J Sainsbury was established in 1869 and steadily grew to become one of the largest retailers in the UK. Currently, it stands behind only Tesco and ASDA in the UK retail market industry. Every organisation needs to have a successful operations management team in place in order to be successful. The three aspects of operations management which need to be covered include managing finances, managing human resources and managing information technology. Certain aspects of each of these areas have been analysed below to consider Sainsbury’s operations management. These resources when leveraged properly would benefit Sainsbury’s. The report begins with the definition and role of several financial institutions followed by a financial ratio analysis of Sainsbury’s which suggests how the financial performance can be improved and how the financial institutions can help. This is followed by an analysis of Sainsbury’s recruitment and selection procedures to assess their impact on overall business performance. Finally, the report considers the IT capabilities of Sainsbury’s and how these have been leveraged. The report ends with a summary of the findings and the recommendations that can be made based on these findings.
Municipalities access the capital markets to finance infrastructure projects by issuing municipal bonds and notes. Over $3.8 trillion in bonds are currently outstanding that were issued to finance infrastructure. The document discusses two examples of municipal bond deals, one for $9 million issued by the Town of Shrewsbury, MA to fund multiple capital projects, and one for $39.9 million issued by the City of New Bedford, MA to fund railroad remediation and refinance prior debt. It explains the process municipalities go through to issue bonds and the roles of various players in the capital markets.
finance company are the financial institutions. Nepal rastra banks ranks its C class banks. finance company are not allowed to invest in government security in Nepal. and they are not allowed to collect deposit not more than 15% of their core capital. this slide able to explain the actual conditions of finance company and others issues.
The document analyzes India's debt market and provides suggestions to make it more robust to support economic growth. It summarizes that India's debt market is dominated by government bonds, and the corporate debt market accounts for less than 5% of the total market. It identifies several problems on both the demand side like regulatory restrictions on institutional investors and low retail participation, and on the supply side like reliance on private placements and lack of innovative instruments. The document concludes by recommending ways to address regulatory overlapping, increase product simplicity and liquidity, provide tax incentives, ease issuance processes, and develop the secondary market to strengthen India's corporate debt market.
This document provides an introduction to commercial banking and financial services management. It defines commercial banks as financial intermediaries that accept deposits and make loans. It discusses how banks have expanded their service offerings beyond traditional banking to become general financial services providers. It also outlines various types of banks, financial institutions that compete with banks, the services banks offer customers, and trends impacting the banking industry like deregulation and technological innovation.
Financial institutions offer a variety of banking and financial services including savings and checking accounts, loans, investments, and financial advising. They are divided into depository institutions like banks that accept deposits, and non-depository institutions like insurance companies and brokerages. Financial institutions serve as intermediaries that pool funds from many customers and direct them to borrowers, facilitating the flow of money in the economy.
The document discusses various innovations being used in designing equity and debt instruments in India. It describes several new types of equity instruments such as arbitrage funds, shares with differential voting rights, and Indian depository receipts. It also outlines innovations in debt instruments like zero coupon curves, inflation-linked bonds, and triple option convertible debentures. While financial innovations are transforming the capital markets, the Indian market still lacks depth compared to more developed economies. Further reforms are needed to develop new instruments and deepen the markets.
Municipalities access the capital markets to finance infrastructure projects by issuing municipal bonds and notes. Over $3.8 trillion in bonds are currently outstanding that were issued to finance infrastructure. The document discusses two examples of municipal bond deals, one for $9 million issued by the Town of Shrewsbury, MA to fund multiple capital projects, and one for $39.9 million issued by the City of New Bedford, MA to fund railroad remediation and refinance prior debt. It explains the process municipalities go through to issue bonds and the roles of various players in the capital markets.
finance company are the financial institutions. Nepal rastra banks ranks its C class banks. finance company are not allowed to invest in government security in Nepal. and they are not allowed to collect deposit not more than 15% of their core capital. this slide able to explain the actual conditions of finance company and others issues.
The document analyzes India's debt market and provides suggestions to make it more robust to support economic growth. It summarizes that India's debt market is dominated by government bonds, and the corporate debt market accounts for less than 5% of the total market. It identifies several problems on both the demand side like regulatory restrictions on institutional investors and low retail participation, and on the supply side like reliance on private placements and lack of innovative instruments. The document concludes by recommending ways to address regulatory overlapping, increase product simplicity and liquidity, provide tax incentives, ease issuance processes, and develop the secondary market to strengthen India's corporate debt market.
This document provides an introduction to commercial banking and financial services management. It defines commercial banks as financial intermediaries that accept deposits and make loans. It discusses how banks have expanded their service offerings beyond traditional banking to become general financial services providers. It also outlines various types of banks, financial institutions that compete with banks, the services banks offer customers, and trends impacting the banking industry like deregulation and technological innovation.
Financial institutions offer a variety of banking and financial services including savings and checking accounts, loans, investments, and financial advising. They are divided into depository institutions like banks that accept deposits, and non-depository institutions like insurance companies and brokerages. Financial institutions serve as intermediaries that pool funds from many customers and direct them to borrowers, facilitating the flow of money in the economy.
The document discusses various innovations being used in designing equity and debt instruments in India. It describes several new types of equity instruments such as arbitrage funds, shares with differential voting rights, and Indian depository receipts. It also outlines innovations in debt instruments like zero coupon curves, inflation-linked bonds, and triple option convertible debentures. While financial innovations are transforming the capital markets, the Indian market still lacks depth compared to more developed economies. Further reforms are needed to develop new instruments and deepen the markets.
The document discusses various financial services in India including investment banking, credit rating, consumer finance, housing finance, asset restructuring, mutual fund management companies, depository services, debit cards, and online share trading. It provides definitions and explanations of these terms. It also discusses the regulation of non-banking financial companies (NBFCs) under the RBI Act and the CAMEL model used in credit ratings.
This document summarizes the risk management framework of ICICI Bank. It discusses the key risks faced by the bank including credit, market, liquidity, operational, compliance and reputation risks. The risk management strategy involves identifying, measuring, monitoring and controlling risks. Oversight of risks is provided by the Board of Directors and associated committees. Policies govern each type of risk and business activities are undertaken within this framework. Independent groups evaluate, monitor and manage risks across the bank.
This document provides an overview of bank investment and lending functions. It discusses how banks apply their funds through statutory liquidity ratio investments, non-SLR investments, and lending. Lending includes various types of loans like cash credit, overdrafts, and bill discounting. It also discusses non-fund based lending through bank guarantees and letters of credit. Asset-based lending is described as using collateral like projects, receivables, or securities to secure loans.
The document discusses the Indian debt market, including government securities market and bond market. It describes the major participants which include central/state governments, banks, financial institutions, companies, and individual investors. It also covers the primary and secondary market structures, issuance and trading processes, clearing and settlement procedures, and debt instruments like STRIPS. The debt market plays a key role in India by facilitating resource mobilization and supporting government/corporate financing needs.
The document provides an overview of the debt market in India. It discusses that the Indian debt market is dominated by government bonds and is an important source of funds for the central and state governments to finance activities and manage budgets. It describes various debt instruments like government securities, corporate bonds, commercial papers, and certificates of deposits. It also outlines participants, regulatory bodies, and risks associated with the debt market while highlighting advantages like assured returns and disadvantages like lower returns compared to equity markets.
Credit unions are member-owned, not-for-profit financial cooperatives that exist to serve their members. They originated in Germany in the 1850s and spread to other parts of Europe and globally. Credit unions provide affordable financial services to their members and use any profits to benefit members through lower fees and rates rather than to generate profits for shareholders. They are controlled democratically by members who have an equal voice regardless of account size. Credit unions offer advantages like customer ownership and being non-profit, which results in fewer fees and higher savings rates for members.
The document discusses various sources of finance available to companies, including short term, medium term, and long term sources. It also discusses the role of key financial institutions in India, such as the Reserve Bank of India, commercial banks, IDBI, IFCI, and ICICI. These institutions provide loans, underwriting, refinancing, and other services to support industry.
Depository institutions include banks, savings and loans, and credit unions which offer multiple banking and financial services. They provide services like deposit accounts, loans, mortgages, and insurance on deposits. Credit unions typically offer interest rates that are most beneficial to consumers.
This document provides an overview of various financial services. It discusses banking services, insurance services, investment management services like mutual funds and portfolio management, and capital market services. It describes the key entities that offer these services like banks, insurance companies, asset management companies, stock brokers, etc. It also outlines the major types of products and services offered within each category of financial services.
The document summarizes ABC Ltd issuing bonds to raise further funds for expansion. ABC Ltd plans to issue bonds worth Rs. 1000 each with a face value of Rs. 1000. The bonds will have a tenure of 5 years and offer an annual interest rate of 10% paid yearly. For example, if an investor invests Rs. 50,000 by buying 50 bonds, they will receive annual interest of Rs. 5000. The bonds allow ABC Ltd to raise funds without diluting ownership, and investors receive periodic interest payments as well as return of principal after 5 years.
The document analyzes India's corporate bond market and suggests reforms. It notes that the corporate bond market is underdeveloped compared to the government bond market. Some key points:
- Corporate bonds make up a very small portion of India's domestic financial assets compared to other countries.
- Most corporate bond issuances are private placements rather than public issues. Trading is also over-the-counter rather than exchange-based.
- Reforms like removing taxes on corporate bonds, giving more flexibility to investors, and allowing corporate bonds to be used as collateral could help develop the market. Expanding securitization could also encourage retail investment.
This document provides an overview of financial services in India. It defines financial services as services required for mobilizing and channeling savings to productive activities. It discusses the key components, functions, categories and examples of financial services in India. The categories discussed include asset management companies, liability management companies, fund based financial services companies and fees based financial services companies. Examples of specific financial services discussed include leasing, factoring, bill discounting, securitization, mutual funds, merchant banking and venture capital financing. The document also lists some of the top 10 financial services companies operating in India.
An Intro to the Financial Services IndustryEric Tachibana
The Financial Service Industry is one of the most attractive industries to target if you are a consultant. However, when selling into, or delivering for, Financial Services Institutions (FSIs), it is useful to have some understanding of how FSI business models work, and the unique requirements that drive their IT strategies.This deck is a living document that hopes to act as a primer for consultants who need to support FSI clients, but who may not have prior experience in the sector.
This document provides an overview of the evolution and types of financial services in India. It discusses how the sector has undergone liberalization since 1990, allowing private and foreign players to enter. The document defines financial services as services related to mobilizing and allocating savings. It outlines the evolution in three phases from 1960-2002, during which new institutions and instruments were established. The key characteristics of financial services are described, including their intangible nature and role in intermediating funds. The importance of financial services in channeling funds, debt management, and promoting savings is also highlighted. Finally, the document categorizes the main types of financial services in India into money markets, capital markets, retail markets, and wholesale markets.
This document provides an overview of financial services in India. It defines financial services as activities, benefits, and satisfactions connected to the sale of money. The main institutional providers of financial services in India are banks, non-banking financial companies, insurance companies, mutual funds, stock exchanges, housing finance societies, and leasing companies. The document discusses key characteristics of financial services like intangibility, being customer-oriented, and relying on information. It also outlines some problems in the Indian financial services sector like a lack of experience, limited innovations, and inefficient technology. The two broad categories of financial services are asset/fund-based services and fee/advisory-based services. Specific financial services discussed include equipment leasing,
This document discusses securitization, which involves pooling various types of loan assets and converting them into marketable securities. The securitization process involves an originator selecting and packaging loan assets, which are then sold to a special purpose vehicle (SPV). The SPV then converts the assets into securities and sells them to investors. Various players are involved, including originators, SPVs, investment banks, credit rating agencies, and investors. Securitization allows originators to transfer risk and improve their balance sheets, while providing investors opportunities for returns through new financial products.
The document discusses the components of the Indian financial system, including financial institutions, financial markets, financial instruments, and financial services. It specifically focuses on the debt market as a key component. The debt market can be classified into the government securities market and the bond market. Government securities include instruments issued by central and state governments, while the bond market includes instruments issued by public and private sector entities. The debt market plays an important role in the Indian economy by efficiently mobilizing and allocating resources, financing government development activities, and transmitting monetary policy signals. It also provides greater funding avenues and reduces borrowing costs.
1. The document discusses various types of financial institutions in Taiwan including commercial banks, specialized banks, trust companies, investment companies, and financial holding companies.
2. It describes how financial institutions have consolidated over time through mergers and changes in regulations to allow cross-industry ownership.
3. The development of investment banking, securities firms, and financial holding companies has led to the integration of banking, insurance, and securities industries in Taiwan.
This document discusses developing corporate bond markets in India using blockchain technology. It provides an overview of debt markets globally and in India, noting that corporate bond markets are underdeveloped in India compared to other major economies. The document proposes using blockchain to digitally represent and transfer corporate bonds, replacing the current manual paper-based system. This could improve efficiency by reducing costs, automating processes, and providing a single shared ledger of transactions. Developing corporate bond markets is important for meeting India's large financing needs for industry and infrastructure.
This document is a research paper proposal that will examine security protocols for 802.11 wireless networks. It will first analyze WEP (Wired Equivalent Privacy), the original security standard, and discuss its vulnerabilities. It will then focus on WPA (Wi-Fi Protected Access), a new standard introduced to improve on WEP's weaknesses, analyzing its implementation and the level of security it provides. The proposal outlines the topics that will be covered and lists relevant references for further information on WEP and WPA.
Project development and implementation for strategic managersChintan Gosai
Research and consultancy services are been offered by the CTPD Management consultants for a great number of policy areas. These consultancy services provide a clear understanding on how the policy process works. Research and policy advice are the tools which are required to help the customer in pinpointing the main bottlenecks and finding solutions to their problems. Understanding of the policy process work depends on skills to map and fathom the problems. The clients are not only expecting a list of problems but it is more important to find out solutions to cope up with them, which can be done by research and policy advice.
The document discusses various financial services in India including investment banking, credit rating, consumer finance, housing finance, asset restructuring, mutual fund management companies, depository services, debit cards, and online share trading. It provides definitions and explanations of these terms. It also discusses the regulation of non-banking financial companies (NBFCs) under the RBI Act and the CAMEL model used in credit ratings.
This document summarizes the risk management framework of ICICI Bank. It discusses the key risks faced by the bank including credit, market, liquidity, operational, compliance and reputation risks. The risk management strategy involves identifying, measuring, monitoring and controlling risks. Oversight of risks is provided by the Board of Directors and associated committees. Policies govern each type of risk and business activities are undertaken within this framework. Independent groups evaluate, monitor and manage risks across the bank.
This document provides an overview of bank investment and lending functions. It discusses how banks apply their funds through statutory liquidity ratio investments, non-SLR investments, and lending. Lending includes various types of loans like cash credit, overdrafts, and bill discounting. It also discusses non-fund based lending through bank guarantees and letters of credit. Asset-based lending is described as using collateral like projects, receivables, or securities to secure loans.
The document discusses the Indian debt market, including government securities market and bond market. It describes the major participants which include central/state governments, banks, financial institutions, companies, and individual investors. It also covers the primary and secondary market structures, issuance and trading processes, clearing and settlement procedures, and debt instruments like STRIPS. The debt market plays a key role in India by facilitating resource mobilization and supporting government/corporate financing needs.
The document provides an overview of the debt market in India. It discusses that the Indian debt market is dominated by government bonds and is an important source of funds for the central and state governments to finance activities and manage budgets. It describes various debt instruments like government securities, corporate bonds, commercial papers, and certificates of deposits. It also outlines participants, regulatory bodies, and risks associated with the debt market while highlighting advantages like assured returns and disadvantages like lower returns compared to equity markets.
Credit unions are member-owned, not-for-profit financial cooperatives that exist to serve their members. They originated in Germany in the 1850s and spread to other parts of Europe and globally. Credit unions provide affordable financial services to their members and use any profits to benefit members through lower fees and rates rather than to generate profits for shareholders. They are controlled democratically by members who have an equal voice regardless of account size. Credit unions offer advantages like customer ownership and being non-profit, which results in fewer fees and higher savings rates for members.
The document discusses various sources of finance available to companies, including short term, medium term, and long term sources. It also discusses the role of key financial institutions in India, such as the Reserve Bank of India, commercial banks, IDBI, IFCI, and ICICI. These institutions provide loans, underwriting, refinancing, and other services to support industry.
Depository institutions include banks, savings and loans, and credit unions which offer multiple banking and financial services. They provide services like deposit accounts, loans, mortgages, and insurance on deposits. Credit unions typically offer interest rates that are most beneficial to consumers.
This document provides an overview of various financial services. It discusses banking services, insurance services, investment management services like mutual funds and portfolio management, and capital market services. It describes the key entities that offer these services like banks, insurance companies, asset management companies, stock brokers, etc. It also outlines the major types of products and services offered within each category of financial services.
The document summarizes ABC Ltd issuing bonds to raise further funds for expansion. ABC Ltd plans to issue bonds worth Rs. 1000 each with a face value of Rs. 1000. The bonds will have a tenure of 5 years and offer an annual interest rate of 10% paid yearly. For example, if an investor invests Rs. 50,000 by buying 50 bonds, they will receive annual interest of Rs. 5000. The bonds allow ABC Ltd to raise funds without diluting ownership, and investors receive periodic interest payments as well as return of principal after 5 years.
The document analyzes India's corporate bond market and suggests reforms. It notes that the corporate bond market is underdeveloped compared to the government bond market. Some key points:
- Corporate bonds make up a very small portion of India's domestic financial assets compared to other countries.
- Most corporate bond issuances are private placements rather than public issues. Trading is also over-the-counter rather than exchange-based.
- Reforms like removing taxes on corporate bonds, giving more flexibility to investors, and allowing corporate bonds to be used as collateral could help develop the market. Expanding securitization could also encourage retail investment.
This document provides an overview of financial services in India. It defines financial services as services required for mobilizing and channeling savings to productive activities. It discusses the key components, functions, categories and examples of financial services in India. The categories discussed include asset management companies, liability management companies, fund based financial services companies and fees based financial services companies. Examples of specific financial services discussed include leasing, factoring, bill discounting, securitization, mutual funds, merchant banking and venture capital financing. The document also lists some of the top 10 financial services companies operating in India.
An Intro to the Financial Services IndustryEric Tachibana
The Financial Service Industry is one of the most attractive industries to target if you are a consultant. However, when selling into, or delivering for, Financial Services Institutions (FSIs), it is useful to have some understanding of how FSI business models work, and the unique requirements that drive their IT strategies.This deck is a living document that hopes to act as a primer for consultants who need to support FSI clients, but who may not have prior experience in the sector.
This document provides an overview of the evolution and types of financial services in India. It discusses how the sector has undergone liberalization since 1990, allowing private and foreign players to enter. The document defines financial services as services related to mobilizing and allocating savings. It outlines the evolution in three phases from 1960-2002, during which new institutions and instruments were established. The key characteristics of financial services are described, including their intangible nature and role in intermediating funds. The importance of financial services in channeling funds, debt management, and promoting savings is also highlighted. Finally, the document categorizes the main types of financial services in India into money markets, capital markets, retail markets, and wholesale markets.
This document provides an overview of financial services in India. It defines financial services as activities, benefits, and satisfactions connected to the sale of money. The main institutional providers of financial services in India are banks, non-banking financial companies, insurance companies, mutual funds, stock exchanges, housing finance societies, and leasing companies. The document discusses key characteristics of financial services like intangibility, being customer-oriented, and relying on information. It also outlines some problems in the Indian financial services sector like a lack of experience, limited innovations, and inefficient technology. The two broad categories of financial services are asset/fund-based services and fee/advisory-based services. Specific financial services discussed include equipment leasing,
This document discusses securitization, which involves pooling various types of loan assets and converting them into marketable securities. The securitization process involves an originator selecting and packaging loan assets, which are then sold to a special purpose vehicle (SPV). The SPV then converts the assets into securities and sells them to investors. Various players are involved, including originators, SPVs, investment banks, credit rating agencies, and investors. Securitization allows originators to transfer risk and improve their balance sheets, while providing investors opportunities for returns through new financial products.
The document discusses the components of the Indian financial system, including financial institutions, financial markets, financial instruments, and financial services. It specifically focuses on the debt market as a key component. The debt market can be classified into the government securities market and the bond market. Government securities include instruments issued by central and state governments, while the bond market includes instruments issued by public and private sector entities. The debt market plays an important role in the Indian economy by efficiently mobilizing and allocating resources, financing government development activities, and transmitting monetary policy signals. It also provides greater funding avenues and reduces borrowing costs.
1. The document discusses various types of financial institutions in Taiwan including commercial banks, specialized banks, trust companies, investment companies, and financial holding companies.
2. It describes how financial institutions have consolidated over time through mergers and changes in regulations to allow cross-industry ownership.
3. The development of investment banking, securities firms, and financial holding companies has led to the integration of banking, insurance, and securities industries in Taiwan.
This document discusses developing corporate bond markets in India using blockchain technology. It provides an overview of debt markets globally and in India, noting that corporate bond markets are underdeveloped in India compared to other major economies. The document proposes using blockchain to digitally represent and transfer corporate bonds, replacing the current manual paper-based system. This could improve efficiency by reducing costs, automating processes, and providing a single shared ledger of transactions. Developing corporate bond markets is important for meeting India's large financing needs for industry and infrastructure.
This document is a research paper proposal that will examine security protocols for 802.11 wireless networks. It will first analyze WEP (Wired Equivalent Privacy), the original security standard, and discuss its vulnerabilities. It will then focus on WPA (Wi-Fi Protected Access), a new standard introduced to improve on WEP's weaknesses, analyzing its implementation and the level of security it provides. The proposal outlines the topics that will be covered and lists relevant references for further information on WEP and WPA.
Project development and implementation for strategic managersChintan Gosai
Research and consultancy services are been offered by the CTPD Management consultants for a great number of policy areas. These consultancy services provide a clear understanding on how the policy process works. Research and policy advice are the tools which are required to help the customer in pinpointing the main bottlenecks and finding solutions to their problems. Understanding of the policy process work depends on skills to map and fathom the problems. The clients are not only expecting a list of problems but it is more important to find out solutions to cope up with them, which can be done by research and policy advice.
AMWAY - A great business opportunity !!!sudha_karss
Very little initial cost, no risk of loss, and the ability to build a team who works for you without paying them directly are some key benefits highlighted. The business can be run part-time without disrupting other work or professional commitments. Amway has been operating successfully for over 50 years in over 90 countries.
This document outlines the benefits of starting a business with Amway and Britt World Wide, including financial freedom, residual income, time freedom, and helping others. It discusses Amway's business model of time and manpower compounding to generate income without large investments of money, infrastructure, or expertise. The document promotes Amway's products and services, global success, and ability to help people realize their dreams through its business opportunity.
This document provides information about multiple ways to earn money, including through active income from monthly paychecks, business profits, fees, bonuses, and commissions as well as passive income from rental income, dividends, interest, and royalties. It discusses achieving financial freedom when passive income exceeds monthly expenses. It also outlines franchise and multi-level marketing models and provides examples of individuals who achieved financial success through various business ventures by following market trends.
This document provides details about the Amway business opportunity. Amway is a 54-year old company operating in 108 countries with a global turnover of 70000 crores. It has 450 products and 1000 international patents. Working part-time for Amway, 2-3 hours per day for 6-18 months allows one to earn 60,000-90,000 per month, while working 2-3 hours per day for 2-5 years allows earning 1.5-5 lakhs per month through retail margins, performance bonuses, leadership bonuses, and compounding team growth. The document compares the Amway business model to traditional franchising and other income models.
The document provides an introduction to financial management, including definitions of finance, financial intermediaries, and financial accounts. It discusses how finance deals with concepts like time, money, and risk. It also defines different types of financial intermediaries like insurance companies, mutual funds, investment brokers, and pension funds. Finally, it summarizes the key financial statements - the trading account, profit and loss account, and balance sheet - and explains the rules and objectives of financial accounting.
The document discusses financial intermediaries and their role in facilitating transactions between lenders and borrowers. It defines a financial intermediary as an entity that acts as a middleman in financial transactions. Banks are a key type of financial intermediary, as they accept deposits and provide loans. Other financial intermediaries mentioned include non-banking financial companies, mutual funds, insurance companies, and development financial institutions. The document outlines the various risks that financial intermediaries must manage, such as credit risk, liquidity risk, and systemic risk.
The document provides an introduction and overview of a study on the role of financial ratios for IDBI Bank in lending to organizations. It discusses the objectives of the research, which are to understand the importance of financial ratios, IDBI Bank's use of ratios in lending decisions, and evaluation techniques. The methodology discusses collecting secondary data from sources like magazines, books, and IDBI Bank reports and using ratio analysis and tables/graphs for analysis and representation.
Determinants of Capital Structure in Indonesian Banking Sector inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
This document summarizes a research study that examined the relationship between working capital management and financial performance of deposit money banks in Nigeria from 2007 to 2013. The study found a strong positive relationship between current ratio, quick ratio, and return on assets (ROA), while cash ratio was found to be inversely related to ROA. It recommends that banks maintain adequate liquidity through higher current and quick ratios to improve profitability, while reducing the amount of cash held to invest funds and generate higher returns. In general, the study empirically proved that effective working capital management can positively impact the profitability of deposit money banks in Nigeria.
The document provides information on the Banking, Financial Services and Insurance (BFSI) sectors in India. It describes the key components of each sector. The banking sector section explains the functions of banks which include accepting deposits and granting loans. It also discusses the various types of banks operating in India. The financial services sector section covers types of financial services like capital markets, retail banking, and fee-based services. Finally, the insurance sector section defines insurance and describes the structure and key types of insurance products and services available in India. It concludes by highlighting the growing market size of the BFSI sectors in India.
This document defines and categorizes different types of financial intermediaries. It discusses insurance companies, mutual funds, non-banking finance companies, investment brokers, investment bankers, escrow companies, pension funds, and collective investment schemes. The main advantages of using financial intermediaries are that they help reduce costs compared to direct lending/borrowing, and help reconcile the conflicting needs of lenders and borrowers to prevent market failure. Financial intermediaries play a vital role in bringing together those with surplus funds to lend and those with shortage of funds to borrow.
Capital structure refers to the combination of debt and equity used by a company to finance its operations and growth. Debt includes bonds and loans, while equity includes common stock, preferred stock, and retained earnings. A sound capital structure allows a company to maximize shareholder value while minimizing costs. It also provides flexibility to adjust debt levels over time based on the company's situation. Venture capital is a form of financing provided to startups and small businesses believed to have long-term growth potential. It can be monetary funding or expertise and is typically allocated to companies with exceptional growth potential.
Non-banking financial companies (NBFCs) provide financial services like banks but do not have a full banking license. In India, NBFCs account for 8% of the financial sector. They provide important functions like financial intermediation between savers and borrowers, inducing savings, promoting growth, and adding stability. The main types of NBFCs in India are insurance companies, mutual funds, market makers, specialized lenders, and financial service providers. The top 10 NBFCs are led by HDFC and include companies focused on sectors like infrastructure, rural electricity, transportation finance, and microfinance. NBFCs offer services such as equipment leasing, housing finance, asset management, and venture capital financing.
The document provides definitions and explanations of financial services and merchant banking. It discusses that financial services help with borrowing, lending, investing, payments and risk management. They include intermediation, payments mechanisms, and providing liquidity. Merchant banking is defined as a combination of banking and consultancy services that provides advice to clients on financial, marketing, managerial and legal matters. It helps companies raise capital and provides a wide range of services from starting to running a business.
The financial system plays a crucial role in economic development by facilitating the transfer of resources from savers to investors. It consists of financial institutions, financial markets, financial instruments, and financial services. Recent developments include the establishment of regulatory bodies like SEBI and reforms in the capital market, money market, and commercial banking sector. Capital market reforms involve the growth of stock exchanges, mutual funds, and electronic trading. Money market reforms include deregulating interest rates and developing new market instruments. Reforms in commercial banks feature reduced reserve requirements, interest rate deregulation, and increased operational autonomy.
The document is a student's project on loan syndication. It includes a declaration by the student that the information submitted is true and original. It also includes a certificate from the student's project guide. The acknowledgements section thanks various individuals who provided guidance and support. The index lists the contents of the project, which covers topics such as the meaning of loan syndication, the syndication process, reasons for syndicated lending, and the role of parties involved. It also includes an overview of ICICI Bank and its syndication services.
Comparative Study of Loans and Advances of Commercial Banks.docxNoaman Akbar
This document discusses loans and advances provided by commercial banks. It begins by introducing the important role of banks in economic development and defines key terms like loans, advances, borrowing and lending. It then discusses the main differences between loans and advances - loans must be paid back over a set period of time according to an agreed schedule, while advances can be repaid in full within a year. The objectives are to find the key differences between loans and advances and discuss their advantages and disadvantages. The study will focus on two commercial banks over five years to analyze their loan amounts, interest rates, and procedures.
The document discusses various types of financial institutions including depository institutions like banks, savings institutions, and credit unions that accept deposits and make loans, and non-depository institutions like mutual funds and insurance companies that generate funds from other sources. It also describes different types of banks such as commercial banks, investment banks, savings banks, Islamic banks, and specialized banks. Other financial institutions mentioned include non-banking financial companies, leasing companies, insurances companies, mutual funds, and brokerage houses.
Unit 3 (1).pptx financial services , custodian serviceBeastMahi1
The document discusses various types of financial services. It defines financial services as the economic services provided by the finance industry, which includes banks, credit unions, insurance companies, and other businesses that manage money. It then provides details on important financial services like banking, wealth management, mutual funds, insurance, stock markets, treasury instruments, consulting, and portfolio management. It also distinguishes between fund-based financial activities like leasing, hire purchase, and bill discounting, and non-fund-based activities such as merchant banking, credit rating, and loan syndication.
The document provides an overview of the mutual funds industry in India. It discusses the history and growth of mutual funds in India from 1964 to present. Some key points:
1) UTI was established in 1964 as the first mutual fund in India to mobilize retail savings.
2) The industry opened up to private players in 1993, accelerating its growth.
3) As of 2022, there are over 40 asset management companies in India managing over Rs. 40 trillion in assets under management.
4) The mutual funds industry in India has experienced significant growth in assets and number of investors over the past few decades.
Financial institutions play a crucial role in the economy by facilitating the flow of funds between savers and investors. They provide a range of financial products and services that help individuals and businesses manage their finances, invest their money, and access credit. In this article, we will discuss the meaning, types, functions, and examples of financial institutions and services.
Meaning of Financial Institutions and Services
Financial institutions are organizations that provide financial products and services to individuals, businesses, and governments. They play a crucial role in the economy by facilitating the flow of funds between savers and investors. Financial institutions include banks, credit unions, insurance companies, brokerage firms, and investment banks. They offer a range of financial products and services, including checking and savings accounts, loans, mortgages, insurance, investment products, and wealth management services.
visit : https://m1nxt.blogspot.com/2023/04/financial-institutions-and-services.html
This document discusses banking and non-banking financial institutions. It provides information on the types of banking institutions such as commercial banks, savings and loans associations, and credit unions. It also discusses non-banking financial institutions like insurance companies, pension funds, and hedge funds. The document further describes banking and non-banking financial institutions, their regulations, types, and differences between public and private sector banks.
Finance Q & A Essay
Finance Essay
Financial Services Essays
Corporate Finance Essay
Managing Financial Resources Essay examples
Essay on personal finance goals
Reflection About Finance
Business Finance Essay
Essay on My Personal Financial Plan
Finance Director Essay
Essay Corporate Finance
Essay about Ethics in Finance
Essay on Finance
Finance
Company Valuation webinar series - Tuesday, 4 June 2024FelixPerez547899
This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
Taurus Zodiac Sign: Unveiling the Traits, Dates, and Horoscope Insights of th...my Pandit
Dive into the steadfast world of the Taurus Zodiac Sign. Discover the grounded, stable, and logical nature of Taurus individuals, and explore their key personality traits, important dates, and horoscope insights. Learn how the determination and patience of the Taurus sign make them the rock-steady achievers and anchors of the zodiac.
3 Simple Steps To Buy Verified Payoneer Account In 2024SEOSMMEARTH
Buy Verified Payoneer Account: Quick and Secure Way to Receive Payments
Buy Verified Payoneer Account With 100% secure documents, [ USA, UK, CA ]. Are you looking for a reliable and safe way to receive payments online? Then you need buy verified Payoneer account ! Payoneer is a global payment platform that allows businesses and individuals to send and receive money in over 200 countries.
If You Want To More Information just Contact Now:
Skype: SEOSMMEARTH
Telegram: @seosmmearth
Gmail: seosmmearth@gmail.com
The Evolution and Impact of OTT Platforms: A Deep Dive into the Future of Ent...ABHILASH DUTTA
This presentation provides a thorough examination of Over-the-Top (OTT) platforms, focusing on their development and substantial influence on the entertainment industry, with a particular emphasis on the Indian market.We begin with an introduction to OTT platforms, defining them as streaming services that deliver content directly over the internet, bypassing traditional broadcast channels. These platforms offer a variety of content, including movies, TV shows, and original productions, allowing users to access content on-demand across multiple devices.The historical context covers the early days of streaming, starting with Netflix's inception in 1997 as a DVD rental service and its transition to streaming in 2007. The presentation also highlights India's television journey, from the launch of Doordarshan in 1959 to the introduction of Direct-to-Home (DTH) satellite television in 2000, which expanded viewing choices and set the stage for the rise of OTT platforms like Big Flix, Ditto TV, Sony LIV, Hotstar, and Netflix. The business models of OTT platforms are explored in detail. Subscription Video on Demand (SVOD) models, exemplified by Netflix and Amazon Prime Video, offer unlimited content access for a monthly fee. Transactional Video on Demand (TVOD) models, like iTunes and Sky Box Office, allow users to pay for individual pieces of content. Advertising-Based Video on Demand (AVOD) models, such as YouTube and Facebook Watch, provide free content supported by advertisements. Hybrid models combine elements of SVOD and AVOD, offering flexibility to cater to diverse audience preferences.
Content acquisition strategies are also discussed, highlighting the dual approach of purchasing broadcasting rights for existing films and TV shows and investing in original content production. This section underscores the importance of a robust content library in attracting and retaining subscribers.The presentation addresses the challenges faced by OTT platforms, including the unpredictability of content acquisition and audience preferences. It emphasizes the difficulty of balancing content investment with returns in a competitive market, the high costs associated with marketing, and the need for continuous innovation and adaptation to stay relevant.
The impact of OTT platforms on the Bollywood film industry is significant. The competition for viewers has led to a decrease in cinema ticket sales, affecting the revenue of Bollywood films that traditionally rely on theatrical releases. Additionally, OTT platforms now pay less for film rights due to the uncertain success of films in cinemas.
Looking ahead, the future of OTT in India appears promising. The market is expected to grow by 20% annually, reaching a value of ₹1200 billion by the end of the decade. The increasing availability of affordable smartphones and internet access will drive this growth, making OTT platforms a primary source of entertainment for many viewers.
Industrial Tech SW: Category Renewal and CreationChristian Dahlen
Every industrial revolution has created a new set of categories and a new set of players.
Multiple new technologies have emerged, but Samsara and C3.ai are only two companies which have gone public so far.
Manufacturing startups constitute the largest pipeline share of unicorns and IPO candidates in the SF Bay Area, and software startups dominate in Germany.
At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
Top mailing list providers in the USA.pptxJeremyPeirce1
Discover the top mailing list providers in the USA, offering targeted lists, segmentation, and analytics to optimize your marketing campaigns and drive engagement.
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Tastemy Pandit
Know what your zodiac sign says about your taste in food! Explore how the 12 zodiac signs influence your culinary preferences with insights from MyPandit. Dive into astrology and flavors!
SATTA MATKA SATTA FAST RESULT KALYAN TOP MATKA RESULT KALYAN SATTA MATKA FAST RESULT MILAN RATAN RAJDHANI MAIN BAZAR MATKA FAST TIPS RESULT MATKA CHART JODI CHART PANEL CHART FREE FIX GAME SATTAMATKA ! MATKA MOBI SATTA 143 spboss.in TOP NO1 RESULT FULL RATE MATKA ONLINE GAME PLAY BY APP SPBOSS
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.AnnySerafinaLove
This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.
Navigating the world of forex trading can be challenging, especially for beginners. To help you make an informed decision, we have comprehensively compared the best forex brokers in India for 2024. This article, reviewed by Top Forex Brokers Review, will cover featured award winners, the best forex brokers, featured offers, the best copy trading platforms, the best forex brokers for beginners, the best MetaTrader brokers, and recently updated reviews. We will focus on FP Markets, Black Bull, EightCap, IC Markets, and Octa.
Recruiting in the Digital Age: A Social Media MasterclassLuanWise
In this masterclass, presented at the Global HR Summit on 5th June 2024, Luan Wise explored the essential features of social media platforms that support talent acquisition, including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok.
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
2. [Operational Management] 2012
Contents
Contents........................................................................................2
Introduction & Brief History...............................................................3
Managing Finance............................................................................3
Financial Institutions........................................................................3
Role of Financial Institutions.............................................................4
Types and role financial Institutions...................................................4
Commercial Banks........................................................................4
Saving Institutions........................................................................5
Credit Union.................................................................................5
Insurance Companies....................................................................5
Pension Funds .............................................................................6
Ratio analysis.................................................................................6
Human Resource Management..........................................................9
Recruitment & Selection................................................................9
Recruitment & Selection at Sainsbury’s..........................................10
Validity and Reliability.................................................................11
Managing Information....................................................................12
Role & Importance Information Communications Technology (ICT).....12
Role of IS in Sainsbury’s..............................................................13
Conclusion....................................................................................15
Recommendation...........................................................................16
References....................................................................................18
Page 2
3. [Operational Management] 2012
Introduction & Brief History
J Sainsbury was established in 1869 and steadily grew to become one of the largest
retailers in the UK. Currently, it stands behind only Tesco and ASDA in the UK retail
market industry. Every organisation needs to have a successful operations management
team in place in order to be successful. The three aspects of operations management
which need to be covered include managing finances, managing human resources and
managing information technology. Certain aspects of each of these areas have been
analysed below to consider Sainsbury’s operations management. These resources when
leveraged properly would benefit Sainsbury’s. The report begins with the definition and
role of several financial institutions followed by a financial ratio analysis of Sainsbury’s
which suggests how the financial performance can be improved and how the financial
institutions can help. This is followed by an analysis of Sainsbury’s recruitment and
selection procedures to assess their impact on overall business performance. Finally,
the report considers the IT capabilities of Sainsbury’s and how these have been
leveraged. The report ends with a summary of the findings and the recommendations
that can be made based on these findings.
Managing Finance
Financial Institutions
Financial institutions are defined by Gup (2008) as “organisations whose principal
function is managing the financial asserts of business concerns and individuals.
They bring savers and borrowers together by selling securities and services to
savers, and then lending (or investing) those funds to borrowers” (Gup, 2008, p. 1).
Page 3
4. [Operational Management] 2012
Role of Financial Institutions
Since financial institutions accept deposits from investors and lend to borrowers
through securities purchases and loans, they serve the following purposes in the
markets suggested by Madura (2011):
1. They provide the service of depositing sources which has the characteristics
of liquidity and accommodation required by the investors.
2. They repackage amounts deposited by the investors to lend them to the
borrowers at the size and maturity they desire.
3. As a result, they provide a matching service efficiently that would be otherwise
hard to achieve by individuals on their own.
4. They manage the risks involved in making loans.
5. They ascertain the credit worthiness of borrowers in a better manner than
investors would be able to individually.
6. They use diversification to spread the risk of defaults on loans due to the sum
of investment available to them and therefore can absorb loan defaults in a
more efficient manner than individual investors would be able to.
Types and role financial Institutions
There are a number of different types of financial institutions. A few major types are
discussed here:
Commercial Banks
Commercial banks tend to be the foremost depository institutions. They offer
investors a large variety of deposit accounts and they transfer deposited money to
borrowers by offering loans. Commercial banks serve both the public and private
sectors including households, organisations, governments etc. Commercial banks
also lend money to one another in the instance when a certain bank has more
amounts being borrowed than amount being invested. The banks then lend money to
other banks through a federal funds market (Madura, 2011).
Page 4
5. [Operational Management] 2012
Saving Institutions
Another type of depository institutions are saving institutions, sometimes called thrift
institutions. These include savings banks, and savings and loan associations (S &
Ls). Saving institutions are similar to commercial banks such that they receive
deposits from investors and make loans to borrowers, but they differ in their
allocation of funds such that they concentrate on residential mortgage loans.
However, deregulation over the last 30 years has allowed savings institutions to
become more flexible in fund allocation, thinning the distinction between saving
institutions and commercial banks. However, an important distinction is that while
commercial banks are shareholder owned mostly, saving institutions tend to be
depositor owned ‘mutual’ institutions, although they can have shareholders too
(Madura, 2011).
Credit Union
Credit unions are distinguished from commercial banks and savings institutions in
two important ways; 1) they are non-profit institutions, 2) they are restricted in
providing services to members of a certain credit union with a common bond, for
instance an employee union. The second characteristic of credit unions tends to limit
the size of credit unions making them significantly smaller than commercial banks or
savings institutions. Credit unions generally exist to lend money to its members.
Insurance Companies
Insurance companies offer insurance policies to individuals and businesses that
ease the financial burden that comes with illness, death or damage to property.
Insurance companies charge a premium for the insurance provided and the
premiums collected are invested into other financial securities such as bonds or
stocks issued by the government or by organisations, until an insurance claim is
made and funds are required to cover these claims. Insurance companies finance
the borrowers through funds made available to them and hence act as important
financial intermediaries. The performance of insurance companies is largely linked to
the performance of the stock market or the bond market on which they invest
(Medure, 2011).
Page 5
6. [Operational Management] 2012
Pension Funds
Pension funds are run by funds received from pension plans offered by organisations
and governments to their employees. The funds are contributed by both the
employees and their employers. The pension fund is accumulated to pay for
retirement of the employees. The pension funds manage the funds until the
employees’ retirement by investing them into bonds or stocks issued by
organisations or government. In this way, they act similar to insurance companies by
financing the needs of the borrowers and hence serving as an important financial
intermediary.
Ratio analysis
The table below displays the financial ratios of Sainsbury’s for the last five years.
These ratios can be used to analyse the Sainsbury’s business performance.
Profitability Ratios 2012 2011 2010 2009 2008
Return on capital employed 11.1% 11.1% 11% 10.1% 8.8%
Gross profit margin 5.5% 5.5% 5.4% 5.5% 5.6%
Net profit margin 2.7% 3.0% 2.9% 3.6% 3.0%
Assets turnover 1.9% 1.9% 1.8% 1.9% 1.8%
Liquidity Ratios
Current ratio 0.60 0.58 0.64 0.54 0.61
Quick ratio 0.30 0.30 0.39 0.36 0.35
Activity Ratios
Average receivable turnover 54.5 61.5 92.9 60 56
Inventory turnover 21.6 26 27.4 26.2 29.1
Investor Ratios
Earnings per share 28.1 26.5 23.9 21.2 17.4
Dividend cover 1.75 1.75 1.68 1.67 1.63
Gearing Ratios
Debt to equity ratio 35.2 33.4 31.2 38.2 30.5
Sainsbury’s profitability ratios have been fairly stable over the past 5 years with gross
profit margin fluctuating slightly above or below 5.5 percent. This shows that despite a
growth in sales owing to new stores opening and increase in sales in current stores, the
cost of sales is increasing at a similar pace too, resulting in a steady gross profit margin.
Page 6
7. [Operational Management] 2012
This implies that Sainsbury’s has the potential to increase gross profit margin by
controlling cost of sales. The net profit margin jumped from 3 percent to 3.6 percent from
2008 to 2009, but has been steadily declining since then until 2012 where the lowest net
profit margin has been reported in the last 5 years of 2.7 percent. However, this seems
to be largely due to unrealised losses on financial instruments being revalued to their fair
value or pension liabilities changes. Since these losses are unrealised losses they may
or may not be permanent. However, this implies that Sainsbury’s should consider using
financial risk hedging in order to hedge the risk of financial losses in case they
materialise. Like other indicators of profitability, ROCE and ROA seem to be relatively
stable as well with ROCE fluctuating slightly around 11 percent and ROA fluctuating
slightly around 1.9 percent. This also suggests that the amount of capital employed in
the business and the assets available to support it and growing at the same rate as the
sales growth. This means that Sainsbury’s is relying on increase in asset base to
increase sales rather than increasing the efficiency of existing asset base and capital
employed. Therefore, Sainsbury’s should consider evaluating its processes in order to
increase efficiency of existing processes to improve the profitability and profitability ratios
of the organisation.
The liquidity ratios reveal the ability of the organisation to meet its short term cash
demands. Having a high ratio is essential to be able to meet short term liabilities but it
should not be high enough to indicate a hoarding of resources in the business which
would mean inefficient resource allocation. Since Sainsbury’s is a retailer and that too as
grocery retailer, it tends to have low liquidity because it holds fast-moving inventories of
goods which are sold at cash only. Sainsbury’s current ratio has also been fairly stable
around 0.6 except for 2009 when it fell to 0.54. The ratios indicate a fairly liquid position
where Sainsbury’s has 60p of current assets against every pound worth of current
liabilities. This shows that Sainsbury’s can fairly easily pay off its short term debts. The
quick ratio compares the most liquid current assets with current liabilities. This means
excluding inventory from the calculation of current assets. The values show that the
quick ratio has been decreasing over the last 5 years. This is despite an increase in
current ratio from 2009 to 2010 and from 2011 to 2012. This indicates that most of the
current assets of Sainsbury’s are in the form of inventories. A look at 2012’s current and
quick ratio shows that out of the 60p worth of current assets against every pound of
current liabilities, 30p is in the form of inventories. This means that half of Sainsbury’s
current assets are in the form of inventory. While this may not be of a great concern in a
fast-moving inventory business, which converts inventories into cash very quickly, this
Page 7
8. [Operational Management] 2012
seems like an inefficient use of resources as it may indicate an overstocking situation
where more cash is being held up in the form of inventories which are not required rather
than being invested in other more efficient places.
The activity ratios suggest how efficient Sainsbury’s is at converting its assets into cash.
Both the inventory turnover ratio and the receivables turnover ratio show a decreasing
trend. In 2008, the inventory was converted to cash an average of 29.1 times while this
has reduced 21.6 times in 2012. This shows that the activity has reduced and the
inventory is being held in the business for a longer period of time now than in 2008.
Similarly, the receivables turnover increased from 56 times in 2008 to 92.9 times in
2010. However, this has once again reduced to 54.5 times, which is the lowest turnover
in the past 5 years. This implies that Sainsbury’s debtors are taking longer than usual to
pay, which is again causing the efficiency of the business to be reduced as the
resources are tied into receivables or inventory when they can be used for investment
with a better return elsewhere. Overall, this shows that Sainsbury’s is not using its
resources in the most efficient manner.
The investor ratio calculated here is the Earning per share (EPS) and the dividend cover.
The EPS has demonstrated a positive trend. This is because in pound terms the net
profit has seen a steady growth while the number of shares in issue has remained fairly
constant. However, this represents increasing returns to shareholders and investors
which is always a positive sign. The dividend cover represents the number of times the
dividend can be covered by the net profit for the year. This has fluctuated between 1.65
and 1.75 over the last five years. Sainsbury’s has a target to maintain its dividend cover
above 1.75 which it has achieved in the last 2 years. The ratio implies that Sainsbury’s is
distributing nearly half of its income in dividends but also retains almost half of the
income to reinvest in the business and to fund expansions which is fairly reasonable.
This reinvestment has resulted in Sainsbury’s being able to fund operations and
expansion internally without having to issue fresh capital which has caused the EPS to
increase steadily as well.
Finally, the gearing ratio of Sainsbury’s has been considered. The debt to equity ratio
reveals a fluctuating trend with the ratio increasing from 30.5% in 2008 to 38.2% in 2009
before falling back to 31.2% in 2010. The current debt to equity ratio stands at 35.2%.
This shows that 35% of Sainsbury’s operations are financed by debt while the other 65%
is equity. This shows a low risk funding as most of the funds come from equity which
does not have a interest charge attached to it. However, this also shows that Sainsbury’s
has the ability to raise funds from outside sources easily in order to fund its expansion.
Page 8
9. [Operational Management] 2012
Therefore, Sainsbury’s can approach one of the financial institutions outlined above in
order to receive funding and do so easily due to its low debt to equity ratio.
Human Resource Management
Recruitment & Selection
Recruitment and selection are considered to be planned, rational activities, which
comprise sequenced stages of the process of resourcing employees; an activity that
forms part of the larger framework of human resource management. Bratton and Gold
(2007) make a distinction between the two terms by identifying a clear link between the
two, as follows:
“Recruitment is the process of generating a pool of capable people to apply for
employment to an organisation. Selection is the process by which managers and others
use specific instruments to choose from a pool of applicants a person or persons more
likely to succeed in the job(s), given management goals and legal requirements” (Bratton
and Gold, 2007, p. 39).
Foot and Hook (2005) add that despite being closely linked, recruitment and selection
require different skills and expertise and may or may not be carried out by different
employees. They highlight that the recruitment process might be outsourced to external
agencies but the selection process is generally kept in house, which clear differentiates
the two.
Recruitment and selection can be used as a strategic tool to shape any organisations’
effectiveness and to enhance performance. Organisations with the ability to attain
employees who possess the required skills and knowledge for their job, and the ability to
accurately predict the abilities they may generate in the future, can effectively improve
the organisation’s performance. Consequently, such organisations can save costs such
as costs pertaining to high employee absences or dissatisfied customers, as well as
create a mutually advantageous relationship with its employees generating commitment
by both the employer and the employee (French and Rumble, 2010).
Recruitment and selection gives organisations the opportunity to consider its employees
a source of competitive advantage, as well as form a key component of the human
Page 9
10. [Operational Management] 2012
resource management process. This leads to an interest in the fairness, reliability and
validity of the recruitment and selection process. Over the last 30 years, the changes in
work psychology have significantly influenced the modes through which employees are
recruited, by rigorously developing and evaluating the procedures used for selection
(Arnold et al, 2005).
As a result the validity and reliability of recruitment and selection tools is important.
Recruitment & Selection at Sainsbury’s
Recruitment and selection at Sainsbury’s goes through a four step procedure. All of
Sainsbury’s job vacancies are advertised and recruited through its online system.
Therefore, the first step for the process is to post vacancies on to the online system.
These vacancies are divided into different sections such as in-store jobs, finance etc.
The only way of applying to these jobs by applicants is to complete the online
application form. The application form has a psychometric test that tests the match of
the applicant with the organisational culture and the job, and a situational awareness
test that tests the applicant’s response judgment. This information is shared with the
applicants who are given feedback on how strong the match is.
The next step is finding out more about the applicants. If the first step identifies that
the applicant would be a good match for the role and Sainsbury’s overall, more
information is demanded through e-mail which includes previous addresses,
passport details, driving licence details, employment history including contact details,
and educational qualifications. Following this, Sainsbury’s makes any checks as
deemed necessary to further ascertain match. If the checks are all successful, the
applicant is invited to an interview. The details of the interview varies from job to job
but generally include an interview with an potential immediate line manager and
further tests such as numeracy, situational awareness etc. which are further meant
to identify the competence of the applicants. If the applicant is successful at this
stage, he or she is offered a job (Sainsburys, 2012).
Page
10
11. [Operational Management] 2012
Validity and Reliability
It is obvious that organisations wish to make sure that its recruitment and selection
procedures are effective, as would Sainsbury’s. However, it is also clear that making
decisions based on the applicant’s personal characteristics and match with
organisational culture is challenging and that frequently used selection procedures can
be significantly flawed. Organisations have to look for reliability and validity of
recruitment and selection procedures. French and Rumble (2010) elaborate what is
meant by reliability and validity in the context of recruitment and selection. They suggest
that reliability is concerned with temporal or re-test stability and consistency. Temporal
stability determines the effectiveness of selection tools by judging the consistent manner
in which it generates results. For instance, applicants could be asked to complete a
personality test at different times over several years. Consistency determines whether
the test measures what it aims to measure. For instance, some IQ tests may emphasise
an applicant’s vocabulary which would be enhanced by general and educational
backgrounds rather than being solely based on intelligence. Validity is based on face
validity, content validity and predictive validity. Face validity emphasises the extent to
which the selection tool used is acceptable. For instance, a correlation between a
person’s weight and strength may be probable which may help in jobs such as
stockroom controllers but applicants may be sceptical of having their weights measured
as part of the selection process. Content validity is concerned with the nature of the
measure and how adequate it is as a tool for selection. For instance, night time shift
managers would not be adequately tested if their on-job testing is conducted during the
day. Predictive validity is based on the link between scores on a certain selection test
and the future performance of the employee (French and Rumble, 2010).
It is clear that in order to improve its recruitment and selection procedures, Sainsbury’s
should consider the validity and reliability of its recruitment and selection procedures.
For instance, Sainsbury’s should consider enlarging its selection period to span over a
couple of months to allow re-test stability to be ensured by conducting similar tests
during the online application form and the interview. The cut off period would ascertain
that the online application test answers do not influence the answers in the interview and
hence re-test stability could be improved. Consistency is another important issue to be
considered. Sainsbury’s should ensure that the tests are devised by professionals who
are aware of the requirements of the job as well as the competences that are required
for the job. The questions should then be flexible enough to allow for the desired
Page
11
12. [Operational Management] 2012
competences to be connected to each job role than a generic one. For instance, a store
manager role would require different competences than a human resource expert and as
such the test should reflect the different competences required. Similarly, content validity
needs to be ensured such as asking a night time shift manager to do an on-the-job test
during the night instead of the day. Finally, predictive validity should be ascertained not
only to determine the effectiveness of the new recruits, but also for improving the quality
of future recruits.
Managing Information
Role & Importance Information Communications Technology (ICT)
ICT has increasingly become the fundamental component in organisations that impacts the
organisational design. Used in the appropriate manner, information systems and information
technology can leverage human resources, natural resources, raw materials and capital in
order to optimise organisational performance. ICT can be used to overhaul business
processes by designing processes around ICT to create synergies rather than just using ICT
as an add-on. ICT has changed how businesses work by changing the processes of
organisations, changing communication patterns and changing the way information is
processed and used for decision making (Pearlson and Saunders, 2010).
There is no doubt that the current era is that of technology where the technological
advancements are being made on a daily basis. While technology has altered the life of
individuals, at the same time it has also transformed businesses and business
processes. Nowadays, not only large businesses but even small and medium
businesses are highly dependent on technology for driving their operations, functions,
processes and infrastructures. Technology is also now viewed as a competitive source
for expansion and growth. Brown and Powell (2009) suggest that the most obvious and
immediate benefit of advancement in technology is its contribution to the transformation
of communication channels through tools such as e-mails, websites, instant messaging
etc. which have entirely reshaped communication within and outside businesses.
Improvements in communication have benefited both businesses and customers who
both now have information readily available to them or information that can be quickly
and easily be assimilated. Technologies such as satellite communication, networking,
Page
12
13. [Operational Management] 2012
cellular networks and internet have opened up new opportunities for business for
exploring, attracting and communicating with its customers.
Wijaya and Collery (2010) suggest that businesses appreciate the technological
breakthroughs because it gives them to opportunity to reduce costs, allow multi-tasking,
reduce errors, and assist in operational management. A number of manual tasks have
been replaced with computerised systems to save time, errors and labour costs. Even
quality management techniques such as Total Quality Management and Six Sigma are
more realistically achievable with the appropriate IT systems in place to implement them.
Moreover, IT alters the organisational decision making process, as well as the
information required for making these decisions. IT enables data that is needed to
produce timely and accurate information to be captured at source. This has resulted in
real-time information availability as well as a reduction in the need of data entry
employees who typed in information from data entry sheets into computers. Additionally,
it can alter the content and quantity of data available to the employees. Advancements in
technology have enabled organisations to maintain data warehouses where all
information is stored and can be retrieved to search for relevant information using data
mining tools. Data analytical tools have also advanced to allow employees and
managers to analyse data to identify trends, patterns or correlations between various
data. This information can be used by managers to make critical decisions. Moreover,
information systems such as decision support systems (DSS) and executive information
systems (EIS) support managers in making decisions as well. Overall, IT has facilitated
the flow of information to all levels of the organisation and provided the necessary tools
to filter and analyse this information, making decision making more informed, accurate
and timely (Pearlson and Saunders, 2010).
Role of IS in Sainsbury’s
Like any other organisation, Sainsbury’s makes use of information systems and
technologies in order to improve the organisational performance. Sainsbury’s uses IT in
a variety of different operational management processes. Its IT infrastructure ranges its
entire supply chain from manufacturers and suppliers to customers.
For manufacturers, Sainsbury’s has a web Electronic Data Interchange (EDI) in place
which allows it to communicate with manufacturers in real time to allow information
exchange regarding requirements, production volumes, product designs, and critical
Page
13
14. [Operational Management] 2012
path management. In addition, Sainsbury’s has a product performance and exception
management system called horizon. Horizon consists of three applications; alerting and
resolution management (ARM), product performance management (PPM) and
collaborative planning system (CPS) The ARM is a tool which automatically reports
breaches to pre-determined product thresholds to Sainsbury’s which can be tracked and
fixed quickly. PPM allows analysis of products such as average shelf life, sales volumes,
sales breakdown by time of the day etc. which allows Sainsbury’s and the manufacturers
or suppliers to mutually decide on a course of action based on the information available.
Finally, CPS allows Sainsbury’s and manufacturers or suppliers to collaborate in
planning promotions or new product launches etc. Another tool used by Sainsbury’s for
its suppliers is the Primary Stock Tracking (PST) that allows suppliers to track their stock
through Sainsbury’s to identify where they are being sold, in what quantity etc.
(Sainsbury, 2012).
All of these tools help create a stronger bond between the suppliers and Sainsbury’s as
well as allows suppliers to share control regarding their sales practices such as stock
volumes, promotions, displays etc. and hence reducing the burden on Sainsbury’s.
These IT packages also provide Sainsbury’s with real time information that they can use
themselves to make decisions regarding different products, for example deciding
whether it is profitable to continue selling a particular product at a particular branch, what
time the delivery should be timed in order for the product to be available at the right time
at which that product is mostly purchased, should the order quantity for a particular
product be increased or decreased etc. As a result, Sainsbury’s can operate a real time
inventory system which reduces inventory handling costs or the costs pertaining to stock
run-outs etc. Moreover, the ARM ensures that Sainsbury’s quality standards are
maintained and hence the tools also work as quality management technology.
Similarly, Sainsbury’s provides a number of IT solutions for its customers as well. In
addition to the Transactional Processing System (TPS) that records any sales directly
into the system, customers can also make purchases online on Sainsbury’s website
using the Online Transaction System (OLTP). In addition, Sainsbury’s has a loyalty card
scheme by the name of Nectar. The scheme enables customers to collect points on
purchases which they can redeem later on items they wish to purchase in the future.
This is a very useful data collection tool for Sainsbury’s. It allows Sainsbury’s to gather
information regarding each customer’s individual shopping preferences, brand
Page
14
15. [Operational Management] 2012
preferences, shopping patterns, types of products they are interested in etc. which
allows them to cater promotional material to that particular customer’s needs.
Consequently, any promotional material sent to customers at their home address or e-
mail would be tailored to that individual person’s preferences. Moreover, it will also give
information about shopping patterns of customers as a whole to Sainsbury’s which they
can use to make decisions regarding operations such as layout of stores, potential
locations of new stores etc. Finally, most recently, Sainsbury’s has introduced an IT tool
by the name of BrandWatch for its customers which allows customers to compare the
costs of a bucket of goods purchased against the cost of the same goods at its
competitors such as ASDA or Tesco. This tool can be accessed by customers using
Sainsbury’s website and it helps reinforce Sainsbury’s position as a competitive low cost
provider of goods, inducing brand loyalty in its customers (Sainsbury’s, 2012).
Sainsbury’s uses data accumulated from these various sources to feed into its own
internal systems such as Enterprise Resource Planning (ERP) which allows information
from internal sources such as Sainsbury’s own applications as well as external sources
such as government portals, new agencies etc. to be assimilated and shared throughout
the organisation to facilitate information flow as well as improve decision making by the
managers. This tool is integrated with the Online Analytical Processing (OLAP) system
which allows data to be data mined or analysed in order to reach appropriate
conclusions.
Conclusion
For any businesses’ operations to be successful, they need to be able to manage three
of its resources successfully; financial resources, human resources and IT resources. A
well balanced operations strategy to address all three of these aspects can serve a
company well. Sainsbury’s manages its resources fairly successfully. However, this
Page
15
16. [Operational Management] 2012
report highlights certain aspects of Sainsbury’s management of these resources which
can be improved upon to enhance the overall organisational performance. The financial
analysis identifies a steady return on investment for investors; however, it reveals low
efficiency for the usage of its current assets by tying up excess resources within the
business which can be improved. The human resource management is good but
Sainsbury’s can improve its recruitment and selection procedures by making sure they
are both valid and reliable. Finally, Sainsbury’s has incorporated IT at various levels
within the organisation and throughout its supply chain. However, full utilisation of these
systems is not being made as is evident by the financial analysis that the inventory is
being tied up in the business. Based on these findings, the following recommendations
can be made to Sainsbury’s.
Recommendation
First of all, Sainsbury’s needs to improve the usage of its resources to make them more
efficient. In particular, Sainsbury’s needs to manage its inventory and receivables well in
order to free up blocked resources which could be invested elsewhere to generate a
return, and to improve its liquidity position by improving the current and quick ratio. For
this purpose, Sainsbury’s should leverage its IT capabilities. With a little further effort
and planning, Sainsbury’s can implement a Just-in-Time (JIT) inventory system which
will allow it to order inventory on a JIT basis, i.e. only when the stock is low and
replenishment is needed so that when the fresh stock arrives, the stock can be displayed
and sold rather than being placed in the stock room. This will reduce the inventory
holding costs of Sainsbury’s as well as avoid stock build ups which results in tied up
resources. Therefore, Sainsbury’s can use its strengths in IT to tackle its financial
weaknesses.
Moreover, Sainsbury’s should consider the validity and reliability of its recruitment and
selection procedures. For instance, Sainsbury’s should consider enlarging its selection
period to span over a couple of months to allow re-test stability to be ensured by
conducting similar tests during the online application form and the interview. The cut off
period would ascertain that the online application test answers do not influence the
answers in the interview and hence re-test stability could be improved. Consistency is
another important issue to be considered. Sainsbury’s should ensure that the tests are
devised by professionals who are aware of the requirements of the job as well as the
competences that are required for the job. The questions should then be flexible enough
Page
16
17. [Operational Management] 2012
to allow for the desired competences to be connected to each job role than a generic
one. For instance, a store manager role would require different competences than a
human resource expert and as such the test should reflect the different competences
required. Similarly, content validity needs to be ensured such as asking a night time shift
manager to do an on-the-job test during the night instead of the day. Finally, predictive
validity should be ascertained not only to determine the effectiveness of the new recruits,
but also for improving the quality of future recruits.
Page
17
18. [Operational Management] 2012
References
Atrill, P. (2009) Financial Management for Decision Makers, 5th
Edition. Harlow:
Financial Times Prentice Hall.
Bloomberg Businessweek (2012) Sainsburys J plc Financial Ratios [Internet]
Available from
http://investing.businessweek.com/research/stocks/financials/ratios.asp?
ticker=SBRY:LN (accessed 26th
November 2012).
French, R., Rumbles, S. (2010) Recruitment and Selection, in Rees, G., French, R.
(2008) Leading, Managing and Developing People, 3rd
Edition. CIPD: London
Gup, B. E. (2008) Handbook for Directors of Financial Institutions. Edward Elgar
Publishing Limited: Cheltenham
J Sainsbury plc (2012) b2b Toolkit Overview [Internet] J Sainsbury plc. Available
from https://touchpoint.sainsburys.co.uk/wps/portal/home/applications/overview/!
ut/p/c5/04_SB8K8xLLM9MSSzPy8xBz9CP0os3gjD3cTD08TQ0sDFx9nA09H8zAXg
0B_AwN_c6B8pFm8s7ujh4m5j4GBhYubhYGRk6mZZ6CBi4GBpykB3eEg-
_DrB8kb4ACOBhB5uA3-
Qe6WBp4m3n7O_u5hIBX6fh75uan6BbkRBpkB6YoAlT8TsQ!!/dl3/d3/L2dBISEvZ0F
BIS9nQSEh/ (accessed 3rd
December 2012).
J Sainsbury plc (2012) How do I apply online for a permanent role? [Internet] J
Sainsbury plc. Available from
http://www2.sainsburys.co.uk/aboutus/recruitment/instore_roles/search_vacancies/p
ermanent.htm (accessed 28th November 2012).
J Sainsbury plc (2012) Annual Report and Financial Statements 2012. [Internet] J
Sainsbury plc. Available from http://www.j-
sainsbury.co.uk/media/649393/j_sainsbury_ara_2012.pdf (accessed 21st November
2012).
Page
18
19. [Operational Management] 2012
J Sainsbury plc (2011) Annual Report and Financial Statements 2011. [Internet] J
Sainsbury plc. Available from http://www.j-sainsbury.co.uk/investor-centre/reports/?
&page=0 #form_filter_media (accessed 21st
November 2012).
J Sainsbury plc (2010) Annual Report and Financial Statements 2010. [Internet] J
Sainsbury plc. Available from http://www.j-sainsbury.co.uk/investor-entre/reports/?
&page=0#form_filter_media (accessed 21st
November 2012).
J Sainsbury plc (2009) Annual Report and Financial Statements 2009. [Internet] J
Sainsbury plc. Available from http://www.j-sainsbury.co.uk/investor-entre/reports/?
&page=0#form_filter_media (accessed 23rd
November 2012).
J Sainsbury plc (2008) Annual Report and Financial Statements 2008. [Internet] J
Sainsbury plc. Available from http://www.j-sainsbury.co.uk/investor-entre/reports/?
&page=0#form_filter_media (accessed 23rd
November 2012).
Madura, J. (2011) Financial Markets and Institutions, 9th
Edition. Cengage Learning:
Oklahoma
Pearlson, K.E., Saunders, C.S. (2010) Managing and Using Information Systems: A
Strategic Approach, 4th
Edition. John Wiley & Sons: London
Page
19