Market Analysis of Leasing Industry in Sri Lanka Essay Example

Market Analysis of Leasing Industry in Sri Lanka Essay This situation has changed drastically during the latter part of 2012. With these changes many banks and leasing companies experienced a slowdown in their leasing business activities Also Neffs have faced a fears competition from the Laces due to the rate differences In the assignment the author will analyze the current market situation and identify current issues and challenges faced by the Industry as a whole and by he selected entity Citizen Development Financial Services Pl COB. PESTLE analysis is conducted to analyze the environment and total market situation and SOOT was carried out to identify the strengths and opportunities to eliminate weaknesses. By application of marketing models, tool theories the author has arrived at a marketing strategy to go forward in next two years and also remedies for the challenges and problems. An actual Marketing budget is proposed along with actions and time lines for the implementation of the above. 1. Situation Analysis 1. 1 Sir Lankan Financial Industry Overview Characteristic of this island nation which has always surprised economists with its resilience and dynamic kinetics despite challenges that have impacted not only the region and the world, but the country itself, Sir Lankan once again posted strong economic growth, posted at 6. 5% at end 2012. This is remarkable given that this growth, though slightly reduced from the original projection still remains above both regional and global growth paradigms. The Sir Lankan banking and financial services industry is vibrant and market driven and hence as a consumer you are at an advantage. We will write a custom essay sample on Market Analysis of Leasing Industry in Sri Lanka specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Market Analysis of Leasing Industry in Sri Lanka specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Market Analysis of Leasing Industry in Sri Lanka specifically for you FOR ONLY $16.38 $13.9/page Hire Writer There are around 0 institutions, including commercial banks, licensed specialized banks (savings banks and development banks) and licensed finance companies. When we look at the statistics of the Central Bank we can clearly see the trend of increasing revenue and asset bases of non banking financial Institutes. Our target company which is Citizen Development Financial Services hereinafter refer as CDC , belongs to the Non Banking Financial Institutes and offers Leasing as their main product in product portfolio. Though there were some hiccup and fluctuation in global and Sir Lankan economy what we can e it Financial industry as a whole is not affected very much. Collapse of Ceylon group and its financial institutes made an effect but couldnt withhold the progress of the sector. 1. 2 Company Overview Citizen Development Business Finance CDC one of the Sir Lands fastest growing financial institution ( Sixth place in the NAB sector) , offering wide range of financial solutions to its customers through their Island wide branch network. . 2. 1 Vision of the company To be the financial power house that will foster entrepreneurial innovation and workmanship towards building up our nations economy to make sustained gains in living standards of Sir Lankan For the last few years after coming out of the Ceylon group umbrella as an Independent financial institute they have grown faster than the industry in terms of top line and bottom line. Branch network has expanded to 55 and also north and east aft er the end of ethnic conflict in Sir Lankan. Also for the past few years company is achieving its key performance indicators through Also they have come up in the corporate arena in Sir Lankan and recognized as one of the most valued brand in Sir Lankan for consecutive years. ( By LAM ) Source : Lankan Monthly Digest ( LAM ) Courtesy : Media Services (Pit) Ltd 1. 2. 2 External Environment- PESTLE Analysis It gives a birds eye view of the whole environment from many different angles that one wants to check and keep a track of while contemplating on a marketing plan. During the PESTLE analysis we are considering the macro environment in terms of Political, Economical, Social, Technical, Legal Environmental frameworks. Economical Interest rate movement, inflation rate movement and exchange rate movement have a considerable impact Central Bank tightened its monetary logic stance by raising policy interest rates ( raise of market interest rates due to this ) and imposing a ceiling on rupee lending. Possibility of further monetary-policy tightening will be heightened by CBS. Inflation has continued to remain at single digit levels for over 3 years declining on a on-year basis to a very low level of 2. Per cent in February 201 2 due to cautious monetary and fiscal policy CBS had largely ceased its intervention in the foreign-exchange market. This had allowed the rupee a certain degree of flexibility to flow. The relaxation of exchange-rate controls had led to appreciation for the rupee in recent past stabilization afterwards. The volatile global econ omic landscape Political Nobles, faced changes in taxation policy and some inconsistencies The increase in tariffs on imported vehicles impacted consumer purchasing behavior considerably, led to an emergence of difficulties in achieving lending targets. Prolific increase in the importation of motor vehicles, coupled with high demand for fuel, rising carbon dioxide emissions and traffic congestion, saw the Government strategies to reduce the encumbrances on its import payments, infrastructure and carbon footprint. This led to a revision on the excise duty on motor vehicles to lessen the burden. Legal The supervisory and regulatory framework continued to strengthen with several diktats issued for both banks and Elfs. Sells were subjected to assessment of fitness and propriety of Directors and key management personnel, as well as changes to definitions in the compilation of key indicators A panel of external auditors was appointed to conduct external audits of Nobles. Financial reporting is slated to improve further with the entirety of the financial sector becoming FIRS compliant, believed to be a mounding step in promoting greater harmonistic with international regulatory standards, which in turn prompts increased resilience. Environmental COBs prime business segment is in leasing and in that, being in vehicles. With vehicles being a primary source of carbon dioxide emissions, Companys responsibility therefore is to reduce these emissions and work toward minimizing the harmful impacts. Green initiatives by customers, business partners communities resulted better management practices via paper recycling, saving of electricity and water and even appreciation of Sir Lands unique wetlands. Technological Given the long term partnership we mooted with Commercial Bank Of Sir Lankan where the Command ATM network can be accessed by CDC customers First N.B. to have a fully operational Core Banking Solution networking entire operations Social Pressure from the socio-cultural variables prevalent in a multi-dimensional country like Sir Lankan, CDC has to focused on social variables . One such is the diversification into Islamic Finance which functions according to Shari ah law, based on parameters prescribed by internationally accepted Shari ah scholars. 2. Product Category Review Total leasing category in the country is growing at a steady rate and two major sectors Licensed Banking N.B.. As a total the whole industry has grown significantly over the past years. The following graph show the growth in industry, When you consider the total credit and loan facilities leasing plays a significant portion of that as a whole ( Including Banks Nabs ) 2. 1 CDC Leasing COBs prime business segment is in leasing and in majority is comprised with the vehicle leasing. Throughout the 1 7 years journey of the company their main product officer is being Leasing. Product portfolio of COB The above graph show the significance in the leasing products for the company which the revenue contribution is more than 50%. 2. Distribution profile CDC Distribution Chain Nell mainly comprises of four components a. Branches b. Area development offices c. Dealer Network d. Service Center above channels are catering to customers and their requirement and we have seen a rapid growth in distribution channels in last few years 2. Pricing overview , Offering Packaging Segmental Pricing Approach is being deployed through the product line. Even though the main product being CDC leasing there are sub products and rand for different segments have offered. Following table shows the offering portfolio. Product Category Key Brands Offering Leasing CDC Leasing This is the main brand of CDC when it comes to Leasing COB Batty Lease COB Mini Truck Lease These two brands to focus on providing lending to small truck segment Small Car Lease Brand which facilitate small cars below 1 000 C engine capacity CDC -AWE Lease This brand is focusing on attracting three wheeler 3. Competitive Analysis The leasing products were dominated by the Nabs in early year and then Commercial Banks started leasing as a product offer in their portfolio with increase of demand for motor vehicle leasing sector in the country. Imports of the vehicles have grown significantly year by year in each segments personal, Transportation, Trade land vehicles, motor Cycles T-Wheelers. Bank have a competitive advantage over the leasing rates since they can offer l ow rates compared to Neffs . The reason behind this is cost of funds for the banks are low where as Nabs cost of funds high since its mainly depending on the fixed deposits. 3. 1 Major Competitors in Leasing Sector in Sir Lankan Commercial Banks Non Banking financial Institutions Commercial Bank Pl Bank Of Ceylon Peoples Bank Wheaton National Bank Sympathy Bank Sealant bank Peoples Leasing Financial Services ( PL ) nana Iris Leasing Company Limited ( LOC) LB finance COB Commercial Credit Leasing Within the Nabs , CDC share a 4% of market share in leasing category where there is a huge potential for expansion and intrude in to competitor markets. . 1. 1 Competitor Pricing Overall pricing range of N.B. remains same and but different types of strategies used to attract customers a. Extended Durations Initially almost all institutions offered a duration of 4-5 years leasing term has increased up to 7 years to reduce the monthly installment payment. B. Structured Leasing Leasing is structured by SSH fitting the bulk paying amount to different stages Of the payment structure. E. G. Initial payment of 1 Million to be pay after end of the second year .

Week One Essay Essays

Week One Essay Essays Week One Essay Essay Week One Essay Essay â€Å"Five O’Clock Shadow† – Week One Poem Explication In Sir John Betjeman’s poem â€Å"Five O’Clock Shadow,† the idea that the shadow of death physically and emotionally isolates and enervates those who dwell within it is conveyed through the utilization of metaphor and carefully selected words and phrases in the development of a tone and tonal shift, in addition to imagery. The title of the poem is the major metaphor of the piece; after the identification of who the speaker is (a dying man), the title means much more than the stubble of beard so-called â€Å"five o’clock shadow. The wording of several phrases aids in the development of a detached tone where the speaker does not speak in the first person singular; this tone then shifts in the last line to be much more dismal, with the first and only occurrence of an â€Å"I† from the speaker’s perspective. The development of imagery is largely i ntertwined with the development of tone: when there is an apathetic or detached tone, the imagery is seemingly apathetic as well. There is a metaphorical meaning to the title of the piece: when the shadow of death passes over those who are dying (which is at five o’clock for the speaker). The shadow of death is characterized by the feelings this man feels at a certain time of day: he feels that he can no longer suffer through the physical pain, struggling with inevitable death; he feels weaker, and that he â€Å"can struggle less strongly† (3); he feels betrayed by those who are supposed to support him in his final days; he feels a â€Å"lonely terror† (16) only intensify. At this time of day, he feels his emotional and physical pain most acutely, as the solitude presses in on him. He recognizes that his isolation and misery become unbearable then, and that the shadow enveloping him is that of death, severing him emotionally from those around him. This shadow falls on him, and he feels just enough more isolated to push him closer to giving up. The propinquity of death weakens him, and so he detaches from his self in order to numb the pain for as long as possible. The tone of the speaker develops the theme of the poem by conveying how these moribund men (specifically the speaker) feel about their final days being lived in isolation and pain. The roundabout wording of phrases such as, â€Å"When he who struggles can struggle less strongly†¦Ã¢â‚¬  (3) relates a feeling of detachment from the self that the speaker experiences. Other indications of this detachment are the occurrences of â€Å"we† instead of the speaker speaking from his own perspective and vague descriptions of the happenings around him: â€Å"A haze of thunder hangs on the hospital rose-beds/ A doctor’s foursome out of the links is played† (5-6). The tone of these verses is that of apathy; he is indifferent about and isolated from the world that is just outside of his self; if he were actually a part of his self at that time, he might just give up due to the agony of being isolated so completely from everything and everyone. The imagery of this composition follows along in mood with the tone; where the tone is apathetic and detached, the imagery is that of indifferent surveillance: he watches men (including his self) struggle less against the pain, resign, ruefully, to death, and suffer emotional isolation and lonely terror. He looks on as nonempathic people surround him and ignore his pain: the doctors, who are completing their rounds, do not try to rescue him from the terrible isolation his terminal condition has left him in; the nurse/nun/Sister is disregarding her patients’ emotional and physical suffering, and instead is â€Å"safe in her sitting room†¦ [and] is putting her feet up† (7); and the â€Å"loving relations† (9) only come to visit physically, yet remain emotionally distant, and who think â€Å"’Well, we’ve done what we can. It can’t be long til the end’† (12). This imagery creates a depressing mood and evokes an emotional response, due to the isolation that it conveys; the speaker is in emotional and physical misery, and yet no one even attempts to attenuate his suffering by connecting with him, bringing him out of the dark of the shadow. The emotion that the isolation evokes establishes abhorrence in the reader toward the idea that a quiet, â€Å"peaceful† death on a hospital bed is the most desirable way to pass on; instead, the dreadful isolation and detachment establish the idea that a slow death, while cut off emotionally from others, is one of the most terrible fates imaginable. This is one of the most depressing poems that I have ever read; the depiction of emotional isolation in the poem has changed how I view isolation. I have never given a thought to how emotionally cut off people in nursing homes or their sick beds must be before; I did know that they would be lonely, but I never thought how deep that lonesomeness could cut. This poem gave me a new perspective on how devastating isolation can be, in someone who may not even seem that isolated at first (with other patients around, doctors checking up on them, nurses â€Å"watching† over them, and family members coming to visit).

Restrictions on Overseas Trade in Turkey Case Study

Restrictions on Overseas Trade in Turkey - Case Study Example Turkey being a natural bridge between the old continents of Asia, Africa and Europe, has a vast scope of overseas trading. But still the government of Turkey plonk restrictions on overseas trade. (Fletcher, 2006) The investment climate of Turkey, that forms barriers for any outsider, whether large or small, domestic or foreign, cause problems that affect all economic sectors of the country, particularly the telecommunication sector. The major problems which agitate Turkey's economy are shortage of well functioning capital market, limited expertise in banking system and technologically oriented companies, partial regulatory process that always intend to restrain new companies and buoy up existing companies, specially those belonging to prominent business families of the country. Companies in Turkey both the private enterprises and public enterprises specially, suffer from corruption in various levels of the organizational hierarchy. The judicial system of the country, up to some extent, can be suspected to be influenced by external political and commercial mal forces. Growing personal and political relationship between government officials and business representatives form the basis of corruption, which appears to be the most serious problem biting up the economy of the country. Barriers in investment of the private sectors and the foreign companies in the markets in Turkey is also a matter of concern. The Bilateral Investment Treaty (BIT) between Turkey and United States of America came into force in May 1990. Due to liberal investment regime of turkey, foreign investors are provided with national treatment in the country. In Turkey companies possessing foreign capital are treated as local companies. Regardless of nationality, private sector investments are always hindered by the facts like political and economical uncertainty, lack of judicial stability, and unwarranted bureaucracy, and high tax rate, unpredictable changes in legal and regulatory environment, fragile framework for corporate governance etc. All areas except finance and petroleum sectors are fully open to foreign participation. Though the petroleum and financial areas are open to the private sectors and foreign investors in Turkey, Special permission is required for the foreign companies to establish business in these sectors. (Lamb, 2006) Foreign share holders have restricted equity participation ratio, such as near about twenty percent in Broadcasting industry, forty nine percent in aviation, marine transportation and value added telecommunication services industries. Sometimes arbitrary legislative action under cut the rationale for the investments of the foreign companies committed to the Turkish market. International settlement of investment disputes between foreign investors and the state remain bonded by efforts of the government of turkey, following the inscriptions mentioned in the Bilateral Investment Treaty (BIT) signed by both the concerned parties. For several years the government of Turkey was providing concessions in public services, to the private investors and specially the foreign investors. According to the