Tesco Value Proposition

The purpose of this report was to critically evaluate the value proposition of Tesco Plc to its customers. Given information about the target customers of Tesco and even a PEST analysis of the company was done. Tesco Plc competed with big supermarkets to become one of UK’s best supermarkets ever.
1.1 Tesco’s Value proposition to its customers
“Companies that offer outstanding value turn buyers (“tryers”) into lifetime customers” ( Weinstein and Johnson 1999,p.4).
Some of the value driven strategies are

Understanding customer choices
Identifying customer segments
Increasing competitive options(for example, offering more products)
Avoiding price wars
Improving service quality
Focusing on what is meaningful to customers
Improving brand success and

(Weinstein and Johnson 1999,p.5).
Tesco Plc is world’s third biggest super market (Sky news 2008). What would have made them reach this position? To compete the supermarkets like Sainsbury and Morrisons , there must be some talent behind.
Tesco Plc which started its life in 1919 when Jack Cohen started selling surplus groceries from a stall in the East End of London. By 1970s, Tesco was building a national store network to cover the whole of the UK, which it continues to expand to this day, while also diversifying into other products (Telegaph 2008).
As if now Tesco continues to dominate in UK. Why many customers turned to Tesco when they were happy shopping in Sainsbury and Morrisons ? How Tesco stole these customers from these supermarkets?
The answer to these may be value proposition of Tesco Plc to these customers. Understanding customers is what the most important thing in business today.
As in the lecture of “adding value” on week seven by Prof.Phillip Mutter, value proposition is “how we intend to create value for our customer?”
Value of one customer may not be valuable to another customer. The impact the supplier’s offer has on the customers’ own value chain.
Customers do not buy features, products or services but solutions to their problem.
May be this is what Tesco Plc is being doing. They might have understood customers more than Sainsbury and Morrisons do.
How Tesco offer value to customers?
Tesco in 1997 developed certain values some of them were:

No one tries harder for customers.
Understand customers better than anyone.
Be energetic, be innovative and be first for customers.
Use our strengths to deliver unbeatable value to our customers.
Treat people how we like to be treated (Tesco Plc 2009).

Cutting down the price
Tesco studied that price can be one of the important factors which could bring customers to them. Tesco also maintained quality as the price cuts. Tesco made sure that no one could beat them in price.
“We have introduced bigger packs, representing even better value, on products like coffee, tea and bread – and have also added 60 new products to the Value range, bringing the total to over 200. On Tesco Value, we promise customers that our prices won’t be beaten” (Tesco 1999).
Use of ClubCards
Using clubcard was one of the top strategies used by Tesco in 1995 to understand their customers. As for most other companies, did not realise the importance of Tesco using the clubcards.
By the use of clubcards Tesco was actually stealing customers from other supermarkets.
Tesco gave clubcards to frequent shopping customers. With the clubcard, Tesco got every information they wanted. Tesco stored all the information about customer in the customer’s clubcard. Like what did they shop? How much they use to spend in a day? What product they purchase etc. Tesco then sends special offers to them.
Internet capture
By seeing that many customers were shopping online, Tesco also used to give values through internet. Delivering products to the customer’s door. Customers used to visit the website and order things like groceries, books, cds, furniture, videos and other items and also arranging personnel finance. All in all great value. (brandingasia).
Private label success
In the idea of increasing sales, Tesco thought to give more to existing customers in existing stores. Tesco started using private labels to sell the product with which they tried to give almost same quality of top brands with cheap price. Tesco labels it as “Tesco value”. Items which they sold using private labels were bakery, meat, ready meals, deli, dairy, HBC, wine and non foods. Many others too (corioliosisresearch 2004,p.20).
Porter’s value chain on Tesco Plc
As in the lecture discussed by Prof. Phillip Mutter, Porter’s value chain consists of five activities which are inbound logistics, operations, outbound logistics, marketing and sales, service activities(Lysons and Farrington 2006,p.102).
Inbound logistics include receipt of goods from suppliers, storage, handling and transportation and stocking. Tesco always tried to keep the customer choice in store. In Tesco, there is an opportunity to reduce the cost unfairly incurred by company and therefore preventing the cost being passed on to the customer.
In operations, Tesco maintains the tasks such as opening every day in accordance with trading hours, maintaining the shelves, and the stocks.
In outbound logistics, Tesco has home delivery service and also they increase the number of staffs at till to save the time of customers. Trolleys are arranged such a way that they are easily accessible.
In marketing and sales, Tesco issues clubcards as discussed above and advertise in news papers, radio, national TVs etc
Service activities include human resource and technological activities. In human resource management, Tesco trains the staff to do the job.”There are a number of ways we support our people to achieve this, be it through an Options Development Programme, offering an Apprenticeship or encouraging the studying for a qualification whilst at work”.(Tesco 2009)
In the technological, Tesco’s brand name gives the product vitality and with the start of internet shopping, Tesco can be the best to shop.
1.2 PEST Analysis on Tesco Plc
Political, economical, sociological and technological (PEST) analysis on Tesco Plc gives out the following results.
Credit crunch usually leads to unemployment. As, Tesco being one of the largest and fastest growing supermarkets, more jobs are expected to be available in Tesco. Tesco politically, is facing a charge of driving out other retailers out of the competition. But under EU law, if an organisation has large market share can be dominant. Tesco to date has no charge legally of exploitation.
Economically, Tesco has not been badly affected when compared to others. Tesco has the brand name and all products cheap for all segments of the market. So whatever happens when Tesco opens the door, customers are ready to flow in.
Sociological aspects for Tesco have also helped a lot. As the number of career minded persons like students from abroad are increasing in UK, ready meals are in demand to make the cooking easy. Tesco has also understood this segment too. Tesco has variety of products for such students.
Technological factors like internet are also friendly to Tesco. Customers can go online shopping in Tesco’s site. Tesco has also started carbon reduction programme. Customers are also encouraged to make low carbon choices.
1.3 Tesco’s Value proposition on Target customers
“The Clubcard database is helping us to give customers an even better and more focused offer: the mail-out at the end of February 1999 contained 80,000 variations of letter, offer and magazine, and issued £50m-worth of reward vouchers, together with £25m-worth of product coupons. By understanding customers’ shopping habits, we are now even better at targeting our offers to them” ( Tesco 1999).

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Tesco created a student card and a card for mothers in 1996 which suited their needs. In 1997, Tesco direct service and financial services were added. Adding value also became mandatory, like expectant mothers were given the priority of parking outside the store, even personnel assistance to help them. In 1998, Tesco began to offer electricity and telecommunications products and services. By this time, Tesco had identified 108 customer market segments (brandingasia).
For middle-income with young children, Tesco has opened bank with jargon-free, customer friendly approach, coupled with its perceived low prices, has obviously proved a winner (guardian 2005).
Market share rose tremendously even customers are happy. Making nice use of technology, provided customers with great experience (brandingasia).
By looking into the value proposition of Tesco, it is for sure that it is going to be very difficult for any other supermarket to emerge. PEST analysis shows the company is still strong to compete politically, economically, socially and technically. Also Tesco is well aware of its target customers and doing well to them too.
Branding Asia. (). Tesco – The brand experience is everything. Available: http://www.brandingasia.com/cases/tesco.htm. Last accessed 2 Jan 2010.
Clark,T. (2008). A history of Tesco: The rise of Britain’s biggest supermarket. Available: http://www.telegraph.co.uk/finance/markets/2788089/A-history-of-Tesco-The-rise-of-Britains-biggest-supermarket.html. Last accessed 1 Jan 2010.
Coriolis research. (2004). TESCO: A CASE STUDY IN SUPERMARKET EXCELLENCE. Available: http://www.coriolisresearch.com/pdfs/coriolis_tesco_study_in_excellence.pdf. Last accessed 2 Jan 2010
Lysons,K.Farrington,B (2006). Purchasing and supplychain management. 7th ed. Essex: Pearson Education Limited. P102.
Sky News. (2008). Tesco Sees Huge Jump In Profits . Available: http://video.news.sky.com/skynews/Home/Business/Tesco-UKs-Biggest-Supermarket-Chain-Unveils-Profits-Of-145-Billion-Pounds-For-First-Six-Months/Article/200809415109917?lpos=Business_Article_Related_Con. Last accessed 1 Jan 2010.
Tesco. (2009). Company Information: values and cultures. Available: http://www.tesco.com/recruitment/html/careers/compInfo/values.htm. Last accessed 1 Jan 2010.
Tesco. (1999). from pennies to pounds. Available: http://www.tesco.com/investorInformation/report99/content/value.html. Last accessed 1 Jan 2010.
TESCO. (2009). Training & Development. Available: http://www.tesco-careers.com/home/working/training-and-development. Last accessed 3 Jan 2010.
The Guardian. (2005). Every little helps – so forget those Tesco quotes. Available: http://www.guardian.co.uk/money/2005/sep/24/insurance.moneysupplement. Last accessed 4 Jan 2010.
Weinstein,A.Johnson,W,C (1999). Designing and delivering superior customer value: concepts, cases, and Applications. United States of America: CRC Press LLC. p4.

Using Campari To Assess The Lending Proposition Finance Essay

Where the arrears raise, the bank, as mortgagee, can handle them rely on legal options and the Council of Mortgage Lenders Statement of Practice on Handling of arrears and Possessions and the Mortgage Code. Mortgage Code assists with protection for the mortgage borrowers. The registration of the lenders to the Code is regulated by The Council of Mortgage Lenders.
The Statement gives the general guidance for lenders how they can deal with mortgage arrears. There should be individual treatments of each case; procedures for handling each case are flexible and should help the borrower as much as possible in certain situations.
There are few measures which lenders can use to assist borrowers in case of default:
Extend the Term of the Mortgage – it is to prolong the loan term, however, the monthly based payment would not be changed a lot;
Change of Mortgage – for example, unit-linked mortgage could be changed on capital mortgage; in this case borrower should be advised to get professional consultation;
Defer Payment – it means that the payment towards to interest will be deferred for a period. This could be useful in case of shortfall in income (because of temporally illness) or a rapid increase in interest rate and if it is in interest of both the lender and the borrower;
Capitalise interest – it is related to third measure. This could be used when arrears have built up; nevertheless, the full monthly payment could be started again.
In case if no of the measures could be agreed and debtor could not serve the loan lender can obtain the possession of a property and its subsequent sale.
In Statement it is clearly stated that “possession of property will be sought only as a last resort”, that is they should try and use all possible measures to help borrowers in their repayment difficulties.
Yet there are legal options which are available as remedies for lenders who take the land as security in event of default, but few of them are not mentioned in the Council of Mortgage Lenders Statement. They are as following:
These are options on which the Council of Mortgage Lenders Statement is silent.
Sue. Lender can sue the borrower in event of default for unsettled debt. It is the right of any creditor to sue for unpaid debt. But in some circumstances this remedy would not be exercised:
There is charged security and lender can wish to proceed against security rather than the individual;
In case if borrower does not have any other assets, then to sue him is a useless exercise.
Appoint receiver. In case if block of flats or hotel (anything which give the rental income) have been given as security, receiver will be appointed by lender to collect rents. Theses rents will be used to pay the receiver fees, running the business, towards to insurance of property as well as towards to capital and interest as regards to loan.

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Foreclose (may say that it does not happen in real). It is the most severe option which lender can use. The debtor will no longer own the property in case if foreclose order is granted. The property will belong to lender and after house/land is sold the debtor would not get the equity sum. That is why the foreclose orders are unlikely ever granted.
Next two legal options are also stated in the Council of Mortgage Lenders Statement.
Possession. In case when borrower has no bounded property the lender must get the court order to obtain and sell the property with vacant possession (Protection from Eviction Act 1977). In order to obtain the order for possession and accordingly the Administration of Justice Act 1970 and 1973 the lender ought to produce evidence that all possibilities to help borrower with arrears had been exercised and they are failed. The Council of Mortgage Lenders Statement in December 1991 reaffirmed that “it is the policy of lenders to take possession only as a last resort, and to handle arrears problems effectively and sympathetically”.
Sell. A lender has right to sell the property charged in eventuality of default under Section 101 Law of Property Act 1925. Prior to sell property the order of possession should be obtained. There is no need to delay the sale of property in the expectation of higher price (Bank of Cyprus v Gill). At the same time the best price must be obtained selling the property, if a bank failed to do so, bank becomes liable for deficit (Standard Charted Bank v Worker). The Council of Mortgage Lenders Statement agreed that it is lender’s duty to obtain the best price reasonable obtainable and it is not necessarily to suspend sale in anticipation of price rise at some future date. Also it provides that: property should be professionally valued before sale; special staff will be responsible for reviewing the offers from potential buyers, checking-up the condition of property and valuation; estate agent might be specifically asked not to put property as “repossessed property”; property could be sold via auction to a higher bidder.
Thus, from comparison of legal options and the Council of Mortgage Lenders Statement of Practice on Handling of arrears and Possessions and the Mortgage Code can be seen that they rather supplement with each other than argue. But at the same time they look at problems from a bit different point of view. Legal options give more possibilities to lender to recover in case of borrower’s default, while the Council of Mortgage Lenders Statement is designed more to protect the borrower in case of default.
To assess any lending proposition banks can use the set of good lending principals. They are known as “Canons of Lending”, which all lenders apply when examine information and some extra data, which are relative to lending proposition, in details. There are many points to be covered during assessing so lenders use a mnemonics to check if they looked at all areas.
Most commonly used is CAMPARI:
Character: of course it is difficult to value individual if you meet him just for first time. Lenders would like to assist person who are honest. The very important key issues will be: how long this individual has been a customer? Does he have good record on his account (how his account have been conducted in past, how did he/she serve previous loans)? If the individual is not a bank customer his profession could be guidance to his/her character, bank might require the bank statement from bank where an account is held.
Ability: main relevant factors here are age, health, technical ability. In case if the borrower is going to set up the physically demanded business (for example, pub) he should be healthy and relatively young. If engineer is about to set his own construction company it would be good if he also has done management related courses. The ability to restrict expenditure and accumulate savings over years may show that person is able to serve loan well
Margins: the rate of interest, which will be charged, is the price of money and the reflection of the risk (higher risk – higher rate) involved in lending. There is also possibility that bank will charge an arrangement fee to repay the work involved in assessing proposition. Bank is the organisation that is aimed to make the profit, in this way there are many cross selling opportunities for bank such as life-insurance or house-insurance, arranging which bank will get commission from the company whose policy was chosen.
Purpose: surely it is what a person is borrowing for. It should be legal. But still some legal purposes, like gambling, would not be looked favourably or if the loan to company could give rise to bad publicity and such effect bank.
Amount: it is of importance to establish if the amount requested is correct and that all costs (stump duty, legal costs, and arrangement fee) are considered. Cash flow forecast could be needed if lending to a company in order to value the exact borrowing requirement. The amount borrowed should be agreed with bank policy that is bank could lend to individuals to purchase the house only 3-4 times person’s gross income. In ideal contribution from band and borrower should 50 % from each side.
Repayment: this is the most important principle. Repayment is usually coming from individual’s income, so lender should make enquires in order to obtain details on how long individual has been employed, his salary, is job permanent or temporary, if bounces are guaranteed. Possible it is useful to prepare income and expenditure account to establish if person is able to serve the borrowing without any difficulties. If it is clear that individual can not serve the loan bank should refuse loan in spite of securities being offered.
Insurance (Security): is the secondary importance. Security is necessary in case if income as a primary source of repayment has failed. Land, guarantee, life-policy and stocks and shares are common types of security.
As we see the CAMPARI involves lots of human attention. But as our life is becoming more and more computerised the same is happening with assessing the lending proposition.
Credit scoring is the process which assists lenders to decide if individuals are creditworthy using the specially designed questions form and mathematical formula adding up all scores for each answer. By calculating the score the lender will get the snapshot of individual’s credit risk picture at certain point in time. Every score is individual and may fairly identify level of person’s future credit risk. The total score will be also compared with millions of past credit files. If total score has approached certain figure or above it then lender is likely to grant loan.
Five main factors are used to determine credit score, namely: payment history, length of credit history, new credit, amount owed, types of credit in use. They could be varied but the basic will be kept the same.
For example, a person who has been resident at same current address or with same employer for long period will get more scores than a person who change addresses or jobs very often. So, person will lose scores if: is self-employed, have changed job recently or did it frequently in the past, have moved home recently of often, is not electoral register, never had a mortgage or any other loan, is single or cohabiting with a partner.
Credit scoring is used not only to help with lending decision, even if you want to open account in bank credit scoring will help bank worker to assess which current product could be offered to individual according his credit score.
Accordingly, the CAMPARI and credit scoring generally speaking use the almost same factors when assessing the lending proposition. Yet, CAMPARI is method that uses more human resources and thus is more expensive (specialist in lending should be involved in evaluation of proposition) than credit scoring (lower level staff could put information in computer). But lack of human involvement in credit scoring sometimes could lead to turning down good customer just because he changed work recently even if his salary is quite high; nevertheless, the same “lack of human involvement” means that proposition would be estimated without favour and bias by credit scoring. CAMPARI is longer process; credit scoring, by using computer, takes just merely few minutes to calculate and value the proposition, so .

The Modigliani-Miller Proposition I Theory (MM I)

1. Introduction
According to many research of corporation finance, the capital structure decision is one of the most fundamental issues facing to the executives and management level. The corporate finance is a specific area of finance dealing with the financial decisions corporations make and the tools as well as analysis used to make these decisions. The discipline as a whole may be divided among long-term and short-term decisions and techniques with the primary goal being maximizing corporate value while managing the firm’s financial risks. Capital investment decisions are long-term choices that investment with equity or debt, and the short-term decisions deals with the balance of current assets and current liabilities which is managing cash, inventories, and short-term borrowing and lending. Corporate finance can be defined as the theory, process and techniques that corporations use to make the investing, financing and dividend decisions that ultimately contribute to maximizing corporate value.Thus, a corporation will first decide in which projects to invest, then it will figure out how to finance them, and finally, it will decide how much money, if any, to give back to the owners. All these three dimensions which are investing, financing and distributing dividends are interrelated and mutually dependent.

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The capital structure of a company refers to a combination of debt, preferred stock, and common stock of finance that it uses to fund its long-term financing. Equity and debt capital are the two major sources of long-term funds for a firm. The theory of capital structure is closely related to the firm’s cost of capital. As the enterprises to obtain funds need to pay some costs, the cost of capital in the investment activities is also the main consideration of rate of return. The weighted average cost of capital (WACC) is the expected rate of return on the market value of all of the firm’s securities. WACC depends on the mix of different securities in the capital structure; a change in the mix of different securities in the capital structure will cause a change in the WACC. Thus, there will be a mix of different securities in the capital structure at which WACC will be the least. The decision regarding the capital structure is based on the objective of achieving the maximization of shareholders wealth.
With regard to the capital structure of the theoretical basis, most well-known theory is Modigliani-Miller theorem of Franco Modigliani and Merton H.Miller (1958 and 1963). Yet the seeming simple question as to how firms should best finance their fixed assets remains a contentious issue.
2. Modigliani-Miller Proposition I
The Modigliani-Miller Proposition I Theory (MM I) states that under a certain market price process, in the absence of taxes, no transaction costs, no asymmetric information and in an perfect market, the cost of capital and the value of the firm are not affected by the changed in capital structure. The firm’s value is determined by its real assets, not by the securities it issues. In other words, capital structure decisions are irrelevant as long as the firm’s investment decisions are taken as given.
The Modigliani and Miller (1958) explained the theorem was originally proven under the assumption of no taxes. It is made up of two propositions that are (i) the overall cost of capital and the value of the firm are independent of the capital structure. The total market value of the firm is given by capitalizing the expected net operating income by the rate appropriate for that risk class. (ii) The financial risk increase with more debt content in the capital structure. As a result, cost of equity increases in a manner to offset exactly the low cost advantage of debt. Hence, overall cost of capital remains the same.
The assumptions of the MM theory are:
1. There is a perfect capital market. Capital markets are perfect when

investors are free to buy and sell securities
investors can trade without restrictions and can borrow or lend funds on the same terms as the firms do
investors behave rationally
investors have an equal access to all relevant information
capital markets are efficient
no costs of financial distress and liquidation
there are no taxes

2. Firms can be classified into homogeneous business risk classes. All the firms in the same risk class will have the same degree of financial risk.
3. All investors have the same view for the investment, profits and dividends in the future; they have the same expectation of a firm’s net operating income.
4. The dividend payout ration is 100%, which means there are no retained earnings.
In the absence of tax world, base on MM Proposition I, the value of the firm is unaffected by its capital structure. In other words, regardless of whether a company has liabilities, the total risk of its securities holders will not change even the capital structure is changed. As the weighted average cost of capital unchanged, so must the same as the total value of the company. That is VL = VU = EBIT/ requity where VL is the value of a levered firm = price of buying a firm that is composed of some mix of debt and equity, VU is the value of an unlevered firm = price of buying a firm composed only of equity and EBIT is earnings before interest and tax. Whether or not the company has loans or the loans for high or low, investors are all accessible through the following two kinds of investment on their own to create the desired type of earning.
1. direct invested in the company’s stock borrowing
2. if shares of levered firms are priced too high, investors will try to take advantage of borrowing on their own and use the money to buy shares in unlevered firms. The use of debt by the investors is known as homemade leverage.
The investors of homemade leverage can obtain the same return as the levered firms, therefore, for investors; the value of the firm is not affected by debt-equity mix.
The MM Proposition I assumptions are quite unrealistic, there have some implications, (i) Capital structure is irrelevant to shareholder wealth maximization. (ii) The value of the firm is determined by the firm’s capital budgeting decisions. (iii) Increasing the extent to which a firm relies on debt increases both the risk and the expected return to equity – but not the price per share. (iv) Milton Harris and Artur Raviv (1991) illustrated the asymmetric information that firm managers or insiders are assumed to possess private information about the characteristics of the firm’s return stream or investment opportunities. They will know more about their companies’ prospects, risks and values than do outside investors. Then it cannot fulfill the assumption of perfect market.
Based on the inadequate of MM Proposition I, Franco Modigliani and Merton H.Miller revised their theory in 1963, which is MM Proposition II.
3. Modigliani-Miller Proposition II
The Modigliani-Miller Proposition II Theory (MM II) defines cost of equity is a linear function of the firm’s debt/equity-ratio. According to them, for any firm in a given risk class, the cost of equity is equal to the constant average cost of capital plus a premium for the financial risk, which is equal to debt/equity ratio times the spread between average cost and cost of debt. Also Modigliani and Miller (1963) recognized the importance of the existence of corporate taxes. Accordingly, they agreed that the value of the firm will increase or the cost of capital will decrease with the use of debt due to tax deductibility of interest charges. Thus, the value of corporation can be achieved by maximizing debt component in the capital structure. This theory of capital structure for the study provided an important and analytical framework. According to this approach, value of a firm is VL = VU = EBIT (1-T) / requity + TD where TD is tax savings. MM Proposition II is assuming that the tax shield effect of each is the same, and continued in sight. Leverage firms are increased in interest expense due to reduced tax liability, has also increased the allocation to the shareholders and creditors of the cash flow. The above formula can be deduced from the company debt the more the greater the tax saving benefits, the greater the value of the company. The revised capital structure of the MM Proposition II, pointed out that the existence of tax shield in a perfect capital market conditions cannot be reached, in an imperfect financial market, the capital structure changes will affect the company’s value. Therefore, the value and cost of capital of corporation with the capital structure changes in different leverage, the value of the levered firm will exceed the value of the unlevered firm.
MM Proposition theory suggests that the higher the debt ratio is more favorable to corporate, but though borrowing adds an interest tax shield it may lead to costs of financial distress. Financial distress occurs when promises to creditors are broken or honored with difficulty. Financial distress may lead to bankruptcy. The trade-off theory of capital structure theory in MM based on the added risk of bankruptcy and further improves the capital structure theory, to make it more practical significance.
3.1 Trade-off Theory of capital structure
According to Myers (1984), a firm that follows the trade-off theory sets a target debt to value ratio and then gradually moves towards the target. The target is determined by balancing the tax benefits of using debt against costs of financial distress that rise at an increasing rate with the use of leverage. It so predicts moderate amount of debt as optimal. But there is evidence that the most profitable firm in an industry tend to borrow the least, while their probability of entering in financial distress seems to be very low. This fact contradicts the theory because if the distress risk is low, an increase of debt has a favorable tax effect. Under the trade-off theory, high profits should mean more debt-servicing capacity and more taxable income to shield and therefore should result in a higher debt ratio.
3.2 Pecking Order Theory of capital structure
The pecking order theory stems from Myers (1984) argues that adverse selection implies that retained earnings are better than debt and debt is better than equity. Firms prefer internal finance and if external finance is required, firms issue debt first and issue equity only as a last resort. The pecking order explains why the most profitable firms generally borrow less because they have low target debt ratios but they don’t need outside money. As in Baskin (1989), asymmetric information affects capital structure by limiting access to outside finance. Managers know more than outside investors about the profitability and prospects of the firm. Information problems are particularly acute with common stock, announcement of stock issue can drive down the stock price.
4. Conclusion
The capital structure decision is one of the most fundamental issues in corporate finance. Regardless of which kind of capital structure, to achieve one of the most optimal capital structures, the company should be mixture of equity and debt and it cannot only focus on equity or debt. Equity is a cushion and debt is a sword, debt is always cheaper than equity, partly because lenders bear less risk and partly because of the tax advantage associated with debt. In general, there are differences in the capital structures of different industries; they are having their own characteristic. The most important thing is the company’s liquidity is sufficient or not. In making the decision of how to allocate the fund in which type of assets, the company has to consider and compare the different factors such as NPV, IRR and payback period. In evaluating the NPV, IRR and payback period, cash inflow is fund of the vital element. Therefore the company should know how to obtain the financing and how to invest it. They should carefully to allocate their resources to maximize the firm value.

Baskin, J. (1989) ‘An empirical investigation of the pecking order hypothesis’, Financial Management, Vol. 18, pp.26-35
Harris, M. and Raviv, A. (1991) ‘The theory of Optimal capital structure’, Journal of Finance, Vol. 48, pp.297-356
Merton H. Miller. (1977) ‘Debt and Taxes’, Journal of Finance, Vol. 2, pp.261-275
Modigliani, F and Miller, M.H. (1958) ‘The cost of capital, corporation finance and the theory of investment’, The American Economic Review, Vol. 48, pp.261-97
Modigliani, F. and Miller, M.H. (1963) ‘Corporate income taxes and the cost of capital: A correction’, The American Economic Review, Vol. 53, pp.433-443
Myers, S.C. (1977) ‘Determinants of corporate borrowing’, Journal of Financial Economics, Vol. 5, pp.146-75
Myers, S.C. (1984) ‘The capital structure puzzle’, Journal of Finance, Vol. 39, pp.575-592


Localized Value Proposition Analysis for Toyota

Toyota motor company, who started a comprehensive partnership with FAW (First Auto Works) in 2002, has achieved great success in China, the market share expanding from 2.4% in 2003 to 7.3% in 2004 (data from JACCPCM, Joint Advisory Committee of China Passenger Car Market). The key concept of Toyota’s successful strategy in China is “localization” – to generate localized value proposition for consumers, which is different from Toyota’s global policy. Localization is the key concept of a multi-national corporation’s strategy to enter a new country, which is an important method to establish it. Therefore, how to generate a localized strategy is a priority for these corporations. This essay will define localization which may lead the corporations to success in a new country, then identify the three elements of localization strategy: product strategy, marketing strategy and management strategy, furthermore assess the risks that localized strategy bring out. The core concept of localization is local manufacturing and local sales. When a multi-national corporation enters a country, the primary question is what kind of products they can offer to the local consumers, and whether they will be accepted. Since different countries have different needs, the products can be adjusted according to the local consumers’ taste. The following question is how to sell products to local consumers. As the business environment and issues vary from one country to another, the firm’s marketing mix may have to undergo significant adaptation and adjustment. Effective marketing in this environment will boost the company’s volume sale because of reflecting of local culture in positive way. Product strategy is for developing and supplying locally customized products, which is the foundation of the localization strategy, including three following aspects. First of all, products must be manufactured locally, because manufacturing operations in local can take advantage of resources, such as raw materials and human resource; and make the price of product competitive avoiding import taxes or trade barriers. In addition, the company can obtain the support of local government for the contribution to local economies and industrial development, which is also beneficial for local selling. Secondly, more localized exterior and interior design should be adapted to fit consumers’ taste. One product is popular in one country, which cannot guarantee that it will be also successful in other countries. Consequently, the company must be aware of the local consumers’ preference and taste, and wide coverage of product for diversified consumers’ needs. For example, Coca-Cola sells new flavours specifically for Europe: its Turkish division marketed a pear-flavoured drink, while the German division sold a berry-flavoured Fanta (Onkvisit & Shaw, 2004), which are varied according to different customers’ tastes. Furthermore, the product should fit for the local culture and traditional. The example of the marketing of fire insurance in different countries can illustrate this reason. For American consumers, it is sensible and practical to purchase fire insurance. However, in Brazil, where people belief that fire insurance may encourage fire accidents, it is difficult to encourage Brazilian consumers to purchase insurance (Onkvisit & Shaw, 2004). Last but not least, purchasing from local suppliers is also a crucial issue for product strategy, which influences the product quality and long term profitability. Suppliers as business partners should be strict selected and sometimes long term patience should be had for improvement of local suppliers to meet corporations’ requirements.

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A successful localized strategy emphasizes not only on product but also on adapted brands and packages to meet the particular preferences and needs of customers. That is, in order to increase selling locally, an efficient marketing strategy is needed, which include advertising, personal selling, and sales promotion. As a new brand enters a market, more intensive marketing is necessary to increase brand recognition and perception which will attract consumers. More specifically, advertising on mass media is an efficient method to increase the brand recognition. Another important factor of marketing strategy is personal selling in which a company can invest. Since satisfaction during the buying process and quality of after services are becoming crucial for company’s reputation, the capability of sales rep, professionalism and honest quotation for instance, will influence the branding and sales. Finally, sales promotion contains those promotional activities other than personal selling and advertising, such as coupons, discounting, demonstration and samples, which can push the local consumers to accept new products rapidly. Furthermore, the design of promotional activities should be based on local consumers’ consuming behaviour which is determined by local culture. For instance, Suspicion and privacy in some countries can limit the effectiveness of promotional activities, such as door-to-door selling and other direct selling methods. The awareness to local culture can make a firm more customer oriented, and the marketing strategy will be developed more likely flexible and efficient. A company can use localized management to conquer keen competition across regions with local OEM (original equipment manufacturer), especially in risk management, decision making structure and human recourse. Firstly, to avoid risk of uncertainty, a company should conduct flexible manufacturing facilities and management. For example, Toyota in China limited the level of mechanism and hired more workforces to keep flexibility, by which Toyota can avoid the investment risk at the early stage. Secondly, decision making structure in local companies is a significant issue of management, which may be delegated to enable quick decision making for local company. Since the keen competitive environment of local regions, the market changes rapidly, the headquarters may not respond timely. As a result, the company may lose its competitive edge or opportunities. Another aspect is human resource management, which is a critical part of management strategy. The company may invest in local human resource education and retaining workforce, which will enhance the capabilities of local workers. Meanwhile, although the managerial level of local staff could be intended to improve, company should still have a certain number of domestic staff, who will keep their core strategy in place.
A systemically localization strategy may help an international corporation enter a new country successfully. However, localized strategy may also bring some risks. A firm should be respect and accept local culture; nevertheless, a firm follow the local tradition blindly may lose some market opportunities, while a firm can also create a new business different from local culture. For example, Kelloggs, who sold dry cereal in South America and Asia, successes in establishing the new eating habits which is different from local tradition, and Kelloggs expanded its business network abroad(Onkvisit & Shaw, 2004). On the other hand, in some special industries, especially luxury goods, localized strategy should be cautioned. When a firm’s brand concept clash with localization concept, it is necessary for the firm to make a choice or balance between them. Louis Vuitton for instance, would not be marketed as a local product in China. But at most situation, that choice is difficult to decide because of the following risk. At first, localization strategy can make the local consumer accept the product quickly at the price of damaging the brand image. Moreover, localization strategy implementation need long term preparation and vast investment, which furthermore increase the financial risk. Another risk a firm may face to in the localization’s procedure is culture conflict in management. When a firm enter a new country, two different cultures may clash, which may engender low efficiency and internal contradiction, even bankrupt. For example, in a Japanese firm in Europe, the local employees have to face to a totally distinct management model. It is necessary for the firm to decade whether keep its core strategy in place or finding local methods to execute it.
In conclusion, localized value proposition generated by local optimization, which should integrate the product, marketing and management strategy in the local culture background. Product strategy is the foundation of localization for supplying customized products. The marketing strategy is the key of localization for selling and profiting. The management strategy is the way to conduct localization. Furthermore, to increase its efficiency and competitiveness while adding value to its products, a firm should respect and adapt to local culture. However, the opportunities always associate with the risk. Localization brings certain risks to companies. It is necessary for a firm to consider carefully about the factors of localization strategy.

Wallace Model Policy Ineffectiveness Proposition

Critically discuss the following statement: “The Sargent and Wallace (1976) model of policy ineffectiveness has no basis in reality. It is of no practical or theoretical value to policymakers and economists alike.”
The Sargent & Wallace model (1976) produced the ‘Policy Ineffectiveness Proposition” which is viewed as a radical turning point for monetary theory and part of the ‘New Classical’ revolution that dominated policy during the 1970’s and 1980’s. Despite criticisms, it holds great significance as a benchmark model.
The model is built upon the Lucas supply function:
(1) yts = yn + (pt – t-1 pte) + u t
This stipulates the natural rate hypothesis that output can only deviate from its natural level by price forecasting errors or a random supply shock.
The money supply rule is given by:
mt = α + β (y* – yt-1) + εt,
Where α is a constant term, β is a parameter and y* is a target level of output.
And ultimately, output in the model is given by:
(3) y t S = y n + εt + ut
It can be seen from (3) that the parameter set by anticipated monetary policy has no effect on the behaviour of output. Only the unanticipated money shock, εt , will have effect.
The model is structured upon New Classical assumptions of rational expectations (RE), a Lucas supply curve and that only real variables matter. By substituting for more realistic assumptions, the policy ineffectiveness proposition would not hold.
RE is defined below:
t-1 Pt e = E (Pt / t-1)
RE contrasted with the backward-looking expectations assumption of the adaptive expectations model that dominated previous theory. With RE, an activist policy would be predicted by agents who would then revise wage and price expectations upwards, resulting in unchanged real variables. There is no money illusion and agents do not make systematic mistakes.
However empirical evidence suggests persistent expectational errors, seen by constant underestimation by agents of UK inflation (Carlson & Parkin, 1975). Friedman used expectational errors to argue against the short-run neutrality of monetary policy. However RE is widely accepted, shown in the impact of inflation forecasting by the Bank of England has upon expectations and its use within the Efficient Market hypothesis. However the acceptance is seen as, “necessary but not sufficient” (Spencer, 2009) for the validation of the PIP, as models that are fully consistent with the rational expectations hypothesis with more realistic assumptions, have taken precedence.

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One such model, and a critic of the Friedman style ‘market-clearing’ assumption was Fischer (1977). He introduced short run wage rigidity, with agents making nominal contracts that lasted longer than one period. Monetary policy could change at higher frequencies than prices and wages, implying non-neutrality in the short run, Taylor proposed nominal rigidities in his model, with the inclusion of staggered wage contracts with similar results. The market clearing model seems distinct from reality, with real world lags. This assumption is credited by the Bank of England, who set a horizon for up to two years for achieving their inflation target and suggested adherence to a Taylor style rule. The Keynesian assumption is that the large unemployment seen throughout the world today is evidence that labour markets do not clear. The assumption of fully flexible prices is discredited by the Calvo model. Its inclusion of menu costs supports the fact that numerous imperfections within today’s economy stop people reacting to news immediately.
Hoover states if the symmetric information structure is removed, monetary policy does affect real variables. Grossman & Stiglitz (1980) state that agents would not pay the cost to become informed as under rational expectations no profit could be made. This leaves policy-makers with an informational advantage and the ability to affect real variables. Support for symmetric information structures is seen via the UK, where transparency is vital, thus information differentials not persisting for long.
In addition to invalid assumptions included within the model, it has been criticised for its exclusions. Econometric evidence suggests when assessing factors affecting output, exclusion of “monetary..policy would…create the greatest potential shortcoming” (Hutchinson & Glick). Shammout argued the impact of monetary policy upon interest rates, exchange rates & stock prices, instead of just prices, that can affect output. Money is seen as the only financial asset, excluding even government bonds. There is little evidence supporting its practical application, with early evidence by Barro (1977) deemed a “research failure”. Blanchard (2003) postulated the Mundell-Tobin effect of the ability of monetary policy to alter the natural rate of unemployment, with evidence in the evolution of European unemployment. Mishkin (1982) found both anticipated and unanticipated monetary policy has effect on real variables in the short run. The Quantitative Easing programme in the UK, seen to have helped unemployment, would be ineffective if the PIP held.
Despite criticisms, its importance within monetary policy cannot be underestimated. The influential Barro-Gordon model (1977) supported the model with the assumption that whilst output and employment were affected by unanticipated monetary policy, anticipated policy would have no effect on real variables. The ‘Real Business Cycle’ model confirmed policy ineffectiveness in a world without the market-clearing assumption. It has promoted widespread use of the RE hypothesis, equilibrium modelling and cemented the need for firm microeconomic foundations in macroeconomic policies (Snowdon & Vane). The New-Keynesian models are seen as emanating from the new classical challenge, in which Sargent & Wallace played a key role.
The Sargent & Wallace model significantly impacted upon monetary policy, although not as its creators anticipated. Modern economists generally accepted the New Keynesian approach of the long run neutrality of monetary policy, and its short run potency due to real and nominal rigidities. Critics argue that the model presents a simplified static world, of complete certainty with no relevance in the real world. However in the light of theoretical application, “unrealistic assumptions are in fact necessary in the formation of a good theory” (Gilbert & Miche) Thus although its modern practical use is negligible, its application within theoretical developments are vast.

Blanchard (2003), “Macroeconomics”, 3rd edition
Heijdra (2003), “Foundations of Modern Macroeconomics”
Hoover (1988), “The new classical macroeconomics: a sceptical inquiry”
Romer (2001), “Advanced Macroeconomics”
Snowdon & Vane (2002), “Encyclopaedia of Macroeconomics”


Barro, (1977), “Unanticipated Money Growth and Unemployment in the United States”, The American Economic Review
Barro, (1978), “Unanticipated Money, Output, and the Price Level in the United States”, The Journal of Political Economy
Calvo (1983), “Staggered prices in a utility-maximising framework”, Journal of Monetary Economics
Carlson & Parkin (1975), “Inflation expectations”, Economica
Fischer (1977), “Long term contracts, Rational Expectations and the Optimal Money Supply Rule”, Journal of Political Economy
Gilbert & Michie (1997), “New Classical Macroeconomic Theory and Fiscal Rules: Some Methodological Problems”, Contributions to Political Economy
Grossman & Stiglitz (1980), “On the impossibility of Informationally Efficient Markets”, American Economic Review
Hutchinson & Glick (1990), “New results in support of the fiscal ineffectiveness proposition”, Journal of Money, Credit & Banking
Mishkin (1982) “Does Anticipated Monetary Policy Matter? An Econometric Investigation,” National Bureau of Economic Research
Sargent & Wallace (1976), Rational Expectations and the Theory of Economic Policy”, Journal of Monetary Economics
Spencer (2009), “New Classical & New Keynesian Economics I & II”


Shammout (1989), “Additional Econometric Tests of the Policy Ineffectiveness Proposition” accessed at http://etd.lib.ttu.edu/theses/available/etd-02262009-31295005775209/unrestricted/31295005775209.pdf on 21/11/2009


How Proposition 8 Became a Government Law in California

 Child – Center Argument with Same Sex Marriage Debate

Of Proposition 8

There is no doubt that the subject of marriage has always been a subject of concern and controversy. Same-sex marriage is an important national issue to stakeholders on both sides of the debate, as marriage has come to hold special significance in the U.S. Marriage brings with it a higher social status (Barclay & Fisher, 2003, 332) and the reputation of being a more reliable citizen (Card 1996, 2). Regarding the legalization of same-sex marriages, it has been advocated for and opposed across distinct states in the United State (Warren and Bloch, 2014, 503). For instance, Proposition 8 in California, which was a voter-initiated ballot measure seeking to amend California’s state constitution to define the parameters of legal marriages as those solely between males and females. Issues directly affecting lesbian, gay, bi-sexual, and transgender (LGBT) individuals in this country have garnered substantial media and political attention (Warren and Bloch, 2014, 504). The measure passed in November 2008 with 52% of the voters supporting it, and subsequently it became the subject of a series of court challenges. For California Proposition 8, the “Eliminates Right of Same-Sex Couples to Marry” Initiative, it was written to amend the state constitution to explicitly define a marriage as a legally binding union between a man and a woman, which effectively banning same-sex marriages in California. Indeed, classification of proposition 8 by the Supreme Court of California in the United States reflect the importance attached to the fundamental interests of minorities and whet the majority of persons were allowed to legally deprive the interests of minorities. The principle of constitutionally concealing the rights of minorities to protect the rights of minorities was totally ignored by permitting majority to be taken as an equal and free citizen of an unaccepted minority, and no long lasting law in the history of the law. How did the California proposition 8 gay marriage evolve and move on to today? This paper to provide an overview of the events and the legal issues involved in the case that is currently before the California Supreme Court challenging the constitutionality of Proposition 8 and analyze how same-sex marriage have the potential impact on children’s education that the proposition 8 supporters were able to convince voters to pass the proposition.

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The California briefly approved and legalized same-sex marriage in 2008, but it has been illegal since the conservative proposition 8 referendum that banned the state from recognizing it. Then, supporters of same-sex marriage and opponents of same-sex marriage appealed proposition 8 to the U.S. Supreme Court. According to the The Constitutionality of Proposition 8 (Epstein, 2011), It goes without saying that the Proposition 8 was not a quite smooth process to go through this legislation because many people are quite enthusiastic about liberalism in terms of individual behavior, so the most useful proposition guiding liberal thinkers is this: a person deeply offends others for not guaranteeing the change of individual behavior or changing their behavior, unless and until the behavior involves the use of force against the individual and fraud, it means that interfering with intimate personal behavior requires strong social protection (Epstein 2011, 799). In May 2008, a judicial precedent made California the second American state to recognize same-sex marriage as equal to normal marriage. Less than six months later, however, voters in California passed proposition 8, changing the state constitution to deny same-sex couples that right(Harvard New Review 2010). Here is a significant example for this issue, in the case of Strauss v.horton (Harvard New Review 2010), the California Supreme Court formally recognized the validity of proposition 8, arguing that it was right under California law to classify the legislative proposal as an amendment to the constitution rather than a constitutional amendment, The Supreme Court concluded that the use of the term marriage only to heterosexual couples does not represent a fundamental change necessary to bring about a constitutional amendment that must be initiated by a majority of legislative proposals before reaching the electorate(Harvard New Review 2010).

Also according to the view from Harvard New Review(2010), opinion mentioned above is that point of view of the court that only the provision of changes to the structure of the government can be refer to as a revision of the constitution, which is consistent with the narrowly defined interpretation of the state precedent of California. At the same time, however, the court has lost an opportunity to address a matter that has not been resolved by precedent and, in the longer term, to take into account the role of the judiciary in protecting the rights of minorities. The court should take the view that making fundamental changes to the personal interests of minorities is itself a revision. To do so, the court also needs a deliberative process for these constitutional changes so it can better serve as a court that protects minority rights. This tendency to hurt Strauss’s court beliefs led a small group of people (especially homosexuals) to argue for the supremacy of judicial review and the difference between amendment.

In 2007, when the supporters of Proposition 8 submitted their measure to the secretary of state of California for permission to disseminate it, the title of the vote was “California Marriage Protection Act” (Epstein, 2011, 880). As the discussion in Ballotpedia, at the time, Proposition 22 was the state’s law on same-sex marriage, and the term ‘marriage protection’ seemed to mean “adding additional protections to this notion by enshrining the marriage of a man and a woman in the constitution, not just as an ordinance.” (Ballotpedia 2008) In this dissent, justice Kennedy argued that “the California Supreme Court was qualified to appoint a third party to defend voter initiatives like proposition 8, even if the activists had no formal institutional relationship with the state” (Ballotpedia 2008). He wrote that the Supreme Court “did not understand or accept that the fundamental premise of an active process” (Ballotpedia 2008). Proposition 8 is not about discrimination, but about the will of California voters, who simply want to preserve the historical definition of marriage.

Otherwise, advocates stands for the child development and public learning from a variety of perspectives – social, psychological, historical, and others. On second thoughts, legal recognition of same-sex marriage might help public schools. First, the legal context in which the gay marriage debate is taking place is helpful. Here’s a case in point: in 1985, the U.S. Supreme Court in Bowers v. Hardwick ruled that a Georgia law criminalizing sodomy had been challenged by a person who had been arrested voluntarily for having sex with another man in his home(Fetter 2011, 238). The former Supreme Court has issued and identified the privacy of the realm, which protects personal autonomy in the field of “sexual activity procreation, contraception, interracial marriage between members of the opposite sex, and abortion” (Fetter 2011, 238), plaintiff claiming that the law violated his right to participate in a private association event in the ninth and the 14th amendment to the United States constitution(Fetter 2011, 238). After that, the court has set the case for the Bowers case to consider whether or not the underlying privacy of the 14th amendment extends to the constitutional right to the homosexual act of sodomy. According to the framework of the constitution, the Supreme Court does not think that the existence of such rights, because in the Supreme Court’s ruling, it has neither implied in the maintenance of freedom and justice, nor was “deeply rooted in the Nation’s history” (Fetter 2011, 238). It highlights the reasons and background for the gradual failure of California Proposition8.

Soon after, opponents of same-sex marriage launched a vigorous Proposition 8 movement, which clarified their understanding of the role and significance of marriage in society — They think “marriage is a civil institution designed to encourage and reward heterosexual couples to raise children” (Isaacson, 2010,123). This is the social basis of the majority of the part that is centered on children to support California Proposition 8 and opposed to same sex marriage. Since children are at the heart of marriage, any law that may in any way change the institution of marriage in their view must assess its impact on the basic child-centred objectives of marriage. The action taken by the bold and one-sided approach is eight days of activities, which are held for same-sex marriage supporters provides a perfect opportunity to revive the marriage of words, often forget that the marriage of an individual benefits, and puts forward the concept of a more robust marriage, reflects a myriad of interests and honor to make a lasting marriage agencies (Isaacson, 2010,124).

According to the argument by Isaacson in ‘Teachable Moments’ : The Use of Child-Centered Arguments in the Same-Sex Marriage Debate (2010), Almost debates by most people who support California Proposition 8 on child – centered are originates from a case that a female elementary school teacher invited her students to attend the wedding of a girlfriend who had been with her for a long time as ‘ teachable moment’(Isaacson 2010), which sparked a controversy. Here is this case “There was a group of first-grade children from the Creative Arts Charter School in San Francisco took a field trip to City Hall on October 10th , 2008 (Isaacson 2010, 121), the children’s first-grade teacher, a lesbian, was set to many her longtime girlfriend that morning. The director of the charter school saw the wedding as a ‘teachable moment’ (Isaacson 2010, 121) an opportunity for the children to witness firsthand the progression of civil rights in America”(Isaacson 2010, 121). After this case, since that time, the debate about same-sex marriage has reached a heated period. Earlier that year, the California Supreme Court issued a landmark decision declaring the same-sex marriage ban a violation of the state constitution’s due process and equal protection clause(Wikipedia, In re Marriage Cases, 2008). Opponents of same-sex marriage responded swiftly and forcefully to proposition 8, a ballot initiative to amend California’s constitution to define marriage only as a union between a man and a woman. So, for many of the advocates of same-sex marriage, they thought that the first-grader outing is another step toward a socially acceptable and socially acceptable way, but even though the purpose of the field trip is good, the timing is not appropriate, it also may be damaging to the cause of the marriage. On the day of the field trip, the polls on the eighth proposal show that, in this case, the two sides are evenly matched. Therefore, many of the advocates of the same sex marriage are worried that because this “teachable time”(Isaacson, 2010, 121) can directly become the basis of those Child – centered support of proposition 8 against the same sex marriage, thereby giving them the new advantage that the momentum may eventually be diverted to support proposition 8 (Isaacson, 2010, 121).

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After that discussion of child-centered background debate, here is a significant question, how did proposition 8 pass and why it would not in California? The answer is fascinating and complex, and reveals just how much the country has evolved on the issue since the 2008 election. It should also be noted that the issue of homosexuality has become significantly intertwined with American political life in the last decade or two. After the 1980s, thanks to the rise of the same-sex movement, nearly all presidential candidates in successive us presidential elections had to take a stand. Basically, republicans who mainly cater to the interests of the upper and middle class in American society hold an opposition attitude towards homosexuality and emphasize the maintenance of family and the traditional moral values of American society. Democrats, who cater mostly to the lower, middle and younger classes of American society, are relatively open and tolerant of homosexuality. According to the information from Google(2004), democratic presidential candidates John kerry and Bill Clinton, for example, have both publicly and half-publicly identified themselves as supporters of legalizing gay marriage. Bill Clinton appointed gay people to federal jobs during his presidency. President Bush and his son, both republicans, were vocal opponents of homosexuality. In a speech in January 2004, President Bush even publicly called on congress to pass a constitutional amendment that would make marriage between a man and a woman legally illegal.

The basic information is that Proposition8 was approved in favor of eliminating same-sex marriage with 52.3 percent (Cillizza and Sullivan, 2013). It is worth note when you think that President Obama won California on that same day, with a vote of 61.1%, (Cillizza and Sullivan, 2013). It is worth mentioning that candidate Obama opposed same-sex marriage before 2010 and became the first President who supported same-sex marriage in 2012 (Steinmetz, 2015). In addition, California’s five most populous counties — Los Angeles, orange, riverside, SAN bernardino, and San Diego — all voted for proposition 8, even though Obama had the support of four of the five counties in the presidential race (Cillizza and Sullivan, 2013). African American voters overwhelmingly support a ban on same-sex marriage. Seventy percent supported proposition 8 (Cillizza and Sullivan, 2013), although they were more supportive of Obama, with 94 percent (Cillizza and Sullivan, 2013).Polling data from the Public Policy Institute of California (PPIC) shows that it was clear that attitudes towards same-sex marriage began to change soon after proposition 8 was passed (2012). In October 2008, 50 percent opposed same-sex marriage. By May 2012, 54% of Californians supported same-sex marriage (Google2012).

Over the years, these issues have partly morphed into concerns about how same-sex marriage hurts all children. Because of the growing popularity of same-sex marriage in society, its inclusion in school curricula confuses the child’s gender role with the true meaning of marriage (isaacson, 2010, 132). Richard Richardson made the following statement, announcing marriage as an institution for children: it is a basic human instinct for children to grow up expecting a biological parent. Marriage is about children, not just about adult love. “This is to find the best arrangement of raising children, history, tradition, biology, sociology and simple common sense tells us that a child grows best biological mother and father” (Congressiona records, Google books 2004,). The traditional institution of marriage is not a system of discrimination, nor is marriage used to oppress, which was created for children (Richardson,2004 9). Professor Catherine also highlights the role of marriage in providing the ideal environment for raising children: as a public institution, marriage is the most fundamental function of society — the cultural adaptation of children. It is a time-consuming and extremely expensive proposition — marriage serves social purposes effectively. Marriage is not about discrimination — it’s about children (isaacson, 2010,134). However, although the link between marriage and child rearing is rooted in history, child rearing has never been the primary purpose of marriage (Mckinley and Schwartz. 2010). Even earlier Americans tended to view marriage as a mutual, love-based commitment between two people, rather than as a public relationship tied to the religious or civic obligations of parenting. Today’s research shows that people still think of marriage as a marital institution, in which couples are primarily motivated by their love for each other and their desire for a partner (isaacson, 2010, 135). The Proposition 8 camp is narrowing marriage to Proposition 8 because of the children. Therefore, the function of parenting is neither in line with historical understanding nor in line with contemporary views of marriage.

Back to “the teachable moment”(Isaacson, 2010,121) seen by a school official at the same sex wedding of an elementary school teacher (Isaacson, 2010,121). In fact, the gay marriage debate that has dominated courts and votes across the country lately has produced a series of teachable moments, each legal decision and state initiative offering a glimpse into contemporary attitudes to marriage. What the campaign around proposition 8 clearly lacked was a willingness on both sides of the debate to learn. Likewise, the “no proposition 8” movement missed a valuable learning opportunity to use the absolutist interpretation of marriage as a springboard to a more progressive conversation about contemporary marriage. Thankfully, there may be several occasions in the future, both in California and nationally, for such social reflection.

In conclusion, Americans’ beliefs about the appropriateness of same-sex marriage have shifted dramatically in the past two decades, favourably supporting the right to extend marriage. Every future legal battle over same-sex marriage should be seen as an opportunity to step back and reassess the purpose and purpose of marriage, as it is now. By doing so, it will be able to articulate the goals and vision of the changing American family as a city/state and as a united nation. To prevent the irrational majority from denying the unpopular minority its rights as an equal and free citizen, Proposition 8 was classified as a constitutional amendment or more appropriate. More important, of course, is the weakening of the state constitution as a bulwark of the fundamental rights of minorities. Whether these minorities will still believe in the constitution and the courts, and whether they will remain true to their faith in the law, is what we need to reflect on.


Barclay, S., and S. Fisher. 2003. “The states and the differing impetus for divergent paths on same-sex marriage, 1990-2001.” Policy Studies Journal, 31(3), 331–352.

Waite, L. J., and Lehrer, E. L. 2003. “The benefits of marriage and religion in the United States: Acomparative analysis.” Population and Development Review, 29(2), 255–275.

Epstein, Richard A. 2011. “The Constitutionality of Proposition 8.”Harvard Journal of Law & Public Policy. 34(3), 879-888.

Warren, Deirdre M., and Katrina R. Bloch. 2014. “Framing same-sex marriage: Media constructions of California’s Proposition 8.” The Social Science Journal, 51(4), 503-513.

Isaacson, Ruth Butterfield. 2010. “‘Teachable Moments’: The Use of Child-Centered Arguments in the Same-Sex Marriage Debate.” California Law Review, 98(1), 121-157.

Mckinley, Jesse., and John Schwartz. 2010. “U.S. Court Rejects Same-Sex Marriage Ban in California.” New York Times, August 5, 2010.


Cillizza, Chris., and Sean Sullivan. 2013. “How Proposition 8 passed in California and why it wouldn’t today.” Washington Times. March 6, 2013.

https://www.washingtonpost.com/news/the-fix/wp/2013/03/26/how-proposition-8-passed -in-california-and-why-it-wouldnt-today/?utm_term=.3b38aa8faec9

Steinmetz, Katy. 2015. “See Obama’s 20-Year Evolution on LGBT Rights.” Time, April 10, 2015.


Di, Massa., and Garrison, 2008. “Why gays, blacks are divided on Prop. 8. For many African Americans, it’s not a civil rights issue.” Los Angeles Times. November 8, 2008.


Richardson, Richard. 2004. Proposed Constitutional Amendment to Preserve Traditional Marriage: Hearing. U.S. Government Printing Office Washington.




RATHER THAN “REVISION.” — Strauss v. Horton, 207 P.3d 48 (Cal.



Fetter, Allison-Harrot, 2011. Recognition of Same-Sex Marriage and Public Schools: Implications, Challenges, and Opportunities

The Value Proposition in Barclays PLC

The organization that is used for this assignment is Barclays PLC; this project is divided into three parts. The first part’s aim is to identify and to explain what is the perceived value for the customers, to do this, suitable models of consumer values are going to be used and then the model will be applied to the organization.
The second part will critically evaluate the value proposition of the business and then a comparison will be made with that of the leading competitor’s value proposition.
The third part would produce a new value proposition, which will match the value criteria of the existing customers; this will be done by identifying the weaknesses in the existing value proposition. It will also provide us with a plan to implement the value proposition internally and externally.
Using suitable models identify the customer perceived value for the customers for a product/division/company of your choice.
Customer perceived value, what does this really mean?
Customer perceived value, can be regarded as the opinion that a customer has or has formed of a particular product and how it is of value to him.
Simply put, the customer perceived value of any product is the consumer’s overall assessment of the utility or use of a product based on perceptions of what the customer receives and what he is giving to get the desired service or product.
This concept can also be explained with the help of the following diagram:

Customer perceived value= Perceived Benefits
Perceived Sacrifice
Perceived benefits are the attributes of the service being received and the customer perceived quality and price of the product.
Perceived sacrifice are the customer costs involved in purchasing, such as time, travel etc.

Introduction to the organisation
For the purpose of this assignment, the company that has been selected is BARCLAYS PLC; the following text would give a brief company profile followed by the identification of the customer perceived value for the organisation by the use of the Customer Value Hierarchy Model.
Company profile
Barclays is one of the world’s leading financial institutions headquartered at 1 Churchill Place, London. It is a 300 year old corporation that became a major financial services provider that engaged in retail and commercial banking, credit cards, wealth management, investment banking and management services provider for big global equity firms. It has an extensive international presence in Europe, Africa, Asia and off lately has started to expand in the United States market as well. It moves, lends, protects and invests money for than 38 million customers and clients worldwide.
Barclays has two business clusters: Global Retail Banking and Corporate and Investment Banking and Wealth Management- both compromising world-class business and brands.
Before we take a look at the customer perceived value of the Barclays brand, the project would like to discuss the Customer Value Hierarchy Model, and then try to apply them to the customers of Barclays.
Customer Value Hierarchy Model:
Customer’s goal and purpose
Desired consequences in use situation
Desired products/services attribute and performances
The Customer Value Model consists of three layers, namely the Attribute layer, the Consequence Layer and the Objectives layer. The objective layer includes the ultimate motivations of customers, the consequence layer represents the customer experience desired by the person and finally the attribute layer specifies what actually the needs of the customer are.
From the bottom of the customer value hierarchy, customers would always firstly consider the attributes and availability of products.
At the second layer, customers begin to make expectations according to the attributes.
At the top layer, customers form expectations about the realization of their aim.
How do Barclay’s customers perceive their bank? That’s the question that this assignment would like to answer by giving the objectives, consequences and attributes desired by the customers, followed by a customer review.

Easy personal banking
Safety of the account at all times
Saving account options
Availability of loans at a good interest rate
Online banking to keep a record of their account details at all time
Ability to invest
Good mortgage options
Insurance options
Credit card facilities
Assistance while travelling


Easy accessibility to the account
Peace of mind as the customer is aware that the account details are secure and safe
More control over their own finances
The customer does not require to keep much cash with them at all times because of the debit cards
Saving for the rainy day
A secure and safe environment
Future is taken care off
Can start a business with the help of financial banking
More purchasing power


Pin- sentry device
Debit card
Online banking facilities which enable the customers to check account balances, make transfers, setup standing orders and direct debits.
Home insurance
Different types of savings accounts
Different types of current accounts
Overdraft facility
Car insurance
Travel services

Looking at the above attributes, consequences and objectives list one can identify the value of the brand as perceived by the customer. The brand Barclays is a very widely recognized name and almost every person in the UK is a big fan, of course with some exceptions which are bound to be there, the customers on a general note feel very happy with the huge array of services and products made available by the bank for its customers and are satisfied with the huge network of customer service centres spread all across the world providing 24/7 customer service, also the safe and secure online banking facility provided by Barclays is very user friendly and easy to use, letting the customers always keep a track of their money. So it’s safe to say that Barclays as a bank not only just for people but also for small businesses and big equity firms is a financial institution of repute and is trusted and respected by the people.
Critically evaluate the existing value proposition of the product/division/ company you have chosen. Compare and contrast the value proposition with that of the leading competitor in your sector.
This part of the project would evaluate the value proposition or the customer value proposition of Barclays and contrast it with the customer value proposition of HSBC. But before we proceed to comparing and contrasting the value propositions of both the brands we first need to understand, what a customer value proposition really is? This is the question this project would answer first and then proceed on to discuss the variations in the value propositions of both the brands.
Customer Value Proposition
In the subject of marketing, the customer value proposition is a measure of the sum total of the benefits which a provider offers or promises a potential consumer which he/she will receive in return for the customer’s payment (or any other value transfer). A customer value proposition is a business or marketing statement that would describe why a customer should make use of the services and products being offered by the organisation. It is targeted towards potential consumers, rather than at other groups such as employees, suppliers or partners.
It is a defined statement, which is designed to convince the customers that this particular product will add more value or better solve a problem than the other competitors in the same industry.
Why are customer value propositions so important? This question is of utmost importance to any business, because it is only these statements that give the customer an expectation of a desired service, it provides the consumers with a convincing reason to buy the desired good and also helps differentiate the product from the other services provided by the other competitors in the same industry. They help in gaining customer’s attention and if the customer value proposition is strong, and is able to gain the approval of the customer that helps in building of faster and more profitable sales and in increasing the market share of the organisation. Understanding of the customer needs is very vital as this would ensure the promotion and creation of a successful brand.
Types of Customer Value Propositions
All benefits
This is a list compilation of all the benefits of the products and services offered to the customers by the organisation. This approach requires the least market knowledge about customers and competitors and thus does not provide a good base when seen from a marketing perspective.
Favourable Points of Difference
This type of value proposition explicitly recognizes the fact that the customer has different alternatives and it then it lays it focus on how to differentiate one product or service from another. A product or service can have several differences, confusing the customer and thus complicating the customer’s understanding of the product which would offer him more value.
Resonating Focus
This approach is used by managers who directly deal with a supplier who fully grasps the critical issue in the product- consumer cycle and who delivers a customer value proposition that’s simple yet powerfully captivating. The value proposition offered is superior in the few attributes that are of the most importance to the customers which convey a message to the targeted audience, that here is an organisation which is communicating a sophisticated understanding of the customer’s business priorities.

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When talking about the value proposition of a financial institution we have to take into account the current market conditions and then arrive at the capital and funding strategy of the bank which in itself is a sort of value proposition available for the customers to have a look at and, then these consumers can decide for themselves whether they do need to associate themselves with the financial institution.
Analysis of value proposition of Barclays:
Capital Strategy:

Barclay’s capital management activities will attempt to maximise shareholders’ value by optimising the level and mix of its capital resources.
Barclay’s ability to operate as a bank is directly dependent upon the maintenance of adequate capital resources.
Barclays works according to a centralised capital management model considering regulatory and economic capital.

The Group’s capital management objectives are to:

Maintaining the sufficient capital required to meet minimum regulatory capital requirements set by the UK FSA.
Maintaining sufficient capital resources which can support the Barclays risk appetite and fulfil the economic capital requirements.
Support the bank’s credit rating
Ensure that the locally regulated subsidiaries can meet the minimum capital requirements without having to borrow from other financial firms.
Allocation of capital to support the strategic objectives set by Barclays, including optimum returns on economic and regulatory capital.

Funding strategy:

Barclays will manage the funding position so as to comply with the regulatory requirements decided by the UK FSA .Barclays operates on the model of centralised governance and control processes that covers all of its liquidity risk and management activities.

Funding Structure
Global Retail, Commercial Banking, Barclays Wealth and the Head Office Functions are to be self-funded through customer deposits and Barclays equity and other long-term capital. The Barclays Capital and Absa businesses will be funded through the wholesale secured and unsecured funding markets.
The major currency payment inflows and the payment system collateral are going to be monitored and managed, so it can be ensured that at all the times there is going to be availability of sufficient collateral to make payments.
Day to day funding will be managed through putting limits on wholesale and the secured borrowings. This is going to ensure that on any day and over any specified period of time there is only going to be a limited amount of refinancing requirement.
In addition to cash flow management, Barclays would monitor the term mismatches between the assets and the liabilities and also the levels and the types of undrawn lending commitments.Additional value propositions specific to a personal customer and not the global market:

Personal banking made easy by the debit card that is an internationally valid card which has many advantages like international assistance anytime anywhere, guaranteed transactions etc.
Wide range of current accounts available to suit different customer needs.(mobile phone insurance, car breakdown cover etc.)
Availability of loans at competitive rates
Online facilities giving easy accessibility to customer funds.
24/7 customer service
Wide array of savings and investment options
Credit card facilities
Insurance facilities(home, motor and life insurance)
Mortgage facilities(buying, building and renovating of property)

To understand the customer value proposition of Barclays and then to contrast it with the value proposition of HSBC, this project is going to use the SWOT analysis which is preceded by the mission statements and the vision statements of both Barclays and HSBC, thus giving us a better idea of what the customer expects from the brand and what are the promises being made by these institutions to potential and existing consumers.
Mission Statement
This is a short, formal, written statement of the purpose of the company. It guides the actions of the company, benchmarks its goals, provides a sense of direction and guides in decision making. It provides a framework within which the strategies of the company are formulated.
Vision Statement
This can be defined as statement that captures the long term picture of what the organisation wants to become. It gives a broad and an aspirational image of the future that an organisation wants to achieve. It is often inspirational and memorable.
Mission Statement of Barclays

“To develop & deliver the most innovative products, manage customer experience, deliver quality services that contributes to brand strength, establishes a competitive advantage and enhances profitability, thus providing value to the stakeholders of the bank.”

Vision Statement of Barclays

“We have a clear view of where growth will come from over the coming years. While there will be significant growth opportunities in the UK, we see many more internationally. Barclays will become a leading global universal bank.”

Mission Statement of HSBC

“We aspire to be one of the world’s great specialist banking groups, driven by commitment to our core philosophies and values.”

Vision Statement of HSBC

“We envision enabling HSBC to achieve its strategic objectives, driving excellence in our delivery through partnership with our customers and associates.”

SWOT Analysis of Barclays

Extensive network in Europe providing business sustenance.
Focus on cost efficiencies which ensure relatively higher profitability.
Ability to lend amidst reduced size of the balance sheet.
Associated with innovation, Barclays in 1966, brought out the first credit card, most recently the OnePulse card combining Oyster, credit cashless functions for its customers.
Opening of several new branches, along with a massive refurbishment programme.


Strained trading income impacting the revenue diversity.
Barclays Capital credit market exposures are impacting the financial position and performance.
Large bonuses for the Directors have attracted unwanted attention.
Expansion plans in the Asian market thwarted, when Barclays lost the deal for ABN Amro in 2006.


Barclays wanted to acquire Lehman’s assets prior to the collapse but however, after the collapse, they negotiated a better deal with the liquidators which allowed them to be selective in what parts of the business they actually wanted to acquire.
The bank’s strategy was to offer a full plethora of services worldwide, which provided a wide range of cross-selling opportunities.
Asia is still an opportunity for business expansion, and thus operations are going to be set up at various locations.
Welfare provision has been decreased in many countries because of the subsequent cost to governments, and Barclays considers self-provision as an increasing fad that it can use.
Positive outlook for buy to let market may bring business volumes.
Buoyant secured personal loans market in the UK could help the business.


Bleak outlook for the UK economy.
Regulatory fines can compress margins and financial position.
Increase in online fraud.

Barclays is accused of loss-making investments which are associated with the sub-prime market from the accounts to those of other investors, and there could be legal risk.
Though it offers a wide range of services, there is a threat that customers may go to suppliers who can present a more specialised approach.
Barclays has been closing branches left right and centre, and the competitors have positioned themselves as more consumer-friendly by adopting a strategy of keeping the branches open.
The Asia expansion is risky given that Barclays group are not in a strong position than the banking industry leaders when it comes to capitalisation, and this can detract investors.
SWOT Analysis of HSBC

The bank is well capitalised which enables it to perform well in comparison with other banks in the recent economic conditions.
Going forward, the bank is unlikely to borrow from the UK government because of the huge market capitalization; this enables it to retain more autonomy.
HSBC has a strong presence in emerging markets, which places it in a good position allowing it to take advantage of future growth in those economies.
HSBC’s global presence in Asia, South America and Europe spreads the risk and offers significant economies of scale.
Rebranding relatively recently (1999), the HSBC bank has become well-established and is considered of great value within the industry circles.


HSBC strongly believes in investing in the small business sector, but the current economic downturn has led to increase in risk, which could potentially compromise the activity levels in the area of its operation.
HSBC’s involvement with sub-prime markets in the US has forced it to write off large sum of figures lent to high-risk borrowers.
Despite cuts in the UK interest rate, HSBC has been increasing its mortgage rates. This can be perceived negatively by the borrowers and potential borrowers, which may add pressure to a depressed housing market and can ultimately lead to more defaulting as borrowers would struggle with higher repayments.
A redundancy programme which was announced recently can affect morale among staff, leading to decreased productivity and loyalty.
HSBC’s branding emphasises the global presence of the bank, and this may be seen as negative thing by some consumers due to the implication of homogenisation and the lack of personalisation.


HSBC’s high levels of market capitalisation place the bank, in a strong position which helps it to acquire assets.
Banks which find the trading conditions particularly difficult at present could be available at low costs.
HSBC has adequate capital which it uses to purchase strong local banks such as Bank Ekonomi in Indonesia, in which it has purchased a stake to continue the Asian expansion despite challenging economic times.
HSBC’s strong position presents the opportunity to outperform other banking competitors during the economic downturn which allows it to build a reputation of being one of the safe banks for depositors which further helps to increase resources for lending.
Negative press coverage of competitors such as HBOS may encourage customers to choose HSBC instead.


Decreased trust in the financial system overall, including HSBC due to financial losses suffered by investors may be a reason for them to invest elsewhere.
Financial losses which have affected the banking industry and the sole investors on the global scale has resulted in less amount of credit being available for customers. In the UK this coupled with increases in living cost has resulted in less money being saved.
The slump property market is leading to a rise in the numbers of homeowners with negative equity. If a property’s worth is less than what it was borrowed to finance its purchase, then there is going to be less likelihood that the bank will recoup all the losses if owners default.
Claims have been made against HSBC, about the bank understating its losses resulting from the US sub-prime markets, and this has led to undermining confidence in the bank by the customers.

Barclays is currently taking a conservative approach due to the recession. However, the downturn has provided the bank with many opportunities for consolidation. Also, with the BRIC and East Asian markets rebounding fast this region looks to be a source of potential revenues and provides opportunities for increasing operations. With the United Kingdom and the Americas looking at a slow and prolonged phase of recovery, Barclays will need to adopt a policy of looking east when it comes to operations.
The threats and problems being faced by Barclays will be because of the sustained economic situation being experienced in the United Kingdom, America and Europe which leads to uncertainty within the retail consumer market and could result in shortage of availability of credit. This in turn makes it even more important for Barclay’s to drive the overall corporate profitability margin by seeking to offset the shortfalls in the UK domestic market by making advances in the emerging markets. All the companies, like Barclays, are forced to re-examine the retail aspects of their operations which are seeking to remain competitive on the high street and also to make cuts wherever necessary. In the current financial climate, banks are not ready to finance each other and with the UK market on the verge of a projected severe recession, all of the retailing factors will influence Barclays competitiveness and it would depend largely on how the Bank of England and the Treasury would regenerate and reinforce the weak confidence in the stock markets.
HSBC will concentrate on the strategic and prioritized areas of its worldwide operation with the further emphasis on HR management strategies and technologically-advanced applications within the group to keep a firm lead in the financial markets. HSBC’s conservative approach to banking, staying focused on keeping its capital base strong and liquid balance sheet have prevented its failure. Executing the HSBC’s strategy emphasizes on improving the intra-group linkages by joining up the businesses and functions so as to effectively create additional value. The HSBC brand is going to be leveraged to reach new customers and add more services to the existing ones. Efficiency will also be enhanced by taking the full advantage of the local, the regional and global economies. Appropriate objectives and new incentives will be adopted so as to encourage employees to be fully engaged in delivering the strategy.
In light of your analysis of your existing value proposition and what you have learnt in this module produce, a new value proposition that will match the value criteria of your customers, and a plan to implement the value proposition externally and internally http://openlearn.open.ac.uk/pix/spacer.gif
To create a new value proposition that would be acceptable to the customers of Barclays, all the weaknesses that the current business structure has would have to be removed and a new and better business plan would have to be drafted by identifying the opportunities and removing the weaknesses.
A New Value Proposition
The trading income should be relaxed so that it does not impact the revenue diversity.
Capital bonuses should be distributed in accordance with the FSA and the bad practice of the directors receiving huge bonuses should be curtailed.
Barclay’s should provide the consumers with a full portfolio of services worldwide, rather than just concentrating in the UK, this move could enable cross-selling opportunities.
Barclay’s should look towards expanding in the world’s booming economies like India, China, Indonesia etc. so that these economies could provide Barclays with the market opportunities it is looking for, thus increasing the market capitalization. This project would propose that Barclays should have an aggressive expansion policy in the Asian market.
Barclay’s needs to invest in buy to let market, which would in turn bring business volumes.
Due to the economic crisis in the markets, Barclays needs to cut down its interest rates and mortgage rates, so as to become a people’s bank and thus raising the brand image.
To implement the new value proposition described above the project, will identify the key relationship-marketing issue, followed by refocusing of marketing effort: moving activities away from a marketing mix that creates a series of one-off transactions, to manage a complex network of relationships involved with the production of the whole consumer offering.
Marketing audit will be carried out so as to map out a plan that will be of most advantage to the customers and will be conducted in stages, namely at the beginning, the middle and at the end.
Marketing analysis in terms of the strengths, weakness, threats and opportunities.
A review must be undertaken to understand the new value propositions outlined above in the light of internal marketing.
A new strategy development process concentrating on differentiation, cost leadership and adequate response systems would have to be created.
Action programmes would have to be designed by managers so as to determine the most appropriate course to take in tackling the weakness of the organisation, with a determination of the likely costs which would be incurred.
The implementation plan would have to be monitored and controlled by keeping a track of staff performance, evaluation and appraisal schemes.
To ensure effective, appropriate and accurate results, basis for market segmentation would have to be identified, based on extensive market research.
Marketing orientation is going to be very important, the new value propositions must be made clear to all the employees and clearly defined individual goals should be set down to enable the employees to see their own contribution in achieving the organisation’s objectives.
Externally implementing the plan is going to be very important, and can be done by the use of media, electronic, print and sponsorships.
The new value propositions can be made available in the form of television advertisements, available for all the people to see.
The Barclays website can act as a powerful medium on which the new value propositions can be put up and made available. It should be designed in an effective and detailed manner so that the customers are aware about all the new services available to them.
Print media is another powerful form by which the new policies can be made available for the masses.
Barclay’s is a big sponsor for many big international events and meets and can use that as an active platform to educate the consumers about the new change in the policy structure.