Month: June 2020

Investment Solution Companies – Financial Aspects To Consider

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Capitalism is based on capital and fund mobility. If you have some money, it is recommended to re-invest it to generate you more profit than to keep it hoarded in a bank account. While keeping some money in the bank as a back-up solution is something advisable, a portion of your money should be invested so it can generate bigger returns over time. Investing your funds carefully and keeping them moving when appropriate can bring you significant financial gain. However, you must choose carefully the right investment solution for you if you want your finances to also be safe versus the level of risk you are taking on. While all investment solution companies promise you huge gains and virtually zero risks, you have to consider many elements when choosing your investment solution company. The possibility of greater returns inherently brings forth a greater level of risk.

Before deciding to invest your money through an investment solution company, you must take several things into consideration. You should ask yourself how much are you willing to invest (depending on how much you are willing to re-invest of your money you can choose a financial solution ), what kind of return rate you want and how secure you want your investment to be. (Do you want a fast growing but riskier investment solution, or do you prefer a slow growing one, which is safer). If you do not know much about the financial world or you do not have the time to invest the money yourself, you can choose an investment company. A good agency that offers investment solutions has many specialists deciding on the best choice for you and they make their decisions based on a vast experience with financial investments. However, choose an investment solution company that offers you transparency (to offer you details about your account whenever you ask for these details), clarity (its brokers and specialists should discuss with you all aspects regarding their financial operations and your account).

The Internet is a great resource and using it you can find detailed information about the investment solution company of your choice. You can see their experience and past financial results. You can also search for any past issues and problems (Internet forums are great places to find out such information). When discussing with their agents, ask to see their portfolio, how they choose to invest their clients’ money and why are they doing so. A transparent agency will inform you about all these details and a close relationship between the agency and its clients is equally important. Setting your investment goals is the final step before signing any contract with an investment company. Decide what kind of investment solutions you are interested in (domestic or international, stock or real estate) and choose your investment company accordingly. After setting these financial goals and future plans (chose if you want to use the money immediately or do you want to use them further in the future), use any available information (portfolios, case studies, lists and financial history) to choose the investment solution companies that best suits your needs. Always have several options to start with and you can eliminate the companies that do not suit your desire.

Overall Business Strategy

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Porters five forces of competition

Under this model, porter mentioned threats of new entrants who may be interested in the same

business. New entrants affect market share, thus reduce profitability and increase costs of

marketing (Porter, 2008). New entrants also pose a threat since they may introduce a different

entry strategy that is inconsistent with existing firms. New entrants also may redesign, marketing

routs parallel to existing ones, and thus creating market related conflicts. Porters also looked

at the power of suppliers in the model as key drivers of business profitability, because they

influence supplies like raw materials and other services needed by firms, in order to produce.

Pricing of raw materials and other services is vital in determining the price of the finished

product. Suppliers determine the level of input thus affect production related overhead. Another

aspect of competition in the porters framework is the bargaining power of customers. Porter

insists that, customers can mount pressure on the firm to adjust its prices downward, particularly

in a price sensitive environment. This also involves buyers choice and preferences as well as the

purchasing power of such buyers. Threats of substitutes are also another factor that determines

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firms’ competitiveness according to porters theory. Under this, Porter was concerned with

possible product substitutes that can provide alternatives to customers in the event of price

variations. This reduces market attractiveness thus reduces firm’s profitability. At the center of

all these, Porters model also dwelt on competitive rivalry as one of the key aspects of the five

forces of competition. The number and capability of the competitors, determine the level of

market attractiveness that may affect market penetration and profitability of firms (Porter, 2008).

Application of Porter’s five forces of competition

This model applies to our company in many ways. We have to consider that as our company

seeks market expansion, there is likelihood of new entrants in the industry coming on board. In

the event they produce similar products at a lower cost, customers are likely to switch to these

alternatives, which is likely to affect our market share. We have also to consider that using

external website may reduce our direct physical contacts to our renowned customers as much as

it provides an avenue for new customers. On the other hand the bargaining power of these new

buyers may also affect our prices in the new market much as our production costs may reduced

through online marketing. The company also needs to consider the existence of rival firms that

may target our best customers by providing lower prices for similar products. This is because

our rivals will be able to monitor our strategies on our website are likely to employ counter

tactics to our strategies. The power of suppliers should come into the picture when developing

these strategies because expansion of the market may increase demand for raw materials thus

mounting pressure on suppliers to supply more. The power of these suppliers to bargain for

supplies also determines the pricing aspect in the both existing and new markets. Suppliers may

also be forced to seek alternative sources of raw as demand increases. These may come with

extra costs of obtaining these raw materials, which is likely to be passed to our firm. Expansion

may also come with the introduction of new suppliers. These suppliers may have different

strength and bargaining power. Our company will also require some time to build mutual trust

and good working relationships in the event of new suppliers. The cost of switching from one

supplier to another may adversely affect our firms profitability. This should therefore be put into

consideration, thus strategies should

Generic strategies applicable to Adventure Works

As our company embarks on the development of this strategic plan, in relation to its operational

changes, there is a need for new strategies. This can include adopting relevant generic strategies

developed by porter, in our scenario, adopting a focus strategy is key in our new direction. The

company needs to focus on our existing customers and other potential customers in Europe and

develop contacts with them. Focus strategy will enable us to concentrate on a narrow customer

segment with an attempt to achieve cost advantage. However, we need to employ a focus

strategy with an element of cost leadership given that the firm indents to utilize online

marketing; for this reason, there is need to monitor the implication of this online system on our

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distribution costs. Online business provides two important advantages that include reaching a

wide number of potential customers and reduces barriers that affect business (Rainer, Kelly, and

Cegielski. 2012). This strategy best fits our specialized business that revolves around bikes and

metals. This company needs to capitalize on existing customers needs with whom it has already

built good relationship and mutual. There is need to strength our regional sales teams as we

embark on our new plan. This can be done through mapping of customers in every region and

customization our website based on regions to suit the already existing systems. The focus

strategy will enable our company to concentrate on a market niche that we understand most. This

strategy is possible because of already specialized venture in bicycle and metals. Our company

will be able to capitalize on the existing customers based on our brand loyalty. In this case, as we

broaden our market scope, we have to consider our market niche that we are quite familiar with

before penetrating any new market. We also need to bring something new in the mix that will

enhance the attractiveness of our product to customers. When applying the focus strategy, the

aspect of cost leadership will not pose a major challenge because our company will rely on our

website as a key marketing tool when targeting bicycle buyers. Relatively, the company will be

able to reduce cost of distribution through the utilization of online marketing. Cost reduction will

also be realized across the value chain through engagement of specialized suppliers and market

agents across our company. Superfluous Activities in the value chain within the target segment

will also be eliminated through focus strategy. Cost leadership will also be necessary at this

point of time because broadening market entails penetrating other competitive environment,

however, we need to concentrate on existing customers as per contact our list, in this case our

company needs to understand market dynamics including the bargaining power of suppliers and

buyers before the aspect of cost leadership is prioritized. Much as other strategies like

differentiation may create brand loyalty in the market by reducing oversensitivity of customers

on prices, we have to consider that the company already has the best customers that it entails to

concentrate on during its expansion. The newly acquired Importadores Neptuno in Mexico,

provides a framework upon which networking and mapping of potential customers can easily

be achieved through our regional sales team. The focus strategy will be right for our company

to sustain and satisfy already existing customers, we shall also be able to clearly segment our

products in the new geographical regions in relation to renowned customer. Focus strategy is

built on the concept of serving a defined group of customer nitch exactly what our company

should look forward to achieve. Also to note is that focus strategy can help achieve

differentiation as well as the low cost advantage within a narrow market. The focus strategy will

also echo well with this company because of the understanding of customers unique needs and

market dynamics. This is because we have all along served our customers uniquely well,

according to the feedback we get from the hem.

Implementation Tactics

One of the most effective tactic we can use to achieve this is timing tactics. Douglas, John and

Essam (2012), p. 130 noted that moving earlier than competitors to introduce and sell new

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product or model makes an organization first mover while others will be early followers. While

we employ time tactics we must consider our resources, capabilities and competences. The

driving force in timing tactic is considering a market share as organization goal. OShaughnessy,

(1995), established that by using market share as a goal, a company either intends to protect its

market share or advance its market share. By use of a timing tactic, our firm will be able move

before competition, move with competition and move away from competition as provided by

OShaughnessy (1995) in his competitive timing direct matrix. Effectiveness of time strategy

will be determined by how we choose and prioritize our goals. Setting implementation goals

in terms of long term and short term will enable us to evaluate the progress and development

intervention approaches where necessary. This involves setting targets in relation to our current

position in the market and time of achieving these goals for evaluation purposes.

The competitive position tactic will also be key in the implementation of this strategic plan. We

need to position our initiative as market leader who will be followed by other competitors by

virtue of our customer base and their loyalty across our regional markets. More significant is

our level of technology that includes reaching our extensive markets through our website. The

competitive position tactic will make our competitors more of followers. Taking up competitive

approach will mean that, our company defends its position as market leaders within our

market scope through customer defensive tactics. It is good to understand that our expansion

majorly focuses on existing customers, thus losing even one of them will be detrimental to our

strategy. Douglas, et al.p. 134 noted that leaders are always vulnerable to attackers. In this

case, positioning ourselves as market leaders need the adoption of defensive tactics. Defensive

tactics entail to reduce the possibility of attack and reduce threat attacks to an acceptable

standard (Porter 1985b). One of the ways is protecting current market share through position

defense tactic by building fortification around our current position. By focusing our attention

on this strategic plan, our company will be able to position and maintain itself as leading firm in

manufacture and sole distributor of bicycles.

I will be glad to be part of the team that will oversee the smooth implementation of this strategic

plan when in place, and will always be available in case you need any of my input.

Five Striking Features Of Outdoor Advertising!

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The objective of each advertising campaign differs from another. Keeping this point in mind, advertisers adopt various mediums of advertising which best suit the requirements of their brand promotion campaign. Outdoor advertising is one of the oldest mediums of brand promotion. Advertising brands through outdoor media vehicles such as billboards, hoardings, kiosks, posters etc have been in vogue ever since the advent of advertising in India. Five important features/ advantages of outdoor advertising are explained below-
-Cost efficiency: Out of home advertising methods are cost effective ways to promote a brand or service because OOH advertising is mostly one time investment. One outdoor ad can be kept for weeks, months or even years (provided the ad is not deteriorated by weather or alike factors). Hence, in out of home advertising one doesn’t need to invest again and again. Just invest once and wait and watch to observe the impact.
-Better reach: Outdoor ads provide better reach to customers as compared to other advertising practices. This is because outdoor ads cannot be switched off like television or print ads. One can avoid a television ad by changing the channel but one cannot avoid an outdoor ad by staying inside home and not going out. The bottom line is that everyone moves out of home and while moving out of home, one happens to watch all those outdoor ads about various brands. The compelling viewership provided to audiences is one of the major advantages or features of an OOH advertising campaign.
-Potential to reach intended customers: Outdoor brand promotion practices such as airport advertising, mall advertising etc have potentials to reach the targeted customers. Airport advertising is one of the most common practices of outdoor brand promotion. Any advertising campaign whether home based or outdoor is successful if it reaches out to the target audience. In such case, outdoor ads have the ability to reach and influence a defined target group with an affluent brand experience.
-Scope for creativity and longevity: Outdoor advertising provides more scope for creativity and longevity while promoting a brand, service, idea or business activity. This scope for creativity and longevity makes outdoor advertising an effective and reliable tool for brand promotion.
-Constant or non-stop exposure to public: Outdoor ads whether airport advertising or mall advertising provide constant exposure about the brand to the general public. This is another striking feature/ benefit of outdoor advertising. Maximum exposure in the market place means attracting a larger number of target audiences. Advertising is a customer-centric affair and attracting old/new pool of customers is equally important for an advertiser to promote his brand or service.
Outdoor advertising India is becoming trendy day by day. Especially with the advent of digital technology, outdoor advertising has undergone a radical change as compared to the conventional modes and techniques of brand promotion. The trends of outdoor advertising India are yet to revamp and renovate further with a touch of technological sophistication.
Reference Website: – www.tdiindia.com

Know Your Tolerance for Investment Risk Before Designing an Investing Program

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What is risk tolerance? Its your ability to deal with investment losses usually in the short-run to have the chance of earning higher long-term returns than you would get in a bank account.

On the one hand its about how much you can afford to lose.
On the other hand, its also about how much money you can emotionally tolerate losing.

Its extremely important to your success as a long-term investor to know your tolerance for risk. Its a key part of designing an investment program that is appropriate for you and for picking individual investments.

What You Can Afford to Lose: An examination of your individual circumstances is required to figure out how much of your nest egg you can afford to lose in the short-run on investments that promise to deliver attractive growth in the long-term. But there are some general guidelines:

Generally speaking, the more years you have until retirement, the higher your risk tolerance should be.

Conversely, the more likely you are to tap into your nest egg early, the lower your risk tolerance should be.

The Emotional Aspect of Dealing with Risk: Studies of investor behavior show that emotions are a significant contributor to poor, long-term investment performance. Investors tend to get stuck on an emotional roller coaster that leads to poor investment decisions. Here is what the roller coaster ride often looks like:

Investors get excited about investments that have already gone up and buy near the peak in value. When prices drop, investors find it emotionally difficult to accept and will rationalize holding on until prices improve. Then the bottom drops out and investors sell near the bottom, no longer able to cope with the anguish. Emotionally battered, they find it difficult to reinvest near the bottom and end up missing the next move up only to reinvest later on after values have risen above where they had sold (buy high sell low?) Then values peak once again, prices drop and the cycle continues.

Sound like anyone you know? This is why sticking with a disciplined investment plan is so important to successful investing. Overcoming your natural emotional reactions driven by fear and greed is the key. But that is hard to do.

It becomes harder the more risk you accept in your investment plan.

What Percentage of Your Nest Egg Can You Lose? Before designing an investment plan, it is helpful to think about your risk tolerance in terms of a percentage. For example, you might say I am willing to see my portfolio decline as much as 12% for a period of time if it gives me the opportunity to realize better growth over the long-term compared with leaving the money in a risk-free bank account or CD.

Perhaps you could tolerate losing as much as 30% of your nest egg temporarily investing in something you thought could earn you a long-term growth rate as high as 10% to 15% per year.

Build a Disciplined Plan Around Your Risk Tolerance: No matter whether youre a big gambler or a scared chicken, knowing your risk tolerance expressed as a percentage should make it easier for you and/or a financial professional to design an investment program that isnt likely to push your emotional hot buttons.

If the inevitable volatility of your investments remains within your emotional limits, you will be miles ahead in the long run simply from having been able to stick with a disciplined strategy.

You and/or a financial advisor can compare your percentage risk tolerance to the historical volatility (annual standard deviation) of different types of investments and design portfolio allocations that will more likely meet your long term investment objectives while staying within your risk limits.

Calibrate a Mechanical Investment Strategy to Your Risk Limits: With the use of computers and mathematically-based investment strategies, it is now possible to calibrate a mechanical investment strategy to your maximum risk tolerance.

This is what we have done at ConfidentStrategies.com. We have Model Portfolio strategies calibrated for a maximum risk tolerance of 5%, 7%, 12% and 30%. Fortunately, you dont need any financial or mathematical background to take advantage of these sophisticated models as the work is all done for you and presented in the easy-to-understand form of Model Portfolios.

Benefit From Higher Risk-Adjusted Returns: Our Model Portfolios have not only successfully managed volatility risk but increased longer term rates of return. The result has been very attractive risk-adjusted returns compared with more traditional investment strategies. Getting well paid for the risk youre taking may seem like an obvious approach, but few other methods of investing allow you as much control over the relationship between risk and return as mechanical strategies such as ours.

The Importance of Experience in the Construction Industry

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Do you really need experience for a construction job? Several would say that experience is not really necessary, and many construction companies do hire workers with no experience for smaller jobs. But according to James Day, an experienced AECOM public health engineer, experience is vital especially for construction and engineering students. “Start looking for work experience as early as you can, even in your first year,” Day advices students. “Dont wait for your departments work placement tutors to feed opportunities to you.”

And Day isnt the only one who thinks experience is essential. Most graduate recruiters agree that construction-related experience really improves a graduates chances of landing job offers in the future. In the TARGET jobs recruiters board held last year, majority of recruiters pointed out that generally, when it came to job offers graduates who had industry work experience were better able to answer pertinent questions and tackle assessment exercises.

Benefits of Experience

The benefits of experience are not only limited to graduates, but extends to those who continue to expand their experience through the years. James Moschoyiannis, better known in the construction industry as Jim Moschoyiannis, is a director and shareholder of one of Australias leading construction companies, L.U. Simon Builders. But he didnt get to where he is now simply out of pre-graduate experience, but years of continued experience and learning. Throughout his career Jim has handled projects of every scale and from every sector, which led him to be promoted from being project manager to construction manager in just 7 years and appointed director in just 6. His long and fruitful career is evidence enough that experience is crucial not only in landing those first construction jobs but making it to well-respected positions within the industry.

Gaining Experience at the Start

For the majority of those entering the construction industry the most difficult part is finding opportunities to gain experience at the very start. Usually, recruiters wont take graduates on an unpaid basis due to minimum wage legislation, and most other companies cant afford adding paid placement students over the people they have already hired.

So what can construction students do to gain some early experience? Here are some helpful tips:
Get sponsored. Sponsorships or scholarships from construction companies will not only provide financial support to students but will guarantee work experience placements, particularly during the holidays.
Apply for paid work experience schemes. There are plenty available online for all kinds of construction-related positions from quantity surveyors to engineers to project managers.
Work-shadow. Knowing the predicament of construction students, recruiters have been very keen on giving students every possible opportunity to gain experience. One of these is work-shadowing opportunities. When students spend time observing professionals at work rather than taking on work themselves, they dont go against any legislation and still gain insights regarding the work involved. To gain this opportunity, students must write well-researched and well-written cover letters and CVs asking for permission to work shadow a professional.
Voluntary work. Its possible to do voluntary construction work during the gap year, but this may require a fee or some fundraising for certain charities.
Temp work. If possible, students should check whether they can get temp work in a related field.

Theres no doubt that experience bears a lot of weight in the field of construction. Gain it early and develop it consistently and you can achieve much success in the industry.