The Importance of Commodity Derivatives

The Importance of Commodity Derivatives Equity Commodity Investment â€Å"A COMPARATIVE STUDY BETWEEN EQUITY COMMODITY INVESTMENT OPTION† ABSTRACT India, a commodity based economy where two-third of the one billion population depends on agricultural commodities, surprisingly has an under developed commodity market. Unlike the physical market, futures markets trades in commodity are largely used as risk management (hedging) mechanism on either physical commodity itself or open positions in commodity stock. For instance, a jeweller can hedge his inventory against perceived short-term downturn in gold prices by going short in the future markets. The study aims to know how of the commodities market and how the commodities traded on the exchange. The idea is to understand the importance of commodity derivatives and learn about the market from Indian point of view. In fact it was one of the most vibrant markets till early 70s. Its development and growth was shunted due to numerous restrictions earlier. Now, with most of these restrictions being removed, there is tremendous potential for growth of this market in the country. ACKNOWLEDGEMENT SYNOPSIS FOR THESIS DESIRED AREA Investments Commodity Market in India TITLE OF THE THESIS Comparative Study between Equity Commodity Investment Options† PROBLEM DEFINITION / HYPOTHESIS / RESEARCH OBJECTIVE To have a comparative study between two major Investments options Equity Commodity on the basis of their returns. To study simple properties of commodity futures as an asset class and analyze the hedging properties To understand the possible returns by investing in Commodity Futures when the Commodity Spot Prices are falling and comparing them with those in Stocks and Bonds. INTRODUCTION / LITERATURE TO THE AREA OF RESEARCH In the Capital Markets of the world, preferably in India, Stock is considered as the first option of investment. But, as we all know that there are many other options available with the people to invest / park their hard earned in some of these options are Derivative Market, Mutual Funds, NSC, KVPS, Insurance, FD, Savings A/c’s obviously less considered is the Commodity Market. In the above mentioned options there are some options that do not have the risk factor in it thus they give less return, while others having risk gives more return to the investor. One does not know that the Investments in Commodities will also yield almost the same returns as compared with the Stock, having the same amount of risk involved. SCOPE This research would throw light on the mentioned objectives make people aware of Commodity Futures as an Investment option – which is at its growing stage. RESEARCH METHODOLOGY Primary Data Collection Guidance from the External Guide. Guidance from the Internal Guide. Help from Faculties. Commodities Dealers. Commodities Players (Investors). Secondary Data Collection Web sites Journals Magazines (Financial) Newspapers Research Papers on the same topic Reports of Experts â€Å"Investment is a term with different closely-related meanings in business, finance and economics, related to saving or deferring consumption. An asset is usually purchased, or in a similar way a deposit is made in a bank, in hopes of getting a future return or interest from the same. Literally, investment means the action of putting something somewhere else In finance, investment can be referred to as buying securities or other monetary assets in the money markets or capital markets, or in fairly liquid real assets, such as gold, real estate etc. Valuation is the method for finding the true value of an asset. Different financial investments include shares, bonds and other equity investments. These financial assets are then expected to provide income/ positive future cash streams, and may increase or decrease in its value giving the investor capital gains or losses. Trading in contingent claims or derivative securities do not necessarily have future positive cash flows, and so are not considered assets, or securities or investments. Nevertheless, since their cash flows are closely related to or it is derived from cash flow of specific securities, they are often treated as investments. Banks, mutual funds, pension funds, insurance companies, collective investment schemes, and investment clubs can be used to make investments indirectly. An intermediary generally makes an investment using money from many individuals, each of whom receives a claim on the intermediary, though their legal and procedural details differ. LITERATURE REVIEW The capital market (securities markets) is the market for securities, where the companies and the government can raise funds for long term. Stock market and the bond market form part of capital market. Financial regulators, such as the RBI and SEBI, keep a watch on the capital markets in their respective countries to ensure that investors are protected against any fraud. The capital markets consist of the primary market, where the company floats new securities to investors, and the secondary market, where existing securities are traded. STRUCTURE OF CAPITAL MARKET Primary Market Secondary Market Derivative Market Commodity Market International Market IPO Public Issue) Right Issue Private Placement Sale purchase of existing share debenture Mutual fund Option Future Call Option Put Option Gold Silver Material Etc. NYSE Composite NASDAQ Composite Dow Jones I.A. S4P 500 NIKKEI – 225 NSE BSE Dealing in MCX dealing in STRUCTURE OF SECURITY MARKET Primary Market Secondary Market Derivative Market Commodity Market International Market IPO Public Issue) Right Issue Private Placement Sale purchase of existing share debenture Mutual fund Option Future Call Option Put Option Gold Silver Material Etc. NYSE Composite NASDAQ Composite Dow Jones I.A. S4P 500 NIKKEI – 225 NSE BSE Dealing in MCX dealing in A) Primary Market: It is that part of the capital markets that deals with the issuance of new securities. Companies, governments or public sector institutions can obtain funds through the issue of a new stock or bond which is called initial public offering (IPO). This is typically done through a syndication of securities dealers which in return earn a commission that is built into the price of the security offering. B) Secondary Market: The secondary market is the market for trading of securities that have already been issued in the market. Aftermarket is known as the market that exists in a new security just after the new issue. Investors and speculators can easily trade on the exchange once a newly issued stock is listed on a stock exchange, as market makers make bids and offers in the new stock. C) Derivative Market: Derivative Market Future Market Option Market Future Contract Say – One month – Two month – Three month Call Option Put Option Premium will change at the time of buying No Risk Premium will change at the time of sells No Risk Future Contracts: The future contracts are the future contracts or bids for some specific period like one month, two months and three months, accepted from investor in capital market which is put. Option Market :- The option market is the place where trading is for call and put or buy and sell and only the premium is charged for all call and put trading. D) Commodity Market: Commodity trading might sound like a strange term, but simply put, commodities are items like, wheat, corn, gold and silver, and Cattle and Pork Bellies, and Crude Oil and it has emerged as an important player in the way that people invest in and speculate. INVESTMENT ALTERNATIVES INVESTMENT Financial Assets Real Estate Marketable Financial Assets. Non-marketable Financial Assets Treasury Bills C.D. C.P. Repo Govt. Fixed Insurance bond Govt. Securities Debenture Shares Mutual Fund Equity Pref NSS Bank Deposit Post Office KVP NSC Company Deposit EPF/PPF LIC Gold Silver Previous objects Painting /Art Land / Building Machinery/Equipment etc MARKETABLE FINANCIAL ASSETS Equity or Preference shares Govt/PSU/Pvt/other bonds Mutual Funds Shares (Equity and Preference Share): If you have equity shares of a company, you have an ownership stake in that company. This essentially means that you have a residual interest in income and wealth of the company. Equity shares are classified into the following broad categories Blue chip shares Growth shares Income shares Cyclical shares Speculative shares Bonds: Bonds or debentures represent long-term debt instruments where issuer of a bond promises to pay a stipulated stream of cash flow. Bonds may be classified into the following categories Government securities. Savings bonds Government agency securities. PSU bonds Debentures of private sector companies Preference shares Money Market Instruments:- Money market instruments are debt instruments which have a maturity of less than one year at the time of issue. The important money market instruments are: Treasury bills Commercial paper Certificates of deposit Mutual Funds: A Mutual Fund is a trust that collects the savings of a number of investors, and invest in capital market instruments such as shares, debentures and other securities who share a common financial goal. Unit holders share the income earned through these investments and the capital appreciation in proportion to the number of units owned by them. Mutual Fund offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost and thus is the most suitable investment for the common man. NON-MARKETABLE FINANCIAL ASSETS: A good portion of financial assets is represented by non-marketable financial assets. These can be classified into the following broad categories. Bank deposits Post office deposits Company deposits Provident fund deposits/EPF LIC NSC NSS KVP Life Insurance: Life insurance can also be considered as an investment as insurance premiums represent the sacrifice, and the assured sum represents the benefit. The important types of insurance policies in India are : Endowment assurance policy Money back policy Whole life policy Term assurance policy REAL ESTATES AND OTHERS Real Estate: Residential house is the most important asset in the portfolio for the bulk of the investors. More affluent investors are likely to be interested in the following types of real estate, in addition to a residential house Agricultural land Semi – urban land Commercial property Precious Object: Precious objects are items that are highly valuable in monetary terms. Some important precious objects are ; Gold and silver Precious stones Art objects Financial Derivatives: A financial derivative is an instrument whose value is derived, from the value of an underlying asset be it a real asset, such as gold wheat or oil, or a financial asset, such as a stock, stock index, bond or foreign currency. Forwards Contracts A forward contract, as it occurs in both forward and futures markets, always involves a contract initiated at one time; Performance in accordance with the terms of the contract occurs at one time; Performance in accordance with the terms of the contract occurs at a subsequent time. Further, the type of forward contracting to be considered here always involves an exchange of one asset for another and the price at which the exchange occurs is set at the time of the preliminary contracting. Actual payment and delivery of the good occur afterwards. Futures Contracts A futures contract is highly standardized forward contract with closely specified contract terms and it calls for the exchange of some good at a future date for cash, with the payment for the good to occur at that future date like all forward contracts. The buyer of a futures contract undertakes to receive delivery of the good and pay for it while the seller of a futures promises to deliver the good and take delivery of payment. The price of the good is determined at the initial time of contracting. Option Option contracts grant the right but not the compulsion to buy in the case of a call or sell, in the case of a put a specified quantity of an asset at a predetermined price on or before a specified future date option contract would expire if it is not in the best interest of the option owner to exercise. Swaps Swaps normally trade in the OTC market but there is monitoring of this market segment. Swaps are agreement between two parties to exchange cash flows in the future according to a approved formula and In case of popular interest rate swap, one party agrees to pay a series of set cash flows in exchange for a sequence of variable cost. When compared to global derivatives markets Indian derivative markets are still in the emerging stage. Indian derivatives markets share in the world derivatives market’s value and volumes are very small. But with the starting of trading in different financial and commodities segment, Indian markets are growing very fast. Indian markets are operating with high efficiency and on parity with international standards. The major exchanges and the derivative products traded in India: 1. Bombay Stock Exchange (BSE) 2. National Stock Exchange OF India Ltd (NSE) 3. National Commodity Derivatives Exchange Limited (NCDEX) 4. Multi Commodity Exchange of India Ltd (MCX) 5. National Multi Commodity Exchange of India Ltd (NMCE) INVESTMENT ATTRIBUTES For evaluating an investment values, the following attributes are relevant. Rate of return Risk Safety Profitability Purchasing power risk Maturity Marketability Tax shelter Convenience Rate of Return: The rate of return on an investment for a period (which is usually a period of one year) is defined as follows: Rate of return = Annual income + (Ending price – Beginning price) Beginning price To illustrate, consider the following information about a certain equity share. Price at the beginning of the year: Rs. 80.00 Dividend paid in the year: Rs. 4.00 Price at the end of the year: Rs. 87.00 The rate of return of this share is calculated as follows: 4.00 + (87.0-80.00) = 13.75 percent 80.00 Yield In general, yield is  the yearly rate of return  for any investment and is expressed as a percentage, With stocks, yield can refer to the rate of income generated from  a stock in the form of regular dividends and is often represented in percentage form, calculated as the annual dividend payments divided by the stocks current share price. Investors can use yield to measure the performance of their investments and  compare it to the yield on other investments or securities. Generally, higher risk securities offer higher expected yields as compensation for the additional risk incurred through ownership of the security. Investors looking to make income or cash flow streams from equity investments commonly look for stocks  that shell out high dividend yields, in other words, stocks that give a relatively large amount of annual cash dividends for a relatively low share price. Annual income (interest or dividends) divided by the current price of the security. This measure looks at the current price of  a bond instead of its face value and represents the return an investor would expect if  he/ she  purchased the bond and held it for a year. This measure is not an accurate reflection of the actual return that  an investor  will receive in all cases  because bond and stock  prices are continuously changing due to market factors. Capital Appreciation: It’s the rise in the market price of an asset. Capital appreciation is one of two major ways for investors to profit from an investment in a company. The other is through dividend income. Risk The risk of investment may be classified in following ways Type of Risk Internal Rate of Return Risk Market risk Inflation Risk Default Risk Business Risk Financial Risk Management Risk Liquidity Risk The rate of return from investments like equity shares, real estate, and gold can vary rather widely. The risk of investment refers to the variability of its rate of return: How much do individual outcomes deviate form the expected value? A simple measure of dispersion is the range of values, which is simply the difference between the highest and the lowest values. Other measures commonly used in finance are as follows: Variance :This is the mean of the squares of deviations of individual returns around their average values Standard deviation:This is the square root of variance Beta :This reflects how volatile the return from an investment is, in response to market swings. Risk = Actual Return – Expected Returns Condition: If, Actual Return = Expected Return = Risk Free Investment If, Actual Return > or Low Variance (Low Risk) High Variance (High Risk) Expected Return Marketability: An investment is highly marketable or liquid if: (a) it can be transacted quickly: (b) the transaction cost is low; and (c) the price change between two successive transactions is negligible. The liquidity of a market may be judged in terms of its depth, breadth, and resilience. Depth refers to the existence of buy as well as sell orders around the current market price. Breadth implies the presence of such orders in substantial volume. Resilience means that new orders emerge in response to price changes. Generally, equity shares of large, well – established companies enjoy high marketability and equity shares of small companies in their formative years have low marketability. High marketability is a desirable characteristic and low marketability is an undesirable one. How does one evaluate the marketability of an investment like a provident fund deposit which is non-marketable by its very nature? In such a case, the relevant questions of ask is: can withdrawals be made or loans be taken against the deposit? Such as investment may be regarded as highly marketable if any of the following conditions are satisfied: A substantial portion of the accumulated balance can be withdrawn without significant penalty; A loan (representing a significant portion of the accumulated balance) can be raised at a rate of interest that is only slightly higher than the rate of interest earned on the investment itself. Tax Shelter: Some investments provide tax benefits; others do not. Tax benefits are of the following three kinds. Initial Tax Benefit; An initial tax benefit refers to the tax relief enjoyed at the time of making the investment. For example, when you make a deposit in a Public Provident Fund Account, you get a tax benefit under Section 80 C of the Income Tax Act. Continuing Tax Benefit: A continuing tax benefits represent the tax shield associated with the periodic returns form the investment. For example, dividend income and income from certain other sources are tax – exempts, upto a certain limit, in the hands of the recipient. Terminal Tax Benefits; A terminal tax benefit refers to relief from taxation when an investment is realized or liquidated. For example, a withdrawal from a Public Provident Fund Account is not subject to tax. Convenience: Convenience broadly refers to the ease with which the investment can be made and looked after. Put differently, the questions that we ask to judge convenience are: Can the investment be made readily? Can the investment be looked after easily? The degree of convenience associated with investments varies widely. At one end of the spectrum is the deposit in a savings bank account that can be made readily and that does not require any maintenance effort. At the other end of the spectrum is the purchase of a property that may involved a lot of procedural and legal hassles at the time of acquisitions and a great deal of maintenance effort subsequently. A COMPARATIVE STATEMENT OF VARIOUS INVESTMENTS ALTERNATIVES A summary evaluation of these investment avenues in terms of key investment attributes is given in Exhibit below. It must be emphasized that within each investment category individual assets display some variations. Exhibit: Summary Evaluation of Various Investment Avenues Return Current yield Capital appreciation Risk Marketability / Liquidity Tax shelter Convenience Equity Shares Low High High Fairly high High High Non – convertible Debentures High Negligible Low Average Nil High Equity Schemes Low High High High High Very high Debt Schemes Moderate Low Low High No tax on dividends Very high Bank deposits Moderate Nil Negligible High Nil Very high Public provident fund Nil Moderate Nil Average Section 80 C benefit Very high Residential Moderate Moderate Negligible Low High Fair Gold and Silver Nil Moderate Average Average Nil Average INVESTMENT VERSUS SPECULATION While it is difficult to draw the line of distinction between investment and speculation, it is possible to broadly distinguish the characteristics of an investor from those of a speculator as follows. Investor Speculator Planning horizon An investor has a relatively longer planning horizon. His holding period is usually at least one year. A speculator has a very short planning horizon. His holding may be a few days to a few months. Risk disposition An investor is normally not willing to assume more than moderate risk. Rarely does he knowingly assume high risk. A speculator is ordinarily willing to assume high risk. Return expectation

Rapid Urbanization Upsurge Noncommunicable Diseases Health And Social Care Essay

Rapid urbanisation, modernisation and population growing in developing states has led to an rush of non-communicable diseases which are associated with important morbidity and mortality. Metabolic Syndrome besides described as â€Å" Deadly Quartet † and X syndrome ( 2, 3 ) is one of these disease entities defined by bunch of cardiovascular hazard factors which to a greater extent is influenced by ethnicity/race. This encompasses atherogenic dyslipidemia, high blood pressure, dysglycemia and splanchnic fleshiness and pro coagulator province. Apart from increasing prevalence, the age of oncoming is besides worsening among South Asiatic ( SA ) population due to familial sensitivity, ingestion of easy available energy dense nutrients from an early age. This tendency has got major wellness deductions since South Asians constitute one fifth of population all over the universe ( 4 ) and the wellness attention system is non really fit to cover with this medical crisis. Evidence sugge sts that it non merely amplifies the hazard of coronary bosom disease ( 5 ) but besides gives rise to cerebrovascular diseases. Five diagnostic standards have been put frontward since the origin of this syndrome which has created perplexity among practicians. In 1998, World Health Organization ( WHO ) ab initio proposed a definition for metabolic syndrome ( 6 ) with chief accent on gluco-centricity. In 1999, the European Group for the survey of Insulin Resistance ( EGIR ) recommended more or less similar standards with lower cut offs for high blood pressure ( 7 ) . Thereafter in 2001, National Cholesterol Education Program Adult Treatment Panel III ( NCEP ATP III ) proposed another definition for the diagnosing of metabolic syndrome with less focal point on insulin opposition as compared to WHO standards but non turn toing separate cut off points of waist perimeter for Asiatic population ab initio ( 8 ) . In 2003, American Association of Clinical Endocrinologist ( AACE ) proposed another set of standards for the diagnosing of metabolic syndrome. The chief restriction of the above mentioned standards is that the diagnosing is based on clinical judgement alternatively of presence of specific figure of hazard factors ( 9 ) . Sing that SA have a higher per centum of organic structure fat chiefly in the signifier of abdominal adiposeness at a lower BMI in comparing with other population, International Diabetes Federation ( IDF ) in 2005 suggested separate cutoff points of waist perimeter for Asiatic population and defined cardinal fleshiness as waist perimeter of more than 80 centimeter for adult females and 90 centimeter in work forces based on local statistics from the corresponding country ( 10 ) . The revised NCEP ATPIII modified for South Asiatic population incorporated the same cut off points for Asiatic population as given by IDF ( Table 1 ) . Apart from the cut off differences, NCEP ATP III gives equal weight to each constituent of metabolic syndrome as compared to IDF for which abdominal fleshiness remains a requirement for the diagnosing ( 10 ) . Furthermore, microalbuminuria which is a controversial variable of WHO criteria is non included in other definitions. Among these definitions, WHO, NCEP ATPIII & A ; IDF have been the chief 1s which are used most widely ( Table 1 ) . Type 2 diabetes is besides emerging as a planetary epidemic with increasing prevalence in developing states. Pakistan is among top 10 states estimated to hold the highest figure of diabetics busying 6th place on the diabetes prevalence naming presently ( 11 ) and it is estimated that prevalence would be doubled by 2025. Metabolic syndrome in combination with diabetes increases the hazard of both macro vascular, micro vascular complications and coronary artery disease patterned advance due to associated high blood pressure, lipoprotein abnormalcies and splanchnic fleshiness ( 12 ) . There are surveies that have looked into the differences in most widely used definitions of metabolic syndrome in general ( 13-17 ) , but merely few surveies have compared these definitions in the diabetic population ( 18-20 ) . Therefore we decided to find the frequence of metabolic syndrome in Type 2 diabetics harmonizing to NCEP ATPIII, IDF and WHO definitions and so to compare and contrast these traits within Pakistani population. Methods: This survey was conducted at the out-patient clinics of one of the big third attention infirmaries at Karachi, Pakistan. Data was collected retrospectively of type 2 diabetic patients sing clinics between June till November 2008 by utilizing a questionnaire which included demographic features and single constituents of metabolic syndrome i.e. weight, tallness, waist perimeter and BMI etc. Both hip and waist perimeter were recorded in centimetres and waist/hip perimeter was calculated ( WHR ) . BMI was calculated as a ratio of weight in kilogram to height in metres squared.Lab checks:All the research lab trials which are routinely done for patients with type 2 diabetes including triglycerides and high denseness lipoprotein ( HDL-C ) were recorded. Patients already on anti hypertensive and anti lipid medicines specifically in the signifier of fibric acid derived functions and nicotinic acids were taken as instances of high blood pressure and hypertriglyceridimia severally irrespective of their blood force per unit area and lipid degrees. Since all the patients in the survey were diabetics, insulin degrees were non taken into history. Statistical Analysis: The information was analyzed individually harmonizing to NCEP ATP III, IDF and WHO definitions and the consequences were so compared. The frequence of Metabolic syndrome was calculated with 95 % CI based on three different standards ‘s. The informations were presented as the mean A ± SD or per centum ; uninterrupted variables were compared by agencies of independent sample t-test and categorical variables were compared by chi-square. All analyses were conducted by utilizing the statistical bundle for societal scientific disciplines SPSS 14. A kappa trial was done to find the concurrency between three definitions. In univariate analyses, comparing between metabolic syndrome and without metabolic syndrome was done for each variable of involvement. Multivariable logistic arrested development analysis was conducted to place the factors associated with metabolic syndrome. All P values were two tailed and considered statistically important ifA a†°Ã‚ ¤ 0.05. Out of entire 210 type 2 diabetic patients, 112 ( 53.3 % ) were males and 98 ( 46.7 % ) were females. Their average age ( standard divergence ) was 53.35 A ± 11.46 old ages. The mean ( SD ) continuance of diabetes mellitus was 8.48 A ± 7.18 old ages. One hundred and ninety three ( 91.9 % ) were found to hold metabolic syndrome harmonizing to NCEP ATP III in comparing to 182 ( 86.7 % ) based on IDF standards. Lower frequence was documented with WHO standards of 171 ( 81.4 % ) . The frequence increased to 179 ( 85.2 % ) by WHO by utilizing the new cut offs for specifying corpulence ( BMI of 23 vs. 30 ) . The grade of understanding ( kappa statistic ) between WHO and ATP III and WHO and IDF definitions were 0.436 95 % CI 0.26-0.60 and 0.417 95 % CI 0.25-0.57respectively. In contrast kappa statistic between IDF and ATP III definitions was found to be 0.728 95 % CI 0.57-0.87.The overall understanding between three definitions was 0.37 ( 95 % CI 0.26-0.51 ) .The cardinal fleshiness was present in 162 patients ( 77 % ) by WHO followed by 197 ( 90.5 % ) based on IDF & A ; NCEP ATP III. Hypertension was found in 116 patients ( 55.2 % ) harmonizing to WHO in comparing to 147 ( 70 % ) by NCEP & A ; IDF cut off of blood force per unit area. Presence of low HDL cholesterin once more differed being present in 77 ( 36.7 % ) when WHO definition was applied and 144 ( 68.6 % ) by ATP III and IDF. Furthermore, gender wise dislocation of frequence of metabolic syndrome by WHO showed that 84 ( 85.7 % ) of females suffered from metabolic syndrome as compared to 87 ( 77.7 % ) in males a difference non statistically important ( p=0.13 ) . However, by all other standards metabolic syndrome was significantly more common among females as compared to males, 95.9 % vs. 88.4 % ( p=0.04 ) by ATP III & A ; 95.9 % vs. 78.6 % ( p & lt ; 0.001 ) by IDF. For prevalence of hypertriglyceridemia, no statistically important difference between both genders was found. However, for low HDL cholesterin, prevalence was higher in males 44 ( 57.14 % ) than in females 33 ( 43 % ) by WHO standards ( P & lt ; 0.001 ) . In contrast on the footing of ATP III and IDF definitions, prevalence of low HDL cholesterin degrees was higher ( p=0.009 ) in females 77 ( 57.46 % ) than in males 57 ( 42.53 % ) . Likewise, cardinal fleshiness was found to be more common among female patients based on IDF & A ; NCEP ( ATPIII ) cutoffs 64.8 % females vs. 35.2 % ( & lt ; 0.001 ) but demoing rearward form with WHO criteria,57.14 % males vs. 43 % females ( p-value & lt ; 0.001 ) . Discussion: Our survey showed a high frequence of metabolic syndrome in type 2 diabetics based on NECP ( ATPIII ) and IDF standards. This frequence was rather high ( 91.9 % ) as compared to 46 % found in another infirmary based survey from Pakistan ( 21 ) . This difference could non be merely attributed to the different waist cutoffs used based on modified NCEP ( ATPIII ) in our survey because even comparing with WHO categorization revealed important difference between two surveies from the same part. This difference in frequence is really interesting maintaining in position that both of these surveies were done in the same part but different vicinities. The disparity could be due to low frequence of fleshiness found in the old survey ( 30 % ) in comparing to our survey ( 90.5 % ) . It is speculated that this intra regional difference could be due to the fact that certain communities have high inclination to develop fleshiness and metabolic syndrome despite of belonging to the same state due to differences in life manner, eating wonts and degree of physical activity. On the other manus, another infirmary based survey another metropolis revealed comparable frequence of metabolic syndrome harmonizing to NCEP standards ( 22 ) . In infirmary based survey from Iran the prevalence in type 2 diabetics on footing of NCEP ( ATPIII ) standards utilizing BMI alternatively of waist perimeter was found to be 65 % ( 23 ) .This difference highlights the importance of abdominal adiposeness which is a better marker of metabolic syndrome as compared to BMI. A multicenter infirmary based survey in Brazil showed instead close frequence ( 85 % ) in type 2 diabetics ( 24 ) although the survey population was rather different being white people of European descent. Likewise, in Finnish survey prevalence was found to be 91.5 % in diabetic work forces and 82.7 % in adult females ( 25 ) . Our information was besides consistent with Indian survey demoing prevalence of 91.1 % ( 16 ) utilizing the same NCEP ( ATPIII ) definition. However, separate constituents of metabolic syndrome were found to be more common in our population as compared to South Indians ( 16 ) . The higher frequence of metabolic syndrome in diabetic population fou nd in our survey is a beginning of major concern since diabetes itself is an of import hazard factor for atherosclerotic cardiovascular disease ( ASCVD ) and presence of metabolic syndrome in combination plants as a two border blade. Evidence suggests that combination of the constituents of the metabolic syndrome is associated with both micro and macro vascular complications and distal neuropathy in patients with type 2 diabetes mellitus ( 24 ) . In position of the high frequence, type 2 diabetic patients should non merely be screened for this deathly syndrome but besides offered intensive direction in order to avoid complications. Similarly highly high frequence of cardinal fleshiness ( 90.5 % ) in our diabetic population is besides unreassuring since there is ample grounds associating cardinal fleshiness with coronary bosom disease ( 26 ) and insulin opposition is besides significantly associated with waist girth ( 27 ) . The higher frequence of metabolic syndrome in adult females harmonizing to all standards besides consistent with other surveies from South Asiatic states ( 28 ) could be attributed to less physical activity in adult females due to cultural and cultural limitations on out-of-door activities. This besides highlights the importance of instruction of our adult females in footings of bar of the development of metabolic syndrome with life manner intercession which would indirectly act upon life manner and eating wonts of whole household. The presence of multiple definitions of metabolic syndrome has been really confusing and argument ever exist which standards should be used in footings of diagnosing of metabolic syndrome particularly in diabetic patients. The somewhat higher prevalence of metabolic syndrome by ATP III definition in comparing to IDF ( 91.9 % vs. 86.7 % ) was likely due to the comparative flexibleness of the ATP III definition in footings of non taking abdominal fleshiness as a requirement for the diagnosing. Except for this difference the ATP III and IDF definitions are basically indistinguishable reflected in the grade of understanding ( kappa statistic ) between the two definitions which was in a good scope at 0.728. Harmonizing to this, NCEP ( ATPIII ) and IDF are the most dependable standards ‘s for naming metabolic syndrome in type 2 diabetic patients, with NECP capturing more patients in comparing with IDF definition. In contrast WHO showed lower frequence of metabolic syndrome due to different cutoffs used for HDL degrees and fleshiness. This difference remained important even after seting it with BMI cutoffs for Asiatic population of 23 vs.30 endorsed by WHO expert audience every bit good ( 29, 30 ) pointing towards the fact that waist perimeter or cardinal fleshiness is more valuable tool for sensing of metabolic syndrome in Asiatic population.Decision:On the footing of these findings NCEP ( ATPIII ) modified standards should be sooner used in Pakistani population since do ing waist perimeter as an obligatory standard would still lose out 5.2 % of the instances of metabolic syndrome harmonizing to our survey. But to farther validate these recommendations we need surveies to gauge the prognostic power for micro vascular and macro vascular complications to set up the most appropriate definition of metabolic syndrome to be used in South Asiatic population with a diagnosing of type 2 diabetes. The alarmingly high frequence of metabolic syndrome in type 2 diabetes found in our survey points towards the fact that our wellness attention system needs to take emergent stairss in bar of this syndrome through life manner intercession plans.

Customer-Driven Strategic Marketing

Chapter 1 Customer-Driven Strategic Marketing Lecture Outline I. Defining Marketing We define marketing as the process of creating, distributing, promoting, and pricing goods, services, and ideas to facilitate satisfying exchange relationships with customers and to develop and maintain favorable relationships with stakeholders in a dynamic environment. [ A ]. Marketing Focuses on Customers [ 1 ]. As the purchasers of the products that organizations develop, promote, distribute, and price, customers are the focal point of all marketing activities. [ 2 ].The essence of marketing is to develop satisfying exchanges from which both customers and marketers benefit. [ 3 ]. Organizations generally focus their marketing efforts on a specific group of customers, or target market. [ B ]. Marketing Deals with Products, Distribution, Promotion, and Price 1. Marketing is more than simply advertising or selling a product; it involves developing and managing a product, making the product available i n the right place and at a price acceptable to buyers, and communicating information to help customers determine if the product will satisfy their needs. 2.These activities—product, distribution, promotion, and pricing—are known as the marketing mix because marketers decide what type of each element to use and in what amounts. 3. The Product Variable [ a ])The product variable of the marketing mix deals with researching customers’ needs and wants and designing a product that satisfies them. [ b ])A product can be a good, a service, or an idea. ( [ 1 ])Good—a physical entity ( [ 2 ])Service—the application of human and mechanical efforts to people or objects to provide intangible benefits to customers ( [ 3 ])Idea—concept, philosophy, image, or issue c ])The product variable includes the creation or modification of brand names and packaging. It may also include decisions regarding warranty and repair services. [ d ])Product variable decisions and related activities are important because they directly impact the creation of products that meet customers’ needs and wants. 4. The Distribution Variable In dealing with the distribution variable, a marketing manager makes products available in the quantities desired to as many target market customers as possible, keeping total inventory, transportation, and storage costs as low as possible. . The Promotion Variable The promotion variable relates to activities used to inform individuals or groups about an organization and its products. a)Promotion can be aimed at increasing public awareness of an organization and new or existing products. b) Promotional activities can also educate customers about product features or urge people to take a particular stance on a political or social issue. 6. The Price Variable a)The price variable relates to decisions and actions associated with establishing pricing objectives and policies and determining product prices. )Price is a critic al component of the marketing mix because customers are concerned about the value obtained in an exchange. 7. Marketing mix variables are often viewed as controllable because they can be modified; however, economic conditions, competitive structure, or government regulations may limit a marketing manager’s influence. [ C ]. Marketing Builds Relationships with Customers and Other Stakeholders 1. Individuals and organizations engage in marketing to facilitate exchanges—that is, the provision or transfer of goods, services, or ideas in return for something of value. [ 4 ].Four conditions must exist for an exchange to occur: a)Two or more individuals, groups, or organizations must participate, and each must possess something of value desired by the other party. b)The exchange should provide a benefit or satisfaction to both parties involved in the transaction. c)Each party must have confidence in the promise of the â€Å"something of value† held by the other. d)To b uild trust, the parties to the exchange must meet expectations. [ 5 ]. An exchange will not necessarily take place just because these conditions exist; marketing activities can occur even without an actual transaction or sale.Figure 1. 2 depicts the exchange process. 6. Marketing activities should attempt to create and maintain satisfying exchange relationships. [ 7 ]. Marketers are also concerned with building relationships with relevant stakeholders who have a â€Å"stake,† or claim, in some aspect of a company’s products, operations, markets, industry, and outcomes; these may include customers, employees, investors and shareholders, suppliers, governments, communities, and many others. [ D ]. Marketing Occurs in a Dynamic Environment . The marketing environment, which includes competitive, economic, legal and regulatory, technological, and socio-cultural forces, surrounds the customer and affects the marketing mix as shown in Figure 1. 1. 2. The forces of the market ing environment affect a marketer’s ability to facilitate exchanges in three ways: a)They affect customers’ lifestyles, standards of living, and preferences and needs for products. b)They help determine whether and how a marketing manager can perform certain marketing activities. )They affect a marketing manager’s decisions and actions by influencing buyers’ reactions to the organization’s marketing mix. 3. Marketing environment forces can fluctuate quickly and dramatically. 4. Changes in the marketing environment produce uncertainty for marketers and at times hurt marketing efforts, but they also create opportunities. 5. Marketing mix elements—product, distribution, promotion, and price—are factors over which an organization has control; the forces of the environment, however, are subject to far less control. II.Understanding the Marketing Concept A. According to the marketing concept, an organization should try to provide products t hat satisfy customers’ needs through a coordinated set of activities that also allows the organization to achieve its goals. 1. Customer satisfaction is the major focus of the marketing concept. a)To implement the marketing concept, an organization focuses on customer analysis, competitor analysis, and integration of the organization’s resources to provide customer value and satisfaction, as well as long-term profits. )The organization must also continue to alter, adapt, and develop products to keep pace with customers’ changing desires and preferences. [ 8 ]. The marketing concept is not a second definition of marketing. It is a management philosophy guiding an organization’s overall activities. [ 9 ]. It is important for marketers to consider not only current buyers’ needs, but also the long-term needs of society. B. Evolution of the Marketing Concept 1. The Production Orientation )During the second half of the nineteenth century, the Industrial Revolution was in full swing in the United States. b)As a result of new technology and new ways of using labor, products poured into the marketplace, where consumer demand for the new manufactured goods was strong. 2. The Sales Orientation a)Between the mid 1920s and the early 1950s, businesspeople viewed sales as the major means of increasing profits. b)During this era, businesspeople believed that the major marketing activities were personal selling, advertising, and distribution. 3.The Marketing Orientation a)By the early 1950s, some businesspeople recognized they must first determine what customers want and then produce it, rather than make products and try to persuade customers that they need what is produced. b)A marketing orientation requires the â€Å"organization-wide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across departments, and organization-wide responsiveness to it. † c)Today, businesses want to satisfy customers and build meaningful, long-term buyer-seller relationships.C. Implementing the Marketing Concept To implement the marketing concept, a marketing-oriented organization must accept some general conditions and recognize and deal with several problems. 1. Management must first establish an information system to discover customers’ real needs and then use the information to create satisfying products. 2. To satisfy customers’ objectives as well as its own, a company must also coordinate all its activities. III. Managing Customer Relationships A.Achieving the full profit potential of each customer relationship should be the fundamental goal of every marketing strategy. 1. At the most basic level, profits can be obtained through relationships in the following ways: a)By acquiring new customers b)By enhancing the profitability of existing customers c)By extending the duration of customer relationships 2. Implementing the marketing concept means optim izing the exchange relationship—the relationship between a company’s financial investment in customer relationships and the return generated by customers responding to that investment.B. The term relationship marketing refers to â€Å"long-term, mutually beneficial arrangements in which both the buyer and seller focus on value enhancement through the creation of more satisfying exchanges. † 1. Relationship marketing continually deepens the buyer’s trust in the company, and as the customer’s confidence grows, this in turn increases the organization’s understanding of the customer’s needs. [ 10 ]. Eventually this interaction becomes a solid relationship that allows for cooperation and mutual dependence. C.Customer-centric marketing requires developing collaborative relationships with customers based on focusing on their individual needs and concerns. 1. It adopts the view that customers buy offerings which provide value and prefer a rel ationship rather than a transactional orientation. 2. Collaborating with and learning from customers leads to a â€Å"sense and respond† approach rather than a produce and sell approach. D. Customer relationship management (CRM) uses information about customers to create marketing strategies which develop and sustain desirable customer relationships. 1.By increasing customer value over time, organizations try to retain and increase long-term profitability through customer loyalty. 2. Managing customer relationships requires identifying patterns of buying behavior and using that information to focus on the most promising and profitable customers. IV. Value-Driven Marketing A. To manage customer relationships, organizations must develop marketing mixes that create value for customers. Value is a customer’s subjective assessment of benefits relative to costs in determining the worth of a product (customer value = customer benefits – customer costs). . Customer bene fits include anything a buyer receives in an exchange. 2. Customer costs include anything a buyer must give up to obtain the benefits provided by the product. Costs include the monetary price of the product as well as less obvious nonmonetary costs, such as time and effort. B. The process people use to determine the value of a product is not highly scientific. C. In developing marketing activities, it is important to recognize that customers receive benefits based on their experiences. D. The marketing mix can be used to enhance perceptions of value. V. Marketing ManagementA. Marketing management is the process of planning, organizing, implementing, and controlling marketing activities to facilitate effective and efficient exchanges. 1. â€Å"Effectiveness† is the degree to which an exchange helps achieve an organization’s objectives. 2. â€Å"Efficiency† refers to minimizing the resources an organization must spend to achieve a specific level of desired exchang es. B. Planning is a systematic process of assessing opportunities and resources, determining marketing objectives, and developing marketing strategy and plans for implementation and control.C. Organizing marketing activities involves developing the internal structure of the marketing unit. D. Proper implementation of marketing plans hinges on coordination of marketing activities, motivation of marketing personnel, and effective communication within the unit. E. The marketing control process consists of establishing performance standards, comparing actual performance with established standards, and reducing the difference between desired and actual performance. VI. The Importance of Marketing in Our Global EconomyA. Marketing Costs Consume a Sizable Portion of Buyers’ Dollars 1. About one-half of a buyer’s dollar goes to the costs of marketing. 2. Because marketing expenses consume significant portions of each dollar, it is important to know how this money is used. B. Marketing Is Used in Nonprofit Organizations 1. Marketing is also important in organizations working to achieve goals other than ordinary business objectives such as profit. 2. Government agencies engage in marketing activities to fulfill missions and goals. . In the private sector, nonprofit organizations also employ marketing activities to create, distribute, promote, and even price programs that benefit particular segments of society. C. Marketing Is Important to Business and the Economy 1. Businesses must sell products to survive and grow, and marketing activities help sell their products. 2. Marketing activities help produce profits which are essential to the survival of individual businesses and the health and ultimate survival of the global economy. D.Marketing Fuels Our Global Economy 1. Profits from marketing products contribute to the development of new products and technologies. 2. Advances in technology, along with falling political and economic barriers, and the univers al desire for a higher standard of living, have made marketing across national borders commonplace while stimulating global economic growth. E. Marketing Knowledge Enhances Consumer Awareness 1. The study of marketing allows a more effective assessment of a product’s value and flaws. 2.An understanding of marketing enables evaluation of corrective measures (such as laws, regulations, and industry guidelines) which could stop unfair, damaging, or unethical marketing practices. F. Marketing Connects People through Technology 1. New technology, especially technology related to computers and telecommunications, helps marketers understand and satisfy more customers than ever before. 2. The Internet is a vital tool for marketing to consumers and other businesses. G. Socially Responsible Marketing can Promote the Welfare of Customers and Society 1.The success of our economic system depends on marketers whose values promote trust and cooperative relationships in which customers are t reated with respect. 2. By managing concern about the impact of marketing on society, a organization can protect the interests of the general public and the natural environment. H. Marketing Offers Many Exciting Career Prospects 1. From 25 to 33 percent of all civilian workers in the U. S. perform marketing activities. 2. Whether a person earns a living through marketing activities or performs them voluntarily in non-business projects, marketing knowledge and skills are valuable assets.

The Yellow Birds - 1036 Words

Valerie Paz K88875155 03/27/13 10:00 In the novel â€Å"The Yellow Birds† by Kevin Powers the story is based on a twenty-one year old soldier and his experience in the war in Iraq. The twenty-one year old man’s name is John Bartle, a survivor of the war. The novel explains about the casualties and numerous amounts of times that John is surrounded by death and decay in Al Tafar, jumping back and forth through time explaining his experiences before and after the war. This novel is a very well written story; in some ways like a riddle keeping the reader on the edge of their seats forcing them to follow the book. At some points of the story, it becomes confusing because of how casual and emotionless John is when he speaks of death. One of the†¦show more content†¦For this reason, John ends up explaining to Murphy’s mother what exactly happened to him after she questions the letter, finishing the story with John being let out on good behavior and reminiscing on the death of his fellow comrade. A ccording to the novel the Protagonist of the story is John and the antagonist would be the war. Due to the casualties of many men and women, one would think that the war is defined by death; but because of the survival of John, the reader thinks that he has survived the pit of hell, making him the good guy in the story. Although John became weak after seeing so much tragedy for so long, he was still considered an emotionless and cold person. In the story Murphy tells John how his father had brought home a cage of canaries and set them free, assuming that they would fly away. To his surprise, they flew away sang a few songs and came right back to their cages. These yellow birds represent how the soldiers may leave the war physically but mentally they will always be there and relive their past occurrences. To sum up, this novel narrates the journey of a soldier throughout the war in Iraq and his mind altering experience. The war represents a major downfall in his life in which he enco unters many graphic scenes. Even though John describes his experiences in the war as aShow MoreRelatedThe Yellow Birds By Kevin Powers1489 Words   |  6 Pagesnovel, The Yellow Birds by Kevin Powers you see characters that have the intent to do good, but come up short and fail. Everybody has instances throughout their lives where they will try extremely hard, but fail in the end. A lot of these instances may even be just the smallest things, but when they happen it is never a good feeling. You will get feelings of disappointment, and anger, but the problems that occur in Kevin Power’s book are much more than that. The book The Yellow Birds is a fictionalRead MoreThe Yellow Birds By Kevin Powers897 Words   |  4 PagesSome believe that birds help express spiritual freedom and psychological liberation with the different colors of birds that are associated with various meanings; specifically the yellow bird means you should keep your guard up. In the novel, The Yellow Birds by Kevin Powers, John Bartle becomes guarded and isolated because of his internal battles created by his experiences from war. Bartle struggles with the lack of control he has over the events that happen to him in during his time in the militaryRead MoreThe Yellow Birds And Paul Haggis Movie1992 Words   |  8 PagesIn both Kevin Powers novel, The Yellow Birds and Paul Haggis movie, In the Valley of Elah the authors explore PTSD, pain and loss that many soldiers and their family members feel once they return. They explain these ideas with the help of the bodies of two soldiers. These bodies are the main focal point that they branch out and show the out reaching effects of their deaths. The biggest differences are between two of the main characters, Bartle and Hank and how they each handled their PTSD, pain andRead MoreThe Yellow Bird Spirit - analysis of Arthur Millers The Crucible play. Focuses on the yellow bird in Act II and how mass hysteria is achieved and the effects of such panic.1412 Words   |  6 PagesThe Yellow Bird Spirit One of the most vibrant, deep, and sagacious screenplays of the 21st century is Arthur Millers The Crucible. Miller brilliantly comments on human morals, authority, and mass hysteria. He parallels the events of Salem in 1600s to the blacklisting and the discrimination against those who were labeled as a communist in America during the 1950s. He proficiently shows how mass hysteria could sweep an entire community like a tsunami and erase all logical thought and rationalityRead MoreDon Robertson and Charlotte Perkins Gilman explore the theme of personal identity throughout their1300 Words   |  6 PagesDon Robertson and Charlotte Perkins Gilman explore the theme of personal identity throughout their works, from Robertson’s The Greatest Thing Since Sliced Bread, to Gilman’s The Yellow Wallpaper. Though both Don Robertson and Charlotte Perkins Gilman both illustrate and explore the theme of personal identity in very different ways, there are also many similar ways it is i llustrated and explored by both authors as well. Don Robertson shows this theme of personal identity through Morris Bird’s cautiousRead MoreCompare And Contrast The Awakening And The Yellow Wallpaper1211 Words   |  5 Pagesâ€Å"The Awakening† â€Å"The Yellow Wallpaper† During our previews week we had many different reading assignments. The assignment I chose to talk about in this paper for week number one was â€Å"The Yellow Wallpaper† by Charlotte Perkins Gilman. For the second reading assignment for this current week will be â€Å"The Awakening† by Kate Chopin. I choose this two reading assignments because they were both very similar, but at the same time very different. Throughout this paper I will be demonstrating a common theme—characters—andRead MoreAnalysis Of Abigail Williams s The Crucible 1342 Words   |  6 Pagespeople. One scene of importance in the play, would be the girls pretending to see the yellow bird flying towards them from the rafts, in act three. This scene helps to prove the theme of hysteria, as once Abigail pretends to see the bird coming at her, Mary Warren, Mercy and the other girls then follow her lead, and act frightened as they stand in fear with â€Å"the bird† flying at them. At first Mary denies the bird and is shocked at what the other girls are doing, but finally she begins to join themRead More Kate Chopins The Awakening Essay952 Words   |  4 Pagesrealises she is no longer tied to the earth. She has the opportunity to control her own life and finally decide her fate. The symbolism of birds Chopin uses in many places birds to represent failure, freedom and choices the Edna has to make right. The novel begins with the image of a bird that is trapped and cannot communicate: â€Å"A green and yellow parrot, which hung in a cage outside the door, kept repeating over and over...Could speak a little Spanish, and also a language that nobody understoodquot;Read MoreThe Awakening By Kate Chopin927 Words   |  4 PagesBirds are the main theme in the novel The Awakening. Many people when they read the first statement, should be perplexed and try to grasp the concept of how birds can be the main theme of The Awakening. However, throughout the novel, we see many examples of birds appearing in the text. Many great authors use the power of symbolism to establish a connection between an object that seems ordinary to a human counterpart whose actions and intentions are masked by the way the actions are executed. In TheRead MoreA Visit to The Peoples Republic of China868 Words   |  4 PagesIndex.html The Peoples Republic of China established in 1949.The flag is red and yellow,It symbolizes the soldiers blood. Five yellow star represents the government and unity of the people. Red on flag symbol of revolution and yellow star said the Chinese nation for the Yellow race. Five star means we are big group. China is located in the eastern and Central Asia the west coast of Pacific Ocean.But its shape on earth like a chicken. In fact China total land area of 9600000 square kilometers.