Advanced management accounting

The role of management accountant in every organisation is to provide support in making competitive decision and this is through collecting and processing information and then communicating the information to management who will use it in planning, controlling and evaluating the processes and strategies for the company (Keith, 2012). In the case of Air New Zealand, the management accountant should assist the management to come up with a strategy by which they will be able to add the number of passengers to the airline in the at a time when the company is facing stiff competition and prospects of low profits. The likelihood of low profits can be attributed to the falling oil prices that means that the airfares have to drop driven by the same. Thus the manager’s initial responsibility is to help the organisation to set a goal and determine the way in which fulfilment of the goal will be achieved. Having increased its capacity by 12 percent the accountant has to assist in laying a strategy that will ensure that, the capacity is fully utilised by lowering the fare prices through discounting and at the same time maintaining and improving the company’s profitability.

After formulating the strategy, the accountant should assist the management with ways of implementing it. Implementation process involves integrating the strategy into the company’s goal, putting control measures in place and directing the efforts of the strategy towards gaining a competitive advantage (Keith, 2012). Thus the management accountant should assist the company on how to follow the guidelines of the budget to ensure that the efforts to fill the vacant seat does not lead to big discounts that will lead to loss making. The manager should also ensure that the discounts offered is significant enough to allow for competitive airfares both domestically and internationally and it can be adjusted in accordance to the changes in the fuel prices.

 The evaluation process involves cost accounting. The management accountant should carefully do the cost-benefit analysis, in order to provide to the company financial information on the progress of the set strategy. Thus the company will be able measure the impact of giving discount on the capacity of the airline in terms of additional passengers. The manager should also provide data on the benefits arising from the strategy so that the company can know whether it has been able to increase the sale of services to both domestic and international passengers.

Reference

Keith, W. (2012). Strategic Management Accounting: Routledge.9-10

IMPLEMENTATION OF KEPNER TREGOE METHOD IN SAP WITH COST ESTIMATIONS

It is essential to measure and monitor the performance of business.  However, having a focus on the wrong key performance indicator on your business is detrimental. Poorly structure KPIs are costly to obtain, difficult and also monitoring on a regular basis. The choice of KPIs needs to align with the main goals and objectives of the business, be attainable, and keep everyone on same pace and direction. The SAP BSCE, Prague is an organization that has been using the KPI method as its performance evaluation criteria.  

In measuring the company performance, the company focuses on measurement of certain factors that indicate success or the performance status of the corporation. The various key performance indicators like rework rate, service delivery, reputation and employee retention rate used in SAP BSCE that will be discussed in the essay. As a consultant, I highly recommend that the company improves the KPI method using the Kepner Tregoe Method. This essay mainly focuses on the critical evaluation of the performance of SAP SBCE through the use of KPI method and the actual degree of performance portrayed by its subsidiaries so as to tremendously improve the performance of the business in the economy (P.S & D.M - K-T, 2016).

To begin with, the application of the mechanism will enhance employee turnover in the business. Employee turnover is an effective criterion for measuring performance in various ways. In this company, the involuntary and voluntary rates of turnover will be used to determine employee and employer performance. When there is high voluntary turnover, it signals poor working environment that fails to motivate and engage contingent workers effectively, and the wages are below the market values. The employee retention rate is the ability of the company or employer to retain employees for longer. The financial factors are already successfully using KPI, and consequently, there have been no particular complaints on those issues, and since financial data could not be received, I could not be able to analyze or predict the results of KT implementation.

On service quality, there is need to compare the expectations and the actual performance of each employee. Using the KT method, I will measure the expected performance and the actual performance of each employee even from the subsidiaries.  The process will involve defining the decision statement of ensuring quality service to customers. Within this framework, my objective will entail defining all the strategic requirements for instance effective customer care attendants, the general collection of customers’ feedbacks as well as the use of restraints for the purpose of collecting the control system. With respect to that, I will use the table below in ranking these three objectives with respect to its corresponding weights. My recommendation will therefore be solving all the identified problems within these tree objectives as well as monitoring the quality of the system through the use of KT.

After ranking I will list the alternatives based on feasibility and assign a score to each alternative.

The total weighted score for the three objectives is;

         = (6*4) + (4*6) + (7*6)

       = 90

Therefore after considering the all the problems of each alternative of the three objectives in the table above, I will end up choosing the objective which tops the scoring. This is to mean that the result which tops from want A, B and C will be the precise alternative I will consider. In order to arrive at the precise objective, first consideration will be the objective which has the lowest alternative satisfaction is the one which I will consider. This will be objective A but since out of the three it has the lowest weight, objective B and C will be considered. Lastly, since the result of the weighted score of C is relatively higher than that of B by (42-24 =18), therefore the winning option will be from objective C hence it should be implemented (Welch, 2003).

 The table above comprises of the three adverse effects obtained from the initial three objectives. Therefore, it is just a weighted score of the three alternatives obtained in terms of their adverse effects.  Basically, the weighted score was obtained through multiplying the probability of each option with its importance level value.  In respect to that, the probability and as well as the important level figures are also obtained from all the values which were recorded from the options in the market for the recent past (Welch, 2003).

Having the three options (A,B, and C) will be essential in the process of making the best option that the organization needs to enhance its performance in the market. Effective implementation is likely to improve the profitability by around three percent. The estimated cost of implementing the system is about $250.000 based on the cost of system design and training of users going by the current charges in the market (Enterprise Solutions | IT Service Provider | Business Intelligence | Business Analytics Services, 2016). Satisfaction of customers will increase customer base and thus more sales. Based on historical data and exponential data analysis, $250.000 invested in entire organization will translate to 3 percent of the total revenue increment.  Projected revenue on implementation of new system is 97 percent times current revenue, which is the revenue that the company is currently making.

The current method of measuring the rework rate does not indicate the number of errors done by the employees separately from the local mistakes. The problem does not only occur at SAP BSCE but also at the subsidiaries thus the recording on the headquarters will not reflect the performance of the subsidiaries. The KT method will improve the measure of the rework rate by including the values from the subsidiaries and also the wider period. On the rework rate, I took the weighting from the KT table on which the potential score was counted and multiplied by 3.  The analysis and comparison of the rework rates at SAP BSCE and its subsidiaries varies widely. The employees and supervisors will be introduced to a new reporting system which will record all mistakes made and then used to measure the performance for local mistakes and another for employees. Switching to a new reporting system will cost around $245,000 going by the current rates in the market (Gupta et al., 2012). The process is likely to result in delays in the operations of the company.

The reputation of the SAP BSCE is not badly off, but it could require some improvement using the KT method. A higher and good reputation will establish and increase a loyal customer base. As a result, the SAP BSCE will gain a bigger market share, be more competitive with additional benefits of customers being willing to pay at higher prices, and good performance in the stock market. Using the KT method, I will use the KT matrix; the situational appraisal, the problem analysis, the decision analysis and the potential problem analysis to come up with research findings that can be used to improve the company reputation (Vliet, 2014).  The KT Matrix will provide the necessary aid in gathering and evaluating vital information that will be essential in making decisions in the company.

Assign each aspect weights between 0 and 5 according to their current level or state in the company. Multiply the weights with the rating feedback collected from customers. The higher the score, the worse the state hence demand priority on implementation. From the table quality of service should be given priority in all the options.

The cost of installing the device will cost the company $375,000. It is the rate that is charged by most of the experts in the field. Following its effective implementation, I estimate that the company’s market base will increase by seven percent and profitability by nine percent going by the previous effects that the system has had on various companies in the market. 

The use of the method of key performance indicator can help the SAP BSCE attain its major goals and objectives. However, in the analysis of the corporations’ performance, I realized that the method is not very effective as it does not reflect the actual degree of performance of its subsidiaries. To ensure the effectiveness of the method, I recommend the KPI method to be improved with the use of Kepner Tregoe method. To achieve the better performance we use the KT method that will focus on the criteria including rework rate, service quality, and the reputation. The other focus areas match those used with the KPI method of evaluating performance.

COME ONE COME ALL TO KENNEDY’S BAKERY!

            Kennedy’s bakery is one of the most prominent bakeries in the town with the latest advancement in bakery set up. The bakery is geographically located in Cambridge with outstanding building structure and theme color. The building is all painted in white color which is just but sparkling clean and so appealing to the eyes. The bakery has a pleasant sitting area that is set aside for the customers to ensure that they enjoy their meals. The bakery is diverse with numerous freshly baked products, freshly dairy products, eggs and fresh sandwiches. One cannot afford to miss out on the delicious and sweet products offered by the bakery. The employees maintain hygiene and they are highly qualified in what they do. They all dress decently in a similar uniform thus one can be able to spot them and enquire or give an order. The bakery also offers deliveries to those in offices and at home just at reasonable prices. There is ample space for parking for those who are with their vehicles thus no one should worry about where to park their cars. The bakery ensures that there is a well customer relation created and customer’s needs are the priority of the bakery. It is thus worth for all to travel from out town and visit this bakery and one can be sure that they will be happy with both the services that they will get and the quality of products that they will get. Cleanness and hygiene are our core responsibility while customers are the first priority in the business. Our mode of package is just but wonderful as the products are parked so nicely. Come one come all and experience an experience like no other!

ORGANIZATIONAL SETTINGS TOWARDS EMPLOYEE'S SATISFACTION.

            Job satisfaction and organizational commitment play a great role in employee’s retention in the Goggle organization. It is a challenge to maintain employee due to the employees seeking to satisfy their own demands. This has led to the growing concern in this organization. The labor markets in the information technology organization have continued to present increasing career opportunities which require professionalism.  This has led to an increase in demand for this organization since it is technology driven. As it is the norm of the organization to maintain employees since they are an important asset to the organization (Lamping, (2011).

            Job satisfaction is a wide and a complex phenomenon that requires a proper and clear definition of this concept. It is upon the company to know what satisfies its employees. this is the individuals feeling and the attitude towards the job. This is the perception of and the evaluation of an individual that is influenced by the values, unique needs and the expectation an individual has regarding the importance of the job in their life (Lamping, (2011).

            Organizational commitment has also played a great role in maintaining a large number of clients. It attempts to know and clarify the stability and the intensity of an employee towards their dedication to the organization.  Once the individual has a greater acceptance towards the various goals of the organization and the willingness to offer put more effort in the organization then, both the organization and the individuals are better suited to perform exemplary (Lamping, (2011).

            Job satisfaction is strongly related to seeing the organization achieve its objectives. In the Goggle organization, the satisfaction of the job is keenly analyzed. This ensures that there is a reduction of adandonment behaviors and reducing employees turn over. This also creates the room for the employees to be innovative in their work which in turn give a great chance to the organization to be and also remain competitive (Lamping, (2011).

            In this organization, the motivational theory enhances a great performance of the employees. This is because the theory is based on the elements that motivate an employee. The theory address that once an employee's needs are met there will be change in their behavior. This, in turn, brings the satisfaction that will change the level of one being committed to their work. Its hierarchy categorizes them from the main important needs (Maslow, 2012). It involves self-actualization, esteem, the act of belongingness, safety and physiological needs. When this is achieved then self-satisfaction is fulfilled and in return, the organization gets the best of the employee. When the organization achieves this then the Goggle organization is identified to be the best and the most potential employer that every individual wants to be part of (Maslow, 2012).

            Performance management principles identify an organization as a potential employer due to the various strategies that are put in place. The management identifies on how to maximize the employee's engagement in the organization. This will show the commitment of the organization towards the employees in learning more about the organization and resulting to more productivity. The principle of being objective will bring about the competence which will match the responsibilities of the organization. Assessing the performance of its employee will push the employees to perform better. This can also be enhanced by rewarding performing employees. By reviewing the contribution based on the organization there will be great performance. Through these principles, the organization creates a good public image that will aspire many to in the organization (Paladino, 2013).

Reference

Lamping, A. F. (2011). Job satisfaction and organizational commitment among law enforcement             personnel in Middle Tennessee.

Maslow, A. H. (2012). A theory of human motivation. Start publishing.

Paladino, B. (2013). Five key principles of corporate performance management. Hoboken, N.J:   Wiley.

3) Critical literature review on intermodal freight transportation

3.1) Logistical theories and practices which are being used by intermodal freight transport. (1500 words)

Literature review

Planning issues in transportation of intermodal freight begun in 1990.  United nation is comprised of individuals, businesses, communities as well as agencies from the government.  These elements therefore rely of the transportation by the freight as it is crucial in satisfying their essential needs.  This therefore corresponded to the movement of over fifteen billion by freight worth tons which was roughly over eleven trillion which were thus delivered for more than nine hundred and eighty five thousand miles of high way aids of federals, one hundred and forty one thousand miles railroads transportation,  eleven thousand miles of waterways inland transportation and one million and six hundred thousand  miles of pipeline transportation. It is therefore clear that every mode of freight transportation serves very essential roles in the delivery of freight system. Truck has been established as the major mode for years in regard to the tons of cargo that have been moved as well as the revenue that they generate.  This is mainly influenced by the fact that the mode of transportation has earned competitive advantage over time. The competitive advantage of the small shipments as well as local distribution has mainly influenced the development of truck freight competition.  Additionally, also the fact that almost three quarter of the elements in the communities in America is exclusively served by truck freight transportation. Pipeline transportation holds high product volume as the transportation mode moves from limited sources of destinations. Railroad transportation gives priority on intermodal and movement of bulk involving long distances.  The shipment by domestic water focus on huge tons volume, lowered costs of products. Air mode transportation supports the high value movement and sensitivity of cargo.  A major activity in intermodal freights generally involves the transfer of cargo at the major ports and inland terminals.

Therefore given the significance and size of transportation system of freight, its capability to operate in safer, efficient and secure ways in paramounting to present and future of the well-being of the nation. Some of the major threats top effectively achieving the quality of services that are thus identified. Based on various research reveals that their major issue that is facing the freight transportation recently is planning.

Freight transportation utilizes the game theory in gaining a competitive and strategic advantage. Game theory in freight transportation is used in water way transportation. This theory is used in analyzing the planned behaviors by taking considerations of how participants expect other people to behgave.  As explained by the international trade advisor Jock O’Connell of the beacon economics the theory is used to draw understanding of the behavior of companies in oligopoly. This is therefore similar to the alliances off carriers in different lanes of trade.

Gamer theory is essential in freight transportation because it is used in finding the optimal outcome from the choices set as it helps in analyzing costs and advantages to every party as they are able to freely compete with one another.  Stackleberg and cournot duopoly solutions are the given examples of how game theory can be applied.  The other trend that is emerging in freight transportation is the differentiation of brands. This is in that the price rates of cargo transportation still remain constant as  the vessels for transportation are increasingly becoming bigger  thus spending additional time in the ports.  The level of services are  additional becoming unreliable  which is making the shippers  to mitigate the involved risks thus booking for cargo based on distinct schedules in deployment. As revealed the logistic managers may soon opt for collaboration in the relationship of designing terminals in order to enhance the throughput as well as the distribution.  This is because managing of excess capacity is still the largest challenge for the operators of the transportation vessels. In order to achieve effectiveness in planning the need for ultra large vessels is therefore growing. This is because the freight transport is currently characterized by large ship’s containers.

The ports case are often peculiar as they combine marine and land transport advantages as well as the disadvantages.  This can therefore be referred as eccentric center. The game theory implies that the city ports can comfortably overcome the peripheral situations via the scales economies which are brought by the transport of maritime and therefore this leads to higher sizes and ranks than those that are determined by the theory of central place.

The gateway theory is therefore aimed at solving the issue of planning as it is purposed at providing more respectable places. The other theory is the self-agglomeration and effect of hub theory which takes place in port

Land system of transport involves two major modes which are roads and rail way transport.  Obviously roads were established before the introduction of railway transport became more available by the beginning of 18^th century in the middle of industrial revolution.  The advanced roads in the modern world are directed by structured roads. Rail transport is a mode of passengers’ conveyance of passengers as well as goods by the mode of wheeled cars which run on rail tracks which are thus referred to railroad.  The rails are thus anchored to rail road consists of connected vehicles that run the rails the rail locomotive are powered by electricity diesel or even electricity.  In another option these locomotives can also be powered by multiple units. Vehicles that are railed utilize less fiction those roads vehicles which require tyres with rubber. This therefore makes rail transport more efficient than road rails although they cannot achieve the efficiency of ship transportation.

Road transport is defined as a travel route which is surfaced with concrete or gravel  and the land of passage that is in support by the number of vehicles. The most improved vehicle in road transport is automobile as it is characterized with the ability of carrying its individual motor.

Transportation of tons by water is the procedure that transports water craft such as boats. The need for buoyancy and hull aspect construction appearance and maintenance is the aspect of water vessels.

Assignment 1

Case study analysis for Whole Foods Company

Whole Foods Company is has recently been ranked in the Fortune 500 after being the leading retail supermarket in the line of natural and organic foods own by John Mackey. It started as a simple entrepreneur retail shop that grew and progressed up to the current competitive level. It has dominated the United States of America in 193 stores and other small subsidiaries. The company has grown big since it started majorly through the opening of new store, braches and merging.  All these achievements have been realized through the engagements of certain strategies. First, the company has made it in promoting health for its customers and stakeholders by providing healthy eating education. The company has extended their support to the community by establishing environment that is appreciated by all. The company has also achieved high quality production of the natural and organic products for the delight and satisfaction of the customers.

Situation analysis

Whole Foods Company has laid out a strategy since 2002 that aims at the opening large stores which are its own rather that acquiring small stores of chain. This strategy would help in creating an interactive store atmosphere for the satisfaction of the customers. This would make the business more fun and Whole Foods Company would eventually become a third place for its customers. After the presentation of the financial results in 2005, it was seen that the revenues have been going down. Compared to other competitors. The prices of Whole foods products are also high above the industry average hence becoming hard to sustainable the trade.

The human resource is well trained and experienced and so they are able to deliver quality services to the customers. The working force has been greatly inspired by the company’s mission which has complemented their wants about the distribution of the profits. The company’s motivation of the human resource has made them feel good hence enjoying working under very clean and high standards.

Strengths of Whole Foods Company

Their major strength lies in the passion of maintaining high standard of the quality of the products and services. This gives a 100% satisfaction of any product that has been purchased. The other strength is the competitive advantage because it is the largest in terms of square foots. There are very few food stores that exceed 20000 square foot.  The other advantage of the cooperation that they offer an economic value added management and incentive system. The highly motivated workforce also has been the stronghold of this company.

Weakness of the company

The company is heavily dependent on the US market which makes it vulnerable to the economic variation of the U.S market. The company has very limited supply networks that can supply and satisfy the standards that it offers. This can be a hindrance to the growth and the expansion of the company. the prices of this company are also high compared to the adjacent competitors. This sends away the price sensitive competitors who prefer to buy cheaper goods from other store.

Opportunities of the company

The opportunities of the whole market company are dependent on the global market and the competitive environment. First, it has the opportunity of expanding. It has all it takes to decentralize their operations in to other parts of the world rather that depending on the U.S market only. The company has the opportunity of adjusting their prices by making slight reasonable reduction of costs which would increase the competitive advantage. The popularity of the organic foods has also become an opportunity which has been backed up by the health emphasis. The other opportunities are the attractiveness of the products, and the growth through acquisition. It has a brand image which can be improved through the involvement in the community service.

Threats

The company faces a number of threats. The competitors like Walmart offer the same products at a low cost which tends to threaten the progress of the company. There are also other small scale retailers who have opened similar businesses of natural and organic foods which are offered at a low cost. The coming up of the GMO products has become a great threat to the availability of natural and organic plants making the foods to be contaminated by the GMO ingredients. Lastly, the growth of the company is threatened by the global warming. This directly affects the food production in the farm hence bringing an indirect threat to the growth of the company.

Assignment 2

30 second elevator speech

I have recently worked as a communication professional and most of my fellow workers have complemented on my skills especially as a story teller. My presentations have moved crowds and many have liked them. I’m aiming at establishing myself on a platform that will help me start video production of company motivations. Since documentaries are my area of inspiration, I will help the companies to present their missions and the strategic planning in the social media through the videos I shall be producing.

People will hire me to compile their adverts, documentaries and other materials in a video form.

Discussion question

How you can use VCA, RBV, and SWOT analysis help in making a successful strategy. 

SWOT analysis is the key guide of conducting an internal analysis of any firm. It uses the approach of identifying the strong points and weaknesses, threats and opportunities that are potential in making the strategic planning of a firm. In the first place, it helps the executives to make a comparison between the internal and the external forces that directly and indirectly affect the firm. Once the SWOT analysis is made, a clear pathway of areas of focus is defined and the plans are made more real for success to be realized. It also helps them to make decisions For instance; the Whole Food Company was able to employ the SWOT analysis in making a strategy that propelled it for thirty years (Rao,  Rao & Sivaramakrishna, 2008).

VCA refers to the activities that a that are undertaken by a firm in its efforts to deliver a quality product of either the goods or services it offers to its customers. It breaks the firm into units that add value to the final product until it meets the expected quality and standard. Its main application in the market is to create a competitive market strategy. It also helps in making decisions on how much of product should be produced for a sustainable trend to be ensured. VCA analysis involves three basic processes which are activity analysis, value analysis as well as evaluation and planning. The three steps aim at identifying the activities that shall add value of the product, making necessary changes depending on the interest of the customers and finally implementation of the introduced changes (Rao,  Rao & Sivaramakrishna, 2008).

RBV is the application of tangible and intangible valuables resources in maintaining the firm’s average returns. RBV gives a firm a competitive advantage by the use of the locally available resources. Tangible things may include the pieces of land, machinery and buildings among others. Intangible assets include trademarks and brand reputation among other others. RBV has several distinct roles in the strategic planning such as identifying the potential assets in the firm, the value of each resource and the characteristics of the valuables (Rao,  Rao & Sivaramakrishna, 2008).

Response to Amy’s Analysis

The Amy’s description of the VCA is brief and precise which defines the analysis to be a value chain that that analyzes how changes in inputs into output is done with some additional of value in each step. The customers’ value is a value that meets the needs of a customer that depend on the three basic sources: activities that differentiate the product, activities that lower its cost, and activities that meet the customer’s need quickly. In addition to this summary VCA is more of creating a competitive ability of a firm by attracting the customers by providing high quality products.

The summary of RBV has been done in the best way possible only that she never gave examples of these assets. They include buildings, pieces of land and trademarks among others.

SWOT analysis indeed aims at using the approach of identifying the strengths weaknesses threats and opportunities in the analysis of the strategy of the firm.

 Response to Brandon’s analysis

The analysis here is great though it needed to be specific on what each analysis does to the strategy of the firm. The VCA and RBV need more elaboration on what their roles are in the firms.  The SWOT analysis is well described by saying of the transparency it b rings into a firm. It also helps the company in making decisions that act as the basis of success of these firms.

References

Rao, C. A., Rao, B. P., & Sivaramakrishna, K. (2008). Strategic management and business policy: Texts and cases. New Delhi, India: Excel.

Appendix

Figure 1. SWOT Analysis based upon the topic of the week for the company case.

Strengths

1. High quality standards
2. Cooperation of the workforce
3. Large stores than its competitors

Weaknesses

1. Dependent on the U.S market only

2.High prices

3. Limited market network

Opportunities

1. Global expansion
2. They chance of reducing cost
3. Growth through acquisition

Threats

1. Introduction of GMO foods
2. Low price competition
3. Global warming

CHOOSING A FRAME TO PROBLEM SOLVE

Part 1

            Decision making of Hammermill paper is quite involving because of the complex array due to the radical expansion and acquisition. The decision of diversification creates a way for the company to grow from original pulp and a paper mill to a national network. As a result communication among the managers had to be a key issue. This is because problems such as decision-making had to be solved. In order to make it successful, various division managers had to be involved. The company leaders such as the executives had to be involved. A decision such as performance and the specific goals of each department had to be communicated. In order to make it right then, the employees must be involved in order to know what is expected of them, various division managers and corporate headquarters need to set realist goal and implement the objectives and the executive managers and directors have to be involved in financing the whole project.

Part 2

            Structuring communication for the managers will require a clear a clear understanding of the organization outlay. This will ensure that the chain of command is observed and utilized in the best way. In order to do this then, the four frames of conveying the message that will facilitate decision making will need to be implemented. This involves a formal planning process that will ensure that the performance will be achieved due to specific goals set. Implementing the objectives and financing them through the various process will ensure communication through the various divisions. Budgeting will also play a key role. This will ensure that the budgets are properly estimated and there will be a smooth running of the business. The implementation of this frame will facilitate the elimination of any obstacle for the smooth running of the business.

Reference

Hammermill Paper Company (Adapted from the full case study – used with permission)

INVESTMENTS & JOBS IN THE SAN FRANCISCO BAY AREA STARTUP ECONOMY

1. Please briefly answer the following background questions:
2. a)     What are angel investors, and angel investors clubs?

An angel investor highly network persons who are very valuable as they invest their own finances into a business start-up for an exchange for an equity share in the company. They are a source of finance to most of the entrepreneurial start-ups. Their aim is not only limited to provision of finances but rather they also aim at bringing in their expertise and skills into the venture. An angel club is a combination of different individual angels who come together to examine and invest in entrepreneurial businesses. Angels club are easier to be traced by an entrepreneur and they act as the fundamental connectors of business dealings in their communities (Preston et al 8-10).

1. b)     What is crowd funding?

This involves the funding of the entrepreneurial start-ups by angels online where a business owner seeks finances from a large number of funders where each contributes a little (Scholz et al pg. 7).

1. c)     What is an accredited investor?

According to Securities and Exchange Commission, an accredited investor refers to the investor who has the ability to take economic risks by investing in unregistered securities and are independent thus they don’t need protection by the government fillings. For example, banks, individuals, corporations, insurance companies and partnerships (Palmiter et al pg. 219).

1. d)     What is the Jumpstart Our Business Startups Act (or JOBS) Act of 2012?

This is an act that was signed by president Obama in 5^th April 2012 with an objective of promoting funding of the small business start-ups in United States through the relieving some securities regulations.

1. e)     What are the main provisions of the JOBS Act concerning angel and crowd funding investing?

Jobs Act requires crowd funding deal ought to take place all the way through the SEC registered mediator, within the proposed rules and regulations and incase of crowd funding it must totally occur online under a registered portal with the SEC registrant.

2. Crowd-funding (non-necessarily accredited investor)
3. Prepare a portfolio of 8 investing opportunities in crowd funding you would consider investing in. Explain why, and specify the amount to be invested and returns expectations. (Budget: $20,000)

My choice of the varying investment opportunities is as result of the little amount needed by each and the choice of the items that the businesses deal with. Most of these businesses deal with basic goods that are frequently needed by people.

1. What are the risks/opportunities in crowd funding?

The advantage with this kind of funding is that it creates more job opportunities and employment. However, it has a high risk in fraud and failure from the business.

3. Angel investing (accredited investor)
4. Prepare a portfolio of 4 startups you would like to invest in. Explain why, and specify the amount to be invested and returns expectations. (Budget: $100,000)

These type of start-up usually require labor thus in choosing them despite offering them finances, my knowledge in these businesses can be employed.

1. What are the risks/opportunities in angel investing?

High risk taking especially financial risks but then again this form is personally rewarding with most 50% returns.

4. Jobs
5. a)     Look for sources of startups and list 8 startups you would consider working for, and perhaps apply for jobs as well.

Some of the sources of start-ups involve the banks, partnerships, insurance companies, trusts and cooperation.

1. What are the risks/opportunities of working for those particular startups?

The core advantage of sourcing funds from these businesses is that one can get huge amounts of loan or funds but the problem is in their interest rates.

References

Palmiter, Alan R. Securities Regulation: Examples and Explanations. New York, NY: Aspen          Publishers, 2008. Print.

Preston, Susan L. Angel Financing for Entrepreneurs: Early-stage    Funding for      Long-Term Success. San Francisco, Calif: Jossey-Bass, 2013. Internet resource.

Scholz, Nadine. The Relevance of Crowdfunding: The Impact on the Innovation      Process of Small Entrepreneurial Firms. , 2015. Internet resource.

Benefits and Limitations of Preceptorship Model

Introduction

Preceptorship is a planned period of transition for fresh graduates in the field of nursing. This might also include: midwives and persons who are health professionals as they commence their employment in the health care facilities. During this time, a person is usually helped by a qualified practitioner who makes sure that the intern does not make any mistakes at all. The practitioner helps the intern to be able to develop confidence, and be able to behave according to the way the situation requires him or her to behave. Furthermore, the practitioner helps in providing skills to the intern which he or she is supposed to use in case of any complications or in case a patient is in a very critical condition thus avoiding panicking. Through having the practitioners support, one is able to develop courage thus being able to tackle any medical problem that he or she is likely to encounter. Thus preceptorship is very beneficial to both the interns and the patients. This is because it helps in making sure that the health of the patients is not at stake. Through being supported by the preceptors, the new nurses can be able to treat and offer medical support to the patients properly without making mistakes which can lead to serious complications. Hence patients’ health is guaranteed since it is not easy for the nurses to make mistakes after preceptorship thus making it easy for them to understand how to deal with different conditions at ease. This paper is therefore going to talk about the benefits and the limitations of the preceptorship model both to the graduates, patients and health organizations

The preceptorship model has a lot benefits both to new graduates, patients and the health organizations (Sharples, & Elcock, 2011. First and foremost, this is a training which allows the graduates to be able to interact with the medical conditions thus understanding the way different activities are carried out in the health organization. Secondly, they are also allowed to work alongside professional paramedics who help in making sure that the new graduates do not end up making and y mistakes (Danielsen, 2012). This consequently allows them to be able to have self-confidence thus they can be able to deal with any medical issue that requires their attention. Thirdly they can also be able to avoid and any doubts that they have through working with the professional paramedic. Hence they can be able to ask them any questions that they may be having hence doing the job accordingly without encountering any problems at all (Feldman, & Alexander, 2012).

            The consistency of the preceptor is very effective in the development of a successful preceptorship model. This is so because, a single preceptor will be capable of working with the intern through the preceptorship stipulated duration. Having the same preceptor is better than changing the preceptors since it requires building up of the relationship and trust between students and the preceptor. Changing the preceptors tends to affect the students since different preceptors conduct their teachings differently. This may therefore confuse the intern if he or she is not careful, on the other hand, changing the receptors is like starting over again as it takes time for the interns to be able to understand the preceptors way f teaching. A research was conducted basing on the importance of the consistency of the preceptors to the students. More than 86% of the nurses who had gone through preceptorship model confirmed that having a single preceptor creates a good relationship between the preceptor and the intern. Furthermore, this leads to the development of a support network whereby the intern consequently asks the preceptor questions at ease without any problems. This relationship also encourages hard work and determination since the intern tends to follow the footsteps of the preceptor.

One of the main requirement of the newly graduated nurses is to be able to interact well with the health facilities and instruments (Fulton, Lyon, & Goudreau, 2010). This really helps since they can be able to use the health instruments easily without having any problem at all. This therefore makes it easy for them to be able to adjust and control the instruments in the departments that they work with. It is therefore the work of the graduate to ask the paramedics to show them how to deal with such instruments (Billay, & University of Alberta, 2010). The paramedics therefore make sure that the intern is able to work and use the instruments effectively without any problems at all. They can also be able to administer a first aid to a patient thus saving lives (Ciocco, 2016). This therefore requires one to be able to pass through the preceptorship model hence he or she can be able to deal and cater for the problems that the patients are facing within the shortest time possible. This model therefore provides the basic nursing knowledge that one requires in order to be able to deal with any medical condition (Sharples, & Elcock, 2011.

Preceptorship provides the interns with a very good place where they can be able to earn how to conduct their activities. Since the lessons take place in a hospital, this allows interns to be able to exercise effectively because they work under a very creative environment. The learning space is also secure making students to be free while learning without any pressure whatsoever from external areas. The learning place is also full of answers to the questions that they are likely to ask thus nothing seems new since they are in a very comfortable place. Thus learning in such an environment is significant in the creation of self confidence among the interns as they were learning in a hospital hence making them to get used to such conditions. Moreover, working in such a condition helps in making the students to think critically in the way that they will be going to undertake different tasks. Through the creation of an intern patient relationship, this allows the interns to be able to work freely with the patients and understand them. This is because of learning clinical skills which allow them to be capable of working even in critical conditions.

The model allows the intern to work alongside a qualified paramedic who can be able to provide information to him or her when need be. This is one of the major benefits of this model as it allows the intern to work accordingly since he or she will definitely follow what the professional medic does. This therefore makes it easy for the intern to adapt with the medical conditions thus being able to provide medical support at ease (Sharples, & Elcock, 2011. Furthermore, this also helps the interns to be able to avoid making mistakes as they will be able to confirm whatever they want to do hence being able to work effectively and according to the medical problem that they might be supposed to deal with (Feldman, & Alexander, 2012). On the other hand, they can also be able to gain the medical speed that is required of them particularly when dealing with very critical medical conditions. As a nurse, one needs to be able to work very first without making any mistakes particularly when the condition is very serious (Billay, & University of Alberta, 2010). The mode therefore allows the intern to be able to learn how he or she can be able to work effectively without making any mistakes and at a very first speed. Moreover, the intern can be able to clear the doubts that he or she has thus working effectively. The preceptor also acts as a role model of the intern thus making it easy for the intern to follow the way that he or she is working (Ciocco, 2016). The preceptor therefore boosts the working morale of the intern since they will be motivated to work under very critical conditions. The intern can be able to learn new ways of dealing with terrible situations hence making it easy for him or her to be able contain such a situation even when he or she is unable to do it other than giving up.

This model is also beneficial to the patients, as it makes sure that their lives and health is safeguarded (Fulton, Lyon, & Goudreau, 2010). This is because, before the intern becomes employed, he or she must have passed through the preceptorship model which provides him or her with the knowledge of dealing with the patients. The new graduates are therefore able to provide the best medical attention to the patients hence making sure that they are not in any way negatively affected by their support. Hence only a qualified nurse is employed and the safety of the patients is guaranteed since the nurses know how to provide the best medical care (Danielsen, 2012). On the other hand, the nurses are able to understand and avoid making mistakes hence providing the best medical care to the patients (Feldman, & Alexander, 2012).

The health care organizations are able to save the costs of executing different objectives (Sharples, & Elcock, 2011. This consequently allows the health organization to be able to better its performance through the funds earned from the preceptorship models. In addition, the health organization can be able to have qualified nurses who will be able to provide quality services to the patients after passing through the model (Billay, & University of Alberta, 2010). The model boosts the morale of the interns thus they can be able to work with other nurses peacefully without any problems hence providing the best end results. The nurses can also be able to work with the health organization’s instruments effectively thus making sure that the patients are treated according to the way they are supposed to be treated (Ciocco, 2016). Through having qualified medical practitioners, it makes it easy for the health care organization to be able to reach its goals since it has qualified nurses who can be able to work together in order reach a common goal.

On the other hand, the preceptor model has different limitations both to the graduates, patients, and the health organization (Danielsen, 2012). This is consequently because the effectiveness of the preceptor depends on the preceptor. Thus for a graduate to be hardworking and determined, he or she must have a preceptor who is hardworking and determined (Fulton, Lyon, & Goudreau, 2010). This is consequently because the receptor is the role model of the graduate, thus the graduate needs to work according to the way the preceptor works. This consequently limits the way the graduate is supposed to work since they are supposed to follow the footsteps of their role models. The preparation of the preceptors is very significant in making the preceptorship effective, but the preceptors do not prepare themselves adequately. This consequently leads to poor training since the preceptors work without a good working plan. In addition, the preceptors are not involved in the students’ evaluation process. This consequently limits them from being able to provide the best skills to the interns.

Most of the preceptors may be busy and this may be hard for them to guide the graduates according to the way they are supposed to work (Billay, & University of Alberta, 2010). An example is if the health organization has patients with very serious conditions, it makes it hard for the preceptors to help the graduates in conducting different activities. Furthermore, if the preceptor is lazy, then it means that it will be hard for the graduate to learn much from this model thus he or she may not be a good nurse (Fulton, Lyon, & Goudreau, 2010). Thus the services that the nurse might be able to offer may not be effective at all and may lead to deaths or otherwise confusion at work which may easily lead to avoidable deaths. Moreover, it is required of the receptor to plan for the preceptorship but due to a huge workload it may be hard for him or her to plan effectively (Ciocco, 2016). This therefore limits the amount of knowledge that is supposed to be passed. The preceptor consequently passes to the graduate very little information thus making it hard for the graduate to be able to provide the services that are required of him or her.

Preceptorship has been turned into a business since most health organizations only employ health care practitioners who have passed through the model (Billay, & University of Alberta, 2010). This has therefore made it hard for one to be able to identify a qualified preceptor from one who is not qualified (Sharples, & Elcock, 2011). Thus a graduate may have a preceptor who is not qualified since one needs to pass through the model in order to get employed as a qualified nurse in a health organization (Feldman, & Alexander, 2012). The time allocated for the model may also be limited since the preceptor might not have planned well for the model. Furthermore, due to the shortage of staff in health organizations, it may be hard for the preceptors to carry out very effective preceptorships. This therefore makes the graduates vulnerable as they may not be able to provide different services effectively hence putting the lives of the patients at stake. The effectiveness of the preceptorship may not be guaranteed and this makes it hard for the patients to receive quality services (Ciocco, 2016). The nurses may not be able to work accordingly thus offering poor services to the patient which may lead to complications in the future. Moreover, the nurse may make mistakes which may affect the patient thus leading to death. Thus the health organization might not be able to provide effective services to the patients since nurses might not be able to provide the best services to the patients. The criteria which is used in selecting interns and the preceptors is not clear at all, thus any preceptor can be given any intern regardless of the needs of the intern. This consequently makes it hard for the intern to be capable of gaining since the preceptor given to him or her might not have specialized in the areas of weakness of the intern. Thus the intern cannot be able to gain fully from the preceptor.

Conclusion

Preceptorship model is very effective in providing qualified medical personnel who can be able to provide medical services effectively. Graduates, patients and the health organizations enjoy the benefits of this model as it safeguards them all. This model consequently allows the patients to be able to receive quality medical services since the nurses are well trained. The health organization is also able to offer the best services since the nurses are qualified. On the other hand, the preceptorship model as its limitations. This limitations are mainly influenced by the shortage of nurses in the health organizations which leads to an increase in workloads. Thus professional nurses may not be able to offer preceptorship services effectively to the graduates. The graduates may not therefore be able to carry out the services that they are required to carry out effectively hence putting the lives of the patients in danger. Furthermore, preceptorship has been taken as a business thus making it hard for the lessons offered to be effective hence graduates may not be able to deal with very critical medical conditions.

References

Sharples, K., & Elcock, K. (2011). Preceptorship for newly registered nurses. Exeter: Learning Matters.

Fulton, J. S., Lyon, B. L., & Goudreau, K. A. (2010). Foundations of clinical nurse specialist practice. New York: Springer.

Ciocco, M. C. (2016). Fast facts for the nurse preceptor: Keys to providing a successful preceptorship in a nutshell.

Danielsen, R. (2012). The preceptor's handbook for supervising physician assistants. Sudbury, MA: Jones & Bartlett Learning.

Feldman, H. R., & Alexander, G. R. (2012). Nursing leadership: A concise encyclopedia. New York: Springer.

Billay, D. B. W., & University of Alberta. (2010). Preceptorship and nurse practitioner education: Navigating the liminal space.

Enterprise or Environment

            There is a conflict between economic development and environmental sustainability. This happens due to the impact of such development on the environment since economic development is about incorporation of environmental assets which has an impact in environmental sustainability (Great Britain., 2011). Economic development is associated with a variety of activities that bring a decline to the environment hence causing a conflict. In the course to ensure economic development among people, countries normally opt to achieve economic growth which involves cheap energy, job creation and other services for the citizens. This may lead to degradation of the environment in a number of ways. Pollution is the greatest challenge that is affecting the world as a result of economic development (Great Britain., 2011). Due to severe pollution, the population faces difficulties like ill health, disabilities and eventually death of the population. The extraction of resources in trying to develop industries causes changes in the climate which in turn leads to damages in the environment. Economic development also involves high rate of economic activity which leads to depletion of resources such as minerals, oil making it hard to deal with pollution (Great Britain., 2011).

            Environmental ethics plays a big role in ensuring that in the course of developing the economy, Mother Nature is respected and treated with consideration. Its aim is to study the relationship between the human beings and the surrounding (Thompson, 2010). This tends to exert influence on arrange of disciplines which include environmental law, ecotheology and environmental sociology. Industries are required to observe environmental regulation in the course of industrialization (Thompson, 2010). Therefore environment ethics ensures that in the attempt to foster development, humans must ensure that the environment is protected, and kept safe for human safety.

References

Great Britain., & Great Britain. (2011). The impact of UK overseas aid on environmental protection and climate change adaptation and mitigation: Fifth report of session 2010-12. London: Stationery Office.

Thompson, P. B. (2010). The agrarian vision: Sustainability and environmental ethics. Lexington, Ky: University Press of Kentucky.

Entrepreneurial Investment Report

Executive Summary

This report gives an evaluation of the performance of Apple Inc. Company in terms of the current profitability and the prospective profitability in comparison to the initial rationale for its foundation. The analysis also provides information on the financial stability of the company in terms liability versus assets in the current period as compared to the past and the forecast financial performance. The findings show that comparative performance is fairly strong in terms of profit margins, credit control and management of inventory. The information is provided in a table to clearly show the information on financial matters.

It shows that the company’s prospects in the current form though not negative, there is need for management to investigate further and come up with remedial actions.   The report also provides information on why the value of the company Apple’s brand has improved by129% over the past year up from $3billion in year 2011 to $76 billion by 2015. The value of the company has been increasing year by year. It also provides recommendation on how to increase the sales volume. The reports also draws attention to the fact that in in 2011, the market share the company’s Smartphone expanded by close to 49 percent. Further investigation has revealed that the shrinkage in the share market coincide with entry of counterfeit phones in the market especially in the year 2013 and a reduction in the pricing of some of the competing smart phones. These factors seem to be the main cause of decrease in income in most of recent years and subsequent lower profits. The recommendation arrived at include an improvement on debt collection , better management on inventory and the adjustment of pricing in order to compete favourably with other firms. To increase the sales volume, aggressive advertising should be done and legal action taken in order to bring down the chances of the company’s products being counterfeited.

The company was initially started with a goal of targeting the middle class market and thus it had its products priced lower than similar brands. With an initial capital which included a secured bank loan, the company financial position has ensured that the financing loan has been fully serviced and the return on investment has seen the company stabilize financially. The report focuses more on Apples leverage brand iPhone.

Market and Customers.

The Apple Inc. was started on the basis of gaining competitive advantage over other existing competitors in order to penetrate the electronic market. The name Apple Computers Inc. was dropped and Apple Inc. was adapted in order to have an inclusive name since the company resulted to producing other electronic products apart from computers. Thus the company mainly deals with selling smartphones and computers but has also incorporated other electronics that include software Mac OS X operating system. It has been very successful in the introduction of the software that has enabled it to develop an excellent iPhone Smartphone.

 The company has attracted a significant number of users in the phone market since its inception. The number of the users however exceeded the expectation by the end of the year 2013 large where it was able to attract about 17.1 percent of worldwide users an increase that was largely attributed to the innovative features which was a strategy go compete in the market. By the year 2015 the company was able to reach it pick and its market share stood at 40 percent a factor contributed to high profitability in the same year (Lamido, 2016). The company, however, faces big competition from similar brand and the counterfeit brands that sell very cheaply especially in the low income countries. The company sales have been supported by partnering with more than 10000 stores which has been facilitated by 317 stores and this has seen gain a competitive advantage. It has also strategically partnered with other partners in foreign countries to produce and distribute the products. The computer products have largely been sold locally but the Mac OS software has been franchised with an aim of maximising profitability. The company target market is non corporates, and young income earners unlike the competitors. It has managed to leverage on the image of iPhone Smartphone and thus attain a good positioning in the market. Its target market has mainly been professionals and students who are between 18 – 35 years age basically (Lamido, 2016). The company faces stiff competition from other from other software developers such as Microsoft and Google and other innovative phone brands from Samsung, LG, Sony and blackberry

The company has applied the 4 Ps model of marketing mix in order to come up with a good strategy for marketing where the an exchange of benefits are done between the marketing pillars which was later modified to add three more Ps. The product can be found in more than 60 million pages on the internet, using a broad display screen in every mobile phone.  The software used is Pal OS system with expandable memory and replaceable battery. All the versions of the iPhones have been integrated with support for 3G network (Lamido, 2016). A SWOT analysis of the smartphone and the other products has been used to establish their strength and opportunities. The company should come up with main competencies on which it basis its strength and put more focus on the opportunities that may arise with time. An analysis of threats assist in safeguarding the development of the product and come up with contingency plans. The company has gradually adopted innovative methods in an effort to convert weaknesses into strength while using appropriate resources. The customers do not appreciate the locked iPhone that uses one Cingular network. The cost of this phone higher than other similar phones in the market which would partly explain the reduction in the sales. The company should also apply pricing strategy of the best-fit segment where it will target those customers who are less sensitive to price and want to utilise the benefit of the newest technology. This will enable it capture more market segment instead of targeting mostly the young income earner segment of the market. This is known as versioning, which is a price discrimination strategy where iPhone prices will be set according to the customers desire to pay. This should be structured in various countries because a significant difference in the per capita income in different countries.

Though the company has been active in promotion, it should aggressively engage in more advertising activities to boost the sales volume. This should also include press releases and posting blogs so as to increase the coverage of the phones and the computer products across the web. The company has seen a lot of counterfeit products affect its sales. To overcome this the company should go a set further from protecting its intellectual property. The company should work with authorities to police its products and pursue the counterfeit one. It should periodically monitor its sales, both retail and online to check for genuineness.

Income statements

In million USD for 2010-2015

Balance sheet as at 31-12- 2015

Cash flow statement as at 31-12-2015

The income statement shows the peak of the company’s sales to be in the year 2015 NASDAQ (2016). It has been successful in allowing other parties in using their innovative Mac OS software in other gargets and making the iPhone smart phone act as a remote and this helps the firm to share the profits with such developers. The performance of the firm has been affected by the entry of other similar brands whose price are low and whose products have not seen much of counterfeiting. The stiff competition has seen the company experience no significant growth at all in terms of volume of sales although it continues to be profitable only because the costs of operation have been kept low. It continues to be a viable venture as proved by the latest income statement.

Conclusion

It has been confirmed that the company has been able to remain profitable even when it has been experiencing low volume of sales. This has been enabled by the effort to keep the expense at minimum level. The company should focus on adding new markets for its leverage phone brand and aggressively market the other products especially the Apple computers. It should also understand changes in social forces and apply it in targeting new customers. Instead of focussing only on the young professional segments of the market, it should plan to target other segments such as older segment of who usually have higher purchasing power. To further increase sales volume, the firm should consider expanding its market to more countries and develop products priced for such markets.

Reference

NASDAQ (2016) AAPL. Retrieved from: file:///C:/Users/user.HOME/Downloads/Financial%20Statements%20for%20Apple%20Inc.%20-%20Google%20Finance%202.html

 Lamido, K (2016).The Analysis of Apple Inc. Marketing Mix. Retrieved from: file:///C:/Users/user.HOME/Downloads/The%20Analysis%20of%20Apple%20Inc.%20Marketing%20Mix.%20_%20Kamal%20Lamido%20-%20Academia.edu.html

Website:  http://www.apple.com/

UNIT 3: RISK MANAGEMENT: RISK MITIGATION

1. Bank and its risk identification analysis

            Banking is an industry that has a way of utilizing both assets and liabilities to help them generate revenue. Asset transformation is the method in which banks are able to make profit by creating new assets from liabilities (Williamson 1988). The primary ways in which to help generate bank profits is by the dispensing of loans. The interest that is received from the borrower allows the loan to continue to generate profits (Balls 2009). The dual function of the bank is to be able to have a depository function and also lending functions. It is this process that gives a bank the ability to continue to function and process. To identify risk which may affect the project different methods such as information-gathering, assumption analysis, checklist, documentation reviews and other tools are used.

            Basically I would use the information-gathering tool and the documentation review tool.

In information-gathering tool the organization can brainstorm about risks for them to pull data that can be beneficial in evaluating current risk that may still exist within the organization. It could also help in reflecting if a particular risk has been minimized and properly managed. The documentation review is the other tool that I would recommend to be used since it allows the organization to take all of the files and current assumptions that exist and compile it together to use the data they collect for carrying out an analysis on the possible risks that may occur.

2. A mitigation strategy

            Business, market, inflation, interest rate, and credit are risks that affect the banking industry. Business risk determines how each decision made produces a particular outcome. Business risk is a chance of loss and is connected with managerial judgments. Each decision made regarding the products and services of the bank for instance, to change or not change interest rates, marketing strategies affects the ability of the bank to continue to generate income for business (Ghosh 2012). Market risk takes into account that investment portfolios can see a loss in money due to the fluctuations within the market as a whole. Banks need to consider the timing of selling new debts and securities when managing portfolio investments. In order to remain alert to the needs of their consumers’ banks need to continuously make upgrades to their products and services. Doing so will allow them to properly navigate through the ever changing market fluctuations (Panjer 2006).

3. Loss control methods of the hazards, accountable groups, intended and unintended outcome.

The on-going crisis in the banking sector have led to great banking scandals and financial fraud. This has brought up concerns of structural flow and how operation have been carried out, the way they are supervised and regulated. Due to this there have been different approaches that are underway in order to restore the investors’ confidence ((Wehinger, 2012). In order to control the risks continuous checks on the data and analytic tests should be carried out on weekly basis. To enhance this it should be supervised by Anti-fraud Units. 

Establishing trust online is a challenge to both the bank and e-commerce institutions. This is done in order to establish firm relationships with their consumers. In order to achieve this institution should put in place proven measures so that the institution can be in a position that can safeguard its personal information. As a result of implementing proven measures elements such as fraud, inflation and generally the banking risks can be reduced (Barnett, 2012).

References

Balls, A. (2009, February). Crunch reveals banking dysfunction. NZ Business. p. 71.

Barnett, J. (2010). A new prescription for building trust online. Health Management Technology,             31(12), 1.

Ghosh, A. (2012). Managing risks in commercial and retail banking. Singapore: John       Wiley & Sons.

Panjer, H. H., & John Wiley & Sons. (2006). Operational risk: Modeling analytics.          Hoboken, N.J: Wiley Interscience.

Wehinger, G. (2012). Banking in a challenging environment: Business models, ethics and            approaches towards risks. OECD Journal: Financial Market Trends, 2012(2), 79-88.

Williamson, S. D. (1988). LIQUIDITY, BANKING, AND BANK FAILURES. International       Economic Review, 29(1), 25.