Qatar Airways Marketing Strategy

Qatar Airways Marketing Strategy Abstract The airline industry has been known to be volatile and competitive. It is volatile in the sense that any negative news either from the services such as air mishap, economic downturn, perceived threat of terrorism, the potential outbreak of the birdflu virus or the factors of production like rise in prices of crude oil impacts negatively on the strategic position of each of the players in the industry be it market leader, follower or challenger. The case of Gulf States (Countries) such as Bahrain, Iran, Qatar, UAE, Oman, Kuwait, Saudi Arabia to mention just a few calls for closer attention. This is because the so Gulf states are have the resources and capabilities to compete in all the four fronts of marketing mix which is often referred as the 4Ps of People, Price, Place, Promotion. In order to wean their economies away from declining oil reserves some Middle Eastern countries pursue substantial investments into their aviation sector. The bulk of these investments concentrates on the United Arab Emirates and Qatar and comprises fleet expansions stoked by massive airport extensions and development projects. The million dollar question is how Qatar airways can turn its fortune from being a market follower in the Gulf airline industry to a leader. In this academic work also, we would use the following framework for evaluating and writing Customers: Who are the organizations customers? Products/services: What are the organizations major products or services? Location/markets: Where does the organization compete? Technology: Is technology a primary concern of the organization? Concern for survival, growth and profitability: Is the organization committed to economic objectives? Philosophy: What are the basic beliefs, values, aspirations, and philosophical priorities of the firm? Self-concept: What is the organizations distinctive competence or major competitive advantage? 1.0 Introduction The airline industry has grown to be one of be one of the largest industries in half century of its existence. Its origin could be deduced from the end of World War l but it was not until World War II that saw peace restored worldwide that accounted for the burgeoning of the business. Statistics have it that the industry often airlift more than 1.5 billion industry worldwide and generates more than $ 300 billion in revenue and employ 1.7 million people worldwide (Hanlon Pg 1,2006). Good to note is the fact that the post World War II airline industry are dominated by state owned airlines known as Flag Carriers and the government which owned them often used them as instruments to further their mercantilist interests or to promote their countries status, power and prestige. Airline business in the Gulf States is often associated with government (Hanlon Pg 2, 2006). Government desire to protect flag carriers often lead to artificial market, in which the profitability of the airlines wer e determined more by the competitors that are allowed to fly the route rather the forces of quality and pricing. Airlines suited in the Middle East currently hold 9% of long haul capacity worldwide. They will be responsible for about 25% of all global long haul aircraft deliveries over the next decade (Flagnagan, 2006). Dubai based emirates airlines accounts for the largest buyer, which approximately 70% of all new long-haul aircraft orders in the Middle East. Some airline commentators predict that come 2012, the airline would double its fleet (Flagnagan, 2006). After Emirates come Qatar airlines. The airline has placed an order of 140 wide body aircraft. The expansion plans of the gulf airline operators are shown in Fig 1 within Qatar airways just like other airlines in the Gulf States is part of the government strategy to diversify its revenue base, economies, commerce, tourism and global transport importance. The airline has a rich mission statement which is Excellence in everything we do. According to a survey carried out by Pearce and David (1987) to analyze the mission contents of airline companies, the mission, it showed that Qatars mission statement is one of the best in the world. Amongst 9 points, it has 6 points. Fleet expansion plans of Middle Eastern carriers (as March 2008). Source Journal of Transport Geography 18 (2008) 388-394 3.0 Current Marketing Mix of Qatar Airways 3.1.1 Product Strategy: New Products Existing ProductsServices is defined as involving one party offering something that is essentially intangible and where the interaction does not result in ownership of anything (Kotler, 2008). Applying Ansoff product grid matrix, it can be said that Qatar airlines is still in market penetration. This is because the airline as was shown in the introductory section of the work, has projected the number of aircraft it wish to buy before 2012. The attributes of a company in growth stage of company life cycle is expansionary qualities. Existing Market Market Penetration Product Development New Market Market Development Diversification ansoffs product / market matrix The attributes of market penetration strategy in which Qatar airways are using include Maintain or increase the market share of current products this can be achieved by a combination of competitive pricing strategies, advertising, sales promotion and perhaps more resources dedicated to personal selling As part of this growth plan, Qatar Airways will extend its route network to 50 destinations by the end of 2003. It has recently added Manchester and Rome to its increasing route network. It will soon be adding Shanghai, Seoul and Tripoli to its route network. (Airhighways Magazine, 2005, p. 1). Secure dominance of growth markets. Qatar airlines have been known to dominate the ever busy African- Middle east air routes. The company always has some flights available from any part of Africa to the Gulf States. The topology of the area has encouraged the airline to operate in product penetration strategy of Ansoff product grid. Its sparsely populated area has encouraged travelling by air for intra-regional transport. Furthermore, a high per capita income that is still increasing quickly, offers a base for a strong aviation industry. But there are socio-economic constraints, limiting both domestic leisure and business travel potential. Increase usage by existing customers for example by introducing loyalty schemes .A market penetration marketing strategy is very much about business as usual. The business is focusing on markets and products it knows well. It is likely to have good information on competitors and on customer needs. It is unlikely, therefore, that this strategy will require much investment in new market research. There is no evidence that Qatar airways is investing on market research because they are not expanding into unknown routes such as Kula-lumpur Sydney route. 3.1.2 Pricing Strategy: Going-rate-pricing strategy Presently Qatar airline practice what is called Going-rate-pricing strategy. The market leader in the middle- east airline industry remains Emirates. Qatar charges its fare based on the price of Emirates which is slightly higher. This is because being the market follower, Qatar does not need to disturb the established market dynamism because it might not be able to compete on the same level with Emirates. Comparing the price of Qatar and Emirates, on the same route of Kuala-lumpur (Malaysia) Johannesburg ( South Africa) Price of Qatar on 21st Nov returning on 23rd Dec from Kuala-Lumpur to Johannesburg Price of Qatar on 21st Nov returning on 23rd Dec from Kuala-Lumpur to Johannesburg 3.1.3 Promotion Strategy: Qatar airlines are not practicing product differentiation but it is practicing promotion differentiation. According to its chief Executive Officer Akbar Al Baker he said that Qatar By offering a variety of entertainment options, we are able to differentiate our passenger service through live entertainment programming while also setting new standards of comfort to ensure we are the airline of choice (Rockwell Collins, 2005, p. 1). Some of their promotion strategies are as listed below and experienced by its passengers are as Biggest and best business class in the Middle East Interactive Audio, Video on Demand Entertainment System Largest personal TV screens in the Middle East Electronic seat controls In-seat back massage First Middle East airline in First Class with flat beds Qatar has engaged the services of Global media industries to help spread the good news. Such internal media include TV Corporate Videos BBC Campaign to position it as a premium carrier CNN testimonials from airline staff Sky News reports as a sponsor of the weather service Sponsors a travel show through Al-Jazeera Qatar is a major sponsor of high profile sporting activities such as World Tourism Day, World Travel and Tourism Council Summit, World Economic Forum, Leading International sports events. Qatar airlines was the official sponsor of 15th Asian Games, Doha 2006. The company has come up with a new product called Flying Oryx Newsletter that it distributes to travel agents. The newsletter is also available through its websites. More links could be established to the newsletter through the Internet. The airlines also give away products to passengers that promote the logo of the Burgundy Oryx and Taking you personally, such as watches, computermice and hand towels. 3.1.3 Place Strategy: This places a little impact on the business strategy of Qatar. Qatar airways like any other airways have developed a system of getting their ticket. Unlike the normal businesses, whose distribution channel goes from the manufacturer wholesaler-retailer-consumer. The normal business cycle Qatar airline and other airways are from the airline operators to consumers when online booking is done or through traveler agent. Airline operator Airline operator Manufacturer Wholesaler Consumer Travelling Agent Retailer Consumer Consumer Traditional Supply channel Online booking channel intermediary booking channel 4.0 MARKET ANALYSIS 4.1 Qatar current market Qatar airways is one of the leading airline industry in the gulf states. There is no hiding from the fact that Qatar airways is building on the booming market of Dubai to feed the ever busy Dubai route. Qatar currently targets those customers who considers Emirates too expensive. Those that want a little bit high quality and class at an affordable price. Qatar market can be divided into two as follows Geographic Segmentation: Qatar Airways is currently operating in most of the regions of the world.They are presently hoping to expand their routes to include the south pacific routes of Australia and its neighbouring countries. Qatar Airways is a dynamic, high service carrier, which utilises the geographic location of its Middle Eastern hub to link 72 international cities. From the UK the airline operates regular services from London Heathrow, London Gatwick and Manchester to Doha. Onward connections are available to cities including Dhaka, Ahmedabad (coming soon), Chennai, Delhi, Hyderabad, Cochin, Mumbai, Nagpur (coming soon), Trivandrum, Malà ©, Kathmandu, Islamabad, Karachi, Lahore, Peshawar, Colombo, Denpasar, Jakarta, Kuala Lumpur, Myanmar, Yangon, Cebu, Manila, Singapore, Bangkok, Ho Chi Minh City, Bahrain, Mashad, Tehran, Amman, Kuwait City, Beirut, Muscat, Dammam/Dhahran, Jeddah, Riyadh, Damascus, Abu Dhabi, Dubai, and Sanaa,Bangkok,Hong Kong, Singapore, Kuala Lumpur, Manila, Cebu, Nairobi, Johanne sburg and the Seychelles. Qatar Airways entering the US market with flights to New York and Washington, DC direct from the airlines hub in Doha, capital of the State of Qatar Demographic Segmentation: Below is the demographic basis for the market segmentation for Qatar airways: Demographic Variables Breakdown Sex Male; Female Age Under 12; 13-25; 26-40; 41-55; 55 + Income (monthly) USD 300.00 and over Religion Muslims (Halal status); Non-Muslims (Non-Halal status) Education Designed for 5.0 STRATEGIC ANALYSIS (SWOT analysis) SWOT analysis helps to explore the internal and external environmental factors affecting Qatar Airways and hence enable us to make strategic decisions (Aaker, 2005). The recommended strategies that would be adopted in this paper would be based on the on the SWOT analysis of the company. External Analysis Strategic decisions Where to compete? How to compete? Identification Trends/Future events Threats/Opportunities Strategic uncertainties How to compete? Analysis Information-Need areas Scenario Analysis Internal Analysis Source: Adapted and modified from Aaker, D. A (1998), Strategic Market Management, 5th Edition, John Wiley Sons, Inc., USA, p 40 5.1 INTERNAL ANALYSIS Strength Weakness Brand Recognition The airline has been able to build a strong brand that was described by Kelly Kaur, Marketing Director, as getting to know the audience and using communication to build loyalty, stimulate desire, create confidence and build awareness. Consistency The airline has been noted for offering consistence services which was one of the criteria that enabled it to get a FIVE STAR RATING. FIVE STAR RATING Qatar Airways is just one of the few airlines in the world ranked Five Star by Skytrax, the independent aviation industry monitoring agency. The same organization Skytrax also named Qatar Airways cabin crew as Best in the Middle East for the third year running and fifth best in the world, following a survey of more than 12 million passengers worldwide. (World Economic Forum, n.d., p. 1). Qatar Airways are the proud winners of the TTG Travel Awards 2009 Airline of the year. In recognition of the world class service and their commitment to offer only the best to over 80 destinations worldwide Numerous Flights The airline currently operates a fleet of 42 all-Airbus aircraft, which is expected to triple in size to 110 aircraft by 2015. Qatar Airways recently made an agreement to buy up to 60 of the new generation Airbus A350s. The airline also plans to acquire 20 Boeing 777s,with a total value for both orders set to be worth US$ 15.2 billion Age Many still believe that Qatar cannot maintain their high standard for a very long time because they are not too experienced in the industry. Arabization Many people still believe that the airline is Arab based because of their Logo. Qatar Airways logo uses an animal (Arabian oryx) that may be familiar to people in the Arabian Gulf, but not to people outside the region. National Carrier History has shown that most national does not last and they are often abused by the government. People would love to invest so that they can control or have shares in the business but thats not the case here. 5.2 EXTERNAL ANALYSIS OPPORTUNITIES THREATS Booming tourism industry The present surge in tourism in the gulf states is plus for the company to expand its business capacity. Image The Airlines has gained some reputation in the region and in Europe and its other sites Strategic alliances The airline has the reputation of forming strategic alliances with some airline operators in the pacific rim. This can be done either via bilateral with the respective government. Terrorism The incident of 9/11 is a wheel in the spanner of most airline industry. It has greatly reduced the ability of airline operators to attract many frequent fliers. New Entrants There is possibility of new entrants to the market especially Etihad. Etihad has the financial capacity to compete on the same level with Qatar Volatility The industry itself is known to exhibit high volatility. This may be in the form of fuel price, technology change or epidemic and natural disasters. 6.0 PROJECT RECOMMENDATION STRATEGIES 6.1. Market penetration via new products: Low cost Qatar airways have the leverage to engage in more competitive prices that what they are offering presently. They should borrow a leave from what Qantas did. Qantas came up with a low cost carrier called JETSTAR. The low cost strategy can compete in the low cost flight category of the airline industry while the parent company keeps their normal standard. Alliances Qatar airways have the brand image to form strategic alliances with many similar airlines where they can get the benefits of economics of scale. This might come in the form choosing one airline company in the continent to form a loop. They might borrow a look from what Singapore airlines deed as shown below. Singapore Airlines Air New Zealand Star Alliance Dinners Club Avis Singapore Airlines alliance network; strategic alliance, follower ( Kotler Pg 812, 2008) 6.2 Maximizing sales revenue Reduction of booking agents Commissions and other incentives to sales staff add to the operational cost of the company. These costs either passed on to the customers or absorbed by the organization lowers the margins of the company. The company should come up with a structure of appointing GSA (General Sales Agent) in major cities and towns. They might even pass it to the post office to sale for them since they post office has their fixed cost already running. Web Friendly Site The company should as a matter of urgency design a friendly user web site. Their current web site is not user friendly. They should borrow a cue at Airasia website. Airasia website is fast, user friendly and updates every minutes. This has greatly encouraged customers to use the web more frequently than physical office space thereby limiting people or place contacts to the barest minimum. 7.0 Conclusion In its relatively few years of operation has shown that they can ranked amongst the best in service delivery. They have grown from a small company to a major player in the airline industry. They have put in place sound management principle and good chief executive Akbar Al Baker believed his airline was leaking significant amounts of revenue. A series of short diagnostic exercises confirmed his hunches needs continuous improvement. The company has adopted a relatively moderate marketing mix by targeting its customers, positioning the company World Class Young, but growing fast Forward Thinking, open-minded On-time, Clean image Friendly/helpful/warm/hospitable airline. The People is good, Price affordable, Place great and Promotion best.

Effect of cashless police in nigeria Essay

Vol. 1 (2), pp. 040-043, April 2013. Research Article Impact of Cashless Economy in Nigeria *Omotunde Muyiwa1, Sunday Tunmibi,1 and John-Dewole A.T.2 1 School of Computer Science, Mathematics and Information Technology, Houdegbe North American University, Republic of Benin. 2 Department of Computer Science with Electronics, Faculty of Information Technology and Applied Sciences Lead City University, Ibadan. Nigeria. *Corresponding Author’s email: folatunde2004@yahoo.com ABSTRACT This paper studied the impact of cashless policy in Nigeria. The policy was introduced by Central Bank of Nigeria (CBN) in December 2011 and was kick-started in Lagos in January 2012. Survey research was adopted with questionnaire as data collection instrument. Responses from the respondents show that cashless policy will increase employment; reduce cash related robbery thereby reducing risk of carrying cash; cashless policy will also reduce cash related corruption and attract more foreign investors to the country. The study, therefore, shows that the introduction of cashless economy in Nigeria can be seen as a step in the right direction. It is  expected that its impact will be felt in modernization of Nigeria payment system, reduction in the cost of banking services, reduction in high security and safety risks and also curb banking related corruptions. Keywords: Cashless economy, Cashless policy, Lagos State, Nigeria. INTRODUCTION Cashless economy is an economy where transaction can be done without necessarily carrying physical cash as a means of exchange of transaction but rather with the use of credit or debit card payment for goods and services. The cashless economy policy initiative of the Central Bank of Nigeria (CBN) is a move to improve the financial terrain but in the long run sustainability of the policy will be a function of endorsement and compliance by end-users (Ejiro, 2012). The CBN cash policy stipulates a daily cumulative limit of N150, 000 and N1, 000,000 on free cash withdrawals and lodgments by individual and corporate customers respectively in the Lagos State with effect from March 30, 2012. Individuals and corporate organizations that make cash transactions above the limits will be charged a service fee for amounts above the cumulative limits. Furthermore, 3rd party cheques above N150, 000 shall not be eligible for encashment over the counter with effect from January 1, 2012. Value for such cheques shall be received through the clearing house. All Nigerian banks were expected to cease cash in transit lodgment services rendered to merchant-customers from January 1, 2012. The policy through the advanced use of information technology facilitates fund transfer, thereby reducing time wasted in Bank(s). Wizzit, a fast growing mobile banking company in South Africa has over three hundred thousand customers across South Africa. Likewise, M-PESA was introduced in Kenya as a small value electronic system that is accessible from ordinary mobile phones. It has experienced exceptional growth since its introduction by mobile phone operator (Safaricom) in Kenya in March, 2007 and has already been adopted by nine million customers, which is about 40% of Kenya’s adult population. Wizzit and other mobile financial services including MPESA in Kenya are helping low income Africans make financial transaction across long  distance with their cellphones, thereby reducing their travel cost and eliminating the risks of carrying cash and also avoiding most banking charges (Akintaro, 2012). It is assumed that the proper implementation of mobile phones and other technologies can aid the implementation of cashless policy and hence, the growth of cashless economy in Nigeria. The introduction of the implementation of cashless policy (policy is program of actions adopted by government) began in Lagos State, Nigeria. Why Lagos? According to Central Bank of Nigeria (CBN, 2011) Lagos state accounted for 85% of POS and 66% of cheques transaction in Nigeria. Cashless economy aims at reducing the amount of physical cash circulating in the Nigeria economy and thereby encouraging more electronic–based transaction. According to Central Bank of Nigeria (CBN, 2011) the policy is expected to reduce cost incurred in maintaining cash-based economy by 90% upon its full implementation in Nigeria. This study aims to look at the impact of cashless economy in Nigeria. www.gjournals.org 40 Greener Journal of Internet, Information and Communication Systems Vol. 1 (2), pp. 040-043, April 2013. 2. BRIEF LITERATURE REVIEW Cashless economy is not the complete absence of cash, it is an economic setting in which goods and services are bought and paid for through electronic media. According to Woodford (2003), Cashless economy is defined as one in which there are assumed to be no transactions frictions that can be reduced through the use of money balances, and that accordingly provide a reason for holding such balances even when they earn rate of return. In a cashless economy, how much cash in your wallet is practically irrelevant. You can pay for your purchases by any one of a plethora of credit cards or bank transfer (Roth, 2010). (2004) observed that developed countries of the world, to a large extent, are moving away from paper payment instruments toward electronic ones, especially payment cards. Some aspects of the functioning of the cashless economy are enhanced by e-finance, e-money, e-brokering and e-exchanges. These all refer to how transactions and payments are effected in a cashless economy (Moses-Ashike, 2011). Marco and Bandiera (2004) argue that increased usage of cashless banking instruments strengthens monetary policy effectiveness and that the current level of e-money usage does not pose a threat to the stability of the financial system. However, it does conclude that central banks can lose control over monetary policy if the government does not run a responsible fiscal policy. Echekoba and Ezu (2012), in a research carried out in Nigeria, observed that 68.2% of the respondent complained about long queues in the bank, 28.9% complained of bad attitude of teller officers (cashiers) while 2.89% complained of long distance of bank locations to their home or work places. Likewise, in her 24th NCS national conference in December 2011, CBN data shows that 51% of withdrawal done in Nigeria was through automated teller machine (ATM), while 33.6% was through over the counter (OTC) cash withdrawals and 13.6% through Cheques. Payment was also done through point of sales machine (POS) which accounted for 0.5% and web 1.3%. Therefore, if the introduction of ATM in Nigeria cash withdrawals system reduced OTC withdrawal; then it will implies that introduction of cashless policy supported by application of information technology can achieve more to reduce over dependent on cash payment in Nigeria economy system. However, Akhalumeh and Ohioka (2011) observed some challenges with the introduction of cashless policy. Their findings show that 34.0% of the respondents cited problem of internet fraud, 15.5% cited problem of limited POS/ATM, 19.6% cited problem of illiteracy and 30.9% stayed neutral – the respondent not been sure of problem been expected or experienced. While in some quarters there was fear of unemployment, some believe it will create more jobs especially when companies manufacturing POS machine are cited in Nigeria. More so, data sourced from Central Bank of Nigeria portal shows that Lagos state, with a population of 17 million people, only has sixty one  Point Of Sales, twenty bank branches and twenty four ATMs per 100,000 people which are far less to satisfy the needs of the population. These data verify the claim of Echekoba and Ezu (2012) on the problem of cash based economy and cashless policy in Nigeria. For effective cashless implementation in Nigeria availability of sufficient and well-functioning infrastructure (notably electricity), harmonization of fiscal and monetary policy, regular assessment of the performance of cashless banking channels, consideration of the present state and structure of the economy, redesign of monetary policy framework and greater efforts towards economic growth whilst managing inflation should be considered (Odior and Banuso, 2012). 3. RESEARCH METHODOLOGY This study was carried out, using accidental sampling method, in Lagos state, Nigeria. A total of 500 traders, students and civil servants were sampled. Questionnaire was used as data collection instrument, with questions on demographics and benefits of cashless economy in Nigeria. The major statistical technique used was descriptive (use of frequency tables and charts). 4. RESULT 4.1 Demographics responses on gender show that male respondents accounted for 55.6% while the female respondents are 44.4%. Figure 1 and Figure 2 presents the responses on age and occupation, respectively. For age, majority of the respondents are between 18 to 25 years, this is followed by those between 26 to 40 years while the least number are between 41 to 60 years. For occupation of the respondents, the highest percentage (44.4%) is traders, followed by students (33.3%) and civil servants (22.2%). www.gjournals.org 41 Vol. 1 (2), pp. 040-043, April 2013. Greener Journal of Internet, Information and Communication Systems 41-60 years 22% 18-25 years 45% 26-40 years 33% Figure 1: Age of Respondents 45 40 35 30 25 20 15 10 5 0 Traders Students Civil servants Figure 2: Occupation of Respondents 4.2 Benefits Table 1 shows the view of respondents on benefits of cashless economy in Nigeria. The lowest percentage, 11.1% of the respondents, believed that cashless policy will increase employment. A higher percentage, 22.2% of the respondents, believed that cashless policy in Nigeria will reduce cash  related robbery thereby reducing risk of carrying cash. The highest percentage of the respondents believed that cashless policy will reduce cash related corruption (33.3%) and cashless policy will attract more foreign investors to the country (33.3%). Table 1: Benefits of Cashless Economy in Nigeria Benefits of Cashless Economy Increase employment Reduce cash related robbery Reduce cash related corruption Attract more foreign investment Total Percentage (%) 11.1% 22.2% 33.3% 33.3% 100% www.gjournals.org 42 Greener Journal of Internet, Information and Communication Systems Vol. 1 (2), pp. 040-043, April 2013. 5. CONCLUSION The study, impact of cashless economy in Nigeria, focused on the three major categories by which Nigerians can be divided – traders, students and civil servants. More number of traders was sampled, compared to students and civil servants, because they are more into business and financial transactions. More so, a higher number of respondents within the age bracket of 18 and 25 years show that apart from students, quite a number of Nigerian youth are  also into trade. This study shows that the introduction of cashless economy in Nigeria can be seen as a step in the right direction. It is expected that its impact will be felt in modernization of Nigeria payment system, reduction in the cost of banking services as well as reduction in high security and safety risks. This should also include curbing banking related corruptions and fostering transparency. It is also assumed that the introduction of cashless policy in Nigeria will help to reduce the amount of bills and notes circulating in the economy. This should, therefore, reduce handling operation cost incurred on conventional money, as well as reduction in cash related crimes. It should also help to provide easy access to banking services for Nigerians. REFERENCES Akhalumeh, P.B., and Ohiokha, F. (2011): Nigeria’s Cashless Economy; The Imperatives. International Journal of Management & Business Studies. vol.2 pp. 12 – 17. Akintaro, S. (2012): Going Cashless. IT & Telecom digest, online magazine, august,2012 CENTRAL BANK OF NIGERIA (2011): Towards a Cashless Nigeria: Tools & Strategies. Nigerian Journal of Economy. 3(2), 344 – 350. Echekoba, F.N., and Ezu, G.K. (2012): Electronic Retail Payment Systems: User Acceptability & Payment Problems in Nigeria. Arabian Journal of Business & Management Review. vol.5, pp. 60 – 63. Ejiro, O. (2012): What Nigerians Think of the Cashless Economy Policy. Nigerian Journal of Economy. 4(6), 97 – 102. Humphrey, D. B. (2004): ―Replacement of cash by cards in U.S. Consumer Payments, Journal of Economics and Business, 56, 211–225. Marco, A. and L. Bandiera (2004): -Monetary Policy, Monetary Areas and Financial Development with Electronic Money, IMF Working Study, IMF. Moses-Ashike, H. (2011),â€Å"Cashless Economic can Reduce Risk of Carrying Huge Cash†, [Online] Available: http://www.businessdayonline.com/†¦/22217. Odior, E.S., and Banuso, F.B. (2012): Cashless Banking in Nigeria: Challenges, Benefits & Policy Implications. European Scientific Journal. Vol 8, pp. 12 – 16. Roth, B. L. (2010). â€Å"The Future of Money: The Cashless Economy – Part 1†. [Online] Available: https://www.x.com/†¦/future-money-cashless-economy—part-i. Woodford M. (2003). â€Å"Interest & Price: Foundation of a Theory of Monetary Policy†, Princeton University Press. www.gjournals.org 43

Sustainability of Debt Finance Management

Chief Executive of ICAEW proposed the finding that a more sustainable pattern of British companies are to survive the financial management and learning  with less debt (Malcolm & Edwards, 1998). But whether this finding is convincing is unknown. Evaluation of the debt finance statement is needed to implement in this essay.It is apparent for this essay to focus on two aspects of the comment from ICAEW, one is whether the financial management of UK businesses is experiencing a more sustainable situation and the other is the actual debt development and the development situation of UK businesses. And this essay is going to argue this finding with the framework of literature review, assumptions and financial analysis. This essay is going to pick Tesco Plc for subject of analysis.1.1 Literature review Literature review is helpful to comment the findings from ICAEW about the impact of the sustainable model of financial management on debt conditions of UK businesses. The framework of the l iterature review consists of advantage (importance) and disadvantages (risks) of debt financing and impact factors affecting the debt finance management.The importance of the debt management for the corporations To many entrepreneurial organizations, debt is tempting and is glamorous genre of financing. It is widely accepted that external debt are close companions of external equity, and since the equity is necessary for the entities, debt are indispensable for the companies (Pratt & Morris, 1987). Besides, many advantages are generated from the debt financing of the company. Firstly, debt financing is an efficient leverage tool for shareholders of the companies to produce profits with the help of debt capitals (Ruud, 2012).Although the debt capitals are used at the price of financial interest or costs, namely that it is possible to reduce earnings before tax, shareholders still take this risk to use the debt leverage financial tool to add more value of their capital amount and keep sufficient internal funds available to take advantage of attractive investment opportunities. What is more, debt financing is helpful in reducing agency costs of free cash flows (Michael, 1986).Because agency cost is an eternal paradox in the corporate management, shareholders and managers are playing intra beneficial game with each other. Shareholders want to improve value with as small amount of own capitals as possible and mangers would like to  use safer capitals from shareholders and boost their bonus. Any failure from misuse or inefficient use of capital from shareholders by managers is agency cost and the positive debt finance is a way to balance this situation.Risks of debt financing for the entrepreneurs Even though debt financing is of great advantages and is very important for the entrepreneurs, risks still exist in the debt financing management. The main risk of the debt financing is the high rate of interests from the debt. It is clear that financial costs are mainly from the debt financing and the costs come after the operating interest (Robert, 1974), the number of the costs need to be controlled so that the earnings before tax are positive, namely that the profits are truly generated from proper use of debt.Furthermore, debt financing will place risk on the cash flow management of the companies (Davis, 1995), because the contradiction of the maturity of loan and fluctuation of the operating, investing or financing situation may lead to the breakage of the cash flows. Finally, the defaults from the debt financing the corporations manage may exacerbate the loss of reputation and integrity (Davis, 1995). This reputational loss will deter the chance for the corporations to borrow money.The impact factors of debt managementDebt financing management is influenced by different factors. It may be affected by the scale of the corporations. Generally speaking, it is more comment for small businesses to finance debt for operation (Acs, 1999). Because s mall businesses rather than large scale of businesses have less reputation and competitiveness to attract external equity or equity capital, small entrepreneurs have to turn to help of the financial intermediaries such as commercial banks and lender companies to borrow external capital to back up the operations of the organizations.On the other hand, large companies have privileges to finance capital by capital funding, shareholder investment and stakeholder investment. What is more, debt financing management is close related to the managerial style, or the governance, of the companies. For risk-averse managers, who are prudent in producing profits with safer and cheaper capital, they will prefer to manage finance  by receiving shareholders’ funding rather lenders’ (Amihud & Lev, 1981).1.2 Assumption and argument for this debt financing findings from ICAEW Based on the literature review, it cannot primarily reach the conclusion about the debt and the survival situati on of UK businesses. Before this essay expends the argument of whether the more sustainable model of financial management are currently using by UK business and they are survive with less debt, it is important to set the assumption for the argument. And the assumptions are as follow. The first assumption is that UK businesses discussed in this essay are those running on their track rather the new start-ups or newcomers who are eager in need for external debt or equity.The second assumption is that the capital structure of the UK businesses discussed is operating at least one kind of debt.The third assumption is that the debt change (accent or decent) are not caused by the managerial style or the scale of the corporations.1.3 Financial ratio analysis for the debt financing situation of the chosen listed company1.3.1 Debt financing performance According to the assumption preset above, this essay choose the listed company Tesco Plc in UK to testify the comment of ICAEW. Calculation and explanation of relevant ratios over a five-year period will be presented as follow. Referring to the long-term liabilities, the absolute number of long-term liabilities experiences a big rocket and a fluctuation from 2008 to 2012. Long-term liabilities in 2008 were  £5,972 million in 2008 and rose by more than one times to  £12,391 in 2009 than in 2008. Although the absolute number of long-term liabilities dropped a little in 2010, they increased to  £12,731 in 2012.When it comes to the short-term and long-term debt, they showed a consecutive up and down from 2008 to 2012 (See appendix two). One of the very important aspects of detecting debt financing situation of a certain company of UK is the average debt/asset ratio (Allen & Gregory, 2003). This ratio of can show the ability of debt to making  contribution to adding assets. From appendix one, although a slight rise of 2.36% occurred in 2009, a decent trend of average debt/asset ratio is irresistible from 52.82% in 2008 to 46.23% in 2012. The situation imply the decreasing trend of debt financing in the whole system though the absolute value of the debt is in a growth Another method for evaluating the debt financing is to assess the liquidity ratio of the target company.This is a method to assess the short-term debt of Tesco Plc (Gombola, 1983). From the liquidity ratios such as current ratio, acid test ratio and operating cash flows to maturing obligations, a lot of insight can be incorporated into the present cash solvency of the firm and the firm’s ability to remain solvent in the event of adversity. Firstly, the current ratio presents the degree of current assets covering the current liabilities. It was interesting to see from 2008 to 2012 the current ratios of Tesco Plc first increased by 29.57% and kept decreasing by 5.97%, 4.55% and 1.23% in the consecutive three years, but the current ratios were in a growth in the whole picture from 0.58 to 0.67. The situation implies that the syste matic risks of covering the short-term debt are decreasing.Acid test ratio illustrates the liquidity excluding inventory. The acid test ratio of Tesco Plc experienced a drop variation trend from 0.35 to 0.48 by an accent of 53.26%.But it cannot disprove the endeavor made by Tesco Plc to decrease acid test ratio consecutively from 2009 to 2012. The other financial ratio for testifying the long-term debt situation is the ratio of financial gearing. Financial Gearing is the ratio presenting the efficiency of using debt to generate profits. Financial Gearing includes debt equity ratio or leverage (D/E), and interest coverage ratio (Harrington, 2004). Debt equity ratio or leverage (D/E) demonstrates the same development details as the liquidity ratios do. Tesco Plc increased from 0.50 to 0.77 by 70.35% (first increased by 90.03% in 2009 then decreased from 2010 to 2012 in a row).The original soar in D/E may results from the overestimated optimism for the economic environment and over bor row long-term debt, and it takes time to lower the high percentage of debt. On the other hand, interest coverage ratio illustrates the coverage of earnings before interests and taxes to financial interests. From 2008 to 2012, the interest ratio of Tesco Plc dropped from 11.16 to 9.20 and it seems Tesco Plc has less competitive ability to cope with interest costs from debt financing. However, after the two-year decrease in this ratio,  interest coverage ratio rise by more than 20% in two consecutive years from 2011 to 2012.1.3.2 Operation performance But even the debt financial level is decreasing from the financial analysis above, it is important to evaluate whether Tesco Plc has better survive with less debt. So the assessments of the profitability of profitability, efficiency and shareholders situation of Tesco Plc are necessary (Cunningham, 1995). In the aspect of profitability, ROE of Tesco Plc was experiencing a fluctuation from 2008 to 2012. Tesco Plc decrease from 18.08% in 2008 to 15.85% in 2012 by 12.61%. During the 2010 to 2011 duration, Tesco Plc had risen by 0.93% in the ratio of ROE, however, this increase could not turn around the decent situation. Return on capital employed of Tesco Plc experienced a similar fluctuated decreasing rate (similar with ROE) from 15.69% in 2008 to 12.17% in 2012.From the perspective of efficiency ratios, they are ratios measurement of the effectiveness of assets performance of the Tesco Plc (Fraser, 2004). Efficiency ratios includes inventory turnover (days) and creditors' turnover (days). Inventory turnover present the efficiency of Tesco Plc to manage the inventory. As can be seen from Appendixes, the numbers of days for Tesco Plc increased from 20.31 days to 22.15 days by a rate of 9.41%, namely that Tesco Plc performed more slowly than before (circulating the same number of stocks with more time). When it comes to another efficiency ratio, debtors’ turnover (days), demonstrates the average number of days for which receivables are outstanding before retrieve.The debtors’ turnover for Tesco Plc increased from 10.12 days to 15.03 days by a rate of 42.63%. And it turned out that the debtors’ turnover of Sainsbury Plc was circulated from every 4.22 days in 2008 to 4.68 days in 2012. The situation of Shareholder can be assessed by the dividend per share, dividend payout ratio, earnings per share and operating cash flow per share. Dividend per share presents a different development trend for Tesco Plc. The dividend per share rose from 0.08 in 2008 to 0.10 in 2012 by 29.78%. Similarly, EP of Tesco Plc demonstrated an increase of 27.66% from 0.27 to 0.33 and dividend payout ratio of Tesco increased by 2.41% (0.28 to 0.29).1.3.3 Systematic debt financing performance Based on the financial analysis on both debt financing and operations, systematic debt financing is semi-match the opinion of ICAEW. Firstly, the ability of coping with short-term and long-term debt is more competit ive even though the total volume of debt is increasing. But this is not â€Å"less debt† as the saying goes in the opinion of ICAEW. Secondly, even though the â€Å"less debt† refers to more competitive ability to handle debt, the operations of profitability and assets ability are still failed to improve or say few evidence can prove the company with less debt can better survive. Thirdly, the improvement in shareholders situation is one symbol that implies better survival of Tesco Plc but the paradox between profitability and shareholders is need to further explained. In addition, as the forth point, policies are connective with the coping ability with debt. From 2010 to 2012, Tesco Plc procurement policy provides robust and consistent debt selection.Conclusion In conclusion, debt financing plays an important part in organizations but it also hide risks when corporations employ this tool. But doubts arise from the opinion that UK businesses can survive with less debt p ublished by ICAEW. After the analysis of financial ratios on debt and operations performance in Tesco Plc among UK businesses from the consecutive five years based on the assumptions, this essay cannot get the conclusive conclusion about the relations of survival and less debt. But if debt financing here refers to the improve ability to cope with debt rather volume of debt, it may be concluded that some of the UK companies at least Tesco had worse-off profitability and efficiency with less debt. And whether the sustainability model of debts financing in UK is sustainable is needed to be further explained.Question 2 Evaluate the role of finance director in an organization Introduction Financial director, as another name of CFO (Chief Financial Officer), is the main character in the organization to control the financial situation. Since the financial director wears the critical responsibility, it is meaningful to find out what kind of responsibilities or roles are for financial direct or. This essay focuses on exploring the roles of financial director from aspects of literature review and the scenario (Tesco Plc) comparison between different kinds of job roles, and what kind of sources, or information, or evidence in the financial report can prove the described roles above.2.1 Literature review of roles of finance director Financial director is an important role in the system of management in an organization and scholars in the academic or industry has many researches into the topic about financial director. And the framework this essay establishes is a reorganization of the theoretical and practical pinions on financial director.Compiling financial reports A competitive financial director is like a doctor who is engaged in safeguarding the healthiness of financial situation of the organizations (Michael, 1999). This safeguard role is quite different from other related financial occupations, since the largest financial burden is laid on the shoulder of finance di rector. Although financial director lead a team to perform the job about financial reports, he fulfills the solo responsibility of the accuracy of the financial reports (Roles of finance directors, 2013). During the financial work performance, finance director has to manage a financial team as well. And finance director act as the company's treasurer to keep the accuracy of the financial results, because one mistake is a mile in many aspects, such as capital structure, earnings per share or EBIT.Perform analysis on financial reports There is too much information in the financial reports and some of the information is hard to understand without translation. Financial director uses financial and non-financial ratios or conclusive and simple information, which other managers, shareholders and stake holders need, to present the key information of the financial situation of the organization (Keith &Falshaw, 1999).Besides the interpretation of the financial reports,  finance director de tects problems through the horizontal and vertical analysis on the financial reports in order to figure out approaches to achieve the perfect financial condition and try endeavors to maximize profitability. After the financial analysis on the financial report, financial director proposes an analysis report on historical data, positions the financial goals and objectives, and make the prospective strategy for the organization.Help operating the company and make the prospective strategy for the companyFinancial director not just theoretically analyze or improve the financial situation using the historical data from consecutive financial reports (Grant, Roman & Sidney, 2014). He incorporates the financial information into financial operation in the company. Overseeing payroll activity for staff and participants in order to avoid fraud; monitoring the banking activities of the organization to ensure sufficient liquidity to meet daily needs; Investigating cost-effective production approa ches in the production line. Besides the internal financial events, he represents the company to meet government in order to control the rhythm of the tax payment or government funding. What is more, he also takes an informative and advice supportive part in marking, operation, financing and investment decision making.2.2 Roles of finance director of Tesco Plc and comparison of other job advents 2.2.1The evaluation of roles of financial director of Tesco Plc Laurie McIlwee has been taking the position of Chief Financial Officer (Finance director) of Tesco Plc since 27 January 2009. As a Fellow of Chartered Institute of Management Accountants and a member of The Hundred Group of Finance Directors, Laurie McIlwee has experienced years of finance director responsibility in Tesco UK and Pepsico. His horizontal international finance management is impressive. But it is important evaluate whether he meet the roles of the financial director while working in Tesco Plc.Ordinary Financial enga gement Besides composing the financial statements and financial reports for the board of directors and shareholders, Laurie McIlwee is responsible for utilizing financial and non-financial ratios to analyze the historical data from 2010 to 2012 (Financial Report, 2012) and select key ratios, present then as clear graph and report them in the financial report in order to keep the financial reports usable for the users.He also monitors any external financial issues, such as relationship with government and tax bureau. And He is responsible for establishing and maintaining a strong working relationship with outside consultants, bank representatives and insurance and bonding representatives. What is more, Laurie McIlwee affects the continued operation of the company by positioning the financial boosting strategy in the foreseeable future. His duties also include managing, maintain and forecasting the company's cash requirements and cash flow. He also reviews and signs all financial repo rts, tax returns and audit reports.Financial Team Management Laurie McIlwee is of course unlikely to cope with the actual receipt of income or the paying of bills in person, he wisely leads a team on all kinds of financial jobs (Financial Report, 2012). The chief finance officer Laurie McIlwee oversees all accounting personnel within the financial team.His mentor and develop the accounting team and manage their tasks and processes, training and performance evaluation He regulations to ensure compliance with current and future Management Accountants Society of practices and procedures to govern the financial director of an appropriate internal control safeguards and requirements Hundred Group Business Development and Strategy DutiesThe CFO Laurie McIlwee directs financial strategy, including borrowing and investment strategies (Financial Report, 2012). He also establishes and monitors budget planning and forecasts. He works with CMO, COO and the heads from other department. Finance i s expected to incorporate other strategic objectives. In order to meet their specific objectives closely with vice president of information technology, development tools, and the president and providing important financial and operational information systems to CEO.2.2.2 Other jobs advents for comparison CEO Philip Clarke is the CEO of Tesco Plc for more than 3years until today. He is mainly responsible for developing company goals (Financial Report, 2012). He formulated the objectives, designed the progress to achieve these goals. In determining the direction of the company in the process, he defined the specific market, observe competitors and determine how the company will come to the fore.In addition, Philip Clarke build a competitive team to assist him in the operation of Tesco Plc. Philip Clark uses the best part of the individual team and solve the senior team and the members of the corporate culture differences between a company's values through the establishment. Setting bu dget is an important role of the CEO, the CEO is only when the budget is set for a certain strategy, CFO or Finance Director may adjust the budget implementation plan. Finally, CEO Philip Clarke have functional public relations. Under many circumstances, it is CEO that pre builds the client relationship before CMO can keep the continuous relationship with the client.CMO Min Mason is the CMO of Tesco Plc. His job is different from finance director Laurie Mcllwee and CEO Philip Clarke. He launches research and development in order to determine the potential need for a product or service based on current market demand (Financial Report, 2012). Moreover, he cooperate with Lanrie Mcllwee to make an available financial R & D budget. Secondly, Mim Mason is responsible for making promotion strategies by managing the overall marketing and advertising campaign and analyzing effectiveness of a campaign and what types of modifications. For example, the promotion of â€Å"Everyday Big sale† in Tesco Plc designed specifically for women and let them feel satisfactory. Min Mason has to manage not only public relations, but also the three aspects mentionedCOO Kevin Grace is a COO in Tesco. He was the main contact with the other officers of the Board. Kevin Grace manages the daily functions of the company, reporting to the CEO and the board regarding the company needs or  performance, make a final decision in many daily problems (Financial Report, 2012). If a company could find a COO like Kevin Grace who is a reliable manager, COO can become into the role of CEO in situations where the board realizes that a current CEO will be retirement. In addition, the role of the COO has been changed. COO need to learn the CEO position. COO becomes an alternate, not a partner. The responsibilities of COO will begin to take on the role of the CEO over time. When Kevin Grace stepped down as South Korea, he was promoted to be the CEO of Poland and UK Property Director.2.3 Effective ev aluation of availability of sources of information All the role information is truly comes from the 2012 Tesco Plc annual report, and it is presented dispersively in the financial report. With the evidence of financial statements, notes of financial statements, clear graph, convincing declarations from the board of directors, the truth and effectiveness can be proven to support the role evaluation of the roles of different directors (Financial Report, 2012). ConclusionIn conclusion, this essay centers on the role evaluation of finance director by demonstrating literature reviewing, citing roles of finance director in Tesco Plc, comparing the roles of finance directors and CEO, CMO and COO in Tesco Plc, and evaluating the effectiveness of evident used to citing examples. Question 3Evaluation for the usefulness of budgeting and budgetary control in Tesco Plc Introduction A budgeting control is a mechanism assisting senior managers in setting the adequate spending limits. It is importa nt since risks of expenditure exceeding from the potential budget are what corporation cannot bear and the risks will have an unfavorable impact on corporate profits. So in order to count on the importance to focus on the budgetary control, this essay is going to throw literature control in the budgetary control to see what accomplishment that scholars achieve in this field, and introduce the empirical example of implementing budgetary control in a corporation by citing Tesco Plc.3.1 Literature review in budgetary control Scholars in academic field have been doing many researches in the field of budgetary control. They refer the budget control to almost all aspects in the business operation. But after reorganization, this essay reframes the outline of the literature review in budgetary control. Businesses of different kind of scales require different kinds of basic financial concerns and monetary limits in order to keep cost-effective efficiency. Budgetary control is indispensable i n the business operation. Cost controllingThe main objective of budget control is to control the cost. Capitals are limited in one organization (Ariratana, Treputtarat & Tang, 2013). Smart and appropriate cost of using is good for cost-effectiveness to save. Through the full use of the capital budget, managers take effective measures to save money. The definition of the budget is a list of intended or expected expenditures of money and proposed to satisfy these expenditures. By presenting the amount of money that will be used for different projects to satisfy different strategy, the managers can handle different assignment with an elastic budget boundary, because decision-makers can see exactly what they are spending their capital on.Perspective planning Budgetary control can lead a perspective planning in the business. It is indispensible in the management style of making strategy based on the limited capital or the style of organizing capitals for budget for the decisive planning (Dariya & Klaus, 2013). All businesses have the requirement to balance its short-term expenditures with savings and investments that they can use enough jetton to meet the long-term developmental expand or take advantage of special opportunities. Budgetary management is designed with the changeable need from business opportunities coverage and allows a business to monitor necessary spending along with the capital and earnings in order to generate positive profits. Financial statement compilingBudgetary control serves a significant practical role by assisting accountants and auditors to compile financial reports for report users. For the reports in internal use within the organization, budgetary controlling can provide information of costs controlling, strategy positioning and internal operation (David, 1998). For the reports use by publicity such as regulators, industry analysts, stockholders and investors, budget controlling presents the comparison of the original planning of the l imited capital and the ability for the business to implement actions to spend money and achieve the original goals. The budget controlling is also important in helping managers to handle the corporate profits and corporate cash flows.Business success evaluation Budgetary control gives comprehensive evaluation of the availability of and the success of specific efforts in the businesses (Yanwu & Fei-Yue, 2014). In other words, the link of budget control reflect the input and output in the changing business activities, such as staff training. However, if the future budget show that due to the employees’ mistake, training programs and its cost recovery issues more significant decline would be reasonable. Similarly, if the new forms of consumption can have a negative impression of the future budget, it will be eliminated, maybe it is good to use with similar goals.3.2 Budgetary control in Tesco Plc This paragraph is going to evaluate the usefulness of budgeting and budgetary contr ol in Tesco PlcUse budgetary controlling tools as policy document Firstly, Tesco Plc smartly uses the budgetary controlling as a policy document to protect important projects. The importance of a budget used as part of policy considerations is to generate enough capital for profitable but vulnerable projects. According to the announcement in early 2012, Tesco Plc plans to substantially increase investment in the shopping trip – particularly in the UK with a limited and special budget.On the one hand, Tesco Plc anticipate minimal Group trading profit growth for the year 2012, namely that Tesco has considered the possible opportunity costs in the budget when implementing the project. On the other hand, Tesco Plc reduces levels of old capital expenditure when it modifies its policy of expansion.  To further protect the project, Tesco Plc establishes another policy that no bonus will be paid to Executives unless performance is greater than budget, representing year-on-year grow th in profit.Financial awareness Budget Control provides financial awareness of business expenses and income. In the case of Tesco Plc, it needs to take into account tax expenses, thus setting the budget report. When a new tax resolution passed by Congress, which adjust their tax budget accordingly. The budget outline shows the number of business from sales and additional revenue in one month. It shows how much companies spend on operating costs even as revenue. Operational budget should also display a given assets and liabilities Tesco plc in the current time. This reveals whether a company's financial position is positive or negative. Tesco's financial situation reveals the budget showed that the business is profitable or create monthly debt.Business Opportunities One advantage of having a financial budget for Tesco Plc is to recognize opportunities that can help market and expand the business. The budget reveals the amount of profit the business can put aside each month. Tesco Pl c uses the profit to expand the business and market it in new ways by attending conferences and joining marketing campaigns with larger businesses. Informing the funding available can help the business owner plan ahead and market the business in new and creative ways.For example, Tesco Plc did researches in 2012 and found out the challenging year for consumers in many of Tesco Plc markets are suffering tight budget in household management by inflation, austerity and high fuel price. That would possibly reduce the enthusiasm of consuming in Tesco Plc. But considering the tight budget Tesco Plc also is facing, Tesco Plc transfers to the international businesses and performed this switch strongly. Thanks for the wise business opportunities, Tesco Plc delivers an 18% increase in profits, which helped to compensate for the reduction in trading profit in the UK.Communication Tool Through monthly, half-yearly financial budget statements or reports budgetary  control tools communicative a cts each year. When held for budgetary control will be discussed from time to time to collect the director, directors can share the latest ideas and mentality, improve the efficiency of the method and the target budget. With the discussing, budget is essentially a communication tool, because it shows how the enterprise works and how the smart money used.Budgets are discussed in Board, Executive Committee of Tesco Plc regularly and the risk management proposal will be shared in order to improving the efficiency of budgeting. In order to control the budget better, All business sectors in Tesco Plc has stretched the budget based on the Balanced Scorecard and KPI's steering system and performance indicators are monitored on an ongoing and regular basis to the BoardFinancial planning Tesco Plc implements regular review of strategy, risks and financial performance by Board and Executive Committee, with external advice as required and makes consistent operational plans and budgets develope d throughout the Group to ensure delivery. What is more, Broad of directors in Tesco Plc approves the budget and long-term plan for the Group. The budget controlling reveals the assets and liabilities in Tesco Plc so that it can have better evaluation of itself when making business decision. Budget controlling can help Tesco Plc create a financial plan as mentioned above so the liabilities can be addressed before the debt becomes uncontrollable.ConclusionIn conclusion, budgeting control is really important in the aspect of costs controlling, perspective planning, financial statement compiling, and business success evaluation according to the literature reviewing. After citing the example of Tesco Plc, further information about budget controlling containing Use budgetary controlling tools as policy document, financial awareness, business opportunities, communication tool and financial planning.

Characteristics Of Theorists Maslow s Behavior Management...

Compare and Contrast Theories Paper Stephanie Ford Liberty University Characteristics of Theorists Abraham Maslow The main element of Abraham Maslow’s behavior management theory is a hierarchy of needs. These needs begin with physiological needs and progress through safety and security, belongingness and affection, self-respect, self-actualization, and finally knowledge and understanding (Jones and Jones, 2013). Kenrick, Griskevicius, Neuberg, and Schaller (2010) state that the organization of these needs in hierarchical order indicates that certain needs are more important than others. Maslow’s hierarchical order suggests that if a student’s basic physiological needs are not being met, such as the need to eat, feel safe, or feel loved, then students will be unable to focus on a level that allows them to learn. As a result of one of these needs not being met, students will use negative behavior to indicate there is a need (Jones and Jones, 2013). 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