Porters Five Forces Analysis Marketing Essay

Doormen Five Forces Analysis Marketing Essay Presentation The primary motivation behind applying the five powers examination is to distinguish the key factors in the mechanical condition that impact the associations capacities to situate itself so as to justify upper hand. It is a system for industry investigation and business procedure advancement framed by Michael Porter. An industry is a gathering of firms that advertise items which are close substitutes for one another (for example the vehicle business, the inn industry).Some ventures are more gainful than others, the appropriate response lies in understanding the elements of serious structure in an industry. Doormen Five Forces Model is one of the most persuasive logical models for surveying the idea of rivalry in an industry. Watchman clarifies that there are five powers that decide industry engaging quality and since a long time ago run industry gainfulness. These five serious powers are the danger of new contenders passage, the danger of substitutes, the bartering intensity of purchasers, the haggling intensity of providers, and the level of contention between existing contenders. Watchmen five powers outline. http://www.b2binternational.com/china/pictures/stories/areas/porters_five_forces.gif Source: www.valuebasedmanagement.net Prologue to inn industry An inn is a foundation that gives a transient paid living arrangement. Before, lodgings were only a little stay with a bed, pantry, and a table, yet now it has completely changed to something different. These days lodgings are lavish living arrangements that incorporate various kinds of offices. The vast majority of the inns presently incorporate spas, pools, wellness focuses, meetings rooms and worldwide eateries. Indeed, even the rooms are presently greater and incorporate many solace offices. Malaysian Association of Hotels (MAH)Â was set up in 1974. It is presently being formally perceived as a National Hotel Association. Presently it sets the guidelines and least adequate levels for being a lawful confirmed inn in Malaysia. It has 2,184 enlisted individuals and 17 additional inns in the following 3 years. Table: Hotels and rooms gracefully 2010/2011 Dealing intensity of providers The term providers contains all hotspots for inputs that are required so as to give merchandise or administrations. The two key providers to the Hotel business are works and land Over all the providers in this market are characterized as land owners, engineers and land organizations, inside plan and goods organizations, modelers, the executives and preparing specialist co-ops, promoting organizations, industry experts and ICT makers. Class Rating 1-10 Comments Number of providers 6 (medium) Impressive no. of neighborhood and Chinese temporary workers Modest number of value preparing suppliers and gifted representatives. Accessibility of substitute 6(medium) Substitutes for property (realtors), creators, and workers are accessible. Exchanging cost classification 2 (low) - substitute for inn are not many.. Providers danger of forward reconciliation 2 (low) Providers are exceptionally far-fetched to advance incorporate into the lodging industry Industrys treat in reverse reconciliation 5 (high) - inns could in reverse incorporate to possess land organization. They could have their own preparation wing. Commitment to quality 5 (high) - Property improvement and land organizations add to the quality so does talented work and quality preparing Commitment to cost 2 (low) - Most providers are a lot littler organizations contrasted with lodging organizations. - Hence lodging organizations have an a lot higher haggling power. providers commitment to cost is low In general, the quantity of providers for the Hotel business is very enormous and every provider is exceptionally little in size contrasted with the main players in the business. These couple of incredible players are basic to the providers. Substitutability of the providers is additionally very doable and economical. Exchanging between realtors isn't goingto influence a specific Hotel organization fundamentally. Anyway as far as quality, preparing habitats for representatives and ICT makers who give IT frameworks thatfor property the board are moderately increasingly hard to supplant. Consequently as far as substitute providers industry engaging quality is respectably high. Not at all like the provider is danger ofâ forward reconciliation, Industry is danger of backwardintegration is quite high since enormous lodging networks like ITC or IHCLÂ would have no doubts venturing into the genuine estateâ business or creating representative preparing offices in-house. Similarlythe industry is commitment to both expense and quality isrelatively high. Generally speaking haggling intensity of providers is low and industry is engaging quality as far as provider bartering power is high (4). Haggling POWER OF BUYERS The haggling intensity of purchasers decides how much clients can force pressure on edges and volumes. The end-clients of the top of the line lodging industry are:- Relaxation voyager Business voyager Clients who require space for meetings or different occasions Class Rating 1-10 Comments - Number of Buyers 7(high) - Buyers are various and little in size.- Losing one client can't going to have any kind of effect. Their dealing power is low - Availability of substitutes: (medium) - Multiple substitutes for a given lodging or brand is accessible - Informal settlement for loved ones is accessible other option - Corporate visitor houses for the business explorer - Switching cost: 2(low) - Switching costs arenegligible Purchasers are cost sensitiveexcept in the - Buyers danger of in reverse reconciliation: 5(high) Clients are will notconstruct an inn or purchase a position of home for each spot they visit. - Contribution to quality 2(low) Extra offices suchas spas, rec centers and so forth are usedmy inns to improve thequality of clients remain - commitment to cost 5(high) Brand picture is veryimportant in this industry and prompts additional cost, Additional amenities,training of staff, locationrent (like near airport)etc. - Buyers gainfulness 2(low) Low purchasers gainfulness In the mid - fragment, there are various purchasers, of extremely little benefit In the superior fragment, purchasers are exceptionally well-off, and they have more noteworthy dealing power comparedto the mid-portion Industrys danger of forward mix. 4(medium) - low possibilities or forward mix This industry has numerous clients who are generally little in size. Loss of a solitary client has little effect on a lodging organization and this drives down the purchasers bartering power. So also purchasers danger of in reverse mix is practically inconceivable thus the business is under danger of forward coordination. Anyway the business has a few substitutes, for example, outdoors and recreational vehicles for vacationers, corporate guesthouses for business voyagers and other casual methods for convenience with loved ones. Exchanging cost for every one of these choices is low, with the exception of the RV. Aside from the arrangement of convenience, inns likewise give extra offices and administrations, for example, cafés, rec centers, spas, gathering corridors, ball rooms, lounges and so forth. Thusly their commitment to quality just as cost for the purchaser is high. Obstructions of passage Class Rating 1-10 Comments Economies of scale 5(high) High economies of scale-Very critical to operatea chain of lodgings in multiplelocations, particularly for the top notch portion. This decreases thedependence on tourismtrends at some random area Item separation 4(medium) Exceptionally separated Brand names and valuesare significant in pulling in and holding clients - brand character 4(medium) Brand is significant. - exchanging cost 2(low) - low exchanging cost - capital prerequisite 4(medium) - capital escalated. - staff, dã ©cor, foundation e.t.c is over the top expensive. - Access to innovation 3(moderate) - ICT is significant for property the executives. - Access to crude material 4(medium) - Labor, land and different basics are anything but difficult to get. - government insurance 3(moderate) - The travel industry gets government. - leave hindrances 2(low) - High leave boundaries. Particular resources for the business. Brand names are significant in the inn business. Organizations utilize their solid image names to draw in new clients and hold old ones. Plus, economies of scale are additionally an enormous factor in this industry. Productivity of lodging networks is radically higher than singular tasks. Another participant can't contend with built up players as far as quality, cost and even administrations. On the off chance that they can't set up huge economies of scale.Being a capital concentrated industry with a lot of it secured in fixed costs, makes section increasingly troublesome. So also high leave boundaries due to specializedassets make the business less attractive.The friendliness industry is unequivocally impacted by movement and the travel industry patterns. Government insurance for the travel industry is extremely high and this thusly comes off on the lodging business making it along these lines making the business appealing by and large. Serious intensity of contention players This perspective portrays the force of rivalry between existing players (organizations) in an industry. High serious constrain results or prompts pressure on value edges and on productivity for each and every organization in the business. The accompanying table shows the examination of the competition between inns. factors Appraisals (5) Comments. No. of rivalries 4 (high) Modest number of enormous administrators Industry development 3 (medium) Yearly development pace of 15% Fixed expense 1 (low) Exceptionally capital concentrated separations 4 (high) Solid brand name orders an extremely significant expense premium. Exchanging cost 2 (moderate) Minimal effort changing to comparable brands Receptiveness to terms of offer 4 (high) Cost, charges and so on are known Overabundance limit 2 (moderate) Just 70% rooms involved Key stakes 2 (moderate) Albeit huge lodging

My dear friend Free Essays

string(40) the Basic Law of Government by decree. I trust you are making the most of your stay in the United States and that you are accepting a decent education.â I have been giving a ton of thought as of late to the issues of our realm and the potential options in contrast to the standard of the House of Saud.â I have scarcely any chances and freedoms here that I feel that moderate Islamists may make a superior showing of administering our nation than the sovereigns. We will compose a custom paper test on My dear companion or on the other hand any comparative theme just for you Request Now  Let me attempt to clarify how I feel. In the same way as other of our age, I experience experienced issues discovering work.â During the oil blast of the 1970’s, business was progressively secure and the administration had the option to give broad government assistance advantages to residents of the kingdom.â More as of late, nonetheless, the economy has stagnated.â In 1998, for instance, we had 27% joblessness! I feel that the economy is enduring because of our dependence on oil.â Despite the marvelous riches it brings to the nation, the oil business can just utilize a specific number of people.â Since oil is basically the main thing that our nation produces, it is the main part that gives enormous scope work other than the administration itself, which is ruled by the regal family and its system of companions and cohorts. Regardless of all the riches picked up from oil, the imperial family Has not put the riches into different divisions of society; rather, it has utilized the oil riches to enhance itself, buy immense amounts of weapons from the Americans, and purchase steadfastness from the populace by giving free social services.â Despite this riches, nonetheless, our nation has not given more noteworthy opportunities to its residents. Our realm has consistently depended on a collusion between the al-Saud family and the extreme Wahabi clerics.â One of the king’s focal jobs is the caretaker of the two blessed spots (Mecca and Medina).â The priests give the ruler authenticity, and consequently the rulers richly finance the clerics’ mosques, schools, and good cause associations. I feel that this partnership is awful for our country.â Our nation should be freer.â Both the regal family and the Wahabi priests are against more noteworthy opportunities for us, the normal citizens.â Both gatherings advantage by denying capacity to other people.â I have come to feel that the Saudi-Wahabi collusion is awful for us as Saudi residents, since it denies us fundamental freedoms.â It is likewise awful for the world in general, since it prompts fear based oppression. Numerous Wahabis have betrayed the Saudi illustrious family, pronouncing that it isn't adequately Islamic.â They feel that the legislature is excessively degenerate, excessively debauched, and excessively well disposed with America.â Osama container Laden is the most scandalous Saudi who has taken this position.â Even however he assaulted America, canister Laden’s essential foe has consistently been the Saudi regal family, who he feels are awful Muslims who don't have the right to be the overseers of Mecca and Medina. The danger to the Saudis from its extreme residents turned out to be clear soon after I was born.â This was a significant defining moment in the historical backdrop of our country.â When Saddam Hussein attacked Kuwait in August of 1990, many expected that he would turn on Saudi Arabia next.â Osama receptacle Laden disclosed to King Fahd that he would fight Saddam Hussein’s powers with the warriors he had prepared and battled with in Afghanistan during the 1980’s during the war with the Soviet Union. Lord Fahd dismissed receptacle Laden’s offer, which presumably wasn’t exceptionally sensible any way.â Instead, the ruler went to the Americans for protection.â Huge American armed forces came to Saudi Arabia and utilized our nation as a base from which to assault Iraq and free Kuwait.â Even however Saddam Hussein could no longer compromise Saudi Arabia, the choice to permit the American military into the realm incensed numerous extreme Islamists. I should state that, as a glad and autonomous man, I might want to safeguard my own nation instead of have the Americans do it.â I don’t wish the Americans any mischief, it’s simply that I don’t need to depend on them and in a perfect world I might want their military to leave our land.â Many individuals, be that as it may, feel significantly more emphatically about this than I do, and they started assault the place of Saud for permitting Americans into Arabia. As my age developed, we saw the administration go under assault from radicals who wished to topple the regime.â Throughout the 1990’s these radicals, including al-Qaeda, assaulted locates in Saudi Arabia that were related with the legislature or the American military.â We presently have a showdown between the House of Saud and the extreme Islamists, however I don’t feel that either bunch can oversee our nation adequately. In spite of the fact that I object to the Saudi illustrious family, similarly as Osama container Laden does, I additionally absolutely oppose canister Laden’s objectives and tactics.â Basically I feel that the Saudis are extremely conservative.â Bin Laden feels that they are not preservationist enough!â The most astounding thing about the Saudis is that their partners, the Wahabis, are the individuals they need to fear most. For quite a long time, the illustrious rulers supported Wahabi mosques and schools and good cause around the world.â They realized that a portion of these gatherings utilized the cash for fear based oppressor exercises, however there was a kind of implicit understanding that the Islamist psychological militants would not target Saudi Arabia itself.â I don’t know why our administration at any point confided in these individuals, yet the psychological militants broke the understanding and started to assault the regal family. Things being what they are, old buddy, our administration has neglected to broaden the economy past oil, it has neglected to give more rights and freedoms to its residents, and it has utilized oil riches to attempt to pay off radical gatherings, yet this procedure has typically backfired.â These are intense complaints to have, wouldn’t you state? Maybe a case of the imperial family’s thought of â€Å"reform† will show my grievances.â In 1992, King Fahd established the Basic Law of Government by pronouncement. You read My dear companion in classification Paper examplesâ The law illuminated the idea of the government.â The administration was an innate government, a model that was famous hundreds of years back in Europe.â The ruler would fill in as head of state, leader of the chamber of priests, and president of the furnished forces.â furthermore, the lord delegates all clergymen just as all individuals from another body, the consultative gathering. Here are my issues with this endeavor at reform.â Firstly, the Basic Law was authorized by declaration of the ruler; the Saudi individuals had positively no job in concocting this law.â Secondly, the law essentially illuminated what was at that point known; the Saudi family, particularly the lord, has all the force in Saudi Arabia. The consultative committee should speak to a move towards more prominent portrayal, yet I feel that it just outlined the king’s arrogance.â Firstly, the board is named by the ruler, so we can expect it is made of up individuals who he realizes will concur with him.â Secondly, the chamber â€Å"consults†; the lord is not the slightest bit bound to follow its advice.â So not exclusively is this gathering not agent of the Saudi individuals, it doesn’t even have any authority!â This isn't the sort of change we need; this isn't change in any way. My companion, our nation has no constitution, no bill of rights, no free courts or media, and no immediate portrayal for its residents in government.  This isn't the kind of nation I wish to live in.â Here is the thing that I feel must be finished. I don't have any hallucinations about to what extent and hard the change to majority rules system can demonstrate to be.â We have seen our neighbor, Iraq, destroyed by common war and turmoil after its harsh government was tossed from power.â If the Saudi government vanished for the time being, I dread that our nation could experience the ill effects of these equivalent curses.â For this explanation, a vicious oust of the legislature would not be a decent idea.â Iraq has given us that autocracy is desirable over political agitation, on the grounds that in any event despots can forestall huge psychological militant assaults. The appropriate response doesn't lie in rough topple of the Saudis, and it likewise doesn't lie in radical Islamists.â We are generally Muslims here, it is true.â Islam was conceived in Arabia.â The prophet lived and kicked the bucket here.â Mecca and Medina are here.â We are the very support of Islam.â However, we can't permit radical Muslims to take power from the Saudis. I have straightforward wants, my friend.â Like a great many people on earth of each race and religion, I need basically to carry on with my life in opportunity and poise and have the option to accommodate my adored ones.â We have seen that extreme Islamists, despite the fact that they guarantee to share our religion, are dealers of death just; from all that I have seen, it appears to be certain that they are increasingly keen on murdering individuals, for the most part individual Muslims, than they are in administering. As much as I detest the Saudis, I know where it counts that extreme Islamists would be worse.â They would almost certainly be significantly more savage and harsh towards the individuals than the Saudis are.â The most extreme Islamists wish to return Arabia to a seventh century condition of â€Å"purity†.â They feel this is the perfect condition for Muslims.â They wish to reproduce a world before oil, a world before mass correspondence and amusement, a world before America.â This is a dull wish.â We ought not be naã ¯ve about what radical Islamists would do to our nation should they ever pick up power. The arrangement, I feel, lies with moderate Islamists.â Islam must be the focal point of any change, in light of the fact that the mosque is the main force focus of any substance other than the Saud family.â There is no free affable society here on account of all the

Tale of the Midnight Tool!

Tale of the Midnight Tool! As some of you may have noticed, the world didnt end on Wednesday like I thought it would (for the rest of you, look outside, yup its still there). Which means my nights spent shirking responsibility and being annoying to those around me under the guise of it having no repercussions turned out to bite me in the proverbial butt. Thus is the beginning for the tale of the midnight tool: Prologue: Having taken BC Calc AP in high school, (though not getting credit for it like I shouldve) I figured 18.01 would be a walk in the park, I took one look at the p-set and saw that it had only like, 10 questions and blew it off all week. Now Im claiming that part of this is the LHCs fault for not destroying the world, but come Thursday night I didnt feel comfortable betting on it (or betting against it really..kind of a lose lose) so I sat down and started the pset at 9:30p.m. What follows, friends is what is known as a rude awakening. 18.01 is much harder than BC Calc. Much much harder in fact. But what makes it so hard? its just maths right? Sort of. Here at MIT, rather than work on your ability to recognize problems you already know (which, admit it, is what most high school homework is), the problems are concerned with teaching you how to think, making you understand the material presented. A handy example actually comes from my pset: A) What I was expecting: Chris, what is the derivative of x^2? How about x^3 + 2? Be clever! Pat yourself on the back if you got it right! Youre so smart! That girl you have a crush on thinks your ability to derive is sexy, go ahead, ask her out, shell say yes! Whoa hey, is that $20 lying on the floor? B) Reality: Calculate the (p+q)th derivative of y=x^p(x-1)^q (or something like that) using Leibniz rule. Btw, shell never go out with you. WHAT?!! First off, in my entire course of BC Calc, never did I ever see Leibniz rule, and Im positive it was never mentioned in lecture. His rules for calculus are much more effective than his rules for picking up women Doodling away at a billion different ways to solve it, I finally stumbled upon something key (thats the infinite monkeys, infinite typewriters approach). Without getting way too mathy, the pth derivative of x^p is p!, thus, the p+q derivative is 0, because at p its a constant! That one idea let me clear out huge swaths of terms like some strange hybrid of Stephen Hawking and Rambo (note to self: that would be an awesome movie). I was probably a little too excited to finally figure it out, but thats the point. I didnt explicitly know how to solve it. I figured it out. MIT taught me how to think. Unfortunately that was but 1 problem in the whole set, hence why at 6:30 a.m. this is what my work area looked like: From for blog I finished at about 7:00 a.m. which is an unpleasant feeling. I did learn some MIT vernacular though (theres so much slang here that it could be considered its own language, like Klingon. Also like Klingon, it does not impress women.) Tool- 1. v. To work tirelessly on p-sets or other tedious things. 2. n. One who works tirelessly on p-sets or other tedious things. In summation, this place is hard, really hard. No matter how smart you think you are, its probably going to be different than you imagine until you finally get here. But its a good different, theres a sense of achievement and fulfillment in figuring out a hard problem, and working hard is only one aspect of the popular mantra on balance here: Work hard, play hard.

Should Steroids Be Legal - 913 Words

Over the course of history, there have been a plethora of performance-enhancing substances and other types of drugs that have swept their way through the sports world. Many athletes have been caught in the act of using these kinds of drugs, and others have been ‘lucky’ enough to get off with little to no punishment. Steroids have taken over sports by storm, specifically baseball, where they seem to be used the most. However, they are also assumed to be used in football, basketball, hockey, cycling or any sport one can think of. Some have argued that the use of these drugs should be legal, and I disagree with that argument. Steroids in sports should not be legal because they have a detrimental long-term effect on the human body, it is blatant cheating and an athlete should strive to be a good role model for young kids aspiring to play sports. Although steroids improve a person’s skill level at their particular sport, these drugs can also have many negative everlasting effects that might not materialize until it’s too late. Anabolic steroid use has been associated with a wide variety of side effects and they range from physically unattractive, such as acne and breast development in men, to serious and life threatening such as heart attacks and liver cancer. Most are reversible if the abuser stops taking the drugs, but others can be permanent (DrugFacts). Long-term use of Anabolic ste roids can also have devastating effects on the brain. They can affect some of the same brainShow MoreRelated Anabolic Steroids Should Be Legal Essay1930 Words   |  8 Pageswere taking anabolic steroids throughout their career. I always thought with hard work and dedication, I could be just like them, but that was not possible because they were all cheating to get an edge. Anabolic steroids were added to the list of Class III Substances in the Anabolic Steroid Control Act of 1990. This act makes it illegal to possess anabolic steroids in the United States without a prescription. Congress passed this in hope to avoid the use of anabolic steroids in sports. However, theRead MoreDrugs Should Be Banned For Professional Sports1211 Words   |  5 Pagesenhancing drugs if they didn’t have a chance of getting caught. Performance enhancing drugs, or PEDs, or steroids, have been around since 776 BC when the Greeks would use them to improve their performance in the Olympic Games. Dur ing World War II, the Germans, including Hitler, would take steroids to make themselves stronger and more aggressive. The Americans, British, and Japanese also began to use steroids during World War II shortly after Germany. After the war, athletes started to get their hands onRead MoreAnabolic Steroids : A Fatal Attraction1734 Words   |  7 PagesAnabolic Steroids in Sports The market for top performing athletes in sports in the 21st century is a competitive one. Athletes are pushed to, be stronger, an heal from injuries faster. With the pressure to do well and get picked up by a professional team of sorts goes without saying that hard work is a must to elevate ones professional athletic career, but what if one has reached a plateau or hit a wall in a training regimen and just can not seem to push through? When some athletes hit the proverbialRead More The History of Steroids: The Legal and Illegal Usage of Steroids1466 Words   |  6 PagesThe use of steroid by athletes has been a controversial issue for some time. One can argue that the usage is totally wrong and it is against the morals and the rules of the games. Although steroids boost up the process of muscle building and endurance, it also has complications in the long run. Those that cheat their way by using and or abusing such chemicals can have serious health defects. A real athlete should work his/her way with hard work and the correct training to build that endurance andRead MoreDrug Use in Sports Essay1472 Words   |  6 Pages Drugs should be banned in all sports. They have been a problem for a long time. Athletes use them to enhance their body and for simply just the edge. There is nothing wrong with using some drugs to enhance your body as long as they are legal. The problems that come with drugs in sports are how to detect them. Some professional sports, such as the NHL, do not even use drug tests. The only sports that test for everything are the NBA and NFL. The Major League Baseball only tests for illegal drugs suchRead MoreThe Drawbacks Of Anabolic Steroids1384 Words   |  6 PagesThe Drawbacks of Anabolic Steroids and Why They Should Stay Illegal Anabolic steroids have been used and taken by humans for over half a century. The effects they provide have developed large ongoing debates as to whether these substances should be allowed to the general public. Anabolic steroid in short provide the human body a much grander potential to build muscle by helping the cells within the body produce more muscle fibers at an astonishing rate that could never be achieved naturally. ManyRead MoreSteroids and Other Performance Enhancers Essay1191 Words   |  5 PagesThe issue over steroids and other performance enhancer drugs has been a recent topic in the sports world. The debate over whether or not to punish those who have been caught using has been a major topic recently, as well as the legalization of these drugs. When arising the question of whether or not to legalize steroids, many positive and negative factors are brought to the table, and in effect could change various aspects of our normal day lives. Anabolic steroids are a class of naturalRead MoreEssay about Steroids in Sports: Right or Wrong?947 Words   |  4 PagesSteroids in Sports, Right or Wrong? â€Å"We have to make some radical move to get the attention of everyone. Cheaters cant win and steroids have put us in the position that its OK to cheat.† (Lou Brock). Steroids in professional sports has became a major issue and has yet to be justified. Steroids boost the intensity of the game and provide the athletes with more agility and skill to play the game, but should it be fair to allow them? This would give some players an advantage in their sport overRead MoreAnabolic Steroid Use in Sports Summary1493 Words   |  6 PagesAnabolic Steroid use in Sports The competitive drive to win at all cost is fierce among athletes. Winning at all cost often includes using one of many performance enhancing drugs such as anabolic steroids. Many athletes use performance enhancing drugs, like steroids, to achieve higher goals and set higher records than other drug-free successful athletes. Although athletes are performing at higher levels when using such drugs, what is the cost? Finally anabolic steroids should remain bannedRead MoreSteroids Are Legal For Sell1058 Words   |  5 PagesMarcus Bond Mrs. Lawson 12th Grade English 2017 Apr, 19 Steroids are legal to sell In Mexico where steroids are legal. Guess what. Mexico doesn t have a steroid problem. In fact, the issue doesn t even raise an eyebrow. Anyone, including a 15 year-old soccer player, can walk into a pharmacy, go right up to the counter, ask for preloaded ready-jects of Sustanon 250 and Deca, pay his 500-some-odd pesos and walk out, just as if he d purchased pink sugar cookies and a bottle of Gatorade. No problem

Comparison of Two Texts, “One Flew over the Cuckoo’s Nest”...

Comparison of two texts, â€Å"One flew over the Cuckoo’s Nest† and â€Å"To Kill a Mocking Bird† | How do the authors of To Kill a Mockingbird and One Flew over the Cuckoo’s Nest use literary techniques to explore the concepts of isolation? Isolation and courage in the form of racism and discrimination is an analogous concept explored in Harper Lee’s novel To Kill a Mockingbird and Ken Kesey’s novel One flew over the cuckoo’s nest. The authors exemplify the conflicts of isolation displayed by the protagonists and glorifies a broad range of literary techniques to foreshadow the ideas contrasted within the novels. The historical, cultural and social values of society are prefigured throughout the novels displaying the author’s ideas and†¦show more content†¦1962 was known as the freedom summer, which developed the fight for civil rights among black people in the US and worldwide. This historical setting of One Flew Over The Cuckoo’s Nest influenced the ideologies throughout the inscription of this novel. Ken Kesey developed his conceptual ideas of isolation through the setting of the characters. These concepts are developed through the protagonists, B Randle Patrick McMurphy an d Nurse Ratchet. McMurphy challenges all aspects of rules and regulations within the psychiatric ward. McMurphy’s rebellion forces the reader to observe his understanding of insanity. The ward is a metaphor of a social statement being made by the author, perceiving society as the same as the ward; controlled, under authority and McMurphy is an example of chaos, change, and hope for the patients within the ward itself. â€Å"I hide in the mop closet and listen, my heart beating in the dark, and I try to keep from getting scared, try to get my thoughts off someplace else-try to think back and remember things about the village and the big Columbia River† , (chapter 1, lines page, 121, line 23). McMurphy’s actions throughout the novel are foreshadowed thus positioning the reader to question if he’s truly insane â€Å"And the third boy mutters, Of course, the very nature of this plan could indicate that he [McMurphy] is simply a shrewd con man, and not menta lly ill at all. Chapter 2, Line.1, .Page 32-37).

Characteristics of an Effective System of Internal Control Free Essays

1. ) In accounting systems, certain controls are needed to ensure that employees are doing their jobs properly and ensure that the system runs properly. These checks are in the best interest of the organization. We will write a custom essay sample on Characteristics of an Effective System of Internal Control or any similar topic only for you Order Now These controls come in the form of internal controls for the system. The internal controls are the checks that are placed in the system by the company’s own management to prevent the intentional misrepresentation of financial data for one party’s gain at the expense of the organization.Fraud is the primary reason that internal controls are essential in safeguarding assets. To have an effective system of internal control, five objectives must be met. The first, and most important, is the safeguard of assets. If the organization fails to secure assets such as cash or inventory, those assets will silently slip away over time. Second, the employees must be encouraged to follow company policy and work towards the company’s goals. This involves setting in place a set of clear policies that provide fair treatment for all.This leads to the third objective, which is promoting operational efficiency. When employees follow company policy, resources are utilized at maximum capacity, which minimizes waste, lowers cost, and raises profits. Fourth, the company must ensure accurate and reliable accounting records, which are essential in measuring the health of the organization. Without doing so, the company is operating in the dark. Lastly, to maintain legitimacy, the organization must comply with legal requirements. Otherwise, it would not be permitted to conduct business and would cease to exist as an entity.There are also five different aspects involved with the implementation of internal control. It begins with creating a control environment, which starts at the owner and top management level. They should set the example for their employees on how to act ethically within the business and that controls are necessary. Secondly, there should be an accurate system of risk assessment set in place. A company must be able to identify its business risks, as well as to establish procedures for dealing with those risks to minimize their impacts on the company.Third, an accurate and reliable accounting information system should be present within operations. Accurate information is required in order to keep track of assets and to measure profits and losses. This system should be able to record transactions as they occur, journalize them in a timely manner, post them to the company books, and then report them in financial statements. Monitoring the system of controls is the fourth aspect of internal control, and is a very important component. Day-to-day activity must be scrutinized by internal auditors to prevent anomalies. In turn, the control system, along with its overseers, should also be analyzed by external auditors outside of the organization. The final aspect of internal control is the actual control procedures themselves. A primary example of control procedures is the separation of duties, which is considered the cornerstone for safeguarding assets. ?Under the separation of duties procedure, different duties are assigned to different individuals within the organization. This is done in such a way that no one person can have full control over any single transaction.This ensures that an individual cannot have full control over the creation and operating of the system. One reason for this division is having one person controlling the system can result in fraud if that person is not completely trustworthy. Division of duties sets into place a system of comparison. Any individual’s involvement in a particular transaction is checked and compared against another individual’s involvement in the same transaction. For this reason, it is considered the cornerstone for safeguarding assets; because no single individual has complete control over acquisition and reporting of assets.Another reason for the division of duties is to prevent the organization from becoming totally dependent on the person controlling the system. If this person were to leave, then the organization would have no one to run the system. Therefore, the division of duties also ensures that employees can leave without having any major effect on the system. If the separation of duties control has not been set in place, then a very dangerous possibility is left open to the organization. This would allow a single individual to gain custody of an asset, while at the same time, have control over accounting for it.Say, for example, that Matt is the manager of a firm that performs service on credit. Matt collects and processes customer payments on account, and at the same time, Matt is also in charge of the company’s books. Here is what can happen in this situation. Matt writes-in an account-receivable for service performed on credit within the company’s books. A few weeks later, the cust sends a cash payment to cover the entire account-receivable, which Matt has control of handling. Matt decides that his wife deserves a new, and very expensive jewel necklace, which he would normally never be able to afford. Matt sees an opportunity here, so he pockets the rather sizable payment on account made by the customer, and since he controls the books, he writes off the customer account as uncollectible. Matt has just committed fraud for personal gain, at a significant loss to the company. This is case-in-point as to why internal controls like separation of duties are essential in operating a business. In the case of Gretchen Rourke, the accountant for Dublin Limited, Rourke should take immediate action upon discovery of a major accounting error made by her supervisor; be it deliberate or not.First, Rourke should make the error known to the company’s internal auditor(s) as well as her supervisor and his or her authority. The key to the problem is to make multiple people aware of the accounting problem, so that no one individual may have the power to coerce the situation to their advantage. There should be as much transparency as possible in order to correctly resolve the overstatement of n et income. Finally, Rourke should go about making the corrected entries into the company’s books, so that the financial statements reflect an accurate portrayal of the company’s financial status.In the case of Flynn’s embezzlement from Downtown Kalamazoo, there are four ways this could have been prevented. First, Flynn should never have had access to subscriber cash receipts. There should have been one person appointed to receive these payments, and another person appointed to account for them. Second, auditing should have performed regular bank reconciliations, and then they would have seen an inordinate amount of checks being written to Flynn from the company.Third, Flynn should have been required to submit regular budgets and exception reports, so that the board of directors would be made aware of business operation and cash flow within the company. And fourth, regular external audits should have been performed, so that an unbiased view could have questioned where the c ompany’s money was going. Mr Smith: Since you are the store manager, I feel that it is my responsibility to make you aware of an internal control weakness in the operation of the point-of-sale terminals.The main weakness involved is that the terminals do not record the transaction, only sale amounts. Since this is the case, it would be only too easy for a register clerk to collect the stated amount for a transaction, but take part of the payment for himself and record a lesser amount in the register. Each transaction should therefore be itemized so that amounts match items sold. This would prevent any possible theft. Sincerely, Matthew Garrett The missing internal control characteristic for situation (a) is the separation of duties.Since the purchasing agent is responsible for purchasing as well as approving invoices for payment, along with signing the checks, he could write the invoices for any amount he desires and keep the excess for himself. This would never be discovered since there is no supervisor that reviews this purchasing agent’s work. The solution to this problem is to assign a separate person to approve invoices for payment, yet another person to sign the actual checks, and also a supervisor to monitor the agent’s work. Again, the internal control characteristic missing in situation (b) is the separation of duties.The two senior architects are not doing their job while Joyce, the owner, is away on business trips. Yes, they may be performing managerial duties, but are obviously not maximizing efficiency since only one employee is capable of managing the office. The solution is that Joyce needs to hire an interim office manager to run operations while she is away on business. This would ensure that everyone held liable and is performing the functions in which their job title affords them. Once more, separation of duties is the missing component of internal control for situation (c) as well.Durfee should not be performing all accounting duties, plus opening the mail, preparing bank deposits and reconciliations. This allows J. T. too much control over assets and accounting for them. Durfee could possibly steal money, while cooking the books and reconciliations. A separate person should be brought in to open the mail and prepare the bank deposits, and they should be monitored by a superior while performing these duties. Durfee should only be in charge of accounting for these transactions and performing bank reconciliations. How to cite Characteristics of an Effective System of Internal Control, Papers

Mesopotamia Cultures Contribution to the Western Civilization Essay Example

Mesopotamia Cultures Contribution to the Western Civilization Essay Western civilization traces its origin from the cultures of the ancient Near East. This is where the people of Egypt and Mesopotamia developed some organized communities and institutions which can be associated with civilization. [1]The Romans and Greeks played a big role in the development of the Western civilization, the two societies borrowed heavily from the people who lived in the Near East. They were influenced and nurtured by the Mesopotamia societies who lived in this area of the Near East. The Romans and the Greeks served as the transmitters of the culture from the Near East to the other parts of Europe. Dowling,M 2007) [2]The Mesopotamia and Egypt started to build cities at around 3000 BC.They developing writing as a method through which they were to keep records. The same cultures build monumental structures for their gods and as a way to preserve their cultures. (Kramwel, S 1969 45)The cultures had a political ,social ,military and a religious system which dealt with the basic problems that human being experienced .Human   civilization is thought to have began in this area where two society are credited with the ancient civilization. Western civilization is based on the first sophisticated cultures which were found in Mesopotamia. It had so many elements of the culture from the Mesopotamia region, this proves the fact that Mesopotamia cultures contributed greatly towards the Western civilization. Mesopotamia was the first society to have a full system of social order. It had a government, cities and a culture that characterized what is found in western societies save for the little modifications and influences from the other cultures from different parts of the world. Many architectural structures in the Western societies have their origin from the cultures that existed in this region between rivers Tigris and Euphrates. We will write a custom essay sample on Mesopotamia Cultures Contribution to the Western Civilization specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Mesopotamia Cultures Contribution to the Western Civilization specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Mesopotamia Cultures Contribution to the Western Civilization specifically for you FOR ONLY $16.38 $13.9/page Hire Writer [3]The first people to occupy this area were the Sumerians. These people displayed all the characteristics of an advancing civilization. They had cities such as Ur; Eridu and Uruk.The cities were governed by a system which was theocratic in nature. The government controlled the economic activities that took place here. Therefore the semblance of the government appeared in this culture for the first time, it developed over time to be what it is today. The Western societies government systems were a modification of the structures that existed during the Mesopotamia civilization. It was the function of the government to ensure that there was order in the society. In this culture the government was charged with the role of ensuring that people followed the laid down laws. In the western civilization we had the forces which were structured in the same manner as the law and order maintenance forces. (Feverstein, G 2001 134) In the Mesopotamia society there was a set of hierarchy which consisted of the nobles, common people and slaves, each class of the people had a role to play with the nobles as the rulers of the society and occupiers of the highest class in the whole societies. The kingdoms in the western civilization were designed in the same manners where we had the kings and queens together with their families and close relatives making the royal family, there were the commoners and at the bottom of the ladder there were the slaves who were mainly the servants for the royal families and other rich families. [4]As the war broke out in the Mesopotamia region, the Akkadians took over where they introduced and developed the city states and a complete law system. The city states had a government of their own and laws that were made by the council of selected people who represented the rest of the society. The Western societies later emerged with a complete system where we had states or empires which were mostly ruled by the kings and queens, these empires were structured in the same way as the city states that were common in the Mesopotamia region. The rules and laws that were made by the king and his council borrowed heavily from the cultures in the Mesopotamia. The Roman Empire is one of the best examples that had structures resembling the government systems that existed in Mesopotamia. This later spread out the other regions in Europe where several city states were formed in the same systems that were found in the Roman empire which had great influence from the cultures from the near East . (Feverstein, G 2001 154) Mesopotamia cultures did not just leave a government system ,they left other characteristics which were picked by other societies and later spread far and wide where their influence is still felt up to this time. The Sumerians people are believed to be the first people to have conceived the art of writing. This art is believed to have been discovered as a result of a need that emerged in this society. When people started to produce crops, there was surplus which they sold to those who did not have. There was a need of keeping proper records for the produce from the farms. This led to the discovery of a form of writing which helped in the further improvement of agriculture. The scribes formed a very important part of the society in this ancient civilization. The kept records and helped in drafting documents for the government, they were respected people in the society as they helped preserve the culture of the Mesopotamia people. The writing systems spread to other parts of the world going through modifications in the Western Europe region to produce what we have today. Mesopotamia cultures are credited with contributing such an important elements to different cultures around the world. Though there were other forms of writings in the different parts of the world especially in China, this near east ancient civilization is believed to have played a part in the introduction of form writing and keeping of records which was common in western civilization. [5]Calendar represents time; it has been used in different parts of the world to plan for the various activities. People use calendars to plan the activities undertaken in a given time. They plan to plant in a given period of the year, harvest their crops when the time comes, hold festivals in a given time and offer sacrifices to their gods in an appointed time. The calendar gives the specific dates when these activities should be taken. This important record was discovered in the Near East region by the Mesopotamia people. It spread to the other parts of the world through the Romans and Greek civilization. In the Western civilization, the calendar formed an integral part of the lives as it was used to date various periods of the history. Using the records which were developed in the Mesopotamia regions, the western societies were able to document events that took place in different parts of the world at a given part. (Stein, R ,1976 25) Another discovery by the Mesopotamia people that transformed the western societies is the wheel. The agriculture societies of the Near East mostly used water from the river to grow their crops. The irrigation system which had solved the food shortage problem in the western societies had its origin in Mesopotamia. Use of irrigation was made possible through the invention of a wheel where it was used to propel a structure which drew water from the rivers. Through this method the farmers in Mesopotamia were able to get water for consumption as well as for the cultivation purposes. The invention of the wheel played an important role in advancement of agriculture in this area. They were able to cultivate different crops which required water throughout the year using the new discovery; this partly solved the food shortages in this area. Through making the simple machines the people in the Mesopotamia civilization were able to utilize the water in the two rivers to their benefit. They did n ot rely heavily on the rains. They were able to produce crops all year around using simple machines which were propelled by the wheel. This discovery was embraced by the other cultures especially the Romans and the Greeks who later modified it to form carts which were had wheels as the propelling gadget. The cart and wheel were used as a means of transport in the ancient Roman civilization. The Western civilization played a role in the further modification of this invention later giving rise to the cars and bicycles which were developed during the industrial revolution in Western Europe. Mesopotamia cultures are credited for the invention and development of the wheel, a gadget that transformed the lives of people as the modification of this discovery in the western civilization gave rise to the means of movement that are found in the present world. Through their simple discovery, Mesopotamia people helped in changing the transport industry through bringing efficient means which people can use to make their work easier. [6]The Mesopotamia cultures began to use metal tools making a big step towards technology. The use of these tools was embraced by the other cultures that developed them gradually to produce the tools we have presently. The Western societies are credited with the modification of these discoveries which had their initial origin from the Near East region. (Stein, R ,1976 103) The Mesopotamia people are closely related with introduction of mathematics, geometry and astronomy some of the most important aspects of the Western civilization. The field of science was embraced by the western societies moving it to the next level where several discoveries were made by the Western scientist in the course of time. These discoveries came to change the course of the world history. The core of the western civilization truly rests with the Mesopotamia cultures which shaped the course of the world history. The western societies have benefited from the countless aspects from this ancient civilization from the Near East. Right from the government system, society order, architectural structures, and technology this society would not be what it is today were it not from the contribution from the Mesopotamia cultures through the assimilation process of the Greek and Romans civilizations.

Nbp Internship Report Essays

Nbp Internship Report Essays Nbp Internship Report Essay Nbp Internship Report Essay Management Theory Practices by Robbins 7th Edition VI. Investment by Charles P. Jones 12th Edition VII. Mr. Azeem (Teacher N. K FACT) VIII. Mr. F. R Tariq (Teacher N. K FACT) IX. Mr Ayub (Branch Manager DHA) X. Fundamental of Financial Management by James C. Van John Wachowicz 12th Edition XI. Corporate Finance by Brealey Myers AIOU T-520728 1 Annexes Corporate Information Board of Directors Chairman President Syed Ali Raza Muhammed Ayub Khan Tarin Sikandar Hayat Jamali Azam Faruque Mian Kausar Hameed Ibrar A. Mumtaz Tariq Kirmani Muhammed Arshad Chaudhry Audit Committee Chairman Azam Faruque Ibrar A. Mumtaz Mian Kausar Hameed Auditors Chartered Accountants Ford Rhodes Sidat Hyder Co. Chartered Accountants M. Yousaf Adil Saleem Co. Legal Advisors Advocates Legal Consultants Mandviwala Zafar Registered Head Office NBP Building I. I. Chundrigar Road, Karachi Pakistan Wesbsite www. Nbp. com. pk AUDITORS’ REPORT TO THE MEMBERS We have audited the annexed balance sheet of National Bank of Pakistan (the Bank) as at December 31,2007 and the related profit AIOU T-520728 2 nd loss account, cash flow statement and statement of changes in equitytogether with the notes forming part thereof (here-in-after referred to as the ‘financial statements’) for theyear then ended, in which are incorporated the unaudited certified returns from the branches except for sixtybranches which have been audited by us and twelve branches audited by auditors abroad and we state thatwe have obtained all the information and explanations which, to the best of our knowledge and belief, werenecessary for the purposes of our audit. It is the responsibility of the Bank’s Board of Directors to establish and maintain a system of internal control,and prepare and present the financial statements in conformity with approved accounting standards and therequirements of the Banking Companies Ordinance, 1962 (LVII of 1962), and the Companies Ordinance,1984 (XLVII of 1984). Our responsibility is to express an opinion on these statements based on our audit. We conducted our audit in accordance with the International Standards on Auditing as applicable in Pakistan. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of any material misstatement. An audit includes examining, on a test basis, evidence supporting amounts and disclosures in the financial statements. An audit also includes assessing the accounting policies and significant estimates made by management, as well as, evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion and after due verification, which in case of loans and advances covered more than sixty percent of the total loans and advances of the Bank, we report that: (a) In our opinion proper the Bank as required by the Companies Ordinance, 1984 (XLVII of 1984) has kept books of account and the returns referred to above received from the branches have (b) In our opinion: AIOU T-520728 3 I) The balance sheet and profit and loss account together with the notes thereon have been drawn up in conformity with the Banking Companies Ordinance, 1962 (LVII of 1962), and the Companies Ordinance, 1984 (XLVII of 1984), and are in agreement with the books of account and are further in accordance with accounting policies consistently applied; (ii) the expenditure incurred during the year was for the purpose of the Bank’s business; and (iii) The business conducted, investments made and the expenditure incurred during the year were i n accordance with the objects of the Bank and the transactions of the Bank which have come to our notice have been within the powers of the Bank; (c) in our opinion and to the best of our information and according to the explanations given to us the balance sheet, profit and loss account, cash flow statement and statement of changes in equity together with the notes forming part thereof conform with approved accounting standards as applicable in Pakistan and give the information required by the Banking Companies Ordinance, 1962(LVII of 1962), and the Companies Ordinance, 1984 (XLVII of 1984), in the manner so required and give a true and fair view of the state of the Bank’s affairs as at December 31, 2007 and its true balance of the profit, its cash flows and changes in equity for the year then ended; and ASSETS National Bank of Pakistan Categories of shareholders AIOU T-520728 4 Particulars Percentage Shareholders GOVERNMENT OF PAKISTAN THE PRESIDENT OF PAKISTAN STATE BANK O F PAKISTAN ASSOCIATED COMPANIES NIT ICP BANKS, DFI NBFI INSURANCE COMPANIES MODARABAS MUTUAL FUNDS GENERAL PUBLIC (LOCAL) GENERAL PUBLIC (FOREIGN) OTHERS 301 22. 6250 FOREIGN COMPANIES COMPANY TOTAL 2 2 1 2 3 62 25 74 9355 241 .3251 . 0778 75. 1979 . 0006 . 5524 3. 0639 2. 7156 4. 4091 3. 8406 . 1305 54 7. 0609 10122 100. 0000 AIOU T-520728 5 Objective of studying the organization The following are the main objectives of studying the organization My Objective is to get maximum information about the National Bank of Pakistan regarding: Finance system of organization Accounting system of organization Get information about organization structure of NBP In finance system the purpose is to make financial analysis of bank balance sheet income statement to check the true position of the bank worth and its creditability in market through different analysis like as: Ratio analysis Profit analysis Vertical analysis Horizontal analysis AIOU T-520728 6 In Accounting system of the organization we study how the accounting networks operate in NBP what kind of accounting software operate in head office other branches across the country. Another purpose is to study the organizational structure of NBP and getting information about: How many branches around the country and outside the country. What is the structure of branch What is the organ gram of bank AIOU T-520728 7 Objectives National bank of Pakistan believes in the phrase â€Å" increase profitability and increase earning per share. Its objective is to enhance its investment and excellence in services products and services. Service excellence is one of the objectives of NBP. Bank focus is on Foreign Trade as primary niche of business. NBP objective is the complete automation and computerization of all of its banking activities. They are committed to put all their energies, resources and time to bring higher value And satisfaction to their customers, employees and shareholders. The introduction and development of innovative financial instrument will be another major objective of National bank of Pakistan. Core values Highest standards of integrity Institutionalizing a team work and performance culture Excellence in service Advancement of skills for tomorrow challenges AIOU T-520728 8 Value creation for all stakeholders Awareness of social and community responsibility AIOU T-520728 9 Overview of the organization History: NBP was established under the National Bank of Pakistan Ordinance 1949 in Pakistan. Special Role of NBP occupies a unique position in the financial sector of Pakistan. It acts as an agent of the Central Bank wherever the State Bank does not have its own Branch. It also undertakes Government Treasury operations. Ownership: NBP is 100% owned by the Government of Pakistan (GoP). Branch Network NBP has an extensive domestic branch network of over 1500 branches located all over Pakistan. The Bank also has a presence in 24 international locations including the USA, United Kingdom, Europe and the Far East. Deposits NBP holds 24. 6% share of time and demand deposits in the country. Local currency deposits comprise 67% of bank’s total deposits while foreign currency deposits account for the rest. Assets NBP’s total assets stood at PKR350 billion on December 1999. This included total earning assets of about PKR268 billion with gross loan portfolio of PKR140 billion. The bank also has an investment portfolio of PKR91 billion, which comprises treasury securities, corporate bonds, shares and other securities. Equity: As of December 1999 NBP had a paid-up capital of PKR1. 46 billion divided into 146 million shares of 10 rupees each. Total shareholders’ equity was PKR10 billion, however, revaluation reserve has increased shareholders’ funds to PKR16 billion. NBP AIOU T-520728 10 NBP HISTORY NBP continued its journey of success based on our strategy of serving clients better a company agile enough to take advantage of its unique domestic and international footprint, capitalizing on the largest balance sheet and customer base in Pakistan with high cross sell potential. Our standalone AAA rating (the highest in the industry), our RoE, which is amongst the highest in the Asian banking industry, and our comfortable capital adequacy ratios, position us well in front of our competitors for future growth. Year 2007 has been an outstanding year with the bank recording the highest profit in its history. Our wide range of product offering, large branch network and committed workforce are some of our fundamental strengths that enabled us to achieve exceptional results in a very competitive market. The pre-tax profit increased to Rs. 28. 06 billion, an increase of 6. 6% over last year. Earning per share jumped by over 11. 7% from Rs. 20. 88 in 2006 to Rs. 23. 34 in 2007. Pre- tax return on equity stood at 45. 9%, whereas pre-tax return on assets stands at 4. 1% and cost to income ratio of 0. 30 remained one of the highest in the sector. These results were possible despite the fact that NBP had to make additional provision of over Rs. 3 billion as a result of withdrawal of Forced AIOU T-520728 11 Sales Value (FSV). This year NBP also availed the offer to redeem up to 10% of its holding in NIT Units held by the bank under Letter of Comfort (LoC) arrangement, this sell off resulted in a Capital gain of Rs. 1. 8 billion. Increase in pre-tax profit was achieved through strong growth in core banking income. Net Interest income increased by Rs. 3. 5 billion (11. 5%) due to better yields and volume driven growth spurred by increase in consumer loan portfolio. Dividend income and Capital Gains also made a healthy contributions it increased by Rs. 371 million and Rs. ,145 million over 2006 respectively mainly owing to higher dividends from NIT Units as well as Capital gains recorded on sell of 10% NIT Units. Advances increased by Rs. 25 billion due to impressive contribution by all business units. Deposits increased by a heal thy Rs. 90 billion or 18% over last year. The banks NPL provision coverage ratio also stands at an impressive 84%. AIOU T-520728 12 Business volume Five year performance at a glance (In millions) Year 2003 2004 2005 2006 2007 Deposits 395,492 465,492 463,427 501,872 591,908 Advances 161,266 220,794 268,839 316,110 340,677 Revenue 24,544 29,204 43,058 56,263 64,114 AIOU T-520728 13 Product lines CONSUMER BANKING Current account Foreign Currency Account PLS account Rupees Travelers Checks Defence Saving Certificates Monthly Income Account Money Gram Safe Deposit Lockers Home finance NBP karobar NBP kissan dost NBP cash card CORPORATE BANKING Current accounts Foreign currency accounts Clearing Funds transfer Trade services Overdraft facilities Term loans Project financing Agriculture financing Industrial financing AIOU T-520728 14 CONSUMER FINANCING Car financing NBP debit cards Personal loan Housing finance NBP rozgaar NBP advance salary ELECTRONIC BANKING ATM Online Banking Phone Banking E-Banking AIOU T-520728 15 ORGANIZATIONAL STRUCTURE Organizational Structure describes the rganization’s formal framework or system of communication and authority. In other words, the organization structure sets forth each principal, management position and helps to define authority, responsibility and accountability. An organization chart is essential to the development of a cost system and cost repo rts which indicates the responsibilities of individuals for implementing management plans. In NBP President / CEO is the head of the bank, ie State management, Finance, Technical, Operations, HR Admin and Corporate affairs. So Senior Executive Vice President (SEVP) who are the head of these units generally reports directly to the President. The main purpose of NBP is allowing them to effectively and efficiently accomplish organizational goals and objectives. Designing an appropriate structure means that managers must decide how to coordinate work activities and efforts both vertically and horizontally. AIOU T-520728 16 AIOU T-520728 17 Branch organgram CHIEF MANAGER / BRANCH MANAGER Manger Operations Manager International Banking Manger Credits Accounts Departmen t Imports Departmen t Leasing Departmen t Cash Departmen t Exports Department Home finance Department Account opening Department Foreign Exchange Department Remittances Department Car finance Departmen Credit card Departmen t Internal Audit Department Marketing Department Clearing Department AIOU T-520728 18 REGIONAL OFFICES 1 Karachi (south) 2 Karachi (west) 3 Hyderabad 4 Larkana 5 6 7 8 9 10 11 12 13 14 15 Sukkur Quetta Gawadar Lahore (east) Lahore (central) Gujranwala Sialkot Faisalabad Jhang Sargodha Multan 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Bhalwalpur Dera shazi khan Sahieal Federal Islamabad Rawalpindi Jhelum Gujrat Gilgit Peshawar Mardan Dera ismail khan Abottabad Muzaffarabad Mirpur capital Web site: www. Nbp. com. pk AIOU T-520728 19 18 OVERSEAS BRANCHES United states of America France Germany Bahrin Turkmenistan Pakistan epz Afghanistan 2 1 1 1 1 1 2 Bangladesh Republic of korea Kyrgyzstan Japan Hong kong Azerbaijan 2 1 1 2 2 1 AIOU T-520728 20 REVIEW OF VARIOUS DEPARTMENTS OF THE ORGANIZATION IN TERMS OF THEIR FUNCTIONS AND RESPONSINILITIES Corporate Banking The Corporate Banking Group achieved excellent results in 2007 with a number of land mark transactions in cement, energy, communication and fertilizer sectors. In addition to the funded income our corporate and investment banking has substantially increased its fee base income this year by being the lead advisor in a number of transactions in the Corporate world of Pakistan. The challenges to corporate business in year 2007 were manifold, including reduction in private credit investment as a result of slowing down of economy as well as rising interest rates. The increasing pressure on the textile industry reduced the lending to this sector. In addition the bank’s corporate loans yields also faced pressure as substitute form of funding sources are available in the market in form of Islamic financing, mutual funds, issuance of debt instruments like TFCs and Bonds and the Capital markets. AIOU T-520728 21 Despite these threats and challenges at NBP our corporate team not only increased the volume as well as the yield of the loans they also maintained a strong franchise with the leading Pakistani corporate so as to ensure that NBP not only maintains its market share but is in a position to meet any challenges in future. NBP during the year also participated in a number of TFC issues and mutual funds subscriptions thereby increasing the overall yield on investment portfolio. NBP has the largest equity portfolio in the banking sector primarily due to 27% holding in NIT units, the largest mutual fund in Pakistan. During the year the bank redeemed 10% of its NIT holding covered under LoC , which resulted in capital gain of Rs. 1. 8 billion. AIOU T-520728 22 Retail Banking NBP Karobar’ under the â€Å"President’s Rozgar Scheme† recorded excellent growth after its full launch in April 2007. This is a unique product launched to tap into the un- banked and actually the so poor people of Pakistan and targeted towards the unemployed youths aged between 18 to 45 years. This product not only serves the bank’s commercial strategy but is also an effort toward poverty alleviation in the country. It is a unique Public – Private partnership where debt servicing is shared by the government, as well as providing free life and disability insurance. The portfolio at year end was over Rs. 2 billion. The target is almost 1. 8 million customers in the next five years. There are exciting new income generating products in the pipelines to achieve the targets of NBP. The income generation targeted is in excess of ten thousand rupees net per month for each customer. The bank plans on disbursing almost Rs 100 billion which will touch the lives of almost thirty million citizens. The flagship NBP ‘Advance Salary’ product continued to grow in 2007 and maintained its position as the single largest product in the country with its accumulated disbursement crossing Rs. 115 billion. The number of organizations whose employees are entitled to avail this scheme is gradually being increased ensuring continued growth. The latest addition is the Pakistan Army and the target is almost half a million new customers in the next three years in addition to the AIOU T-520728 23 existing base of one million satisfied customers approximately. Our retail banking is expanding its reach to its diversified customer base by offering new services and products through new delivery channels so as to minimize counter traffic, increase product offering and reduce administrative costs. NBP Saibaan is a home equity loan product that was introduced in August 2003. Loans, are available to Pakistani residents to finance the purchase, construction or renovation of a home, as well as for the purchase of land and the subsequent construction of a home thereon. We are the only bank in Pakistan to offer home equity loans throughout the country. NBP Saiban has witnessed growth of 77% in 2007, one of the highest in the sector. The development of alternate delivery channels, use of I. T. , and leveraging large customer base for cross selling potential are the key strategies of NBP for increasing its retail business. NBP holds 16% market share in the consumer loan business and we aim to increase it gradually without compromising on the quality of portfolio. Our call center is a value addition in the customer services and provides overall support to our retail products. It is a unique technology as it is not service provider specific and free calls can be made to the NBP ‘Help Line† on 0800 800 80 from any land or cell phone in the country AIOU T-520728 24 Commercial Banking We plan to establish commercial centers across the country looking at the business potential in the area, size of the branch and its capabilities to deliver the desired service in order to attract quality customers. The objective is to target the untapped sectors and provide them professional quality service, through one window operations and Relationship Managers stationed at those centers. We expect and hope to reduce the turn around time and become more competitive and market oriented. Further this customer friendly and dedicated set up at convenient locations would help in improving the image of the Bank as well. These Centers would work in conjunction with the existing set–up of Commercial Lending done throughout the NBP branch network. The main purpose of these centers is to generate ancillary business in addition to funded and non funded facilities, with quick turn around time in decisions for customer satisfaction. AIOU T-520728 25 Agriculture department NBP remains the largest agriculture lender in the banking sector in Agriculture with approximately 300,000 borrowers and gross disbursement of Rs. 2 Billion during the financial Year 2006-2007. Our vast domestic branch network having 45% branches in rural areas and unique Product offering under the banner of â€Å"Kissan Dost† provides us competitive edge over our peer banks. Our specialized Agricul ture, Filed Officers, being Agriculture graduates are trained to understand the needs and limitations of our borrowing farmers as well as versed with the latest trends in Agriculture production technology providing technical guidance and specialized services to our customers. Deposits NBP is the largest bank in terms of deposit. Our large clientele and confidence of our depositors belonging to all walks of life is a major strength. We have shown appreciable growth of 18% in deposits on YoY basis which is significant from the view point that with the consolidation in the banking sector competition for deposits is ever increasing. We are branding our liability products and will continue to AIOU T-520728 26 develop new liability side products for continuing our leadership position in this business. This year we introduced three new liability products; NBP Premium Saver account, NBP Premium Mahana Amdani account and NBP Enhanced Saver account. These schemes have received excellent response from the customers and we expect healthy growth in future under these and new products that the bank is going to launch on the liability side. Given the large base and competition in the banking sector, the bank’s performance is commendable in increasing its deposits by Rs. 0 billion especially low cost deposits. Special Assets Management With a provision coverage of 84% we believe that going forward our Special Assets Man agement Group will make major contribution towards the Bank’s profitability through recoveries and reversal of provision charge as a result of declassification / rescheduling. We have revamped our special assets management business and have coordinated our efforts to expedite recoveries and settlements. AIOU T-520728 27 International Operations NBP has the largest international franchise in terms of Assets. We are present in four continents and have branches in all the countries that are major trading partners of Pakistan. Our unique coverage of Central Asia, Fareast and South Asia is incomparable and we will be the major benefactor once the trade business from the Energy rich Central Asian Republics picks up. The bank is planning to start operations in Saudi Arabia (mid 2008) and further expand our branches in Afghanistan and Bangladesh. The bank’s international operations strategy is focused towards increasing trade business and expand where the bank has competitive advantage. Islamic Banking The year 2007 marked the first year of Islamic banking operations. During the year under review, in addition to active participation in various Sukuk transactions, two more Islamic banking branches at Lahore and Peshawar started operations. NBP’s plans for the year 2008 include opening of Faisalabad and Rawalpindi branches with the focus on growing organically by opening more standalone Islamic banking branches, utilizing NBP’s existing branch network of 1,200 plus conventional branches and looking into strategic acquisitions for expansion in this field. AIOU T-520728 28 Treasury NBP has the largest treasury in terms of size. We are a major player in the foreign exchange and money markets and are a primary dealer of government securities. We have the capabilities to offer structured products to our customers as per their needs. Financial Institution and Cash Management NBP offers correspondent banking services through its overseas branches and more than 500 correspondent banks across the globe under the umbrella of Financial Institutions Cash Management Division. Our strategy is to build strong, long-term, multi-level relationship with financial institutions. We are optimally utilizing our extensive domestic branch network by offering structured products to our corporate customers. NBP has taken various measures to facilitate overseas Pakistanis to bring their home remittance back to the country in a convenient and efficient manner. AIOU T-520728 29 Operations We are committed and focused towards good quality customer service and in 2007 with the motto of ‘Putting as smile on our Customers face’; we made concerted efforts and took a number of initiatives. Workshops and seminars were conducted to disseminate the very important message of â€Å"excellent customer service†. We are transforming our branches to give a modern look and convenience. A number of branches have been shifted to prominent and spacious locations. We also have established specialized customer facilitation centers to exclusively cater to pension payments, utility and government collections. These are expected to reduce counter traffic at our branches and will increase our distribution channels for better and convenient services. Business hours have been extended with establishment of customer facilitation offices at the regional levels to help on the spot resolution of customer complaints. AIOU T-520728 30 Information Technology Today banking is becoming more and more mechanized and it is the I. T. support that can improve the customer service and reduce cost at the same time. At NBP we have elaborated plans for transformation of the entire I. T. architecture of the bank by implementing core banking solutions. The said echnology will not only increase our distribution capabilities by many folds but will also simplify our internal procedures thereby reducing the transactional cost and lead time for service. NBP has started a num ber of projects in relation to I. T. structure up-gradation. The bank is expanding its ATM network and connectivity to further expand our reach to the customers. This year we completed our automation of the government’s tax collection services thereby opening new opportunities for such services on behalf of other organizations. NBP is also looking into other I. T. products for salary and pension disbursements and E banking for better services. AIOU T-520728 31 Human Resource For NBP our dedicated staff is a key strength. NBP has been investing in developing this valuable HR through need base training and career growth development. Our objective is to become an employer of choice and to maintain complete industrial harmony within the institution. Our new hiring of top class MBAs as Management Trainee Officers (MTOs) and search for talent within the bank has helped in preparing second and third tier leadership lines which will shape our succession planning process and at the same time will ensure that with the passage of time our employee refinement and skill enrichment program continues. We also have started new ‘Employee communication program’ and internal organizational magazine to improve the interaction of top and middle level management with the lower management. Female employees are being encouraged through female empowerment program under which they are given responsible and challenging assignments. Currently over 60 females are employed as branch managers all over the country and some females hold senior management positions. AIOU T-520728 32 Credit and risk management NBP is continuously upgrading its risk management process to identify, evaluate and manage risk. During the year the bank established an Operational Risk Management Unit to supplement its already established Credit and Market risk units for comprehensive risk management. Our risk management in terms of adoption of Basel II guidelines is on time and is advancing smoothly with completion of internal gap analysis. Our Credit management system is based on elaborated risk assessment and credit rating system to ensure a very objective and timely assessment of each proposal. We have our internal filtration systems and approval hierarchy to ensure that proper authority and responsibility is established and at the same time to reduce the lead processing time of the credit application. We have proper monitoring system and have also setup a separate Credit Administration Department (CAD) to further improve our credit monitoring function. AIOU T-520728 33 ACCOUNTING SYSTEM OF THE ORGANIZATION These financial statements have been prepared in accordance with approved accounting standards as applicable in Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board and Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan as are notified under the Companies Ordinance, 1984, the requirements of the Companies Ordinance, 1984, the Banking Companies Ordinance, 1962 or directives issued by the Securities and Exchange Commission of Pakistan and the State Bank of Pakistan. Wherever the requirements of the Companies Ordinance, 1984, the Banking Companies Ordinance, 1962 or directives issued by the Securities and Exchange Commission of Pakistan and the State Bank of Pakistan differ with the requirements of IFRS or IFAS, the requirements of the Companies Ordinance, 1984, the Banking Companies Ordinance, 1962 or the requirements of the said directives prevail. The financial results of the Islamic banking branches of the Bank have been consolidated in th ese financial statements for reporting purposes, after eliminating intra branch transactions / balances. Key financial figures of the Islamic banking branches are disclosed in note 42 to these financial statements. AIOU T-520728 34 During the year, the Bank has increased its authorised share capital from Rs. 7,500 million (750,000,000 ordinary shares of Rs. 10/- each) to Rs. 10,000 million (1,000,000,000 ordinary shares of Rs. 10/- each) as approved by shareholders in their general meeting held on April 02, 2007. National Bank of Pakistan (the bank) was incorporated in Pakistan under the National Bank of Pakistan Ordinance,1949 and is listed on all the stock exchanges in Pakistan. Its registered and head office is situated at I. I. Chundrigar Road, Karachi. The bank is engaged in providing commercial banking and related services in Pakistan and overseas. The bank also handles treasury transactions for the Government of Pakistan (GoP) as an agent to the State Bank of Pakistan (SBP). The bank operates 1,243 (2006: 1,232) branches in Pakistan and 18 (2006: 18)overseas branches (including the Export Processing Zone branch, Karachi). Under a Trust Deed, the bank also provides services as trustee to National Investment Trust (NIT) including safe custody of securities on behalf of NIT. In accordance with the directives of the Federal Government of Pakistan regarding the shifting of the banking system to Islamic modes, the SBP has issued various circulars from time to time. Permissible form of trade related mode of financing includes purchase of goods by the bank from their customers and immediate resale to them at appropriate mark-up in price on deferred payment basis. AIOU T-520728 35 The purchases and sales arising under these arrangements are not reflected in these financial statements as such but are restricted to the amount of facility actually utilized and the appropriate portion of mark-up thereon. The US Dollar amounts shown on the balance sheet, profit and loss account and cash flow statement are stated as additional information solely for the convenience of readers. For the purpose of conversion to US Dollars, the rate of Rs. 62. 0 to one US Dollar has been used for both 2007 and 2006 as it was the prevalent rate as on December 31, 2007. These financial statements are separate financial statements of the bank in which the investments in subsidiaries, associates and joint ventures are accounted for at cost and hence not on the basis of reporte d results and net assets of the investees. AIOU T-520728 36 FINANCE SYSTEM OF THE ORGANIZATION The Head office of the National bank of pakistan controls all financial activities and system of NBP. All financing decisions, capital budgeting decisions and processing on real and financial assets are major responsibilities of finance department of NBP. Necessary future plans and projects are analyzed and selected as per their positive results i. e; (Investment decision) start Islamic branches. of new conventional and Lending and borrowing decisions are also made as per loans, interest rates, time period and lending agencies and banks etc. Necessary sanctions of write-off and depreciation rate are also issued by the finance department. Finance department also plays a vital role in coordination, with dividend policy matters, internal and external auditors and share registrars. Pensions, insurance, preparation of budget and taxation dealings are also important factors of NBP finance department. Finance department of the NBP takes all financing decisions relating to the new investment in the country or in foreign country NBP involves in all Government financial decision making and also provide finance to the Government and Government agencies AIOU T-520728 37 Charts of Finance/Accounts Chief financial officer CFO (EVP) Financial accounts SVP Taxation VP Equity investment VP Manager finance North Manager finance South Manager taxation North Manager taxation South Manager Eqt inv North Manager Eqt inv South AIOU T-520728 38 Chart Of Audit Group Chief Of Audit (SEVP) Internal Audit Dept VP Admin (AIG) AVP Systems support VP EDP Audit Dept VP Monitoring Dept VP AIOU T-520728 39 ROLE OF FINANCIAL MANAGER IN NBP The financial plays a vital role in a banking company. The main role of the of manager is to see external factors like pestel framework of the company he is a team player in the overall effort of a company to create value. The key responsibility of the financial manager is to adapt change, raise funds, invest in the assets. and manage wisely all financial matter. Three things which financial manager does: Investment decisions Financing decision Asset management Financial manager in NBP or CFO takes all financial decision NBP investment banking focuses on origination and execution of project finance. Corporate finance. And acquisitions and mergers assignment associated with financing solutions. Financial manager also takes a steps with the provisions coverage of 84% we believe that our special assets management group will make major contributions towards the bank profitability through recoveries and reversal of provisions. Financial in NBP takes a decisions about where we invest our capital which investment give us better profit and also takes a AIOU T-520728 40 decision about what kind of assets we will buy which is best utilize for our operations. He also concentrate and maintained balance in advance to general public and deposits and use asset management liability approaches. AIOU T-520728 41 USE OF ELECTRONIC DATA IN DECISION MAKING Mostly offices of NBP are well equipped with computers and EDP facilities. Data is recorded on CDs and these CDs are sent to Finance department. Director. This data is fed in a main SERVER for use of different sections in decision making. For example balances of General Provident Fund, House Building Advance and Motor Cycle/Car Advances, Pay roll, etc are needed in pension section to prepare final emoluments of a retiring employee. This requisite information’s are taken from this SERVER (Book Budget Record Section) for necessary decision. NBP has a sound MIS System which helps all other departments in decision making and also to preserve it for future needs. Recently, the organization provides a separate internet connection to all its officers, so that they may connect to higher management regularly, keep their knowledge fresh about organization strategies/affairs and also for correspondence to other officers and higher management. AIOU T-520728 42 Sources of funds Funds are mainly generated through two main sources Decrease in assets Sale of fixed assets Redemption of long term investment Reduction trade debtor Increase in claim Deposits Long term loans Short term loans Equity (stocks + retained earning) AIOU T-520728 43 Generation of funds Following are the major sources of funds of NBP 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. Issued, subscribed and paid up capital. Long term and short term loans Income from operations Funds from securities Funds from Gross provident Funds Income from its subsidiaries in foreign domestic Interest on loans Sale of treasury bills Profit on investment Securities as collateral Borrowing from financial institution Issuance of bonus shares, right shares, preferred shares Issuance of different types of bonds, debentures, Income from leased assets Return on repurchase agreement Sale of securities Letter of credit Income from derivative securities AIOU T-520728 44 Allocation of funds In NBP funds are allocated by a sound system of charts of accounts. All the Drawing and Disbursing Officers are assigned their specific code-range through which necessary budgets and grants are allocated. All the heads have also their code numbers which is easy to computerize. 1) All the current assets allocate in current liabilities and current advances 2) All the short term funds allocated in short term investments 3) All the long term funds and loans invested and utilizes in long term investment and in long term projects according to principles of assets liabilities management 4) Funds are allocated in domestic foreign investment 5) Dividend payments 6) Financial cost (Interest markup payments) 7) Operating expenses 8) Fixed assets (purchasing of buildings, fixture and furniture) 9) Tax payments 10) Marketing and product promotion AIOU T-520728 45 CRITICAL ANALYSIS OF THEORETICAL CONCEPTS RELATING TO PRACTICAL EXPERIENCES (FINANCE DEPARTMENT) In my opinion, The Finance Department of the NBP has complied with all the material requirements of the Code of Corporate Governance. Proper accounting system is followed to record, classify, and summarize accounting data and information in conformity to Companies Ordinance 1984 and International Accounting Standards as applicable in Pakistan. My findings are as follow: Proper books of accounts of the company have been maintained. The financial statements prepared by the management of the Company present fairly its state of affairs, the result of its operations. Appropriate ccounting policies have been consistently applied in the preparation of financial statements and accounting estimates are based on reasonable and prudent judgment. International Accounting standards, as applicable in Pakistan, have been followed in the preparation of financial statements and any departure there fro m has been adequately disclosed. The system of internal controls is sound in design and has been effectively implemented and monitored. There are no significant doubts about the company’s ability to continue as a going concern. AIOU T-520728 46 There has been no material departure from the best practices of corporate governance, as detailed in the listed regulations. The NBP is not fully computerized yet and for this reason there are few problems like slow reporting, less efficiency, etc. further more all employees of finance department do not have sufficient computer skills to carry out the routing work of the finance department on computer based system which in turn reduces the overall efficiency of the finance department of the company. The company is not providing any proper training to the staff of finance department on new technologies to update their knowledge which also affects the performance of the finance department. All accounts and finance offices are not interconnected due to this reason communication between these departments gets slow that affects performance of the department. Receivable management of the company is not very good as there are huge amounts of outstanding bills are over due and yet to be collected. AIOU T-520728 47 FINANCIAL ANALYSIS Financial Analysis is crucial for understanding the working of any organization. Any business whether it possesses extremely popularity but cannot survive without proper financial management and that can be done through analysis of its statements. I have made financial analysis of National bank so that I can have better understanding and knowledge about the organization where I did my internship. I have focused on: Ratio analysis Financial statements are necessary for financial analysis as they give us the true figures. Statements that I needed for analysis of National bank are: Balance Sheet – Financial Position Profit and Loss Account - Financial Performance BALANCE SHEET Balance sheet contains assets, liabilities and shareholders equity and tells us about financial position of the firm. PROFIT AND LOSS ACCOUNT Profit and loss account shows incomes and expenditures of the organization and tells about financial performance of the firm. I have made analysis on the basis of last five years for assessing the current year’s position and performance. The statements of the bank for the financial year 2003 to 2007 are as under. AIOU T-520728 48 Interpretation of horizontal analysis Horizontal analysis of balance sheet can be supplemented by the expression of items relative to a base year. For National Bank of Pakistan the base year is 2003, for example comparing NBP cash bank balance in 2004 is (94,446,552) with cash bank balance in the base year 2003 is (64,232,588) the index would be 94,446,552-64,232,558 *100 = 47. 03% 64,232,558 All the other calculation is based on this formula we calculate the data of five year. As we see the analysis the change in percentage is clearly show the change in the items of balance sheet year to year. As we see in the analysis the cash bank balance is increase 47% in 2004 but gradually it is increasing with decrease rate and at the end in 2007 it is increases 48% this is due to change in liquidity of the bank. Balances with other bank is increases 26% in 2004 and decreases in the remaining year which effect assets. Lending to financial institution is increasing continuously and highest increase in year 2006. n the other hand investment is decreasing continuously and increase in last year which is good sign. Advances to the customer is also continuously increasing and high in 2007, this is increases due to increase in deposits of the bank as more the advances the more interest earned which ultimately increase the profit. The bank fixed assets and other assets is also continuously increases. On the other side (liability) of balance sheet analysis shows the bill payable is increasing through out the five year which increase the liability of bank, the borrowing of bank from financial institution is highest increases in 2004 and decrease in the remaining year as compared to base year. he tax liability of bank is also increases in 2004 2005 but decreases in 2006 2007 which is good impact on whole liability. Liability against lease assets is high in the year 2007 . the deposits of the bank is sharply increases which is life blood for bank and good impact on bank financial position this deposits is increase due to attraction and confidence of customer on this National bank and bank in the position to advances and ge t profit. If we see as a whole the bank total liability is increasing from 2003 to 2007 but bank assets is also increases with high rate from 2003 to 2007 which strengthens the position of bank. On the other hand share holder equity is also increasing during five years as well as reserve of bank is also increased. ver all bank going in positive and booming position in five year and its deposits increase sharply due to this increase finance department take good decision and utilized it into investment, advances and in operating activities which give lot of return in terms of interest earned and profit on investment. AIOU T-520728 49 AIOU T-520728 50 Interpretation of vertical analysis In the vertical or common-size analysis, we express the different components of a balance sheet as percentage of total assets of the bank and total liability of the bank. These are obtained by following method : 64,232,588 *100 =13. 7% 468,972,871 In the above analysis of balance sheet it shows that how the items of balance sheet change in terms of total assets and total liabilities. In the year 2003 the cash balance of bank is 13. 7% that show the good position of liquidity. And it is increased in 2004 and decreased in 2005 and remains constant in remaining year. It is decrease due to utilization in operating activity and mark up expenses. Same situation as bank balances high in 2004 and continuously decreases due to operating expenses. because expenses continuously increases during past five years. Lending to financial institution is high in 2006 as percentage of total these lending includes call money, repurchase agreement and bands higher the lending higher the return in terms of interest or capital cost. If we see in liabilities side as the deposits increases the lending is also increases. that show the management of finance department. Investment is also increases in terms total assets of bank finance department proper utilizes the assets of bank by investing the deposits of bank these investment is purchasing the different trading and market securities which give maximum return. Advances of NBP is increases continuously in terms of total assets. it is also related to liability against. advances increases due to increased deposits as the deposits percentage as total liabilities increases advances increases and it is also due to in time decision of finance department that utilization their deposits wisely in advances these advances includes the cash, credit loans, consumer loan secured and unsecured advances and short term, long term loans and foreign loans. AIOU T-520728 51 In liabilities side the main items we see is deposits which is 90% of total liabilities through out the five year which show its importance in whole financial statements, which life blood of bank. deposits includes the saving, current, and other types of deposits which show customer show confidence of NBP. In the assets side of balance sheet three items includes investment, advances and liquid assets is 75% of total assets through the five years. It is also directly related to deposits of bank and we can say in one word â€Å"deposits is utilized in advances, investment and liquid assets. without deposits we can’t runs NBP†. RATIO ANALYSIS Ratio analysis includes calculating different ratios for the organization of the figures taken from its financial statements. The basic purpose of ratio analysis is that absolute figures often give misleading image so comparison with other figures is necessary which can be done through ratio analysis. Liquidity ratio AIOU T-520728 52 Liquidity ratio are used to measure a firm’s ability to meet short term obligations, they compare short term obligations with short term resources available to meet these obligations, Current ratio Definition Current assets divided by current liabilities. it shows a firm ability to cover its current liabilities with its current assets. FORMULA = CURRENT CURRENT In millions ASSETS LIABILITY 2003 2004 2005 2006 2007 AIOU T-520728 53 0 5 , 4 2 8 1 7 5 , 2 1 0 =1. 74 3 1 5 , 8 6 8 1 9 1 , 4 5 6 =1. 64 3 1 8 , 9 9 9 1 8 9 , 5 4 8 =1. 68 3 4 2 , 1 1 2 2 0 4 , 2 1 1 =1. 675 4 7 2 , 4 5 6 2 3 8 , 4 2 1 =1. 98 Interpretation As we see in the above analysis current ratio is high in 2003 and then deceasing and at the end in 2007 it is at high level. Which is very healthy sign. Current ratio which is more than (gt;1) is positive sign. It shows bank have sufficient current assets to meet current obligation. Debt equity ratio Ratios that show the extent to which the firm is financed by debt it is simply computed by as follows Formula = Total debt Shareholders equity In millions AIOU T-520728 54 0 0 3 2004 2005 2006 2007 4 4 2 , 1 4 8 1 8 , 1 3 6 =24. 37 5 0 6 , 9 8 5 2 4 , 8 9 9 =20. 36 5 0 3 , 3 7 8 3 6 , 1 5 8 =13. 92 5 5 3 , 1 7 8 5 3 , 0 4 4 =10. 42 6 4 5 , 8 5 5 6 9 , 2 7 0 =9. 32 Interpretation As we see in above analysis debt to equity ratio gradually decreases which shows positive sign for creditors because creditors like this ratio to be low. The lower the ratio the higher the firm financing that is being provided by shareholders. Banks debt to equity ratio usually high in value and greater than (gt;1). Debt to total assets The d ebt to total assets ratio is divided by dividing a firm’s total debt by its total assets FORMULA = TOTAL TOTAL DEBT ASSETS 2003 2004 2005 2006 2007 AIOU T-520728 55 4 4 2 , 1 4 8 4 6 8 , 9 7 2 =0. 942 5 0 6 , 9 8 5 5 5 3 , 2 3 3 =0. 916 5 0 3 , 3 7 8 5 7 7 , 7 2 1 =0. 871 5 5 3 , 1 6 8 6 3 5 , 1 3 4 =0. 870 6 4 5 , 8 5 6 7 6 2 , 1 9 5 =0. 847 Interpretation This ratio serves a similar purpose to the debt to equity ratio it highlights the relative importance of debt financing to the firm by showing the percentage of the firms assets that is supported by debt financing. The above analysis shows ratio is continuously decreasing from 2003 to 2007 which is healthy sign it is because of increasing in the assets of bank. It shows company is secured . In 2003 the 94% of the assets is financed with debts whether in 2007 84% of the assets is financed with debts. This analysis also shows the financial risk of banks decreasing from 2003 to 2007 due to decrease in ratio. Coverage ratio Ratios that relate the financial charger of a firm to its ability to service or cover them Interest coverage ratio Earning before interest and taxes divided by interest charges it indicates a firm’s ability to cover interest charges. AIOU T-520728 56 FORMULA = EBIT INTEREST EXPENSE 2003 1 4 5 , 9 9 2 5 5 , 8 9 6 =2. 61 2004 1 8 , 5 3 6 6 , 5 5 9 =2. 82 2005 2 9 , 3 7 7 1 , 3 2 1 =2. 85 2006 4 0 , 2 5 7 1 3 , 9 4 7 =2. 89 007 4 5 , 0 0 0 1 6 , 9 4 0 =2. 65 Interpretation This ratio serves as one measure of the firm’s ability to meet interest expense and avoid bankruptcy. The above analysis shows that coverage ratio is low in 2003 and 2007 but in high in remaining years. In simple higher the ratio greater bank ability to cover its interest pa yments. Year 2004,2005,2006 is better than 2007 because of greater ratio. The last year (2007) is not good for bank. This is happened because of decrease in EBIT , AIOU T-520728 57 Return on equity ROE compares net profit after taxes with the equity that shareholders have invested in the firm AIOU T-520728 58 FORMULA = NET PROFIT AFTER TAXES SHAREHOLDERS EQUITY 2003 4 , 1 9 8 1 8 , 1 3 4 2004 6 , 1 9 5 2 4 , 8 9 9 2005 1 2 , 7 0 9 3 6 , 1 5 8 2006 1 7 , 0 2 2 5 3 , 0 4 4 2007 1 9 , 0 3 3 6 9 , 2 7 0 =23. 15% =25% =35% =32% =27. 48% Interpretation . A high return on equity often reflects the firm’s acceptance of strong investment opportunity and effective expense management. In the above analysis the ratio is low in 2003 and 2007 and high in the remaining years. The ratio is increasing in 2004,2005,2006 because of increasing in profit and in the remaining year (2003,2007) the ratio decreasing because of less increasing in the profit and increase in the shareholder equity. AIOU T-520728 59 Return on assets Its measure overall effectiveness in generating profits with available assets ROA OR ROI are both the same it can be obtained by the following formula AIOU T-520728 60 FORMULA = NET PROFIT A F T E R TA X E S TO TA L ASSETS 2 0 0 3 4 , 1 9 8 * 1 0 0 2 0 0 4 6 , 1 9 5 * 1 0 0 5 5 3 , 2 3 1 = 1 . 1 2 % 2 0 0 5 1 2 7 , 1 0 9 * 1 0 0 2 0 0 6 1 7 , 0 2 2 * 1 0 0 2 0 0 7 1 9 , 0 3 3 * 1 0 0 4 6 8 , 9 7 2 = 0 . 9 0 % 5 7 7 , 7 1 9 = 2 . 2 % 6 3 5 , 1 3 4 = 2 . 6 8 % 7 6 2 , 1 9 3 = 2 . 4 9 % Interpretation It is also called earning power of the firm if there is an increase in turnover on assets an increase in the net profit margin or both. Earning power of the bank increased . In the above analysis return on assets is continuously increasing but little decrease in the last year (2007). the 2. 49% earning power means every rupee invested in the assets return 2. 49% in profit (PAT). The increase in ROA is because increase in profit after tax and decrease in the last year is because of less increase in profit (PAT) and more increase in asset 61 AIOU T-520728 Net profit ratio Ratio that relates profits to investment. it shows firm overall effectiveness of operation, it is calculated by following formula AIOU T-520728 62 FORMULA = NET PROFIT AFTER TAX NET MARKUP/INTEREST AFTER PROVISION 003 4,198 * 100 11,264 =52. 51% 2004 6,195 * 100 12,639 =49. 01% 2005 12,709 * 100 21,088 =60. 26% 2006 17,022 * 100 27,782 =61. 27% 2007 19,033 * 100 28,906 =65. 84% Interpretation It tells firm net income per dollar of interest after provision in the above analysis, it shows the net profit ratio constantly increasing and show high growth i n year 2007. Analysis with other banks AIOU T-520728 63 BANKS NET ASSETS MCB HBL UBL NBP SONERI KASB 56 billions 12 billion PER 24. 30 63. 2 billion 11 billion 14. 49 48 billion 9. 23 billion 10. 38 1. 16 trillion 20 billion 23. 34 6. 6 b 4. 2b PROFIT/LOSS AFTER TAX EARNING SHARE 1. 03 b 2. 43 -10 karore . 90 Explanation National bank of Pakistan is leading Bank of Pakistan as compared to other banks and financial institution in Pakistan, there are approximately 100 companies listed in stock exchange KSE, and their creditability is determined with their earning per share and other parameters there are some banks data is given below which shows national bank is Leading, one. fi we see the above table it shows net assts of national bank is high as compared to other’s and profit after tax is also high which is 20 billion, and if we see the earning per share it is also the 2nd one, so as overall it is better financial analysis than other. In Pakistan OGDC (Oil and gas development corporation) and steel mill is the greater volume assets companies if we compare the national bank to these companies in my point of view national bank gets 3rd position out of them. which is greater honor for this bank. AIOU T-520728 64 FUTURE PROSPECTS OF THE ORGANIZATION The overall analysis shows that company is in good condition throughout the analysis years 2003- 2007. The 2007 is the golden year for the company because in this year the company earns maximum profit. During this year the Operating Cost was minimum and its Operating Profit was maximum. Earning per share is also increasing during five years for the stock holders and the persons interested in NBP investment. Future Prospects of the Organization is to get more and more profit for its share holder by increasing revenue and operating profit by reducing its operating costs. NBP is a leading bank in Pakistan with its extensive networks all out the country. There are now fifty other banking companies in competition with NBP but NBP is the growing and leading bank in the Pakistan and go in the positive direction and if I say that it is the assets of Pakistan and has strategic important. it is also included world best bank, best in Asia. If we see the National Bank Of Pakistan in future it is very bright now NBP also starts Islamic banking which shows growth of bank is going in positive direction, it is an era of Islamic banking every bank open its Islamic branches and new Islamic bank comes in Pakistan. NBP is also face competition in Islamic banking as a whole it is the crocodile of Pakistan banking system in domestic and foreign. It has large amount of assets and earn highest profit in banking of Pakistan so it can use their resources wisely and gain confidence in foreign country and attract foreign customer, and have capacity to grow in foreign market. AIOU T-520728 65 Short falls /weaknesses of the finance department High interest expense Bank must emphasis on interest expense. because interest expense increase during last four year due to this bank interest coverage ratio decreases and bank ability to cover interest expense reduce. SHAREHOLDER EQUITY Bank equity not increase as compared to their liability increase in the previous year. EARNING PER SHARE AIOU T-520728 66 Earning per share not increase as compared to their profit bank are not providing or not transferred the benefit to their share holder it is also seen that ROE is decreases which means bank ability of getting opportunity is decrease. INVESTMENT Investment of the bank give less benefit and give negative cash flow. In overall cash from investing activating is decrease due to wrong policy of the finance department Recovery collection NBP Recovery collection system is weak and there is political influence in the bank matter which effect the decision making system of higher management. Capital budgeting NBP uses old financial techniques capital budgeting techniques. Banks uture planning is not up to date due. Bank capital budgeting performance is so low and they don’t give proper evaluation of investment. Consumer financing Finance department don’t emphasis on the consumer sector and consumer product. Different bank launching credit card and personal loans and earn intere st but national bank didn’t introduce these product during last year they only concentrate on corporate sector. AIOU T-520728 67 Foreign investment NBP don’t concentrate on foreign investment their investment is not diversified which is necessary to secure the bank from financial crisis in the period of domestic financial crisis of the country. Suggestions Diversified investment Bank must be concentrate on diversified investment, they must invest in different sector to minimize the risk if one sector is in crisis and give no return then we rely on other due to diversified investment foreign investment is also one tips of diversified investment if our economy is weak then we earn from foreign investment. Improve Consumer financing Consumer financing is must to earn maximum interest because it is an era of launching consumer product to attract the customer attention consumer financing is give high return in short period of time it includes following Credit card Debit card Auto loan Personal loan AIOU T-520728 68 Decrease account receivable To decrease possibility of bad debts bank should concentrate on recovery and collection of advances given to industrial and public sector. It also decrease our account receivable. Capital budgeting Bank should improve their capital budgeting department efficiency for taking good decision on investment and loan that what investment give better result and what loans has less effective rate. Assets Liability management Bank should adopt asset liability management techniques to abstain possible crisis they should use current assets to promote current liability and long term assets for long term liability Increase Interest rate Bank must increase interest rate on advances because NBP follow discount rate and get less profit on their IRR so it change the policy and follow KIBOR (Karachi inter bank offer rate). Reduce interest expense Bank should reduce their interest expense to increase the interest coverage ratio and avoid the bankruptcy they their interest expenses by taking less loan from AIOU T-520728 69 SBP and other financial institution and rely on their own . Increase earning per share(EPS) Bank must increase their EPS by increasing their profit to attract the shareholders attention Training session Management must conduct training session for financial department to give them overview of financial analysis and teach them the way for improving performance of finance department. Higher financial professional New blood specially finance specialist (Mba finance certified financial analyst (Cfa) should be injected and young professionals should be recruited on merit to induce enthusiasm in the bank. Customers should be focus of all activities to boost up the business. Conclusion In short I resulted during my internship in National bank of Pakistan and it can be concluded from the above prepared Internship Report, I concluded that the Banks’ use their own software for each and every department as for example National bank is using at present BANKING SOFTWARE system of accounting PMS (Payroll Management System) in the payroll section. There is confusion about using such accounting software because the student has learned other applications like MS-Excel and MS-Word for such purposes. AIOU T-520728 70 Management of bank always desire to be efficient. I observed that the management of National bank tries its best to hire the services of a person at no cost to the Bank as I was hired for my internship. I also observed that the employees of the Bank try their best to defend their job in the Bank and for this they use any means or methods. Also this report and internship has helped me very much to enter in the practical life since I was required to submit the same report to the Bank as well. The Practical Life of a person is quite different from Academic Life. In the academic life the student is required to learn from the class lectures, notes, and projects or home assignments assigned during the course. But in