university students there has also been a huge surge within the clubbing industry. This social activity has therefore lead there to be a direct link with music. Larger clubs offer a range of music genres each in separate rooms; where as smaller clubs play certain genres of music catering to the crowds tastes. 2.1.4 Technological Factors Technology has changed dramatically in recent years and has taken the world by storm, in particular within the music industry. An example of this was the introduction of online software called Napster, which was the first P2P sharing system. The recent developments in online social networks has allowed for there to be an added communication method between record labels and their artists fans. Every EMI artist now has a MySpace page allowing fans to swap news and post stories, share their video clips taken live from their mobile handsets. (Appendix 4). Digital technology specifically has grown at alarming rates; video directors now have to create their productions so that they play well with mobile devices with 2 inch screens. (Appendix 4). There are increasing range of formats by which music sold in this new digital era, for example USB singles and mobile packages. (Appendix 4). The advance of new technology is making is easier for record company marketers to target large portions of the youth and adult markets, through mediums such as social and mobile networks. (Appendix 5). The number of mp3 player inventions has also surged in recent years with market introductions of the Apple iPod and the Sony iRiver. In this case a large majority of the music is downloaded via P2P networks. There are increasingly becoming more and more formats where music can be applied to. (Appendix 7). New technologies have influenced relationships in the music industry greatly, as artists become more independent the major record labels are loosing out, and the fans are dictating what they want from music and having more communication with artists. (Appendix 8). Music downloaded to computers, mobile phones and any other digital device are all now calculated when establishing music charts due to their large presence in this modern era. Information and communication technology has created a new platform for music. (Appendix 11 12). The digital era has largely affected the methods by which music is created and performed. It is possible to a produce a single track or album simply with using a home computer giving opportunities to thousands of artists looking for their big break, where previously they would not have been able to. Buyer Power (HIGH) Buyers power is strong therefore influencing the industry. Developments in technology and resources mean a range of choices are available by which music can be purchased by customers. Instead of just CDs, music is available online, on mobile phones and other digital devices. Rivalry/Competitive Environment (HIGH) For a long time the five major record labels have profited from economies of scale, however the digital era has affected revenues. As more artists produce under their own record companies, the market share for each company consequently falls. The industry is becoming competitive at an alarming rate. Threat of Substitutes (HIGH) The internet has provided fans and customers with opportunity to purchase music from a number of locations therefore making record companies work hard at delivering the product at the right price and formats. As technology develops so does the number locations by which music can be applied. Threat of New Entrants (MEDIUM/LOW) The internet has lead there to be lower barriers to entry, allowing artists to set up their own record companies and to sell music themselves through new online channels. If new laws were to be put in place then there could be a possibility for the large record labels to regain some control. Supplier Power (MEDIUM/LOW) Previously record labels had a large influence on an artists career. However now in this digital era artists have more control of the distribution of their music and the record labels have less control over the artist. However as record labels come with large financial resources they have the opportunity to exploit all media formats professionally. 2.2 Five Forces Model of the Music Industry (Porter, 1979) 2.3 SWOT Analysis Below is a SWOT analysis of Mystical Records showing its the present assets and offerings and all future possibilities. STRENGTHS WEAKNESSES Low overheads such as staff. Talented artist roster. Thallie has a good reputation in Mauritius. Good product range. Access to a larger target market with online outputs. First to initiate online concerts. The ability to sell music at low prices therefore enticing new fans to engage in Thallies music. Difficult to establish on traditional formats like primetime radio. Lack of financial resources could still hinder the process, but less so with online outputs. Lots of risk due to some lack of expertise and staff. Possibly the same media outputs as competitor record companies therefore making the market hard to become established in. OPPORTUNITIES THREATS As technology develops more opportunities to apply music. To establish a larger fan base for artist roster at a quicker rate. To make artist roster internationally recognised. New sources of revenue e.g. ringtones and video games. Sell single tracks that are performing well in local markets to major record labels to market yet receiving royalties and retaining intellectual property rights. Lots of competition, with many artists creating their own record companies. Lack of piracy control. Major record labels re-establishing market share through new innovations. New legislations could cause problems in terms of artist awareness. Consumer tastes are ever changing. 3.0 Aims Objectives When developing the objectives many were discarded taking budget and resources in to consideration. The above objectives are a good indication as to what Mystical Records could achieve once various marketing tools and strategies have been implemented. Corporate Mission / Aim To become an established company both online and offline, that solely signs, promotes and manages up and coming artists. Key Objectives To raise the bulk of revenues though the online activities. To establish up to 8 digital communications of music for each artist. To establish a range of promotional activities in order to increase awareness of the artist roster. To establish a fan base of at least 8000 people through online social networks in 12 months. 4.0 Segmentation Mystical Records is a record company that manages artists under urban music style, therefore covering music genres such as RB, Hip Hop, Dancehall and related styles. Therefore automatically segmenting the entire population to those only interested in urban music. Further segmenting is derived through geographic, demographic and psychographic variables. 4.1 Geographic Geographic Segmentation defines customers according to their location (Brassington Pettitt, 2002). As a company based in the UK the large majority of current and potential fans will be from surrounding areas. Due to the majority of media outputs being online the potential fan base extends to a global field. As Thallie has a big background in Mauritius, the population there is part of the potential fan base. 4.2 Demographic According to Brassington and Pettitt (2002), demographic segmentation tells you a little more about the customer and the customer household on measurable criteria that are largely descriptive, such as age, gender, race, income, and occupation. Music in general has been almost equally shared between genders over the last 10 years. (Appendix 15). Though urban music originates from black African Americans, our offerings are for those of all races. The large majority of the population that engages in music via the internet are those aged between 16 to 25 years old. (Appendix 5). Urban music within the American markets only consists of roughly 22% of all music, however with digital innovations giving the ability to remix music into other genres the majority of the youth to adult market are potential fans. (15 to 29 years old) (Appendix 15). This age range concentrates on those who are students to working professionals; however the music on offer is available to all, especially due to low prices. 4.3 Psychographic Psychographic bases for segmentation centre on perceptual issues. (West et al, 2006). This element of segmentation considers those who listen and live urban music. Therefore including those who listen to specific radio stations and shows, those who attend specific night club events (both clubbers DJs), those who are involved with online networks, blogs and forums, and all related fields to urban music outputs. In particular our online offerings will be directed towards internet users and online social networkers. With music videos being placed on site such as YouTube to raise awareness and let fans comment on. YouTube carries more than 100 million videos a day (Appendix 8). 5.0 Targeting Now that the market segments have been established, strategies must be put in place in order to target each segment. Due to the majority of outputs being through online mediums, it is possible to apply music to more entities with both lower costs and lower risk. There are 3 general strategies by which targeting can occur (Dibb Simkin, 1996): Mass Marketing Strategy: This is where one marketing strategy is applied to the entire market, which leads to low production costs but carries this disadvantage that all customer seek different benefits. Multi Marketing Strategy: This is where the one large market is broken down to smaller markets and all offered different marketing strategies. This method caters for all however in some circumstances can require large financial resources. Single Marketing Strategy: This strategy is sometimes known as a niche strategy, where all marketing efforts are concentrated on one particular market. This can be very risky however if successful can be profitable. For Mystical Records the most viable targeting strategy would be a mixture of both multi and mass marketing strategy. As there will be a range of media outputs used, where there will be slightly different marketing strategies for each, there will be an element of a multi marketing strategy; therefore each media output will relate to a particular segment. Other segments that will be targeted differently include offline segments, such a night clubbers, DJs, and other media outputs. However in general for online segments there will be one mass marketing strategy and for offline segments there will be a mass marketing strategy therefore making it a more effective and competitive method for such a company. 6.0 Positioning As the music industry becomes increasingly competitive, in particular with more and more artists producing music under their own record labels it is important to be established as a recognised and positive company. According to Fill (2006) all products and all organisations have a position. In terms of Mystical Records becoming recognised within the industry and having more artists to sign with us, the marketing message of being a fun and innovative company will be sung. In particular our offering of online concerts will be the main focal point. In terms of Thallie, she will be marketed as a new up and coming artist with an exotic international background, proving to have some competitive advantage over other artists in similar situations. 7.0 Product Portfolio The product portfolio consists of the distribution of music, produced and marketed in a number of formats, such as CDs, music videos, events, live stream shows and digital downloads. The record labels main feature and source of revenue is the artist roster, which currently consists of one performer called Thallie. Thallie This artist is our first signing and therefore will be given maximum attention in making her a great musician. Thallie is an up and coming artist, originally from Mauritius but now looking to tackle the international market, and is now based in the UK. She is a singer with an urban style, producing music in a range of related genes music such as RB, Hip Hop, Dancehall. Back at home she has been known as the prospering version of Shakira (a world famous artist). CDs This media format will primarily be used as a promotional tool. In order to raise awareness of Thallie and her music, CDs will be distributed to radio stations, and at all events and gigs at which Thallie will perform at. There will be a small number of CDs available to purchase as a support to revenue. Music Videos Music videos of Thallies songs will be produced in order to be placed in a number of outputs. Like CDs, these music videos will be used to promote the artist to her current and potential fan base. The music videos will be uploaded online on social networks such as YouTube, Facebook, and MySpace, therefore allowing and encouraging fans to comment and discuss the artists music and create a following. This method will also be an ideal approach to launching new single tracks and other material. The music videos will also be made available for music television and other related outputs. Events (Offline) In order to raise awareness directly to current and potential fans, there will be a number of events, ranging from concerts, night club events and press releases. This element of the product portfolio will be one of the main sources of revenue, with fans having to pay for concert tickets and night club promoters having to pay a hiring fee for Thallie. Press releases will be the support activity in terms of promotions, however will be used a method to be recognised throughout the entire music industry. Live Stream Shows (Online) In recent years there have been many changes in the music industry, and new concept that has yet to be fully utilized is online concerts. As concerts have been a major source of revenue and as the internet has been the most popular means of obtaining music, putting the two together may possibly be another method by which record labels can prosper. Therefore by hosting live regular online concerts to Thallies global online fan base at a relatively low price a new income source can be created. Digital Downloads To support the live stream shows, digital downloads will be available to purchase at a variety of online locations. Fans and others interested in music will have the opportunity to purchase single tracks, albums, and short video clips. These downloads will be made available via the artists website and P2P sharing programmes, such as iTunes. Figure 1: BCG Matrix of Mystical Records Product Portfolio Music videos, events and digital downloads have all been placed as star products, as they all to have high potential growth and high market share. Music videos and digital downloads in recent years have been increasingly popular formats by which music is distributed and acquired and is therefore seen as a profitable source of revenue. Therefore the primary objective is to maintain and hold their current status and use it as a strategy to only develop and diminish. Thallie and live stream shows have both been placed under question marks, as they both have potentially high levels of growth, however they both currently have low market share. With changes within the industry and with technology as a whole both of these products are under building strategies and are projected to become star products and features. CDs have been placed in cash cows, as they are now seen as a traditional format by which music is distributed, however they will still be used for mostly promotional campaigns with the support of some sales. There will not be any major efforts made to sell physical CDs, but will be an ongoing production in order to maintain some regular income. 8.0 Place Strategies One of the most important processes of a record label is deciding where and how to deliver the artists music to the fans and other end users. By carefully implementing solid place strategies there can be an effective method by which the online arena can make an artists career. As a small record label there are limited budgets available, and therefore any chosen method of distribution must be carried out with due diligence. For Thallie, there will be a range of direct and indirect channels of distribution in order to market and sell her singles, albums and other material. The main location for this will be via the online arena, through her website and the record labels website. However there will be a number of channel intermediaries which will also be used to distribute and sell music to the fans and customers. In support there will be promotions and distribution through offline outlets such as local record stores and at events. The model below shows the various methods of distribution, with both direct and indirect channels. Thallies website can sometimes be seen as an indirect channel; however the same method will be used for future signings, and therefore is a direct link between the record label and the end users. = Indirect = Direct MYSTICAL RECORDS FAN BASE / CUSTOMERS / END USERS Record Stores P2P Sharing Systems Social Networks Thallies Website Figure 2: Channels of distribution 9.0 Promotional Strategies The selection of promotional activities to be used by Mystical Records will be a big challenge. They must suit the companys framework and budget, as well as be executed in a timely and efficient manner in order to achieve maximum results. The promotional campaign will hopefully lead to attracting a larger fan base, increased purchases, and establishing Thallie and Mystical Records within the music industry. A promotional mix will be implemented in order to promote the various musical productions by Thallie to her current and potential fan base. The mix consists of the following elements; advertising, direct marketing, personal selling, sales promotion, and public relations, however areas such as viral marketing, sponsorship and networking can also be included. 9.1 Advertising The first element of the promotional mix is advertising, this is where paid for messages and ideas are published to the public in order to inform, remind and persuade them. In the case of Mystical Records, advertising will be used to promote Thallies musical releases both online and offline. However more focused will be placed on offline advertisements due to their being many free advertising opportunities online. As a large portion of our target audiences are the youth market, advertising on global music websites can be an effective method to both reach and inform them of new offerings and events. Though traditional media formats are decreasing in popularity there are still opportunities to advertise in magazines and newspapers about new releases. However due to financial resources being lower advertising will be selective in terms of placing and regularity. 9.2 Sales Promotions / Incentives One of the most important aspects of the use of promotional tools is the incentives used to attract fans and customers to purchase Thallies music. For new customers registering their details via Thallies website or the record labels website, they will be offered free 10 minute viewing of upcoming live online concerts. This will both engage customers in purchasing the full showing of the concert and attract their friends and family to also register. Additionally monthly draws will be held giving selected customers free viewings of entire live online concerts or the chance to win tickets to regular live concerts or other freebies. For dedicated fans there will be further incentives of receiving free signed posters and CDs or even being chosen to feature in music videos. 9.3 Direct Marketing Once fans and customers have registered their details, information can be sent on a regular basis. For example details about special offers, events and new releases can be sent out through regular monthly emails to fans and customers. Information can be sent in a customised manner, making the communications with fans more personal. Traditional formats of direct marketing can be used a support tool, however due to this method costing a lot to be effective, an eCommerce (online channels) and mCommerce (mobile channels) channels of marketing is preferred. 9.4 Personal S

Obamacare Essay

â€Å"Change will not come if we wait for some other person or some other time. We are the ones we’ve been waiting for. We are the change that we seek.† Those words were famously spoken from Barack Obama during his election period. Following through with those words, he begins to make change in the country. Change isn’t easy, yet you hope it’s worth it in the end. The USA seems to be standing on both sides of the fence when it comes to the changes the President is making with healthcare. March 23, 2010 Obama signed into law Affordable Care Act, or better known as Obamacare. Together with the Health Care and Education Reconciliation Act, it represents the most significant government expansion and regulatory overhaul of the U.S. healthcare system since the passage of Medicare and Medicaid in 1965 (www.obamacarefacts.com). Obamacare was enacted to provide affordable health insurance to 44 million uninsured Americans and to reduce the growth in health care spending. Obamacare has done some important things already, such as prohibiting insurance companies from dropping your coverage if you get sick and has been working with insurance companies who will not cover a person because of a pre-existing condition. However, as with all change there are two ways at looking at the new bill. Obamacare will drastically affect the low-income families in a positive way. In America healthcare is so difficult to afford for the average low-income family, Obama has placed the care on a sliding scale. The expansion will cover over 15 million low-income individuals and families below the 133% FLP mark. However each state has the option to opt-out of providing coverage for the poor. By not providing coverage for the poor, it will leave 2-3 million people without coverage. States that decide to opt-in employers will have to respond by laying people off and making full time employees part time to avoid Obamacare penalties and taxes by not implementing the program. Others will not expand beyond 50 employees to avoid the bill’s mandate’s (Shenk, 2013). The average consumer will see a difference because some businesses are adding surcharges to invoices in to help make up the cost of healthcare coverage for their employees. On a positive note, there would be no annual or lifetime limits, children can stay on their parent’s plans to age 26; FDA can approve more generic drugs driving prices down and breaking monopolies and protections against discrimination for gender, disabilities and domestic abuse. And there will be significant tax credits to the small businesses with less than 25 employees, to help offset the costs of providing coverage to their employees. Obamacare will certainly challenge the nation over whether it wants a national system to be dependent on Washington or rely on dual federalism that protects freedom. The bill doesn’t allow the American citizen the option, if they want to offer or accept coverage; they have to have it or they will be penalized. That doesn’t allow much freedom of choice, however at least they are being offered the opportunity to coverage. Despite the rocky road Obamacare has had to start, it has lived to see another day and each day the kinks are worked out. This bill is here to stay. So, as cchange isn’t always easy, the average American citizen can say that the law will be beneficial to them as individuals, their families, communities, and country.