Spains American Colonies and the Encomienda System

In the 1500s, Spain systematically conquered parts of North, Central and South America as well as the Caribbean. With native governments such as the efficient Inca Empire in ruins, the Spanish conquistadors  needed to find a way to rule their new subjects. The encomienda system was put in place in several areas, most importantly in Peru. Under the encomienda system, prominent Spaniards were entrusted with native communities. In exchange for native labor and tribute, the Spanish lord would provide protection and education. In reality, however, the encomienda system was thinly-masked slavery and led to some of the worst horrors of the colonial era. The Encomienda System The word encomienda comes from the Spanish word encomendar, meaning to entrust. The encomienda system had been used in feudal Spain during the reconquest and had survived in some form ever since. In the Americas, the first encomiendas were handed out by Christopher Columbus in the Caribbean. Spanish conquistadors, settlers, priests or colonial officials were given a repartimiento, or grant of land. These lands were often quite vast. The land included any native cities, towns, communities or families that lived there. The natives were supposed to provide tribute, in the form of gold or silver, crops, and foodstuffs, animals such as pigs or llamas or anything else the land produced. The natives could also be made to work for a certain amount of time, say on a sugarcane plantation or in a mine. In return, the owner, or encomendero, was responsible for the well-being of his subjects and was to see to it that they were converted and educated about Christianity. A Troublesome System The Spanish crown reluctantly approved the granting of encomiendas because it needed to reward the conquistadors and establish a system of governance in the newly-conquered territories, and the encomiendas were a quick-fix that killed both birds with one stone. The system essentially made landed nobility out of men whose only skills were murder, mayhem, and torture: the kings hesitated to set up a New World oligarchy which could later prove troublesome. It also swiftly led to abuses: encomenderos made unreasonable demands of the natives who lived on their lands, working them excessively or demanding tribute of crops that could not be grown on the land. These problems appeared quickly. The first New World haciendas, granted in the Caribbean, often had only 50 to 100 natives and even on such a small scale, it wasn’t long before the encomenderos had virtually enslaved their subjects. Encomiendas in Peru In Peru, where encomiendas were granted on the ruins of the rich and mighty Inca Empire, the abuses soon reached epic proportions. The encomenderos there showed an inhuman indifference to the suffering of the families on their encomiendas. They did not change the quotas even when crops failed or disasters struck: many natives were forced to choose between fulfilling quotas and starving to death or failing to meet quotas and facing the often-lethal punishment of the overseers. Men and women were forced to work in mines for weeks at a time, often by candlelight in deep shafts. The mercury mines were particularly lethal. During the first years of the colonial era, Peruvian natives died by the hundreds of thousands. Administration of the Encomiendas The owners of the encomiendas were not supposed to ever visit the encomienda lands: this was supposed to cut down on abuses. The natives instead brought the tribute to wherever the owner happened to be, generally in the larger cities. The natives were often forced to walk for days with heavy loads to be delivered to their encomendero. The lands were run by cruel overseers and native chieftains who often demanded extra tribute themselves, making the lives of the natives even more miserable. Priests were supposed to live on the encomienda lands, instructing the natives in Catholicism, and often these men became defenders of the people they taught, but just as often they committed abuses of their own, living with native women or demanding tribute of their own. The Reformers While the conquistadors were wringing every last speck of gold from their miserable subjects, the ghastly reports of abuses piled up in Spain. The Spanish crown was in a tough spot: the royal fifth, or 20% tax on conquests and mining in the New World, was fueling the expansion of the Spanish Empire. On the other hand, the crown had made it quite clear that the Indians were not slaves but Spanish subjects with certain rights, which were being flagrant, systematically and horrifically violated. Reformers such as Bartolomà © de las Casas were predicting everything from the complete depopulation of the Americas to the eternal damnation of everyone involved in the whole sordid enterprise. In 1542, Charles V of Spain finally listened to them and passed the so-called New Laws. The New Laws The New Laws were a series of royal ordinances designed to halt the abuses of the encomienda system, particularly in Peru. Natives were to have their rights as citizens of Spain and could not be forced to work if they did not want to. Reasonable tribute could be collected, but any additional work was to be paid for. Existing encomiendas would pass to the crown upon the death of the encomendero, and no new encomiendas were to be granted. Furthermore, anyone who abused natives or who had participated in the conquistador civil wars could lose their encomiendas. The king approved the laws and sent a Viceroy, Blasco Nà ºÃƒ ±ez Vela, to Lima with clear orders to enforce them. Rebellion The colonial elite was livid with rage when the provisions of the New Laws became known. The encomenderos had lobbied for years for the encomiendas to be made permanent and passable from one generation to another, something the King had always resisted. The New Laws removed all hope of perpetuity being granted. In Peru, most of the settlers had taken part in the conquistador civil wars and could, therefore, lose their encomiendas immediately. The settlers rallied around Gonzalo Pizarro, one of the leaders of the original conquest of the Inca Empire and brother of Francisco Pizarro. Pizarro defeated Viceroy Nà ºÃƒ ±ez, who was killed in battle, and basically ruled Peru for two years before another royalist army defeated him; Pizarro was captured and executed. A few years later, the second rebellion under Francisco Hernà ¡ndez Girà ³n took place and was also put down. End of the Encomienda System The King of Spain almost lost Peru during these conquistador uprisings. Gonzalo Pizarros supporters had urged him to declare himself King of Peru, but he refused: had he done so, Peru might have successfully split from Spain 300 years early. Charles V felt it prudent to suspend or repeal the most hated aspects of the New Laws. The Spanish crown still steadfastly refused to grant encomiendas in perpetuity, however, so slowly these lands reverted to the crown. Some of the encomenderos managed to secure title-deeds to certain lands: unlike the encomiendas, these could be passed down from one generation to the next. Those families that held land would eventually become the native oligarchy. Once the encomiendas reverted to the crown, they were overseen by corregidores, royal agents who administered crown holdings. These men proved to be every bit as bad as the encomenderos had been: corregidores were appointed for relatively brief periods, so they tended to squeeze as much as they could out of a particular holding while they could. In other words, although the encomiendas were phased out eventually by the crown, the lot of the native workers did not improve. The encomienda system was one of the many horrors inflicted on the native people of the New World during the conquest and colonial eras. It was essentially slavery, given but a thin (and illusory) veneer of respectability for the Catholic education that it implied. It legally allowed the Spaniards to work the natives literally to death in the fields and mines. It seems counter-productive to kill off your own workers, but the Spanish conquistadors in question were only interested in getting as rich as they could as quickly as they could: this greed led directly to hundreds of thousands of deaths in the native population. To the conquistadors and settlers, the encomiendas were nothing less than their fair and just reward for the risks they had taken during the conquest. They saw the New Laws as the actions of an ungrateful king who, after all, had been sent 20% of Atahualpas ransom. Reading them today, the New Laws do not seem radical — they provide for basic human rights such as the right to be paid for work and the right to not be unreasonably taxed. The fact that the settlers rebelled, fought and died to fight the New Laws only shows how deeply they had sunk into greed and cruelty. Sources: Burkholder, Mark and Lyman L. Johnson. Colonial Latin America. Fourth Edition. New York: Oxford University Press, 2001. Hemming, John. The Conquest of the Inca London: Pan Books, 2004 (original 1970). Herring, Hubert. A History of Latin America From the Beginnings to the Present. New York: Alfred A. Knopf, 1962 Patterson, Thomas C. The Inca Empire: The Formation and Disintegration of a Pre-Capitalist State.New York: Berg Publishers, 1991.

The Constitution Guarantees Every Citizen Civil Rights

(1) The constitution guarantees every citizen civil rights. Civil rights ensure that the government makes the constitutional freedoms a reality for all people. The rights of citizens include having the right to a trial, expressing yourself, and the freedom to worship or not. Other rights include the right to vote, the right to federal employment, the right to run for office, as well as the right to pursue life, liberty, and the pursuit of happiness. Responsibilities of American citizens include supporting and defending the constitution, being informed about issues in the community, participating in the local community, participating in the democratic process, and respecting the laws. Some other responsibilities are paying taxes, serving on a jury, and defending the country as necessary. (2) U.S. citizens have political rights to keep the government from over-controlling them. Some commonly know political rights include the right to vote, the right to hold public office, and the right to petition. Other rights, like the right to resist, are more controversial. In Oregon, some schools were using history textbooks that had eliminated all of the negative things that America had done in the past. Citizens, including the students and teachers, began to protest. The people say that it is against one’s rights to deprive them of their country’s true history. (3) Economic rights ensure that every human is able to afford conditions that enable them to meet their needs.Show MoreRelatedCivil Liberties and Civil Rights Essay1296 Words   |  6 PagesCivil Liberties (And how they differ from civil rights) If the fires of freedom and civil liberties burn low in other lands, they must be made brighter in our own. If in other lands the press and books and literature of all kinds are censored, we must redouble our efforts here to keep them free. If in other lands the eternal truths of the past are threatened by intolerance, we must provide a safe place for their perpetuation. Franklin Delano Roosevelt, 1938 (Isaacs 66) Freedom of speechRead MoreCivil Liberties And Civil Rights931 Words   |  4 PagesCivil liberties and civil rights are both similar and different in various ways by means of the United States Constitution, court cases, and legislation. Civil liberties are a constitutional guarantee while civil rights are a government guarantee for the people of America. Though they are much alike in providing people with freedom and individual power, it is important to know the differences. Firstly, civil liberties are constitutional guarantees based on freedom and order. Order comes along withRead MoreThe Powers Of The Legislative Branch1231 Words   |  5 Pagesclause, Congress can create laws and have power to make actions in situations where the Constitution does not give permission to act. The clause is also called the Elastic Clause. The draft of this clause brought disputes between anti-federalists, who believed that the clause would give government too much power, and federalists, who assumed that the clause is just a permission to act given by the Constitution. b. Commerce Clause (Article I, Section 8, Clause 3) The Commerce Clause gives CongressRead MoreThe Trial : A Citizen With No Constitutional Rights907 Words   |  4 Pagesnovel The Trial identifies a citizen with no constitutional rights. The government of his country was weak and oppressive. Joseph K the protagonist in the novel struggled with depression, loneliness, frustration and anxiety after his arrest and trying to deal with the coming interrogations, court sessions and a lengthy trial. Citizens in the United States of America with a democratic government, constitutional rights are guaranteed under the United States Constitution, which is the Supreme Law ofRead MoreBill of Rights Essay1647 Words   |  7 PagesThe â€Å"Bill of rights† had been proposed as a follow up to Parliament’s original Habeas Corpus bill, which safeguarded personal freedom and liberty. Now just about every colony had a bill of rights, so James Madison suggested that if the United States was to survived as a a country it would need to hav e a set of rules versus thirtheen and every state would have the same rules. In 1789, James Madison proposed a series of legislative articles to the first United States congress, but the processes tookRead MoreEqual Protection And Freedom From Discrimination1999 Words   |  8 PagesDiscrimination Constitutions frequently include a blanket statement guaranteeing citizens equality before the law and protection against discrimination based on certain factors. The most common factors include race, color, sex, language, religion, political belief, national or social origin, property, birth, and status. Although not as common, other factors may include disability, age, clan, caste, residence, and sexual orientation. Constitutions generally provide that all citizens are equal beforeRead MoreThe Constitution Of The United States1092 Words   |  5 Pagesgovernment. Although to some states that form of government was not happy because the Articles of Confederation will soon become a disadvantage. The Constitution Of United States was established in 1787. The Constitution of United States was written as a set of rules for this country. Many of the â€Å"rules† have helped the country stay in order. The constitution gave more power to the national government than the Articles of Confederation. Fifty-five representatives met in Philadelphia in 1787 to establishRead MoreA Report on Due Process Rights645 Words   |  3 PagesU.S. Constitution that mention the due process rights every American possesses: the Fifth and the Fourteenth. The Fifth Amendment guarantees that no person shall be deprived of life, liberty, or property without due process of law. (U.S. Constitution.) But this original amendment only applied to the federal government and had no authority over the individual states. However, in the aftermath of the Civil War, when southern states were beginning to impose new laws restricting the rights of theRead MoreCivil Rights And Civil Rights850 Words   |  4 PagesProfessor Miller POS 2041 December 9th, 2017 Civil Rights and Civil Liberties Civil rights and civil liberties sound like they mean the same, however, they have very different definitions. As stated in the textbook on page 676, â€Å"to have civil rights means that all rights rooted in the Fourteenth Amendment’s guarantee of equal protection under the law†; which means civil rights are our basic rights to freedom. As stated in the textbook as well, â€Å"to have civil liberties means those personal freedoms thatRead MoreCivil Rights And The Bill Of Rights Essay1280 Words   |  6 Pagesof rights and liberties worldwide is a luxury that all countries do not have and are not given to them. In America the people have the Constitution and the Bill of Rights that enumerate their inalienable rights. In the State of Texas there is also a constitution and a Bill of Rights for the people. One of the most important rights in the Texas Bill of Rights in the constitution is Article 1 Section 3 and 3a titled Equality and Equality Under the Law. There are differences between civil rights and

Research Paper Puerto Rico Free Essays

Juan David Vivas Professor Holt ENC – 1102 Honors English Final Research Paper La ficcion y la realidad en Seva â€Å"Seva: History of the first U. S. invasion of the island of Puerto Rico that took place in May 1898,† is a story written by Dr. We will write a custom essay sample on Research Paper Puerto Rico or any similar topic only for you Order Now Luis Lopez Nieves that defies the boundaries of truth and fiction. This story was published on December 23, 1983 in the supplement of the newspaper â€Å"Red Clarity†. A story that was able to leave a legacy behind. This legacy created an atmosphere of questions and answers among the people in the island. The devastation that puertorricans felt over the words they were reading were caused by a simple proofreading error, arose much confusion where people were desperate for answers, and the perfection of how Seva was written made it impossible to be questioned. Before I continue on informing about this dreadful story, it is important that I state several historical facts in order to accept the authors full credentials and obtain a better grasp of the story. Luis Lopez Nieves was born on January 17, 1950 in Washington, DC, from Puerto Rican parents. As early as seven years old he moved to the capital of Puerto Rico and at fifteen years of age began his studies at the University of Puerto Rico, Rio Piedras campus. The most luxurious university to study at that time. During his second year he was in Greenwich Village, an artistic and bohemian neighborhood of New York (Ciudsv. com/Datos). At twenty years of age he returned to the University of Puerto Rico and in 1973 graduated with a degree in general studies with concentrations in Comparative Literature and Hispanic Studies. Then he moved to the University of New York at Stony Brook, where he began his Master’s degree in Hispanic Studies with a grant from the Ford Foundation. In 1980 he received a doctorate in Philosophy specializing in Comparative Literature and sets a precedent by being the first student to deliver a novel as a doctoral thesis: The Prince Alexander excessive happiness. Lopez Nieves is the author of the novels The Silence of Galileo, published in June 2009 and The heart of Voltaire, published in December 2005 (Ciudsv. om/Datos). This writer is also known for his excellent work as a storyteller with his books of short stories entitled The real death of Juan Ponce de Leon, published in April 2000, Writing for Rafa, published in 1987 and Seva. The week this story was published, the people of Puerto Rico were shocked to learn that the first U. S. invasion of Puerto Rico did not occur July 25, 1898 by the town of Guanica but that it happened on May 5th on the coast of the village that no longer exists called Seva (Ciudsv. com/Datos). That day, the 2,000 troops of General Nelson Miles was ambushed by 721 patriotic â€Å"savaenos† that resisted the American attack on the island and finally defeated the troops of General Miles. Actually it was not a historic victory but a great literary epic written by Luis Lopez Nieves (Ciudsv. com/Libros). A clarification that seemed to be absent on the published story of Seva in the newspaper Clarity caused much controversy in Puerto Rico since people were misled to believe the events occurred were true. The reaction was strong but confused. A harrowing mixture of joy, anger and pain. Joy because finally the old hated myth was destroyed of the alleged docility of puertorricans, their supine alleged delivery to the conquerors. At last, after many years of historical ignorance, puertorricans began to learn a few episodes of their true and heroic epic. Anger because such a vile act as the slaughter of Seva, and the total eradication of the people by the invaders, with good reason (Ciudsv. com/Libros). Pain because the people more courageous than ever, heroic even Lares, lay murdered, buried and forgotten under the planes, buildings and nuclear missiles of the naval base at Roosevelt Roads. After the Seva news, reports were confirmed that in Naguabo, Ceiba, Guayanilla, Rio Piedras, San Sebastian and several committees were organized within hours. The first committee was intended to find Don Ignacio Martinez, the only survivor of the slaughter of Seva: â€Å"My life has changed forever because last January 17 after 14 months of searching disheartened, I finally found the child-without-ear-left: Don Ignacio Martinez. When the Slaughter of Seva was 9 years old (and not 7 as I had estimated) and now has 92, but looks much younger. (Seva, 45)   Another committee was organized to dig in the Roosevelt Roads naval base at any cost until they found the remains of Seva, â€Å"The People Martyr†. In addition to the committees, a prominent psychologist met with the governor of Puerto Rico, Carlos Romero Barcelo, and demanded an investigation to give the whereabouts of Dr. Victor Cabanas. The Governor, given the facts, he was obliged to study the events. This reaction from readers and patriots is admirable, but there was a problem: Seva is a story, the result of a deep dissatisfaction with Luis Lopez Nieves history of Puerto Rico (Ciudsv. om/Datos). The newspaper Clarity, stunned by the events caused by the story he was obliged to publish an apology: â€Å"The text Seva: History of the first U. S. invasion of the island of Puerto Rico took place in May 1898, published in the last edition of In Red, is a story. The same has caused shock and alarm in parts of the country because it suggests a major historical discovery. While some read the text as a story, it seems that most of our readers thought it was a sensational historical article, the product of a thorough investigation and risky. But this is a story and nothing else but a story that became the product of imagination and the combination of literary resources of its author, Luis Lopez Nieves. † The immense controversy that caused Seva took the complete simplicity of just â€Å"another† column in the newspaper to have immediate government intervention to find answers. It rose over the whole story that threatens to take folkloric proportions. In sectors of intellectual, artistic, and academic independence of the country there was another issue this week. At parties, businesses, libraries and homes continually arose gatherings and discussions on the Slaughter of Seva. Attitudes towards the story begin in the euphoria (â€Å"Seva is a rallying cry,† says Ferdinand Quintana, Guayanilla musician). Several crosses appeared in front of the Roosevelt Roads naval base with the inscription: â€Å"Seva Lives! â€Å"(Seviv. com/criticas). The â€Å"Capitolio News Agency† (The white house of Puerto Rico) assigned the reporter Jennifer Wolfe to travel immediately to Washington with the intention of interviewing Peggy Ann Miles, the granddaughter of General Nelson Miles that received Dr. Victor Cabins with â€Å"biscuits, tea and very polite words†, a person that does not exist (Ciudsv. om/Datos). The poet Jose Manuel Torres Santiago confirmed that following the clarification of the magazine Clarity to the effect that Seva was a story, many in Guayanilla and San Sebastian protested and refused to believe it was said then that Seva Editorial reality and fiction. Many refused to believe that Seva was a story and chose to stay with the vers ion of Luis Lopez Nieves. A prominent nationalist claims to know a veterinarian who, in turn, had an uncle who spoke of Seva. â€Å"Its Ceiba,† the vet told his uncle. â€Å"No,† he replied, â€Å"I do not speak of Ceiba but of Seva†. This nationalist seemed very concerned and said that Seva is a reality. He resists, moreover, to believe that Don Ignacio Martinez is a fictitious entity created by Luis Lopez Nieves (Seva, p. 58). Fortunately, in the same way that people were wrong or did not understand the satire of Lopez Nieves, there were people who understood. A famous guayanillense wrote the following note with the real meaning of the story: â€Å"Seva is for me a reality of all Puerto Ricans, regardless of political positions, that could happen or has happened in our town that is still suffering the same symptoms of the past. But as long as men determined as Seva, Puerto Rico will have a firm hope, of all Puerto Ricans who believe in the values that the country means for everyone. Although they do not deserve to have benefits and come to mourn for what they have not earned or deserved. But we are all too ‘Ay Bendito’ that we forgive him. † (January 9, 1984, Jose Eugenio Rivera Castagnet) The elaborate and well detailed of the context in Seva presented the story so well that it was extremely difficult to determine fact from fiction. For the first time an author was able to take a story that was not true but because of historical events, it seemed as if it had happened exactly as stated (Seviv. com/critocas). This work is extraordinary. This paper published by Luis Lopez Nieves is a hit. It is an invitation to delve into the history of Puerto Rico, for Seva is not far from the truth. Among the readers of Clarity are probably the most sophisticated, better informed and more critical of the island: professors and university students, boxes on the left, lawyers, labor leaders, and professionals (Ciudsv. om/Libros). The author wanted to share with the people the truth that good fiction reveals: the truth about puertorricans. That is, it looks like people get an immediate sense of patriotism to see how a town was erased from history. Puerto Rican’s know the abuses that the American people rushed against Puerto Rico, the problem is that they forget or are given a blind eye when they give their coupons, housing a nd entertainment, among other things. They think that to swim against the current is comprehensive and to swim along is demeaning and insulting for the soul and freedom. So they are undecided and have a lifestyle like if nothing is happening around them (Ciudsv. com/Datos). We find reality hard to believe and accept. The fiction on the other hand can easily be taken as true. How else can one explain that a publicity stunt by the author of Seva: The True Story of the American invasion in 1898 has caused such a stir, mostly clarifications and explanations from the area called the country’s intelligence? Works Cited Lopez Nieves, Luis. Seva: Historia de la primera invasion norteamericana de la isla de Puerto Rico ocurrida en mayo de 1898. ra ed. Bogota, Colombia: Editorial Norma 2006 â€Å"Puerto Rico: Cementerio de la acrobacia†, revista Borinquen Grafico â€Å"? Seva Vive? â€Å". Site Oficial De Seva Vive. N. p. , n. d. Web. 25 June 2012. http://www. sevavive. com/la-critica-y-los-medios â€Å"Datos Personales Y BiogrA? ficos – Luis Lopez Nieves – Ciudad Seva. † Datos Personales Y BiogrA? ficos. N. p. , n. d. Web. 25 June 2012. http://ciudadseva. com/datos/index. htm. Seva – Luis Lopez Nieves. † Seva. N. p. , n. d. Web. 25 June 2012. ;http://ciudadseva. com/libros/seva. htm;. How to cite Research Paper Puerto Rico, Essays

Marketing Plan of Samsung Capture Mobile Phone Market

Question: Discuss about the Marketing Plan of Samsung. Answer: Introduction For any organization to thrive and grow in the competitive market there is a need to be aware of the external and the internal market conditions. Any successful organization should start from the scratch by deciding the main objectives and goals of the organization, then move forward to external market research, and launch the business (Homburg, Kuester and Krohmer 2013). The report will mainly evaluate the steps taken by Samsung to become successful and rule the market. The report will first look into the mission, visions and objectives of the company. It will then move on to evaluate the sales trends of the organization. Any big organization will face issues as far as economic perspective is concerned and Samsung is no different. The macro and microenvironmental issues will make the readers aware of the challenges faced by the organization (Pealoza, Toulouse and Visconti 2013). It will help in getting an idea about the types of issues one can face from the market. The report will further evaluate the marketing objectives of Samsung and will carry out the SWOT analysis to know the internal strength and weakness of Samsung. 4Ps is another essential factor of marketing that will help the organization to develop the product, give proper price and promote it in the market (Homburg, Kuester and Krohmer 2013). The 4Ps is the indicator for the organization to tell them about how the product will fare in market. The perceptual mapping will help the company to check the competitors. The position of the competitors in the market will help Samsung to evaluate the proper positions where the company will be placed so that it is able to fare well than the competitors. The marketing pan also involves the planning of the expenditures of the company that will be required for promoting the company and hence, it should not be overlooked by any organization (Sheth and Sisodia 2015). Brief Background of Samsung Company Mission Statement of Samsung Company The mission statement of Samsung is to innovate new technologies, designs and products that will help in the enrichment of the life of the people and help in brining a sustainable future that will be socially responsible (Jeston and Nelis 2014). Vision Statement of Samsung Company The mission statement of Samsung of Samsung is inspire the world and create the future (Samsung.com 2016). The vision statement of Samsung can be explained by the vision 2020. It aims at innovation in the field of technology, solution and products. The organization invites the community to join them in this approach so that they are able to give better and richer experience of digital experience (Homburg, Kuester and Krohmer 2013). By the year, 2020, Samsung aims at attaining an annual sale of USD 400 billion and place Samsung in the number one position among of the top 5 positions as far as overall brand value is concerned. The three strategic pillars will be able to better explain the business operation, management and culture of Samsung (Pealoza, Toulouse and Visconti 2013). The three pillars are: Creativity Partnership Great people Objectives of Samsung Company The objectives of Samsung can be divided into quantitative goals and qualitative goals. The quantitative goals include the achievement of USD 400 bullion as far as the sale is concerned. Moreover, be the number one in the global top 5 and the internal IT industry (Homburg, Kuester and Krohmer 2013) The qualitative goals are to be an innovative and respected company. In addition to this, the objectives include to get a position among the top ten best workplaces, be the creative leader when it comes to build new markets and be the global enterprise that will attract the best talent of the world (Choi et al. 2012). Sales Records of last 2 to 3 years Versus Market Spending of Samsung Company Spot Trend The sales record of Smartphone, one of the most dependent product line of Samsung has been slow since 2013 until the second quarter of 2015 (Homburg, Kuester and Krohmer 2013). However, there has been a growth in the sale in the year 2014 as compared to the sale of the year, 2013. Number of units sold by Samsung in the year 2014 is 76,129.2 and the market share 26.2 percent. In the year, 2015, the sale of units fell down to 72072.5 units and the market share decreased to 21.9 percent (NDTV Gadgets360.com 2015). Hence, it can be seen that the sales of Samsung hugely varied from the year, 2014 and in the year 2015. The main reason for the fall has been estimated to be the rise of cheaper 3G and 4G Smartphone in the market and the popularity of those phones among the consumers (Lusch and Vargo 2014). Identification of Product Line of Samsung Company Two Other Organizations in Close Substitution with Samsung The main product line of Samsung is the Smartphone. The market of Samsung is hugely depended on this product line. The two closest competitors of Samsung in the field of Smartphone are Apple and Huawei. However, the position of Samsung is strongest than the position of the two competitors. When on one hand, Samsung recorded a sale of 72.072.5 units, on the other hand, Apple recoded a sale of 48,085.5 units and Huawei a sale of 25,085.8 units in the same year (Homburg, Kuester and Krohmer 2013). The market share of Samsung was 21.9 percent in the year 2015, whereas the market share of Apple and Huawei was 14.6 percent and 7.8 percent respectively. The difference in the units and market share was no different for the year 2014. Samsung recorded a sale of 76,129.2 units in the year 2014, while Apple and Huawei recorded a sale of 35,345.3 units and 17,657.7 units respectively. Samsung had market share of 26.2 percent in the year 2016, whereas apple had a market share of 12.2 percent and Huawei had a market share of 6.1 percent (Homburg, Kuester and Krohmer 2013). Samsung took huge lead in the year 2016 over Apple (Stevens 2016). In spite of the introduction of the latest iphone 7 of the iphone family, Apple was not able to make the consumer attract towards them. The introduction of Samsung S6 edge and S7 edge was enough to attract the customers towards Samsung (Pealoza, Toulouse and Visconti 2013). Competitor Information Apple has its headquarters in Cupertino of California. The company started its journey in the year, 1976 under the supervision of Ronald Wayne, Steve Jobs and Steve Wozniak (Apple.com 2016). It started working as a company that develop and sells personal computers. Apple was renamed Apple Computers Inc. In the year, 1977 and was again renamed as Apple Inc. in the year 2007. The latest production of Apple iphone is the most sought after product among the consumers. The latest release of apple is the iphone 7 (Pealoza, Toulouse and Visconti 2013). Ren Zhengfei, who was an ex-military officer, founded Huawei. The company started operating in the markets of China as a private firm (huawei 2016). The initial aim of the organization is to provide operations services and consulting services to the organizations in China. Currently, Huawei is having more than 140,000 employees working for it. Out of the huge number of employees 46 percent of them in involved in research and development of the products (Sheth and Sisodia 2015). Discussion on Micro and Macro Environment Issues of Samsung Company Micro Environment Factors Microanalysis defines as the scanning of internal factors for any business organization that majorly affects the working of a company (Wilson and Gilligan 2012). If a particular company has favourable internal environment, then it is an asset to the company as well as leads towards increase in productivity and further growth opportunities at the same time. Samsung Company faces stiff competition on global economy especially in India. There is availability of cheap quality affecting business in the most appropriate way. It involves constant competitors for innovating in advancement of new technology (Sheth and Sisodia 2015). Samsung Company focus mainly on customer services as well as diversification on other segments in an overall manner. Bargaining power of buyers is higher in this case. There is large availability of choices that are provided to the potential buyers. Pricing requires to be kept depending upon the customer needs and expectations and demand at the same time (Pealoza, Toulouse and Visconti 2013). It requires adopting innovating marketing strategy for attracting the potential customers. Good market share considers as second option in comparison with Nokia and Sony. Buyers has misconception that Samsung is a Chinese brand It can be noticed that there is even availability of cheap Chinese electronic products that largely affects the market share of Samsung Company (Mudie and Pirrie 2012). There is even delay caused in technological innovation helping other competitors named as Apple Inc. It is saturated mainly on multimedia as well as communication field at the same time (Pealoza, Toulouse and Visconti 2013). Some of the major international environmental factors are as follows: Innovation Innovation is one of the microanalysis factors for the company named as Samsung. Samsung believes in innovation as well as creativity in their business operations (Marshall 2014). This is major reason why Samsung is there in news for good reasons. Until now, Samsung has worked great with the association with Android. Samsung believes in upgrading their mobile phones and attain the needs of the potential customers (Lee and Carter 2012). Nexus, which is popular among the users in and across the globe Market Size Android Platform is open for all the major players as well as there is increase in the Smart phones users as viewed from past few years (Kotler et al. 2015). Market has considerable shown growth in tern of volume as well as users. It has been noticed that there is large market for the smart phone users. These phones are rendering access to millions of users who will get applications as well as features. As far as perception is concerned, Market demand will grow in the upcoming years in terms of quality as well as quantity (Hutt and Speh 2012). Demand and Supply Samsung Brand has performed successfully well in the current years when it is discussed regarding high-end smart phones (Homburg, Kuester and Krohmer 2013). Samsung plays major role, as there is high-end smart phones and supplied in the present global marketplace. This is being supplied by balancing with the forces of supply as well as demand. Samsung business strategy is well planned as well as better executed in desired way. It is for this reason when a particular model demand falls; Samsung comes out with latest version and launches with updated features and better performance (Hollensen 2015). Opportunity Cost Samsung Company analyzes the opportunity cost as it refers to the loss of potential gain. Samsung moves around in planned ways from the past years as well as working at a minimum opportunity cost (Goworek and McGoldrick 2015). The company does this by accurate scan as well as research. This helps the company in making decision in the most appropriate way. Samsung launches some new product in the market and this gives rise to range of excitement among the minds of potential customers (Foxall 2014). Samsung users are on excitement phase for getting new as well as updated mobile phones. Macro Environment Factors Samsung business environment is largely affected by both external as well as internal influences. This majorly affects both local as well as global performance of close products. Macro environment can be easily understood with the help of PESTEL analysis for gaining understanding of the external analysis (Chan, He and Wang 2012). PESTEL Analysis Political Environmental Factors These factors points out the government guidelines involving the intensity of economy intervention as well as types of goods and services at the same time. Investors are required to offers its citizens as well as priorities in stipulated time in case of providing business support. According to Best (2012), country political legislation affects various fundamental areas like education of the workforce as well as level of infrastructure and health of the nation. Samsung Company is subjected in viewing at the political risks levels for operational attributes (Pealoza, Toulouse and Visconti 2013). Level of political risks varies from one country to other and considers as one of the tormenting factor. Samsung Company now faces political instability especially at home country. Situation of home country is quite dissimilar as well as not intense in measuring attributes in and against other countries. Samsung experiences inconvenient business environment in countries like Africa and South Ea st Asia. The business environment in these countries is hostile in nature possessing negative impact on Samsung Company. Countries like China as well as India offers advantageous business environment that majorly focus on markets in an overall manner (Pealoza, Toulouse and Visconti 2013). Economic Environmental Factors Economic factors include interplay between finance as well as resources of a particular country. This factor consists of interest taxes, economic development and growth, taxation dynamics as well as inflation and foreign exchange rates. These factors mainly posses remarkable impact on the business operations of Samsung Company (Goworek and McGoldrick 2015). High interest rates majorly have tendency in reducing the borrowing capability for future analysis purpose. Inflation majorly affects higher salaries by employees that increase operational cost. This particular economic situation influencing decisions of Samsung Company Social-Cultural Environment Factors Social environmental factors involve customs, practices as well as tradition varying from one social group to other (Pealoza, Toulouse and Visconti 2013). This revolves around variations for checking the social status affecting demand for a particular product. Readiness of people deals directly with work. Ageing is one of the social factors that posses tendency for increasing the pension payments by business firms. Samsung has succeeded in overcoming the social challenges by incorporation especially in new markets (Sheth and Sisodia 2015). Technological Environment Factors Technological factors involve inventions change products as well as production process. One of the instance of innovation means online market as well as bar coding and other computer aided designs in advancement of technology (Sheth and Sisodia 2015). One of the benefits of technology is the ability in cutting down production costs as well as improving quality at the same time. Samsung Company has strong usage of technology and ability in graining towards culture of innovativeness. Samsung believes in technological inventions that employs in introduction of new products in global marketplace (Pealoza, Toulouse and Visconti 2013). Environmental Factors Environmental factors involve weather as well as climate variations that influences over business operations. It means that increased ways for safeguarding the environment for creation of impact on given industries like transportation industry (Homburg, Kuester and Krohmer 2013). In case of current climate change, spreadsheets by global warming affecting the business largely Legal Environment Factors Legal factors associates with operations with the company. Legal constraint influences over business operations as well as demand characteristics of consumers. Adopting minimum wage rate policy by government largely affects business firm as increasing the cost of production (Lee and Carter 2012). SWOT Analysis of Samsung Company Strength Weakness Samsung Company believes in providing innovative designs in its products (Pealoza, Toulouse and Visconti 2013) Samsung Company engages in integration of open source operating system as well as software Samsung Company has low cost of production(Pealoza, Toulouse and Visconti 2013) Samsung Company has largest market share especially in mobile phone market Samsung Company is recognizable brand across the world (Pealoza, Toulouse and Visconti 2013) Samsung Company has strong brand reputation Samsung Company has strong research and development department (Lee and Carter 2012) Samsung Company focus on best cost and quality Samsung Company has too large product diversity as well as sale stability Samsung Company is the first mover advantages in most of the countries Samsung Company growing market share develops in the developing countries like India as well as Bangladesh Samsung Company has strong intelligence especially in gaining marketing capabilities Samsung Company has large skilled employees in and around the world with 489000 Samsung Company majorly captures more than 40% market shares especially in Netherlands Samsung Company suffers from low profit margins (Pealoza, Toulouse and Visconti 2013) Samsung Company damages its image due to infringement (Pealoza, Toulouse and Visconti 2013) Samsung Company lacks focus on product diversity Samsung Company lacks essential operating system (Pealoza, Toulouse and Visconti 2013) Samsung Company has less quality after making comparison with Apple Inc. Samsung Company depends largely on consumer electronics (Lee and Carter 2012) Samsung Company uses Android operating system that has various disadvantages as well Samsung Company majorly depends upon software (Lee and Carter 2012) Opportunities Weakness Samsung Company in Indian Smartphone is growing at faster pace (Homburg, Kuester and Krohmer 2013) Most of the individuals using features phones switches to use smart phones (Pealoza, Toulouse and Visconti 2013). There is growing demand for technologically advanced phone (Lee and Carter 2012) Samsung Company has strong financial position Samsung Company has growth especially in tablet market (Pealoza, Toulouse and Visconti 2013) Samsung Company has the opportunity in involving in acquisition of new companies There are large number of competitors for Samsung Company Samsung Company competitors includes Apple and HTC (Homburg, Kuester and Krohmer 2013) Chinese competitors are majorly gaining over competitive advantage (Lee and Carter 2012) Individuals shows interest in purchase f good quality smart phones (Lee and Carter 2012) There are large number of products falling under one and affects others at the same time There are huge threat from Chinese as well as Indian and Taiwanese products (Pealoza, Toulouse and Visconti 2013) Marketing Objectives of Samsung Company (SMART Objectives) S Means Specific Samsung Company should conduct specific activities for carrying out proper sales planning by the sales manager (Homburg, Kuester and Krohmer 2013). They should enter into 3D video Gaming market by collaborating with Microsoft. It will help in capitalizing on growing video gaming market as well as intends in partnership with Microsoft. It helps in developing virtual gaming product at the same time (Lee and Carter 2012). M Means Measurable Samsung Company should implement strategies that can be measurable in qualitative and quantitative terms (Pealoza, Toulouse and Visconti 2013). This company should launch comprehensive campaign that focus majorly on gaining competitiveness in 3D technology. A Means Achievable Samsung Company should implement strategies that should be achievable in the upcoming financial year (Pealoza, Toulouse and Visconti 2013). This particular company should achieve market dominance and leads the market position in the most appropriate way R Means Relevant Samsung Company should implement strategies that should be relevant in nature for future purpose (Samsung.com 2016). This particular company involves in advancement of product for the potential market. T Means Time Bound Samsung Company should implement strategies that should be performed on time for future purpose. This particular company need to focus majorly on innovative strategies and engages in research and development activities (Samsung.com 2016). This will help in gaining understanding on the needs as well as expectations of the customers. Perceptual Mapping Perceptual Map is a visual representation whereby target customers viewed as competing with nearest competitors alternatives representing the present market condition (Samsung.com 2016). There are various characteristics of Perceptual Map explained below: Pair-wise distances noticed between product alternatives indicating the closeness of the products especially in the minds of customers (Pealoza, Toulouse and Visconti 2013) Vector on the map reveals the fact as it indicates both magnitude as well as direction in the Euclidean space. Vectors are majorly considered as denoting attributes with perceptual maps (Pealoza, Toulouse and Visconti 2013) Axes on the map reveal special set of vectors that suggests underlying dimensions characterising for the customers in differentiating between alternatives (Pealoza, Toulouse and Visconti 2013) Figure: Perpetual Mapping of Samsung (Source: Homburg, Kuester and Krohmer 2013) Perceptual Mapping Process It is mainly specified in viewing at the relevancy of objects as well as products for the company named as Samsung Relevance means set of products that is selected from set of competitive products in managerial decision-making process (Samsung.com 2016) There are three major possible methodologies for collection of information on consumers perception from products (Samsung.com 2016). First method reveals the similarity-based method using multi-dimensional scaling (Pealoza, Toulouse and Visconti 2013) Second method means attribution based method considering factor analysis (Pealoza, Toulouse and Visconti 2013) Third method is the joint space mapping adding up perception and preference factor (Samsung.com 2016) Uses of Perceptual Maps Customer Analysis as well as competitive analysis- It requires understanding the competitive market structure as perceived by customers. It is positioned in relation with competition as well as selection as a set of competitors competing in the near future. It represents customers perceptions for bringing effective communication as well as discussing with the management of Samsung Company (Samsung.com 2016). Product- It involves perceptions of the new product within the existing brands in the current global marketplace (Samsung.com 2016). 4 Ps of Marketing mix Product Strategy Samsung Company offers wide-range of diverse product mix in the market. It offers LED, LCD as well as Plasma 3D TVs, mobiles and other electronic goods. Samsung products come under sources of income matrix. Samsung products offer thinnest TV that is technologically advanced with streaming with live television and also offer a diverse range of mobiles also. One of the advantages of Samsung Company is the buying Samsung 3D TV for the consumer that is technologically advanced in nature. This mainly offers Samsung gaining brand recognition in the global marketplace. Offering of various implemented designs in the product also help the company to create a better image in the marketing strategies.(Homburg, Kuester and Krohmer 2013). Price Strategy Samsung Company prices ranges from $1200 to $7000. They offer diver range of product mix starting from mobile phones, Television and other electronic products. Development of the diverse range of price for the mobiles that have created an impact in the market that attract the diverse range of consumers towards the market. It has been found that the company has concentrated on the price strategy to develop better market capture comparing with the rival companies. Place Strategy Samsung Company believes in providing its products in and across the world predominantly in North America and Europe. It also has market share in Asia market (Samsung.com 2016). Samsung has designed the product for every age group and for every segments of the market and thus the proper placement of the product is very essential for the market growth. In this aspect it is important to develop appropriate proportion of outlets in the target market. Samsung has maintained that aspect in a proper way in every country . Promotion Strategy Samsung Company focuses mainly on launching advertising campaigns as well as spends billions of dollars in and across continents such as North America as well as Asia. This company spend more than $8 million for advertising its products in Europe and $3 billion in Asia individually. They also use celebrity endorsement for promoting their newly launched products (Homburg, Kuester and Krohmer 2013). In this regard it has been found that, Samsung is contributing the major attention towards the implication of digital media for the proper promotion of the Samsung mobiles. As mentioned already Samsung is spending a lot in the promotion and major involvement in the social media is contributing towards the development of the proper promotion of the Samsung products. Project Development Projects- Samsung Company has collaborated with the world leading renewable energy companies involving CS wind, Siemens as well as clean energy components. This involves wind towers as well as blades and solar modules. It renders manufacturing facilities in Ontario. Samsung focus mainly on working on the major components as well as solar projects at the same time. These projects act as attainment of largest cluster of wind as well as solar power. It has direct Agreement committing towards collaborating for investment purpose. Conclusion and Recommendations At the end of the study, it is concluded that Samsung Company leads the current market in electronics section. It is further suggested in involving in various innovative activities for retaining in the global marketplace. It is advisable to Samsung Company in taking initiatives as well as providing more environmentally friendly electronic products for gaining the leadership position. Samsung Company enhances in conducting advertisement campaigns for creation of greater brand awareness. Samsung Company needs to consider aspects regarding attainment of Corporate Social Responsibility. Samsung Company needs to enhance their brand image by engaging in social causes like good corporate image as well as for people. Samsung Company should make improvement in the after sales services as satisfaction leads directly to customer retention policies. Samsung Company should make ways for conduct efficient research and development activities. Conclusions are drawn by using SWOT analysis of Samsung Company. Strategies involve digital vision as innovation as well as meeting challenges and creativity. Target debt-to-equity ratio arrives at 50% and 7% of total revenues should be under research and development activities. This company has overseas partners namely technology transfer arrangements as well as joint investments. Reference List Apple.com, 2016.Apple Info - Apple. [online] Apple.com. Available at: https://www.apple.com/about/ [Accessed 23 Sep. 2016]. Best, R., 2012. Market-based management. Pearson Higher Ed. Chan, H.K., He, H. and Wang, W.Y., 2012. Green marketing and its impact on supply chain management in industrial markets. Industrial Marketing Management, 41(4), pp.557-562. Choi, B., Kim, J., Leem, B.H., Lee, C.Y. and Hong, H.K., 2012. Empirical analysis of the relationship between Six Sigma management activities and corporate competitiveness: Focusing on Samsung Group in Korea.International Journal of Operations Production Management,32(5), pp.528-550. Foxall, G., 2014. Strategic Marketing Management (RLE Marketing) (Vol. 3). Routledge. Goworek, H. and McGoldrick, P., 2015. Retail Marketing Management: Principles and Practice. Pearson Higher Ed. Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education. Homburg, C., Kuester, S. and Krohmer, H., 2013. Marketing management: A contemporary perspective. McGraw-Hill Higher Education. huawei, 2016.Huawei - Building A Better Connected World. [online] huawei. Available at: https://www.huawei.com/en/ [Accessed 23 Sep. 2016]. Hutt, M.D. and Speh, T.W., 2012. Business marketing management: B2B. Cengage Learning. Jeston, J. and Nelis, J., 2014.Business process management. Routledge. Kotler, P., 2012. Marketing Management, millenium edition: Custom Edition for University of Phoenix. Kotler, P., Keller, K.L., Manceau, D. and Hmonnet-Goujot, A., 2015. Marketing management (Vol. 14). Englewood Cliffs, NJ: Prentice Hall. Lee, K. and Carter, S., 2012. Global marketing management. Oxford University Press. Lusch, R.F. and Vargo, S.L., 2014.The service-dominant logic of marketing: Dialog, debate, and directions. Routledge. Marshall, G., 2014. Marketing management. McGraw-Hill Higher Education. Mudie, P. and Pirrie, A., 2012. Services marketing management. Routledge. NDTV Gadgets360.com, 2015.Smartphone Sales Record Slowest Growth Rate Since 2013: Gartner. [online] NDTV Gadgets360.com. Available at: https://gadgets.ndtv.com/mobiles/news/smartphone-sales-recorded-slowest-growth-rate-since-2013-apple-and-huawei-gain-samsung-disappoints-g-730285 [Accessed 23 Sep. 2016]. Pealoza, L., Toulouse, N. and Visconti, L.M. eds., 2013. Marketing management: A cultural perspective. Routledge. Samsung.com, 2016.Vision 2020 | Samsung Electronics | About Samsung | Samsung. [online] Samsung.com. Available at: https://www.samsung.com/in/aboutsamsung/samsungelectronics/vision2020.html [Accessed 23 Sep. 2016]. Sheth, J.N. and Sisodia, R.S., 2015. Does marketing need reform?: Fresh perspectives on the future. Routledge. Stevens, B. 2016.Samsung breaks sales records to beat Apple - Retail Gazette. [online] Retailgazette.co.uk. Available at: https://www.retailgazette.co.uk/blog/2016/08/samsung-breaks-sales-records-to-beat-apple [Accessed 23 Sep. 2016]. Wilson, R.M. and Gilligan, C., 2012. Strategic marketing management. Routledge.

Baker Reflection Paper free essay sample

Identify and discuss three key performance measurement lessons top management should learn and understand from Baker’s engine and transmission example. First of all, we can learn from this example is that manager cannot think the performance of whole is simple sum of the performance of each of the parts considered separately. One plus one is not makes two. One plus one is greater than two in Baker’s concept. Executives should view the system as a dynamic process. The each unit and individuals in system are interdependent and interact. Secondly, the traditional system of employee feed back and evaluate should be changed. Executives cannot just evaluate employee depend on individual performance but should evaluate employee as a person who associate with a whole organization and work in system. The thinking that each individual person and unit is urged to best so that the whole will become its best and the each individual will makes greatest contribution to the company is not rational. We will write a custom essay sample on Baker Reflection Paper or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Thirdly, the system of work post responsibility should follow with system management principle. In the traditional management concept, individual just deals with his â€Å" work† and just care about his â€Å"responsibility†. In the baker’s view, the responsibility of each individual should be relates to whole organization and whole system. 2. You have heard me describe the â€Å"Baker Model† as follows: Assumptions drive structure, structure drives behavior, and behavior drives results. A. What are the assumptions, structures, behaviors, and results that will likely follow from a MBO (Management By Objective) type of management philosophy? a. MBO Assumptions: Most company attempt to maximize the benefit of shareholder and put it to the first goal of organization. MBO (Manage by Objects) is the management philosophy that was generated by this goal. MBO’s primary assumptions is that managers define each individuals major areas of responsibility in terms Of results expected of him and use these measures as guides for operating the unit and assessing the contribution of each of its members based on the object of organization. b. MBO Structure: MBO philosophy will lead to profit-oriented organization that may have a central management structure. Management process based on MBO allocates their goal to the employees from the central top to the department then to the individuals. The first phase in the MBO process is to define the organizational objectives. These are determined by the top management and usually in consultation with other managers. After the organizational goals are defined, the subordinates work with the managers to determine their individual goals. c. Behaviors of MBO By understanding the psychology of human beings, these philosophies may easily result in certain employee behavior. People are more likely to be competitive rather than being cooperative with each other. They may be lack of creativity and just obey to the directions, acting like a machine without better ideas, aspirations, or reflections on their situation. Employees are highly stressed and won’t pay enough attention on establishing relationship with others, not to mention create interactions. They just care about themselves’ goals and benefits instead of the whole company’s healthy growth, let alone natural and social responsibility of the enterprise. For instance, if the process can lead to the result, there may be real best workers and worse workers. Only those best workers will be appreciated and get attention. Most of other workers will not be inspired because they feel they can never surpass those stars of the company. If the system have problems and never generate settled goals, all the workers may lose motivation to achieve the goals. That’s the failure of MBO philosophy unless the top managers can make the process work well by ignoring any other human intelligence from the employees. d. MBO Results Owners of the business widely accept the financial reports instead of human livelihoods as their standards of measuring performance of the operators. Thus, the operators have no incentive to spend unnecessary energy on any other objects. The performance measurement system is likely to measure how every component of the organization achieves the financial budgets that are settled by the top manager. For example, sales department may have their budget of sales, and achieve revenue goals; all the departments should control and meet their costs budget, which eventually aim to achieve the whole financial goals of the company. The performance measurement system may termly reward those who fulfill the goals and punish who cannot do it. It may have clear regulations toward each department’s financial responsibility nd the relevant stimulation policy. This consequently impact on every individual in the organization. The department managers will subdivided the department’s goals to everyone and measure individual performance as the same way how the top managers did to them. That creates an enterprise culture that everyone views economic activities increasingly and exclusively in terms of abstract quantitative variables. B. What are the assumptions, structures, behaviors, and results that will likely follow from a MBM (Management By Means) Type of management philosophy? . MBM Assumptions: MBM (Manage by Mean) holds the assumptions that business should be operated as the way natural system do. Everything in the natural system can be self-organizing and connected with others. Moreover, the interaction between those things can create diversity and sustainable development. The primary principle is that people should organize the enterprise as a whole system, understand the importance of system thinking and view everyone in an organization as the part of the system, in which people are self-orga nizing. The system also exist constant interactions among all self-organizing employees. The second assumption is that if the means is correct, the result must be positive. Thus, managers should pay more attention on the process instead of results, and do not need to manage their employees’ behavior precisely. In that way, they can take fully advantage of people’s creativity power and interactions effects. The managers can save energy in creating a healthier process to help employees establish mutually helpful relationship and work easier or more efficient. That’s the sustainable way company should develop their business to a new level. b. MBM Structure As our team discussed, because MBM do not lead to a clear â€Å"win or lose† measurement system, there must be a management structure that helps to figure out whose contribution is more than others to the whole system. We thought there should be a coordinating department between top manager and other departments. The coordinating department should promote the interactions among other departments, provide mutually communicating chance and measure the contributions that each department made to the whole system. It helps top executives to find the work relationships existing between departments and how they affect each other. To achieve the entire goal of the company, some department might need to sacrifice and those departments’ negative credit might increase the total benefit. These mutually help should be encouraged to provide after comprehensive understanding about the entire process of the production. This middle department provides people data about what the system needs as a whole, and provide performance report according to how people work with system thinking. . Employee behavior of MBM In an enterprise, in which MBM philosophy is implemented, workers are more likely to cooperate with others and full of ideas and vigor. They are also highly self-organizing and self-motivated. Employees will not ignore the existence of problems; on the contrary, problems will be reflected to the managers very fast and sometimes get fixed at the very beginning. Every component of the company is operated as one whole system and the sum of them might even be more than the whole. d. MBM Results As we discussed before, the middle coordinating department should make out an appropriate measurement system that can measure how components contribute to the whole system. For instance, after some conferences about everyone’s work difficulty, others may think about how they can cooperate and provide help to fix others’ problems. We can measure how department’s managers are willing to provide helps. Then we can measure how they fulfill their commitment. We also can measure how efficient those changes are made and how effective these interactions promote the system. In a word, we measure how fast people located problems and what they do in fixing the process. The performance measurement system cares more about means and process instead of results. If the process don’t lead to results, that’s unwise to punish the workers. Changing the systems and the means of work are the solution. 3. How would Baker’s key points and MBM approach have improved thee outcome in our red bead game? As we all know, if individual cannot make good performance, manager just simply give criticize to employee and ignore effects come from system. The goal of company is improve the performance of system. However, many managers just focus on how to improve the employee performance and have not realized the importance of system effect. If managers make efforts on redesign system and try to understand variation, if manager can figure out the interrelationship of people, market, method, equipment and environment not just separately deal with it, we can get lots of benefits and get great progress in term of system performance. Depending on above principles and assumptions, we can redesign the process of red bead game and modifier the method how to product white beads. With simply stimulate employee, give advance equipment and analysis market data cannot change the whole system. When manager can put all factors in whole system together to thinking, in this way, we can solve problem and improve the whole system in shortly.

The Pantheon Essays - Domes, Pantheon, Rome, Rotunda, Pantheon

The Pantheon Essays - Domes, Pantheon, Rome, Rotunda, Pantheon The Pantheon The Pantheon is one of the finest and best preserved examples of ancient Roman architecture. It stands in the center of Rome. The Pantheon was constructed by Marcus Agrippa in 27 B.C. This building did not include the rotunda in back. In A.D. 123 Hadrian built the rotunda, which was later changed in design by Septimius Severus and Carcalla. When the Pantheon was being built by Hadrian, credit was given to Agrippa. A large inscription was made on the front of the portico. The Romans built the Pantheon as a temple in honor of all the Roman gods. The name Pantheon literally means, "of all the gods." The Romans gave this name to any of the temple which served the purpose of worship of all the gods. The rotunda forms the main part of the building. It forms a half perfect sphere. The dome itself is 142 feet in diameter. It rises 142 feet above the floor.. The design of the dome was constructed to reflect the few sources of light admitted to the building. The dome was built of Roman brick and mortar, which was covered by marble inside of it. The rotunda is a thick concrete wall that is 6 meters thick. This is what supports the approximate weight , 5,000 lbs, of the dome. The only light which enters the building comes from the top of the dome. The oculus, the only window in the Pantheon, is 27 feet in diameter. The sunlight that shines through the oculus shifts hour-to-hour highlighting the walls that are painted throughout the building. In front of the rotunda is a beautiful porch, or portico, which belongs to the original temple built by Agrippa. Across the front of the portico stands 16 great Corinthian columns. Each hewn from a single stone. They were 14.2 meters high and 1.5 meters in diameter. The Pantheon was renamed the Santa Maria Rotunda when it became a Christian church in A.D. 609. The famous painter Raphael and other Italian kings are buried there. It now is a museum and serves as a tourist spot in Rome.

Credit Rationing Essay Example | Topics and Well Written Essays - 1000 words

Credit Rationing - Essay Example The extent of this level depends entirely on the perceived risks in the bank's lending or investment activities. This limitation sometimes leads to credit rationing, which is a situation where a bank refuses credit to a borrower at an interest rate set by the bank itself, because of unavailability of sufficient free capital. To understand the pressures on the capital free for lending available to the bank, we need to understand the limitations placed on it by the central bank in the particular country in order to control its activities. One of the limitations on the bank is the statutory requirement that it should submit a defined percentage of certain kinds of the deposits it receives, into the central bank as reserves at zero interest, in vault cash or deposits. These requirements represent a cost to the bank, as they earn no revenue,and are not in the bank's control.These reserves are used in the day-to-day implementation of monetary policy by the Central Bank. The percentage deduction from each deposit may go towards the maintenance of the entire banking system, but it reduces the amount of capital left to the bank for lending or investments. Another requirement is for the bank to maintain an amount of liquid assets for itself as reserve against specified deposit liabilities, for instance, to pay depositors in case they wish to make a withdrawal, or a certain amount that is due to them at the expiration of a designated saving activity. This further reduces the balance capital for investments, and these liquid assets languish in the bank without working to earn an interest. Higher the statutory reserve and liquid asset requirements, lower the amount of cash available to the bank to extend in terms of credit. In some countries, the statutory reserve ratio is high, resulting in less available amount of credit given out to the borrowers.Thus rationing the credit is the only option left to the bank, in order to maintain the capital adequacy requirements. In the periods where the demand for credit is high, because of a booming market or low interest rates, it may be suggested that the bank increase its interest rates, instead of rationing credits at previous rates. But this could result in bad credit, because the creditworthy individuals move off to cheaper options, following the conditions of adverse selection and the borrowers willing to pay the high rates are those who have very little to lose, or are willing to give up their collateral in exchange for the loan amount. In this case, the bank may be also stepping into a situation of moral hazard where the motives of these borrowers are suspect. To avoid these, banks try to give loans at affordable interests to those with a perceived low credit risk and ration it in the case of all others. But this does not always protect them from acquiring bad loans, or non-performing assets. An asset or loan becomes 'non-performing' or bad when it has not been serviced, or in other words, the interest and/or instalment of principal has remained 'past due' or unpaid for more than the stipulated period, 90

Abortion Rights American Legal System Essay Example | Topics and Well Written Essays - 1000 words

Abortion Rights American Legal System - Essay Example The affect of the decisions attributed, often vary in many aspects. Some decisions adjudged by the court affect only the party concerned, while there are certain prominent decisions that potentially affect the rights, benefits, and legal principles of virtually all the Native Americans. There are in stances when Americans welcome a certain ruling, while there are also cases that receive that disapproval and protests of the American citizens. However, the notable fact is that all American citizens accept the legitimacy of these decisions, and also of the courts role as the final interpreter of the law. It is certain that the citizens of America place their faith in the rule of law, and also cast their vote of confidence on the legal system of United States of America (State, 2001, p.6). Abortion rights in the American legal system The United States of America portrays an emerging trend where the freedom of choice is used to presage the freedom from responsibility. However responsibili ty is required from the fruitful exercise of any freedom. The abortion rights and the decisions rendered by the American legal system on the abortion rights of the Native Americans had a significant and widespread impact on the lives of the citizens across the United States of America. The rulings in abortion rights cases have given birth to more intense emotions in the American citizens.... It is essentially noted that the outset that this â€Å"freedom of choice† is exercised not only by the women of the country, but also by the men’s in the state. It is an often scenario that men, influence their wives and several other to undergo abortion so that they can be free from accepting the con sequences of their action. It is obvious that when a woman conceives, the action is a result of the process that involves willingness of both the man and the woman (apart from the instances of rape) (Bullock, 1994, p.1). The case of Roe vs. Wade Jane Roe was a fictitious name attributed to Norma McCorvey. She was an unmarried pregnant woman, an inhabitant of Dallas, Texas. Joe wanted to opt for abortion, and filed a suit in the year 1970, to prevent the Dallas county prosecutor Henry wade from imposing the antiabortion laws in her case. Although by the time the case was brought during the year of 1971, rose had already delivered her baby and put it up for adoption. Althou gh roe was no longer pregnant, the United States court rejected the claims that the case was debatable, arguing that Joe might get pregnant again, and other women similarly situated would become pregnant. Justice Blackmun acknowledged the fact that, â€Å"pregnancy litigation seldom will survive much beyond the trial stage, and appellate review will be effectively denied† if a case became moot as soon as the pregnancy ended (Jburroughs, 2003). Blackmun declared that it would be unfair towards the women if the law in the states would be so rigid. He found that pregnancy serves a good reason for an end of non-mootness. The court focused on the merits of roe’s claim. Justice Blackmun considered the antiabortion legislation, as well as other various ethical, philosophical, and religious writings on the

Cultural Transformation in Mississippi Article Example | Topics and Well Written Essays - 1500 words

Cultural Transformation in Mississippi - Article Example By the turn of the 19th century, the Mississippi was an Indian location. Indians were the most numerous residents. Indian villages also controlled passage down the river. Indian villages were governed by chiefs. Villages such as of those of Choctaw were autonomous and had a common language (Bradley 18). The Chickasaw had a great Chief who was consulted if community issues arose, or there were disciplinary problems that had to be met. The Indians had a unique way of designing their buildings, in addition to the mode of dressing (Bradley 18). Few of them still based their residences on molds, which had been a way of life since medieval times. Of the few white residents residing then, most were of French ancestry. Hence, cultural behavior and daily rules were derived from these two groups. Besides the particulars of French and Indian cultures, it is imperative to note that the Mississippi was a frontier. The culture of the region reflected a locality where people of diverse backgrounds collided. It also reflected a place where the systems of power and governance were uncertain. Colonial Mississippi was characterized by marked cultural differences from each kind of population. The cultural challenge during these times was to make the diverse population into a single nation. As migration mixed the population, and an improvement in communication and transportation technologies decreased the geographical barriers, the Mississippi culture began to homogenize during colonial times (Morris 22). New residents of Mississippi developed a cultural identity that was different from their ancestral lands. Attitudes towards social class, religion, manners, and slavery combined to make a distinct western culture and character (Ownby 38). The energy that drove cultural evolution in the region can be broadly categorized into two sources: local and global (Morris 6). One of the forces radiated from within the locale, where people confronted and continually changed their local enviro nment. The other force was as a resultant of the wide and always changing world. The culture of Mississippi was also a direct result of broader diplomatic and commercial factors (Wyne 4). In spite of everything, culture and commerce worked together to shape how residents negotiated with each other. Meanwhile, particular frontier circumstances were preserved due to the lack of clear resolutions in the struggle between the US, Europeans, and Indians for the control of Mississippi. In the 1820s, soil exhaustion and economic problems in the East forced tens of thousands of white Americans to seek fortune in the West (Wyne 3). The Mississippi region was deemed to offer a promised land of fertile, cheap land, where the river itself assured of speedy connections to the markets. By 1850, the Mississippi river was a thoroughfare through the increasing different cultures of South and North. The culture of lower Mississippi was rested on slavery (Ownby 54).  

The American Revolution: War Of Independence

The American Revolution: War Of Independence The American Revolution is a historical event that provokes the true spirit of nationalism in many Americans. They honor the proactive fathers, shake their fists at oppressive England, and applaud at the legends of daring and headship. It has always been the curiosity among the people that how the Americans of the 18th century got along with the victory. How did the green, weakly equipped, roughly trained military of a newborn country consisted of 13 liberated and jointly jealous nations draw closer to crush one of the worlds utmost military powers? Was it unknown New World insurrectionary strategy, French support, British wrong steps, American marksmanship, or the intrusion of great luck that made the difference? The question went on until in the years of 1950s and 1960s, French and American observation in Indochina grasped the life out of the query. There were evident and considerable distinction between the American revolutionary war and Vietnamese dispute. However, after Vietnam it no longer looked dubious that immense armed forces may possibly submerge in an effort with a minor but willful rival along with a resident population whose faithfulness may not be trusted, Above all, when the expenses of the warfare and ambiguity about its reasons damaged the big powers national help. All those circumstances were present in Britains battle with its American colonies. Post-Vietnam Americans know personally why Britain eventually could prefer to remove its military- albeit it was not totally crushed -rather than to lengthen a devastating struggle. Even so, the American Revolution is an unsuitable name for the reason that it was not really a revolution. Dr. George Grant (2003) define revolution as, the revolution occur when men goes for aggressive warfare not in favor of their command because they desire instantaneous alteration in or eradication of the previous command. (Grant, 2003, no. 20) These all things are found in the French Revolution, but not in the so-called American Revolution. Rather looking for essential reformation of society, the earlier fathers sought to defend traditional rights. (Woods, pp. 11). If it was not a revolution, then what was the American Revolution? Conceivably more appropriate terminology would be the American War for Independence. Longing to transform Englands rule as a result that the colonies would be regulated legitimately, the earlier fathers struggled no revolution, only a war for Independence in which Americans threw off British authority in order to retain their liberties and self-governm ent. (Woods, year, pp. 14). Their reflection formed by people like John Locke, John Calvin and Montesquieu, the first Americans had a conventional outlook of government that they assumed England had desecrated. Americans appealed to the King of England to reinstate their civil rights, but the king rejected. Hopeless of settlement, the colonists look forward to solve their problem by own self to reinstate the control, not to produce a new one. If the term revolution were applied, it would be more correct to declare that the revolutionaries were the English king and parliamentarians who rebuffed to go along with the printed agreements that they had handed over the colonies. (Grant, 2003, no. 20) Even though many hated British rule but the colonists did not desire to be free because they concealed abhorrence for England. There were various basis of war and were greatest significance to the Americans, who just wanted to claim their constitutional rights as British subjects. Earlier than the war, according to Woods, they complained that their early-chartered rights were being debased. (Woods, pp. 13) These all-primitive chartered rights were the mixture of the Magna Charta, the Arbroath Petition, and the English Bill of Rights. All these rights provided the same rights to the colonies as to the English cities. The Magna Charta granted stated observances of which we have granted in our kingdom as far as pertains to us towards are men, shall be observed in our entire kingdom. (Magna Charta) Nevertheless, King George III was not giving them their full rights that he was giving to English cities by imposing additional taxes and laws that were not there in England itself. Instead of hearing Americans plea peacefully, the Americans were charged ruthlessly by the British government to insure the price of the war. As John Locke describes tyranny in his Second Treatise on Government as the application of power ahead of right and that right being in the purpose of government to safeguard all the mankind rather than harming anybody except it is for the purpose to do fairness on an wrongdoer. British breached the rights of the charters, liberty and natural law. What England was forcing on the colonies was also an infringement of the Magna Chartas section 13. By all laws that mentioned above and by their own individual charters, the colonies were legally protected from Englands dishonest proceedings. The primitive Americans were worried about their family; they intended to guard the freedom that they had navigated the ocean to safeguard and the colonists thought that their charters stood as promise. When their complaints were neglected, the colonists struggled tenaciously for freedom. (Grant, 2003, no. 18) The colonists were not struggling for a trouble-free living for themselves, but for liberty from oppression for their companions, kids, and generations to come. They wanted to defend the biblical commandment in spite of of Englands tyranny. Because of salutary neglect a term meaning that English government backed out of the colonies business for years the Americans had efficiently governed themselves while England was busy fighting wars. The colonists had happy and peaceful livelihood when the British were busy in their wars and did not hoped to be bothered. However, at the wrapping up of their wars, Britain began taxing the colonies. As expected, the colonists objected, but the English branded them as extremists. After doing a number of efforts to resolution, the colonists left and go for the way out which was war. In succeeding years, it has been feasible to evaluate further considerately than before the troubles Britain confronted in formulating a successful plan for terminating American confrontation and to point the variations in British notions of how to carry out a complex battle. At first, the British perceived conflict as the discipline of the unruly. According to the second President of the United States John Adams, the record of the American Revolution activated as early as 1620. The Revolution was provoked before the war started. The Revolution was in the hearts of the people. The values and enthusiasm that directed the Americans to rise up and to be located back for two hundred years and wanted in the past of the country from the first initiative in America. More severe in its consequences was the new financial strategy of the British government, which required more funds to sustain the rising empire. Unless the taxpayer in England was to contribute it all, the colonies would have to supply as well. However, takings could be obtained from the colonies simply via a stronger central management, at the cost of colonial autonomy. The foremost action in launching the new structure was the approval of the Sugar Act of 1764. This was planned to gather revenue exclusive of regulating trade. Actually, it substituted the Molasses Act of 1733, which had positioned an excessive import taxes from non-English regions. To impose it, customs representatives were prepared to demonstrate more power and strictness. On the night of April 18, 1775, General Gage transmitted persuasive facts of his battalion to remove these weapons and to take Samuel Adams and John Hancock into custody, both of whom had been commanded to send to England for their trial. However, Paul Revere and two other messengers had warned the whole country. After the quarrel on 18 April 1775 at Concord, the British thought they might finish civil disobedience by separating and reprimanding the insurgents at Boston via display of power. By squeezing the core of struggle, the British expected to get the remainder of the colonies into a row. On the contrary, this tactics did not last long. On 17 June 1775 at the Battle of Bunker Hill, the British instigated a wild frontal attack on the American positions on Breeds Hill in an effort to show the indestructibility of trained armed forces against inexperienced troops. The exhibition was not a success. Despite of the excessive sufferings, the rejection of the Americans to surrender until they tire out their bullets forced the British to have another look at American power. It was no longer convinced that the revolts could be frightened. Moreover, the flood of assistance from further New England towns and the guarantee of abet from the other colonies damaged their certainty that the revolt cente red in Boston only. With first suppositions about the rebellion failing, the British must call for a new plan. On May 10, 1776, a declaration to cut the Gordian knot was approved. At that time only a official announcement was required. On June 7, Richard Henry Lee of Virginia presented a resolution announcing in support of independence, overseas coalitions, and American federation. Instantly, a team of five, supervised by Thomas Jefferson of Virginia, was appointed to dispose a formal statement setting forth the causes which impelled us to this mighty resolution. On 4 July 1776, the day of Independence was declared. It was not only declaration of the newborn state but also lay down the example of philosophy of human freedom for upcoming generation. It lay not specific objections but upon a wide support of individual autonomy that could control common support all over America. The political philosophy behind the liberty was precise and clear: We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights; that among these are life, liberty, and the pursuit of happiness. That is to secure these rights, governments are instituted among men deriving their just powers from the consent of the governed: that whenever any form of government becomes destructive of these ends, it is the right of the people to alter or to abolish it, and to institute a new governmentà ¢Ã¢â€š ¬Ã‚ ¦ (Jefferson) In the Declaration of Independence, the colonists legitimately declared their self-governance and make a list of injustices carried out against them. At that time, Jefferson made it apparent that in every step of these tyrannies they have formally requested for restoration but they have been disappointed every time. The Revolutionary War persisted for further six years, with combating in every colony. For several months once independence was confirmed, the Americans experienced harsh setbacks. The opening of these was in New York. From the moment the Declaration of Independence was signed, France had not been impartial. The government had been willing to take revenge with England from the time when France was crushed in 1763. In addition to that, eagerness for the American reason was great: the French logical world was itself in rebel against feudalism and its benefits. Yet, although France had appreciated Benjamin Franklin to the French court and had provided aid to the United State s, it had been unwilling to jeopardize of direct intrusion and openly call for war with England. After the war of years, British wishes to take legal action against the war. However, in the year of 1782, the House of Commons voted to discard this attempt. Lord Norths control knocked out, and the new ministry under Lord Rockingham initiated talks with the American peace representatives. Dialogues began in April in Paris and the initial articles of peace were signed on 30 November 1782. After approval by Britain and the U.S. Congress, the ultimate peace treaty was signed September 3, 1783. The war has been refought numerous times in an effort to detect the vital British blunders. Perhaps no policy was identical to the task of soothing American struggle. Regardless of their greater numbers, the British carried out in an aggressive situation that again and again overwhelmed all attempts to stop rebellion. It is correct that as the war heaved on Americans were lethargic to join up, unwilling to pay for still more supplies, and extremely exhausted of the quarrel. However, in the final analysis it was the rebuff of the national population to surrender and the willpower of hundreds of inexperienced, badly supplied militia companies to annoy the opponent that weighed greatly in the crushing of the British forces in America. The former Americans did build a new administration later than the American War for Independence and only in that manner; the earlier fathers can be believed as revolutionaries. Instead of a rebellion of horror and fear, nevertheless, the American Revolution was a diplomatically and fatalistic revolution. After all this, the real revolution started in America when England treated America as a self-regulating state. Americans were looking to modify instead of completely changing the government. Since they were having biblical fundamentals in their society, earlier Americans realized that man is corrupt and on earth, there cannot be an ideal government. Nevertheless, they were having hope that it was achievable with Gods help. Therefore, with the intention of forming an ideal coalition, create justice, assure domestic harmony, present the general security, encourage the common wellbeing, and protected the blessings of independence to ourselves and salute to the former Fathers that initiated the American Reformation. Work Cited The Constitution of the United States of America. Law.emory.edu. 1787. Emory Law School. 1995. DeMar, Gary. Was it Right to Fight the War for Independence? Biblical Worldview Magazine July 2005 Grant, George C. American Culture. Lecture notes. Franklin, Tennessee; Gileskirk, 2003 Jefferson, Thomas The Declaration of Independence. U.S. History.org 1776. U.S. History.org. 1995. Locke, John. Second Treatise on Government. libertyonline.hypermall.com .1690. Liberty Online. 1999 . The Magna Charta Constitution.org 1215. Constitution Society.1995. Woods, Thomas E., Jr., Ph.D. The Politically Correct Guide to American History. Washington D.C.: Regnery Publishing Inc, 2004

Witness :: essays research papers

Communication is more than just words   Ã‚  Ã‚  Ã‚  Ã‚  When one sense is diminished, another is magnified, but can it ever truly be compensated? In some instances, yes however, when addressing the ability to communicate, there are two senses, that when absent hinders the communication process: sight and touch. Communication is more than just words. In an effort to explore this idea further, we will look at the movie â€Å"Witness†.   Ã‚  Ã‚  Ã‚  Ã‚  The movie, starring Harrison Ford and Kelly McGillis, takes place in New England. After losing her husband, Rachel Lapp (McGillis) and her son, Samuel, travel via railway to Baltimore, Maryland to celebrate the birth of Samuel’s cousin. When Samuel goes to the restroom during a delay in Philadelphia, he witnesses the murder of a Narcotics Officer. During the investigation, Detective John Book (Ford), discovers that the murderers are two fellow officers in conspiracy with the Chief of Police. In an effort to protect Samuel Lapp, John finds himself living in the Amish community with Rachel, Samuel, and Eli Lapp, Rachel’s father-in-law.   Ã‚  Ã‚  Ã‚  Ã‚  When two worlds such as an Amish community and a 20th century metropolis collide, they give textbook examples of different aspects of communication.   Ã‚  Ã‚  Ã‚  Ã‚  During the first half of the movie, when Rachel and Samuel enter into this unknown society, their reactions are mirrored by society’s reactions to them.   Ã‚  Ã‚  Ã‚  Ã‚  When Rachel and Samuels board the train, we see Eli Lapp, and friend of the family, Daniel; express their discontentment of Rachel’s decision to venture out into a world filled with â€Å"evil†. While Eli’s expressions are of concern and care, we notice, as Daniel gives Samuel a small wooden toy, his countenance pouring with an alterative motive as he smiles flirtatiously at Rachel.   Ã‚  Ã‚  Ã‚  Ã‚  Next, lets discuss Rachel’s insinuations towards the foreign society. When we see Rachel on Eli’s farm, she seems to be a very devoted Amish woman. This implication remains unchanged, as we see her at the train station in Philadelphia. She is very introverted, as she sits alone on a bench, sewing. She is stiff and apathetic to the world revolving around her and in making no attempt to commune with it, only speaks German to Samuel while in public, succeeding in isolating themselves. She demonstrates great lethargy towards any issue that exists outside her â€Å"realm†. She demonstrates this several times when, while someone talks to her, she stares out the window, making no eye contact and sending a loud and clear message that she does not want to hear what he or she are saying.

Banking Practice & Guiding Laws Thereof on Ncc Bank

INTRODUCTION PART 1. 0 INTRODUCTION PART 1. 1 Origin of the Report This internship report entitled â€Å"Banking Practice & Guiding Laws thereof: NCC Bank Perspective. † has been started at the November 2011 under the instruction of our honorable intern supervisor & instructor Syed Shamsir Hossain. Asst. Vice President & Manager for the partial fulfillment of the requirement. 1. 2. Objectives of the report Main objective of the report is to analyze the â€Å"Banking Practice & Guiding Laws of NCC Bank Ltd. Moreover, the study also embodied the following specific objectives: 1)To study the existing operations/activities of General Banking Section 2)To study the existing operations/activities of foreign exchange section. 3)To study the existing operations/activities of loans and advance section. 1. 3 Methodology of the Study The methodological section of the study is designed as data collection: Methods of Data Collection The report was fully exploratory in nature. Data have be en collected from both primary and secondary sources.Primary sources of data †¢Face to face conversation with the bank officers & staffs. †¢Informal conversation with the clients Secondary sources of data †¢Different manuals of NCC Bank Limited †¢Different circulars of NCC Bank Limited †¢Annual report of NCC Bank Limited, (2008-09-10) †¢Prospectus of NCC Bank (2010) 1. 4 Limitation of the Report The present study was not out of limitations. But as an intern it was a great opportunity for me to know the banking activities of Bangladesh specially NCC Bank. Some constraints are appended bellow: The main constraint of the study is inadequate access to information, which has hampered the scope of analysis required for the study. As it is a new bank it could not start all its operation, it was unable to provide some formatted documents data for the study. ?Every organization has their own secrecy that is not revealed to others. While collecting data i. e. int erviewing the employees, they did not disclose much information for the sake of the confidentiality of the organization. ? Since the bank personals were very busy, they could provide me very little time. Another problem is that creates a lot of confusions regarding verification of data. In some cases more than one person were interviewed to clarify each concept as many of the bankers failed to provide clear-cut idea about the job they perform. AN OVERVIEW OF NATIONAL CREDIT AND COMMERCE BANK LTD. 2. 0 NATIONAL CREDIT AND COMMERCE BANK LTD. 2. 1 Introduction NCC Bank Limited is a new generation bank. It is a scheduled bank under private sector established under ambit of Bank Company Act, 1991 and incorporated as Public Limited company act, 1994 on 17th May 1993.Prior to conversion into a scheduled commercial bank; National Credit Limited (NCL) was incorporated as public limited investment company in Bangladesh on 18th November 1985. It made its journey with a modest beginning on 25th November 1985 at its registered office and first branch at 7-8 Motijheel Commercial Area, Dhaka-1000. The initial Authorized Capital of the company was 30 (Thirty) crore consisting of 30 (Thirty) lac. Ordinary share of Tk. 100/- each. A new opportunity in this field of financial activities was opened for the business.NCL made a careful journey and maintained its successive growth for few years with its qualified professional management under most unpredictable, unregulated, uncertainties and limitations. The emergence of NCC Bank Limited at the Juncture of liberalization of global economic activities, after the URUGUAY round has been an important event in the financial sector of Bangladesh. The experience of the prosperous force and the strategic operational policy is the option of the bank. The company philosophy, â€Å"A Bank with vision† has been precisely the essence of the legend of Bank’s success. . 1. 1 NCC Bank- At Present Like clothes shops, candy shops, bake shops, food shops, NCCBL is not a â€Å"debt shop† the term being used by many to call the present say banks. It is now been called a modern bank that undertakes all its operation at international standard. Having standard its operation as a commercial bank in 1993, recording from some primary difficulties, NCC bank has now emerged as a major player in the financial sector. Listed in both Dhaka and Chittagong bourses since late 1999 with an IPO that raised the paid-up capital of the bank to Tk. 9 crore. Banks are the pillars of the financial system. Specially, in Bangladesh, the health of the banking system is very vital because the capital market is little developed here. As the banks are still the major sources of credit and exercise great influence on the financial system, it is extremely important that the country’s banking systems should be in good health in the interest of investment activities, meeting the needs of all kinds of finance and related matters.Over the years, NCC bank has built itself as one of the pillars of Bangladesh’s financial sector and is playing a pivotal role in the extending the role of the private sector of the economy. The bank has a strong branch network nation wide with 32 branches. i. 2. 1. 2 Exchange: NCCBL operates foreign exchange business promptly. There 13 branch deals with foreign exchange. 2. 1. 2 Nature of the business Mission of NCC bank We shall be the forefront of national economic development by: ?Anticipating business solutions required by all our customers everywhere and innovative supplying them beyond expectation. Setting industry benchmarks of world class standard delivering customer value through our comprehensive product range, customer service and all our activities building an exciting team-based working environment that will attract, develop and retain employees of exceptional ability who help celebrate the success of our business, of our customer and of national development. ?Mainta ining the highest ethical standards and a community responsibility worthy of a leading corporate citizen. ?Continuously improving productivity and profitability, and thereby enhancing shareholder value. . 1. 3 Vision To be in the front of national development by providing all the customers inspirational strength, dependable support and the most comprehensive range of business solution through our team of professional that work passionately to be outstanding in everything we do. 2. 1. 4 Goal of the Bank To share a significant portion of the banking sector’s by utilizing available manpower and also state of the art technology for maximizing the shareholders wealth. i. Long Term Goal To maximize the wealth of the shareholders. ii. Short Term GoalTo earn satisfactory rate of return on investment by providing wide range of banking service. 2. 1. 5 Board of Directors At present there are 26 members in the Board of Director. Out of 26 members 23 of them are the sponsor of the shareh older and 3 of them are publicly nominated as the equity participants from capital market have included them. However the members are obliged to maintain annul general meeting and declare the dividend payout schedule on due time. Moreover, the committee selected by shareholders represents individual body that then looks after the periodic issue with the management and tries to solve the problem. . 1. 6 Management of NCC BANK For any financial and non-financial organization, Management is the most valuable and important resources of any kind of organization. And, a well-organize management provides the organization to reach its ultimate goal. Management means planning, organizing, staffing, directing and controlling of all financial and non-financial resources of an organization. Different aspects of management practice in NCC BANK planning, organizing, staffing, directing & controlling, human resources practices and recruitment finally. 2. 1. Features of NCCBL Bank is an intermediar y institute. Like other commercial bank NCCBL also has some special features. They are as follows: ii. Legal Entity: It is compulsory matter for a bank to achieve legal entity. The stronger legal entity leads to effective banking program. NCCBL has a strong legal entity. iii. Organizational Structure: NCCBL has a well-set organizational structure. Organizational structure is a precondition of effective banking activities. iv. Financial Solvency: Though NCCBL is a new bank, its ratio of liquidity is well and strong.So, the clients get greater confidence in the bank. v. Location of The Bank: Location is very useful for bank. The Head Office and the branches of NCCBL are located in the central point of the capital and the other district towns. vi. Relation with the Central Bank: As the NCCBL is the government-registered bank, so it maintains a friendly behavior with the Bangladesh Bank. vii. Security: the NCCBL is totally a secured bank. The clients of the bank get a heavy security on their deposit. viii. Management of the Bank: The executives and the officers of NCCBL are very experienced.Maximum executives are ex-government bank officers. NCC bank is a progressive commercial bank in privet sector in Bangladesh. It creates a new opportunities for its clients. It gives customized service and harmonious banker-client relationship. It contributes towards formation of national capital, growth of saving and investment in trade, commerce and industrial sectors. It provides different types of commercial banking and services to the customer of all strata in the society with in the stipulation laid down in the Bank Company Act 1991. Rules and regulations ramed by the Bangladesh bank from time to time. 2. 1. 8 Business Operation National Commerce and Credit Bank Limited emerged as bank in the country on 17th May 1993 out of a great turbulent situation encounter by set while National Credit Limited. However the institution survived the ordeals and come out as a full-fledge d commercial bank. The company raised its Authorized Capital to Tk. 750 million as per guidelines set out by the Bangladesh Bank. The paid up capital was fixed at Tk. 480. 48 million as against Tk. 429. 00 million. 2. 1. 9 Trade Finance and Correspondent BanksSuccessful companies today are fully aware that they need to be able to rely on the services of a bank that can handle international trade with a good hand. Ever since its conversion into a full –fledged bank in 1993, NCC bank has been an accomplished â€Å"Trade Finance† bank. With a highly professional team experienced and competent professionals we are able to provide a wide range of services to companies engaged in international trade. NCC Bank has also positioned itself as an established correspondent bank. Through a worldwide network of 260 correspondent banks NCC Bank is present in all key areas of the globe.Our ambit of correspondent includes top ranking international banks with a global reach. 2. 1. 10. B ranches of NCCBL NCCBL has 87 (Eighty Seven) branches all over in Bangladesh. 2. 1. 11. Performance of the Bank The bank may sustain its strong image in the mind of the customers and shareholders as a leading financial institution despite serious competition from both local and foreign banks operating in the country. Sill they are increasing their profit. Its opening profit was Tk. 624. 94 million in 2003, which were Tk. 2371. 68 million after tax in 2010. 2. 1. 12 Authorize CapitalThe authorize capital of the bank is Tk. 10,000. 00 million in the year 2010. 2. 1. 13. Paid-up Capital The bank raises its paid-up capital from Tk. 480. 48 million to Tk. 4501. 25 million for 2002 to 2010. With the increase of paid-up capital the capital based of the bank has become strong. Reserve Fund and Other Reserves The reserve fund of the bank increased of Tk. 5771. 09 million in the year 2010 as against Tk. 4371. 62 million of previous year. 2. 1. 14 Corporate Mission †¢To provide high quali ty financial services in export and import trade. †¢To provide excellent quality Customer service. To maintain Corporate and business ethics. †¢To become a trusted repository of customers' money and their financial advisor. †¢To make our stock superior and rewarding to the customers/share holders. †¢To display team spirit and professionalism. †¢To have a Sound Capital Base. 2. 1. 15 Corporate Culture This bank is one of the most disciplined Banks with a distinctive corporate culture. Here we believe in shared meaning, shared understanding and shared sense making. Our people can see and understand events, activities, objects and situation in a distinctive way.They mould their manners and etiquette, character individually to suit the purpose of the Bank and the needs of the customers who are of paramount importance to us. The people in the Bank see themselves as a tight knit team/family that believes in working together for growth. The corporate culture we bel ong has not been imposed; it has rather been achieved through our corporate conduct. 2. 1. 16 SWOT Analysis SWOT analysis is the detailed study of an organization’s exposure and potential in perspective of its strength, weakness, opportunity and threat.This facilitates the organization to make their existing line of performance and also foresee the future to improve their performance in comparison to their competitors. As though this tool, an organization can also study its current position, it can also be considered as an important tool for making changes in the strategic management of the organization. Strengths: —NCC BANK Limited has already established a favorable reputation in the banking industry of the country. It is one of the leading private sector commercial banks in Bangladesh. The bank has already shown a tremendous growth in the profits and deposits sector. NCC BANK has provided its banking service with a top leadership and management position. — NC C BANK Limited has already achieved a high growth rate accompanied by an impressive profit growth rate in 2001. The number of deposits and the loans and advances are also increasing rapidly. — NCC BANK has an interactive corporate culture. The working environment is very friendly, interactive and informal. And, there are no hidden barriers or boundaries while communicate between the superior and the employees. This corporate culture provides as a great motivation factor among the employees. NCC BANK has the reputation of being the provider of good quality services too its, potential customers. Weaknesses: —The main important thing is that the bank has no clear mission statement and strategic plan. The bank doesn’t have any long-term strategies of whether it wants to focus on retail banking or become a corporate bank. The path of the future should be determined now with a strong feasible strategic plan. —The bank failed to provide a strong quality-recruitm ent policy in the lower and some mid level position. As a result the services of the bank seem to be Deus in the present days. _The poor service quality has become a major problem for the bank. The quality of the service at NCC BANK is higher than the Dhaka Bank, NCC BANK or Dutch Bangla Bank etc. But the bank has to compete with the Multinational Bank located here. —Some of the job in NCC BANK has no growth or advancement path. So lack of motivation exists in persons filling those positions. This is a weakness of NCC BANK that it is having a group of unsatisfied employees. __In terms of promotional sector, NCC BANK has to more emphasize on that. They have to follow aggressive marketing campaign. _The default risks of all term loans have to be minimized in order to sustain in the financial market. Because of default risk the organization may become bankrupt. NCC BANK has to remain vigilant about this problem so that proactive strategies are taken to minimize this problem if n ot eliminate. Opportunities: —In order to reduce the business risk, NCC BANK has to expand their business portfolio. The management can consider options of starting merchant banking or diversify into leasing and insurance sector. — The activity in the secondary financial market has direct impact on the primary financial market.Banks operate in the primary financial market. Investment in the secondary market governs the national economic activity. Activity in the national economy controls the business of the bank. —Opportunity in retail banking lies in the fact that the country’s increased population is gradually learning to adopt consumer finance. The bulk of our population is middle class. Different types of retail lending products have great appeal to this class. So a wide variety of retail lending products has a very large and easily pregnable market. — A large number of private banks coming into the market in the recent time.In this competitive environment NCC BANK must expand its product line to enhance its sustainable competitive advantage. In that product line, they can introduce the ATM to compete with the local and the foreign bank. They can introduce credit card and debit card system for their potential customer. —In addition of those things, NCC BANK can introduce special corporate scheme for the corporate customer or officer who have an income level higher from the service holder. At the same time, they can introduce scheme or loan for various service holders.And the scheme should be separate according to the professions, such as engineers, lawyers, doctors. Threats: —All sustaining multinational banks and upcoming foreign and private banks pose significant threats to NCC BANK Limited. If that happens the intensity of competition will rise further and banks will have to develop strategies to compete against these local and foreign banks. —Other commercial banks are offering higher salary that may create problem for NCCBL to retain their experienced managers and executives. ? MAJOR PRODUCTS OF NCC BANK LTD. 3. 0 PRODUCTS OF NCC BANKBefore discussion about products of NCC Bank, we have to understand what bank’s products are. Bank is a service oriented industry and deals with various financial products and services for financial gains. Financial products and services products that a bank offers to its customers are mainly classified as under: a)Deposit Products to generate funds. b)Lending products for financial gains c)Money Transmission products d)International business products e)Special fee earning service3s f)social services products Products that are marketing by NCC Bank are as under 3. 1. 1.Deposit Products Deposit is the lifeblood of a bank. From the history and origin of the banking system we know that deposit collection is the main function of a bank. Accepting deposits Procedures of collecting deposit procedure are almost same in the entire bank and the b ranches as well. The deposits that are accepted by NCC BANK like other banks may be classified into: †¢Current Deposit †¢Short term deposit †¢Saving Deposit †¢Fixed deposit †¢Special Saving Scheme Deposit (SSS) 3. 1. 2. Lending Products Bank has its own principle about the credit sanctioned or loan to the ustomers, but lending product of a bank or of a branch is equal important to verify the outstanding at the end of any fiscal year. Every bank pays special attention about their lending products, because these products are handed over on a regular basis. †¢Continuous Loan a. Secured Overdraft against Financial Obligation [SOD (FO)] Advances allowed to individual/firms against financial obligation (i. e. lien of FDR/PSP/BSP/Insurance Policy etc. ) and against assignment of works order for execution of contractual works fall under this head. It is a continuous advance facility.By this agreement, the banker allows his customer to overdraft his current acco unt up to his credit limits sanctioned by the bank. The interest is charged on the amount, which he withdraws, not on the sanctioned amount. NCC BANK sanctions SOD against different security. b. Secured Overdraft against Work order/ Real Estate etc [SOD (G)] Advances allowed against assignment of work order or execution of contractual works falls under this head. This advance is generally allowed for a definite period and specific purpose i. e. it is not a continuous credit. It falls under the category â€Å"others†. c. Cash Credit (Hypothecation)Advances allowed to individual /firm for trading as well as wholesale purpose or to industries to meet up the working capital requirements against hypothecation of goods as primary security fall under this type of lending. It is a continuous credit. It is allowed under the category (i) â€Å"Commercial Lending† when the customer is other than a industry and (ii) Working Capital when the customer is an industry. d. Cash Credit (Pledge) Financial accommodations to individual / firm for trading as well as sole-sale purpose or to industries as working capital against pledge of goods as primary security fall under this head on advance.It is also a continuous credit and like the above allowed under the categories (i) â€Å"Commercial Lending† and (ii) â€Å"Working Capital†. e. Export Cash Credit (ECC) Financial accommodation allowed to a party for export of goods falls under this head and is categorized as â€Å"Export Credit,† The advances must be liquidated out of export proceeds within 180 days. †¢Demand Loan Demand Loan: (Forced LIM, BLC, PAD, IBP etc). Overdue period will be accounted from the day following the date of expiry of such loan.? Less than 6 months ? 6 months or more but less than 9 months 9 months or more but less than 12 months ?More than 12 monthsUnclassified Sub-standard Doubtful Bad/loss 1% 20% 50% 100% a. Loan General Short term, Medium term & Long term loans al lowed to individual /firm /industries for a specific purpose but for a definite period and generally repayable by installments fall under this head . this type of lending are mainly allowed to accommodate financing under the category (a) Large & Medium Scale industry and (b) Small & Cottage Industry . Very term financing for (a) Agriculture & (b) Others are also included here . b. Demand Loan Against Ship breakingThis type of loans does not exercise in this branch, but being exercised to another branch that provide advances against ship breaking. c. Payment Against Documents (PAD) Payment made the bank against lodgment of shipping documents of goods imported through L. C. falls under this head. It is an interim advance connected with import and is generally liquidated shortly against payments usually made by the party for retirement of the documents for release of imported goods from the customs authority. It falls under the category â€Å"Commercial Lending† . d. Loan agains t Imported Merchandise (LIM)Advances allowed for retirement of shipping documents and release of goods imported through L. C. taking effective control over the goods by pledge in brokerage house under bank's lock & key fall under this type of advance. This is also a temporary advance connected with import which is known as post-import finance and falls under the category â€Å"Commercial Lending. † e, Loan against Trust Receipt (LTR) Advance allowed for retirement of shipping documents and release of goods imported through L. C. without effective control over the goods delivered to the customer falls under this head.The goods are handed over to the importer under trust with the arrangement that sale proceeds should be deposited to liquidate the advances within a given period. This is also a temporary advance connected with import and known as post-import finance and falls under the category â€Å"Commercial Lending†. g. Packing Credit Advance allowed to a party against specific L. C/firm contract for processing/ packing of goods to be exported falls under this head and is categorized as â€Å"Packing Credit. † The advances must be adjusted from proceeds of the relevant exports within 180 days. i. Foreign Documentary Bills Purchased (FDBP)Payment made to a customer through purchase/ negotiation of a foreign documentary bills falls under this head. This temporary advance is adjustable from the proceeds of the shipping/export documents. Its falls under the category â€Å"Export Credit† j. Local Documentary Bills Purchased (LDBP/IDBP) Payment made against documents representing sell of goods to local export oriented industries which are deemed as exports and which are denominated in Local currency/ foreign currency falls under this head. The bill of exchange is held as the primary security. This temporary liability is adjustable from the proceeds of the bills. . Festival Business Loan. This type of loan are generally sanctioned dependin g on the occasion, more than two festival business loans are generally sanctioned in an annum. †¢Term Loan a. Project Loan NCC BANK offers different conventional credit/investment schemes and the Banking products to their customers. So far loans and advances portfolio includes Project Finance in the form of Term Loan, Real Estate Finance, Secured Overdraft against FDR, different security certificates, working capital in the form of Cash Credit Hypothecation, Import Trade Finance in the form of PAD/LIM/TR etc.NCC BANK considers the loans, which are sanctioned for more than one year as term loan. Under this facility, an enterprise is financed from the starting to its finishing, i. e. from installation to its production b. Transportation Loan Considers the loans, which are sanctioned for the purpose of delivering the goods on to its final destination, its generally used in the form of inland exporting or back to back letter of credit. c. House Building Loan Loans allowed to indivi dual/ enterprise construction of house (residential or commercial) fall under this of advance.The amount is repayable by monthly installment within a specified period, advances are known as Loan (HBL GEN). d. Small Business Loan Short term and long term loans allowed to individual/ firms / industries for a specific purpose but a definite period and generally repayable by the installments fall under this head. These types of lending are mainly allowed to accommodate financing under the categories. Small and Cottage Industries, Very often term financing for agriculture and others are also included here. e. Consumer Finance LoanNCCBL keeping in mind the economic development and helping the fixed income group in fulfilling their demand to upgrade the standard of living will continue before consumer finance scheme for: †¢Household appliances, Furniture & Fixture, Air Conditioner, Fax Machine, motor cycle/Car, Cellular phone, and Other equipment f. Lease Finance NCCBL to keep its con tribution to the growth of national GDP, accelerate the total economic development by infusing the fund in productive sector in more efficient and effective way: diversity its portfolio and satisfy the customers need would go for lease finance for: Setting up of small and cottage industries/Projects, BMRE of existing projects †¢Transports (roads/marine), Medical equipment/surgical/clinical/lab equipment/x-ray machine etc, Construction equipment and other fixed assets of other productive and service oriented ventures. g. Personal Loan To meet emergency financial requirement especially for medical treatment/surgical operation, marriage, admission of children/ educational expenses, maternity the loan facility may be extended. 3. 1. 3. Money transmission Product Carrying cash money is troublesome and risky.That’s why money can be transferred from one place to another through banking channel. This is called remittance. Remittances of funds are one of the most important aspect s of the Commercial Banks in rendering services to its customers. †¢Payment order/security deposit receipt (PO/SDR): This term will be discussed in the overall activities section under remittance department. †¢Demand Draft (DD): This term will also been discussed in the overall activities section under remittance department. †¢Telegraphic Transfer (TT): This is also a common term that in the remittance section as well. . Travelers Cheque Traveler’s Cheque (TC)Issue of TCTC is useful to traveler abroad. Customers can encash the TC in abroad from the drawee bank. TC is alternative to holding cash and it provides better security than holding cash in hand. Buying Of TCIf any unused leaf of TC is surrendered bank buys it from the customer. All payments are made in local currency. Banks generally buy only those TC. 3. 1. 4. International Business Products In banks when we talk of international business products, we refer to the general mechanism by which a bank conve rts currency of one country into that of another.Foreign Exchange Department (FED) is the international department by which a bank or an AD branch transects with other international bank or of a brach. Bangladesh Bank issues license to scheduled banks to deal with foreign exchange. These banks are known as Authorized Dealers. If the branch is authorized dealer in foreign exchange market, it can remit foreign exchange from local country to foreign countries by transacting their international business products. So NCC BANK, Principal branch is an authorized dealer. †¢Letter of Credit (L/C) †¢Back to back Letter of credit (BTB L/C) Buying and selling of foreign exchange †¢Foreign demand draft (FDD) Foreign Demand DraftBank issue Demand Draft in favor of purchaser or any other according to instruction of purchaser. The payee can collect it for the drawee bank in which the Issuing bank of Demand Draft holds its NOSTRO Account. Bank also makes payment on DD drawn on this ba nk by its foreign correspondence bank through the VOSTRO Account. †¢Foreign telegraphic transfer (FTT) Outward remittance covers sales of foreign currency through issuing foreign T. T. Drafts, Travelers Check etc. as well as sell of foreign exchange underL/C and against import bills retired. 3. 1. 5. Special fee earning products NCC Bank considers the special earning product to the different consumer, as it to play a comprehensive role in financing the bank product. Among those following are some issues relate to special fee earning product: †¢Bank guarantee †¢Foreign bank Guarantee (F. B/G) †¢Underwriting †¢Brokerage House and locker Service †¢Issuances of Sanchaya Patra, Wages Earners Development Bond, National Investment Bond, Prize Bond are some special earning fee product of NCC bank. 3. 1. 6. Social Service ProductsNCC Bank Considers several service products by looking at the social point of view, At this competitive edge, banking might have reach ed to preserve its market share and to penetrate new market share through diversification of its product range. Following are the services that are designed to provide for society: †¢Sale of Lottery Tickets for collection of fund for social establishment †¢Collection of Zakat Fund †¢Collection of Haj Deposit 3. 2 CREDIT POLICY & CREDIT OPERATION OF NCCBL Credit policy is a guideline of a financial institution to determine- †¢Who shall get credit (eligibility to get loan) How much to lend (Amount of lending) †¢Why to lend (Purpose of lending) †¢Where to finance (Portfolio Management depending upon profitability and requirement for participation on socio –economic benefits) Credit division of a bank especially acts as a key financial machine to haunt for earning revenue of a bank to achie3ve its ultimate goal for profut maximization with minimal risk maintaining balanced portfolio management. 3. 3 WHERE TO FINANCE (FINANCING ACTIVITIES OF NCC BANK) Financial activities of a bank depend upon its portfolio management of its funds through deposit.Our lending policy would be within the broad policy frame work envisaged above. Bank’s lending activities may be classified into the following broad segments. 1. Trade and Commerce 2. Industries 3. Lease Financing 4. Consumer Financing 5. Real Estate & Civil Construction 6. Agro based 7. Small Business Loans 8. Personal Loans 3. 4 Security Policies The term loans, if any extended by the bank shall gave to be secured by first charge mortgage on the fixed asset coverage leaving a margin of at leas 25% depending upon the viability of the project.Consideration in this regard will vest purely on viability criteria irrespective of bank client-relationship. The determinants in this respect are debt service coverage, debt-equity ratio, and fixed coverage to term loan with a margin of 25-30% minimum. The working capital may be additionally covered by 1st charge mortgage of the fixed asset or by sharing first mortgage ranking PARIPASU with the financial institutions providing term loan. Decision is this regard shall be at the sole discretion of the bank. GENERAL BANKING OF NCC BANK LTD. 4. 0 FUNCTIONS OF NCC BANK LIMITED 4. 1 GENERAL BANKINGGeneral banking department is the heart of all banking activities. This is the busiest and important department of a branch, because funds are mobilized, cash transactions are made; clearing, remittance and accounting activities are done here. Since bank is confined to provide the services everyday, general banking is also known as ‘retail banking’. In NCC BANK LTD Principal Branch, the following departments are under general banking section: A)Account opening section B)Deposit Section C)Cash Section B)Remittance section C)Clearing section D)Accounts section 4. 1. 1 A) ACCOUNT OPENING SECTIONAccount opening is the gateway for clients to enter into business with bank. It is the foundation of banker customer relationshi p. This is one of the most important sections of a branch, because by opening accounts bank mobilizes funds for investment. Various rules and regulations are maintained and various documents are taken while opening an account. A customer can open different types of accounts through this department. Such as: 1. Current Deposit. 2. Savings account. 3. Short notice deposit (SND) >Types of Accounts with Terms and Conditions Current Deposit Current account is purely a demand deposit account.There is no restriction on withdrawing money from the account. It is basically justified when funds are to be collected and money is to be paid at frequent interval. Some important points have been discussed in the project part. Savings Bank Account This deposit is primarily for small-scale savers. Hence, there is a restriction on withdrawals in a month. Heavy withdrawals are permitted only against prior notice. Some Important Points have been discussed in project part. SND (Short Notice Deposit) Acco unt Normally various big companies, organizations, Government Departments keep money in STD account.Frequent withdrawal is discouraged and requires prior notice. The deposit should be kept for at least seven days to get interest. The interest offered for STD is less than that of savings deposit. Interest is calculated based on daily minimum product and paid two times in a year. Interest rate is 6. 00%. Table-01 > Account Opening procedure Step 1The account should be properly introduced by Any one of the following: ? An existing Current Account holder of the Bank. ?Officials of the Bank not below the rank of an Assistant officer. ?A respectable person of the locality well known to the Manager/Sub-Manager of he Branch concerned. Step 2Receiving filled up application in bank’s prescribed form mentioning what type of account is desired to be opened Step 3? The form is filled up by the applicant himself / herself ? Two copies of passport size photographs from individual are taken, in case of firms photographs of all partners are taken ? Applicants must submit required documents ?Application must sign specimen signature sheet and give mandate ? Introducer’s signature and accounts number – verified by legal officer Step 4Authorized Officer accepts the applicationStep 5Minimum balance is deposited – only cash is accepted Step 6Account is opened and a Cheques book and pay-in-slip book is given >Documents required for opening account ? Individual / Joint Account 1. Introduction of the account. 2. Two photographs of the signatories duly attested by the introducer. 3. Identity (copy of passport). 4. Joint Declaration Form (For joint a/c only). 5. Employee’s Certificate (in case of service holder). ? Partnership account 1. Introduction of the account. 2. Two photographs of the signatories duly attested by the introducer. 3.Partnership letter duly signed by all partners (Sign should be similar as stated in Partnership Deed). 4. Partnership Deed duly certified by Notary public. 5. Registration (If any). 6. Updated Trade license. ? Proprietorship account 1. Introduction of the account. 2. Two photographs of the signatories duly attested by the introducer. 3. Valid copy of Trade License. 4. Rubber stamp. 5. TIN number certificate. 6. Identity (Copy of passport). 7. Permission letter from DC/ Magistrate (in case of newspaper) ? Limited company 1. Introduction of the account. 2.Two photographs of the signatories duly attested by the Introducer. 3. Valid copy of Trade License. 4. Board resolution of opening A/C duly certified by the Chairman/Managing Director. 5. Certificate of Incorporation. 6. Certificate of Commencement (In case of Public limited company). 7. Certified (joint stock) true copy of the Memorandum and Article of Association of the Company duly attested by Chairman or Managing Director. 8. List of directors along with designation & specimen signature. 9. Latest certified copy of Form – xii (to be cert ified by register of joint stock companies) (In case of Directorship change). 0. Rubber Stamp (Seal with designation of each person) 11. Certificate of registration (In case of Insurance Company – Obtained from department of Insurance from the Peoples Republic of BD). ? Club / societies account 1. Introduction of the account. 2. Two photographs of the Signatories duly attested by the introducer. 3. Board Resolution for Opening A/C duly certified by President/ Secretary. 4. List of Existing Managing Committee. 5. Registration (if any). 6. Rubber Stamp. 7. Permission letter from Bureau of N. G. O. (In case of N. G. O. A/C). >Closing of an accountThe closing of an account may happen, ?If the customer is desirous to close the account, ?If the NCC BANK finds that the account is inoperative for a long duration. ?If the court of NCC BANK issues garnishee order. A customer may close his/her account any time by submitting an application to the branch. The customer should be asked to d raw the final check for the amount standing to the credit of his/her account less the amount of closing an other incidental charge and surrender the unused check leaves. The account should be debited for the account closing charge etc. nd the authorized officer of the bank should destroy unused check. In case of joint account the application for closing the account should be signed by the joint account holder. The fee for closing of an account is Tk. 50. 4. 1. 2 B) LOCAL REMITTANCE Carrying cash money is troublesome and risky. That’s why money can be transferred from one place to another through banking channel. This is called remittance. Remittances of funds are one of the most important aspects of the Commercial Banks in rendering services to its customers. Types of remittance: ?Between banks and non banks customer Between banks in the same country ?Between banks in the different centers. ?Between banks and central bank in the same country ?Between central bank of different customers. The main instruments used by the NCC BANK of remittance of funds are ?Payment order (PO) ?Demand Draft (DD) ?Telegraphic Transfer (TT) So the basic three types of local remittances are discussed below: Table- 02 PointsPay OrderDemand DraftTT ExplanationPay Order gives the payee the right to claim payment from the issuing bankDemand Draft is an order of issuing bank on another branch of the same bank to pay specified sum of money to payee on demand.Issuing branch requests another branch to pay specified money to the specific payee on demand by Telegraph /Telephone Payment fromPayment from issuing branch onlyPayment from ordered branch Payment from ordered branch Generally used to Remit fund Within the clearinghouse area of issuing branch. Outside the clearinghouse area of issuing branch. Payee can also be the purchaser. Anywhere in the country Payment Process of the paying bankPayment is made through clearing 1. Confirm that the DD is not forged one. 2. Confirm with sent advice 3. Check the ‘Test Code’ 4. Make payment1.Confirm issuing branch 2. Confirm Payee A/C 3. Confirm amount 4. Make payment 5. Receive advice Charge Only commissionCommission + telex chargeCommission + Telephone Term Deposit Receipt The Local Remittance section of NCC BANK Motijheel Branch also issues TDR. They are also known as time deposit or time liabilities. These are deposits, which are made with the bank for a fixed period, specified in advance. The bank need not maintain cash reserves against these deposits and therefore, the bank offers higher of interest on such deposits. †¢Term Deposits: These rates are not negotiable.In this table we can find out the percentage that is given by the bank for specific period of time to the customer. 4. 1. 3 CLEARING SECTION The amount of Cheques, Pay Order (P. O), and Demand Draft (D. D) Collection from other banks on behalf of its customer is a basic function of a Clearing Department. †¢Clearing: Clearing is a sys tem by which a bank can collect customers fund from one bank to another through clearing house. †¢Clearing House: Clearing House is a place where the representatives of different banks get together to receive and deliver Cheques with another banks. Normally, Bangladesh Bank performs the Clearing House in Dhaka, Chittagong, Rajshahi, Khulna & Bogra. Where there is no branch of Bangladesh Bank, Sonali bank arranges this function. †¢Member of Clearing House: NCC BANK limited is a scheduled Bank. According to the Article 37(2) of Bangladesh Bank Order, 1972, the banks which are the member of the clearinghouse are called as Scheduled Banks. The scheduled banks clear the cheque drawn upon one another through the clearinghouse. †¢Types of ClearingA)Outward Clearing: When the Branches of a Bank receive cheques from its customers drawn on the other Banks within the local clearing zone for collection through Clearing House, it is Outward Clearing. B)Inward Clearing: When the Ba nks receive cheque drawn on them from other Banks in the Clearing House, it is Inward Clearing. †¢Who will deposit cheque for Clearing: Only the regular customers i. e. who have Savings, Current, STD & Loan Account in the bank can deposit cheque for collection of fund through clearing house. †¢Responsibility of the concerned officer for the Clearing Cheque and being work with department, following are the issues )Crossing of the cheque. 2)(Computer) posting of the cheque. 3)Clearing seal & proper endorsement of the cheque. 4)Separation of cheque from deposit slip. 5)Sorting of cheque 1st bank wise and then on branch wise. 6)Computer print 1st branch wise & then bank wise. 7)Preparation of 1st Clearing House computer validation sheet. 8)Examine computer validation sheet with the deposit slip to justify the computer posting 9) Copy of computer posting in the floppy disk. †¢Bills Collection: In modern banking the mechanism has become complex as far as smooth transaction and safety is concerned.Customer does pay and receive bill from their counterpart as a result of transaction. Commercial bank’s duty is to collect bills on behalf of their customer. Types of Bills for Collection i. Outward Bills for Collection (OBC). ii. Inward Bills for Collection (IBC). What is OBC? OBC means Outward Bills for Collection . OBC exists with different branches of different banks outside the local clearinghouse. Normally two types of OBC: 1)OBC with different branches of other banks 2)OBC with different branches of the same bank Procedure of OBC: 1)Entry in the OBC register. 2)Put OBC number in the cheque. ) â€Å"Crossing seal† on the left corner of the cheque & â€Å"payees account† will be credited on realization â€Å"seal† on the back of the cheque with signature of the concerned officer. 4)Dispatch the OBC cheque with forwarding. 5)Reserve the photocopy of the cheque, carbon copy of the forwarding and deposit slip of the cheque in the OBC file. Inward bills for collection (IBC) When the banks collect bills as an agent of the collecting branch, the system is known as IBC. In this case the bank will work as an agent of the collection bank. The branch receives a forwarding letter and the bill. Procedure of IBC 1.IBC against OBC: To receive the OBC cheque first we have to give entry in the IBC Register . The IBC number should put on the forwarding of the OBC with date. 2. Deposit of OBC amount: OBC cheque amount is put into the â€Å"sundry deposit-sundry Creditors account†, prepare debit & credit voucher of it. If the OBC cheque is honored, send credit advice (IBCA) with signature & advice number of the concern branch for the OBC amount. 3. If the OBC cheque is dishonored, the concerned branch is informed about it. 4. Again place in the clearing house or send the OBC cheque with Return Memo to the issuing branch according to their information. . 1. 4 D) ACCOUNTS SECTION Accounts Department is called as the n erve Centre of the bank. In banking business, transactions are done every day and these transactions are to be recorded properly and systematically as the banks deal with the depositors’ money. . Improper recording of transactions will lead to the mismatch in the debit side and in the credit side. To avoid these mishaps, the bank provides a separate department; whose function is to check the mistakes in passing vouchers or wrong entries or fraud or forgery.This department is called as Accounts Department. If any discrepancy arises regarding any transaction this department report to the concerned department. Besides these, the branch has to prepare some internal statements as well as some statutory statements, which are to be submitted to the Central Bank and the Head Office. This department prepares all these statements. Workings of this department: †¢Packing of the correct vouchers according to the debit voucher and the credit voucher †¢ Recording the transactions in the cashbook. Recording the transactions in general and subsidiary ledger †¢Preparing the daily position of the branch comprising of deposit and cash †¢Preparing the daily Statement of Affairs showing all the assets and liability of the branch as per General Ledger and Subsidiary Ledger separately †¢Making payment of all the expenses of the branch †¢Recording inters branch fund transfer and providing accounting treatment in this regard. †¢Preparing the monthly salary statements for the employees †¢Preparing the weekly position for the branch which is sent to the Head Office to maintain Cash Reserve Requirement (C.R. R) †¢Preparing the monthly position for the branch which is sent to the Head Office to maintain Statutory Liquidity Requirement (S. L. R) †¢Make charges for different types of duties †¢Preparing the budget for the branch by fixing the target regarding profit and deposit so as to take necessary steps to generate and mobilize deposit. †¢Checking of Transaction List †¢Recording of the vouchers in the Voucher Register 4. 2 E. FOREIGN EXCHANGE Foreign exchange is the means and methods by which rights to wealth in a country’s currency are converted into rights to wealth in another country’s currency.In banks when we talk of foreign exchange, we refer to the general mechanism by which a bank converts currency of one country into that of another. Foreign Exchange Department (FED) is the international department Bangladesh Bank issues license to scheduled banks to deal with foreign exchange. These banks are known as Authorized Dealers. If the branch is authorized dealer in foreign exchange market, it can remit foreign exchange from local country to foreign countries. So NCC BANK, Principal branch is an authorized dealer. There are three kinds of foreign exchange transaction:A)Import B)Export C)Remittance. 4. 2. 1 A) IMPORT To import, a person should be competent to be an importerâ€℠¢. According to Import and Export Control Act, 1950, the Office of Chief Controller of Import and Export provides the registration (IRC) to the importer. In an international business environment, buyers and sellers are generally unknown to each other. So seller of goods always seeks security for the payment of his exported goods. Bank gives export guarantee that it will pay for the goods on behalf of the buyer if the buyer does not pay. This guarantee is called Letter of Credit.Thus the contract between importer and exporter is given a legal shape by the banker by ‘Letter of Credit’. 4. 2. 1. 1>Letter of Credit †¢ Definition A letter of credit is a letter issued by a bank (know as the opening or the issuing bank) at the instance of its customer (known as the opener) addressed to a person (beneficiary) undertaking that the bills drawn by the beneficiary will be duly honored by it (opening bank) provided certain conditions mentioned in the letter gave been complied w ith. Table- 03 ImporterWho applies for L/C Issuing BankIt is the bank which opens/issues a L/C on behalf of the importer.Confirming Bank It is the bank, which adds its confirmation to the credit and it, is done at the request of issuing bank. Confirming bank may or may not be advising bank. Advising or Notifying Bank It is the bank through which the L/C is advised to the exporters. This bank is actually situated in exporter’s country. It may also assume the role of confirming and / or negotiating bank depending upon the condition of the credit. Negotiating Bank It is the bank, which negotiates the bill and pays the amount of the beneficiary. The advising bank and the negotiating bank may or may not be the same.Sometimes it can also be confirming bank. Accepting BankIt is the bank on which the bill will be drawn (as per condition of the credit). Usually it is the issuing bank. Reimbursing BankIt is the bank, which would reimburse the negotiating bank after getting payment â₠¬â€œ instructions from issuing bank. 4. 2. 1. 3 †¢ Steps for import L/C Operation – 8 steps operation Step 1 – Registration with CCI&E †¢For engaging in international trade, every trader must be first registered with the Chief Controller of Import and Export. †¢By paying specified registration fees to the CCI&E. he trader will get IRC/ERC (Import/Export Registration Certificate), to open L/C with bank, this IRC is must. Step 2 – Determination terms of credit †¢The terms of the letter of credit are depending upon the contract between the importer and exporter. The terms of the credit specify the amount of credit, name and address of the beneficiary and opener, tenor of the bill of exchange, period and mode of shipment and of destination, nature of credit, expiry date, name and number of sets of shipping documents etc. Step 3 – Proposal for Opening of L/C To have an import LC limit an importer submits an application to department to NCC BANK.The proposal contains the following particulars: †¢Full particulars of the bank account †¢Nature of business †¢Required amount of limit †¢Payment terms and conditions †¢Goods to be imported †¢Offered security †¢Repayment schedule Step 4 – Application by importer to the banker to open letter of credit †¢For opening L/C, the importer is required to fill up a prescribed application form provided by the banker along with the following documents: Table- 04 1. L/C Application form 7. Authority to debit account 2. Filled up LCA form 8. Filled up amendment request Form 3. Demand Promissory Note 9. IMP form 4. ro-forma invoice 10. Insurance cover note and money receipt. 5. Tax Identification number 11. Membership certificate 6. Import registration certificate 12. Rate fluctuation undertaking Step 5 – Opening of L/C by the bank for the opener: †¢Taking filled up application form from the importer. †¢Collects credit report of exporter from exporter’s country through his foreign correspondence there. †¢Opening bank then issues credit by air mail/TELEX/SWIFT followed by L/C advice as asked by the opener through his foreign correspondent or branch as the case may be, at the place of beneficiary.The advising bank advises the L/C to the beneficiary on his own form where it is addressed to him or merely hand over the original L/C to the beneficiary if it is so addressed. Step 6 – Shipment of goods and lodgment of documents by exporter: †¢Then exporter ships the goods to the destination of the importer country. †¢Sends the documents to the L/C opening bank through his negotiating bank. Generally the following documents are sent to the Opening Banker with L/C: Table- 05 1. Bill of Exchange 6. Packing List 2. Bill of Lading 7. Advice Details of Shipment 3. Commercial Invoice 8. Pre-shipment Inspection Certificate . Certificate of Origin 9. Vessel Particular 5. A certificate stating t hat each packet contains the description of goods over the packet. 10. Shipment Certificate Step 7 – Lodgment of Documents by the opening Bank from the negotiating bank: After receiving the documents, the opening banker scrutinizes the documents. If any discrepancy found, it informs the importer. If importer accepts the fault, then opening bankers call importer retiring the document. At this time many thing can happen. These are indicated in the following: †¢Discrepancy found but the importer accepts – no problem occurs in lodgment. Discrepancy found and importer not agreed to accept – In this case, importer protest and send back all the documents to the exporter and request his to make in the specified manner. Here banker is not bound to pay because the documents send by exporter is not in accordance with the terms of L/C. †¢Documents are OK but importer is willing to retire the documents – In this case bank is obligated to pay the price of exp orted goods. Since importer did not pay for bill of exchange, this payment by bank is one kind of credit to the importer and this credit in banking is known as PAD. Everything is O. K. but importer fails to clear goods from the port and request bank to clear – In this case banks clear the goods and takes delivery of the same by paying customs duty and sales tax etc. So, this expenditure is debited to the importer’s account and in banking it is called LIM. Step 8 – Retirement The importer receives the intimation and gives necessary instruction to the bank for retirement of the import bills or for the disposal of the shipping document to clear the imported goods from the customs authority.The importer may instruct the bank to retire the documents by debiting his account with the bank or may ask for LTR (Loan against Trust Receipt). 4. 2. 1. 4 †¢ Accounting Procedure in case of L/C Opening When the officer thinks fit the application to open a L/C, giving the f ollowing entries- creates the following charges- Table- 06 ParticularsDebit/ CreditCharges in Taka Customer’s A/CDebit L/C Margin A/CCredit Commission A/C on L/CCredit50% VATCredit15% on commission SWIFT ChargeCredit3000/= DatamaxCredit1000/= StampCredit150/= PostageCredit300/= DHL/CourierCredit1500 4. 2. 1. †¢ Amendment of L/C After opening of L/C some time’s alteration to the original terms and conditions become necessary. These amendments involve changes in a. Unit price b. Extension of validity o the L/C c. Documentary requirements etc. Such amendments can be affected only if all the concerned parties agree i. e. the beneficiary, the importer, the issuing bank and the advising bank. For any amendment the importer must request the issuing bank in writing duly supported by revised indent/ Proforma invoice. The issuing bank then advises the required amendment to the advising bank.L/C amendment commission including postage is charged to the clients A/C. 4. 2. 1. 6 >Loan against Trust Receipts (LTR) †¢ Advance against a Trust Receipt obtained from the Customers are allowed to only first class tested parties when the documents covering an import shipment or other goods pledged to the Bank as security are given without payment. However, for such advances prior permission/sanction from Head Office must be obtained. †¢ The customer holds the goods or their sale-proceeds in trust for the Bank, till such time, the loan allowed against the Trust Receipts is fully paid off. The Trust Receipt is a document that creates the Banker’s lien on the goods and practically amounts to hypothecation of the proceeds of sale in discharge of the lien. 4. 2. 1. 7>Loan Against Imported Merchandise (LIM) Advance (Loan) against the security of merchandise imported through the Bank may be allowed either on pledge or hypothecation of goods, retaining margin prescribed on their Landed Cost, depending on their categories and Credit Restriction imposed by the Bangladesh Bank. Bank shall also obtain a letter of undertaking and indemnity from the parties, before getting the goods cleared through LIM Account. 4. 2. 1. >Payment Procedure of Import Documents This is the most sensitive task of the Import Department. The officials have to be very much careful while making payment. This task constitutes the following: †¢ Date of Payment Usually payment is made within seven days after the documents have been received. If the payment is become deferred, the negotiating bank may claim interest for making delay. †¢ Preparing Sale Memo A sale memo is made at B. C rate to the customer. As the T. T & O. D rate is paid to the ID, the difference between these two rates is exchange trading. Finally, an Inter Branch Exchange Trading Credit Advice is sent to ID. Requisition for the Foreign Currency For arranging necessary fund for payment, a requisition is sent to the International Department. †¢ Transmission of Message Message is transmi tted to the correspondent bank ensuring that payment is being made. 4. 3. 2 B) EXPORT 4. 3. 2. 1>Understanding The goods and services sold by Bangladesh to foreign households, businessmen and Government are called export. The export trade of the country is regulated by the Imports and Exports (control) Act, 1950. There are a number of formalities, which an exporter has to fulfill before and after shipment of goods.The exports from Bangladesh are subject to export trade control exercised by the Ministry Of Commerce through Chief Controller of Imports and Exports (CCI & E). No exporter is allowed to export any commodity permissible for export from Bangladesh unless he is registered with CCI & E and holds valid Export Registration Certificate (ERC). The ERC is required to be renewed every year. The ERC number is to be incorporated on EXP forms and other documents connected with exports. 4. 3. 2. 2 The formalities and procedure of Export L/C 1. Obtaining exports LC: To get export LC for m exporter issued by the importer. . Submission of export documents: Exporter has to submit all necessary documents to the collecting bank after shipping of goods 3. Checking of export documents: After getting the documents banker used to check the documents as per LC terms 4. Negotiation of export documents: If the bank accepts the document and pays the value draft to the exporter and forward the document to issuing bank that is called a negotiating bank. If the bank does buy the LC then the bank normally acts as collecting bank. 5. Realization of proceeds: This is the period when the issuing bank has realized the payment. 6.Reporting to the Bangladesh bank: As per instruction by Bangladesh bank the bank has to report to respective department of Bangladesh bank by mentioning latest payment. 7. Issue to proceeds realization certificate (PRC): Bank has to issue proceed realization certificate of export LC to the supplier / exporter for getting cash assistance 4. 3. 2. 4>Back-To-Back L/C It is simply issued to the clients against an import L/C. Back-to-Back mechanism involves two separate L/C. One is master Export L/C and another is Back-to-Back L/C. On the strength of Master Export L/C bank issues bank to Back L/C.Back-to-Back L/C is commonly known as Buying L/C. On the contrary, Master Export L/C is known as Selling L/C. †¢ 4. 3. 2. 5 Features of Back to Back L/C †¢An Import L/C to procure goods /raw materials for further processing. †¢It is opened based on Export L/C. †¢It is a kind of Export Finance. †¢Export L/C is at Sight but back to Back L/C is at Usance. †¢No margin is required to open Back to back L/C †¢Application is registered with CCI&E †¢Applicant has bonded warehouse license. †¢L/C value shall not exceed the admissible percentage of net FOB value of relative Master L/C. †¢Usance period will be up to 180 days. The import L/C is opened for 75% of the value of Export L/C. †¢Here L/C issued agains t the lien of export L/C. †¢Arrangements are such that export L/C matures first then out of this export profit, import L/C is paid out. †¢ 3. 3. 2. 6 Documents Required for Opening a Back-to-back L/C In NCC BANK Principal Branch, following papers/ documents are required for opening a back-to-back L/C- 1. Master L/C 2. Valid Import Registration Certificate (IRC) and Export Registration Certificate (ERC) 3. L/C Application and LCAF duly filled in and signed 4. Proforma Invoice or Indent 5.Insurance Cover Note with money receipt 6. IMP Form duly signed In addition to the above documents, the followings are also required to export oriented garment industries while requesting for opening a back-to-back L/C – 1. Textile Permission 2. Valid Bonded Warehouse License 3. Quota Allocation Letter issued by the Export Promotion Bureau (EPB) in favor of the applicant for quota items. †¢ Payment of back to back l/c: In case back to back as 60-90-120-180 days of maturity perio d, deferred payment is made. Payment is given after realizing export proceeds from the L/C issuing bank. 4. 3. 2. >Negotiation of Export Documents Negotiation stands for payment of value to the exporter against the documents stipulated in the LC. If documents are in order, NCC BANK purchases (negotiates) the same on the basis of banker- customer relationship. This is known as Foreign Documentary Bill Purchase (FDBP). If the bank is not satisfied with the documents submitted to NCC BANK gives the exporter reasonable time to remove the discrepancies or sends the documents to L/C opening bank for collection. This is known as Foreign Documentary Bill for Collection (FDBC) entered into the Foreign bill Purchased (F.B. P) register. The documents are sent to the L/C opening †¢ Presentation of export documents for negotiation/Purchase: After shipment, exporter submits the following documents to NCC BANK for negotiation. †¢Bill of exchange †¢Bill of Lading †¢Invoice †¢Insurance Policy/Certificate †¢Certificate of Origin †¢Inspection Certificate †¢Consular Invoice †¢Packing List