Significance of Capital Market for Economic Development

Significance of Capital Market for Economic Development An Explotary Study On The Significance of Capital Market for Economic Development and Its Further Growth Potential In Context of Bangladesh Abstract This research paper investigates whether the role of capital market is significant for the economic development of Bangladesh. Literature suggests that well developed stock market can provide an extra impetus to economic activity. Similar conclusions were also drawn from the in-depth interviews. This paper also reveals a well-scanned scenario of the capital market highlighting its setbacks, current weakness, recent improvements and its prospective signs of development through which we can foresee whether the capital market has further growth potential or not. Thus the present study can also contribute in providing essential information that can also be used for further research. Abbreviations ADB- Asian Development Bank CDBL- Central Depository of Bangladesh Limited CDS- Central Depository System CSE- Chittagong Stock Exchange DGEN- DSE general index DSE- Dhaka Stock Exchange GDP- gross domestic product IPO- initial public offering SEC- Security and Exchange Commission 1.0 Introduction The financial market contributes to the economic growth and development by providing the needed finance for provision of goods and services. The financial market consists of two division- money market and capital market. The money market is basically entitled to supply finance on short-term basis to individuals, businesses, enterprises, government and their agencies. The capital market, on the other hand, provides finance on medium to long-term basis to corporate bodies, government and their agencies (Al-Faki, 2006). Capital Market plays a crucial role in any modern economy as they allow investors’ fund to flow to the most promising opportunities, i.e., the funds are mobilized and channeled efficiently from savers to the users of funds (Al-Faki, 2006; DSE, 2006; Hubbard and Thornton, 2006; Ahmed, 1997). In Bangladesh financial intermediation relies mostly on the banking sector which further resulted in lack of equity financing (Salahuddin Ahmed, 2007; Islam and Hassan 2002). Furthermore out of 5 million urban-based middle class people only four hundred thousand are participating in the securities market and among them roughly hundred thousand are active investors. A large portion is still ignorant of the nature and benefits of the capital market (Abu Ahmed, 2006; DSE Review, 2006; Islam and Hassan, 2002). Developing more complete and deeper capital market would enhance a countries growth potential and innovation (Andritzky, 2007). The forces of globalization, technology, new forms of competition have noticeably transformed capital market worldwide (Hassan, 2004). The chief advisor Dr. Fakhruddin Ahmed stated that â€Å"Only a vibrant and well-regulated capital market can bring sustainable economic development in the country through making the real sector capable of meeting the challenges of the competitive global economic realities† ( DSE Monthly Review, June 2007). Regardless of recent improvements, Bangladesh’s capital market remains underdeveloped as its size is still very small in terms of market cap (ADB, 2006; Salahuddin Ahmed, 2007; Islam and Hassan 2002). The market cap represents just above 9% of the GDP (Dr. Fakhruddin Ahmed retrieved from DSE Review). As Bangladesh capital market is still quite small compared to other regional market and to the size of its economy (CSE, 2006) despite its existence for a long time, this paper applies a framework for analyzing the significance of capital market for economic growth and development of Bangladesh, identifying its growth potentials through exploration. 2.0 Problem Statement Bangladesh’s capital market is still underdeveloped, in spite of recent improvements. The size of the country’s capital market is quite small mainly due to the excessive dependence of leading corporate entities on the banks for financing. Moreover the overall transparency of market transaction is also low compared to international standards and generally there has been slow development of the underlying market infrastructure. The government is making effort to develop the reliability and efficiency of stock exchanges as investment market. Compared to the other neighboring countries the numbers of participants are much smaller in Bangladesh as investor lack confidence. There is a supply side constrains in the capital market as quality shares are lacking. For all this reason this research is done to explore the importance of capital market in the economy and what are the prospective sign of development of the stock market. 3.0 Purpose of the Study The purpose of the study is to explore a well scanned scenario of Bangladesh capital market, its significance and its prospects. Although some research has been conducted relating to this topic but there is little empirical evidence about how essential stock market is to economic development of a country. A sound capital market prompts better economic base and influence its future growth and so it can help realize Bangladesh’s growth potential. The capital market of Bangladesh is on the brink to play its due role as a medium for financing investment and thereby making a notable contribution to economic growth, employment creation and poverty alleviation. The capital market plays an important role in quickening the pace of economic development but the existing state of the capital market is under-developed and not in a position to ensure economic progress of the country. Hence this research will try to highlight the significance of capital market for the nation and explore what are the probable signs of progress. 4.0 Research Timeline 2007 SeptemberWriting Research Proposal 2007 SeptemberDeveloping Literature Review 2007 OctoberCollecting Data 2007 October- NovemberData Analysis and Interpretation of the Findings 2007 NovemberPreparing Draft and Finalizing the Research Paper 2007 DecemberSubmission of Research Paper 5.0 Limitations of the study During conducting the research I came across certain limitations and among them the foremost one is time constrain. Although I got the opportunity to work in an organization that is capital market based but it was difficult to find spare time that could be used for the report. Moreover the interviewed person could not provide all necessary information due to lack of time. The research timeline also reveals that time constrain was actually a barrier as there was plenty to find about this research topic. As the research is conducted for the first time, I did not get much support from previous research paper and further research is suggested. A huge portion of the report is based on secondary data collected through websites and so the depth of reliability varies as by the nature of website. 6.0 Review of the Literature 6.1 Financial Intermediation According to Joseph Yam (2004) financial intermediation is channeling savings into investments. Aziz and Duenwald (2002) referred that financial intermediation affects growth through the following channels – (i) it can increase the marginal productivity of capital by collecting information to evaluate alternative investment projects and by risk sharing (ii) it can raise the proportion of savings channeled to investment through financial development. According to Conning and Kevane (2002) â€Å"intermediation implies an intermediary†. Gorton and Winton (2002) added that â€Å"it is the root institution in the saving investment process†. They referred that financial intermediaries are firms that borrow from those who have excess money, that is, the savers and lend the money to companies that need resources for investment. 6.2 Performance Indicators According to R. N. Agarwal (2000) the most commonly used standard to measure the size of a country’s stock market is market capitalization ratio, that is, the ratio of market value of stocks which are currently listed on a bourse to Gross Domestic Product (GDP). A small ratio of capitalization to GDP reveals the small size of a stock market. Alternatively, the size can be measured by the number of listed companies on a stock market. The height of maturity of an economy’s financial system is essential for economic development. Bekeart et al., (2007), Hubard and Thornton (2006), Rosul (2002) all investigated the significance and relation of stock market development with the economic growth and their conclusion suggests that capital market development is positively correlated with long term economic growth and the capital market plays an important role in the economic development of any country. The size of the equity capital market has an optimistic effect on economic growth of the country, that is, much higher market cap and turnover has a major positive influence on the economy (Institute for Advanced Studies, IHS, 2006). It is seen that the ratio of market cap to GDP in neighboring countries like India, Pakistan and Sri Lanka is relatively much higher, that is, more than 60% of their GDP (DSE, Kh. Asadul Islam, 2007; Dr. Fakhruddin Ahmed,2007). In Bangladesh the market cap is very small proportion of the countries GDP (Islam Hassan, 2002) and this is due to significant dependence on the banking sector (DSE Review, Fakhruddin Ahmed, June 2007). Market capitalization as a share of GDP was around 2.5%-3.3% during 2001-2003 compared with 1.4-10.1% during 1993-1996 and 2- 4% during 1997-2000. However in the year 2004 market cap reached 6.8% reflecting the rise in the DSE index from 968 to 1,971 at the end of 2003 and 2004 respectively (ADB, May 2005). The trend of market cap as percentage of GDP and other capital market indicators of DSE and CSE are shown through the help of statistical data represented in the discussion section in Table 1. Despite the existence of the bourse from 1954, the capital market still exhibits features of an emerging equity market (Islam Hassan, 2002). The finance sector is immensely bank-based (Salahuddin Ahmed, 2007) as resource mobilization for industrialization and economic development is made primarily through the regular banking system (Islam Hassan, 2002). Borrowing requires fixed payments and over-reliance on banks can cause credit default risk. According to (Mochammad Rosul, 2002) excessive reliance on bank borrowing results in a mismatch with long-term investments being financed with short-term bank loans. He added that such a risky situation can further contribute to the economic crisis and so the job of the principal fund supplier for business should be transferred from banking sector to the capital sector. 6.3 Regulatory Bodies 6.3.1. The Security and Exchange Commission (SEC) The Security and Exchange Commission (SEC) exercises power under the Security and Exchange Commission Act 1993 and established on June 8, 1993. SEC, the sole Capital Market Watchdog and Regulator, has been pursuing a vigorous capital market development process including amendments of its existing regulations, conduction of investor awareness programs, rigid monitoring and surveillance to bring in transparency in the trading mechanism (SEC, Annual Report 2003 -04). The responsibility of SEC includes the following: Regulating the functions of Stock Exchanges Registering and regulating the business of stock brokers, sub broker, share transfer agents, underwriters, registrar, portfolio managers, investment advisors, and other middlemen related to security dealings. Registering, controlling, and monitoring of all types of mutual funds Controlling and monitoring of all authorized self regulatory organizations Prohibiting fraudulent and unfair practices related to securities Promoting investor’s education program and providing training of intermediaries Regulating substantial acquisition of shares and takeover of companies SEC are detects market manipulation and also keeps constant vigil on the activities of stock exchanges to ensure effectiveness of the surveillance system. Conducts research and publishes information for above purposes (Source: Security Exchange Commission Website: www.secbd.com) 6.3.2 Stock Exchanges 6.3.2.1 Dhaka Stock Exchange (DSE) On April 28, 1954 DSE was first incorporated as the East Pakistan Stock Exchange Association Limited. Formal trading began in 1956 with 196 securities listed on the DSE with a total paid up capital of about Taka 4 billion. On June 23, 1962 it was renamed as Dhaka Stock Exchange (DSE) Limited. After 1971, the trading activities of the prime bourse remained suppresses until 1976 due to liberation war and economic policy pursued by the then government. Trading resumed at DSE in 1976 with only 9 companies listed having a paid up of Taka 137.52 million (Bashar et al., 2000; M Farid Ahmed, 1997). As of today there are 342 listed companies in the prime bourse with market cap exceeding 700,000 million (DSE, 2007). The reforms that DSE undertook recently for ensuring professionalism and transparency focused on the trading of securities. The measure were taken to implement transparent trading system, efficient reporting of trade, real time delivery of information, strong surveillance and monitoring over trade of securities and settlement of shares (Rahman,Uddin and Malik, 2006). 6.3.2.2 The Chittagong Stock Exchange Limited (CSE) The CSE is the countries second bourse that started its operation from the year 1995. It is also a self-regulatory non profit organization. Currently the numbers of listed securities are 223 of which the number of listed companies are 208, mutual funds 14, and one debenture. 6.4 Recent Capital Market Scenario of Bangladesh According to Dr Fakhruddin Ahmed (DSE, 2007) political uncertainty, corruption and lack of transparency in all section of the social and economic fabric are some of the reasons for capital market deficiency. Bangladesh Governor Salehuddin Ahmed (2007) reveals that foremost problems include political instability, under developed infrastructure, poor port management, short comings in legal system and corruption (Financial Express Report). On the other hand DSE general share price index reached its pinnacle and crossed 3000 points (Newage: www.newagebd.com). In fact the capital market witnessed a robust growth in the current year. Both turnover and market cap crossed new milestones at Tk 3000 million and Tk 700,000 million respectively during the year (DSE, 2006; DSE, 2007, IDLCSL). Recently our market cap crossed USD 10 billion that accounts for only 13% of its GDP which was only 8% a year back. (DSE Monthly Review, Oct 2007). Though the contribution of capital market to GDP is still inadequate when compared to neighboring countries but still its increase is significant for the development of our economy. Comparison of indices and market cap among different countries is shown in Table 2 and Figure 2 in the discussion part. Entry of 12 new issues worth Tk 11,322.95 million helped raise the market cap. Some of the reason for the progress in capital market development is central depository system and the automated trading system (ADB, 2006; SEC, 2005). The DSE has upgraded its automated online trading system and investors are able to trade from different parts of the country (SEC Quarterly Report, April-June 2007; ADB, 2006). Another reason for the vigorous improvement of the equity capital market is due to strenuous efforts taken by the SEC that further boosted investors’ confidence (DSE, 2007). 7.0 Research Methodology 7.1 Research Design The present study endeavored to explore importance of capital market for the economic development of Bangladesh and its future prospects. Exploratory research is selected as research design as little information exists about the capital market of Bangladesh. The aim of exploratory research is mainly to gain enough information before doing more thorough research. We basically start by gathering as much information about the object as possible and with a vague impression of what we should study (Cooper Schindler, 2003). 7.2 Research Instrument The research was conducted using both primary and secondary data. For collecting secondary data, various books, websites, newspapers, annual reports, monthly reviews and significant articles were chosen. Also for collection of primary data in-depth interviews with a range of designated professional, related to this field, were taken. 7.3 Data Collection Secondary data used in the paper has been collected through access of different source of books, journals, publications of DSE, SEC, ADB and other news paper and articles. The DSE and SEC library were visited to acquire secondary information. Various websites were browsed to collect relevant articles that are circulated on online sites. For collecting primary data, in-depth interviews of experienced people related to this field of capital market were taken. Appointments were fixed initially and then the interviews were taken. The interviewed persons are Kh. Asadul Islam, CEO, IDLC Securities Limited (IDLCSL); Anwarul Kabir Bhuiyan, SEC, Executive Director; Tania Sharmin, SEC, Assistance Director (Surveillance); Abul Ehsan, Senior Officer, IDLC Finance Limited; Moumita Manzoor, Research Associate, IDLCSL. Each of them was interviewed for 40 minutes approximately during the office hour while taking break from work. They were asked some essential questions associated to this research topic. Some of the questions that were asked are as follows- What is the role of capital market in the economy? What are the setbacks of the stock market in Bangladesh? Explain the current scenario of the capital market What are the prospective sign of the development of the capital market? How can we be sure of a sound growth of capital market in Bangladesh? Do you see a better or worse scenario ahead of us and why? 8.0 Discussion 8.1 Role of Capital Market in the Economy According to Dr. Mirza Azizul Islam (2006) capital market can play an essential role in enhancing economic development through efficient intermediation of savings into productive investments and in encouraging the expansion of private entrepreneurship (DSE, 2006). The primary market can contribute to the growth of private entrepreneurship by facilitating the entrepreneurs to raise funds from surplus savers and consequently finance investment in a cost-effective manner. For instance, if an industrialist with a viable new investment or expansion proposal is unable to execute his plan due to financial crisis then he can issue securities to meet the required deficit. Moreover issuing shares have the additional advantage that they do not create fixed charges for the companies issuing them and hence endows a better option than, say, financing through bank loans. A proficient and vibrant secondary market can also contribute copiously to economic growth. If a company, for instance, is well-managed and the secondary market prices are higher than face value, subsequent rights issue can obtain premium. Therefore the company can finance its development plan in lucrative and cost-effective approach. So the capital market not only provides opportunity for companies to borrow funds needed for long term investment purposes but also provides avenue for the marketing of shares and other securities in order to raise fresh funds for expansion of operations, leading to increase in output or productivity. The equity market offers opportunity for government to finance projects aimed at providing essential amenities for socio-economic development. Such market encourages inflow of foreign capital when foreign companies or investors invest in domestic securities. The securities market can help attain higher productivity by restructuring of ownership and management of the company as secondary market provides an exit option for the original founders and it also creates an avenue for the populace to participate in the corporate sector of the economy and share in its wealth through ownership of securities. So it not only reduces the over-reliance of the corporate sector on short term finance for long term projects but truly makes available the needed money for venture capital development which could serve as a vehicle for industrial development. So through its allocating mechanism, the capital market ensures an efficient and effective distribution of scarce financial resources for the optimal benefit to the economy. 8.2 Major Setbacks of the Capital Market Investment in capital market is limited to a small proportion of the population. Investors’ confidence in the capital market has not entirely recovered since the stock market crash in 1996. Share market debacle in 1996 was mainly the result of market manipulation by a section of stockbrokers in collaboration with some other market participants (SEC, 1997). Some of the other notable reasons behind the stock market crash includes insider-trading and off-loading of shares by directors of the company, absence of circuit breaker in the securities market, disclosure of unregulated rumors and sensitive information, lack of attention given by investors to the relation between stock price and company fundamentals, weak regulatory body to name a few. The diagram below shows clearly the catastrophe that took place during 1996. Figure 1 DSE General Price Index (DGEN) 1993-2007 (Source: IDLCSL) On November, 2001 the DSE introduced the benchmark price barometer DSE General Index (DGEN) with a base index of 817.62 points. The index excludes companies of Z category and is calculated on the basis of price movement of individual stocks. Figure 1 displays the monthly DSE general index from the year January 1993 to November 2007, the latest month for which the data was available. From the diagram we can tell that the market behaved irrationally during the year 1996. The DSE all share price index rose from 832 in 1 January 1996 to 3567 in 14 November of the same year, i.e. DGEN rose from 1106 to 4738.83. This conspicuous rise in DSI was followed by a drastic fall to 2261.47 points in the last week of December 1996 and again to 1140.65 points on April 1997. The market was dreary for a long period of time after the 1996 collapse but between July 20003 and June 2005, DGEN more than doubled from 823 to 1727. It appears that the index is performing modestly in the current year followed by an uptrend as it shows an increase in the index from 1527.29 in November 2006 to 3011.60 in November 2007, reaching its pinnacle after 1996. The devastating history of 96 crashes still persists in the mind of potential investors but without mass participation the market cannot sustain in the long-run. Also it needs to bring back the foreign investors that fled in the 1996 debacle. Inflows of foreign direct investment need to be restored to stabilize the economy. From the statistical data below in Table 1 it can be observed that foreign investors are least attracted to the securities market of Bangladesh. There were significant foreign investment inflows into equities in the year 1994 amounting to $ 106 million but by the mid 1997, most of the foreign portfolio investors had divested holdings and have not since returned. The following table contains the key capital market indicators reflecting that the pace of primary market development had been fluctuating and the market’s contribution to resource mobilization of the economy remains below potential and the secondary market remained stagnant during 1997-2003 but showed some sign of recovery in 2004. Overall, investor confidence has not yet fully recovered. Table 1 Capital Market Indicators- Dhaka Stock Exchange Item 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 No of Listed Companies 143 157 183 186 202 208 213 223 231 242 248 337 Market Cap In taka (mn) 18099 41771 56518 168106 71302 50254 44789 62932 63777 71269 97587 224923 In $ (mn) 455 1038 1409 3960 1569 1036 881 1169 1119 1229 1685 3709 Market Cap as % of GDP 1.44 3.08 3.71 10.11 3.95 2.51 2.04 2.65 2.52 2.61 3.25 6.76 Significance of Capital Market for Economic Development Significance of Capital Market for Economic Development An Explotary Study On The Significance of Capital Market for Economic Development and Its Further Growth Potential In Context of Bangladesh Abstract This research paper investigates whether the role of capital market is significant for the economic development of Bangladesh. Literature suggests that well developed stock market can provide an extra impetus to economic activity. Similar conclusions were also drawn from the in-depth interviews. This paper also reveals a well-scanned scenario of the capital market highlighting its setbacks, current weakness, recent improvements and its prospective signs of development through which we can foresee whether the capital market has further growth potential or not. Thus the present study can also contribute in providing essential information that can also be used for further research. Abbreviations ADB- Asian Development Bank CDBL- Central Depository of Bangladesh Limited CDS- Central Depository System CSE- Chittagong Stock Exchange DGEN- DSE general index DSE- Dhaka Stock Exchange GDP- gross domestic product IPO- initial public offering SEC- Security and Exchange Commission 1.0 Introduction The financial market contributes to the economic growth and development by providing the needed finance for provision of goods and services. The financial market consists of two division- money market and capital market. The money market is basically entitled to supply finance on short-term basis to individuals, businesses, enterprises, government and their agencies. The capital market, on the other hand, provides finance on medium to long-term basis to corporate bodies, government and their agencies (Al-Faki, 2006). Capital Market plays a crucial role in any modern economy as they allow investors’ fund to flow to the most promising opportunities, i.e., the funds are mobilized and channeled efficiently from savers to the users of funds (Al-Faki, 2006; DSE, 2006; Hubbard and Thornton, 2006; Ahmed, 1997). In Bangladesh financial intermediation relies mostly on the banking sector which further resulted in lack of equity financing (Salahuddin Ahmed, 2007; Islam and Hassan 2002). Furthermore out of 5 million urban-based middle class people only four hundred thousand are participating in the securities market and among them roughly hundred thousand are active investors. A large portion is still ignorant of the nature and benefits of the capital market (Abu Ahmed, 2006; DSE Review, 2006; Islam and Hassan, 2002). Developing more complete and deeper capital market would enhance a countries growth potential and innovation (Andritzky, 2007). The forces of globalization, technology, new forms of competition have noticeably transformed capital market worldwide (Hassan, 2004). The chief advisor Dr. Fakhruddin Ahmed stated that â€Å"Only a vibrant and well-regulated capital market can bring sustainable economic development in the country through making the real sector capable of meeting the challenges of the competitive global economic realities† ( DSE Monthly Review, June 2007). Regardless of recent improvements, Bangladesh’s capital market remains underdeveloped as its size is still very small in terms of market cap (ADB, 2006; Salahuddin Ahmed, 2007; Islam and Hassan 2002). The market cap represents just above 9% of the GDP (Dr. Fakhruddin Ahmed retrieved from DSE Review). As Bangladesh capital market is still quite small compared to other regional market and to the size of its economy (CSE, 2006) despite its existence for a long time, this paper applies a framework for analyzing the significance of capital market for economic growth and development of Bangladesh, identifying its growth potentials through exploration. 2.0 Problem Statement Bangladesh’s capital market is still underdeveloped, in spite of recent improvements. The size of the country’s capital market is quite small mainly due to the excessive dependence of leading corporate entities on the banks for financing. Moreover the overall transparency of market transaction is also low compared to international standards and generally there has been slow development of the underlying market infrastructure. The government is making effort to develop the reliability and efficiency of stock exchanges as investment market. Compared to the other neighboring countries the numbers of participants are much smaller in Bangladesh as investor lack confidence. There is a supply side constrains in the capital market as quality shares are lacking. For all this reason this research is done to explore the importance of capital market in the economy and what are the prospective sign of development of the stock market. 3.0 Purpose of the Study The purpose of the study is to explore a well scanned scenario of Bangladesh capital market, its significance and its prospects. Although some research has been conducted relating to this topic but there is little empirical evidence about how essential stock market is to economic development of a country. A sound capital market prompts better economic base and influence its future growth and so it can help realize Bangladesh’s growth potential. The capital market of Bangladesh is on the brink to play its due role as a medium for financing investment and thereby making a notable contribution to economic growth, employment creation and poverty alleviation. The capital market plays an important role in quickening the pace of economic development but the existing state of the capital market is under-developed and not in a position to ensure economic progress of the country. Hence this research will try to highlight the significance of capital market for the nation and explore what are the probable signs of progress. 4.0 Research Timeline 2007 SeptemberWriting Research Proposal 2007 SeptemberDeveloping Literature Review 2007 OctoberCollecting Data 2007 October- NovemberData Analysis and Interpretation of the Findings 2007 NovemberPreparing Draft and Finalizing the Research Paper 2007 DecemberSubmission of Research Paper 5.0 Limitations of the study During conducting the research I came across certain limitations and among them the foremost one is time constrain. Although I got the opportunity to work in an organization that is capital market based but it was difficult to find spare time that could be used for the report. Moreover the interviewed person could not provide all necessary information due to lack of time. The research timeline also reveals that time constrain was actually a barrier as there was plenty to find about this research topic. As the research is conducted for the first time, I did not get much support from previous research paper and further research is suggested. A huge portion of the report is based on secondary data collected through websites and so the depth of reliability varies as by the nature of website. 6.0 Review of the Literature 6.1 Financial Intermediation According to Joseph Yam (2004) financial intermediation is channeling savings into investments. Aziz and Duenwald (2002) referred that financial intermediation affects growth through the following channels – (i) it can increase the marginal productivity of capital by collecting information to evaluate alternative investment projects and by risk sharing (ii) it can raise the proportion of savings channeled to investment through financial development. According to Conning and Kevane (2002) â€Å"intermediation implies an intermediary†. Gorton and Winton (2002) added that â€Å"it is the root institution in the saving investment process†. They referred that financial intermediaries are firms that borrow from those who have excess money, that is, the savers and lend the money to companies that need resources for investment. 6.2 Performance Indicators According to R. N. Agarwal (2000) the most commonly used standard to measure the size of a country’s stock market is market capitalization ratio, that is, the ratio of market value of stocks which are currently listed on a bourse to Gross Domestic Product (GDP). A small ratio of capitalization to GDP reveals the small size of a stock market. Alternatively, the size can be measured by the number of listed companies on a stock market. The height of maturity of an economy’s financial system is essential for economic development. Bekeart et al., (2007), Hubard and Thornton (2006), Rosul (2002) all investigated the significance and relation of stock market development with the economic growth and their conclusion suggests that capital market development is positively correlated with long term economic growth and the capital market plays an important role in the economic development of any country. The size of the equity capital market has an optimistic effect on economic growth of the country, that is, much higher market cap and turnover has a major positive influence on the economy (Institute for Advanced Studies, IHS, 2006). It is seen that the ratio of market cap to GDP in neighboring countries like India, Pakistan and Sri Lanka is relatively much higher, that is, more than 60% of their GDP (DSE, Kh. Asadul Islam, 2007; Dr. Fakhruddin Ahmed,2007). In Bangladesh the market cap is very small proportion of the countries GDP (Islam Hassan, 2002) and this is due to significant dependence on the banking sector (DSE Review, Fakhruddin Ahmed, June 2007). Market capitalization as a share of GDP was around 2.5%-3.3% during 2001-2003 compared with 1.4-10.1% during 1993-1996 and 2- 4% during 1997-2000. However in the year 2004 market cap reached 6.8% reflecting the rise in the DSE index from 968 to 1,971 at the end of 2003 and 2004 respectively (ADB, May 2005). The trend of market cap as percentage of GDP and other capital market indicators of DSE and CSE are shown through the help of statistical data represented in the discussion section in Table 1. Despite the existence of the bourse from 1954, the capital market still exhibits features of an emerging equity market (Islam Hassan, 2002). The finance sector is immensely bank-based (Salahuddin Ahmed, 2007) as resource mobilization for industrialization and economic development is made primarily through the regular banking system (Islam Hassan, 2002). Borrowing requires fixed payments and over-reliance on banks can cause credit default risk. According to (Mochammad Rosul, 2002) excessive reliance on bank borrowing results in a mismatch with long-term investments being financed with short-term bank loans. He added that such a risky situation can further contribute to the economic crisis and so the job of the principal fund supplier for business should be transferred from banking sector to the capital sector. 6.3 Regulatory Bodies 6.3.1. The Security and Exchange Commission (SEC) The Security and Exchange Commission (SEC) exercises power under the Security and Exchange Commission Act 1993 and established on June 8, 1993. SEC, the sole Capital Market Watchdog and Regulator, has been pursuing a vigorous capital market development process including amendments of its existing regulations, conduction of investor awareness programs, rigid monitoring and surveillance to bring in transparency in the trading mechanism (SEC, Annual Report 2003 -04). The responsibility of SEC includes the following: Regulating the functions of Stock Exchanges Registering and regulating the business of stock brokers, sub broker, share transfer agents, underwriters, registrar, portfolio managers, investment advisors, and other middlemen related to security dealings. Registering, controlling, and monitoring of all types of mutual funds Controlling and monitoring of all authorized self regulatory organizations Prohibiting fraudulent and unfair practices related to securities Promoting investor’s education program and providing training of intermediaries Regulating substantial acquisition of shares and takeover of companies SEC are detects market manipulation and also keeps constant vigil on the activities of stock exchanges to ensure effectiveness of the surveillance system. Conducts research and publishes information for above purposes (Source: Security Exchange Commission Website: www.secbd.com) 6.3.2 Stock Exchanges 6.3.2.1 Dhaka Stock Exchange (DSE) On April 28, 1954 DSE was first incorporated as the East Pakistan Stock Exchange Association Limited. Formal trading began in 1956 with 196 securities listed on the DSE with a total paid up capital of about Taka 4 billion. On June 23, 1962 it was renamed as Dhaka Stock Exchange (DSE) Limited. After 1971, the trading activities of the prime bourse remained suppresses until 1976 due to liberation war and economic policy pursued by the then government. Trading resumed at DSE in 1976 with only 9 companies listed having a paid up of Taka 137.52 million (Bashar et al., 2000; M Farid Ahmed, 1997). As of today there are 342 listed companies in the prime bourse with market cap exceeding 700,000 million (DSE, 2007). The reforms that DSE undertook recently for ensuring professionalism and transparency focused on the trading of securities. The measure were taken to implement transparent trading system, efficient reporting of trade, real time delivery of information, strong surveillance and monitoring over trade of securities and settlement of shares (Rahman,Uddin and Malik, 2006). 6.3.2.2 The Chittagong Stock Exchange Limited (CSE) The CSE is the countries second bourse that started its operation from the year 1995. It is also a self-regulatory non profit organization. Currently the numbers of listed securities are 223 of which the number of listed companies are 208, mutual funds 14, and one debenture. 6.4 Recent Capital Market Scenario of Bangladesh According to Dr Fakhruddin Ahmed (DSE, 2007) political uncertainty, corruption and lack of transparency in all section of the social and economic fabric are some of the reasons for capital market deficiency. Bangladesh Governor Salehuddin Ahmed (2007) reveals that foremost problems include political instability, under developed infrastructure, poor port management, short comings in legal system and corruption (Financial Express Report). On the other hand DSE general share price index reached its pinnacle and crossed 3000 points (Newage: www.newagebd.com). In fact the capital market witnessed a robust growth in the current year. Both turnover and market cap crossed new milestones at Tk 3000 million and Tk 700,000 million respectively during the year (DSE, 2006; DSE, 2007, IDLCSL). Recently our market cap crossed USD 10 billion that accounts for only 13% of its GDP which was only 8% a year back. (DSE Monthly Review, Oct 2007). Though the contribution of capital market to GDP is still inadequate when compared to neighboring countries but still its increase is significant for the development of our economy. Comparison of indices and market cap among different countries is shown in Table 2 and Figure 2 in the discussion part. Entry of 12 new issues worth Tk 11,322.95 million helped raise the market cap. Some of the reason for the progress in capital market development is central depository system and the automated trading system (ADB, 2006; SEC, 2005). The DSE has upgraded its automated online trading system and investors are able to trade from different parts of the country (SEC Quarterly Report, April-June 2007; ADB, 2006). Another reason for the vigorous improvement of the equity capital market is due to strenuous efforts taken by the SEC that further boosted investors’ confidence (DSE, 2007). 7.0 Research Methodology 7.1 Research Design The present study endeavored to explore importance of capital market for the economic development of Bangladesh and its future prospects. Exploratory research is selected as research design as little information exists about the capital market of Bangladesh. The aim of exploratory research is mainly to gain enough information before doing more thorough research. We basically start by gathering as much information about the object as possible and with a vague impression of what we should study (Cooper Schindler, 2003). 7.2 Research Instrument The research was conducted using both primary and secondary data. For collecting secondary data, various books, websites, newspapers, annual reports, monthly reviews and significant articles were chosen. Also for collection of primary data in-depth interviews with a range of designated professional, related to this field, were taken. 7.3 Data Collection Secondary data used in the paper has been collected through access of different source of books, journals, publications of DSE, SEC, ADB and other news paper and articles. The DSE and SEC library were visited to acquire secondary information. Various websites were browsed to collect relevant articles that are circulated on online sites. For collecting primary data, in-depth interviews of experienced people related to this field of capital market were taken. Appointments were fixed initially and then the interviews were taken. The interviewed persons are Kh. Asadul Islam, CEO, IDLC Securities Limited (IDLCSL); Anwarul Kabir Bhuiyan, SEC, Executive Director; Tania Sharmin, SEC, Assistance Director (Surveillance); Abul Ehsan, Senior Officer, IDLC Finance Limited; Moumita Manzoor, Research Associate, IDLCSL. Each of them was interviewed for 40 minutes approximately during the office hour while taking break from work. They were asked some essential questions associated to this research topic. Some of the questions that were asked are as follows- What is the role of capital market in the economy? What are the setbacks of the stock market in Bangladesh? Explain the current scenario of the capital market What are the prospective sign of the development of the capital market? How can we be sure of a sound growth of capital market in Bangladesh? Do you see a better or worse scenario ahead of us and why? 8.0 Discussion 8.1 Role of Capital Market in the Economy According to Dr. Mirza Azizul Islam (2006) capital market can play an essential role in enhancing economic development through efficient intermediation of savings into productive investments and in encouraging the expansion of private entrepreneurship (DSE, 2006). The primary market can contribute to the growth of private entrepreneurship by facilitating the entrepreneurs to raise funds from surplus savers and consequently finance investment in a cost-effective manner. For instance, if an industrialist with a viable new investment or expansion proposal is unable to execute his plan due to financial crisis then he can issue securities to meet the required deficit. Moreover issuing shares have the additional advantage that they do not create fixed charges for the companies issuing them and hence endows a better option than, say, financing through bank loans. A proficient and vibrant secondary market can also contribute copiously to economic growth. If a company, for instance, is well-managed and the secondary market prices are higher than face value, subsequent rights issue can obtain premium. Therefore the company can finance its development plan in lucrative and cost-effective approach. So the capital market not only provides opportunity for companies to borrow funds needed for long term investment purposes but also provides avenue for the marketing of shares and other securities in order to raise fresh funds for expansion of operations, leading to increase in output or productivity. The equity market offers opportunity for government to finance projects aimed at providing essential amenities for socio-economic development. Such market encourages inflow of foreign capital when foreign companies or investors invest in domestic securities. The securities market can help attain higher productivity by restructuring of ownership and management of the company as secondary market provides an exit option for the original founders and it also creates an avenue for the populace to participate in the corporate sector of the economy and share in its wealth through ownership of securities. So it not only reduces the over-reliance of the corporate sector on short term finance for long term projects but truly makes available the needed money for venture capital development which could serve as a vehicle for industrial development. So through its allocating mechanism, the capital market ensures an efficient and effective distribution of scarce financial resources for the optimal benefit to the economy. 8.2 Major Setbacks of the Capital Market Investment in capital market is limited to a small proportion of the population. Investors’ confidence in the capital market has not entirely recovered since the stock market crash in 1996. Share market debacle in 1996 was mainly the result of market manipulation by a section of stockbrokers in collaboration with some other market participants (SEC, 1997). Some of the other notable reasons behind the stock market crash includes insider-trading and off-loading of shares by directors of the company, absence of circuit breaker in the securities market, disclosure of unregulated rumors and sensitive information, lack of attention given by investors to the relation between stock price and company fundamentals, weak regulatory body to name a few. The diagram below shows clearly the catastrophe that took place during 1996. Figure 1 DSE General Price Index (DGEN) 1993-2007 (Source: IDLCSL) On November, 2001 the DSE introduced the benchmark price barometer DSE General Index (DGEN) with a base index of 817.62 points. The index excludes companies of Z category and is calculated on the basis of price movement of individual stocks. Figure 1 displays the monthly DSE general index from the year January 1993 to November 2007, the latest month for which the data was available. From the diagram we can tell that the market behaved irrationally during the year 1996. The DSE all share price index rose from 832 in 1 January 1996 to 3567 in 14 November of the same year, i.e. DGEN rose from 1106 to 4738.83. This conspicuous rise in DSI was followed by a drastic fall to 2261.47 points in the last week of December 1996 and again to 1140.65 points on April 1997. The market was dreary for a long period of time after the 1996 collapse but between July 20003 and June 2005, DGEN more than doubled from 823 to 1727. It appears that the index is performing modestly in the current year followed by an uptrend as it shows an increase in the index from 1527.29 in November 2006 to 3011.60 in November 2007, reaching its pinnacle after 1996. The devastating history of 96 crashes still persists in the mind of potential investors but without mass participation the market cannot sustain in the long-run. Also it needs to bring back the foreign investors that fled in the 1996 debacle. Inflows of foreign direct investment need to be restored to stabilize the economy. From the statistical data below in Table 1 it can be observed that foreign investors are least attracted to the securities market of Bangladesh. There were significant foreign investment inflows into equities in the year 1994 amounting to $ 106 million but by the mid 1997, most of the foreign portfolio investors had divested holdings and have not since returned. The following table contains the key capital market indicators reflecting that the pace of primary market development had been fluctuating and the market’s contribution to resource mobilization of the economy remains below potential and the secondary market remained stagnant during 1997-2003 but showed some sign of recovery in 2004. Overall, investor confidence has not yet fully recovered. Table 1 Capital Market Indicators- Dhaka Stock Exchange Item 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 No of Listed Companies 143 157 183 186 202 208 213 223 231 242 248 337 Market Cap In taka (mn) 18099 41771 56518 168106 71302 50254 44789 62932 63777 71269 97587 224923 In $ (mn) 455 1038 1409 3960 1569 1036 881 1169 1119 1229 1685 3709 Market Cap as % of GDP 1.44 3.08 3.71 10.11 3.95 2.51 2.04 2.65 2.52 2.61 3.25 6.76

Living in the City vs. Living in the Country :: Compare Contrast City Country Essays

Living in the City vs. Living in the Country   Ã‚  Ã‚  Ã‚  Ã‚  The age-old question has plagued many, â€Å"Should I live in a city or should I live in the country?†. There are many advantages and disadvantages to choosing a lifestyle in either setting, and careful examination of all aspects is needed to make the perfect decision for you.   Ã‚  Ã‚  Ã‚  Ã‚  One major issue affecting many people trying to make the decision on where to live is their quality of life in either extreme. Health, education, transportation are three major concerns that many consider. In a city, pollution surrounds you wherever you step whether on the streets of a busy financial district or on the lawn of a large park. Pollution could possibly cause health problems later in life. In the country, pollution is scarce. Fresh air, rolling green hills, a few pieces of litter here and there but pretty much everything is clean, and wow! No smog, you can see the stars! In the country, childhood education, kindergarten through twelfth grade, is significantly better than in a large city; smaller class sizes and larger budgets create excellent learning environments. In cities, public schools are often plagued with very large classes packed into small spaces. Teachers with low pay, and little or no dedication are thrown into classrooms to teach, resultin g in poor education. Transportation is very accessible in city environments. Public transportation, by way of subways, busses and ferries, are cheap and easy ways of getting around a metropolis, whether going out to work, school, or for a night on the town. In the country, everyone needs to have access to his or her own vehicle. A commute to work or school is about an average of forty-five minutes!   Ã‚  Ã‚  Ã‚  Ã‚  Cash flow is very important when choosing a living environment. Living in the city can easily be more expensive, if you do not know where to look. But it can also be very competitive with that of your spending in the country. Apartments can be very affordable in a rent-controlled neighborhood, and are much more feasible for families, or students just starting out on their own; whereas, in the country, you may have to buy a home or hard to find cheap rentals. Transportation costs, groceries, taxes, and utilities are common expenditures for any adult. But, many may find that a large amount of money can be saved on these living expenses in a city.

Important Formative Experience That Made Me The Adult I Am Today :: essays research papers

Important Formative Experience I have had many theater-related experiences. Every chapter that I have read in my theater book has allowed me to make a connection to my past experiences with theater performances. I have also seen many plays and could relate to things an audience sees by reading the book. My first theater experience ever is when I was in the Nutcracker. We did a ballet performance for this play. I was very young when I did this, but I remember my instructor always saying that we must make contact with our audience through movements. Since in ballet you can not talk, you have to express the emotions that you are feeling to the audience through movement. This was very difficult. I must say that acting with words is a lot easier than acting through dance. In chapter one of my theater book, I was able to make the connection of "theater" is "work" to my experience of work in a theater with school plays. I know that I did not work as hard as professionals do, but I did work hard. For three months, we practiced everyday except for Saturday and Sunday, from 3:30 to 6:30. I helped with a lot of the choreography, so that made my days even longer and harder. However, this was also an enjoyable work experience for me. While reading the passage, I was able to relate with some of the "theater times" because of my play director. My high school director was very talented in directing plays. He would talk to us as if we were professionals and made us put more into what we were doing. That would be impersonation. When the passage talked about art, I thought of my art teacher who would always design all of the sets and made them look so lifelike. When the passage said that there are more behind the stage workers than on stage workers, I knew that that is very true. We had the front and backlighting, the designing people, who cleared the sets and put on new ones, the directing and the building crews. I was able to relate most of the passage through my own past experiences. Chapter 3 talks about "the actor". I found this chapter very interesting. I found out that actors had to go to college too. I also found it compelling to learn that in the passage on page 76, under the picture, it talks about how playing "ordinary people" in a realistic play is often the biggest challenge for an actor.

Macbeth...Tragic Hero? Essays -- essays research papers

Macbeth is a butcher.† Discuss this statement exploring the ideas of Macbeth as a tragic hero and that the murder may or may not be entirely his fault. In your answer consider the role of the witches, Lady Macbeth, Macbeth’s indecision and his fatal flaw, ambition. You must support your answer with specific reference to and quotes from the play. The play, â€Å"Macbeth† by Shakespeare is entirely focused on the main character, Macbeth. In this play there are many complex themes and symbols that ties in with Macbeth’s character. One particular debate is on whether Macbeth’s a tragic hero or a â€Å"butcher†. This is a particularly difficult topic to discuss as Macbeth’s character constantly fluctuates as the play progresses. Despite many actions taken by Macbeth are seen as tyrannical and evil, he is nevertheless a typical Shakespearean hero. He is courageous, sympathetic, trapped by his own imagination and guilt, has a weakness that leads to his downfall and is driven by forces beyond his control. Macbeth embodies all the characteristics of a tragic hero. At the beginning of the play, Macbeth is seen as a â€Å"brave†, â€Å"noble† and â€Å"valiant† man. He was described as â€Å"Bellona’s bridegroom† (ACT 1 SCENE 2) He fought hard in the battle for Duncan and has earned many people’s respect. He was seen as a hero. Later on, he meets the three witches who hail Macbeth as the â€Å"Thane of Glamis† whom he is at the present, â€Å"Thane of Cawdor† and â€Å"who shall be king thereafter† (ACT 1 SCENE 3). Macbet...

Education has undergone a paradigm shift

Education has undergone a paradigm displacement in recent old ages with accent traveling towards larning instead than learning. Learning is no longer regarded as a unidirectional procedure of cognition transferral/distribution, but instead is considered a transformational procedure in which scholars get facts, theories and rules as conceptual tools for problem-solving and concluding within meaningful contexts. Distance acquisition ( DL ) has non been immune to this displacement and the technological developments of recent decennaries has hastened the rate of alteration. Distance acquisition is defined by the separation of scholar and instructor in infinite and/or clip ( Teaster and Blieszner, 1999 ) and Keegan ( 1995 ) considers that it consequences from the technological separation of scholar and instructor which removes the necessity of â€Å" going to a fixed topographic point†¦ at a fixed clip†¦ to run into a fixed individual†¦ in order to be trained or educated à ¢â‚¬  ( p.7 ) . Although distance acquisition might be thought of as a comparatively new term, it has existed in assorted signifiers for over a hundred old ages, get downing life through correspondence classs and go oning in this manner until being superseded by instructional telecasting and wireless in the mid twentieth century ( Imel, 1996 ) . While it is acknowledged that DL continues to take topographic point through diverse media, and that on-line bringing is merely one of these methods, the groundswell in synergistic engineerings in recent old ages has concomitantly fostered the development of new methodological analysiss which engender ( societal ) constructivist attacks, and it is the issues which surround these developments, and in peculiar some of the ways in which constructivist ideals can be realised in DL that will be the focal point of this assignment. One of the salient characteristics of DL is that it enables larning to be clip and topographic point independent, big scholars are able to set up larning around their mundane modus operandis without being constrained. In the age of IT a diverse scope of instruction ( and other ) engineerings exist to ease distance instruction where teacher and scholar are spatially separated and on-line media are used to cross the educational spread. As engineering has advanced, so the definition of DL has changed, videotaped talks were the standard signifier of bringing in university/professional DL classs in the 1980s and 1990s ( Moore and Lockee, 1998 ) and this theoretical account of spacial and temporal separation continued until the Internet, electronic mail and compressed picture moved DL into new waies and allowed it to happen in real-time. Ongoing technological developments: confab suites, wikis, treatment boards, weblogs and videoconferencing have continued to cut down the distance in DL as societal media engineerings have enabled an addition in engagement through coaction. The usage of Web 2.0 tools has accelerated the acceptance of two-way, synchronal, collaborative e-learning experiences that are get downing to replace the top-down, unidirectional instructional theoretical account. These alterations have led many observers to propose that DL requires a new, qualitatively different teaching method built upon this emerging relationship between te achers and scholars. Pedagogical considerations must recognize that the practical schoolroom possesses a typical social-interaction context and that, although engineerings may be considered transformative, they can non, of themselves, transform the acquisition experience and pedagogues must understand that â€Å" distance instruction is truly about making a different sort of construction for acquisition and instruction, non the usage of engineering † ( Kearsley 1998, no page no. ) . Petraglia ( 1998 ) has suggested that educational engineers may hold misunderstood the challenges which are posed within the DL scene by â€Å" the effort to do learning stuffs and environments correspond to the existent universe prior to the scholar ‘s interaction with them † ( p.53 ) . These efforts at pre-authentication hazard sabotaging the epistemic dimension of constructivism since the pedagogue pre-determines what reliable acquisition is, and this may be in struggle with the scholar ‘s ain perceptual experience of what is reliable for them. This effort at contextualising larning bounds constructivism ‘s application since â€Å" we need to convert scholars of a jobs genuineness instead than advance environments that deliver pre- authenticated jobs † ( Ibid. , p.13 ) . Knowles, Holton and Swanson ( 1998, p.23 ) have criticised ‘chain-like ‘ sequencing of larning events as being elemental instead than holistic, and yet some online acquisition theoretical accounts still use ‘chain-like ‘ sequencing which fail to integrate constructivist elements or take advantage of grownup larning theories to heighten the acquisition environment. Since DL operates in a different environment from the traditional schoolroom, distance pedagogues must utilize typical perceptual experiences and techniques to guarantee success, and some educationists ( Moller, 1998 ; Petraglia, 1998 ; Jonassen, Davidson, Collins, Campbell and Haag, 1995 ) have proposed that constructivism is most relevant to this context. Furthermore, grownup scholars have peculiar demands and demands compared with striplings and kids, hence, distance pedagogues must cognize how adults might larn best because of their peculiar demands. Therefore, this assignment will try to analyze the impact that constructivism has in the distance acquisition environment when focussed upon grownup scholars, and the ways in which new engineerings are back uping the development of constructivist and societal constructivism ideals within this environment. From behaviorism to constructivism Conventional instruction has normally relied upon an objectivist epistemology, this position presumes that cognition can be transferred from coach to student via direction and pattern, and that ‘true world ‘ can be discovered by the amassing of facts ( Kelly, 1970 ) . Teaching underpinned by this doctrine discourages diverse apprehensions and positions, disregards the different contexts/experiences of the person, and considers pupils to be the inactive receiving systems of cognition. Although the didactic, information-giving technique may be appropriate for some acquisition manners and in some contexts, its continuance as a dominant teaching method has stifled acknowledgment of diverse acquisition penchants. In this context accent is placed on teacher-control and student-compliance, in contrast, an recognition that adult scholars bring their ain peculiar larning features to any learning state of affairs leads effectual pedagogues to recognize these features when planning and presenting acquisition. DL has a different scene from the traditional schoolroom ensuing non merely from the spacial separation of instructor and scholar, but besides from the differences in instructional design ( Moore, 1991 ) . Since DL can non ease face-to-face interaction in the same manner that the conventional schoolroom does, and as Moore ( Ibid. ) has noted, group or single interaction is influenced by the educational doctrine in usage, assorted research workers ( McHenry and Bozik, 1995 ; McDonald and Gibson, 1998 ; Comeaux, 1995 ) have focussed upon the survey of interaction in DL. Constructivists ( e.g. , Dewey, 1916 ; Bruner, 1966 ; and Vygotsky, 1978 ) see cognition as socially constructed through scholar ‘s interaction with others. However, Knowle ‘s ( 1970 ) grownup larning theory ( andragogy ) might be viewed as conflicting with the ideals of collaborative larning due to its focal point on learner-centred direction and single acquisition aims and penchants. Collaborative teamwork is likely to be regarded every bit antithetical to these ideals unless the grownup scholar can see positive benefits from engagement. The theories relevant to this country will now be considered. Constructivist and Adult Learning Theory reviewed. Constructivism In recent old ages educational discourse has challenged the objectivist position, with an increasing apprehension that there are many ways of understanding world. Whilst constructivist authors have described assorted signifiers of constructivism, all recognise the active function which the scholar plays in construing the universe ( Larochelle and Bednarz, 1998 ) . Constructivism contests objectivism ‘s position that cognition reflects ontological world ( Ibid. ) , and alternatively proposes that our buildings and universe positions are non stable, but instead are in a province of flux as we build upon old experiences. These alterations signify acquisition, and back up the apprehension that we are ne'er inert, but alternatively are ever larning and interacting ( Kelly, 1970 ) . The Hagiographas of Dewey ( 1916 ) , Vygotsky ( 1965 ) , Bruner ( 1966 ) and Piaget ( 1926 ) have all proposed that pupils learn actively and organize new apprehensions based upon anterior cognition, and these positions view the function of the teacher altering from â€Å" a sage to a usher † ( Mason, 1998, p.4 ) . Dewey ( 1916 ) believed that larning state of affairss represent the experience ( s ) of the environment which affect the scholar, and that interaction occurs between the scholar and the environment. Therefore cognition is predicated upon active experience. Both Dewy and Piaget considered that pedagogues have a function to play both in determining the pupil ‘s experience from the environment, and understanding which milieus are likely to breed experiences that will take to growing. Dewey ( 1916 ) believed that instruction ‘s chief map was to develop the logical thinking procedure, and that jobs to be studied should be drawn from the scholar ‘s ain involvements. He viewed it as indispensable, hence, that â€Å" there be a uninterrupted activity in which he is interested for its ain interest † ( P.163 ) and that â€Å" †¦ a echt job develop within this state of affairs as a stimulation to thought † ( Ibid. ) . In this manner, constructivist methods underscore the development of the scholar ‘s ability to work out real-life jobs, and in making so ‘free-discovery ‘ and ‘problem-solving ‘ come together. As a consequence, cognition is dynamic and constructed upon the find proce dure ( Dewey, 1916 ) , and the teacher is viewed as a usher alternatively of as a manager of larning since acquisition allows for originative interaction instead than being purely outcome-based. Vygotsky ( 1965 ) moved beyond concentrating upon the person, interpreting and building significances of world, alternatively seeing single acquisition as grounded in the socio-cultural context, and symbolically mediated through language/dialogue. For Vygotsky, the scholar ‘s societal interactions, including those with instructors and other scholars, are critically of import to cognitive development, ensuing in Vygotskian theory frequently being referred to as societal constructivism. Vygotsky ‘s Zone of Proximal Development ( ZPD ) describes how engagement with another ( instructor or equal ) enables scholars to polish their thought or public presentation and do it more effectual ; this thought was taken farther by Bruner ( 1966 ) in developing the construct of scaffolding. Bruner ( Ibid. ) views instruction as a procedure of personal find, with cognitive growing happening as pupils progress through three larning phases: enactive, iconic and symbolic. In order to bring f orth apprehension, pupils must travel through the phases in turn, bring forthing new constructs and thoughts in a procedure of find acquisition, or, with the aid of another, through guided find. Knowles et Al. ( 1998 ) contend that this find should take topographic point in real-life state of affairss in order to be genuinely effectual and argue that much grownup acquisition is informal. Knowles is best known for his proposal of a theory of grownup larning which will now be reviewed. Adult larning theory Andragogy as an political orientation of constructs, thoughts and attacks for grownup instruction and acquisition was introduced by Malcolm Knowles in 1968 in acknowledgment of the different demands and motives of grownups compared with younger scholars. Conventional pedagogical theoretical accounts do non take history of these differences and so may bring forth tenseness, opposition and feelings of bitterness ( Knowles et al. , 1998 ) Six rules of grownup acquisition have been outlined: Need to cognize – grownups want to cognize why something should be learned, â€Å" what acquisition will happen, and why acquisition is of import † ( Ibid. , p.133 ) . The objectivist theoretical account assumes that pupils will larn what they are told to larn. However, grownups are used to commanding and understanding what they do, hence they want to cognize why something should be learnt and what benefit ( s ) larning will convey. Self concept – â€Å" Adults resent and resist and resist state of affairss in which they feel others are enforcing their volitions on them † ( Ibid, p.65 ) . Whilst they feel the demand for liberty, old educational experiences may hold made them dependent. It is the grownup pedagogue ‘s function to promote pupils to go self-directing, taking duty for their acquisition. Role of experience – Adult scholars are more heterogenous than immature pupils, their anterior experiences impact on acquisition, and they want to do usage of bing foundations of cognition, using them to new learning experiences. Readiness to larn – Adults are merely prepared to larn if/when their life state of affairs creates a demand to larn ( Knowles, 1970 ) . Orientation to larning – Adults favour problem-solving orientations, larning best when real-life contexts are used to show cognition. Motivation to larn – Internal precedences are more of import than external incentives, grownups are motivated to larn when the cognition can be utilised to work out jobs in their lives. Brookfield ( 1995 ) besides considered attacks to andragogy, holding with Knowles that grownups need to be autonomous and take control of their acquisition, and that this acquisition should be grounded in experiences. Additionally, Brookfield identified as of import critical refection – focusing on how adults thinks contextually and critically, and larning to larn. Brookfield ( Ibid. ) describes the instruction of grownups to larn how to larn as an â€Å" overarching intent for those pedagogues who work with grownups † ( no page no. ) Distance acquisition and ( societal ) constructivism Behaviourist educational schemes, trusting on the development of instructional sequences with results that are predetermined, have formed the footing of capable development for a figure of old ages. Constructivists are critical of this theoretical account because of its delegating of the function of the pupil to one of inactive receiver, and it reliance upon ‘drill and pattern ‘ larning activities with small attending paid to mental schemes or the significances behind them. This attack does non do allowances for negotiated shared significances, and fails to recognize the value of larning from errors made ( Williams and Burden, 1997 ) . Constructivism, in contrast to behaviorism, focuses on pupil ‘s innate efforts to do sense of the universe as the footing for the acquisition procedure, and recognises that persons use their anterior experiences in this procedure. The burden on the pedagogue displacements, hence, from being the ‘mechanic ‘ of cognition transportation, to going the ‘midwife ‘ in understanding ‘s birth ( von Glaserfield, 1996 ) with duty for making rich acquisition environments which provide the chance for meaningful experiences. In sing the function of constructivist theory in distance acquisition, Jonassen et Al. ( 1995 ) suggest four rules for constructivist environments that â€Å" engage scholars in cognition building through collaborative activities that embed larning in a meaningful context and through contemplation on what has been learned through conversation with others † ( p.5 ) . The rules propose that on-line distance larning environments should b e built with a focal point upon: Context, including a real-world component to avoid ‘chain-like ‘ sequencing ; Construction, leting active cognition building through articulation and contemplation ; Collaboration, happening amongst scholars to back up the development and rating of beliefs and hypotheses, and Conversation, for the dialogue of solutions to jobs. The acknowledgment of the importance of coaction and conversation amongst scholars as cardinal elements in the acquisition procedure is rooted in constructivism ‘s outgrowth: societal constructivism, which emphasises larning ‘s societal and collaborative nature ( Vygotsky, 1978 ) . McLoughlin and Oliver ( 1998 ) see that the constructivist position fails to to the full recognize that societal procedures, for illustration coaction, peer interaction and linguistic communication usage, have an of import impact on larning. Social constructivist believing positions cognition as constructed when scholars engage in conversation or activities about common undertakings or jobs. Meaning is constructed through a dialogic procedure and acquisition occurs as pupils are enculturated by better skilled equals ( Driver, Asoko, Leach, Mortimer and Scott, 1994 ) . Through this procedure, cultural tools are acquired via engagement in cultural activities. Wells ( 1999 ) considers that Vygotsk ian theory supports this thought of a teacher-led collaborative community in which â€Å" all participants learn with, and from, each other as they engage together in dialogic question † ( p. twelve ) . Therefore, it is possible to see larning non as the teacher-directed lone activity of making specific responses to precise cues as behaviorism suggests, nor as an independent manner of researching the universe and doing sense of the experience as Piaget proposes. Rather societal constructivism positions larning as a socially synergistic procedure in which persons make significances through interactions with others. Mediation, hence, can be seen as an indispensable component in the societal constructivist larning procedure. A go-between is another who is more knowing or experienced than the scholar ( i.e. instructor, parent or equal ) who assists the scholar in doing sense of their experiences in order to manner new apprehensions. By adding the factor of mediation to the construct of constructivism, Jonassen et Al. ( 1995 ) and Williams and Burden ( 1997 ) have proposed that four factors influence acquisition, these are: instructors, scholars, undertakings and contexts, and Williams a nd Burden ( Ibid. ) consider that â€Å" they all interact as portion of a dynamic, on-going procedure † ( P. 43 ) . In this manner, societal constructivism regards the instructor as usher or facilitator working with scholars in a collaborative group working within real-world contexts to make significance from problem-based undertakings. Constructing communities and contracting the distance The challenge for the distance pedagogue is to unite these factors into a successful acquisition environment and diverse issues of constructivism and andragogy demand to be considered. Palloff and Pratt, ( 2007 ) suggest that making successful distance instruction utilizing on-line methods will affect reassigning our best patterns from the schoolroom into a new sphere, â€Å" in this new sphere, nevertheless, the patterns may non look precisely the same † ( p.6 ) . The on-line medium obliges DL pedagogues to believe otherwise in order to use its learning-enhancing functionality and pedagogic/andragogic potencies. It poses the challenge, and presents the chance, of making a sense of community which can breed societal constructivist acquisition. Within instruction, sense of community includes larning community and societal community ( Rovai, Wighting and Lucking, 2004 ) , and community-building has been identified as a factor in cut downing or forestalling the feelings of disaffection and isolation which may lend to student abrasion in DL ( Rovai, 2002 ) . Learning community comprises of how members perceive group rank with respect to shared norms/values and to the ability to run into educational aims/expectations ( Rovai et al. , 2004 ) . Social community is representative of the feelings of community members towards their connection, coherence, safety, mutuality, common trust, and sense of belonging ( Ibid. ) . The DL pedagogue Fosters this sense of community through the creative activity of a safe environment wherein pupils do non experience threatened when showing thoughts, by advancing socialization, exposing regard for diverse backgrounds, supplying feedback which directs and keeps communicating fluxing, reacting to pu pils ‘ educational demands, and keeping an obvious online interceding presence. Brown ( 2001 ) links the grade of community experienced by scholars with the degree of battle and duologue within the category and this is a position shared by Moore ( 1993 ) who considered the dealing of distance acquisition. Transactional distance theory defines the distance in DL as more than merely the spacial disjunction of instructors and scholars, but instead as a distance of perceptual experiences and apprehensions which is partly caused by geographic separation ; this separation must be reduced if effectual acquisition is to happen. Transactional theory evolved from work by Dewey and Bentley ( 1949 ) , and â€Å" connotes the interplay among the environment, the persons and the form of behaviors in a state of affairs † ( Boyd and Apps ( 1980 ) , cited in Barbadillo, 1998, no page ordinal number ) . The DL dealing takes topographic point between scholars and instructors within an environment with the typical feature of spacial separation and the attendant array of part icular acquisition and instruction behaviors. Transactional distance is engendered by the physical separation which creates a communicational spread, or psychological infinite – an country of possible mistake between the inputs of the instructor and scholar ( Moore, 1993 ) . Moore ( 2007 ) considers that transactional distance is comparative, non absolute, and that larning programmes are non ‘distance ‘ or ‘not distance ‘ but instead they have â€Å" more distance or less distance † ( p.91 ) . Transactional development is influenced by three factors: duologue, construction and liberty ( Moore, 1993 ) . The nature and extent of duologue may be affected by diverse factors ( class design, teacher/learner personalities, capable affair, environment etc. ) , but the medium of communicating is besides an of import factor. Programs with small or no dialogic interplay have a greater transactional distance than those which foster dynamic duologue. The usage of synergistic, electronic media supports this dynamism and so help the shortening of transactional distance. Structure is evaluated by Moore ( Ibid. ) from the position of the class ‘s flexibleness or rigidness in footings of the constitution of learning techniques, educational ends, appraisal processs and the grade to which single demands are met. Finally Moore ( Ibid. ) views liberty as the extent of scholar control exercised over acquisition processs – the sum of pick the pupil has over issues of larning ends, rate of advancement, mode of instruction and assessment methods. Moore ‘s theory has obvious analogues with constructivist, societal constructivist and grownup acquisition theories, and it is evident that as andragogical and constructivist elements are introduced, transactional distance will diminish. Transactional distance and duologue are reciprocally relative, therefore a lessening in duologue will ensue in an addition in transactional distance, whilst an addition in dialogue reduces distance. Although Moore ( 1993 ) focussed upon the dialogic interplay between instructor and scholar, using constructivist attacks in combination with societal package Fosters dialogue amongst equals every bit good as between scholar and instructor in the spirit of Williams and Burden ‘s ( 1997 ) socially-constructed, dynamic procedure. Dialogue is besides relative to class construction, an addition in construction lessenings duologue and accordingly increases transactional distance ( Moore, 1993 ) ; Moore speculated that grownup scholars of course exh ibit independent behavior and this liberty relies upon decreased degrees of transactional distance e.g. low degrees of construction and high degrees of duologue. Constructivist ideals can further the decrease of transactional distance and so increase liberty in the spirit of Knowle ‘s self-conception. Interaction plays an of import portion in this procedure, and the ways in which engineering can help this must be considered. Interaction There are basically two types of interaction in a learning state of affairs. One consists of the scholar interacting separately with content, while the other involves societal activity – the scholar ‘s interactions with others ( equals or instructor ) about the content. A DL environment that is to supply affectional and effectual acquisition whilst making a sense of community and contracting the transactional distance must breed both sorts of interaction. In the yesteryear, societal interaction about content chiefly took topographic point between the pedagogue and scholar, but emergent engineerings have made it progressively executable for scholars to interact with each other and this interaction gives learners the chance to reflect, reconsider and cooperate in reliable problem-solving ( Lave and Wenger, 1991 ; Berge, 1995 ) . Social interactions which would usually happen in the conventional schoolroom ( e.g. sharing, treatment, group activities, equal reviewing, etc. ) must alternatively take topographic point via tools and engineerings in distance acquisition environments. However, some of these tools/technologies have restrictions which may impact the kinds of interactions that are possible or likely to go on. Online engineerings provide affordances that can be utilised for larning through substructures which allow connexions to objects and people that are in other environments ( Ryder and Wilson, 1996 ; Harasim, Hiltz, Teles and Turnoff, 1995 ) . Although these engineerings can further good interactions, they may besides impede them since pupils can non interact efficaciously unless they are easy able to use the media that they have been tasked with utilizing ( Kruper, 2002 ; Salmon, 2001 ) . Web 2.0 engineerings, which encompass a diverse scope of constituents that can be used to heighten the constructivist larning procedure, may offer a solution to this job. These tools are characterised by their celerity of deployment/ease of usage, enabling powerful information sharing and breeding constructive coaction ( Boulos, Maramba and Wheeler, 2006 ) . The minimum accomplishments needed to entree the characteristics of these engineerings allow scholars to concentrate upon information exchange and collaborative undertakings without the distraction of an environment which is technologically complex ( Kirkpatrick, 2006 ) . These tools – wikis, web logs, RSS provenders and podcasts etc. have been jointly called ‘social package ‘ and encapsulate a scope of coaction and information-sharing characteristics which may move as cognitive contemplation tools, helping building of significance as scholars develop content. The collaborative nature of societal package allows for the edifice of cognition both with and for others, concentrating upon the community instead than the single scholar. Collaborative acquisition may be synergised by happening in a community of pattern context – with scholars engaged in corporate acquisition within a shared sphere ( Lave & A ; Wenger, 1991 ) . Social package tools can move as cognition platforms for such a community, enabling information-sharing, treatment and coaction therefore helping the development of a constructivist environment. However, Marjanonic ( 1999 ) has criticised synchronal collaborative tools for enabling â€Å" communicating†¦ instead than computer-mediated coaction † ( p.131 ) . Hesse, Garsofsky and Hron ( 1997, cited in Pfister and Muhlpfordt, 2002, p.1 ) delineate the possible restrictions of utilizing synchronal text-based tools for collaborative discourse: deficiency of societal consciousness, deficient group coordination a nd lacking coherency of parts ; Pfister and Muhlpfordt ( 2002 ) besides stress the troubles that there may be in breeding consistent communicating, and equalizing parts within synchronal discourse. However, even in the schoolroom environment collaborative acquisition is non without its jobs, there may be, for case, pupils who dominate, inactive pupils, pupils who are loath to show their thoughts ( peculiarly if these contradict the instructor ‘s ) , or pupils making no work at the disbursal of others. The on-line environment may really assist to extenuate some of these jobs and lead pupils to comprehend online group treatments as more democratic and just than the traditional schoolroom ‘s opposite number ( Swan, 2001 ) . Some ( e.g. Jonassen and Kwon, 2001 ; Lai, 1997 ) assert that topics affecting treatment, brainstorming or contemplation are peculiarly suited to the online environment, and brooding acquisition – attacks that enable scholars to reflect on their acquisition and their acquisition processes – may be particularly effectual in this context. An of import component of brooding acquisition is that of reflecting upon cognition in order to do i t explicit. Social package, for illustration wikis, enables this contemplation to take topographic point collaboratively, conveying larning closer to the societal constructivist ideal. Employing tools which foster contemplation and self-assessment is a type of meta-cognitive staging that assists pupils in associating larning procedures to aims, and motivates them to presume duty for their ain acquisition. The usage of scaffolding as an foil of pupil acquisition was proposed by Bruner ( 1966 ) edifice upon the work of Vygotsky ( 1965 ) and in its original signifier viewed the instructor as the most likely scaffolder, making support systems for the pupil. However, in a technologically supported, constructivist environment where the pedagogue ‘s function as guide/facilitator is emphasised, equals, support tools or computing machine coachs are merely every bit likely to supply scaffolding. Beed, Hawkins and Roller ( 1991 ) see that scaffolding must take topographic point within a collaborative context, runing across the scholar ‘s ZPD, and be withdrawn as the scholar develops competence. From this it is clear that scaffolding within a DL environment may be an inherently societal procedure within which supportive interaction occurs in a collaborative context. Decision Much has changed in distance acquisition since its birth, rooted in correspondence classs, in the 1800s. Early classs were extremely structured, with minimum duologue between instructor and taught, and accordingly the distance between them – Moore ‘s psychological and communications gap – was great. Subsequent developments in communications engineering narrowed this distance, but the objectivist doctrine underpinning the exchange remained basically the same. Whilst it has been recognised for a figure of old ages that constructivist attacks may better the quality of instruction and acquisition in our schoolrooms, it has merely been in recent times, with the widespread usage of broadband and the development of tools which take advantage of its capablenesss, that constructivist ideals have been to the full capable of integrating into DL programmes. The new capablenesss afforded by societal package engineerings and the on-going development of online synchronal communi cations enable advanced staging and breed societal acquisition. However, distance pedagogues should non be tempted to utilize the advantages that engineering offers to try to animate the traditional schoolroom virtually, or to make state of affairss which pre-determine acquisition. This risks restricting the application of constructivism, and fails to admit that distance larning occurs in a typical socio-interactive context which requires a alone attack to learning and acquisition. Recent decennaries have seen important alterations in the bringing of DL as a consequence of new apprehensions about how grownups learn, and prefer to larn, every bit good as the rise of engineerings which enable the distance pedagogue to be ‘present ‘ even though temporally or spatially separate. The application of constructivist and andragogical theories combined with emergent engineerings have enabled the creative activity of practical schoolrooms within which collaborative communities can develop together, with the pedagogue presuming the function of facilitator in the group ‘s co-construction of cognition and significance. This interactive combination of theory and engineering has allowed distance larning to offer the grownup learner the ability to larn without clip or topographic point restraints whilst besides supplying the benefits – sense of belonging and collaborative endeavor – which the conventional schoolroom may offer. As a consequence, p upils no longer hold to ‘trade-off ‘ the advantages of synergistic acquisition against the convenience of distance survey, but instead can bask the benefits of both.

Speedo Marketing Stratergy

SPEEDO INDEX Sr. No| Topic| Pg. no| 1. | Marketing Objectives| 1. | 1. 2| Ansoff Matrix| 1. | 1. 3| Unique Selling Proposition| 3. | 1. 4| Point of Difference| 4. | 1. 5| Point of Parity| 4. | | | | 2. | Marketing Program| 5. | 2. 1| Product| 5. | 2. 1. 1| Lines to be introduced| 5. | 2. 1. 4| Quality| 11. | 2. 1. 5| Packaging| 12. | 2. 2| Promotion Strategies:| 14. | 2. 2. 1| Online and Print Media Promotion | 14. | 2. 2. 1 | Outdoor Promotion| 16| 2. 2. 2| Digital Media Marketing| 17. | 2. 2. 3| PR Activities| 18. | 2. 3| Price| 19. 2. 3. 1| Pricing Strategy | 19. | 2. 3. 2| Price Range| 19. | 2. 4| Place| 20. | 2. 4. 1| * Store Setup| * Facilities| Store Display| Store USP| | Location| 20. | 3. | Financial Budgeting| 23. | | | | Marketing Objectives The Ansoff Model: Existing Market – Product Expansion Speedo Ltd. is a manufacturer and distributor of swimwear. Speedo brand can be found on products ranging from swimsuits and goggles to wrist watches and MP3 players is establ ished in the swimwear market as one of the leading brands of the world.Being in this industry since decades now, Speedo has a very high brand value and is consistently rated as one of the top 100 brands in the world every year. In today’s world technology is being updated by every second and hence a company needs to keep itself in tune with the technology and happenings of the world and strategize accordingly. Hence Speedo uses the PRODUCT EXPANSION strategy which means that it has an existing market but has to expand its operations and product range and diversity as time progresses.Indian Market – Market Penetration Speedo may be very popular amongst consumers in India but it is still a new company in the market as a whole keeping in mind the Indian swimwear market. This is the reason why the market penetration is recommended in this market. According to the Ansoff model this strategy is used when a company is well established but enters a new market in which it is st ill young and needs to penetrate in the market in keeping with new marketing strategies and existing market situation. Unique Selling PropositionWhenever one utters the world swimwear, the first brand that comes to mind; is Speedo such is the phenomenal fan following of this brand. Whenever there is a Speedo swimwearon television, men and women the world over, tune in to catch the latest trends in. The plus points of a big swimwear brand like Speedo are proportionate pricing, a mind boggling range of sizes, including extra large sizes for overweight women and cup A sizes for beginners, opulent and mind numbing designs coupled with fantastic fits. The USP of Speedo is the: mix of goodlooking swimwear and practicality, which makes it possible to think of everyday wear as well.Point of Difference: * Fun, Comfortable, Athletic Speedo will be one of the very few swimwear brands in India with that Brand Image. Products sold at Speedo are diverse (from swimwear to body care and accessories ) are Vibrant and well packaged, unlike its competitors. Point of Parity: * There are a few elements that Speedo would wish to borrow from it’s competitors to incorporate into it’s business model: * Attention to comfort * Introduce body shaping Products * Concentrate on store interiors and display. Marketing Program ProductSpeedo India will have a varied range of products on offer; these consist of in addition to the swimear which is there in various sectors in India: * Swimsuits men/Women (Racing,Training,Triathelite,Competitive Equiqment,Fina approved suits, Swim Fitness) * Trunks * Fitness Range/Body care(Health and Well Being, Speedo sculpture,Accessories,Aqua Active, Play and fun) * Accessories * Speedo Digital (Aqua beat MP3 player, Aqua Coach) All Speedo products are benchmarks in terms of design, functionality, sustainability and comfort above all.As Speedo is opening up just its first store in India the product range will be limited to 3 world-renowned collect ions. Lines to be introduced: Right Fit SMOOTHER. SEXIER. BETTER THAN EVER Curves Description: Stretch-to-fit conforms perfectly to your body so all you see is curves; This swimwear fabrics are selected with quality, innovation, technology and creative freedom in mind, to ensure we provide only the best selection for our customers. Our fantastic range of swimwear is for both girls and guys. With a large assortment of fabric colours and prints, you’re sure to find more than one to choose from.Immerse yourself in our wide variety of fashionable designer swimwear, from one-piece bathing suits to bikinis, and coordinating accessories. 2012 is awash in a wide palette of colors, textures and prints in our women’s swimsuits as well as in our men’s swimwear. At Swimwear Boutique, we carry high fashion designers who offer complementing accessories. We also provide bathing suits that are appealing to a wide variety of interests, proportions, and ages. Our collection inclu des one-piece swimwear, bikinis, two-piece swimsuits, and coordinating bathing apparel for women, juniors, and misses.Explore our designer swimwear silhouettes and create your fashion forward wardrobe and embellish your favorite women's swimwear or junior swimwear with a sarong, shirt, pant, and other swimwear accessories. Features: * Weightless * Maximum nipple * Nylon ; Spandex/Lycra * Adjustable straps * Underwired cups if needed * Front closure Sizes available: Xtra small,small,medium,Large,Xlarge – 40 DD Colors available: Featured Products: * Swimwear women * One piece/Two piece 1. GLAMOUR BY SPEEDO THE GLIMMEROUS TOUCH OF GLAMOUR. Description:The glitter with a combination of laced edges and self-embroidery gives you a classy touch adding glamour to your swimwear. The label is aimed at sophisticated women of all ages who demand high-quality and high-fashion in equal measures. The collection hits a fabulous note that is sexy, and also flattering and comfortable. Glamorou s not only features stunning contemporary design, the range also offers subtle support and control which gives our clients the body confidence to enjoy their new swimwear on all occasions – whether basking in the sun poolside, on a yacht, or at a resort bar as the sun sets.The inaugural collection features fashion-forward colours, and a beautiful variety of one-piece maillot swimsuits, and mix ; match bikini separates. Features: * Underwire * Heavy look with a comfortable feel * Sexy shapes Sizes available: Small, Medium, Large. Colors available: pastel shades and solid colors with multi-colored lacing and embroidery Featured products: * Swimwear sets 3. Speedos tie up with designer brands Description: At Speedo we plan to tie up with a designer and provide our clients with exclusive swimwear No matter what your preference, you'll find a swimsuit at Swimwear Boutique. com.Our suits will capture the essence of your femininity and accentuate your best features. e represent the most unique styles and highest quality products available. Molly Brown's is approached by hundreds of designers each year to retail their lines in our store. Our buyers select only a limited number of the world's best, not fifty or a hundred like other swimwear retailers. Most of the designers we carry use only the most luxurious imported fabrics and custom hardware. Specialty swimwear has become main stream in high fashion and designers have enhanced their lines by producing beautiful dresses and resort wear.Molly Brown's has expanded its offerings to feature these specialty lines. We are privileged to have many of our designers produce exclusive pieces which are only available at Molly Brown's. Due to our strict privacy policy, many professionals, celebrities and their representatives are clients of Molly Brown's. A large percentage of the designer swimwear that is photographed on celebrities is sold in our store. Molly Brown's client list includes hollywood's a list, Fortune 500 professionals and fashion forward women that want the seasons' hottest trends. Molly Brown's has been featured on MTV, E! major news networks and in countless fashion publications. we are actively involved in celebrity photo shoots, high profile events and fashion shows. Each year we are asked by the media to comment on the upcoming season's hottest styles and trends. The vibrant atmosphere of the Molly Brown's store and beautiful window displays are a draw for designer interviews and news coverage. Please see our current press, video links and featured in publications. Shopping for swimwear can be difficult. For this reason, Molly Brown's client services and knowledgeable staff are unsurpassed in the industry.Ensuring our clients receive the exact style and fit they desire, both in store and online, is key to our success. Due to our outstanding personal and professional services, most first time buyers become long term clients of Molly Brown's. Features: * Reversible * With gel cur ve * Extreme plunge push-up * Various color ; print combinations * Unique border shapes * Extreme comfort with seam free, label free ; stitch free technology Sizes: Available in all sizes Featured products: Swimwear for men and Women Featured Designers SHIVAN ; NARRESH’These designers werelaunched in Cannes at ‘Mare di Moda’ with their 100% stitch free line called Insectoid. ‘SHIVAN ; NARRESH’ has a unique signature style that is bold, confident ;   sophisticated. Flawless lines, undisputed eye for detail and utter sophistication are words that could be used to define the brand. After the launch in Cannes, the duo shifted their studio to India, and became India’s first mainstream beachwear designers doing 100% handcrafted stitch-free swimwear and ready to wear made all in 100% Italian swimwear fabrics and complementing  resort wear.Currently based out of New Delhi, SHIVAN Bhatiya mastered the art of leather corsetry and accessories for fou r years from National Institute of Fashion Technology, New Delhi, learning the functions and craftsmanship of leather in women’s wear lingerie. While NARRESH Kukreja specialized in women’s wear for four years in Fashion ; Textiles. Subsequent to their graduation, they worked in the fashion Industry for a year before being awarded  scholarships  to complete their Masters in Milan ; Rome at the Istituto Europeo di Design in ‘Fashion ; Textiles’ ; ‘Luxury Marketing’ respectively.SHIVAN ; NARRESH are recipients of several awards in recognition of their design ; creativity. The duo were discovered in 2006 by MITTELMODA, the oldest Italian talent search organization, based in Gorizia, Italy through  Mittelmoda International Beachwear Awards  in Bali. They are  winners of the  World of Wearable Art Awards, Wellington, New Zealand(‘06),  the  SWAROVSKI Most Creative Designer of the Year  (‘07) at the NIFT Graduation;    Debutant Designer of the Year(‘07) at India Fashion Week. 4.Exclusive Customisation Custom Made Swimwear manufactures all of its swimwear Let us take the frustration out of buying a swimsuit and help you find the perfect fit. We offer styles for every shape and size, specializing in large cup sizes, plus sizes, full figure and hard-to-fit swimwear. You can purchase your bathing suit by size, from 0 – 32 and bra size AA to K cup. Also, a customized specialty suit can be hand cut and sewn for your needs. Specializes in giving women of all ages what they want and need in swimwear.We can assist in fitting women who are hard to fit, have health issues, are struggling with weight, mastectomy or the woman who simply wants to create a uniquely custom swimsuit. You choose your style, size and fabric as well as numerous options making it possible for you to get the look you deserve. Each order is reviewed by an experienced consultant to confirm sizing accuracy and to make the ne cessary alterations to get the best possible fit. You will walk away feeling confident and self-assured that you can look great in a swimsuit! Quality Considering the price one pays, Speedo quality is excellent.Speedos Swimwear made of the cotton/spandex/ lycramaterial tends to retain its stretchiness with time; however, the color doesn’t fade quickly. Most of the swimwear have excellent quality that does not dwindle with time in any respect- the material retains its color and texture over time. Accessories and tops made  out of  100% lasting, however the ones with certain percentage of spandex in them last longer. Size Chart Packaging†¦ The following actions have taken place so far within the framework of this plan: They have minimized the thickness of the boxes down to the technical limit that prevents breakage and crushing.They have also minimized the individual packages for garments and accessories in terms of dimensions and density, while retaining their capacit y to avoid breakage and to be processed by the distribution machinery. They have minimized the size of the labels, to just the size that allows them to be read correct. It is worth noting that all internal shipments are made using reused boxes. It is also worth pointing out that all the boxes used are made with 100% recycled material. To facilitate recycling, all these are paper-based, eliminating any metallic elements (staples, etc. Finally, Speedo adheres to the waste and packaging management systems established in the different countries in which they operate. Promotion Online ; Print Promotion: * Speedo plans to strategically use social networking sites like Facebook, Twitter, etc. to promote itself, since it aims to capture the attention of the digitally advanced and internet friendly marked. * A special page will be created on Facebook for Speedo India, which will provide regular updates on changes, and additions to inventory, notify customers about upcoming sales and offers.U sers can also place queries regarding their orders, which will be answered and assisted by the customer care executives. * Twitter posts regarding Speedo. com will be regularly updated, Consumers who wish to learn more about the website and what it has to offer can follow these posts for information. * Advertisements will be given in issues of popular fashion magazine like Vogue, Harper’s Bazaar, L’officiel, etc. which are read by the market Victoria’s Secret aims to target. * Advertisements will also be put in the Bombay Times, since; it is a newspaper that is common among all age groups.Advertisements will be carried out for the first 3 months. * Speedo will launch and Indian website and the web domain will also be submitted to popular search engines like Google, Yahoo, etc. In this way users looking for information on Speedo India will be guided to a link to the website. * Popular news articles online and on print from Times, Business India, etc notifying the market about Speedo Brick and Mortar and online store will also promote the website and create awareness. * End of season sales will be notified through Magazines, Newspapers, social networking sites, etc. Sign up Members for Email newsletters and mobile updates outdoor Promotion: * Billboard advertisements to promote the establishment of Speedo new store will be seen for 3 months since it’s operation outside its stores and prime shopping locations. * In-store collaterals will notify customers shopping at the store about Speedo online presence. Billboard advertisements Digital Media Marketing: 1. Speedo for IPad and IPhone Description: It’s the destination for all things Speedo—anywhere, anytime, on-the-go, at your fingertips. Effortlessly flip through and buy from o current catalogues, shop www. peedo. com with just a tap, and find the nearest Speedo stores. One will also find up-to-the-minute coverage of the favorite swimwear from photo shoots to star-studded store openings, fashion show exclusives, TV commercials, special event,etc. * PAD ® IS CATALOGUE IN THE WORLD ?The catalogues come alive on iPad ® letting one simply swipe the screen to flip from page to page. Just tap the image and it will take one directly to that item on the website. Add it to the shopping bag and check out. It's easy, fast and can be done wherever. * ? FIND THE NEAREST VS STOREThe store locator finds a Speedo store near the user and provides directions, store hours and contact information. * SHARE WITH FRIENDS Post VS pictures, videos and stories directly to one’s favorite social networking sites or share via email.? Television & P. R. * A week prior to its launch, Speedo in association with a fitness program will telecast the Victoria’s Secret 2012 during Prime Time. * Victoria’s Secret launch party. * Location – Hype, Mumbai. * Guests– Athletes,Socialites, celebrities, leading models, designers and corporate wives from all over Mumbai. Schedule – The event starts at 21:00 hrs. followed by the introduction speech by CEO Speedo and Store Manager for Speedo Mumbai followed by dinner and drinks. The event duration is 3 hours since it is to take place in a club and be full of events. Guests will leave with gift packs from Speedo * Why the launch party? Any message conveyed by means of recreational activities and entertainment is always heard louder than a mediocre public event. The pompous nature, glamour, exclusivity and Posh appeal of a launch party is automatically well publicized due to the presence of high level guests and celebrities.Price The above table represents the average pricing of the various types of products to be carried under each product line. This was calculated keeping in mind various factors such as: * International pricing strategy * Taxes * Operating expenses * Fixed costs * Appeal of the particular product * Marketing expenses * Target consumer Place Location The new Sp eedois planned to be launched in Palladium Mall, Lower Parel. The mall is ideally located in Central Mumbai. Palladium is apt owing to its host of brands it has and the customer’s it attracts.Store Interiors The interiors of the store will be designed similar to that of Speedostores across the world. Merchandise will be arranged in neat stacks according to size and color. Store Display GANTT Chart A Gantt chart is a type of bar chart that illustrates a project schedule. Gantt charts illustrate the start and finish dates of the terminal elements and summary elements of a project. Terminal elements and summary elements comprise the work breakdown structure of the project. Some Gantt charts also show the dependency (i. e. precedence network) relationships between activities. Gantt charts can be used to show current schedule status using percent-complete shadings and a vertical â€Å"TODAY† line as shown here. Although now regarded as a common charting technique, Gantt cha rts were considered revolutionary when they were introduced. In recognition of Henry Gantt's contributions, the Henry Laurence Gantt Medal is awarded for distinguished achievement in management and in community service. This chart is used also in Information Technology to represent data that has been collected.In the following report 2 Gantt Charts, Both representing Zara India On line’s planned schedule for Web Development and Promotions is created. Financial Budgeting Introduction It's essential to plan and tightly manage one’s business' financial performance. Creating a budgeting process is the most effective way to keep the business – and its finances – on track. Successful businesses invest time to create and manage budgets, prepare and review business plans and regularly monitor finance and performance. Structured planning makes all the difference to the growth of the business.It also enables one to concentrate his/her resources on improving profits , reducing costs and increasing returns on investment. In fact, even without a formal process, many businesses carry out the majority of the activities associated with business planning, such as considering growth areas, competitors, cash flow and profit. Converting this into a cohesive process to manage the businesses will keep the company dynamic communicated to it’s clients and workers more effectively. The main aim of the business plan is to set out the strategy and action plan for the business.This also includes a clear financial picture of where the company stands – and expects to stand – over the coming years. In the previous report Analysis had been conducted with respect to Market environment, Consumer profile, etc. On the basis of the results of the analysis and Web Development strategy was proposed. The following report consists of a detailed Financial Plan complete with figures and estimates required to implement the earlier proposed web development plan. Start Up Expenses Income ; Expense Statements